Investment bank Lazard reported a sharp 91% decline in second-quarter profit, as a significantly higher tax rate and weaker performance in its financial advisory business weighed on earnings. Net income dropped to $5 million, or 3 cents per share, for the quarter ended June 30, compared with $55 million, or 52 cents per share, in the same period last year. The company also recorded a $24 million provision for income taxes, with CFO Tracy Farr noting that the elevated tax rate is not expected to reflect the full-year trend.
The firm’s financial advisory business generated revenue of $450 million during the quarter, down 9% from a year earlier. Although improving market stability has encouraged mergers, acquisitions, and public listings, recurring market volatility has continued to delay deal activity, resulting in an uneven recovery for investment banks. Lazard’s shares fell nearly 7% in premarket trading following the earnings announcement.
Asset management emerged as a strong performer, with revenue rising 20% to $351 million. Lazard reported its strongest first-half net inflows in nearly two decades and achieved a record level of assets under management, which increased to $285 billion from $248 billion a year ago. The company said geopolitical uncertainty, changing interest rate expectations, and AI-driven market shifts have prompted clients to actively reposition portfolios, supporting growth in fee-based asset management revenue.
Pic Courtesy: google/ images are subject to copyright
