Lazard profit plunges on elevated tax rate, financial advisory volatility
LAZ•Second-quarter profit hit by tax rate and advisory weakness
July 23 (Reuters) - Investment bank Lazard reported a 91% plunge in second-quarter profit on Thursday, hurt by a higher tax rate and a drop in revenue in its financial advisory business.
Net income fell to $5 million, or 3 cents per share, in the three months ended June 30. That compares with $55 million, or 52 cents per share, a year earlier.
Lazard also said the provision for income taxes was $24 million in the second quarter.
"This quarter's earnings were impacted by an elevated tax rate, which is not indicative of the full-year rate," CFO Tracy Farr said in a statement.
Shares of the company were down nearly 7% in thin premarket trading.
Advisory revenue falls as asset management offsets some weakness
While periods of market stability have encouraged companies to pursue acquisitions and public listings, bouts of volatility have repeatedly delayed transactions, creating an uneven recovery for investment banks.
Revenues at its financial advisory business slid 9% in the quarter to $450 million.
Asset management results were a bright spot. Lazard said it posted its best first-half net inflows in nearly 20 years and reached record reported assets under management.
