The Franco-American investment bank Lazard published on Thursday a net loss of $75 million in 2023 but raised its head in the fourth quarter, in a devastated mergers and acquisitions market.
The bank had not lost money in a calendar year since 2009, when it posted a loss of $142 million, mainly due to compensation costs and the death of CEO Bruce Wasserstein in October, predecessor to Ken Jacobs.
In 2022, Lazard had generated a net profit of $358 million.
Lazard’s fourth quarter (2023) results represent a strong end to a difficult year, Lazard Chairman and CEO Peter Orszag, in office since last October, commented in a press release.
The bank’s turnover fell by 9% in 2023 compared to 2022, $2.52 billion.
Financial advice, the bank’s flagship activity, was particularly affected with turnover down 18% last year, to $1.36 billion.
The consulting activity is an inherently volatile activity, with more or less favorable periods for mergers and acquisitions. The tightening of financial conditions and geopolitical uncertainty have caused the market to suffer a cold snap for several quarters.
Asset management, Lazard’s other main business, fell more slightly, with turnover down 3% to $1.07 billion.
But the investment bank can reassure itself by looking at the performance of the fourth quarter alone, above analysts’ expectations. From October to December, it recorded a net profit of $64 million (+50% over one year).
Lazard is still engaged in a departure plan covering 10% of its 3,400 employees at the end of 2022. These departures are part of a general savings plan generating an exceptional burden for Lazard. Without these costs in particular, the annual adjusted net profit would have been $75 million, according to the bank.
On September 14, Mr. Orszag shared with employees his ambition to double the turnover of the Franco-American investment bank by 2030.
Rumors also surrounded the group’s withdrawal from the listing last year, after the announcement of that of its historic competitor Rothschild.