The Franco-American investment bank Lazard published on Thursday a turnover for the third quarter down 27% and a barely positive net profit, while it is mired in the current slump in the mergers and acquisitions market.
Quoted in a press release, the new CEO of Lazard Peter Orszag, who took office at the beginning of the month, recognized difficult conditions for mergers and acquisitions. In detail, the net profit from July to September amounted to 7 million dollars (10 million excluding exceptional costs), or fifteen times less than the 106 million dollars collected over the same period last year.
A positive result after two quarters in the red
Lazard, however, is back in the green, after two net losses in the first and second quarter of 2023, of respectively 22million and 124million dollars. Financial advice, the bank’s flagship activity, was particularly affected with turnover down 42% year-on-year in the second quarter, to $261 million.
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.
Lazard’s other main business, asset management, generated stable revenue of $262 million. In total, the group’s turnover stood at $532 million over the periodin line with analyst expectations compiled by data provider Factset.
Lazard is still engaged in a departure plan covering 10% of the 3,400 employees at the end of 2023, announced in parallel with its first quarter results. On September 14, Mr. Orszag shared with his employees his ambition to double the turnover of the Franco-American investment bank by 2030.