Despite the volatility in the global financial markets, Lazard Ltd. (NYSE: LAZ) has held up nicely. But according to its Q1 report, there are now signs of weakness.
Net income came to $7.8 million, or $0.14 per share, which was a 71% drop from the same period a year ago. A big culprit was the fall-off in M&A activity. Such revenues dropped 15% to $166 million.
Another issue was the corporate debt portfolio, which sustained a $28.5 million write-down. However, compared to other investment banks, this does look fairly minor. What's more, Lazard has been taking actions to improve things.
Interestingly enough, Lazard has snagged some plum advisory assignments on large capital infusions -- such as from sovereign wealth funds -- for financial institutions. This is a business that should continue to grow. And with Lazard's focus on advisory services, the firm should be in a nice position to be a major player in the space.
But in today's trading, Lazard's shares are down 2.59% to $36.53.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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