(Reuters) -Investment bank Lazard reported a 3% drop in fourth-quarter profit on Thursday, as higher expenses offset gains made in its financial advisory business.
U.S. equity markets rallied strongly in the final stretch of 2023 powered by hopes that the Federal Reserve will soon cut interest rates. The optimism helped the benchmark S&P 500 trade near record highs.
Meanwhile, fixed-income investment portfolios have also delivered steady returns in a high interest rate environment.
Lazard’s assets under management as of Dec. 31, 2023 rose to $247 billion from $216 billion at Dec. 31, 2022.
The company’s adjusted compensation and benefits expense for the fourth quarter was $516 million, compared with $419 million a year earlier.
Revenue at Lazard’s financial advisory segment rose 18% to $477 million, while revenue at its asset management arm increased 6% to $274 million.
The company reported an adjusted profit of $65 million, or 66 cents per share, in the fourth quarter, compared with $67 million, or 69 cents per share, a year earlier.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shounak Dasgupta)
Comments