A 9% Drop in Lazard's Profits: The Sluggish Q1 of '25
Declining first-quarter earnings for Lazard as deal-making activity weakens
Uh-oh! The first quarter of '25 hasn't been so hot for investment bank Lazard. The bank's adjusted profit took a 9% nose-dive, as the economic turbulence pushed companies to keep their wallets shut and forgo making deals.
In this toxic economic climate, uncertainty and stock market volatility have got CEOs and boardrooms spooked. They're putting their acquisition plans on ice like a polar bear hibernating. The result? U.S. mergers and acquisitions (M&A) activity plummeted a whopping 13% in the first three months of '25 [1][3].
Even the global investment banking fees suffered a 4.9% slump to $21.47 billion in the quarter compared to last year, based on Dealogic data [1].
Financial advisory revenue at Lazard witnessed a steep fall too, dipping 17% to $370 million in the initial three months of '25 compared to the same period in the previous year [1].
Wanna know what Lazard's net income looks like? A paltry $60 million, or 56 cents per share, on an adjusted basis for the first quarter [2]. That's a significant drop from the $67 million, or 66 cents per share, they made a year ago [2].
But wait, there's more! The ongoing economic jitters, like tariffs sending stocks spiraling downward and the specter of a trade war, could further chill M&A activity if they persist [1].
So, in short, the first quarter of '25 has been a bust for Lazard and an daunting slog for the M&A landscape [4]. To be fair, wealth management segments have been a glimmer of hope, with transactions lining up like a Red Sea parting [4]. Nothing's ever black and white, my friend!
Sources:
- MarketWatch
- Wall Street Journal
- Bloomberg
- New York Times
- Forbes
- The economic volatility has seemingly been a contributing factor to a 13% decrease in U.S. mergers and acquisitions (M&A) activity, as seen in Lazard's first quarter of 2025.
- Lazard's financial advisory revenue took a sharp 17% plunge in Q1 of 2025, bringing in $370 million, a stark contrast from the same period in the previous year.
- The sluggish economic climate, with the fear of trade wars and stock market volatility, may further exacerbate the declining trend in M&A activity, considering Lazard's 9% drop in adjusted profits during the same quarter of 2025.
