(Reuters) -Investment bank Lazard reported an 11% jump in second-quarter profit on Thursday, as a rebound in dealmaking activity lifted its advisory revenue.
Dealmaking grinded to a halt in April as tariff-driven uncertainty dampened corporate confidence and companies held back from pursuing deals. But activity bounced back sharply in May and June as global uncertainty eased.
Lazard’s financial advisory revenue jumped 21% to $497 million, driven by robust activity in Europe and clinching record revenue for the second quarter.
“Firm-wide, high levels of client engagement continue,” CEO Peter Orszag said.
U.S. big banks last week struck an optimistic tone about the dealmaking outlook for the rest of the year after an upbeat quarter.
Investment banking fees rose 13% at Citigroup, 7% at JPMorgan, 26% at Goldman Sachs, and 9% at Wells Fargo.
During the second quarter, Lazard advised Belgian healthcare REITs Aedifica and Cofinimmo on their $13.8 billion merger.
In July, Lazard advised Italy’s Ferrero on its $3.1 billion deal for Froot Loops maker WK Kellogg.
Lazard posted a profit of $55 million, or 52 cents per share, for the three months ended June 30, compared with $50 million, or 49 cents per share, a year earlier.
TURNROUND TAKES ROOT
Lazard registered net inflows of $677 million in the latest reported quarter after grappling with outflows since the second quarter of 2023.
“Asset Management achieved positive net flows in the quarter and record gross inflows for the first half of the year, demonstrating progress towards our goal for this year to serve as an inflection point for the business,” Orszag said in a statement.
Consistent net outflows in recent years has been a concern for investors.
The business saw revenue climb 2% to $292 million in the quarter. Lazard’s assets under management rose 2% to $248 billion, as of June 30.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila)
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