Lazard beats profit estimates as dealmaking picks up, asset management gains

By Manya Saini

Jan 29 (Reuters) - Lazard LAZ.N beat fourth-quarter profit estimates on Thursday, fueled by strong growth in its advisory and asset management businesses, sending shares up over 3% in morning trading.

The investment bank also named insider Tracy Farr as chief financial officer, effective February 1, succeeding Mary Ann Betsch, who will serve as a senior advisor to help complete the transition.

Wall Street's bankers expect to stay busy this year, as pent-up demand among corporate clients, record-high equity markets and lower interest rates are expected to drive more activity.

Global investment banking revenue topped $100 billion in 2025, according to Dealogic, underscoring a long-anticipated recovery that took hold last year after several difficult years marked by high interest rates and market volatility.

Lazard's adjusted financial advisory revenue jumped 7% in the quarter to $542 million.

Executives at major banks had earlier this month said that deal pipelines remained active.

Lazard reported adjusted earnings per share of 80 cents in the three months ended December 31 beating estimates of 69 cents, according to estimates compiled by LSEG.

It said incoming finance chief Farr most recently served as a managing director in its capital structure advisory group and worked closely with the executive management as a senior member of its corporate development and strategy team.

ASSET MANAGEMENT SHINES

Lazard posted average assets under management of $261 billion at the end of the quarter compared with $234 billion, a year ago.

AUM has risen across the industry as a broad equity rally drove major indexes close to record levels, boosting portfolio values and investor confidence. Stronger risk appetite has also led investors to return to other asset classes.

The company's asset management business posted revenue growth of 18% on an adjusted basis to $339 million.

"Efforts to transform both businesses over the past two years are gaining traction and delivering results," Lazard CEO Peter Orszag said.

Its total revenue climbed 10% on an adjusted basis in the quarter.