Jan 29 (Reuters) - Lazard beat fourth-quarter profit estimates on Thursday, fueled by strong growth in its advisory and asset management businesses, while the investment bank named insider Tracy Farr as chief financial officer, effective Feb. 1.
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.
Wall Street's investment 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.
Executives at major banks had earlier this month said that deal pipelines remained active.
The investment bank reported an adjusted profit of 80 cents per share in the three months ended December 31. Analysts on average had expected 69 cents per share, according to estimates compiled by LSEG.
Lazard 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.
He succeeds Mary Ann Betsch, who will serve as a senior advisor to help complete the transition.
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.
Assets under management have risen 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.
(Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur)
