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Lehman to the World: We Are Making Money. Lots and Lots of It.

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Lehman Brothers reported a 47 percent increase in profits for the second-quarter of 2006, soundly surpassing market expectations. Net income reached $1 billion dollars, largely thanks to gains in stock-trading and M&A advisory fees.
Details on Lehman’s gains after the jump.

Bloomberg reports:

Fees from takeover more than doubled and stock-trading revenue gained 85 percent as Chief Executive Officer Richard Fuld expanded beyond Lehman's traditional strength in fixed income. Lehman advised on $213 billion of U.S. mergers, second only to Goldman Sachs Group Inc., data compiled by Bloomberg show. Bond trading revenue rose 25 percent.
Equity sales and trading revenue surged to $878 million. Hintz said the increase is due in part to market-share gains in prime brokerage, the business of providing services to hedge funds that's dominated by Goldman, Morgan Stanley and Bear Stearns Cos. In fixed-income sales and trading, revenue rose to $2.2 billion from $1.75 billion.
Investment-banking revenue advanced 28 percent to $741 million. Lehman advised on $73.2 billion of corporate takeovers completed in the fiscal second quarter, up almost 50 percent from a year ago, according to data compiled by Bloomberg. Fees from merger transactions rose to $244 million from $97 million.

Goldman Sachs is expected to report its second-quarter earning tomorrow or Wednesday.

Lehman Brother press release

Lehman Net Rises 47% on Stock Trading, Takeover Fees