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The National
3 days ago
- Business
- The National
Gold futures spike to record as Trump tariffs blindside 'trusted' market
Gold futures hit another record on Friday, reinforcing its safe-haven appeal at a time of market uncertainty over US President Donald Trump's sweeping tariffs and his surprise move to tax bullion. December futures for the precious metal spiked to $3,534.10 an ounce in intraday trading. It trimmed gains to settle at $3,398.58, a 1 per cent weekly gain. That puts gold's gains at about 30 per cent in 2025 and nearly 40 per cent from 12 months ago. 'Tariffs on gold bars? It's absurd. We're talking about a market that's supposed to be one of the cleanest, most efficient and most trusted in global finance,' said Nigel Green, chief executive of global financial advisory deVere Group. 'Instead, we now have price distortions, logistical headaches, and an open invitation for arbitrage – all created by a piece of paper.' Blindsided: What's driving gold up? That sharp shift in gold, alongside other key metals silver, platinum and copper, are being driven by US tariff expectations and tariff-related hedging activity in futures, said Ole Hansen, head of commodity strategy at Danish lender Saxo Bank. 'We saw similar dislocations during Covid, when the transatlantic bullion supply chain briefly stalled, and again earlier this year amid speculation that Trump's tariffs might include precious metals,' he said. 'For now, it's worth watching whether another 'Taco moment' will emerge. If not, the spread may need to settle at a new level that reflects the tariff landscape,' he added, referring to the 'Trump Always Chickens Out' market description of the President flip-flopping on his decisions. But the biggest blow to gold was, as first reported by the Financial Times, Washington's decision to impose duties on 1kg and 1oz bars – a category long assumed to be exempt from trade levies and despite the White House indicating in April, when Mr Trump announced his so-called Liberation Day tariffs, that gold would be spared from the sweeping duties. Crucially, 1kg bars comprise Switzerland's biggest exports of gold to the world's largest economy. The sudden ruling 'detonated decades of convention, setting the stage for a seismic redrawing of global gold flows', Mr Green said. In particular, the decision landed a huge blow on Switzerland, the world's largest exporter of refined gold, and which is already facing a 39 per cent duty on other US imports. 'We believe gold trade flows should be excluded from the current account balance, as they occasionally greatly distort the underlying fundamental dynamics for technical reasons, unrelated to the economic relations between the US and Switzerland,' said Kiran Kowshik and Filippo Pallotti, analysts at Swiss bank Lombard Odier. Also, it created a dramatic pricing split, as while London spot prices remained steady, US futures jumped, commanding a premium of more than $100 an ounce. That gap is also straining the role of New York's Comex – the world's largest futures exchange – as the global hedging benchmark, threatening to divert trade away from the US, with London emerging as a possible beneficiary, Mr Green said. 'Futures surging into uncharted territory because one customs ruling turned the global gold plumbing upside down. This is what happens when political theatre trumps market logic,' he added. Where is gold headed? In addition to the tariffs, persistent central bank demand, geopolitical tension, sanctions, trade friction and further US dollar weakness are expected to continue supporting gold prices in the second half of the year, analysts have said. Before Friday's spike, multiple research, including from the World Gold Council, Citi Research, Refinitiv and Byblos Research, have pegged gold to average $3,400 in the third quarter of 2025. Strong central bank buying of 900 tonnes in 2025 and robust ETF inflows of 552 tonnes in the first quarter of 2025 reflect sustained demand for gold, while a softer US dollar and anticipated Federal Reserve rate cuts enhance the precious metal's attractiveness as an inflation hedge, according to Aaron Hill, chief analyst at forex trading broker FP Market. Stock market reaction Global stock markets were mixed at the close on Friday, with Wall Street clinching a third winning week in a row after days of uncertain trade, amid higher technology shares and investor optimism on interest rate cuts. Apple, which Mr Trump on Wednesday said would invest an additional $100 billion into US manufacturing, jumped 4.2 per cent on Friday for a 13.3 per cent weekly gain. The Dow Jones Industrial Average settled 0.47 per cent higher, the S&P 500 added 0.78 per cent and the tech-heavy Nasdaq Composite rose 0.98 per cent for its 18th record closing high in 2025. In Europe, London's FTSE 100 was nearly flat on investor concern over the Bank of England's split rate decision, although strong corporate earnings softened the blow. Paris' CAC 40 added 0.4 per cent, while Frankfurt's DAX inched down 0.1 per cent. Earlier in Asia, Tokyo's Nikkei 225 closed 1.9 per cent higher after a Japanese government official said the White House would make revisions to its stacked tariffs on the world's fourth-biggest economy. The US and Japan struck a tariff deal on July 22, which Mr Trump touted as 'the largest trade deal in history ', although Tokyo did not endorse it at the time. Hong Kong's Hang Seng Index settled 0.9 per cent lower, while the Shanghai Composite inched down 0.1 per cent. The US and China are in discussions to extend their 90-day truce over tariff issues. Oil prices, meanwhile, recorded a sharp weekly loss on Friday amid the latest round of US tariffs and anticipated US-Russia talks on a Ukraine war ceasefire. Brent settled 0.24 per cent higher at $66.59 a barrel, while West Texas Intermediate was flat at $63.88 a barrel, dragging them to weekly losses of 4.4 per cent and more than 5 per cent, respectively. Both benchmarks are now down nearly 11 per cent in 2025.
Business Wire
24-07-2025
- Business
- Business Wire
Lazard Reports Second Quarter and First Half 2025 Results
NEW YORK--(BUSINESS WIRE)--Lazard, Inc. (NYSE: LAZ) today reported net revenue of $796 million and adjusted net revenue 1 of $770 million for the quarter ended June 30, 2025. For the first half of 2025, Lazard reported net revenue of $1,444 million and adjusted net revenue 1 of $1,413 million. On both a U.S. GAAP and an adjusted basis 1, Lazard reported second quarter 2025 net income of $55 million or $0.52 per share, diluted. For the first half of 2025, on both a U.S. GAAP and an adjusted basis 1, net income was $116 million or $1.08 per share, diluted. 'Lazard reported another quarter of strong performance across the firm,' said Peter R. Orszag, CEO and Chairman. 'Our Financial Advisory business delivered record revenue for the second quarter and first half of the year. 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. Firm-wide, high levels of client engagement continue.' NET REVENUE Financial Advisory For the second quarter of 2025, Financial Advisory reported net revenue and adjusted net revenue 1 of $497 million and $491 million, 21% and 20% higher than the second quarter of 2024, respectively. For the first half of 2025, Financial Advisory reported net revenue and adjusted net revenue 1 of $865 million and $861 million, in line with and 1% higher than the first half of 2024, respectively. Lazard is one of the world's leading independent financial advisors, serving as a trusted partner to clients on significant and complex M&A transactions. During and since the second quarter of 2025, selected highlights include (clients are in italics): CD&R's €16 billion acquisition of a controlling 50% stake in Sanofi consumer health unit, Opella Berry Global's $15.0 billion combination with Amcor Ferrero's $3.1 billion acquisition of WK Kellogg Co Roquette Frères' $2.9 billion acquisition of IFF Pharma Solutions Assura's $2.4 billion recommended combination with Primary Health Properties Biotage's $1.2 billion acquisition by KKR L'Oréal's agreement to acquire Color Wow Panama Canal Railway's sale to APM Terminals Lazard provides tailored advice, expertise and access to a broad universe of capital providers through our Private Capital Advisory and Capital Solutions practices. Private equity assignments include advising Accel-KKR, Hidden Harbor Capital Partners and IDG Capital on continuation funds and Mainsail Partners on the closing of its Fund VII. In addition, Lazard is advising on capital structure and executing debt raises for ZF Friedrichshafen, NeXtWind, and iFIT Health and Fitness. Lazard's preeminent restructuring and liability management practice has been engaged in a broad range of mandates including debtor roles involving Solo Brands, Superior Industries, and Wilbur Ellis, and creditor roles involving Lowell, Franchise Group, Saks Global and Southern Water. In addition, our sovereign advisory practice continues to be active in advising governments and sovereign entities across developed and emerging markets. For a list of publicly announced transactions please visit our website or follow Lazard on LinkedIn. Asset Management For the second quarter of 2025, Asset Management net revenue and adjusted net revenue 1 were $292 million and $268 million, 2% and 1% higher than the second quarter of 2024, respectively. Management fees and other revenue, on an adjusted basis 1, were $265 million for the second quarter of 2025, 1% higher than the second quarter of 2024, and 4% higher than the first quarter of 2025. Incentive fees on an adjusted basis 1 were $4 million for the second quarter of 2025, compared to $3 million for the second quarter of 2024. Average assets under management (AUM) was $239 billion for the second quarter of 2025, 3% lower than the second quarter of 2024, and 3% higher than the first quarter of 2025. For the first half of 2025, Asset Management net revenue and adjusted net revenue 1 were $581 million and $533 million, in line with and 2% lower than the first half of 2024, respectively. Management fees and other revenue, on an adjusted basis 1, were $520 million for the first half of 2025, 2% lower than the first half of 2024. Incentive fees on an adjusted basis 1 were $13 million for the first half of 2025, compared to $10 million for the first half of 2024. Average AUM for the first half of 2025 was $235 billion, 5% lower than the first half of 2024. AUM as of June 30, 2025 was $248 billion, 2% higher than June 30, 2024, and 9% higher than March 31, 2025. The sequential change from March 31, 2025 was driven by market appreciation of $11.9 billion, foreign exchange appreciation of $8.4 billion and net inflows of $0.7 billion. OPERATING EXPENSES Compensation and Benefits Expense For the second quarter of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis 1 was $519 million and $504 million, respectively, compared to $453 million and $452 million, respectively, for the second quarter of 2024. The adjusted compensation ratio 2 for the second quarter of 2025 was 65.5%, compared to the second-quarter 2024 ratio of 66.0%. For the first half of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis 1 was $949 million and $926 million, respectively, compared to $1,003 million and $945 million, respectively, for the first half of 2024. The adjusted compensation ratio 2 for the first half of 2025 was 65.5%, compared to the first-half 2024 ratio of 66.0%. We focus on the adjusted compensation ratio 2 to manage costs, balancing a view of current conditions in the market for talent alongside our objective to drive long-term shareholder value. Our goal is to deliver an adjusted compensation ratio 2 of 60% or below, with timing dependent on market conditions. Non-Compensation Expenses For the second quarter of 2025, non-compensation expenses on a U.S. GAAP basis were $184 million, 9% higher than the second quarter of 2024. On an adjusted basis 1, non-compensation expenses were $157 million, 6% higher than the second quarter of 2024. The adjusted non-compensation ratio 3 was 20.4% for the second quarter of 2025, compared to 21.7% for the second quarter of 2024. For the first half of 2025, non-compensation expenses on a U.S. GAAP basis were $347 million, 6% higher than the first half of 2024. On an adjusted basis 1, non-compensation expenses were $305 million, 8% higher than the first half of 2024. The adjusted non-compensation ratio 3 was 21.6% for the first half of 2025, compared to 19.8% for the first half of 2024. Our goal is to deliver an adjusted non-compensation ratio 3 between 16% to 20%, with timing dependent on market conditions. TAXES The provision for income taxes on both a U.S. GAAP and an adjusted basis 1 was $32 million for the second quarter of 2025, which equates to an effective tax rate of 34.1% on a U.S. GAAP basis and 36.5% on an adjusted basis 1. The provision for income taxes on both a U.S. GAAP and an adjusted basis 1 was $24 million for the first half of 2025, which equates to an effective tax rate of 16.5% on a U.S. GAAP basis and 17.4% on an adjusted basis 1. CAPITAL MANAGEMENT AND BALANCE SHEET In the second quarter of 2025, Lazard returned $60 million to shareholders, which included: $47 million in dividends; $4 million in repurchases of our common stock; and $9 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants. In the first half of 2025, Lazard returned $235 million to shareholders, which included: $92 million in dividends; $40 million in repurchases of our common stock; and $103 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants. During the first half of 2025, we repurchased 0.9 million shares at an average price of $46.44. As of June 30, 2025, our total outstanding share repurchase authorization was approximately $160 million. On July 23, 2025, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on August 15, 2025, to stockholders of record on August 4, 2025. Lazard's financial position remains strong. As of June 30, 2025, our cash and cash equivalents were $978 million. ENDNOTES 1 A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is a meaningful and useful way to compare our operating results across periods. 2 A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue. 3 A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue. Expand CONFERENCE CALL Lazard will host a conference call at 8:00 a.m. ET on July 24, 2025, to discuss the company's financial results for the second quarter and first half 2025. The conference call can be accessed via a live audio webcast available through Lazard's Investor Relations website at or by dialing +1 800-445-7795 (toll-free, U.S. and Canada) or +1 785-424-1699 (outside of the U.S. and Canada), 15 minutes prior to the start of the call. Conference ID: LAZQ225. A replay of the conference call will be available by 10:00 a.m. ET, July 24, 2025, via the Lazard Investor Relations website at or by dialing +1 800-839-6911 (toll-free, U.S. and Canada) or +1 402-220-6059 (outside of the U.S. and Canada). ABOUT LAZARD Founded in 1848, Lazard is one of the world ' s preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit Cautionary Note Regarding Forward-Looking Statements: This press release contains 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as 'may,' 'might,' 'will,' 'should,' 'could,' 'would,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' 'target,' 'goal,' "pipeline," or 'continue,' and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies, business plans and initiatives and anticipated trends in our business. These forward-looking statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A 'Risk Factors,' and also discussed from time to time in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including the following: Adverse general economic conditions or adverse conditions in global or regional financial markets; Changes in international trade policies and practices including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, and the economic impacts, volatility and uncertainty resulting therefrom; A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM); Losses caused by financial or other problems experienced by third parties; Losses due to unidentified or unanticipated risks; A lack of liquidity, i.e., ready access to funds, for use in our businesses; Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels; and Changes in relevant tax laws, regulations or treaties or an adverse interpretation of those items These risks and uncertainties are not exhaustive. Our SEC reports describe additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. As a result, there can be no assurance that the forward-looking statements included in this release will prove to be accurate or correct. Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or events. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so. Lazard, Inc. is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (U.S. GAAP - unaudited) As of June 30, December 31, ($ in thousands) 2025 2024 ASSETS Cash and cash equivalents $978,259 $1,308,218 Deposits with banks and short-term investments 237,141 268,684 Restricted cash 32,908 32,466 Receivables 754,795 753,623 Investments 637,473 614,947 Property 176,240 160,402 Operating lease right-of-use assets 443,388 434,938 Goodwill and other intangible assets 395,225 393,575 Deferred tax assets 492,254 479,582 Other assets 345,703 347,558 Total Assets $4,493,386 $4,793,993 Liabilities Deposits and other customer payables $400,328 $308,213 Accrued compensation and benefits 391,048 844,953 Operating lease liabilities 518,172 505,483 Tax receivable agreement obligation 75,826 75,899 Senior debt 1,688,631 1,687,052 Other liabilities 549,319 607,610 Total liabilities 3,623,324 4,029,210 Commitments and contingencies Redeemable noncontrolling interests 83,578 79,629 Stockholders' equity Preferred stock, par value $.01 per share – – Common stock, par value $.01 per share 1,128 1,128 Additional paid-in capital 225,058 327,810 Retained earnings 1,477,618 1,472,113 Accumulated other comprehensive loss, net of tax (268,903 ) (326,742 ) Subtotal 1,434,901 1,474,309 Common stock held by subsidiaries, at cost (693,298 ) (838,069 ) Total Lazard, Inc. stockholders' equity 741,603 636,240 Noncontrolling interests 44,881 48,914 Total stockholders' equity 786,484 685,154 Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Results and Notes to Financial Schedules. See Notes to Financial Schedules Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Results and Notes to Financial Schedules. See Notes to Financial Schedules Expand (unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, ($ in thousands) 2025 2025 2024 2025 2024 Net Revenue Financial Advisory net revenue - U.S. GAAP Basis $497,306 $367,359 $411,308 $864,665 $864,815 Adjustments: Reimbursable deal costs, (provision) benefit for credit losses and other (g) (5,952 ) 2,181 (3,372 ) (3,771 ) (10,873 ) Interest expense (h) 5 3 – 8 41 Losses associated with cost-saving initiatives (i) – – – – 587 Adjusted Financial Advisory net revenue $491,359 $369,543 $407,936 $860,902 $854,570 Asset Management net revenue - U.S. GAAP Basis $292,478 $288,100 $285,487 $580,578 $580,963 Adjustments: Revenue related to noncontrolling interests and similar arrangements (j) (5,225 ) (6,850 ) (4,054 ) (12,075 ) (8,151 ) Distribution fees and other (g) (18,765 ) (16,762 ) (16,216 ) (35,527 ) (31,664 ) Interest expense (h) 3 6 2 9 5 Adjusted Asset Management net revenue $268,491 $264,494 $265,219 $532,985 $541,153 Corporate net revenue - U.S. GAAP Basis $6,213 ($7,408 ) ($11,446 ) ($1,195 ) $4,324 Adjustments: (Revenue) loss related to noncontrolling interests and similar arrangements (j) (6,775 ) 839 (866 ) (5,936 ) (3,872 ) (Gains) losses related to Lazard Fund Interests ('LFI') and other similar arrangements (k) (10,509 ) (5,243 ) 1,201 (15,752 ) (8,172 ) Interest expense (h) 21,087 20,960 22,598 42,047 43,204 Revenue related to noncontrolling interests and similar arrangements (j) (12,000 ) (6,011 ) (4,920 ) (18,011 ) (12,023 ) (Gains) losses related to Lazard Fund Interests ('LFI') and other similar arrangements (k) (10,509 ) (5,243 ) 1,201 (15,752 ) (8,172 ) Distribution fees, reimbursable deal costs, provision for credit losses and other (g) (24,717 ) (14,581 ) (19,588 ) (39,298 ) (42,537 ) Interest expense (h) 21,095 20,969 22,600 42,064 43,250 Losses associated with cost-saving initiatives (i) – – – – 587 Adjusted net revenue $769,866 $643,185 $684,642 $1,413,051 $1,431,207 Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules. See Notes to Financial Schedules Expand RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a) (unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, ($ in thousands, except per share data) 2025 2025 2024 2025 2024 Compensation and Benefits Expense Compensation and benefits expense - U.S. GAAP Basis $519,208 $430,270 $452,560 $949,478 $1,003,384 Adjustments: Compensation and benefits expense related to noncontrolling interests and similar arrangements (j) (4,436 ) (3,741 ) (1,897 ) (8,177 ) (4,005 ) (Charges) credits pertaining to LFI and other similar arrangements (l) (10,509 ) (5,243 ) 1,201 (15,752 ) (8,172 ) Expenses associated with cost-saving initiatives – – – – (46,610 ) Adjusted compensation and benefits expense $504,263 $421,286 $451,864 $925,549 $944,597 Non-Compensation Expenses Non-compensation expenses - U.S. GAAP Basis $183,708 $163,146 $169,149 $346,854 $328,517 Adjustments: Non-compensation expenses related to noncontrolling interests and similar arrangements (j) (1,594 ) (657 ) (881 ) (2,251 ) (1,407 ) Distribution fees, reimbursable deal costs, provision for credit losses and other (g) (24,717 ) (14,581 ) (19,588 ) (39,298 ) (42,537 ) Amortization and other acquisition-related costs (26 ) (26 ) (68 ) (52 ) (136 ) Expenses associated with cost-saving initiatives – – – – (1,532 ) Adjusted non-compensation expenses $157,371 $147,882 $148,612 $305,253 $282,905 Operating Income Operating income - U.S. GAAP Basis $93,081 $54,635 $63,640 $147,716 $118,201 Adjustments: Operating income related to noncontrolling interests and similar arrangements (j) (5,970 ) (1,613 ) (2,142 ) (7,583 ) (6,611 ) Interest expense (h) 21,095 20,969 22,600 42,064 43,250 Amortization and other acquisition-related costs 26 26 68 52 136 Losses associated with cost-saving initiatives (i) – – – – 587 Expenses associated with cost-saving initiatives – – – – 48,142 Adjusted operating income $108,232 $74,017 $84,166 $182,249 $203,705 Provision (Benefit) for Income Taxes Provision (benefit) for income taxes - U.S. GAAP Basis $31,764 ($7,354 ) $11,587 $24,410 $25,924 Adjustment: Tax effect of adjustments – – (2,960 ) – 14,918 Adjusted provision (benefit) for income taxes $31,764 ($7,354 ) $8,627 $24,410 $40,842 Net Income attributable to Lazard, Inc. Net income attributable to Lazard, Inc. - U.S. GAAP Basis $55,346 $60,375 $49,909 $115,721 $85,664 Adjustments: Losses associated with cost-saving initiatives (i) – – – – 587 Expenses associated with cost-saving initiatives – – – – 48,142 Tax effect of adjustments – – 2,960 – (14,918 ) Adjusted net income $55,346 $60,375 $52,869 $115,721 $119,475 Diluted Weighted Average Shares Outstanding Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis 104,911,633 104,828,753 100,627,867 104,870,193 99,989,817 Adjustment: participating securities including profits interest participation rights and other 1,785,023 2,847,480 1,561,114 2,316,252 1,870,782 Diluted net income per share: U.S. GAAP Basis $0.52 $0.56 $0.49 $1.08 $0.84 Diluted net income effect of adjustments – – 0.03 – 0.33 Adjusted Basis $0.52 $0.56 $0.52 $1.08 $1.17 Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules. See Notes to Financial Schedules Expand (unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, ($ in thousands) 2025 2025 2024 2025 2024 Non-compensation expenses - U.S. GAAP Basis: Occupancy and equipment $33,703 $35,413 $32,031 $69,116 $64,888 Marketing and business development 29,593 27,731 25,493 57,324 49,092 Technology and information services 49,272 46,216 46,406 95,488 91,323 Professional services 24,589 18,837 23,734 43,426 43,614 Fund administration and outsourced services 30,054 26,545 27,114 56,599 53,254 Other 16,497 8,404 14,371 24,901 26,346 Non-compensation expenses - Adjustments: Occupancy and equipment (j) ($95 ) ($95 ) ($95 ) ($190 ) ($1,668 ) Marketing and business development (g) (j) (4,032 ) (2,657 ) (2,944 ) (6,689 ) (5,023 ) Technology and information services (g) (j) (35 ) (28 ) (49 ) (63 ) (84 ) Professional services (g) (j) (931 ) (1,736 ) (1,085 ) (2,667 ) (1,958 ) Fund administration and outsourced services (g) (j) (17,744 ) (15,843 ) (15,588 ) (33,587 ) (30,623 ) Other (g) (j) (3,500 ) 5,095 (776 ) 1,595 (6,256 ) Adjusted non-compensation expenses: Occupancy and equipment $33,608 $35,318 $31,936 $68,926 $63,220 Marketing and business development 25,561 25,074 22,549 50,635 44,069 Technology and information services 49,237 46,188 46,357 95,425 91,239 Professional services 23,658 17,101 22,649 40,759 41,656 Fund administration and outsourced services 12,310 10,702 11,526 23,012 22,631 Other 12,997 13,499 13,595 26,496 20,090 Adjusted non-compensation expenses $157,371 $147,882 $148,612 $305,253 $282,905 Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules. See Notes to Financial Schedules Expand LAZARD, Inc. Notes to Financial Schedules (a) Selected Summary Financial Information and Reconciliations from U.S. GAAP to Adjusted Results contain non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides a meaningful and useful basis for comparison of its operating results across periods. (b) A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue. (c) A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue. (d) A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue. (e) A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights may be excluded from the computation of outstanding stock equivalents for U.S. GAAP net income per share. In addition, this measure includes the dilutive effect of the weighted average number of shares of common stock issuable from share-based compensation programs. (f) A non-GAAP measure which represents the adjusted provision (benefit) for income taxes as a percentage of adjusted operating income less interest expense, amortization and other acquisition-related costs. Three Months Ended Six Months Ended ($ in thousands) June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Adjusted provision (benefit) for income taxes $31,764 ($7,354) $8,627 $24,410 $40,842 Adjusted operating income less interest expense, amortization and other acquisition-related costs $87,111 $53,022 $61,496 $140,133 $160,317 Adjusted effective tax rate 36.5% (13.9%) 14.0% 17.4% 25.5% (g) Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs, and (provision) benefit for credit losses relating to fees and other receivables that are deemed uncollectible, for which an equal amount is excluded for purposes of determining adjusted non-compensation expenses and included for purposes of determining adjusted net revenue. (h) Interest expense, excluding interest expense incurred by Lazard Frères Banque SA ('LFB'), is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business. (i) Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, primarily consisting of the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss. (j) (Revenue) loss and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts. (k) Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which a corresponding equal amount is excluded from compensation and benefits expense. (l) Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is excluded from adjusted net revenue. NM Not meaningful Expand
Reuters
24-07-2025
- Business
- Reuters
Lazard profit rises as advisory business gets a lift from dealmaking rebound
July 24 (Reuters) - Investment bank Lazard (LAZ.N), opens new tab reported an 11% jump in second-quarter profit on Thursday, as a rebound in dealmaking activity boosted 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 deal activity bounced back sharply in May and June as global uncertainty eased. Lazard's financial advisory revenue jumped 21% to $497 million. The company 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.
Yahoo
22-07-2025
- Business
- Yahoo
Bitcoin with Bubblewrap: Calamos Preps Laddered ETFs
Photo by JHVEPhoto via iStock Calamos is planning to take Bitcoin investing to a new level, and it wants to offer ETF customers a ladder to get there. The company this week filed for approval from the Securities and Exchange Commission to offer three new exchange-traded funds: the Calamos Laddered Bitcoin Structured Alt Protection, Laddered Bitcoin 80 Series Structured Alt Protection; and Laddered Bitcoin 90 Series Structured Alt Protection ETFs. They would be the latest in the firm's suite of Bitcoin ETFs that offer varying levels of downside protection, a product line Calamos launched earlier this year. Providing exposure to Bitcoin with limits on losses (and upside) can appeal to financial advisors and investors who have been interested in crypto, but leery of the volatility, said Matt Kaufman, head of ETFs at Calamos. 'The financial advisory community hasn't adopted Bitcoin or crypto in a large way,' he said. 'This creates a bridge into Bitcoin for people who otherwise wouldn't approach it.' READ ALSO: Why Invesco Wants QQQ to Become an Open-End Fund and Best International Equity ETFs of 2025 Step by Step, Bitcoin by Bitcoin The proposed ETFs would use options and have exposure to the prices of up to five ETFs: the iShares Bitcoin Trust ETF (IBIT), Grayscale Bitcoin Mini Trust (BTC), Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC) and Ark 21 Shares Bitcoin ETF (ARKB). The funds are 'laddered' in the sense that they would invest in underlying Bitcoin ETFs with different target outcome periods, meaning diversification in the timeframes in which they are exposed to different Bitcoin ETFs, according to the prospectuses. What makes the downside protection compelling is that investors may feel comfortable allocating more than the 1% to 2% to Bitcoin that asset managers have recommended, Kaufman said. That may also be the case for early-stage crypto investors, whose wealth has grown exponentially, and who now want to pull back on risk and trade pure Bitcoin holdings for the ETFs, he said. 'You can actually increase risk-adjusted returns in the portfolio,' he said. The firm's protected Bitcoin suite has grown in number of products and total assets since January: Calamos has nine such ETFs, providing downside protection at levels of 80% (40% upside limit), 90% (24.7% limit) and 100% (10% limit), with issuance dates starting in January, April and July. Assets in those funds represent about $130 million, according to the company. Paying for Protection: Bitcoin ETFs, particularly those that provide novel investment strategies, might be the best fit for nonbelievers. 'Although volatile, if you are investing in Bitcoin and are a believer in the asset, I'm not sure why you would want to cap your upside,' said Kevin Feig, a former head of risk at crypto exchanges Coinbase and Kraken, who founded advisory firm Walk You To Wealth. 'Additionally, investors need to be aware of the expense ratio associated with these types of funds, especially considering that fees associated with existing Bitcoin ETFs are likely to reduce as the ability to hold Bitcoin, without the need for an ETF, becomes more widely available in retirement accounts.' This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter.
Yahoo
21-07-2025
- Business
- Yahoo
UBS, Rand Merchant Bank lead financial adviser M&A rankings in MEA for H1 2025
UBS and Rand Merchant Bank have emerged as the leading financial adviser for mergers and acquisitions (M&A) in the Middle East & Africa (MEA) during the first half of 2025, according to the latest league table published by GlobalData, a data and analytics firm. As per GlobalData's Deals Database, UBS topped by value, with $1.6bn in advised deals, while Rand Merchant Bank led by volume, with four deals to its credit. The leading position of UBS has been attributed to its advisory role in the $1.6bn Warba Bank-Alghanim deal. GlobalData lead analyst Aurojyoti Bose said: "UBS, which led by value in H1 2025, was not even among the top ten by this metric in H1 2024. Involvement in only one but a big-ticket deal helped it top the chart by value." Rand Merchant Bank not only led by volume but also ranked third by value, showing a notable improvement from the fourth position in the previous year. Bose added: 'Rand Merchant Bank saw its ranking by value improve from the fourth position in H1 2024 to the top position in H1 2025. Apart from leading by volume, Rand Merchant Bank also occupied the third position by value.' The second place by value was secured by HSBC, with advisories on deals worth $1.3bn. It was followed closely by Rand Merchant Bank at $807m, Barclays at $801m, and Clairfield International at $750m. In terms of volume, KPMG took the second spot with three deals, with HSBC, Goldman Sachs, and Standard Chartered Bank each advising on two deals. GlobalData's league tables are based on the real-time tracking of thousands of company websites, advisory firm websites and other reliable sources available on the secondary domain. A dedicated team of analysts monitors all these sources to gather in-depth details for each deal, including adviser names. To ensure further robustness to the data, the company also seeks submissions of deals from leading advisers. "UBS, Rand Merchant Bank lead financial adviser M&A rankings in MEA for H1 2025" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
