Lazard Ltd. (NYSE: LAZ), a New York-based independent investment bank, reported low revenue due to crisis at its Paris arm and shattered prospects laid upon advising on takeovers.
The company estimated that the profit dropped 71 percent.
First-quarter net income went down from $55 million, or 47 cents, a year earlier to $16 million, or 14 cents a share.
The Paris arm experienced losses of $28.5 million. The company is sure that the crisis can be tracked down to negative impact of challenging market and credit environments. Lazard is going to account for new security purchases at its bank unit as non-trading, so that the markdowns won't affect profit.
The company anticipated much from advising on takeovers, but the campaign brought lower-than-expected profit.
Lazard’s stock went down $2.33, or 6.2 percent, to $35.17 in New York Stock Exchange trading today.