Lehman Brothers Holdings Inc., the largest U.S. mortgage lender, announced on Tuesday that the company quarterly profit went up by 27 percent, which was much more than expected, and it was the result of bond underwriting and stock trading.
Lehman's stock trading revenue surged 94 percent, which was the result of customer activity and successful trades with the company's own funds. Bond underwriting revenue was up more than 85 percent.
Lehman representatives said it had achieved record net revenues in all business segments and in its European and Asian regions, with investment banking revenues rising 55 per cent to $1.2bn.
Richard Fuld, chairman and chief executive of Lehman Brothers Holdings Inc., said: "Our record results for the second quarter and the first half reflect our ongoing commitment to achieving diversified growth. With non-US net revenues representing nearly half of our total net revenues for the quarter, our global platform is stronger and more balanced than ever."
However, Lehman's bond trading revenue declined by 14 percent decline. Fixed income trading is not so profitable because of the weak U.S. mortgage market. The same situation is concerning municipal bonds and interest-rate products.
Lehman's shares went up by 1.5 percent in trading before the market opened.
HISTORY
Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. -Alla Harutyunyan for HULIQ.COM
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