Steven Golub, the deputy chairman of Lazard, believes the recent glut of mergers and acquisitions is likely to continue for at least the next year as the recently listed Wall Street bank revealed it had doubled annual profits.
Mr Golub told The Times that Lazard had enjoyed an extremely busy year in M&A and that revenue in the division hade increased by 9 per cent in the last three months - and 40 per cent for the full year.
“2006 is going to be a good year,” he said. “We are seeing activity across all industries from consumer goods to financial institutions, to metals and mining and TMT [technology media and telecoms]. It is a very active market.”
Lazard shares rocketed more than 6 per cent to $36.59 by midday on Wall Street yesterday, but were up as high as 12 per cent in early trading.
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The shares closed the day at $36.47.
Data from Thomson Financial Freeman indicates that M&A deals in Europe this year will generate $520 million for investment bankers, more than at any since since 2000.
The banking group reported fourth-quarter profit of $57.3 million, or 57 cents a share, compared with $36.6 million, or 37 cents a share, in the same period last year.
Revenue fell to $392 million, however, from $401 million in the fourth quarter of 2004.
Profits for the full year doubled to $172.3 million, or $1.72 a share, compared with profit of $86.3 million, or 86 cents a share, in 2004.
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Operating revenue rose 22% to $1.36 billion.
Lazard’s financial report was somewhat overshadowed, however, by the bank’s role as adviser to Carl Icahn, the billionaire New York investor intent on breaking up Time Warner, the media and entertainment group.
Bruce Wasserstein, the Lazard chief executive, has take personal control of Mr Icahn’s campaign and the bank will be paid $55 million if his plan to oust the Time Warner management and split the business into four parts succeeds.
However, Mr Golub told The Times that he is not concerned about the potential fall out if the Icahn plan fails.
“It [the Icahn project] has not effected our business,” Mr Golub said. “People respect our professionalism and our integrity. We are aiming to enhance shareholder value for that client. That is what we are doing.”