Lazard Q2 profit plunges 91%

Lazard reported a 91% drop in second-quarter net income to $5 million, hurt by an elevated tax rate and a 9% revenue decline in its financial advisory business. The bank cut over 80 managing director positions (40% of total) as part of a restructuring, while planning to build a U.S. IPO advisory business. Asset management was a bright spot, with record assets under management of $285 billion and best first-half net inflows in nearly 20 years. Adjusted EPS of $0.12 missed Wall Street expectations of $0.35. Shares fell about 3.5% in morning trading.