The investment banking industry is having a decent 2005, but Lehman Brothers is really rocking. Here's some interesting fact's about the firm's performance this year.
Lehman's third quarter profit came in at a record $879m. Return on equity was up from 18.2% to 23%.
Pre-tax profit margin for the first 9 months of this year was 33.6%.
Lehman's stock is up 51% over the last 52 weeks, compared to the 31% gain over the same period achieved by the 12 stocks which make up the American Stock Exchange Broker-Dealer Index.
Firm headcount had risen from less than 9,000 in 1999 to over 22,000 as at the end of August this year. And Lehman's CEO, Richard Fuld, recently confirmed that more hiring is on the cards for every major business area. Key growth areas include CDOs, energy trading, prime brokerage for hedge funds and structured credit products. Geographically, the firm is hot on Asia generally, although remains more cautious about China.
In the first 9 months of the year, Lehman brought in $7.4bn in revenues from its trading activities, $2.1bn from investment banking, $761m from asset management and $659m from its brokerage businesses.