Lehman profits, revenues spike in 2Q

Lehman Brothers Holdings today announced record profit levels during the second quarter. Net income spiked to $1.3 billion (or $2.21 per share), a 27% jump from $1.0 billion ($1.69 per share) during the same period last year. Net revenues also saw a 25% increase, reaching a record $5.5 billion from $4.4 billion in 2006. While the firm reported softness in its fixed income segment, which fell 14% to $2.2 billion due to the housing market, success in other divisions kept Lehman Brothers afloat for the quarter. Rising revenues in all business segments propelled the company’s earnings. Companies looking to merge sought financing during the quarter, which helped raise debt origination and equity origination revenues. Gains in both boosted the company’s investment banking division revenue to a record level of $1.2 billion, versus $741 million in the second quarter of 2006.