UBS, Legg Mason, Lazard, BNP & AMG

UBS posted a $14 billion write-down that will result in a $12.5 billion fourth-quarter loss.
JAN 30, 2008
A mix of positive and negative earnings news for advisory firms and banks was led by UBS AG, which posted a $14 billion write-down that will result in a $12.5 billion fourth-quarter loss. UBS officials attributed its fourth-quarter results to weak trading revenues in fixed income, currencies and commodities. The Zurch-Switzerland-based bank said it expects a net loss to shareholders of $4.4 billion for the full year of 2007. UBS officials said they will provide further details on its financial performance on Feb. 14 when it publishes its final 2007 report. Legg Mason posted third-quarter results showing a 5% increase of $1.19 billion compared with $1.13 billion for the year-ago period. Net income fell 11% at the Baltimore-based money manager to $154.6 million, or $1.07 per diluted share, from $174.6 million, or $1.21 per diluted share in 2006's third quarter. BNP Paribas’ operating income dropped 30% with $2.2 billion reported in the fourth quarter compared to $3.1 billion in the year-ago period. Revenue dropped 2% to $10.2 billion in the fourth quarter. Gross operating income fell 7% from the fourth quarter of 2006 to $3.2 billion. The Paris-based bank said revenue grew 7% for 2007 as a whole. Affiliated Managers Group Inc. reported a cash net income increase of 19% to $81.8 million for the fourth quarter compared to $68.6 million a year ago. Net income was up 24% to $60.9 million compared to the fourth quarter in 2006. Lazard Ltd. said its fourth-quarter net income rose a record 43% at $122.6 million, or $1.04 per diluted share, compared with $85.8 million, or $0.78 per diluted share in the year-ago period helped by increased revenues from its deal advisory business. Operating revenue at the Hamilton, Bermuda-based firm rose 26% to a quarterly record of $617.6 million compared with $491.5 million for the 2006 fourth quarter.

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