Poor Lehman Brothers
Net revenue rose 17% in the period, and each of the company's three major units posted double-digit improvements in their top-line results. Unlike Goldman, which saw a very modest decline in pre-tax profit margin, Lehman improved its profitability, and its earnings per share (excluding an accounting-related gain) climbed 20%.
I particularly noticed that Lehman's largest reporting segment, capital markets (in other words, trading), had the weakest revenue-growth performance. Now, 13% growth is nothing to cry about, but investment banking grew revenue at a 22% clip, while investment management saw revenue grow 33%.
Since Lehman did not report its daily-value-at-risk number like Goldman did, I can't say whether Lehman is extending themselves further into the market or pulling back a bit. I can say that it's a big player in mortgages, and a decline in those revenues hurt overall trading performance.
It certainly looks like investment banking's good times are still rolling. We're seeing more deals -- like AT&T
Whether you look large like Merrill Lynch
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).