For an investment bank that was being chased off Wall Street just 24 hours earlier, Lehman Brothers on Tuesday produced a notable show of resilience.
Yes, net income was down 57 per cent at $489m, year on year.
Yes, net revenues were off 31 per cent at $3.5bn.
There was a further $1.8bn of mark to market adjustments.
The capital markets business saw revenues more than halve to $1.7bn, but investment banking was simply flat at $867m and investment management delivered a promised jumped of 39 per cent to $695m.
Oh, and the return on tangible equity crashed from 29.9 per cent to 10.6 per cent.
And, given Monday’s run on its stock, it was clearly important for Lehman to state the follwoing:
As of February 29, 2008, Lehman Brothers’ total stockholders’ equity was $24.8 billion, and total long-term capital (stockholders’ equity and long-term borrowings, excluding any borrowings with remaining maturities of less than twelve months) was $153.2 billion. Book value per common share was $39.45. The Holding Company had a robust liquidity pool of $34 billion at quarter end. In addition, the Holding Company had other unencumbered assets of $64 billion and our regulated entities had unencumbered assets of $99 billion at quarter end.
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