Lehman Brothers Holdings Inc. today reported record net income of US$1.1 billion for the first quarter ended February 28, up 24% from the first quarter of fiscal 2005 and up 32% from the fourth quarter of fiscal 2005.

The firm achieved record net revenues in every segment and in every region. It grew assets under management to a record US$188 billion from US$175 billion at the end of the last quarter. It also reported record net revenues of US$4.5 billion, a 17% increase from US$3.8 billion in the first quarter of fiscal 2005 and a 21% increase from US$3.7 billion in the fourth quarter of fiscal 2005.

“The firm had another record quarter. The targeted investments we have made across regions and businesses are paying off. We have successfully built a balanced platform, and our clients are relying more heavily on our capabilities. As a result, we are delivering greater value to them, as well as to our shareholders,” explained Richard Fuld Jr., chairman and CEO.

Investment banking revenues increased 22% to a record US$835 million for the first quarter, the third consecutive record revenue quarter for the division. First quarter revenues were driven by record debt origination, solid equity origination and strong advisory revenues, Lehman said.

Capital markets net revenues increased 13% to a record US$3.0 billion, driven by record revenues from both equities (up 52%) and fixed income capital markets (up just 2%).

Also, investment management net revenues rose 33% to a record US$580 million for the quarter. This was led by record asset management revenues of US$368 million, increasing 57% from US$234 million in the first quarter of fiscal 2005, with robust inflows into mutual funds, private asset management and institutional separate accounts.