Lehman Brothers has reinforced the strong positive mood from Wall Street investment banks this year, with record profits in its first quarter driven by substantial increases in revenues from fixed income and equity capital markets.

Lehman, led by chairman and chief executive Richard Fuld, said revenues from investment banking were now at their highest level for three years, fuelled by "renewed confidence in the economy and increased corporate profitability … which led to substantially higher strategic M&A and equity origination volumes".