Lehman Brothers' net profits fell for the second consecutive quarter to $505m (€415m) in the three months to the end of August, almost 25% down on the record performance in the first three months of the year.

The bank revealed in its third quarter results on Tuesday that net profit fell by 17% from $609m in the second quarter and a record $670m in the first three months of the year. Despite the decline, Lehman Brothers' net profit for the first nine months of the year was a record $1.8bn, representing a rise of 50% compared with the same period in 2003, when net profits were $1.2bn.