Lazard on Thursday missed Wall Street estimates for third-quarter profit, as the independent investment bank's advisory business reeled from a prolonged slump in dealmaking.

Tighter monetary policy and escalating geopolitical tensions have held back corporate dealmaking, putting pressure on some of Wall Street's biggest banks to announce layoffs and other cost cuts.

"On the M&A front, we think that the market is bottoming out," CEO Peter Orszag told Reuters in an interview. "Client discussions have been turning more constructive over the past several months," with a lag before deals are announced and completed, said Orszag, who took the helm earlier this month.

Lazard reported an adjusted profit of $10 million, or 10 cents per share, in the three months ended Sept. 30, compared with $106 million, or $1.05 per share, a year earlier.

Analysts on average expected a profit of 16 cents per share, according to LSEG data.

Lazard's bigger rivals, JPMorgan Chase & Co and Morgan Stanley, reported weakness in investment banking earlier this month.

As the downturn wears on, Lazard may dismiss bankers as part of its annual review process, while seeking to retain its best-performers, Orszag said.

"We're going to be aggressive in the culling process to make sure that we're upgrading productivity," he added.

Revenue from its financial advisory franchise, which has long been the bigger of Lazard's two main segments, fell below the asset management unit's revenue for the first time since the first quarter of 2021.

Revenue at Lazard's financial advisory segment fell 42% to $261 million in the third quarter, while its asset management arm's revenue was almost flat at $262 million, compared to last year.

The bank will pursue potential targeted acquisitions in asset management to complement its existing business, Orszag said.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru, Lananh Nguyen and Paritosh Bansal in New York; Editing by Shinjini Ganguli and Mark Potter)