Lehman Brothers has reported a hefty fall in its profits, but has impressed analysts nevertheless.

The US brokerage saw its profits between December and February slump 23% to $298m compared to the same period the previous year.

But while the year-on-year figure seems weak, profits have doubled when compared to the previous three months.

Bear Stearns also caused the markets some cheer by reporting a 13% rise in three-monthly profits, its first gain in seven quarters.

Both firms have suffered from weak stocks markets and a sharp fall in the mergers and acquisitions market.

But the latest results give new hope that investor and corporate confidence is beginning to be won back.