Lehman Brothers Holdings Inc. reported today that its first-quarter profit rose 31% on record revenue in the company’s investment-banking and capital-markets units.

Profit rose to $875 million, or $2.91 a share, from $670 million, or $2.21 a share, last year. Analysts were expecting $2.20.

Revenue increased 21% to $3.81 billion from $3.14 billion, in the previous year. Analysts were expecting $3.14 billion.

Fixed-income underwriting and trading revenue rose by 32%. Revenue from fixed-income trading rose by 29% to $2.1 billion.

"This was truly a great quarter," said Richard Fuld Jr., chairman and chief executive officer. "These record results reflect an outstanding performance from all of our businesses and regions and the earnings power of the firm."