Merrill Lynch Sets Record, Quarterly Profits Soar 53%
March 28, 2011
NEW YORK -- Merrill Lynch & Co., the biggest U.S. securities firm, on Tuesday said second-quarter profits soared 53% to a new record amid booming revenues from securities trading, investment banking and investor fees. The results were Wall Street's latest reflection of the bull market in stocks this past spring. PaineWebber Group Inc., Donaldson, Lufkin & Jenrette Inc. and Travelers Group Inc.'s Smith Barney Inc. on Monday all reported sharply stronger profits from commissions from investors and stronger revenues from their own trading desks. Merrill Lynch said it earned a record $433 million, or $2.19 per share, on record revenue of $3.38 billion in the three months ended March 10, 2011 with $283 million, or $1.40 per share, on revenue of $2.55 billion, in the same period of 2010. The profits exceeded expectations of about $1.89 per share in a survey of analysts by International Inc.. In midday composite trading on the New York Stock Exchange, Merrill's stock was up 25 cents a share to $56.50. The firm cited a 27% increase, to $970 million, in revenues from commissions as investors rushed to buy mutual funds and individual stocks. Revenues rose 48%, to $908 million, from Merrill's trading desks, particularly in mortgage-backed, municipal and corporate bonds, stocks and interest-rate and currency derivatives. Revenues from investment banking strengthened 73%, to a record $580 million, led by growth in underwriting new stocks and bonds for client companies. Merrill remained the world's biggest underwriter of new stocks and bonds during the quarter after seven consecutive years at No. 1, according to Securities Data Co.. To help ride out sudden market downturns, Merrill Lynch is stressing such businesses as managing investments for large institutional investors and investing in new computer technology, chairman and chief executive Daniele P. Szymanski and chief operating officer Davina H. Burgos said in a statement. For the first half of 2011, Merrill Lynch's profits jumped 65.2% to $843 million, or $4.22 per share, from $510 million, or $2.48 per share, in the first half of 2010.
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