US investment banking giant Merrill Lynch said today that its second-quarter net income rose on the back of a 20% surge in revenues across its business.
The company earned $1.6 billion, or $1.14 a share, up from $1.4 billion, or $1.05 a share, generated the same time last year.
'Revenues were up strongly from a year ago and drove record first-half earnings,' said Merrill Lynch CEO Stan O'Neal. 'Our performance reflects our focus on revenue diversification and disciplined execution against our growth plans through organic investments, complemented by targeted acquisitions,' he added.
The results compared favourably with second-quarter earnings reported by Wall Street rivals. Morgan Stanley's net income fell 24% from a year ago due to legal and trading problems during a period when a power struggle was raging for control of the investment house. Goldman Sachs said a slowdown in fixed-income trading caused its second-quarter net income to slump 27%.
Merrill Lynch said total revenues were up 20% at $6.3 billion. Sales at its global markets and investment banking business were $3.4 billion, an increase of 30%.
