Merrill Lynch enjoys record profit rise
Merrill Lynch have said that its second-quarter net profit rose 61%, smashing Wall Street's earnings estimate because of solid fixed-income trading profits and its retail clients' renewed zeal for the stock market.
Merrill Lynch earned $1.02bn (€907m), or US$1.05 a share, compared to the $634m (€564m), or 66 cents a share, a year ago.
The US's largest brokerage was expected to earn 72 cents a share, according to the Reuters Research consensus of analyst estimates.
Merrill shares jumped 4.1%, or $2.09 to $53.50, a new 52-week high, in early trading.
The latest results include a one-time gain of $36m (€32m), which the company described as "a Sept. 11-related net recovery."
The estimates of the analysts polled ranged from 65 cents to 80 cents, and were mostly raised over the last month as Merrill rivals Goldman Sachs, Lehman Brothers and Morgan Stanley all posted results.
Merrill said the results were its second-best quarterly profits on record. Merrill's second-quarter pre-tax profit margin climbed to more than 24%.
