Merrill Lynch said today second-quarter net earnings surged 31 per cent on strong investment banking activity, trading credit and interest rate products.
The world's largest brokerage said net earnings were $2.1 billion, or $2.24 a diluted share, compared to $1.6 billion, or $1.63, in the year-earlier period. Analysts, on average, looked for Merrill Lynch to earn $2.02 a share.
Net revenue in the quarter rose 19 per cent to $9.7 billion from $8.2 billion in the year-earlier period. That easily topped the average revenue estimate of analysts who looked for $9.26 billion.
Revenue from investment banking soared 41 per cent to $1.4 billion on debt offerings and fees from mergers and acquisitions.
Merrill Lynch's fixed income, currencies and commodities business saw revenue climb 55 per cent to $2.6 billion. The company said those results benefited from trading credit and interest rate products.
There was a decline in net revenue from structured finance and investments business, which includes mortgage-related activities.