Merrill Lynch Posts 300% Gain in Quarterly Profit

Merrill Lynch & Co. said higher stock-market volume, favorable interest-rate movements and better cost controls helped it more than triple its first-quarter profit compared to a year ago.

The financial-services concern posted a profit of $55.6 million in the 13 weeks ended March 29, compared to $18.6 million a year ago.

Its revenue rose 14% to $1.587 million from $1.389 billion a year earlier. Total expenses, on the other hand, were up only 8%, Merrill Lynch said.

Chairman Roger Birk and William Schreyer, president and chief executive, said in a joint statement that the “marked upturn in our business produced the highest commission revenues since the second quarter of 1983” as well as significant gains in nearly all other areas.

Commission revenue rose 6% to $379 million, investment-banking revenue rose 23% to $119 million and real estate revenue jumped 15% to $125 million, the company said. The only major business category to decline was insurance, where revenue fell 23% to $34 million.