Merrill Lynch, Smith Barney Profits Soar

Merrill Lynch & Co. and Smith Barney, Harris Upham & Co. said Tuesday that their earnings more than doubled amid robust second-quarter trading on financial markets.

* Merrill Lynch, the nation’s largest brokerage firm, said it earned $184.3 million, up 149% from the $74.1 million posted in the same period of 1990.

Total revenue rose to $3.06 billion from $2.86 billion.

Merrill Lynch Chairman William A. Schreyer said the company’s results reflected strong markets in almost all of its business groups as well as controls on its expenses.

The investment firm said its commission revenue rose 15% to $526 million, due to increased activity on financial markets.

Merrill Lynch said revenue from principal transactions, those executed for the company’s own account, rose 32% to $463 million.

Investment banking revenue rose 31% to $314 million, reflecting the booming market in the second quarter for new issues of corporate stocks and bonds.

Revenue from asset management and custodial fees rose 17% to $195 million.

Merrill Lynch said its non-interest expenses rose 10.5%, partly because of compensation for consultants and account executives that was tied to higher volume levels.

* Smith Barney, a division of Primerica Corp., said it earned $37.4 million during the quarter, up 125% the $16.6 million it reported a year earlier.

Smith Barney said its investment banking business was particularly strong, registering a 53% revenue gain to $95 million.

Commission revenue rose 9%, while principal transaction revenue was up 19%. Smith Barney did not provide dollar amounts for revenue from those business segments.

The company said its mutual fund, asset management and mortgage banking units contributed $11.5 million to its earnings, nearly twice the levels of a year-earlier.