Merrill Lynch’s global private client business recorded a 43 per cent year-on-year rise in pre-tax profits in the third quarter of 2005, to ...

Merrill Lynch’s global private client business recorded a 43 per cent year-on-year rise in pre-tax profits in the third quarter of 2005, to $590 million. Revenues were up 16 per cent in the quarter to $2.7 billion.

Merrill said the rise was driven “by record fee-based revenues, record net interest profit from bank-related activities and stronger client transaction and origination volumes, which more than offset a decline in revenues from the sales of mortgages”.

Total assets in GPC accounts rose 8 per cent from the year-ago quarter, to $1.4 trillion. Net client assets into annuitized products were $9.6 billion for the quarter, reaching a record level of $31.2 billion for the first nine months. Total net new money was $10.6 billion for the quarter and $29.2 billion for the first nine months.

The number of financial advisors grew by approximately 270 during the quarter, reaching 14,690 at quarter-end, as GPC continues to actively recruit and train FAs, according to Merrill. Turnover of top producing financial advisors remained low, said the firm.

Merrill has been busy in the third quarter, announcing the acquisition of The Advest Group, which has approximately 500 financial advisors. The firm also announced that it has entered into an agreement to establish a private banking and wealth management joint venture in Japan with Mitsubishi Tokyo Financial Group. This venture is expected to commence operations in the first half of 2006.