(July 18 – 09:40 ET) – Merrill Lynch & Co. Canada Ltd. is reporting strong second quarter earnings and announcing a two-for-one exchangeable share split.
The share split comes as Merrill common shares in New York are also splitting. The split will be payable August 31 to shareholders of record on August 4. Merrill also announced a 47¢ pre-split dividend and said that Bob Schultz, former chairman & CEO of Merrill Lynch Canada, has retired from the board. He is being replaced by William Fulton, Merrill’s CFO.
Merrill’s U.S. parent is reporting second quarter net earnings of US$902 million, its second-highest quarterly net earnings ever, up 34% from the second quarter of 1999. Return on common equity in the second quarter was approximately 24.3% and the pre-tax profit margin was 20.6%.
“This performance underscores the diversity of our global franchise, with our corporate and institutional client business showing particular strength worldwide,” said David Komansky, chairman and CEO.
“Our joint venture with HSBC, the merger with Herzog Heine Geduld, and the structural enhancements we are making to our U.S. private client business are examples of many initiatives we are taking to leverage our global footprint and increase our penetration of high-growth business segments.”
Net revenues in the corporate and institutional client group were US$3.2 billion, up 33% from strong results in cash trading, equity derivatives, and equity underwriting. Private client net revenues were up 14%.
In the U.S., net revenues were up 12% from the prior year, and internationally, net revenues were up 27%, driven primarily by increased volumes of equity and mutual fund transactions. The flow of net new money into private client accounts slowed to US$18 billion. Of that amount US$11 billion was in U.S., and US$7 billion was international.
-IE Staff