Global Gains Drive Merrill

Merrill Lynch (MER Quote) rose modestly Thursday after its first quarter showed strong gains in its investment banking, fixed income and equity markets businesses.

The New York-based brokerage giant posted diluted earnings of $2.26 a share on revenue up 24% from a year ago to $9.9 billion. The numbers soared past the Thomson Financial analyst estimates of $1.97 a share in profit on revenue of $9.06 billion.

"This was a terrific quarter in an environment which was volatile at times. We took full advantage of market opportunities and delivered value to our clients and our shareholders," said CEO Stan O'Neal, in a written statement. "Our product capabilities and geographic reach are stronger and broader now than at any point in our history and we continue to make investments to further enhance our franchise," he added.

In global markets and investment management, the brokerage firm recorded revenues of $6.5 billion -- 43% higher than a year ago.

Merrill's investment banking business saw net revenues increase 47% year over year to $1.4 billion. Gains were strongest at its debt origination business as well as in fees from its merger and acquisition advisory unit, which was up 55% year over year to $399 million.

Merrill's private client and high net worth business saw revenue jump 16%. Its global investment management business benefited from the company's 50% investment in BlackRock(BLK Quote) last year.