Merrill Profits Soar on Deal

The big revenue gains at Merrill Lynch, outside of the BlackRock deal, came from principal transactions, which includes trading and gains from private equity investments. Revenue from principal transactions rose 83% to $1.68 billion.

Asset management and portfolio fees rose 17% to $1.78 billion.

But there were a few chinks in the good news.

Revenue from investment banking work declined 3% from a year ago to $857 million. While fees from advising on corporate mergers were up 63% from a year ago, revenues from stock and bond underwriting fell 17% to $596 million. Revenue from commissions rose just 3% to $1.38 billion.

On a sequential basis, most of Merrill Lynch's major business lines reported a decline in revenue from the second quarter. Investment banking revenue was down 26% from the second quarter of this year. Commission revenue was down 13% on a sequential basis.

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