Merrill Lynch's thundering herd is growing again after the
The brokerage firm added 254 advisers during the second quarter, raising its headcount to 14,811. That figure was also up from 231 from the year-ago period.
The headcount growth came during a strong quarter for Merrill Lynch. Revenue increased 3.1% to $3.8 billion, according to the company which reported earnings on Tuesday morning. Client balances grew 8.5% to a record $2.2 trillion.
The firm also benefited from low attrition levels and its training program for new advisers, the company said.
The results contrast with the two previous quarters, when headcount contracted by more than 100 advisers. Some departing brokers said they were switching firms due to Merrill's plan to restrict commission-based retirement accounts as part of its effort to comply with
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It seems that a long bull market in transition deals may be coming to an end.
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"It's always nice when one poker player folds and it's down to two or three players," one recruiter says.
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The wirehouse's executives think they've struck on the right formula to boost growth through a simplified comp plan, greater autonomy and an attractive retirement package.
April 17
Merrill's headcount has also risen at the same time that Wells Fargo's has fallen, even as Merrill, Morgan Stanley and UBS have announced cutbacks to recruiting efforts.
Wells Fargo,
Adviser productivity at Merrill Lynch was also up, rising to $1.04 million per FA from $993,000 for the prior quarter and $978,000 for the year-ago period, the bank said.
Bank of America's wealth management unit, which includes Merrill Lynch and U.S. Trust, reported net income of $804 million, up 14% from the year-ago period.
AUM flows, at $28 billion, were robust and continued a trend starting in the previous quarter. The company, which has reported $57 billion in AUM flows year-to-date, credits strong client activity and the shift from IRA brokerage accounts to managed relationships.
