Financial Statement Analysis for Bank of America Merrill Lynch
Objective
This objective of this report is to analyse and evaluate the financial data of Merrill Lynch through 2006, 2007 and 2008. It also looks at the developments in the financial markets during these years and its impact on Merrill Lynch, a what-if analysis of the possible financial performance that might have existed had the economic downturn not occurred and in the end summary and conclusions based on the findings.
Introduction to Merrill Lynch
Merrill Lynch is one of the world’s premier providers of wealth management, securities trading and sales, corporate finance and investment banking services. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York Stock Exchange under the ticker symbol MER. Merrill agreed to a purchase by Bank of America on September 14, 2008, at the height of the 2008 Financial Crisis. It ceased to exist as a separate entity in January 2009.
The company was founded on January 6, 1914, when Charles E. Merrill opened his Charles E. Merrill & Co. for business at 7 Wall Street in New York City. A few months later, Merrill's friend, Edmund C. Lynch, joined him, and in 1915 the name was officially changed to Merrill, Lynch & Co
In the succeeding years, Merrill Lynch became one of America’s top firms in terms of securities and investment profits as well as brokerage network strength. By 1971, the company went public.
We begin by taking a look at the company’s performance for 2006, 2007 and 2008.
Performance in 2006
The financial statements, annual report, CEO’s statement and CFO’s report all indicate a very strong performance by the company for the year 2006. In fact the last quarter of 2006 and the entire year of 2006 were reported to be the strongest quarter and year for Merrill Lynch ever with record revenues and earnings. Some of the highlights of the
This objective of this report is to analyse and evaluate the financial data of Merrill Lynch through 2006, 2007 and 2008. It also looks at the developments in the financial markets during these years and its impact on Merrill Lynch, a what-if analysis of the possible financial performance that might have existed had the economic downturn not occurred and in the end summary and conclusions based on the findings.
Introduction to Merrill Lynch
Merrill Lynch is one of the world’s premier providers of wealth management, securities trading and sales, corporate finance and investment banking services. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York Stock Exchange under the ticker symbol MER. Merrill agreed to a purchase by Bank of America on September 14, 2008, at the height of the 2008 Financial Crisis. It ceased to exist as a separate entity in January 2009.
The company was founded on January 6, 1914, when Charles E. Merrill opened his Charles E. Merrill & Co. for business at 7 Wall Street in New York City. A few months later, Merrill's friend, Edmund C. Lynch, joined him, and in 1915 the name was officially changed to Merrill, Lynch & Co
In the succeeding years, Merrill Lynch became one of America’s top firms in terms of securities and investment profits as well as brokerage network strength. By 1971, the company went public.
We begin by taking a look at the company’s performance for 2006, 2007 and 2008.
Performance in 2006
The financial statements, annual report, CEO’s statement and CFO’s report all indicate a very strong performance by the company for the year 2006. In fact the last quarter of 2006 and the entire year of 2006 were reported to be the strongest quarter and year for Merrill Lynch ever with record revenues and earnings. Some of the highlights of the
References: Merrill Lynch Annual Reports for 2006, 2007, 2008 http://www.ml.com/annualmeetingmaterials/2006/ar/financials.asp http://www.ml.com/annualmeetingmaterials/2007/ar/financials.asp Merrill Lynch Consolidated Financial Statements for 2002, 2003, 2004, 2005, 2006, 2007, 2008