A.G. Edwards posts hefty 2Q gains

A.G. Edwards Inc., the St. Louis brokerage, today reported first quarter gains in net revenue and earnings, buoyed by gains in client assets and fee-based accounts. The most striking gains came from the company’s investment banking division, which saw revenues spike 108% to $52 million—the segment’s second-best quarterly results. Net earnings jumped to $83 million (or $1.10 per share) for the quarter, up from $78 million (or $1.01 per share) in the prior year. Net revenue figures hit $842 million in the first quarter, compared to $765 million during the same period last year. Fee-based accounts saw a 26% increase in client assets, reaching $48 billion. Higher underwriting revenues from closed-end funds plus greater fees collected from private-placement transactions contributed to the division’s success. A.G. Edwards’s merger with Wachovia Corp. accounted for $10 million, or $0.08 per diluted share, in expenses related to the May 31 agreement.