MERRILL LYNCH TAKES A TUMBLE AS THE OLD GUARD REMAINS ON TOP

Merrill Lynch was the biggest casualty this quarter, tumbling out of the tables as a consequence of the aggregate size of its clientele falling below the 5% listing requirements for advisers outside the top 10. However, with no other firm able to replace it in the listings, it may not be too long before Merrill's regains its place at the table.

There was a strong whiff of continuity about the two 'size' tables this quarter. The top eight places in each remained virtually unchanged, with Cazenove still top dog in each, followed by last quarter's runner up, UBS Warburg. Hoare Govett took the remaining podium position in the table of most profitable clients, while that honour remained HSBC's in the rankings of largest number of stock market company clients. There was some shuffling about at the bottom of the tables. The principal casualty was Credit Suisse First Boston de Zoete, falling 4 places to number 13 as several of its rivals increased their number of stock market clients at a time when CSFB's net clientele dropped 4 to 70. However, the company could derive some satisfaction from the fact that its corporate client base may have shrunk, but the total profitability of those who remain was easily enough to preserve its 4th place in the rankings of stockbrokers with the most profitable clients.

It was 'all change please' in the 'growth' tables. Not surprisingly, given its showing in the most profitable client stakes, CSFB leapt seven places in the rankings of fastest growing clients to secure top spot, ahead of Deutsche Bank ­ itself up a whopping 9 places ­ and Brewin Dolphin Securities, last quarter's tenth placed broker. Last quarter's star performer, Teather & Greenwood, held onto 4th position. Top slot in the earnings per share stakes went to the previous runner up, Credit Suisse, with a whopping 12.7% average increase in client EPS ­ almost ten times that of runner up ­ and last quarter's top dog ­ Teather & Greenwood.

Overall, the picture across the growth tables is becoming all too familiar; sharply declining pretax profits and earnings per share almost across the board.