Merrill Lynch highlighted cost cutting initiatives put in place by Stan O'Neal, president and chief operating officer, as it reported first quarter results - but weak revenues meant that profits were down.

Merrill made a profit of $647m (€728.4m) in the first quarter - 26% down on the first quarter of last year. While cost-cuts kicked in, revenues fell across commissions, trading, underwriting, investment banking advisory, and asset management, compared with the first quarter of 2001.