Merrill Lynch hinted at further job cuts after its profits fell 52% in the third quarter, compared with last year's third quarter, on the back of big declines in investment banking and asset management.

The US bulge bracket group made a profit of $422m (€461m) in the third quarter. The bank's return on equity has crumbled to under 10% in the third quarter, compared with 21.5% one year ago and 10.7% in the second quarter.