Merrill Mauls Morgan Stanley in Brokerage Titan Clash

In the clash of the two largest U.S. brokerages, Bank of America Corp.’s Merrill Lynch is generating more profit with fewer people than the business Morgan Stanley formed by buying a controlling stake in a venture with Citigroup Inc.’s Smith Barney.

Merrill Lynch, acquired by Bank of America in 2009, produced $315 million more profit from its brokerage in the first half than Morgan Stanley with 2,900 fewer financial advisers, according to company filings. Its pretax profit margin, 16.7 percent for the same period, is more than double Morgan Stanley Smith Barney’s 7.8 percent.