[R]9:00PM New York – A.G. Edwards reported second quarter revenue increase of 15% and profit rise of 44% on higher fee-based income.[/R]

AG Edwards Inc (AGE: chart) reported second quarter net earnings climbed 43.9% to $95 million from $66 million a year ago. Earnings per share jumped to $1.25 from $0.86 in same quarter last year. Net revenues rose 15% to $821 million in the second quarter from $713 million a year.

For the six months of fiscal 2008, net income rose 24% to $178 million up from $144 million a year ago. Earnings per share increased 24.5% to $2.34 from $1.88 a year earlier. First half Revenue increased 12.1% to $1.66 billion from $1.48 billion prior year.

On May 31, 2007, the company announced a merger agreement with Wachovia Corporation, pursuant to which the company would merge with and into a wholly owned subsidiary of Wachovia Corporation. The company said shareholders on Sept 28 will vote on the proposed merger with Wachovia Corporation. So far, costs related to the merger amount to $10 million or $0.08 per share.

In the quarter, asset management and service fee revenues rose 22% to $69 million and were up 19% for the first half at $118 million helped by higher fees in mutual funds and insurance products, as well as fees received in connection with the firm''s FDIC insured bank deposit program. Nearly $7.2 billion has been deposited in these accounts since it started operating in February 2007.

Brokerage commission increased 10% to $24 million from $16 million a year ago while revenues from principal transactions increased 8% at $5 million. Revenue from Investment banking increased 13% to $7 million from a year ago and up 57% to $59 million in the first half. Net interest revenue increased 10% to $5 million in the quarter and added 10% to $7 million.

During the second quarter non-interest expenses increased 11% to $66 million and at the same rate to $132 million for the first half. Compensation and benefits rose 16% to $74 million and 14% to $127 million for the first six months.

AG Edwards shares last traded at $85.21 on the close of Tuesday, below a 52 week high of $90.44. In the previous 52 weeks, the stock has traded in the range $52.61 to $90.44.

AG Edwards Inc. is a financial services holding company whose primary subsidiary is the national investment firm of A.G. Edwards & Sons, Inc. the firm is over a century old. The company has recently agreed to merge with Wachovia Bank. The company employs 6,363 brokers and advisors and has 739 offices nationwide and in London and Geneva.

Total client assets at the end of the second quarter were $384 billion, an 8% increase from the last year. Client assets in fee-based accounts at the end of the second quarter of fiscal 2008 were $45 billion, a 12% increase from a year ago.

As of August 31, 2007, stockholders'' equity was $2.3 billion, for a book value per share of $29.78. Diluted per-share earnings for the second quarter were based on 76.0 million average common and common equivalent shares outstanding compared to 76.7 million in the prior year. Diluted per-share earnings for the current six-month period were based on 76.0 million average common and common equivalent shares outstanding compared to 76.6 million in the prior year.

Wachovia Corp (WB: chart) expects to cut more than 4,000 jobs after the merger is complete. The merged company will have headquartered in St Louis and about 2,500 jobs at the Wachovia securities are likely to be eliminated. Most of the eliminated jobs will be in compliance, marketing, human resource and call center located in Virginia and North Carolina states.