The investment banking arm of Bank of America Merrill Lynch has reported its best quarter in a year thanks to a rebound in revenues from sales and trading but fell some way short of the heights reached by cross-town rival JP Morgan earlier this week.

The global banking and markets division of the US bank reported revenues of $7.9bn - 44% up on the previous quarter but 19% down on the first quarter of 2010. Net profits trebled to $2.1bn but were a third down on the $3.2bn reported the previous year.