U.S. investment bank Morgan Stanley has reported a better-than-expected second-quarter profit thanks to a strong performance by its wealth management division, according to BBC News.

The bank reported net profit of $1.7bn in the three months to June, down from $1.8bn a year earlier.

Morgan Stanley was helped by a 4.7% rise in net revenue to $3.88bn in its wealth management division. Earnings were also helped by a one-off tax benefit of $609m.

Overall revenues at the bank rose to $9.7bn in the period, against $8.6bn a year ago.

Morgan Stanley said wage costs rose to $4.4bn in the quarter from $4.2bn a year earlier, as a result of the higher revenues in wealth management.

Profits jumped at the bank's institutional investment division, which includes its investment bank, and its stock, bond and commodities trading desks.

Equity sales and trading revenues rose to $2.3bn in the quarter, compared with $1.8bn a year ago.

Fixed income and commodities trading also did well with net revenues higher at $1.3bn, compared with $1bn year earlier.