By Jonathan Davies

US banking giant Morgan Stanley has reported profits of $1.7 billion for the second quarter.

It compares to profits of $1.8bn in the same period last year. Despite the slight fall, it beats analysts forecasts.

Profits were boosted by its wealth management division, which saw a 4.7% rise in revenues to $3.88bn. Morgan Stanley also benefited from a one-off tax break of $609m.

Overall revenue jumped from $8.6bn to $9.7bn. But it was slightly affected by wage costs, which rose from $4.2bn to $4.4bn.