Morgan Stanley’s wealth management unit has posted pre-tax income from continuing operations of $1.1bn for the second quarter of 2017, a surge of 23% over $859m in the year ago quarter.

The division’s net revenues rose 9% to $4.2bn from $3.8bn a year ago, while pre-tax margin stood at 25%.

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The unit’s asset management fee revenues during the quarter increased to $2.3bn from $2.1bn in the second quarter of 2016. Transactional revenues dipped 4% to $766m from $798m a year ago.

The unit’s quarterly net interest income rose to $1bn from $829m in the year ago period.

As at 30 June 2017, total client assets stood at $2.2 trillion and client assets in fee-based accounts at $962bn.

The banking group said that the unit’s 15,777 wealth management representatives generated average annualised revenue per representative of $1.1m in the quarter.

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Wealth management client liabilities stood at $77bn, as against $69bn in the previous year.

Overall, the banking group reported net revenues of $9.5bn for the second quarter of 2017, up 7% from $8.9bn in the corresponding quarter of last year. Net income increased 11% to $1.8bn from $1.6bn a year ago.

Morgan Stanley chairman and CEO James Gorman said: “Our second quarter results demonstrated the resilience of our franchise in a subdued trading environment. Our wealth management business produced a 25% margin and our strong investment banking results attest to the diversity of our global business.”