Severe cost-cutting, including 1,800 job losses, has helped Merrill Lynch record a slight rise in profits in the second quarter - but revenues have fallen and are unlikely to rise soon, the bank warned.

Merrill reported a profit of $634m (€627m), 17% higher than in the second quarter of 2001. Net revenues of $4.95bn were 11% down on the same period last year and also lower than the first quarter of this year.