NEW YORK (Reuters) - Bermuda-domiciled bank Lazard Ltd. reported higher-than-expected second-quarter earnings, helped by strength in its restructuring business, and increased its dividend, sending its shares up 10 percent on Wednesday.

Still, profit was lower than a year earlier as Lazard's mergers and acquisitions business had not fully recovered in a lacklustre market.

Lazard vice-chairman Steven Golub told Reuters he expected a "gradual rebound" in the M&A market, but was optimistic about the gains in restructuring.

"It is a great business for us," Golub said, adding that Lazard is advising on more than 100 restructuring assignments worldwide.

Net income attributable to Lazard shareholders fell to $43.1 million, or 34 cents per share, from $64.6 million, or 54 cents a share, a year earlier.

The results were well above the analysts' average forecast of 13 cents per share, according to Reuters Estimates.

Lazard reported a loss of 27 cents a share for the first quarter.

Second-quarter revenue fell 20 percent to $402.5 million.

But with confidence that business is improving, Golub said Lazard would increase its quarterly dividend by 25 percent to 12.5 cents per share.

Second-quarter operating revenue in the restructuring business nearly tripled from a year ago to a record $93.2 million.

Operating revenue fell 40 percent in the M&A business to $134.9 million. Still, that business showed signs that it was bouncing back from the first quarter, when it booked operating revenue of $96.4 million.

Fox-Pitt Kelton analyst David Trone called this a "strong rebound." In a research note, he said the first-quarter M&A results appeared to be an "anomaly." Management fees rose 15 percent from the first quarter.

Assets under management rose to $98 billion from $81 billion in the first quarter because of strong net inflows, but were still down from year-earlier levels of $134 billion. Trone said the quarter-to-quarter rebound for the asset management unit was "icing on the cake".

Lazard announced plans to expand its wealth management business with the hiring of Thaddeus Shelly to form a wealth management subsidiary in the United States.