Regional lender PNC Financial Services, the sixth-largest U.S. bank by assets, reported a stronger-than-expected quarterly profit on Friday as higher Federal Reserve interest rates boosted the bank’s income.
Banks in the United States have got a much-needed boost from the Federal Reserve raising interest rates. The Fed has increased rates three times since the second quarter last year and has indicated to another rate hike in December.
Pittsburgh-based PNC said net interest income rose 11.9 percent to $2.35 billion in the third quarter ended Sept. 30.
The bank’s non-interest expenses increased 2.6 percent to $2.46 billion.
Net income attributable to diluted common shares rose to $1.04 billion from $913 million, a year earlier.
Earnings per share rose to $2.16 from $1.84.
Analysts on average had expected earnings of $2.13 per share, according to Thomson Reuters I/B/E/S.
Share of PNC, which had risen 15.7 percent this year, were unchanged in premarket trading.