Fifth Third Bancorp on Thursday posted a better-than-expected second-quarter profit, as interest rate hikes by the U.S. central bank boosted its interest income.
On an adjusted basis, the Ohio-based bank earned 87 cents per share, beating analysts’ average estimate of 83 cents, according to Refinitiv data.
The bank’s shares, down 13% this year, were up 1.2% in premarket trading.
The rigorous rate hike cycle by the Federal Reserve has allowed lenders to boost their interest income by charging higher interest on loans.
Read More : Fifth Third Bancorp Exceeds Profit Expectations with Strong Interest Income