Several U.S. regional banks beat analysts third-quarter profit expectations on Wednesday as higher interest rates allowed them to charge more for loans, although rising loan loss provisions and deposit retention costs crimped margins.
Shares of several regional banks fell, including M&T Bank and US Bancorp. Stronger net interest income (NII), the difference between what banks earn from lending and pay out on deposits, boosted profits at US Bancorp and M&T Bank Corp, allowing both lenders to beat Wall Street analyst estimates despite increasing provisions for potential loan losses.
