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July 18 (Reuters) - Regional bank holding company Comerica Inc reported a better-than expected quarterly profit on Tuesday, helped by higher net interest income and lower expenses.
Banks in the United States have got a much-needed boost from the Federal Reserve raising overnight interest rates. The Fed has raised rates three times since second quarter last year, the latest increase coming in June.
Comerica's net income attributable to common shareholders rose to $202 million, or $1.13 per share, in the second quarter ended June 30, from $103 million, or 58 cents per share, a year earlier. (http://bit.ly/2tBhIwJ)
Analysts on average had estimated earnings of $1.06 per share, according to Thomson Reuters I/B/E/S.
Excluding items, the Dallas-based bank earned $1.15 per share. Net interest income rose 12.4 percent to $500 million.
"Quarter over quarter, our revenue increased 5 percent as we benefited meaningfully from increased interest rates as well as our relationship banking strategy, which is driving loan and fee growth" Chief Executive Officer Ralph Babb said.
Non-interest expenses declined 11.8 percent to $457 million. Provisions for credit losses fell 65.3 percent to $17 million.
Comerica, like several other U.S. regional banks, has struggled with bad energy loans due to the steep fall in oil prices since mid-2014.
Total loans dropped nearly 2 percent to $49.41 billion.
U.S. lenders have recently seen a slowdown in loan growth, driven partly by an uptick in interest rates that dissuaded consumers and companies from refinancing mortgage loans. (Reporting by Diptendu Lahiri in Bengaluru; Editing by Shounak Dasgupta)