The Pittsburgh bank reported a double-digit increase in 3Q profits on a mix of higher loan yields in its retail and corporate banking units, higher corporate service fees and several other factors.
A huge chunk of the profit increase in the second quarter was due to a lower tax rate, but rising net interest margins and loan growth signal that institutions continue to derive revenue from their loan book.
The combination of rising interest rates and increased competition from nonbank lenders is prompting many commercial real estate investors to seek better deals elsewhere.
Despite some green shoots in key credit segments, total loan growth was light at many banks last quarter. Rate hikes are threatened, and deposits will get pricier — where will the earnings come from?
