Finance
Regional Banks Join Net Interest Income Turnaround Party
- PNC, M&T and others show first quarterly NII growth since 2022
- Commercial real estate losses persist across the sector
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Regional banks began to turn the corner on net interest income in the second quarter, yet questions remain about their exposure to the troubled commercial real estate market.
PNC Financial Services Group Inc. and M&T Bank Corp. reported their first quarterly NII increases since 2022, while US Bancorp snapped a streak of four quarterly declines, with the banks crediting deposit growth, loan-repricing and so-called balance-sheet optimization, or better management of assets and liabilities. For instance, M&T’s NII was bolstered by moving a big chunk of cash into securities.