(Reuters) -Regions Financial reported a rise in third-quarter profit on Friday, benefiting from stronger capital markets and higher income from interests, sending its shares up about 1% in premarket trading.
Dealmaking rebounded in the third quarter, marking a year that analysts are calling a turning point for global mergers and acquisitions, as boardrooms advanced pending purchases and signed big-ticket transactions.
Mega deals reached around $1.26 trillion during the quarter, a 40% jump over from a year ago.
Regions Financial’s capital markets income stood at $104 million during the three months ended September 30, compared with $92 million a year ago.
The gain mirrors larger rivals such as JPMorgan Chase, Wells Fargo and Bank of America benefiting from a rebound in dealmaking.
The Birmingham, Alabama-based bank’s net interest income, the difference between what banks pay customers on deposits and earn as interest on loans, rose 3.2% to $1.26 billion.
The company expects full-year NII to rise about 3% to 4% from a year ago, lowering the higher end of its prior forecast.
Net income available to common shareholders rose to $548 million, or 61 cents per share, during the quarter, from $446 million, or 49 cents per share, a year ago.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)
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