(Reuters) - Huntington Bancshares posted an 8% drop in third-quarter profit on Friday, as the lender's income from interest on loans declined.
U.S. banks are beginning to see the boost from rising benchmark interest rates fade as the Federal Reserve heads toward the end of its monetary policy tightening cycle.
Growth in interest income has also been pressured by higher costs of deposits as customers withdraw cash to seek better returns in higher-yielding alternatives such as money market funds.
Huntington said net interest income in the third quarter declined 3%, or $36 million, from the year-ago quarter.
On a per-share basis, Huntington earned 35 cents in the three months ended Sept. 30, a drop of 4 cents from a year earlier.
Persons:
Huntington Bancshares, Huntington, Manya Saini, Arun Koyyur
Organizations:
Reuters, Federal Reserve
Locations:
U.S, Bengaluru