State-owned Monte dei Paschi di Siena has today became the latest Italian bank to post above-forecast earnings for the second quarter as higher rates boost profits for the industry.

Monte dei Paschi (MPS) said net income for April-June stood at €383m, more than 10 times the figure of a year ago and sharply above a €217m consensus estimate provided by the bank.

Revenues jumped 11% on a quarterly basis to €972m, well ahead of the expected €880m, with net interest income nearly doubling from last year and up 15% from the first quarter.

Net fees also edged higher from the first quarter, while Monte dei Paschi managed to reduce costs despite galloping inflation lowering its cost-to-income ratio to 49% at the end of June compared to 69% a year before.