(Adds Q2 details, estimates and share move)
July 20 (Reuters) - U.S. regional bank KeyCorp reported a better-than-expected profit for the second quarter as total interest income rose 63.3 percent.
Banks in the United States received a much-needed boost from the Federal Reserve raising overnight interest rates.
The Fed has raised rates three times since the second quarter of last year, with latest increase coming in June.
Cleveland-based KeyCorp's net income attributable to common shareholders more than doubled to $398 million, or 37 cents per share, in the second quarter ended June 30.
Excluding items, the bank earned 34 cents, beating the average analyst estimate of 33 cents, according to Thomson Reuters I/B/E/S.
KeyCorp's total revenue rose 52.1 percent to $1.64 billion.
Total interest income jumped to $1.12 billion, while non-interest expenses rose 32.5 percent to $995 million.
Total loans grew 41.5 percent to $86.5 billion.
The lender's shares were up 1.5 percent at $20.00 in light premarket trading on Thursday. (Reporting by Diptendu Lahiri in Bengaluru; Editing by Maju Samuel)