Shares in Asia-targeted bank Standard Chartered surged Thursday after it published upbeat first-quarter consequences on growing interest fees and as it upgraded the outlook.

Underlying pre-tax earnings climbed by a higher-than-predicted 4 percent to $1.5 billion (1.4 billion euros), the London-based lender stated in an assertion.

Net profit edged as much as approximately $1.1 billion in the three months to March from a year earlier.

“The start to 2022 has been strong and recent geopolitical events have strengthened the outlook for rates, albeit making the outlook for the pace of economic recovery less predictable,” it said.

Banks are benefitting from higher interest rates on loans which they have passed onto customers in the wake of tighter borrowing costs from central banks, as the Ukraine war stokes inflation.

In reaction to the earnings update, Standard Chartered’s London share price soared 16 percent in midday deals on the British capital’s rising stock market.

“Shares in Standard Chartered surged… with earnings underpinned by the favourable rising interest rate environment,” said Victoria Scholar, investment head at Interactive Investor.

“The emerging markets-leaning lender also raised its earnings guidance for the full year.”