Banca Monte dei Paschi di Siena SpA reported better than-expected earnings as it joined European peers in benefiting from rising interest rates and posted lower operating costs.

The Siena-based bank, the world’s oldest lender, reported net income of €383 million ($420 million) in the second quarter, compared with €30.5 million a year earlier. That beat the average analyst estimate for a profit of €231 million.

Chief Executive Officer Luigi Lovaglio raised €2.5 billion in fresh capital in November to finance a turnaround plan that envisages lower costs, a simpler structure and a switch toward more profitable commercial businesses. As part of restructuring he cut more than 4,000 jobs last year that will allow Monte Paschi to save over €300 million a year.

The cuts lowered the cost-to-income ratio, which stood at 49.4% at the end of June. Revenue rose 29%, led by higher net interest income, while costs declined 16%.

Founded in 1472, Monte Paschi has undergone years of painful efforts to turn its business around. The bank was first bailed out in 2009, after being hit by souring loans and derivatives deals that backfired. In the following decade it struggled to deliver consistent profit, given limited room for maneuver under terms the European Union set in exchange for nationalization in 2017.

The turnaround plan implemented by Lovaglio has allowed the bank to return to profit as the government has to exit the bank next year to comply with the European Union.