UPDATE 1-First Niagara Q3 profit tops Street view

* Q3 oper EPS $0.19 vs est $0.13

* Net interest income rises 41 pct

* Shares up 2 pct

Oct 29 (Reuters) - First Niagara Financial Group Inc (FNFG.O) reported third-quarter profit above market expectations, helped by a 41 percent jump in net interest income.

The company's operating net income was $27.3 million, or 19 cents a share, compared with $23.7 million, or 22 cents a share, a year ago.

Analysts on average expected earnings of 13 cents a share, excluding items, according to Thomson Reuters I/B/E/S.

On a GAAP basis, it earned $10.9 million, or 7 cents a share.

Net interest income rose to $98.9 million for the period, said First Niagara, which has raised about $1 billion in capital during last year.

Provision for credit losses rose to $15 million from $6.5 million.