KeyCorp’s earnings rise as deposits, lending and interest margins improve

KeyCorp ($KEY) reported net income from continuing operations attributable to common shareholders of $537 million, or $0.51 per share, compared with $454 million and $0.41 a year earlier. Revenue increased 8% year on year and 4% sequentially to $2.044 billion. Net interest margin reached 2.95%, improving by 20 basis points from the comparable year-earlier quarter and six basis points from the preceding quarter.

Average deposits grew by $3.6 billion sequentially and average loans held for investment increased by $1.5 billion, supporting the improvement in net interest activity. The company completed $320 million of share repurchases during the quarter and reported a preliminary common-equity Tier 1 ratio of 11.1%. The results combine balance-sheet growth, better margins and actual capital returns, although the capital ratio remains preliminary. Completed repurchases should not be confused with an announcement of additional future authorization.

Sources:

• KeyCorp — issuer financial results