Boston, MA 04/23/2014 (wallstreetpr) – KeyCorp (NYSE:KEY) has reported on Thursday, April 7 double digit growth in net income for the first quarter. As per the company, it has $232 million or $ 0.26 per share net income during the first 3 months ended in March 31. Net income is up by 18.4 % from the same quarter in 2013, when it reported net income of $196 million or $0.21 per share. Income is largely improved due to solid loan growth which is driven by financial, commercial, and agricultural loans, and they reaped the benefits from their fee based business.
Increase Dividend And Stock Buy Back
KeyCorp (NYSE:KEY) is planning to raise the dividends paid to investors. It planned to increase its dividend for the quarter to $0.065 from $0.055 per share. In addition to this, it also planned to buy back shares up to $542 million worth, which would boost the shareholders’ value. Key plans to repurchase its shares from the open market or in privately negotiated transactions. Federal Reserve has approved KeyCorp on its capital plan for 2014. The regulators analyzed the banks’ capital plans through a process called CCAR. CCAR is to make sure that the banks risk of failure is not high if the economy were to nosedive again as it did in 2008.
Change in Management Structure
There is a change in top management structure of KeyCorp (NYSE:KEY). One of its top key executives is leaving, and the position is substituted by two persons. Bill Koehler, the president of Key’s community bank is leaving, and bank is breaking up his role into two separate roles. E.J Burke and Dennis Devine will serve as two co-presidents. Bruke will oversee commercial and private banking, and Devine will see consumer and small business. CEO Beth Mooney expects that this change would mean development in the branches and small business side of the bank. Burke and Devine will work with Kohler during the next few months on the knowledge transition.
