Boston, MA 10/15/2014 (wallstreetpr) – KeyCorp (NYSE:KEY) witnessed average loan growth of 5% in the third quarter ended September. It was primarily fueled by uptick in agricultural, commercial and financial loans. It pointed out that it realized lower benefits from leveraging lease terminations and principal investing.
CEO Comments
The company’s Chairman and CEO, Beth Mooney, said that he was able to see favorable trends in a number of its fee-based businesses, its statement revealed. He said that its third quarter results reflected solid performance in its core businesses as KeyCorp (NYSE:KEY) was executing its relationship tactics. At the same time, it remained disciplined in handling risk and capital position.
Mooney said that core expenses were well-controlled. Excluding charges, it recorded a drop both sequentially and from the last year. During the latest quarter, its costs included efficiency associated charges, acquisition of Pacific Crest Securities and ongoing investments. Its strong credit quality trend reflected its continued focus on risk management and the quality of loans it was generating. The CEO indicated that its Tier 1 equity ratio was more than 11%.
Revenue & Profit
KeyCorp (NYSE:KEY)’s total revenue dipped 4.3% to $998 million from $1.04 billion in the previous year quarter. Its revenue from Key Community Bank fell 4.3% to $559 million from $584 million in the prior year quarter. Similarly, revenue from Key Corporate Bank grew 1.3% to $395 million from $379 million in the same quarter last year.
Its net income from continuing operations was $197 million or 23 cents a share, down 14% from $229 million. Similarly, earnings dipped 8% to 23 cents a share from 25 cents a share in the year-ago quarter. Sequentially too, its net income dropped 18.6% from $242 million and the earnings by 15% from 27 cents a share. KeyCorp (NYSE:KEY) indicated that it incurred $35 million or 3 cents a share towards charges in the latest quarter.
Loan Losses
KeyCorp (NYSE:KEY) indicated provision for loan losses of $21 million in the third quarter, which was narrower than $28 million in the last year third quarter. However, it increased from $10 million in the second quarter. Its non-performing assets were 0.74% of portfolio loans compared to 1.08% in the year-ago quarter.
It has bought back shares worth $119 million in the third quarter.
