KeyCorp announced Q2/17 net income from continuing operations attributable to Key common shareholders of $393 million compared to $193 million for Q2/16. Key’s results included a number of notable items, including a gain related to its merchant services business, the finalization of purchase accounting, merger-related charges and a charitable contribution.
The following highlights were excerpted from the KeyCorp news release:
“We were pleased with the strength and quality of our second quarter results, which reflect Key’s continued business momentum and realization of value from the First Niagara acquisition,” said Beth Mooney, KeyCorp chairman and CEO. “We also made investments for growth across our franchise, including the repositioning of our merchant services business and the recent acquisition of HelloWallet.
“We continued to generate positive operating leverage versus the prior year and prior quarter, and our cash efficiency ratio improved to 59.3%, or 59.4%, excluding notable items,” Mooney continued. “Revenue growth was driven by both net interest income and fee-based businesses, and importantly, we achieved $400 million in annualized cost savings from First Niagara. We remain on track to achieve an incremental $50 million in savings by early 2018, and remain confident in our ability to achieve our targets and continue to deliver value for our shareholders.
“Our risk and capital positions remained strong in the second quarter,” added Mooney. “We increased our common share dividend by 12% while also repurchasing $94 million of common shares. We were pleased to receive no objection from the Federal Reserve on our 2017 capital plan, which includes two additional dividend increases, subject to board approval, and an increased common share repurchase authorization.”
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