KeyCorp announced third quarter net income from continuing operations attributable to Key common shareholders of $229 million versus net income of $163 million for the third quarter of 2010. The bank said the results for the third quarter of 2011 reflect an improvement in non-interest expense and lower credit costs from the same period one-year ago. During the third quarter of 2011, the company continued to benefit from improved asset quality.

For the nine-month period ended September 30, 2011, net income from continuing operations attributable to Key common shareholders was $656 million compared to net income of $121 million for the same year-ago period.

Keycorp noted in the news release that its equipment finance business net income for the third quarter was $20 million compared to $14 million for the same period in 2010. Total revenue of $68 million for the quarter was up from $63 million a year earlier. Average loans and leases were $4.6 billion, up from $4.5 billion for the third quarter 2010. Return on average allocated equity was 25.76% up from 16.58% and average FTE employees was 511 compared to 536 in the third quarter last year.

Chairman and chief executive officer Beth Mooney said, “Our financial results demonstrate consistent positive momentum for Key as we continue executing our relationship strategy, improving credit quality and maintaining disciplined expense control. We are also pleased that our commercial, financial and agricultural loan portfolio grew for the second consecutive quarter.”

Mooney added, “We look forward to continuing our support of small- and medium-sized businesses and have committed $5 billion in lending capital over the next three years to foster growth and expansion in this important segment.”

To read the full text of the KeyCorp news release click here.