KeyCorp reported Q1/18 net income of $402 million was up 35.8% from $296 million for Q1/17. The bank noted Q1/18 results reflected solid underlying trends in its core businesses.

Key’s commercial lease financing average balance of $4,663 million in Q1/18 compared to an average balance of $4,635 million for the same quarter in 2017. Interest earned of $41 million in Q1/18 compared to $44 million for the same quarter a year earlier. The lease financing yield of 3.53% compared to 3.76% in Q1/17. By way of comparison, the average C&I yield of 4.11% in Q1/18 compared to 3.77% a year earlier.

KeyCorp noted Q1/18 operating lease income and “other leasing gains” of $32 million were up 39.1% from $23 million in the same quarter in 2017.

“First quarter was a good start to the year, with continuing momentum in our core businesses, as we grew and expanded relationships with our targeted clients,” said Beth Mooney, chairman and CEO of Key. “Revenue increased over 3% from the same period last year, driven by a higher net interest income, solid loan growth and stronger fee income. The growth in average loans this quarter was broad-based and primarily in commercial and industrial balances, which were up in excess of 3% linked quarter, as we continue to grow and expand our middle-market relationships.

“Our fee-based businesses continue to demonstrate our ability to offer a full range of solutions to our clients, including off-balance sheet financing alternatives that helped drive our investment banking and debt placement business to a record first quarter level. Expenses this quarter reflect expected seasonality, the acceleration of certain technology costs and investments. Given our outlook for revenue growth and lower expenses for the rest of this year, we expect to make meaningful progress toward our long-term efficiency ratio target of 54% to 56%.”