KeyCorp announced Q2/13 net income from continuing operations attributable to Key common shareholders of $193 million compared to $217 million for the second quarter of 2012. During the second quarter, Key said it incurred $37 million of costs associated with its previously announced efficiency initiative.

Key also said its noninterest income of $429 million in Q2/13 was down from $457 million one year-ago and noted a decrease of $39 million in operating lease income and other leasing gains primarily due to a $31 million gain on the early termination of leverage leases in 2012. For the first six months of 2013, operating lease income and other leasing gains of $42 million were down from $110 million for the same period in 2012.

For the six months ended June 30, 2013, net income from continuing operations attributable to Key common shareholders was $389 million compared to $412 million for the same period one-year ago. During the first half of 2013, Key said it incurred $52 million of costs related to its efficiency initiative.

Chairman and chief executive officer Beth Mooney said, “Compared to the first quarter, cautious client behavior led to slower loan growth, higher levels of liquidity for Key and greater than anticipated pressure on our net interest margin. Despite the challenging economic backdrop, Key was able to produce slight increases in both loans and revenue and control expenses.”

To read the full earnings news release click here.