KeyCorp Q4/19 Net Income Down 4.3%, Loans Up $4.3B Y/Y



KeyCorp reported net income from continuing operations of $439 million for Q4/19, down 4.3% from $459 million in Q4/18.

Net interest income was $987 million for Q4/19 down from $1.0 billion in Q4/18.

Average loans were $93.6 billion for Q4/19, an increase of $4.3 billion compared to Q4/18. Commercial loans increased $1.6 billion, reflecting broad-based growth in commercial and industrial loans, partially offset by declines in commercial mortgage and construction loans.

Commercial Bank Highlights (Q4/19 vs. Q4/18)

  • Net income attributable to Key of $315 million for Q4/29, compared to $302 million for the year-ago quarter
  • Net interest income decreased by $1 million year over year, with balance sheet growth offset by lower loan fees and loan spread compression
  • Average loan and lease balances increased $1.7 billion, or 2.9%, compared to Q4/18, driven by broad-based growth in commercial and industrial loans
  • Provision for credit losses increased $21 million compared to the Q4/18, driven by higher recoveries in Q4/18

“Key’s fourth quarter results marked a good finish to another strong year for our company. We achieved our seventh consecutive year of positive operating leverage, supported by solid balance sheet growth, continued momentum in our fee-based businesses and strong expense control. Across our company, we continued to add and expand client relationships, which drove growth in loans, deposits and fees,” said , chairman & CEO.

“Strong risk management and being disciplined with our capital have also remained top priorities. Credit quality trends remained solid this quarter, and we continue to be diligent in our credit underwriting. We have also returned capital to our shareholders throughout the year in the form of share repurchases and a 9% increase in our common stock dividend.

Our CEO transition continues to progress smoothly, and we remain very confident in the way we have positioned Key for the future. We fully expect to continue on the path to achieve our long-term targets and drive improved returns,” Mooney said.

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