KeyCorp Q4 Earnings Beat Estimates



KeyCorp announced Q4/14 net income from continuing operations attributable to Key common shareholders of $246 million was up 7.4% from $229 million for Q4/13. Earnings per share of $0.28 compares with analysts’ estimates of $0.26 a share adjusted for one-time items.

For the 12 months ended December 31, 2014, net income was $917 million, up 8.3% from $847 million for the same period one year ago.

Highlights from the news release included:

  • Q4/14 revenues increased 3.5% from a year earlier to $1.08 billion, driven by gains in investment banking and debt-placement fees.
  • Average loans up 5% from prior year, driven by a 12% increase in commercial, financial and agricultural loans.
  • Credit quality remained strong, with net loan charge-offs to average loans of .22%.
  • The full-year net interest margin was 2.94%, down eight basis points from 3.02% in 2013.
  • The average commercial lease financing balance of $4,239 million for 2014 was down 9.5% ($444 million) from $4,683 million a year earlier. The interest earned in 2014 was $156 million, down from $172 million in 2013. The yield of 3.67% remained consistent for both years.

“Fourth quarter was a strong finish to the year,” said chairman and chief executive officer Beth Mooney. “Our results reflect positive operating leverage, with both revenue growth and well-controlled expenses. Revenue benefited from solid loan growth, driven by a 12% increase from the prior year in commercial, financial and agricultural loans. Core expense levels continued to decline, and our net charge-offs remained well below our historical average.”

To read the entire KeyCorp news release, click here.


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