KeyCorp Reports Lower Q1 Lease Financing Balance, Yield & Income



KeyCorp announced Q1/15 net income from continuing operations of $222 million, or $.26 per common share, compared to $232 million, or $.26 per common share, for Q1/14. Analysts polled by Thomson Financial had expected EPS of $.26. Total revenue was $1,014 million in Q1/15 compared to $1,004 million for the same earlier year quarter.

The following comparisons to Q1/14 were excerpted from the news release:

  • The commercial lease financing Q1/15 average balance of $4,070 million, with interest income of $36 million and yield of 3.57%, compared to $4,439 million with interest income of $42 million with a yield of 3.78% in Q1/14.
  • Operating lease income and other leasing gains declined $10 million primarily due to the termination of a leveraged lease in the prior year.
  • Average loans up 5.1%, driven by a 11.5% growth in commercial, financial and agricultural loans.
  • Net interest income (TE) up $8 million, driven by higher loan balances partially offset by lower earning asset yields.
  • Solid asset quality, with net loan charge-offs to average loans remaining well below our targeted range of 40-60 basis points.
  • Net interest margin continuing operations was 2.91%, down from 3.00% for Q1/14.
  • “Our first quarter results were solid and reflect our continued focus on growing our businesses,” said chairman and CEO Beth Mooney. “Revenue was up from the prior year and expenses were well-managed as we generated positive operating leverage. Our asset quality continued to be strong, and we remain committed to improving productivity and efficiency.”

    To view the full Keycorp news release, click here.


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