KeyCorp Reports Q3 Earnings Up 34% Year/Year

KeyCorp reported a Q3/18 net income from continuing operations attributable to Key common shareholders of $468 million, up 34% from $349 million for the third quarter of 2017.

The following highlights were excerpted from the KeyCorp news release:

  • The average lease financing balance for the first nine months of 2018 of $4,552 million was down from $4,673 million for the same period in 2017. Interest income of $125 million compared to $140 million a year earlier. The average yield of 3.67% compared to 3.99% for the same nine month period in 2017.
  • The average C&I loan balance for the first nine months of 2018 was $44,178 million, up from $40,700 million a year earlier. Interest inc0ome of $1,414 million compared to $1,196 million for the same period in 2017. The average yield of 4.28% compared to 3.93% for the same nine month period in 2017.

Beth Mooney, chairman and CEO, commented, “Our solid third quarter results reflect our success in growing and expanding client relationships, driving efficiency across the organization, and staying true to our moderate risk profile. This quarter, our return on tangible common equity ratio was 16.8%, and our cash efficiency ratio was 58.7%, both an improvement of over 300 basis points from last year.

“Our community bank and corporate bank both contributed to our year-over-year revenue growth of 3%, which demonstrates our competitive positioning and the success of our distinctive relationship-based business model. Expense management remains a priority, as we continue to execute on our cost initiatives, which allows us to reinvest into our businesses.

“Credit quality and capital remain strengths, with solid credit trends this quarter and disciplined capital management. Importantly, we increased our common share dividend 42% during the third quarter – from $.12 to $.17. We remain dedicated to delivering results for our shareholders, as we focus on maintaining our moderate risk profile, and staying diligent in managing credit quality as we move through different parts of the business cycle.”

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