April 05, 2020

KeyCorp posts profit of $312M in 3rd quarter

CLEVELAND – KeyCorp, a financial services and banking company, on Tuesday reported its third-quarter earnings rose 12 percent, boosted by higher bank fees and a robust loan business.

Cleveland-based KeyCorp earned $312 million, or 76 cents per share, in the July-September period, compared with $278 million, or 67 cents per share, a year ago.

Analysts surveyed by Thomson Financial expected earnings of 72 cents per spare.

Total revenue rose 2.9 percent to $1.3 billion from $1.26 billion, above Thomson Financial projections.

KeyCorp, which has more than 900 branches across Alaska, Colorado, Idaho, Indiana, Kentucky, Maine, Michigan, New York, Ohio, Oregon, Utah, Vermont and Washington, said its commercial loan growth came at a challenging time as banks were especially competitive for new loans and deposit customers.

“These improved results were achieved in a challenging interest rate environment and a highly competitive market for loans and deposits,” said Henry L. Meyer III, KeyCorp’s chief executive.

A 7 percent increase in commercial loans offset a 4 percent narrowing of Key’s net interest margin.

The increase in fees came from a variety of sources, including fees charged to customers for loans and electronic banking.

For the first nine months, KeyCorp earned $909 million, or $2.21 per spare, versus $833 million, or $2.01 per share, in 2005.

The company said it expected fourth quarter earnings to be between 72 cents and 76 cents a share. Analysts surveyed by Thomson Financial are looking for earnings of 73 cents a share on revenue of $1.3 billion.

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