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CLEVELAND - KeyCorp (NYSE:KEY) reported first quarter earnings that beat analyst expectations on Thursday.
The bank’s earnings and revenue beat drove shares up 0.92% in premarket trading.
The company topped estimates. with net income rising to $370 million or $0.33 per share, compared to $183 million or $0.20 per share in the same quarter last year.
Revenue increased 16% YoY to $1.8 billion.
KeyCorp’s net interest income rose 4% quarter-over-quarter to $1.1 billion, while the net interest margin expanded to 2.58% from 2.41% in Q4. Noninterest income increased 3.2% YoY to $668 million.
"Our first quarter results marked a strong beginning to the year. Revenue was up 16% year-over-year while expenses were essentially flat," said Chairman and CEO Chris Gorman.
The bank reported improved credit metrics, with nonperforming assets declining 9% and net charge-offs falling 4% compared to the previous quarter. KeyCorp’s common equity tier 1 ratio strengthened to 11.8%, up about 150 basis points YoY.
Average loans decreased 6% YoY to $104.4 billion, while average deposits grew 4% to $148.5 billion. The bank’s provision for credit losses was $118 million, up from $101 million a year ago.
KeyCorp maintained its quarterly dividend of $0.205 per share. The bank’s board also authorized a new $1 billion share repurchase program in March.
"We enjoy strong earnings and business momentum and clearly defined net interest income tailwinds," Gorman added, expressing confidence in the bank’s outlook.
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