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CLEVELAND - KeyCorp (NYSE:KEY) reported mixed fourth quarter results on Monday, with earnings beating expectations but revenue falling short of estimates.
The bank's shares slipped 0.66% in premarket trading following the release.
The Cleveland-based financial services company posted adjusted earnings per share of $0.38 for Q4, surpassing the analyst consensus of $0.33. However, revenue came in at $865 million, well below Wall Street's forecast of $1.74 billion.
KeyCorp's net interest income rose 10% quarter-over-quarter to $1.06 billion, benefiting from higher interest rates. The bank saw momentum across its investment banking, payments, and wealth management businesses, with fees up 27% year-over-year.
"Our fourth quarter results marked a strong finish to the year," said Chris Gorman, KeyCorp's Chairman and CEO. "On an adjusted basis, revenues were up 16% year-over-year and 11% sequentially."
The company's Common Equity Tier 1 ratio, a key measure of financial strength, increased 120 basis points from the previous quarter to 12%.
However, KeyCorp recorded a net loss from continuing operations attributable to common shareholders of $279 million, or $0.28 per diluted share.
This included $657 million, or $0.66 per share, of after-tax charges related to the loss on sale of securities.
Net loan charge-offs decreased 26% quarter-over-quarter, while criticized loans declined 7%, indicating some improvement in credit quality.
Looking ahead, Gorman expressed confidence in KeyCorp's positioning for 2025, citing the bank's strong performance momentum and leading capital position as it celebrates its 200th anniversary.
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