KeyCorp (NYSE: KEY) reported net income of $402 million, or 38 cents per share, during the first quarter of 2018. The figures were up sharply from $296 million, or 27 cents, in the same period in 2017, KeyCorp recently reported. Key’s results in the first quarter of 2017 included merger-related charges, resulting in an impact […]
KeyCorp (NYSE: KEY) reported net income of $402 million, or 38 cents per share, during the first quarter of 2018. The figures were up sharply from $296 million, or 27 cents, in the same period in 2017, KeyCorp recently reported.
Key’s results in the first quarter of 2017 included merger-related charges, resulting in an impact of 5 cents per share.
Cleveland, Ohio–based KeyCorp is the parent company of KeyBank, which has a significant presence in Central and Upstate New York, that was further expanded with its 2016 acquisition of Buffalo–based First Niagara Financial Group.
The year’s first quarter was a “good start” to the year, with “continuing momentum” in Key’s core businesses, as it “grew and expanded” relationships with targeted clients, Beth Mooney, chairman and CEO of KeyCorp, said in the banking company’s earnings report.
“Revenue increased over 3 percent from the same period last year, driven by a higher net interest income, solid loan growth and stronger fee income. The growth in average loans this quarter was broad-based and primarily in commercial and industrial balances, which were up in excess of 3 percent linked quarter, as we continue to grow and expand our middle-market relationships,” said Mooney.
She also noted that Key’s fee-based businesses “continue to demonstrate” their ability to offer a “full range” of products to its clients. They include off-balance sheet financing alternatives that helped “drive” Key’s investment banking and debt-placement business to a “record” first-quarter level.
Balance sheet
Average loans were $86.9 billion for the first quarter of 2018, an increase of $794 million compared to the first quarter of 2017, “reflecting broad-based growth” in commercial and industrial loans with middle-market clients, as well as “strength” in auto lending, as the banking company “expands into existing geographies and dealer relationships.”
In addition, reductions in commercial real-estate loans over the past year “reflect significantly higher” debt placements and pay downs.
Average deposits totaled $102.6 billion for the first quarter of 2018, an increase of $478 million compared to the year-ago quarter. Certificates of deposits and other time deposits increased $1.5 billion.
KeyCorp is “one of the nation’s largest” bank-based, financial-services companies, with assets of about $137 billion as of March 31.
Key provides deposit, lending, cash management, insurance, and investment services in 15 states through a network of about 1,200 KeyBank branches and more than 1,500 ATMs.
KeyCorp’s roots trace back 190 years to Albany, New York. Its KeyBank unit today ranks second in deposit market share in the 16-county Central New York area.
