On Thursday, Shares of KeyCorp. (NYSE:KEY), surged 4.72% to $13.31.
KeyCorp (KEY), declared third quarter net income from ongoing operations attributable to Key common shareholders of $216 million, or $.26 per common share, contrast to $230 million, or $.27 per common share, for the second quarter of 2015, and $197 million, or $.23 per common share, for the third quarter of 2014. During the third quarter of 2015, Key incurred $19 million, or $.01 per common share, of costs related to a pension settlement charge, contrast to $20 million, or $.01 per common share, during the third quarter of 2014.
For the nine months ended September 30, 2015, net income from ongoing operations attributable to Key common shareholders was $668 million, or $.78 per common share, contrast to $671 million, or $.76 per common share, for the same period one year ago.
“Key’s third quarter results reflect our continued success in growing our business, managing expenses and maintaining strong credit quality,” said Chairman and Chief Executive Officer Beth Mooney.
THIRD QUARTER 2015 FINANCIAL RESULTS, from ongoing operations
Contrast to Third Quarter of 2014
- Average loans up 6%, driven by 15% growth in commercial, financial and agricultural loans
- Average deposits, not taking into account deposits in foreign office, up 3% due to continued growth in commercial mortgage servicing and inflows from commercial and consumer clients
- Net interest income (taxable-equivalent) up $17 million, as higher earning asset balances offset lower earning asset yields
- Noninterest income up $53 million due to strength in Key’s core fee-based businesses, which comprised a full-quarter impact of the September 2014 Pacific Crest Securities acquisition
- Noninterest expense up $18 million primarily attributable to higher performance-based compensation and a full-quarter impact of the September 2014 Pacific Crest Securities acquisition
- Asset quality remained strong, with net loan charge-offs to average loans of .27%
- Disciplined capital administration, repurchasing $123 million of common shares during the third quarter of 2015 and maintaining a solid capital position with an estimated Common Equity Tier 1 ratio of 10.51%
Contrast to Second Quarter of 2015
- Average loans up 2%, primarily driven by a 5% improvement in commercial, financial and agricultural loans
- Average deposits, not taking into account deposits in foreign office, down slightly reflecting a decline in short-term noninterest-bearing deposit balances from commercial clients and lower certificates of deposit
- Net interest income (taxable-equivalent) up $7 million attributable to improvement in the earning asset mix, partly offset by slightly lower earning asset yields and loan fees
- Noninterest income down $18 million, primarily due to lower investment banking and debt placement fees partially offset by growth in other fee-based businesses
- Noninterest expense up $13 million, driven by a $19 million pension settlement charge in the third quarter
- Strong asset quality, with net loan charge-offs to average loans remaining below our targeted range of 40-60 basis points.
KeyCorp. traded on a volume of 20.80M, higher than its standard daily volume. The stock, as of recent close, has shown weekly upbeat performance of 2.54% which was maintained at 2.54% in this year. Over the last twelve months, the stock has gained $0.43 (3.34%) and faced a worst price of $11.55 on Oct 16, 2014. The stock has moved down across its 50-day moving average of $13.27.
KeyCorp is a bank holding company. The Bank operates through its partner, KeyBank National Association, which is engaged in providing banking services. Through KeyBank and other auxiliaries, the Bank provides a range of retail and commercial banking, commercial leasing, investment administration, consumer finance, commercial mortgage servicing and special servicing, and investment banking products and services. The Bank provides these services to individual, corporate and institutional clients.
