KeyCorp Posts Lower Profit In Q3 - Update

(RTTNews) - KeyCorp. (KEY), the bank holding company for KeyBank National Association, Wednesday reported a decline in the third-quarter profit, reflecting lower revenue, even as loan and lease loss provision slightly decreased from last year. Earnings per share, as well as revenues missed analysts' estimates.

For the quarter, net income attributable to common shareholders declined to $204 million or $0.24 per share from $266 million or $0.29 in the previous year.

Earnings from continuing operations attributable to common shareholders were $0.23 per share, compared to $0.25 per share in the prior-year period.

On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue, Taxable Equivalent, or TE fell to $998 million from $1.04 billion last year, while 17 wall Street analysts were looking for revenue of $1.04 billion for the quarter.

Net interest income TE, was $581 million, lower than $584 million a year ago. Non-interest income dropped to $417 million from $459 million reported last year.

Provision for loan and lease losses decreased to $21 million from $28 million in the preceding year.

Average loans improved 5 percent from prior year, driven by an 11 percent increase in commercial, financial and agricultural loans.

Average deposits improved 3.6 percent due to commercial mortgage servicing acquisitions and growth in commercial deposits offsetting declines in certificates of deposit.

"Key's third quarter reflects solid results in our core businesses as we continue to execute on our relationship strategy...Core expenses remained well-controlled and, excluding pension-related charges, were down from both the prior year and last quarter," said Chairman and Chief Executive Officer Beth Mooney.

In the third quarter, Tier 1 common equity ratio was 11.26 percent, compared to 11.17 percent a year earlier.

KEY closed Tuesday's trading at $12.89. In the pre-market activity on Wednesday, the shares are down 8.84 percent.