KeyCorp (NYSE: KEY) today announced fourth quarter net income from continuing operations attributable to Key common shareholders of $193 million, or $.21 per common share, compared to $214 million, or $.23 per common share for the third quarter of 2012, and $201 million, or $.21 per common share for the fourth quarter of 2011. During the fourth quarter Key incurred $16 million, or $.01 per common share of costs associated with its previously announced Fit for Growth efficiency initiative. For 2012, net income from continuing operations attributable to Key common shareholders was $827 million, or $.88 per common share, compared to $857 million, or $.92 per common share for 2011. For 2012, Key incurred $25 million, or $.02 per common share of costs associated with its Fit for Growth efficiency initiative.
We had a good finish to 2012, said Chairman and Chief Executive Officer Beth E. Mooney. Our full-year results reflect success in executing on our strategies to grow loans, add additional payment capabilities to our product line in the form of credit cards and improved mobile banking, and moving forward on our efficiency initiative.
Mooney added: Our momentum continued in the most recent quarter. The net interest margin was up 14 basis points versus the prior quarter driven by ongoing liability repricing and growth in both commercial and consumer loan balances. We also experienced significant revenue growth in our Corporate Bank from both our investment banking and commercial mortgage businesses.
Progress continues on our efficiency initiative, said Mooney. We ended the year with run rate savings of approximately $60 million annualized. We also continued to invest in the future revenue growth of our company by continuing to upgrade our technology to meet the needs of our clients. We remain committed to deliver on our goal of achieving an efficiency ratio in the range of 60% to 65%.
FOURTH QUARTER 2012 FINANCIAL RESULTS
· Net interest income of $607 million, up $29 million from prior quarter
· Net interest margin of 3.37%, up 14 basis points from prior quarter due to lower funding costs and increased loan fees
· Continued loan growth driven by 6% quarterly increase in commercial, financial and agricultural loans
· Average deposits increased 2% from prior quarter
· Noninterest expense increased $22 million from prior quarter, of which $10 million was associated with Fit for Growth efficiency initiative
· Provision for loan and lease losses decreased $52 million from the third quarter of 2012
· Net loan charge-offs decreased $51 million from prior quarter to .44% of average loans, the lowest level since third quarter of 2007
· Maintained solid balance sheet with Tier 1 common equity of 11.16%
Selected Financial Highlights
dollars in millions, except per share data
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Income (loss) from continuing operations attributable to Key common shareholders
$
193
$
214
$
201
(9.8)
%
(4.0)
%
Income (loss) from continuing operations attributable to Key common shareholders per
common share
.21
.23
.21
(8.7)
Return on average total assets from continuing operations
.97
%
1.08
%
1.01
%
N/A
N/A
Tier 1 common equity
11.16
11.30
11.26
N/A
N/A
Book value at period end
$
10.78
$
10.64
$
10.09
1.3
%
6.8
%
Net interest margin (TE) from continuing operations
3.37
%
3.23
%
3.13
%
N/A
N/A
TE = Taxable Equivalent, N/A = Not Applicable
INCOME STATEMENT HIGHLIGHTS
Revenue
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Net interest income (TE)
$
607
$
578
$
563
5.0
%
7.8
%
Noninterest income
466
544
414
(14.3)
12.6
Total revenue
$
1,073
$
1,122
$
977
(4.4)
%
9.8
%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $607 million for the fourth quarter of 2012, and the net interest margin was 3.37%. These results compare to taxable-equivalent net interest income of $563 million and a net interest margin of 3.13% for the fourth quarter of 2011. The increase in net interest income and the net interest margin was primarily a result of a change in funding mix from the redemption of certain trust preferred securities, maturity of long-term debt, and maturity of higher-costing certificates of deposit during the past year.
Compared to the third quarter of 2012, taxable-equivalent net interest income increased by $29 million, and the net interest margin improved by 14 basis points. The improvement was driven largely by lower funding costs, resulting from an increase in demand and non-time interest-bearing deposits, and maturity of higher rate certificates of deposit. In addition, Key experienced an increase in loan-related fees compared to the third quarter when the Company wrote-off capitalized loan origination costs of $13 million as a result of the early termination of leveraged leases.
Noninterest Income
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Trust and investment services income
$
104
$
106
$
104
(1.9)
%
N/M
Service charges on deposit accounts
75
74
70
1.4
7.1
%
Operating lease income
16
17
25
(5.9)
(36.0)
Letter of credit and loan fees
59
52
56
13.5
5.4
Corporate-owned life insurance income
36
26
35
38.5
2.9
Electronic banking fees
18
18
18
N/M
N/M
Gains on leased equipment
2
46
9
(95.7)
(77.8)
Insurance income
14
13
11
7.7
27.3
Net gains (losses) from loan sales
57
39
27
46.2
111.1
Net gains (losses) from principal investing
2
11
(8)
(81.8)
N/M
Investment banking and capital markets income (loss)
47
38
24
23.7
95.8
Other income
36
104
43
(65.4)
(16.3)
Total noninterest income
$
466
$
544
$
414
(14.3)
%
12.6
%
N/M = Not Meaningful
Keys noninterest income was $466 million for the fourth quarter of 2012, compared to $414 million for the year-ago quarter. Net gains (losses) from loan sales increased $30 million from the year-ago quarter due to an increase in volume in Keys commercial mortgage banking business. Investment banking and capital markets income also increased $23 million from one year ago. The fourth quarter of 2011 included a $24 million charge resulting from VISAs announcement of a planned increase to its litigation escrow deposit.
Compared to the third quarter of 2012, noninterest income decreased by $78 million. Other income declined $68 million, primarily due to a $54 million gain associated with the redemption of certain trust preferred securities in the third quarter of 2012. Gains on leased equipment also decreased $44 million, primarily related to the early terminations of leveraged leases in the third quarter of 2012. These decreases in noninterest income were partially offset by increases in net gains (losses) from loan sales of $18 million, corporate-owned life insurance income of $10 million, investment banking and capital markets income of $9 million, and letter of credit and loan fees of $7 million.
Noninterest Expense
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Personnel expense
$
433
$
411
$
387
5.4
%
11.9
%
Nonpersonnel expense
323
323
330
N/M
(2.1)
Total noninterest expense
$
756
$
734
$
717
3.0
%
5.4
%
N/M = Not Meaningful
Keys noninterest expense was $756 million for the fourth quarter of 2012, compared to $717 million for the same period last year. Personnel expense increased $46 million due to several factors an increase in contract labor for technology investments attributable to the previously announced credit card portfolio acquisitions and related implementation of new payment systems and merchant services processing; higher employee benefits due to an increase in medical claims expense and an adjustment to the annual retirement contribution accrual; and severance expense associated with Keys Fit for Growth efficiency initiative. Nonpersonnel expense decreased $7 million from one year ago. Operating lease expense, other real estate owned (OREO) and marketing expense decreased from the year ago quarter. These declines were partially offset by an increase of $11 million related to the amortization of the intangible assets associated with the third quarter 2012 acquisitions of the previously announced credit card portfolio as well as the branches in Western New York.
Compared to the third quarter of 2012, noninterest expense increased by $22 million due to increases in personnel expense. Salaries were up due to the previously discussed technology investment spend along with an increase in employee benefits due to higher medical claims expense and an adjustment to the annual retirement contribution accrual. Severance expense also increased as a result of Keys Fit for Growth efficiency initiative. Nonpersonnel expense in total was unchanged from the third quarter of 2012.
BALANCE SHEET HIGHLIGHTS
As of December 31, 2012, Key had total assets of $89.2 billion compared to $87.0 billion at September 30, 2012, and $88.8 billion at December 31, 2011.
Average Loans
dollars in millions
Change 12-31-12 vs.
12-31-12
9-30-12
12-31-11
9-30-12
12-31-11
Commercial, financial and agricultural (a)
$
22,436
$
21,473
$
18,590
4.5
%
20.7
%
Other commercial loans
13,494
13,605
15,185
(.8)
(11.1)
Total home equity loans
10,218
10,202
9,833
.2
3.9
Other consumer loans
5,711
5,415
5,056
5.5
13.0
Total loans
$
51,859
$
50,695
$
48,664
2.3
%
6.6
%
(a) Commercial, financial and agricultural average balance for the three months ended December 31, 2012 and September 30, 2012 includes $90 million and $54 million of assets from commercial credit cards, respectively.
Average loans were $51.9 billion for the fourth quarter of 2012, an increase of $3.2 billion compared to the fourth quarter of 2011. Commercial, financial and agricultural loans grew by $3.8 billion over the year-ago quarter, with strong growth across Keys corporate and middle market segments. In addition, the third quarter 2012 credit card portfolio and Western New York branch acquisitions added $1 billion of mostly consumer loans. This growth was partially offset by managed declines in the commercial real estate portfolio, the equipment lease portfolio, which included the early termination of certain leveraged leases in the exit portfolio, and run-off of consumer loans in the designated exit portfolio.
Compared to the third quarter of 2012, average loans increased by $1.2 billion. Much of the growth in loans was attributable to a $759 million increase in commercial and industrial lending within the commercial, financial and agricultural loan category. In addition, the full fourth quarter impact of the third quarter 2012 credit card portfolio acquisitions added $257 million to average loans.
Key originated approximately $10.2 billion in new or renewed lending commitments to consumers and businesses during the fourth quarter of 2012 and $37.8 billion for 2012.
Average Deposits
dollars in millions
Change 12-31-12 vs.
12-31-12
9-30-12
12-31-11
9-30-12
12-31-11
Non-time deposits
$
56,229
$
54,098
$
48,800
3.9
%
15.2
%
Certificates of deposits ($100,000 or more)
2,992
3,420
4,275
(12.5)
(30.0)
Other time deposits
4,714
5,158
6,505
(8.6)
(27.5)
Total deposits
$
63,935
$
62,676
$
59,580
2.0
%
7.3
%
Cost of interest-bearing deposits
.47
%
.57
%
.82
%
N/A
N/A
N/A = Not Applicable
Average deposits totaled $63.9 billion for the fourth quarter of 2012, an increase of $4.4 billion compared to the year-ago quarter. The growth reflects an increase in demand deposits of $3.4 billion and the impact of Keys third quarter 2012 Western New York branch acquisition, which added $2 billion of mostly interest-bearing non-time deposits.
Compared to the third quarter of 2012, average deposits increased by $1.3 billion. The growth was largely due to an increase of $1 billion in demand deposits.
ASSET QUALITY
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Net loan charge-offs
$
58
$
109
$
105
(46.8)
%
(44.8)
%
Net loan charge-offs to average loans
.44
%
.86
%
.86
%
N/A
N/A
Nonperforming loans at period end (a)
$
674
$
653
$
727
3.2
(7.3)
Nonperforming assets at period end
735
718
859
2.4
(14.4)
Allowance for loan and lease losses
888
888
1,004
(11.6)
%
Allowance for loan and lease losses to nonperforming loans
132
%
136
%
138
%
N/A
N/A
Provision (credit) for loan and lease losses
$
57
$
109
$
(22)
(47.7)
%
N/M
(a) December 31, 2012 and September 30, 2012 amounts exclude $23 million and $25 million, respectively, of purchased credit impaired loans acquired in July 2012.
N/A = Not Applicable, N/M = Not Meaningful
Keys provision for loan and lease losses was $57 million for the fourth quarter of 2012, compared to $109 million for the third quarter of 2012 and a credit of $22 million for the year-ago quarter. Keys allowance for loan and lease losses was $888 million, or 1.68% of total period-end loans at December 31, 2012, compared to 1.73% at September 30, 2012, and 2.03% at December 31, 2011.
Net loan charge-offs for the fourth quarter of 2012 totaled $58 million, or .44% of average loans. These results compare to $109 million, or .86% for the third quarter of 2012, and $105 million, or .86% for the same period last year. The third quarter of 2012 included $45 million of incremental net loan charge-offs reported in accordance with updated regulatory guidance. Further review of the loans subject to this updated regulatory guidance was performed during the fourth quarter of 2012 and resulted in a partial home equity loan charge-off reversal and reallocation of the updated charge-off amounts to other consumer loan portfolios.
At December 31, 2012, Keys nonperforming loans totaled $674 million and represented 1.28% of period-end portfolio loans, compared to 1.27% at September 30, 2012 and 1.47% at December 31, 2011. Nonperforming loans at December 31, 2012 included $46 million of loans related to the regulatory guidance issued in the second and third quarters of 2012. Nonperforming assets at December 31, 2012, totaled $735 million and represented 1.39% of portfolio loans and OREO and other nonperforming assets, compared to 1.39% at September 30, 2012, and 1.73% at December 31, 2011.
CAPITAL
Keys estimated risk-based capital ratios included in the following table continued to exceed all well-capitalized regulatory benchmarks at December 31, 2012.
Capital Ratios
12-31-12
9-30-12
12-31-11
Tier 1 common equity (a), (b)
11.16
%
11.30
%
11.26
%
Tier 1 risk-based capital (a)
11.94
12.10
12.99
Total risk based capital (a)
14.86
15.17
16.51
Tangible common equity to tangible assets (b)
10.15
10.39
9.88
(a) 12-31-12 ratio is estimated.
(b) The table entitled GAAP to Non-GAAP Reconciliations in the attached financial supplement presents the computations of certain financial measures related to tangible common equity and Tier 1 common equity. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
As shown in the preceding table, at December 31, 2012, Keys estimated Tier 1 common equity and Tier 1 risk-based capital ratios stood at 11.16% and 11.94%, respectively. In addition, the tangible common equity ratio was 10.15% at December 31, 2012.
Summary of Changes in Common Shares Outstanding
in thousands
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Shares outstanding at beginning of period
936,195
945,473
952,808
(1.0)
%
(1.7)
%
Common shares repurchased
(10,530)
(9,639)
N/M
N/M
Shares reissued (returned) under employee benefit plans
104
361
200
(71.2)
(48.0)
Shares outstanding at end of period
925,769
936,195
953,008
(1.1)
%
(2.9)
%
N/M = Not Meaningful
As previously reported and as authorized by Keys Board of Directors and pursuant to Keys 2012 capital plan submitted to the Federal Reserve and not objected to by the Federal Reserve, Key had authority to repurchase up to $344 million of its Common Shares for general repurchase and repurchases in connection with employee elections under its compensation and benefit programs.
During the fourth quarter of 2012, Key completed $89 million of Common Share repurchases. Following completion of these repurchases, Key has remaining authority to repurchase up to $88 million of its Common Shares for general repurchase and repurchases in connection with employee elections under its compensation and benefit programs. Keys existing repurchase program does not have an expiration date. Common Share repurchases under the current authorization are expected to be executed through the first quarter of 2013.
LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major business segment to Keys taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.
Major Business Segments
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Revenue from continuing operations (TE)
Key Community Bank
$
567
$
576
$
546
(1.6)
%
3.8
%
Key Corporate Bank
424
392
412
8.2
2.9
Other segments
86
160
43
(46.3)
100.0
Total segments
1,077
1,128
1,001
(4.5)
7.6
Reconciling items
(4)
(6)
(24)
N/M
N/M
Total
$
1,073
$
1,122
$
977
(4.4)
%
9.8
%
Income (loss) from continuing operations attributable to Key
Key Community Bank
$
31
$
(23)
$
40
N/M
(22.5)
%
Key Corporate Bank
130
118
156
10.2
%
(16.7)
Other segments
43
102
23
(57.8)
87.0
Total segments
204
197
219
3.6
(6.8)
Reconciling items
(5)
22
(12)
N/M
N/M
Total
$
199
$
219
$
207
(9.1)
%
(3.9)
%
TE = Taxable equivalent, N/M = Not Meaningful
Key Community Bank
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Summary of operations
Net interest income (TE)
$
370
$
365
$
365
1.4
%
1.4
%
Noninterest income
197
211
181
(6.6)
8.8
Total revenue (TE)
567
576
546
(1.6)
3.8
Provision (credit) for loan and lease losses
23
120
30
(80.8)
(23.3)
Noninterest expense
529
512
476
3.3
%
11.1
Income (loss) before income taxes (TE)
15
(56)
40
N/M
(62.5)
Allocated income taxes (benefit) and TE adjustments
(16)
(33)
N/M
N/M
Net income (loss) attributable to Key
$
31
$
(23)
$
40
N/M
(22.5)
%
Average balances
Loans and leases
$
29,252
$
28,386
$
26,406
3.1
%
10.8
%
Total assets
33,086
32,136
29,867
3.0
10.8
Deposits
50,123
49,537
48,076
1.2
4.3
Assets under management at period end
$
22,334
$
21,988
$
17,938
1.6
%
24.5
%
TE = Taxable Equivalent, N/M = Not Meaningful
Additional Key Community Bank Data
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Noninterest income
Trust and investment services income
$
50
$
51
$
45
(2.0)
%
11.1
%
Service charges on deposit accounts
61
62
59
(1.6)
3.4
Electronic banking fees
18
18
18
Other noninterest income
68
80
59
(15.0)
15.3
Total noninterest income
$
197
$
211
$
181
(6.6)
%
8.8
%
Average deposit balances
NOW and money market deposit accounts
$
25,765
$
25,072
$
22,524
2.8
%
14.4
%
Savings deposits
2,403
2,373
1,959
1.3
22.7
Certificates of deposit ($100,000 or more)
2,623
2,941
3,639
(10.8)
(27.9)
Other time deposits
4,703
5,137
6,491
(8.4)
(27.5)
Deposits in foreign office
355
344
393
3.2
(9.7)
Noninterest-bearing deposits
14,274
13,670
13,070
4.4
9.2
Total deposits
$
50,123
$
49,537
$
48,076
1.2
%
4.3
%
Home equity loans
Average balance
$
9,807
$
9,734
$
9,280
Weighted-average loan-to-value ratio (at date of origination)
70
%
71
%
70
%
Percent first lien positions
55
54
53
Other data
Branches
1,088
1,087
1,058
Automated teller machines
1,611
1,620
1,579
Key Community Bank Summary of Operations
· Six consecutive quarters of average loan growth
· Core deposits up $4.9 billion, or 12.8% from the prior year and $1.3 billion, or 3.2% from the prior quarter
Key Community Bank recorded net income attributable to Key of $31 million for the fourth quarter of 2012, compared to $40 million for the year-ago quarter.
Taxable-equivalent net interest income increased by $5 million, or 1.4% from the fourth quarter of 2011. Average loans and leases grew 10.8% while average deposits increased 4.3% from one year ago. The Western New York branch and credit card portfolio acquisitions contributed $33 million to net interest income, $1 billion to average loans and leases, and $2 billion to deposits. The positive contribution to net interest income from the acquisitions was partially offset by a lower earnings credit applied to deposits in the current period compared to the same period one year ago.
Noninterest income increased by $16 million, or 8.8% from the year-ago quarter. Credit card and merchant fees increased $9 million due to the acquisition of the credit card portfolio in the third quarter of 2012. Trust and investment services income increased $5 million, primarily due to an increase in assets under management resulting from market appreciation and increased production. Service charges on deposit accounts also increased $2 million.
The provision for loan and lease losses decreased by $7 million, or 23.3% compared to the fourth quarter of 2011, primarily as a result of lower net loan charge-offs from the same period one year ago. Net loan charge-offs were $12 million for the fourth quarter of 2012, down $59 million from the same period one year ago.
Noninterest expense increased by $53 million, or 11.1% from the year-ago quarter. Keys third quarter 2012 Western New York branch and credit card portfolio acquisitions contributed $30 million to the increase in noninterest expense spread across several expense categories, including personnel, loan servicing and intangible amortization expense, which increased $11 million. Personnel expense, excluding the impact of acquisitions, was $8 million higher than one year ago. Various other miscellaneous expenses also increased from the same period one year ago.
Key Corporate Bank
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Summary of operations
Net interest income (TE)
$
188
$
182
$
177
3.3
%
6.2
%
Noninterest income
236
210
235
12.4
.4
Total revenue (TE)
424
392
412
8.2
2.9
Provision (credit) for loan and lease losses
11
(3)
(61)
N/M
N/M
Noninterest expense
206
209
228
(1.4)
(9.6)
Income (loss) before income taxes (TE)
207
186
245
11.3
(15.5)
Allocated income taxes and TE adjustments
77
68
89
13.2
(13.5)
Net income (loss) attributable to Key
$
130
$
118
$
156
10.2
%
(16.7)
%
Average balances
Loans and leases
$
19,477
$
18,886
$
17,784
3.1
%
9.5
%
Loans held for sale
538
441
356
22.0
51.1
Total assets
23,461
22,914
21,811
2.4
7.6
Deposits
13,672
12,873
11,162
6.2
22.5
Assets under management at period end
$
28,340
$
27,682
$
33,794
2.4
%
(16.1)
%
TE = Taxable Equivalent, N/M = Not Meaningful
Additional Key Corporate Bank Data
dollars in millions
Change 4Q12 vs.
4Q12
3Q12
4Q11
3Q12
4Q11
Noninterest income
Trust and investment services income
$
55
$
56
$
58
(1.8)
%
(5.2)
%
Investment banking and debt placement fees (a)
109
82
62
32.9
75.8
Operating lease income and other leasing gains (b)
18
20
26
(10.0)
(30.8)
Corporate services income (c)
30
27
44
11.1
(31.8)
Other noninterest income
24
25
45
(4.0)
(46.7)
Total noninterest income
$
236
$
210
$
235
12.4
%
.4
%
(a)
Included in "Investment banking and capital markets income (loss)," "Net gains (losses) from loan sales," and "Letter of credit and loan fees" on the Consolidated Statements of Income.
(b)
Included in "Operating lease income" and "Gains on leased equipment" on the Consolidated Statements of Income.
(c)
Included in "Service charges on deposit accounts," "Letter of credit and loan fees," and "Investment banking and capital markets income (loss)" on the Consolidated Statements of Income.
Key Corporate Bank Summary of Operations
· Investment banking and debt placement fees were $109 million for the fourth quarter of 2012, up $47 million, or 75.8% from the prior year and up $27 million, or 32.9% from the prior quarter
· Average loan balances up 9.5% from the prior year and 3.1% from the prior quarter
· Average deposits up 22.5% from the prior year and 6.2% from the prior quarter
Key Corporate Bank recorded net income attributable to Key of $130 million for the fourth quarter of 2012, compared to $156 million for the same period one year ago.
Taxable-equivalent net interest income increased by $11 million, or 6.2% compared to the fourth quarter of 2011. Average earning assets increased $1.7 billion, or 8.9% from the year-ago quarter, and average deposit balances increased $2.5 billion, or 22.5% from the year-ago quarter, contributing to the improvement in net interest income.
Noninterest income increased by $1 million, or .4% from the fourth quarter of 2011. Net gains (losses) from loan sales from commercial mortgage banking activities in the Real Estate Capital line of business increased $30 million. This increase was offset by a $23 million decline in other income due to gains realized in the fourth quarter of 2011 related to the disposition of certain investments held by the Real Estate Capital line of business and a $7 million decrease in operating lease revenue compared to the year-ago quarter.
The provision for loan and lease losses in the fourth quarter of 2012 was a charge of $11 million compared to a credit of $61 million for the same period one year ago. Net loan charge-offs were $21 million for the fourth quarter of 2012, up $9 million from the same period one year ago.
Noninterest expense decreased by $22 million, or 9.6% from the fourth quarter of 2011. Contributing to the decline in noninterest expense were decreases in personnel expense of $7 million, operating lease expense of $4 million, and other miscellaneous expenses of $8 million. In addition, the provision (credit) for losses on lending-related commitments was a credit of $16 million compared to a credit of $10 million one year ago.
Other Segments
Other Segments consist of Corporate Treasury, Keys Principal Investing unit, and various exit portfolios. Other Segments generated net income attributable to Key of $43 million for the fourth quarter of 2012, compared to net income attributable to Key of $23 million for the same period last year. These results were primarily attributable to increases in net interest income of $31 million and net gains (losses) from principal investing of $10 million, partially offset by an increase in the loan and lease loss provision of $16 million.
KeyCorp was organized more than 160 years ago and is headquartered in Cleveland, Ohio. One of the nations largest bank-based financial services companies, Key had assets of approximately $89.2 billion at December 31, 2012.
Key provides deposit, lending, cash management and investment services to individuals, small and mid-sized businesses in 14 states under the name KeyBank National Association. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC
CLEVELAND, January 24, 2013 KeyCorp