KeyCorp reports third quarter 2013 net income Of $229 million

KeyCorp (NYSE: KEY), parent company of KeyBank Vermont, has announced third quarter net income from continuing operations attributable to Key common shareholders of $229 million, or $.25 per common share, compared to $193 million, or $.21 per common share for the second quarter of 2013, and $211 million, or $.22 per common share for the third quarter of 2012.
During the third quarter, Key incurred $41 million, or $.03 per common share of costs related to both its previously announced efficiency initiative and a pension settlement charge.
For the nine months ended September 30, 2013, net income from continuing operations attributable to Key common shareholders was $618 million, or $.67 per common share, compared to $623 million, or $.66 per common share for the same period one year ago. During the nine months ended September 30, 2013, Key incurred $93 million, or $.06 per common share of costs related to both its efficiency initiative and a pension settlement charge.
CURRENT QUARTER DEVELOPMENTS
Executing on growth initiatives
â ¢ Acquired commercial mortgage servicing portfolio and special servicing business, adding over $1 billion in low-cost funding through escrow deposit balances
â ¢ Grew and expanded client relationships by executing on Key’s relationship model and focusing on targeted client segments
Achieved expense savings target
â ¢ Achieved annualized run rate savings of $207 million, focused on further efficiency improvements
â ¢ Recognized expenses of $41 million, or $.03 per common share, associated with the efficiency initiative and a pension settlement charge during the third quarter of 2013
â ¢ Consolidated eight branches during the third quarter, reaching 65 total consolidated branches since the launch of the efficiency initiative
Focused on capital management priorities
â ¢ Completed Victory divestiture on July 31, realizing an after-tax net gain of $92 million in discontinued operations; additional gain may be realized, resulting from consents received through January 2014
â ¢ Repurchased $198 million of common shares during the third quarter of 2013
‘Key’s results reflect another quarter of improved performance as we continued to grow our businesses, improve efficiency and execute on our capital priorities,’ said Chairman and Chief Executive Officer Beth Mooney. ‘Revenue benefited from solid loan growth, driven by an 11% increase from the prior year in commercial, financial and agricultural loans, as well as improved trends in several of our fee-based businesses. These results reflect the success of our distinctive business model and our progress in implementing our growth initiatives. Expense levels continued to be well-managed. Importantly, we accomplished our goal that we set in June of 2012 to achieve annualized cost savings of $200 million. This is an important milestone for us, and we believe that our cost discipline is now embedded within our culture, which will allow us to drive further efficiency improvements. Credit quality also improved, with net charge-offs to average loans now at their lowest level since the first quarter of 2007.’
‘We continued to invest in our business, as well as address areas that do not fit our relationship strategy. This quarter, we executed on both parts of our strategy by completing the previously announced acquisition of commercial real estate servicing and the sale of Victory Capital Management,’ continued Mooney.
Full Report: http://investor.key.com/file.aspx?IID=100334&FID=20195885
CLEVELAND, October 16, 2013 ‘ KeyCorp