KeyCorp (NYSE: KEY), which operates locally as KeyBank Vermont, today announced third
quarter net income from continuing operations attributable to Key common shareholders of
$163 million, or $.19 per common share. These results compare to a net loss from continuing
operations attributable to Key common shareholders of $422 million, or $.50 per common
share, for the third quarter of 2009. The third quarter 2009 results were negatively impacted by
a $733 million loan loss provision. Third quarter 2010 net income attributable to Key common
shareholders was $178 million compared to a net loss attributable to Key common shareholders
of $438 million for the same quarter one year ago. Net income attributable to Key common
shareholders for the nine-month period ended September 30, 2010 was $111 million compared
to a net loss attributable to Key common shareholders of $1.364 billion for the same period one
year ago.
Key’s third quarter earnings improvement resulted from improved pre-provision net
revenue and a lower provision for loan losses when compared to the second quarter of 2010.
Credit quality continued to improve across the majority of the loan portfolios in both
Community Banking and National Banking. Net charge-offs declined by $78 million, and
nonperforming loans decreased by $331 million from June 30, 2010.
‘With the third quarter’s results, Key has returned to profitability on a year-to-date
basis,’ said Chief Executive Officer Henry L. Meyer III. ‘We are pleased with our progress
and recognize the important contributions of employees across Key who have remained focused
on serving our clients through what has been the most challenging economic period in decades.
Our third quarter results reflect a higher net interest margin, continued credit quality
improvement, well-controlled expenses, and improvements in several fee-based businesses.’
Meyer continued: ‘Our work to lower our risk profile and proactively address credit
issues is resulting in asset quality improvements across a majority of our loan portfolios and the
fourth consecutive quarterly decline in nonperforming assets.’
‘Key’s core financial measures ‘ strong capital, enhanced liquidity, adequate loan loss
reserves ‘ along with our selective exits from riskier lending categories, together provide a firm
foundation for growth as the economy strengthens,’ added Meyer.
At September 30, 2010, Key’s estimated Tier 1 common equity ratio was 8.59%
compared to 8.07% at June 30, 2010, and estimated Tier 1 risk-based capital ratio was 14.26%
up from 13.62% one quarter ago.
Key’s strong capital and liquidity positions provide the Company with the ability to
serve the borrowing needs of our clients when the economy expands. The Company originated
approximately $8.1 billion in new or renewed lending commitments to consumers and
businesses during the quarter and approximately $21 billion for the nine-month period ended
September 30, 2010.
Meyer also noted that Key opened 34 new branches during the first nine months of
2010 and expects to open an additional five new branches during the fourth quarter of 2010,
increasing its market presence in selected markets of its 14-state branch network. In addition,
Key’s online account application features were ranked second among the 16 largest U.S. banks
in Corporate Insight’s September 2010 edition of Bank Monitor, a leading rating service for the
online space. Key had previously been recognized by Bank Monitor for its capabilities in the
areas of online application, account information, and alerts. The investment in new and
modernized branches, coupled with the enhancements to online banking, reflect Key’s
relationship strategy and efforts to provide clients with a breadth of options that meet their
specific banking needs. The Company is positioning its branch and online capabilities to enhance growth as the economy turns.
Source: KeyCorp.