CLEVELAND - KeyCorp (NYSE:KEY), a prominent financial services company, disclosed its fourth-quarter earnings today, revealing a net profit of $30 million, or $0.03 per share. This figure includes the impact of specific special expenses such as an FDIC levy and pension-related charges. When these charges are excluded, the adjusted earnings per share (EPS) stand at $0.25.
In the face of rising interest rates, KeyCorp experienced a decrease in its net interest margin (TE), which fell to 2.07%. Additionally, the company saw a downturn in noninterest income, with a notable reduction in investment banking fees. Despite these challenges, KeyCorp maintains a robust balance sheet with total assets around $188 billion and a strong Common Equity Tier 1 ratio at 10%.
The CEO of KeyCorp emphasized the company's strategic emphasis on fee-based businesses and a de-risked loan portfolio. The bank's average deposits have remained consistent, and it has successfully reduced its risk-weighted assets by $14 billion, exceeding its annual target.
Noninterest expenses for the bank have been influenced by severance-related personnel expenses. However, the overall capital position of KeyCorp has shown signs of improvement, suggesting a resilient financial standing amid a changing economic landscape.
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