- KeyCorp’s net interest income (FTE) reached $1.11 billion, meeting the estimate of $1.1 billion.
- The net interest margin on a taxable-equivalent basis was 2.58%, aligning with expectations.
- Adjusted earnings per share (EPS) came in at 33 cents, surpassing the estimate of 32 cents.
- Total revenue amounted to $1.77 billion.
- Investment banking and debt placement fees were $175 million, exceeding the forecast of $154.1 million.
- Non-interest income was reported at $668 million, above the estimated $654.4 million.
- Provision for credit losses totaled $118 million, higher than the anticipated $101.2 million.
- Non-interest expenses were $1.13 billion, slightly below the expected $1.15 billion.
- Net charge-offs matched the estimate at $110 million.
- The return on average tangible common equity was noted at 11.2%.
- The efficiency ratio stood at 63.5%.
- The common equity Tier 1 ratio was 11.8%, just shy of the predicted 12.1%.
- Total deposits reached $150.74 billion, exceeding the forecast of $149.14 billion.
- Total loans amounted to $104.81 billion.
- Overall, the EPS was reported at 33 cents.
- Analyst recommendations included 13 buys, 11 holds, and no sells.
Keycorp on Smartkarma
KeyCorp’s analyst coverage on Smartkarma by Baptista Research delves into the company’s strategic maneuvers in the third quarter of 2024 to fortify its financial standing. The report highlights KeyCorp’s receipt of a substantial minority investment from Scotiabank, totaling $821 million, which was adeptly leveraged to adjust a segment of its securities portfolio. The timing of this action, coinciding with market peaks, allowed KeyCorp to offload securities worth over $7 billion and reallocate funds into shorter-term, higher-yield agency MBS. Despite facing challenges that warrant careful investor attention, these initiatives are positioned as critical drivers for KeyCorp’s growth trajectory.
A look at Keycorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
KeyCorp, a financial services holding company, has been given a positive outlook based on the Smartkarma Smart Scores analysis. With a strong emphasis on dividend and value, KeyCorp is seen as a reliable choice for investors seeking stable returns and solid financial standing. However, the company scores lower in growth and resilience, indicating potential challenges in expanding its business and weathering economic uncertainties.
Overall, KeyCorp’s smart scores paint a picture of a company that offers consistent dividends and is positioned to deliver value to its investors. While there may be room for improvement in growth and resilience, KeyCorp’s strong focus on dividends and value could make it an attractive long-term investment option for those looking for stability in the financial services sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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