- KeyCorp reported a net interest income FTE of $964 million, surpassing the estimate of $948.5 million.
- The net interest margin (NIM) on a taxable-equivalent basis was 2.17%, slightly below the estimated 2.2%.
- Revenue fell short at $695 million compared to the estimated $1.6 billion.
- Investment banking and debt placement fees were higher than expected at $171 million, exceeding the estimate of $157.7 million.
- The provision for credit losses was $95 million, which is lower than the anticipated $104.1 million.
- Non-interest expenses were $1.09 billion, slightly under the forecast of $1.12 billion.
- Net charge-offs were significantly higher than expected at $154 million, above the estimate of $103.3 million.
- The return on average tangible common equity stood at -17%, drastically below the estimate of 7.18%.
- The efficiency ratio was 156.4%, much worse than the expected 79.7%.
- The Common Equity Tier 1 (CET1) ratio was 10.8%, just below the estimate of 10.9%.
- Total deposits reached $150.35 billion, exceeding the estimate of $146.23 billion.
- Loans amounted to $105.35 billion.
- KeyCorp emphasized the repositioning of its securities portfolio, expected to improve future earnings, capital, and liquidity starting in the fourth quarter.
- The company’s tangible common equity ratio improved by 100 basis points quarter-over-quarter.
- KeyCorp completed an initial $821 million investment tranche as part of a $2.8 billion capital raise from Scotiabank.
- Market ratings showed 10 buys, 10 holds, and 0 sells for KeyCorp.
“`
A look at Keycorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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, shows a promising long-term outlook as per the Smartkarma Smart Scores. With solid scores in the Value and Dividend categories, KeyCorp is seen as a strong contender in terms of financial stability and returns to investors. However, lower scores in Growth and Resilience indicate potential areas for improvement in future performance. Nevertheless, its Momentum score of 5 suggests that the company is currently experiencing strong positive market sentiment and upward price trends.
Summing up, KeyCorp offers a diverse range of financial products and services to a variety of clients, which helped it achieve high scores in Value and Dividend categories. Despite lower scores in Growth and Resilience, the company’s strong Momentum score signifies a positive outlook in the current market environment, indicating potential opportunities for growth and profitability in the long run.
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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