Keycorp reports first quarter 2024 net income of $183 million
CLEVELAND – Keycorp announced net income from continuing operations attributable to Key common shareholders of $183 million, or $.20 per diluted common share, for the first quarter of 2024.
Net income from continuing operations attributable to Key common shareholders was $30 million, or $.03 per diluted common share, for the fourth quarter of 2023 and $275 million, or $.30 per diluted common share, for the first quarter of 2023, Key said in an April 18 news release.
Included in the first quarter of 2024 are $22 million, or $.02 per diluted common share, aftertax, of charges related to the FDIC special assessment.
Included in the fourth quarter of 2023 are $209 million, or $.22 per diluted common share, aftertax, of charges related to the FDIC special assessment, efficiency related expenses, and a pension settlement charge(a).
“We are off to a solid start in 2024,” Key Chairman and CEO, Chris Gorman said in a statement. “Investment Banking posted its best first quarter in our history, net interest income was within the range of guidance that we provided in January, and expenses remained well controlled.”
Data he provided shows:
– Customer deposits were up 2% year-overyear
– Relationship households and commercial clients grew 2.5% and 6%, respectively.
- -Net charge-offs and nonperforming loans remained low and below their historical averages.
“We continued to invest and make progress in our fee-based businesses where we have a differentiated value proposition,” Gorman said.
“Last month, we announced a strategic partnership that will help us accelerate growth in our commercial platform, another example of how we are delivering best-in-class execution services for our clients while concurrently managing risk,” he said.
Gordman added: “Key is back to playing offense. I remain excited for our future and believe our strong foundation positions us to deliver sound, profitable growth moving forward.”
Key’s Consumer Bank recorded net income attributable to Key of $55 million for the first quarter of 2024, compared to $89 million for the yearago quarter.
Taxable-equivalent net interest income decreased by $63 million, or 10.3%, compared to the first quarter of 2023, reflective of a shift in funding mix from non interest-bearing deposits to higher-cost deposits and borrowings, as well as Key’s balance sheet optimization efforts
Average loans and leases decreased $2.6 billion, or 6.1%, from the first quarter of 2023, driven by broad-based declines across loan categories
Average deposits decreased $320 million, or 0.4%, from the first quarter of 2023
Provision for credit losses decreased $62 million compared to the first quarter of 2023, driven by planned balance sheet optimization efforts and
an improving economic outlook, partly offset by higher net charge-offs
Noninterest income decreased $4 million from the year-ago quarter, driven by declines in service charges on deposit accounts and cards and payments income
Noninterest expense increased $40 million from the year-ago quarter, primarily reflective of the FDIC special assessment charge.