KeyCorp (KEY) Misses Q1 EPS by 1c

KeyCorp (NYSE: KEY) reported Q1 EPS of $0.24, ex-items, $0.01 worse than the analyst estimate of $0.25. Revenue for the quarter came in at $1.04 billion versus the consensus estimate of $1.04 billion.

"While the operating environment remains challenging, our results reflect continued momentum in our core businesses and progress on our strategic initiatives," said Chairman and Chief Executive Officer Beth Mooney. "Excluding merger-related expense, we generated positive operating leverage relative to the same period last year, driven by a 3% increase in revenue and well-controlled expenses. Net interest income was up 6% from last year, benefiting from growth in average loans of 5%. Noninterest income reflects positive trends in several of our core fee-based businesses where we have continued to make investments, such as consumer and commercial payments. Our market sensitive businesses were impacted this quarter by the industry-wide slowdown in capital markets activity. Expenses also reflect the lower level of market-related activity and our ongoing efforts to improve efficiency."

"Credit quality measures this quarter were impacted by credit migration in our oil and gas portfolio, reflecting current market conditions. Net charge-offs remained below our targeted range," added Mooney.

"We also continue to make progress on our First Niagara Financial Group acquisition, including reaching an important milestone of shareholders from both companies approving the merger," Mooney continued. "We are excited about the opportunity we have as we prepare to bring these two companies together, and we remain confident in our ability to deliver on our commitments and financial targets."

For earnings history and earnings-related data on KeyCorp (KEY) click here.

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