UPDATE: KeyCorp (KEY) Reports In-Line Q1 EPS

(Updated - April 16, 2015 6:34 AM EDT)

KeyCorp (NYSE: KEY) reported Q1 EPS of $0.26, in-line with the analyst estimate of $0.26. Revenue came in at $1.01 billion, versus the consensus of $1.03 billion.

FIRST QUARTER 2015 FINANCIAL RESULTS, from continuing operations

Compared to First Quarter of 2014

• Average loans up 5.1%, driven by a 11.5% growth in commercial, financial and agricultural loans
• Average deposits up 4.9%, due to growth in noninterest-bearing deposits
• Net interest income (taxable-equivalent) up $8 million, driven by higher loan balances partially offset by lower earning asset yields
• Noninterest income up $2 million, reflecting increases in trust and investment services income primarily from the third quarter 2014 acquisition of Pacific Crest Securities and various other line items, partially offset by declines in investment banking and debt placement fees and operating lease income and other leasing gains
• Noninterest expense up $5 million primarily due to the acquisition of Pacific Crest Securities and higher employee benefits expense
• Solid asset quality, with net loan charge-offs to average loans remaining well below our targeted range of 40-60 basis points
• Disciplined capital management, with the announcement of new planned capital actions including a share repurchase program of up to $725 million and, subject to approval by Key's Board of Directors, an increase of the quarterly common share dividend to $.075 per share

Compared to Fourth Quarter of 2014

• Average loans up 1.7%, primarily driven by an increase in commercial, financial and agricultural loans
• Average deposits declined slightly, reflecting lower certificates of deposit balances
• Net interest income (taxable-equivalent) down $11 million, primarily due to fewer days in the first quarter
• Noninterest income down $53 million, primarily due to lower investment banking and debt placement fees
• Noninterest expense down $35 million, reflecting lower personnel and marketing expense, as well as a decline in business services and professional fees
• Asset quality remains strong, with net loan charge-offs to average loans relatively flat to prior quarter and remaining well below the targeted range
• Disciplined capital management, repurchasing $208 million of common shares during the first quarter of 2015 and maintaining a solid capital position with Common Equity Tier 1 of 10.82%

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

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