KeyCorp (KEY) Misses Q1 EPS by 3c, Revenues Miss

KeyCorp (NYSE: KEY) reported Q1 EPS of $0.38, $0.03 worse than the analyst estimate of $0.41. Revenue for the quarter came in at $1.52 billion versus the consensus estimate of $1.6 billion.

"Our results this quarter reflect solid underlying trends in our core businesses, strong expense management and continued strength in credit quality. Revenue benefitted from continued balance sheet growth, including an 8% increase in commercial and industrial loans from the same period last year, and a 5% increase in average deposits. Fee income this quarter declined, primarily due to lower capital markets income, driven by both seasonality and the timing in closing certain transactions. We continued to execute against our continuous improvement plans across the company, driving a meaningful reduction in our expenses, down 7%, excluding notable items, from the year-ago period. Importantly, we remain confident in reaching our targeted cash efficiency ratio of 54% to 56% in the second half of 2019.

We have also continued to use our strong capital position to support organic growth and return capital to our shareholders. This morning, we announced our capital plans, beginning in third quarter of 2019. These plans include a 9% increase in our common share dividend, from $.17 to $.185, in the third quarter of this year, subject to approval of our Board of Directors. We plan to repurchase up to $1 billion in common shares over the same period.

Additionally, we completed our acquisition of Laurel Road Bank's digital business earlier this month. Laurel Road's platform enhances our digital capabilities and aligns well with our relationship strategy, to build broad-based relationships with targeted clients and prospects. We are excited to have found a firm that so clearly matches our business and cultural approach to serving clients."

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

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