KeyCorp (NYSE: KEY) reported Q3 EPS of $0.41, $0.04 better than the analyst estimate of $0.37.

• Revenue up 3% from year-ago period, reflecting continued momentum in consumer and commercial businesses
• Strong balance sheet with Common Equity Tier 1 Capital of 9.5%, up 40 basis points from prior quarter
• Disciplined risk management and underwriting drives credit quality: net charge-offs to average loans of 49 basis points Double-digit growth in loans and deposits compared to prior year
• Noninterest income up 5% from the prior year, driven by growth in payments business and consumer mortgage

Key's third quarter results reflect continued momentum in our businesses, strong credit discipline and investments we have made to strengthen our franchise. Our success also demonstrates the resiliency and dedication of our team in serving our clients and supporting our communities.

In the third quarter, revenue increased 3% from the prior year, driven by strong balance sheet growth and higher fee income. Average loans and deposits were both up double-digits from the same period last year, reflecting the impact from the Paycheck Protection Program, as well as strong loan originations from consumer mortgage and Laurel Road. Noninterest income benefitted from higher cards and payments activity and growth in consumer mortgage fees.

During the quarter, expense levels reflected higher variable costs from production-related incentives and cards and payments activity, as well as elevated pandemic-related costs associated with keeping our teammates and clients safe. Through our continuous improvement efforts, we are maintaining our focus on expenses – improving our efficiency while continuing to invest for growth, including our digital capabilities across our franchise.

Importantly, we remain committed to strong risk management practices and being disciplined with our capital. Our Common Equity Tier 1 ratio ended the quarter at 9.5%, up 40 basis points from the prior quarter, and at the upper end of our targeted range.

Despite the challenges presented by the pandemic, low interest rates and economic uncertainty, we are confident that Key is well-positioned to navigate the current environment while concurrently assisting in the recovery phase and investing in our bright future.

- Chris Gorman, Chairman and CEO

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