From Financial Modeling Prep: 2025-01-21 10:56:00

KeyCorp (NYSE:KEY) reported mixed fourth-quarter results, beating earnings expectations but falling short on revenue. Shares dropped over 3% as investors digested the news. Adjusted earnings per share were $0.38, exceeding analyst forecasts of $0.33. However, revenue only reached $865 million, far below the projected $1.74 billion.

The financial institution saw a 10% increase in net interest income to $1.06 billion, driven by higher interest rates. KeyCorp also experienced growth in investment banking, payments, and wealth management segments, with fees rising 27% year-over-year.

Despite strong earnings, the bank recorded a net loss from continuing operations attributable to common shareholders of $279 million, mainly due to after-tax charges of $657 million related to the sale of securities. The Common Equity Tier 1 (CET1) ratio increased to 12%, demonstrating financial resilience.

Credit quality metrics improved, with net loan charge-offs decreasing by 26% from the previous quarter and criticized loans falling by 7%, indicating better loan performance. KeyCorp remains focused on maintaining its capital strength and enhancing overall financial stability.



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