- KeyCorp 1Q net interest income FTE was $886 million, matching the estimates.
- The NIM on taxable-equivalent basis stood at 2.02%, slightly lower than the estimated 2.1%.
- EPS from continuing operations was 20c, which was 1c lower than the estimated 21c.
- Total revenue amounted to $1.53 billion, surpassing the estimate of $1.52 billion.
- Total deposits were reported at $142.88 billion against the estimated $143.5 billion.
- Total loans reported were $111.03 billion, just short of the estimated $111.24 billion.
- Investment banking and debt placement fees exceeded expectations at $170 million, with estimates at $148.2 million.
- Non-interest income was $647 million, beating the estimate of $628.9 million.
- Provision for credit losses was $101 million, higher than the initial estimate of $97.1 million.
- Non-interest expenses were slightly higher than expected at $1.14 billion, against the estimated $1.11 billion.
- Net charge-offs came in lower than expected at $81 million, compared to the estimated $86.8 million.
- The return on average tangible common equity was reported at 7.87%, lower than the estimated 10.1%.
- The efficiency ratio for the period was 74%, slightly above the estimate of 73.8%.
- Common equity Tier 1 ratio was reported at 10.3%, slightly higher than the estimated 10.2%.
- Out of the 24 analyst ratings, 15 rated it as ‘buy’, 8 rated it ‘hold’ and 1 advised to ‘sell’.
A look at Keycorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
KeyCorp, a financial services holding company, is positioned favorably for long-term success based on the Smartkarma Smart Scores. With a strong Dividend score of 5, KeyCorp is expected to provide excellent returns to its shareholders through consistent dividend payments. Combined with a Value score of 4, investors can find KeyCorp’s stock to be attractively priced relative to its earnings and potential growth prospects. While the Growth score of 3 signals moderate growth potential, the company’s Momentum score of 4 indicates a positive trend in its stock performance over time. However, KeyCorp will need to focus on building resilience, which currently scores a 2, to withstand market challenges and economic uncertainties.
KeyCorp’s diversified portfolio of retail and commercial banking services, commercial leasing, investment management, consumer finance, and investment banking products positions it well to serve a wide range of clients, including individuals, corporations, and institutions. By leveraging its strong Dividend and Value scores, KeyCorp can continue to attract investors seeking both income and value appreciation in the long run while working on enhancing its Growth, Resilience, and Momentum scores to further solidify its market position and navigate potential challenges effectively.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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