News Recap: KeyCorp (NYSE: KEY) Reported FIRST QUARTER 2022 NET INCOME OF $420 MILLION, OR $.45 PER DILUTED COMMON SHARE

On Thursday, Shares of KeyCorp (NYSE: KEY) lost -3.08% to $21.08. The stock opened its trade at $21.20 and after floating in a price range of $20.91 to $22.13, the stock grabbed the investor’s attention and traded 16,537,187 shares as compared to its average daily volume of 9.43M shares. The stock’s institutional ownership stands at 85.40%. KeyCorp (NYSE: KEY) announced net income from continuing operations attributable to Key common shareholders of $420 million, or $.45 per diluted common share for the first quarter of 2022. This compared to $601 million, or $.64 per diluted common share, for the fourth quarter of 2021 and $591 million, or $.61 per diluted common share, for the first quarter of 2021.

Compared to the first quarter of 2021, noninterest income decreased by $62 million. The decrease was primarily driven by other income, down $55 million, reflecting market related adjustments. Other drivers for the decrease include consumer mortgage income and cards and payments income, down $26 million and $25 million, respectively, reflecting lower gain on sale margins and lower levels of prepaid card activity. Partially offsetting the decrease was a $26 million increase in corporate services income, driven by higher derivatives trading income and an $18 million increase in service charges on deposit accounts.

Compared to the fourth quarter of 2021, noninterest income decreased by $233 million. The primary driver was investment banking and debt placement fees, which decreased $160 million, reflecting seasonality and slowing capital markets activity late in the quarter. Other income decreased $62 million, reflecting market related adjustments. Partially offsetting the decrease was a $17 million increase in corporate services income, driven by higher derivatives trading income.

Key’s noninterest expense was $1.1 billion for the first quarter of 2022, a decrease of $1 million from the year-ago period. Nonpersonnel expense decreased $7 million, reflecting a broad-based decline across several expense categories. Personnel expense increased $6 million, driven by higher salaries from merit increases and technology contract labor, partially offset by lower incentive compensation and employee benefits expense.

Compared to the fourth quarter of 2021, noninterest expense decreased $100 million. The decrease was primarily related to a $56 million decrease in nonpersonnel expense, reflecting lower professional fees as well as lower other expense. Additionally, personnel expense decreased $44 million, primarily driven by lower incentive compensation as a result of lower investment banking and debt placement fees.

Average loans were $103.8 billion for the first quarter of 2022, an increase of $3.0 billion compared to the first quarter of 2021. Consumer loans increased $2.3 billion, reflecting strength from Key’s consumer mortgage business and Laurel Road, partly offset by the sale of the indirect auto loan portfolio. Additionally, commercial loans increased by $701 million, reflecting strength in commercial mortgage real estate loans and core commercial and industrial loans, partially offset by a decline in PPP balances.

Compared to the fourth quarter of 2021, average loans increased by $4.4 billion. Commercial loans increased $2.9 billion, reflecting strength in commercial and industrial loans and commercial mortgage real estate loans, partially offset by a decline in PPP balances. Consumer loans increased $1.5 billion, driven by continued strength in Key’s consumer mortgage business and record Laurel Road originations.

KEY has a market value of $19.49B while its EPS was booked as $2.62 in the last 12 months. The stock has 923.05M shares outstanding. In the profitability analysis, the company has gross profit margin of 0 while net profit margin was 57.70%. Beta value of the company was 1.34; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.60.

About Brad Watson

This is Brad Watson and I like to introduce myself as an adviser, in the Financial Stocks Sector. I worked independently as a self motivator and with the financial institute as financial adviser to invest in the financial sector for over 7 years in the developing countries by introducing new phases and ways to improve in the Financial sector. I analyze trading strategy, individual stocks, asset classes, market sectors, and risk to reward parameters in order to provide valuable insight to the alphafinstocks.com community. I like to travel all over the globe to get new experience and provide by best services to the companies. As an adviser I like to work with new people to share and explore new ideas keeping in view minimizing the operating cost and giving the best final product through new Financial and minimizing the time of development.

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