KeyCorp Q3 revenue rises 8% to record, profit up 24%

KeyCorp

Tue 11:39

Overview
U.S. bank-based lender's Q3 revenue rose 8% yr/yr to record $2.04 bln
EPS increased 24% yr/yr to $0.51
Company repurchased $320 mln of common shares during the quarter

Outlook
KeyCorp aims to sustain return on tangible common equity of 15%+ by end of 2027
Company sees opportunities for organic growth across its franchise
KeyCorp says it is well positioned for a range of economic scenarios

Result Drivers
NET INTEREST INCOME - Co said increase was driven by lower deposit costs, reinvestment into higher-yielding assets, and growth in commercial and industrial loans
INVESTMENT BANKING FEES - Co said investment banking and debt placement fees rose 27% sequentially, contributing to noninterest income growth
CREDIT QUALITY IMPROVEMENT - Co said broad-based improvement in credit quality metrics, including lower net charge-offs and nonperforming assets, supported results

Company press release: ID:nPn1PdSq0a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$2.04 bln
 
Q3 EPS
 
$0.51
 
Q3 Net Interest Income
 
$1.31 bln
 
Q3 CET1 Capital Ratio
 
11.10%
 
Q3 Net Income continuing operations
 
$537 mln
 
Q3 Net Interest Margin
 
2.95%
 
Q3 Provision For Credit Losses 
 
$61 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for KeyCorp is $24.30, about 22% above its October 19 closing price of $19.92
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 19 - FNB Q3 net interest income rises on growth in earning assets and lower deposit costs

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)