KeyCorp Reports Q1 2024 Net Income of $183 Million

KeyCorp (NYSE: KEY) has reported its first-quarter 2024 financial results, showcasing a net income from continuing operations attributable to Key common shareholders of $183 million, which translates to $0.20 per diluted common share. This represents a significant increase from the fourth quarter of 2023, where the net income was $30 million, or $0.03 per diluted common share. In comparison to the first quarter of 2023, the net income has decreased from $275 million, or $0.30 per diluted common share.

Notably, the first quarter of 2024 includes after-tax charges of $22 million, or $0.02 per diluted common share, related to the FDIC special assessment. This is in contrast to the fourth quarter of 2023, which included after-tax charges related to the FDIC special assessment, efficiency-related expenses, and a pension settlement charge.

KeyCorp's noninterest income has shown a significant uptick, rising by 6% year-over-year and also sequentially (linked quarter), driven by the strength in investment banking and debt placement fees. The company has also made strides in strengthening its balance sheet by reducing reliance on wholesale funding and higher-cost brokered deposits. The common equity tier 1 ratio has seen a noteworthy increase of 120 basis points year-over-year, reaching 10.3%.

Credit costs for KeyCorp remain low, with net loan charge-offs to average loans standing at 29 basis points. Additionally, customer deposits were up by 2% year-over-year, and the number of relationship households and commercial clients grew by 2.5% and 6%, respectively.

KeyCorp's Chairman and CEO, Chris Gorman, expressed satisfaction with the company's performance, highlighting the record-setting first quarter for investment banking, controlled expenses, and steady net interest income. Gorman also emphasized the company's focus on fee-based businesses and its strategic partnership to drive growth in the commercial platform.

Today the company's shares have moved -0.9% to a price of $14.3. For the full picture, make sure to review KeyCorp's 8-K report.

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