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Mar 31, 2021

KeyCorp Q1 2021 Earnings Report

Reported record first quarter net income driven by positive operating leverage and broad-based strength in fees.

Key Takeaways

KeyCorp reported a record first quarter with a net income of $591 million, or $.61 per diluted common share, marking a significant increase compared to the previous quarter and the same period last year. The results were driven by broad-based strength in fees and positive operating leverage.

Reported record first quarter revenue, up 19% from year-ago quarter, driven by broad-based strength in fees

Experienced strong credit quality with nonperforming loans and net charge-offs down from prior quarter

Returned capital to shareholders by repurchasing $135 million in common shares

Successfully launched Laurel Road for Doctors, expanding digital reach nationally for medical professionals

Total Revenue
$1.75B
Previous year: $1.47B
+19.4%
EPS
$0.61
Previous year: $0.12
+408.3%
Net Interest Margin
2.61%
Previous year: 3.01%
-13.3%
Cash Efficiency Ratio
60.3%
Previous year: 62.3%
-3.2%
Net Loan Charge-offs
0.46%
Gross Profit
$1.69B
Previous year: $1.41B
+19.7%
Cash and Equivalents
$938M
Previous year: $865M
+8.4%
Total Assets
$176B
Previous year: $156B
+12.8%

KeyCorp

KeyCorp

KeyCorp Revenue by Segment

Forward Guidance

While the earnings report does not contain explicit forward guidance, it highlights several positive trends and strategic initiatives that suggest a positive outlook for KeyCorp.

Positive Outlook

  • Strength in consumer mortgage
  • Growth from Laurel Road
  • Growth from consumer and commercial relationships
  • Heightened prepaid card activity
  • Strength in the debt and equity markets

Challenges Ahead

  • Lower reinvestment yields
  • Lower loan fees
  • Unfavorable balance sheet mix
  • Elevated levels of liquidity
  • Lower interest rates

Revenue & Expenses

Visualization of income flow from segment revenue to net income