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Jun 30, 2022

KeyCorp Q2 2022 Earnings Report

Reported net income of $504 million, or $.54 per diluted common share, with revenue up 6% from the prior quarter and strong loan growth.

Key Takeaways

KeyCorp reported a net income of $504 million for the second quarter of 2022, with earnings per diluted common share at $.54. The company saw positive operating leverage and a 6% revenue increase from the previous quarter, driven by net interest income growth and strong loan growth.

Positive operating leverage compared to the prior quarter and year-ago period.

Revenue up 6% from the prior quarter, driven by growth in net interest income.

Strong loan growth across commercial and consumer businesses.

Credit quality remains strong with net charge-offs to average loans of 16 basis points.

Total Revenue
$1.79B
Previous year: $1.77B
+1.1%
EPS
$0.54
Previous year: $0.72
-25.0%
Net Interest Margin
2.61%
Previous year: 2.52%
+3.6%
Cash Efficiency Ratio
59.5%
Net Loan Charge-offs
0.16%
Previous year: 0.09%
+77.8%
Gross Profit
$1.73B
Previous year: $1.72B
+1.0%
Cash and Equivalents
$678M
Previous year: $792M
-14.4%
Total Assets
$187B
Previous year: $181B
+3.3%

KeyCorp

KeyCorp

KeyCorp Revenue by Segment

Forward Guidance

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning.

Challenges Ahead

  • deterioration of commercial real estate market fundamentals
  • adverse changes in credit quality trends
  • declining asset prices
  • a worsening of the U.S. economy due to financial, political, or other shocks
  • the extensive regulation of the U.S. financial services industry

Revenue & Expenses

Visualization of income flow from segment revenue to net income