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Jun 30, 2024
KeyCorp Q2 2024 Earnings Report
KeyCorp reported a solid quarter with increased net interest income and client deposits, well-managed expenses, and a strong capital position.
Key Takeaways
KeyCorp announced net income from continuing operations attributable to Key common shareholders of $237 million, or $.25 per diluted common share, for the second quarter of 2024. The company saw growth in net interest income, client deposits, and progress in strategic fee-based initiatives. Expenses were well-managed, and net charge-offs remained low, contributing to a solid quarter.
Net income was $237 million, or $.25 per diluted common share.
Average deposits increased by $1.3 billion compared to the prior quarter and the second quarter of 2023, with client deposits up 5% year-over-year.
Expenses declined approximately 6% from the prior quarter and were stable versus the year-ago period.
Common Equity Tier 1 ratio rose 20 basis points to 10.5%.
Net charge-offs to average loans of 34 basis points indicating solid credit quality.
Revenue by Segment
Forward Guidance
KeyCorp is optimistic about future growth and profitability, focusing on strategic initiatives and expense management.
Positive Outlook
- Optimistic about loan growth in the second half of the year.
- Momentum in Wealth Management and Commercial Payments.
- Higher Investment Banking pipelines compared to prior periods.
- Well-managed expenses.
- Low net charge-offs.
Challenges Ahead
- Tepid loan demand.
- Lower loan balances from balance sheet optimization.
- Higher deposit costs due to the higher interest rate environment.
- Shift in funding mix from noninterest-bearing deposits to higher-cost deposits and borrowings.
- Decline in investment banking and debt placement fees compared to the previous quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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