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Sep 30, 2024

KeyCorp Q3 2024 Earnings Report

Reported a net loss due to charges related to the loss on the sale of securities, while underlying results showed solid momentum in client relationships, deposits, and business-related fees.

Key Takeaways

KeyCorp reported a net loss of $(447) million for Q3 2024, or $(0.47) per diluted common share, but an adjusted net income of $290 million, or $0.30 per diluted common share. The results were impacted by a $737 million after-tax charge related to the loss on the sale of securities. Net interest income increased by 7% quarter-over-quarter, and average deposits were up 2.5%.

Received initial $821 million tranche of strategic minority investment from Scotiabank.

Common Equity Tier 1 ratio of 10.8% and Tangible Common Equity ratio of 6.2%.

Net interest income up 7% quarter-over-quarter, with average deposits up 2.5%.

Continued strong fee momentum across investment banking, commercial mortgage servicing, commercial payments, and wealth management.

Total Revenue
$1.61B
Previous year: $1.57B
+3.0%
EPS
$0.3
Previous year: $0.29
+3.4%
Net Loan Charge-offs
0.58%
Common Equity Tier 1
10.8%
Previous year: 9.8%
+10.2%
Gross Profit
$642M
Previous year: $1.52B
-57.8%
Cash and Equivalents
$1.28B
Previous year: $766M
+66.6%
Free Cash Flow
-$1.04B
Total Assets
$190B
Previous year: $188B
+1.0%

KeyCorp

KeyCorp

KeyCorp Revenue by Segment

Forward Guidance

KeyCorp anticipates further net interest income tailwinds and a stable-to-improved credit outlook.

Positive Outlook

  • Strong pipelines in investment banking and debt placement.
  • Continued momentum in wealth management and commercial payments.
  • Expected further net interest income tailwinds in the quarters ahead.
  • Stable-to-improved credit outlook.
  • Completion of the final tranche of the equity financing in the first quarter of 2025, subject to Fed approval.

Revenue & Expenses

Visualization of income flow from segment revenue to net income