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Dec 31, 2020

KeyCorp Q4 2020 Earnings Report

Reported record fourth quarter net income and revenue.

Key Takeaways

KeyCorp reported a record fourth quarter net income of $549 million, or $0.56 per diluted common share. The company saw record revenue for both the fourth quarter and the full year. Strong credit quality and a robust capital position were also highlighted.

Record revenue for the fourth quarter and full year 2020

All-time high level of investment banking and debt placement fees for the fourth quarter and full year

Strong credit quality: net charge-offs to average loans of 53 basis points

Return on average tangible common equity of 16.6%, up 440 basis points from the prior quarter

Total Revenue
$1.85B
Previous year: $1.64B
+12.6%
EPS
$0.56
Previous year: $0.48
+16.7%
Net Interest Margin
2.7%
Previous year: 2.98%
-9.4%
Net Loan Charge-offs
0.53%
Previous year: 0.42%
+26.2%
Common Equity Tier 1
9.8%
Previous year: 9.43%
+3.9%
Gross Profit
$1.78B
Previous year: $1.58B
+13.1%
Cash and Equivalents
$1.09B
Previous year: $732M
+49.0%
Total Assets
$170B
Previous year: $145B
+17.5%

KeyCorp

KeyCorp

KeyCorp Revenue by Segment

Forward Guidance

The 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 reversal of the U.S. economic recovery 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