Skip to content
AnalystLens

KeyCorp Annual Report, Year Ended Dec 31, 2014

Filing Date
Filed March 2, 2015
Period End
December 31, 2014
In the record · 2016–202610-K1110-Q348-K141

KEY filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 141 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Aug ’16Aug ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K filed March 2, 2015. Cited figures are marked; the original filing is the authoritative source.

KeyCorp reported net income attributable to Key of $900 milliona for 2014, or $.99 per common share on a diluted basis, with income from continuing operations attributable to Key common shareholders of $917 million, or $1.04 per diluted share.

Taxable-equivalent net interest income was $2.3 billionb and the net interest margin was 2.97%, down from 3.12% in 2013 due to lower earning asset yields. Noninterest income rose to $1.8 billion, led by a record year for investment banking and debt placement fees of $397 million, while noninterest expense fell to $2.8 billion. Consolidated total assets were $93.8 billion at December 31, 2014, and the company is a bank holding company whose principal subsidiary is KeyBank National Association.

Asset quality improved through 2014. The provision for loan and lease losses declined to $59 millionc from $130 million, net loan charge-offs fell to .20% of average loans, and nonperforming assets decreased. The allowance for loan and lease losses was $794 million, or 1.38% of period-end loans.

The Common Equity Tier 1 ratio under the Regulatory Capital Rules was estimated at 10.7%, and the Tier 1 common equity ratio was 11.17%. Capital return remained a priority. Key repurchased $496 milliond of common shares during 2014 and increased its quarterly dividend 18% to $.065 per share, bringing the 2014 annual dividend to $.25.

The filing states that the Federal Reserve is still reviewing the 2015 capital plan under CCAR, and that Key cannot implement capital actions beyond the first quarter of 2015 until the review is complete. Management expects 2015 net interest income growth in the low- to mid-single-digit percentage range and mid-single-digit average loan growth.

02—Key points

Key Highlights

  1. Net income attributable to Key was $900 million in 2014, compared with $910 million in 2013; diluted EPS was $.99 versus $.97.
  2. Income from continuing operations attributable to Key common shareholders was $917 million, or $1.04 per diluted share, up from $847 million, or $.93 in 2013.
  3. Net interest margin fell to 2.97% from 3.12%, reflecting lower earning asset yields that were partly offset by loan growth.
  4. Investment banking and debt placement fees reached a record $397 million, up $64 million, and helped lift noninterest income 1.8% to $1.8 billion.
  5. Net loan charge-offs declined to .20% of average loans, the provision fell to $59 million, and nonperforming assets decreased 17.9%.
  6. Key repurchased $496 million of common shares in 2014 and raised its quarterly dividend 18% to $.065 per share.
  7. The Common Equity Tier 1 ratio under the Regulatory Capital Rules was estimated at 10.7%, and the Tier 1 common equity ratio was 11.17% at year-end 2014.

03—One dollar

04—Financials

Financial Highlights

Figures from 10-KFY2014filed March 2, 2015
Revenue$4.11BNet Income$900.00M21.9% Net MarginEPS (Diluted)$0.99Total Assets$93.82BFree Cash Flow$1.32B

Financial Statements

FY2014 against FY2013

Line itemFY2014FY2013Change
Revenue$4.11B——
Operating Income$939.00M$870.00M+7.9%
Interest Expense$261.00M$295.00M−11.5%
Net Income$900.00M$910.00M−1.1%
EPS (Basic)$1.01$0.98+3.1%
EPS (Diluted)$0.99$0.97+2.1%
Shares Outstanding (Basic)871.46M906.52M−3.9%
Shares Outstanding (Diluted)878.20M912.57M−3.8%

05—Questions

Frequently Asked Questions

  1. How profitable was KeyCorp in 2014?

    Net income attributable to Key was $900 million, or $.99 per diluted common share. Income from continuing operations attributable to Key common shareholders was $917 million, or $1.04 per diluted share, compared with $847 million, or $.93, in 2013.

  2. Why did the net interest margin decline?

    The filing attributes the decline in net interest margin from 3.12% to 2.97% to lower earning asset yields. Loan growth, the maturity of higher-rate certificates of deposit, and a more favorable mix of lower-cost deposits partly offset the decline.

  3. How is KeyCorp managing credit risk?

    Credit quality improved in 2014. Net loan charge-offs were $113 million, or .20% of average loans, and the allowance for loan and lease losses was $794 million, or 1.38% of period-end loans. Nonperforming loans were $418 million, or .73% of period-end loans.

  4. What did KeyCorp return to shareholders?

    KeyCorp repurchased $496 million of common shares during 2014 and paid an annual dividend of $.25 per common share, after raising the quarterly rate to $.065 from $.055. The filing states that the Federal Reserve is still reviewing the 2015 capital plan under CCAR.

  5. What are management's 2015 expectations?

    Management expects net interest income to grow in the low- to mid-single-digit percentage range compared with 2014, with net interest margin stable to slightly higher later in 2015. It expects mid-single-digit growth in noninterest income and average loan growth in the mid-single-digit range, and expects noninterest expense to be relatively stable.

06—Continue

← View all 10-K filings