Skip to content
AnalystLens

KeyCorp 8-K Report, Financial Results (Apr 18, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 18, 2024
Period End
April 18, 2024
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. Leadership change8-K · Dec ’21Dec ’21
  3. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed April 18, 2024. Cited figures are marked; the original filing is the authoritative source.

KeyCorp reported first quarter 2024 net income from continuing operations attributable to Key common shareholders of $183 milliona, or $.20 per diluted common share, compared with $30 million, or $.03 per diluted share, in the fourth quarter of 2023 and $275 million, or $.30 per diluted share, in the first quarter of 2023.

The results include $22 millionb, or $.02 per diluted share after-tax, of charges related to the FDIC special assessment. Net interest income (TE) was $886 million, down 4.5% from the fourth quarter and 19.9% from a year earlier, with net interest margin at 2.02%. Noninterest income rose 6.1% from the fourth quarter to $647 million, led by investment banking and debt placement fees of $170 million.

Noninterest expense fell to $1,143 millionc from $1,372 million in the fourth quarter, which included $275 million of selected items in that period. Credit metrics were stable but drifted higher. Net loan charge-offs were $81 million, or 0.29% of average total loans, versus 0.26% in the fourth quarter and 0.15% a year earlier.

Nonperforming loans rose to $658 milliond, or 0.60% of period-end portfolio loans, from 0.51% at December 31, 2023. Average loans fell to $111.0 billion, reflecting planned balance sheet optimization, and average deposits were $142.9 billion. The Common Equity Tier 1 ratio, estimated at 10.3% and reflecting the CECL optional transition provision, increased from 10.0% at year-end 2023.

Book value per share was $12.84 at period end, and the company declared a quarterly dividend of $.205 per common share. The filing furnishes a press release, a supplemental information package for the conference call, and consolidated balance sheets and income statements as Exhibit 99.3, which is deemed filed. The supplemental slides outline 2024 guidance, including noninterest expense relatively stable within a range of plus or minus 2% versus 2023 and net interest income guidance tied to a 2.40% to 2.50% net interest margin target for the fourth quarter exit rate.

02—Key points

Key Highlights

  1. Net income from continuing operations attributable to Key common shareholders was $183 million, or $.20 per diluted share, versus $30 million ($.03) in 4Q23 and $275 million ($.30) in 1Q23.
  2. Noninterest income was $647 million, up 6.1% from the fourth quarter, with investment banking and debt placement fees of $170 million, which the company described as its best first quarter in its history.
  3. Net interest income (TE) of $886 million fell 19.9% year-over-year, and net interest margin declined to 2.02% from 2.47% a year earlier.
  4. Noninterest expense was $1,143 million, down from $1,372 million in 4Q23, which included selected items totaling $275 million.
  5. Net loan charge-offs were 0.29% of average total loans, and nonperforming loans rose to $658 million, or 0.60% of period-end portfolio loans, from 0.51% at year-end 2023.
  6. The Common Equity Tier 1 ratio was an estimated 10.3%, up from 10.0% at December 31, 2023, and reflects the CECL optional transition provision.
  7. Average loans declined to $111.0 billion and average deposits to $142.9 billion, reflecting planned balance sheet optimization and reduced wholesale and brokered funding.

03—Questions

Frequently Asked Questions

  1. How did KeyCorp perform in the first quarter of 2024?

    KeyCorp reported net income from continuing operations attributable to Key common shareholders of $183 million, or $.20 per diluted common share, compared with $30 million, or $.03, in the fourth quarter of 2023 and $275 million, or $.30, in the first quarter of 2023. The results include $22 million, or $.02 per diluted share after-tax, of FDIC special assessment charges.

  2. What drove the change in revenue?

    Net interest income (TE) was $886 million, down 4.5% from the fourth quarter, reflecting lower loan balances and higher funding costs. Noninterest income increased 6.1% to $647 million, driven by investment banking and debt placement fees, which rose to $170 million on strong commercial mortgage and debt capital markets activity.

  3. How are credit quality and capital trending?

    Net loan charge-offs were $81 million, or 0.29% of average total loans, up from 0.26% in the fourth quarter. Nonperforming loans increased to $658 million, or 0.60% of period-end portfolio loans. The estimated Common Equity Tier 1 ratio rose to 10.3% from 10.0% at year-end 2023.

  4. What did the filing say about the balance sheet?

    Average loans decreased to $111.0 billion, down $2.9 billion from the fourth quarter, reflecting planned balance sheet optimization. Average deposits totaled $142.9 billion, reflecting seasonal outflows and a decline in wholesale deposit balances. The company also cited reduced reliance on wholesale funding and higher-cost brokered deposits.

  5. What did KeyCorp say about its outlook?

    The accompanying supplemental slides state that 2024 noninterest expense is expected to be relatively stable, within plus or minus 2% of 2023, excluding selected items. The slides also reference a 2.40% to 2.50% net interest margin target and an expected $540 million total benefit in 2024 from maturing swaps and U.S. Treasury securities.

04—Continue

← View all 8-K filings