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KeyCorp 8-K Report, Financial Results (Jan 21, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 21, 2025
Period End
January 21, 2025
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 January 21, 2025. Cited figures are marked; the original filing is the authoritative source.

KeyCorp reported a fourth-quarter 2024 net loss from continuing operations attributable to Key common shareholders of $(279) million, or $(.28) per diluted common share, compared with income of $30 milliona, or $.03 per diluted share, in the fourth quarter of 2023.

Excluding selected items, adjusted net income was $378 millionb, or $.38 per diluted share. The results were driven by a $915 million loss on the sale of securities tied to a strategic repositioning of the available-for-sale portfolio, which was completed in the quarter. Total revenue (TE) was $865 million, net interest income (TE) rose 10.1% from the third quarter to $1.061 billion, and the net interest margin was 2.41%.

Credit and capital metrics were mixed but stable. Net loan charge-offs were $114 millionc, or 0.43% of average total loans, down from $154 million in the third quarter. Nonperforming loans rose to $758 million, or 0.73% of period-end portfolio loans.

The estimated Common Equity Tier 1 ratio was 12.0% at December 31, 2024, reflecting the election of the CECL optional transition provision, and the company stated it remained well-capitalized. Average loans fell 8.1% year over year to $104.7 billiond, while average deposits rose 3.2% to $149.7 billion. Investment banking and debt placement fees increased to $221 million.

The filing also discloses that Scotiabank's minority investment in Key was completed during the quarter after regulatory approval, which increased common shares outstanding to 1,106,786 thousand at period end. The company declared a quarterly dividend of $.205 per common share for the first quarter of 2025. The accompanying investor presentation outlines 2025 guidance, including expected full-year net interest income of about $3.8 billion and adjusted noninterest expense of $4.52 billion for 2024 as the baseline.

02—Key points

Key Highlights

  1. Q4 2024 net loss from continuing operations to common shareholders of $(279) million, or $(.28) per diluted share, versus income of $30 million, or $.03, in Q4 2023.
  2. Adjusted net income of $378 million, or $.38 per diluted share, excluding selected items totaling $657 million after tax, primarily a $915 million pretax loss on sale of securities.
  3. Total revenue (TE) of $865 million; net interest income (TE) of $1.061 billion, up 10.1% from Q3 2024; net interest margin of 2.41%.
  4. Net loan charge-offs of $114 million (0.43% of average loans), down from $154 million in Q3 2024; provision for credit losses of $39 million.
  5. Nonperforming loans rose to $758 million (0.73% of period-end portfolio loans) from $574 million a year earlier.
  6. Estimated Common Equity Tier 1 ratio of 12.0% at December 31, 2024, reflecting the CECL optional transition provision; tangible common equity ratio of 7.0%.
  7. Declared a $.205 per common share dividend payable in Q1 2025; Scotiabank's minority investment in Key was completed in the quarter.

03—Questions

Frequently Asked Questions

  1. Why did KeyCorp report a net loss in the fourth quarter of 2024?

    The loss was driven by a $915 million pretax loss on the sale of securities as part of a strategic repositioning of the available-for-sale portfolio. The filing reports that excluding selected items, adjusted net income was $378 million, or $.38 per diluted share.

  2. How did core lending and deposit trends change?

    Average loans were $104.7 billion, down $9.2 billion from the fourth quarter of 2023 and down 1.4% from the third quarter, reflecting tepid client loan demand. Average deposits were $149.7 billion, up $4.7 billion year over year and up $2.0 billion from the third quarter.

  3. What is the status of credit quality?

    Net loan charge-offs fell to $114 million (0.43% of average total loans) from $154 million in the third quarter. However, nonperforming loans rose to $758 million from $574 million a year earlier. The allowance for credit losses was $1.7 billion, or 1.63% of period-end loans.

  4. How strong is KeyCorp's capital position?

    The estimated Common Equity Tier 1 ratio was 12.0% at December 31, 2024, up from 10.8% at September 30, 2024, and the company stated its ratios remained above all well-capitalized benchmarks. The filing notes that on a fully phased-in CECL basis, the CET1 ratio would be reduced by five basis points.

  5. What did the filing say about future shareholder returns and 2025 outlook?

    KeyCorp declared a $.205 per common share dividend payable in the first quarter of 2025. The accompanying presentation outlines FY2025 guidance on an operating basis, including net interest income (TE) growth of about 20% from the $3.8 billion 2024 baseline, and states that the company is well positioned for sound, profitable growth in 2025 and beyond.

04—Continue

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