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KeyCorp Continues Earnings Momentum, Reports Third Quarter 2011 and Year-to-Date Net Income of $229 Million and $656 Million

CLEVELAND, Oct. 20, 2011 /PRNewswire/ --
 

  • Net income from continuing operations of $229 million, or $.24 per common share, for the third quarter of 2011
  • Year-to-date net income from continuing operations of $656 million, or $.71 per common share
  • Net interest margin at 3.09% for the third quarter of 2011
  • Nonperforming loans declined to $788 million, or 1.64% of period-end loans, and nonperforming assets decreased to $914 million
  • Loan loss reserve at 2.35% of total period-end loans and 144% of nonperforming loans at September 30, 2011
  • Third quarter of 2011 net charge-offs of $109 million, or .90% of average loan balances
  • Tier 1 common equity and Tier 1 risk-based capital ratios estimated at 11.34% and 13.55%, respectively, at September 30, 2011

KeyCorp (NYSE: KEY) today announced third quarter net income from continuing operations attributable to Key common shareholders of $229 million, or $.24 per common share.  Key's third quarter 2011 results compare to net income from continuing operations attributable to Key common shareholders of $163 million, or $.19 per common share, for the third quarter of 2010.  The results for the third quarter of 2011 reflect an improvement in noninterest expense and lower credit costs from the same period one year ago.  Third quarter 2011 net income attributable to Key common shareholders was $212 million compared to net income attributable to Key common shareholders of $178 million for the same quarter one year ago.  

For the nine-month period ended September 30, 2011, net income from continuing operations attributable to Key common shareholders was $656 million, or $.71 per common share, compared to net income from continuing operations attributable to Key common shareholders of $121 million, or $.14 per common share, for the same period one year ago.  Net income attributable to Key common shareholders for the nine-month period ended September 30, 2011, was $619 million compared to net income attributable to Key common shareholders of $111 million for the same period one year ago.

During the third quarter of 2011, the Company continued to benefit from improved asset quality.  Nonperforming loans decreased by $584 million and nonperforming assets declined by $887 million from the year-ago quarter to $788 million and $914 million, respectively.  Net charge-offs declined to $109 million, or .90% of average loan balances for the third quarter of 2011, compared to $357 million, or 2.69% of average loan balances for the same period one year ago.

Chairman and Chief Executive Officer Beth Mooney stated, "Our financial results demonstrate consistent positive momentum for Key as we continue executing our relationship strategy, improving credit quality and maintaining disciplined expense control.  We are also pleased that our commercial, financial and agricultural loan portfolio grew for the second consecutive quarter.  Our clients continue to benefit from our ability to work together across business lines to deliver value by combining local knowledge and service with specialized industry expertise and advisory capabilities."

Mooney continued:  "We look forward to continuing our support of small- and medium-sized businesses and have committed $5 billion in lending capital over the next three years to foster growth and expansion in this important segment."

At September 30, 2011, Key's estimated Tier 1 common equity and Tier 1 risk-based capital ratios were 11.34% and 13.55%, compared to 11.14% and 13.93%, respectively, at June 30, 2011.

The Company originated approximately $9.7 billion in new or renewed lending commitments to consumers and businesses during the quarter.    

The following table shows Key's continuing and discontinued operating results for the comparative quarters and for the nine-month periods ended September 30, 2011 and 2010. Read more...
 

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