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KeyCorp (KEY) in Cleveland has agreed to buy Pacific Crest Securities, a technology-focused investment bank and capital markets firm.
July 17
KeyCorp (KEY) in Cleveland reported higher quarterly earnings after a jump in investment banking and debt placement fees and lower credit costs.
The $91.8 billion-asset company said in a press release Thursday that its second-quarter net income rose roughly 8% from a year earlier, to $214 million. Earnings per share of 24 cents fell short of the average estimate of analysts polled by Bloomberg by 2 cents.
Revenue increased almost 2%, to roughly $1 billion. Noninterest income climbed 6%, to $455 million, as investment banking and debt placement fees surged almost 18%, to $99 million. Operating lease income and other leasing gains also increased 59%, to $35 million.
KeyCorp hopes to further strengthen its corporate banking activities with the
Net interest income fell roughly 1%, to $579 million, primarily because of lower asset yields and lower loan fees caused by an early termination of a leveraged lease.
Average total loans rose more than 5%, to $55.6 billion. Commercial, financial and agricultural loans rose more than 12%, to $26.4 billion, while home equity loans increased more than 2%, to $10.6 billion. The loan-loss provision fell 64%, to $10 million.
Noninterest expense declined about 3%, to $689 million, because of lower costs tied to salaries and employee benefits.
