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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 in Cleveland reported lower third-quarter earnings as revenue slumped and its net interest margin fell.
The $89.8 billion-asset company said Wednesday that it earned $204 million, down roughly 23% from a year earlier. Earnings per share were 24 cents, down from 29 cents year over year.
KeyCorp reported total revenue of $998 million, down roughly 4% from a year earlier.
Net interest income fell 0.5%, to $581 million, from a year earlier largely because of lower earning-asset yields. The net interest margin totaled 2.96%, down 15 basis points from a year earlier and was affected by higher levels of excess liquidity as commercial deposits grew.
Noninterest income declined roughly 9%, to $417 million, as operating lease income and other leasing gains fell more than 60%, to $17 million. Net gains from principal investing totaled $9 million, down about 47% year over year.
Total average loans increased almost 5%, to $55.8 billion, primarily from gains in the commercial, financial and agricultural portfolio, which increased by roughly 11%. Consumer loans remained relatively flat.
Total noninterest expenses fell almost 2%, to $704 million, because of lower restructuring- and pension-related charges. KeyCorp lowered expenses even though it absorbed costs associated with the recent acquisition of Pacific Crest Securities, a technology-focused investment bank and capital markets firm.
