KeyCorp reported lower quarterly results that reflected higher expenses and lower fee income.
The $95.1 billion-asset company said in a press release Thursday that its fourth-quarter profit fell 11% from a year earlier, to $220 million, or 26 cents a share.
Total revenue rose more than 1%, to $1.1 billion, as net interest income rose 3.7%. The net interest margin compressed by 7 basis points, to 2.87%.
Average total loans increased by more than 5%, to $59.6 billion, led by a 14% rise in commercial-and-industrial loans. Total home equity loans fell 2%.
The Cleveland company's noninterest income fell 1%, to $485 million, including declines in trust and investment services and fees from corporate-owned life insurance. A 9% spike in cards and payments income helped offset decreases elsewhere.
Noninterest expenses rose more than 4%, to $736 million, mainly because of a $20 million increase in personnel costs "related to investments made across the business," Key said in its release.