-
Regional banks are doing their best to hold down expenses, compete for quality loans and generate more fee income, but until the Federal Reserve raises interest rates, their quarterly profits will remain sluggish, bankers and analysts say.
October 15 -
KeyCorp in Cleveland reported lower third-quarter earnings as revenue slumped and its net interest margin fell.
October 15 - WIB PH
Beth Mooney cares more about her legacy than she does about being the first female CEO at a top 20 U.S.-based bank. One of her primary goals is to make sure KeyCorp always does right by its customers.
September 22
KeyCorp in Cleveland beat earnings forecasts on the strength of increased fee income.
The $94 billion-asset company reported a profit of $246 million in the fourth quarter, up 7% from the same period in 2013, it announced Thursday. Earnings per share of 28 cents were 3 cents higher than the average estimate of analysts polled by Bloomberg.
Higher fee income more than made up for a slight dip in KeyCorp's revenue from loans.
Noninterest income of $490 million was 8% higher than a year ago and was driven by a 50% increase in fees from investment banking and debt placement, which totaled $126 million. Income from trust fees and company-owned life insurance also rose, offsetting a decline in revenue from mortgage servicing, deposit service charges and investments.
KeyCorp's net interest income fell $1 million, to $588 million, as its net interest margin tightened by 7 basis points, to 2.94%. Lower yields counteracted a 6% increase in average loans, to $56.5 billion, which was led by increased commercial and financial lending.
Cost cuts also helped KeyCorp's quarter, as noninterest expenses ticked down by 1%, to $704 million. The decline was due to lower pension costs and efficiency initiatives, partially offset by higher compensation costs, KeyCorp said.
