KeyCorp in Cleveland posted higher third-quarter profits as revenue soared on growth in fee income from its investment banking business.
The $95.4 billion-asset company reported Thursday that it had earned $213 million, up 18% from a year earlier. Earnings per share totaled 26 cents, compared with 23 cents a share a year earlier.
Revenue increased 7%, to $1.1 billion, primarily from an almost 13% jump in noninterest income. KeyCorp’s fee income, which totaled $470 million, was helped by the acquisition of Pacific Crest Securities, a technology-focused investment bank, in September 2014. Investment banking and debt placement fees rose almost 24%, to $109 million. Corporate services income increased more than 35%, to $57 million, while mortgage servicing fees climbed 22%, to $11 million.
Net interest income rose roughly 3%, to $598 million. Average loans totaled $59.3 billion, up 6% year over year. Commercial loans surged almost 15%, to $30.4 billion, while total home equity loans declined more than 1%, to $10.5 billion.
Noninterest expense totaled $724 million, up more than 2% from a year earlier, mostly from increased personnel costs from higher performance-based compensation related to a strong capital markets business and the acquisition of Pacific Crest, the company said.