Thursday 20th of January 2022 04:00:59 AM
KeyCorp Q4 earnings beat as investment banking, debt placement boosts revenue
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- KeyCorp (NYSE:KEY) Q4 earnings beat the consensus as revenue increases reflected a hefty rise in investment banking and debt placement fees.
- Q4 EPS of $0.64 flies past the average analyst estimate of $0.56 and compares with $0.65 in Q3 2021 and $0.56 in Q4 2020.
- Q4 net interest income of $1.04B vs. $1.03B in Q3 and $1.04B in the year-ago quarter.
- Q4 noninterest revenue of $909M rose 14% Q/Q and 13% Y/Y, bolstered by a 37% Q/Q increase in investment banking and debt placement fees to $323M; trust and investment services income of $135M rose 4.7% Q/Q and 9.8% Y/Y.
- Preprovision net revenue from continuing operations increased to $777M, a record for the company, from $710M in Q3 and $717M in Q4 2020.
- Total revenue of $1.95B, exceeds the $1.80B consensus estimate and increased 6.9% Q/Q and 5.5% Y/Y.
- Q4 total noninterest expense of $1.17B increased 5.2% Q/Q and 3.7% Y/Y.
- Personnel expense of $674M rose 5.3% from Q3 and 2.0% from Q4 2020; non-personnel expense of $496M increased 5.1% from Q3, driven by higher business services and professional fees.
- Average loans of $99.4B fell from $100.1B in Q3 and $101.7B in Q4 2020, reflecting the sale of its indirect auto loan portfolio, which reduced average loans by $2.7B from Q3.
- Average deposits of $151.0B increased 2.8% from Q3 and 11% Y/Y.
- Provision for credit losses was $4M vs. a net benefit of $107M in Q3 and cost of $20M in Q4 2020; net loan charge-offs in Q4 2021 was 0.8% of average total loans vs. 0.11% in Q3 2021 and 0.53% in Q4 2020.
- Conference call at 8:00 AM ET.
- Earlier, KeyCorp (KEY) GAAP EPS of $0.64 beats by $0.08