Keycorp (KEY) has reported 72.34 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $324 million, or $0.27 a share in the quarter, compared with $188 million, or $0.22 a share for the same period last year.
Revenue during the quarter surged 51.37 percent to $1,432 million from $946 million in the previous year period. Net interest income for the quarter rose 51.99 percent over the prior year period to $918 million. Non-interest income for the quarter rose 33.87 percent over the last year period to $577 million.
Keycorp has made provision of $63 million for loan losses during the quarter, down 29.21 percent from $89 million in the same period last year.
Net interest margin improved 28 basis points to 3.11 percent in the quarter from 2.83 percent in the last year period. Efficiency ratio for the quarter improved to 65.80 percent from 66.60 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Key’s strong first quarter results reflect continued business momentum and our success in realizing value from our First Niagara acquisition," said chairman and chief executive officer Beth Mooney. "We generated positive operating leverage compared to both the prior year and previous quarter. Revenue relative to the year-ago period benefited from higher net interest income, positive momentum in our fee-based businesses and the addition of over one million newly acquired consumer and business clients. We have been successfully growing and expanding client relationships in both our Community Bank and Corporate Bank, and we remain on a path to deliver revenue synergies from our acquisition."
Liabilities outpace assets growthTotal assets stood at $134,476 million as on Mar. 31, 2017, up 36.66 percent compared with $98,402 million on Mar. 31, 2016. On the other hand, total liabilities stood at $119,498 million as on Mar. 31, 2017, up 36.83 percent from $87,331 million on Mar. 31, 2016.
Loans outpace deposit growthNet loans stood at $85,255 million as on Mar. 31, 2017, up 43.02 percent compared with $59,612 million on Mar. 31, 2016. Deposits stood at $103,982 million as on Mar. 31, 2017, up 41.70 percent compared with $73,382 million on Mar. 31, 2016. Loans to deposits ratio was 85.60 percent for the quarter, down from 85.70 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $32,028 million or 30.80 percent of total deposits on Mar. 31, 2017, compared with $25,697 million or 35.02 percent of total deposits on Mar. 31, 2016.
Investments stood at $33,330 million as on Mar. 31, 2017, up 22.46 percent or $6,114 million from year-ago. Shareholders equity stood at $14,978 million as on Mar. 31, 2017, up 35.29 percent or $3,907 million from year-ago.
Return on average assets moved up 19 basis points to 0.98 percent in the quarter from 0.79 percent in the last year period. At the same time, return on average equity increased 186 basis points to 8.76 percent in the quarter from 6.90 percent in the last year period.
Credit quality improvesKeycorp recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 9.97 percent or $69 million to $623 million on Mar. 31, 2017 from $692 million on Mar. 31, 2016. Nonperforming assets to total loans was 0.67 percent in the quarter, down from 1.12 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.72 percent in the quarter, down from 1.14 percent in the last year period. Book value per share was $12.71 for the quarter, down 0.63 percent or $0.08 compared to $12.79 for the same period last year.
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