KeyCorp (KEY) has reported an 1.33 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $229 million, or $0.19 a share in the quarter, compared with $226 million, or $0.26 a share for the same period last year.
Revenue during the quarter surged 42.99 percent to $1,490 million from $1,042 million in the previous year period. Net interest income for the quarter rose 55.81 percent over the prior year period to $938 million. Non-interest income for the quarter rose 27.42 percent over the last year period to $618 million.
KeyCorp has made provision of $66 million for loan losses during the quarter, up 46.67 percent from $45 million in the same period last year.
Net interest margin improved 25 basis points to 3.12 percent in the quarter from 2.87 percent in the last year period. Efficiency ratio for the quarter deteriorated to 76.20 percent from 66.40 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"Key’s fourth quarter results reflect continued momentum in our core businesses and the successful integration of the largest acquisition in our company’s history," said Chairman and Chief Executive Officer Beth Mooney. "Excluding merger-related charges, we generated positive operating leverage for the quarter, our return on tangible common equity was 12.5%, and our cash efficiency ratio declined to 63.3%, reflecting solid performance across Key’s businesses and early progress on merger synergies."
Liabilities outpace assets growth
Total assets stood at $136,453 million as on Dec. 31, 2016, up 43.43 percent compared with $95,133 million on Dec. 31, 2015. On the other hand, total liabilities stood at $121,213 million as on Dec. 31, 2016, up 43.66 percent from $84,374 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $85,180 million as on Dec. 31, 2016, up 44.17 percent compared with $59,080 million on Dec. 31, 2015. Deposits stood at $104,087 million as on Dec. 31, 2016, up 46.51 percent compared with $71,046 million on Dec. 31, 2015.
Loans to deposits ratio was 85.20 percent for the quarter, down from 87.80 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $32,825 million or 31.54 percent of total deposits on Dec. 31, 2016, compared with $26,097 million or 36.73 percent of total deposits on Dec. 31, 2015.
Investments stood at $35,627 million as on Dec. 31, 2016, up 49.17 percent or $11,743 million from year-ago. Shareholders equity stood at $15,240 million as on Dec. 31, 2016, up 41.65 percent or $4,481 million from year-ago.
Return on average assets moved down 28 basis points to 0.69 percent in the quarter from 0.97 percent in the last year period. At the same time, return on average equity decreased 229 basis points to 6.22 percent in the quarter from 8.51 percent in the last year period.
Nonperforming assets moved up 67.74 percent or $273 million to $676 million on Dec. 31, 2016 from $403 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.79 percent in the quarter, up from 0.67 percent in the last year period.
Book value per share was $12.58 for the quarter, up 0.56 percent or $0.07 compared to $12.51 for the same period last year.
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