In This Article:
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EPS Loss: Reported a fourth quarter EPS loss of $0.28 per share; adjusted EPS was a positive $0.38.
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Revenue Growth: Adjusted revenue up 11% sequentially and 16% year-over-year.
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Net Interest Income: Increased by $54 million in 2024, with an expected additional $270 million in 2025.
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Client Deposit Growth: Up 1.5% sequentially and 4% year-over-year.
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Credit Performance: Criticized loans down $500 million; net charge-offs down $40 million sequentially.
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Assets Under Management: Reached a record of approximately $61.4 billion.
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Investment Banking Fees: Fourth quarter fees were $221 million; full year fees were the second strongest in history.
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Commercial Payments Revenue: Grew mid-single digits year-over-year for the fourth quarter.
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Average Loans: Declined 1.4% sequentially, ending the quarter at just over $104 billion.
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Average Deposits: Increased 1.3% sequentially to nearly $150 billion.
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Net Interest Margin: Increased 24 basis points from the prior quarter.
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Noninterest Income: Adjusted noninterest income up 18% year-over-year.
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Noninterest Expenses: $1.2 billion, up 12% both sequentially and year-over-year.
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CET1 Ratio: Increased to 12% as of December 31.
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2025 Outlook: Net interest income expected to be up roughly 20%; expenses to grow 3% to 5%.
Release Date: January 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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KeyCorp (NYSE:KEY) reported a positive adjusted EPS of $0.38 after accounting for strategic securities repositioning.
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Revenue increased by 11% sequentially and 16% year-over-year, driven by strong net interest income and fee growth.
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Client deposit growth was strong, with a 1.5% sequential increase and a 4% year-over-year increase.
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Credit performance improved, with criticized loans down by $500 million and net charge-offs reduced by $40 million sequentially.
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Investment Banking results were robust, with fourth-quarter fees reaching $221 million, marking the second strongest year in the company's history.
Negative Points
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KeyCorp (NYSE:KEY) reported an EPS loss of $0.28 per share before adjustments.
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Loan demand remained soft, contributing to a decline in average loans by 1.4% sequentially.
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Noninterest expenses increased by 12% year-over-year, driven by higher compensation and investment spend.
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Net charge-offs were at the high end of the original guidance range, partly due to a lower loan denominator.
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The company faced elevated expenses of approximately $50 million in the fourth quarter, which are not expected to recur.