KeyCorp.’s (KEY - Analyst Report) third-quarter earnings from continuing operations came in at 23 cents per share, lagging the Zacks Consensus Estimate of 26 cents. This marks a break after six consecutive earnings beat. Moreover, the figure was down 14.8% from the year-ago figure of 27 cents.
Results were mainly influenced by a decline in revenues, partially offset by lower expenses and a fall in provision for loan and lease losses. Continued improvement in asset quality, growth in loan and deposit balances and strong capital ratios were other highlights of the quarter.
Net income from continuing operations attributable to common shareholders came in at $197 million, down 14% year over year.
Behind the Headlines
KeyCorp’s total revenue came in at $998 million, down 4.3% from the prior-year quarter. Further, it was lower than the Zacks Consensus Estimate of $1.04 billion.
Tax-equivalent net interest income fell 0.5% from the prior-year quarter to $581 million. Likewise, net interest margin (NIM) from continuing operations decreased 15 basis points (bps) year over year to 2.96%. The decline in both net interest income (NII) and NIM was mainly due to lower earning asset yields.
