KeyCorp Q2: 11% Revenue Decline, Normalization Of Deposits & More
Portfolio Pulse from Nabaparna Bhattacharya
KeyCorp (NYSE:KEY) reported Q2 revenues of $1.595 billion, down 11% YoY, missing estimates of $1.63 billion. EPS of $0.27 also missed the Street view of $0.31. Provision for credit losses jumped 271% to $167 million due to changes in the economic outlook and portfolio activity. Average deposits totaled $142.9 billion, a decrease of 3.1% YoY due to elevated inflation-related spending, changing client behavior due to higher interest rates, and normalization of pandemic-related deposits.
July 20, 2023 | 3:11 pm
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KeyCorp's Q2 results missed estimates with revenues down 11% YoY and a significant jump in credit losses. Average deposits also decreased 3.1% YoY.
KeyCorp's Q2 results missed estimates, which could negatively impact investor sentiment and potentially drive the stock price down in the short term. The significant increase in credit losses and decrease in average deposits could also be seen as negative indicators of the company's financial health.
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