KeyCorp Beats Q3 EPS Estimates, Provision For Credit Losses Down 26%
Portfolio Pulse from Lekha Gupta
KeyCorp (NYSE:KEY) reported Q3 FY23 revenues of $1.566 billion, down 17.0% Y/Y, in line with consensus. Net interest income was down 23.3% Y/Y to $923 million. Consumer Bank revenue fell 9.8% Y/Y and Commercial Bank was down 10% Y/Y. EPS was 29 cents, beating the street view of 27 cents. Provision for credit losses fell 25.7% Y/Y to $81 million. The CET 1 ratio exceeded its targeted capital range, expanding 50 basis points Q/Q to 9.8%. Average loan rose 2.8% Y/Y to $117.6 billion. Nonperforming loans stood at $455 million, accounting for 0.39% of period-end portfolio loans. Average deposits rose 0.4% Y/Y to $144.8 billion.
October 19, 2023 | 2:10 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
KeyCorp's Q3 FY23 revenues and net interest income were down Y/Y, but EPS beat estimates. Provision for credit losses fell, reflecting a more stable economic outlook. The CET 1 ratio exceeded its target, indicating a strong capital position. Average loan and deposits rose Y/Y.
KeyCorp's Q3 FY23 results were mixed with lower revenues and net interest income but EPS beat estimates, which could have a neutral impact on the stock. The decrease in provision for credit losses and the increase in CET 1 ratio indicate a more stable economic outlook and a strong capital position, which could be positive for the stock. However, the decrease in Consumer and Commercial Bank revenues could be a concern for investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100