KeyCorp Posts Sluggish Q4 Results, CEO Says FY23 Balance Sheet Optimization Goal Exceeded
Portfolio Pulse from Lekha Gupta
KeyCorp (NYSE:KEY) reported Q4 FY23 earnings with revenues down 19% Y/Y at $1.538 billion, slightly above consensus. Net interest income decreased 24.4% Y/Y to $928 million, and net interest margin dropped to 2.07%. Consumer and Commercial Bank revenues also fell. However, provision for credit losses decreased, and the CET1 ratio improved to 10.0%. Adjusted EPS of $0.25 beat estimates. Average loans and deposits declined. The company declared a dividend and the CEO highlighted balance sheet optimization success. KEY shares dropped 2.89% in premarket trading.
January 18, 2024 | 1:53 pm
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KeyCorp's Q4 FY23 earnings report showed a revenue decline but exceeded expectations. Net interest income fell due to higher rates, but balance sheet optimization was successful. Shares fell 2.89% premarket.
The reported decline in revenue and net interest income is typically seen as negative by investors, leading to a potential short-term negative impact on the stock price. However, the successful balance sheet optimization and the dividend declaration may mitigate some of the negative sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100