After a dismal 2009, many banks are showing a better rate of return after posting their third-quarter figures.
KeyBank (NYSE:KEY) announced its third-quarter results Oct. 22, showing net income from continuing operations of $163 million, or 19 cents per common share, good news for shareholders; one year earlier, Key posted a net loss of $422 million, or 50 cents per common share, a quarter negatively impacted by a $733 million loan loss provision.
Key attributed its improvement from pre-provision net revenue and a lower provision for loan losses when compared with the second quarter of this year. Credit quality, according to its shareholders”™ report, continues to improve across the majority of the loan portfolios both in community and in national banking. Net charge-offs declined by $78 million, and nonperforming loans decreased by $331 million from the second quarter of this year.
“With these third-quarter results, Key has returned to profitability on a year-to-date basis,” CEO Henry L. Meyer III said in a statement. “We are pleased with our progress and recognize the important contributions of our employees, who have remained focused on serving our clients in what has been the most challenging economic period in decades.”
Meyer told KeyBank shareholders the bank is continuing to work to lower its risk profile and proactively address credit issues, resulting in asset quality improvements across most of its loan portfolios. “Key”™s core financial measures ”“ strong capital, enhanced liquidity, adequate loan loss reserves ”“ along with our selective exits from riskier lending categories … provide a firm foundation for growth as the economy strengthens.”
Key opened 34 branches during the first nine months of this year and expects to open an additional five before the end of the year. Its online account application features were ranked second among the 16 largest U.S. banks in Corporate Insight”™s September 2010 edition of Bank Monitor, a leading rating service for online space.
Key recently appointed Ruth Mahoney of Key Private Bank in Albany to replace Michael Orsino as KeyBank”™s Hudson Valley/Metro NY president. Orsino, who guided Key through its acquisition of Union State Bank and moved the district”™s headquarters to West Nyack, announced his retirement in September.
