KeyCorp announced its fourth quarter net income from continuing operations attributable to Key common shareholders of $292 million, or 33 cents per common share at the end of January.
The 2009 results were adversely impacted by an elevated loan loss provision and write-offs of certain intangible assets. Net income attributable to Key common shareholders for the year ended Dec. 31, 2010, was $390 million compared to a net loss attributable to Key common shareholders of $1.629 billion for the same period one year ago.
“Key”™s fourth quarter performance represents a strong finish to the year. We continue to make meaningful progress in both profitability and credit quality,” said Henry L. Meyer III, chairman and chief executive officer, in a statement. Â “Furthermore, we are increasingly confident that the strategic actions we have undertaken will continue to yield favorable results into 2011.”
“With three consecutive profitable quarters and continued signs of increased economic activity on the part of our clients, Key has clearly turned the corner and is positioned well to compete in 2011,” he said. Â “Our core financial measures ”“ strong capital, enhanced liquidity, adequate loan loss reserves, as well as our exit from riskier lending categories ”“ represent a firm foundation for profitability in the year ahead.”
With respect to TARP repayment, Meyer said, “We are aware that certain of our peer banks have recently repaid TARP. The comprehensive capital assessment plan we submitted on January 7, 2011, included our proposal for repaying the TARP preferred stock in a manner that we believe makes sense for Key and our shareholders. Â Repaying TARP is a top priority for Key, but our patience has been appropriate because it has allowed us to demonstrate improved financial performance and an increased stock price. Moreover, given the strength of our capital and our improved risk profile and profitability, it is our goal to repay TARP in a less dilutive manner than would have been achievable if we repaid prior to undergoing the Federal Reserve”™s Comprehensive Capital Assessment. All of this is subject to obtaining requisite regulatory approvals.”
Meyer also noted that over the last two years, Key has opened 77 new branches and renovated approximately 145 others, expanding its 14-state branch network to 1,033 branches. Â It plans to build an additional 40 new branches in 2011.
Key announced that Meyer will retire May 1, 2011. Beth Mooney will assume the additional role of chairman and chief executive officer and become the first woman CEO of a top 20 U.S. bank.  Mooney, who has more than 30 years of experience in retail banking, commercial lending, and real estate financing, was previously vice chair of KeyCorp and head of Key’s Community Bank business.
