KeyBank reported a net income of $56 million in the second quarter of 2010 and a net interest margin of 3.17 per cent. Share prices rose 6 cents per common share.
Reports for second quarter 2010 came as welcome news to shareholders, who saw a net loss for the same period last year of $394 million, or 68 cents per common share, negatively impacted by an $823 million loan loss prevention.
Key”™s second quarter earnings improvements are a result of lower provision for loan losses, higher fee income and well-controlled expenses when compared to the first quarter of 2010, according to the bank. Credit quality continued to improve across the majority of the loan portfolios in both community and national banking. Net charge-offs declined by $87 million, and nonperforming assets decreased by $362 million from March 31, 2010.
“These results are encouraging, and the return to profitability represents an important step forward for our company, said CEO Henry L. Meyer III in a prepared statement. “Key is now focusing on opportunities in a gradually improving economy. That said, some uncertainty remains in the markets, and consumer and business loan demand is soft. Recognizing current economic conditions, we will remain focused on investing in our relationship business, maintaining our strong capital and liquidity positions, reducing risk, and careful expense control as we navigate through the economic cycle.”
Meyer reported the bank”™s strong capital and liquidity positions enable it to support the borrowing needs of clients and originated approximately $7.6 billion in new or renewed lending commitments to business and consumers during the second quarter.
Meyer noted Key opened 18 new branches during the first six months of 2010 and expects to add an additional 22 branches before the year”™s end, increasing its market presence in select markets in its 14-state branch network, as well as continuing with plans to modernize existing branches.
Key is traded on the New York Stock Exchange under the symbol KEY.
