KeyCorp's Q3 Net Rises Vs Previous Quarter, Falls On Year Ago

Editorial Staff

26 April 2024

KeyCorp, the Cleveland-headquartered group that provides services including private banking, today reported income from continuing operations, attributable to common shareholders, of $266 million in the third quarter of 2023. The figure slid from $513 million a year earlier.

However, the figure rose from the second quarter of this year, when it was $250 million, KeyCorp said.

The bank said there was a year-on-year fall in net interest income of $280 million, caused by higher interest-bearing deposit costs and a shift in its funding mix to higher cost deposits and borrowings amid an environment of higher interest rates. The figure highlights how rate rises have caused pressures for banks.

Return on average tangible common equity from continuing operations fell to 12.4 per cent in Q3 2023 from 21.19 per cent, the New York-listed bank said in a statement. Its Common Equity Tier 1 ratio – its capital buffer from shocks – rose to 9.8 per cent from 9.1 per cent a year before. Net interest margin fell to 2.01 per cent from 2.74 per cent.

The results did not give a specific breakdown for its private banking operations.