KeyCorp Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Net Loan Charge-Offs for the Fourth Quarter Ended December 31, 2017; Provides Earnings Guidance for the Fiscal Year 2018
January 18, 2018 at 05:11 pm IST
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KeyCorp announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported total interest income of $1,114 million against $1,062 million a year ago. Net interest income was $938 million against $938 million a year ago. Income from continuing operations before income taxes was $447 million against $270 million a year ago. Income from continuing operations was $196 million against $232 million a year ago. Net income attributable to the company was $196 million against $229 million a year ago. Income from continuing operations attributable to key common shareholders was $181 million or $0.17 per common share - assuming dilution against $213 million or $0.2 per common share - assuming dilution a year ago. Net income attributable to key common shareholders was $182 million or $0.17 per common share - assuming dilution against $209 million or $0.19 per common share - assuming dilution a year ago. During the fourth quarter of 2017, the company's results included a number of notable items resulting in a net impact of $0.19 per common share, including merger-related charges and the estimated impact of tax reform and related actions. Notable items had a net impact of $0.03 per common share in the third quarter of 2017 and $0.11 per common share in the fourth quarter of 2016. Excluding notable items, earnings per common share were $0.36 for the fourth quarter of 2017, compared to $0.35 for the third quarter of 2017 and $0.31 for the fourth quarter of 2016. Return on average total assets from continuing operations was 0.57% against 0.69% a year ago. Return on average common equity from continuing operations was 5.04% against 6.22% a year ago. Return on average tangible common equity from continuing operations was 6.35% against 7.88% a year ago. Return on average total assets from consolidated operations was 0.57% against 0.67% a year ago. Return on average common equity from consolidated operations was 5.07% against 6.10% a year ago. Return on average tangible common equity from consolidated operations was 6.39% against 7.73% a year ago. Book value per share at period end as on December 31, 2017 was $13.09 compared with $12.58 as on December 31, 2016. Tangible book value per share at period end as on December 31, 2017 was $10.35 compared with $9.99 as on December 31, 2016.
For the year, the company reported total interest income of $4,390 million against $3,319 million a year ago. Net interest income was $3,777 million against $2,919 million a year ago. Income from continuing operations before income taxes was $1,928 million against $968 million a year ago. Income from continuing operations was $1,291 million against $789 million a year ago. Net income attributable to the company was $1,296 million against $791 million a year ago. Income from continuing operations attributable to key common shareholders was $1,219 million or $1.12 per common share - assuming dilution against $753 million or $0.8 per common share - assuming dilution a year ago. Net income attributable to key common shareholders was $1,226 million or $1.13 per common share - assuming dilution against $754 million or $0.8 per common share - assuming dilution a year ago. Return on average total assets from continuing operations was 0.96% against 0.70% a year ago. Return on average common equity from continuing operations was 8.65% against 6.26% a year ago. Return on average tangible common equity from continuing operations was 10.84% against 7.39% a year ago. Return on average total assets from consolidated operations was 0.96% against 0.69% a year ago. Return on average common equity from consolidated operations was 8.70% against 6.27% a year ago. Return on average tangible common equity from consolidated operations was 10.90% against 7.40% a year ago.
For the quarter, the company's net loan charge-offs for the fourth quarter of 2017 totaled $52 million, or 0.24% of average total loans. These results compare to $72 million, or 0.34%, for the fourth quarter of 2016, and $32 million, or 0.15%, for the third quarter of 2017.
For the fiscal year 2018, the company's net interest income expected to be in the range of $3.9 billion - $4.0 billion, outlook includes one rate increase in June 2018. GAAP tax rate expected to be in the range of 18% - 19%.
KeyCorp is a bank-based financial services company, which operates through its subsidiary, KeyBank National Association (KeyBank). Through KeyBank and certain other subsidiaries, it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, student loan refinancing, commercial mortgage servicing and special servicing, and investment banking products and services to individual, corporate, and institutional clients. It has two business segments: Consumer Bank and Commercial Bank. The Consumer Bank serves individuals and small businesses by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity, credit card, treasury services, and business advisory services. The Commercial Bank consists of the Commercial and Institutional operating segments. The Commercial operating segment serves the needs of middle market clients.
KeyCorp Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Net Loan Charge-Offs for the Fourth Quarter Ended December 31, 2017; Provides Earnings Guidance for the Fiscal Year 2018