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KeyCorp Reports $239M in Second Quarter Net Income
CLEVELAND -- KeyCorp today announced second-quarter net income of $239 million, or $0.58 per common share, compared with $225 million, or $0.53 per share, for the second quarter of 2003. For the first quarter of 2004, net income was $250 million, or $0.59 per diluted common share."Key's performance continued to improve in the second quarter," said Henry L. Meyer III, chairman and chief executive officer. "Noninterest income benefitted from the stronger performance of our market sensitive businesses, including investment banking and other capital markets activities. In addition, asset quality continued to improve as nonperforming loans decreased for the seventh consecutive quarter. At June 30, these loans were at their lowest level since Dec. 31, 1999.Meyer said KeyBank is seeing greater demand for commercial loans that is "geographically broad-based and spread among a number of industry sectors."The company said it expects earnings to be in the range of $0.57 to $0.61 per share for the third quarter of 2004 and $2.35 to $2.45 per share for the full year.Key's provision for loan losses was $74 million for the second quarter of 2004, down from $81 million for the first quarter of 2004 and $125 million for the year-ago quarter. Net loan charge-offs for the quarter totaled $104 million, or 0.67% of average loans, compared with $111 million, or 0.71%, for the previous quarter and $141 million, or 0.90%, for the same period last year, the company said.During the second quarter of 2004, Key's nonperforming loans decreased by $133 million to $454 million, due primarily to reductions in the middle market, large corporate and healthcare portfolios. Nonperforming loans represented 0.71% of loans outstanding at June 30, down from 0.94% at March 31, and 1.32% at June 30, 2003.Key's allowance for loan losses stood at $1.3 billion, or 1.99% of loans outstanding at June 30, compared with $1.3 billion, or 2.09% at March 31, and $1.4 billion, or 2.22% at June 30, 2003.Visit KeyCorp at www.key.com/newsroom."