KeyCorp's Q4 Success: Strong Revenue Growth, Securities Repositioning, and Improved Credit Performance
Wednesday, Jan 22, 2025 6:43 am ET
1min read Revenue and Net Interest Income Growth:
- KeyCorp's fourth-quarter revenue was up 11% sequentially and 16% year-on-year, with net interest income exceeding $1 billion.
- This growth was driven by increased client deposit growth, strong fee performance in investment banking, and securitization efforts.
Securities Repositioning and Capital Optimization:
- KeyCorp completed two major securities repositioning efforts, selling approximately $10 billion in securities, which yielded $54 million in 2024 net interest income and will contribute an additional $270 million in 2025.
- The repositioning was aimed at enhancing liquidity and capital benefits, driven by the Scotiabank investment and market conditions.
Credit Performance and Credit Migration:
- Credit migration improved for the fourth consecutive quarter, with criticized loans down 500 million and net charge-offs down $40 million sequentially.
- This improvement is attributed to a constructive macroeconomic environment, strong deposit growth, and effective management of credit risks.
Investment Banking and Fees:
- Fourth-quarter investment banking fees reached $221 million, with full-year fees being the second highest in the company's history.
- Growth was broad-based across loan syndications, M&A, DCM, and ECM, driven by strong client demand and robust market conditions.
- KeyCorp's fourth-quarter revenue was up 11% sequentially and 16% year-on-year, with net interest income exceeding $1 billion.
- This growth was driven by increased client deposit growth, strong fee performance in investment banking, and securitization efforts.
Securities Repositioning and Capital Optimization:
- KeyCorp completed two major securities repositioning efforts, selling approximately $10 billion in securities, which yielded $54 million in 2024 net interest income and will contribute an additional $270 million in 2025.
- The repositioning was aimed at enhancing liquidity and capital benefits, driven by the Scotiabank investment and market conditions.
Credit Performance and Credit Migration:
- Credit migration improved for the fourth consecutive quarter, with criticized loans down 500 million and net charge-offs down $40 million sequentially.
- This improvement is attributed to a constructive macroeconomic environment, strong deposit growth, and effective management of credit risks.
Investment Banking and Fees:
- Fourth-quarter investment banking fees reached $221 million, with full-year fees being the second highest in the company's history.
- Growth was broad-based across loan syndications, M&A, DCM, and ECM, driven by strong client demand and robust market conditions.
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