Should You Worry About KeyCorp's Earnings Announcement?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

The KeyCorp (NYSE: KEY  ) earnings announcement is right around the corner, and investors are facing a big question: Will CEO Beth E. Mooney and crew deliver good news? Or should investors be fretting the upcoming release?

Fear not, Fool!
If the third quarter was any indication, KeyCorp investors should expect to see some strong results for the fourth quarter. Nonperforming assets were on a downward slide, and KeyCorp was among the leaders in increased mortgage lending during 2012, a combination that can boost results. Should we see similar improvement in both metrics during the fourth quarter, KeyCorp could be poised to jump after releasing earnings.

The third quarter also saw a sizable increase in net interest margin at the bank, rising 17 basis points  from the second to the third quarter to 3.23%. Though another such increase should not be expected, any increase would be cause for celebration among investors. However, the bank has also been showing robust growth in its noninterest income over the past year, and noninterest income is on the verge  of contributing as much to Key's top line as net interest income.

Finally, third quarter results were directly affected by $8 million in costs associated with the acquisition of branches during the quarter. Now that those one-time costs are behind the bank, it should be looking to convert those new branches into a larger deposit base and income generation, which will only help to increase bottom-line results. While investors should be mindful of the results KeyCorp is set to release, I personally don't think there is much to worry about. I guess we will know for sure on Thursday morning.

The road to post-crisis recovery hasn't been as fast for all regional banks as it has for KeyCorp. Regions Financial is showing signs of life in the wake of the lumps it took during the downturn, but does that mean that its stock is a buy today? To help you figure that out, I invite you to read our premium research report on the company today. Click here now for instant access!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2211223, ~/Articles/ArticleHandler.aspx, 9/26/2016 3:15:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,102.26 -159.19 -0.87%
S&P 500 2,146.57 -18.12 -0.84%
NASD 5,261.18 -44.57 -0.84%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 2:59 PM
KEY $12.01 Down -0.31 -2.48%
KeyCorp CAPS Rating: ****