On Tuesday, April 17, KeyCorp
- Total reported revenue grew 12.5% to $1.3 billion, but comparisons were difficult due to a number of adjustments. According to management, "the first-quarter sales of the McDonald Investments branch network and the Champion Mortgage loan origination platform improve our risk profile and focus on the company's core relationship businesses."
- Reported net interest income fell 3% as the net interest margin fell to 3.5%. Management cited a difficult interest rate environment and the inverted yield curve during the quarter.
-
Subprime concerns don't appear to be causing a stir at KeyCorp, a bank based in Cleveland, Ohio, because management doesn't see any major issues and recently sold its Champion loan portfolio.
- Total reported diluted earnings grew 24.3% to $0.87, but stripping out the above sales, continuing earnings came in at $0.66, according to the company.
- KeyCorp carries a lowly one-star rating in Motley Fool CAPS, as does crosstown rival National City
(NYSE:NCC) and regional peer Fifth Third(NASDAQ:FITB) .
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Total Revenue |
$1,310.0 |
$1,164.0 |
12.5% |
Net Interest Income |
$700.0 |
$722.0 |
(3%) |
Net Profit |
$350.0 |
$289.0 |
21.1% |
EPS |
$0.87 |
$0.70 |
24.3% |
Adjusted EPS* |
$0.89 |
$0.66 |
34.8% |
Get back to basics with a look at the income statement.
Ratio Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Net Interest Margin |
3.50% |
3.72% |
(0.22%) |
Efficiency Ratio |
No data |
No data |
No data |
Nonperforming Assets / Assets |
0.38% |
0.34% |
0.04% |
Return on Average Assets |
1.58% |
1.23% |
0.35% |
Return on Average Equity |
19.06% |
14.67% |
4.39% |
Find out more about bank ratios.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Investments |
$11,377 |
$10,476 |
8.6% |
Loans |
$69,886 |
$70,611 |
(1%) |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Deposits |
$59,773 |
$59,402 |
0.6% |
Total Liabilities |
$85,500 |
$85,753 |
(0.3%) |
Learn about bank assets and bank liabilities.
For related Foolishness:
- Is It Time To Buy Subprime?
- Calculating Return on Assets
- A Closer Look At Bank Stocks
- Keeping Tabs on KeyCorp
National City is a Motley Fool Income Investor recommendation. Find more dividend superstars with a free 30-day trial of James Early's low-risk, high-reward newsletter service.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.