On July 17, KeyCorp
- Rising loan losses and declining lending margins were offset by increases in fee income, allowing profits to rise 8%.
- The reduction in the net interest margin occurred mainly from a tighter interest rate spread on loans and deposits. This decrease represents a shift from NOW and money market deposit accounts to higher-cost certificates of deposit.
- Noninterest income grew from net gains from principal investing and loan securitizations and sales.
- Trust and investment services income declined in the double digits, as a result of lower brokerage income from the sale of the McDonald Investments branch network.
- During the quarter, regulators lifted a year-old special oversight of the company's KeyBank unit. KeyCorp is now free to make acquisitions.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Total Revenue |
$1,302.0 |
$1,248.0 |
4.3% |
|
Net Interest Income |
$706.0 |
$726.0 |
(2.8%) |
|
Net Profit |
$334.0 |
$308.0 |
8.4% |
|
EPS |
$0.84 |
$0.75 |
12.0% |
Get back to basics with a look at the income statement.
Ratio Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Net Interest Margin |
3.46% |
3.68% |
(0.22%) |
|
Nonperforming Assets / Assets |
0.40% |
0.32% |
0.08% |
|
Return on Average Assets |
1.45% |
1.33% |
0.12% |
|
Return on Average Equity |
17.66% |
15.85% |
1.81% |
Find out more about bank performance ratios.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Investments |
$9,451 |
$8,717 |
8.4% |
|
Loans |
$71,238 |
$71,237 |
0.0% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Deposits |
$60,599 |
$60,838 |
(0.4%) |
|
Total Liabilities |
$86,375 |
$87,057 |
(0.8%) |
Learn about bank assets and bank liabilities.
Related Foolishness:
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