Shares of KeyCorp edged down 0.9% following second quarter results that reflected modest growth but fell short of providing a meaningful catalyst for investors, with the stock reacting neutrally amid no apparent surprises or significant shifts in outlook.
- Reported earnings per share of $0.44, up 26% year over year, supported by 7% revenue growth and 9% pre-provision net revenue growth.
- Net interest margin expanded sequentially to 2.89%, with management targeting a 3%+ margin by year-end.
- Commercial loans increased $2.1 billion (3%) sequentially, driven by new client relationships across multiple industries.
- Noninterest income grew modestly by 2%, while expenses rose 5%, reflecting controlled cost growth.
- Asset quality remained stable with net charge-offs at 42 basis points and a $23 million reserve release influenced by improved economic scenarios.
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