By Rob Curran
KeyCorp’s first-quarter profits fell 28% as market volatility weighed on commission-based revenue and the bank set aside more cash to cover potential losses, even as business commercial loan prospered.
The Cleveland bank posted a profit of $448 million, or 45 cents per share, compared with $622 million, or 61 cents per share, a year earlier.
Revenue fell 3.1% to $1.7 billion from $1.75 billion, it said.
KeyCorp created a provision for credit losses of $83 million, in contrast to a benefit associated with a reversal of such provisions of $93 million a year earlier. The bank cited economic prospects stemming from the war in Ukraine, risks created by inflation and loan growth for the provision.
Net interest income increased slightly from $1.01 billion to $1.02 billion, the company said. Non-interest income fell 8.4% to $676 million, reflecting lower mortgage costs and lackluster investment banking activity, he said.
“Our strong lending pipelines position us well for continued growth in 2022,” said Chairman and CEO Chris Gorman. “Market uncertainty resulted in lower-than-expected fee income, which impacted our investment banking business and resulted in market-related adjustments.”
Average total loans rose 3% to $103.8 billion, driven by growth in industrial loans and commercial mortgages, partially offset by a decline in loans associated with a small business stimulus package, it said. he declared.
Write to Rob Curran at [email protected]