2024-04-18 12:14:09 ET
KeyCorp (KEY)
Q1 2024 Earnings Conference Call
April 18, 2024 9:00 AM ET
Company Participants
Brian Mauney – Director-Investor Relations
Chris Gorman – Chairman and Chief Executive Officer
Clark Khayat – Chief Financial Officer
Conference Call Participants
Ken Usdin – Jefferies
John Pancari – Evercore
Scott Siefers – Piper Sandler
Manan Gosalia – Morgan Stanley
Ebrahim Poonawala – Bank of America
Mike Mayo – Wells Fargo Securities
Gerard Cassidy – RBC Capital Markets
Peter Winter – D.A. Davidson
Janet Lee – JPMorgan
Presentation
Operator
Thank you, everyone, for standing by. Welcome to the 2024 First Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to turn the conference over to Brian Mauney, KeyCorp’s Director of Investor Relations. Please go ahead.
Brian Mauney
Thank you, operator, and good morning, everyone. I’d like to thank you for joining KeyCorp’s first quarter 2024 earnings conference call. I’m here with Chris Gorman, our Chairman and Chief Executive Officer; and Clark Khayat, our Chief Financial Officer.
As usual, we will reference our earnings presentation slides, which can be found in the Investor Relations section of the key.com website. In the back of the presentation, you will find our statement on forward-looking disclosures and certain financial measures, including non-GAAP measures. This covers our earnings materials as well as remarks made on this morning’s call. Actual results may differ materially from forward-looking statements and those statements speak only as of today, April 18, 2024, and will not be updated.
With that, I will turn it over to Chris.
Chris Gorman
Thank you, Brian. I’m on Slide 2. This morning, we reported earnings of $183 million or $0.20 per share which incorporates $0.02 per share impact from an additional FDIC special assessment charge this quarter. I would characterize our underlying results as solid. Revenue was essentially flat sequentially despite expected first quarter seasonality as investment banking reported its best first quarter result in our company’s history. Fees were up 6% against both the prior quarter and prior year.
Retail relationship households were up 2.5% year-over-year and commercial clients were up 6%. Customer deposits were up 2% year-over-year and essentially flat on a sequential basis. We continue to reduce our reliance on higher cost brokered CDs and wholesale borrowings. Expenses remained well controlled at $1.1 billion. Nonperforming assets and credit losses remained low. Additionally, we continued to build our credit reserves this quarter.
Our capital ratios, including tangible common ratios were flat to improved across the board, despite the impact of higher interest rates on the fair value of our available-for-sale securities. We ended the quarter with a common equity Tier 1 ratio of 10.3%, up 120 basis points from a year ago, representing our fastest rate of organic capital build over a 12-month period since the industry began tracking this metric....
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KeyCorp (KEY) Q1 2024 Earnings Call Transcript