KeyCorp released data on its earnings, which showed growth in deposits, while the bank’s management pointed to the momentum in payments, including commercial transactions of the relevant category, which should prove resilient even amid macroeconomic difficulties related to the tariff-driven trade war.
The mentioned financial institution based in Cleveland, Ohio released last Thursday, April 17, that average commercial loans for the quarter ended March 31 totaled $72.4 billion. This indicator increased by 0.4% compared to the reading for the previous quarter.
Consumer deposits for the period rose to $88.3 billion. In the fourth quarter of 2024, this indicator was recorded at the $87.5 billion mark.
Bank chief executive officer Chris Gorman said that credit costs, non-performing assets, and criticized loans are all trending in a positive direction, with NPAs declining by nearly 10% sequentially. He also noted that the financial institution continues to drive strong deposit growth and beta dynamics. According to him, on a year-over-year basis, deposits were up mid-single digits. Moreover, he stated that the financial institution’s household relationships were up 2%, and its commercial payments business continued to experience strong momentum while being very disciplined with respect to rate management.
After the mentioned data were published, the value of the bank’s shares rose by 3%.
The bank’s overall net charge-offs remained unchanged at 0.4% quarter over quarter. The financial institution also reported that it reserved an additional $8 million to cover anticipated loan losses.
As we have reported earlier, Goldman Sachs Performance Beats Estimates Driven by Economic Uncertainty.
