Tags: profit | decline | KeyCorp | severance

KeyCorp Posts 11 Percent Decline in Profit

Thursday, 18 Jul 2013 07:10 AM

KeyCorp, Ohio’s second-largest bank, said second-quarter profit declined 11 percent on costs related to a job-cutting program.

Operating net income fell to $193 million, or 21 cents a share, from $217 million, or 23 cents, a year earlier, the Cleveland-based lender said today in a statement. The average estimate of 25 analysts surveyed by Bloomberg was for earnings of 20 cents a share.

“Compared to the first quarter, cautious client behavior led to slower loan growth” and “greater-than-anticipated pressure on our net interest margin,” Chief Executive Officer Beth Mooney said in the statement.

The lender also said its after-tax gain on the sale of its Victory Capital Management unit will be between $100 million and $115 million, less than it previously projected. The company said it incurred $37 million of costs in the quarter related to its efficiency initiative, as severance payments helped push personnel costs up $29 million.

KeyCorp shares have gained 38 percent this year, outpacing the 26 percent advance of the 24-company KBW Bank Index.

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KeyCorp, Ohio's second-largest bank, said second-quarter profit declined 11 percent on costs related to a job-cutting program.
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2013-10-18
Thursday, 18 Jul 2013 07:10 AM
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