Keyp(US:KEY)2025-01-21 11:37Financial Performance - KeyCorp reported a net loss of $(279) million, or $(0.28) per diluted common share, for Q4 2024, compared to a net loss of $(447) million in Q3 2024[2]. - Adjusted net income for Q4 2024 was $378 million, or $0.38 per diluted common share, reflecting a 16% year-over-year increase in revenue[1]. - Total revenue for Q4 2024 was $865 million, a 24.5% increase from Q3 2024, but a decrease of 43.8% compared to Q4 2023 due to significant losses on securities[7]. - KeyCorp reported net income attributable to Key of $379 million for Q4 2024, up from $150 million in Q4 2023, representing a 152.7% increase[36]. - Total revenue for Q4 2024 was $999 million, a 24.3% increase from $804 million in Q4 2023[34]. - Net income attributable to Key for the three months ended December 31, 2024, was a loss of $244 million, compared to a profit of $65 million in the same period of 2023[51]. Revenue and Income Sources - Net interest income for Q4 2024 was $1.061 billion, up 10.1% from Q3 2024 and 14.3% from Q4 2023, with a net interest margin of 2.41%[7]. - Investment banking, payments, and wealth management fees increased by 27% year-over-year, contributing to positive operating leverage for the second consecutive quarter[2]. - Noninterest income for Q4 2024 was $(196) million, a decrease of $806 million year-over-year, primarily due to a $915 million loss on the sale of securities[9]. - Total revenue from the Consumer Bank segment increased by 7.1% year-over-year to $872 million in Q4 2024, driven by a $93 million increase in net interest income[30]. - Noninterest income rose by $110 million compared to Q4 2023, primarily due to increases in investment banking and debt placement fees[36]. Loans and Deposits - Average loans decreased to $104.7 billion in Q4 2024, down $9.2 billion year-over-year, primarily due to lower commercial and industrial loans[14]. - Average deposits increased to $149.7 billion in Q4 2024, up $4.7 billion from the previous year, driven by growth in both consumer and commercial deposits[16]. - Average loans and leases in the Consumer Bank decreased by $3.2 billion, or 7.8%, from Q4 2023, while average deposits increased by $3.9 billion, or 4.7%[33]. - Total loans for Q4 2024 amounted to $104.711 billion, with a net interest income of $1.458 billion, resulting in a yield of 5.55%[72]. - Total loans decreased by 7.4% year-over-year to $104.26 billion as of December 31, 2024, compared to $112.61 billion in 2023[87]. Credit Quality and Losses - Key's net loan charge-offs for Q4 2024 totaled $114 million, or 0.43% of average total loans, compared to $76 million (0.26%) in Q4 2023 and $154 million (0.58%) in Q3 2024[20]. - Nonperforming loans at the end of Q4 2024 amounted to $758 million, representing 0.73% of period-end portfolio loans, up from 0.51% in Q4 2023[21]. - Key's provision for credit losses decreased to $39 million in Q4 2024 from $102 million in Q4 2023, reflecting lower loan balances and changes in net charge-off levels[19]. - Total nonperforming assets increased to $772 million in Q4 2024 from $591 million in Q4 2023, a rise of 30.6%[99]. - Net loan charge-offs to average total loans was 0.43% in Q4 2024, compared to 0.26% in Q4 2023, indicating a deterioration in asset quality[99]. Expenses and Efficiency - Personnel expenses rose to $734 million in Q4 2024, reflecting a 9.6% increase from Q3 2024, driven by higher incentive and stock-based compensation[11]. - Noninterest expense for the three months ended December 31, 2024, was $1,229 million, compared to $1,094 million in the same period of 2023, marking an increase of 12.3%[51]. - Noninterest expense adjusted for selected items was $1,232 million in Q4 2024, compared to $1,100 million in Q3 2024 and $1,097 million in Q4 2023[65]. - The cash efficiency ratio (non-GAAP) improved to 141.3% in Q4 2024, down from 156.4% in Q3 2024 and significantly better than 88.6% in Q4 2023[65]. Capital and Ratios - The Common Equity Tier 1 ratio improved to 12.0%, up 120 basis points from Q3 2024[2]. - Key's tangible common equity ratio was 7.0% at December 31, 2024, reflecting a strong capital position[25]. - The total risk-based capital ratio stood at 16.2% at December 31, 2024, up from 14.2% a year earlier[23]. - Key's estimated Common Equity Tier 1 ratio was 12.0% at December 31, 2024, compared to 10.0% at December 31, 2023[23]. Dividends and Shareholder Returns - Key declared a dividend of $0.205 per common share in January 2025, payable in Q1 2025[28]. - Cash dividends declared per share remained stable at $0.205 for the three months ended December 31, 2024, consistent with the previous periods[51].