Keyp(US:KEY)2025-04-17 12:00Financial Data and Key Metrics Changes - Revenues increased by 16% year-over-year, while expenses remained flat [6][24] - Pre-provision net revenue rose by over $90 million from the previous quarter [6] - Earnings per share for the first quarter were reported at 33 cents [24] - Tax-equivalent net interest income was $1.1 billion, up 4% sequentially and 25% year-over-year [24] Business Line Data and Key Metrics Changes - Commercial loans increased by $1.5 billion, or 3%, while consumer loans were intentionally reduced [27] - Investment banking fees reached a record of $175 million for the first quarter, up 3% from the previous year [35] - Non-interest income was $668 million, reflecting a 3% year-over-year increase [32] Market Data and Key Metrics Changes - Deposits grew by mid-single digits year-over-year, with non-interest-bearing deposits stable at about 19% of total deposits [18][29] - Average loans were up about half a billion dollars to $105 billion on a period-end basis [26] - Interest-bearing deposit costs decreased by 18 basis points during the quarter [30] Company Strategy and Development Direction - The company is focused on navigating macroeconomic uncertainties while maintaining strong client relationships and community investments [9][12] - A strategic minority investment from Scotiabank has positioned the company for future growth and agility [13] - The company aims to leverage its balance sheet to support clients during market dislocations [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in avoiding a recession despite current uncertainties, citing strong credit quality and client backlogs [52][62] - The company is prepared for various economic scenarios, including stagflation [53] - Future performance may be impacted by macroeconomic conditions, but management remains optimistic about achieving financial commitments for 2025 [41][42] Other Important Information - The CET1 ratio was reported at 11.8%, indicating a strong capital position [40] - A $1 billion share repurchase authorization was announced, expected to commence in the second half of the year [21][22] Q&A Session Summary Question: How to reconcile the uncertain macro environment with the unchanged guidance? - Management acknowledged the uncertainty but emphasized the strength of the credit book and client backlogs, indicating a cautious optimism [52][53] Question: What is the outlook for C&I loan growth? - Management noted strong C&I loan growth driven by new teams and project-based deals, with expectations for continued growth [76][77] Question: What are the drivers for achieving the 20% net interest income growth? - Management highlighted the impact of previous restructuring actions and robust pipelines, while acknowledging potential risks from economic conditions [80][82] Question: How will the company handle potential CapEx project delays? - Existing projects are expected to continue, but new projects may be delayed until there is more clarity in the market [95] Question: What is the strategy for the share buyback program? - The company plans to maintain flexibility regarding the timing and pace of buybacks, depending on economic clarity [101][102]