CEO Beth Mooney said, “We continued to execute against our continuous improvement plans across the company, driving a meaningful reduction in our expenses, down 7%, excluding notable items, from the year-ago period.”
KeyCorp shares ended its last trading session 1% higher on Wednesday. The stock has gained 14% since the beginning of this year.
Taxable-equivalent net interest income grew 3.5% to $985 million, reflecting benefits from higher interest rates and higher earning asset balances. Noninterest income, meanwhile dropped 11% to $536 million.
Average loans grew 3.1% to $89.6 billion from last year while average deposits rose 5% to $107.6 billion. The growth in average loans reflected broad-based growth in commercial and industrial loans and the growth in average deposits reflected growth in higher-yielding deposit products along with strength in the retail banking franchise and growth from commercial relationships.