KeyCorp Q2 Profit Off on Higher Provision Charges
For the quarter ended June 30, KeyCorp reported a profit of $236 million, compared with $240 million a year ago. The company said it recorded a loan-loss provision of $21 million compared with a credit of $8 million a year ago and a $42 million provision in the first quarter.
The regional lender has been working to wind down commercial real-estate loans that turned sour in the financial crisis while also seeking to rebuild its loan book and improve efficiency.
The company said it expects to reduce expenses by around $150 million to $200 million by December 2013, to see a benefit in 2014. It plans to terminate its leveraged leases earlier than expected and execute on its capital management priorities through share repurchase programs.
Last week, Key completed its acquisition of 37 retail banking branches owned by HSBC Bank in Buffalo and Rochester, NY. The deal added roughly $2.1 billion in deposits and $260 million in loans. The company said the acquired branches strengthen its market share and positions it to deepen client relationships.