KeyCorp Revenue Rises on Higher Average Loans

By James Sterngold And Angela Chen 

Cleveland-based KeyCorp, one of the country's largest regional banking companies, said its profit edged down in the first quarter as its revenue grew slightly and average total loans increased by 5.1%.

Earnings and revenue met Wall Street estimates.

The bank posted earnings of $233 million, down from $242 million in the prior-year period. On a per-share basis, earnings were flat at 26 cents.

Revenue at the Minneapolis-based bank rose to $1.01 billion from $1 billion in the first quarter of 2014.

Analysts had expected 26 cents a share in earnings and $1.034 billion in revenue, according to Thomson Reuters.

Net interest margin, an important measure of lending profitability, fell to 2.91% from 3% a year earlier.

Average loans grew 5.1% due to a 12% increase in agricultural, commercial and financial loans.

Like other regional banks, KeyCorp faces a tough environment in which low interest rates have limited interest income.

Shares, inactive premarket, have been up about 2% this year through Wednesday's close.

Write to James Sterngold at [e-mail] and Angela Chen at [e-mail]

Access Investor Kit for KeyCorp

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US4932671088