KeyCorpKeyCorp of Cleveland on Thursday reported second-quarter net income from continuing operations attributable to common shareholders of $193 million, 21 cents a share, compared to $196 million, or 21 cents a share in the first quarter, and $217 million, or 23 cents a share, during the second quarter of 2012. The second-quarter results included $37 million, or 3 cents a share, in charges related to the company's expense reduction initiative. KeyCorp said it had achieved annualized cost savings of roughly $171 million through its "Fit for Growth" efficiency program. Cost-cutting continued to be the major theme for KeyCorp, and the bank's second-quarter noninterest expense -- excluding the $37 million in extraordinary costs -- totaled $674 million, declining from $681 million the previous quarter and $693 million a year earlier. Oppenheimer analyst Terry McEvoy rates KeyCorp "outperform," with a 12-to-18-month price target of $13, and in a note to clients on Thursday wrote "Management's success on reducing expenses above our forecast supports the view that sentiment on Key is improving, as investors reassess the prospects from more consistent growth led by a management team that is proving to being more disciplined on multiple fronts." "Key is executing a strategy aiming to create a less volatile, lower risk revenue stream, and we are already starting to see positive trends within certain businesses," McEvoy added. The analyst estimates the company will earn 88 cents a share for all of 2014, with EPS rising to a dollar in 2014. KEY data by YCharts
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