KeyCorp Posts Wider 3Q Loss On Loan Loss Provision

THOMAS J. SHEERAN

CLEVELAND (AP) — The banking company KeyCorp said Wednesday its loss widened in the third quarter as it set aside more money for possible loan losses as borrowers are having a tough time repaying debts amid the recession.

The Cleveland-based company said its results also reflected write-downs on real estate-related investments, higher costs of other real estate it owns and write-offs of intangible assets.

CEO Henry L. Meyer III said "aggressive actions" the company has taken to improve credit quality, strengthen capital, expand its retail network and other moves will help it become more competitive.

At the same time, he added "we are encouraged by the continuation of deposit growth and the improvement in our net interest margin."

"We are continuing to strengthen our business mix and to concentrate on the areas in which we believe we can be the most competitive," he said in a statement.

KeyCorp lost $438 million, or 52 cents per share, compared with a loss of $48 million, or 10 cents per share, during the same quarter a year ago.