This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

KeyCorp's Shares Rise as Bank Cuts Costs

The company's second-quarter return on average assets from continuing operations was 0.95% and its return on average tangible common equity was 8.60%.

KeyCorp estimated its June 30 Tier 1 common equity ratio under the Federal Reserve's final rules for implementing the Basel III capital standards was 10.8%, increasing from 10.3% under earlier proposed rules.

Jefferies analyst Ken Usdin has a "hold" rating on KeyCorp, with a price target of $12, but was impressed with the company's second-quarter results. "KEY continues to impress on expenses and Basel III got a nice boost from rule revisions," he wrote in a note to clients on Thursday.

The analyst added that "EPS of $0.21 is slightly ahead of consensus due to better credit quality and lower operating expenses," and that KeyCorp's "previous guidance called for mid single-digit Y-Y growth in average balances in '13... still looks achievable."

KeyCorp's shares closed at $11.66 Wednesday, returning 40% this year, following a 12% return during 2012. The shares trade for 1.2 times their reported June 30 tangible book value of $9.77, and for 12 times the consensus 2014 EPS estimate of 97 cents. The consensus 2013 EPS estimate is 87 cents.

Based on a quarterly payout of 5.5 cents, the shares have a dividend yield of 1.89%.

KeyCorp's board of directors has authorized share repurchases of up to $426 million through the first quarter of 2014. The company bought back $112 million in common shares during the second quarter, lowering its share count. Weighted average common shares and potential common shares outstanding were roughly 918.6 million in the second quarter, declining from 926.1 million the previous quarter and 948.1 million a year earlier.

KEY Chart KEY data by YCharts

Interested in more on KeyCorp? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.


Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
KEY $10.52 0.00%
AAPL $94.27 0.00%
FB $101.00 0.00%
GOOG $684.12 0.00%
TSLA $143.67 0.00%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs