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 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. Follow @PhilipvanDoorn