Updated from 7 a.m.
beat first-quarter earnings estimates and guided in line for the rest of 2006.
The Cleveland-based bank made $289 million, or 70 cents a share, for the quarter ended March 31. That's up from the year-ago $264 million, or 64 cents a share, and a penny better than the Wall Street analyst consensus estimate.
"Key's first-quarter results reflect continued strength in the bank's business fundamentals," said CEO Henry L. Meyer III. "Compared with last year's first quarter, taxable-equivalent net interest income rose by $42 million, reflecting a better net interest margin, solid commercial loan growth and an increase in core deposits. Asset quality also remained solid. The level of our nonperforming loans was down slightly from the year-ago quarter, and net loan chargeoffs represented 0.23% of average total loans."
Key said it expects to make 69 to 73 cents a share for the second quarter, in line with the 71-cent Thomson Financial target, and $2.80 to $2.90 for the year. Analysts were looking for a profit of $2.86 for 2006.
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