posted a lower second-quarter profit, in part because of weak commercial loans and a decrease in investment services income, but the results beat analysts' estimates by a penny.
The company also said it's comfortable with Wall Street's consensus forecast for full-year earnings of $2.13 a share. The company earned $2.27 a share last year.
Key earned $225 million, or 53 cents a share, in the quarter ended June 30, down from $246 million, or 57 cents a share, in the comparable year-ago quarter. Analysts were expecting 52 cents a share. Revenue was $1.14 billion, down about 2%.
Net interest income was $710 million for the quarter, down by $11 million. Noninterest income was $434 million, a decrease of $14 million from last year's quarter. The company cited a decline in income from trust and investment services. Noninterest expense was $688 million, up 3% from the second quarter last year.
Key's provision for loan losses was $125 million, down from $135 million in the year-ago quarter. Total assets were $85.5 billion, up from $82.8 billion a year earlier.
The company also said that over the past 12 months, core deposit growth has exceeded net loan growth. However, Key said the weak demand for commercial loans has placed pressure on net interest margins.
Average core deposits increased during the quarter by an annualized 9%, and nonperforming loans declined for the third consecutive quarter. Net loan charge-offs fell to their lowest level since the first quarter 2001 at $141 million, the company also said.
Shares of the Cleveland-based bank were rising 53 cents, or 2%, to $26.04 on the
New York Stock Exchange