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KeyCorp (KEY - Get Report) shares were higher Thursday after the Cleveland banking company reported third-quarter earnings excluding a special item exceeded analysts' expectations.

KeyCorp net income was 39 cents a share compared with 45 cents in the year-earlier quarter. The latest earnings from continuing operations were 48 cents, excluding a loss of a dime a share related to a previously disclosed fraud matter.

Analysts surveyed by FactSet we're looking for profit of 45 cents a share for the quarter.

Revenue rose 1.7% to $1.63 billion from $1.6 billion. The FactSet-derived survey was looking for $1.64 billion.

Net interest income, the difference between what a bank takes in on loans and pays out on deposits, eased 1.3% to $980 million.

The net interest margin from continuing operations narrowed to 3% from 3.18% a year earlier. On a consolidated basis, the margin was 2.98% versus 3.16%. FactSet's survey was looking for 3.03%.

Key Corp shares were trading up 1.5% at $17.96.