KeyCorp (NYSE:KEY) reported its earnings from continuing operations slipped 4% to $193 million from the fourth quarter of $201 million. Despite its more positive press release, Key has become a reflection of its headquarter city, Cleveland, Ohio: not doing as well as could be expected.
Key's non-interest expense was $756 million for the fourth quarter of 2012, up 5.4% from $717 million for the same period in 2011. Personnel expense increased $46 million due to several factors, the Key Press release states claiming an increase in contract labor for technology investments including credit card portfolio acquisitions (Elan Financial Services) and "related implementation of new payment systems and merchant services processing; higher employee benefits due to an increase in medical claims expense and an adjustment to the annual retirement contribution accrual; and severance expense associated with Key's Fit for Growth efficiency initiative."
(All in millions)
Net Loan and lease charge offs:
Key's allowance for loan and lease losses was $888 million, or 1.68% of total period-end loans at December 31, 2012, compared to 1.73% at September 30, 2012, and 2.03% at December 31, 2011.
Average Balances for loans and leases improved
According to the consolidated balance sheet:
Commercial lease financing
Tier risk based capital is good, but not as high as year-end 2011:
More detail can be seen below the press release, but not as "revealing" as a SEC filing (not filed at this date):
(scroll past the written for financial numbers)
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.