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Christopher Menkin
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Christopher "Kit" Menkin is of editor LeasingNews.org (http://www.leasingnews.org/), an internet trade publication for the finance/leasing industry. He has 41 years experience in the finance/leasing industry as well as being a founder of a commercial regional bank and serving on... More
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Leasing News
  • KeyCorp Posts 4% Decline In Fourth-Quarter Net Income 0 comments
    Jan 25, 2013 12:15 PM

    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)

    Good News:
    Net Loan and lease charge offs:
    4Q12 $58
    3Q12 $109
    4Q11 $105

    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
    4Q12 $19,477
    3Q12 $18,886
    4Q11 $17,784

    According to the consolidated balance sheet:

    Commercial lease financing
    4Q2012 $4,869
    3Q2012 $5,026

    Total Loans
    4Q12 $51,858
    3Q212 $50,695

    Total Assets
    4Q12 $86,607
    3Q12 $86,276

    Total Liability
    4Q12 $76,312
    3Q12 $76,030

    Equity
    4Q $86,607
    3Q $86,276

    Tier risk based capital is good, but not as high as year-end 2011:
    12-31-12 14.86%
    09-30-12 15.17%
    12-31-11 16.51%

    More detail can be seen below the press release, but not as "revealing" as a SEC filing (not filed at this date):
    https://www.snl.com/irweblinkx/file.aspx?IID=100334&FID=15873626
    (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.

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