first_imgKeyCorp (NYSE: KEY) today announced fourth quarter net income from continuing operations attributable to Key common shareholders of $292 million, or $.33 per common share. These results compare to a net loss from continuing operations attributable to Key common shareholders of $258 million, or $.30 per common share, for the fourth quarter of 2009. The fourth quarter 2010 results reflect an improvement in pre-provision net revenue and lower credit costs from the same period one-year ago. The fourth quarter 2009 results were negatively impacted by a $756 million loan loss provision. Fourth quarter 2010 net income attributable to Key common shareholders was $279 million compared to a net loss attributable to Key common shareholders of $265 million for the same quarter one year ago.For 2010, Key’s net income from continuing operations attributable to commonshareholders was $413 million, or $.47 per common share. Results for the current yearcompare to a net loss from continuing operations attributable to Key common shareholders of$1.581 billion, or $2.27 per common share, for 2009. The 2009 results were adverselyimpacted by an elevated loan loss provision and write-offs of certain intangible assets. Netincome attributable to Key common shareholders for the year ended December 31, 2010, was$390 million compared to a net loss attributable to Key common shareholders of $1.629 billionfor the same period one year ago.‘Key’s fourth quarter performance represents a strong finish to the year. We continueto make meaningful progress in both profitability and credit quality,’ said Chairman and ChiefExecutive Officer Henry L. Meyer III. ‘Furthermore, we are increasingly confident that thestrategic actions we have undertaken will continue to yield favorable results into 2011.’‘With three consecutive profitable quarters, and continued signs of increased economicactivity on the part of our clients, Key has clearly turned the corner and is positioned well tocompete in 2011,’ added Meyer. ‘Our core financial measures ‘ strong capital, enhancedliquidity, adequate loan loss reserves, as well as our exit from riskier lending categories ‘represent a firm foundation for profitability in the year ahead.’Meyer said he was particularly pleased with Key’s improvement in credit qualitymetrics and the Company’s capital position. Credit quality continued to improve across themajority of loan portfolios in both Key Community Bank and Key Corporate Bank, asnonperforming assets were down $463 million and nonperforming loans decreased by $304million from the previous quarter, and net charge-offs declined to $256 million for the fourthquarter of 2010.With respect to TARP repayment, Meyer stated: ‘We are aware that certain of our peerbanks have recently repaid TARP. The Comprehensive Capital Assessment Plan we submittedon January 7, 2011, included our proposal for repaying the TARP preferred stock in a mannerthat we believe makes sense for Key and our shareholders. Repaying TARP is a top priority forKey, but our patience has been appropriate because it has allowed us to demonstrate improvedfinancial performance and an increased stock price. Moreover, given the strength of our capitaland our improved risk profile and profitability, it is our goal to repay TARP in a less dilutivemanner than would have been achievable if we repaid prior to undergoing the Federal Reserve’sComprehensive Capital Assessment. All of this is subject to obtaining requisite regulatoryapprovals.’At December 31, 2010, Key’s estimated Tier 1 common equity and Tier 1 risk-basedcapital ratios were 9.31% and 15.10%, compared to 8.61% and 14.30%, respectively, atSeptember 30, 2010.Key’s strong capital and liquidity positions provide the Company with the ability toserve the borrowing needs of our clients as the economy expands. The Company originatedapproximately $8.5 billion in new or renewed lending commitments to consumers andbusinesses during the quarter and approximately $29.5 billion for the year ended December 31,2010.Meyer also noted that over the last two years, Key has opened 77 new branches andrenovated approximately 145 others, expanding Key’s 14-state branch network to 1,033branches. The Company plans to build an additional 40 new branches in 2011. Key alsorecently announced that it scored significantly higher than its four largest competitor banks in athird quarter 2010 customer satisfaction survey conducted by the American CustomerSatisfaction Index. Key’s scores were significantly better than bank industry scores acrossmultiple dimensions, most notably Customer Loyalty.During the quarter, Key announced that Meyer will retire on May 1, 2011, and thatBeth E. Mooney has been elected President and Chief Operating Officer of KeyCorp and amember of KeyCorp’s Board of Directors. Mooney will assume the additional role ofChairman and Chief Executive Officer on May 1, 2011, and become the first woman CEO of atop 20 U.S. bank. Mooney, who has over 30 years of experience in retail banking, commerciallending, and real estate financing, was previously Vice Chair of KeyCorp and head of Key’sCommunity Bank business.Key also announced the elections of William R. Koehler to President, Key CommunityBank and Christopher M. Gorman to President, Key Corporate Bank (previously known as KeyNational Banking). Koehler has 20 years of experience in the financial services industry, mostrecently as President of KeyBank’s Great Lakes Region. In his new role, Koehler is responsiblefor Key’s businesses associated with its 14-state branch network, including retail banking,small- and middle-market business banking, private banking, investment services andmortgage. Gorman was previously the senior executive vice president and head of the nowrenamed Key Corporate Bank.The following table shows Key’s continuing and discontinued operating results for thecomparative quarters and for the years ended December 31, 2010, and 2009.CLEVELAND, January 25, 2011last_img

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