Q4 2024 KeyCorp Earnings Call Transcript
Key Points
- KeyCorp (KEY) reported a positive adjusted EPS of $0.38 after accounting for strategic securities repositioning.
- Revenue increased by 11% sequentially and 16% year-over-year, driven by strong net interest income and fee growth.
- Client deposit growth was strong, with a 1.5% sequential increase and a 4% year-over-year increase.
- Credit performance improved, with criticized loans down by $500 million and net charge-offs reduced by $40 million sequentially.
- Investment Banking results were robust, with fourth-quarter fees reaching $221 million, marking the second strongest year in the company's history.
- KeyCorp (KEY) reported an EPS loss of $0.28 per share before adjustments.
- Loan demand remained soft, contributing to a decline in average loans by 1.4% sequentially.
- Noninterest expenses increased by 12% year-over-year, driven by higher compensation and investment spend.
- Net charge-offs were at the high end of the original guidance range, partly due to a lower loan denominator.
- The company faced elevated expenses of approximately $50 million in the fourth quarter, which are not expected to recur.
Good morning, and welcome to KeyCorp's fourth quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to Brian Mauney, KeyCorp Director of Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. I'd like to thank you for joining KeyCorp's fourth-quarter 2024 earnings conference call. I'm here with Chris Gorman, our Chairman and Chief Executive Officer; and Clark Khayat, our Chief Financial Officer.
As usual, we will reference our earnings presentation slides, which can be found in the Investor Relations section of the key.com website. In the back of the presentation, you will hand our statement on forward-looking disclosures and certain financial measures, including non-GAAP measures. This covers our earnings materials as well as remarks made on this morning's call. Actual results may differ materially from forward-looking statements and those statements speak
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