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KeyCorp Misses, Loss Widens – Analyst Blog

Zacks Market Commentaries (October 21st, 2009) Writes:
KeyCorp’s (KEY) third quarter loss from continuing operations of 50 cents per share was substantially worse than the Zacks Consensus Estimated loss of 39 cents. This compares unfavorably to a net loss from continuing operations of 2 cents in the prior-year quarter. Results were primarily hurt by an increase in the provision for loan losses, write-downs of certain real estate-related investments, higher costs associated with other real estate-owned (OREO) assets and the write-off of certain intangibles. The downside also resulted from a 6.2% sequential increase in loan loss reserve to $2.5 billion, representing 4.00% of period-end loans and 108.5% of non-performing loans. Provisions for loan losses from continuing operations reached $733 million, compared to $336 million in the prior-year quarter. It exceeded net loan charge-offs by $146 million as KeyCorp continued to add to its reserves. Tax-equivalent net interest income increased 4.2% sequentially to $599 ...

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