NYSE$KEY

KeyCorp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record first quarter net income driven by positive operating leverage and broad-based strength in fees.

KeyCorp reported a record first quarter with a net income of $591 million, or $.61 per diluted common share, marking a significant increase compared to the previous quarter and the same period last year. The results were driven by broad-based strength in fees and positive operating leverage.

  • Reported record first quarter revenue, up 19% from year-ago quarter, driven by broad-based strength in fees
  • Experienced strong credit quality with nonperforming loans and net charge-offs down from prior quarter
  • Returned capital to shareholders by repurchasing $135 million in common shares
  • Successfully launched Laurel Road for Doctors, expanding digital reach nationally for medical professionals

Headline financials

Total Revenue

$1.75B

Previous: $1.47B+19.4%
EPS (adj)

$0.61

Previous: $0.12+408.3%
Net Interest Margin

2.6%

Previous: 3.0%-13.3%
Cash Efficiency Ratio

60.3%

Previous: 62.3%-3.2%
Net Charge-offs to Loans

0.5%

No prior period
CET1 Ratio

9.8%

Previous: 8.9%+9.5%
ROA

1.4%

No prior period
Return on Tangible Equity

18.3%

No prior period
Net Income

$591M

Previous: $146M+304.8%
Operating Income

$618M

Previous: $541M+14.2%
Gross Profit

$1.69B

Previous: $1.11B+52.9%
Cash & Equivalents

$938M

Previous: $865M+8.4%
Total Assets

$176B

Previous: $156B+12.8%
Stock-Based Comp

$26M

Previous: $25M+4.0%

Revenue & EPS history

KeyCorp · Revenue · Quarterly

$1.75B

Q1 2021+19.4%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

KeyCorp · $1.75B total across 3 segments · Q1 2021

  • Consumer Bank
    $864M+5.4%
  • Commercial Bank
    $858M+36.4%
  • Other
    $28M+64.7%

Forward guidance

While the earnings report does not contain explicit forward guidance, it highlights several positive trends and strategic initiatives that suggest a positive outlook for KeyCorp.

Tailwinds

  • Strength in consumer mortgage
  • Growth from Laurel Road
  • Growth from consumer and commercial relationships
  • Heightened prepaid card activity
  • Strength in the debt and equity markets

Headwinds

  • Lower reinvestment yields
  • Lower loan fees
  • Unfavorable balance sheet mix
  • Elevated levels of liquidity
  • Lower interest rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.4%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+3.1%

Avg return

30 days after

49%

36 / 73 earnings

Positive

+8.2%

Q3 2016

Best reaction

-9.4%

Q2 2009

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-0.3%+2.5%-2.4%
Q1 2026-0.4%+2.5%-2.4%
Q3 2025-5.5%-1.1%-0.6%
Q2 2025+0.4%-0.4%+4.6%
Q1 2025+1.4%+0.7%+18.2%
Q4 2024-5.5%-3.4%-3.9%
Q3 2024-2.0%-3.0%+8.2%
Q2 2024-3.8%-2.2%+1.1%
Q1 2024+1.4%+2.0%+6.7%
Q4 2023+0.7%+4.1%+1.7%
Q3 2023-7.4%-8.1%+15.4%
Q2 2023+0.2%+1.8%-5.1%
Q1 2023-6.4%-15.3%-20.7%
Q4 2022+1.2%+4.0%+11.1%
Q3 2022+2.5%+7.8%+12.9%
Q2 2022-0.6%-2.8%+6.4%
Q1 2022-4.8%-8.5%-15.8%
Q4 2021-3.1%-2.7%+0.2%
Q3 2021+1.3%+0.7%-1.5%
Q2 2021+5.0%+3.3%+6.8%
Q1 2021+0.1%+1.7%+11.8%
Q4 2020-0.5%-4.5%+10.2%
Q3 2020+0.0%-0.6%+17.2%
Q2 2020+2.2%-0.4%-1.6%
Q1 2020+4.8%+0.1%-5.7%
Q4 2019-1.7%-2.7%+0.3%
Q3 2019+0.5%+2.5%+7.2%
Q2 2019+6.2%+6.6%-4.6%
Q1 2019-1.0%+0.1%-2.4%
Q4 2018+0.6%+0.9%+4.5%
Q3 2018-4.8%-7.5%-2.4%
Q2 2018+1.1%+3.2%+6.4%
Q1 2018+5.2%+6.4%+7.3%
Q4 2017-0.5%+1.6%-1.1%
Q3 2017-0.5%-0.6%-1.5%
Q2 2017-5.5%-3.1%-7.8%
Q1 2017+4.5%+7.2%+2.1%
Q4 2016-1.5%-0.4%+4.6%
Q3 2016+8.2%+7.4%+33.7%
Q2 2016-0.9%+0.2%+5.0%
Q1 2016+3.6%
Q4 2015+1.1%
Q3 2015+3.9%
Q2 2015-2.3%
Q1 2015-0.7%
Q4 2014+7.6%
Q3 2014-5.4%
Q2 2014-3.5%
Q1 2014+0.9%
Q4 2013-8.6%
Q3 2013+5.8%
Q2 2013+3.3%
Q1 2013-1.3%
Q4 2012-0.1%
Q3 2012+3.9%
Q4 2011+3.4%
Q2 2012+0.8%
Q1 2012-1.5%
Q3 2011+2.5%
Q2 2011-8.5%
Q1 2011+0.2%
Q4 2009+1.1%
Q4 2010+1.1%
Q3 2010-1.2%
Q2 2010-1.1%
Q1 2009-7.7%
Q1 2010+0.5%
Q4 2007-1.5%
Q3 2009+5.8%
Q3 2008+5.8%
Q2 2008-9.4%
Q2 2009-9.4%
Q4 2008-9.4%

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