随着存款增长，贷款需求不温不火，KeyCorp第二季度盈利略有超出

KeyCorp (NYSE:KEY) stock slipped 1.7% in Thursday premarket trading after its Q2 net interest income fell short of the consensus estimate. The bank posted a slight beat on earnings and revenue was roughly in line.

"Sequentially, net interest income grew as we benefited from fixed asset repricing and continued to grow client deposits while the pace of deposit repricing slowed," said Chairman and CEO Chris Gorman. "Client deposits were up 5% from the prior year. Loan demand remained tepid; however, we are optimistic that we will begin to see growth in the second half of the year."

Q2 EPS from continuing operations of $0.25, surpassing the $0.24 consensus, rose from $0.20 in Q1 2024 and $0.27 in Q2 2023.

Total revenue (taxable equivalent) of $1.53B, matching the average analyst estimate of $1.53B, was roughly flat with Q1 and declined from $1.60B in the year-ago period.

The bank now sees 2024 average loans declining 7%-8% from 2023, more than its prior guidance of down 5%-7%. Average deposits are expected to be stable, compared with its prior outlook of flat to down 2%.

KeyCorp (KEY) still expects net interest income on a taxable equivalent basis to fall 2%-5% during the year, it said in slides.

Q2 net interest income (taxable equivalent) of $899M, lagging the Visible Alpha consensus of $907.8M, rose from $886M in the previous quarter and fell from $986M a year ago. Net interest margin ("TE") of 2.04% vs. 2.07% in Q1 and 2.12% in Q2 2023.

Noninterest income dropped to $627M from $647M in the prior quarter and rose from $609M in last year's Q2.

Trust and investment income of $139M rose 2% Q/Q and 10% Y/Y. Investment banking and debt placement fees of $126M fell 26% Q/Q and increased 5% Y/Y. Cards and payments income of $85M were flat Q/Q and climbed 10% Y/Y.

KeyCorp's (KEY) provision for credit losses was $M, compared with $101M in Q1 and $M in Q2 2023.

Noninterest expense of $1.08B declined from $1.14B in the previous quarter and was flat with the year-ago period.

Average deposits were $144.2B vs. $142.9B in Q1. Its cost of total deposits increased to 2.28% from 2.20% in the previous quarter.

Average loans of $109.9B dipped from $111.0B in Q1.

Conference call at 9:00 AM ET.

Earlier, KeyCorp GAAP EPS of $0.25 beats by $0.01, revenue of $153B misses by $4M