Q2 2024 KeyCorp Earnings Call Transcript
Key Points
- KeyCorp (KEY) reported earnings of $237 million or $0.25 per share, up $0.05 sequentially.
- Net interest income grew from the first quarter, and the company remains confident in meeting NII commitments for 2024.
- Deposits grew by 1% sequentially, with non-interest bearing deposits stabilizing at 20% of total deposits.
- Wealth management business added 5,600 households and over $600 million of household assets in the second quarter.
- Commercial payments saw a 9% year-over-year growth in commercial deposits and a 10% growth in cash management fees.
- Earnings per share were down $0.02 from the year-ago quarter.
- Investment banking fees were below those of the first quarter, although the outlook remains positive.
- Loan demand remains tepid, with a 2% sequential decline in average loans.
- Credit costs included a $10 million build to the allowance for credit losses.
- The Fed's stress test results implied a preliminary stress capital buffer of 3.1%, up 60 basis points from 2022, which KeyCorp (KEY) found inconsistent with their internal stress tests.
(Operator Instructions)
Good morning, and welcome to KeyCorp's second quarter 2024 earnings conference call. As a reminder, this conference is being recorded. I'd now like to turn the conference over to the Head of Investor Relations, Brian Mauney. Please go ahead.
Thank you, operator, and good morning, everyone. I'd like to thank you for joining KeyCorp's second 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 find 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 the statements speak only
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