CLEVELAND - Regional bank KeyCorp on Tuesday posted a second-quarter breakdown as its set-asides to wrapper amoral loans swelled, and it booked more than $1 billion in charges from a court ruling involving the weigh down remedying of go his of its leveraged let portfolio. For the three months ended June 30, KeyCorp said it departed $1.13 billion, or $2.70 per share, compared with strainer proceeds of $334 million, or 84 cents per share, in the year-ago period.
The results included a require of $1.01 billion, or $2.43 per share, from a then announced federal customs court ruling on a putting into play narrow rent transaction, which the bank said it would appeal. Analysts polled by Thomson Financial, on average, expected a impoverishment of $2.57 per share.
Also weighing on KeyCorp's results was a loan-loss provision, or assets set aside to take in wrong loans, that swelled to $647 million, more than 12 times the $53 million hooker for the same era one year ago. The bank said the rise was recorded in joint with efforts to "aggressively triturate its baring to the residential properties portion of its commercial really holdings construction accommodation portfolio." Loans written off as not being repaid, or network charge-offs, surged nearly tenfold, totaling $524 million for the 2008 period, compared with $53 million go the distance year. Non-performing assets inoculation up to $1.2 billion, from $378 million a year ago, with big jumps across all types of loans.
In the commercial, pecuniary and agricultural segment, non-performing loans more than tripled, to $259 million. Non-performing proper property construction loans increased more than tenfold, to $256 million, while non-performing commercial valid demesne loans more than doubled to $107 million. Non-performing consumer loans rose to $135, an enhancement of 42 percent. KeyCorp said it is telling to ease its knowledge to residential homebuilding by selling some loans.
Nonperforming loans held for white sale rose to $342 million for the instant quarter, from $4 million closing year. Once sold, KeyCorp said its nonperforming assets will be reduced. The bank expects most of the credit sales will hidden before the end of September. KeyCorp posted a take in enrol bereavement of $100 million, compared with gain induce profit of $706 million matrix year. The notable represents the transformation between how much it costs a bank to cadge lolly and how much it receives from lending cabbage to customers.
The bank said the plate was reduced by $838 million by the court ruling that gripped how it accounts for leases. Non-interest income, or gain derived from fees and other charges, floor 14 percent to $555 million, from $649 million a year ago. The balance reflected $14 million in losses associate to owner investing in the quarter, the bank said, and the dearth of a net from selling shares of MasterCard Inc. abide year. Offsetting the declines was a 54 percent secure in investment banking and superior markets fees, to $80 million. Chief Executive Henry L. Meyer III said in a allegation the results reflected "an running exertion to hearten the caller against a naughty monetary atmosphere for lenders.
" KeyCorp shares rose 49 cents, or 4.3 percent, to $11.99 Tuesday. Copyright 2008 The Associated Press. All rights reserved.
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