By KeyCorp, a bank holding company, has reported a decline in revenue for its fourth quarter, marking a challenging year in terms of financial conditions. The company’s net income for the quarter ended December 31 was $65 million, or 3 cents per share, compared to $394 million, or 38 cents per share, in the same period last year.
The revenue for the quarter dropped to $1.54 billion, down from $1.9 billion a year ago. Analysts surveyed by FactSet had predicted revenue of $1.53 billion.
Noninterest income also saw a decrease of $61 million to total $610 million in the fourth quarter. KeyCorp attributed this decline to reduced investment banking and debt placement fees, as well as decreased customer derivatives trading activity and related revenues.
In terms of credit losses, the company set aside $102 million in the fourth quarter, which is lower compared to the $265 million provisioned in the same period last year. KeyCorp indicated that this reduction reflects a more stable economic outlook and the impact of ongoing efforts to optimize the balance sheet.
Furthermore, fourth-quarter results included charges amounting to $209 million for a Federal Deposit Insurance Corporation special assessment, efficiency-related expenses, and a pension settlement charge.
Overall, KeyCorp’s financial results in the fourth quarter reflect the challenges faced due to tighter financial conditions. Despite the drop in revenue and net income, the company remains focused on optimizing its balance sheet and adapting to the changing economic landscape.
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