Magazine article American Banker

Key Corp's 4th-Quarter Profits Up 23%

Magazine article American Banker

Key Corp's 4th-Quarter Profits Up 23%

Article excerpt

KenCorp reported net income of $6.3 million for the fourth quarter, up 3% from the third quarter and 23% more than a year earlier.

The Albany, N.Y., company racked up $245.6 million of earnings for the full year, 31% more than in 1991.

Analysts. who were expecting about $64 million for the fourth quarter, were particularly encouraged because the results included a $6.8 million charge for costs associated with the acquisition of Puget Sound Bancorp in Tacoma, Wash., due to be completed Friday.

Puget would add $4.7 billion to KeyCorp's $25.4 billion in assets. Four other acquisitions are expected to add $1.7 billion more by June 30.

Despite the positive news, KeyCorp's stock price fell 50 cents Wednesday afternoon, to $37.375.

Driving earnings in the fourth quarter were higher margins, mortgage banking income, and service charges. KeyCorp also fueled interest income by adding $1.5 billion in loans in 1992, a 9.6% increase.

Nonperforming assets also continued to show improvement. They fell 7.6% from the third quarter to $369.5 million, or about 2% of loans and foreclosed real estate.

Other Earnings

In other reports Wednesday:

* Huntington Bancshares Inc. of Columbus, Ohio, said it earned $38.6 million in the fourth quarter, up 21.6% from the 1991 period. The full-year figure was $139 million, up 19%, yielding returns on average assets and equity of 1.08% and 15.46%. The return ratios were up from 1% and 14.29% in 1991.

Like much of the industry, Huntington's earnings were driven by higher margins. …

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