Improvement in fee income and lower provisions likely to have supported KeyCorp's (KEY) Q2 earnings amid weak NII performance and higher expenses.
KeyCorp (KEY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
KeyCorp (NYSE:KEY) stock has reversed its premarket losses, up 0.6% at $14.03 at last glance and brushing off a bear note from UBS.
KeyCorp has seen increases in asset and borrowing yields due to rising interest rates, but net interest income remains low. The bank has experienced declines in loans and deposits, with a significant portion of CRE loans classified as criticized. KeyCorp's preferred shares are overpriced and subject to interest rate risks, making them unattractive investment options.
KeyCorp (KEY) remains well-poised for revenue growth via restructuring initiatives, loan and deposit growth and higher rates. A rising expense base and worsening asset quality are headwinds.