KeyCorp today announced third quarter net income from continuing operations attributable to Key common shareholders of $214 million compared to $221 million for the second quarter of 2012, and $229 million for the third quarter of 2011.

For the nine months ended September 30, 2012, net income from continuing operations attributable to Key common shareholders was $634 million compared to $656 million for the same period one year ago.

Equipment Finance Segment Highlights (Q3 2012 versus Q3 2011)

• Average loans and leases increased 12% (rounded)
• Total revenue declined 16%
• Non-performing assets remained relatively unchanged.

KeyCorp Balance Sheet Highlights

• Average loans were $50.7 billion for the third quarter of 2012, an increase of $2.7 billion compared to the third quarter of 2011. Commercial, financial and agricultural loans grew by $4.1 billion over the year-ago quarter, with strong growth across Key’s commercial and middle market segments. This growth was partially offset by declines in the commercial real estate portfolio, the equipment lease portfolios resulting from the early termination of certain leveraged leases in the exit portfolio, and run-off of consumer loans in the designated exit portfolio.
• Compared to the second quarter of 2012, average loans increased by $1.2 billion. Commercial, financial and agricultural loans grew $867 million, and home equity loans increased $350 million as a result of Key’s home equity loan campaign. The branch acquisition added $223 million of mostly consumer loans, and the credit card portfolio acquisition added $473 million (including commercial credit cards) to average balances in the third quarter. These increases were partially offset by the early termination of certain leveraged leases and other exit portfolio run-off.
• Key originated approximately $9 billion in new or renewed lending commitments to consumers and businesses during the third quarter of 2012.

"During the third quarter, Key announced a number of actions aimed at enhancing the company's franchise, product offerings and profitability. We re-entered the credit card business, repositioned our merchant services and debit card processing, and improved market share with a 37-branch acquisition in Western New York," said Chairman and Chief Executive Officer Beth E. Mooney.

"Our third quarter results reflect the impact of these actions and underscore the company's sustained drive to increase revenue and reduce costs," Mooney continued. "Revenue trends benefited from the acquisitions, higher net interest margin due to lower funding costs, and the fourth consecutive quarter of average loan growth, primarily in our commercial, financial and agricultural portfolio. On the cost side, we made progress on our efficiency initiative goal and remain on track to capture $150 million to $200 million annual expense reductions by December 2013."

Read the full earning press release.