By RTT News, October 16, 2013, 07:00:00 AM EDT
(RTTNews.com) - KeyCorp. ( KEY ) reported that its third-quarter net income attributable to common shareholders increased to $266 million or $0.29 per share, from $214 million or $0.23 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.
Net income from continuing operations attributable to common shareholders was $229 million, or $0.25 per share, compared to $211 million, or $0.22 per share for the third quarter of 2012. During the third quarter, Key incurred $41 million, or $.03 per common share of costs related to both its previously announced efficiency initiative and a pension settlement charge.
Total revenue, on a taxable-equivalent basis, for the quarter declined to $1.04 billion from $1.10 billion in the prior year quarter. Fifteen analysts had consensus revenue estimate of $1.02 billion for the quarter.
Net interest income for the quarter grew to $578 million from last year's $572 million last year. Total noninterest income for the quarter slipped to $459 million from the prior year's $518 million.
Noninterest income declined $59 million primarily due to a $54 million gain associated with the redemption of trust preferred securities one year ago.
On July 31, 2013, Key closed the sale of Victory and completed the divestiture of this business. This sale resulted in an after-tax gain of $92 million; the cash portion of this gain was $72million. Additional gain may be realized, resulting from consents received through January 2014. The gain on the Victory divestiture was partially offset by a net after-tax loss of $48 million related to the fair value of the loans and securities in Key's ten education loan securitization trusts.
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