KeyCorp on Thursday reported second-quarter profit topped Street expectations. The bank also announced a plan to reduce expenses by as much as $200 million by the end of 2013.
KeyCorp posted net income of $221 million, or 23 cents a share, attributable to common shareholders, 5 cents better than analysts expected.
“To maintain our positive momentum, we are launching new efficiency initiatives and identifying opportunities to leverage our strong capital position to make attractive investments in our business, such as our recent brand acquisition in Upstate New York,” Chairman and CEO Beth Mooney said in a statement.
In addition to reductions of at least $150 million, the Cleveland-based bank said it plans to change its cost structure to be more variable and aligned with operating environment, and focused on organizational design, strategic sourcing and branch rationalization.
Key last weekend completed its acquisition of 37 former HSBC Bank USA N.A. branches from First Niagara Bank N.A., including 11 in Monroe County and one in Orleans County, adding $2.1 billion in deposits and $260 million in loans.
Income for the parent of KeyBank N.A. in the Rochester market declined 9 percent from $243 million, or 26 cents a share, in the second quarter 2011.
KeyBank ranked eighth in the Rochester market with local deposits of $602.9 million as of June 30, 2011, the most recent data from the Federal Deposit Insurance Corp. shows.
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