NEW YORK — KeyCorp, Ohio's second-largest bank, is “well positioned” to repay $2.5 billion in U.S. bailout funds in the second quarter of next year as the bank returns to profitability, Morgan Stanley said Tuesday.
KeyCorp will make the payment “given sharp improvement in credit trends, ability to grow capital organically, and solid capital position,” analysts Betsy Graseck and Peter Newman wrote in a research note.
In the third quarter, the lender reduced loan-loss provisions by 87 percent from a year ago, and earnings of 19 cents a share exceeded the average forecast of 3 cents.
KeyCorp is the third-best-performing U.S. bank stock this year. The bank became profitable in the second quarter after eight consecutive losses.
Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Comments that violate these standards, or our privacy statement or visitor's agreement, are subject to being removed and commenters are subject to being banned. To post comments, you must be a registered user on toledoblade.com. To find out more, please visit the FAQ.