KeyCorp's (KEY) first-quarter profit fell 32% from a year-earlier as the regional bank set aside more money for loan losses.
The company recorded a loan-loss provision of $42 million compared with a credit of $40 million a year ago and a $22 million credit in the third quarter.
At the same time, the bank saw growth in its commercial, agricultural and financial loan portfolio, Chief Executive Beth Mooney said.
The Ohio-based regional lender has been working to wind down commercial real-estate loans that turned sour in the financial crisis while also seeking to rebuild its loan book.
KeyCorp reported a profit of $200 million, compared with $263 million a year ago. Per-share profits were 20 cents, up from 19 cents a year ago. The previous year included charges related to the amortization of repurchased preferred shares from the U.S. Treasury.
Total revenue increased 5.5% to $1.03 billion.
Analysts polled by Thomson Reuters expected a per-share profit of 19 cents on $1 billion in revenue.
Net charge-offs, or loans lenders don't think are collectible, fell to 0.82% of average loans on a continuing-operations basis, compared with 1.59% a year earlier and 0.86% in the prior quarter.
Nonperforming loans, or those near default, came in at 1.35%, down from 1.82% and 1.47%, respectively.
