Latest news with #KeyCorp
Free Malaysia Today
27-05-2025
- Business
- Free Malaysia Today
Scotiabank misses profit estimates as tariff concerns pile on loan loss reserves
Scotiabank's Canadian banking unit recorded a 31% fall in net income largely due to a build in loan loss reserves. (Global news pic) TORONTO : Bank of Nova Scotia missed quarterly earnings estimates today, burdened by a larger-than-expected sum of money kept aside to shield against bad loans in a challenging environment riddled with trade uncertainties. Scotiabank's Canadian banking unit, its biggest income generator, recorded a 31% fall in net income largely due to a build in loan loss reserves as US tariffs weigh on Canadian retail and commercial portfolios. 'Amidst the continuously evolving economic outlook, we are focused on what we can control,' CEO Scott Thomson said. While trade negotiations are ongoing, analysts have still projected a recession or stagflation in Canada, but are optimistic that newly elected Prime Minister Mark Carney could implement pro-business policies that will drive private sector investment. 'This quarter we increased our performing allowances to reflect the impact of an uncertain macroeconomic outlook,' Thomson said. Since taking charge in 2023, Thomson has led the company in a new direction focusing on the US$1.5 trillion North American trade corridor by selling troubled assets in Colombia, Panama and Costa Rica and instead investing in regional US lender KeyCorp. Its international business reported a 6% increase in adjusted earnings and its global banking and markets segment recorded a 10% rise. The lender reported adjusted earnings of C$1.52 (US$1.10) per share, compared with analysts' average estimate of C$1.56, according to LSEG data. Loan loss provisions, the money lenders set aside to cover for souring loans, rose to C$1.40 billion, from C$1 billion a year ago. Analysts had projected C$1.22 billion.
Business Recorder
27-05-2025
- Business
- Business Recorder
Canada's Scotiabank misses profit estimates as tariff concerns pile on loan loss reserves
Bank of Nova Scotia on Tuesday missed quarterly earnings estimates, burdened by a larger than expected sum of money kept aside to shield against bad loans in a challenging environment riddled with trade uncertainties. Scotiabank's Canadian banking unit, its biggest income generator, recorded a 31% fall in net income largely due to a build in loan loss reserves as U.S. tariffs weigh on Canadian retail and commercial portfolios. 'Amidst the continuously-evolving economic outlook, we are focused on what we can control,' CEO Scott Thomson said. While trade negotiations are ongoing, analysts have still projected a recession or stagflation in Canada but are optimistic that newly elected Prime Minister Mark Carney could implement pro-business policies that will drive private sector investment. 'This quarter we increased our performing allowances to reflect the impact of an uncertain macroeconomic outlook,' Thomson said. Since taking charge in 2023, Thomson has led the company in a new direction focusing on the $1.5 trillion North American trade corridor by selling troubled assets in Colombia, Panama and Costa Rica and instead investing in regional U.S. lender KeyCorp. Its international business reported a 6% increase in adjusted earnings and its global banking and markets segment recorded a 10% rise. The lender reported adjusted earnings of C$1.52 ($1.10) per share, compared with analysts' average estimate of C$1.56, according to LSEG data. Loan loss provisions, the money lenders set aside to cover for souring loans, rose to C$1.40 billion, from C$1 billion a year ago. Analysts had projected C$1.22 billion.
Yahoo
18-05-2025
- Business
- Yahoo
KeyCorp's (NYSE:KEY) Dividend Will Be $0.205
KeyCorp's (NYSE:KEY) investors are due to receive a payment of $0.205 per share on 13th of June. This means the annual payment is 4.9% of the current stock price, which is above the average for the industry. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. KeyCorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Past distributions unfortunately do not guarantee future ones, and KeyCorp's last earnings report actually showed that the company went over its net earnings in its total dividend distribution. This is an alarming sign that could mean that KeyCorp's dividend at its current rate may no longer be sustainable for longer. Over the next 3 years, EPS is forecast to expand by 186.0%. The future payout ratio could be 47% over that time period, according to analyst estimates, which is a good look for the future of the dividend. Check out our latest analysis for KeyCorp The company has an extended history of paying stable dividends. Since 2015, the annual payment back then was $0.26, compared to the most recent full-year payment of $0.82. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period. Investors could be attracted to the stock based on the quality of its payment history. Unfortunately things aren't as good as they seem. KeyCorp's earnings per share has shrunk at 23% a year over the past five years. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in. On the bright side, earnings are predicted to gain some ground over the next year, but until this turns into a pattern we wouldn't be feeling too comfortable. We should note that KeyCorp has issued stock equal to 16% of shares outstanding. Regularly doing this can be detrimental - it's hard to grow dividends per share when new shares are regularly being created. Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. Although they have been consistent in the past, we think the payments are a little high to be sustained. Overall, we don't think this company has the makings of a good income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 2 warning signs for KeyCorp that investors should take into consideration. Is KeyCorp not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Scotiabank price target raised to C$71 from C$70 at BofA
BofA raised the firm's price target on Scotiabank (BNS) to C$71 from C$70 and keeps a Neutral rating on the shares. The cyclical rebound for the Canadian economy expected at the start of the year has been upended with a weak housing market and weak private sector job growth, the analyst tells investors in a research note. The firm, which noted that this will likely delay a peak in the credit cycle in 2H25, added that potential for policy actions from the new Carney administration combined with cooling trade tensions with the U.S. could lift sentiment on the growth outlook. Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on BNS: Disclaimer & DisclosureReport an Issue Scotiabank Projects $62 Million Earnings Contribution from KeyCorp Scotiabank price target lowered to C$70 from C$76 at Jefferies Bank of Nova Scotia's Shareholders Meeting Results in Director Elections and Auditor Appointment Scotiabank price target lowered to C$71 from C$78 at National Bank Scotiabank downgraded to Neutral from Buy at BofA
Yahoo
15-05-2025
- Business
- Yahoo
KeyCorp (NYSE:KEY) Declares Quarterly Dividends Including $0.21 Per Share On Common Stock
KeyCorp recently affirmed a cash dividend of $0.205 per share on its common shares, coupled with a declaration of preferred dividends, which may have modestly supported its 18% price increase last month. The company's impressive quarterly earnings, with net income rising from USD 219 million to USD 405 million, likely bolstered investor confidence. Additionally, during this period, broader market indices like the S&P 500 and Nasdaq Composite saw winning streaks, reflecting positive overall market momentum. Although KeyCorp's move aligns with upward market trends, its strong financial results and dividends likely added weight to its favorable price movement. Be aware that KeyCorp is showing 2 warning signs in our investment analysis. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. The recent dividend affirmation by KeyCorp, alongside improved quarterly earnings, reflects positively on its strategic initiatives and market positioning. These announcements could bolster investor sentiment, supporting potential revenue growth and signaling stronger profitability prospects as suggested in the company narrative. The focus on enhancing net interest income and expanding into wealth management and commercial payments indicates an intent to diversify revenue streams, which aligns with the projected growth in revenue and earnings. Over the last five years, KeyCorp's total shareholder returns, including share price appreciation and dividends, have reached 97.79%. This performance provides a broader context for assessing current market actions and future expectations, although it's noteworthy that KeyCorp underperformed the U.S. Banks industry over the past one year. This longer hindsight indicates a resilient ability to deliver shareholder value despite recent challenges, such as profitability pressures and increasing nonperforming loans. The recent stock price increase amidst dividends and strong earnings may influence revenue and earnings forecasts by offering a more optimistic perspective for future financial performance. Analysts' consensus places the fair value price target at US$19.86, suggesting a 12% potential upside from the current share price of US$17.49. This indicates room for growth if KeyCorp continues to exceed earnings expectations and improve its net interest margins. However, uncertainties remain around potential regulatory impacts and loan demand, which could affect future profitability and valuations. Understand KeyCorp's earnings outlook by examining our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:KEY. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
