KeyBank 2006 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 2006 KeyBank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

27
MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES
Year ended December 31, Change 2006 vs 2005
dollars in millions 2006 2005 2004 Amount Percent
SUMMARY OF OPERATIONS
Net interest income (TE) $1,750 $1,701 $1,580 $ 49 2.9%
Noninterest income 892 888 928 4 .5
Total revenue (TE) 2,642 2,589 2,508 53 2.0
Provision for loan losses 95 108 125 (13) (12.0)
Noninterest expense 1,864 1,809 1,725 55 3.0
Income before income taxes (TE) 683 672 658 11 1.6
Allocated income taxes and TE adjustments 256 252 246 4 1.6
Net income $ 427 $ 420 $ 412 $ 7 1.7%
Percent of consolidated income
from continuing operations 36% 39% 45% N/A N/A
AVERAGE BALANCES
Loans and leases $26,728 $27,058 $26,243 $ (330) (1.2)%
Total assets 29,669 29,995 29,185 (326) (1.1)
Deposits 46,725 44,343 41,721 2,382 5.4
TE = Taxable Equivalent, N/A = Not Applicable
FIGURE 4. COMMUNITY BANKING
ADDITIONAL COMMUNITY BANKING DATA
Year ended December 31, Change 2006 vs 2005
dollars in millions 2006 2005 2004 Amount Percent
AVERAGE DEPOSITS OUTSTANDING
Noninterest-bearing $ 8,096 $ 8,226 $ 7,866 $ (130) (1.6)%
Money market and other savings 22,283 21,322 19,769 961 4.5
Time 16,346 14,795 14,086 1,551 10.5
Total deposits $46,725 $44,343 $41,721 $2,382 5.4%
HOME EQUITY LOANS
Average balance $10,046 $10,381
Weighted-average loan-to-value ratio 70% 71%
Percent first lien positions 59 61
OTHER DATA
On-line households/household penetration 682,955 / 53% 622,957 / 50%
KeyCenters 950 947
Automated teller machines 2,050 2,180
National Banking summary of continuing operations
As shown in Figure5, income from continuing operations for National
Banking rose to $701 million for 2006, up from $633 million for 2005
and $479 million for 2004. The increase in 2006 was a result of
significant growth in net interest income and higher noninterest income,
offset in part by a higher provision for loan losses and an increase in
noninterest expense.
Taxable-equivalent net interest income grew by $124 million, or 10%,
reflecting strong growth in deposits, average loans and leases. Deposits
rose by $3.2 billion, or 43%, from 2005. Average loans and leases grew
by $3.4 billion, or 10%, reflecting growth in the Real Estate Capital,
Equipment Finance and Consumer Finance lines of business. In addition,
the net interest margin for 2006 benefited from a $16 million lease
accounting adjustment resulting from a change in effective state tax rates.
These positive trends were moderated by tighter interest rate spreads on
average earning assets in the Consumer Finance and Equipment Leasing
lines of business.
Noninterest income rose by $87 million, or 9%, due to higher income
from investment banking and capital markets activities, operating
leases, and trust and investment services, and net gains from loan
securitizations and sales. Results for 2005 included a $19 million gain
recorded from the sale of the prime segment of the indirect automobile
loan portfolio.
The provision for loan losses rose by $20 million, with most of the
increase recorded in the Real Estate Capital and Equipment Finance
lines of business.
Previous Page
Search
Next Page
Contents