KeyBank 2005 Annual Report Download - page 20

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19
MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES
Consumer Banking
As shown in Figure 3, net income for Consumer Banking was $483
million for 2005, up from $412 million for 2004 and $422 million for
2003. Net income increased in 2005 primarily because of two actions
that effectively depressed earnings in 2004: the fourth quarter 2004
sale of the broker-originated home equity loan portfolio, and the
reclassification of the indirect automobile loan portfolio to held-for-sale
status. These actions significantly reduced noninterest income and the
provision for loan losses, and substantially increased noninterest expense
in 2004. Excluding the effects of the above actions, 2004 net income for
Consumer Banking was $489 million.
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Year ended December 31, Change 2005 vs 2004
dollars in millions 2005 2004 2003 Amount Percent
SUMMARY OF OPERATIONS
Net interest income (TE) $1,943 $1,952 $1,993 $ (9) (.5)%
Noninterest income 937 870 899 67 7.7
Total revenue (TE) 2,880 2,822 2,892 58 2.1
Provision for loan losses 127 171 297 (44) (25.7)
Noninterest expense 1,980 1,959 1,920 21 1.1
Income before income taxes (TE) 773 692 675 81 11.7
Allocated income taxes and TE adjustments 290 280 253 10 3.6
Net income $ 483 $ 412 $ 422 $ 71 17.2%
Percent of consolidated net income 43% 43% 47% N/A N/A
Net loan charge-offs $139 $308 $299 $(169) (54.9)%
AVERAGE BALANCES
Loans $29,274 $31,811 $31,624 $(2,537) (8.0)%
Total assets 35,870 37,452 36,493 (1,582) (4.2)
Deposits 42,043 39,802 38,631 2,241 5.6
TE = Taxable Equivalent, N/A = Not Applicable
FIGURE 3. CONSUMER BANKING
ADDITIONAL CONSUMER BANKING DATA
Year ended December 31, Change 2005 vs 2004
dollars in millions 2005 2004 2003 Amount Percent
AVERAGE DEPOSITS OUTSTANDING
Noninterest-bearing $ 6,921 $ 6,482 $ 6,302 $ 439 6.8%
Money market and other savings 20,680 19,313 17,653 1,367 7.1
Time 14,442 14,007 14,676 435 3.1
Total deposits $42,043 $39,802 $38,631 $2,241 5.6%
HOME EQUITY LOANS
Community Banking:
Average balance $10,381 $10,212
Average loan-to-value ratio 71% 72%
Percent first lien positions 61 61
National Home Equity:
Average balance $ 3,497 $ 4,555
Average loan-to-value ratio 64% 67%
Percent first lien positions 63 70
OTHER DATA
On-line households / household penetration 622,957 / 50% 571,051 / 45%
KeyCenters 947 935
Automated teller machines 2,180 2,194