KeyCorp (NYSE:KEY) stock fell 0.27% (As on Apr 13, 11:22:21 AM UTC-4, Source: Google Finance) Jefferies analyst Ken Usdin has downgraded KEY stock to Hold from Buy as he expects the bank’s net interest income to rise less than its peers. The analyst trimmed his price estimate for KEY to $22 from $30. For banks in general, Usdin sees higher rates and “decent loan growth” pushing up net interest income and more than making up for weak fees, higher loan loss provisions, and lower stock buybacks. Jefferies Financial Group also issued estimates for KeyCorp’s Q1 2023 earnings at $0.52 EPS and Q2 2023 earnings at $0.56 EPS. On the other hand, Wells Fargo & Company upgraded shares of KeyCorp from an underweight rating to an overweight rating in a research note. They currently have $27.00 price target on the financial services provider’s stock, up from their previous price target of $23.00.

Meanwhile, taxable-equivalent net interest income was $1.0 billion for the fourth quarter of 2021 and the net interest margin was 2.44%. Compared to the fourth quarter of 2020, net interest income decreased $5 million, while the net interest margin decreased by 26 basis points. Average loans were $99.4 billion for the fourth quarter of 2021, a decrease of $2.3 billion compared to the fourth quarter of 2020. Commercial loans decreased by $3.5 billion, reflecting a decline in PPP balances. Total PPP loan forgiveness was $8.0 billion for 2021. Partly offsetting the decrease was core growth in commercial and industrial and commercial real estate loans. Consumer loans increased $1.2 billion, reflecting strength from Key’s consumer mortgage business and Laurel Road, partly offset by the sale of the indirect auto loan portfolio. Average deposits totaled $151.0 billion for the fourth quarter of 2021, an increase of $15.3 billion compared to the year-ago quarter. The increase reflects growth from consumer and commercial relationships, including higher commercial escrow and retail deposits, partially offset by a decline in time deposits. At December 31, 2021, Key’s nonperforming loans totaled $454 million, which represented .45% of period-end portfolio loans. These results compare to .78% at December 31, 2020, and .56% at September 30, 2021. Key’s capital position remained strong in the fourth quarter of 2021. At December 31, 2021, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.4% and 10.7%, respectively. Key’s tangible common equity ratio was 6.9% at December 31, 2021.