Continuing an upward trend, KeyCorp, parent company of Key Bank of Utah, reported record net income for the last quarter and full year ending Dec. 31.
Fourth-quarter net income was $34.54 (80 cents per share), the highest ever reported by KeyCorp and up from $8.79 million for the last quarter of 1987 - equivialent to 80 cents per common share of stock in 1988 vs. 20 cents a year earlier.For the full year, 1988 net income rose 65 percent to $119.86 million up from $72.66 million in 1987 - equivalent to $2.90 per share compared to $1.83 per share a year earlier.
KeyCorp President and Chief Executive Victor J. Riley Jr. credited the strong performance to:
- Continued improvement in net interest margin which stood at 5.14 percent in the fourth quarter.
- Reduction in the expense ratio for the fourth consecutive year.
- A decline in the non-performing loan ratio to the lowest year-end level of any year since the start of KeyCorp's interstate expansion program in 1984.
- Strong loan demand in KeyCorp Banks during 1988 resulting in 18 percent growth in the loan portfolio since year-end 1987.
"The positive results of our expansion to the West are becoming more and more apparent in Oregon, Washington, Utah and Idaho (and most recently, Wyoming) where our subsidiaries continue to improve the longer we have been in business in those states," said Riley. As for Alaska we see signs that improvement is finally taking place in that long depressed economy.
"Having completed our major acquisition program nearly four years earlier than expected," Riley concluded, "We can now begin to enjoy the fruits of our labor and concentrate on our goal of becoming the premier regional banking company in the United States."