KeyCorp, parent company of Key Bank of Utah, reported net income of $31 million for the first quarter of the year, an increase of 14.8 percent over income of $27 million for the same period in 1988.

Earnings per share were 72 cents for the quarter, an increase of 5.9 percent over the first quarter 1988, when earnings of 68 cents per share were reported.Included in the 1988 earnings per share was 11 cents of securities gains. Since there were only $175,000 of securities gains in the 1989 quarter, KeyCorp's core earnings per share actually rose 26 percent in 1989 compared to year earlier core earnings per share of 57 cents.

"This substantial increase in our core earnings is especially gratifying," said William H. Dougherty, chief financial officer. "It indicates the continuing success of our strategy to digest what had been ingested during the acquisition phase of our company."

There were 41,649,000 average common shares outstanding for the first quarter in 1989 compared to 37,727,000 for the same period of 1988.

Other quarterly figures reported by KeyCorp include:

- Return on average assets was .87 percent for the first quarter, up from .86 percent in 1988.

- Loans with risk or non-performing loans were 1.47 percent of total loans outstanding. While this is higher than the end of the fourth quarter in 1988, it is lower than the first quarter of last year, and is consistent with a seasonal pattern in areas served by KeyCorp banks.

- Net charge-offs rose slightly to .54 percent, up seven basis points from the first quarter of 1988, but down from the .72 percent reported for the fourth quarter last year.

- The net yield on average earnings assets was 5.02 percent for the quarter, the same margin reported for the first quarter in 1988, but down from the 5.14 percent reported for the fourth quarter last year.