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Beth Mooney, Keycorp chairman & CEO, on the company’s earnings and competition among leading banks in the sector.
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89 billion in assets and a string of acquisitions but today KeyCorp shares are actually trading -- done down by nine cents -- connects a little bit KeyCorp reported first quarter earnings.
That -- street expectations on growth in the all important commercial loan business so.
Why the pressure today.
At first on Fox Business interview KeyCorp chairman and CEO that's that he is -- back it's great to see you again thank you for being here.
Thank you -- delighted to join you today it must be tough to watch when you came -- -- with another strong quarter and the street not reacting -- things happening.
Well actually if you look at the bank index today there is pressure on banks across the board so.
While I came in this morning with a strong quarter of a beat of the street.
And 12% year over a year over year growth would have expected that the stock to trade up but we're trading into a market -- trading down that day.
Beth you are a dividend paying company you know I'm gonna ask you this you said you're gonna reevaluate the dividend.
May they go up to five cents and may.
It's almost may -- would you like to comment now.
I yes we have as a bank submitted our capital plan -- -- Federal Reserve regulators and got approval of that plan.
So on our next regularly scheduled board meeting in May our board will consider an action to increase our dividend to five cents alright.
Investors and shareholders -- gonna like to hear that they on the stock all right let's talk about.
The competition in particular you are competing with some of the larger names in this country a particular Wells Fargo.
Do you find that as a regional bank -- gaining traction or do you feel that since -- -- the overall financial sector kind of rebound.
Over the last three months that you're losing a little bit of ground to names like.
Us -- I will tell you that I think the regional banks face is a competitively advantage space we used to argue and pass that.
We were stuck in the middle between the big guys in the smaller banks.
But in fact when you look at our loan growth we are up 20% the commercial industrial if you set at the top of our segment.
-- and 7% linked quarter.
And what we're doing is we're gaining share of -- -- -- -- of clients and customers and we are actually competitively advantaged are -- Business model is winning.
That's worried about loan losses at all because really we've been chugging along with the economy consumer confidence -- even you know beat the jobs numbers.
But we seem to be getting a little bit of a heck up with regards to the economic data are you concerned about loan losses right.
We have seen some -- from -- the economic data but I will tell you our credit quality continues to improve that's one of the things we cited in our earnings release this morning.
And we see new business volumes that are better quality -- our existing loan book.
So I will tell you the headlines are one thing but the health of American business I think -- stronger than the headlines.
I mean you're you're doing retail banking commercial banking got leasing investment management I -- you really are everywhere commercial loans by the way up 20% year over year so you're certainly doing something right.
In that category but you still have still at the government last tenure on the show in February the 22 we talked about the stress test.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Think there's a lot more clarity.
-- the steps forward even though -- many rules and regulations yet to be written.
And I feel like banks of our size are well positioned to compete.
And we have a lot of insights on the economy and are we are well positioned to help companies grow I think our 7% loan growth is both good execution of our business plan.
But also more importantly.
That the American economy and businesses are well positioned.
And this economy will not recover without a strong banking system and I think there should be a lot of credit for the strength of our system.
And the fact that we're helping the economy grow.
While I do wanna say -- the stock is actually it that way another 52 week high up 35% -- today in and I do wanna say here despite the numbers that were saying we're now.
I will say that the acquisitions you have made those on the small side from HSBC from the first Niagara I mean those.
We're talk investor look for billing and deposits were talking -- -- loans.
Do you think it continue to cutting take -- acquisition stake throughout the rest of the year.
I think we are going to look at acquisitions opportunistically over the coming years.
All we are very disciplined we look at opportunities to strengthen our franchise and make sure it's good for our shareholders.
So I think this is indicative of the kinds of things we will be looking to do over time.
Well that it's always fascinating to follow the regional -- -- -- the largest in the country.
And of course were the only female CEOs I think you very much -- it's great to have you on the -- Thank you -- -- coming happening in eastern time tomorrow.
-- gives them that we're actually was negative jobs employment.
Services company manpower other going to be here can they continue their -- -- quarter streak of beating the street's earnings estimates a medical 101 of the first on fox this interview with manpower CEO Jeffrey chair as.
Earnings coming out again.
A lot of earnings and a lot of industry.
