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Shares of KeyCorp were sliding Monday. Photographer: Ty Wright/Bloomberg
Photograph by Ty Wright/Bloomberg
KeyCorp
stock was falling in Monday trading as investors digested disappointing guidance.
Referring to net interest income for the second quarter, “we’re going to come in softer than we thought,” Chief Financial Officer Clark Khayat said at the Morgan Stanley U.S. Financials, Payments and CRE Conference on Monday.
Citing “funding mix and deposit cost pressures,” he said the company now expects a net interest income decline of 12% in the second quarter, compared with prior guidance of a 4% to 5% slide. In its first quarter, the bank focused on retention in its deposit strategies, and recently switched gears to focus more on acquisition behavior, Khayat explained.
“I think when you think about where money market funds are, where other banks are pricing deposits and then being more acquisitive, that’s caused that deposit pricing to accelerate a little bit more than we expected,” he added.
Investors didn’t take kindly to the news, sending shares down 6.4% to $10 and clocking in as one of the worst performers in the
S&P 500
in Monday trading.
The regional bank stock has been hit hard this year, falling 43%. In April, it posted worse-than-expected earnings for its first quarter, and earlier this year, it dealt with turmoil in the grander banking sector.
Write to Emily Dattilo at [email protected]
Source: https://www.barrons.com/articles/keycorp-stock-sp-index-leading-decliners-87ec71fd?siteid=yhoof2&yptr=yahoo