KeyCorp sees FY18 net interest income $3.95B-$4.05B, one rate increase
For loans, the company sees average balances in the range of $88.5B-$89.5B. For deposits, sees average balances in the range of $104.5B-$105.5B. Sees FY18 net interest income in the range of $3.95B - $4.05B, outlook includes one rate increase in November. Sees noninterest income $2.5B-$2.6B, noninterest expense $3.85B-$3.95B. Sees net charge-offs to average loans below targeted range of 40 - 60 bps, provision expected to slightly exceed net charge-offs to provide for loan growth. Sees GAAP tax rate in the 17%-18% range. Long-term targets include: Positive operating leverage, cash efficiency ratio 54%-56%, moderate risk profile and ROTCE 15%-18%. Comments from slides that will be presented on the Q2 earnings conference call.