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Stock impact report

KeyCorp Wasn't Loved Before, And Now Reserves Are A New Worry [Seeking Alpha]

KeyCorp (KEY) 
Last keycorp earnings: 4/16 06:30 am Check Earnings Report
US:NYSE Investor Relations: investor.key.com
Company Research Source: Seeking Alpha
SummaryReserve adequacy has emerged as a new concern for KeyCorp, as the Street worries that the bank may be under-reserving for the expected surge in charge-offs.Underlying business trends were okay in the first quarter, with a modestly better than expected pre-provision operating profit on better NIM and loan growth.KeyCorp looks significantly undervalued on a long-term basis, and even though the bank will likely have to add to its reserves, the discount to tangible book seems too wide.I thought thatKEYI do think it is likely that KeyCorp will increase its reserves as the year goes on; most banks have already acknowledged that the second quarter is on a worse trajectory than Q1 reserving decisions anticipated, but I also think the company will come through this okay. This is basically a trade now on Street sentiment around reserves, and KeyCorp admittedly doesn’t have as thick of a capital cushion as I’d like. Still, more aggressive investors may want to consider Key, as it is a ban Show less Read more
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