KeyCorp (NYSE:KEY) reported second-quarter revenues of $1.595 billion, down 11% year over year. 

Revenues missed the estimates of $1.63 billion. EPS of $0.27 missed the Street view of $0.31.

Provision for credit losses jumped 271% to $167 million. The increase from the year-ago period and the prior quarter reflects changes in the economic outlook and portfolio activity.

"Credit quality continues to be a strength for Key, with net charge-offs to average loans of 17 basis points. In the second quarter, we added to our allowance, which represents over 7 years of annualized net charge-offs," said Chairman and CEO Chris Gorman.  

Average deposits totaled $142.9 billion for the second quarter, a decrease of 3.1% compared to the year-ago quarter. The decline reflects elevated inflation-related spending, changing client behavior due to higher interest rates, and normalization of pandemic-related deposits.

As of June 30, 2023, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.2% and 10.7%, respectively. 

Key's tangible common equity ratio was 4.5% on June 30, 2023.

Price Action: KEY shares are trading higher by 2.15% to $11.66 on the last check Thursday.