Business Digest

KeyCorp shares rise 14 percent

Cleveland

KeyCorp shares soared 14 percent Wednesday after the regional banking company reported narrowed first-quarter losses. KeyCorp said it lost $96 million in the first quarter of 2010, a significant decrease from the $536 million loss the company reported a year ago. The losses were not nearly as severe as Wall Street had anticipated, and shares jumped from $1.22 to $9.80 Wednesday. KeyCorp has not posted a profit in two years as a result of bad loans, but provisions for bad loans continued to fall, down to $413 during the first quarter. KeyCorp reported a provision of $847 million during the same period last year, and $756 last quarter. KeyCorp said that eight branches have opened in 2010, and the bank plans to open 32 more by the end of the year.

U.S. Bancorp posts $669M net income

minneapolis

U.S. Bancorp reported a net income of $669 million for the first quarter of 2010, up from $529 million for the same period last year, the bank announced this week. U.S. Bancorp, which remained profitable during the credit crisis, posted strong first-quarter earnings that were consistent with the expectations of industry analysts. The bank set aside $1.31 billion for bad debts, a decrease from the $1.32 billion it put aside in the first quarter of 2009, U.S. Bancorp said in a press release. Net interest income rose 15 percent to $2.4 billion in the first quarter, up from $2.1 billion last year.

Brown: Practices hurt consumers

washington D.C.

U.S. Sen.Sherrod Brown released an analysis Wednesday of how risky financial practices have hurt Ohio residents. Economic indicators included in the analysis included unemployment, access to credit, home sales and foreclosure rates. Brown, a member of the Senate Banking Committee, also announced the introduction of the SAFE Banking Act of 2010 at a press conference. The legislation would limit the size of banks and enact new consumer protections, Brown said. In Columbus, Ohio Attorney General Richard Cordray called on Congress to pass financial-reform legislation Wednesday.

Vindicator staff reports