(Reuters) – U.S. bank KeyCorp (NYSE:KEY) said on Monday it had sold about $7 billion of low-yielding investment securities.
Banks have been repositioning their balance sheet as they seek to limit the hit to their profitability from tepid loan demand.
The U.S. Federal Reserve’s rate hikes have created an incentive for banks to rejig their investment portfolio.
The securities sale is expected to result in an after-tax loss of about $700 million in the third quarter of 2024.
KeyCorp shares were down 1.7% in premarket trading.
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