KeyCorp
Q1 2022 Earnings Call
Apr 21, 2022, 8:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to KeyCorp's first quarter 2022 earnings conference call. As a reminder, this conference is being recorded. I would now like to turn the conference over to the chairman and CEO, Chris Gorman. Please go ahead.
Chris Gorman -- Chairman and Chief Executive Officer
Well, thank you, operator, and thank you for joining us for KeyCorp's first quarter 2022 earnings conference call. Joining me on the call today are Don Kimble, our chief financial officer; and Mark Midkiff, our chief risk officer. On Slide 2, you will find our statement on forward-looking disclosure and non-GAAP financial measures. It covers our presentation materials and comments, as well as the question-and-answer segment of our call.
I am now turning to Slide 3. This morning, we reported earnings of $420 million or $0.45 per share. Our results reflect strong underlying operating performance, expected seasonality, and the impact of current market conditions. Our results also included $0.04 per share of additional loan loss provision in excess of net charge-offs.
One of the standouts this quarter was our strong loan growth. Average loans were up 4% from the last quarter, driven by both our consumer and commercial businesses. Adjusting for the planned runoff of PPP and the sale of our indirect auto business, we grew loans by 15% year over year. Our strong loan growth benefited net interest income, which came in above our expectations.
We also revised our net interest income outlook higher, reflecting both stronger loan growth and the ongoing benefit from higher interest rates. In our consumer business, we continue to focus on adding and deepening client relationships and our two growth engines, consumer mortgage, and Laurel Road. We originated $2.6 billion in consumer mortgages in the first quarter, and Laurel Road had a record quarter with originations of $820 million. It's worth noting that our Laurel Road results were accomplished with the federal student loan payment holiday remaining in place.
The outlook for this business remains strong with a new offering for nurses, the largest segment of the healthcare industry planned for May 6, National Nurses Day. We also experienced strong core loan growth in our commercial businesses as we grew our targeted industry verticals. Additionally, we benefited from a 2% increase in C&I line utilization. In the first quarter, we raised over $24 billion in capital for our clients retaining 23% on our balance sheet.