Skip to Content
Stock Analyst Update

UnionBanCal Overtakes KeyCorp in Turnaround Race

California bank strikes gold with its strong deposit base.

Mentioned: ,

In the race to become better banks, California's UnionBanCal (UB) clearly took the lead over KeyCorp (KEY) Thursday, reporting its first-quarter operating earnings rose 26% from the year-earlier period to $141 million.

Many banks' better-than-expected first-quarter earnings probably won't be repeated in coming periods because they've been tied to a strong stock market, but UnionBanCal's earnings appear sustainable, because they're based on the company's core-banking strengths. UnionBanCal looks like a good investment option for investors worried that higher interest rates will take a toll on banks' earnings.

Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.