[Executive Summary & CEO Comments](index=1&type=section&id=Executive%20Summary%20%26%20CEO%20Comments) This section provides an overview of KeyCorp's third-quarter 2025 financial performance and strategic commentary from the Chairman and CEO [Third Quarter 2025 Highlights](index=1&type=section&id=Third%20Quarter%202025%20Highlights) KeyCorp reported strong third-quarter 2025 results with net income of $454 million, or $0.41 per diluted common share, driven by a 17% year-over-year adjusted revenue increase and positive operating leverage | Metric | 3Q25 | 2Q25 | 3Q24 | Year-over-Year Change (3Q25 vs 3Q24) | Quarter-over-Quarter Change (3Q25 vs 2Q25) | | :---------------------------------------------------------------- | :--- | :--- | :--- | :------------------------ | :------------------------ | | Net Income (attributable to Key common shareholders) (millions of dollars) | $454 million | $387 million | $(447) million | Not Meaningful | 17.3% | | Diluted EPS (dollars) | $0.41 | $0.35 | $(0.47) | Not Meaningful | 17.1% | | Revenue (adjusted for securities portfolio repositioning) | $1.9 billion | Not Applicable | Not Applicable | Up 17% | Not Applicable | | Net Interest Income (Quarter-over-Quarter) | Not Applicable | Not Applicable | Not Applicable | Not Applicable | Up 4% | | Net Interest Margin (%) | 2.75% | Not Applicable | Not Applicable | Not Applicable | 9 basis points | | Average Deposits (Quarter-over-Quarter) | Not Applicable | Not Applicable | Not Applicable | Not Applicable | Up 2% | | Total Deposit Costs (Quarter-over-Quarter) (%) | 1.97% | Not Applicable | Not Applicable | Not Applicable | Declined 2 basis points | | Nonperforming Assets (sequentially) | Not Applicable | Not Applicable | Not Applicable | Not Applicable | Decreased 6% | | Net Charge-offs (%) | 42 basis points | Not Applicable | Not Applicable | Not Applicable | Stable | - The third quarter of 2025 included a **$4 million** after-tax benefit related to the updated FDIC special assessment[1](index=1&type=chunk) [Chairman and CEO Comments](index=1&type=section&id=Chairman%20and%20CEO%20Comments) CEO Chris Gorman highlighted strong momentum with adjusted revenue up 17% YoY and over 1,000 basis points of operating leverage, noting continued investments, positive credit quality, and record assets under management - Adjusted revenue **increased 17%** year-over-year, and the company generated over **1,000 basis points** of operating leverage[2](index=2&type=chunk) - Tangible book value per share **grew 4%** sequentially and **14%** year-over-year[2](index=2&type=chunk) - Assets under management reached a **record $68 billion**, **up 11%** year-over-year. Investment banking and debt placement fees recorded the **second best year-to-date performance** in history[3](index=3&type=chunk) - The company is **on track** to deliver **record** revenue in 2025 and **aims to achieve** a **15%** or better return on tangible common equity within the next few years[4](index=4&type=chunk) [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) This section details KeyCorp's overall financial results, including income statement, balance sheet, asset quality, and capital position [Selected Financial Highlights](index=3&type=section&id=Selected%20Financial%20Highlights) KeyCorp's third quarter 2025 financial highlights show significant improvements year-over-year, including a return to net income from a loss, increased diluted EPS, and strong growth in return on average tangible common equity and net interest margin | Metric | 3Q25 | 2Q25 | 3Q24 | Change 3Q25 vs. 2Q25 | Change 3Q25 vs. 3Q24 | | :---------------------------------------------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Income (Loss) from Continuing Operations Attributable to Key Common Shareholders (millions of dollars) | $454 million | $387 million | $(447) million | 17.3 % | Not Meaningful | | Income (Loss) from Continuing Operations Attributable to Key Common Shareholders per Common Share — Assuming Dilution (dollars) | $0.41 | $0.35 | $(0.47) | 17.1 % | Not Meaningful | | Book Value at Period End (dollars) | $15.86 | $15.32 | $14.53 | 3.5 % | 9.2 % | | Return on Average Tangible Common Equity from Continuing Operations (%) | 12.51 % | 11.09 % | (16.98)% | 142 basis points | Not Meaningful | | Return on Average Total Assets from Continuing Operations (%) | 1.04 % | 0.91 % | (0.87)% | 13 basis points | Not Meaningful | | Common Equity Tier 1 Ratio (estimated for 3Q25) (%) | 11.8 % | 11.7 % | 10.8 % | 10 basis points | 100 basis points | | Net Interest Margin (Taxable-Equivalent) from Continuing Operations (%) | 2.75 % | 2.66 % | 2.17 % | 9 basis points | 58 basis points | [Income Statement Highlights](index=3&type=section&id=Income%20Statement%20Highlights) KeyCorp's income statement showed strong revenue growth, primarily driven by a significant increase in net interest income due to lower deposit costs and higher-yielding investments, and a rebound in noninterest income compared to the prior year's securities sale loss [Revenue](index=3&type=section&id=Revenue) Total taxable-equivalent revenue increased significantly year-over-year, primarily due to a rebound from the prior year's securities sale loss and strong growth in net interest income driven by improved funding mix and higher-yielding assets | Metric (millions of dollars) | 3Q25 | 2Q25 | 3Q24 | Change 3Q25 vs. 2Q25 | Change 3Q25 vs. 3Q24 | | :--------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Net Interest Income (Taxable-Equivalent) | $1,193 million | $1,150 million | $964 million | 3.7 % | 23.8 % | | Noninterest Income | $702 million | $690 million | $(269) million | 1.7 % | Not Meaningful | | Total Revenue (Taxable-Equivalent) | $1,895 million | $1,840 million | $695 million | 3.0 % | 172.7 % | - Net interest income **increased by $229 million** (**23.8%**) year-over-year and **$43 million** (**3.7%**) quarter-over-quarter, driven by **lower deposit costs**, **reinvestment into higher-yielding assets**, and an **improved funding mix**[6](index=6&type=chunk)[7](index=7&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Noninterest income saw a substantial year-over-year increase, primarily due to the absence of the prior year's large securities sale loss, growing modestly quarter-over-quarter driven by investment banking and trust services | Metric (millions of dollars) | 3Q25 | 2Q25 | 3Q24 | Change 3Q25 vs. 2Q25 | Change 3Q25 vs. 3Q24 | | :-------------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Trust and Investment Services Income | $150 million | $146 million | $140 million | 2.7 % | 7.1 % | | Investment Banking and Debt Placement Fees | $184 million | $178 million | $171 million | 3.4 % | 7.6 % | | Net Securities Gains (Losses) | $(6) million | $0.00 | $(935) million | Not Meaningful | 99.4 % | | Total Noninterest Income | $702 million | $690 million | $(269) million | 1.7 % | 361.0 % | - The **$971 million** year-over-year **increase** was primarily due to the impact of a **$918 million** loss on the sale of securities as part of the **strategic repositioning of the portfolio** in the third quarter of 2024[8](index=8&type=chunk) - Quarter-over-quarter, noninterest income **increased by $12 million**, driven by a **$6 million** increase in investment banking and debt placement fees, a **$4 million** increase in trust and investment services income, and a **$3 million** increase in commercial mortgage servicing fees[9](index=9&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Total noninterest expense increased both year-over-year and quarter-over-quarter, mainly due to higher personnel expenses driven by incentive compensation and investments in people, partially offset by decreases in other non-personnel expenses | Metric (millions of dollars) | 3Q25 | 2Q25 | 3Q24 | Change 3Q25 vs. 2Q25 | Change 3Q25 vs. 3Q24 | | :-------------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Personnel Expense | $742 million | $705 million | $670 million | 5.2 % | 10.7 % | | Total Noninterest Expense | $1,177 million | $1,154 million | $1,094 million | 2.0 % | 7.4 % | - Year-over-year **increase** of **$83 million** was predominantly driven by a **$72 million** increase in personnel expense, primarily related to **incentive compensation associated with noninterest income growth**, and **continued investments in people**[10](index=10&type=chunk) - Quarter-over-quarter **increase** of **$23 million** was primarily driven by a **$37 million** increase in personnel expense, partially offset by a **$14 million** decrease in non-personnel expenses and a **$5 million** benefit associated with the **updated FDIC special assessment**[11](index=11&type=chunk)[12](index=12&type=chunk) [Balance Sheet Highlights](index=5&type=section&id=Balance%20Sheet%20Highlights) KeyCorp's balance sheet showed stable total loans quarter-over-quarter, with commercial loan growth offsetting consumer loan declines, while average deposits increased, driven by commercial client balances, and the overall cost of deposits decreased [Average Loans](index=5&type=section&id=Average%20Loans) Average total loans remained stable year-over-year but increased slightly quarter-over-quarter, primarily due to growth in commercial and industrial loans offsetting declines in consumer loans | Metric (millions of dollars) | 3Q25 | 2Q25 | 3Q24 | Change 3Q25 vs. 2Q25 | Change 3Q25 vs. 3Q24 | | :--------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Commercial and Industrial | $56,571 million | $55,604 million | $53,121 million | 1.7 % | 6.5 % | | Other Commercial Loans | $18,826 million | $18,708 million | $19,929 million | 0.6 % | (5.5)% | | Total Consumer Loans | $30,830 million | $31,403 million | $33,194 million | (1.8)% | (7.1)% | | Total Loans | $106,227 million | $105,715 million | $106,244 million | 0.5 % | 0.0 % | - Average commercial loans **increased by $2.3 billion** year-over-year and **$1.1 billion** quarter-over-quarter, primarily driven by an **increase** in commercial and industrial loans[14](index=14&type=chunk)[15](index=15&type=chunk) - Average consumer loans **declined by $2.4 billion** year-over-year and **$573 million** quarter-over-quarter, reflective of **broad-based declines** and the **intentional run-off** of low-yielding loans[14](index=14&type=chunk)[15](index=15&type=chunk) [Average Deposits](index=5&type=section&id=Average%20Deposits) Average deposits increased both year-over-year and quarter-over-quarter, driven by growth in consumer and commercial client balances, while the overall cost of deposits declined | Metric (millions of dollars) | 3Q25 | 2Q25 | 3Q24 | Change 3Q25 vs. 2Q25 | Change 3Q25 vs. 3Q24 | | :--------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Non-Time Deposits | $135,135 million | $131,845 million | $129,901 million | 2.5 % | 4.0 % | | Time Deposits | $15,239 million | $15,601 million | $17,870 million | (2.3)% | (14.7)% | | Total Deposits | $150,374 million | $147,446 million | $147,771 million | 2.0 % | 1.8 % | | Cost of Total Deposits (%) | 1.97 % | 1.99 % | 2.39 % | (2) basis points | (42) basis points | - Average deposits **increased by $2.9 billion** quarter-over-quarter, driven by higher commercial client balances[17](index=17&type=chunk) - The overall cost of deposits **declined by 2 basis points** to **1.97%** quarter-over-quarter[17](index=17&type=chunk) [Asset Quality](index=6&type=section&id=Asset%20Quality) KeyCorp's asset quality improved with sequential decreases in nonperforming loans and assets, while the provision for credit losses decreased quarter-over-quarter, reflecting a stable macroeconomic outlook and consistent loan portfolio performance | Metric (millions of dollars) | 3Q25 | 2Q25 | 3Q24 | Change 3Q25 vs. 2Q25 | Change 3Q25 vs. 3Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net Loan Charge-offs | $114 million | $102 million | $154 million | 11.8 % | (26.0)% | | Net Loan Charge-offs to Average Total Loans (%) | 0.42 % | 0.39 % | 0.58 % | Not Applicable | Not Applicable | | Nonperforming Loans at Period End | $658 million | $696 million | $728 million | (5.5)% | (9.6)% | | Nonperforming Assets at Period End | $668 million | $707 million | $741 million | (5.5)% | (9.9)% | | Provision for Credit Losses | $107 million | $138 million | $95 million | (22.5)% | 12.6 % | | Allowance for Credit Losses | $1,736 million | $1,743 million | $1,774 million | (0.4)% | (2.1)% | - A **reserve release of $7 million** during the third quarter of 2025 reflected a **relatively stable macroeconomic outlook** and **consistent loan portfolio performance**[18](index=18&type=chunk) - Nonperforming loans totaled **$658 million**, representing **0.62%** of period-end portfolio loans at September 30, 2025, compared to **0.65%** at June 30, 2025, and **0.69%** at September 30, 2024[20](index=20&type=chunk) [Capital](index=6&type=section&id=Capital) KeyCorp maintained a strong regulatory capital position in 3Q25, with all estimated risk-based capital ratios exceeding "well-capitalized" benchmarks | Capital Ratios | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :---------------------- | :-------- | :-------- | :-------- | | Common Equity Tier 1 (%) | 11.8 % | 11.7 % | 10.8 % | | Tier 1 Risk-Based Capital (%) | 13.5 % | 13.4 % | 12.6 % | | Total Risk-Based Capital (%) | 15.8 % | 15.7 % | 15.1 % | | Tangible Common Equity to Tangible Assets (%) | 8.1 % | 7.8 % | 6.2 % | | Leverage (%) | 10.4 % | 10.3 % | 9.2 % | - Key's **estimated Common Equity Tier 1** and **Tier 1 risk-based capital ratios stood at 11.8% and 13.5%**, respectively, at September 30, 2025[24](index=24&type=chunk) [Common Shares and Dividends](index=7&type=section&id=Common%20Shares%20and%20Dividends) KeyCorp's common shares outstanding increased year-over-year, primarily due to shares issued under employee compensation plans, and the company declared a stable quarterly dividend of $0.205 per common share | Metric (thousands) | 3Q25 | 2Q25 | 3Q24 | Change 3Q25 vs. 2Q25 | Change 3Q25 vs. 3Q24 | | :------------------------------------------------ | :--------- | :--------- | :--------- | :------------------- | :------------------- | | Shares Outstanding at Beginning of Period | 1,112,453 thousand | 1,111,986 thousand | 943,200 thousand | — % | 17.9 % | | Shares Issued Under Employee Compensation Plans (net of cancellations and returns) (thousands) | 499 thousand | 467 thousand | 222 thousand | 6.9 % | 124.8 % | | Shares Outstanding at End of Period | 1,112,952 thousand | 1,112,453 thousand | 991,251 thousand | — % | 12.3 % | - Key declared a **dividend** on July 15, 2025, of **$0.205** per common share, payable in the third quarter of 2025[25](index=25&type=chunk) [Line of Business Results (Overview)](index=7&type=section&id=Line%20of%20Business%20Results%20%28Overview%29) This section provides an overview of the financial performance for KeyCorp's Consumer Bank and Commercial Bank segments [Overview of Business Segments](index=7&type=section&id=Overview%20of%20Business%20Segments) Both Consumer Bank and Commercial Bank segments reported strong revenue and net income growth year-over-year, with the Commercial Bank showing higher revenue and net income contribution | Metric (millions of dollars) | 3Q25 Revenue (Taxable-Equivalent) | 3Q24 Revenue (Taxable-Equivalent) | Year-over-Year Change Revenue (%) | 3Q25 Net Income (millions of dollars) | 3Q24 Net Income (millions of dollars) | Year-over-Year Change Net Income (%) | | :------------------ | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | :---------------------------------- | | Consumer Bank | $935 million | $800 million | 16.9 % | $152 million | $75 million | 102.7 % | | Commercial Bank | $1,014 million | $866 million | 17.1 % | $367 million | $299 million | 22.7 % | | Total | $1,895 million | $695 million | 172.7 % | $490 million | $(411) million | 219.2 % | [Consumer Bank](index=8&type=section&id=Consumer%20Bank) The Consumer Bank segment achieved significant net income growth year-over-year, driven by increased net interest income and noninterest income, despite a decline in average loans and leases, with average deposits increasing primarily in money market deposits | Metric | 3Q25 | 3Q24 | Year-over-Year Change | | :------------------------------------------ | :--- | :--- | :--------- | | Net Income Attributable to Key (millions of dollars) | $152 million | $75 million | 102.7 % | | Taxable-Equivalent Net Interest Income (millions of dollars) | $691 million | $569 million | 21.4 % | | Noninterest Income (millions of dollars) | $244 million | $231 million | 5.6 % | | Average Loans and Leases (millions of dollars) | $35,363 million | $38,332 million | (7.7)% | | Average Deposits (millions of dollars) | $87,692 million | $86,431 million | 1.5 % | | Provision for Credit Losses (millions of dollars) | $40 million | $52 million | (23.1)% | | Assets Under Management at Period End (millions of dollars) | $67,855 million | $61,122 million | 11.0 % | - Average loans and leases **decreased $3.0 billion**, or **7.7%**, from the third quarter of 2024, driven by **broad-based declines across consumer loan categories**[31](index=31&type=chunk) - Average deposits **increased $1.3 billion**, or **1.5%**, from the third quarter of 2024, primarily driven by **growth in money market deposits**[31](index=31&type=chunk) [Commercial Bank](index=9&type=section&id=Commercial%20Bank) The Commercial Bank segment delivered strong net income growth year-over-year, driven by increased net interest income and noninterest income, particularly from investment banking and corporate services, with average loan balances increasing while average deposit balances slightly decreased | Metric | 3Q25 | 3Q24 | Year-over-Year Change | | :------------------------------------------ | :--- | :--- | :--------- | | Net Income Attributable to Key (millions of dollars) | $367 million | $299 million | 22.7 % | | Taxable-Equivalent Net Interest Income (millions of dollars) | $587 million | $460 million | 27.6 % | | Noninterest Income (millions of dollars) | $427 million | $406 million | 5.2 % | | Average Loan and Lease Balances (millions of dollars) | $70,326 million | $67,452 million | 4.3 % | | Average Deposit Balances (millions of dollars) | $58,483 million | $58,696 million | (0.4)% | | Provision for Credit Losses (millions of dollars) | $68 million | $41 million | 65.9 % | - Average loan and lease balances **increased $2.9 billion**, or **4.3%**, compared to the third quarter of 2024, driven by an **increase** in commercial and industrial loans[34](index=34&type=chunk) - Noninterest income **increased $21 million** compared to the third quarter of 2024, primarily driven by an **increase** in investment banking and debt placement fees and corporate services income[34](index=34&type=chunk) [Company Information & Forward-Looking Statements](index=10&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) This section provides an overview of KeyCorp's business and a cautionary statement regarding forward-looking information [Company Overview](index=10&type=section&id=Company%20Overview) KeyCorp, headquartered in Cleveland, Ohio, is one of the largest bank-based financial services companies in the U.S., with approximately $187 billion in assets as of September 30, 2025 - KeyCorp has assets of approximately **$187 billion** at September 30, 2025[36](index=36&type=chunk) - Key provides **deposit, lending, cash management, and investment services** to individuals and businesses in 15 states through KeyBank National Association and **corporate and investment banking products** via KeyBanc Capital Markets[37](index=37&type=chunk) [Forward-Looking Statements](index=11&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to various assumptions, risks, and uncertainties, which may cause actual results to differ materially from expectations, and KeyCorp disclaims any obligation to update these statements - Forward-looking statements are subject to assumptions, risks and uncertainties, many of which are outside of KeyCorp's control, and actual results may **differ materially**[40](index=40&type=chunk) - Factors that could cause Key's actual results to differ are found in KeyCorp's Form 10-K for the year ended December 31, 2024, and subsequent SEC filings, including **adverse changes in credit quality**, **declining asset prices**, **economic worsening**, **regulation**, and **interest rate changes**[40](index=40&type=chunk) [Financial Supplement](index=12&type=section&id=Financial%20Supplement) This section provides detailed supplementary financial data, including reconciliations, statements, and asset quality statistics [Table of Contents](index=12&type=section&id=Table%20of%20Contents) The financial supplement provides detailed financial information, including basis of presentation, financial highlights, GAAP to Non-GAAP reconciliations, consolidated financial statements, detailed expense and loan data, asset quality statistics, and selected items impacting earnings [Basis of Presentation](index=13&type=section&id=Basis%20of%20Presentation) This section clarifies the use of GAAP and non-GAAP financial measures, the presentation of annualized data, taxable equivalent adjustments for interest income, and earnings per share equivalent calculations to aid in financial analysis and comparability - Non-GAAP financial measures are used where management believes it to be helpful in understanding Key's results of operations or financial position, with comparable GAAP measures and reconciliations provided[45](index=45&type=chunk) - Interest income on tax-exempt earning assets is adjusted to a taxable-equivalent basis to facilitate comparison of results to peers[48](index=48&type=chunk) [Detailed Financial Highlights](index=14&type=section&id=Detailed%20Financial%20Highlights) This section provides comprehensive quarterly and year-to-date financial highlights, including detailed income statement, balance sheet, and performance ratios, offering a granular view of KeyCorp's financial position and operational results | Metric (Three Months Ended) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :---------------------------------------------------------------- | :-------- | :-------- | :-------- | | Net Interest Income (Taxable-Equivalent, millions of dollars) | $1,193 million | $1,150 million | $964 million | | Noninterest Income (millions of dollars) | $702 million | $690 million | $(269) million | | Total Revenue (Taxable-Equivalent, millions of dollars) | $1,895 million | $1,840 million | $695 million | | Provision for Credit Losses (millions of dollars) | $107 million | $138 million | $95 million | | Noninterest Expense (millions of dollars) | $1,177 million | $1,154 million | $1,094 million | | Net Income (Loss) Attributable to Key Common Shareholders (millions of dollars) | $453 million | $389 million | $(446) million | | Diluted EPS (dollars) | $0.41 | $0.35 | $(0.47) | | Return on Average Tangible Common Equity (%) | 12.51 % | 11.09 % | (16.98)% | | Net Interest Margin (Taxable-Equivalent) (%) | 2.75 % | 2.66 % | 2.17 % | | Tangible Book Value at Period End (dollars) | $13.38 | $12.83 | $11.72 | | Common Equity Tier 1 (%) | 11.8 % | 11.7 % | 10.8 % | | Net Loan Charge-offs (millions of dollars) | $114 million | $102 million | $154 million | | Nonperforming Loans to Period-End Portfolio Loans (%) | 0.62 % | 0.65 % | 0.69 % | | Metric (Nine Months Ended) | 9/30/2025 | 9/30/2024 | | :---------------------------------------------------------------- | :-------- | :-------- | | Net Interest Income (Taxable-Equivalent, millions of dollars) | $3,448 million | $2,749 million | | Noninterest Income (millions of dollars) | $2,060 million | $1,005 million | | Total Revenue (Taxable-Equivalent, millions of dollars) | $5,508 million | $3,754 million | | Provision for Credit Losses (millions of dollars) | $363 million | $296 million | | Noninterest Expense (millions of dollars) | $3,462 million | $3,316 million | | Net Income (Loss) Attributable to Key Common Shareholders (millions of dollars) | $1,211 million | $(25) million | | Diluted EPS (dollars) | $1.09 | $(0.03) | | Return on Average Tangible Common Equity (%) | 11.63 % | (0.37)% | | Net Interest Margin (Taxable-Equivalent) (%) | 2.66 % | 2.08 % | | Net Loan Charge-offs (millions of dollars) | $326 million | $326 million | [GAAP to Non-GAAP Reconciliations](index=16&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations for various non-GAAP financial measures, including tangible common equity, return on average tangible common equity, pre-provision net revenue, cash efficiency ratio, adjusted revenue, adjusted noninterest expense, and adjusted net income - Non-GAAP measures like tangible common equity and adjusted return on average tangible common equity assist investors in analyzing Key's capital position and ongoing financial performance by excluding intangible assets, preferred stock, and significant or unusual items[56](index=56&type=chunk) - Pre-provision net revenue and adjusted pre-provision net revenue are used to analyze results by eliminating the effects of the provision for credit losses and adjusting for significant or unusual items[57](index=57&type=chunk) | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :---------------------------------------------------------------- | :-------- | :-------- | :-------- | | Tangible Common Equity (non-GAAP, millions of dollars) | $14,891 million | $14,268 million | $11,620 million | | Tangible Common Equity to Tangible Assets Ratio (non-GAAP) (%) | 8.06 % | 7.81 % | 6.21 % | | Return on Average Tangible Common Equity from Continuing Operations (non-GAAP) (%) | 12.51 % | 11.09 % | (16.98)% | | Adjusted Pre-Provision Net Revenue from Continuing Operations (non-GAAP, millions of dollars) | $713 million | $686 million | $513 million | | Cash Efficiency Ratio (non-GAAP) (%) | 61.8 % | 62.4 % | 156.4 % | | Adjusted Cash Efficiency Ratio (non-GAAP) (%) | 62.1 % | 62.4 % | 67.8 % | | Adjusted Income (Loss) Available from Continuing Operations Attributable to Key Common Shareholders (non-GAAP, millions of dollars) | $450 million | $387 million | $285 million | | Diluted EPS from Continuing Operations Attributable to Key Common Shareholders - Adjusted (non-GAAP) (dollars) | $0.41 | $0.35 | $0.30 | [Consolidated Balance Sheets](index=19&type=section&id=Consolidated%20Balance%20Sheets) KeyCorp's consolidated balance sheet at September 30, 2025, shows total assets of $187.4 billion, with loans at $105.9 billion and total deposits at $150.8 billion, and Key shareholders' equity stood at $20.1 billion | Metric (millions of dollars) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | | Total Assets | $187,409 million | $185,499 million | $189,763 million | | Loans | $105,902 million | $106,389 million | $105,346 million | | Loans Held for Sale | $998 million | $530 million | $1,058 million | | Securities Available for Sale | $40,456 million | $40,669 million | $34,169 million | | Total Deposits | $150,765 million | $146,905 million | $150,353 million | | Long-Term Debt | $10,917 million | $12,063 million | $15,677 million | | Key Shareholders' Equity | $20,102 million | $19,484 million | $16,852 million | | Common Shares Outstanding (thousands) | 1,112,952 thousand | 1,112,453 thousand | 991,251 thousand | [Consolidated Statements of Income](index=20&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income for 3Q25 show net interest income of $1,184 million and total noninterest income of $702 million, resulting in net income attributable to Key common shareholders of $453 million, or $0.41 per diluted common share | Metric (millions of dollars, except per share amounts) | 3Q25 | 2Q25 | 3Q24 | | :---------------------------------------------------------------- | :--- | :--- | :--- | | Total Interest Income | $2,131 million | $2,107 million | $2,175 million | | Total Interest Expense | $947 million | $966 million | $1,223 million | | Net Interest Income | $1,184 million | $1,141 million | $952 million | | Provision for Credit Losses | $107 million | $138 million | $95 million | | Total Noninterest Income | $702 million | $690 million | $(2

Core Insights - KeyCorp reported a net income of $454 million for Q3 2025, a significant increase from a net loss of $(447) million in Q3 2024, reflecting strong operational performance and effective management strategies [1][5][39] - Adjusted revenue for Q3 2025 was $1.9 billion, up 17% year-over-year, driven by net interest income growth and a 8% increase in adjusted noninterest income [2][6] - The company achieved a net interest margin of 2.75%, an increase of 58 basis points compared to Q3 2024, attributed to lower deposit costs and a favorable shift in the balance sheet composition [6][7] Financial Performance - Net interest income for Q3 2025 was $1.19 billion, up 23.8% year-over-year, while total revenue increased by 172.7% compared to Q3 2024 [6][30] - Noninterest income reached $702 million, a 361% increase from the previous year, primarily due to the absence of significant losses on securities sales that occurred in Q3 2024 [8][9] - Total noninterest expense was $1.18 billion, reflecting a 7.4% increase year-over-year, mainly driven by higher personnel expenses related to incentive compensation [10][11] Asset Quality and Risk Management - Nonperforming assets decreased by 9.9% year-over-year, indicating improved credit quality, with net charge-offs remaining stable at 42 basis points [1][17] - The allowance for loan and lease losses was $1.44 billion, representing 219% of nonperforming loans, demonstrating a strong reserve position [17][19] Capital Position - KeyCorp's Common Equity Tier 1 ratio stood at 11.8% as of September 30, 2025, reflecting a solid capital position above regulatory requirements [21][23] - The company maintained a tangible common equity to tangible assets ratio of 8.1%, indicating strong capital management [21] Business Segment Performance - The Consumer Bank segment generated $935 million in revenue, a 16.9% increase year-over-year, while the Commercial Bank segment reported $1.01 billion, up 17.1% [25][39] - Investment banking and debt placement fees contributed significantly to revenue growth, with a notable increase in M&A pipelines [3][39]

KeyCorp (NYSE:KEY) will release earnings results for the third quarter, before the opening bell on Thursday, Oct. 16.Analysts expect the Cleveland, Ohio-based company to report quarterly earnings at 38 cents per share, versus a year-ago loss of 47 cents per share. KeyCorp projects quarterly revenue of $1.88 billion, compared to $695 million a year earlier, according to data from Benzinga Pro.On July 22, KeyCorp posted better-than-expected second-quarter sales.KeyCorp shares rose 2.6% to close at $18.01 on T ...

Core Viewpoint - Analysts expect KeyCorp to report quarterly earnings of $0.38 per share, reflecting a year-over-year increase of 26.7%, with revenues projected at $1.88 billion, up 17.5% from the previous year [1] Earnings Projections - The consensus EPS estimate has been revised upward by 2.2% in the past 30 days, indicating a reassessment of initial estimates by analysts [1][2] Key Metrics Estimates - The 'Cash Efficiency Ratio (non-GAAP)' is expected to reach 62.7%, a significant improvement from the previous year's 156.4% [4] - The 'Average balance - Total earning assets' is estimated at $170.99 billion, slightly down from $171.99 billion year-over-year [4] - Analysts predict 'Book value at period end' to be $15.55, up from $14.53 a year ago [4] Capital Ratios - The 'Leverage Ratio' is projected at 10.3%, an increase from 9.2% reported in the same quarter last year [5] - The 'Tier 1 Risk-based Capital Ratio' is expected to be 13.4%, compared to 12.6% in the previous year [5] - The 'Total Risk-based Capital Ratio' is estimated to reach 15.6%, up from 15.1% year-over-year [6] Nonperforming Assets - 'Nonperforming assets - Total' is forecasted at $728.55 million, down from $741.00 million a year ago [6] - 'Nonperforming loans at period-end' are expected to be $718.01 million, compared to $728.00 million reported in the same quarter last year [6] Income Estimates - 'Corporate services income' is estimated at $70.48 million, up from $69.00 million year-over-year [7] - 'Trust and investment services income' is projected to reach $149.38 million, compared to $140.00 million last year [7] - 'Investment banking and debt placement fees' are expected to be $181.28 million, an increase from $171.00 million in the same quarter last year [8] - 'Service charges on deposit accounts' are estimated at $72.62 million, up from $67.00 million year-over-year [8] Stock Performance - Over the past month, KeyCorp shares have returned -9.8%, contrasting with the Zacks S&P 500 composite's +0.4% change [8]

Core Viewpoint - KeyCorp is expected to report solid third-quarter 2025 results on October 16, with notable improvements in lending activities and fee income from various segments [1][11]. Loan Demand and Balances - Average loan balance for KeyCorp is projected at $106.2 billion, showing a slight year-over-year decline [2] - Demand for commercial and industrial (C&I) loans, which make up about 50% of average loan balances, was strong in the first two months of the quarter [1] - Consumer loans, accounting for nearly 31% of average loan balances, also maintained decent demand [1] Net Interest Income (NII) - The consensus estimate for NII is $1.18 billion, reflecting a year-over-year increase of 22.4% [4] - The projected NII is $1.17 billion, indicating a 21% rise from the previous year [4] - The Federal Reserve's recent 25-basis-point rate cut is not expected to negatively impact NII due to stable rates during most of the quarter [3] Non-Interest Income - Non-interest income is anticipated to benefit from improved mortgage banking income, with commercial mortgage servicing fees estimated at $73.6 million (1% increase) and consumer mortgage income at $15.8 million (31.8% increase) [6] - Total non-interest income is estimated at $704.5 million, indicating a year-over-year increase of 5.5% [10] Trading and Investment Banking - Increased client activity and market volatility are expected to positively influence KeyCorp's trading business [8] - Investment banking and debt placement fees are estimated at $181.3 million, reflecting a 6% rise [8] Expenses and Asset Quality - Total non-interest expenses are projected to be $1.2 billion, representing a 9.6% year-over-year increase [12] - Provision for credit losses is estimated at $105.7 million, indicating an 11.3% rise year over year [13] - Non-performing assets (NPAs) are expected to decline by 1.7% to $728.6 million [14] Earnings Expectations - The consensus estimate for KeyCorp's earnings is 38 cents per share, a 26.7% increase from the prior year [16] - Sales are expected to reach $1.88 billion, indicating a rise of 17.3% [16] Earnings Prediction Model - KeyCorp has a positive Earnings ESP of +2.64% and a Zacks Rank of 3, suggesting a high likelihood of beating the consensus estimate [15]

ROSWELL, Ga.--(BUSINESS WIRE)-- #RCM--KeyBank selects MediStreams' payment and remittance technology for its new payment management platform. ...

Core Insights - The article highlights that several S&P 500 companies are expected to achieve significant revenue growth in the third quarter, surpassing even high-performing stocks like Nvidia and Palantir [2][3]. Revenue Growth Expectations - Eight S&P 500 stocks, including Expand Energy, KeyCorp, and Robinhood Markets, are projected to post over 60% revenue growth in the upcoming third-quarter earnings season [2]. - Expand Energy is anticipated to see a remarkable revenue surge of 402% to $2 billion, largely due to its acquisition of Southwestern Energy [4]. - KeyCorp's revenue is expected to jump 170% to $1.9 billion, with a projected 24% increase in EPS for 2025 [7]. - Robinhood Markets is forecasted to achieve an 83% revenue increase to $1.2 billion in the third quarter of 2025 [6]. Comparative Performance - The expected revenue growth for Expand Energy, KeyCorp, and Robinhood significantly outpaces the anticipated growth of 55.6% for Nvidia and 50.5% for Palantir [3]. - Despite the high revenue growth projections, KeyCorp's stock has only risen 8% this year, indicating a potential disconnect between growth expectations and market performance [7]. Summary of Top Growth Companies - The following companies are expected to have the highest revenue growth in Q3 2025: - Expand Energy (EXE): 402.1% - KeyCorp (KEY): 170.8% - Robinhood Markets (HOOD): 82.6% - First Solar (FSLR): 75.1% - Bunge Global (BG): 74.0% - Amcor (AMCR): 71.5% - TKO Group (TKO): 65.2% - Oneok (OKE): 63.6% [8].

Core Insights - KeyCorp has a market capitalization of $20.7 billion and operates as the holding company for KeyBank National Association, providing a wide range of retail and commercial banking services across the United States [1] Financial Performance - KeyCorp is set to announce its fiscal Q3 2025 results on October 16, with analysts predicting an EPS of $0.38, representing a 26.7% increase from $0.30 in the same quarter last year [2] - For fiscal 2025, analysts expect an EPS of $1.44, which indicates a 24.1% growth from $1.16 in fiscal 2024 [3] Stock Performance - Over the past 52 weeks, KeyCorp shares have increased by 13.9%, underperforming the S&P 500 Index's gain of 16.2% and the Financial Select Sector SPDR Fund's return of 19.3% [4] - Following stronger-than-expected Q2 2025 results, KeyCorp shares rose by 2.4%, with an EPS of $0.35, marking a 40% year-over-year increase and total revenues of $1.8 billion, a 20.9% rise [5] Analyst Ratings - The consensus view on KeyCorp stock is cautiously optimistic, with a "Moderate Buy" rating from analysts; 10 suggest a "Strong Buy," 2 a "Moderate Buy," and 12 have "Strong Sells" [6] - The average analyst price target for KeyCorp is $20.07, indicating a potential upside of 6.8% from current levels [6]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding investors in selecting stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score leverages price trends and earnings estimate changes to identify favorable investment timings in high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price trends due to negative earnings outlooks [10] Company Spotlight: KeyCorp - KeyCorp, based in Cleveland, OH, offers a range of financial services including banking and investment management across 15 states [11] - Currently rated 3 (Hold) with a VGM Score of B and a Value Style Score of B, indicating attractive valuation metrics [11][12] - KeyCorp's forward P/E ratio is 13.05, and it has seen upward revisions in earnings estimates, with a Zacks Consensus Estimate of $1.44 per share for fiscal 2025 [12]

Economic Outlook - The Federal Reserve's reduction of interest rates and resilient economic growth is creating a more favorable outlook for the banking sector [1] - Lower borrowing costs are expected to stimulate loan demand and consumer spending, while steady economic expansion will support credit quality and profitability [1] Investment Opportunities - Several S&P 500 banks, including KeyCorp, Bank of Hawaii, and Comerica, are highlighted as appealing investment opportunities due to their solid dividend yields [2] - These banks have attractive income potential and solid fundamentals, making them worthy of investor attention [2] Stock Selection Criteria - The selection of these banks was based on a Zacks Stocks Screener, identifying stocks with a dividend yield exceeding 4% and a Zacks Rank of 2 (Buy) or 3 (Hold) [3] - All three bank stocks have risen more than 10% in the past year, indicating growing market confidence in their earnings power and balance-sheet resilience [3] KeyCorp Overview - KeyCorp, a leading regional bank, offers a diverse range of financial products and services [6] - The bank is well-positioned to benefit from solid loans and deposit balances, lower interest rates, and a robust balance sheet, with expected top-line growth supported by loan demand and Fed rate cuts [7][10] - KeyCorp has a dividend yield of 4.4%, with a payout ratio of 60% and a Zacks Rank of 3 [10] Bank of Hawaii Overview - Bank of Hawaii provides a broad array of financial services in Hawaii and the Pacific Islands [11] - Revenue growth is driven by rising net interest income (NII) and fee income, with expectations for continued increases due to balance sheet actions and Fed rate cuts [12][13] - The bank has a dividend yield of 4.2%, with a payout ratio of 73% and a Zacks Rank of 2 [13] Comerica Overview - Comerica operates in key markets including Texas, California, and Michigan, focusing on financial services [14] - The bank's income generation is supported by a robust loan pipeline, Fed rate cuts, and strong fee income, with a focus on operational efficiency and strategic growth [15][16] - Comerica has a dividend yield of 4.1%, with a payout ratio of 54% and a Zacks Rank of 3 [16] Final Thoughts - Dividend-paying bank stocks like KeyCorp, Bank of Hawaii, and Comerica offer a combination of attractive income and potential growth in a favorable economic environment [17] - With yields above 4%, solid balance sheets, and strategic initiatives, these banks are well-positioned to reward shareholders [17]