Financial Performance - KeyCorp's EPS reached $0.35, a 6% increase QoQ and a 40% increase YoY[6] - Revenue increased to $1.84 billion, up 4% QoQ and 21% YoY[6] - Net interest income (TE) was $1.15 billion, reflecting a 4.1% increase QoQ and a 27.9% increase YoY[6] - Noninterest income grew to $690 million, up 3.3% QoQ and 10% YoY[6] Balance Sheet Strength - Common Equity Tier 1 (CET1) ratio stood at 11.7%, up approximately 120 bps YoY[3] - Marked Common Equity Tier 1 reached 10%, up approximately 270 bps YoY[3] - Tangible book value per common share increased by 26.7% YoY to $12.83[6] Loan and Deposit Portfolio - Average loans increased by $1.4 billion QoQ[10] - Commercial loans grew by 2.7% QoQ, driven by C&I loans[10] - Average deposits decreased slightly by 0.7% QoQ, but client deposits increased by 2% YoY[13] Credit Quality - Net charge-offs (NCOs) to average loans were 39 bps, down 4 bps QoQ[3] - Nonperforming assets (NPAs) to loans plus OREO were 66 bps, down 1 bp QoQ[3] Outlook - KeyCorp projects ending loans to be up approximately 2% vs YE 2024[35] - Net interest income (TE) is expected to increase by 20-22%[35]

What's Next for KeyCorp? While KeyCorp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? KeyCorp (KEY) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +2.94%. A quarter ago, it was expected that this company wo ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Performance Overview](index=1&type=section&id=2Q25%20Performance%20Overview) KeyCorp's Q2 2025 featured significant year-over-year net income growth, a 21% revenue increase, and improved credit quality Key Financial Highlights (2Q25 vs. Prior Periods) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net Income (attributable to common shareholders) | $387M | $370M | $237M | 4.6% | 63.3% | | Diluted EPS | $0.35 | $0.33 | $0.25 | 6.1% | 40.0% | | Revenue | $1.8B | - | - | - | 21% | | Net Interest Income (NII) | - | - | - | 4% QoQ | - | | Net Interest Margin (NIM) | - | - | - | 8 bps QoQ | - | | Period-end Loans | Up $1.6B | - | - | Up $1.6B QoQ | - | | Commercial Loans (YTD) | Up $3.3B | - | - | - | 5% YTD | | Net Charge-offs | Down 8% | - | - | Down 8% QoQ | - | - Revenue increased **21% year-over-year**, driven by net interest income tailwinds and **10% growth** in noninterest income, while expenses grew **7%**[2](index=2&type=chunk) - Credit quality improved for the **sixth consecutive quarter**[2](index=2&type=chunk) - Client deposits and relationship households increased **2% year-over-year**, with deposit costs managed **below 2%**[3](index=3&type=chunk) - Assets under management reached a **record $64 billion**[3](index=3&type=chunk) - KeyCorp plans to increase front-line bankers by **10% in 2025**[4](index=4&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) [Income Statement Highlights](index=2&type=section&id=Income%20Statement%20Highlights) KeyCorp's Q2 2025 income statement showed robust growth in total revenue, driven by increases in both net interest and noninterest income Consolidated Income Statement Highlights (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :---------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Net interest income (TE) | $1,150 | $1,105 | $899 | 4.1% | 27.9% | | Noninterest income | $690 | $668 | $627 | 3.3% | 10.0% | | Total revenue (TE) | $1,840 | $1,773 | $1,526 | 3.8% | 20.6% | | Noninterest expense | $1,154 | $1,131 | $1,079 | 2.0% | 7.0% | [Net Interest Income (NII) and Net Interest Margin (NIM)](index=2&type=section&id=Net%20Interest%20Income%20(NII)%20and%20Net%20Interest%20Margin%20(NIM)) Taxable-equivalent net interest income and margin increased due to lower deposit costs and reinvestment into higher-yielding assets Net Interest Income and Margin (TE) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :---------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Net interest income (TE) | $1,150M | $1,105M | $899M | 4.1% | 27.9% | | Net interest margin (TE) | 2.66% | 2.58% | 2.04% | 8 bps | 62 bps | - Year-over-year increase in NII and NIM reflects **lower deposit costs**, reinvestment of maturing low-yielding securities, and an improved funding mix[6](index=6&type=chunk) - Quarter-over-quarter increase in NII and NIM was driven by **declining funding costs**, redeployment of low-yielding investments, and growth in commercial loans[7](index=7&type=chunk) [Noninterest Income Breakdown](index=3&type=section&id=Noninterest%20Income%20Breakdown) Noninterest income grew year-over-year and quarter-over-quarter, led by strong investment banking and corporate services income Noninterest Income (Dollars in millions) | Category | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :-------------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Trust and investment services income | $146 | $139 | $139 | 5.0% | 5.0% | | Investment banking and debt placement fees | $178 | $175 | $126 | 1.7% | 41.3% | | Cards and payments income | $85 | $82 | $85 | 3.7% | — | | Service charges on deposit accounts | $73 | $69 | $66 | 5.8% | 10.6% | | Corporate services income | $76 | $65 | $68 | 16.9% | 11.8% | | Commercial mortgage servicing fees | $70 | $76 | $61 | (7.9)% | 14.8% | | Total noninterest income | $690 | $668 | $627 | 3.3% | 10.0% | - Year-over-year increase of **$63 million** was driven by a **$52 million increase** in investment banking and debt placement fees[8](index=8&type=chunk) - Quarter-over-quarter increase of **$22 million** was driven by an **$11 million increase** in corporate services income and a **$7 million increase** in trust and investment services income[9](index=9&type=chunk) [Noninterest Expense Breakdown](index=3&type=section&id=Noninterest%20Expense%20Breakdown) Noninterest expense increased due to higher personnel costs from incentive compensation and investments in people and technology Noninterest Expense (Dollars in millions) | Category | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :-------------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Personnel expense | $705 | $680 | $636 | 3.7% | 10.8% | | Business services and professional fees | $48 | $40 | $37 | 20.0% | 29.7% | | Computer processing | $107 | $107 | $101 | — | 5.9% | | Total noninterest expense | $1,154 | $1,131 | $1,079 | 2.0% | 7.0% | - Year-over-year increase of **$75 million** was primarily due to a **$69 million increase** in personnel expense and higher technology-related expenses[10](index=10&type=chunk) - Quarter-over-quarter increase of **$23 million** was primarily due to a **$25 million increase** in personnel expense and higher technology-related fees[11](index=11&type=chunk) [Balance Sheet Highlights](index=4&type=section&id=Balance%20Sheet%20Highlights) The balance sheet showed increased average loans driven by commercial growth, while average deposits slightly decreased [Average Loans](index=4&type=section&id=Average%20Loans) Average loans grew quarter-over-quarter from commercial and industrial loans but decreased year-over-year from declines in other categories Average Loans (Dollars in millions) | Category | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :---------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Commercial and industrial | $55,604 | $53,746 | $54,599 | 3.5% | 1.8% | | Total consumer loans | $31,403 | $31,989 | $33,862 | (1.8)% | (7.3)% | | Total loans | $105,715 | $104,354 | $108,961 | 1.3% | (3.0)% | - Compared to 1Q25, average loans increased by **$1.4 billion**, driven by a **$1.9 billion increase** in average commercial loans[14](index=14&type=chunk) - Compared to 2Q24, average loans decreased by **$3.2 billion**, with commercial loans declining by **$787 million** and consumer loans by **$2.5 billion**[13](index=13&type=chunk) [Average Deposits](index=4&type=section&id=Average%20Deposits) Average deposits decreased slightly quarter-over-quarter due to a reduction in higher-cost balances, lowering the overall cost of deposits Average Deposits (Dollars in millions) | Category | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :---------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Non-time deposits | $131,845 | $131,917 | $128,161 | (0.1)% | 2.9% | | Time deposits | $15,601 | $16,625 | $16,019 | (6.2)% | (2.6)% | | Total deposits | $147,446 | $148,542 | $144,180 | (0.7)% | 2.3% | | Cost of total deposits | 1.99% | 2.06% | 2.28% | N/A | N/A | - Compared to 1Q25, average deposits decreased by **$1.1 billion**, driven by a reduction in higher-cost commercial client balances and retail CDs[16](index=16&type=chunk) - The overall cost of deposits declined by **7 basis points to 1.99%** quarter-over-quarter[16](index=16&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) Asset quality metrics were mixed, with an increased provision for credit losses reflecting loan growth and a deteriorating macroeconomic outlook Asset Quality Metrics (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net loan charge-offs | $102 | $110 | $91 | (7.3)% | 12.1% | | Net loan charge-offs to average total loans | 0.39% | 0.43% | 0.34% | N/A | N/A | | Nonperforming loans at period end | $696 | $686 | $710 | 1.5% | (2.0)% | | Nonperforming assets at period end | $707 | $700 | $727 | 1.0% | (2.8)% | | Allowance for credit losses | $1,743 | $1,707 | $1,833 | 2.1% | (4.9)% | | Provision for credit losses | $138 | $118 | $100 | 16.9% | 38.0% | - The increase in provision for credit losses reflects a **larger reserve build** and higher net loan charge-offs compared to the prior year[17](index=17&type=chunk) - Key added **$36 million** to its allowance for credit losses in Q2 2025 due to loan growth, changes in loan mix, and a deteriorating macroeconomic outlook[17](index=17&type=chunk) - Nonperforming loans as a percentage of period-end portfolio loans remained **stable at 0.65%** compared to 1Q25[19](index=19&type=chunk) [Capital](index=5&type=section&id=Capital) KeyCorp maintained a strong regulatory capital position, with all risk-based capital ratios exceeding 'well-capitalized' benchmarks Capital Ratios | Ratio | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :-------------------------- | :-------- | :-------- | :-------- | | Common Equity Tier 1 | 11.7% | 11.8% | 10.5% | | Tier 1 risk-based capital | 13.4% | 13.5% | 12.2% | | Total risk-based capital | 15.7% | 16.0% | 14.7% | | Tangible common equity to tangible assets | 7.8% | 7.4% | 5.2% | | Leverage | 10.3% | 10.2% | 9.1% | - Key's estimated risk-based capital ratios continued to **exceed all 'well-capitalized' regulatory benchmarks** at June 30, 2025[20](index=20&type=chunk) [Shareholder Information](index=6&type=section&id=Shareholder%20Information) Common shares outstanding increased year-over-year, and the company declared a consistent quarterly dividend of $0.205 per share Summary of Changes in Common Shares Outstanding (in thousands) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :-------------------------------------------------- | :------- | :------- | :------- | :------------------- | :------------------- | | Shares outstanding at beginning of period | 1,111,986 | 1,106,786 | 942,776 | 0.5% | 17.9% | | Shares issued under employee compensation plans (net) | 467 | 5,200 | 424 | (91.0)% | 10.1% | | Shares outstanding at end of period | 1,112,453 | 1,111,986 | 943,200 | — % | 17.9% | - Key declared a dividend of **$0.205 per common share** in May 2025, payable in the second quarter of 2025[24](index=24&type=chunk) [Line of Business Results](index=6&type=section&id=Line%20of%20Business%20Results) [Major Business Segments Overview](index=6&type=section&id=Major%20Business%20Segments%20Overview) Both Consumer and Commercial Bank segments showed strong year-over-year growth in revenue and net income Major Business Segments (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | **Revenue from continuing operations (TE):** | | | | | | | Consumer Bank | $912 | $871 | $758 | 4.7% | 20.3% | | Commercial Bank | $974 | $942 | $768 | 3.4% | 26.8% | | Total | $1,840 | $1,773 | $1,526 | 3.8% | 20.6% | | **Income (loss) from continuing operations attributable to Key:** | | | | | | | Consumer Bank | $122 | $116 | $59 | 5.2% | 106.8% | | Commercial Bank | $349 | $321 | $206 | 8.7% | 69.4% | | Total | $423 | $406 | $273 | 4.2% | 54.9% | [Consumer Bank](index=7&type=section&id=Consumer%20Bank) The Consumer Bank's net income rose significantly year-over-year, driven by strong growth in net interest income Consumer Bank Summary of Operations (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net income attributable to Key | $122 | $116 | $59 | 5.2% | 106.8% | | Total revenue (TE) | $912 | $871 | $758 | 4.7% | 20.3% | | Net interest income (TE) | $676 | $646 | $523 | 4.6% | 29.3% | | Noninterest income | $236 | $225 | $235 | 4.9% | 0.4% | | Provision for credit losses | $55 | $43 | $33 | 27.9% | 66.7% | | Average loans and leases | $36,137 | $36,819 | $39,174 | (1.9)% | (7.8)% | | Average deposits | $88,002 | $88,306 | $85,397 | (0.3)% | 3.1% | | Assets under management at period end | $64,244 | $61,053 | $57,602 | 5.2% | 11.5% | - Net income **more than doubled year-over-year**, primarily due to a **29.3% increase** in taxable-equivalent net interest income[30](index=30&type=chunk) - Average deposits increased by **$2.6 billion (3.1%)** year-over-year, driven by growth in money market and demand deposits[30](index=30&type=chunk) - Provision for credit losses increased by **$22 million** year-over-year, reflecting changes in reserve levels due to economic outlook deterioration[30](index=30&type=chunk) [Commercial Bank](index=8&type=section&id=Commercial%20Bank) The Commercial Bank delivered strong net income growth, supported by increased net interest and noninterest income Commercial Bank Summary of Operations (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net income attributable to Key | $349 | $321 | $206 | 8.7% | 69.4% | | Total revenue (TE) | $974 | $942 | $768 | 3.4% | 26.8% | | Net interest income (TE) | $556 | $534 | $411 | 4.1% | 35.3% | | Noninterest income | $418 | $408 | $357 | 2.5% | 17.1% | | Provision for credit losses | $84 | $75 | $87 | 12.0% | (3.4)% | | Average loans and leases | $69,087 | $67,056 | $69,248 | 3.0% | (0.2)% | | Average deposits | $55,886 | $57,436 | $57,360 | (2.7)% | (2.6)% | - Net income increased by **69.4% year-over-year**, driven by a **35.3% increase** in taxable-equivalent net interest income[34](index=34&type=chunk) - Noninterest income increased by **$61 million** year-over-year, primarily due to higher investment banking and commercial mortgage servicing fees[34](index=34&type=chunk) - Average deposit balances decreased by **$1.5 billion** year-over-year, mainly due to a reduction in higher-cost client balances[34](index=34&type=chunk) [Company Information](index=9&type=section&id=Company%20Information) KeyCorp is a major US bank-based financial services company with approximately $185 billion in assets - KeyCorp's roots trace back **200 years** to Albany, New York, and it is headquartered in Cleveland, Ohio[36](index=36&type=chunk) - Key is one of the nation's largest bank-based financial services companies, with approximately **$185 billion in assets** at June 30, 2025[36](index=36&type=chunk) - The company provides services to individuals and businesses in **15 states** through KeyBank National Association and KeyBanc Capital Markets[37](index=37&type=chunk) [Additional Information](index=10&type=section&id=Additional%20Information) This section provides contact information, investor relations details, and disclosures regarding forward-looking statements - The earnings release contains **forward-looking statements** subject to assumptions, risks, and uncertainties[40](index=40&type=chunk) - A live Internet broadcast of KeyCorp's conference call is accessible via the **Investor Relations section** of their website[41](index=41&type=chunk) [Financial Supplement](index=11&type=section&id=Financial%20Supplement) [Basis of Presentation](index=12&type=section&id=Basis%20of%20Presentation) This section clarifies the use of GAAP and non-GAAP financial measures and defines key calculation methodologies - **Non-GAAP financial measures** are used to help understand Key's results and are reconciled to comparable GAAP measures[46](index=46&type=chunk) - **Forward-looking non-GAAP financial measures** cannot be reconciled to GAAP due to the complexity of forecasting[47](index=47&type=chunk) - **Taxable-equivalent adjustments** are applied to tax-exempt income to facilitate comparison with taxable investments[49](index=49&type=chunk) [Detailed Financial Highlights](index=13&type=section&id=Detailed%20Financial%20Highlights) This section provides comprehensive tables of KeyCorp's financial performance, ratios, and asset quality metrics Summary of Operations (Three months ended) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :---------------------------------------------------------- | :-------- | :-------- | :-------- | | Net interest income (TE) | $1,150 | $1,105 | $899 | | Noninterest income | $690 | $668 | $627 | | Total revenue (TE) | $1,840 | $1,773 | $1,526 | | Provision for credit losses | $138 | $118 | $100 | | Noninterest expense | $1,154 | $1,131 | $1,079 | | Net income (loss) attributable to Key common shareholders | $389 | $369 | $238 | | Diluted EPS | $0.35 | $0.33 | $0.25 | | Return on average tangible common equity | 11.09% | 11.24% | 10.39% | | Net interest margin (TE) | 2.66% | 2.58% | 2.04% | | Common Equity Tier 1 | 11.7% | 11.8% | 10.5% | | Net loan charge-offs | $102 | $110 | $91 | | Nonperforming loans at period-end | $696 | $686 | $710 | Summary of Operations (Six months ended) | Metric | 6/30/2025 | 6/30/2024 | | :---------------------------------------------------------- | :-------- | :-------- | | Net interest income (TE) | $2,255 | $1,785 | | Noninterest income | $1,358 | $1,274 | | Total revenue (TE) | $3,613 | $3,059 | | Provision for credit losses | $256 | $201 | | Noninterest expense | $2,285 | $2,222 | | Net income (loss) attributable to Key common shareholders | $758 | $421 | | Diluted EPS | $0.69 | $0.45 | | Return on average tangible common equity | 11.16% | 9.12% | | Net interest margin (TE) | 2.62% | 2.03% | | Net loan charge-offs | $212 | $172 | [GAAP to Non-GAAP Reconciliations](index=15&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section reconciles non-GAAP measures like tangible common equity and pre-provision net revenue to their GAAP counterparts - **Tangible common equity ratios** assist in analyzing Key's capital position without the effects of intangible assets and preferred stock[57](index=57&type=chunk) - **Pre-provision net revenue** helps analyze results by eliminating the effects of the provision for credit losses and significant items[58](index=58&type=chunk) - The **cash efficiency ratio** removes intangible asset amortization to provide greater consistency and comparability with peer banks[59](index=59&type=chunk) Tangible Common Equity to Tangible Assets at Period-End (Dollars in millions) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :------------------------------------ | :-------- | :-------- | :-------- | | Key shareholders' equity (GAAP) | $19,484 | $19,003 | $14,789 | | Tangible common equity (non-GAAP) | $14,268 | $13,783 | $9,550 | | Total assets (GAAP) | $185,499 | $188,691 | $187,450 | | Tangible assets (non-GAAP) | $182,729 | $185,917 | $184,657 | | Tangible common equity to tangible assets ratio (non-GAAP) | 7.81% | 7.41% | 5.17% | [Consolidated Financial Statements](index=17&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed consolidated balance sheets and income statements for a comprehensive financial overview [Consolidated Balance Sheets](index=17&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows total assets of $185.5 billion and total deposits of $146.9 billion as of June 30, 2025 Consolidated Balance Sheet (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | | Total assets | $185,499 | $188,691 | $187,450 | | Loans | $106,389 | $104,809 | $107,078 | | Total deposits | $146,905 | $150,737 | $145,720 | | Total liabilities | $166,015 | $169,688 | $172,661 | | Key shareholders' equity | $19,484 | $19,003 | $14,789 | | Common shares outstanding (000) | 1,112,453 | 1,111,986 | 943,200 | [Consolidated Statements of Income](index=18&type=section&id=Consolidated%20Statements%20of%20Income) The income statements detail strong revenue growth contributing to increased net income for the period Consolidated Statements of Income (Three months ended, Dollars in millions) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :---------------------------------------------------------- | :-------- | :-------- | :-------- | | Total interest income | $2,107 | $2,070 | $2,088 | | Total interest expense | $966 | $974 | $1,201 | | Net interest income | $1,141 | $1,096 | $887 | | Total noninterest income | $690 | $668 | $627 | | Total noninterest expense | $1,154 | $1,131 | $1,079 | | Net income (loss) attributable to Key common shareholders | $389 | $369 | $238 | | Diluted EPS | $0.35 | $0.33 | $0.25 | [Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates](index=19&type=section&id=Consolidated%20Average%20Balance%20Sheets%2C%20Net%20Interest%20Income%20and%20Yields%2FRates) This section details average balances, net interest income, and associated yields, highlighting the net interest margin Consolidated Average Balance Sheets (2Q25, Dollars in millions) | Category | Average Balance | Interest | Yield/Rate | | :-------------------------------- | :-------------- | :------- | :--------- | | Total loans | $105,715 | $1,452 | 5.51% | | Total earning assets | $170,000 | $2,116 | 4.90% | | Total interest-bearing deposits | $119,973 | $730 | 2.44% | | Total interest-bearing liabilities | $135,764 | $966 | 2.86% | | Net interest income (TE) | $1,150 | - | 2.66% | | Interest rate spread (TE) | - | - | 2.04% | - The average yield on total earning assets for 2Q25 was **4.90%**, while the average rate on total interest-bearing liabilities was **2.86%**[72](index=72&type=chunk) [Detailed Expense and Loan Data](index=21&type=section&id=Detailed%20Expense%20and%20Loan%20Data) This section provides a detailed breakdown of noninterest expenses and loan portfolio composition [Noninterest Expense Breakdown](index=21&type=section&id=Noninterest%20Expense%20Breakdown) Personnel expense remains the largest cost component, showing increases alongside technology-related spending Noninterest Expense (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | Personnel | $705 | $680 | $636 | | Net occupancy | $69 | $67 | $66 | | Computer processing | $107 | $107 | $101 | | Business services and professional fees | $48 | $40 | $37 | | Total noninterest expense | $1,154 | $1,131 | $1,079 | | Average full-time equivalent employees | 17,105 | 16,989 | 16,646 | [Personnel Expense Breakdown](index=21&type=section&id=Personnel%20Expense%20Breakdown) Increased salaries and incentive compensation were the primary drivers of higher personnel expense Personnel Expense (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | Salaries and contract labor | $427 | $405 | $394 | | Incentive and stock-based compensation | $168 | $158 | $143 | | Employee benefits | $108 | $109 | $98 | | Total personnel expense | $705 | $680 | $636 | [Loan Composition](index=21&type=section&id=Loan%20Composition) The loan portfolio saw quarter-over-quarter growth in commercial loans, while consumer loans experienced a slight decline Loan Composition (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | Change 6/30/2025 vs. 3/31/2025 | Change 6/30/2025 vs. 6/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | :----------------------------- | :----------------------------- | | Commercial and industrial | $56,058 | $54,378 | $53,129 | 3.1% | 5.5% | | Total commercial loans | $75,222 | $73,122 | $73,525 | 2.9% | 2.3% | | Total consumer loans | $31,167 | $31,687 | $33,553 | (1.6)% | (7.1)% | | Total loans | $106,389 | $104,809 | $107,078 | 1.5% | (0.6)% | [Loans Held for Sale Composition](index=21&type=section&id=Loans%20Held%20for%20Sale%20Composition) Total loans held for sale decreased significantly quarter-over-quarter, driven by reductions in commercial categories Loans Held for Sale Composition (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | Change 6/30/2025 vs. 3/31/2025 | Change 6/30/2025 vs. 6/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | :----------------------------- | :----------------------------- | | Commercial and industrial | $158 | $252 | $72 | (37.3)% | 119.4% | | Real estate — commercial mortgage | $290 | $473 | $354 | (38.7)% | (18.1)% | | Total loans held for sale | $530 | $811 | $517 | (34.6)% | 2.5% | [Detailed Asset Quality Data](index=22&type=section&id=Detailed%20Asset%20Quality%20Data) This section provides granular details on loan loss experience, nonperforming assets, and past due loans [Summary of Changes in Loans Held for Sale](index=22&type=section&id=Summary%20of%20Changes%20in%20Loans%20Held%20for%20Sale) Loans held for sale decreased in Q2 2025 as higher loan sales offset new originations Summary of Changes in Loans Held for Sale (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | | :-------------------------- | :--- | :--- | :--- | | Balance at beginning of period | $811 | $797 | $228 | | New originations | $1,806 | $1,840 | $1,532 | | Loan sales | $(2,012) | $(1,695) | $(1,234) | | Balance at end of period | $530 | $811 | $517 | [Summary of Loan and Lease Loss Experience](index=22&type=section&id=Summary%20of%20Loan%20and%20Lease%20Loss%20Experience) Net loan charge-offs decreased quarter-over-quarter, while the allowance for loan and lease losses increased slightly Loan and Lease Loss Experience (Three months ended, Dollars in millions) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | | Average loans outstanding | $105,715 | $104,354 | $108,961 | | Total loans charged off | $127 | $126 | $131 | | Total recoveries | $25 | $16 | $40 | | Net loan charge-offs | $(102) | $(110) | $(91) | | Provision (credit) for loan and lease losses | $119 | $130 | $96 | | Allowance for loan and lease losses at end of period | $1,446 | $1,429 | $1,547 | | Total allowance for credit losses at end of period | $1,743 | $1,707 | $1,833 | | Net loan charge-offs to average total loans | 0.39% | 0.43% | 0.34% | [Summary of Nonperforming Assets and Past Due Loans](index=23&type=section&id=Summary%20of%20Nonperforming%20Assets%20and%20Past%20Due%20Loans) Nonperforming loans and assets remained relatively stable, with slight improvements year-over-year Nonperforming Assets and Past Due Loans (Dollars in millions) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :---------------------------------------------------------- | :-------- | :-------- | :-------- | | Total nonperforming loans | $696 | $686 | $710 | | Total nonperforming assets | $707 | $700 | $727 | | Accruing loans past due 90 days or more | $74 | $86 | $137 | | Nonperforming loans to period-end portfolio loans | 0.65% | 0.65% | 0.66% | | Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets | 0.66% | 0.67% | 0.68% | [Selected Items Impact on Earnings](index=24&type=section&id=Selected%20Items%20Impact%20on%20Earnings) This section details the impact of selected items, such as FDIC special assessments, which are excluded from adjusted non-GAAP measures - **No selected items** impacted earnings for the three and six months ended June 30, 2025[104](index=104&type=chunk) - The **FDIC special assessment** amounts reflect adjustments from initial estimates based on quarterly invoices received from the FDIC[106](index=106&type=chunk) Selected Items Impact on Earnings (Dollars in millions, except per share amounts) | Item | Period | Pretax Amount | After-tax Net Income Impact | EPS Impact | | :------------------------------------------ | :------- | :------------ | :-------------------------- | :--------- | | FDIC special assessment (other expense) | 3 months ended 6/30/2024 | $(5) | $(4) | $0.00 | | FDIC special assessment (other expense) | 6 months ended 6/30/2024 | $(34) | $(26) | $(0.02) |

Core Insights - KeyCorp reported a revenue of $1.8 billion for Q2 2025, reflecting a 21% increase year-over-year, driven by a 10% growth in noninterest income and a 4% increase in net interest income [1][2][6] - The net income attributable to Key common shareholders for Q2 2025 was $387 million, or $0.35 per diluted common share, compared to $370 million, or $0.33 per diluted common share in Q1 2025, and $237 million, or $0.25 per diluted common share in Q2 2024 [1][5][49] - The company experienced a decline in net loan charge-offs by 8% quarter-over-quarter, indicating stable to improved credit metrics [1][20] Revenue and Income - Total revenue for Q2 2025 was $1.84 billion, up 20.6% from $1.526 billion in Q2 2024, with net interest income at $1.15 billion, a 27.9% increase year-over-year [6][49] - Noninterest income reached $690 million, a 10% increase from $627 million in Q2 2024, driven by higher investment banking and debt placement fees [10][11][49] Expenses - Noninterest expenses increased to $1.154 billion, a 7% rise from $1.079 billion in Q2 2024, primarily due to higher personnel expenses related to incentive compensation [13][14][49] - The company managed to keep deposit costs below 2%, with average deposits totaling $147.4 billion, reflecting a 2.3% increase year-over-year [18][19] Asset Quality - Net loan charge-offs for Q2 2025 were $102 million, or 0.39% of average total loans, compared to $91 million, or 0.34%, in Q2 2024 [20][22] - Nonperforming loans at the end of Q2 2025 totaled $696 million, representing 0.65% of period-end portfolio loans, stable compared to previous quarters [23][22] Capital Position - KeyCorp's Common Equity Tier 1 ratio was 11.7% as of June 30, 2025, maintaining a strong capital position above regulatory benchmarks [25][27] - The company declared a dividend of $0.205 per common share in May 2025, consistent with previous quarters [28][49] Business Segments Performance - The Consumer Bank segment generated $912 million in revenue, a 20.3% increase from Q2 2024, with net income of $122 million [32][35] - The Commercial Bank segment reported $974 million in revenue, up 26.8% year-over-year, with net income of $349 million [31][38]

Core Viewpoint - KeyCorp (KEY) is positioned favorably for an upcoming earnings report, with positive trends indicating a potential earnings beat [1][5]. Earnings Estimate Revisions - Recent earnings estimate revisions for KeyCorp have been favorable, suggesting analysts are optimistic about the company's performance ahead of the earnings report [2][5]. - The Most Accurate Estimate for the current quarter exceeds the Zacks Consensus Estimate of 34 cents per share, indicating a positive adjustment in analysts' expectations [3]. Earnings ESP and Historical Performance - KeyCorp has a Zacks Earnings ESP of +0.61%, which is a positive indicator for potential earnings surprises [3]. - Historical data shows that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of delivering positive surprises and have averaged over 28% in annual returns [4]. Investment Consideration - Given the positive earnings estimate revisions and a Zacks Rank of 3, KeyCorp is a stock that investors may want to consider prior to the earnings announcement [5].

Wall Street analysts forecast that KeyCorp (KEY) will report quarterly earnings of $0.34 per share in its upcoming release, pointing to a year-over-year increase of 36%. It is anticipated that revenues will amount to $1.8 billion, exhibiting an increase of 18.9% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estima ...

Core Insights - KeyCorp (KEY) is expected to report second-quarter 2025 results on July 22, with solid improvements in lending activities noted during the quarter [1] - The demand for commercial and industrial (C&I) loans, which make up about 50% of KeyCorp's average loan balances, was strong, alongside an increase in consumer loan demand [1] Loan Balances and Earnings Estimates - The average loan balance for KeyCorp is projected to be $105.5 billion, reflecting a 3.2% year-over-year decline [2] - The Zacks Consensus Estimate for average earning assets is $171.2 billion, indicating a slight increase from the previous year, while the estimate is $173.5 billion [2] Net Interest Income and Margin - The Federal Reserve maintained interest rates at 4.25%-4.5%, which is expected to support KeyCorp's net interest income (NII) and net interest margin (NIM) through higher yields on interest-earning assets [3] - The consensus estimate for NII on a fully tax-equivalent basis is $1.14 billion, suggesting a year-over-year increase of 26.5% [4] Non-Interest Income Factors - Despite interest rate cuts in 2024, mortgage rates remained stable, leading to decent refinancing and origination volumes, which is expected to improve income from KeyCorp's mortgage banking business [5] - The consensus estimate for commercial mortgage servicing fees is $72.1 million, indicating an 18.2% year-over-year increase, while consumer mortgage income is estimated at $14.7 million, reflecting an 8% decline [6] Trading and Investment Banking - Increased client activity and market volatility are anticipated to positively impact KeyCorp's trading business, with a resurgence in the IPO market and decent bond issuance volumes [7] - The consensus estimate for investment banking and debt placement fees is $167.4 million, indicating a 32.9% surge, while the estimate is $178.4 million [7] Total Non-Interest Income and Expenses - The consensus estimate for total non-interest income is $671.9 million, suggesting a year-over-year increase of 7.2% [9] - Total non-interest expenses are estimated at $1.16 billion, reflecting a 7.9% year-over-year rise due to operational efficiency initiatives and investments in technology [10] Asset Quality and Credit Losses - KeyCorp is expected to build reserves for credit losses, with an estimated provision of $120.2 million, indicating a 20.2% rise year-over-year [11] - The consensus estimate for non-performing assets (NPAs) is $744.9 million, suggesting a 2.5% increase, while non-performing loans (NPLs) are estimated at $738.5 million, reflecting a 4% increase [12] Earnings Predictions - The Zacks Consensus Estimate for KeyCorp's second-quarter earnings is pegged at 34 cents, indicating a 36% jump from the prior year, with sales estimated at $1.80 billion, reflecting an 18.9% rise [15]

The market expects KeyCorp (KEY) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Jul ...

CLEVELAND, July 7, 2025 /PRNewswire/ -- As part of its ongoing commitment to innovation and digital transformation, KeyBank (NYSE: KEY) today announced the launch of KeyTotal AR™, a fully unified solution for the invoice-to-cash process, powered by Versapay. Leveraging machine learning, the platform modernizes and automates accounts receivable (AR) operations for middle-market businesses. This latest enhancement reinforces KeyBank's commitment to delivering market-leading, technology-driven solutions to cli ...

Core Viewpoint - KeyCorp (KEY) has a strong track record of exceeding earnings estimates, making it a potential candidate for investors looking for consistent performance in the upcoming quarterly report [1][5]. Earnings Performance - In the most recent quarter, KeyCorp reported earnings of $0.32 per share, slightly below the expected $0.33, resulting in a surprise of 3.13% [2]. - In the previous quarter, the company exceeded expectations by reporting $0.38 per share against a consensus estimate of $0.33, achieving a surprise of 15.15% [2]. Earnings Estimates and Predictions - There has been a favorable shift in earnings estimates for KeyCorp, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for KeyCorp is +1.36%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - KeyCorp holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, historically leads to a positive surprise rate of nearly 70% [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]. Upcoming Earnings Report - The next earnings report for KeyCorp is expected to be released on July 21, 2025 [8].