Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - KeyCorp's third-quarter 2025 adjusted earnings per share from continuing operations reached 41 cents, exceeding the Zacks Consensus Estimate of 38 cents, marking a 36.7% increase from the prior-year quarter [1][10] - The company's shares rose by 1.4% in early trading following the announcement of better-than-expected results [1] Financial Performance - KeyCorp's total revenues increased significantly year over year to $1.89 billion, surpassing the Zacks Consensus Estimate of $1.88 billion [3] - Net interest income (NII) on a tax-equivalent basis rose 23.8% year over year to $1.19 billion, with the net interest margin (NIM) expanding 58 basis points to 2.75% [4] - Non-interest income was reported at $702 million, a substantial increase driven by a significant reduction in net securities losses, which fell to $6 million from a $918 million loss in the prior-year quarter [6] - Non-interest expenses increased by 7.4% year over year to $1.18 billion, attributed to rising costs across nearly all components [7] Loan and Deposit Trends - Average total loans at the end of the third quarter were $106.23 billion, a slight increase from the previous quarter, while average total deposits rose by 2% to $150.37 billion [8] Credit Quality - The provision for credit losses was $107 million, reflecting a 12.6% year-over-year increase, while net loan charge-offs as a percentage of average total loans decreased by 16 basis points to 0.42% [9][11] Capital Ratios - KeyCorp's tangible common equity to tangible assets ratio improved to 8.1% as of September 30, 2025, up from 6.2% a year earlier, with the Tier 1 risk-based capital ratio rising to 13.5% [12] Strategic Outlook - The company is expected to benefit from decent loan balances, balance sheet repositioning efforts, strategic buyouts, and relatively higher interest rates, although concerns remain regarding weakening asset quality amid a challenging macroeconomic environment [13]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.41, with return on assets surpassing 1% [3] - Pre-provision net revenue increased by $33 million quarter over quarter, marking a 5% rise and the sixth consecutive quarter of improvement [3] - Revenues, adjusting for last year's securities portfolio repositioning, grew by 17% [4] - Net interest income (NII) achieved a net interest margin (NIM) of 2.75%, reaching the year-end target one quarter ahead of schedule [5][10] - The company reported a common equity tier 1 (CET1) ratio approaching 12% at quarter-end, indicating strong capital ratios [5][24] Business Line Data and Key Metrics Changes - Fee income increased in the high single digits compared to 2024, contributing to overall revenue growth [4] - Commercial pipelines nearly doubled from the previous year, with investment banking pipelines also showing significant growth, particularly in M&A [7] - Assets under management in the wealth segment reached a record $68 billion, with strong sales production in the mass affluent segment [6][20] Market Data and Key Metrics Changes - Average loans increased by $5 billion sequentially, driven by a 2% increase in commercial and industrial (C&I) loans [14] - Average deposits grew by 2%, with period-end deposits increasing by 3% sequentially, primarily from commercial clients [15] - Non-performing assets (NPAs) and criticized loans declined, indicating improving asset quality [5][23] Company Strategy and Development Direction - The company aims to achieve a return on tangible common equity of 15% or better by 2027, focusing on improving NIM, compounding fee advantages, maintaining expense discipline, and share repurchases [10][11] - The company plans to repurchase approximately $100 million of common stock in the fourth quarter, indicating a cautious approach to capital management [11][24] - The strategic focus remains on organic growth opportunities, with bank M&A being a lower priority unless it aligns with strategic goals [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of outsized revenue and earnings growth in 2026, supported by strong pipelines and market conditions [12][26] - The company maintains a positive outlook on credit quality, with net charge-offs within the target range [23] - Management highlighted the importance of maintaining flexibility in capital allocation while navigating potential macroeconomic uncertainties [76][90] Other Important Information - The company received a one-notch upgrade to its long and short-term ratings from Fitch, with a positive outlook from Moody's [13][24] - Non-interest expenses increased by 2% from the prior quarter and 7% year over year, driven by higher personnel expenses and technology investments [22] Q&A Session Summary Question: Can you provide more detail on the drivers to achieve the 15% ROTCE target? - Management reiterated that the 15% target is a milestone, with NIM improvement and strong organic activity being key drivers [28][30] Question: How does the company view bank M&A given current stock valuation? - Management stated that bank M&A is a lower priority, focusing instead on organic growth and tuck-in deals that align with strategic goals [46][48] Question: What are the conditions for further balance sheet restructuring? - Management indicated that any restructuring would depend on favorable market conditions and the need to support client growth [88][90] Question: How does the recent Fitch upgrade impact capital distribution decisions? - Management noted that while the upgrade is important, it would not be the primary driver for capital distribution decisions [91][92]

Financial Performance - KeyCorp's EPS was $0.41, up 17% QoQ and 37% YoY[11] - Revenue increased by 3% QoQ and 17% YoY[11] - Net interest income (TE) was $1.193 billion, up 4% QoQ and 24% YoY[11] - Noninterest income was $702 million, up 2% QoQ and 8% YoY[11] - ROTCE was 12.5%, up 142 bps QoQ and 168 bps YoY[11] Balance Sheet and Capital - Average loans increased by $512 million QoQ[15] - Average deposits increased by 2% QoQ[18] - CET1 ratio was 11.8%[11] - Marked Common Equity Tier 1 was 10.3%, up 35 bps QoQ[12] - Assets Under Management (AUM) reached $68 billion, up 11% YoY[4] Credit Quality - NCOs / Average Loans was 42 bps[4] - NPAs / Loans + OREO was 63 bps[4] Outlook - Net Interest Income (TE) is expected to be up approximately 22% for FY2025 compared to FY2024[38] - Adjusted Noninterest Income is projected to increase by 5-6% for FY2025 compared to FY2024[38]

Core Insights - KeyCorp reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and showing an increase from $0.30 per share a year ago, resulting in an earnings surprise of +7.89% [1][2] - The company achieved revenues of $1.89 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.28% and up from $1.6 billion year-over-year [2] - KeyCorp has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The future performance of KeyCorp's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $1.91 billion, and for the current fiscal year, it is $1.45 on revenues of $7.38 billion [7] Industry Context - KeyCorp operates within the Zacks Banks - Major Regional industry, which is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - The performance of KeyCorp's stock may also be influenced by the overall outlook for the banking industry, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5][8]

Core Viewpoint - KeyCorp experienced a significant increase in third-quarter profit driven by a rise in net interest income, attributed to lower deposit costs and a strategic shift towards higher-yielding assets [1] Financial Performance - The third-quarter profit for KeyCorp saw a notable jump, indicating strong financial performance [1] - The surge in net interest income was a key factor in this profit increase, highlighting effective management of interest rates and asset allocation [1] Asset Management - The company has shifted its focus towards higher-yielding assets, which has positively impacted its profitability [1] - Lower deposit costs have also contributed to the improved financial results, suggesting a favorable environment for the bank's operations [1]

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

[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 ...