Highlights Despite tariff-induced macroeconomic uncertainty, KeyCorp's commercial payments business is experiencing strong momentum, indicating resilience within its corporate client base. KeyCorp's credit quality remains strong, with nonperforming assets and the NPL ratio declining sequentially. Management noted that some corporate clients may pause on new transactional activity and projects. KeyCorp’s latest earnings results showed growth in deposits, while management pointed to momentum in pa ...

Core Viewpoint - KeyCorp reported strong first-quarter 2025 adjusted earnings per share of 33 cents, exceeding estimates and reflecting a 50% increase year-over-year, driven by higher non-interest income, net interest income, and lower expenses, despite a decline in loan and deposit balances [1][2]. Financial Performance - Net income from continuing operations attributable to common shareholders was $370 million, significantly up year-over-year, excluding a $22 million after-tax loss on the sale of securities [2]. - Total revenues rose 15.7% year-over-year to $1.77 billion, surpassing the Zacks Consensus Estimate of $1.76 billion [3]. - Net interest income (NII) increased 24.7% to $1.11 billion year-over-year, with net interest margin (NIM) rising 56 basis points to 2.58% [4]. - Non-interest income was $668 million, up 3.2% year-over-year, driven by increases in most fee income components [5]. - Non-interest expenses declined 1% to $1.13 billion, attributed to reductions in operating lease expenses and professional fees [6]. Loans and Deposits - Average total deposits were $148.54 billion, slightly down from the previous quarter, primarily due to seasonal decreases in commercial deposit balances [7]. - Average total loans were $104.35 billion, also down from the past quarter, mainly due to decreases in commercial mortgage real estate loans and consumer loans [7]. Credit Quality - Net loan charge-offs as a percentage of average total loans rose 14 basis points year-over-year to 0.43%, while the allowance for loan and lease losses was $1.43 billion, down 7.3% [8]. - Non-performing assets increased to 0.67%, up 6 basis points year-over-year, with the provision for credit losses rising 16.8% to $118 million [8]. Capital Ratios - KeyCorp's tangible common equity to tangible assets ratio improved to 7.4% as of March 31, 2025, up from 5% in the same period of 2024 [9]. - The Tier 1 risk-based capital ratio increased to 13.5%, up from 12%, and the Common Equity Tier 1 ratio rose to 11.8%, up from 10.3% [9]. Strategic Outlook - The company anticipates that decent loan balances, balance sheet repositioning efforts, strategic buyouts, and relatively higher interest rates will support revenues in the near term, although rising funding costs may exert pressure [10].

KeyCorp (KEY) reported $1.76 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 15.9%. EPS of $0.33 for the same period compares to $0.22 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.76 billion, representing a surprise of +0.48%. The company delivered an EPS surprise of +3.13%, with the consensus EPS estimate being $0.32.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...

KeyCorp First Quarter 2025 Earnings Review April 17, 2025 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer 1Q25 Results Growth rates are year-over-year, unless otherwise noted +6% Noninterest Income Growth(1) +3% on a reported basis $61Bn In Assets Under Management(2) Differentiated Fee Businesses Focused on Targeted Scale +4% Client Deposit Growth +2% Net New Relationship Household Growth Driving New Relationships Focused on Primacy 11.8% Common Equity Tier 1(3), up ~1 ...

KeyCorp (KEY) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.13%. A quarter ago, it was expected that this company would post earnings of $0.33 per share when it actually produced earnings of $0.38, delivering a surprise of 15.15%.Over the last four quarters, the company has surpas ...

Financial Data and Key Metrics Changes - Revenues increased by 16% year-over-year, while expenses remained flat [6][24] - Pre-provision net revenue rose by over $90 million from the previous quarter [6] - Earnings per share for the first quarter were reported at 33 cents [24] - Tax-equivalent net interest income was $1.1 billion, up 4% sequentially and 25% year-over-year [24] Business Line Data and Key Metrics Changes - Commercial loans increased by $1.5 billion, or 3%, while consumer loans were intentionally reduced [27] - Investment banking fees reached a record of $175 million for the first quarter, up 3% from the previous year [35] - Non-interest income was $668 million, reflecting a 3% year-over-year increase [32] Market Data and Key Metrics Changes - Deposits grew by mid-single digits year-over-year, with non-interest-bearing deposits stable at about 19% of total deposits [18][29] - Average loans were up about half a billion dollars to $105 billion on a period-end basis [26] - Interest-bearing deposit costs decreased by 18 basis points during the quarter [30] Company Strategy and Development Direction - The company is focused on navigating macroeconomic uncertainties while maintaining strong client relationships and community investments [9][12] - A strategic minority investment from Scotiabank has positioned the company for future growth and agility [13] - The company aims to leverage its balance sheet to support clients during market dislocations [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in avoiding a recession despite current uncertainties, citing strong credit quality and client backlogs [52][62] - The company is prepared for various economic scenarios, including stagflation [53] - Future performance may be impacted by macroeconomic conditions, but management remains optimistic about achieving financial commitments for 2025 [41][42] Other Important Information - The CET1 ratio was reported at 11.8%, indicating a strong capital position [40] - A $1 billion share repurchase authorization was announced, expected to commence in the second half of the year [21][22] Q&A Session Summary Question: How to reconcile the uncertain macro environment with the unchanged guidance? - Management acknowledged the uncertainty but emphasized the strength of the credit book and client backlogs, indicating a cautious optimism [52][53] Question: What is the outlook for C&I loan growth? - Management noted strong C&I loan growth driven by new teams and project-based deals, with expectations for continued growth [76][77] Question: What are the drivers for achieving the 20% net interest income growth? - Management highlighted the impact of previous restructuring actions and robust pipelines, while acknowledging potential risks from economic conditions [80][82] Question: How will the company handle potential CapEx project delays? - Existing projects are expected to continue, but new projects may be delayed until there is more clarity in the market [95] Question: What is the strategy for the share buyback program? - The company plans to maintain flexibility regarding the timing and pace of buybacks, depending on economic clarity [101][102]

Financial Performance - KeyCorp reported a net income of $370 million, or $0.33 per diluted common share for Q1 2025, a significant increase from a net loss of $(279) million in Q4 2024[2]. - Total revenue for Q1 2025 was $1.8 billion, reflecting a 16% year-over-year increase, with net interest income rising 4% quarter-over-quarter[1][3]. - Net income attributable to Key for Q1 2025 was $406 million, up 85.4% from $219 million in Q1 2024[29]. - Total revenue from continuing operations for Q1 2025 was $1.773 billion, a 15.7% increase from $1.533 billion in Q1 2024[29]. - KeyCorp recorded net income attributable to Key of $321 million for Q1 2025, up from $205 million in Q1 2024, representing a 56.6% increase[35]. - The return on average common equity was 9.30% for the three months ended December 31, 2024, compared to a negative 7.80% in the prior quarter[52]. Credit Quality - Nonperforming assets decreased by 9% and net charge-offs declined by 4% quarter-over-quarter, indicating improved credit metrics[2]. - Key's net loan charge-offs for Q1 2025 totaled $110 million, or 0.43% of average total loans, compared to $81 million, or 0.29%, in Q1 2024[20]. - Nonperforming loans at the end of Q1 2025 were $686 million, representing 0.65% of period-end portfolio loans, compared to 0.60% at the end of Q1 2024[21]. - Key's provision for credit losses increased to $118 million in Q1 2025 from $101 million in Q1 2024, driven by higher net loan charge-offs and economic uncertainty[19]. - The provision for loan and lease losses was $130 million for the three months ended March 31, 2025, compared to $29 million in the previous quarter[88]. - Total allowance for credit losses at the end of the period was $1.707 billion, compared to $1.699 billion at December 31, 2024[88]. Capital Position - The common equity tier 1 ratio stood at 11.8%, up approximately 150 basis points year-over-year, demonstrating a strong capital position[2][6]. - Key's Common Equity Tier 1 capital ratio was 11.8% as of March 31, 2025, compared to 10.3% a year earlier[23]. - Tangible common equity (non-GAAP) rose to $13,783 million, up from $12,951 million in the previous quarter and $9,302 million a year ago, indicating a year-over-year increase of 48.5%[62]. - The tangible common equity to tangible assets ratio (non-GAAP) improved to 7.41%, compared to 7.02% in the previous quarter and 5.04% a year ago[62]. Deposits and Loans - Average deposits totaled $148.5 billion for Q1 2025, an increase of $5.7 billion year-over-year, driven by growth in both consumer and commercial deposits[16]. - Average loans for Q1 2025 were $104.4 billion, down $6.7 billion compared to Q1 2024, primarily due to weak client loan demand[14]. - Average deposit balances increased by $1.1 billion compared to Q1 2024, reflecting a focus on growing deposits across commercial businesses[35]. - Total loans decreased slightly to $104,354 million in Q1 2025 from $104,711 million in Q4 2024[71]. - Total commercial loans decreased to $494 million in Q1 2025 from $565 million in Q4 2024, a decline of 12.5%[92]. Noninterest Income and Expenses - Noninterest income rose to $668 million in Q1 2025, a 440.8% increase from Q4 2024, primarily due to the strategic repositioning of the available-for-sale portfolio[9][10]. - Noninterest expense decreased by 8% year-over-year to $1.131 billion, reflecting a reduction in personnel and other expenses[11][12]. - Total noninterest income for Q1 2025 was $668 million, a significant recovery from a loss of $196 million in Q4 2024[69]. - Noninterest expense rose by $20 million compared to Q1 2024, mainly due to increased personnel expenses[35]. Strategic Initiatives - KeyCorp expressed confidence in navigating the current environment, supported by strong earnings and business momentum[4][5]. - KeyCorp's Board of Directors authorized a new repurchase program for up to $1 billion of common shares[27].

Revenue of $1.8 billion, up 16% year-over-year; noninterest expense down 1% year-over-year Net interest income up 4% quarter-over-quarter Improved credit metrics - nonperforming assets declined by 9% and net charge-offs by 4% quarter-over-quarter Common equity tier 1 ratio of 11.8%, up ~150 basis points year-over-year CLEVELAND, April 17, 2025 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $370 million, or $.33 per diluted ...

KeyCorp KEY will release earnings results for the first quarter, before the opening bell on Thursday, April 17.Analysts expect the Cleveland, Ohio-based company to report quarterly earnings at 32 cents per share, up from 20 cents per share in the year-ago period. KeyCorp projects to report quarterly revenue at $1.75 billion, compared to $1.53 billion a year earlier, according to data from Benzinga Pro.On March 13, KeyCorp plans purchase up to $1.0 billion of common shares in open market or in privately nego ...

Core Viewpoint - KeyCorp is set to announce its first-quarter 2025 results on April 17, with expectations of improved lending activities despite a decline in commercial and industrial loan demand [1][2]. Lending Activities - Demand for commercial and industrial (C&I) loans, which make up about 50% of KeyCorp's average loan balances, decreased in the first quarter, while consumer loans, accounting for roughly 31%, saw significant improvement [2]. - The average loan balance for KeyCorp is projected to be $103.6 billion, reflecting a 6.7% year-over-year decline [2]. Earnings and Income Estimates - The Zacks Consensus Estimate for KeyCorp's average earning assets is $172 billion, indicating a 1.2% increase from the previous year [3]. - The consensus estimate for net interest income (NII) is $1.10 billion, suggesting a year-over-year increase of 25.8%, with projections at $1.12 billion [5]. - Total non-interest income is estimated at $653.8 million, indicating a 1.1% year-over-year increase, with projections at $661.6 million [10]. Interest Rates and Economic Factors - The Federal Reserve maintained interest rates at 4.25%-4.5%, which is expected to support KeyCorp's NII and net interest margin (NIM) through higher yields on interest-earning assets [4]. - The yield curve steepened during the first quarter, further aiding NIM and NII growth [4]. Mortgage and Non-Interest Income - Mortgage rates declined, leading to improved mortgage originations and refinancing activities, which are expected to positively impact KeyCorp's mortgage banking income [6]. - The consensus estimate for commercial mortgage servicing fees is $59.7 million, indicating a 6.7% year-over-year rise, while consumer mortgage income is expected to reach $15.3 million, reflecting a 9.1% increase [7]. Trading and Investment Banking - Increased client activity and market volatility are anticipated to have positively influenced KeyCorp's trading business, with a consensus estimate for investment banking and debt placement fees at $156.8 million, indicating a 7.8% decline [8]. Expense and Asset Quality - Total non-interest expenses are projected to be $1.19 billion, reflecting a 4.2% year-over-year increase [11]. - KeyCorp is expected to build reserves for credit losses, with an estimated provision of $104.8 million, suggesting a 3.8% rise year over year [12]. Non-Performing Assets - The consensus estimate for non-performing assets (NPAs) is $773.1 million, indicating a 14.7% increase, while non-performing loans (NPLs) are estimated at $760.9 million, reflecting a 15.6% rise [13]. Earnings Expectations - The Zacks Consensus Estimate for KeyCorp's first-quarter earnings is 32 cents, representing a 45.5% increase from the prior year, with sales expected to reach $1.76 billion, indicating a 15.4% rise [15].