Keyp(KEY) - 2025 Q1 - Quarterly Results

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].