Keyp(KEY) - 2025 Q4 - Annual Results

Financial Performance - KeyCorp reported a net income of $474 million for Q4 2025, or $0.43 per diluted common share, compared to a net loss of $(279) million in Q4 2024[3]. - Total revenue for Q4 2025 was $2.0 billion, marking a 5.8% increase from Q3 2025 and a 131.8% increase from Q4 2024[9]. - Total revenue from continuing operations for Q4 2025 was $2.005 billion, a 131.8% increase compared to Q4 2024[29]. - KeyCorp reported net income attributable to Key of $410 million for Q4 2025, an increase of 7.6% from $381 million in Q4 2024[36]. - Net income attributable to Key for the three months ended December 31, 2025, was $510 million, compared to a loss of $244 million in the same period last year, marking a turnaround[54]. - Net income attributable to Key common shareholders for the twelve months ended December 31, 2025, was $1,686 million, compared to a loss of $304 million in the previous year[72]. Revenue Breakdown - Pre-provision net revenue increased by $46 million quarter-over-quarter, with a full-year increase of 44% year-over-year[2]. - Net interest income for Q4 2025 was $1.22 billion, up 2.5% from Q3 2025 and up 15.3% from Q4 2024, with a net interest margin of 2.82%[9]. - Noninterest income reached $782 million in Q4 2025, an 11.4% increase from Q3 2025, driven by a significant rise in investment banking and debt placement fees[11]. - Noninterest income for the twelve months ended December 31, 2025, was $2,842 million, a substantial increase from $809 million in the previous year, reflecting a growth of 250.3%[56]. - Noninterest income for Q4 2025 was $782 million, compared to a loss of $196 million in Q4 2024, showcasing a strong recovery[68]. Loan and Deposit Metrics - Average loans for Q4 2025 were $106.3 billion, a slight increase of $1.6 billion compared to Q4 2024, with commercial and industrial loans driving the growth[16]. - Average deposits totaled $150.7 billion for Q4 2025, an increase of $977 million or 0.7% year-over-year, driven by growth in commercial deposits[18]. - Total loans for Q4 2025 reached $106.316 billion, with a net interest income of $1.215 billion, reflecting a yield of 5.41%[74]. - Total commercial loans reached $76,509 million, reflecting a 1.6% increase from the previous quarter and a 6.4% increase year-over-year[89]. - Average loans and leases in the Consumer Bank decreased by 7.7% year-over-year to $34,683 million in Q4 2025[110]. Asset Quality and Credit Losses - Net loan charge-offs for Q4 2025 were $104 million, or 0.39% of average total loans, down from $114 million or 0.43% in Q4 2024[20]. - Nonperforming loans at period end totaled $615 million, representing 0.58% of period-end portfolio loans, down from 0.73% a year ago[22]. - Key's allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans, stable compared to previous quarters[21]. - The allowance for loan and lease losses at period-end was $1,427 million, slightly up from $1,409 million in the previous year, indicating a cautious approach to asset quality[54]. - The provision for credit losses for the three months ended December 31, 2025, was $108 million, slightly up from $107 million in the previous quarter[72]. Capital Management - The Common Equity Tier 1 ratio stood at 11.7% as of December 31, 2025, reflecting strong capital ratios[3]. - Tangible book value per share grew 3% sequentially and 18% year-over-year, demonstrating effective capital management[4]. - The tangible common equity to tangible assets ratio improved to 8.36% in Q4 2025, up from 7.02% in Q4 2024[66]. - Average tangible common equity increased to $15,126 million in Q4 2025, up from $11,449 million in Q4 2024, indicating stronger capital position[66]. Shareholder Returns - KeyCorp repurchased $200 million of common shares in Q4 2025, indicating a commitment to returning capital to shareholders[4]. - Key declared a dividend of $0.205 per common share during Q4 2025, with a reduction in share count driven by $200 million of common shares repurchased[27]. - Cash dividends declared per common share remained stable at $0.205 for both the current and previous quarters[72]. Future Outlook - The company anticipates strong organic revenue and earnings growth in 2026, supported by strategic investments in technology and front-line bankers[5].