Prnewswireยท2025-10-16 10:30Core 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]