KeyCorp Posts Earnings Beat on Strong Revenue and Margin Expansion

Core Insights - KeyCorp reported third-quarter results exceeding Wall Street expectations, driven by strong revenue growth, improved credit quality, and a stronger net interest margin [1] Financial Performance - The bank posted net income of $454 million, or $0.41 per diluted share, surpassing analyst estimates of $0.38 [1] - Revenue reached $1.9 billion, slightly above the $1.88 billion consensus, and increased by 17% year-over-year when adjusted for the previous year's securities portfolio repositioning [1] Net Interest Income and Margin - Net interest income rose by 4% sequentially, with the net interest margin expanding by 9 basis points to 2.75% [2] - This improvement was due to a 2% quarter-over-quarter increase in average deposits and a 2-basis-point decline in total deposit costs to 1.97% [2] Credit Quality - Credit quality improved as nonperforming assets decreased by 6% sequentially [2] - Net charge-offs remained stable at 42 basis points, within the company's full-year guidance range of 40 to 45 basis points [2] Segment Performance - The Consumer Bank division generated net income of $152 million, more than doubling the $75 million earned in the same quarter last year [3] - The Commercial Bank reported net income of $367 million, reflecting a 22.7% year-over-year increase [3] - Executives attributed the results to disciplined expense management and effective execution across both retail and commercial segments [3]