KeyCorp's Upcoming Quarterly Earnings: A Comprehensive Preview

Core Viewpoint - KeyCorp is expected to report earnings per share (EPS) of $0.38 and revenue of approximately $1.97 billion in its upcoming quarterly earnings release on January 20, 2026, driven by strong demand in commercial and industrial loans and a rise in investment banking fees [1][6]. Group 1: Financial Performance - The anticipated strong performance is attributed to robust demand for commercial and industrial loans, which constitute about 50% of KeyCorp's average loan balances [2]. - KeyCorp's net interest income (NII) for the fourth quarter is projected to increase by 14% year-over-year, driven by loan growth and stabilizing deposit costs [2]. - The Zacks Consensus Estimate for KeyCorp's average earning assets in the fourth quarter is $171.65 billion, reflecting a slight increase from the previous year [4]. Group 2: Investment Banking Sector - KeyCorp expects a significant rise in investment banking fees, supported by active initial public offerings (IPOs), bond issuance, and increased trading activities [3][6]. - This robust deal activity is anticipated to play a crucial role in enhancing KeyCorp's earnings [3]. Group 3: Financial Metrics - KeyCorp has a price-to-earnings (P/E) ratio of approximately 21.74 and a price-to-sales ratio of about 2.27 [5]. - The enterprise value to sales ratio is around 3.29, while the enterprise value to operating cash flow ratio stands at approximately 10.42 [5]. - The debt-to-equity ratio is 0.61, and the current ratio is about 0.11, indicating the company's ability to cover short-term liabilities [5].