What Fueled KEY's NII Expansion in 2025 Despite Easing Rates

Key Takeaways KeyCorp's NII rose 23% to $4.67B in 2025, defying Fed rate cuts during the year.KEY C&I loans grew 9%. It shifted to higher-yielding commercial assets, boosting NIM.KEY sees 8-10% NII growth in 2026, with Q4 NII near $1.3B and NIM at 3.00-3.05%.KeyCorp’s (KEY) net interest income (NII) (on a tax-equivalent or TE basis) increased 23% year over year to $4.67 billion in 2025. The growth was fueled by strong commercial loan expansion, improved deposit trends, lower funding costs and continued bala ...