KeyCorp

Latest Results (11.11.2025):

In the third quarter of 2025, KeyCorp reported strong financial performance with net income from continuing operations of $454 million, or $.41 per diluted common share, and total revenue of $1.9 billion—up 17% year-over-year after adjusting for last year’s portfolio repositioning. The report highlights positive operating leverage, improved net interest income and margin, and stable asset quality, setting a solid tone for future growth.

Net Income and Earnings

KeyCorp’s net income for 3Q2025 reached $454 million, or $.41 per share, compared to $387 million (or $.35 per share) in 2Q2025 and a net loss in 3Q2024. Adjusted net income, excluding special items, also reflected robust performance, underscoring the company’s ability to generate consistent profitability.

Revenue and Fee Income Growth

Total revenue for the quarter hit $1.9 billion, with adjusted noninterest income growing and investment banking and fee-based activities contributing notably. These gains came as part of a strategic repositioning of the securities portfolio and increased client activity in fee-sensitive areas.

Improved Interest Margins

Net interest income increased quarter-over-quarter by 4%, driven by factors such as lower deposit costs and a shift toward higher-yielding investments. The net interest margin improved to 2.75%, rising by 58 basis points year-over-year, reflecting effective asset/liability management.

Expense Management and Operational Leverage

Despite rising noninterest expenses—primarily due to increased personnel costs related to growing fee income—KeyCorp achieved strong operating leverage. The company generated over 1,000 basis points of leverage, indicating that revenue growth outpaced expense increases, aided by strategic investments in technology and personnel.

Asset Quality and Deposit Trends

KeyCorp maintained quality with a 6% sequential decline in nonperforming assets and stable net charge-offs at 42 basis points. Additionally, average deposits grew 2% quarter-over-quarter, helping to sustain a favorable funding mix and support ongoing growth initiatives.