01—Abstract
Summary
Summary of the 10-Q filed November 4, 2025. Cited figures are marked; the original filing is the authoritative source.
KeyCorp reported net income from continuing operations attributable to Key common shareholders of $454 milliona, or diluted earnings per share of $0.41, for the third quarter of 2025, compared with a loss of $447 million in the year-ago quarter that included a $918 million securities repositioning loss.
For the nine months ended September 30, 2025, income from continuing operations attributable to common shareholders was $1.211 billionb, or $1.09 diluted EPS. Net interest income (TE) was $1.19 billion in the third quarter with a net interest margin of 2.75%, up 58 basis points year over year, reflecting lower deposit costs and a more favorable balance sheet mix. Noninterest income was $702 million, and noninterest expense was $1.18 billion.
Credit metrics were stable. The provision for credit losses was $107 millionc for the quarter, and net loan charge-offs were $114 million, or 0.42% of average loans. Nonperforming loans declined to $658 million from $758 million at December 31, 2024.
Total loans were $105.9 billiond at September 30, 2025, and deposits were $150.8 billion, with uninsured deposits at $66.5 billion, or 44% of deposits. Assets under management reached a record $67.9 billion, up 11.0% year over year. Capital remained strong, with the Common Equity Tier 1 ratio estimated at 11.83% at September 30, 2025, and book value per common share of $15.86.
Management updated full-year 2025 guidance, now expecting net interest income (TE) growth of up 22% and adjusted noninterest expense growth of up about 4%. The company also began repurchasing shares under a $1.0 billion program authorized in March 2025 during the fourth quarter.
02—Key points
Key Highlights
- Q3 2025 income from continuing operations attributable to common shareholders of $454 million, or $0.41 diluted EPS, versus a loss of $447 million in Q3 2024.
- Net interest margin of 2.75% in Q3 2025, up 58 basis points year over year; net interest income (TE) of $1.19 billion, up $229 million.
- Noninterest income of $702 million in Q3 2025 versus a net loss of $269 million a year earlier, which included a $918 million securities repositioning loss.
- Net loan charge-offs of $114 million (0.42% of average loans); provision for credit losses of $107 million; nonperforming loans fell to $658 million from $758 million at December 31, 2024.
- Assets under management of $67.9 billion, a record, up 11.0% year over year; deposits of $150.8 billion.
- Common Equity Tier 1 ratio of 11.83% (estimated) at September 30, 2025; book value per common share of $15.86; tangible book value per common share of $13.38.
- Full-year 2025 guidance raised: net interest income (TE) up 22%, net interest margin for 4Q25 of 2.75% to 2.80%, and effective tax rate of about 21%; medium-term targets include return on tangible common equity of 15.0%+ and net interest margin of 3.25%+ by end of 2027.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 4, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.90B$695.00M | +172.7% |
| Operating Income | $1.32B$81.00M | +1528.4% |
| Net Income | $489.00M-$410.00M | +219.3% |
| EPS (Basic) | $0.41$-0.47 | +187.2% |
| EPS (Diluted) | $0.41$-0.47 | +187.2% |
| Shares Outstanding (Basic) | 1.10B948.98M | +16.0% |
| Shares Outstanding (Diluted) | 1.11B948.98M | +17.0% |
05—Questions
Frequently Asked Questions
How did KeyCorp's profitability change in the third quarter of 2025?
Income from continuing operations attributable to Key common shareholders was $454 million, or $0.41 diluted EPS, compared with a loss of $447 million in the third quarter of 2024. The prior-year quarter included a $918 million loss on securities repositioning. Net interest income (TE) rose $229 million to $1.19 billion, driven by lower deposit costs and a more favorable asset mix.
Is KeyCorp's credit quality holding up?
Credit metrics were stable in the filing. Net loan charge-offs were $114 million, or 0.42% of average loans, down from $154 million a year earlier. Nonperforming loans declined to $658 million at September 30, 2025, from $758 million at December 31, 2024. The provision for credit losses rose to $363 million for the nine months from $296 million, reflecting higher reserves due to economic uncertainty.
How strong is KeyCorp's capital position?
KeyCorp's September 30, 2025 capital ratios are estimates. The Common Equity Tier 1 ratio was 11.83%, Tier 1 risk-based capital was 13.53%, and total risk-based capital was 15.80%, all above regulatory requirements. The stress capital buffer is 3.2% and became effective October 1, 2025. Shareholders' equity to assets was 10.7%, and tangible common equity to tangible assets was 8.1%.
What did KeyCorp say about its outlook and capital returns?
For full-year 2025, KeyCorp expects net interest income (TE) to rise 22%, adjusted noninterest income to rise 5% to 6%, and adjusted noninterest expense to rise about 4%. Net charge-offs are expected at 40 to 45 basis points. KeyCorp paid a quarterly dividend of $0.205 per common share in the third quarter. A $1.0 billion share repurchase program was authorized in March 2025, and repurchases began in the fourth quarter of 2025. No open market repurchases were completed in the third quarter.
What risks are highlighted in the filing?
The filing cites exposure to commercial and industrial loans, which were $56.8 billion and represent 54% of total loans. It also highlights uninsured deposits of $66.5 billion, or 44% of total deposits. Regulatory developments include the CFPB's delayed compliance with the Section 1071 small business lending rule and ongoing litigation over the Section 1033 open banking rule. The filing also notes that a Federal Reserve proposal on the LFI Rating System could affect the 'well managed' designation.
06—Continue