How did KeyCorp perform in the first quarter of 2025 compared with the prior quarter?

Net income from continuing operations attributable to Key common shareholders was $370 million, or $.33 per diluted share, compared with a loss of $(279) million, or $(.28) per diluted share, in Q4 2024. The fourth-quarter loss was driven by a $915 million pretax loss on the sale of securities, which the filing describes as part of a strategic repositioning of the available-for-sale portfolio.

What drove the improvement in net interest income?

The filing attributes the increase in taxable-equivalent net interest income of $44 million sequentially to lower funding costs, including interest-bearing deposit costs, the second tranche of the available-for-sale portfolio repositioning completed in Q4 2024, and redeployment of low-yielding investments into higher-yielding securities. These were partly offset by lower interest rates on repricing earning assets and two fewer days in the quarter.

How did credit quality change?

Nonperforming loans fell to $686 million from $758 million, and net loan charge-offs were $110 million, or 0.43% of average total loans, versus $114 million in Q4 2024. The provision for credit losses increased to $118 million from $39 million, reflecting a reserve build driven by uncertainty in the economic outlook, partly offset by a reserve release due to improved credit migration trends.

How strong is the company's capital position?

At March 31, 2025, the estimated Common Equity Tier 1 ratio was 11.8%, Tier 1 risk-based capital ratio was 13.5%, and total risk-based capital ratio was 15.9%, all above the well-capitalized benchmarks according to the filing. Book value per share increased to $14.89 at period end, and the Board authorized a repurchase program of up to $1 billion of common shares.

What is the filing's referenced supplemental information?

The filing furnishes a press release announcing first-quarter 2025 results as Exhibit 99.1, a Supplemental Information Package reviewed during the conference call as Exhibit 99.2, and consolidated balance sheets and income statements as Exhibit 99.3, which is deemed filed for purposes of Section 18 of the Exchange Act.

KeyCorp 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 17, 2025. Cited figures are marked; the original filing is the authoritative source.

KeyCorp reported first-quarter 2025 net income from continuing operations attributable to Key common shareholders of $370 million^a, or $.33 per diluted common share, compared with a net loss from continuing operations of $(279) million, or $(.28) per diluted share, in the fourth quarter of 2024 and net income of $183 million, or $.20 per diluted share, in the first quarter of 2024.

The Q4 2024 results were depressed by a $915 million^b pretax loss on the sale of securities as part of the available-for-sale portfolio repositioning. Total revenue (TE) was $1.8 billion, up 15.7% year-over-year, while noninterest expense of $1,131 million was down 1.0% year-over-year. Net interest income (TE) rose 4.1% quarter-over-quarter to $1,105 million, and the net interest margin increased 17 basis points to 2.58%.

Credit metrics improved sequentially. Nonperforming loans fell 9.5% to $686 million^c and net loan charge-offs declined 3.5% to $110 million, or 0.43% of average total loans. The provision for credit losses rose to $118 million from $39 million in the fourth quarter, reflecting a reserve build tied to economic uncertainty, partly offset by improved credit migration trends.

Average loans were $104.4 billion^d, down 6.0% year-over-year, while average deposits of $148.5 billion were up 4.0% year-over-year. Capital remained strong, with the estimated Common Equity Tier 1 ratio at 11.8% at March 31, 2025, versus 10.3% a year earlier.

Book value per share rose to $14.89 and the Board authorized a new repurchase program of up to $1 billion of common shares in March 2025. The company's 2025 outlook, presented in its supplemental materials, was described as unchanged.

02—Key points

Key Highlights

Net income from continuing operations attributable to Key common shareholders was $370 million, or $.33 per diluted share, versus a $(279) million loss in Q4 2024 that included a $915 million pretax loss on securities sales.
Total revenue (TE) of $1,773 million rose 15.7% year-over-year; noninterest expense of $1,131 million fell 1.0% year-over-year.
Net interest margin (TE) widened to 2.58% from 2.41% in Q4 2024 and 2.02% in Q1 2024, with net interest income (TE) up 4.1% sequentially.
Nonperforming loans declined 9.5% sequentially to $686 million; net loan charge-offs were $110 million, or 0.43% of average total loans.
Common Equity Tier 1 ratio was an estimated 11.8% at March 31, 2025, up from 10.3% a year earlier; tangible common equity to tangible assets rose to 7.4%.
Average total deposits grew 4.0% year-over-year to $148.5 billion, while average total loans declined 6.0% to $104.4 billion.
The Board authorized a new share repurchase program of up to $1 billion of common shares in March 2025.

03—Questions

Frequently Asked Questions

How did KeyCorp perform in the first quarter of 2025 compared with the prior quarter?
Net income from continuing operations attributable to Key common shareholders was $370 million, or $.33 per diluted share, compared with a loss of $(279) million, or $(.28) per diluted share, in Q4 2024. The fourth-quarter loss was driven by a $915 million pretax loss on the sale of securities, which the filing describes as part of a strategic repositioning of the available-for-sale portfolio.
What drove the improvement in net interest income?
The filing attributes the increase in taxable-equivalent net interest income of $44 million sequentially to lower funding costs, including interest-bearing deposit costs, the second tranche of the available-for-sale portfolio repositioning completed in Q4 2024, and redeployment of low-yielding investments into higher-yielding securities. These were partly offset by lower interest rates on repricing earning assets and two fewer days in the quarter.
How did credit quality change?
Nonperforming loans fell to $686 million from $758 million, and net loan charge-offs were $110 million, or 0.43% of average total loans, versus $114 million in Q4 2024. The provision for credit losses increased to $118 million from $39 million, reflecting a reserve build driven by uncertainty in the economic outlook, partly offset by a reserve release due to improved credit migration trends.
How strong is the company's capital position?
At March 31, 2025, the estimated Common Equity Tier 1 ratio was 11.8%, Tier 1 risk-based capital ratio was 13.5%, and total risk-based capital ratio was 15.9%, all above the well-capitalized benchmarks according to the filing. Book value per share increased to $14.89 at period end, and the Board authorized a repurchase program of up to $1 billion of common shares.
What is the filing's referenced supplemental information?
The filing furnishes a press release announcing first-quarter 2025 results as Exhibit 99.1, a Supplemental Information Package reviewed during the conference call as Exhibit 99.2, and consolidated balance sheets and income statements as Exhibit 99.3, which is deemed filed for purposes of Section 18 of the Exchange Act.

04—Continue

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