01—Abstract
Summary
Summary of the 8-K filed July 22, 2025. Cited figures are marked; the original filing is the authoritative source.
KeyCorp reported second quarter 2025 net income from continuing operations attributable to Key common shareholders of $387 milliona, or $.35 per diluted common share, compared with $370 million, or $.33 per diluted common share, in the first quarter of 2025 and $237 million, or $.25 per diluted common share, in the second quarter of 2024.
Total revenue (TE) was $1.84 billionb, up 3.8% from the first quarter and 20.6% from the year-ago quarter, driven by net interest income (TE) of $1.15 billion, up 27.9% year over year, with net interest margin of 2.66%. Noninterest income rose 10.0% year over year to $690 million, led by a $52 million increase in investment banking and debt placement fees, while noninterest expense increased 7.0% to $1.15 billion, primarily on higher personnel costs tied to incentive compensation. Credit metrics were stable to improved.
Net loan charge-offs were $102 millionc, or 0.39% of average total loans, down from $110 million in the first quarter, and the provision for credit losses rose to $138 million. Nonperforming loans were $696 million, or 0.65% of period-end portfolio loans. Average loans were $105.7 billion and average deposits were $147.4 billion, with the cost of total deposits at 1.99%.
Capital remained above well-capitalized benchmarks, with an estimated Common Equity Tier 1 ratio of 11.7% at June 30, 2025, and assets of approximately $185 billiond. The filing furnishes the earnings press release, a supplemental information package, and financial statements as exhibits.
02—Key points
Key Highlights
- Net income from continuing operations to common shareholders of $387 million, or $.35 per diluted share, up from $370 million ($.33) in the first quarter of 2025 and $237 million ($.25) in the second quarter of 2024
- Total revenue (TE) of $1.84 billion, up 20.6% year over year, with net interest income (TE) of $1.15 billion up 27.9% and noninterest income of $690 million up 10.0%
- Net interest margin (TE) of 2.66%, up from 2.58% in the first quarter of 2025 and 2.04% in the second quarter of 2024
- Noninterest expense of $1.15 billion, up 7.0% year over year, primarily from higher personnel expense related to incentive compensation and continued investments in people
- Net loan charge-offs of $102 million (0.39% of average total loans), down from $110 million in the first quarter; nonperforming loans of $696 million (0.65% of period-end portfolio loans)
- Average loans of $105.7 billion, down $3.2 billion year over year, while average deposits of $147.4 billion rose $3.3 billion year over year; cost of total deposits declined to 1.99%
- Estimated Common Equity Tier 1 ratio of 11.7% at June 30, 2025, with all risk-based capital ratios above well-capitalized benchmarks
03—Questions
Frequently Asked Questions
How did KeyCorp's second quarter 2025 earnings compare with prior periods?
Net income from continuing operations attributable to Key common shareholders was $387 million, or $.35 per diluted share, versus $370 million, or $.33, in the first quarter of 2025 and $237 million, or $.25, in the second quarter of 2024. The filing states that the second quarter of 2024 included $4 million, after-tax, of FDIC special assessment charges.
What drove revenue growth this quarter?
Total revenue (TE) rose 20.6% year over year to $1.84 billion. Net interest income (TE) increased $251 million, reflecting lower deposit costs, reinvestment of low-yielding securities, and fixed-rate loan and swap repricing. Noninterest income increased $63 million, led by a $52 million increase in investment banking and debt placement fees.
How did credit quality trend?
Net loan charge-offs were $102 million, or 0.39% of average total loans, down from $110 million, or 0.43%, in the first quarter of 2025. The provision for credit losses was $138 million, up from $118 million in the first quarter, reflecting a larger reserve build. The allowance for credit losses was $1.7 billion, or 1.64% of period-end loans.
What is the company's capital position?
At June 30, 2025, the estimated Common Equity Tier 1 ratio was 11.7% and the Tier 1 risk-based capital ratio was 13.4%, both above well-capitalized benchmarks. The tangible common equity to tangible assets ratio rose to 7.8% from 7.4% in the first quarter of 2025.
What do the exhibits to this filing contain?
Exhibit 99.1 is the press release announcing second quarter 2025 results, Exhibit 99.2 is the Supplemental Information Package reviewed during the conference call and webcast, and Exhibit 99.3 contains the consolidated balance sheets and consolidated statements of income, which are filed for purposes of Section 18 of the Exchange Act.
04—Continue