How did KeyCorp's third-quarter 2025 earnings compare with the prior quarter and the year-earlier period?

Net income from continuing operations attributable to Key common shareholders was $454 million, or $.41 per diluted share, compared with $387 million, or $.35 per diluted share, in the second quarter of 2025. The third quarter of 2024 reported a net loss from continuing operations of $(447) million, or $(.47) per diluted share, which included a $918 million pretax loss on the sale of securities. Adjusted net income for the third quarter of 2024 was $285 million, or $.30 per diluted share.

What drove the increase in net interest income?

The filing attributes the increase in taxable-equivalent net interest income to an improved funding mix as low-cost core deposits grew while wholesale borrowings declined, the redeployment of maturing low-yielding investments and swaps into higher-yielding investments, and growth in commercial and industrial loans. Net interest income also benefited from one additional day in the quarter.

How is credit quality trending?

Management describes credit quality as trending in a positive direction. Net loan charge-offs were $114 million, or 0.42% of average total loans, compared with 0.39% in the second quarter. Nonperforming loans declined to $658 million, and the allowance for credit losses was $1.7 billion, or 1.64% of period-end loans. The filing notes a $7 million reserve release in the quarter.

What long-term targets did management reference?

Chairman and CEO Chris Gorman said he is highly confident Key will reach a 15% or better return on tangible common equity within the next few years. The conference call slides reference a medium-term target for return on tangible common equity of 15.0% or more and a net interest margin target of 3.00% to 3.25%, with the slides noting the target is driven by balance sheet growth and optimization, fee business momentum, and expense discipline.

What is the filing's regulatory capital position?

Key's estimated risk-based capital ratios continued to exceed all well-capitalized benchmarks at September 30, 2025. The Common Equity Tier 1 ratio was an estimated 11.8%, the Tier 1 risk-based capital ratio was 13.5%, and the total risk-based capital ratio was 15.8%. The filing also reports a marked Common Equity Tier 1 ratio of 10.3% on a non-GAAP basis.

KeyCorp 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed October 16, 2025. Cited figures are marked; the original filing is the authoritative source.

KeyCorp reported third-quarter 2025 net income from continuing operations attributable to Key common shareholders of $454 million^a, or $.41 per diluted common share, compared with $387 million, or $.35 per diluted share, in the second quarter of 2025 and a net loss from continuing operations of $(447) million, or $(.47) per diluted share, in the third quarter of 2024.

Adjusted net income was $450 million^b, or $.41 per diluted share. Total revenue (TE) was $1.895 billion, up from $1.840 billion in the prior quarter. Net interest margin (TE) rose to 2.75%, up 9 basis points sequentially, and net interest income (TE) was $1.193 billion.

Noninterest income was $702 million^c, and noninterest expense was $1.177 billion. The provision for credit losses was $107 million, and net loan charge-offs were $114 million, or 0.42% of average total loans. Credit and capital metrics were stable to improving.

Nonperforming assets declined to $668 million^d from $707 million sequentially, and the Common Equity Tier 1 ratio was 11.8% at September 30, 2025, an estimate, compared with 11.7% at June 30, 2025. Average deposits were $150.4 billion, up 2.0% sequentially, and the total cost of deposits declined to 1.97%. Book value per common share rose to $15.86 from $15.32, and tangible book value per share was $13.38.

Return on average tangible common equity from continuing operations was 12.51%, compared with 11.09% in the prior quarter. The filing furnishes the earnings press release, a supplemental information package for the conference call, and consolidated balance sheets and income statements as Exhibit 99.3. Management's commentary highlights assets under management of $68 billion, client deposit growth, and a stated expectation of reaching a return on tangible common equity of 15% or better within the next few years.

02—Key points

Key Highlights

Net income from continuing operations attributable to Key common shareholders was $454 million, or $.41 per diluted share, versus $387 million, or $.35 per diluted share, in 2Q25.
Net interest margin (TE) increased to 2.75%, up 9 basis points from 2.66% in 2Q25, and net interest income (TE) reached $1.193 billion.
Total revenue (TE) was $1.895 billion, and noninterest expense was $1.177 billion; the press release describes positive operating leverage year-over-year on both total and adjusted fee bases.
Net loan charge-offs were $114 million, or 0.42% of average total loans, and the provision for credit losses was $107 million, down from $138 million in 2Q25.
Nonperforming assets fell to $668 million from $707 million sequentially, and the Common Equity Tier 1 ratio was an estimated 11.8% at September 30, 2025.
Average deposits totaled $150.4 billion, up 2.0% sequentially, and the cost of total deposits declined 2 basis points to 1.97%.
Tangible book value per share was $13.38, and return on average tangible common equity from continuing operations was 12.51%.

03—Questions

Frequently Asked Questions

How did KeyCorp's third-quarter 2025 earnings compare with the prior quarter and the year-earlier period?
Net income from continuing operations attributable to Key common shareholders was $454 million, or $.41 per diluted share, compared with $387 million, or $.35 per diluted share, in the second quarter of 2025. The third quarter of 2024 reported a net loss from continuing operations of $(447) million, or $(.47) per diluted share, which included a $918 million pretax loss on the sale of securities. Adjusted net income for the third quarter of 2024 was $285 million, or $.30 per diluted share.
What drove the increase in net interest income?
The filing attributes the increase in taxable-equivalent net interest income to an improved funding mix as low-cost core deposits grew while wholesale borrowings declined, the redeployment of maturing low-yielding investments and swaps into higher-yielding investments, and growth in commercial and industrial loans. Net interest income also benefited from one additional day in the quarter.
How is credit quality trending?
Management describes credit quality as trending in a positive direction. Net loan charge-offs were $114 million, or 0.42% of average total loans, compared with 0.39% in the second quarter. Nonperforming loans declined to $658 million, and the allowance for credit losses was $1.7 billion, or 1.64% of period-end loans. The filing notes a $7 million reserve release in the quarter.
What long-term targets did management reference?
Chairman and CEO Chris Gorman said he is highly confident Key will reach a 15% or better return on tangible common equity within the next few years. The conference call slides reference a medium-term target for return on tangible common equity of 15.0% or more and a net interest margin target of 3.00% to 3.25%, with the slides noting the target is driven by balance sheet growth and optimization, fee business momentum, and expense discipline.
What is the filing's regulatory capital position?
Key's estimated risk-based capital ratios continued to exceed all well-capitalized benchmarks at September 30, 2025. The Common Equity Tier 1 ratio was an estimated 11.8%, the Tier 1 risk-based capital ratio was 13.5%, and the total risk-based capital ratio was 15.8%. The filing also reports a marked Common Equity Tier 1 ratio of 10.3% on a non-GAAP basis.

04—Continue

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