01—Abstract
Summary
Summary of the 8-K filed January 20, 2026. Cited figures are marked; the original filing is the authoritative source.
KeyCorp reported fourth-quarter 2025 net income from continuing operations attributable to Key common shareholders of $474 milliona, or $.43 per diluted common share, or adjusted net income of $458 million, or $.41 per diluted common share.
For full-year 2025, revenue (TE) was $7.5 billionb, up 16% year-over-year on an adjusted basis, and the company described it as a record. Net interest margin rose to 2.82% in the fourth quarter, up 7 basis points from the third quarter, and net charge-offs declined to 0.39% of average total loans. Common Equity Tier 1 was an estimated 11.7% at December 31, 2025, and KeyCorp repurchased $200 million of common shares during the quarter.
The company also provided 2026 outlook ranges, including net interest income (TE) up 8 to 10%, adjusted noninterest expense up 3 to 4%, and a 4Q27 return on tangible common equity target of 16 to 19%. Management stated it expects to increase capital returns in 2026, and the press release refers to planned share repurchases of $1.2 billionc or more in 2026, as shown in the supplemental slides. On governance, Ruth Ann Gillis and Carlton Highsmith will retire from the Board at the 2026 Annual Meeting, and the Board will nominate Antonio DeSpirito and Christopher L.
Henson as independent directors. Todd Vasos was appointed Lead Independent Director, succeeding Alexander M.
Cutler, who remains an independent director. The Board size will remain at 14 directors.
02—Key points
Key Highlights
- Q4 2025 EPS of $.43 reported, or $.41 adjusted; net income from continuing operations attributable to Key common shareholders of $474 million
- Full-year 2025 revenue (TE) of $7.5 billion, described as a record and up 16% year-over-year adjusted for selected items
- Net interest margin of 2.82% in Q4 2025, up 7 basis points quarter-over-quarter; cost of total deposits declined 16 basis points to 1.81%
- Net loan charge-offs decreased to 0.39% of average total loans in Q4 2025, from 0.42% in Q3 2025; nonperforming loans of $615 million
- CET1 ratio estimated at 11.7% at December 31, 2025; $200 million of common shares repurchased in Q4 2025
- 2026 outlook: net interest income (TE) up 8 to 10%, adjusted noninterest expense up 3 to 4%, NCOs of 40 to 45 basis points of average loans
- Board changes: Todd Vasos named Lead Independent Director; two independent director nominees, Antonio DeSpirito and Christopher L. Henson, to be presented at the 2026 Annual Meeting
03—Questions
Frequently Asked Questions
How did KeyCorp perform in the fourth quarter of 2025?
KeyCorp reported net income from continuing operations attributable to Key common shareholders of $474 million, or $.43 per diluted common share, compared with a net loss of $(279) million, or $(.28) per diluted share, in the fourth quarter of 2024. Adjusted net income was $458 million, or $.41 per diluted share. Total revenue (TE) was $2.0 billion for the quarter.
What drove the change in net interest income and margin?
Net interest income (TE) was $1.22 billion in the fourth quarter of 2025, up $162 million from the year-ago quarter. The filing attributes the increase mainly to lower deposit costs, reinvestment of maturing low-yielding securities and swaps into higher-yielding assets, and a shift toward higher-yielding commercial and industrial loans, partially offset by lower rates on variable-rate earning assets.
What are KeyCorp's 2026 financial outlook ranges?
The supplemental slides project 2026 net interest income (TE) growth of 8 to 10% and noninterest income growth of 3 to 4% on a GAAP basis, with adjusted noninterest expense up 3 to 4%. Average loans are expected to grow 1 to 2%, and NCOs to average loans are expected at 40 to 45 basis points. The company also targets a 16 to 19% return on tangible common equity by the fourth quarter of 2027.
What changes were made to the Board of Directors?
Directors Ruth Ann Gillis and Carlton Highsmith will retire at the 2026 Annual Meeting. The Board will nominate Antonio DeSpirito and Christopher L. Henson for election as independent directors at that meeting. Todd Vasos was appointed Lead Independent Director, succeeding Alexander M. Cutler, who remains a director. Board size will stay at 14.
04—Continue