How did KeyCorp's first quarter 2026 earnings compare with the prior year and the prior quarter?

Net income from continuing operations attributable to Key common shareholders was $486 million, or $0.44 per diluted share, compared with $370 million, or $0.33 per diluted share, in the first quarter of 2025 and $474 million, or $0.43 per diluted share, in the fourth quarter of 2025. The fourth quarter adjusted figure was $0.41 per diluted share after excluding a $16 million after-tax FDIC special assessment benefit.

What drove the increase in net interest income and margin?

The filing attributes the year-over-year increase to lower deposit costs from declining interest rates and proactive deposit beta management, reinvestment of maturing low-yielding securities and fixed-rate swaps into higher-yielding assets, and a shift toward higher-yielding commercial and industrial loans. These were partly offset by lower rates on variable-rate earning assets.

How is Key managing capital and returning it to shareholders?

The estimated CET1 ratio was 11.4% at March 31, 2026, and the marked CET1 ratio was 10.0%. Key repurchased $389 million of common shares in the quarter at an average price of $21.47 and plans to repurchase at least $1.3 billion in 2026, with $300 million or more per quarter for the rest of the year. Management also cited a more than 100 basis point benefit to the marked CET1 ratio if the proposed Basel III revisions are implemented as currently proposed.

What is the outlook for 2026 and the longer term?

For 2026, Key expects revenue up about 7%, net interest income up 9% to 10%, noninterest income up 3% to 4%, adjusted noninterest expense up 3% to 4%, and average loans up 2% to 4%. Net charge-offs are expected at 40 to 45 basis points of average loans. Long-term 4Q27 targets are a net interest margin and return on tangible common equity of 3.25% or more and 15% or more (the slide shows ROTCE targets of 16% to 19%), and a marked CET1 ratio of 9.5% to 10%.

Are credit quality trends a concern?

Credit metrics were stable. Net loan charge-offs were $101 million, or 0.38% of average total loans, down from $110 million, or 0.43%, a year earlier. Nonperforming assets rose to $692 million from $627 million in the fourth quarter of 2025, and the allowance for credit losses was $1.7 billion, or 1.60% of period-end loans, with a $5 million reserve build driven by elevated economic uncertainty.

KeyCorp 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 16, 2026. Cited figures are marked; the original filing is the authoritative source.

KeyCorp reported first quarter 2026 net income from continuing operations attributable to Key common shareholders of $486 million^a, or $0.44 per diluted common share, up from $370 million, or $0.33 per diluted share, in the first quarter of 2025.

Fourth quarter 2025 results were $474 million^b, or $0.43 per diluted share, or $458 million and $0.41 per diluted share on an adjusted basis excluding a $16 million after-tax benefit from the updated FDIC special assessment. Total revenue (taxable-equivalent) was $1.95 billion, up 10.2% year-over-year, with net interest income up 11.3% and noninterest income up 8.2%. Net interest margin rose to 2.87%, up 29 basis points year-over-year and 5 basis points sequentially.

Noninterest expense was $1.18 billion^c, up 4.4% year-over-year, and the cash efficiency ratio improved to 60.4%. Credit metrics were stable. Net loan charge-offs were $101 million, or 0.38% of average total loans, and nonperforming assets were $692 million, or 0.63% of period-end portfolio loans plus OREO.

The allowance for credit losses was $1.7 billion^d, or 1.60% of period-end loans. Average loans grew to $107.7 billion, with commercial loans up while consumer loans declined. Average deposits fell to $147.3 billion, reflecting the intentional runoff of brokered CDs, and the cost of total deposits declined to 1.65%.

Capital and shareholder returns remained central to the story. The Common Equity Tier 1 ratio was an estimated 11.4% at March 31, 2026, and the marked CET1 ratio was 10.0%.

Key repurchased $389 million of common shares during the quarter and plans to repurchase at least $1.3 billion in 2026. Management reiterated 2026 guidance for revenue growth of about 7% and a 4Q27 return on tangible common equity target of 16% to 19%.

02—Key points

Key Highlights

Net income from continuing operations to common shareholders of $486 million, or $0.44 per diluted share, up 33% from $0.33 a year earlier
Total taxable-equivalent revenue of $1.95 billion, up 10.2% year-over-year; net interest income up 11.3% and noninterest income up 8.2%
Net interest margin of 2.87%, up 29 basis points year-over-year and 5 basis points sequentially; cost of total deposits fell 16 basis points to 1.65%
Net loan charge-offs of 0.38% of average total loans and nonperforming assets of 0.63% of period-end loans plus OREO and other nonperforming assets
Estimated CET1 ratio of 11.4% and marked CET1 ratio of 10.0%; $389 million of common shares repurchased in the quarter
Investment banking and debt placement fees of $197 million, with the filing describing a record first quarter for that line
Average loans of $107.7 billion, up 3.2% year-over-year, while average deposits of $147.3 billion declined 0.8% year-over-year due to brokered CD runoff

03—Questions

Frequently Asked Questions

How did KeyCorp's first quarter 2026 earnings compare with the prior year and the prior quarter?
Net income from continuing operations attributable to Key common shareholders was $486 million, or $0.44 per diluted share, compared with $370 million, or $0.33 per diluted share, in the first quarter of 2025 and $474 million, or $0.43 per diluted share, in the fourth quarter of 2025. The fourth quarter adjusted figure was $0.41 per diluted share after excluding a $16 million after-tax FDIC special assessment benefit.
What drove the increase in net interest income and margin?
The filing attributes the year-over-year increase to lower deposit costs from declining interest rates and proactive deposit beta management, reinvestment of maturing low-yielding securities and fixed-rate swaps into higher-yielding assets, and a shift toward higher-yielding commercial and industrial loans. These were partly offset by lower rates on variable-rate earning assets.
How is Key managing capital and returning it to shareholders?
The estimated CET1 ratio was 11.4% at March 31, 2026, and the marked CET1 ratio was 10.0%. Key repurchased $389 million of common shares in the quarter at an average price of $21.47 and plans to repurchase at least $1.3 billion in 2026, with $300 million or more per quarter for the rest of the year. Management also cited a more than 100 basis point benefit to the marked CET1 ratio if the proposed Basel III revisions are implemented as currently proposed.
What is the outlook for 2026 and the longer term?
For 2026, Key expects revenue up about 7%, net interest income up 9% to 10%, noninterest income up 3% to 4%, adjusted noninterest expense up 3% to 4%, and average loans up 2% to 4%. Net charge-offs are expected at 40 to 45 basis points of average loans. Long-term 4Q27 targets are a net interest margin and return on tangible common equity of 3.25% or more and 15% or more (the slide shows ROTCE targets of 16% to 19%), and a marked CET1 ratio of 9.5% to 10%.
Are credit quality trends a concern?
Credit metrics were stable. Net loan charge-offs were $101 million, or 0.38% of average total loans, down from $110 million, or 0.43%, a year earlier. Nonperforming assets rose to $692 million from $627 million in the fourth quarter of 2025, and the allowance for credit losses was $1.7 billion, or 1.60% of period-end loans, with a $5 million reserve build driven by elevated economic uncertainty.

04—Continue

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