KeyCorp (KEY) Q2 2025 Earnings
Reported Jul 22, 2025 at 6:32 AM ET · SEC Source
Q2 25 EPS
$0.35
BEAT +2.25%
Est. $0.34
Q2 25 Revenue
$1.83B
BEAT +1.55%
Est. $1.80B
vs S&P Since Q2 25
+10.0%
BEATING MARKET
KEY +29.6% vs S&P +19.5%
Market Reaction
Did KEY Beat Earnings? Q2 2025 Results
KeyCorp posted a solid second quarter in 2025, with earnings per diluted share of $0.35 beating the $0.34 consensus estimate by 2.25%, while revenue of $1.83 billion edged past the $1.80 billion expectation by 1.55%, even as reported revenue fell 31.… Read more KeyCorp posted a solid second quarter in 2025, with earnings per diluted share of $0.35 beating the $0.34 consensus estimate by 2.25%, while revenue of $1.83 billion edged past the $1.80 billion expectation by 1.55%, even as reported revenue fell 31.6% year-over-year amid ongoing balance sheet repositioning. The primary engine behind the beat was a 28% surge in net interest income to $1.15 billion, fueled by lower deposit costs, the repricing of maturing low-yielding securities and swaps, and an improved funding mix that pushed the net interest margin to 2.66%, up 62 basis points from a year ago. Investment banking and debt placement fees added further lift, climbing 41% year-over-year to $178 million on strong syndication and equity issuance activity, with Scotiabank, which holds a 14.9% stake in KeyCorp, anticipating a meaningful profit contribution from its holdings this quarter. Management raised its 2025 net interest income growth outlook to 20-22% and now expects average loans to decline only 1-3%, an improvement from the prior 2-5% forecast, signaling growing confidence in the company's recovery trajectory.
Key Takeaways
- • Net interest income up 28% YoY driven by lower deposit costs, reinvestment of maturing low-yielding securities, and fixed-rate asset repricing
- • Net interest margin expanded 62 basis points YoY to 2.66%
- • Investment banking and debt placement fees up 41% YoY to $178MM reflecting strong syndication, CRE, and equity issuance activity
- • Total deposit costs declined to 1.99%, with cumulative down interest-bearing deposit beta of ~55%
- • Commercial loan growth of $2.1 billion in Q2 driven by C&I loans
- • Credit quality improvement with criticized outstandings declining for sixth consecutive quarter
- • Significant positive operating leverage of 14% on total basis and 3% on fee basis YoY
- • Assets under management reached record $64 billion
- • Commercial payments fee-equivalent revenue grew 9% YoY
KEY YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
KEY Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our second quarter results demonstrate continued strong momentum. Revenue was up 21% year-over-year driven by our clearly defined net interest income tailwinds and 10% growth in noninterest income, while expenses grew 7%. Sequentially, net interest income grew 4%. Credit quality continues to trend in a positive direction with overall credit migration improving for the sixth consecutive quarter.”
— Chris Gorman, Q2 2025 Earnings Press Release
KEY Earnings Trends
KEY vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KEY EPS Trend
Earnings per share: estimate vs actual
KEY Revenue Trend
Quarterly revenue: estimate vs actual
KEY Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.41 | $0.44 | +8.03% | $1.95B | +0.75% |
| Q4 25 BEAT FY | $0.39 | $0.43 | +11.46% | $2.01B | +1.82% |
| FY Full Year | $1.48 | $1.52 | +2.91% | $7.51B | +0.47% |
| Q3 25 BEAT | $0.38 | $0.41 | +7.61% | $1.90B | +0.54% |
| Q2 25 BEAT | $0.34 | $0.35 | +2.25% | $1.83B | +1.55% |