KeyCorp

KeyCorp (KEY) Q3 2025 Earnings

Reported Oct 16, 2025 at 6:30 AM ET · SEC Source

Q3 25 EPS

$0.41

BEAT +7.61%

Est. $0.38

Q3 25 Revenue

$1.90B

BEAT +0.54%

Est. $1.88B

vs S&P Since Q3 25

+22.8%

BEATING MARKET

KEY +36.6% vs S&P +13.8%

Market Reaction

Did KEY Beat Earnings? Q3 2025 Results

KeyCorp posted a solid third-quarter 2025 earnings beat, with adjusted EPS of $0.41 clearing the $0.38 consensus by 7.61% and revenue of $1.90 billion edging ahead of the $1.88 billion estimate, up 1.6% from a year ago. The headline numbers told only… Read more KeyCorp posted a solid third-quarter 2025 earnings beat, with adjusted EPS of $0.41 clearing the $0.38 consensus by 7.61% and revenue of $1.90 billion edging ahead of the $1.88 billion estimate, up 1.6% from a year ago. The headline numbers told only part of the story, however, as the quarter marked a sharp swing from the year-ago period's net loss of $447 million, which had been weighed down by $918 million in pretax securities repositioning charges. The more telling driver this quarter was net interest margin expansion, with NIM climbing 9 basis points sequentially to 2.75% as low-cost core deposits displaced wholesale borrowings and maturing low-yielding assets repriced higher, pushing tax-equivalent net interest income up 24% year-over-year. Assets under management reached $67.86 billion, up 11% year-over-year, adding further momentum to fee income. Looking ahead, management tightened its full-year guidance, now targeting net interest income growth of roughly 22% and projecting NIM of 2.75% to 2.80% in the fourth quarter, with medium-term ambitions of a 15%-plus return on tangible common equity.

Key Takeaways

  • Net interest income increased 24% YoY driven by lower deposit costs, reinvestment of maturing low-yielding securities, and favorable balance sheet mix shift
  • Net interest margin expanded 58 bps YoY and 9 bps QoQ to 2.75%
  • Adjusted noninterest income grew 8% YoY led by investment banking and trust services
  • More than 1,000 basis points of positive operating leverage year-over-year
  • Average deposits grew 2% QoQ with total deposit costs declining 2 bps to 1.97%
  • Commercial and industrial loan growth of 6.5% YoY
  • Assets under management reached record $68 billion, up 11% YoY
  • Fixed-rate securities and swap repricing into higher-yielding investments
24/7 Wall St

KEY YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

24/7 Wall St

KEY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Our third quarter results demonstrate continued strong momentum. Adjusted revenue was up 17% year-over-year, and we generated more than 1,000 basis points of operating leverage again this quarter. Revenue growth was driven by our clearly defined net interest income tailwinds and adjusted noninterest income growth of 8%, which continues to grow faster than expenses. At the same time, we continue to make meaningful investments in front line bankers and technology that will drive future growth. Tangible book value per share grew 4% sequentially and 14% year-over-year.”

— Chris Gorman, Q3 2025 Earnings Press Release