Keycorp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.75%.
Did KEY Beat Earnings? Q4 2025 Results
KeyCorp closed out fiscal 2025 on a strong note, posting fourth-quarter earnings per share of $0.43 against a consensus estimate of $0.38, a beat of 13.16%, while revenue climbed 7.0% year-over-year to $2.00 billion. The standout driver behind the quarter's performance was a sharp recovery in net interest income, which rose 15% year-over-year on a taxable-equivalent basis to $1.22 billion as lower deposit costs, a better funding mix, and the reinvestment of maturing low-yielding assets pushed net interest margin up 41 basis points to 2.82%. Investment banking and debt placement fees added further momentum, reaching $243.00 million, up 10% year-over-year and 32% sequentially on stronger M&A advisory and commercial debt placement activity. The company also repurchased $200.00 million in common stock during the quarter, roughly double its initial target, helping lift tangible book value per share 18% year-over-year to $13.77, and shares touched a 52-week high of $22.07 in the wake of the results. Looking ahead, management guided for approximately 7% revenue growth and $1.20 billion or more in share repurchases in 2026.
- Lower deposit costs drove net interest margin expansion of 41 bps year-over-year to 2.82%
- Reinvestment of maturing low-yielding investment securities and swaps into higher-yielding assets
- Balance sheet composition shift toward higher-yielding commercial and industrial loans
- Investment banking and debt placement fees up 10% YoY driven by higher M&A advisory and debt placement activity
- Trust and investment services income up 10% YoY on higher market levels and positive net flows
- Corporate services income up 17% YoY on higher client FX and derivatives fees
- Improved funding mix as lower-cost deposits increased while wholesale borrowings declined
- Approximately 1,200 bps of adjusted operating leverage generated in full year 2025
“Our strong fourth quarter and full-year results demonstrate the consistent and significant progress we are making on our path to achieving sustainable mid-to-high teens returns on tangible common equity. Fourth quarter revenue exceeded $2 billion, and full year revenue was a record, up 16% year-over-year. Full year results met or exceeded each of the financial targets we communicated at the beginning of the year.”
KeyCorp CEO, on the earnings call
Forward Guidance & Outlook
For FY2026 vs. FY2025, KeyCorp guided: total revenue (TE) up ~7%; net interest income (TE) up 8–10%; 4Q26 exit NIM of 3.00–3.05% on ~$170 billion average earning assets; noninterest income up 3–4% (adjusted up 5–6%); adjusted noninterest expense up 3–4%; average loans up 1–2% with average commercial loans up ~5%; net charge-offs of 40–45 bps; GAAP tax rate ~22%. Longer-term targets include NIM of 3.25%+ and ROTCE of 15%+ by 4Q27, and 16–19% ROTCE over the long term, with a marked CET1 target of 9.5–10%. The company plans $1.2 billion+ in share repurchases in 2026.
KEY YoY Financials
KEY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.