KEYCORP LOWERS ITS PRIME LENDING RATE TO 6.75 PERCENT

Rhea-AI Summary

KeyCorp (NYSE: KEY) said it is lowering its prime lending rate to 6.75% from 7.00%, effective Dec. 11, 2025.

The announcement notes KeyBank is headquartered in Cleveland and reported approximately $187 billion in assets as of Sept. 30, 2025. Key provides deposit, lending, cash management and investment services in 15 states through about 1,000 branches and 1,200 ATMs, and operates corporate and investment banking under the KeyBanc Capital Markets name.

KeyCorp is marking its 200th anniversary in 2025.

Positive

• Prime lending rate lowered to 6.75% from 7.00% effective Dec. 11, 2025
• Reported total assets of $187 billion as of Sept. 30, 2025

Negative

• None.

Key Figures

New prime rate 6.75% Prime lending rate effective Dec. 11, 2025

Prior prime rate 7.00% Previous prime lending rate before reduction

Total assets $187 billion Assets at Sept. 30, 2025

Years in operation 200 years Bicentennial celebrated in 2025

Branch network ≈1,000 branches KeyBank network across served states

ATM network ≈1,200 ATMs KeyBank ATM network

Footprint states 15 states KeyBank operating footprint

Effective date Dec. 11, 2025 Date new prime lending rate takes effect

Market Reality Check

$19.98 Last Close

Volume Volume 32,455,199 is 1.77x the 20-day average of 18,336,837, indicating elevated pre-news activity. high

Technical Shares trade above the 200-day MA, with price at 19.98 versus 200-day MA of 17.14.

Peers on Argus

KEY gained 3.04% with strong volume, while key regional bank peers like BAP, RF, CFG, HBAN, and SHG rose more modestly between 0.28% and 2.78%. No peers appeared in the momentum scanner, suggesting today’s setup leaned more stock-specific than a broad sector-driven move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 05	Investor presentation	Neutral	+0.8%	HoldCo released presentation addressing strategy and capital positioning.
Dec 02	Conference appearance	Neutral	-1.8%	CEO scheduled to discuss performance, strategy, and outlook at conference.
Nov 25	Debt redemption	Positive	+2.7%	Announced redemption of 4.700% senior bank notes due January 2026.
Nov 20	Dividend declaration	Positive	+3.1%	Declared Q4 2025 cash dividend on common and preferred shares.
Nov 20	Macro survey	Neutral	-0.4%	Released middle-market survey on expected impact of OBBBA legislation.

Pattern Detected

Recent news has generally seen positive to modestly positive price reactions, especially around capital actions and dividends.

Recent Company History

This announcement follows a series of communications highlighting KeyCorp’s capital management, investor outreach, and market positioning. In November 2025, the bank announced redemption of 4.700% senior notes and declared a $0.205 common dividend, both followed by positive price moves. Conference presentations in October and December focused on performance, strategy, and outlook. Activist-related materials from HoldCo and macro-focused middle-market survey data rounded out the narrative. The prime rate change adds another balance-sheet and pricing datapoint to this recent flow.

Market Pulse Summary

This announcement highlights KeyCorp’s decision to lower its prime lending rate to 6.75% from 7.00%, effective December 11, 2025, within the context of a large regional footprint and assets of about $187 billion. Recent developments have included debt redemption, regular dividends, and active investor communications. Investors monitoring the story may focus on how this rate change interacts with margin trends, loan growth, and future disclosures in earnings or investor presentations.

Key Terms

prime lending rate financial

"have lowered their prime lending rate to 6.75 percent from 7.00 percent"

The prime lending rate is the interest rate banks typically charge their most creditworthy customers for loans; think of it as the store price that lenders offer to their best buyers. It matters to investors because many consumer and business loan rates, mortgages and corporate borrowing costs are tied to that rate, so changes act like a ripple that affects company profits, consumer spending and overall market valuations.

derivatives financial

"public and private debt and equity, syndications and derivatives to middle"

Derivatives are financial contracts whose value depends on the price or performance of another asset, such as a stock, bond, commodity, currency or interest rate. Investors use them to hedge against risk, to speculate on future price moves, or to gain exposure without owning the asset — like buying insurance or placing a leveraged bet — so they can both protect portfolios and magnify gains or losses, affecting risk and market liquidity.

fdic regulatory

"For more information, visit https://www.key.com/. KeyBank Member FDIC."

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that protects individual and business bank deposits by insuring accounts up to a set limit, acting like a safety net for savers if a bank fails. It matters to investors because FDIC insurance reduces the chance of sudden losses for depositors, supports confidence in the banking system, and can influence the perceived risk and stock value of banks and financial firms.

AI-generated analysis. Not financial advice.

CLEVELAND, Dec. 10, 2025 /PRNewswire/ -- KeyCorp (NYSE: KEY) and its banking affiliates have lowered their prime lending rate to 6.75 percent from 7.00 percent, effective tomorrow, Dec. 11, 2025.

About KeyCorp

In 2025, KeyCorp celebrates its bicentennial, marking 200 years of service to clients and communities from Maine to Alaska. To learn more, visit KeyBank Heritage Center. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion at Sept. 30, 2025. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC.

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SOURCE KeyCorp

FAQ

What change did KeyCorp (KEY) announce to its prime rate on Dec. 10, 2025?

KeyCorp announced the prime lending rate will be lowered to 6.75% from 7.00%, effective Dec. 11, 2025.

When does KeyCorp's new prime rate of 6.75% take effect for KEY customers?

The lower prime rate takes effect on Dec. 11, 2025.

How large is KeyCorp (KEY) by assets reported in the announcement?

The company reported approximately $187 billion in assets as of Sept. 30, 2025.

How extensive is KeyBank's branch and ATM network referenced in the KEY announcement?

KeyBank operates about 1,000 branches and approximately 1,200 ATMs across 15 states.

Does the Dec. 10, 2025 notice mention any other KeyCorp milestones for 2025?

Yes, the company is celebrating its 200th anniversary in 2025.