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  4. KEYCORP REPORTS FOURTH QUARTER 2025 NET INCOME OF $474 MILLION, OR $.43 PER DILUTED COMMON SHARE

KEYCORP REPORTS FOURTH QUARTER 2025 NET INCOME OF $474 MILLION, OR $.43 PER DILUTED COMMON SHARE

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Rhea-AI Summary

KeyCorp (NYSE: KEY) reported Q4 2025 net income $474 million, or $0.43 per diluted share, and adjusted net income $458 million, or $0.41 per diluted share. Q4 revenue $2.00 billion; full-year revenue a record $7.5 billion, up 16% year-over-year (adjusted). Taxable-equivalent net interest income was $1.22 billion and net interest margin was 2.82%. Pre-provision net revenue rose $46 million sequentially and full-year pre-provision net revenue increased 44% (adjusted). Assets under management reached a record $70 billion. Common Equity Tier 1 ratio was estimated at 11.7%.

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Positive

  • Record full-year revenue of $7.5 billion (+16% adjusted YoY)
  • Q4 net income of $474 million (earnings per share $0.43)
  • Taxable-equivalent net interest income of $1.22 billion
  • Net interest margin of 2.82% (up 41 bps YoY)
  • Repurchased $200 million of common shares in Q4
  • Assets under management reached a record $70 billion

Negative

  • Time deposits declined 21.5% YoY
  • Operating lease income and other leasing gains down 40.0% YoY

News Market Reaction

-0.38%
1 alert
-0.38% News Effect

On the day this news was published, KEY declined 0.38%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $474 million Q4 2025 EPS (diluted): $0.43 Q4 2025 revenue: $2.005 billion +5 more
8 metrics
Q4 2025 net income $474 million Income from continuing operations attributable to common shareholders
Q4 2025 EPS (diluted) $0.43 Income from continuing operations per diluted common share
Q4 2025 revenue $2.005 billion Total taxable-equivalent revenue in the quarter
Full-year 2025 revenue $7.5 billion Record full-year revenue, up 16% year-over-year adjusted for selected items
Net interest margin 2.82% Q4 2025 net interest margin, up 7 bps quarter-over-quarter
Common Equity Tier 1 ratio 11.7% Estimated CET1 at December 31, 2025
Net loan charge-offs ratio 0.39% Net loan charge-offs to average total loans in Q4 2025
Assets under management $70 billion Record AUM level mentioned by management

Market Reality Check

Price: $23.21 Vol: Volume 14,827,612 vs 20-d...
normal vol
$23.21 Last Close
Volume Volume 14,827,612 vs 20-day avg 12,804,945 (1.16x average) ahead of the earnings release. normal
Technical Trading above 200-day MA; price 21.17 vs 200-day MA 17.77, and about 2.67% below the 52-week high.

Peers on Argus

KEY was down 0.28% while key regional bank peers like BAP (+1.53%), RF (+0.43%),...

KEY was down 0.28% while key regional bank peers like BAP (+1.53%), RF (+0.43%), CFG (+0.53%) and HBAN (+0.59%) traded higher, indicating a stock-specific setup rather than a sector-wide move.

Historical Context

5 past events · Latest: Dec 10 (Neutral)
Pattern 5 events
Date Event Sentiment Move Catalyst
Dec 10 Prime rate change Neutral +2.7% Prime lending rate cut to 6.75% from 7.00%.
Dec 05 Investor presentation Neutral +0.8% HoldCo Asset Management released a presentation to KEY’s directors.
Dec 02 Conference appearance Neutral -1.8% Announcement of CEO presentation at Goldman Sachs conference.
Nov 25 Debt redemption Positive +2.7% Redemption of 4.700% senior bank notes due January 2026.
Nov 20 Dividend declaration Positive +3.1% Declared Q4 2025 common dividend of $0.205 per share.
Pattern Detected

Recent company news has generally seen modest positive price reactions, with one negative reaction to an investor conference announcement, suggesting mostly aligned but occasionally mixed responses to corporate updates.

Recent Company History

Over the last few months, KEY has reported steady operational and capital actions. It lowered its prime lending rate to 6.75% and highlighted a franchise with about $187 billion in assets and roughly 1,000 branches and 1,200 ATMs. The company redeemed 4.700% senior bank notes and maintained common dividends of $0.205 per share. Activist engagement and conference appearances underscored investor focus on strategy. Against this backdrop, the latest earnings show higher revenue, improved asset quality, and strong capital metrics.

Market Pulse Summary

This announcement highlights solid Q4 performance, with net income of $474 million, EPS of $0.43, an...
Analysis

This announcement highlights solid Q4 performance, with net income of $474 million, EPS of $0.43, and total revenue of $2.005 billion. Full-year revenue reached a record $7.5 billion, while net interest margin improved to 2.82% and asset quality strengthened, with net loan charge-offs at 0.39%. Capital metrics, including an estimated CET1 ratio of 11.7%, remained robust. Investors may watch future quarters for trends in deposit costs, loan growth mix, fee income momentum, and credit provisioning to gauge the durability of these results.

Key Terms

net interest margin, basis points, nonperforming assets, net charge-offs, +4 more
8 terms
net interest margin financial
"Taxable-equivalent net interest income was $1.22 billion... and the net interest margin was 2.82%."
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
basis points financial
"net interest margin of 2.82% increased 7 bps"
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
nonperforming assets financial
"Nonperforming assets decreased 6% quarter-over-quarter"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
net charge-offs financial
"Net charge-offs decreased 3 bps to 39 bps"
Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.
common equity tier 1 regulatory
"Common Equity Tier 1 ratio of 11.7%(c);"
Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.
tangible common equity financial
"returns on tangible common equity. Fourth quarter revenue exceeded..."
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
taxable equivalent financial
"Taxable-equivalent net interest income was $1.22 billion for the fourth quarter"
Taxable equivalent is the pretax yield an investor would need from a taxable investment to match the after-tax return of a tax-exempt investment. It lets investors compare different income sources on an equal footing—like converting sale prices to the same currency—so you can see which option actually pays more after taxes. This matters for portfolio choices and measuring true return.
allowance for credit losses financial
"Allowance for credit losses | 1,740 | 1,736 | 1,699"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

AI-generated analysis. Not financial advice.

Revenue of $2.0 billion; Record full year revenue of $7.5 billion, up 16% year-over-year adjusted for selected items(a),(b)

Pre-provision net revenue(b) increased $46 million quarter-over-quarter; Full year pre-provision net revenue increased 44% year-over-year adjusted for selected items(a),(b) 

Net interest income increased 3% quarter-over-quarter, and net interest margin of 2.82% increased 7 bps

Nonperforming assets decreased 6% quarter-over-quarter; Net charge-offs decreased 3 bps to 39 bps

Common Equity Tier 1 ratio of 11.7%(c); Repurchased $200 million of common shares during the quarter

CLEVELAND, Jan. 20, 2026 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $474 million, or $.43 per diluted common share, or adjusted net income of $458 million, or $.41 per diluted common share(b), for the fourth quarter of 2025. The fourth quarter of 2025 included a $16 million after-tax benefit related to the updated FDIC special assessment(a). For the third quarter of 2025, net income from continuing operations attributable to Key common shareholders was $454 million, or $.41 per diluted common share, or adjusted net income of $450 million, or $.41 per diluted common share(b). For the fourth quarter of 2024, KeyCorp reported a net loss from continuing operations attributable to Key common shareholders of $(279) million, or $(.28) per diluted common share, or adjusted net income of $378 million, or $.38 per diluted common share(b). Included in the fourth quarter of 2024 are after-tax charges of $(657) million, or $(.66) per diluted common share, related to the loss on the sale of securities(a), a $2 million after-tax charge related to the Scotiabank investment agreement valuation(a), and a $2 million after-tax benefit related to the updated FDIC special assessment(a).

Comments from Chairman and CEO, Chris Gorman

"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(b). Full year results met or exceeded each of the financial targets we communicated at the beginning of the year. During the year, we generated approximately 1,200 basis points of adjusted operating leverage(b) and 280 basis points of adjusted fee-based operating leverage(b). Tangible book value per share grew 3% sequentially and 18% year-over-year.

In addition to driving greater return on capital, we remain committed to the return of capital. To this end, we resumed share repurchases at an accelerated pace, buying back $200 million of common shares in the fourth quarter while maintaining peer-leading capital ratios. Given our excess capital position and meaningful capital generation capabilities, we are well positioned to further increase our return of capital to our shareholders in 2026. 

Looking forward, I am confident that we will deliver another year of strong organic revenue and earnings growth. Our strategic investments - particularly in front-line bankers and technology - continue to fuel organic growth and enhance our ability to deliver best-in-class capabilities and service to our clients. Business momentum remains strong. Assets under management reached a record $70 billion. Investment banking and debt placement fees recorded the second-best annual performance in our history, and pipelines remain elevated.

I am incredibly proud of our results, our continued momentum, and most importantly, the talented teammates behind our success. This morning, we announced changes to the composition of our Board which reflect strong leadership that will drive the next phase of value creation for Key. I remain confident that our focus, resilience, and dedication will continue to deliver value to the stakeholders we serve – our shareholders, our clients, and our communities."

(a) See table on page 25 for more information on Selected Items Impact on Earnings.

(b) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "adjusted revenue", "pre-provision net revenue", "adjusted pre-provision net revenue", "adjusted noninterest income", "adjusted noninterest expense", "adjusted total operating leverage", "adjusted fee-based operating leverage", "adjusted net income", and "adjusted earnings per share". The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(c) December 31, 2025 ratio is estimated

 

Selected Financial Highlights















Dollars in millions, except per share data





Change 4Q25 vs.



4Q25

3Q25

4Q24


3Q25

4Q24

Income (loss) from continuing operations attributable to Key common shareholders

$      474

$      454

$    (279)


4.4 %

N/M

Income (loss) from continuing operations attributable to Key common shareholders per
      common share — assuming dilution

.43

.41

(.28)


4.9

N/M

Book value at period end

16.27

15.86

14.21


2.6

14.5 %

Return on average tangible common equity from continuing operations (a)

12.43 %

12.51 %

(9.69) %


    (8) bps

N/M

Return on average total assets from continuing operations

1.08

1.04

(.52)


4

     160 bps

Common Equity Tier 1 ratio (b)

11.7

11.8

11.9


(10)

(20)

Net interest margin (TE) from continuing operations

2.82

2.75

2.41


7

41











(a)

The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b)

December 31, 2025 ratio is estimated.

TE = Taxable Equivalent, N/M = Not Meaningful

 

INCOME STATEMENT HIGHLIGHTS














Revenue














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Net interest income (TE)

$      1,223

$      1,193

$      1,061


2.5 %

15.3 %

Noninterest income

782

702

(196)


11.4

N/M

Total revenue (TE)

$      2,005

$      1,895

$        865


5.8 %

131.8 %









TE = Taxable Equivalent, N/M = Not Meaningful

Taxable-equivalent net interest income was $1.22 billion for the fourth quarter of 2025 and the net interest margin was 2.82%. Compared to the fourth quarter of 2024, net interest income increased by $162 million, and the net interest margin increased by 41 basis points. These increases primarily reflect lower deposit costs, the reinvestment of proceeds from maturing low-yielding investment securities, swaps and fixed-rate loans into higher-yielding investments, and the repositioning of the available-for-sale portfolio during the fourth quarter of 2024. Additionally, the balance sheet composition shifted to reflect a more favorable mix of higher-yielding commercial and industrial loans and an improved funding mix as lower-cost deposits increased while wholesale borrowings declined. These benefits were partially offset by the impact of lower interest rates on variable-rate earning assets.

Compared to the third quarter of 2025, taxable-equivalent net interest income increased by $30 million, and the net interest margin increased by 7 basis points. These increases were driven by lower deposit costs, an improved funding mix as lower-cost deposit balances increased while wholesale borrowings declined, and a shift in the balance sheet composition to a more favorable mix of higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on variable-rate earning assets.

Noninterest Income














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Trust and investment services income

$        156

$        150

$        142


4.0 %

9.9 %

Investment banking and debt placement fees

243

184

221


32.1

10.0

Cards and payments income

84

86

85


(2.3)

(1.2)

Service charges on deposit accounts

78

75

65


4.0

20.0

Corporate services income

81

72

69


12.5

17.4

Commercial mortgage servicing fees

68

73

68


(6.8)

—

Corporate-owned life insurance income

40

35

36


14.3

11.1

Consumer mortgage income

16

14

16


14.3

—

Operating lease income and other leasing gains

9

11

15


(18.2)

(40.0)

Other income

7

8

(5)


(12.5)

N/M

Net securities gains (losses)

—

(6)

(908)


N/M

N/M

Total noninterest income

$        782

$        702

$       (196)


11.4 %

N/M









N/M = Not Meaningful

Compared to the fourth quarter of 2024, noninterest income increased by $978 million. The increase was primarily driven by the impact of a $915 million loss on the sale of securities as part of the strategic repositioning of the portfolio in the fourth quarter of 2024. Adjusted noninterest income(a) grew 8% primarily driven by a $22 million increase in investment banking and debt placement fees, a $12 million increase in corporate services income, and continued momentum in trust and investment services and commercial payments.

Compared to the third quarter of 2025, noninterest income increased by $80 million. The increase was driven by a $59 million increase in investment banking and debt placement fees reflective of higher merger and acquisition advisory fees as well as commercial debt placement fees, a $9 million increase in corporate services income, and a $6 million increase in trust and investment services income.

Noninterest Expense














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Personnel expense

$        790

$        742

$        734


6.5 %

7.6 %

Net occupancy

69

65

67


6.2

3.0

Computer processing

106

105

107


1.0

(.9)

Business services and professional fees

61

44

55


38.6

10.9

Equipment

22

20

20


10.0

10.0

Operating lease expense

8

9

15


(11.1)

(46.7)

Marketing

28

22

33


27.3

(15.2)

Other expense

157

170

198


(7.6)

(20.7)

Total noninterest expense

$      1,241

$      1,177

$      1,229


5.4 %

1.0 %








Compared to the fourth quarter of 2024, noninterest expense increased by $12 million. The increase was predominantly driven by a $56 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, continued investments in people, and employee benefits. These were partially offset by a decrease in other expense related to a $21 million benefit associated with the updated FDIC special assessment.

Compared to the third quarter of 2025, noninterest expense increased by $64 million. The increase was predominantly driven by a $48 million increase in personnel expense, primarily related to incentive compensation associated with noninterest income growth, seasonally higher employee benefits, and continued investments in people. Business services and professional fees increased by $17 million due to technology-related investments and seasonality. These were partially offset by a decrease in other expense related to a $21 million benefit associated with the updated FDIC special assessment.

(a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations related to "adjusted noninterest income". The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

 

BALANCE SHEET HIGHLIGHTS














Average Loans














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Commercial and industrial (a)

$    57,541

$    56,571

$    52,887


1.7 %

8.8 %

Other commercial loans

18,497

18,826

19,202


(1.7)

(3.7)

Total consumer loans

30,278

30,830

32,622


(1.8)

(7.2)

Total loans

$  106,316

$  106,227

$  104,711


0.1 %

1.5 %










(a)

Commercial and industrial average loan balances include $211 million, $214 million, and $216 million of assets from commercial credit cards at December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

Average loans were $106.3 billion for the fourth quarter of 2025, an increase of $1.6 billion compared to the fourth quarter of 2024. Average commercial loans increased by $3.9 billion, primarily driven by a $4.7 billion increase in commercial and industrial loans, partially offset by modest reduction in commercial real estate loans. Average consumer loans declined by $2.3 billion, reflective of the intentional run-off of low-yielding loans, primarily consumer mortgages.

Compared to the third quarter of 2025, average loans increased by $89 million. Average commercial loans increased $641 million, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $552 million, reflective of the intentional run-off of low-yielding loans.

Average Deposits














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Non-time deposits

$  136,853

$  135,135

$  132,092


1.3 %

3.6 %

Time deposits

13,857

15,239

17,641


(9.1)

(21.5)

Total deposits

$  150,710

$  150,374

$  149,733


.2 %

.7 %








Cost of total deposits

1.81 %

1.97 %

2.18 %


      (16) bps

      (37) bps








Average deposits totaled $150.7 billion for the fourth quarter of 2025, an increase of $977 million compared to the year-ago quarter, reflecting growth in commercial deposits.

Compared to the third quarter of 2025, average deposits increased by $336 million, driven by higher commercial client balances which offset a $1.3 billion decline in brokered CDs. The rate paid on interest-bearing deposits declined by 20 basis points, and the overall cost of deposits declined by 16 basis points to 1.81%.

ASSET QUALITY














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Net loan charge-offs

$      104

$      114

$      114


(8.8) %

(8.8) %

Net loan charge-offs to average total loans

.39 %

.42 %

.43 %


    (3) bps

    (4) bps

Nonperforming loans at period end

$      615

$      658

$      758


(6.5) %

(18.9) %

Nonperforming assets at period end

627

668

772


(6.1)

(18.8)

Allowance for loan and lease losses

1,427

1,444

1,409


(1.2)

1.3

Allowance for credit losses

1,740

1,736

1,699


0.2

2.4

Provision for credit losses

108

107

39


0.9

N/M








Allowance for loan and lease losses to nonperforming loans

232 %

219 %

186 %


N/M

N/M

Allowance for credit losses to nonperforming loans

283

264

224


N/M

N/M









N/M = Not Meaningful

Net loan charge-offs for the fourth quarter of 2025 totaled $104 million, or 0.39% of average total loans. These results compare to $114 million, or 0.43%, for the fourth quarter of 2024 and $114 million, or 0.42%, for the third quarter of 2025.

Key's allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans at December 31, 2025, compared to 1.63% at December 31, 2024, and 1.64% at September 30, 2025. A relatively stable reserve build of $4 million during the fourth quarter of 2025 was the result of the net impact of improving credit quality trends and resilient economic forecasts offset by growth in unfunded commitments.

At December 31, 2025, Key's nonperforming loans totaled $615 million, which represented 0.58% of period-end portfolio loans. These results compare to 0.73% at December 31, 2024, and 0.62% at September 30, 2025. Nonperforming assets at December 31, 2025, totaled $627 million, and represented 0.59% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.74% at December 31, 2024, and 0.63% at September 30, 2025.

CAPITAL

Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at December 31, 2025.

Capital Ratios









12/31/2025

9/30/2025

12/31/2024

Common Equity Tier 1 (a)

11.7 %

11.8 %

11.9 %

Tier 1 risk-based capital (a)

13.4

13.5

13.7

Total risk-based capital (a)

15.6

15.8

16.2

Tangible common equity to tangible assets (b)

8.4

8.1

7.0

Leverage (a)

10.5

10.4

10.0







(a)

December 31, 2025 ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision.

(b)

The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

Key's regulatory capital position remained strong in the fourth quarter of 2025. As shown in the preceding table, at December 31, 2025, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.7% and 13.4%, respectively.

Summary of Changes in Common Shares Outstanding













In thousands





Change 4Q25 vs.



4Q25

3Q25

4Q24


3Q25

4Q24

Shares outstanding at beginning of period

1,112,952

1,112,453

991,251


—

12.3 %

Share repurchases

(11,109)

—

—


N/M

N/M

Shares issued under employee compensation plans (net of cancellations and
returns)

558

499

493


11.8 %

13.2

Shares issued under Scotiabank investment agreement

—

—

115,042


—

N/M


Shares outstanding at end of period

1,102,401

1,112,952

1,106,786


(.9) %

(.4) %










N/M = Not Meaningful

During the fourth quarter of 2025, Key declared a dividend of $.205 per common share. The reduction in share count was driven by $200 million of common shares repurchased.

LINE OF BUSINESS RESULTS 

The following table shows the contribution made by each major business segment to Key's taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.

Major Business Segments















Dollars in millions





Change 4Q25 vs.



4Q25

3Q25

4Q24


3Q25

4Q24

Revenue from continuing operations (TE)







Consumer Bank

$         948

$         935

$         865


1.4 %

9.6 %

Commercial Bank

1,109

1,014

1,001


9.4

10.8

Other (a)

(52)

(54)

(1,001)


3.7

94.8

     Total

$       2,005

$       1,895

$         865


5.8 %

131.8 %









Income (loss) from continuing operations attributable to Key







Consumer Bank

$         137

$         152

$           83


(9.9) %

65.1 %

Commercial Bank

410

367

381


11.7

7.6

Other (a)

(38)

(29)

(708)


(31.0)

94.6

     Total

$         509

$         490

$        (244)


3.9 %

308.6 %











(a)

Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represent the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

TE = Taxable Equivalent

 

Consumer Bank














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Summary of operations







Net interest income (TE)

$         696

$         691

$         632


.7 %

10.1 %

Noninterest income

252

244

233


3.3

8.2

Total revenue (TE)

948

935

865


1.4

9.6

Provision for credit losses

32

40

43


(20.0)

(25.6)

Noninterest expense

735

695

713


5.8

3.1

Income (loss) before income taxes (TE)

181

200

109


(9.5)

66.1

Allocated income taxes (benefit) and TE adjustments

44

48

26


(8.3)

69.2

Net income (loss) attributable to Key

$         137

$         152

$           83


(9.9) %

65.1 %








Average balances







Loans and leases

$     34,683

$     35,363

$     37,567


(1.9) %

(7.7) %

Total assets

37,731

38,374

40,563


(1.7)

(7.0)

Deposits

87,738

87,692

87,476


.1

.3








Assets under management at period end

$     69,964

$     67,855

$     61,361


3.1 %

14.0 %









TE = Taxable Equivalent

 

Additional Consumer Bank Data














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Noninterest income







Trust and investment services income

$       128

$       124

$       115


3.2 %

11.3 %

Service charges on deposit accounts

38

36

32


5.6

18.8

Cards and payments income

60

61

61


(1.6)

(1.6)

Consumer mortgage income

16

14

17


14.3

(5.9)

Other noninterest income

10

9

8


11.1

25.0

Total noninterest income

$       252

$       244

$       233


3.3 %

8.2 %








Average deposit balances







Money market deposits

$  35,390

$  35,278

$  31,968


.3 %

10.7 %

Demand deposits

22,879

22,604

22,442


1.2

1.9

Savings deposits

4,177

4,291

4,391


(2.7)

(4.9)

Time deposits

11,061

11,113

13,979


(.5)

(20.9)

Noninterest-bearing deposits

14,231

14,406

14,696


(1.2)

(3.2)

Total deposits

$  87,738

$  87,692

$  87,476


.1 %

.3 %








Other data







Branches

940

942

943




Automated teller machines

1,120

1,152

1,182











Consumer Bank Summary of Operations (4Q25 vs. 4Q24)

  • Key's Consumer Bank recorded net income attributable to Key of $137 million for the fourth quarter of 2025, compared to $83 million for the year-ago quarter
  • Taxable-equivalent net interest income increased by $64 million, or 10.1%, compared to the fourth quarter of 2024
  • Average loans and leases decreased $2.9 billion, or 7.7%, from the fourth quarter of 2024, driven by intentional run-off of low-yielding loans
  • Average deposits increased $262 million, or 0.3%, from the fourth quarter of 2024. The increase was driven by growth in money market deposits, offset by a decrease in time deposits
  • Provision for credit losses decreased $11 million compared to the fourth quarter of 2024 driven by lower charge-offs and the impacts from ongoing loan run-off
  • Noninterest income increased $19 million from the year-ago quarter, primarily driven by higher trust and investment services income
  • Noninterest expense increased $22 million from the year-ago quarter, primarily driven by higher support and overhead expense

Commercial Bank














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Summary of operations







Net interest income (TE)

$         616

$         587

$         537


4.9 %

14.7 %

Noninterest income

493

427

464


15.5

6.3

Total revenue (TE)

1,109

1,014

1001


9.4

10.8

Provision for credit losses

73

68

(3)


7.4

N/M

Noninterest expense

512

482

515


6.2

(.6)

Income (loss) before income taxes (TE)

524

464

489


12.9

7.2

Allocated income taxes and TE adjustments

114

97

108


17.5

5.6

Net income (loss) attributable to Key

$         410

$         367

$         381


11.7 %

7.6 %








Average balances







Loans and leases

$     71,104

$     70,326

$     66,691


1.1 %

6.6 %

Loans held for sale

1,140

1,224

1,247


(6.9)

(8.6)

Total assets

80,357

79,733

76,433


0.8

5.1

Deposits

60,436

58,483

59,687


3.3

1.3









TE = Taxable Equivalent, N/M = Not Meaningful

 

Additional Commercial Bank Data














Dollars in millions





Change 4Q25 vs.


4Q25

3Q25

4Q24


3Q25

4Q24

Noninterest income







Trust and investment services income

$           28

$           26

$           27


7.7 %

3.7 %

Investment banking and debt placement fees

244

183

220


33.3

10.9

Cards and payments income

22

21

20


4.8

10.0

Service charges on deposit accounts

39

37

32


5.4

21.9

Corporate services income

75

69

67


8.7

11.9

Commercial mortgage servicing fees

67

73

67


(8.2)

—

Operating lease income and other leasing gains

9

10

15


(10.0)

(40.0)

Other noninterest income

9

8

16


12.5

(43.8)

Total noninterest income

$         493

$         427

$         464


15.5 %

6.3 %








Commercial Bank Summary of Operations (4Q25 vs. 4Q24)

  • Key's Commercial Bank recorded net income attributable to Key of $410 million for the fourth quarter of 2025, compared to $381 million for the year-ago quarter
  • Taxable-equivalent net interest income increased by $79 million, or 14.7%, compared to the fourth quarter of 2024
  • Average loan and lease balances increased $4.4 billion, or 6.6%, compared to the fourth quarter of 2024, driven by an increase in commercial and industrial loans
  • Average deposit balances increased $749 million compared to the fourth quarter of 2024, driven by higher client deposits
  • Provision for credit losses increased $76 million compared to the fourth quarter of 2024, driven by higher loan balances and commitments
  • Noninterest income increased $29 million compared to the fourth quarter of 2024, primarily driven by an increase in investment banking and debt placement fees and corporate services income
  • Noninterest expense decreased $3 million compared to the fourth quarter of 2024, primarily driven by a decrease in other direct noninterest expense

*******************************************

KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $184 billion at December 31, 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 950 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.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as "goal," "objective," "plan," "expect," "assume," "anticipate," "intend," "project," "believe," "estimate," or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2024 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the "SEC") and are or will be available on Key's website (www.key.com/ir) and on the SEC's website (www.sec.gov). These factors may include, among others, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions, and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

A live Internet broadcast of KeyCorp's conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts' questions can be accessed through the Investor Relations section at https://www.key.com/ir at 8:00 a.m. ET, on January 20, 2026. A replay of the call will be available on our website through January 20, 2027.

*****

KeyCorp
Fourth Quarter 2025
Financial Supplement

Page


12

Basis of Presentation

13

Financial Highlights

15

GAAP to Non-GAAP Reconciliation

18

Consolidated Balance Sheets

19

Consolidated Statements of Income

20

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations

22

Noninterest Expense

22

Personnel Expense

22

Loan Composition

22

Loans Held for Sale Composition

23

Summary of Changes in Loans Held for Sale

23

Summary of Loan and Lease Loss Experience From Continuing Operations

25

Asset Quality Statistics From Continuing Operations

25

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

25

Summary of Changes in Nonperforming Loans From Continuing Operations

26

Line of Business Results

26

Selected Items Impact on Earnings

Basis of Presentation

Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Key's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key's website (www.key.com/ir).  

Forward-Looking Non-GAAP Financial Measures 
From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.

Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.

Taxable Equivalent
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt loans, and certain lease assets, on a common basis that facilitates comparison of results to peers.

Earnings Per Share Equivalent 
Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.

Financial Highlights

(Dollars in millions, except per share amounts)




Three months ended




12/31/2025

9/30/2025

12/31/2024

Summary of operations





Net interest income (TE)

$         1,223

$         1,193

$         1,061


Noninterest income

782

702

(196)


     Total revenue (TE)

2,005

1,895

865


Provision for credit losses

108

107

39


Noninterest expense

1,241

1,177

1,229


Income (loss) from continuing operations attributable to Key

509

490

(244)


Income (loss) from discontinued operations, net of taxes

1

(1)

—


Net income (loss) attributable to Key

510

489

(244)








Income (loss) from continuing operations attributable to Key common shareholders

474

454

(279)


Income (loss) from discontinued operations, net of taxes

1

(1)

—


Net income (loss) attributable to Key common shareholders

475

453

(279)

Per common share





Income (loss) from continuing operations attributable to Key common shareholders

$            .43

$            .41

$           (.28)


Income (loss) from discontinued operations, net of taxes

—

—

—


Net income (loss) attributable to Key common shareholders (a)

.43

.41

(.28)








Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution

.43

.41

(.28)


Income (loss) from discontinued operations, net of taxes — assuming dilution

—

—

—


Net income (loss) attributable to Key common shareholders — assuming dilution (a)

.43

.41

(.28)








Cash dividends declared

.205

.205

.205


Book value at period end

16.27

15.86

14.21


Tangible book value at period end

13.77

13.38

11.70


Market price at period end

20.64

18.69

17.14

Performance ratios





From continuing operations:





Return on average total assets

1.08 %

1.04 %

(.52) %


Return on average common equity

10.51

10.49

(7.80)


Return on average tangible common equity (b)

12.43

12.51

(9.69)


Net interest margin (TE)

2.82

2.75

2.41


Cash efficiency ratio (b)

61.6

61.8

141.3


From consolidated operations:





Return on average total assets

1.08 %

1.04 %

(.52) %


Return on average common equity

10.54

10.47

(7.80)


Return on average tangible common equity (b)

12.46

12.48

(9.69)


Net interest margin (TE)

2.81

2.74

2.41


Loan to deposit (c)

72.5

71.0

70.3

Capital ratios at period end





Key shareholders' equity to assets

11.1 %

10.7 %

9.7 %


Key common shareholders' equity to assets

9.7

9.4

8.4


Tangible common equity to tangible assets (b)

8.4

8.1

7.0


Common Equity Tier 1 (d)

11.7

11.8

11.9


Tier 1 risk-based capital (d)

13.4

13.5

13.7


Total risk-based capital (d)

15.6

15.8

16.2


Leverage (d)

10.5

10.4

10.0

Asset quality — from continuing operations





Net loan charge-offs

$           104

$           114

$           114


Net loan charge-offs to average loans

.39 %

.42 %

.43 %


Allowance for loan and lease losses

$         1,427

$         1,444

$         1,409


Allowance for credit losses

1,740

1,736

1,699


Allowance for loan and lease losses to period-end loans

1.34 %

1.36 %

1.35 %


Allowance for credit losses to period-end loans

1.63

1.64

1.63


Allowance for loan and lease losses to nonperforming loans

232

219

186


Allowance for credit losses to nonperforming loans

283

264

224


Nonperforming loans at period-end

$           615

$           658

$           758


Nonperforming assets at period-end

627

668

772


Nonperforming loans to period-end portfolio loans

.58 %

.62 %

.73 %


Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

.59

.63

.74

Trust assets





Assets under management

$       69,964

$       67,855

$       61,361

Other data





Average full-time equivalent employees

17,396

17,414

16,810


Branches

940

942

944


Taxable-equivalent adjustment

$              8

$              9

$             10

 





Financial Highlights (continued)

(Dollars in millions, except per share amounts)



Twelve months ended



12/31/2025

12/31/2024

Summary of operations




Net interest income (TE)

$                  4,671

$                  3,810


Noninterest income

2,842

809


Total revenue (TE)

7,513

4,619


Provision for credit losses

471

335


Noninterest expense

4,703

4,545


Income (loss) from continuing operations attributable to Key

1,828

(163)


Income (loss) from discontinued operations, net of taxes

1

2


Net income (loss) attributable to Key

1,829

(161)






Income (loss) from continuing operations attributable to Key common shareholders

1,685

(306)


Income (loss) from discontinued operations, net of taxes

1

2


Net income (loss) attributable to Key common shareholders

1,686

(304)





Per common share




Income (loss) from continuing operations attributable to Key common shareholders

$                    1.53

$                    (.32)


Income (loss) from discontinued operations, net of taxes

—

—


Net income (loss) attributable to Key common shareholders (a)

1.53

(.32)






Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution

1.52

(.32)


Income (loss) from discontinued operations, net of taxes — assuming dilution

—

—


Net income (loss) attributable to Key common shareholders — assuming dilution (a)

1.52

(.32)






Cash dividends paid

.82

.82





Performance ratios




From continuing operations:




Return on average total assets

.98 %

(.09) %


Return on average common equity

9.92

(2.37)


Return on average tangible common equity (b)

11.85

(3.03)


Net interest margin (TE)

2.69

2.16


Cash efficiency ratio (b)

62.3

97.8






From consolidated operations:




Return on average total assets

.98 %

(.09) %


Return on average common equity

9.92

(2.36)


Return on average tangible common equity (b)

11.85

(3.01)


Net interest margin (TE)

2.69

2.16





Asset quality — from continuing operations




Net loan charge-offs

$                     430

$                     440


Net loan charge-offs to average total loans

.41 %

.41 %





Other data




Average full-time equivalent employees

17,226

16,753





Taxable-equivalent adjustment

$                      35

$                      45



(a)

Earnings per share may not foot due to rounding.

(b)

The table entitled "GAAP to Non-GAAP Reconciliations" starting on page 15 of this supplement presents the computations of certain financial measures related to "tangible common equity" and "cash efficiency." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(c)

Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.

(d)

December 31, 2025, ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision.

 

GAAP to Non-GAAP Reconciliations
(Dollars in millions)

The table below presents certain non-GAAP financial measures related to "tangible common equity," "return on average tangible common equity," "adjusted return on average tangible common equity," "pre-provision net revenue," "adjusted pre-provision net revenue," "cash efficiency ratio," "adjusted taxable-equivalent revenue," "adjusted noninterest income," "adjusted noninterest expense," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."

The tangible common equity ratio and the return on average tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key's capital position without regard to the effects of intangible assets and preferred stock. Adjusted return on average tangible common equity excludes significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

The table also shows the computation for pre-provision net revenue and adjusted pre-provision net revenue, which are not formally defined by GAAP. Management believes that eliminating the effects of the provision for credit losses makes it easier to analyze the results by presenting them on a more comparable basis. Further, management believes that adjusting pre-provision net revenue for significant or unusual items that management does not consider indicative of ongoing financial performance provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key's intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key's results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis. The adjusted cash efficiency ratio excludes significant or unusual items that management does not consider indicative of ongoing financial performance.

Adjusted taxable-equivalent revenue or adjusted revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and selected items. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to those selected items.

Adjusted noninterest income and adjusted noninterest expense are non-GAAP measures in that they exclude significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes these measures provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or "adjusted net income") and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude significant or unusual items, net of tax, that management does not consider indicative of ongoing financial performance. Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.

Adjusted operating leverage and fee-based adjusted operating leverage are non-GAAP performance measure in that it utilizes revenue on a tax-equivalent basis and adjusts revenue and expense for significant and unusual items. Management utilizes this measurement in analyzing performance and believes that adjusting for significant and unusual items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.


Three months ended


Twelve months ended


12/31/2025

9/30/2025

12/31/2024


12/31/2025

12/31/2024

Tangible common equity to tangible assets at period-end







Key shareholders' equity (GAAP)

$   20,381

$   20,102

$   18,176




Less: Intangible assets

2,760

2,765

2,779




Preferred Stock (a)

2,446

2,446

2,446




Tangible common equity (non-GAAP)

$   15,175

$   14,891

$   12,951




Total assets (GAAP)

$ 184,381

$ 187,409

$ 187,168




Less: Intangible assets

2,760

2,765

2,779




Tangible assets (non-GAAP)

$ 181,621

$ 184,644

$ 184,389




Tangible common equity to tangible assets ratio (non-GAAP)

8.36 %

8.06 %

7.02 %




Average tangible common equity







Average Key shareholders' equity (GAAP)

$   20,388

$   19,664

$   16,732


$  19,493

$  15,408

Less: Intangible assets (average)

2,762

2,767

2,783


2,769

2,793

Preferred stock (average)

2,500

2,500

2,500


2,500

2,500

Average tangible common equity (non-GAAP)

$   15,126

$   14,397

$   11,449


$  14,224

$  10,115

Return on average tangible common equity from continuing operations







Income (loss) from continuing operations attributable to Key common
shareholders (GAAP)

$        474

$        454

$      (279)


$    1,685

$     (306)

Average tangible common equity (non-GAAP)

15,126

14,397

11,449


14,224

10,115








Return on average tangible common equity from continuing operations (non-
GAAP)

12.43 %

12.51 %

(9.69) %


11.85 %

(3.03) %

Adjusted return on average tangible common equity from continuing
operations







Adjusted income (loss) available from continuing operations attributable to Key
common shareholders (non-GAAP)

$        458

$        450

$        378


$    1,665

$    1,109

Adjusted return on average tangible common equity from continuing operations
excluding notable items (non-GAAP)

12.01 %

12.40 %

13.13 %


11.71 %

10.96 %

Return on average tangible common equity consolidated







Net income (loss) attributable to Key common shareholders (GAAP)

$        475

$        453

$      (279)


$    1,686

$     (304)

Average tangible common equity (non-GAAP)

15,126

14,397

11,449


14,224

10,115








Return on average tangible common equity consolidated (non-GAAP)

12.46 %

12.48 %

(9.69) %


11.85 %

(3.01) %

Pre-provision net revenue







Net interest income (GAAP)

$     1,215

$     1,184

$     1,051


$    4,636

$    3,765

Plus: Taxable-equivalent adjustment

8

9

10


35

45

Noninterest income (GAAP)

782

702

(196)


2,842

809

Less: Noninterest expense (GAAP)

1,241

1,177

1,229


4,703

4,545

Pre-provision net revenue from continuing operations (non-GAAP)

$        764

$        718

$      (364)


$    2,810

$        74

Adjusted pre-provision net revenue







Pre-provision net revenue from continuing operations (non-GAAP)

$        764

$        718

$      (364)


$    2,810

$        74

Plus: Selected items(b)

(21)

(5)

915


(26)

1,858

Adjusted pre-provision net revenue from continuing operations (non-GAAP)

$        743

$        713

$        551


$    2,784

$    1,932

 

GAAP to Non-GAAP Reconciliations (continued)

(Dollars in millions)


Three months ended


Twelve months ended


12/31/2025

9/30/2025

12/31/2024


12/31/2025

12/31/2024

Cash efficiency ratio and Adjusted cash efficiency ratio







Noninterest expense (GAAP)

$     1,241

$     1,177

$     1,229


$    4,703

$    4,545

Less: Intangible asset amortization

5

5

7


20

29

Noninterest expense less intangible asset amortization (non-GAAP)

$     1,236

$     1,172

$     1,222


$    4,683

$    4,516

Plus: Selected items (b)

21

5

3


26

(25)

Adjusted noninterest expense less intangible asset amortization (non-
GAAP)

$     1,257

$     1,177

$     1,225


$    4,709

$    4,491








Net interest income (GAAP)

$     1,215

$     1,184

$     1,051


$    4,636

$    3,765

Plus: Taxable-equivalent adjustment

8

9

10


35

45

Net interest income TE (non-GAAP)

1,223

1,193

1,061


4,671

3,810

Noninterest income (GAAP)

782

702

(196)


2,842

809

Total taxable-equivalent revenue (non-GAAP)

$     2,005

$     1,895

$       865


$    7,513

$    4,619

Plus: Selected items (b)

—

—

918


—

1,833

Adjusted taxable-equivalent revenue (non-GAAP)

$     2,005

$     1,895

$     1,783


$    7,513

$    6,452








Cash efficiency ratio (non-GAAP)

61.6 %

61.8 %

141.3 %


62.3 %

97.8 %








Adjusted cash efficiency ratio (non-GAAP)

62.7 %

62.1 %

68.8 %


62.7 %

69.6 %

Adjusted taxable-equivalent revenue







Noninterest income (GAAP)

$       782

$       702

$      (196)


$    2,842

$       809

Plus: Selected items(b)

—

—

918


—

1,836

Adjusted noninterest income (non-GAAP)

$       782

$       702

$       722


$    2,842

$    2,645

Net interest income TE (non-GAAP)

1,223

1,193

1,061


4,671

3,810

Total adjusted taxable-equivalent revenue (non-GAAP)

$     2,005

$     1,895

$     1,783


$    7,513

$    6,455

Adjusted noninterest expense







Noninterest expense (GAAP)

$     1,241

$     1,177

$     1,229


$    4,703

$    4,545

Plus: Selected items(b)

21

5

3


26

(25)

Adjusted noninterest expense (non-GAAP)

$     1,262

$     1,182

$     1,232


$    4,729

$    4,520

Adjusted income (loss) available from continuing operations attributable to
Key common shareholders







Income (loss) from continuing operations attributable to Key common
shareholders (GAAP)

$       474

$       454

$      (279)


$    1,685

$     (306)

Plus: Selected items (net of tax)(b)

(16)

(4)

657


(20)

1,415

Adjusted income (loss) available from continuing operations attributable to
Key common shareholders (non-GAAP)

$       458

$       450

$       378


$    1,665

$    1,109

Diluted earnings per common share (EPS) - adjusted







Diluted EPS from continuing operations attributable to Key common shareholders
(GAAP)

$        .43

$        .41

$       (.28)


$      1.52

$      (.32)

Plus: EPS impact of selected items(b)

(.01)

—

.66


(.02)

1.48

Diluted EPS from continuing operations attributable to Key common
shareholders - adjusted (non-GAAP)(c)

$        .41

$        .41

$        .38


$      1.50

$      1.16

Adjusted operating leverage and fee based adjusted operating leverage







Adjusted noninterest income (non-GAAP)





$    2,842

$    2,645

Adjusted noninterest income YoY Growth (A)





7.45 %


Adjusted taxable-equivalent revenue (non-GAAP)





$    7,513

6,455

Adjusted taxable-equivalent revenue YoY Growth (B)





16.39 %


Adjusted noninterest expense (non-GAAP)





$    4,729

4,520

Adjusted noninterest expense YoY Growth (C)





4.62 %









Adjusted operating leverage (B - C)





11.77 %


Adjusted fee-based operating leverage (A - C)





2.82 %




(a)

Net of capital surplus.

(b)

Additional detail provided in Selected Items table on page 25.

(c)

Earnings per share may not foot due to rounding.

GAAP = U.S. generally accepted accounting principles; TE = Taxable Equivalent

 

Consolidated Balance Sheets

(Dollars in millions)










12/31/2025

9/30/2025

12/31/2024

Assets





Loans

$       106,541

$       105,902

$       104,260


Loans held for sale

1,077

998

797


Securities available for sale

39,596

40,456

37,707


Held-to-maturity securities

8,622

7,509

7,395


Trading account assets

1,061

972

1,283


Short-term investments

10,163

13,334

17,504


Other investments

949

921

1,041



Total earning assets

168,009

170,092

169,987


Allowance for loan and lease losses

(1,427)

(1,444)

(1,409)


Cash and due from banks

1,287

1,938

1,743


Premises and equipment

628

606

614


Goodwill

2,752

2,752

2,752


Other intangible assets

8

13

27


Corporate-owned life insurance

4,432

4,428

4,394


Accrued income and other assets

8,481

8,803

8,797


Discontinued assets

211

221

263



Total assets

$       184,381

$       187,409

$       187,168







Liabilities





Deposits in domestic offices:






Interest-bearing deposits

$       121,100

$       122,425

$       120,132



Noninterest-bearing deposits

27,613

28,340

29,628



Total deposits

148,713

150,765

149,760


Federal funds purchased and securities sold under repurchase agreements 

13

10

14


Bank notes and other short-term borrowings

1,071

1,339

2,130


Accrued expense and other liabilities

4,286

4,276

4,983


Long-term debt

9,917

10,917

12,105



Total liabilities

164,000

167,307

168,992







Equity





Preferred stock

2,500

2,500

2,500


Common shares

1,257

1,257

1,257


Capital surplus

6,035

6,002

6,038


Retained earnings

15,359

15,111

14,584


Treasury stock, at cost

(2,810)

(2,619)

(2,733)


Accumulated other comprehensive income (loss)

(1,960)

(2,149)

(3,470)



Key shareholders' equity

20,381

20,102

18,176

Total liabilities and equity

$       184,381

$       187,409

$       187,168







Common shares outstanding (000)

1,102,401

1,112,952

1,106,786

 

Consolidated Statements of Income

(Dollars in millions, except per share amounts)




Three months ended


Twelve months ended




12/31/2025

9/30/2025

12/31/2024


12/31/2025

12/31/2024

Interest income








Loans

$             1,439

$             1,466

$             1,448


$             5,749

$             6,026


Loans held for sale

18

18

20


61

60


Securities available for sale

388

408

353


1,599

1,142


Held-to-maturity securities

76

64

66


264

284


Trading account assets

12

11

16


56

61


Short-term investments

137

156

214


624

792


Other investments

8

8

15


33

62



Total interest income

2,078

2,131

2,132


8,386

8,427

Interest expense








Deposits

688

748

821


2,919

3,307


Federal funds purchased and securities sold under repurchase agreements

4

4

1


13

4


Bank notes and other short-term borrowings

9

14

24


84

164


Long-term debt

162

181

235


734

1,187



Total interest expense

863

947

1,081


3,750

4,662

Net interest income

1,215

1,184

1,051


4,636

3,765

Provision for credit losses

108

107

39


471

335

Net interest income after provision for credit losses

1,107

1,077

1,012


4,165

3,430

Noninterest income








Trust and investment services income

156

150

142


591

557


Investment banking and debt placement fees

243

184

221


780

688


Cards and payments income

84

86

85


337

331


Service charges on deposit accounts

78

75

65


295

261


Corporate services income

81

72

69


294

275


Commercial mortgage servicing fees

68

73

68


287

258


Corporate-owned life insurance income

40

35

36


140

138


Consumer mortgage income

16

14

16


58

58


Operating lease income and other leasing gains

9

11

15


43

76


Other income

7

8

(5)


23

23


Net securities gains (losses)

—

(6)

(908)


(6)

(1,856)



Total noninterest income

782

702

(196)


2,842

809

Noninterest expense








Personnel

790

742

734


2,917

2,714


Net occupancy

69

65

67


270

266


Computer processing

106

105

107


425

414


Business services and professional fees

61

44

55


193

174


Equipment

22

20

20


83

80


Operating lease expense

8

9

15


38

63


Marketing

28

22

33


95

94


Other expense

157

170

198


682

740



Total noninterest expense

1,241

1,177

1,229


4,703

4,545

Income (loss) from continuing operations before income taxes

648

602

(413)


2,304

(306)


Income taxes (benefit)

139

112

(169)


476

(143)

Income (loss) from continuing operations

509

490

(244)


1,828

(163)


Income (loss) from discontinued operations, net of taxes

1

(1)

—


1

2

Net income (loss)

$                510

$                489

$              (244)


$             1,829

$              (161)










Income (loss) from continuing operations attributable to Key common shareholders

$                474

$                454

$              (279)


$             1,685

$              (306)

Net income (loss) attributable to Key common shareholders

475

453

(279)


1,686

(304)

Per common share







Income (loss) from continuing operations attributable to Key common shareholders

$                 .43

$                 .41

$               (.28)


$               1.53

$               (.32)

Income (loss) from discontinued operations, net of taxes

—

—

—


—

—

Net income (loss) attributable to Key common shareholders (a)

.43

.41

(.28)


1.53

(.32)

Per common share — assuming dilution







Income (loss) from continuing operations attributable to Key common shareholders

$                 .43

$                 .41

$               (.28)


$               1.52

$               (.32)

Income (loss) from discontinued operations, net of taxes

—

—

—


—

—

Net income (loss) attributable to Key common shareholders (a)

.43

.41

(.28)


1.52

(.32)










Cash dividends declared per common share

$               .205

$               .205

$               .205


$               .820

$               .820










Weighted-average common shares outstanding (000)

1,095,171

1,100,830

986,829


1,098,558

949,561


Effect of common share options and other stock awards(b)

11,152

9,845

—


9,436

—

Weighted-average common shares and potential common shares outstanding (000) (c)

1,106,323

1,110,675

986,829


1,107,994

949,561



(a)

Earnings per share may not foot due to rounding.

(b)

For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.

(c)

Assumes conversion of common share options and other stock awards, as applicable.

 

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations

(Dollars in millions)




Fourth Quarter 2025


Third Quarter 2025


Fourth Quarter 2024



Average


Yield/


Average


Yield/


Average


Yield/



Balance

Interest (a)

Rate (a)


Balance

Interest (a)

Rate (a)


Balance

Interest (a)

Rate (a)

Assets













Loans: (b), (c)













Commercial and industrial (d)

$       57,541

$              851

5.88 %


$       56,571

$              858

6.02 %


$       52,887

$              817

6.15 %


Real estate — commercial mortgage

13,356

198

5.91


13,697

208

6.02


13,343

202

6.01


Real estate — construction

2,839

48

6.71


2,744

48

6.96


3,033

55

7.23


Commercial lease financing

2,302

21

3.73


2,385

22

3.62


2,826

24

3.51


Total commercial loans

76,038

1,118

5.84


75,397

1,136

5.98


72,089

1,098

6.07


Real estate — residential mortgage

18,853

157

3.33


19,140

160

3.34


19,990

166

3.32


Home equity loans

5,780

80

5.47


5,934

84

5.65


6,445

93

5.75


Other consumer loans

4,715

61

5.15


4,825

63

5.17


5,256

67

5.08


Credit cards

930

31

13.24


931

32

13.50


931

34

14.36


Total consumer loans

30,278

329

4.33


30,830

339

4.38


32,622

360

4.40


Total loans

106,316

1,447

5.41


106,227

1,475

5.51


104,711

1,458

5.55


Loans held for sale

1,234

18

5.84


1,291

18

5.81


1,327

20

6.05


Securities available for sale (b), (e)

39,785

388

3.67


40,310

408

3.77


37,952

353

3.38


Held-to-maturity securities (b)

8,056

76

3.78


7,168

64

3.59


7,541

66

3.50


Trading account assets

961

12

4.79


922

11

4.61


1,215

16

4.98


Short-term investments

13,603

137

4.01


13,463

156

4.60


17,575

214

4.83


Other investments (e)

935

8

3.09


966

8

3.29


1,045

15

5.72


Total earning assets

170,890

2,086

4.79


170,347

2,140

4.92


171,366

2,142

4.87


Allowance for loan and lease losses

(1,435)




(1,443)




(1,486)




Accrued income and other assets

17,562




18,234




17,308




Discontinued assets

215




227




268




Total assets

$    187,232




$    187,365




$    187,456



Liabilities













Money market deposits

$       42,442

$              246

2.30 %


$       41,953

$              265

2.51 %


$       40,676

$              283

2.77 %


Demand deposits

61,541

319

2.06


60,597

346

2.26


57,653

341

2.35


Savings deposits

4,358

1

.05


4,478

1

.05


4,635

1

.07


Time deposits

13,857

122

3.48


15,239

136

3.54


17,641

196

4.43


Total interest-bearing deposits

122,198

688

2.23


122,267

748

2.43


120,605

821

2.71


Federal funds purchased and securities sold under repurchase agreements

413

4

3.80


368

4

4.32


84

1

3.99


Bank notes and other short-term borrowings

1,072

9

3.23


1,372

14

3.91


1,832

24

5.19


Long-term debt (f)

10,274

162

6.27


11,071

181

6.53


13,984

235

6.70


Total interest-bearing liabilities

133,957

863

2.56


135,078

947

2.78


136,505

1,081

3.15


Noninterest-bearing deposits

28,512




28,107




29,128




Accrued expense and other liabilities

4,160




4,289




4,823




Discontinued liabilities (f)

215




227




268




Total liabilities

$    166,844




$    167,701




$    170,724



Equity













Total equity

$       20,388




$       19,664




$       16,732




Total liabilities and equity

$    187,232




$    187,365




$    187,456



Interest rate spread (TE)



2.23 %




2.14 %




1.72 %

Net interest income (TE) and net interest margin (TE)


$           1,223

2.82 %



$           1,193

2.75 %



$           1,061

2.41 %

TE adjustment (b)


8




9




10



Net interest income, GAAP basis


$           1,215




$           1,184




$           1,051




(a)

Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.

(b)

Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024.   

(c)

For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)

Commercial and industrial average balances include $211 million, $214 million, and $216 million of assets from commercial credit cards for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

(e)

Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $42.1 billion, $43.1 billion, and $41.8 billion for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. Yield based on the fair value of securities available for sale was 3.90%, 4.05%, and 3.73% for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

(f)

A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key's matched funds transfer pricing methodology to discontinued operations.

TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles.

 

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates  From Continuing Operations

(Dollars in millions)




Twelve months ended December 31,
2025


Twelve months ended December 31,
2024



Average


Yield/


Average


Yield/



Balance

Interest (a)

Rate (a)


Balance

Interest (a)

Rate (a)

Assets









Loans: (b), (c)









Commercial and industrial (d)

$         55,877

$           3,347

5.99 %


$         53,951

$           3,378

6.26 %


Real estate — commercial mortgage

13,358

798

5.97


14,080

873

6.20


Real estate — construction

2,840

195

6.87


3,042

227

7.48


Commercial lease financing

2,465

88

3.61


3,087

105

3.41


Total commercial loans

74,540

4,428

5.94


74,160

4,583

6.18


Real estate — residential mortgage

19,291

644

3.34


20,382

674

3.31


Home equity loans

6,012

336

5.59


6,729

398

5.92


Other consumer loans

4,892

250

5.11


5,519

278

5.04


Credit cards

925

126

13.55


934

138

14.78


Total consumer loans

31,120

1,356

4.35


33,564

1,488

4.43


Total loans

105,660

5,784

5.47


107,724

6,071

5.64


Loans held for sale

1,029

61

5.97


979

60

6.11


Securities available for sale (b), (e)

40,034

1,599

3.73


37,127

1,142

2.71


Held-to-maturity securities (b)

7,386

264

3.58


7,980

284

3.56


Trading account assets

1,108

56

5.02


1,175

61

5.16


Short-term investments

14,355

624

4.35


14,846

792

5.33


Other investments (e)

963

33

3.38


1,177

62

5.25


Total earning assets

170,535

8,421

4.86


171,008

8,472

4.81


Allowance for loan and lease losses

(1,426)




(1,515)




Accrued income and other assets

17,655




17,322




Discontinued assets

233




296




Total assets

$       186,997




$       187,111



Liabilities









Money market deposits

$         42,247

$           1,062

2.52 %


$         39,525

$           1,146

2.90 %


Other demand deposits

59,203

1,284

2.17


56,130

1,402

2.50


Savings deposits

4,518

4

.05


5,010

7

.14


Time deposits

15,323

569

3.72


16,497

752

4.56


Total interest-bearing deposits

121,291

2,919

2.41


117,162

3,307

2.82


Federal funds purchased and securities sold under repurchase agreements

325

13

4.12


103

4

4.35


Bank notes and other short-term borrowings

1,996

84

4.20


2,984

164

5.49


Long-term debt (f)

11,298

734

6.50


17,279

1,187

6.87


Total interest-bearing liabilities

134,910

3,750

2.78


137,528

4,662

3.39


Noninterest-bearing deposits

27,985




28,993




Accrued expense and other liabilities

4,376




4,886




Discontinued liabilities (f)

233




296




Total liabilities

$       167,504




$       171,703



Equity









Total equity

19,493




15,408




Total liabilities and equity

$       186,997




$       187,111



Interest rate spread (TE)



2.08 %




1.42 %

Net interest income (TE) and net interest margin (TE)


$           4,671

2.69 %



$           3,810

2.16 %

TE adjustment (b)


35




45



Net interest income, GAAP basis


$           4,636




$           3,765











(a)

Results are from continuing operations.  Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.

(b)

Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the twelve months ended December 31, 2025, and December 31, 2024, respectively.  

(c)

For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)

Commercial and industrial average balances include $214 million and $215 million of assets from commercial credit cards for the twelve months ended December 31, 2025, and December 31, 2024, respectively.

(e)

Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $42.9 billion and $42.2 billion for the twelve months ended December 31, 2025, and December 31, 2024, respectively. Yield based on the fair value of securities available for sale was 3.99% and 3.08% for the twelve months ended December 31, 2025, and December 31, 2024, respectively.

(f)

A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key's matched funds transfer pricing methodology to discontinued operations.

TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

 

Noninterest Expense

(Dollars in millions)









Three months ended


Twelve months ended


12/31/2025

9/30/2025

12/31/2024


12/31/2025

12/31/2024

Personnel (a)

$            790

$            742

$            734


$         2,917

$         2,714

Net occupancy

69

65

67


270

266

Computer processing

106

105

107


425

414

Business services and professional fees

61

44

55


193

174

Equipment

22

20

20


83

80

Operating lease expense

8

9

15


38

63

Marketing

28

22

33


95

94

Other expense

157

170

198


682

740

Total noninterest expense

$         1,241

$         1,177

$         1,229


$         4,703

$         4,545

Average full-time equivalent employees (b)

17,396

17,414

16,810


17,226

16,753



(a)

Additional detail provided in Personnel Expense table below.

(b)

The number of average full-time equivalent employees has not been adjusted for discontinued operations.

 

Personnel Expense

(Dollars in millions)









Three months ended


Twelve months ended


12/31/2025

9/30/2025

12/31/2024


12/31/2025

12/31/2024

Salaries and contract labor

$            446

$            437

$           418


$         1,715

$         1,609

Incentive and stock-based compensation

205

190

197


721

661

Employee benefits

131

112

119


460

442

Severance

8

3

—


21

2

Total personnel expense

$            790

$            742

$           734


$         2,917

$         2,714

 

Loan Composition

(Dollars in millions)











Change 12/31/2025 vs.


12/31/2025

9/30/2025

12/31/2024


9/30/2025

12/31/2024

Commercial and industrial (a), (b)

$         57,688

$         56,791

$         52,909


1.6 %

9.0 %

Commercial real estate:







Commercial mortgage

13,707

13,378

13,310


2.5

3.0

Construction

2,844

2,817

2,936


1.0

(3.1)

Total commercial real estate loans

16,551

16,195

16,246


2.2

1.9

Commercial lease financing (b)

2,270

2,333

2,736


(2.7)

(17.0)

Total commercial loans

76,509

75,319

71,891


1.6

6.4

Real estate — residential mortgage

18,732

19,008

19,886


(1.5)

(5.8)

Home equity loans

5,703

5,863

6,358


(2.7)

(10.3)

Other consumer loans

4,644

4,779

5,167


(2.8)

(10.1)

Credit cards

953

933

958


2.1

(.5)

Total consumer loans

30,032

30,583

32,369


(1.8)

(7.2)

Total loans (c), (d)

$       106,541

$       105,902

$       104,260


.6 %

2.2 %



(a)

Loan balances include $205 million, $212 million, and $212 million of commercial credit card balances at December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

(b)

Commercial and industrial includes receivables held as collateral for a secured borrowing of  $211 million at December 31, 2024. Commercial lease financing includes receivables held as collateral for a secured borrowing of $1 million, $1 million, and $3 million at December 31, 2025, September 30, 2025, and December 31, 2024, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)

Total loans exclude loans of $205 million at December 31, 2025, $216 million at September 30, 2025, and $257 million at December 31, 2024, related to the discontinued operations of the education lending business.

(d)

Accrued interest of $459 million, $472 million, and $456 million at December 31, 2025, September 30, 2025, and December 31, 2024, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

 

Loans Held for Sale Composition

(Dollars in millions)













Change 12/31/2025 vs.


12/31/2025

9/30/2025

12/31/2024


9/30/2025

12/31/2024

Commercial and industrial

$             167

$             130

$               88


28.5 %

89.8 %

Real estate — commercial mortgage

761

806

616


(5.6)

23.5

Real estate — residential mortgage

149

62

93


140.3

60.2

Total loans held for sale

$          1,077

$             998

$             797


7.9 %

35.1 %

 

Summary of Changes in Loans Held for Sale

(Dollars in millions)








4Q25

3Q25

2Q25

1Q25

4Q24

Balance at beginning of period

$            998

$            530

$            811

$            797

$         1,058

New originations

3,356

3,471

1,806

1,840

2,915

Transfers from (to) held to maturity, net

(35)

—

(71)

6

—

Loan sales

(3,232)

(2,956)

(2,012)

(1,695)

(3,039)

Loan draws (payments), net

(10)

(42)

(1)

(138)

(136)

Valuation and other adjustments

—

(5)

(3)

1

(1)

Balance at end of period

$          1,077

$            998

$            530

$            811

$            797

 

Summary of Loan and Lease Loss Experience From Continuing Operations

(Dollars in millions)









Three months ended


Twelve months ended


12/31/2025

9/30/2025

12/31/2024


12/31/2025

12/31/2024

Average loans outstanding

$ 106,316

$ 106,227

$ 104,711


$ 105,660

$ 107,724

Allowance for loan and lease losses at the beginning of the period

$     1,444

$     1,446

$     1,494


$    1,409

$    1,508

Loans charged off:







Commercial and industrial

69

87

84


312

363








Real estate — commercial mortgage

25

27

18


94

40

Real estate — construction

—

—

—


—

—

Total commercial real estate loans

25

27

18


94

40

Commercial lease financing

4

—

1


6

7

Total commercial loans

98

114

103


412

410

Real estate — residential mortgage

1

—

1


2

3

Home equity loans

1

—

—


2

2

Other consumer loans

14

15

15


56

64

Credit cards

10

11

12


45

47

Total consumer loans

26

26

28


105

116

Total loans charged off

124

140

131


517

526

Recoveries:







Commercial and industrial

7

21

12


57

58








Real estate — commercial mortgage

6

—

—


7

2

Real estate — construction

—

—

—


—

—

Total commercial real estate loans

6

—

—


7

2

Commercial lease financing

—

—

—


—

5

Total commercial loans

13

21

12


64

65

Real estate — residential mortgage

1

1

1


4

5

Home equity loans

1

—

—


3

2

Other consumer loans

2

2

2


8

8

Credit cards

3

2

2


8

6

Total consumer loans

7

5

5


23

21

Total recoveries

20

26

17


87

86

Net loan charge-offs

(104)

(114)

(114)


(430)

(440)

Provision (credit) for loan and lease losses

87

112

29


448

341

Allowance for loan and lease losses at end of period

$     1,427

$     1,444

$     1,409


$    1,427

$    1,409








Liability for credit losses on lending-related commitments at beginning of period

$       292

$       297

$       280


$       290

$       296

Provision (credit) for losses on lending-related commitments

21

(5)

10


23

(6)

Other

—

—

—


—

—

Liability for credit losses on lending-related commitments at end of period (a)

$       313

$       292

$       290


$       313

$       290








Total allowance for credit losses at end of period

$     1,740

$     1,736

$     1,699


$    1,740

$    1,699








Net loan charge-offs to average total loans

.39 %

.42 %

.43 %


.41 %

.41 %

Allowance for loan and lease losses to period-end loans

1.34

1.36

1.35


1.34

1.35

Allowance for credit losses to period-end loans

1.63

1.64

1.63


1.63

1.63

Allowance for loan and lease losses to nonperforming loans

232

219

186


232

186

Allowance for credit losses to nonperforming loans

283

264

224


283

224








Discontinued operations — education lending business:







Loans charged off

$           1

$           1

$           1


$          3

$          4

Recoveries

—

1

—


1

1

Net loan charge-offs

$         (1)

$         —

$         (1)


$         (2)

$         (3)



(a)

Included in "Accrued expense and other liabilities" on the balance sheet.

 

Asset Quality Statistics From Continuing Operations

(Dollars in millions)



4Q25

3Q25

2Q25

1Q25

4Q24

Net loan charge-offs

$       104

$       114

$       102

$       110

$       114

Net loan charge-offs to average total loans

.39 %

.42 %

.39 %

.43 %

.43 %

Allowance for loan and lease losses

$    1,427

$    1,444

$    1,446

$    1,429

$    1,409

Allowance for credit losses (a)

1,740

1,736

1,743

1,707

1,699

Allowance for loan and lease losses to period-end loans

1.34 %

1.36 %

1.36 %

1.36 %

1.35 %

Allowance for credit losses to period-end loans

1.63

1.64

1.64

1.63

1.63

Allowance for loan and lease losses to nonperforming loans

232

219

208

208

186

Allowance for credit losses to nonperforming loans

283

264

250

249

224

Nonperforming loans at period end

$       615

$       658

$       696

$       686

$       758

Nonperforming assets at period end

627

668

707

700

772

Nonperforming loans to period-end portfolio loans

.58 %

.62 %

.65 %

.65 %

.73 %

Nonperforming assets to period-end portfolio loans plus OREO and other
     nonperforming assets

.59

.63

.66

.67

.74



(a)

Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.

 

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

(Dollars in millions)



12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Commercial and industrial

$       256

$       253

$       280

$       288

$       322







Real estate — commercial mortgage

157

214

226

206

243

Real estate — construction

—

—

—

—

—

Total commercial real estate loans

157

214

226

206

243

Commercial lease financing

7

—

—

—

—

Total commercial loans

420

467

506

494

565

Real estate — residential mortgage

104

98

95

94

92

Home equity loans

80

82

84

87

89

Other Consumer loans

4

4

4

4

5

Credit cards

7

7

7

7

7

Total consumer loans

195

191

190

192

193

Total nonperforming loans (a)

615

658

696

686

758

OREO

9

10

11

14

14

Nonperforming loans held for sale

3

—

—

—

—

Total nonperforming assets

$       627

$       668

$       707

$       700

$       772

Accruing loans past due 90 days or more

$         99

$       110

$         74

$         86

$         90

Accruing loans past due 30 through 89 days

220

254

266

281

206

Nonperforming assets from discontinued operations — education lending business 

2

2

2

1

2

Nonperforming loans to period-end portfolio loans

.58 %

.62 %

.65 %

.65 %

.73 %

Nonperforming assets to period-end portfolio loans plus OREO and other
      nonperforming assets

.59

.63

.66

.67

.74

 

Summary of Changes in Nonperforming Loans From Continuing Operations

(Dollars in millions)



4Q25

3Q25

2Q25

1Q25

4Q24

Balance at beginning of period

$          658

$          696

$          686

$          758

$          728

Loans placed on nonaccrual status

248

210

233

170

309

Charge-offs

(124)

(140)

(127)

(126)

(131)

Loans sold

(7)

(13)

—

—

(13)

Payments

(124)

(68)

(74)

(57)

(111)

Transfers to OREO

(1)

(1)

(1)

(2)

(2)

Loans returned to accrual status

(35)

(26)

(21)

(57)

(22)

Balance at end of period

$          615

$          658

$          696

$          686

$          758

 

Line of Business Results

(Dollars in millions)








Change 4Q25 vs.


4Q25

3Q25

2Q25

1Q25

4Q24


3Q25

4Q24

Consumer Bank









Summary of operations









Total revenue (TE)

$             948

$             935

$             912

$             872

$             865


1.4 %

9.6 %

Provision for credit losses

32

40

55

43

43


(20.0)

(25.6)

Noninterest expense

735

695

696

676

713


5.8

3.1

Net income (loss) attributable to Key

137

152

122

116

83


(9.9)

65.1

Average loans and leases

34,683

35,363

36,137

36,819

37,567


(1.9)

(7.7)

Average deposits

87,738

87,692

88,002

88,306

87,476


.1

.3

Net loan charge-offs

49

49

40

52

63


—

(22.2)

Net loan charge-offs to average total loans

.56 %

.55 %

.44 %

.57 %

.67 %


1.8

(16.4)

Nonperforming assets at period end

$             201

$             197

$             196

$             201

$             201


2.0

—

Return on average allocated equity

18.87 %

20.19 %

16.20 %

15.15 %

10.24 %


(6.5)

84.3










Commercial Bank









Summary of operations









Total revenue (TE)

$          1,109

$         1,014

$             974

$             942

$           1001


9.4 %

10.8 %

Provision for credit losses

73

68

84

75

(3)


7.4

N/M

Noninterest expense

512

482

449

462

515


6.2

(.6)

Net income (loss) attributable to Key

410

367

349

321

381


11.7

7.6

Average loans and leases

71,104

70,326

69,087

67,056

66,691


1.1

6.6

Average loans held for sale

1,140

1,224

707

754

1,247


(6.9)

(8.6)

Average deposits

60,436

58,483

55,886

57,436

59,687


3.3

1.3

Net loan charge-offs

53

64

62

57

52


(17.2)

1.9

Net loan charge-offs to average total loans

.30 %

.36 %

.36 %

.34 %

.31 %


(16.7)

(3.2)

Nonperforming assets at period end

$             426

$             471

$             511

$             499

$             571


(9.6)

(25.4)

Return on average allocated equity

16.33 %

14.87 %

14.45 %

13.80 %

15.62 %


9.8

4.5


TE = Taxable Equivalent; N/M = Not Meaningful

 

Selected Items Impact on Earnings

(Dollars in millions, except per share amounts)



Pretax(a)


After-tax at marginal rate(a)

Quarter to date results

Amount


Net Income

EPS(c), (e)

Three months ended December 31, 2025





FDIC special assessment (other expense)(d)

$                 21


$                 16

$              0.01

Three months ended September 30, 2025





FDIC special assessment (other expense)(d)

5


4

—

Three months ended June 30, 2025





No items

—


—

—

Three months ended March 31, 2025





No items

—


—

—

Three months ended December 31, 2024





Loss on sale of securities(b)

(915)


(657)

(0.66)

Scotiabank investment agreement valuation (other income)

(3)


(2)

—

FDIC special assessment (other expense)(d)

3


2

—

Three months ended September 30, 2024





Loss on sale of securities(b)

(918)


(737)

(0.77)

FDIC special assessment (other expense)(d)

6


5

—

Three months ended June 30, 2024





FDIC special assessment (other expense)(d)

(5)


(4)

—

Three months ended March 31, 2024





FDIC special assessment (other expense)(d)

(29)


(22)

(0.02)






Year to date results





Twelve months ended December 31, 2025





FDIC special assessment (other expense)(d)

$                 26


$                 20

$              0.02

Twelve months ended December 31, 2024





Loss on sale of securities

(1,833)


(1,394)

(1.45)

Scotiabank investment agreement valuation (other income)

(3)


(2)

—

FDIC special assessment (other expense)(d)

(25)


(19)

(0.02)






(a)

Favorable (unfavorable) impact.

(b)

After-tax loss on sale of securities for the three months ended September 30, 2024 adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments recorded in the fourth quarter of 2024.

(c)

Impact to EPS reflected on a fully diluted basis.

(d)

In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC's deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. Amounts reflected in this table represent adjustments from initial estimates based on quarterly invoices received from the FDIC.

(e)

Earnings per share may not foot due to rounding.

 

(PRNewsfoto/KeyCorp)

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/keycorp-reports-fourth-quarter-2025-net-income-of-474-million-or-43-per-diluted-common-share-302664823.html

SOURCE KeyCorp

FAQ

What were KeyCorp (KEY) Q4 2025 earnings per share and net income?

KeyCorp reported Q4 2025 net income of $474 million, or $0.43 per diluted common share.

How much revenue did KeyCorp (KEY) generate in Q4 2025 and for full-year 2025?

Q4 2025 revenue was $2.00 billion, and full-year 2025 revenue was a record $7.5 billion (up 16% adjusted YoY).

What was KeyCorp's (KEY) net interest margin and taxable-equivalent net interest income in Q4 2025?

Net interest margin was 2.82% and taxable-equivalent net interest income was $1.22 billion in Q4 2025.

Did KeyCorp (KEY) repurchase shares in Q4 2025 and how much?

Yes. KeyCorp repurchased $200 million of common shares during Q4 2025.

What change occurred in KeyCorp's (KEY) pre-provision net revenue in Q4 2025?

Pre-provision net revenue increased by $46 million quarter-over-quarter and full-year pre-provision net revenue rose 44% (adjusted).

What were notable funding or deposit changes reported by KeyCorp (KEY) in Q4 2025?

Average time deposits declined by 21.5% year-over-year, while total deposits were roughly flat at $150.7 billion.
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