STOCK TITAN
  1. Home
  2. News
  3. KEY
  4. KEYCORP REPORTS SECOND QUARTER 2025 NET INCOME OF $387 MILLION, OR $.35 PER DILUTED COMMON SHARE

KEYCORP REPORTS SECOND QUARTER 2025 NET INCOME OF $387 MILLION, OR $.35 PER DILUTED COMMON SHARE

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Negative)
Tags
earnings
Rhea-AI Summary

KeyCorp (NYSE:KEY) reported strong Q2 2025 financial results with net income of $387 million, or $0.35 per diluted share, up from $237 million in Q2 2024. The company achieved total revenue of $1.8 billion, marking a 21% year-over-year increase.

Key performance highlights include: net interest income up 4% quarter-over-quarter, net interest margin increased by 8 basis points to 2.66%, and period-end loans up $1.6 billion. Commercial loans grew $3.3 billion or 5% year-to-date, while net charge-offs declined 8% quarter-over-quarter.

The bank maintained strong capital positions with a Common Equity Tier 1 ratio of 11.7% and demonstrated improved credit quality metrics. Investment banking showed significant growth with over $30 billion of capital raised for clients in Q2.

KeyCorp (NYSE:KEY) ha riportato solidi risultati finanziari nel secondo trimestre del 2025 con un utile netto di 387 milioni di dollari, pari a 0,35 dollari per azione diluita, in aumento rispetto ai 237 milioni del secondo trimestre 2024. L'azienda ha raggiunto un fatturato totale di 1,8 miliardi di dollari, segnando un incremento del 21% su base annua.

I principali indicatori di performance includono: reddito netto da interessi in crescita del 4% rispetto al trimestre precedente, margine di interesse netto aumentato di 8 punti base fino al 2,66% e prestiti a fine periodo aumentati di 1,6 miliardi di dollari. I prestiti commerciali sono cresciuti di 3,3 miliardi di dollari, ovvero il 5% da inizio anno, mentre le perdite nette su crediti sono diminuite dell'8% rispetto al trimestre precedente.

La banca ha mantenuto solide posizioni di capitale con un Common Equity Tier 1 ratio dell'11,7% e ha mostrato un miglioramento degli indicatori di qualità del credito. L'investment banking ha registrato una crescita significativa con oltre 30 miliardi di dollari di capitale raccolto per i clienti nel secondo trimestre.

KeyCorp (NYSE:KEY) reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 387 millones de dólares, o 0,35 dólares por acción diluida, aumentando desde 237 millones en el segundo trimestre de 2024. La compañía alcanzó un ingreso total de 1,8 mil millones de dólares, lo que representa un incremento interanual del 21%.

Los aspectos destacados del desempeño incluyen: ingresos netos por intereses aumentaron un 4% trimestre a trimestre, el margen neto de interés se incrementó en 8 puntos básicos hasta 2,66%, y los préstamos al final del período aumentaron en 1,6 mil millones de dólares. Los préstamos comerciales crecieron 3,3 mil millones de dólares o un 5% en lo que va del año, mientras que las cancelaciones netas disminuyeron un 8% trimestre a trimestre.

El banco mantuvo sólidas posiciones de capital con un índice Common Equity Tier 1 del 11,7% y demostró mejoras en los indicadores de calidad crediticia. La banca de inversión mostró un crecimiento significativo con más de 30 mil millones de dólares en capital recaudado para clientes en el segundo trimestre.

KeyCorp (NYSE:KEY)는 2025년 2분기에 3억 8,700만 달러의 순이익을 기록했으며, 희석 주당순이익은 0.35달러로 2024년 2분기의 2억 3,700만 달러에서 증가했습니다. 회사는 총 수익 18억 달러를 달성하며 전년 대비 21% 증가를 기록했습니다.

주요 성과 지표는 다음과 같습니다: 분기 대비 순이자수익 4% 증가, 순이자마진 8 베이시스포인트 상승하여 2.66% 달성, 분기 말 대출금 16억 달러 증가. 상업용 대출은 연초 대비 33억 달러(5%) 증가했으며, 순 대손상각은 분기 대비 8% 감소했습니다.

은행은 공통자기자본비율(Common Equity Tier 1) 11.7%로 견고한 자본 상태를 유지했으며, 신용 품질 지표도 개선되었습니다. 투자은행 부문은 2분기에 고객을 위해 300억 달러 이상의 자본 조달을 기록하며 큰 성장을 보였습니다.

KeyCorp (NYSE:KEY) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec un bénéfice net de 387 millions de dollars, soit 0,35 dollar par action diluée, en hausse par rapport à 237 millions au deuxième trimestre 2024. La société a réalisé un chiffre d'affaires total de 1,8 milliard de dollars, soit une augmentation de 21 % d'une année sur l'autre.

Les points forts de la performance comprennent : un revenu net d'intérêts en hausse de 4 % par rapport au trimestre précédent, une marge nette d'intérêt augmentée de 8 points de base pour atteindre 2,66 %, et des prêts en fin de période en hausse de 1,6 milliard de dollars. Les prêts commerciaux ont augmenté de 3,3 milliards de dollars, soit 5 % depuis le début de l'année, tandis que les pertes nettes sur prêts ont diminué de 8 % par rapport au trimestre précédent.

La banque a maintenu de solides positions de capital avec un ratio Common Equity Tier 1 de 11,7 % et a démontré une amélioration des indicateurs de qualité du crédit. La banque d'investissement a connu une croissance significative avec plus de 30 milliards de dollars de capitaux levés pour les clients au deuxième trimestre.

KeyCorp (NYSE:KEY) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 387 Millionen US-Dollar bzw. 0,35 US-Dollar je verwässerter Aktie, gegenüber 237 Millionen US-Dollar im zweiten Quartal 2024. Das Unternehmen erzielte einen Gesamtumsatz von 1,8 Milliarden US-Dollar, was einem Anstieg von 21 % im Jahresvergleich entspricht.

Wichtige Leistungskennzahlen umfassen: Nettozinserträge stiegen um 4 % gegenüber dem Vorquartal, die Nettozinsmarge erhöhte sich um 8 Basispunkte auf 2,66 % und die Kredite zum Periodenende stiegen um 1,6 Milliarden US-Dollar. Die gewerblichen Kredite wuchsen seit Jahresbeginn um 3,3 Milliarden US-Dollar bzw. 5 %, während die Nettoabschreibungen im Quartalsvergleich um 8 % zurückgingen.

Die Bank hielt starke Kapitalpositionen mit einer Common Equity Tier 1 Quote von 11,7 % und zeigte verbesserte Kreditqualitätskennzahlen. Das Investmentbanking verzeichnete ein signifikantes Wachstum mit über 30 Milliarden US-Dollar an Kapital, das im zweiten Quartal für Kunden aufgenommen wurde.

Positive
  • Revenue increased 21% year-over-year to $1.8 billion
  • Net income grew 63.3% year-over-year to $387 million
  • Net interest margin improved by 62 basis points year-over-year to 2.66%
  • Investment banking fees increased 41.3% year-over-year
  • Assets under management reached record $64 billion
  • Net charge-offs declined 8% quarter-over-quarter
  • Deposit costs managed below 2%
Negative
  • Total loans decreased 3% year-over-year
  • Consumer loans declined 7.3% year-over-year
  • Provision for credit losses increased 38% year-over-year to $138 million
  • Noninterest expense grew 7% year-over-year to $1.154 billion
  • Average deposits decreased $1.1 billion quarter-over-quarter

Insights

KeyCorp posted strong Q2 with $387M net income, improved NIM, and strong revenue growth while maintaining solid credit quality.

KeyCorp delivered $387 million in net income for Q2 2025, translating to $0.35 per diluted share, up from $0.33 in Q1 2025 and $0.25 in Q2 2024. This 63.3% year-over-year earnings growth demonstrates significant momentum in the bank's recovery trajectory.

Revenue reached $1.84 billion, increasing 21% year-over-year, driven by both net interest income and fee income growth. Net interest income surged 27.9% from the year-ago quarter to $1.15 billion, while the net interest margin expanded by 62 basis points to 2.66%. This improvement stems from lower deposit costs, higher-yielding reinvestments, and a more favorable funding mix.

On the fee income side, noninterest income grew 10% year-over-year to $690 million, primarily fueled by investment banking fees which jumped 41.3% to $178 million. Commercial mortgage servicing fees also increased 14.8% to $70 million.

Credit quality metrics show stability with net charge-offs at $102 million (0.39% of average loans), down from $110 million in Q1 but up from $91 million a year ago. The allowance for credit losses stands at $1.74 billion, representing 1.64% of total loans.

The loan portfolio showed mixed performance, with period-end loans increasing $1.6 billion quarter-over-quarter, though average loans were down 3% year-over-year at $105.7 billion. Commercial loans grew $3.3 billion or 5% year-to-date, suggesting business lending is picking up. Meanwhile, average deposits increased 2.3% year-over-year to $147.4 billion, with deposit costs declining to 1.99%.

Capital ratios remain strong with Common Equity Tier 1 at 11.7%, well above regulatory requirements. Return on average tangible common equity stands at 11.09%, indicating solid profitability relative to capital base.

Management's investment in frontline bankers (targeting 10% growth in 2025) and technology reflects confidence in organic growth opportunities. The record $64 billion in assets under management and the bank's ability to raise over $30 billion of capital for clients in Q2 demonstrates growing strength in wealth management and investment banking capabilities.

Revenue of $1.8 billion, up 21% year-over-year; Significant positive operating leverage on both a total and fee basis year-over-year

Net interest income up 4% and net interest margin increased 8 bps quarter-over-quarter

Period-end loans up $1.6 billion quarter-over-quarter; Commercial loans up $3.3 billion or 5% year-to-date

Net charge-offs declined 8% quarter-over-quarter; Other credit metrics stable to improved

CLEVELAND, July 22, 2025 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $387 million, or $.35 per diluted common share, for the second quarter of 2025. For the first quarter of 2025, net income from continuing operations attributable to Key common shareholders was $370 million, or $.33 per diluted common share. For the second quarter of 2024, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $237 million, or $.25 per diluted common share, or adjusted net income of $241 million, or $.25 per diluted common share(a). Included in the second quarter of 2024 are $4 million, after-tax, of charges related to the FDIC special assessment(b).

Comments from Chairman and CEO, Chris Gorman

"Our second quarter results demonstrate continued strong momentum. Revenue was up 21% year-over-year driven by our clearly defined net interest income tailwinds and 10% growth in noninterest income, while expenses grew 7%. Sequentially, net interest income grew 4%. Credit quality continues to trend in a positive direction with overall credit migration improving for the sixth consecutive quarter.

Business activity with clients and prospects continues to accelerate. Client deposits and relationship households were up 2% year-over-year while deposit costs were managed below 2%. Period end commercial loans grew $2.1 billion in the second quarter. Assets under management reached a record $64 billion. Investment banking pipelines remain at historically elevated levels. In the second quarter we raised over $30 billion of capital on behalf of our clients. Commercial payments-related fees grew high single digits year-over-year.

We continue to make investments in people and technology that will drive future growth for our company. We remain on target to increase our front line bankers - investment bankers, middle market relationship managers, payments advisors, and wealth managers - by 10% in 2025.

I am energized by our momentum as we win and take share in the marketplace. I remain confident that we will continue to execute against our compelling organic growth opportunities."

(a)

The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "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.

(b)

See table on page 24 for more information on Selected Items Impact on Earnings.

 

Selected Financial Highlights















Dollars in millions, except per share data





Change 2Q25 vs.



2Q25

1Q25

2Q24


1Q25

2Q24

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

$      387

$      370

$      237


4.6 %

63.3 %

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

.35

.33

.25


6.1

40.0

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

11.09 %

11.24 %

10.39 %


N/A

N/A

Return on average total assets from continuing operations

.91

.88

.59


N/A

N/A

Common Equity Tier 1 ratio (b)

11.7

11.8

10.5


N/A

N/A

Book value at period end

$   15.32

$   14.89

$   13.09


2.9

17.0

Net interest margin (TE) from continuing operations

2.66 %

2.58 %

2.04 %


N/A

N/A











(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)

June 30, 2025 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable

 

INCOME STATEMENT HIGHLIGHTS














Revenue














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Net interest income (TE)

$      1,150

$      1,105

$        899


4.1 %

27.9 %

Noninterest income

690

668

627


3.3

10.0

Total revenue (TE)

$      1,840

$      1,773

$      1,526


3.8 %

20.6 %









TE = Taxable Equivalent

   

Taxable-equivalent net interest income was $1.15 billion for the second quarter of 2025 and the net interest margin was 2.66%. Compared to the second quarter of 2024, net interest income increased by $251 million, and the net interest margin increased by 62 basis points. These increases primarily reflect the impact of lower deposit costs, reinvestment of proceeds from maturing low-yielding investment securities, fixed-rate loans and swaps repricing into higher-yielding investments, the repositioning of the available-for-sale portfolio during the third and fourth quarters of 2024, 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, and lower loan balances.

Compared to the first quarter of 2025, taxable-equivalent net interest income increased by $45 million, and the net interest margin increased by 8 basis points. These increases were driven by a decline in funding costs, including interest-bearing deposit costs, the redeployment of maturing low-yielding investments and swaps into higher-yielding investments, and growth in commercial and industrial loans. Net interest income also benefited from one additional day in the second quarter of 2025 compared to the first quarter of 2025.

Noninterest Income














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Trust and investment services income

$        146

$        139

$        139


5.0 %

5.0 %

Investment banking and debt placement fees

178

175

126


1.7

41.3

Cards and payments income

85

82

85


3.7

—

Service charges on deposit accounts

73

69

66


5.8

10.6

Corporate services income

76

65

68


16.9

11.8

Commercial mortgage servicing fees

70

76

61


(7.9)

14.8

Corporate-owned life insurance income

32

33

34


(3.0)

(5.9)

Consumer mortgage income

15

13

16


15.4

(6.3)

Operating lease income and other leasing gains

14

9

21


55.6

(33.3)

Other income

1

7

21


(85.7)

(95.2)

Net securities gains (losses)

—

—

(10)


—

N/M

Total noninterest income

$        690

$        668

$        627


3.3 %

10.0 %









N/M = Not Meaningful

           

Compared to the second quarter of 2024, noninterest income increased by $63 million. The increase was driven by a $52 million increase in investment banking and debt placement fees reflecting higher syndications, commercial real estate, and equity issuance activity, and a $9 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances. We also continued to see momentum across wealth management and commercial payments, which partially offset a $20 million decrease in other income and a $7 million decrease in operating lease income and other leasing gains.

Compared to the first quarter of 2025, noninterest income increased by $22 million. The increase was driven by an $11 million increase in corporate services income reflecting higher loan, derivative and FX client activity, and a $7 million increase in trust and investment services income. The increase was partly offset by a $6 million decrease in commercial mortgage servicing fees.

Noninterest Expense














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Personnel expense

$        705

$        680

$        636


3.7 %

10.8 %

Net occupancy

69

67

66


3.0

4.5

Computer processing

107

107

101


—

5.9

Business services and professional fees

48

40

37


20.0

29.7

Equipment

21

20

20


5.0

5.0

Operating lease expense

10

11

17


(9.1)

(41.2)

Marketing

24

21

21


14.3

14.3

Other expense

170

185

181


(8.1)

(6.1)

Total noninterest expense

$      1,154

$      1,131

$      1,079


2.0 %

7.0 %








 

Compared to the second quarter of 2024, noninterest expense increased by $75 million. The increase was primarily driven by a $69 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, and continued investments in people. Business services and professional fees, and computer processing expenses increased primarily due to technology-related investments. These were partially offset by a $7 million decrease in operating lease expense.

Compared to the first quarter of 2025, noninterest expense increased by $23 million. The increase was primarily driven by a $25 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, and continued investments in people. Higher business services and professional fees were driven by increases in technology-related investments. This was partially offset by a $15 million decrease in other expenses primarily due to lower fraud and other losses and FDIC insurance expense.

BALANCE SHEET HIGHLIGHTS














Average Loans














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Commercial and industrial (a)

$    55,604

$    53,746

$    54,599


3.5 %

1.8 %

Other commercial loans

18,708

18,619

20,500


.5

(8.7)

Total consumer loans

31,403

31,989

33,862


(1.8)

(7.3)

Total loans

$  105,715

$  104,354

$  108,961


1.3 %

(3.0) %










(a)

Commercial and industrial average loan balances include $218 million, $213 million, and $218 million of assets from commercial credit cards at June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

 

Average loans were $105.7 billion for the second quarter of 2025, a decrease of $3.2 billion compared to the second quarter of 2024. Average commercial loans declined by $787 million, primarily driven by a decrease in commercial real estate loans. Average consumer loans declined by $2.5 billion, reflective of broad-based declines across all loan categories.

Compared to the first quarter of 2025, average loans increased by $1.4 billion. Average commercial loans increased $1.9 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $586 million, reflective of the intentional run-off of low-yielding loans.

Average Deposits














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Non-time deposits

$  131,845

$  131,917

$  128,161


(.1) %

2.9 %

Time deposits

15,601

16,625

16,019


(6.2)

(2.6)

Total deposits

$  147,446

$  148,542

$  144,180


(.7) %

2.3 %








Cost of total deposits

1.99 %

2.06 %

2.28 %


N/A

N/A









N/A = Not Applicable

 

Average deposits totaled $147.4 billion for the second quarter of 2025, an increase of $3.3 billion compared to the year-ago quarter, reflecting growth in consumer deposits.

Compared to the first quarter of 2025, average deposits decreased by $1.1 billion, driven by a reduction in higher-cost commercial client balances and retail CDs. The rate paid on interest-bearing deposits declined by 9 basis points, and the overall cost of deposits declined by 7 basis points to 1.99%.

ASSET QUALITY














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Net loan charge-offs

$      102

$      110

$       91


(7.3) %

12.1 %

Net loan charge-offs to average total loans

.39 %

.43 %

.34 %


N/A

N/A

Nonperforming loans at period end

$      696

$      686

$      710


1.5

(2.0)

Nonperforming assets at period end

707

700

727


1.0

(2.8)

Allowance for loan and lease losses

1,446

1,429

1,547


1.2

(6.5)

Allowance for credit losses

1,743

1,707

1,833


2.1

(4.9)

Provision for credit losses

138

118

100


16.9

38.0








Allowance for loan and lease losses to nonperforming loans

208 %

208 %

218 %


N/A

N/A

Allowance for credit losses to nonperforming loans

250

249

258


N/A

N/A









N/A = Not Applicable

           

Key's provision for credit losses was $138 million, compared to $100 million in the second quarter of 2024 and $118 million in the first quarter of 2025. The increase from the year-ago quarter reflects higher net loan charge-offs and a larger reserve build. The increase from the prior quarter reflects a larger reserve build, partially offset by lower net charge-offs. This quarter, Key added $36 million to its allowance for credit losses to account for recent loan growth, changes in loan mix, and some deterioration in the macroeconomic outlook.

Net loan charge-offs for the second quarter of 2025 totaled $102 million, or 0.39% of average total loans. These results compare to $91 million, or 0.34%, for the second quarter of 2024 and $110 million, or 0.43%, for the first quarter of 2025. Key's allowance for credit losses was $1.7 billion, or 1.64% of total period-end loans at June 30, 2025, compared to 1.71% at June 30, 2024, and 1.63% at March 31, 2025.

At June 30, 2025, Key's nonperforming loans totaled $696 million, which represented 0.65% of period-end portfolio loans. These results compare to 0.66% at June 30, 2024, and 0.65% at March 31, 2025. Nonperforming assets at June 30, 2025, totaled $707 million, and represented 0.66% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.68% at June 30, 2024, and 0.67% at March 31, 2025.

CAPITAL

Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at June 30, 2025.

Capital Ratios









6/30/2025

3/31/2025

6/30/2024

Common Equity Tier 1 (a)

11.7 %

11.8 %

10.5 %

Tier 1 risk-based capital (a)

13.4

13.5

12.2

Total risk-based capital (a)

15.7

16.0

14.7

Tangible common equity to tangible assets (b)

7.8

7.4

5.2

Leverage (a)

10.3

10.2

9.1







(a)

June 30, 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 second quarter of 2025. As shown in the preceding table, at June 30, 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 2Q25 vs.



2Q25

1Q25

2Q24


1Q25

2Q24

Shares outstanding at beginning of period

1,111,986

1,106,786

942,776


.5 %

17.9 %

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

467

5,200

424


(91.0)

10.1


Shares outstanding at end of period

1,112,453

1,111,986

943,200


— %

17.9 %









 

           

Key declared a dividend in May of 2025 of $.205 per common share, payable in the second quarter of 2025.

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 2Q25 vs.



2Q25

1Q25

2Q24


1Q25

2Q24

Revenue from continuing operations (TE)







Consumer Bank

$         912

$         871

$         758


4.7 %

20.3 %

Commercial Bank

974

942

768


3.4

26.8

Other (a)

(46)

(40)

0


(15.0)

N/M


Total

$       1,840

$       1,773

$       1,526


3.8 %

20.6 %









Income (loss) from continuing operations attributable to Key







Consumer Bank

$         122

$         116

$           59


5.2 %

106.8 %

Commercial Bank

349

321

206


8.7

69.4

Other (a)

(48)

(31)

8


(54.8)

(700.0)


Total

$         423

$         406

$         273


4.2 %

54.9 %











(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 represents 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; N/M = Not Meaningful

 

Consumer Bank














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Summary of operations







Net interest income (TE)

$         676

$         646

$         523


4.6 %

29.3 %

Noninterest income

236

225

235


4.9

.4

Total revenue (TE)

912

871

758


4.7

20.3

Provision for credit losses

55

43

33


27.9

66.7

Noninterest expense

696

675

648


3.1

7.4

Income (loss) before income taxes (TE)

161

153

77


5.2

109.1

Allocated income taxes (benefit) and TE adjustments

39

37

18


5.4

116.7

Net income (loss) attributable to Key

$         122

$         116

$           59


5.2 %

106.8 %








Average balances







Loans and leases

$     36,137

$     36,819

$     39,174


(1.9) %

(7.8) %

Total assets

39,156

39,806

42,008


(1.6)

(6.8)

Deposits

88,002

88,306

85,397


(.3)

3.1








Assets under management at period end

$     64,244

$     61,053

$     57,602


5.2 %

11.5 %









TE = Taxable Equivalent

 

Additional Consumer Bank Data














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Noninterest income







Trust and investment services income

$       119

$       113

$       112


5.3 %

6.3 %

Service charges on deposit accounts

35

33

34


6.1

2.9

Cards and payments income

61

57

61


7.0

—

Consumer mortgage income

14

13

16


7.7

(12.5)

Other noninterest income

7

9

12


(22.2)

(41.7)

Total noninterest income

$       236

$       225

$       235


4.9 %

.4 %








Average deposit balances







Money market deposits

$  34,524

$  33,533

$  30,229


3.0 %

14.2 %

Demand deposits

22,784

22,771

22,291


.1

2.2

Savings deposits

4,406

4,392

4,791


.3

(8.0)

Time deposits

11,910

13,320

13,039


(10.6)

(8.7)

Noninterest-bearing deposits

14,378

14,290

15,047


.6

(4.4)

Total deposits

$  88,002

$  88,306

$  85,397


(.3) %

3.1 %








Other data







Branches

943

945

946




Automated teller machines

1,166

1,176

1,199











 

Consumer Bank Summary of Operations (2Q25 vs. 2Q24)

  • Key's Consumer Bank recorded net income attributable to Key of $122 million for the second quarter of 2025, compared to $59 million for the year-ago quarter
  • Taxable-equivalent net interest income increased by $153 million, or 29.3%, compared to the second quarter of 2024
  • Average loans and leases decreased $3.0 billion, or 7.8%, from the second quarter of 2024, driven by broad-based declines across all loan categories
  • Average deposits increased $2.6 billion, or 3.1%, from the second quarter of 2024, driven by growth in money market deposits and demand deposits
  • Provision for credit losses increased $22 million compared to the second quarter of 2024, primarily driven by changes in reserve levels due to deterioration in the economic outlook
  • Noninterest income increased $1 million from the year-ago quarter, driven by an increase in trust and investment services income, partially offset by a decrease in consumer mortgage income
  • Noninterest expense increased $48 million from the year-ago quarter, primarily driven by higher support and overhead expense

Commercial Bank














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Summary of operations







Net interest income (TE)

$         556

$         534

$         411


4.1 %

35.3 %

Noninterest income

418

408

357


2.5

17.1

Total revenue (TE)

974

942

768


3.4

26.8

Provision for credit losses

84

75

87


12.0

(3.4)

Noninterest expense

449

462

431


(2.8)

4.2

Income (loss) before income taxes (TE)

441

405

250


8.9

76.4

Allocated income taxes and TE adjustments

92

84

44


9.5

109.1

Net income (loss) attributable to Key

$         349

$         321

$         206


8.7 %

69.4 %








Average balances







Loans and leases

$     69,087

$     67,056

$     69,248


3.0 %

(0.2) %

Loans held for sale

707

754

522


(6.2)

35.4

Total assets

78,486

76,707

78,328


2.3

0.2

Deposits

55,886

57,436

57,360


(2.7) %

(2.6) %









TE = Taxable Equivalent

 

Additional Commercial Bank Data














Dollars in millions





Change 2Q25 vs.


2Q25

1Q25

2Q24


1Q25

2Q24

Noninterest income







Trust and investment services income

$           26

$           26

$           27


— %

(3.7) %

Investment banking and debt placement fees

179

175

126


2.3

42.1

Cards and payments income

21

21

21


—

—

Service charges on deposit accounts

38

35

31


8.6

22.6

Corporate services income

68

60

61


13.3

11.5

Commercial mortgage servicing fees

70

76

61


(7.9)

14.8

Operating lease income and other leasing gains

15

8

21


87.5

(28.6)

Other noninterest income

1

7

9


(85.7)

(88.9)

Total noninterest income

$         418

$         408

$         357


2.5 %

17.1 %








 

Commercial Bank Summary of Operations (2Q25 vs. 2Q24)

  • Key's Commercial Bank recorded net income attributable to Key of $349 million for the second quarter of 2025 compared to $206 million for the year-ago quarter
  • Taxable-equivalent net interest income increased by $145 million, or 35.3%, compared to the second quarter of 2024
  • Average loan and lease balances decreased $161 million, or 0.2%, compared to the second quarter of 2024, driven by a decline in commercial real estate loans and commercial lease financing
  • Average deposit balances decreased $1.5 billion compared to the second quarter of 2024, driven by a reduction in higher-cost client balances
  • Provision for credit losses decreased $3 million compared to the second quarter of 2024, driven by a lower reserve build as changes in the portfolio mix offset economic deterioration, as well as lower net loan charge-offs
  • Noninterest income increased $61 million compared to the second quarter of 2024, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
  • Noninterest expense increased $18 million compared to the second quarter of 2024, driven by higher support and overhead expense

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

KeyCorp's roots trace back 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 $185 billion at June 30, 2025.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is 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 9:00 a.m. ET, on July 22, 2025. A replay of the call will be available on our website through July 22, 2026.

For up-to-date company information, media contacts, and facts and figures about Key's lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****

KeyCorp
Second Quarter 2025
Financial Supplement           

Page


12

Basis of Presentation

13

Financial Highlights

15

GAAP to Non-GAAP Reconciliation

17

Consolidated Balance Sheets

18

Consolidated Statements of Income

19

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

21

Noninterest Expense

21

Personnel Expense

21

Loan Composition

21

Loans Held for Sale Composition

22

Summary of Changes in Loans Held for Sale

22

Summary of Loan and Lease Loss Experience From Continuing Operations

23

Asset Quality Statistics From Continuing Operations

23

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

23

Summary of Changes in Nonperforming Loans From Continuing Operations

24

Line of Business Results

24

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




6/30/2025

3/31/2025

6/30/2024

Summary of operations





Net interest income (TE)

$         1,150

$         1,105

$           899


Noninterest income

690

668

627



Total revenue (TE)

1,840

1,773

1,526


Provision for credit losses

138

118

100


Noninterest expense

1,154

1,131

1,079


Income (loss) from continuing operations attributable to Key

423

406

273


Income (loss) from discontinued operations, net of taxes

2

(1)

1


Net income (loss) attributable to Key

425

405

274








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

387

370

237


Income (loss) from discontinued operations, net of taxes

2

(1)

1


Net income (loss) attributable to Key common shareholders

389

369

238

Per common share





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

$            .35

$            .34

$            .25


Income (loss) from discontinued operations, net of taxes

—

—

—


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

.35

.34

.25








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

.35

.33

.25


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

—

—

—


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

.35

.33

.25








Cash dividends declared

.205

.205

.205


Book value at period end

15.32

14.89

13.09


Tangible book value at period end

12.83

12.40

10.13


Market price at period end

17.42

15.99

14.21

Performance ratios





From continuing operations:





Return on average total assets

.91 %

.88 %

.59 %


Return on average common equity

9.26

9.30

7.96


Return on average tangible common equity (b)

11.09

11.24

10.39


Net interest margin (TE)

2.66

2.58

2.04


Cash efficiency ratio (b)

62.4

63.5

70.2


From consolidated operations:





Return on average total assets

.91 %

.88 %

.59 %


Return on average common equity

9.31

9.28

7.99


Return on average tangible common equity (b)

11.15

11.21

10.43


Net interest margin (TE)

2.66

2.58

2.04


Loan to deposit (c)

72.9

70.2

74.0

Capital ratios at period end





Key shareholders' equity to assets

10.5 %

10.1 %

7.9 %


Key common shareholders' equity to assets

9.2

8.8

6.6


Tangible common equity to tangible assets (b)

7.8

7.4

5.2


Common Equity Tier 1 (d)

11.7

11.8

10.5


Tier 1 risk-based capital (d)

13.4

13.5

12.2


Total risk-based capital (d)

15.7

16.0

14.7


Leverage (d)

10.3

10.2

9.1

Asset quality — from continuing operations





Net loan charge-offs

$           102

$           110

$             91


Net loan charge-offs to average loans

.39 %

.43 %

.34 %


Allowance for loan and lease losses

$         1,446

$         1,429

$         1,547


Allowance for credit losses

1,743

1,707

1,833


Allowance for loan and lease losses to period-end loans

1.36 %

1.36 %

1.44 %


Allowance for credit losses to period-end loans

1.64

1.63

1.71


Allowance for loan and lease losses to nonperforming loans

208

208

218


Allowance for credit losses to nonperforming loans

250

249

258


Nonperforming loans at period-end

$           696

$           686

$           710


Nonperforming assets at period-end

707

700

727


Nonperforming loans to period-end portfolio loans

.65 %

.65 %

.66 %


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

.66

.67

.68

Trust assets





Assets under management

$       64,244

$       61,053

$       57,602

Other data





Average full-time equivalent employees

17,105

16,989

16,646


Branches

943

945

946


Taxable-equivalent adjustment

$              9

$              9

$             12

 





Financial Highlights (continued)

(Dollars in millions, except per share amounts)



Six months ended



6/30/2025

6/30/2024

Summary of operations




Net interest income (TE)

$                  2,255

$                  1,785


Noninterest income

1,358

1,274


Total revenue (TE)

3,613

3,059


Provision for credit losses

256

201


Noninterest expense

2,285

2,222


Income (loss) from continuing operations attributable to Key

829

492


Income (loss) from discontinued operations, net of taxes

1

1


Net income (loss) attributable to Key

830

493






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

757

420


Income (loss) from discontinued operations, net of taxes

1

1


Net income (loss) attributable to Key common shareholders

758

421





Per common share




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

$                     .69

$                     .45


Income (loss) from discontinued operations, net of taxes

—

—


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

.69

.45






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

.69

.45


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

—

—


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

.69

.45






Cash dividends paid

.41

.41





Performance ratios




From continuing operations:




Return on average total assets

.90 %

.53 %


Return on average common equity

9.28

7.00


Return on average tangible common equity (b)

11.16

9.12


Net interest margin (TE)

2.62

2.03


Cash efficiency ratio (b)

63.0

72.1






From consolidated operations:




Return on average total assets

.90 %

.53 %


Return on average common equity

9.29

7.02


Return on average tangible common equity (b)

11.18

9.14


Net interest margin (TE)

2.62

2.03





Asset quality — from continuing operations




Net loan charge-offs

$                     212

$                     172


Net loan charge-offs to average total loans

.41 %

.31 %





Other data




Average full-time equivalent employees

17,047

16,699





Taxable-equivalent adjustment

18

23



(a)

Earnings per share may not foot due to rounding.

(b)

The table entitled "GAAP to Non-GAAP Reconciliations" starting on page 14 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)

June 30, 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," "pre-provision net revenue," "adjusted pre-provision net revenue," "cash efficiency ratio," "adjusted taxable-equivalent revenue," "noninterest expense adjusted for selected items," "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.

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.

Noninterest expense adjusted for selected items is a non-GAAP measure in that it 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.

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.

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


Six months ended


6/30/2025

3/31/2025

6/30/2024


6/30/2025

6/30/2024

Tangible common equity to tangible assets at period-end







Key shareholders' equity (GAAP)

$   19,484

$   19,003

$   14,789




Less: Intangible assets

2,770

2,774

2,793




Preferred Stock (a)

2,446

2,446

2,446




Tangible common equity (non-GAAP)

$   14,268

$   13,783

$     9,550




Total assets (GAAP)

$ 185,499

$ 188,691

$ 187,450




Less: Intangible assets

2,770

2,774

2,793




Tangible assets (non-GAAP)

$ 182,729

$ 185,917

$ 184,657




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

7.81 %

7.41 %

5.17 %




Average tangible common equity







Average Key shareholders' equity (GAAP)

$   19,268

$   18,632

$   14,474


$  18,952

$  14,561

Less: Intangible assets (average)

2,772

2,777

2,796


2,774

2,798

Preferred stock (average)

2,500

2,500

2,500


2,500

2,500

Average tangible common equity (non-GAAP)

$   13,996

$   13,355

$     9,178


$  13,678

$    9,263

Return on average tangible common equity from continuing operations







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

$        387

$        370

$        237


$       757

$       420

Average tangible common equity (non-GAAP)

13,996

13,355

9,178


13,678

9,263








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

11.09 %

11.24 %

10.39 %


11.16 %

9.12 %

Return on average tangible common equity consolidated







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

$        389

$        369

$        238


$       758

$       421

Average tangible common equity (non-GAAP)

13,996

13,355

9,178


13,678

9,263








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

11.15 %

11.21 %

10.43 %


11.18 %

9.14 %

Pre-provision net revenue







Net interest income (GAAP)

$     1,141

$     1,096

$        887


$    2,237

$    1,762

Plus: Taxable-equivalent adjustment

9

9

12


18

23

Noninterest income (GAAP)

690

668

627


1,358

1,274

Less: Noninterest expense (GAAP)

1,154

1,131

1,079


2,285

2,222

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

$        686

$        642

$        447


$    1,328

$       837

Adjusted pre-provision net revenue







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

$        686

$        642

$        447


$    1,328

$       837

Plus: Selected items(b)

—

—

5


—

34

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

$        686

$        642

$        452


$    1,328

$       871

 

GAAP to Non-GAAP Reconciliations (continued)

(Dollars in millions)


Three months ended


Six months ended


6/30/2025

3/31/2025

6/30/2024


6/30/2025

6/30/2024

Cash efficiency ratio







Noninterest expense (GAAP)

$     1,154

$     1,131

$     1,079


$    2,285

$    2,222

Less: Intangible asset amortization

5

5

7


10

15

Noninterest expense less intangible asset amortization (non-GAAP)

$     1,149

$     1,126

$     1,072


$    2,275

$    2,207








Net interest income (GAAP)

$     1,141

$     1,096

$       887


$    2,237

$    1,762

Plus: Taxable-equivalent adjustment

9

9

12


18

23

Net interest income TE (non-GAAP)

1,150

1,105

899


2,255

1,785

Noninterest income (GAAP)

690

668

627


1,358

1,274

Total taxable-equivalent revenue (non-GAAP)

$     1,840

$     1,773

$     1,526


$    3,613

$    3,059








Cash efficiency ratio (non-GAAP)

62.4 %

63.5 %

70.2 %


63.0 %

72.1 %








Noninterest expense adjusted for selected items







Noninterest expense (GAAP)

$     1,154

$     1,131

$     1,079


$    2,285

$    2,222

Plus: Selected items(b)

—

—

(5)


—

(34)

Noninterest expense adjusted for selected items (non-GAAP)

$     1,154

$     1,131

$     1,074


$    2,285

$    2,188

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







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

$       387

$       370

$       237


$       757

$       420

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

—

—

4


—

26

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

$       387

$       370

$       241


$       757

$       446

Diluted earnings per common share (EPS) - adjusted







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

$        .35

$        .33

$        .25


$       .69

$       .45

Plus: EPS impact of selected items(b)

—

—

—


—

.02

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

$        .35

$        .33

$        .25


$       .69

$       .47



(a)

Net of capital surplus.

(b)

Additional detail provided in Selected Items table on page 24.

GAAP = U.S. generally accepted accounting principles

 

Consolidated Balance Sheets

(Dollars in millions)










6/30/2025

3/31/2025

6/30/2024

Assets





Loans

$       106,389

$       104,809

$       107,078


Loans held for sale

530

811

517


Securities available for sale

40,669

40,751

37,460


Held-to-maturity securities

6,914

7,160

7,968


Trading account assets

1,374

1,296

1,219


Short-term investments

11,564

15,349

15,536


Other investments

1,058

1,050

1,259



Total earning assets

168,498

171,226

171,037


Allowance for loan and lease losses

(1,446)

(1,429)

(1,547)


Cash and due from banks

1,766

1,909

1,326


Premises and equipment

599

602

631


Goodwill

2,752

2,752

2,752


Other intangible assets

18

22

41


Corporate-owned life insurance

4,423

4,404

4,382


Accrued income and other assets

8,654

8,958

8,532


Discontinued assets

235

247

296



Total assets

$       185,499

$       188,691

$       187,450







Liabilities





Deposits in domestic offices:






Interest-bearing deposits

$       119,230

$       122,283

$       117,570



Noninterest-bearing deposits

27,675

28,454

28,150



Total deposits

146,905

150,737

145,720


Federal funds purchased and securities sold under repurchase agreements 

20

22

25


Bank notes and other short-term borrowings

2,754

2,328

5,292


Accrued expense and other liabilities

4,273

4,209

4,755


Long-term debt

12,063

12,392

16,869



Total liabilities

166,015

169,688

172,661







Equity





Preferred stock

2,500

2,500

2,500


Common shares

1,257

1,257

1,257


Capital surplus

5,971

5,946

6,185


Retained earnings

14,886

14,724

15,706


Treasury stock, at cost

(2,629)

(2,637)

(5,715)


Accumulated other comprehensive income (loss)

(2,501)

(2,787)

(5,144)



Key shareholders' equity

19,484

19,003

14,789

Total liabilities and equity

$       185,499

$       188,691

$       187,450







Common shares outstanding (000)

1,112,453

1,111,986

943,200

 

Consolidated Statements of Income

(Dollars in millions, except per share amounts)




Three months ended


Six months ended




6/30/2025

3/31/2025

6/30/2024


6/30/2025

6/30/2024

Interest income








Loans

$             1,443

$             1,401

$             1,524


$             2,844

$             3,062


Loans held for sale

11

14

8


25

22


Securities available for sale

411

392

259


803

491


Held-to-maturity securities

61

63

73


124

148


Trading account assets

16

17

16


33

30


Short-term investments

157

174

192


331

334


Other investments

8

9

16


17

33



Total interest income

2,107

2,070

2,088


4,177

4,120

Interest expense








Deposits

730

753

817


1,483

1,599


Federal funds purchased and securities sold under repurchase agreements

4

1

1


5

2


Bank notes and other short-term borrowings

34

27

51


61

97


Long-term debt

198

193

332


391

660



Total interest expense

966

974

1,201


1,940

2,358

Net interest income

1,141

1,096

887


2,237

1,762

Provision for credit losses

138

118

100


256

201

Net interest income after provision for credit losses

1,003

978

787


1,981

1,561

Noninterest income








Trust and investment services income

146

139

139


285

275


Investment banking and debt placement fees

178

175

126


353

296


Cards and payments income

85

82

85


167

162


Service charges on deposit accounts

73

69

66


142

129


Corporate services income

76

65

68


141

137


Commercial mortgage servicing fees

70

76

61


146

117


Corporate-owned life insurance income

32

33

34


65

66


Consumer mortgage income

15

13

16


28

30


Operating lease income and other leasing gains

14

9

21


23

45


Other income

1

7

21


8

30


Net securities gains (losses)

—

—

(10)


—

(13)



Total noninterest income

690

668

627


1,358

1,274

Noninterest expense








Personnel

705

680

636


1,385

1,310


Net occupancy

69

67

66


136

133


Computer processing

107

107

101


214

203


Business services and professional fees

48

40

37


88

78


Equipment

21

20

20


41

40


Operating lease expense

10

11

17


21

34


Marketing

24

21

21


45

40


Other expense

170

185

181


355

384



Total noninterest expense

1,154

1,131

1,079


2,285

2,222

Income (loss) from continuing operations before income taxes

539

515

335


1,054

613


Income taxes (benefit)

116

109

62


225

121

Income (loss) from continuing operations

423

406

273


829

492


Income (loss) from discontinued operations, net of taxes

2

(1)

1


1

1

Net income (loss)

$                425

$                405

$                274


$                830

$                493










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

$                387

$                370

$                237


$                757

$                420

Net income (loss) attributable to Key common shareholders

389

369

238


758

421

Per common share







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

$                 .35

$                 .34

$                 .25


$                 .69

$                 .45

Income (loss) from discontinued operations, net of taxes

—

—

—


—

—

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

.35

.34

.25


.69

.45

Per common share — assuming dilution







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

$                 .35

$                 .33

$                 .25


$                 .69

$                 .45

Income (loss) from discontinued operations, net of taxes

—

—

—


—

—

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

.35

.33

.25


.69

.45










Cash dividends declared per common share

$               .205

$               .205

$               .205


$               .410

$               .410










Weighted-average common shares outstanding (000)

1,100,033

1,096,654

931,726


1,098,453

930,776


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

7,177

9,486

6,761


8,331

7,040

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

1,107,210

1,106,140

938,487


1,106,784

937,816



(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)



Second Quarter 2025


First Quarter 2025


Second 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)

$       55,604

$              838

6.04 %


$       53,746

$              800

6.04 %


$       54,599

$              860

6.34 %


Real estate — commercial mortgage

13,311

200

6.02


13,061

192

5.96


14,287

217

6.10


Real estate — construction

2,873

50

6.95


2,905

49

6.87


3,020

56

7.51


Commercial lease financing

2,524

22

3.59


2,653

23

3.52


3,193

28

3.46


Total commercial loans

74,312

1,110

5.99


72,365

1,064

5.96


75,099

1,161

6.22


Real estate — residential mortgage

19,446

162

3.34


19,737

165

3.33


20,515

169

3.30


Home equity loans

6,091

86

5.63


6,248

86

5.60


6,817

102

5.98


Other consumer loans

4,946

63

5.09


5,087

63

5.01


5,597

70

5.00


Credit cards

920

31

13.44


917

32

14.04


933

34

14.63


Total consumer loans

31,403

342

4.36


31,989

346

4.35


33,862

375

4.44


Total loans

105,715

1,452

5.51


104,354

1,410

5.47


108,961

1,536

5.66


Loans held for sale

770

11

5.72


815

14

6.70


599

8

5.42


Securities available for sale (b), (e)

40,714

411

3.76


39,321

392

3.70


36,764

259

2.42


Held-to-maturity securities (b)

7,038

61

3.46


7,274

63

3.46


8,123

73

3.59


Trading account assets

1,259

16

5.32


1,296

17

5.20


1,231

16

5.38


Short-term investments

13,489

157

4.67


15,211

174

4.63


13,729

192

5.62


Other investments (e)

1,015

8

3.41


935

9

3.73


1,234

16

5.19


Total earning assets

170,000

2,116

4.90


169,206

2,079

4.86


170,641

2,100

4.77


Allowance for loan and lease losses

(1,424)




(1,401)




(1,534)




Accrued income and other assets

18,224




18,285




17,476




Discontinued assets

239




254




305




Total assets

$    187,039




$    186,344




$    186,888



Liabilities













Money market deposits

$       42,586

$              276

2.60 %


$       42,007

$              275

2.65 %


$       39,364

$              290

2.97 %


Demand deposits

57,155

309

2.17


57,460

310

2.19


54,629

340

2.50


Savings deposits

4,631

1

.06


4,610

1

.06


5,189

2

.19


Time deposits

15,601

144

3.70


16,625

167

4.09


16,019

185

4.64


Total interest-bearing deposits

119,973

730

2.44


120,702

753

2.53


115,201

817

2.85


Federal funds purchased and securities sold under repurchase agreements

415

4

4.28


100

1

3.94


124

1

4.76


Bank notes and other short-term borrowings

3,288

34

4.27


2,273

27

4.74


3,617

51

5.57


Long-term debt (f)

12,088

198

6.55


11,779

193

6.61


19,219

332

6.91


Total interest-bearing liabilities

135,764

966

2.86


134,854

974

2.92


138,161

1,201

3.49


Noninterest-bearing deposits

27,473




27,840




28,979




Accrued expense and other liabilities

4,295




4,764




4,969




Discontinued liabilities (f)

239




254




305




Total liabilities

$    167,771




$    167,712




$    172,414



Equity













Total equity

$       19,268




$       18,632




$       14,474




Total liabilities and equity

$    187,039




$    186,344




$    186,888



Interest rate spread (TE)



2.04 %




1.94 %




1.28 %

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


$           1,150

2.66 %



$           1,105

2.58 %



$              899

2.04 %

TE adjustment (b)


9




9




12



Net interest income, GAAP basis


$           1,141




$           1,096




$              887




(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 June 30, 2025, March 31, 2025, and June 30, 2024.   

(c)

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

(d)

Commercial and industrial average balances include $218 million, $213 million, and $218 million of assets from commercial credit cards for the three months ended June 30, 2025, March 31, 2025, and June 30, 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 $43.8 billion, $42.7 billion, and $42.8 billion for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Yield based on the fair value of securities available for sale was 4.03%, 3.99%, and 2.82% for the three months ended June 30, 2025, March 31, 2025, and June 30, 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)



Six months ended June 30, 2025


Six months ended June 30, 2024



Average


Yield/


Average


Yield/



Balance

Interest (a)

Rate (a)


Balance

Interest (a)

Rate (a)

Assets









Loans: (b), (c)









Commercial and industrial (d)

$         54,680

$           1,638

6.04 %


$         54,909

$           1,714

6.28 %


Real estate — commercial mortgage

13,187

392

5.99


14,562

446

6.16


Real estate — construction

2,889

99

6.91


3,030

113

7.51


Commercial lease financing

2,588

46

3.55


3,269

55

3.34


Total commercial loans

73,344

2,175

5.98


75,770

2,328

6.18


Real estate — residential mortgage

19,591

327

3.34


20,664

340

3.30


Home equity loans

6,169

172

5.62


6,921

206

5.98


Other consumer loans

5,016

126

5.05


5,699

142

5.00


Credit cards

919

62

13.74


943

69

14.78


Total consumer loans

31,695

687

4.35


34,227

757

4.44


Total loans

105,039

2,862

5.49


109,997

3,085

5.64


Loans held for sale

792

25

6.23


744

22

5.86


Securities available for sale (b), (e)

40,021

803

3.73


36,926

491

2.29


Held-to-maturity securities (b)

7,156

124

3.46


8,273

148

3.58


Trading account assets

1,277

33

5.26


1,171

30

5.30


Short-term investments

14,345

331

4.65


11,986

334

5.61


Other investments (e)

975

17

3.57


1,235

33

5.29


Total earning assets

169,605

4,195

4.88


170,332

4,143

4.72


Allowance for loan and lease losses

(1,413)




(1,519)




Accrued income and other assets

18,254




17,412




Discontinued assets

246




317




Total assets

$       186,692




$       186,542



Liabilities









Money market deposits

$         42,298

$               551

2.63 %


$         38,512

$               554

2.89 %


Other demand deposits

57,307

619

2.18


55,383

697

2.53


Savings deposits

4,620

2

.06


5,221

3

.13


Time deposits

16,110

311

3.90


15,225

345

4.55


Total interest-bearing deposits

120,335

1,483

2.49


114,341

1599

2.81


Federal funds purchased and securities sold under repurchase agreements

258

5

4.22


115

2

4.42


Bank notes and other short-term borrowings

2,784

61

4.47


3,471

97

5.60


Long-term debt (f)

11,934

391

6.58


19,378

660

6.81


Total interest-bearing liabilities

135,311

1,940

2.89


137,305

2,358

3.45


Noninterest-bearing deposits

27,655




29,189




Accrued expense and other liabilities

4,528




5,170




Discontinued liabilities (f)

246




317




Total liabilities

$       167,740




$       171,981



Equity









Total equity

18,952




14,561




Total liabilities and equity

$       186,692




$       186,542



Interest rate spread (TE)



1.99 %




1.27 %

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


$           2,255

2.62 %



$           1,785

2.03 %

TE adjustment (b)


18




23



Net interest income, GAAP basis


$           2,237




$           1,762













(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 six months ended June 30, 2025, and June 30, 2024, respectively.  

(c)

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

(d)

Commercial and industrial average balances include $216 million and $214 million of assets from commercial credit cards for the six months ended June 30, 2025, and June 30, 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 $43.2 billion and $42.8 billion for the six months ended June 30, 2025, and June 30, 2024, respectively. Yield based on the fair value of securities available for sale was 4.01% and 2.66% for the six months ended June 30, 2025, and June 30, 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


Six months ended


6/30/2025

3/31/2025

6/30/2024


6/30/2025

6/30/2024

Personnel (a)

$            705

$            680

$            636


$         1,385

$         1,310

Net occupancy

69

67

66


136

133

Computer processing

107

107

101


214

203

Business services and professional fees

48

40

37


88

78

Equipment

21

20

20


41

40

Operating lease expense

10

11

17


21

34

Marketing

24

21

21


45

40

Other expense

170

185

181


355

384

Total noninterest expense

$         1,154

$         1,131

$         1,079


$         2,285

$         2,222

Average full-time equivalent employees (b)

17,105

16,989

16,646


17,047

16,699



(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


Six months ended


6/30/2025

3/31/2025

6/30/2024


6/30/2025

6/30/2024

Salaries and contract labor

$            427

$            405

$           394


$            832

$            783

Incentive and stock-based compensation

168

158

143


326

302

Employee benefits

108

109

98


217

224

Severance

2

8

1


10

1

Total personnel expense

$            705

$            680

$           636


$         1,385

$         1,310

 

Loan Composition

(Dollars in millions)











Change 6/30/2025 vs.


6/30/2025

3/31/2025

6/30/2024


3/31/2025

6/30/2024

Commercial and industrial (a)(b)

$         56,058

$         54,378

$         53,129


3.1 %

5.5 %

Commercial real estate:







Commercial mortgage

13,862

13,239

14,218


4.7

(2.5)

Construction

2,830

2,929

3,077


(3.4)

(8.0)

Total commercial real estate loans

16,692

16,168

17,295


3.2

(3.5)

Commercial lease financing (b)

2,472

2,576

3,101


(4.0)

(20.3)

Total commercial loans

75,222

73,122

73,525


2.9

2.3

Real estate — residential mortgage

19,330

19,622

20,380


(1.5)

(5.2)

Home equity loans

6,023

6,154

6,729


(2.1)

(10.5)

Other consumer loans

4,881

5,000

5,514


(2.4)

(11.5)

Credit cards

933

911

930


2.4

.3

Total consumer loans

31,167

31,687

33,553


(1.6)

(7.1)

Total loans (c), (d)

$       106,389

$       104,809

$       107,078


1.5 %

(.6) %



(a)

Loan balances include $220 million, $218 million, and $217 million of commercial credit card balances at June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

(b)

Commercial and industrial includes receivables held as collateral for a secured borrowing of $192 million at March 31, 2025 and $285 million at June 30, 2024. Commercial lease financing includes receivables held as collateral for a secured borrowing of $2 million, $2 million, and $5 million at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)

Total loans exclude loans of $230 million at June 30, 2025, $243 million at March 31, 2025, and $291 million at June 30, 2024, related to the discontinued operations of the education lending business.

(d)

Accrued interest of $465 million, $448 million, and $502 million at June 30, 2025, March 31, 2025, and June 30, 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 6/30/2025 vs.


6/30/2025

3/31/2025

6/30/2024


3/31/2025

6/30/2024

Commercial and industrial

$             158

$             252

$               72


(37.3) %

119.4 %

Real estate — commercial mortgage

290

473

354


(38.7)

(18.1)

Real estate — residential mortgage

82

86

91


(4.7)

(9.9)

Total loans held for sale

$             530

$             811

$             517


(34.6) %

2.5 %

 

Summary of Changes in Loans Held for Sale

(Dollars in millions)








2Q25

1Q25

4Q24

3Q24

2Q24

Balance at beginning of period

$            811

$            797

$         1,058

$            517

$            228

New originations

1,806

1,840

2,915

2,473

1,532

Transfers from (to) held to maturity, net

(71)

6

—

(16)

(1)

Loan sales

(2,012)

(1,695)

(3,039)

(1,889)

(1,234)

Loan draws (payments), net

(1)

(138)

(136)

(28)

(7)

Valuation and other adjustments

(3)

1

(1)

1

(1)

Balance at end of period

$            530

$            811

$            797

$         1,058

$            517

 

Summary of Loan and Lease Loss Experience From Continuing Operations

(Dollars in millions)









Three months ended


Six months ended


6/30/2025

3/31/2025

6/30/2024


6/30/2025

6/30/2024

Average loans outstanding

$ 105,715

$ 104,354

$ 108,961


$ 105,039

$ 109,997

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

$     1,429

$     1,409

$     1,542


$    1,409

$    1,508

Loans charged off:







Commercial and industrial

94

62

86


156

148








Real estate — commercial mortgage

6

36

10


42

15

Real estate — construction

—

—

—


—

—

  Total commercial real estate loans

6

36

10


42

15

Commercial lease financing

2

—

6


2

6

  Total commercial loans

102

98

102


200

169

Real estate — residential mortgage

—

1

1


1

2

Home equity loans

—

1

—


1

1

Other consumer loans

13

14

16


27

32

Credit cards

12

12

12


24

24

  Total consumer loans

25

28

29


53

59

  Total loans charged off

127

126

131


253

228

Recoveries:







Commercial and industrial

19

10

31


29

39








Real estate — commercial mortgage

1

—

1


1

1

Real estate — construction

—

—

—


—

—

  Total commercial real estate loans

1

—

1


1

1

Commercial lease financing

—

—

3


—

5

  Total commercial loans

20

10

35


30

45

Real estate — residential mortgage

1

1

1


2

3

Home equity loans

1

1

—


2

1

Other consumer loans

2

2

2


4

4

Credit cards

1

2

2


3

3

  Total consumer loans

5

6

5


11

11

  Total recoveries

25

16

40


41

56

Net loan charge-offs

(102)

(110)

(91)


(212)

(172)

Provision (credit) for loan and lease losses

119

130

96


249

211

Allowance for loan and lease losses at end of period

$     1,446

$     1,429

$     1,547


$    1,446

$    1,547








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

$       278

$       290

$       281


$       290

$       296

Provision (credit) for losses on lending-related commitments

19

(12)

4


7

(10)

Other

—

—

1


—

—

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

$       297

$       278

$       286


$       297

$       286








Total allowance for credit losses at end of period

$     1,743

$     1,707

$     1,833


$    1,743

$    1,833








Net loan charge-offs to average total loans

.39 %

.43 %

.34 %


.41 %

.31 %

Allowance for loan and lease losses to period-end loans

1.36

1.36

1.44


1.36

1.44

Allowance for credit losses to period-end loans

1.64

1.63

1.71


1.64

1.71

Allowance for loan and lease losses to nonperforming loans

208

208

218


208

218

Allowance for credit losses to nonperforming loans

250

249

258


250

258








Discontinued operations — education lending business:







Loans charged off

$           1

$           1

$           1


$          1

$          2

Recoveries

—

—

1


—

1

  Net loan charge-offs

$         (1)

$         (1)

$         —


$         (1)

$         (1)



(a)

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

 

Asset Quality Statistics From Continuing Operations

(Dollars in millions)


2Q25

1Q25

4Q24

3Q24

2Q24

Net loan charge-offs

$       102

$       110

$       114

$       154

$         91

Net loan charge-offs to average total loans

.39 %

.43 %

.43 %

.58 %

.34 %

Allowance for loan and lease losses

$    1,446

$    1,429

$    1,409

$    1,494

$    1,547

Allowance for credit losses (a)

1,743

1,707

1,699

1,774

1,833

Allowance for loan and lease losses to period-end loans

1.36 %

1.36 %

1.35 %

1.42 %

1.44 %

Allowance for credit losses to period-end loans

1.64

1.63

1.63

1.68

1.71

Allowance for loan and lease losses to nonperforming loans

208

208

186

205

218

Allowance for credit losses to nonperforming loans

250

249

224

244

258

Nonperforming loans at period end

$       696

$       686

$       758

$       728

$       710

Nonperforming assets at period end

707

700

772

741

727

Nonperforming loans to period-end portfolio loans

.65 %

.65 %

.73 %

.69 %

.66 %

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

.66

.67

.74

.70

.68



(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)


6/30/2025

3/31/2025

12/31/2024

9/30/2024

6/30/2024

Commercial and industrial

$       280

$       288

$       322

$       365

$       358







Real estate — commercial mortgage

226

206

243

176

173

Real estate — construction

—

—

—

—

—

Total commercial real estate loans

226

206

243

176

173

Commercial lease financing

—

—

—

—

1

Total commercial loans

506

494

565

541

532

Real estate — residential mortgage

95

94

92

87

77

Home equity loans

84

87

89

90

91

Other Consumer loans

4

4

5

4

4

Credit cards

7

7

7

6

6

Total consumer loans

190

192

193

187

178

 Total nonperforming loans (a)

696

686

758

728

710

OREO

11

14

14

13

17

 Total nonperforming assets

$       707

$       700

$       772

$       741

$       727

Accruing loans past due 90 days or more

$         74

$         86

$         90

$       166

$       137

Accruing loans past due 30 through 89 days

266

281

206

184

282

Nonperforming assets from discontinued operations — education lending business 

2

1

2

2

3

Nonperforming loans to period-end portfolio loans

.65 %

.65 %

.73 %

.69 %

.66 %

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

.66

.67

.74

.70

.68

 

Summary of Changes in Nonperforming Loans From Continuing Operations

(Dollars in millions)


2Q25

1Q25

4Q24

3Q24

2Q24

Balance at beginning of period

$          686

$          758

$          728

$          710

$          658

Loans placed on nonaccrual status

233

170

309

271

317

Charge-offs

(127)

(126)

(131)

(167)

(131)

Loans sold

—

—

(13)

(32)

(22)

Payments

(74)

(57)

(111)

(37)

(76)

Transfers to OREO

(1)

(2)

(2)

(1)

(1)

Loans returned to accrual status

(21)

(57)

(22)

(16)

(35)

Balance at end of period

$          696

$          686

$          758

$          728

$          710

 

Line of Business Results

(Dollars in millions)

















Change 2Q25 vs.


2Q25

1Q25

4Q24

3Q24

2Q24


1Q25

2Q24

Consumer Bank









Summary of operations









Total revenue (TE)

$             912

$             871

$             865

$             800

$             758


4.7 %

20.3 %

Provision for credit losses

55

43

43

52

33


27.9

66.7

Noninterest expense

696

675

713

649

648


3.1

7.4

Net income (loss) attributable to Key

122

116

83

75

59


5.2

106.8

Average loans and leases

36,137

36,819

37,567

38,332

39,174


(1.9)

(7.8)

Average deposits

88,002

88,306

87,476

86,431

85,397


(.3)

3.1

Net loan charge-offs

40

52

63

54

45


(23.1)

(11.1)

Net loan charge-offs to average total loans

.44 %

.57 %

.67 %

.56 %

.46 %


(22.8)

(4.3)

Nonperforming assets at period end

$             196

$             201

$             201

$             195

$             190


(2.5)

3.2

Return on average allocated equity

16.20 %

15.15 %

10.24 %

9.01 %

6.98 %


6.9

132.1










Commercial Bank









Summary of operations









Total revenue (TE)

$             974

$             942

$          1,001

$             866

$             768


3.4 %

26.8 %

Provision for credit losses

84

75

(3)

41

87


12.0

(3.4)

Noninterest expense

449

462

515

444

431


(2.8)

4.2

Net income (loss) attributable to Key

349

321

381

299

206


8.7

69.4

Average loans and leases

69,087

67,056

66,691

67,452

69,248


3.0

(.2)

Average loans held for sale

707

754

1,247

998

522


(6.2)

35.4

Average deposits

55,886

57,436

59,687

58,696

57,360


(2.7)

(2.6)

Net loan charge-offs

62

57

52

99

64


8.8

(3.1)

Net loan charge-offs to average total loans

.36 %

.34 %

.31 %

.58 %

.37 %


5.9

(2.7)

Nonperforming assets at period end

$             511

$             499

$             571

$             546

$             537


2.4

(4.8)

Return on average allocated equity

14.45 %

13.77 %

15.58 %

11.94 %

8.27 %


4.9

74.7


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 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





Six months ended June 30, 2025





 No items

$                  —


$                 —

$                 —






Six months ended June 30, 2024





 FDIC special assessment (other expense)(d)

(34)


(26)

(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 for the three-months ended March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.

(e)

Earnings per share may not foot due to rounding.

 

Key Bicentennial Logo (PRNewsfoto/KeyCorp)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/keycorp-reports-second-quarter-2025-net-income-of-387-million-or-35-per-diluted-common-share-302510143.html

SOURCE KeyCorp

FAQ

What was KeyCorp's (KEY) earnings per share in Q2 2025?

KeyCorp reported earnings of $0.35 per diluted share in Q2 2025, up from $0.25 in Q2 2024.

How much did KeyCorp's (KEY) revenue grow in Q2 2025?

KeyCorp's revenue grew 21% year-over-year to $1.8 billion in Q2 2025.

What was KeyCorp's (KEY) net interest margin in Q2 2025?

KeyCorp's net interest margin was 2.66% in Q2 2025, an increase of 8 basis points from Q1 2025 and 62 basis points year-over-year.

How much capital did KeyCorp (KEY) raise for clients in Q2 2025?

KeyCorp raised over $30 billion of capital on behalf of clients in Q2 2025.

What was KeyCorp's (KEY) Common Equity Tier 1 ratio in Q2 2025?

KeyCorp's estimated Common Equity Tier 1 ratio was 11.7% at the end of Q2 2025.

How did KeyCorp's (KEY) credit quality perform in Q2 2025?

Credit quality improved with net charge-offs declining 8% quarter-over-quarter to $102 million, representing 0.39% of average loans.
Stock KEY logo
Keycorp

NYSE:KEY

KEY Rankings

#844 Ranked by Market Cap
#729 Ranked by Dividends

KEY Latest News

Jul 15, 2025
KEYCORP DECLARES QUARTERLY CASH DIVIDEND ON COMMON SHARES AND PREFERRED STOCKS
Jul 10, 2025
EarnUp Announces Sale of AI Advisor Platform to BECU
Jul 7, 2025
KEYBANK LAUNCHES PREDICTIVE ACCOUNTS RECEIVABLE MATCHING WITH KEYTOTAL AR POWERED BY VERSAPAY
Jun 24, 2025
Jaan Health Secures $25M to Transform Care for Millions of Chronically Ill Patients
Jun 12, 2025
91% OF COMPANIES PRIORITIZE TARIFF IMPACT MANAGEMENT IN KEYBANK'S LATEST MIDDLE MARKET PULSE SURVEY

KEY Latest SEC Filings

Jul 22, 2025
[8-K] KeyCorp Reports Material Event
Jul 21, 2025
[Form 4/A] KeyCorp Amended Insider Trading Activity
Jul 2, 2025
[Form 4] KeyCorp Insider Trading Activity
Jul 2, 2025
[Form 4] KeyCorp Insider Trading Activity
Jul 2, 2025
[Form 4] KeyCorp Insider Trading Activity

KEY Stock Data

20.12B
1.09B
0.32%
86.94%
2.28%
Banks - Regional
National Commercial Banks
Link
United States
CLEVELAND

Related Articles

Continue reading with these related stories

View All Latest News