KeyCorp Reports Strong Earnings Growth with Third Quarter Net Income of $454 Million

KeyCorp Reports Strong Earnings Growth

Cleveland, OH – October 16, 2025 – KeyCorp (NYSE: KEY) has announced impressive earnings for the third quarter of 2025, reporting a net income of $454 million, translating to $0.41 per diluted common share. This result is a remarkable increase from the adjusted net income of $450 million or $0.41 per diluted share, a significant turnaround from the same period last year, which saw a net loss of $447 million. The growth reflects the bank's strategic initiatives and improved market conditions.

Financial Highlights

Key's revenue reached $1.9 billion, with a year-over-year adjusted increase of 17%. Such growth can be largely attributed to the upward swing in net interest income, which showed a 4% increase from the previous quarter, establishing a net interest margin of 2.75%, a rise of 9 basis points. This surge is complemented by a 2% increase in average deposits compared to the prior quarter, demonstrating improved client engagement and retention in the consumer and commercial sectors.

Amid the positive outlook, KeyCorp managed to maintain solid credit quality metrics. Nonperforming assets saw a 6% decrease sequentially, while net charge-offs remained stable at 42 basis points, indicating effective risk management practices amidst evolving economic landscapes.

Executive Insight

Chris Gorman, Chairman and CEO of KeyCorp, commented on the results, stating that, “Our achievements this quarter signify a sustained momentum in our operations. With an increase of over 1,000 basis points of operating leverage for the quarter, growth in net interest income continues to outpace expenses.” He emphasized that KeyCorp's focus on investing in front-line bankers and technology is pivotal for future growth, with tangible book value per share growing by 4% sequentially and 14% year-over-year.

Market Position and Investments

The firm’s balanced approach towards client deposits and asset management culminated in a record high of $68 billion in assets under management, marking an 11% year-over-year increase. Gorman noted that KeyCorp successfully raised approximately $50 billion in capital for its clients during this period, retaining only a minor fraction on its balance sheet. This exemplifies KeyCorp's strategic positioning in investment banking and wealth management, aligning with an anticipated record revenue trajectory in 2025.

Looking Ahead

As key indicators reveal continuing client engagement and favorable market conditions, Gorman expressed high confidence for the upcoming fiscal periods. The company aims to achieve a 15% return on tangible common equity, reflecting its proactive management strategy and commitment to enhancing shareholder value while navigating through potential external challenges.

In summary, KeyCorp's third quarter results manifest a firm commitment to growth and risk management in an ever-evolving economic landscape. Now more than ever, KeyCorp stands as a resilient institution in the banking sector, ready to meet the demands of its clients and stakeholders alike.

About KeyCorp

Headquartered in Cleveland, Ohio, KeyCorp is one of the nation's preeminent bank-based financial services companies with a long-standing history dating back 200 years. With assets totaling approximately $187 billion as of September 30, 2025, KeyCorp provides diversified banking and investment solutions across 15 states under the KeyBank National Association name, operating close to 1,000 branches and 1,200 ATMs.