Keycorp Stock Earnings Reports

KeyCorp reported strong Q1 2026 results with EPS of $0.44 (up 33% YoY) and return on tangible common equity above 13%, progressing toward a 15%+ ROTCE target by year-end 2027. Revenue grew 10% YoY while expenses rose 4%; adjusted pre-provision net revenue (PPNR) expanded for the eighth consecutive quarter. Net interest margin (NIM) widened 5 bps sequentially to 2.87% and the bank reaffirmed a path to exceed a 3.0% NIM by year-end 2026 (guiding ~3.05% exit NIM). Commercial loans grew $3.3 billion QoQ (period-end), with healthy pipelines (commercial loan pipelines up ~20% vs. year-end). Deposit costs fell (total funding cost down ~15 bps; interest-bearing deposit cost down 22 bps) and KeyCorp expects deposits to trough seasonally in May and then rebuild. Credit metrics remain sound (annualized net charge-off ratio ~38 bps); management added modest qualitative reserves to reflect macro uncertainty. KeyCorp disclosed details on NDFI and private credit: ~ $10.9 billion private credit outstandings, largely investment-grade specialty finance exposure with structural protections, and a recent $2.4 billion increase in regulatory NDFI classification (one-third due to reclassification). Capital position is strong: CET1 of 11.4% (marked CET1 ~10%) and a preliminary estimate that the Basel III endgame proposal could improve marked CET1 by ~100+ bps (implying a fully phased-in CET1 around ~11% under the proposed standardized approach). Management increased share repurchase guidance to at least $1.3 billion in 2026 (up from $1.2 billion) and reiterated continued investments (~$1 billion in technology in 2026), hiring frontline bankers, and disciplined capital priorities (clients, investment, dividend, buybacks). Updated 2026 guidance was raised for net interest income growth (now +9% to +10%) and loan growth (average loans now +2% to +4%, commercial loans +6% to +8%). Management emphasized disciplined underwriting, balance-sheet flexibility, and opportunities in fee businesses (Wealth, investment banking, payments) while remaining vigilant on macro risks.