Keycorp Stock Earnings Reports

KeyCorp reported a strong Q1 2026 with EPS of $0.44 (+33% YoY) and ROTCE above 13%, continuing progress toward a 15%+ ROTCE target by year-end 2027. Revenue grew 10% YoY while expenses rose 4%; adjusted pre-provision net revenue (PPNR) increased for the eighth consecutive quarter. Net interest margin (NIM) expanded sequentially to 2.87% and management raised full-year NII growth guidance to 9%–10% and now expects to exit 2026 with NIM around ~3.05%. Commercial loan growth was broad-based (period-end up $3.3B, +4% sequentially) with healthy pipelines (commercial loan pipelines +~20% from year-end); average loans and commercial loans guidance were also raised. Deposits were down seasonally (intentional brokered CD runoff) with continued focus on funding-cost management (interest-bearing deposit beta ~56%). Credit metrics remain healthy (annualized net charge-offs ~38 bps) with modest reserve build for macro uncertainty. Management provided expanded disclosure on NDFI and private credit portfolios, emphasizing that the majority of those exposures are investment-grade, relationship-based businesses with structural protections. Capital flexibility is highlighted: management repurchased nearly $400M in Q1 and now expects to repurchase at least $1.3B of common stock in 2026. The firm plans ~$1B technology investment in 2026 with AI-focused use cases (client experience, credit decisioning, productivity, risk/security). Management reiterated priorities: support client growth, invest in people/technology, maintain capital returns, and remain vigilant on macro risks.