Keycorp Stock Earnings Reports

KeyCorp delivered strong Q1 2026 results with EPS of $0.44 (up 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%, producing the eighth consecutive quarter of adjusted PPNR growth. NIM expanded modestly to 2.87% and management reiterated a path to exit 2026 above 3.00% (now guiding to ~3.05% exit NIM). Commercial loan growth was broad-based and robust (+$3.3B period-end), average loans and commercial pipelines remain healthy, and priority fee businesses (Wealth, investment banking, payments) grew ~12% YoY. Credit remains solid (annualized net charge-offs ~38 bps) with modest, idiosyncratic upticks in NPLs; management added qualitative reserves to cover macro uncertainty. KeyCorp repurchased nearly $400M of stock in Q1 and increased 2026 buyback guidance to at least $1.3B. Preliminary analysis of the Basel III endgame proposal suggests ~100+ bps benefit to marked CET1 under the revised standardized approach, implying a fully phased-in CET1 around ~11%. Management also signaled ~$1B of technology investment (including AI use-cases) and reinforced disciplined underwriting—particularly for NDFI/private-credit exposures, which management characterizes as largely investment-grade and relationship-driven. Updated 2026 guidance: NII growth 9%–10%, average loan growth 2%–4% (commercial loans 6%–8%), expense growth 3%–4% (unchanged).