Keycorp Stock Earnings Reports

KeyCorp reported a strong Q1 2026: EPS $0.44 (up 33% YoY) with revenue +10% YoY and adjusted pre-provision net revenue (PPNR) up for the eighth consecutive quarter. Net interest margin (NIM) expanded 5 bps sequentially to 2.87% and management reiterated a goal to exceed a 3.0% NIM by year-end. Commercial loans grew $3.3 billion (4% period-end), average loans guidance was raised (now +2% to +4% for 2026) and commercial loan growth is expected +6% to +8%. Funding cost management was a highlight: total funding costs declined ~15 bps in the quarter and interest-bearing deposit costs fell ~22 bps, producing a through-the-cycle down beta of ~56%. Asset quality remains solid (annualized net charge-off ratio ~38 bps) with an incremental qualitative reserve build to account for macro uncertainty. Management repurchased nearly $400M of stock in the quarter and now expects to repurchase at least $1.3B in 2026 (up from $1.2B). Preliminary analysis of the Basel III endgame proposals implies ~100+ bps benefit to KeyCorp’s marked CET1 ratio under the revised standardized approach, giving the bank flexibility on capital deployment. Management raised full-year net interest income guidance to +9%–10% and now expects to exit 2026 with NIM of ~3.05% on a stable earning asset base; other guidance (expense growth 3%–4%, priority fee growth, etc.) was reaffirmed. Strategic priorities include continued hires in frontline banking and payments, $1B targeted technology investment for 2026 with focused AI use-cases (client experience, credit decisioning, productivity, risk/security), and continued emphasis on fee businesses (Wealth, investment banking, commercial payments). They provided expanded disclosure on NDFI and private credit exposures, characterizing most of those portfolios as high quality and largely investment grade with structural protections.