Keycorp Stock Earnings Reports

KeyCorp reported strong Q1 2026 results with EPS of $0.44 (up 33% YoY) and ROTCE above 13%, moving toward its 15%+ ROTCE target by year-end 2027. Revenue grew 10% YoY while expenses rose 4%, and adjusted PPNR increased sequentially for the eighth quarter. Net interest margin expanded 5 bps to 2.87% and management reaffirmed a path to exceed a 3.0% NIM by year-end, updating full-year NII growth guidance to 9%–10% and raising loan growth guidance (average loans now +2%–4%; average commercial loans +6%–8%). Commercial loan growth was broad-based (+$3.3B period-end), pipelines (commercial loan and investment banking) remain elevated, and priority fee businesses (Wealth, investment banking, commercial payments) grew ~12% YoY. Total funding costs declined, deposit cost beta improved (cumulative through-the-cycle ~56%), and asset quality stayed strong (annualized net charge-offs 38 bps). Management repurchased nearly $400M of stock in Q1 and now expects to repurchase at least $1.3B in 2026. Preliminary analysis of the Basel III endgame NPR indicates >100 bps benefit to marked CET1 under the revised standardized approach, implying a fully phased CET1 around ~11%. The bank continues to invest (~$1B in technology in 2026), is expanding frontline banker hires, and says its private credit and NDFI exposures are largely investment-grade and well-managed. Management emphasized disciplined underwriting, vigilant macro risk monitoring, and continued focus on returning capital while supporting client-led growth.