KEYCORP REPORTS SECOND QUARTER 2026 NET INCOME OF $472 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 26% YEAR-OVER-YEAR

KeyCorp (NYSE: KEY) announced net income from continuing operations attributable to Key common shareholders of $472 million, or $0.44 per diluted common share,for the second quarter of 2026. For the first quarter of 2026, net income from continuing operations attributable to Key common shareholders was $486 million, or $0.44 per diluted common share. For the second quarter of 2025, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $387 million, or $0.35 per diluted common share.Comments from Chairman and CEO, Chris Gorman"Our second quarter results reflect the strength of our franchise, disciplined execution, and sustained momentum across our businesses. We delivered 7% revenue growth and generated approximately 130 basis points of operating leverage(b) on a year-over-year basis. We expanded net interest margin and grew net interest income both sequentially and year-over-year. We continue to deepen client relationships while attracting new clients across our markets. Our priority growth businesses - investment banking, commercial payments, and wealth management - are performing exceptionally well. Investment banking pipelines grew 9% sequentially. Commercial payments continued to deliver strong, double digit fee growth year-over-year. Assets under management grew to a record $74 billion. These results reinforce the value of our relationship-driven model and the differentiated capabilities we have scaled across multiple businesses.I remain confident in our ability to generate a return on tangible common equity exceeding 15% by year-end 2027. We remain committed to delivering attractive returns to shareholders through both the return on and the return of capital. During the quarter, we repurchased more than $340 million of common shares, reflecting our confidence in the business and our commitment to creating long-term shareholder value. We are operating from a position of strength, supported by a resilient balance sheet, a diversified business model, and strong capital generation. While the operating environment remains dynamic, our performance in the first half of the year demonstrates the power of our strategy, the depth of our client relationships, and the agility of our teammates.Looking ahead, we remain focused on the significant organic growth opportunities in front of us, investing in the capabilities that will further differentiate our franchise, and delivering value for all of our stakeholders." (a) June 30, 2026 ratio is estimated. (b) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. Selected Financial Highlights Dollars in millions, except per share data Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Income (loss) from continuing operations attributable to Key common shareholders $ 472 $ 486 $ 387 (2.9) % 22.0 % Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution 0.44 0.44 0.35 — 25.7 Book value at period end 16.19 16.13 15.32 0.4 5.7 Return on average tangible common equity from continuing operations (a) 12.89 % 13.02 % 11.09 % (13) bps 180 bps Return on average total assets from continuing operations 1.08 1.14 .91 (6) 17 Common Equity Tier 1 ratio (b) 11.2 11.4 11.7 (20) (50) Net interest margin (TE) from continuing operations 2.89 2.87 2.66 2 23 (a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. (b) June 30, 2026 ratio is estimated. TE = Taxable Equivalent INCOME STATEMENT HIGHLIGHTS Revenue Dollars in millions Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Net interest income (TE) (a) $ 1,258 $ 1,230 $ 1,150 2.3 % 9.4 % Noninterest income 706 723 690 (2.4) 2.3 Total revenue (TE) $ 1,964 $ 1,953 $ 1,840 0.6 % 6.7 % (a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. TE = Taxable Equivalent Taxable-equivalent net interest income was $1.26 billion for the second quarter of 2026 and the net interest margin was 2.89%. Compared to the second quarter of 2025, net interest income increased by $108 million, and the net interest margin increased by 23 basis points. These increases were driven by a reduction in deposit costs as a result of declining interest rates and proactive deposit beta management, the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher yielding investments, and a shift in the balance sheet composition to a more favorable mix of higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on repricing earning assets.Compared to the first quarter of 2026, taxable-equivalent net interest income increased by $28 million, and the net interest margin increased by 2 basis points. These increases reflect growth in commercial and industrial loans and the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher-yielding investments. Additionally, net interest income benefited from one additional day in the second quarter of 2026 compared to the first quarter of 2026. Noninterest Income Dollars in millions Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Trust and investment services income $ 159 $ 157 $ 146 1.3 % 8.9 % Investment banking and debt placement fees 169 197 178 (14.2) (5.1) Cards and payments income 94 86 85 9.3 10.6 Service charges on deposit accounts 77 77 73 — 5.5 Corporate services income 80 71 76 12.7 5.3 Commercial mortgage servicing fees 49 62 70 (21.0) (30.0) Corporate-owned life insurance income 33 34 32 (2.9) 3.1 Consumer mortgage income 17 13 15 30.8 13.3 Operating lease income and other leasing gains 10 8 14 25.0 (28.6) Other income 15 18 1 (16.7) N/M Net securities gains (losses) 3 — — N/M N/M Total noninterest income $ 706 $ 723 $ 690 (2.4) % 2.3 % N/M = Not Meaningful Compared to the second quarter of 2025, noninterest income increased by $16 million. The increase was driven by a $13 million increase in trust and investment services income, as well as a $14 million increase in other income. These were partially offset by a $21 million decrease in commercial mortgage servicing fees.Compared to the first quarter of 2026, noninterest income decreased by $17 million. The decrease was driven by a $28 million decrease in investment banking and debt placement fees, and a $13 million decrease in commercial mortgage servicing fees. These were partially offset by a $9 million increase in corporate services income and an $8 million increase in cards and payments income. Noninterest Expense Dollars in millions Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Personnel expense $ 786 $ 743 $ 705 5.8 % 11.5 % Net occupancy 68 68 69 — (1.4) Computer processing 108 111 107 (2.7) 0.9 Business services and professional fees 46 36 48 27.8 (4.2) Equipment 22 19 21 15.8 4.8 Operating lease expense 7 7 10 — (30.0) Marketing 22 18 24 22.2 (8.3) Other expense 158 179 170 (11.7) (7.1) Total noninterest expense $ 1,217 $ 1,181 $ 1,154 3.0 % 5.5 % Compared to the second quarter of 2025, noninterest expense increased by $63 million. The increase was predominantly driven by an $81 million increase in personnel expense primarily related to employee benefits, incentive compensation associated with noninterest income growth, and continued investments in people.Compared to the first quarter of 2026, noninterest expense increased by $36 million. The increase was predominantly driven by a $43 million increase in personnel expense, primarily related to incentive compensation, as well as a $10 million increase in business services and professional fees. These were partially offset by a $21 million decrease in other expense primarily related to lower charitable contributions.Read More

KEYCORP REPORTS SECOND QUARTER 2026 NET INCOME OF $472 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 26% YEAR-OVER-YEAR

Şirketle ilgili diğer haberler