KEYCORP REPORTS SECOND QUARTER 2025 NET INCOME OF $387 MILLION, OR $.35 PER DILUTED COMMON SHARE
Revenue of $1.8 billion, up 21% year-over-year; Significant positive operating leverage on both a total and fee basis year-over-year
Net interest income up 4% and net interest margin increased 8 bps quarter-over-quarter
Period-end loans up $1.6 billion quarter-over-quarter; Commercial loans up $3.3 billion or 5% year-to-date
Net charge-offs declined 8% quarter-over-quarter; Other credit metrics stable to improved
CLEVELAND, July 22, 2025 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $387 million, or $.35 per diluted common share, for the second quarter of 2025. For the first quarter of 2025, net income from continuing operations attributable to Key common shareholders was $370 million, or $.33 per diluted common share. For the second quarter of 2024, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $237 million, or $.25 per diluted common share, or adjusted net income of $241 million, or $.25 per diluted common share(a). Included in the second quarter of 2024 are $4 million, after-tax, of charges related to the FDIC special assessment(b).
Comments from Chairman and CEO, Chris Gorman
"Our second quarter results demonstrate continued strong momentum. Revenue was up 21% year-over-year driven by our clearly defined net interest income tailwinds and 10% growth in noninterest income, while expenses grew 7%. Sequentially, net interest income grew 4%. Credit quality continues to trend in a positive direction with overall credit migration improving for the sixth consecutive quarter.
Business activity with clients and prospects continues to accelerate. Client deposits and relationship households were up 2% year-over-year while deposit costs were managed below 2%. Period end commercial loans grew $2.1 billion in the second quarter. Assets under management reached a record $64 billion. Investment banking pipelines remain at historically elevated levels. In the second quarter we raised over $30 billion of capital on behalf of our clients. Commercial payments-related fees grew high single digits year-over-year.
We continue to make investments in people and technology that will drive future growth for our company. We remain on target to increase our front line bankers - investment bankers, middle market relationship managers, payments advisors, and wealth managers - by 10% in 2025.
I am energized by our momentum as we win and take share in the marketplace. I remain confident that we will continue to execute against our compelling organic growth opportunities."
(a) | The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "adjusted net income" and "adjusted earnings per share". The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. |
(b) | See table on page 24 for more information on Selected Items Impact on Earnings. |
Selected Financial Highlights | |||||||
Dollars in millions, except per share data | Change 2Q25 vs. | ||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||
Income (loss) from continuing operations attributable to Key common shareholders | $ 387 | $ 370 | $ 237 | 4.6 % | 63.3 % | ||
Income (loss) from continuing operations attributable to Key common shareholders | .35 | .33 | .25 | 6.1 | 40.0 | ||
Return on average tangible common equity from continuing operations (a) | 11.09 % | 11.24 % | 10.39 % | N/A | N/A | ||
Return on average total assets from continuing operations | .91 | .88 | .59 | N/A | N/A | ||
Common Equity Tier 1 ratio (b) | 11.7 | 11.8 | 10.5 | N/A | N/A | ||
Book value at period end | $ 15.32 | $ 14.89 | $ 13.09 | 2.9 | 17.0 | ||
Net interest margin (TE) from continuing operations | 2.66 % | 2.58 % | 2.04 % | N/A | N/A | ||
(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, 2025 ratio is estimated. |
TE = Taxable Equivalent, N/A = Not Applicable | |
INCOME STATEMENT HIGHLIGHTS | ||||||
Revenue | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Net interest income (TE) | $ 1,150 | $ 1,105 | $ 899 | 4.1 % | 27.9 % | |
Noninterest income | 690 | 668 | 627 | 3.3 | 10.0 | |
Total revenue (TE) | $ 1,840 | $ 1,773 | $ 1,526 | 3.8 % | 20.6 % | |
TE = Taxable Equivalent |
Taxable-equivalent net interest income was $1.15 billion for the second quarter of 2025 and the net interest margin was 2.66%. Compared to the second quarter of 2024, net interest income increased by $251 million, and the net interest margin increased by 62 basis points. These increases primarily reflect the impact of lower deposit costs, reinvestment of proceeds from maturing low-yielding investment securities, fixed-rate loans and swaps repricing into higher-yielding investments, the repositioning of the available-for-sale portfolio during the third and fourth quarters of 2024, and an improved funding mix as lower-cost deposits increased while wholesale borrowings declined. These benefits were partially offset by the impact of lower interest rates on variable-rate earning assets, and lower loan balances.
Compared to the first quarter of 2025, taxable-equivalent net interest income increased by $45 million, and the net interest margin increased by 8 basis points. These increases were driven by a decline in funding costs, including interest-bearing deposit costs, the redeployment of maturing low-yielding investments and swaps into higher-yielding investments, and growth in commercial and industrial loans. Net interest income also benefited from one additional day in the second quarter of 2025 compared to the first quarter of 2025.
Noninterest Income | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Trust and investment services income | $ 146 | $ 139 | $ 139 | 5.0 % | 5.0 % | |
Investment banking and debt placement fees | 178 | 175 | 126 | 1.7 | 41.3 | |
Cards and payments income | 85 | 82 | 85 | 3.7 | — | |
Service charges on deposit accounts | 73 | 69 | 66 | 5.8 | 10.6 | |
Corporate services income | 76 | 65 | 68 | 16.9 | 11.8 | |
Commercial mortgage servicing fees | 70 | 76 | 61 | (7.9) | 14.8 | |
Corporate-owned life insurance income | 32 | 33 | 34 | (3.0) | (5.9) | |
Consumer mortgage income | 15 | 13 | 16 | 15.4 | (6.3) | |
Operating lease income and other leasing gains | 14 | 9 | 21 | 55.6 | (33.3) | |
Other income | 1 | 7 | 21 | (85.7) | (95.2) | |
Net securities gains (losses) | — | — | (10) | — | N/M | |
Total noninterest income | $ 690 | $ 668 | $ 627 | 3.3 % | 10.0 % | |
N/M = Not Meaningful |
Compared to the second quarter of 2024, noninterest income increased by $63 million. The increase was driven by a $52 million increase in investment banking and debt placement fees reflecting higher syndications, commercial real estate, and equity issuance activity, and a $9 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances. We also continued to see momentum across wealth management and commercial payments, which partially offset a $20 million decrease in other income and a $7 million decrease in operating lease income and other leasing gains.
Compared to the first quarter of 2025, noninterest income increased by $22 million. The increase was driven by an $11 million increase in corporate services income reflecting higher loan, derivative and FX client activity, and a $7 million increase in trust and investment services income. The increase was partly offset by a $6 million decrease in commercial mortgage servicing fees.
Noninterest Expense | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Personnel expense | $ 705 | $ 680 | $ 636 | 3.7 % | 10.8 % | |
Net occupancy | 69 | 67 | 66 | 3.0 | 4.5 | |
Computer processing | 107 | 107 | 101 | — | 5.9 | |
Business services and professional fees | 48 | 40 | 37 | 20.0 | 29.7 | |
Equipment | 21 | 20 | 20 | 5.0 | 5.0 | |
Operating lease expense | 10 | 11 | 17 | (9.1) | (41.2) | |
Marketing | 24 | 21 | 21 | 14.3 | 14.3 | |
Other expense | 170 | 185 | 181 | (8.1) | (6.1) | |
Total noninterest expense | $ 1,154 | $ 1,131 | $ 1,079 | 2.0 % | 7.0 % | |
Compared to the second quarter of 2024, noninterest expense increased by $75 million. The increase was primarily driven by a $69 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, and continued investments in people. Business services and professional fees, and computer processing expenses increased primarily due to technology-related investments. These were partially offset by a $7 million decrease in operating lease expense.
Compared to the first quarter of 2025, noninterest expense increased by $23 million. The increase was primarily driven by a $25 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, and continued investments in people. Higher business services and professional fees were driven by increases in technology-related investments. This was partially offset by a $15 million decrease in other expenses primarily due to lower fraud and other losses and FDIC insurance expense.
BALANCE SHEET HIGHLIGHTS | ||||||
Average Loans | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Commercial and industrial (a) | $ 55,604 | $ 53,746 | $ 54,599 | 3.5 % | 1.8 % | |
Other commercial loans | 18,708 | 18,619 | 20,500 | .5 | (8.7) | |
Total consumer loans | 31,403 | 31,989 | 33,862 | (1.8) | (7.3) | |
Total loans | $ 105,715 | $ 104,354 | $ 108,961 | 1.3 % | (3.0) % | |
(a) | Commercial and industrial average loan balances include $218 million, $213 million, and $218 million of assets from commercial credit cards at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. |
Average loans were $105.7 billion for the second quarter of 2025, a decrease of $3.2 billion compared to the second quarter of 2024. Average commercial loans declined by $787 million, primarily driven by a decrease in commercial real estate loans. Average consumer loans declined by $2.5 billion, reflective of broad-based declines across all loan categories.
Compared to the first quarter of 2025, average loans increased by $1.4 billion. Average commercial loans increased $1.9 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $586 million, reflective of the intentional run-off of low-yielding loans.
Average Deposits | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Non-time deposits | $ 131,845 | $ 131,917 | $ 128,161 | (.1) % | 2.9 % | |
Time deposits | 15,601 | 16,625 | 16,019 | (6.2) | (2.6) | |
Total deposits | $ 147,446 | $ 148,542 | $ 144,180 | (.7) % | 2.3 % | |
Cost of total deposits | 1.99 % | 2.06 % | 2.28 % | N/A | N/A | |
N/A = Not Applicable |
Average deposits totaled $147.4 billion for the second quarter of 2025, an increase of $3.3 billion compared to the year-ago quarter, reflecting growth in consumer deposits.
Compared to the first quarter of 2025, average deposits decreased by $1.1 billion, driven by a reduction in higher-cost commercial client balances and retail CDs. The rate paid on interest-bearing deposits declined by 9 basis points, and the overall cost of deposits declined by 7 basis points to 1.99%.
ASSET QUALITY | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Net loan charge-offs | $ 102 | $ 110 | $ 91 | (7.3) % | 12.1 % | |
Net loan charge-offs to average total loans | .39 % | .43 % | .34 % | N/A | N/A | |
Nonperforming loans at period end | $ 696 | $ 686 | $ 710 | 1.5 | (2.0) | |
Nonperforming assets at period end | 707 | 700 | 727 | 1.0 | (2.8) | |
Allowance for loan and lease losses | 1,446 | 1,429 | 1,547 | 1.2 | (6.5) | |
Allowance for credit losses | 1,743 | 1,707 | 1,833 | 2.1 | (4.9) | |
Provision for credit losses | 138 | 118 | 100 | 16.9 | 38.0 | |
Allowance for loan and lease losses to nonperforming loans | 208 % | 208 % | 218 % | N/A | N/A | |
Allowance for credit losses to nonperforming loans | 250 | 249 | 258 | N/A | N/A | |
N/A = Not Applicable |
Key's provision for credit losses was $138 million, compared to $100 million in the second quarter of 2024 and $118 million in the first quarter of 2025. The increase from the year-ago quarter reflects higher net loan charge-offs and a larger reserve build. The increase from the prior quarter reflects a larger reserve build, partially offset by lower net charge-offs. This quarter, Key added $36 million to its allowance for credit losses to account for recent loan growth, changes in loan mix, and some deterioration in the macroeconomic outlook.
Net loan charge-offs for the second quarter of 2025 totaled $102 million, or 0.39% of average total loans. These results compare to $91 million, or 0.34%, for the second quarter of 2024 and $110 million, or 0.43%, for the first quarter of 2025. Key's allowance for credit losses was $1.7 billion, or 1.64% of total period-end loans at June 30, 2025, compared to 1.71% at June 30, 2024, and 1.63% at March 31, 2025.
At June 30, 2025, Key's nonperforming loans totaled $696 million, which represented 0.65% of period-end portfolio loans. These results compare to 0.66% at June 30, 2024, and 0.65% at March 31, 2025. Nonperforming assets at June 30, 2025, totaled $707 million, and represented 0.66% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.68% at June 30, 2024, and 0.67% at March 31, 2025.
CAPITAL
Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at June 30, 2025.
Capital Ratios | |||
6/30/2025 | 3/31/2025 | 6/30/2024 | |
Common Equity Tier 1 (a) | 11.7 % | 11.8 % | 10.5 % |
Tier 1 risk-based capital (a) | 13.4 | 13.5 | 12.2 |
Total risk-based capital (a) | 15.7 | 16.0 | 14.7 |
Tangible common equity to tangible assets (b) | 7.8 | 7.4 | 5.2 |
Leverage (a) | 10.3 | 10.2 | 9.1 |
(a) | June 30, 2025 ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision. |
(b) | 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. |
Key's regulatory capital position remained strong in the second quarter of 2025. As shown in the preceding table, at June 30, 2025, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.7% and 13.4%, respectively.
Summary of Changes in Common Shares Outstanding | |||||||
In thousands | Change 2Q25 vs. | ||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||
Shares outstanding at beginning of period | 1,111,986 | 1,106,786 | 942,776 | .5 % | 17.9 % | ||
Shares issued under employee compensation plans (net of cancellations and | 467 | 5,200 | 424 | (91.0) | 10.1 | ||
Shares outstanding at end of period | 1,112,453 | 1,111,986 | 943,200 | — % | 17.9 % | ||
Key declared a dividend in May of 2025 of $.205 per common share, payable in the second quarter of 2025.
LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major business segment to Key's taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.
Major Business Segments | |||||||
Dollars in millions | Change 2Q25 vs. | ||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||
Revenue from continuing operations (TE) | |||||||
Consumer Bank | $ 912 | $ 871 | $ 758 | 4.7 % | 20.3 % | ||
Commercial Bank | 974 | 942 | 768 | 3.4 | 26.8 | ||
Other (a) | (46) | (40) | 0 | (15.0) | N/M | ||
Total | $ 1,840 | $ 1,773 | $ 1,526 | 3.8 % | 20.6 % | ||
Income (loss) from continuing operations attributable to Key | |||||||
Consumer Bank | $ 122 | $ 116 | $ 59 | 5.2 % | 106.8 % | ||
Commercial Bank | 349 | 321 | 206 | 8.7 | 69.4 | ||
Other (a) | (48) | (31) | 8 | (54.8) | (700.0) | ||
Total | $ 423 | $ 406 | $ 273 | 4.2 % | 54.9 % | ||
(a) | Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. |
TE = Taxable Equivalent; N/M = Not Meaningful | |
Consumer Bank | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Summary of operations | ||||||
Net interest income (TE) | $ 676 | $ 646 | $ 523 | 4.6 % | 29.3 % | |
Noninterest income | 236 | 225 | 235 | 4.9 | .4 | |
Total revenue (TE) | 912 | 871 | 758 | 4.7 | 20.3 | |
Provision for credit losses | 55 | 43 | 33 | 27.9 | 66.7 | |
Noninterest expense | 696 | 675 | 648 | 3.1 | 7.4 | |
Income (loss) before income taxes (TE) | 161 | 153 | 77 | 5.2 | 109.1 | |
Allocated income taxes (benefit) and TE adjustments | 39 | 37 | 18 | 5.4 | 116.7 | |
Net income (loss) attributable to Key | $ 122 | $ 116 | $ 59 | 5.2 % | 106.8 % | |
Average balances | ||||||
Loans and leases | $ 36,137 | $ 36,819 | $ 39,174 | (1.9) % | (7.8) % | |
Total assets | 39,156 | 39,806 | 42,008 | (1.6) | (6.8) | |
Deposits | 88,002 | 88,306 | 85,397 | (.3) | 3.1 | |
Assets under management at period end | $ 64,244 | $ 61,053 | $ 57,602 | 5.2 % | 11.5 % | |
TE = Taxable Equivalent |
Additional Consumer Bank Data | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Noninterest income | ||||||
Trust and investment services income | $ 119 | $ 113 | $ 112 | 5.3 % | 6.3 % | |
Service charges on deposit accounts | 35 | 33 | 34 | 6.1 | 2.9 | |
Cards and payments income | 61 | 57 | 61 | 7.0 | — | |
Consumer mortgage income | 14 | 13 | 16 | 7.7 | (12.5) | |
Other noninterest income | 7 | 9 | 12 | (22.2) | (41.7) | |
Total noninterest income | $ 236 | $ 225 | $ 235 | 4.9 % | .4 % | |
Average deposit balances | ||||||
Money market deposits | $ 34,524 | $ 33,533 | $ 30,229 | 3.0 % | 14.2 % | |
Demand deposits | 22,784 | 22,771 | 22,291 | .1 | 2.2 | |
Savings deposits | 4,406 | 4,392 | 4,791 | .3 | (8.0) | |
Time deposits | 11,910 | 13,320 | 13,039 | (10.6) | (8.7) | |
Noninterest-bearing deposits | 14,378 | 14,290 | 15,047 | .6 | (4.4) | |
Total deposits | $ 88,002 | $ 88,306 | $ 85,397 | (.3) % | 3.1 % | |
Other data | ||||||
Branches | 943 | 945 | 946 | |||
Automated teller machines | 1,166 | 1,176 | 1,199 | |||
Consumer Bank Summary of Operations (2Q25 vs. 2Q24)
- Key's Consumer Bank recorded net income attributable to Key of $122 million for the second quarter of 2025, compared to $59 million for the year-ago quarter
- Taxable-equivalent net interest income increased by $153 million, or 29.3%, compared to the second quarter of 2024
- Average loans and leases decreased $3.0 billion, or 7.8%, from the second quarter of 2024, driven by broad-based declines across all loan categories
- Average deposits increased $2.6 billion, or 3.1%, from the second quarter of 2024, driven by growth in money market deposits and demand deposits
- Provision for credit losses increased $22 million compared to the second quarter of 2024, primarily driven by changes in reserve levels due to deterioration in the economic outlook
- Noninterest income increased $1 million from the year-ago quarter, driven by an increase in trust and investment services income, partially offset by a decrease in consumer mortgage income
- Noninterest expense increased $48 million from the year-ago quarter, primarily driven by higher support and overhead expense
Commercial Bank | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Summary of operations | ||||||
Net interest income (TE) | $ 556 | $ 534 | $ 411 | 4.1 % | 35.3 % | |
Noninterest income | 418 | 408 | 357 | 2.5 | 17.1 | |
Total revenue (TE) | 974 | 942 | 768 | 3.4 | 26.8 | |
Provision for credit losses | 84 | 75 | 87 | 12.0 | (3.4) | |
Noninterest expense | 449 | 462 | 431 | (2.8) | 4.2 | |
Income (loss) before income taxes (TE) | 441 | 405 | 250 | 8.9 | 76.4 | |
Allocated income taxes and TE adjustments | 92 | 84 | 44 | 9.5 | 109.1 | |
Net income (loss) attributable to Key | $ 349 | $ 321 | $ 206 | 8.7 % | 69.4 % | |
Average balances | ||||||
Loans and leases | $ 69,087 | $ 67,056 | $ 69,248 | 3.0 % | (0.2) % | |
Loans held for sale | 707 | 754 | 522 | (6.2) | 35.4 | |
Total assets | 78,486 | 76,707 | 78,328 | 2.3 | 0.2 | |
Deposits | 55,886 | 57,436 | 57,360 | (2.7) % | (2.6) % | |
TE = Taxable Equivalent |
Additional Commercial Bank Data | ||||||
Dollars in millions | Change 2Q25 vs. | |||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Noninterest income | ||||||
Trust and investment services income | $ 26 | $ 26 | $ 27 | — % | (3.7) % | |
Investment banking and debt placement fees | 179 | 175 | 126 | 2.3 | 42.1 | |
Cards and payments income | 21 | 21 | 21 | — | — | |
Service charges on deposit accounts | 38 | 35 | 31 | 8.6 | 22.6 | |
Corporate services income | 68 | 60 | 61 | 13.3 | 11.5 | |
Commercial mortgage servicing fees | 70 | 76 | 61 | (7.9) | 14.8 | |
Operating lease income and other leasing gains | 15 | 8 | 21 | 87.5 | (28.6) | |
Other noninterest income | 1 | 7 | 9 | (85.7) | (88.9) | |
Total noninterest income | $ 418 | $ 408 | $ 357 | 2.5 % | 17.1 % | |
Commercial Bank Summary of Operations (2Q25 vs. 2Q24)
- Key's Commercial Bank recorded net income attributable to Key of $349 million for the second quarter of 2025 compared to $206 million for the year-ago quarter
- Taxable-equivalent net interest income increased by $145 million, or 35.3%, compared to the second quarter of 2024
- Average loan and lease balances decreased $161 million, or 0.2%, compared to the second quarter of 2024, driven by a decline in commercial real estate loans and commercial lease financing
- Average deposit balances decreased $1.5 billion compared to the second quarter of 2024, driven by a reduction in higher-cost client balances
- Provision for credit losses decreased $3 million compared to the second quarter of 2024, driven by a lower reserve build as changes in the portfolio mix offset economic deterioration, as well as lower net loan charge-offs
- Noninterest income increased $61 million compared to the second quarter of 2024, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
- Noninterest expense increased $18 million compared to the second quarter of 2024, driven by higher support and overhead expense
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KeyCorp's roots trace back 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $185 billion at June 30, 2025.
Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as "goal," "objective," "plan," "expect," "assume," "anticipate," "intend," "project," "believe," "estimate," or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2024 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the "SEC") and are or will be available on Key's website (www.key.com/ir) and on the SEC's website (www.sec.gov). These factors may include, among others, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions, and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances. |
A live Internet broadcast of KeyCorp's conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts' questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on July 22, 2025. A replay of the call will be available on our website through July 22, 2026.
For up-to-date company information, media contacts, and facts and figures about Key's lines of business, visit our Media Newsroom at https://www.key.com/newsroom.
*****
KeyCorp
Second Quarter 2025
Financial Supplement
Page | |
12 | Basis of Presentation |
13 | Financial Highlights |
15 | GAAP to Non-GAAP Reconciliation |
17 | Consolidated Balance Sheets |
18 | Consolidated Statements of Income |
19 | Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations |
21 | Noninterest Expense |
21 | Personnel Expense |
21 | Loan Composition |
21 | Loans Held for Sale Composition |
22 | Summary of Changes in Loans Held for Sale |
22 | Summary of Loan and Lease Loss Experience From Continuing Operations |
23 | Asset Quality Statistics From Continuing Operations |
23 | Summary of Nonperforming Assets and Past Due Loans From Continuing Operations |
23 | Summary of Changes in Nonperforming Loans From Continuing Operations |
24 | Line of Business Results |
24 | Selected Items Impact on Earnings |
Basis of Presentation
Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Key's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key's website (www.key.com/ir).
Forward-Looking Non-GAAP Financial Measures
From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.
Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.
Taxable Equivalent
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt loans, and certain lease assets, on a common basis that facilitates comparison of results to peers.
Earnings Per Share Equivalent
Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.
Financial Highlights | |||||
(Dollars in millions, except per share amounts) | |||||
Three months ended | |||||
6/30/2025 | 3/31/2025 | 6/30/2024 | |||
Summary of operations | |||||
Net interest income (TE) | $ 1,150 | $ 1,105 | $ 899 | ||
Noninterest income | 690 | 668 | 627 | ||
Total revenue (TE) | 1,840 | 1,773 | 1,526 | ||
Provision for credit losses | 138 | 118 | 100 | ||
Noninterest expense | 1,154 | 1,131 | 1,079 | ||
Income (loss) from continuing operations attributable to Key | 423 | 406 | 273 | ||
Income (loss) from discontinued operations, net of taxes | 2 | (1) | 1 | ||
Net income (loss) attributable to Key | 425 | 405 | 274 | ||
Income (loss) from continuing operations attributable to Key common shareholders | 387 | 370 | 237 | ||
Income (loss) from discontinued operations, net of taxes | 2 | (1) | 1 | ||
Net income (loss) attributable to Key common shareholders | 389 | 369 | 238 | ||
Per common share | |||||
Income (loss) from continuing operations attributable to Key common shareholders | $ .35 | $ .34 | $ .25 | ||
Income (loss) from discontinued operations, net of taxes | — | — | — | ||
Net income (loss) attributable to Key common shareholders (a) | .35 | .34 | .25 | ||
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution | .35 | .33 | .25 | ||
Income (loss) from discontinued operations, net of taxes — assuming dilution | — | — | — | ||
Net income (loss) attributable to Key common shareholders — assuming dilution (a) | .35 | .33 | .25 | ||
Cash dividends declared | .205 | .205 | .205 | ||
Book value at period end | 15.32 | 14.89 | 13.09 | ||
Tangible book value at period end | 12.83 | 12.40 | 10.13 | ||
Market price at period end | 17.42 | 15.99 | 14.21 | ||
Performance ratios | |||||
From continuing operations: | |||||
Return on average total assets | .91 % | .88 % | .59 % | ||
Return on average common equity | 9.26 | 9.30 | 7.96 | ||
Return on average tangible common equity (b) | 11.09 | 11.24 | 10.39 | ||
Net interest margin (TE) | 2.66 | 2.58 | 2.04 | ||
Cash efficiency ratio (b) | 62.4 | 63.5 | 70.2 | ||
From consolidated operations: | |||||
Return on average total assets | .91 % | .88 % | .59 % | ||
Return on average common equity | 9.31 | 9.28 | 7.99 | ||
Return on average tangible common equity (b) | 11.15 | 11.21 | 10.43 | ||
Net interest margin (TE) | 2.66 | 2.58 | 2.04 | ||
Loan to deposit (c) | 72.9 | 70.2 | 74.0 | ||
Capital ratios at period end | |||||
Key shareholders' equity to assets | 10.5 % | 10.1 % | 7.9 % | ||
Key common shareholders' equity to assets | 9.2 | 8.8 | 6.6 | ||
Tangible common equity to tangible assets (b) | 7.8 | 7.4 | 5.2 | ||
Common Equity Tier 1 (d) | 11.7 | 11.8 | 10.5 | ||
Tier 1 risk-based capital (d) | 13.4 | 13.5 | 12.2 | ||
Total risk-based capital (d) | 15.7 | 16.0 | 14.7 | ||
Leverage (d) | 10.3 | 10.2 | 9.1 | ||
Asset quality — from continuing operations | |||||
Net loan charge-offs | $ 102 | $ 110 | $ 91 | ||
Net loan charge-offs to average loans | .39 % | .43 % | .34 % | ||
Allowance for loan and lease losses | $ 1,446 | $ 1,429 | $ 1,547 | ||
Allowance for credit losses | 1,743 | 1,707 | 1,833 | ||
Allowance for loan and lease losses to period-end loans | 1.36 % | 1.36 % | 1.44 % | ||
Allowance for credit losses to period-end loans | 1.64 | 1.63 | 1.71 | ||
Allowance for loan and lease losses to nonperforming loans | 208 | 208 | 218 | ||
Allowance for credit losses to nonperforming loans | 250 | 249 | 258 | ||
Nonperforming loans at period-end | $ 696 | $ 686 | $ 710 | ||
Nonperforming assets at period-end | 707 | 700 | 727 | ||
Nonperforming loans to period-end portfolio loans | .65 % | .65 % | .66 % | ||
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets | .66 | .67 | .68 | ||
Trust assets | |||||
Assets under management | $ 64,244 | $ 61,053 | $ 57,602 | ||
Other data | |||||
Average full-time equivalent employees | 17,105 | 16,989 | 16,646 | ||
Branches | 943 | 945 | 946 | ||
Taxable-equivalent adjustment | $ 9 | $ 9 | $ 12 | ||
Financial Highlights (continued) | |||
(Dollars in millions, except per share amounts) | |||
Six months ended | |||
6/30/2025 | 6/30/2024 | ||
Summary of operations | |||
Net interest income (TE) | $ 2,255 | $ 1,785 | |
Noninterest income | 1,358 | 1,274 | |
Total revenue (TE) | 3,613 | 3,059 | |
Provision for credit losses | 256 | 201 | |
Noninterest expense | 2,285 | 2,222 | |
Income (loss) from continuing operations attributable to Key | 829 | 492 | |
Income (loss) from discontinued operations, net of taxes | 1 | 1 | |
Net income (loss) attributable to Key | 830 | 493 | |
Income (loss) from continuing operations attributable to Key common shareholders | 757 | 420 | |
Income (loss) from discontinued operations, net of taxes | 1 | 1 | |
Net income (loss) attributable to Key common shareholders | 758 | 421 | |
Per common share | |||
Income (loss) from continuing operations attributable to Key common shareholders | $ .69 | $ .45 | |
Income (loss) from discontinued operations, net of taxes | — | — | |
Net income (loss) attributable to Key common shareholders (a) | .69 | .45 | |
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution | .69 | .45 | |
Income (loss) from discontinued operations, net of taxes — assuming dilution | — | — | |
Net income (loss) attributable to Key common shareholders — assuming dilution (a) | .69 | .45 | |
Cash dividends paid | .41 | .41 | |
Performance ratios | |||
From continuing operations: | |||
Return on average total assets | .90 % | .53 % | |
Return on average common equity | 9.28 | 7.00 | |
Return on average tangible common equity (b) | 11.16 | 9.12 | |
Net interest margin (TE) | 2.62 | 2.03 | |
Cash efficiency ratio (b) | 63.0 | 72.1 | |
From consolidated operations: | |||
Return on average total assets | .90 % | .53 % | |
Return on average common equity | 9.29 | 7.02 | |
Return on average tangible common equity (b) | 11.18 | 9.14 | |
Net interest margin (TE) | 2.62 | 2.03 | |
Asset quality — from continuing operations | |||
Net loan charge-offs | $ 212 | $ 172 | |
Net loan charge-offs to average total loans | .41 % | .31 % | |
Other data | |||
Average full-time equivalent employees | 17,047 | 16,699 | |
Taxable-equivalent adjustment | 18 | 23 | |
(a) | Earnings per share may not foot due to rounding. |
(b) | The table entitled "GAAP to Non-GAAP Reconciliations" starting on page 14 of this supplement presents the computations of certain financial measures related to "tangible common equity" and "cash efficiency." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. |
(c) | Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits. |
(d) | June 30, 2025, ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision. |
GAAP to Non-GAAP Reconciliations
(Dollars in millions)
The table below presents certain non-GAAP financial measures related to "tangible common equity," "return on average tangible common equity," "pre-provision net revenue," "adjusted pre-provision net revenue," "cash efficiency ratio," "adjusted taxable-equivalent revenue," "noninterest expense adjusted for selected items," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."
The tangible common equity ratio and the return on average tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key's capital position without regard to the effects of intangible assets and preferred stock.
The table also shows the computation for pre-provision net revenue and adjusted pre-provision net revenue, which are not formally defined by GAAP. Management believes that eliminating the effects of the provision for credit losses makes it easier to analyze the results by presenting them on a more comparable basis. Further, management believes that adjusting pre-provision net revenue for significant or unusual items that management does not consider indicative of ongoing financial performance provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.
The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key's intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key's results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.
Noninterest expense adjusted for selected items is a non-GAAP measure in that it excludes significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or "adjusted net income") and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude significant or unusual items, net of tax, that management does not consider indicative of ongoing financial performance . Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
Three months ended | Six months ended | |||||
6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | ||
Tangible common equity to tangible assets at period-end | ||||||
Key shareholders' equity (GAAP) | $ 19,484 | $ 19,003 | $ 14,789 | |||
Less: Intangible assets | 2,770 | 2,774 | 2,793 | |||
Preferred Stock (a) | 2,446 | 2,446 | 2,446 | |||
Tangible common equity (non-GAAP) | $ 14,268 | $ 13,783 | $ 9,550 | |||
Total assets (GAAP) | $ 185,499 | $ 188,691 | $ 187,450 | |||
Less: Intangible assets | 2,770 | 2,774 | 2,793 | |||
Tangible assets (non-GAAP) | $ 182,729 | $ 185,917 | $ 184,657 | |||
Tangible common equity to tangible assets ratio (non-GAAP) | 7.81 % | 7.41 % | 5.17 % | |||
Average tangible common equity | ||||||
Average Key shareholders' equity (GAAP) | $ 19,268 | $ 18,632 | $ 14,474 | $ 18,952 | $ 14,561 | |
Less: Intangible assets (average) | 2,772 | 2,777 | 2,796 | 2,774 | 2,798 | |
Preferred stock (average) | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | |
Average tangible common equity (non-GAAP) | $ 13,996 | $ 13,355 | $ 9,178 | $ 13,678 | $ 9,263 | |
Return on average tangible common equity from continuing operations | ||||||
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) | $ 387 | $ 370 | $ 237 | $ 757 | $ 420 | |
Average tangible common equity (non-GAAP) | 13,996 | 13,355 | 9,178 | 13,678 | 9,263 | |
Return on average tangible common equity from continuing operations (non-GAAP) | 11.09 % | 11.24 % | 10.39 % | 11.16 % | 9.12 % | |
Return on average tangible common equity consolidated | ||||||
Net income (loss) attributable to Key common shareholders (GAAP) | $ 389 | $ 369 | $ 238 | $ 758 | $ 421 | |
Average tangible common equity (non-GAAP) | 13,996 | 13,355 | 9,178 | 13,678 | 9,263 | |
Return on average tangible common equity consolidated (non-GAAP) | 11.15 % | 11.21 % | 10.43 % | 11.18 % | 9.14 % | |
Pre-provision net revenue | ||||||
Net interest income (GAAP) | $ 1,141 | $ 1,096 | $ 887 | $ 2,237 | $ 1,762 | |
Plus: Taxable-equivalent adjustment | 9 | 9 | 12 | 18 | 23 | |
Noninterest income (GAAP) | 690 | 668 | 627 | 1,358 | 1,274 | |
Less: Noninterest expense (GAAP) | 1,154 | 1,131 | 1,079 | 2,285 | 2,222 | |
Pre-provision net revenue from continuing operations (non-GAAP) | $ 686 | $ 642 | $ 447 | $ 1,328 | $ 837 | |
Adjusted pre-provision net revenue | ||||||
Pre-provision net revenue from continuing operations (non-GAAP) | $ 686 | $ 642 | $ 447 | $ 1,328 | $ 837 | |
Plus: Selected items(b) | — | — | 5 | — | 34 | |
Adjusted pre-provision net revenue from continuing operations (non-GAAP) | $ 686 | $ 642 | $ 452 | $ 1,328 | $ 871 | |
GAAP to Non-GAAP Reconciliations (continued) | ||||||
(Dollars in millions) | ||||||
Three months ended | Six months ended | |||||
6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | ||
Cash efficiency ratio | ||||||
Noninterest expense (GAAP) | $ 1,154 | $ 1,131 | $ 1,079 | $ 2,285 | $ 2,222 | |
Less: Intangible asset amortization | 5 | 5 | 7 | 10 | 15 | |
Noninterest expense less intangible asset amortization (non-GAAP) | $ 1,149 | $ 1,126 | $ 1,072 | $ 2,275 | $ 2,207 | |
Net interest income (GAAP) | $ 1,141 | $ 1,096 | $ 887 | $ 2,237 | $ 1,762 | |
Plus: Taxable-equivalent adjustment | 9 | 9 | 12 | 18 | 23 | |
Net interest income TE (non-GAAP) | 1,150 | 1,105 | 899 | 2,255 | 1,785 | |
Noninterest income (GAAP) | 690 | 668 | 627 | 1,358 | 1,274 | |
Total taxable-equivalent revenue (non-GAAP) | $ 1,840 | $ 1,773 | $ 1,526 | $ 3,613 | $ 3,059 | |
Cash efficiency ratio (non-GAAP) | 62.4 % | 63.5 % | 70.2 % | 63.0 % | 72.1 % | |
Noninterest expense adjusted for selected items | ||||||
Noninterest expense (GAAP) | $ 1,154 | $ 1,131 | $ 1,079 | $ 2,285 | $ 2,222 | |
Plus: Selected items(b) | — | — | (5) | — | (34) | |
Noninterest expense adjusted for selected items (non-GAAP) | $ 1,154 | $ 1,131 | $ 1,074 | $ 2,285 | $ 2,188 | |
Adjusted income (loss) available from continuing operations attributable to | ||||||
Income (loss) from continuing operations attributable to Key common shareholders (GAAP) | $ 387 | $ 370 | $ 237 | $ 757 | $ 420 | |
Plus: Selected items (net of tax)(b) | — | — | 4 | — | 26 | |
Adjusted income (loss) available from continuing operations attributable to | $ 387 | $ 370 | $ 241 | $ 757 | $ 446 | |
Diluted earnings per common share (EPS) - adjusted | ||||||
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP) | $ .35 | $ .33 | $ .25 | $ .69 | $ .45 | |
Plus: EPS impact of selected items(b) | — | — | — | — | .02 | |
Diluted EPS from continuing operations attributable to Key common | $ .35 | $ .33 | $ .25 | $ .69 | $ .47 | |
(a) | Net of capital surplus. |
(b) | Additional detail provided in Selected Items table on page 24. |
GAAP = U.S. generally accepted accounting principles | |
Consolidated Balance Sheets | |||||
(Dollars in millions) | |||||
6/30/2025 | 3/31/2025 | 6/30/2024 | |||
Assets | |||||
Loans | $ 106,389 | $ 104,809 | $ 107,078 | ||
Loans held for sale | 530 | 811 | 517 | ||
Securities available for sale | 40,669 | 40,751 | 37,460 | ||
Held-to-maturity securities | 6,914 | 7,160 | 7,968 | ||
Trading account assets | 1,374 | 1,296 | 1,219 | ||
Short-term investments | 11,564 | 15,349 | 15,536 | ||
Other investments | 1,058 | 1,050 | 1,259 | ||
Total earning assets | 168,498 | 171,226 | 171,037 | ||
Allowance for loan and lease losses | (1,446) | (1,429) | (1,547) | ||
Cash and due from banks | 1,766 | 1,909 | 1,326 | ||
Premises and equipment | 599 | 602 | 631 | ||
Goodwill | 2,752 | 2,752 | 2,752 | ||
Other intangible assets | 18 | 22 | 41 | ||
Corporate-owned life insurance | 4,423 | 4,404 | 4,382 | ||
Accrued income and other assets | 8,654 | 8,958 | 8,532 | ||
Discontinued assets | 235 | 247 | 296 | ||
Total assets | $ 185,499 | $ 188,691 | $ 187,450 | ||
Liabilities | |||||
Deposits in domestic offices: | |||||
Interest-bearing deposits | $ 119,230 | $ 122,283 | $ 117,570 | ||
Noninterest-bearing deposits | 27,675 | 28,454 | 28,150 | ||
Total deposits | 146,905 | 150,737 | 145,720 | ||
Federal funds purchased and securities sold under repurchase agreements | 20 | 22 | 25 | ||
Bank notes and other short-term borrowings | 2,754 | 2,328 | 5,292 | ||
Accrued expense and other liabilities | 4,273 | 4,209 | 4,755 | ||
Long-term debt | 12,063 | 12,392 | 16,869 | ||
Total liabilities | 166,015 | 169,688 | 172,661 | ||
Equity | |||||
Preferred stock | 2,500 | 2,500 | 2,500 | ||
Common shares | 1,257 | 1,257 | 1,257 | ||
Capital surplus | 5,971 | 5,946 | 6,185 | ||
Retained earnings | 14,886 | 14,724 | 15,706 | ||
Treasury stock, at cost | (2,629) | (2,637) | (5,715) | ||
Accumulated other comprehensive income (loss) | (2,501) | (2,787) | (5,144) | ||
Key shareholders' equity | 19,484 | 19,003 | 14,789 | ||
Total liabilities and equity | $ 185,499 | $ 188,691 | $ 187,450 | ||
Common shares outstanding (000) | 1,112,453 | 1,111,986 | 943,200 | ||
Consolidated Statements of Income | ||||||||
(Dollars in millions, except per share amounts) | ||||||||
Three months ended | Six months ended | |||||||
6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | ||||
Interest income | ||||||||
Loans | $ 1,443 | $ 1,401 | $ 1,524 | $ 2,844 | $ 3,062 | |||
Loans held for sale | 11 | 14 | 8 | 25 | 22 | |||
Securities available for sale | 411 | 392 | 259 | 803 | 491 | |||
Held-to-maturity securities | 61 | 63 | 73 | 124 | 148 | |||
Trading account assets | 16 | 17 | 16 | 33 | 30 | |||
Short-term investments | 157 | 174 | 192 | 331 | 334 | |||
Other investments | 8 | 9 | 16 | 17 | 33 | |||
Total interest income | 2,107 | 2,070 | 2,088 | 4,177 | 4,120 | |||
Interest expense | ||||||||
Deposits | 730 | 753 | 817 | 1,483 | 1,599 | |||
Federal funds purchased and securities sold under repurchase agreements | 4 | 1 | 1 | 5 | 2 | |||
Bank notes and other short-term borrowings | 34 | 27 | 51 | 61 | 97 | |||
Long-term debt | 198 | 193 | 332 | 391 | 660 | |||
Total interest expense | 966 | 974 | 1,201 | 1,940 | 2,358 | |||
Net interest income | 1,141 | 1,096 | 887 | 2,237 | 1,762 | |||
Provision for credit losses | 138 | 118 | 100 | 256 | 201 | |||
Net interest income after provision for credit losses | 1,003 | 978 | 787 | 1,981 | 1,561 | |||
Noninterest income | ||||||||
Trust and investment services income | 146 | 139 | 139 | 285 | 275 | |||
Investment banking and debt placement fees | 178 | 175 | 126 | 353 | 296 | |||
Cards and payments income | 85 | 82 | 85 | 167 | 162 | |||
Service charges on deposit accounts | 73 | 69 | 66 | 142 | 129 | |||
Corporate services income | 76 | 65 | 68 | 141 | 137 | |||
Commercial mortgage servicing fees | 70 | 76 | 61 | 146 | 117 | |||
Corporate-owned life insurance income | 32 | 33 | 34 | 65 | 66 | |||
Consumer mortgage income | 15 | 13 | 16 | 28 | 30 | |||
Operating lease income and other leasing gains | 14 | 9 | 21 | 23 | 45 | |||
Other income | 1 | 7 | 21 | 8 | 30 | |||
Net securities gains (losses) | — | — | (10) | — | (13) | |||
Total noninterest income | 690 | 668 | 627 | 1,358 | 1,274 | |||
Noninterest expense | ||||||||
Personnel | 705 | 680 | 636 | 1,385 | 1,310 | |||
Net occupancy | 69 | 67 | 66 | 136 | 133 | |||
Computer processing | 107 | 107 | 101 | 214 | 203 | |||
Business services and professional fees | 48 | 40 | 37 | 88 | 78 | |||
Equipment | 21 | 20 | 20 | 41 | 40 | |||
Operating lease expense | 10 | 11 | 17 | 21 | 34 | |||
Marketing | 24 | 21 | 21 | 45 | 40 | |||
Other expense | 170 | 185 | 181 | 355 | 384 | |||
Total noninterest expense | 1,154 | 1,131 | 1,079 | 2,285 | 2,222 | |||
Income (loss) from continuing operations before income taxes | 539 | 515 | 335 | 1,054 | 613 | |||
Income taxes (benefit) | 116 | 109 | 62 | 225 | 121 | |||
Income (loss) from continuing operations | 423 | 406 | 273 | 829 | 492 | |||
Income (loss) from discontinued operations, net of taxes | 2 | (1) | 1 | 1 | 1 | |||
Net income (loss) | $ 425 | $ 405 | $ 274 | $ 830 | $ 493 | |||
Income (loss) from continuing operations attributable to Key common shareholders | $ 387 | $ 370 | $ 237 | $ 757 | $ 420 | |||
Net income (loss) attributable to Key common shareholders | 389 | 369 | 238 | 758 | 421 | |||
Per common share | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ .35 | $ .34 | $ .25 | $ .69 | $ .45 | |||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | — | |||
Net income (loss) attributable to Key common shareholders (a) | .35 | .34 | .25 | .69 | .45 | |||
Per common share — assuming dilution | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ .35 | $ .33 | $ .25 | $ .69 | $ .45 | |||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | — | |||
Net income (loss) attributable to Key common shareholders (a) | .35 | .33 | .25 | .69 | .45 | |||
Cash dividends declared per common share | $ .205 | $ .205 | $ .205 | $ .410 | $ .410 | |||
Weighted-average common shares outstanding (000) | 1,100,033 | 1,096,654 | 931,726 | 1,098,453 | 930,776 | |||
Effect of common share options and other stock awards(b) | 7,177 | 9,486 | 6,761 | 8,331 | 7,040 | |||
Weighted-average common shares and potential common shares outstanding (000) (c) | 1,107,210 | 1,106,140 | 938,487 | 1,106,784 | 937,816 | |||
(a) | Earnings per share may not foot due to rounding. |
(b) | For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share. |
(c) | Assumes conversion of common share options and other stock awards, as applicable. |
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations | ||||||||||||
(Dollars in millions) | ||||||||||||
Second Quarter 2025 | First Quarter 2025 | Second Quarter 2024 | ||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||
Balance | Interest (a) | Rate (a) | Balance | Interest (a) | Rate (a) | Balance | Interest (a) | Rate (a) | ||||
Assets | ||||||||||||
Loans: (b), (c) | ||||||||||||
Commercial and industrial (d) | $ 55,604 | $ 838 | 6.04 % | $ 53,746 | $ 800 | 6.04 % | $ 54,599 | $ 860 | 6.34 % | |||
Real estate — commercial mortgage | 13,311 | 200 | 6.02 | 13,061 | 192 | 5.96 | 14,287 | 217 | 6.10 | |||
Real estate — construction | 2,873 | 50 | 6.95 | 2,905 | 49 | 6.87 | 3,020 | 56 | 7.51 | |||
Commercial lease financing | 2,524 | 22 | 3.59 | 2,653 | 23 | 3.52 | 3,193 | 28 | 3.46 | |||
Total commercial loans | 74,312 | 1,110 | 5.99 | 72,365 | 1,064 | 5.96 | 75,099 | 1,161 | 6.22 | |||
Real estate — residential mortgage | 19,446 | 162 | 3.34 | 19,737 | 165 | 3.33 | 20,515 | 169 | 3.30 | |||
Home equity loans | 6,091 | 86 | 5.63 | 6,248 | 86 | 5.60 | 6,817 | 102 | 5.98 | |||
Other consumer loans | 4,946 | 63 | 5.09 | 5,087 | 63 | 5.01 | 5,597 | 70 | 5.00 | |||
Credit cards | 920 | 31 | 13.44 | 917 | 32 | 14.04 | 933 | 34 | 14.63 | |||
Total consumer loans | 31,403 | 342 | 4.36 | 31,989 | 346 | 4.35 | 33,862 | 375 | 4.44 | |||
Total loans | 105,715 | 1,452 | 5.51 | 104,354 | 1,410 | 5.47 | 108,961 | 1,536 | 5.66 | |||
Loans held for sale | 770 | 11 | 5.72 | 815 | 14 | 6.70 | 599 | 8 | 5.42 | |||
Securities available for sale (b), (e) | 40,714 | 411 | 3.76 | 39,321 | 392 | 3.70 | 36,764 | 259 | 2.42 | |||
Held-to-maturity securities (b) | 7,038 | 61 | 3.46 | 7,274 | 63 | 3.46 | 8,123 | 73 | 3.59 | |||
Trading account assets | 1,259 | 16 | 5.32 | 1,296 | 17 | 5.20 | 1,231 | 16 | 5.38 | |||
Short-term investments | 13,489 | 157 | 4.67 | 15,211 | 174 | 4.63 | 13,729 | 192 | 5.62 | |||
Other investments (e) | 1,015 | 8 | 3.41 | 935 | 9 | 3.73 | 1,234 | 16 | 5.19 | |||
Total earning assets | 170,000 | 2,116 | 4.90 | 169,206 | 2,079 | 4.86 | 170,641 | 2,100 | 4.77 | |||
Allowance for loan and lease losses | (1,424) | (1,401) | (1,534) | |||||||||
Accrued income and other assets | 18,224 | 18,285 | 17,476 | |||||||||
Discontinued assets | 239 | 254 | 305 | |||||||||
Total assets | $ 187,039 | $ 186,344 | $ 186,888 | |||||||||
Liabilities | ||||||||||||
Money market deposits | $ 42,586 | $ 276 | 2.60 % | $ 42,007 | $ 275 | 2.65 % | $ 39,364 | $ 290 | 2.97 % | |||
Demand deposits | 57,155 | 309 | 2.17 | 57,460 | 310 | 2.19 | 54,629 | 340 | 2.50 | |||
Savings deposits | 4,631 | 1 | .06 | 4,610 | 1 | .06 | 5,189 | 2 | .19 | |||
Time deposits | 15,601 | 144 | 3.70 | 16,625 | 167 | 4.09 | 16,019 | 185 | 4.64 | |||
Total interest-bearing deposits | 119,973 | 730 | 2.44 | 120,702 | 753 | 2.53 | 115,201 | 817 | 2.85 | |||
Federal funds purchased and securities sold under repurchase agreements | 415 | 4 | 4.28 | 100 | 1 | 3.94 | 124 | 1 | 4.76 | |||
Bank notes and other short-term borrowings | 3,288 | 34 | 4.27 | 2,273 | 27 | 4.74 | 3,617 | 51 | 5.57 | |||
Long-term debt (f) | 12,088 | 198 | 6.55 | 11,779 | 193 | 6.61 | 19,219 | 332 | 6.91 | |||
Total interest-bearing liabilities | 135,764 | 966 | 2.86 | 134,854 | 974 | 2.92 | 138,161 | 1,201 | 3.49 | |||
Noninterest-bearing deposits | 27,473 | 27,840 | 28,979 | |||||||||
Accrued expense and other liabilities | 4,295 | 4,764 | 4,969 | |||||||||
Discontinued liabilities (f) | 239 | 254 | 305 | |||||||||
Total liabilities | $ 167,771 | $ 167,712 | $ 172,414 | |||||||||
Equity | ||||||||||||
Total equity | $ 19,268 | $ 18,632 | $ 14,474 | |||||||||
Total liabilities and equity | $ 187,039 | $ 186,344 | $ 186,888 | |||||||||
Interest rate spread (TE) | 2.04 % | 1.94 % | 1.28 % | |||||||||
Net interest income (TE) and net interest margin (TE) | $ 1,150 | 2.66 % | $ 1,105 | 2.58 % | $ 899 | 2.04 % | ||||||
TE adjustment (b) | 9 | 9 | 12 | |||||||||
Net interest income, GAAP basis | $ 1,141 | $ 1,096 | $ 887 | |||||||||
(a) | Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology. |
(b) | Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024. |
(c) | For purposes of these computations, nonaccrual loans are included in average loan balances. |
(d) | Commercial and industrial average balances include $218 million, $213 million, and $218 million of assets from commercial credit cards for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. |
(e) | Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $43.8 billion, $42.7 billion, and $42.8 billion for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Yield based on the fair value of securities available for sale was 4.03%, 3.99%, and 2.82% for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. |
(f) | A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key's matched funds transfer pricing methodology to discontinued operations. |
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles. | |
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations | ||||||||
(Dollars in millions) | ||||||||
Six months ended June 30, 2025 | Six months ended June 30, 2024 | |||||||
Average | Yield/ | Average | Yield/ | |||||
Balance | Interest (a) | Rate (a) | Balance | Interest (a) | Rate (a) | |||
Assets | ||||||||
Loans: (b), (c) | ||||||||
Commercial and industrial (d) | $ 54,680 | $ 1,638 | 6.04 % | $ 54,909 | $ 1,714 | 6.28 % | ||
Real estate — commercial mortgage | 13,187 | 392 | 5.99 | 14,562 | 446 | 6.16 | ||
Real estate — construction | 2,889 | 99 | 6.91 | 3,030 | 113 | 7.51 | ||
Commercial lease financing | 2,588 | 46 | 3.55 | 3,269 | 55 | 3.34 | ||
Total commercial loans | 73,344 | 2,175 | 5.98 | 75,770 | 2,328 | 6.18 | ||
Real estate — residential mortgage | 19,591 | 327 | 3.34 | 20,664 | 340 | 3.30 | ||
Home equity loans | 6,169 | 172 | 5.62 | 6,921 | 206 | 5.98 | ||
Other consumer loans | 5,016 | 126 | 5.05 | 5,699 | 142 | 5.00 | ||
Credit cards | 919 | 62 | 13.74 | 943 | 69 | 14.78 | ||
Total consumer loans | 31,695 | 687 | 4.35 | 34,227 | 757 | 4.44 | ||
Total loans | 105,039 | 2,862 | 5.49 | 109,997 | 3,085 | 5.64 | ||
Loans held for sale | 792 | 25 | 6.23 | 744 | 22 | 5.86 | ||
Securities available for sale (b), (e) | 40,021 | 803 | 3.73 | 36,926 | 491 | 2.29 | ||
Held-to-maturity securities (b) | 7,156 | 124 | 3.46 | 8,273 | 148 | 3.58 | ||
Trading account assets | 1,277 | 33 | 5.26 | 1,171 | 30 | 5.30 | ||
Short-term investments | 14,345 | 331 | 4.65 | 11,986 | 334 | 5.61 | ||
Other investments (e) | 975 | 17 | 3.57 | 1,235 | 33 | 5.29 | ||
Total earning assets | 169,605 | 4,195 | 4.88 | 170,332 | 4,143 | 4.72 | ||
Allowance for loan and lease losses | (1,413) | (1,519) | ||||||
Accrued income and other assets | 18,254 | 17,412 | ||||||
Discontinued assets | 246 | 317 | ||||||
Total assets | $ 186,692 | $ 186,542 | ||||||
Liabilities | ||||||||
Money market deposits | $ 42,298 | $ 551 | 2.63 % | $ 38,512 | $ 554 | 2.89 % | ||
Other demand deposits | 57,307 | 619 | 2.18 | 55,383 | 697 | 2.53 | ||
Savings deposits | 4,620 | 2 | .06 | 5,221 | 3 | .13 | ||
Time deposits | 16,110 | 311 | 3.90 | 15,225 | 345 | 4.55 | ||
Total interest-bearing deposits | 120,335 | 1,483 | 2.49 | 114,341 | 1599 | 2.81 | ||
Federal funds purchased and securities sold under repurchase agreements | 258 | 5 | 4.22 | 115 | 2 | 4.42 | ||
Bank notes and other short-term borrowings | 2,784 | 61 | 4.47 | 3,471 | 97 | 5.60 | ||
Long-term debt (f) | 11,934 | 391 | 6.58 | 19,378 | 660 | 6.81 | ||
Total interest-bearing liabilities | 135,311 | 1,940 | 2.89 | 137,305 | 2,358 | 3.45 | ||
Noninterest-bearing deposits | 27,655 | 29,189 | ||||||
Accrued expense and other liabilities | 4,528 | 5,170 | ||||||
Discontinued liabilities (f) | 246 | 317 | ||||||
Total liabilities | $ 167,740 | $ 171,981 | ||||||
Equity | ||||||||
Total equity | 18,952 | 14,561 | ||||||
Total liabilities and equity | $ 186,692 | $ 186,542 | ||||||
Interest rate spread (TE) | 1.99 % | 1.27 % | ||||||
Net interest income (TE) and net interest margin (TE) | $ 2,255 | 2.62 % | $ 1,785 | 2.03 % | ||||
TE adjustment (b) | 18 | 23 | ||||||
Net interest income, GAAP basis | $ 2,237 | $ 1,762 | ||||||
(a) | Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology. |
(b) | Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the six months ended June 30, 2025, and June 30, 2024, respectively. |
(c) | For purposes of these computations, nonaccrual loans are included in average loan balances. |
(d) | Commercial and industrial average balances include $216 million and $214 million of assets from commercial credit cards for the six months ended June 30, 2025, and June 30, 2024, respectively. |
(e) | Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $43.2 billion and $42.8 billion for the six months ended June 30, 2025, and June 30, 2024, respectively. Yield based on the fair value of securities available for sale was 4.01% and 2.66% for the six months ended June 30, 2025, and June 30, 2024, respectively. |
(f) | A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key's matched funds transfer pricing methodology to discontinued operations. |
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles | |
Noninterest Expense | ||||||
(Dollars in millions) | ||||||
Three months ended | Six months ended | |||||
6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | ||
Personnel (a) | $ 705 | $ 680 | $ 636 | $ 1,385 | $ 1,310 | |
Net occupancy | 69 | 67 | 66 | 136 | 133 | |
Computer processing | 107 | 107 | 101 | 214 | 203 | |
Business services and professional fees | 48 | 40 | 37 | 88 | 78 | |
Equipment | 21 | 20 | 20 | 41 | 40 | |
Operating lease expense | 10 | 11 | 17 | 21 | 34 | |
Marketing | 24 | 21 | 21 | 45 | 40 | |
Other expense | 170 | 185 | 181 | 355 | 384 | |
Total noninterest expense | $ 1,154 | $ 1,131 | $ 1,079 | $ 2,285 | $ 2,222 | |
Average full-time equivalent employees (b) | 17,105 | 16,989 | 16,646 | 17,047 | 16,699 | |
(a) | Additional detail provided in Personnel Expense table below. |
(b) | The number of average full-time equivalent employees has not been adjusted for discontinued operations. |
Personnel Expense | ||||||
(Dollars in millions) | ||||||
Three months ended | Six months ended | |||||
6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | ||
Salaries and contract labor | $ 427 | $ 405 | $ 394 | $ 832 | $ 783 | |
Incentive and stock-based compensation | 168 | 158 | 143 | 326 | 302 | |
Employee benefits | 108 | 109 | 98 | 217 | 224 | |
Severance | 2 | 8 | 1 | 10 | 1 | |
Total personnel expense | $ 705 | $ 680 | $ 636 | $ 1,385 | $ 1,310 | |
Loan Composition | ||||||
(Dollars in millions) | ||||||
Change 6/30/2025 vs. | ||||||
6/30/2025 | 3/31/2025 | 6/30/2024 | 3/31/2025 | 6/30/2024 | ||
Commercial and industrial (a)(b) | $ 56,058 | $ 54,378 | $ 53,129 | 3.1 % | 5.5 % | |
Commercial real estate: | ||||||
Commercial mortgage | 13,862 | 13,239 | 14,218 | 4.7 | (2.5) | |
Construction | 2,830 | 2,929 | 3,077 | (3.4) | (8.0) | |
Total commercial real estate loans | 16,692 | 16,168 | 17,295 | 3.2 | (3.5) | |
Commercial lease financing (b) | 2,472 | 2,576 | 3,101 | (4.0) | (20.3) | |
Total commercial loans | 75,222 | 73,122 | 73,525 | 2.9 | 2.3 | |
Real estate — residential mortgage | 19,330 | 19,622 | 20,380 | (1.5) | (5.2) | |
Home equity loans | 6,023 | 6,154 | 6,729 | (2.1) | (10.5) | |
Other consumer loans | 4,881 | 5,000 | 5,514 | (2.4) | (11.5) | |
Credit cards | 933 | 911 | 930 | 2.4 | .3 | |
Total consumer loans | 31,167 | 31,687 | 33,553 | (1.6) | (7.1) | |
Total loans (c), (d) | $ 106,389 | $ 104,809 | $ 107,078 | 1.5 % | (.6) % | |
(a) | Loan balances include $220 million, $218 million, and $217 million of commercial credit card balances at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. |
(b) | Commercial and industrial includes receivables held as collateral for a secured borrowing of $192 million at March 31, 2025 and $285 million at June 30, 2024. Commercial lease financing includes receivables held as collateral for a secured borrowing of $2 million, $2 million, and $5 million at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Principal reductions are based on the cash payments received from these related receivables. |
(c) | Total loans exclude loans of $230 million at June 30, 2025, $243 million at March 31, 2025, and $291 million at June 30, 2024, related to the discontinued operations of the education lending business. |
(d) | Accrued interest of $465 million, $448 million, and $502 million at June 30, 2025, March 31, 2025, and June 30, 2024, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. |
Loans Held for Sale Composition | ||||||
(Dollars in millions) | ||||||
Change 6/30/2025 vs. | ||||||
6/30/2025 | 3/31/2025 | 6/30/2024 | 3/31/2025 | 6/30/2024 | ||
Commercial and industrial | $ 158 | $ 252 | $ 72 | (37.3) % | 119.4 % | |
Real estate — commercial mortgage | 290 | 473 | 354 | (38.7) | (18.1) | |
Real estate — residential mortgage | 82 | 86 | 91 | (4.7) | (9.9) | |
Total loans held for sale | $ 530 | $ 811 | $ 517 | (34.6) % | 2.5 % | |
Summary of Changes in Loans Held for Sale | |||||
(Dollars in millions) | |||||
2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | |
Balance at beginning of period | $ 811 | $ 797 | $ 1,058 | $ 517 | $ 228 |
New originations | 1,806 | 1,840 | 2,915 | 2,473 | 1,532 |
Transfers from (to) held to maturity, net | (71) | 6 | — | (16) | (1) |
Loan sales | (2,012) | (1,695) | (3,039) | (1,889) | (1,234) |
Loan draws (payments), net | (1) | (138) | (136) | (28) | (7) |
Valuation and other adjustments | (3) | 1 | (1) | 1 | (1) |
Balance at end of period | $ 530 | $ 811 | $ 797 | $ 1,058 | $ 517 |
Summary of Loan and Lease Loss Experience From Continuing Operations | ||||||
(Dollars in millions) | ||||||
Three months ended | Six months ended | |||||
6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | ||
Average loans outstanding | $ 105,715 | $ 104,354 | $ 108,961 | $ 105,039 | $ 109,997 | |
Allowance for loan and lease losses at the beginning of the period | $ 1,429 | $ 1,409 | $ 1,542 | $ 1,409 | $ 1,508 | |
Loans charged off: | ||||||
Commercial and industrial | 94 | 62 | 86 | 156 | 148 | |
Real estate — commercial mortgage | 6 | 36 | 10 | 42 | 15 | |
Real estate — construction | — | — | — | — | — | |
Total commercial real estate loans | 6 | 36 | 10 | 42 | 15 | |
Commercial lease financing | 2 | — | 6 | 2 | 6 | |
Total commercial loans | 102 | 98 | 102 | 200 | 169 | |
Real estate — residential mortgage | — | 1 | 1 | 1 | 2 | |
Home equity loans | — | 1 | — | 1 | 1 | |
Other consumer loans | 13 | 14 | 16 | 27 | 32 | |
Credit cards | 12 | 12 | 12 | 24 | 24 | |
Total consumer loans | 25 | 28 | 29 | 53 | 59 | |
Total loans charged off | 127 | 126 | 131 | 253 | 228 | |
Recoveries: | ||||||
Commercial and industrial | 19 | 10 | 31 | 29 | 39 | |
Real estate — commercial mortgage | 1 | — | 1 | 1 | 1 | |
Real estate — construction | — | — | — | — | — | |
Total commercial real estate loans | 1 | — | 1 | 1 | 1 | |
Commercial lease financing | — | — | 3 | — | 5 | |
Total commercial loans | 20 | 10 | 35 | 30 | 45 | |
Real estate — residential mortgage | 1 | 1 | 1 | 2 | 3 | |
Home equity loans | 1 | 1 | — | 2 | 1 | |
Other consumer loans | 2 | 2 | 2 | 4 | 4 | |
Credit cards | 1 | 2 | 2 | 3 | 3 | |
Total consumer loans | 5 | 6 | 5 | 11 | 11 | |
Total recoveries | 25 | 16 | 40 | 41 | 56 | |
Net loan charge-offs | (102) | (110) | (91) | (212) | (172) | |
Provision (credit) for loan and lease losses | 119 | 130 | 96 | 249 | 211 | |
Allowance for loan and lease losses at end of period | $ 1,446 | $ 1,429 | $ 1,547 | $ 1,446 | $ 1,547 | |
Liability for credit losses on lending-related commitments at beginning of period | $ 278 | $ 290 | $ 281 | $ 290 | $ 296 | |
Provision (credit) for losses on lending-related commitments | 19 | (12) | 4 | 7 | (10) | |
Other | — | — | 1 | — | — | |
Liability for credit losses on lending-related commitments at end of period (a) | $ 297 | $ 278 | $ 286 | $ 297 | $ 286 | |
Total allowance for credit losses at end of period | $ 1,743 | $ 1,707 | $ 1,833 | $ 1,743 | $ 1,833 | |
Net loan charge-offs to average total loans | .39 % | .43 % | .34 % | .41 % | .31 % | |
Allowance for loan and lease losses to period-end loans | 1.36 | 1.36 | 1.44 | 1.36 | 1.44 | |
Allowance for credit losses to period-end loans | 1.64 | 1.63 | 1.71 | 1.64 | 1.71 | |
Allowance for loan and lease losses to nonperforming loans | 208 | 208 | 218 | 208 | 218 | |
Allowance for credit losses to nonperforming loans | 250 | 249 | 258 | 250 | 258 | |
Discontinued operations — education lending business: | ||||||
Loans charged off | $ 1 | $ 1 | $ 1 | $ 1 | $ 2 | |
Recoveries | — | — | 1 | — | 1 | |
Net loan charge-offs | $ (1) | $ (1) | $ — | $ (1) | $ (1) | |
(a) | Included in "Accrued expense and other liabilities" on the balance sheet. |
Asset Quality Statistics From Continuing Operations | |||||
(Dollars in millions) | |||||
2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | |
Net loan charge-offs | $ 102 | $ 110 | $ 114 | $ 154 | $ 91 |
Net loan charge-offs to average total loans | .39 % | .43 % | .43 % | .58 % | .34 % |
Allowance for loan and lease losses | $ 1,446 | $ 1,429 | $ 1,409 | $ 1,494 | $ 1,547 |
Allowance for credit losses (a) | 1,743 | 1,707 | 1,699 | 1,774 | 1,833 |
Allowance for loan and lease losses to period-end loans | 1.36 % | 1.36 % | 1.35 % | 1.42 % | 1.44 % |
Allowance for credit losses to period-end loans | 1.64 | 1.63 | 1.63 | 1.68 | 1.71 |
Allowance for loan and lease losses to nonperforming loans | 208 | 208 | 186 | 205 | 218 |
Allowance for credit losses to nonperforming loans | 250 | 249 | 224 | 244 | 258 |
Nonperforming loans at period end | $ 696 | $ 686 | $ 758 | $ 728 | $ 710 |
Nonperforming assets at period end | 707 | 700 | 772 | 741 | 727 |
Nonperforming loans to period-end portfolio loans | .65 % | .65 % | .73 % | .69 % | .66 % |
Nonperforming assets to period-end portfolio loans plus OREO and other | .66 | .67 | .74 | .70 | .68 |
(a) | Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments. |
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations | |||||
(Dollars in millions) | |||||
6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | |
Commercial and industrial | $ 280 | $ 288 | $ 322 | $ 365 | $ 358 |
Real estate — commercial mortgage | 226 | 206 | 243 | 176 | 173 |
Real estate — construction | — | — | — | — | — |
Total commercial real estate loans | 226 | 206 | 243 | 176 | 173 |
Commercial lease financing | — | — | — | — | 1 |
Total commercial loans | 506 | 494 | 565 | 541 | 532 |
Real estate — residential mortgage | 95 | 94 | 92 | 87 | 77 |
Home equity loans | 84 | 87 | 89 | 90 | 91 |
Other Consumer loans | 4 | 4 | 5 | 4 | 4 |
Credit cards | 7 | 7 | 7 | 6 | 6 |
Total consumer loans | 190 | 192 | 193 | 187 | 178 |
Total nonperforming loans (a) | 696 | 686 | 758 | 728 | 710 |
OREO | 11 | 14 | 14 | 13 | 17 |
Total nonperforming assets | $ 707 | $ 700 | $ 772 | $ 741 | $ 727 |
Accruing loans past due 90 days or more | $ 74 | $ 86 | $ 90 | $ 166 | $ 137 |
Accruing loans past due 30 through 89 days | 266 | 281 | 206 | 184 | 282 |
Nonperforming assets from discontinued operations — education lending business | 2 | 1 | 2 | 2 | 3 |
Nonperforming loans to period-end portfolio loans | .65 % | .65 % | .73 % | .69 % | .66 % |
Nonperforming assets to period-end portfolio loans plus OREO and other | .66 | .67 | .74 | .70 | .68 |
Summary of Changes in Nonperforming Loans From Continuing Operations | |||||
(Dollars in millions) | |||||
2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | |
Balance at beginning of period | $ 686 | $ 758 | $ 728 | $ 710 | $ 658 |
Loans placed on nonaccrual status | 233 | 170 | 309 | 271 | 317 |
Charge-offs | (127) | (126) | (131) | (167) | (131) |
Loans sold | — | — | (13) | (32) | (22) |
Payments | (74) | (57) | (111) | (37) | (76) |
Transfers to OREO | (1) | (2) | (2) | (1) | (1) |
Loans returned to accrual status | (21) | (57) | (22) | (16) | (35) |
Balance at end of period | $ 696 | $ 686 | $ 758 | $ 728 | $ 710 |
Line of Business Results | ||||||||
(Dollars in millions) | ||||||||
Change 2Q25 vs. | ||||||||
2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1Q25 | 2Q24 | ||
Consumer Bank | ||||||||
Summary of operations | ||||||||
Total revenue (TE) | $ 912 | $ 871 | $ 865 | $ 800 | $ 758 | 4.7 % | 20.3 % | |
Provision for credit losses | 55 | 43 | 43 | 52 | 33 | 27.9 | 66.7 | |
Noninterest expense | 696 | 675 | 713 | 649 | 648 | 3.1 | 7.4 | |
Net income (loss) attributable to Key | 122 | 116 | 83 | 75 | 59 | 5.2 | 106.8 | |
Average loans and leases | 36,137 | 36,819 | 37,567 | 38,332 | 39,174 | (1.9) | (7.8) | |
Average deposits | 88,002 | 88,306 | 87,476 | 86,431 | 85,397 | (.3) | 3.1 | |
Net loan charge-offs | 40 | 52 | 63 | 54 | 45 | (23.1) | (11.1) | |
Net loan charge-offs to average total loans | .44 % | .57 % | .67 % | .56 % | .46 % | (22.8) | (4.3) | |
Nonperforming assets at period end | $ 196 | $ 201 | $ 201 | $ 195 | $ 190 | (2.5) | 3.2 | |
Return on average allocated equity | 16.20 % | 15.15 % | 10.24 % | 9.01 % | 6.98 % | 6.9 | 132.1 | |
Commercial Bank | ||||||||
Summary of operations | ||||||||
Total revenue (TE) | $ 974 | $ 942 | $ 1,001 | $ 866 | $ 768 | 3.4 % | 26.8 % | |
Provision for credit losses | 84 | 75 | (3) | 41 | 87 | 12.0 | (3.4) | |
Noninterest expense | 449 | 462 | 515 | 444 | 431 | (2.8) | 4.2 | |
Net income (loss) attributable to Key | 349 | 321 | 381 | 299 | 206 | 8.7 | 69.4 | |
Average loans and leases | 69,087 | 67,056 | 66,691 | 67,452 | 69,248 | 3.0 | (.2) | |
Average loans held for sale | 707 | 754 | 1,247 | 998 | 522 | (6.2) | 35.4 | |
Average deposits | 55,886 | 57,436 | 59,687 | 58,696 | 57,360 | (2.7) | (2.6) | |
Net loan charge-offs | 62 | 57 | 52 | 99 | 64 | 8.8 | (3.1) | |
Net loan charge-offs to average total loans | .36 % | .34 % | .31 % | .58 % | .37 % | 5.9 | (2.7) | |
Nonperforming assets at period end | $ 511 | $ 499 | $ 571 | $ 546 | $ 537 | 2.4 | (4.8) | |
Return on average allocated equity | 14.45 % | 13.77 % | 15.58 % | 11.94 % | 8.27 % | 4.9 | 74.7 | |
TE = Taxable Equivalent; N/M = Not Meaningful |
Selected Items Impact on Earnings | ||||
(Dollars in millions, except per share amounts) | ||||
Pretax(a) | After-tax at marginal rate(a) | |||
Quarter to date results | Amount | Net Income | EPS(c)(e) | |
Three months ended June 30, 2025 | ||||
No items | $ — | $ — | $ — | |
Three months ended March 31, 2025 | ||||
No items | — | — | — | |
Three months ended December 31, 2024 | ||||
Loss on sale of securities(b) | (915) | (657) | (0.66) | |
Scotiabank investment agreement valuation (other income) | (3) | (2) | — | |
FDIC special assessment (other expense)(d) | 3 | 2 | — | |
Three months ended September 30, 2024 | ||||
Loss on sale of securities(b) | (918) | (737) | (0.77) | |
FDIC special assessment (other expense)(d) | 6 | 5 | — | |
Three months ended June 30, 2024 | ||||
FDIC special assessment (other expense)(d) | (5) | (4) | — | |
Three months ended March 31, 2024 | ||||
FDIC special assessment (other expense)(d) | (29) | (22) | (0.02) | |
Year to date results | ||||
Six months ended June 30, 2025 | ||||
No items | $ — | $ — | $ — | |
Six months ended June 30, 2024 | ||||
FDIC special assessment (other expense)(d) | (34) | (26) | (0.02) | |
(a) | Favorable (unfavorable) impact. |
(b) | After-tax loss on sale of securities for the three months ended September 30, 2024 adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments recorded in the fourth quarter of 2024. |
(c) | Impact to EPS reflected on a fully diluted basis. |
(d) | In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC's deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. Amounts reflected for the three-months ended March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC. |
(e) | Earnings per share may not foot due to rounding. |
SOURCE KeyCorp
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