KEYCORP /NEW/ (KEY) Company Report

2025 results: PPNR grew 44%, NII rose 23%, fee income increased 7.5%, and commercial client count expanded 4%, while investment banking delivered its second-best year.
Loan and investment banking backlog: Total loan backlogs up 20%, middle market up 50%, and investment banking up mid-single digits, with $9 billion in new commitments in 2025.
Banker hiring and productivity: Key hired 10% more bankers across core fee businesses in 2025, and 93% of new payments and middle market hires closed deals within three months.
Capital return and targets: Aiming for 15% ROTCE by 12/31/2027 (assuming 10.3% CET1), with a long-term 16%–19% ROTCE goal and $300 million quarterly share buybacks.

Feb 10, 2026, 1:50 PM

Transcript

KeyCorp outlines 2025 results and 2026 outlook at BofA conference

KEY

Guidance Update

Share Buyback

New Projects/Investments

2025 performance: Pre-provision, pre-tax profit and revenue (PP&R) grew 44%, net interest income (NII) rose 23%, fees increased 7.5%, and commercial client count was up 4% year-over-year.
Consumer strength: Non-interest-bearing deposits carry 25% more cash versus pre-pandemic levels and transaction volumes (Zelle, ACH, cards) are up 5%.
Early 2026 momentum: From year-end to January, total loans grew by $600 million and C&I loans by $900 million, with commercial real estate deals picking up as 10-year Treasury yields settled around 4.2%–4.4%.
Technology investments: KeyCorp’s tech spend has increased from $800 million in 2024 to $900 million in 2025 and is budgeted at $1 billion in 2026, funding full cloud migration, AI-driven client onboarding, underwriting platforms, and AML/KYC enhancements.
Capital targets & buybacks: Aiming for 15% ROTCE by December 31, 2027 at a CET1 ratio of 9.5–10%, with $300 million in quarterly share repurchases and a long-term ROTCE goal of 16%–19%.

Feb 10, 2026, 1:50 PM

Transcript

KeyCorp discusses 2025 results and 2026 outlook at BoA Financial Services Conference

KEY

Guidance Update

KeyCorp delivered 44% growth in PP&R, 23% NII growth and 7.5% fee growth in 2025, with investment banking posting its second-best year despite uneven M&A activity.
Entering 2026, loan backlogs are at record levels: overall up 20%, middle market up 50%, and investment bank up mid-single digits, supported by $9 billion of new commitments in 2025.
Early-year momentum includes $600 million of total loan growth and $900 million in C&I loans from year-end 2025 to January, with 60% of clients expecting CapEx benefits and a pickup in real-estate transactions as rates stabilize.
Net interest income is guided to grow 8–10%, driven by the annual roll-off of $17 billion in low-yielding assets, loan growth and a deposit beta in the low-50% range on rate declines.
Technology investment will rise to $1 billion in 2026, focused on cloud-based core systems, AI integration (e.g., commercial onboarding and AML/KYC) and process re-engineering to sustain operating leverage.

Feb 10, 2026, 1:50 PM

Transcript

KeyCorp details commercial banking performance and 2026 guidance at UBS Conference

KEY

Guidance Update

New Projects/Investments

In 2025, KeyCorp’s commercial bank delivered $2.1 billion in revenue (≈1/3 of total) and ≈40% of Key’s deposits, with middle-market C&I loans up 9%, client count up 4%, and pipelines up 50%, while credit quality remained strong.
Commercial payment fees grew 9% in 2025 (8% CAGR over six years); KeyCorp targets high-single-digit to low-double-digit fee growth, driven by payment primacy, product simplification, fintech partnerships, and embedded banking.
For 2026, management guides 5–6% C&I loan growth, aiming to outperform the 3–5% market forecast, supported by strong pipelines, M&A financing activity, and addition of roughly 10% more middle-market bankers.
Strategic priorities include expanding banker density in core and select new markets (including micro-markets), executing a digital platform refresh, and scaling embedded banking through APIs and fintech collaborations.

Feb 9, 2026, 8:30 PM

Transcript

KeyCorp details commercial banking growth and 2026 strategy

KEY

Guidance Update

Hiring

New Projects/Investments

$2.1 billion of revenue from the commercial bank in 2025 (≈30% of total) and 40% of Key’s deposits.
Middle-market segment spans 30 markets with 5,000 clients, targeting 200,000 companies, and delivers ROE in the high teens to low twenties.
Commercial payments fees have grown 9% CAGR over five years; 80% of balances in operating deposits and a 70% deposit beta, outperforming peers.
Embedded banking business doubled in 2025; aiming to double again in 2026 by integrating API-driven fintech partnerships.
2026 outlook includes 5–6% commercial loan growth guidance, ~10% banker headcount growth, and ongoing digital and product investments.

Feb 9, 2026, 8:30 PM

Transcript

KeyCorp outlines commercial banking strategy at UBS Financial Services Conference 2026

KEY

Guidance Update

Hiring

Revenue Acceleration/Inflection

In 2025, Key’s commercial bank generated $2.1 billion of revenue (≈1/3 of total) and accounted for ~40% of Key’s deposits, driven by middle-market lending and commercial payments.
Middle-market C&I loan balances grew 9% y/y, with client count up 4% and a loan pipeline >50% larger vs. last year; credit quality remains strong, with net charge-offs and NPLs at the low end of targets.
Commercial payments fees grew 9% in 2025 (8% CAGR over six years); Key expects high single-digit to low double-digit fee growth, supported by product simplification, fintech partnerships, and embedded banking.
For 2026, Key targets 5–6% C&I loan growth and aims to outperform peers, while planning to increase its banker headcount ~10%, focusing on density in existing markets and selective expansion.

Feb 9, 2026, 8:30 PM

Transcript

KeyCorp Spotlights Commercial Banking and Payments Growth at UBS Conference

KEY

Guidance Update

New Projects/Investments

KeyCorp’s Commercial Bank generated $2.1 B in Commercial Payments & Middle Market revenue and held $58 B in average commercial deposits in 2025, achieving 17–20% growth & returns and 9% average ROE (FY2022–FY2025).
The franchise serves ~5,000 middle market clients across 30 markets (firms with $10 M–$1 B revenue), with 98% of deposits linked to operating accounts.
Gross payments fees benefit from a broad platform: embedded banking revenue and fees grew 2× in 2025, and 90% of middle market clients now use payments services.
Strategic targets include ~10% growth in banker headcount, high single- to low double-digit growth in commercial payments fees, and double-digit improvements in banker productivity and cost to serve.

Feb 9, 2026, 8:30 PM

Presentation

KeyCorp outlines Commercial Bank performance and strategy at UBS conference

KEY

Guidance Update

KeyCorp reviewed its 2025 Commercial Bank results, reporting $58 billion in commercial deposits, $2.1 billion in payments and middle market revenue, and a 17–20% five-year CAGR in commercial payments fees.
The bank serves ~5,000 middle-market clients across 30 markets, targeting a 3–4% annual growth in North America payments and addressing a market of over 200,000 U.S. middle-market businesses.
Strategic priorities include growing core operating deposits, doubling embedded banking revenue, enhancing digital platforms with AI and automation, and expanding the banker network in top MSAs.
Presentation slides (Exhibit 99.1) are posted on KeyCorp’s IR website, with a live webcast and on-demand recording available.

Feb 9, 2026, 1:00 PM

8-K

KeyCorp reports Q4 2025 results

KEY

Earnings

Guidance Update

Share Buyback

Q4 EPS was $0.43, or $0.41 adjusted, up 8% YoY; revenue (taxable equivalent) totaled $2,005 MM (+12% YoY), with net interest income of $1,223 MM (+15% YoY) and NIM up 7 bps QoQ to 2.82%.
Common Equity Tier 1 ratio stood at 11.7%, above its 9.5–10% target, with a marked CET1 ratio of 10.3% flat QoQ.
Repurchased $200 MM of common stock in Q4, ~2× its initial target, and plans $1.2 Bn of share buybacks in 2026.
FY2026 guidance calls for revenue up ~7%, net interest income up 8–10%, and an exit NIM of 3.00–3.05%.

Jan 20, 2026, 1:00 PM

Presentation

KeyCorp reports Q4 2025 results

KEY

Earnings

Guidance Update

Share Buyback

EPS of $0.43, revenue over $2 billion (+12% YoY adj) and expenses +2%; NII up 15% YoY, with asset quality improving (net charge-offs 39 bps)
Full-year revenue +16% YoY; NII +23%, fee income +7.5% vs. 2024; expenses +4.6% delivering ~1,200 bps of operating leverage and net charge-offs at 41 bps
Marked CET1 ratio at 10.3% (11.7% reported); repurchased $200 million of stock at $18/share in Q4 and plans ≥$300 million in Q1 2026 and ≥$1.2 billion for 2026
2026 guidance: revenue +7%; NII +8–10%; non-interest income +3–4% (or +5–6% adj); expenses +3–4% implying ~300–400 bps operating leverage; avg loans +1–2%; net charge-offs 40–45 bps
Strategic priorities include record AUM of $70 billion, strong investment banking pipelines, $1 billion in tech investment, and board nominees Tony DeSpirito & Chris Henson