10-Q · May 5, 2026
KeyCorp reported strong Q1 2026 results with a revenue increase to $1.953 billion from $1.773 billion in Q1 2025, reflecting a 10.2% year-over-year growth. Earnings Per Share (EPS) rose to $0.44 compared to $0.33 in Q1…
Earnings analysis · 10-Q
KEY earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
KeyCorp delivered stronger year-over-year results, with taxable-equivalent revenue up 6.7% to $1.964 billion and diluted EPS up $0.09 to $0.44, although revenue was only 0.6% above 1Q26 and EPS was flat sequentially.…
Read full summary
KeyCorp delivered stronger year-over-year results, with taxable-equivalent revenue up 6.7% to $1.964 billion and diluted EPS up $0.09 to $0.44, although revenue was only 0.6% above 1Q26 and EPS was flat sequentially. Consumer and Commercial Bank revenue both grew, supported by a $109 million increase in net interest income, but personnel expense rose $81 million year over year to $786 million. Balance-sheet growth was healthy, with deposits up $4.376 billion and loans up $3.889 billion from year-end, while credit quality is the principal offset: nonperforming loans reached $809 million and charge-offs increased to $115 million.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.44
What stood out
-
Revenue expanded 6.7% year over year
Taxable-equivalent revenue was $1.964 billion, up $124 million (6.7%) from $1.840 billion a year earlier and $11 million (0.6%) from $1.953 billion in 1Q26. Net interest income rose $109 million year over year to $1.250 billion, while noninterest income increased $16 million to $706 million.
-
EPS increased 26% year over year
Diluted EPS was $0.44, up $0.09 from $0.35 in 2Q25 and flat versus $0.44 in 1Q26. Net income attributable to common shareholders increased $84 million year over year to $473 million.
-
Consumer and Commercial Bank revenue grew
Both core business segments grew: Consumer Bank taxable-equivalent revenue increased $44 million to $1.010 billion, and Commercial Bank revenue increased $34 million to $1.108 billion. Consumer Bank net income rose $38 million to $203 million, while Commercial Bank net income was unchanged at $423 million.
-
Year-over-year pre-provision profitability improved
Pre-provision net revenue was $747 million, up $61 million from $686 million in 2Q25. The implied taxable-equivalent PPNR margin improved to 38.0% from 37.3% a year ago, though it declined from 39.5% in 1Q26 ($772 million on $1.953 billion of revenue).
-
Deposit growth funded strong loan expansion
Deposits increased $4.376 billion from year-end to $153.089 billion and loans increased $3.889 billion to $110.430 billion. The loan-to-deposit ratio was 73% at June 30, 2026, while available contingent liquidity remained sizable at $94.1 billion.
-
Capital return accelerated via buybacks
Key repurchased $341 million, or approximately 16 million shares, during 2Q26 and paid a $0.205 quarterly common dividend. The Board authorized a new $3.0 billion repurchase program in May, replacing the prior $1.0 billion authorization.
What to watch
-
Nonperforming loans rose sharply
Nonperforming loans increased $194 million sequentially to $809 million and $194 million from year-end levels of $615 million; nonperforming assets rose $191 million from December 31, 2025 to $818 million. Management attributed the increase to select commercial-and-industrial and multifamily-real-estate exposures.
-
Credit-loss rate and reserve coverage worsened
Net loan charge-offs were $115 million, up $13 million from $102 million in 2Q25, and the charge-off ratio increased to 0.42% from 0.39%. The allowance for loan and lease losses covered 178.6% of nonperforming loans, down from 207.8% a year earlier.
-
Capital ratios declined amid buybacks and OCI losses
Total equity declined $583 million from $20.381 billion at December 31, 2025 to $19.798 billion, while tangible common equity to tangible assets fell to 7.7% from 8.4%. The decline included a $394 million six-month other-comprehensive loss and $727 million of common-share repurchases.
-
No discrete Item 1A update; uncertainty elevated
The filing does not identify a new or revised standalone Item 1A risk factor; it refers investors to the 2025 Form 10-K risk factors on pages 25-43. Nevertheless, management added qualitative reserves for geopolitical tensions and energy-price-volatility downside risk, lifting continuing-operations ALLL by $18 million from year-end to $1.445 billion.
Management's outlook
The 10-Q provides no company revenue or EPS guidance. Management's credit-loss baseline uses Moody's May 2026 Consensus assumptions of 2.0% U.S. GDP growth in both 2026 and 2027, unemployment near 4.5% through 2026, CPI near 3%, and a flat federal-funds rate over the next year; these are economic assumptions, not KeyCorp guidance.
Earlier filings 4
10-K · February 23, 2026
KeyCorp returned to strong profitability in 2025 with net income of $1,829 million (vs. a loss of $161 million in 2024) and diluted earnings per share from continuing operations of $1.52 in 2025 (vs. $(0.32) in 2024).…
10-Q · November 4, 2025
KeyCorp reported net income from continuing operations of $454 million, or diluted EPS of $0.41, for Q3 2025 and highlights stronger fee businesses and record Assets Under Management of $67.9 billion (up 11% YoY).…
10-K · February 21, 2025
KeyCorp reported a net loss of $161 million for 2024 driven by net securities losses of $1,856 million, while core net interest income remained resilient (net interest income $3,765 million; net interest income after…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.