KEY earnings analysis
What we found in KEY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.44
- Segment
- Consumer Bank taxable-equivalent revenue: $1.010 billion, up $44 million year over year from $966 million.
- Segment
- Commercial Bank taxable-equivalent revenue: $1.108 billion, up $34 million year over year from $1.074 billion.
- Segment
- Other taxable-equivalent revenue: negative $154 million, improved $46 million from negative $200 million.
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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