KeyCorp Reports Strong Financial Growth

By Hao Liu • Saturday, September 27 06:06 • Permanent Link

In the press release, KeyCorp provided a detailed overview of its financial performance and strategic initiatives. The company highlighted several key metrics that demonstrate its progress and future outlook.

In terms of financial performance, KeyCorp reported a 7% year-over-year growth in noninterest income, reaching $64 billion in assets under management. Additionally, commercial loan growth increased by 5% year-to-date, and client deposits and net new relationship household growth saw a 2% increase year-over-year.

The company also emphasized its strengthened balance sheet and risk management excellence, with a 11.7% common equity tier 1 ratio, marking an increase of approximately 120 basis points year-over-year. Furthermore, KeyCorp saw improvements in its risk management metrics, with nonperforming assets and loans decreasing by 8 basis points versus the previous period.

In terms of net interest income (NII), KeyCorp experienced a 26% increase in NII, reaching $2.255 billion for the first half of 2025. The company also achieved a 27% increase in provision for credit losses, which totaled $256 million for the same period.

KeyCorp's return on assets stood at 0.90%, representing an increase of 37 basis points year-over-year. The return on tangible common equity was reported at 11.2%, demonstrating a 204 basis point improvement compared to the previous period. The cash efficiency ratio also improved, declining by 910 basis points to 63.0%.

Looking ahead, KeyCorp highlighted its planned investments, including a planned 10% increase in front-line producers and a $100 million increase in technology investments aimed at driving future growth and innovation.

The press release also detailed the company's focus on diversified fee businesses, with noninterest income as a percentage of average assets increasing from 0.81% to 1.69% over the years. Furthermore, KeyCorp's investment banking and debt placement fees demonstrated a positive growth trajectory, reaching approximately $688 million in 2024.

The market has reacted to these announcements by moving the company's shares 0.59% to a price of $18.9214. For more information, read the company's full 8-K submission here.

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