KeyCorp Reports Strong Financial Growth

By Philip Seaworth • Sunday, September 28 12:06 • Permanent Link

KeyCorp, a regional bank with a national digital bank reach, has reported its financial and operational performance for the first half of 2025, revealing several key metrics that highlight the company's growth and trajectory.

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

The bank's common equity tier 1 also showed significant improvement, rising by approximately 120 basis points year-over-year to 11.7%. Additionally, the net interest income demonstrated a 26% increase year-over-year, reaching $2.255 billion for the first half of 2025.

From a profitability standpoint, KeyCorp reported a 47% year-over-year growth in diluted earnings per share, reaching $0.69 for the first half of 2025. The return on assets increased by 37 basis points, reaching 0.90%, while the return on tangible common equity rose by 204 basis points to 11.2%.

The bank's noninterest expense also saw a moderate 4% increase year-over-year, reaching $2.285 billion for the first half of 2025, indicating disciplined expense management while investing for future growth.

In terms of strategic initiatives, KeyCorp demonstrated an upward trend in its investment banking and debt placement fees, which reached over $688 million in the first half of 2025, representing a 19% increase. Additionally, the bank reported a significant growth trajectory in its wealth management segment, with assets under management reaching $64 billion, marking a 9% compound annual growth rate.

Furthermore, the bank highlighted its strong foundation, sticky and granular client deposit base, and risk management excellence as core strengths that position it for future growth. KeyCorp also emphasized its differentiated fee-based businesses, including investment banking, wealth management, and commercial payments, as growth drivers, with noninterest income contributing 32% to revenue, outperforming its peers.

The market has reacted to these announcements by moving the company's shares 0.42% to a price of $18.89. Check out the company's full 8-K submission here.

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