KeyCorp's Strong Financial Performance and Growth Trajectory

By Greg Peters • Monday, September 29 06:06 • Permanent Link

KeyCorp, a regional bank with a national reach and scale, recently announced its progress and path forward during the investor meetings held in Europe in September 2025. The company highlighted several key metrics that demonstrate its strong foundation and strategic positioning for future growth.

In terms of financial performance, KeyCorp reported an 18% year-over-year increase in revenue in the first half of 2025, reaching $3.613 billion. Net interest income also saw a significant rise of 26% year-over-year, totaling $2.255 billion. Additionally, the company achieved a 7% growth in noninterest income, reaching $1.358 billion in the same period.

The bank's return on assets also improved by 37 basis points, reaching 0.90% in the first half of 2025, compared to the previous year. Moreover, the return on tangible common equity increased by 204 basis points, reaching 11.2%.

KeyCorp also demonstrated a strong balance sheet and risk management excellence. Notably, the nonperforming assets (NPAs) to loans and other real estate owned (OREO) ratio decreased by 8 basis points to 66 basis points, while the net charge-offs (NCOs) to average loans ratio decreased by 41 basis points to 41 basis points.

Furthermore, the company's common equity tier 1 capital saw a significant year-over-year increase, rising by approximately 120 basis points to 11.7%. The marked common equity tier 1 also improved, up by approximately 270 basis points to 10.0%.

In terms of business growth, KeyCorp reported a 2% year-over-year increase in client deposits in the first half of 2025, despite a reduction in rates paid. Additionally, the bank's loan-to-deposit ratio stood at 73%, indicating proactive deposit beta management supported by relationship-based deposits.

KeyCorp's wealth management segment also showed promising growth, with a 9% compound annual growth rate in assets under management (AUM) over the past year, reaching $64 billion in the second quarter of 2025.

The bank's investment banking and debt placement fees also demonstrated positive momentum, with a 19% increase in the first half of 2025. KeyCorp expects these fees to grow at approximately 2-3 times the real GDP annually over time, supported by favorable market conditions.

Following these announcements, the company's shares moved 0.42%, and are now trading at a price of $18.89. For more information, read the company's full 8-K submission here.

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