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KEY

KeyCorp Reports Strong Q1 Earnings

KeyCorp reported first-quarter 2026 diluted earnings per share of $0.44, up from $0.33 in the same quarter a year earlier and from $0.43 in the fourth quarter of 2025.

Revenue rose to $1.953 billion, compared with $1.773 billion in 1Q25 and $2.005 billion in 4Q25. Net interest income increased to $1.230 billion from $1.105 billion a year earlier and $1.223 billion in the prior quarter.

Noninterest income was $723 million, up from $668 million in 1Q25 but down from $782 million in 4Q25. Noninterest expense came in at $1.181 billion, compared with $1.131 billion a year earlier and $1.241 billion in 4Q25.

Provision for credit losses was $106 million, down from $118 million in 1Q25 and $108 million in 4Q25.

Return on assets improved to 1.14% from 0.88% in 1Q25 and 1.08% in 4Q25. Return on tangible common equity rose to 13.0% from 11.2% a year earlier and 12.4% in the prior quarter. The cash efficiency ratio improved to 60.4% from 63.5% in 1Q25 and 61.6% in 4Q25.

On the balance sheet, KeyCorp ended the quarter with $189 billion in assets, $148 billion in deposits and $109 billion in loans. Assets under management were about $70 billion. The company said its CET1 ratio was 10.0%.

The bank also said priority fee-based businesses grew 12% year over year, assets under management increased 14% year over year, commercial client growth was up 3%, and net new relationship household growth was up 2% year over year.

Capital returns continued in the quarter, with $389 million of shares repurchased in 1Q26 out of $1.3 billion planned for 2026. The company also said it expects to repurchase $1.3 billion in shares this year, up from a previous guide of $1.2 billion. Following these announcements, the company's shares moved -0.05%, and are now trading at a price of $21.33. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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