KeyCorp Q1 2026 – $440M Net Income, 1.14% ROA

By Hao Liu • Saturday, May 30 13:01 • Permanent Link

KeyCorp reported first-quarter 2026 net income of $440 million, up from $430 million in the prior quarter and $330 million a year earlier. Diluted earnings per share rose to $0.44 from $0.43 in 4Q25 and $0.33 in 1Q25.

Revenue slipped to $1.953 billion from $2.005 billion in 4Q25, but was up from $1.773 billion in 1Q25. Net interest income increased to $1.230 billion from $1.223 billion sequentially and $1.105 billion a year earlier.

Noninterest income fell to $723 million from $782 million in the prior quarter, though it was still above the $668 million posted in 1Q25. Noninterest expense declined to $1.181 billion from $1.241 billion in 4Q25, but was higher than $1.131 billion in the year-ago period.

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

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

The bank said its CET1 ratio was 10.0%. It also reported $70 billion in assets under management, up 14% year over year, and said priority fee-based businesses grew 12% year over year. Commercial client growth was 3% year over year, while net new relationship household growth was 2% year over year.

KeyCorp repurchased $389 million of shares in 1Q26 and said it expects $1.3 billion of repurchases for 2026, up from a previous $1.2 billion target. The board also authorized up to $3 billion of share repurchases in May 2026.

On credit quality, nonperforming assets to loans plus other real estate owned were 63 basis points, while net charge-offs to average loans were 38 basis points.

The company’s balance sheet showed $189 billion in assets, $148 billion in deposits, $109 billion in loans, and 940 branches. The market has reacted to these announcements by moving the company's shares -0.05% to a price of $21.33. If you want to know more, read the company's complete 8-K report 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.