KeyCorp posted second-quarter 2026 diluted earnings per share of $0.44, unchanged from the first quarter, while first-half EPS rose to $0.88, up 28% from the same period a year earlier.
Revenue in the second quarter was $1.964 billion, up from $1.953 billion in the first quarter. For the first half, revenue reached $3.917 billion, an 8% increase from the first half of 2025. Net interest income rose to $1.258 billion in the second quarter from $1.230 billion in the first quarter, and first-half net interest income climbed 10% year over year to $2.488 billion.
Noninterest income slipped to $706 million in the second quarter from $723 million in the first quarter, but was still up 5% for the first half at $1.429 billion. Noninterest expense increased to $1.217 billion in the second quarter from $1.181 billion in the first quarter, and first-half expense totaled $2.398 billion, up 5% from a year earlier.
Provision for credit losses fell to $92 million in the second quarter from $106 million in the first quarter, a 23% decline. The company said its allowance for credit losses stood at 1.56% of period-end loans.
Return on assets was 1.08% in the second quarter, down from 1.14% in the first quarter, while return on tangible common equity was 12.9%, versus 13.0% in the prior quarter. The cash efficiency ratio moved to 61.9% from 60.4%.
On the balance sheet, period-end C&I loans grew 3% quarter over quarter. Assets under management reached a record $74 billion, and relationship households increased 3% year over year. The company ended the quarter with a CET1 ratio of 9.8%.
KeyCorp said it repurchased $341 million of shares in the second quarter and has $1.3 billion planned for 2026 share repurchases. The market has reacted to these announcements by moving the company's shares 0.05% to a price of $20.25. For the full picture, make sure to review KEYCORP /NEW/'s 8-K report.
