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KEY

KeyCorp Q2 EPS Unchanged at $0.44

KeyCorp said second-quarter 2026 diluted earnings per share were $0.44, unchanged from the first quarter, while first-half EPS reached $0.88, up 28% from the same period a year earlier.

Revenue in the second quarter totaled $1.964 billion, up from $1.953 billion in the first quarter and $1.964 billion was 8% higher for the first half than a year earlier at $3.917 billion. 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 from $723 million in the prior quarter, but was still part of a first-half total of $1.429 billion, up 5% from a year earlier.

Noninterest expense increased to $1.217 billion in the second quarter from $1.181 billion in the first quarter. For the first half, expenses were $2.398 billion, up 5% from the prior-year period. Provision for credit losses fell to $92 million from $106 million in the first quarter, and was down 23% year over year for the first half to $198 million.

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%, essentially flat with 13.0% in the prior quarter. The cash efficiency ratio worsened to 61.9% from 60.4%.

On the balance-sheet and business-growth side, assets under management reached a record $74 billion, up from the company’s prior level of $74 billion cited in the release, while relationship households increased 3% year over year. Period-end commercial and industrial loans grew 3% quarter over quarter. The company reported a 9.8% CET1 ratio and said its allowance for credit losses represented 1.56% of period-end loans.

Credit quality remained strong, with net charge-offs at 42 basis points of average loans on a 10-year average basis cited in the release. Key also said it repurchased $341 million of shares in the second quarter and has $1.3 billion planned for 2026 share repurchases. Following these announcements, the company's shares moved 0.05%, and are now trading at a price of $20.25. Check out the company's full 8-K submission here.

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