Net interest income increased 4% quarter-over-quarter, and net interest margin of 2.75% increased 9 bps
Average deposits increased 2% quarter-over-quarter, while total deposit costs declined by 2 bps to 1.97%
Nonperforming assets decreased 6% sequentially; Net charge-offs remained stable at 42 bps
CLEVELAND, Oct. 16, 2025 /PRNewswire/ -- KeyCorp (NYSE:KEY) today announced net income from continuing operations attributable to Key common shareholders of $454 million, or $.41 per diluted common share, or adjusted net income of $450 million, or $.41 per diluted common share(a), for the third quarter of 2025. The third quarter of 2025 included a $4 million after-tax benefit related to the updated FDIC special assessment(b). For the second quarter of 2025, net income from continuing operations attributable to Key common shareholders was $387 million, or $.35 per diluted common share. For the third quarter of 2024, KeyCorp reported a net loss from continuing operations attributable to Key common shareholders of $(447) million, or $(.47) per diluted common share, or adjusted net income of $285 million, or $.30 per diluted common share(a). Included in the third quarter of 2024 are after-tax charges of $(737) million, or $(.77) per diluted common share, related to the loss on the sale of securities(b) and a $5 million after-tax benefit related to the updated FDIC special assessment(b).
Comments from Chairman and CEO, Chris Gorman
"Our third quarter results demonstrate continued strong momentum. Adjusted revenue(a) was up 17% year-over-year, and we generated more than 1,000 basis points of operating leverage again this quarter. Revenue growth was driven by our clearly defined net interest income tailwinds and adjusted noninterest income(a) growth of 8%, which continues to grow faster than expenses. At the same time, we continue to make meaningful investments in front line bankers and technology that will drive future growth. Tangible book value per share grew 4% sequentially and 14% year-over-year.
We continue to deliver best-in-class services to our clients while concurrently managing risk. Credit quality continues to trend in a positive direction as both nonperforming assets and criticized loans declined, and net charge-offs remained within our full year guidance range of 40 to 45 basis points.
Business momentum with clients and prospects continues to build. Client deposits grew 2% quarter-over-quarter, and relationship households continue to grow at an annualized rate of 2%. Assets under management reached a record $68 billion, up 11% year-over-year. Investment banking and debt placement fees recorded the second best year-to-date performance in our history. Investment banking pipelines grew from already elevated levels, including M&A pipelines which are up materially. We raised a robust $50 billion of capital on behalf of our clients during the third quarter while retaining only 15% on our balance sheet.
We are on track to deliver record revenue in 2025. As I look ahead, I remain confident that we will continue to deliver outsized EPS growth. We will do so through continued active management of both our business and our balance sheet. As a result, I am highly confident we will reach a 15% or better return on tangible common equity within the next few years."
(a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "adjusted revenue", "adjusted noninterest income", "adjusted noninterest expense", "adjusted net income", and "adjusted earnings per share". The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b) See table on page 25 for more information on Selected Items Impact on Earnings.
Selected Financial Highlights
Dollars in millions, except per share data
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Income (loss) from continuing operations attributable to Key common shareholders
$ 454
$ 387
$ (447)
17.3 %
N/M
Income (loss) from continuing operations attributable to Key common shareholders per common share, assuming dilution
.41
.35
(.47)
17.1
N/M
Book value at period end
15.86
15.32
14.53
3.5
9.2 %
Return on average tangible common equity from continuing operations (a)
12.51 %
11.09 %
(16.98) %
142 bps
N/M
Return on average total assets from continuing operations
1.04
.91
(.87)
13
N/M
Common Equity Tier 1 ratio (b)
11.8
11.7
10.8
10
100 bps
Net interest margin (TE) from continuing operations
2.75
2.66
2.17
9
58
(a)
The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)
September 30, 2025 ratio is estimated.
TE = Taxable Equivalent, N/M = Not Meaningful
INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Net interest income (TE)
$ 1,193
$ 1,150
$ 964
3.7 %
23.8 %
Noninterest income
702
690
(269)
1.7
N/M
Total revenue (TE)
$ 1,895
$ 1,840
$ 695
3.0 %
172.7 %
TE = Taxable Equivalent
Taxable-equivalent net interest income was $1.19 billion for the third quarter of 2025 and the net interest margin was 2.75%. Compared to the third quarter of 2024, net interest income increased by $229 million, and the net interest margin increased by 58 basis points. These increases primarily reflect lower deposit costs, the reinvestment of proceeds from maturing low-yielding investment securities, fixed-rate loans and swaps repricing into higher-yielding investments, and the repositioning of the available-for-sale portfolio during the third and fourth quarters of 2024. Additionally, the balance sheet composition shifted to reflect a more favorable mix of higher-yielding commercial and industrial loans, and an improved funding mix as lower-cost deposits increased while wholesale borrowings declined. These benefits were partially offset by the impact of lower interest rates on variable-rate earning assets.
Compared to the second quarter of 2025, taxable-equivalent net interest income increased by $43 million, and the net interest margin increased by 9 basis points. These increases were driven by an improved funding mix as low-cost core deposits increased while wholesale borrowings declined, the redeployment of maturing low-yielding investments and swaps into higher-yielding investments, and growth in commercial and industrial loans. Net interest income also benefited from one additional day in the third quarter of 2025 compared to the second quarter of 2025.
Noninterest Income
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Trust and investment services income
$ 150
$ 146
$ 140
2.7 %
7.1 %
Investment banking and debt placement fees
184
178
171
3.4
7.6
Cards and payments income
86
85
84
1.2
2.4
Service charges on deposit accounts
75
73
67
2.7
11.9
Corporate services income
72
76
69
(5.3)
4.3
Commercial mortgage servicing fees
73
70
73
4.3
—
Corporate-owned life insurance income
35
32
36
9.4
(2.8)
Consumer mortgage income
14
15
12
(6.7)
16.7
Operating lease income and other leasing gains
11
14
16
(21.4)
(31.3)
Other income
8
1
(2)
N/M
N/M
Net securities gains (losses)
(6)
—
(935)
N/M
99.4
Total noninterest income
$ 702
$ 690
$ (269)
1.7 %
361.0 %
N/M = Not Meaningful
Compared to the third quarter of 2024, noninterest income increased by $971 million. The increase was primarily driven by the impact of a $918 million loss on the sale of securities as part of the strategic repositioning of the portfolio in the third quarter of 2024. Additional drivers include a $13 million increase in investment banking and debt placement fees reflecting higher debt and equity issuance activity, and a $10 million increase in trust and investment services income. The increase was partly offset by a $5 million decrease in operating lease income and other leasing gains.
Compared to the second quarter of 2025, noninterest income increased by $12 million. The increase was driven by continued momentum across our priority fee based businesses which included a $6 million increase in investment banking and debt placement fees, a $4 million increase in trust and investment services income, and a $3 million increase in commercial mortgage servicing fees. The increase was partly offset by a $4 million decrease in corporate services income and a $3 million decrease in operating lease income.
Noninterest Expense
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Personnel expense
$ 742
$ 705
$ 670
5.2 %
10.7 %
Net occupancy
65
69
66
(5.8)
(1.5)
Computer processing
105
107
104
(1.9)
1.0
Business services and professional fees
44
48
41
(8.3)
7.3
Equipment
20
21
20
(4.8)
—
Operating lease expense
9
10
14
(10.0)
(35.7)
Marketing
22
24
21
(8.3)
4.8
Other expense
170
170
158
—
7.6
Total noninterest expense
$ 1,177
$ 1,154
$ 1,094
2.0 %
7.4 %
Compared to the third quarter of 2024, noninterest expense increased by $83 million. The increase was predominantly driven by a $72 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, and continued investments in people. Business services and professional fees, as well as computer processing expenses increased primarily due to technology-related investments. These were partially offset by a $5 million decrease in operating lease expense.
Compared to the second quarter of 2025, noninterest expense increased by $23 million. The increase was primarily driven by a $37 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, and continued investments in people. This was partially offset by a $14 million decrease in non-personnel expenses primarily due to lower net occupancy and business services and professional fees, as well as a $5 million benefit associated with the updated FDIC special assessment.
BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Commercial and industrial (a)
$ 56,571
$ 55,604
$ 53,121
1.7 %
6.5 %
Other commercial loans
18,826
18,708
19,929
0.6
(5.5)
Total consumer loans
30,830
31,403
33,194
(1.8)
(7.1)
Total loans
$ 106,227
$ 105,715
$ 106,244
0.5 %
0.0 %
(a)
Commercial and industrial average loan balances include $214 million, $218 million, and $215 million of assets from commercial credit cards at September 30, 2025, June 30, 2025, and September 30, 2024, respectively.
Average loans were $106.2 billion for the third quarter of 2025, a decrease of $17 million compared to the third quarter of 2024. Average commercial loans increased by $2.3 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $2.4 billion, reflective of broad-based declines across consumer loan categories.
Compared to the second quarter of 2025, average loans increased by $512 million. Average commercial loans increased $1.1 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $573 million, reflective of the intentional run-off of low-yielding loans.
Average Deposits
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Non-time deposits
$ 135,135
$ 131,845
$ 129,901
2.5 %
4.0 %
Time deposits
15,239
15,601
17,870
(2.3)
(14.7)
Total deposits
$ 150,374
$ 147,446
$ 147,771
2.0 %
1.8 %
Cost of total deposits
1.97 %
1.99 %
2.39 %
(2) bps
(42) bps
Average deposits totaled $150.4 billion for the third quarter of 2025, an increase of $2.6 billion compared to the year-ago quarter, reflecting growth in consumer deposits.
Compared to the second quarter of 2025, average deposits increased by $2.9 billion, driven by higher commercial client balances. The rate paid on interest-bearing deposits declined by 1 basis point, and the overall cost of deposits declined by 2 basis points to 1.97%.
ASSET QUALITY
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Net loan charge-offs
$ 114
$ 102
$ 154
11.8 %
(26.0) %
Net loan charge-offs to average total loans
.42 %
.39 %
.58 %
N/A
N/A
Nonperforming loans at period end
$ 658
$ 696
$ 728
(5.5)
(9.6)
Nonperforming assets at period end
668
707
741
(5.5)
(9.9)
Allowance for loan and lease losses
1,444
1,446
1,494
(0.1)
(3.3)
Allowance for credit losses
1,736
1,743
1,774
(0.4)
(2.1)
Provision for credit losses
107
138
95
(22.5)
12.6
Allowance for loan and lease losses to nonperforming loans
219 %
208 %
205 %
N/A
N/A
Allowance for credit losses to nonperforming loans
264
250
244
N/A
N/A
N/A = Not Applicable
Key's provision for credit losses for the third quarter of 2025 was $107 million, compared to $95 million in the third quarter of 2024 and $138 million in the second quarter of 2025. A reserve release of $7 million during the third quarter of 2025 reflected a relatively stable macroeconomic outlook and consistent loan portfolio performance.
Net loan charge-offs for the third quarter of 2025 totaled $113.54856356 million, or 0.42% of average total loans. These results compare to $154 million, or 0.58%, for the third quarter of 2024 and $102 million, or 0.39%, for the second quarter of 2025. Key's allowance for credit losses was $1.7 billion, or 1.64% of total period-end loans at September 30, 2025, compared to 1.68% at September 30, 2024, and 1.64% at June 30, 2025.
At September 30, 2025, Key's nonperforming loans totaled $658 million, which represented 0.62% of period-end portfolio loans. These results compare to 0.69% at September 30, 2024, and 0.65% at June 30, 2025. Nonperforming assets at September 30, 2025, totaled $668 million, and represented 0.63% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.70% at September 30, 2024, and 0.66% at June 30, 2025.
CAPITAL
Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at September 30, 2025.
Capital Ratios
9/30/2025
6/30/2025
9/30/2024
Common Equity Tier 1 (a)
11.8 %
11.7 %
10.8 %
Tier 1 risk-based capital (a)
13.5
13.4
12.6
Total risk-based capital (a)
15.8
15.7
15.1
Tangible common equity to tangible assets (b)
8.1
7.8
6.2
Leverage (a)
10.4
10.3
9.2
(a)
September 30, 2025 ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision.
(b)
The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
Key's regulatory capital position remained strong in the third quarter of 2025. As shown in the preceding table, at September 30, 2025, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.8% and 13.5%, respectively.
Summary of Changes in Common Shares Outstanding
In thousands
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Shares outstanding at beginning of period
1,112,453
1,111,986
943,200
— %
17.9 %
Shares issued under employee compensation plans (net of cancellations andreturns)
499
467
222
6.9
124.8
Shares issued under Scotiabank investment agreement
—
—
47,829
—
N/M
Shares outstanding at end of period
1,112,952
1,112,453
991,251
— %
12.3 %
Key declared a dividend on July 15, 2025 of $.205 per common share, payable in the third quarter of 2025.
LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major business segment to Key's taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.
Major Business Segments
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Revenue from continuing operations (TE)
Consumer Bank
$ 935
$ 912
$ 800
2.5 %
16.9 %
Commercial Bank
1,014
974
866
4.1
17.1
Other (a)
(54)
(46)
(971)
(17.4)
94.4
Total
$ 1,895
$ 1,840
$ 695
3.0 %
172.7 %
Income (loss) from continuing operations attributable to Key
Consumer Bank
$ 152
$ 122
$ 75
24.6 %
102.7 %
Commercial Bank
367
349
299
5.2
22.7
Other (a)
(29)
(48)
(785)
39.6
96.3
Total
$ 490
$ 423
$ (411)
15.8 %
219.2 %
(a)
Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represent the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent
Consumer Bank
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Summary of operations
Net interest income (TE)
$ 691
$ 676
$ 569
2.2 %
21.4 %
Noninterest income
244
236
231
3.4
5.6
Total revenue (TE)
935
912
800
2.5
16.9
Provision for credit losses
40
55
52
(27.3)
(23.1)
Noninterest expense
695
696
649
(.1)
7.1
Income (loss) before income taxes (TE)
200
161
99
24.2
102.0
Allocated income taxes (benefit) and TE adjustments
48
39
24
23.1
100.0
Net income (loss) attributable to Key
$ 152
$ 122
$ 75
24.6 %
102.7 %
Average balances
Loans and leases
$ 35,363
$ 36,137
$ 38,332
(2.1) %
(7.7) %
Total assets
38,374
39,156
41,188
(2.0)
(6.8)
Deposits
87,692
88,002
86,431
(.4)
1.5
Assets under management at period end
$ 67,855
$ 64,244
$ 61,122
5.6 %
11.0 %
TE = Taxable Equivalent
Additional Consumer Bank Data
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Noninterest income
Trust and investment services income
$ 124
$ 119
$ 114
4.2 %
8.8 %
Service charges on deposit accounts
36
35
34
2.9
5.9
Cards and payments income
61
61
61
—
—
Consumer mortgage income
14
14
13
—
7.7
Other noninterest income
9
7
9
28.6
—
Total noninterest income
$ 244
$ 236
$ 231
3.4 %
5.6 %
Average deposit balances
Money market deposits
$ 35,278
$ 34,524
$ 30,805
2.2 %
14.5 %
Demand deposits
22,604
22,784
22,310
(.8)
1.3
Savings deposits
4,291
4,406
4,553
(2.6)
(5.8)
Time deposits
11,113
11,910
13,927
(6.7)
(20.2)
Noninterest-bearing deposits
14,406
14,378
14,836
.2
(2.9)
Total deposits
$ 87,692
$ 88,002
$ 86,431
(.4) %
1.5 %
Other data
Branches
942
943
944
Automated teller machines
1,152
1,166
1,194
Consumer Bank Summary of Operations (3Q25 vs. 3Q24)
Key's Consumer Bank recorded net income attributable to Key of $152 million for the third quarter of 2025, compared to $75 million for the year-ago quarter
Taxable-equivalent net interest income increased by $122 million, or 21.4%, compared to the third quarter of 2024
Average loans and leases decreased $3.0 billion, or 7.7%, from the third quarter of 2024, driven by broad-based declines across consumer loan categories
Average deposits increased $1.3 billion, or 1.5%, from the third quarter of 2024, primarily driven by growth in money market deposits
Provision for credit losses decreased $12 million compared to the third quarter of 2024, primarily driven by changes in reserve levels due to lower loan balances as well as lower net loan charge-offs
Noninterest income increased $13 million from the year-ago quarter, primarily driven by an increase in trust and investment services income
Noninterest expense increased $46 million from the year-ago quarter, primarily driven by higher support and overhead expense
Commercial Bank
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Summary of operations
Net interest income (TE)
$ 587
$ 556
$ 460
5.6 %
27.6 %
Noninterest income
427
418
406
2.2
5.2
Total revenue (TE)
1,014
974
866
4.1
17.1
Provision for credit losses
68
84
41
(19.0)
65.9
Noninterest expense
482
449
444
7.3
8.6
Income (loss) before income taxes (TE)
464
441
381
5.2
21.8
Allocated income taxes and TE adjustments
97
92
82
5.4
18.3
Net income (loss) attributable to Key
$ 367
$ 349
$ 299
5.2 %
22.7 %
Average balances
Loans and leases
$ 70,326
$ 69,087
$ 67,452
1.8 %
4.3 %
Loans held for sale
1,224
707
998
73.1
22.6
Total assets
79,733
78,486
76,395
1.6
4.4
Deposits
58,483
55,886
58,696
4.6
(0.4)
TE = Taxable Equivalent
Additional Commercial Bank Data
Dollars in millions
Change 3Q25 vs.
3Q25
2Q25
3Q24
2Q25
3Q24
Noninterest income
Trust and investment services income
$ 26
$ 25
$ 26
4.0 %
— %
Investment banking and debt placement fees
183
179
171
2.2
7.0
Cards and payments income
21
21
22
—
(4.5)
Service charges on deposit accounts
37
38
32
(2.6)
15.6
Corporate services income
69
68
62
1.5
11.3
Commercial mortgage servicing fees
73
70
73
4.3
—
Operating lease income and other leasing gains
10
15
16
(33.3)
(37.5)
Other noninterest income
8
2
4
300.0
100.0
Total noninterest income
$ 427
$ 418
$ 406
2.2 %
5.2 %
Commercial Bank Summary of Operations (3Q25 vs. 3Q24)
Key's Commercial Bank recorded net income attributable to Key of $367 million for the third quarter of 2025, compared to $299 million for the year-ago quarter
Taxable-equivalent net interest income increased by $127 million, or 27.6%, compared to the third quarter of 2024
Average loan and lease balances increased $2.9 billion, or 4.3%, compared to the third quarter of 2024, driven by an increase in commercial and industrial loans
Average deposit balances decreased $213 million compared to the third quarter of 2024, driven by a reduction in higher-cost client balances
Provision for credit losses increased $27 million compared to the third quarter of 2024, driven by stable reserve levels relative to the third quarter of 2024, partly offset by lower net loan charge-offs
Noninterest income increased $21 million compared to the third quarter of 2024, primarily driven by an increase in investment banking and debt placement fees and corporate services income
Noninterest expense increased $38 million compared to the third quarter of 2024, primarily driven by higher support and overhead expense, as well as higher personnel expense related to incentive compensation associated with noninterest income growth, and continued investments in people
*******************************************
KeyCorp's roots trace back 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion at September 30, 2025.
Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as "goal," "objective," "plan," "expect," "assume," "anticipate," "intend," "project," "believe," "estimate," or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2024 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the "SEC") and are or will be available on Key's website (www.key.com/ir) and on the SEC's website (www.sec.gov). These factors may include, among others, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions, and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.
A live Internet broadcast of KeyCorp's conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts' questions can be accessed through the Investor Relations section at https://www.key.com/ir at 10:00 a.m. ET, on October 16, 2025. A replay of the call will be available on our website through October 16, 2026.
For up-to-date company information, media contacts, and facts and figures about Key's lines of business, visit our Media Newsroom at https://www.key.com/newsroom.
*****
KeyCorpThird Quarter 2025 Financial Supplement
Page
12
Basis of Presentation
13
Financial Highlights
15
GAAP to Non-GAAP Reconciliation
18
Consolidated Balance Sheets
19
Consolidated Statements of Income
20
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
22
Noninterest Expense
22
Personnel Expense
22
Loan Composition
22
Loans Held for Sale Composition
23
Summary of Changes in Loans Held for Sale
23
Summary of Loan and Lease Loss Experience From Continuing Operations
25
Asset Quality Statistics From Continuing Operations
25
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
25
Summary of Changes in Nonperforming Loans From Continuing Operations
26
Line of Business Results
26
Selected Items Impact on Earnings
Basis of Presentation
Use of Non-GAAP Financial MeasuresThis document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Key's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key's website (www.key.com/ir).
Forward-Looking Non-GAAP Financial Measures From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.
Annualized DataCertain returns, yields, performance ratios, or quarterly growth rates are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.
Taxable EquivalentThe interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt loans, and certain lease assets, on a common basis that facilitates comparison of results to peers.
Earnings Per Share Equivalent Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.
Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
9/30/2025
6/30/2025
9/30/2024
Summary of operations
Net interest income (TE)
$ 1,193
$ 1,150
$ 964
Noninterest income
702
690
(269)
Total revenue (TE)
1,895
1,840
695
Provision for credit losses
107
138
95
Noninterest expense
1,177
1,154
1,094
Income (loss) from continuing operations attributable to Key
490
423
(411)
Income (loss) from discontinued operations, net of taxes
(1)
2
1
Net income (loss) attributable to Key
489
425
(410)
Income (loss) from continuing operations attributable to Key common shareholders
454
387
(447)
Income (loss) from discontinued operations, net of taxes
(1)
2
1
Net income (loss) attributable to Key common shareholders
453
389
(446)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$ .41
$ .35
$ (.47)
Income (loss) from discontinued operations, net of taxes
—
—
—
Net income (loss) attributable to Key common shareholders (a)
.41
.35
(.47)
Income (loss) from continuing operations attributable to Key common shareholders, assuming dilution
.41
.35
