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Jun 30
KeyCorp Q2 2025 Earnings Report
KeyCorp reported its second quarter 2025 earnings, with net income attributable to common shareholders of $387 million, or $0.35 per diluted common share.
Key Takeaways
KeyCorp demonstrated strong momentum in the second quarter of 2025, with revenue increasing by 21% year-over-year, driven by growth in both net interest income and noninterest income. The company also saw improvements in credit quality and an increase in period-end loans and assets under management.
Revenue increased by 21% year-over-year to $1.84 billion, showing significant positive operating leverage.
Net income from continuing operations attributable to Key common shareholders was $387 million, or $0.35 per diluted common share, up 63.3% from the second quarter of 2024.
Net interest margin improved by 8 basis points quarter-over-quarter to 2.66%, reflecting lower funding costs and redeployment of investments.
Credit quality improved, with net loan charge-offs declining 8% quarter-over-quarter and overall credit migration improving for the sixth consecutive quarter.
KeyCorp
KeyCorp
KeyCorp Revenue by Segment
Revenue by Segment
Consumer Bank Revenue
CapyFin.comCommercial Bank Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
KeyCorp is confident in its ability to execute on organic growth opportunities, with plans to increase front-line bankers and maintain strong investment banking pipelines.
Positive Outlook
- Continued acceleration of business activity with clients and prospects.
- Client deposits and relationship households increased by 2% year-over-year.
- Deposit costs were managed below 2%.
- Period-end commercial loans grew by $2.1 billion in the second quarter.
- Investment banking pipelines remain at historically elevated levels, with over $30 billion of capital raised for clients in the quarter.
Challenges Ahead
- Lower interest rates on variable-rate earning assets partially offset benefits from lower deposit costs and higher-yielding investments.
- Lower loan balances in average consumer loans due to intentional run-off of low-yielding loans.
- Decrease in commercial mortgage servicing fees compared to the prior quarter.
- Decrease in operating lease income and other leasing gains year-over-year.
- Decrease in other income year-over-year.