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Sep 30
KeyCorp Q3 2025 Earnings Report
KeyCorp reported strong third quarter 2025 results with significant revenue growth and improved profitability.
Key Takeaways
KeyCorp delivered a robust third quarter in 2025, with net income attributable to common shareholders reaching $454 million, or $0.41 per diluted common share. The company saw a 17% year-over-year increase in adjusted revenue and achieved positive operating leverage. Net interest income and net interest margin both improved quarter-over-quarter, while credit quality trends remained positive with declining nonperforming assets and stable net charge-offs.
Net income from continuing operations attributable to Key common shareholders was $454 million, or $0.41 per diluted common share, for Q3 2025.
Total revenue (taxable equivalent) reached $1.895 billion, showing a 3.0% increase quarter-over-quarter and a significant 172.7% increase year-over-year.
Net interest margin (taxable equivalent) improved to 2.75%, an increase of 9 basis points quarter-over-quarter and 58 basis points year-over-year.
Nonperforming assets decreased by 5.5% sequentially, and net loan charge-offs remained stable at 0.42% of average total loans.
KeyCorp
KeyCorp
KeyCorp Revenue by Segment
Revenue by Segment
Consumer Bank Revenue
CapyFin.comCommercial Bank Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
KeyCorp anticipates record revenue in 2025 and expects to deliver outsized EPS growth through active management of its business and balance sheet, aiming for a 15% or better return on tangible common equity within the next few years.
Positive Outlook
- On track to deliver record revenue in 2025.
- Confident in delivering outsized EPS growth.
- Continued active management of business and balance sheet.
- Aiming for 15% or better return on tangible common equity within the next few years.
- Investment banking pipelines grew from already elevated levels, including materially up M&A pipelines.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- Potential impact of lower interest rates on variable-rate earning assets (partially offset by other benefits).
- General risks associated with the U.S. economy, financial industry regulation, and soundness of other financial institutions.
- Adverse changes in credit quality trends could impact future performance.
- Declining asset prices could negatively affect financial results.