KeyCorp Q4 Earnings Call Highlights

3 days ago 7

MarketBeat

Tue, January 20, 2026 astatine 9:25 AM CST 8 min read

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Strong results and wide 2026 guidance: KeyCorp reported Q4 EPS of $0.43 (adjusted $0.41) and >$2 billion gross (+12% YoY), with NII up 15% and NIM 2.82%; absorption expects ~7% gross maturation successful 2026 driven by NII up 8–10% and expenses up 3–4% (positive operating leverage).
Improving recognition and balance-sheet remix: Provision for recognition losses was $108 million successful Q4 with a nett charge-off ratio of 39 bps (FY 41 bps), non-performing assets fell 6% sequentially, and the slope is intentionally moving disconnected lower-yielding user loans portion increasing relationship-based commercialized loans.
Capital returns and strategical concern ramp: KeyCorp repurchased $200 million successful Q4 and plans astatine slightest $1.2 billion of buybacks successful 2026 portion managing CET1 toward the precocious extremity of its 9.5%–10% target, and is expanding tech/AI and frontline hiring with exertion walk rising to astir $1 billion.
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KeyCorp (NYSE:KEY) executives highlighted improved profitability, strengthening recognition trends, and an accelerated superior instrumentality program during the company’s fourth-quarter 2025 net telephone connected Jan. 20, 2026. Management besides outlined 2026 fiscal guidance and discussed continued investments successful hiring, technology, and artificial intelligence, alongside respective committee changes announced the aforesaid morning.

Chairman and CEO Chris Gorman said fourth-quarter and full-year results reflected advancement connected KeyCorp’s “organic way to achieving consistently higher returns connected capital.” The institution reported fourth-quarter net of $0.43 per share, portion CFO Clark Khayat noted net were $0.41 per stock connected an adjusted basis. Revenue exceeded $2 billion, increasing 12% year-over-year connected an adjusted basis, portion expenses grew 2%.

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Khayat said tax-equivalent nett involvement income roseate 15% year-over-year and nett involvement borderline (NIM) ended the 4th astatine 2.82%, up 7 ground points sequentially and supra the company’s antecedently indicated people scope of 2.75% to 2.8%. He attributed sequential NII maturation to commercialized lawsuit deposit maturation and equilibrium expanse optimization, including moving disconnected lower-yielding user loans and allowing higher-cost brokered CDs and borrowings to rotation off.

Non-interest income accrued 8% year-over-year connected an adjusted basis, which absorption described arsenic broad-based crossed precedence interest businesses. Fourth-quarter concern banking and indebtedness placement fees were $243 million, up 10% year-over-year, driven by indebtedness superior markets and commercialized owe indebtedness placement. Trust and concern services income roseate 10%, supported by grounds affirmative nett flows and higher marketplace values, portion assets nether absorption reached a grounds $70 billion.