KeyCorp reported fourth-quarter earnings per share of $0.43, exceeding the consensus estimate of $0.38 and representing a 7.9% year-over-year increase. Revenue for the quarter reached $2.01 billion, topping the projected $1.97 billion. The outperformance was driven by stronger loan growth and higher net interest income, marking the bank’s fifth consecutive quarter of upside surprises against Wall Street forecasts.

Net interest income rose 3% sequentially, buoyed by higher average loan balances and an expanded net interest margin, which improved by 7 basis points to 2.82%. Noninterest income climbed 11.4% quarter-over-quarter to $782 million, supported by a 33% jump in investment banking and debt placement fees to $243 million. Collectively, these revenue streams underpinned the bank’s record full-year revenue of $7.5 billion, up 16% on an adjusted basis compared with 2024.

Provisions for credit losses surged to $108 million, reflecting elevated reserves against potential loan defaults in selected portfolios. Despite the increase, nonperforming assets declined by 6% from the prior quarter, underscoring ongoing improvements in credit quality. The bank’s allowance for loan losses coverage ratio held steady near historical norms, providing a buffer against industry-wide pressures on commercial and consumer lending segments.

KeyCorp maintained a strong Common Equity Tier 1 ratio of 11.7%, exceeding regulatory requirements and peer averages. During the quarter, the bank repurchased $200 million of common stock under its existing authorization, reinforcing its commitment to returning capital to shareholders. Liquidity metrics remained robust, with a current ratio above 38 and a debt-to-equity ratio near 0.54, indicating prudent balance sheet management heading into 2026.