KeyCorp reported fourth-quarter earnings per share of $0.43, outperforming the consensus estimate of $0.38 and marking a 7.9% year-over-year increase. Revenue for the quarter reached $2.01 billion, surpassing the Street’s forecast of $1.97 billion. Net income from continuing operations attributable to common shareholders totaled $474 million, reflecting strong underlying performance across both interest-earning and fee-based businesses.

Net interest income rose 3% sequentially, driven by loan growth and an improved net interest margin that expanded by 7 basis points to 2.82%. Noninterest income also strengthened, increasing 11.4% from the prior quarter to $782 million. Investment banking and debt placement fees climbed 33% quarter-over-quarter to $243 million, underscoring the contribution of capital markets activities to overall revenue growth.

Provisions for credit losses surged to $108 million in the fourth quarter, up sharply from both the prior quarter and the year-ago period. This increase weighed on investor sentiment and contributed to an early-trading stock decline of over 2%. Nonperforming assets declined 6% sequentially, indicating ongoing improvement in asset quality despite the higher provisioning level.

KeyCorp maintained a robust capital position, reporting a Common Equity Tier 1 ratio of 11.7% and repurchasing $200 million of common stock during the quarter. At quarter-end, the company’s debt-to-equity ratio stood at 0.54, while its price-to-earnings and price-to-sales ratios were approximately 12.5 and 2.05, respectively. A current ratio of 38.17 highlighted ample liquidity to support ongoing operations and strategic investments.