KeyCorp Posts 23% Year-Over-Year NII Growth to $4.67B in 2025
KeyCorp’s net interest income rose 23% in 2025 to $4.67 billion, driven by 9% C&I loan growth, stronger commercial deposits and lower funding costs. The bank optimized its balance sheet through higher-yielding commercial loan mix and disciplined deposit pricing, expanding net interest margin despite Fed rate cuts.
1. NII Expansion Drivers
KeyCorp’s net interest income on a tax-equivalent basis increased 23% year-over-year to $4.67 billion in 2025. Growth was fueled by 9% commercial and industrial loan portfolio expansion, stronger commercial deposit inflows, lower overall funding costs and balance sheet optimization efforts.
2. Peer Comparisons
PNC Financial reported NII growth of 6.6% to $14.5 billion in 2025, while Huntington Bancshares saw a 12% increase to $6 billion. Both peers benefited from lower funding costs and asset repricing, though KeyCorp outpaced them on strategic loan mix adjustments.
3. 2026 NII Outlook
KeyCorp forecasts net interest income to rise 8–10% in 2026, projecting fourth-quarter NII of about $1.3 billion and net interest margin expansion to 3.00–3.05%. The outlook assumes average loan growth of 1–2% and deposit beta in the low-to-mid-50% range based on $170 billion of earning assets.