KeyCorp reported Q1 EPS of $0.44, up 33% year-over-year, on revenue that grew 10%. Net interest margin expanded 5 basis points sequentially to 2.87%, aided by a 15 basis point decline in funding costs. Investment banking and debt placement fees rose to $197 million, up 13%, while non-interest income climbed 8%.

Commercial loans increased by $3.3 billion sequentially, a 4% rise, with average loans up $1.4 billion. The net charge-off ratio remained low at 38 basis points, while non-performing assets increased by $65 million, driven by utilities and multifamily real estate credits. Average deposits declined 2% sequentially, reflecting seasonal patterns and deliberate runoff of higher-cost brokered CDs.

KeyCorp repurchased nearly $400 million of common stock in the quarter and plans to buy back at least $1.3 billion in 2026. The CET1 ratio stood at 11.4% at quarter-end. Management raised full-year net interest income growth guidance to 9-10% and expects average commercial loan growth of 6-8%, noting that non-interest expenses will increase with ongoing investments in people and technology.