KeyCorp Q2 net interest income rises on lower deposit costs
KEY•Outlook
- KeyCorp aims to generate return on tangible common equity exceeding 15% by year-end 2027
Overview
- U.S. regional bank's Q2 revenue rose 7% yr/yr, net income up 22%
- Adjusted EPS for Q2 increased to $0.44 from $0.35 a year ago
- Company repurchased $341 mln of common shares in Q2
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Net Interest Income | $1.26 bln | ||
| Q2 CET1 Capital Ratio | 11.20% | ||
| Q2 Net Income continuing operations | $472 mln | ||
| Q2 Net Interest Margin | 2.89% |
Result drivers
- Net interest income - Growth driven by lower deposit costs, reinvestment into higher-yielding assets, and a shift toward more commercial and industrial loans
- Noninterest income mix - Modest year-over-year growth led by trust and investment services, partly offset by lower commercial mortgage servicing fees
- - Personnel expense rose due to incentive compensation and continued investments in staff
