KeyCorp Q3 revenue rises 8% to record, profit up 24%
KEY•KeyCorp’s third-quarter revenue rose 8% year over year to a record $2.04 billion, while EPS increased 24% to $0.51. The company repurchased $320 million of common shares during the quarter.
1. Quarterly results
KeyCorp reported third-quarter net income from continuing operations of $537 million. Net interest income was $1.31 billion, net interest margin was 2.95%, and the CET1 capital ratio was 11.10%.
2. Drivers and outlook
KeyCorp said higher net interest income reflected lower deposit costs, reinvestment into higher-yielding assets and growth in commercial and industrial loans. Investment banking and debt placement fees rose 27% sequentially, while broad-based improvement in credit quality included lower net charge-offs and nonperforming assets. The company aims to sustain return on tangible common equity of at least 15% by the end of 2027 and sees opportunities for organic growth across its franchise.
