KeyCorp reported fourth-quarter earnings per share of $0.43, outperforming the consensus estimate of $0.38 and representing a 7.9% year-over-year increase. Total revenue for the quarter reached $2.01 billion, topping expectations of $1.97 billion. The outperformance was driven by higher net interest income and continued average loan growth, reflecting steady demand across commercial and consumer lending portfolios.

Net interest income rose by 3% sequentially, lifting the quarterly figure to approximately $1.2 billion. The net interest margin improved by 7 basis points to 2.82%, marking the fifth consecutive quarter of margin expansion. On a full-year basis, KeyCorp generated a record $7.5 billion in revenue, up 16% year over year when adjusted for selected items, underscoring the success of its balance-sheet repositioning and interest-rate management strategies.

Provisions for credit losses surged to $108 million in the quarter, prompting investor concern and contributing to an early-trading stock decline of over 2%. Noninterest income climbed 11.4% sequentially to $782 million, led by a 33% quarter-over-quarter jump in investment banking and debt placement fees to $243 million. Nonperforming assets declined by 6% from the prior quarter, reflecting ongoing improvements in underlying credit quality.

KeyCorp maintained a Common Equity Tier 1 ratio of 11.7%, comfortably above regulatory minimums and peer averages. During the quarter, the bank repurchased $200 million of common stock while preserving what management described as peer-leading capital levels. The debt-to-equity ratio stood at 0.54, and the current ratio exceeded 38, underscoring the firm’s strong liquidity profile and capacity for continued shareholder returns and strategic investments.