KeyCorp reported fourth-quarter earnings per share of $0.43, exceeding the consensus estimate of $0.38 and marking a 7.9% increase from the prior year’s quarter. Revenue for the period reached $2.01 billion, topping the $1.97 billion forecast and reflecting broad-based strength across the firm’s core banking operations.

Net interest income rose by 3% sequentially, driven by higher average loan balances and an improved funding mix. The net interest margin expanded by 7 basis points to 2.82%, a level not seen since early 2022, as KeyCorp continued to reprice assets in a rising rate environment and optimize its deposit structure.

Provisions for credit losses surged to $108 million, more than double the year-ago level, reflecting targeted reserve build-ups against select commercial portfolios. Despite the rise in provisions, nonperforming assets declined by 6% sequentially, underscoring continued improvement in underlying asset quality across both commercial and consumer loan books.

KeyCorp maintained a Common Equity Tier 1 capital ratio of 11.7%, positioning it well above regulatory requirements. The bank repurchased $200 million of common stock during the quarter, while its debt-to-equity ratio stood at 0.54 and the current ratio reflected a strong liquidity buffer, supporting ongoing investments in franchise growth and disciplined shareholder distributions.