KeyCorp Q4 EPS Beats by $0.03 as NII Jumps 15.3%
KeyCorp’s Q4 2025 adjusted EPS of $0.41 beat estimates by $0.03 as revenues rose 12.5% to $2.0 billion on a 15.3% jump in net interest income to $1.22 billion. Management forecasts 2026 revenue growth of 7%, NII up 8–10% to $4.67–5.14 billion, and NIM expanding to 3.00–3.05% by year-end.
1. Q4 2025 Financial Results
KeyCorp posted adjusted earnings per share of $0.41 in Q4 2025, a 7.9% year-over-year gain that exceeded estimates by $0.03, translating to $474 million in GAAP net income from continuing operations. Tangible common equity to assets rose to 8.4%, while loan charge-offs declined to 0.39% of average loans.
2. Key Revenue and Margin Drivers
Total taxable-equivalent revenues climbed 12.5% to $2.0 billion, fueled by a 15.3% increase in net interest income to $1.22 billion and an 8.3% rise in adjusted non-interest income. Expense growth was limited to 2.4%, though provisions for credit losses jumped to $108 million from $39 million.
3. 2026 Outlook and Guidance
Management expects 2026 total revenues to grow nearly 7%, net interest income to increase 8–10% to $4.67–5.14 billion, and NIM to reach 3.00–3.05% by year-end. Fee-based income is forecast to grow 5–6%, with adjusted expenses rising 3–4% and credit costs normalizing around 40–45 basis points.