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  4. KEYCORP REPORTS FIRST QUARTER 2025 NET INCOME OF $370 MILLION, OR $.33 PER DILUTED COMMON SHARE

KEYCORP REPORTS FIRST QUARTER 2025 NET INCOME OF $370 MILLION, OR $.33 PER DILUTED COMMON SHARE

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KeyCorp (NYSE: KEY) reported strong Q1 2025 financial results with net income of $370 million, or $0.33 per diluted share, marking significant improvement from Q1 2024's $183 million. Revenue reached $1.8 billion, up 16% year-over-year, while expenses decreased 1%.

Key performance highlights include: net interest income up 4% quarter-over-quarter, net interest margin increased to 2.58%, and improved credit metrics with nonperforming assets declining 9%. The bank maintained a strong capital position with Common Equity Tier 1 ratio of 11.8%, up approximately 150 basis points year-over-year.

Commercial loans grew $1.2 billion from year-end, while client deposits increased 4% year-over-year. The bank's credit quality remained robust, with credit migration trends improving for the fifth consecutive quarter. The provision for credit losses was $118 million, with net loan charge-offs at $110 million or 0.43% of average total loans.

KeyCorp (NYSE: KEY) ha riportato solidi risultati finanziari nel primo trimestre 2025 con un utile netto di 370 milioni di dollari, pari a 0,33 dollari per azione diluita, segnando un notevole miglioramento rispetto ai 183 milioni di dollari del primo trimestre 2024. I ricavi hanno raggiunto 1,8 miliardi di dollari, in aumento del 16% su base annua, mentre le spese sono diminuite dell'1%.

I principali indicatori di performance includono: un aumento del 4% del reddito netto da interessi rispetto al trimestre precedente, un margine di interesse netto salito al 2,58% e un miglioramento delle metriche creditizie con una riduzione del 9% degli attivi deteriorati. La banca ha mantenuto una solida posizione patrimoniale con un rapporto Common Equity Tier 1 dell'11,8%, in crescita di circa 150 punti base su base annua.

I prestiti commerciali sono cresciuti di 1,2 miliardi di dollari dalla fine dell'anno, mentre i depositi della clientela sono aumentati del 4% su base annua. La qualità del credito della banca è rimasta robusta, con tendenze di migrazione del credito in miglioramento per il quinto trimestre consecutivo. La copertura per perdite su crediti è stata di 118 milioni di dollari, con perdite nette su prestiti pari a 110 milioni di dollari, ovvero lo 0,43% del totale medio dei prestiti.

KeyCorp (NYSE: KEY) reportó sólidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 370 millones de dólares, o 0,33 dólares por acción diluida, marcando una mejora significativa respecto a los 183 millones del primer trimestre de 2024. Los ingresos alcanzaron 1,8 mil millones de dólares, un aumento del 16% interanual, mientras que los gastos disminuyeron un 1%.

Los aspectos destacados del desempeño incluyen: un aumento del 4% en los ingresos netos por intereses trimestre a trimestre, un margen neto de intereses que subió al 2,58% y métricas crediticias mejoradas con una disminución del 9% en los activos improductivos. El banco mantuvo una sólida posición de capital con una ratio Common Equity Tier 1 del 11,8%, incrementándose aproximadamente 150 puntos básicos interanuales.

Los préstamos comerciales crecieron 1,2 mil millones de dólares desde fin de año, mientras que los depósitos de clientes aumentaron un 4% interanual. La calidad crediticia del banco se mantuvo robusta, con tendencias de migración crediticia mejorando por quinto trimestre consecutivo. La provisión para pérdidas crediticias fue de 118 millones de dólares, con cancelaciones netas de préstamos de 110 millones, o 0,43% del promedio total de préstamos.

KeyCorp (NYSE: KEY)는 2025년 1분기 강력한 재무 실적을 보고했으며, 순이익은 3억 7천만 달러로 희석 주당 순이익은 0.33달러로 2024년 1분기 1억 8,300만 달러에서 크게 개선되었습니다. 매출은 18억 달러에 달해 전년 대비 16% 증가했고, 비용은 1% 감소했습니다.

주요 성과 지표로는 전분기 대비 4% 증가한 순이자수익, 2.58%로 상승한 순이자마진, 그리고 9% 감소한 부실자산 등 신용 지표 개선이 포함됩니다. 은행은 11.8%의 보통주 자기자본비율(Common Equity Tier 1)을 유지하며 전년 대비 약 150 베이시스 포인트 상승한 강한 자본 상태를 유지했습니다.

상업대출은 연말 대비 12억 달러 증가했고, 고객 예금은 전년 대비 4% 증가했습니다. 은행의 신용 품질은 견고하게 유지되었으며, 신용 이동 추세는 5분기 연속 개선되었습니다. 대손충당금은 1억 1,800만 달러였으며, 순대출 손실은 1억 1,000만 달러로 평균 총대출의 0.43%에 해당합니다.

KeyCorp (NYSE : KEY) a annoncé de solides résultats financiers pour le premier trimestre 2025 avec un bénéfice net de 370 millions de dollars, soit 0,33 dollar par action diluée, marquant une amélioration significative par rapport aux 183 millions du premier trimestre 2024. Le chiffre d'affaires a atteint 1,8 milliard de dollars, en hausse de 16 % sur un an, tandis que les dépenses ont diminué de 1 %.

Les principaux indicateurs de performance incluent : une hausse de 4 % du revenu net d’intérêts d’un trimestre à l’autre, une marge nette d’intérêts portée à 2,58 %, ainsi qu’une amélioration des indicateurs de crédit avec une baisse de 9 % des actifs non performants. La banque a maintenu une solide position en capital avec un ratio Common Equity Tier 1 de 11,8 %, en hausse d’environ 150 points de base sur un an.

Les prêts commerciaux ont augmenté de 1,2 milliard de dollars depuis la fin de l’année, tandis que les dépôts clients ont progressé de 4 % sur un an. La qualité du crédit de la banque est restée robuste, avec une amélioration des tendances de migration du crédit pour le cinquième trimestre consécutif. La provision pour pertes sur crédits s’est élevée à 118 millions de dollars, avec des radiations nettes de prêts à 110 millions, soit 0,43 % du total moyen des prêts.

KeyCorp (NYSE: KEY) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 370 Millionen US-Dollar bzw. 0,33 US-Dollar je verwässerter Aktie, was eine deutliche Verbesserung gegenüber den 183 Millionen US-Dollar im ersten Quartal 2024 darstellt. Die Einnahmen erreichten 1,8 Milliarden US-Dollar, ein Anstieg von 16 % im Jahresvergleich, während die Ausgaben um 1 % zurückgingen.

Zu den wichtigsten Leistungskennzahlen zählen: ein Anstieg des Nettozinsertrags um 4 % gegenüber dem Vorquartal, eine Steigerung der Nettozinsmarge auf 2,58 % sowie verbesserte Kreditkennzahlen mit einem Rückgang notleidender Vermögenswerte um 9 %. Die Bank hielt eine starke Kapitalposition mit einer Common Equity Tier 1-Ratio von 11,8 %, was einem Anstieg von etwa 150 Basispunkten im Jahresvergleich entspricht.

Die gewerblichen Kredite wuchsen seit Jahresende um 1,2 Milliarden US-Dollar, während die Kundeneinlagen im Jahresvergleich um 4 % zunahmen. Die Kreditqualität der Bank blieb robust, mit einer Verbesserung der Kreditmigrationstrends im fünften Quartal in Folge. Die Rückstellung für Kreditausfälle betrug 118 Millionen US-Dollar, die Nettoabschreibungen auf Kredite lagen bei 110 Millionen US-Dollar bzw. 0,43 % der durchschnittlichen Gesamtkredite.

Positive
  • Revenue increased 16% year-over-year to $1.8 billion
  • Net interest income grew 4% quarter-over-quarter
  • Net interest margin improved to 2.58%, up 17 basis points
  • Commercial loans increased by $1.2 billion from year-end
  • Client deposits up 4% year-over-year
  • Credit metrics improved with 9% decline in nonperforming assets
  • Strong capital position with CET1 ratio of 11.8%
Negative
  • Net loan charge-offs increased 35.8% year-over-year to $110 million
  • Average total loans decreased 6% year-over-year to $104.4 billion
  • Investment banking and debt placement fees declined 20.8% quarter-over-quarter
  • Consumer loans declined by $633 million quarter-over-quarter

Insights

KeyCorp's Q1 results show strong improvement with 16% revenue growth, expanding margins, and improving credit metrics, reflecting successful strategic execution.

KeyCorp's Q1 2025 results demonstrate significant financial improvement across multiple fronts. Net income reached $370 million ($0.33 per share), a dramatic turnaround from Q4 2024's loss and more than double the $183 million reported in Q1 2024. This performance was driven by robust revenue growth of 16% year-over-year while maintaining disciplined expense management (down 1%).

The bank's net interest margin expanded impressively to 2.58%, up 17 basis points sequentially and 56 basis points year-over-year. This margin expansion reflects successful deposit cost management and strategic repositioning of the securities portfolio in late 2024. The painful medicine of taking a $908 million securities loss in Q4 2024 is now paying dividends through improved yield structure.

Credit quality metrics show encouraging trends with nonperforming assets declining 9% quarter-over-quarter and net charge-offs down 4%. However, the $118 million provision for credit losses (up from $39 million in Q4) signals some caution about economic uncertainties despite management's optimistic tone on credit migration trends.

From a balance sheet perspective, KeyCorp maintains a fortress-like capital position with a Common Equity Tier 1 ratio of 11.8%, approximately 150 basis points higher than a year ago. This capital strength provides significant flexibility for navigating various economic scenarios while potentially returning capital to shareholders.

The 4% year-over-year deposit growth demonstrates customer confidence, with the added benefit of declining deposit costs (down 12 basis points sequentially). This positive deposit beta dynamic creates a tailwind for future quarters as the benefit of lower funding costs continues to flow through to the bottom line.

KeyCorp's results outshine many regional banking peers with exceptional margin expansion, fee income growth, and credit resilience despite industry challenges.

KeyCorp's Q1 performance reveals a bank successfully executing on multiple strategic fronts while navigating a challenging regional banking environment. The 4% sequential increase in net interest income stands out particularly when many regional competitors are still struggling with margin compression. The expansion to a 2.58% NIM represents exceptional asset-liability management in a period of interest rate uncertainty.

The fee income diversification strategy is clearly bearing fruit with commercial mortgage servicing fees increasing 35.7% year-over-year. This fee resilience provides an important counterbalance to interest rate sensitivity. Similarly, the modest growth in investment banking, cards and payments, and trust services demonstrates the success of KeyCorp's targeted growth initiatives in higher-return businesses.

Credit quality trends reveal a more nuanced picture than management's wholly optimistic tone suggests. While quarter-over-quarter improvements are evident, the 0.43% net charge-off ratio remains elevated from the 0.29% a year ago. The increase in credit provisions to $118 million indicates some wariness about potential economic softening, though the allowance coverage ratios remain strong.

The bank's deposit strategy appears particularly effective, growing total deposits 4% year-over-year while simultaneously reducing deposit costs to 2.06% from 2.18% in the prior quarter. This declining deposit beta is a crucial competitive advantage in the current environment.

The 6% year-over-year loan contraction reflects both tepid demand and disciplined underwriting – a prudent approach given current economic uncertainties. The $1.2 billion commercial loan growth from year-end levels suggests the bank can still capture quality lending opportunities while maintaining overall discipline.

KeyCorp's return on tangible common equity of 11.24% represents a significant improvement from both sequential and year-ago periods, placing it increasingly competitive with stronger-performing regional banking peers.

Revenue of $1.8 billion, up 16% year-over-year; noninterest expense down 1% year-over-year

Net interest income up 4% quarter-over-quarter

Improved credit metrics - nonperforming assets declined by 9% and net charge-offs by 4% quarter-over-quarter

Common equity tier 1 ratio of 11.8%, up ~150 basis points year-over-year

CLEVELAND, April 17, 2025 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $370 million, or $.33 per diluted common share for the first quarter of 2025. For the fourth quarter of 2024, KeyCorp reported a net loss from continuing operations attributable to Key common shareholders of $(279) million, or $(.28) per diluted common share, or adjusted net income of $378 million, or $.38 per diluted common share(a). Net income from continuing operations attributable to Key common shareholders was $183 million, or $.20 per diluted common share, or adjusted net income of $205 million or $.22 per diluted common share(a), for the first quarter of 2024. Included in the fourth quarter of 2024 are $657 million, or $.66 per diluted common share, after-tax, of charges related to the loss on the sale of securities(b). Included in the first quarter of 2024 are $22 million, or $.02 per diluted common share, after-tax, of charges related to the FDIC special assessment(b).           

Comments from Chairman and CEO, Chris Gorman

"Our first quarter results marked a strong beginning to the year. Revenue was up 16% year-over-year while expenses were essentially flat. We achieved both absolute and fee-based positive operating leverage on a year-over-year basis. Sequentially, net interest income grew 4% and the net interest margin increased by 17 basis points to 2.58%. On an adjusted basis(a), pre-provision net revenue increased more than $90 million from the prior quarter. Credit quality remained strong, with credit migration trends improving for the fifth consecutive quarter.

Our strong financial results are a function of continued momentum with both clients and prospects. Client deposits were up 4% year-over-year while deposit betas continue to improve. Commercial loans grew $1.2 billion from year-end levels. We continued to demonstrate progress in each of our strategic, fee-based businesses – wealth management, commercial payments, and investment banking.

As we look to the future, we are confident in our ability to navigate the current environment from a position of strength. We ended the quarter with a strong capital position – a luxury that gives us both flexibility and resiliency. Our liquidity position is robust and our credit metrics continue to improve.

We enjoy strong earnings and business momentum and clearly defined net interest income tailwinds. I remain confident in our ability to perform well under a wide range of potential macroeconomic scenarios."

(a)

The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "adjusted noninterest expense", "adjusted net income", "adjusted earnings per share", and "adjusted pre-provision net revenue." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b)

See table on page 23 for more information on Selected Items Impact on Earnings.

 

Selected Financial Highlights















Dollars in millions, except per share data





Change 1Q25 vs.



1Q25

4Q24

1Q24


4Q24

1Q24

Income (loss) from continuing operations attributable to Key common shareholders

$      370

$    (279)

$      183


232.6 %

102.2 %

Income (loss) from continuing operations attributable to Key common shareholders per
  common share — assuming dilution

.33

(.28)

.20


217.9

65.0

Return on average tangible common equity from continuing operations (a)

11.24 %

(9.69) %

7.87 %


N/A

N/A

Return on average total assets from continuing operations

.88

(.52)

.47


N/A

N/A

Common Equity Tier 1 ratio (b)

11.8

11.9

10.3


N/A

N/A

Book value at period end

$   14.89

$   14.21

$   12.84


4.8

16.0

Net interest margin (TE) from continuing operations

2.58 %

2.41 %

2.02 %


N/A

N/A











(a)

The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b)

March 31, 2025 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable

 

INCOME STATEMENT HIGHLIGHTS














Revenue














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Net interest income (TE)

$      1,105

$      1,061

$        886


4.1 %

24.7 %

Noninterest income

668

(196)

647


440.8

3.2

Total revenue (TE)

$      1,773

$        865

$      1,533


105.0 %

15.7 %









TE = Taxable Equivalent

   

Taxable-equivalent net interest income was $1.1 billion for the first quarter of 2025 and the net interest margin was 2.58%. Compared to the first quarter of 2024, net interest income increased by $219 million, and the net interest margin increased by 56 basis points. These increases primarily reflect the impact of lower deposit costs, reinvestment of proceeds from maturing low-yielding investment securities, fixed rate loans and swaps into higher yielding investments, the repositioning of the available-for-sale portfolio during the third and fourth quarters of 2024, and an improved funding mix as lower-cost deposits increased while wholesale borrowings declined. These benefits were partially offset by the impact of lower interest rates on repricing earning assets and lower loan balances.

Compared to the fourth quarter of 2024, taxable-equivalent net interest income increased by $44 million, and the net interest margin increased by 17 basis points. These increases were driven by a decline in funding costs, including interest-bearing deposit costs, impact from the second tranche of the available-for-sale portfolio repositioning, which was completed during the fourth quarter of 2024, and from the redeployment of low yielding investments into higher yielding investment securities. These benefits more than offset the impact from lower interest rates on repricing earning assets, and two fewer days in the first quarter of 2025 compared to the fourth quarter of 2024.

Noninterest Income














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Trust and investment services income

$        139

$        142

$        136


(2.1) %

2.2 %

Investment banking and debt placement fees

175

221

170


(20.8)

2.9

Cards and payments income

82

85

77


(3.5)

6.5

Service charges on deposit accounts

69

65

63


6.2

9.5

Corporate services income

65

69

69


(5.8)

(5.8)

Commercial mortgage servicing fees

76

68

56


11.8

35.7

Corporate-owned life insurance income

33

36

32


(8.3)

3.1

Consumer mortgage income

13

16

14


(18.8)

(7.1)

Operating lease income and other leasing gains

9

15

24


(40.0)

(62.5)

Other income

7

(5)

9


240.0

(22.2)

Net securities gains (losses)

—

(908)

(3)


N/M

N/M

Total noninterest income

$        668

$       (196)

$        647


440.8 %

3.2 %









N/M = Not Meaningful

     

Compared to the first quarter of 2024, noninterest income increased by $21 million. The increase was driven by a $20 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances and overall growth of the servicing portfolio. We also continued to see momentum across investment banking, wealth management and commercial payments, which offset a $15 million decrease in operating lease income and other leasing gains.

Compared to the fourth quarter of 2024, noninterest income increased by $864 million. The increase was driven primarily by a $915 million loss on the sale of securities as part of a strategic repositioning of the available-for-sale portfolio that impacted earnings in the fourth quarter of 2024. The increase was partly offset by a $46 million decrease in investment banking and debt placement fees.

Noninterest Expense














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Personnel expense

$        680

$        734

$        674


(7.4) %

.9 %

Net occupancy

67

67

67


—

—

Computer processing

107

107

102


—

4.9

Business services and professional fees

40

55

41


(27.3)

(2.4)

Equipment

20

20

20


—

—

Operating lease expense

11

15

17


(26.7)

(35.3)

Marketing

21

33

19


(36.4)

10.5

Other expense

185

198

203


(6.6)

(8.9)

Total noninterest expense

$      1,131

$      1,229

$      1,143


(8.0) %

(1.0) %








 

Compared to the first quarter of 2024, noninterest expense decreased by $12 million. The decrease was driven by an $18 million decrease in other expense due to a FDIC special assessment charge in the first quarter of 2024, which more than offset increases in personnel and technology-related investments.

Compared to the fourth quarter of 2024, noninterest expense decreased by $98 million. The decrease was primarily driven by a $54 million decline in personnel expense, primarily related to lower incentive compensation, as well as lower employee benefits expense. Additionally, business services and professional fees, marketing and other expenses declined primarily due to seasonality and some elevated expenses in the fourth quarter of 2024.

BALANCE SHEET HIGHLIGHTS














Average Loans














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Commercial and industrial (a)

$    53,746

$    52,887

$    55,220


1.6 %

(2.7) %

Other commercial loans

18,619

19,202

21,222


(3.0)

(12.3)

Total consumer loans

31,989

32,622

34,592


(1.9)

(7.5)

Total loans

$  104,354

$  104,711

$  111,034


(.3) %

(6.0) %










(a)

Commercial and industrial average loan balances include $213 million, $216 million, and $211 million of assets from commercial credit cards at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

 

Average loans were $104.4 billion for the first quarter of 2025, a decrease of $6.7 billion compared to the first quarter of 2024, generally reflective of tepid client loan demand. Average commercial loans declined by $4.1 billion and average consumer loans declined by $2.6 billion, reflective of broad-based declines across all loan categories.

Compared to the fourth quarter of 2024, average loans decreased by $357 million. Average commercial loans increased $276 million, primarily driven by an increase in commercial and industrial loans, offset by continued paydown activity in commercial mortgage real estate. Average consumer loans declined by $633 million, reflective of the intentional run-off of low yielding loans.

Average Deposits














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Non-time deposits

$  131,917

$  132,092

$  128,448


(.1) %

2.7 %

Time deposits

16,625

17,641

14,430


(5.8)

15.2

Total deposits

$  148,542

$  149,733

$  142,878


(.8) %

4.0 %








Cost of total deposits

2.06 %

2.18 %

2.20 %


N/A

N/A









N/A = Not Applicable

 

Average deposits totaled $148.5 billion for the first quarter of 2025, an increase of $5.7 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.

Compared to the fourth quarter of 2024, average deposits decreased by $1.2 billion, driven by a seasonal decrease in commercial deposit balances. The rate paid on interest-bearing deposits declined by 18 basis points, and the overall cost of deposits declined by 12 basis points.

ASSET QUALITY














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Net loan charge-offs

$      110

$      114

$       81


(3.5) %

35.8 %

Net loan charge-offs to average total loans

.43 %

.43 %

.29 %


N/A

N/A

Nonperforming loans at period end

$      686

$      758

$      658


(9.5)

4.3

Nonperforming assets at period end

700

772

674


(9.3)

3.9

Allowance for loan and lease losses

1,429

1,409

1,542


1.4

(7.3)

Allowance for credit losses

1,707

1,699

1,823


0.5

(6.4)

Provision for credit losses

118

39

101


202.6

16.8








Allowance for loan and lease losses to nonperforming loans

208 %

186 %

234 %


N/A

N/A

Allowance for credit losses to nonperforming loans

249

224

277


N/A

N/A









N/A = Not Applicable

 

Key's provision for credit losses was $118 million, compared to $101 million in the first quarter of 2024 and $39 million in the fourth quarter of 2024. The increase from the year-ago quarter is driven by higher net loan charge-offs. The increase from the prior quarter reflects a reserve build driven by uncertainty in the economic outlook, partly offset by a reserve release due to improved credit migration trends.

Net loan charge-offs for the first quarter of 2025 totaled $110 million, or 0.43% of average total loans. These results compare to $81 million, or 0.29%, for the first quarter of 2024 and $114 million, or 0.43%, for the fourth quarter of 2024. Key's allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans at March 31, 2025, compared to 1.66% at March 31, 2024, and 1.63% at December 31, 2024.

At March 31, 2025, Key's nonperforming loans totaled $686 million, which represented 0.65% of period-end portfolio loans. These results compare to 0.60% at March 31, 2024, and 0.73% at December 31, 2024. Nonperforming assets at March 31, 2025, totaled $700 million, and represented 0.67% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.61% at March 31, 2024, and 0.74% at December 31, 2024.

CAPITAL

Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at March 31, 2025.

Capital Ratios









3/31/2025

12/31/2024

3/31/2024

Common Equity Tier 1 (a)

11.8 %

11.9 %

10.3 %

Tier 1 risk-based capital (a)

13.5

13.7

12.0

Total risk-based capital (a)

15.9

16.2

14.5

Tangible common equity to tangible assets (b)

7.4

7.0

5.0

Leverage (a)

10.2

10.0

9.1







(a)

March 31, 2025 ratio is estimated.  As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision.

(b)

The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

 

Key's regulatory capital position remained strong in the first quarter of 2025. As shown in the preceding table, at March 31, 2025, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.8% and 13.5%, respectively.

Summary of Changes in Common Shares Outstanding













In thousands





Change 1Q25 vs.



1Q25

4Q24

1Q24


4Q24

1Q24

Shares outstanding at beginning of period

1,106,786

991,251

936,564


11.7 %

18.2 %

Shares issued under employee compensation plans (net of cancellations and returns)

5,200

493

6,212


954.8

(16.3)

Shares issued under Scotiabank investment agreement

—

115,042

—


N/M

N/M


Shares outstanding at end of period

1,111,986

1,106,786

942,776


.5 %

17.9 %










N/M = Not Meaningful

 

Key declared a dividend in January of 2025 of $.205 per common share, payable in the first quarter of 2025. 

In March 2025, KeyCorp's Board of Directors authorized a new repurchase program pursuant to which KeyCorp may purchase up to $1 billion of KeyCorp common shares in the open market or in privately negotiated transactions. 

LINE OF BUSINESS RESULTS

The following table shows the contribution made by each major business segment to Key's taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.

Major Business Segments















Dollars in millions





Change 1Q25 vs.



1Q25

4Q24

1Q24


4Q24

1Q24

Revenue from continuing operations (TE)







Consumer Bank

$         874

$         872

$         757


.2 %

15.5 %

Commercial Bank

942

999

798


(5.7)

18.0

Other (a)

(43)

(1,006)

(22)


95.7

(95.5)


Total

$       1,773

$         865

$       1,533


105.0 %

15.7 %









Income (loss) from continuing operations attributable to Key







Consumer Bank

$         118

$           88

$           41


34.1 %

187.8 %

Commercial Bank

321

379

205


(15.3)

56.6

Other (a)

(33)

(711)

(27)


95.4

(22.2)


Total

$         406

$        (244)

$         219


266.4 %

85.4 %











(a)

Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

TE = Taxable Equivalent

 

Consumer Bank














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Summary of operations







Net interest income (TE)

$         648

$         637

$         532


1.7 %

21.8 %

Noninterest income

226

235

225


(3.8)

.4

Total revenue (TE)

874

872

757


.2

15.5

Provision for credit losses

43

43

(2)


—

N/M

Noninterest expense

676

713

704


(5.2)

(4.0)

Income (loss) before income taxes (TE)

155

116

55


33.6

181.8

Allocated income taxes (benefit) and TE adjustments

37

28

14


32.1

164.3

Net income (loss) attributable to Key

$         118

$           88

$           41


34.1 %

187.8 %








Average balances







Loans and leases

$     36,819

$     37,567

$     39,919


(2.0) %

(7.8) %

Total assets

39,806

40,563

42,710


(1.9)

(6.8)

Deposits

88,306

87,476

84,075


.9

5.0








Assets under management at period end

$     61,053

$     61,361

$     57,305


(.5) %

6.5 %









TE = Taxable Equivalent; N/M = Not Meaningful

 

Additional Consumer Bank Data














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Noninterest income







Trust and investment services income

$       113

$       115

$       110


(1.7) %

2.7 %

Service charges on deposit accounts

33

32

33


3.1

—

Cards and payments income

57

64

57


(10.9)

—

Consumer mortgage income

13

17

14


(23.5)

(7.1)

Other noninterest income

10

7

11


42.9

(9.1)

Total noninterest income

$       226

$       235

$       225


(3.8) %

.4 %








Average deposit balances







Money market deposits

$  33,533

$  31,968

$  29,875


4.9 %

12.2 %

Demand deposits

22,771

22,442

22,213


1.5

2.5

Savings deposits

4,392

4,391

4,986


—

(11.9)

Time deposits

13,320

13,979

11,808


(4.7)

12.8

Noninterest-bearing deposits

14,290

14,696

15,193


(2.8)

(5.9)

Total deposits

$  88,306

$  87,476

$  84,075


.9 %

5.0 %








Other data







Branches

945

944

957




Automated teller machines

1,176

1,182

1,214











 

Consumer Bank Summary of Operations (1Q25 vs. 1Q24)

  • Key's Consumer Bank recorded net income attributable to Key of $118 million for the first quarter of 2025, compared to $41 million for the year-ago quarter
  • Taxable-equivalent net interest income increased by $116 million, or 21.8%, compared to the first quarter of 2024
  • Average loans and leases decreased $3.1 billion, or 7.8%, from the first quarter of 2024, driven by broad-based declines across all loan categories
  • Average deposits increased $4.2 billion, or 5.0%, from the first quarter of 2024, driven by growth in money market deposits and certificates of deposit
  • Provision for credit losses increased $45 million compared to the first quarter of 2024, primarily driven by changes in reserve levels due to uncertainty in the economic outlook and higher net loan charge-offs
  • Noninterest income increased $1 million from the year-ago quarter, driven by an increase in trust and investment services
  • Noninterest expense decreased $28 million from the year-ago quarter, primarily driven by a FDIC special assessment charge in the first quarter of 2024

 

Commercial Bank














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Summary of operations







Net interest income (TE)

$         534

$         537

$         397


(.6) %

34.5 %

Noninterest income

408

462

401


(11.7)

1.7

Total revenue (TE)

942

999

798


(5.7)

18.0

Provision for credit losses

75

(3)

102


N/M

(26.5)

Noninterest expense

462

516

442


(10.5)

4.5

Income (loss) before income taxes (TE)

405

486

254


(16.7)

59.4

Allocated income taxes and TE adjustments

84

107

49


(21.5)

71.4

Net income (loss) attributable to Key

$         321

$         379

$         205


(15.3) %

56.6 %








Average balances







Loans and leases

$     67,056

$     66,691

$     70,633


.5 %

(5.1) %

Loans held for sale

754

1,247

840


(39.5)

(10.2)

Total assets

76,707

76,433

80,000


0.4

(4.1)

Deposits

57,436

59,687

56,331


(3.8) %

2.0 %









TE = Taxable Equivalent; N/M = Not Meaningful

 

Additional Commercial Bank Data














Dollars in millions





Change 1Q25 vs.


1Q25

4Q24

1Q24


4Q24

1Q24

Noninterest income







Trust and investment services income

$           27

$           26

$           27


3.8 %

— %

Investment banking and debt placement fees

175

220

170


(20.5)

2.9

Cards and payments income

21

18

20


16.7

5.0

Service charges on deposit accounts

35

32

29


9.4

20.7

Corporate services income

60

67

63


(10.4)

(4.8)

Commercial mortgage servicing fees

76

67

56


13.4

35.7

Operating lease income and other leasing gains

8

15

24


(46.7)

(66.7)

Other noninterest income

6

17

12


(64.7)

(50.0)

Total noninterest income

$         408

$         462

$         401


(11.7) %

1.7 %








 

Commercial Bank Summary of Operations (1Q25 vs. 1Q24)

  • Key's Commercial Bank recorded net income attributable to Key of $321 million for the first quarter of 2025 compared to $205 million for the year-ago quarter
  • Taxable-equivalent net interest income increased by $137 million, or 34.5%, compared to the first quarter of 2024
  • Average loan and lease balances decreased $3.6 billion, or 5.1%, compared to the first quarter of 2024, driven by a decline in commercial real estate loans and commercial and industrial loans
  • Average deposit balances increased $1.1 billion compared to the first quarter of 2024, driven by our focus on growing deposits across our commercial businesses
  • Provision for credit losses decreased $27 million compared to the first quarter of 2024, driven by a lower reserve build due to slowing asset quality migration, which was partly offset by the impact of uncertainty in the economic outlook and higher net loan charge-offs
  • Noninterest income increased $7 million compared to the first quarter of 2024, primarily driven by an increase in commercial mortgage servicing fees and service charges on deposit accounts
  • Noninterest expense increased $20 million compared to the first quarter of 2024, driven by higher personnel expense

*******************************************

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $189 billion at March 31, 2025.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as "goal," "objective," "plan," "expect," "assume," "anticipate," "intend," "project," "believe," "estimate," or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2024 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the "SEC") and are or will be available on Key's website (www.key.com/ir) and on the SEC's website (www.sec.gov). These factors may include, among others, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions, and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

A live Internet broadcast of KeyCorp's conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts' questions can be accessed through the Investor Relations section at https://www.key.com/ir at 8:00 a.m. ET, on April 17, 2025. A replay of the call will be available on our website through April 17, 2026.

For up-to-date company information, media contacts, and facts and figures about Key's lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****

KeyCorp
First Quarter 2025
Financial Supplement

Page


12

Basis of Presentation

13

Financial Highlights

14

GAAP to Non-GAAP Reconciliation

16

Consolidated Balance Sheets

17

Consolidated Statements of Income

18

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations

19

Noninterest Expense

19

Personnel Expense

20

Loan Composition

20

Loans Held for Sale Composition

20

Summary of Changes in Loans Held for Sale

21

Summary of Loan and Lease Loss Experience From Continuing Operations

22

Asset Quality Statistics From Continuing Operations

22

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

22

Summary of Changes in Nonperforming Loans From Continuing Operations

23

Line of Business Results

23

Selected Items Impact on Earnings

 

Basis of Presentation

Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Key's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key's website (www.key.com/ir).

Forward-Looking Non-GAAP Financial Measures
From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.

Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.

Taxable Equivalent
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt loans, and certain lease assets, on a common basis that facilitates comparison of results to peers.

Earnings Per Share Equivalent
Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.

Financial Highlights

(Dollars in millions, except per share amounts)




Three months ended




3/31/2025

12/31/2024

3/31/2024

Summary of operations





Net interest income (TE)

$         1,105

$         1,061

$           886


Noninterest income

668

(196)

647



Total revenue (TE)

1,773

865

1,533


Provision for credit losses

118

39

101


Noninterest expense

1,131

1,229

1,143


Income (loss) from continuing operations attributable to Key

406

(244)

219


Income (loss) from discontinued operations, net of taxes

(1)

—

—


Net income (loss) attributable to Key

405

(244)

219








Income (loss) from continuing operations attributable to Key common shareholders

370

(279)

183


Income (loss) from discontinued operations, net of taxes

(1)

—

—


Net income (loss) attributable to Key common shareholders

369

(279)

183

Per common share





Income (loss) from continuing operations attributable to Key common shareholders

$            .34

$           (.28)

$            .20


Income (loss) from discontinued operations, net of taxes

—

—

—


Net income (loss) attributable to Key common shareholders (a)

.34

(.28)

.20








Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution

.33

(.28)

.20


Income (loss) from discontinued operations, net of taxes — assuming dilution

—

—

—


Net income (loss) attributable to Key common shareholders — assuming dilution (a)

.33

(.28)

.20








Cash dividends declared

.205

.205

.205


Book value at period end

14.89

14.21

12.84


Tangible book value at period end

12.40

11.70

9.87


Market price at period end

15.99

17.14

15.81

Performance ratios





From continuing operations:





Return on average total assets

.88 %

(.52) %

.47 %


Return on average common equity

9.30

(7.80)

6.06


Return on average tangible common equity (b)

11.24

(9.69)

7.87


Net interest margin (TE)

2.58

2.41

2.02


Cash efficiency ratio (b)

63.5

141.3

74.0


From consolidated operations:





Return on average total assets

.88 %

(.52) %

.47 %


Return on average common equity

9.28

(7.80)

6.06


Return on average tangible common equity (b)

11.21

(9.69)

7.87


Net interest margin (TE)

2.58

2.41

2.02


Loan to deposit (c)

70.2

70.3

76.6

Capital ratios at period end





Key shareholders' equity to assets

10.1 %

9.7 %

7.8 %


Key common shareholders' equity to assets

8.8

8.4

6.5


Tangible common equity to tangible assets (b)

7.4

7.0

5.0


Common Equity Tier 1 (d)

11.8

11.9

10.3


Tier 1 risk-based capital (d)

13.5

13.7

12.0


Total risk-based capital (d)

15.9

16.2

14.5


Leverage (d)

10.2

10.0

9.1

Asset quality — from continuing operations





Net loan charge-offs

$           110

$           114

$             81


Net loan charge-offs to average loans

.43 %

.43 %

.29 %


Allowance for loan and lease losses

$         1,429

$         1,409

$         1,542


Allowance for credit losses

1,707

1,699

1,823


Allowance for loan and lease losses to period-end loans

1.36 %

1.35 %

1.40 %


Allowance for credit losses to period-end loans

1.63

1.63

1.66


Allowance for loan and lease losses to nonperforming loans

208

186

234


Allowance for credit losses to nonperforming loans

249

224

277


Nonperforming loans at period-end

$           686

$           758

$           658


Nonperforming assets at period-end

700

772

674


Nonperforming loans to period-end portfolio loans

.65 %

.73 %

.60 %


Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

.67

.74

.61

Trust assets





Assets under management

$       61,053

$       61,361

$       57,305

Other data





Average full-time equivalent employees

16,989

16,810

16,752


Branches

945

944

957


Taxable-equivalent adjustment

$              9

$             10

$             11



(a)

Earnings per share may not foot due to rounding.

(b)

The table entitled "GAAP to Non-GAAP Reconciliations" starting on page 14 of this supplement presents the computations of certain financial measures related to "tangible common equity" and "cash efficiency." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(c)

Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.

(d)

March 31, 2025, ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision.

 

GAAP to Non-GAAP Reconciliations
(Dollars in millions)

The table below presents certain non-GAAP financial measures related to "tangible common equity," "return on average tangible common equity," "pre-provision net revenue," "adjusted pre-provision net revenue," "cash efficiency ratio," "adjusted taxable-equivalent revenue," "noninterest expense adjusted for selected items," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."

The tangible common equity ratio and the return on average tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key's capital position without regard to the effects of intangible assets and preferred stock.

The table also shows the computation for pre-provision net revenue and adjusted pre-provision net revenue, which are not formally defined by GAAP. Management believes that eliminating the effects of the provision for credit losses makes it easier to analyze the results by presenting them on a more comparable basis. Further, management believes that adjusting pre-provision net revenue for significant or unusual items that management does not consider indicative of ongoing financial performance provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key's intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key's results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.

Adjusted taxable-equivalent revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and significant or unusual items that management does not consider indicative of ongoing financial performance. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.

Noninterest expense adjusted for selected items is a non-GAAP measure in that it excludes significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or "adjusted net income") and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude significant or unusual items, net of tax, that management does not consider indicative of ongoing financial performance . Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.


Three months ended


3/31/2025

12/31/2024

3/31/2024

Tangible common equity to tangible assets at period-end




Key shareholders' equity (GAAP)

$   19,003

$   18,176

$   14,547

Less: Intangible assets

2,774

2,779

2,799

Preferred Stock (a)

2,446

2,446

2,446

Tangible common equity (non-GAAP)

$   13,783

$   12,951

$     9,302

Total assets (GAAP)

$ 188,691

$ 187,168

$ 187,485

Less: Intangible assets

2,774

2,779

2,799

Tangible assets (non-GAAP)

$ 185,917

$ 184,389

$ 184,686

Tangible common equity to tangible assets ratio (non-GAAP)

7.41 %

7.02 %

5.04 %

Average tangible common equity




Average Key shareholders' equity (GAAP)

$   18,632

$   16,732

$   14,649

Less: Intangible assets (average)

2,777

2,783

2,802

Preferred stock (average)

2,500

2,500

2,500

Average tangible common equity (non-GAAP)

$   13,355

$   11,449

$     9,347

Return on average tangible common equity from continuing operations




Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)

$        370

$      (279)

$        183

Average tangible common equity (non-GAAP)

13,355

11,449

9,347





Return on average tangible common equity from continuing operations (non-GAAP)

11.24 %

(9.69) %

7.87 %

Return on average tangible common equity consolidated




Net income (loss) attributable to Key common shareholders (GAAP)

$        369

$      (279)

$        183

Average tangible common equity (non-GAAP)

13,355

11,449

9,347





Return on average tangible common equity consolidated (non-GAAP)

11.21 %

(9.69) %

7.87 %

Pre-provision net revenue




Net interest income (GAAP)

$     1,096

$     1,051

$        875

Plus: Taxable-equivalent adjustment

9

10

11

Noninterest income (GAAP)

668

(196)

647

Less: Noninterest expense (GAAP)

1,131

1,229

1,143

Pre-provision net revenue from continuing operations (non-GAAP)

$        642

$      (364)

$        390

Adjusted pre-provision net revenue




Pre-provision net revenue from continuing operations (non-GAAP)

$        642

$      (364)

$        390

Plus: Selected items(b)

—

915

29

Adjusted pre-provision net revenue from continuing operations (non-GAAP)

$        642

$        551

$        419

 

GAAP to Non-GAAP Reconciliations (continued)

(Dollars in millions)


Three months ended


3/31/2025

12/31/2024

3/31/2024

Cash efficiency ratio




Noninterest expense (GAAP)

$     1,131

$     1,229

$     1,143

Less: Intangible asset amortization

5

7

8

Adjusted noninterest expense (non-GAAP)

$     1,126

$     1,222

$     1,135





Net interest income (GAAP)

$     1,096

$     1,051

$       875

Plus: Taxable-equivalent adjustment

9

10

11

Net interest income TE (non-GAAP)

1,105

1,061

886

Noninterest income (GAAP)

668

(196)

647

Total taxable-equivalent revenue (non-GAAP)

$     1,773

$       865

$     1,533





Cash efficiency ratio (non-GAAP)

63.5 %

141.3 %

74.0 %





Adjusted taxable-equivalent revenue




Noninterest income (GAAP)

$       668

$      (196)

$       647

Plus: Selected items(b)

—

918

—

Adjusted noninterest income (non-GAAP)

$       668

$       722

$       647

Net interest income TE (non-GAAP)

1,105

1,061

886

Total adjusted taxable-equivalent revenue (non-GAAP)

$     1,773

$     1,783

$     1,533

Noninterest expense adjusted for selected items




Noninterest expense (GAAP)

$     1,131

$     1,229

$     1,143

Plus: Selected items(b)

—

3

(29)

Noninterest expense adjusted for selected items (non-GAAP)

$     1,131

$     1,232

$     1,114

Adjusted income (loss) available from continuing operations attributable to Key common shareholders




Income (loss) from continuing operations attributable to Key common shareholders (GAAP)

$       370

$      (279)

$       183

Plus: Selected items (net of tax)(b)

—

657

22

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)

$       370

$       378

$       205

Diluted earnings per common share (EPS) - adjusted




Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)

$        .33

$       (.28)

$        .20

Plus: EPS impact of selected items(b)

—

.66

.02

Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)

$        .33

$        .38

$        .22



(a)

Net of capital surplus.

(b)

Additional detail provided in Selected Items table on page 23.

GAAP = U.S. generally accepted accounting principles

 

Consolidated Balance Sheets

(Dollars in millions)










3/31/2025

12/31/2024

3/31/2024

Assets





Loans

$       104,809

$       104,260

$       109,885


Loans held for sale

811

797

228


Securities available for sale

40,751

37,707

37,298


Held-to-maturity securities

7,160

7,395

8,272


Trading account assets

1,296

1,283

1,171


Short-term investments

15,349

17,504

13,205


Other investments

1,050

1,041

1,247



Total earning assets

171,226

169,987

171,306


Allowance for loan and lease losses

(1,429)

(1,409)

(1,542)


Cash and due from banks

1,909

1,743

1,247


Premises and equipment

602

614

650


Goodwill

2,752

2,752

2,752


Other intangible assets

22

27

48


Corporate-owned life insurance

4,404

4,394

4,392


Accrued income and other assets

8,958

8,797

8,314


Discontinued assets

247

263

318



Total assets

$       188,691

$       187,168

$       187,485







Liabilities





Deposits in domestic offices:






Interest-bearing deposits

$       122,283

$       120,132

$       114,593



Noninterest-bearing deposits

28,454

29,628

29,638



Total deposits

150,737

149,760

144,231


Federal funds purchased and securities sold under repurchase agreements 

22

14

27


Bank notes and other short-term borrowings

2,328

2,130

2,896


Accrued expense and other liabilities

4,209

4,983

5,008


Long-term debt

12,392

12,105

20,776



Total liabilities

169,688

168,992

172,938







Equity





Preferred stock

2,500

2,500

2,500


Common shares

1,257

1,257

1,257


Capital surplus

5,946

6,038

6,164


Retained earnings

14,724

14,584

15,662


Treasury stock, at cost

(2,637)

(2,733)

(5,722)


Accumulated other comprehensive income (loss)

(2,787)

(3,470)

(5,314)



Key shareholders' equity

19,003

18,176

14,547

Total liabilities and equity

$       188,691

$       187,168

$       187,485







Common shares outstanding (000)

1,111,986

1,106,786

942,776

 

Consolidated Statements of Income

(Dollars in millions, except per share amounts)




Three months ended




3/31/2025

12/31/2024

3/31/2024

Interest income





Loans

$             1,401

$             1,448

$             1,538


Loans held for sale

14

20

14


Securities available for sale

392

353

232


Held-to-maturity securities

63

66

75


Trading account assets

17

16

14


Short-term investments

174

214

142


Other investments

9

15

17



Total interest income

2,070

2,132

2,032

Interest expense





Deposits

753

821

782


Federal funds purchased and securities sold under repurchase agreements

1

1

1


Bank notes and other short-term borrowings

27

24

46


Long-term debt

193

235

328



Total interest expense

974

1,081

1,157

Net interest income

1,096

1,051

875

Provision for credit losses

118

39

101

Net interest income after provision for credit losses

978

1,012

774

Noninterest income





Trust and investment services income

139

142

136


Investment banking and debt placement fees

175

221

170


Cards and payments income

82

85

77


Service charges on deposit accounts

69

65

63


Corporate services income

65

69

69


Commercial mortgage servicing fees

76

68

56


Corporate-owned life insurance income

33

36

32


Consumer mortgage income

13

16

14


Operating lease income and other leasing gains

9

15

24


Other income

7

(5)

9


Net securities gains (losses)

—

(908)

(3)



Total noninterest income

668

(196)

647

Noninterest expense





Personnel

680

734

674


Net occupancy

67

67

67


Computer processing

107

107

102


Business services and professional fees

40

55

41


Equipment

20

20

20


Operating lease expense

11

15

17


Marketing

21

33

19


Other expense

185

198

203



Total noninterest expense

1,131

1,229

1,143

Income (loss) from continuing operations before income taxes

515

(413)

278


Income taxes (benefit)

109

(169)

59

Income (loss) from continuing operations

406

(244)

219


Income (loss) from discontinued operations, net of taxes

(1)

—

—

Net income (loss)

$                405

$              (244)

$                219







Income (loss) from continuing operations attributable to Key common shareholders

$                370

$              (279)

$                183

Net income (loss) attributable to Key common shareholders

369

(279)

183

Per common share




Income (loss) from continuing operations attributable to Key common shareholders

$                 .34

$               (.28)

$                 .20

Income (loss) from discontinued operations, net of taxes

—

—

—

Net income (loss) attributable to Key common shareholders (a)

.34

(.28)

.20

Per common share — assuming dilution




Income (loss) from continuing operations attributable to Key common shareholders

$                 .33

$               (.28)

$                 .20

Income (loss) from discontinued operations, net of taxes

—

—

—

Net income (loss) attributable to Key common shareholders (a)

.33

(.28)

.20







Cash dividends declared per common share

$               .205

$               .205

$               .205







Weighted-average common shares outstanding (000)

1,096,654

986,829

929,692


Effect of common share options and other stock awards(b)

9,486

—

7,319

Weighted-average common shares and potential common shares outstanding (000) (c)

1,106,140

986,829

937,011



(a)

Earnings per share may not foot due to rounding.

(b)

For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.

(c)

Assumes conversion of common share options and other stock awards, as applicable.

 

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations

(Dollars in millions)



First Quarter 2025


Fourth Quarter 2024


First Quarter 2024



Average


Yield/


Average


Yield/


Average


Yield/



Balance

Interest (a)

Rate (a)


Balance

Interest (a)

Rate (a)


Balance

Interest (a)

Rate (a)

Assets













Loans: (b), (c)













Commercial and industrial (d)

$       53,746

$              800

6.04 %


$       52,887

$              817

6.15 %


$       55,220

$              853

6.22 %


Real estate — commercial mortgage

13,061

192

5.96


13,343

202

6.01


14,837

229

6.21


Real estate — construction

2,905

49

6.87


3,033

55

7.23


3,039

57

7.50


Commercial lease financing

2,653

23

3.52


2,826

24

3.51


3,346

27

3.23


Total commercial loans

72,365

1,064

5.96


72,089

1,098

6.07


76,442

1,166

6.14


Real estate — residential mortgage

19,737

165

3.33


19,990

166

3.32


20,814

171

3.29


Home equity loans

6,248

86

5.60


6,445

93

5.75


7,024

104

5.97


Other consumer loans

5,087

63

5.01


5,256

67

5.08


5,800

72

4.99


Credit cards

917

32

14.04


931

34

14.36


954

36

14.93


Total consumer loans

31,989

346

4.35


32,622

360

4.40


34,592

383

4.44


Total loans

104,354

1,410

5.47


104,711

1,458

5.55


111,034

1,549

5.61


Loans held for sale

815

14

6.70


1,327

20

6.05


888

14

6.15


Securities available for sale (b), (e)

39,321

392

3.70


37,952

353

3.38


37,089

232

2.17


Held-to-maturity securities (b)

7,274

63

3.46


7,541

66

3.50


8,423

75

3.57


Trading account assets

1,296

17

5.20


1,215

16

4.98


1,110

14

5.21


Short-term investments

15,211

174

4.63


17,575

214

4.83


10,243

142

5.59


Other investments (e)

935

9

3.73


1,045

15

5.72


1,236

17

5.39


Total earning assets

169,206

2,079

4.86


171,366

2,142

4.87


170,023

2,043

4.67


Allowance for loan and lease losses

(1,401)




(1,486)




(1,505)




Accrued income and other assets

18,285




17,308




17,350




Discontinued assets

254




268




329




Total assets

$    186,344




$    187,456




$    186,197



Liabilities













Money market deposits

$       42,007

$              275

2.65 %


$       40,676

$              283

2.77 %


$       37,659

$              264

2.82 %


Demand deposits

57,460

310

2.19


57,653

341

2.35


56,137

357

2.56


Savings deposits

4,610

1

.06


4,635

1

.07


5,253

1

.07


Time deposits

16,625

167

4.09


17,641

196

4.43


14,430

160

4.45


Total interest-bearing deposits

120,702

753

2.53


120,605

821

2.71


113,479

782

2.77


Federal funds purchased and securities sold
   under repurchase agreements

100

1

3.94


84

1

3.99


106

1

4.03


Bank notes and other short-term borrowings

2,273

27

4.74


1,832

24

5.19


3,325

46

5.63


Long-term debt (f)

11,779

193

6.61


13,984

235

6.70


19,537

328

6.72


Total interest-bearing liabilities

134,854

974

2.92


136,505

1,081

3.15


136,447

1,157

3.41


Noninterest-bearing deposits

27,840




29,128




29,399




Accrued expense and other liabilities

4,764




4,823




5,373




Discontinued liabilities (f)

254




268




329




Total liabilities

$    167,712




$    170,724




$    171,548



Equity













Total equity

$       18,632




$       16,732




$       14,649




Total liabilities and equity

$    186,344




$    187,456




$    186,197



Interest rate spread (TE)



1.94 %




1.72 %




1.26 %

Net interest income (TE) and net interest margin (TE)


$           1,105

2.58 %



$           1,061

2.41 %



$              886

2.02 %

TE adjustment (b)


9




10




11



Net interest income, GAAP basis


$           1,096




$           1,051




$              875




(a)

Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.

(b)

Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024.   

(c)

For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)

Commercial and industrial average balances include $213 million, $216 million, and $211 million of assets from commercial credit cards for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

(e)

Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $42.7 billion, $41.8 billion, and $42.7 billion for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Yield based on the fair value of securities available for sale was 3.99%, 3.73%, and 2.50% for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

(f)

A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key's matched funds transfer pricing methodology to discontinued operations.

TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles.

 

Noninterest Expense

(Dollars in millions)






Three months ended


3/31/2025

12/31/2024

3/31/2024

Personnel (a)

$            680

$            734

$            674

Net occupancy

67

67

67

Computer processing

107

107

102

Business services and professional fees

40

55

41

Equipment

20

20

20

Operating lease expense

11

15

17

Marketing

21

33

19

Other expense

185

198

203

Total noninterest expense

$         1,131

$         1,229

$         1,143

Average full-time equivalent employees (b)

16,989

16,810

16,752



(a)

Additional detail provided in Personnel Expense table below.

(b)

The number of average full-time equivalent employees has not been adjusted for discontinued operations.

 

Personnel Expense

(Dollars in millions)






Three months ended


3/31/2025

12/31/2024

3/31/2024

Salaries and contract labor

$            405

$            418

$           389

Incentive and stock-based compensation

158

197

159

Employee benefits

109

119

126

Severance

8

—

—

Total personnel expense

$            680

$            734

$           674

 

Loan Composition

(Dollars in millions)











Change 3/31/2025 vs.


3/31/2025

12/31/2024

3/31/2024


12/31/2024

3/31/2024

Commercial and industrial (a)(b)

$         54,378

$         52,909

$         54,793


2.8 %

(.8) %

Commercial real estate:







Commercial mortgage

13,239

13,310

14,540


(.5)

(8.9)

Construction

2,929

2,936

3,013


(.2)

(2.8)

Total commercial real estate loans

16,168

16,246

17,553


(.5)

(7.9)

Commercial lease financing (b)

2,576

2,736

3,305


(5.8)

(22.1)

Total commercial loans

73,122

71,891

75,651


1.7

(3.3)

Residential — prime loans:







Real estate — residential mortgage

19,622

19,886

20,704


(1.3)

(5.2)

Home equity loans

6,154

6,358

6,905


(3.2)

(10.9)

Total residential — prime loans

25,776

26,244

27,609


(1.8)

(6.6)

Other consumer loans

5,000

5,167

5,690


(3.2)

(12.1)

Credit cards

911

958

935


(4.9)

(2.6)

Total consumer loans

31,687

32,369

34,234


(2.1)

(7.4)

Total loans (c), (d)

$       104,809

$       104,260

$       109,885


.5 %

(4.6) %



(a)

Loan balances include $218 million, $212 million, and $214 million of commercial credit card balances at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

(b)

Commercial and industrial includes receivables held as collateral for a secured borrowing of $192 million at March 31, 2025, $211 million at December 31, 2024 and $349 million at March 31, 2024. Commercial lease financing includes receivables held as collateral for a secured borrowing of $2 million, $3 million, and $6 million at March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)

Total loans exclude loans of $243 million at March 31, 2025, $257 million at December 31, 2024, and $313 million at March 31, 2024, related to the discontinued operations of the education lending business.

(d)

Accrued interest of $448 million, $456 million, and $508 million at March 31, 2025, December 31, 2024, and March 31, 2024, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

 

Loans Held for Sale Composition

(Dollars in millions)













Change 3/31/2025 vs.


3/31/2025

12/31/2024

3/31/2024


12/31/2024

3/31/2024

Commercial and industrial

$             252

$               88

$               —


186.4 %

N/M

Real estate — commercial mortgage

473

616

155


(23.2)

205.2

Real estate — residential mortgage

86

93

73


(7.5)

17.8

Total loans held for sale

$             811

$             797

$             228


1.8 %

255.7 %

 

Summary of Changes in Loans Held for Sale

(Dollars in millions)








1Q25

4Q24

3Q24

2Q24

1Q24

Balance at beginning of period

$            797

$         1,058

$            517

$            228

$            483

New originations

1,840

2,915

2,473

1,532

1,738

Transfers from (to) held to maturity, net

6

—

(16)

(1)

(105)

Loan sales

(1,695)

(3,039)

(1,889)

(1,234)

(1,893)

Loan draws (payments), net

(138)

(136)

(28)

(7)

4

Valuation and other adjustments

1

(1)

1

(1)

1

Balance at end of period

$            811

$            797

$         1,058

$            517

$            228

 

Summary of Loan and Lease Loss Experience From Continuing Operations

(Dollars in millions)






Three months ended


3/31/2025

12/31/2024

3/31/2024

Average loans outstanding

$ 104,354

$ 104,711

$ 111,034

Allowance for loan and lease losses at the beginning of the period

$     1,409

$     1,494

$     1,508

Loans charged off:




Commercial and industrial

62

84

62





Real estate — commercial mortgage

36

18

5

Real estate — construction

—

—

—

Total commercial real estate loans

36

18

5

Commercial lease financing

—

1

—

Total commercial loans

98

103

67

Real estate — residential mortgage

1

1

1

Home equity loans

1

—

1

Other consumer loans

14

15

16

Credit cards

12

12

12

Total consumer loans

28

28

30

Total loans charged off

126

131

97

Recoveries:




Commercial and industrial

10

12

8





Real estate — commercial mortgage

—

—

—

Real estate — construction

—

—

—

Total commercial real estate loans

—

—

—

Commercial lease financing

—

—

2

Total commercial loans

10

12

10

Real estate — residential mortgage

1

1

2

Home equity loans

1

—

1

Other consumer loans

2

2

2

Credit cards

2

2

1

Total consumer loans

6

5

6

Total recoveries

16

17

16

Net loan charge-offs

(110)

(114)

(81)

Provision (credit) for loan and lease losses

130

29

115

Allowance for loan and lease losses at end of period

$     1,429

$     1,409

$     1,542





Liability for credit losses on lending-related commitments at beginning of period

$       290

$       280

$       296

Provision (credit) for losses on lending-related commitments

(12)

10

(14)

Other

—

—

(1)

Liability for credit losses on lending-related commitments at end of period (a)

$       278

$       290

$       281





Total allowance for credit losses at end of period

$     1,707

$     1,699

$     1,823





Net loan charge-offs to average total loans

.43 %

.43 %

.29 %

Allowance for loan and lease losses to period-end loans

1.36

1.35

1.40

Allowance for credit losses to period-end loans

1.63

1.63

1.66

Allowance for loan and lease losses to nonperforming loans

208

186

234

Allowance for credit losses to nonperforming loans

249

224

277





Discontinued operations — education lending business:




Loans charged off

$           1

$           1

$           1

Recoveries

—

—

—

Net loan charge-offs

$         (1)

$         (1)

$         (1)



(a)

Included in "Accrued expense and other liabilities" on the balance sheet.

 

Asset Quality Statistics From Continuing Operations

(Dollars in millions)


1Q25

4Q24

3Q24

2Q24

1Q24

Net loan charge-offs

$       110

$       114

$       154

$         91

$         81

Net loan charge-offs to average total loans

.43 %

.43 %

.58 %

.34 %

.29 %

Allowance for loan and lease losses

$    1,429

$    1,409

$    1,494

$    1,547

$    1,542

Allowance for credit losses (a)

1,707

1,699

1,774

1,833

1,823

Allowance for loan and lease losses to period-end loans

1.36 %

1.35 %

1.42 %

1.44 %

1.40 %

Allowance for credit losses to period-end loans

1.63

1.63

1.68

1.71

1.66

Allowance for loan and lease losses to nonperforming loans

208

186

205

218

234

Allowance for credit losses to nonperforming loans

249

224

244

258

277

Nonperforming loans at period end

$       686

$       758

$       728

$       710

$       658

Nonperforming assets at period end

700

772

741

727

674

Nonperforming loans to period-end portfolio loans

.65 %

.73 %

.69 %

.66 %

.60 %

Nonperforming assets to period-end portfolio loans plus OREO and other
     nonperforming assets

.67

.74

.70

.68

.61



(a)

Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.

 

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

(Dollars in millions)


3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Commercial and industrial

$       288

$       322

$       365

$       358

$       360







Real estate — commercial mortgage

206

243

176

173

113

Real estate — construction

—

—

—

—

—

Total commercial real estate loans

206

243

176

173

113

Commercial lease financing

—

—

—

1

1

Total commercial loans

494

565

541

532

474

Real estate — residential mortgage

94

92

87

77

79

Home equity loans

87

89

90

91

95

Other Consumer loans

4

5

4

4

4

Credit cards

7

7

6

6

6

Total consumer loans

192

193

187

178

184

Total nonperforming loans (a)

686

758

728

710

658

OREO

14

14

13

17

16

Total nonperforming assets

$       700

$       772

$       741

$       727

$       674

Accruing loans past due 90 days or more

$         86

$         90

$       166

$       137

$       119

Accruing loans past due 30 through 89 days

281

206

184

282

242

Nonperforming assets from discontinued operations — education lending business 

1

2

2

3

2

Nonperforming loans to period-end portfolio loans

.65 %

.73 %

.69 %

.66 %

.60 %

Nonperforming assets to period-end portfolio loans plus OREO and other
     nonperforming assets

.67

.74

.70

.68

.61

 

Summary of Changes in Nonperforming Loans From Continuing Operations

(Dollars in millions)


1Q25

4Q24

3Q24

2Q24

1Q24

Balance at beginning of period

$          758

$          728

$          710

$          658

$          574

Loans placed on nonaccrual status

170

309

271

317

243

Charge-offs

(126)

(131)

(167)

(131)

(97)

Loans sold

—

(13)

(32)

(22)

(5)

Payments

(57)

(111)

(37)

(76)

(35)

Transfers to OREO

(2)

(2)

(1)

(1)

(2)

Loans returned to accrual status

(57)

(22)

(16)

(35)

(20)

Balance at end of period

$          686

$          758

$          728

$          710

$          658

 

Line of Business Results

(Dollars in millions)

















Change 1Q25 vs.


1Q25

4Q24

3Q24

2Q24

1Q24


4Q24

1Q24

Consumer Bank









Summary of operations









Total revenue (TE)

$             874

$             872

$             814

$             769

$             757


.2 %

15.5 %

Provision for credit losses

43

43

52

33

(2)


—

N/M

Noninterest expense

676

713

649

648

704


(5.2)

(4.0)

Net income (loss) attributable to Key

118

88

86

67

41


34.1

187.8

Average loans and leases

36,819

37,567

38,332

39,174

39,919


(2.0)

(7.8)

Average deposits

88,306

87,476

86,431

85,397

84,075


.9

5.0

Net loan charge-offs

52

63

54

45

44


(17.5)

18.2

Net loan charge-offs to average total loans

.57 %

.67 %

.56 %

.46 %

.44 %


(14.9)

29.5

Nonperforming assets at period end

$             201

$             201

$             195

$             190

$             196


—

2.6

Return on average allocated equity

15.24 %

10.85 %

10.34 %

7.93 %

4.69 %


40.5

224.9










Commercial Bank









Summary of operations









Total revenue (TE)

$             942

$             999

$             868

$             769

$             798


(5.7) %

18.0 %

Provision for credit losses

75

(3)

41

87

102


N/M

(26.5)

Noninterest expense

462

516

445

431

442


(10.5)

4.5

Net income (loss) attributable to Key

321

379

300

207

205


(15.3)

56.6

Average loans and leases

67,056

66,691

67,452

69,248

70,633


.5

(5.1)

Average loans held for sale

754

1,247

998

522

840


(39.5)

(10.2)

Average deposits

57,436

59,687

58,696

57,360

56,331


(3.8)

2.0

Net loan charge-offs

57

52

99

64

37


9.6

54.1

Net loan charge-offs to average total loans

.34 %

.31 %

.58 %

.37 %

.21 %


9.7

61.9

Nonperforming assets at period end

$             499

$             571

$             546

$             537

$             478


(12.6)

4.4

Return on average allocated equity

13.76 %

15.50 %

11.98 %

8.31 %

8.24 %


(11.2)

67.0


TE = Taxable Equivalent; N/M = Not Meaningful

 

Selected Items Impact on Earnings

(Dollars in millions, except per share amounts)


Pretax(a)


After-tax at marginal rate(a)

Quarter to date results

Amount


Net Income

EPS(c)(e)

Three months ended March 31, 2025





No items

$                  —


$                 —

$                 —

Three months ended December 31, 2024





Loss on sale of securities(b)

(915)


(657)

(0.66)

Scotiabank investment agreement valuation (other income)

(3)


(2)

—

FDIC special assessment (other expense)(d)

3


2

—

Three months ended September 30, 2024





Loss on sale of securities(b)

(918)


(737)

(0.77)

FDIC special assessment (other expense)(d)

6


5

—

Three months ended June 30, 2024





FDIC special assessment (other expense)(d)

(5)


(4)

—

Three months ended March 31, 2024





FDIC special assessment (other expense)(d)

(29)


(22)

(0.02)













(a)

Favorable (unfavorable) impact.

(b)

After-tax loss on sale of securities for the three months ended September 30, 2024 adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments recorded in the fourth quarter of 2024.

(c)

Impact to EPS reflected on a fully diluted basis.

(d)

In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC's deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. Amounts reflected for the three-months ended March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.

(e)

Earnings per share may not foot due to rounding.

 

(PRNewsfoto/KeyCorp)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/keycorp-reports-first-quarter-2025-net-income-of-370-million-or-33-per-diluted-common-share-302431397.html

SOURCE KeyCorp

FAQ

What were KeyCorp's (KEY) Q1 2025 earnings per share and revenue?

KeyCorp reported earnings of $0.33 per diluted share with revenue of $1.8 billion in Q1 2025, up 16% year-over-year.

How did KeyCorp's (KEY) net interest margin perform in Q1 2025?

KEY's net interest margin increased to 2.58%, up 17 basis points from the previous quarter and 56 basis points year-over-year.

What was KeyCorp's (KEY) loan performance in Q1 2025?

Commercial loans grew $1.2 billion from year-end, while average total loans decreased 6% year-over-year to $104.4 billion.

How did KeyCorp's (KEY) credit quality metrics change in Q1 2025?

Credit quality improved with nonperforming assets declining 9% and net charge-offs decreasing 4% quarter-over-quarter.

What was KeyCorp's (KEY) capital position in Q1 2025?

KEY maintained a strong Common Equity Tier 1 ratio of 11.8%, approximately 150 basis points higher than the previous year.
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Banks - Regional
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