EX-99.12a2q25earningsrelease.htmEX-99.1 Document
KEYCORP REPORTS SECOND QUARTER 2025 NET INCOME OF $387 MILLION,
OR $.35 PER DILUTED COMMON SHARE
Revenue of $1.8 billion, up 21% year-over-year; Significant positive operating leverage on both a total and fee basis year-over-year
Net interest income up 4% and net interest margin increased 8 bps quarter-over-quarter
Period-end loans up $1.6 billion quarter-over-quarter; Commercial loans up $3.3 billion or 5% year-to-date
Net charge-offs declined 8% quarter-over-quarter; Other credit metrics stable to improved
CLEVELAND, July 22, 2025 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $387 million, or $.35 per diluted common share, for the second quarter of 2025. For the first quarter of 2025, net income from continuing operations attributable to Key common shareholders was $370 million, or $.33 per diluted common share. For the second quarter of 2024, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $237 million, or $.25 per diluted common share, or adjusted net income of $241 million, or $.25 per diluted common share(a). Included in the second quarter of 2024 are $4 million, after-tax, of charges related to the FDIC special assessment(b).
Comments from Chairman and CEO, Chris Gorman
"Our second quarter results demonstrate continued strong momentum. Revenue was up 21% year-over-year driven by our clearly defined net interest income tailwinds and 10% growth in noninterest income, while expenses grew 7%. Sequentially, net interest income grew 4%. Credit quality continues to trend in a positive direction with overall credit migration improving for the sixth consecutive quarter.
Business activity with clients and prospects continues to accelerate. Client deposits and relationship households were up 2% year-over-year while deposit costs were managed below 2%. Period end commercial loans grew $2.1 billion in the second quarter. Assets under management reached a record $64 billion. Investment banking pipelines remain at historically elevated levels. In the second quarter we raised over $30 billion of capital on behalf of our clients. Commercial payments-related fees grew high single digits year-over-year.
We continue to make investments in people and technology that will drive future growth for our company. G1We remain on target to increase our front line bankers - investment bankers, middle market relationship managers, payments advisors, and wealth managers - by 10% in 2025.
I am energized by our momentum as we win and take share in the marketplace. I remain confident that we will continue to execute against our compelling organic growth opportunities.”
(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to "adjusted net income” and “adjusted earnings per share". 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 24 for more information on Selected Items Impact on Earnings.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 2
Selected Financial Highlights
Dollars in millions, except per share data
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Income (loss) from continuing operations attributable to Key common shareholders
$
387
$
370
$
237
4.6
%
63.3
%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
.35
.33
.25
6.1
40.0
Return on average tangible common equity from continuing operations (a)
11.09
%
11.24
%
10.39
%
N/A
N/A
Return on average total assets from continuing operations
.91
.88
.59
N/A
N/A
Common Equity Tier 1 ratio (b)
11.7
11.8
10.5
N/A
N/A
Book value at period end
$
15.32
$
14.89
$
13.09
2.9
17.0
Net interest margin (TE) from continuing operations
2.66
%
2.58
%
2.04
%
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)June 30, 2025 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable
INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Net interest income (TE)
$
1,150
$
1,105
$
899
4.1
%
27.9
%
Noninterest income
690
668
627
3.3
10.0
Total revenue (TE)
$
1,840
$
1,773
$
1,526
3.8
%
20.6
%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $1.15 billion for the second quarter of 2025 and the net interest margin was 2.66%. Compared to the second quarter of 2024, net interest income increased by $251 million, and the net interest margin increased by 62 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 repricing 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 variable-rate earning assets, and lower loan balances.
Compared to the first quarter of 2025, taxable-equivalent net interest income increased by $45 million, and the net interest margin increased by 8 basis points. These increases were driven by a decline in funding costs, including interest-bearing deposit costs, the redeployment of maturing low-yielding investments and swaps into higher-yielding investments, and growth in commercial and industrial loans. Net interest income also benefited from one additional day in the second quarter of 2025 compared to the first quarter of 2025.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 3
Noninterest Income
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Trust and investment services income
$
146
$
139
$
139
5.0
%
5.0
%
Investment banking and debt placement fees
178
175
126
1.7
41.3
Cards and payments income
85
82
85
3.7
—
Service charges on deposit accounts
73
69
66
5.8
10.6
Corporate services income
76
65
68
16.9
11.8
Commercial mortgage servicing fees
70
76
61
(7.9)
14.8
Corporate-owned life insurance income
32
33
34
(3.0)
(5.9)
Consumer mortgage income
15
13
16
15.4
(6.3)
Operating lease income and other leasing gains
14
9
21
55.6
(33.3)
Other income
1
7
21
(85.7)
(95.2)
Net securities gains (losses)
—
—
(10)
—
N/M
Total noninterest income
$
690
$
668
$
627
3.3
%
10.0
%
N/M = Not Meaningful
Compared to the second quarter of 2024, noninterest income increased by $63 million. The increase was driven by a $52 million increase in investment banking and debt placement fees reflecting higher syndications, commercial real estate, and equity issuance activity, and a $9 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances. We also continued to see momentum across wealth management and commercial payments, which partially offset a $20 million decrease in other income and a $7 million decrease in operating lease income and other leasing gains.
Compared to the first quarter of 2025, noninterest income increased by $22 million. The increase was driven by an $11 million increase in corporate services income reflecting higher loan, derivative and FX client activity, and a $7 million increase in trust and investment services income. The increase was partly offset by a $6 million decrease in commercial mortgage servicing fees.
Noninterest Expense
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Personnel expense
$
705
$
680
$
636
3.7
%
10.8
%
Net occupancy
69
67
66
3.0
4.5
Computer processing
107
107
101
—
5.9
Business services and professional fees
48
40
37
20.0
29.7
Equipment
21
20
20
5.0
5.0
Operating lease expense
10
11
17
(9.1)
(41.2)
Marketing
24
21
21
14.3
14.3
Other expense
170
185
181
(8.1)
(6.1)
Total noninterest expense
$
1,154
$
1,131
$
1,079
2.0
%
7.0
%
Compared to the second quarter of 2024, noninterest expense increased by $75 million. The increase was primarily driven by a $69 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, and continued investments in people. Business services and professional fees, and computer processing expenses increased primarily due to technology-related investments. These were partially offset by a $7 million decrease in operating lease expense.
Compared to the first quarter of 2025, noninterest expense increased by $23 million. The increase was primarily driven by a $25 million increase in personnel expense primarily related to incentive compensation associated with noninterest income growth, and continued investments in people. Higher business services and professional fees were driven by increases in technology-related investments. This was partially offset by a $15 million decrease in other expenses primarily due to lower fraud and other losses and FDIC insurance expense.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 4
BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Commercial and industrial (a)
$
55,604
$
53,746
$
54,599
3.5
%
1.8
%
Other commercial loans
18,708
18,619
20,500
.5
(8.7)
Total consumer loans
31,403
31,989
33,862
(1.8)
(7.3)
Total loans
$
105,715
$
104,354
$
108,961
1.3
%
(3.0)
%
(a)Commercial and industrial average loan balances include $218 million, $213 million, and $218 million of assets from commercial credit cards at June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
Average loans were $105.7 billion for the second quarter of 2025, a decrease of $3.2 billion compared to the second quarter of 2024. Average commercial loans declined by $787 million, primarily driven by a decrease in commercial real estate loans. Average consumer loans declined by $2.5 billion, reflective of broad-based declines across all loan categories.
Compared to the first quarter of 2025, average loans increased by $1.4 billion. Average commercial loans increased $1.9 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $586 million, reflective of the intentional run-off of low-yielding loans.
Average Deposits
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Non-time deposits
$
131,845
$
131,917
$
128,161
(.1)
%
2.9
%
Time deposits
15,601
16,625
16,019
(6.2)
(2.6)
Total deposits
$
147,446
$
148,542
$
144,180
(.7)
%
2.3
%
Cost of total deposits
1.99
%
2.06
%
2.28
%
N/A
N/A
N/A = Not Applicable
Average deposits totaled $147.4 billion for the second quarter of 2025, an increase of $3.3 billion compared to the year-ago quarter, reflecting growth in consumer deposits.
Compared to the first quarter of 2025, average deposits decreased by $1.1 billion, driven by a reduction in higher-cost commercial client balances and retail CDs. The rate paid on interest-bearing deposits declined by 9 basis points, and the overall cost of deposits declined by 7 basis points to 1.99%.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 5
ASSET QUALITY
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Net loan charge-offs
$
102
$
110
$
91
(7.3)
%
12.1
%
Net loan charge-offs to average total loans
.39
%
.43
%
.34
%
N/A
N/A
Nonperforming loans at period end
$
696
$
686
$
710
1.5
(2.0)
Nonperforming assets at period end
707
700
727
1.0
(2.8)
Allowance for loan and lease losses
1,446
1,429
1,547
1.2
(6.5)
Allowance for credit losses
1,743
1,707
1,833
2.1
(4.9)
Provision for credit losses
138
118
100
16.9
38.0
Allowance for loan and lease losses to nonperforming loans
208
%
208
%
218
%
N/A
N/A
Allowance for credit losses to nonperforming loans
250
249
258
N/A
N/A
N/A = Not Applicable
Key's provision for credit losses was $138 million, compared to $100 million in the second quarter of 2024 and $118 million in the first quarter of 2025. The increase from the year-ago quarter reflects higher net loan charge-offs and a larger reserve build. The increase from the prior quarter reflects a larger reserve build, partially offset by lower net charge-offs. This quarter, Key added $36 million to its allowance for credit losses to account for recent loan growth, changes in loan mix, and some deterioration in the macroeconomic outlook.
Net loan charge-offs for the second quarter of 2025 totaled $102 million, or 0.39% of average total loans. These results compare to $91 million, or 0.34%, for the second quarter of 2024 and $110 million, or 0.43%, for the first quarter of 2025. Key’s allowance for credit losses was $1.7 billion, or 1.64% of total period-end loans at June 30, 2025, compared to 1.71% at June 30, 2024, and 1.63% at March 31, 2025.
At June 30, 2025, Key’s nonperforming loans totaled $696 million, which represented 0.65% of period-end portfolio loans. These results compare to 0.66% at June 30, 2024, and 0.65% at March 31, 2025. Nonperforming assets at June 30, 2025, totaled $707 million, and represented 0.66% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.68% at June 30, 2024, and 0.67% at March 31, 2025.
CAPITAL
Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2025.
Capital Ratios
6/30/2025
3/31/2025
6/30/2024
Common Equity Tier 1 (a)
11.7
%
11.8
%
10.5
%
Tier 1 risk-based capital (a)
13.4
13.5
12.2
Total risk-based capital (a)
15.7
16.0
14.7
Tangible common equity to tangible assets (b)
7.8
7.4
5.2
Leverage (a)
10.3
10.2
9.1
(a)June 30, 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 second quarter of 2025. As shown in the preceding table, at June 30, 2025, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.7% and 13.4%, respectively.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 6
Summary of Changes in Common Shares Outstanding
In thousands
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Shares outstanding at beginning of period
1,111,986
1,106,786
942,776
.5
%
17.9
%
Shares issued under employee compensation plans (net of cancellations and returns)
467
5,200
424
(91.0)
10.1
Shares outstanding at end of period
1,112,453
1,111,986
943,200
—
%
17.9
%
Key declared a dividend in May of 2025 of $.205 per common share, payable in the second quarter of 2025.
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 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Revenue from continuing operations (TE)
Consumer Bank
$
912
$
871
$
758
4.7
%
20.3
%
Commercial Bank
974
942
768
3.4
26.8
Other (a)
(46)
(40)
0
(15.0)
N/M
Total
$
1,840
$
1,773
$
1,526
3.8
%
20.6
%
Income (loss) from continuing operations attributable to Key
Consumer Bank
$
122
$
116
$
59
5.2
%
106.8
%
Commercial Bank
349
321
206
8.7
69.4
Other (a)
(48)
(31)
8
(54.8)
(700.0)
Total
$
423
$
406
$
273
4.2
%
54.9
%
(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; N/M = Not Meaningful
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 7
Consumer Bank
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Summary of operations
Net interest income (TE)
$
676
$
646
$
523
4.6
%
29.3
%
Noninterest income
236
225
235
4.9
.4
Total revenue (TE)
912
871
758
4.7
20.3
Provision for credit losses
55
43
33
27.9
66.7
Noninterest expense
696
675
648
3.1
7.4
Income (loss) before income taxes (TE)
161
153
77
5.2
109.1
Allocated income taxes (benefit) and TE adjustments
39
37
18
5.4
116.7
Net income (loss) attributable to Key
$
122
$
116
$
59
5.2
%
106.8
%
Average balances
Loans and leases
$
36,137
$
36,819
$
39,174
(1.9)
%
(7.8)
%
Total assets
39,156
39,806
42,008
(1.6)
(6.8)
Deposits
88,002
88,306
85,397
(.3)
3.1
Assets under management at period end
$
64,244
$
61,053
$
57,602
5.2
%
11.5
%
TE = Taxable Equivalent
Additional Consumer Bank Data
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Noninterest income
Trust and investment services income
$
119
$
113
$
112
5.3
%
6.3
%
Service charges on deposit accounts
35
33
34
6.1
2.9
Cards and payments income
61
57
61
7.0
—
Consumer mortgage income
14
13
16
7.7
(12.5)
Other noninterest income
7
9
12
(22.2)
(41.7)
Total noninterest income
$
236
$
225
$
235
4.9
%
.4
%
Average deposit balances
Money market deposits
$
34,524
$
33,533
$
30,229
3.0
%
14.2
%
Demand deposits
22,784
22,771
22,291
.1
2.2
Savings deposits
4,406
4,392
4,791
.3
(8.0)
Time deposits
11,910
13,320
13,039
(10.6)
(8.7)
Noninterest-bearing deposits
14,378
14,290
15,047
.6
(4.4)
Total deposits
$
88,002
$
88,306
$
85,397
(.3)
%
3.1
%
Other data
Branches
943
945
946
Automated teller machines
1,166
1,176
1,199
Consumer Bank Summary of Operations (2Q25 vs. 2Q24)
•Key's Consumer Bank recorded net income attributable to Key of $122 million for the second quarter of 2025, compared to $59 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $153 million, or 29.3%, compared to the second quarter of 2024
•Average loans and leases decreased $3.0 billion, or 7.8%, from the second quarter of 2024, driven by broad-based declines across all loan categories
•Average deposits increased $2.6 billion, or 3.1%, from the second quarter of 2024, driven by growth in money market deposits and demand deposits
•Provision for credit losses increased $22 million compared to the second quarter of 2024, primarily driven by changes in reserve levels due to deterioration in the economic outlook
•Noninterest income increased $1 million from the year-ago quarter, driven by an increase in trust and investment services income, partially offset by a decrease in consumer mortgage income
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 8
•Noninterest expense increased $48 million from the year-ago quarter, primarily driven by higher support and overhead expense
Commercial Bank
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Summary of operations
Net interest income (TE)
$
556
$
534
$
411
4.1
%
35.3
%
Noninterest income
418
408
357
2.5
17.1
Total revenue (TE)
974
942
768
3.4
26.8
Provision for credit losses
84
75
87
12.0
(3.4)
Noninterest expense
449
462
431
(2.8)
4.2
Income (loss) before income taxes (TE)
441
405
250
8.9
76.4
Allocated income taxes and TE adjustments
92
84
44
9.5
109.1
Net income (loss) attributable to Key
$
349
$
321
$
206
8.7
%
69.4
%
Average balances
Loans and leases
$
69,087
$
67,056
$
69,248
3.0
%
(0.2)
%
Loans held for sale
707
754
522
(6.2)
35.4
Total assets
78,486
76,707
78,328
2.3
0.2
Deposits
55,886
57,436
57,360
(2.7)
%
(2.6)
%
TE = Taxable Equivalent
Additional Commercial Bank Data
Dollars in millions
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Noninterest income
Trust and investment services income
$
26
$
26
$
27
—
%
(3.7)
%
Investment banking and debt placement fees
179
175
126
2.3
42.1
Cards and payments income
21
21
21
—
—
Service charges on deposit accounts
38
35
31
8.6
22.6
Corporate services income
68
60
61
13.3
11.5
Commercial mortgage servicing fees
70
76
61
(7.9)
14.8
Operating lease income and other leasing gains
15
8
21
87.5
(28.6)
Other noninterest income
1
7
9
(85.7)
(88.9)
Total noninterest income
$
418
$
408
$
357
2.5
%
17.1
%
Commercial Bank Summary of Operations (2Q25 vs. 2Q24)
•Key's Commercial Bank recorded net income attributable to Key of $349 million for the second quarter of 2025 compared to $206 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $145 million, or 35.3%, compared to the second quarter of 2024
•Average loan and lease balances decreased $161 million, or 0.2%, compared to the second quarter of 2024, driven by a decline in commercial real estate loans and commercial lease financing
•Average deposit balances decreased $1.5 billion compared to the second quarter of 2024, driven by a reduction in higher-cost client balances
•Provision for credit losses decreased $3 million compared to the second quarter of 2024, driven by a lower reserve build as changes in the portfolio mix offset economic deterioration, as well as lower net loan charge-offs
•Noninterest income increased $61 million compared to the second quarter of 2024, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
•Noninterest expense increased $18 million compared to the second quarter of 2024, driven by higher support and overhead expense
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 9
*******************************************
KeyCorp's roots trace back 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 $185 billion at June 30, 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.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 10
CONTACTS:
ANALYSTS
MEDIA
Brian Mauney
Susan Donlan
216.689.0521
216.471.3133
Brian_Mauney@KeyBank.com
Susan_E_Donlan@KeyBank.com
Hannah Lewallen
Beth Strauss
216.471.4856
216.471.2787
Hannah_Lewallen@KeyBank.com
Beth_A_Strauss@KeyBank.com
Johnny Li
216.689.4221
Johnny_Li@KeyBank.com
INVESTOR RELATIONS:
KEY MEDIA NEWSROOM:
www.key.com/ir
www.key.com/newsroom
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 9:00 a.m. ET, on July 22, 2025. A replay of the call will be available on our website through July 22, 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 Reports Second Quarter 2025 Results
July 22, 2025
Page 11
KeyCorp
Second Quarter 2025
Financial Supplement
Page
12
Basis of Presentation
13
Financial Highlights
15
GAAP to Non-GAAP Reconciliation
17
Consolidated Balance Sheets
18
Consolidated Statements of Income
19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
21
Noninterest Expense
21
Personnel Expense
21
Loan Composition
21
Loans Held for Sale Composition
22
Summary of Changes in Loans Held for Sale
22
Summary of Loan and Lease Loss Experience From Continuing Operations
23
Asset Quality Statistics From Continuing Operations
23
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
23
Summary of Changes in Nonperforming Loans From Continuing Operations
24
Line of Business Results
24
Selected Items Impact on Earnings
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 12
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.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 13
Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
6/30/2025
3/31/2025
6/30/2024
Summary of operations
Net interest income (TE)
$
1,150
$
1,105
$
899
Noninterest income
690
668
627
Total revenue (TE)
1,840
1,773
1,526
Provision for credit losses
138
118
100
Noninterest expense
1,154
1,131
1,079
Income (loss) from continuing operations attributable to Key
423
406
273
Income (loss) from discontinued operations, net of taxes
2
(1)
1
Net income (loss) attributable to Key
425
405
274
Income (loss) from continuing operations attributable to Key common shareholders
387
370
237
Income (loss) from discontinued operations, net of taxes
2
(1)
1
Net income (loss) attributable to Key common shareholders
389
369
238
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
.35
$
.34
$
.25
Income (loss) from discontinued operations, net of taxes
—
—
—
Net income (loss) attributable to Key common shareholders (a)
.35
.34
.25
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
.35
.33
.25
Income (loss) from discontinued operations, net of taxes — assuming dilution
—
—
—
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
.35
.33
.25
Cash dividends declared
.205
.205
.205
Book value at period end
15.32
14.89
13.09
Tangible book value at period end
12.83
12.40
10.13
Market price at period end
17.42
15.99
14.21
Performance ratios
From continuing operations:
Return on average total assets
.91
%
.88
%
.59
%
Return on average common equity
9.26
9.30
7.96
Return on average tangible common equity (b)
11.09
11.24
10.39
Net interest margin (TE)
2.66
2.58
2.04
Cash efficiency ratio (b)
62.4
63.5
70.2
From consolidated operations:
Return on average total assets
.91
%
.88
%
.59
%
Return on average common equity
9.31
9.28
7.99
Return on average tangible common equity (b)
11.15
11.21
10.43
Net interest margin (TE)
2.66
2.58
2.04
Loan to deposit (c)
72.9
70.2
74.0
Capital ratios at period end
Key shareholders’ equity to assets
10.5
%
10.1
%
7.9
%
Key common shareholders’ equity to assets
9.2
8.8
6.6
Tangible common equity to tangible assets (b)
7.8
7.4
5.2
Common Equity Tier 1 (d)
11.7
11.8
10.5
Tier 1 risk-based capital (d)
13.4
13.5
12.2
Total risk-based capital (d)
15.7
16.0
14.7
Leverage (d)
10.3
10.2
9.1
Asset quality — from continuing operations
Net loan charge-offs
$
102
$
110
$
91
Net loan charge-offs to average loans
.39
%
.43
%
.34
%
Allowance for loan and lease losses
$
1,446
$
1,429
$
1,547
Allowance for credit losses
1,743
1,707
1,833
Allowance for loan and lease losses to period-end loans
1.36
%
1.36
%
1.44
%
Allowance for credit losses to period-end loans
1.64
1.63
1.71
Allowance for loan and lease losses to nonperforming loans
208
208
218
Allowance for credit losses to nonperforming loans
250
249
258
Nonperforming loans at period-end
$
696
$
686
$
710
Nonperforming assets at period-end
707
700
727
Nonperforming loans to period-end portfolio loans
.65
%
.65
%
.66
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.66
.67
.68
Trust assets
Assets under management
$
64,244
$
61,053
$
57,602
Other data
Average full-time equivalent employees
17,105
16,989
16,646
Branches
943
945
946
Taxable-equivalent adjustment
$
9
$
9
$
12
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 14
Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Six months ended
6/30/2025
6/30/2024
Summary of operations
Net interest income (TE)
$
2,255
$
1,785
Noninterest income
1,358
1,274
Total revenue (TE)
3,613
3,059
Provision for credit losses
256
201
Noninterest expense
2,285
2,222
Income (loss) from continuing operations attributable to Key
829
492
Income (loss) from discontinued operations, net of taxes
1
1
Net income (loss) attributable to Key
830
493
Income (loss) from continuing operations attributable to Key common shareholders
757
420
Income (loss) from discontinued operations, net of taxes
1
1
Net income (loss) attributable to Key common shareholders
758
421
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
.69
$
.45
Income (loss) from discontinued operations, net of taxes
—
—
Net income (loss) attributable to Key common shareholders (a)
.69
.45
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
.69
.45
Income (loss) from discontinued operations, net of taxes — assuming dilution
—
—
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
.69
.45
Cash dividends paid
.41
.41
Performance ratios
From continuing operations:
Return on average total assets
.90
%
.53
%
Return on average common equity
9.28
7.00
Return on average tangible common equity (b)
11.16
9.12
Net interest margin (TE)
2.62
2.03
Cash efficiency ratio (b)
63.0
72.1
From consolidated operations:
Return on average total assets
.90
%
.53
%
Return on average common equity
9.29
7.02
Return on average tangible common equity (b)
11.18
9.14
Net interest margin (TE)
2.62
2.03
Asset quality — from continuing operations
Net loan charge-offs
$
212
$
172
Net loan charge-offs to average total loans
.41
%
.31
%
Other data
Average full-time equivalent employees
17,047
16,699
Taxable-equivalent adjustment
18
23
(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)June 30, 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.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 15
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.
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
Six months ended
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)
$
19,484
$
19,003
$
14,789
Less: Intangible assets
2,770
2,774
2,793
Preferred Stock (a)
2,446
2,446
2,446
Tangible common equity (non-GAAP)
$
14,268
$
13,783
$
9,550
Total assets (GAAP)
$
185,499
$
188,691
$
187,450
Less: Intangible assets
2,770
2,774
2,793
Tangible assets (non-GAAP)
$
182,729
$
185,917
$
184,657
Tangible common equity to tangible assets ratio (non-GAAP)
7.81
%
7.41
%
5.17
%
Average tangible common equity
Average Key shareholders' equity (GAAP)
$
19,268
$
18,632
$
14,474
$
18,952
$
14,561
Less: Intangible assets (average)
2,772
2,777
2,796
2,774
2,798
Preferred stock (average)
2,500
2,500
2,500
2,500
2,500
Average tangible common equity (non-GAAP)
$
13,996
$
13,355
$
9,178
$
13,678
$
9,263
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)
$
387
$
370
$
237
$
757
$
420
Average tangible common equity (non-GAAP)
13,996
13,355
9,178
13,678
9,263
Return on average tangible common equity from continuing operations (non-GAAP)
11.09
%
11.24
%
10.39
%
11.16
%
9.12
%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)
$
389
$
369
$
238
$
758
$
421
Average tangible common equity (non-GAAP)
13,996
13,355
9,178
13,678
9,263
Return on average tangible common equity consolidated (non-GAAP)
11.15
%
11.21
%
10.43
%
11.18
%
9.14
%
Pre-provision net revenue
Net interest income (GAAP)
$
1,141
$
1,096
$
887
$
2,237
$
1,762
Plus: Taxable-equivalent adjustment
9
9
12
18
23
Noninterest income (GAAP)
690
668
627
1,358
1,274
Less: Noninterest expense (GAAP)
1,154
1,131
1,079
2,285
2,222
Pre-provision net revenue from continuing operations (non-GAAP)
$
686
$
642
$
447
$
1,328
$
837
Adjusted pre-provision net revenue
Pre-provision net revenue from continuing operations (non-GAAP)
$
686
$
642
$
447
$
1,328
$
837
Plus: Selected items(b)
—
—
5
—
34
Adjusted pre-provision net revenue from continuing operations (non-GAAP)
$
686
$
642
$
452
$
1,328
$
871
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 16
GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months ended
Six months ended
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Cash efficiency ratio
Noninterest expense (GAAP)
$
1,154
$
1,131
$
1,079
$
2,285
$
2,222
Less: Intangible asset amortization
5
5
7
10
15
Noninterest expense less intangible asset amortization (non-GAAP)
$
1,149
$
1,126
$
1,072
$
2,275
$
2,207
Net interest income (GAAP)
$
1,141
$
1,096
$
887
$
2,237
$
1,762
Plus: Taxable-equivalent adjustment
9
9
12
18
23
Net interest income TE (non-GAAP)
1,150
1,105
899
2,255
1,785
Noninterest income (GAAP)
690
668
627
1,358
1,274
Total taxable-equivalent revenue (non-GAAP)
$
1,840
$
1,773
$
1,526
$
3,613
$
3,059
Cash efficiency ratio (non-GAAP)
62.4
%
63.5
%
70.2
%
63.0
%
72.1
%
Noninterest expense adjusted for selected items
Noninterest expense (GAAP)
$
1,154
$
1,131
$
1,079
$
2,285
$
2,222
Plus: Selected items(b)
—
—
(5)
—
(34)
Noninterest expense adjusted for selected items (non-GAAP)
$
1,154
$
1,131
$
1,074
$
2,285
$
2,188
Adjusted income (loss) available from continuing operations attributable to Key common shareholders
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)
$
387
$
370
$
237
$
757
$
420
Plus: Selected items (net of tax)(b)
—
—
4
—
26
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)
$
387
$
370
$
241
$
757
$
446
Diluted earnings per common share (EPS) - adjusted
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)
$
.35
$
.33
$
.25
$
.69
$
.45
Plus: EPS impact of selected items(b)
—
—
—
—
.02
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)
$
.35
$
.33
$
.25
$
.69
$
.47
(a)Net of capital surplus.
(b)Additional detail provided in Selected Items table on page 24.
GAAP = U.S. generally accepted accounting principles
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 17
Consolidated Balance Sheets
(Dollars in millions)
6/30/2025
3/31/2025
6/30/2024
Assets
Loans
$
106,389
$
104,809
$
107,078
Loans held for sale
530
811
517
Securities available for sale
40,669
40,751
37,460
Held-to-maturity securities
6,914
7,160
7,968
Trading account assets
1,374
1,296
1,219
Short-term investments
11,564
15,349
15,536
Other investments
1,058
1,050
1,259
Total earning assets
168,498
171,226
171,037
Allowance for loan and lease losses
(1,446)
(1,429)
(1,547)
Cash and due from banks
1,766
1,909
1,326
Premises and equipment
599
602
631
Goodwill
2,752
2,752
2,752
Other intangible assets
18
22
41
Corporate-owned life insurance
4,423
4,404
4,382
Accrued income and other assets
8,654
8,958
8,532
Discontinued assets
235
247
296
Total assets
$
185,499
$
188,691
$
187,450
Liabilities
Deposits in domestic offices:
Interest-bearing deposits
$
119,230
$
122,283
$
117,570
Noninterest-bearing deposits
27,675
28,454
28,150
Total deposits
146,905
150,737
145,720
Federal funds purchased and securities sold under repurchase agreements
20
22
25
Bank notes and other short-term borrowings
2,754
2,328
5,292
Accrued expense and other liabilities
4,273
4,209
4,755
Long-term debt
12,063
12,392
16,869
Total liabilities
166,015
169,688
172,661
Equity
Preferred stock
2,500
2,500
2,500
Common shares
1,257
1,257
1,257
Capital surplus
5,971
5,946
6,185
Retained earnings
14,886
14,724
15,706
Treasury stock, at cost
(2,629)
(2,637)
(5,715)
Accumulated other comprehensive income (loss)
(2,501)
(2,787)
(5,144)
Key shareholders’ equity
19,484
19,003
14,789
Total liabilities and equity
$
185,499
$
188,691
$
187,450
Common shares outstanding (000)
1,112,453
1,111,986
943,200
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 18
Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Six months ended
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Interest income
Loans
$
1,443
$
1,401
$
1,524
$
2,844
$
3,062
Loans held for sale
11
14
8
25
22
Securities available for sale
411
392
259
803
491
Held-to-maturity securities
61
63
73
124
148
Trading account assets
16
17
16
33
30
Short-term investments
157
174
192
331
334
Other investments
8
9
16
17
33
Total interest income
2,107
2,070
2,088
4,177
4,120
Interest expense
Deposits
730
753
817
1,483
1,599
Federal funds purchased and securities sold under repurchase agreements
4
1
1
5
2
Bank notes and other short-term borrowings
34
27
51
61
97
Long-term debt
198
193
332
391
660
Total interest expense
966
974
1,201
1,940
2,358
Net interest income
1,141
1,096
887
2,237
1,762
Provision for credit losses
138
118
100
256
201
Net interest income after provision for credit losses
1,003
978
787
1,981
1,561
Noninterest income
Trust and investment services income
146
139
139
285
275
Investment banking and debt placement fees
178
175
126
353
296
Cards and payments income
85
82
85
167
162
Service charges on deposit accounts
73
69
66
142
129
Corporate services income
76
65
68
141
137
Commercial mortgage servicing fees
70
76
61
146
117
Corporate-owned life insurance income
32
33
34
65
66
Consumer mortgage income
15
13
16
28
30
Operating lease income and other leasing gains
14
9
21
23
45
Other income
1
7
21
8
30
Net securities gains (losses)
—
—
(10)
—
(13)
Total noninterest income
690
668
627
1,358
1,274
Noninterest expense
Personnel
705
680
636
1,385
1,310
Net occupancy
69
67
66
136
133
Computer processing
107
107
101
214
203
Business services and professional fees
48
40
37
88
78
Equipment
21
20
20
41
40
Operating lease expense
10
11
17
21
34
Marketing
24
21
21
45
40
Other expense
170
185
181
355
384
Total noninterest expense
1,154
1,131
1,079
2,285
2,222
Income (loss) from continuing operations before income taxes
539
515
335
1,054
613
Income taxes (benefit)
116
109
62
225
121
Income (loss) from continuing operations
423
406
273
829
492
Income (loss) from discontinued operations, net of taxes
2
(1)
1
1
1
Net income (loss)
$
425
$
405
$
274
$
830
$
493
Income (loss) from continuing operations attributable to Key common shareholders
$
387
$
370
$
237
$
757
$
420
Net income (loss) attributable to Key common shareholders
389
369
238
758
421
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
.35
$
.34
$
.25
$
.69
$
.45
Income (loss) from discontinued operations, net of taxes
—
—
—
—
—
Net income (loss) attributable to Key common shareholders (a)
.35
.34
.25
.69
.45
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders
$
.35
$
.33
$
.25
$
.69
$
.45
Income (loss) from discontinued operations, net of taxes
—
—
—
—
—
Net income (loss) attributable to Key common shareholders (a)
.35
.33
.25
.69
.45
Cash dividends declared per common share
$
.205
$
.205
$
.205
$
.410
$
.410
Weighted-average common shares outstanding (000)
1,100,033
1,096,654
931,726
1,098,453
930,776
Effect of common share options and other stock awards(b)
7,177
9,486
6,761
8,331
7,040
Weighted-average common shares and potential common shares outstanding (000) (c)
1,107,210
1,106,140
938,487
1,106,784
937,816
(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.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Second Quarter 2025
First Quarter 2025
Second 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)
$
55,604
$
838
6.04
%
$
53,746
$
800
6.04
%
$
54,599
$
860
6.34
%
Real estate — commercial mortgage
13,311
200
6.02
13,061
192
5.96
14,287
217
6.10
Real estate — construction
2,873
50
6.95
2,905
49
6.87
3,020
56
7.51
Commercial lease financing
2,524
22
3.59
2,653
23
3.52
3,193
28
3.46
Total commercial loans
74,312
1,110
5.99
72,365
1,064
5.96
75,099
1,161
6.22
Real estate — residential mortgage
19,446
162
3.34
19,737
165
3.33
20,515
169
3.30
Home equity loans
6,091
86
5.63
6,248
86
5.60
6,817
102
5.98
Other consumer loans
4,946
63
5.09
5,087
63
5.01
5,597
70
5.00
Credit cards
920
31
13.44
917
32
14.04
933
34
14.63
Total consumer loans
31,403
342
4.36
31,989
346
4.35
33,862
375
4.44
Total loans
105,715
1,452
5.51
104,354
1,410
5.47
108,961
1,536
5.66
Loans held for sale
770
11
5.72
815
14
6.70
599
8
5.42
Securities available for sale (b), (e)
40,714
411
3.76
39,321
392
3.70
36,764
259
2.42
Held-to-maturity securities (b)
7,038
61
3.46
7,274
63
3.46
8,123
73
3.59
Trading account assets
1,259
16
5.32
1,296
17
5.20
1,231
16
5.38
Short-term investments
13,489
157
4.67
15,211
174
4.63
13,729
192
5.62
Other investments (e)
1,015
8
3.41
935
9
3.73
1,234
16
5.19
Total earning assets
170,000
2,116
4.90
169,206
2,079
4.86
170,641
2,100
4.77
Allowance for loan and lease losses
(1,424)
(1,401)
(1,534)
Accrued income and other assets
18,224
18,285
17,476
Discontinued assets
239
254
305
Total assets
$
187,039
$
186,344
$
186,888
Liabilities
Money market deposits
$
42,586
$
276
2.60
%
$
42,007
$
275
2.65
%
$
39,364
$
290
2.97
%
Demand deposits
57,155
309
2.17
57,460
310
2.19
54,629
340
2.50
Savings deposits
4,631
1
.06
4,610
1
.06
5,189
2
.19
Time deposits
15,601
144
3.70
16,625
167
4.09
16,019
185
4.64
Total interest-bearing deposits
119,973
730
2.44
120,702
753
2.53
115,201
817
2.85
Federal funds purchased and securities sold under repurchase agreements
415
4
4.28
100
1
3.94
124
1
4.76
Bank notes and other short-term borrowings
3,288
34
4.27
2,273
27
4.74
3,617
51
5.57
Long-term debt (f)
12,088
198
6.55
11,779
193
6.61
19,219
332
6.91
Total interest-bearing liabilities
135,764
966
2.86
134,854
974
2.92
138,161
1,201
3.49
Noninterest-bearing deposits
27,473
27,840
28,979
Accrued expense and other liabilities
4,295
4,764
4,969
Discontinued liabilities (f)
239
254
305
Total liabilities
$
167,771
$
167,712
$
172,414
Equity
Total equity
$
19,268
$
18,632
$
14,474
Total liabilities and equity
$
187,039
$
186,344
$
186,888
Interest rate spread (TE)
2.04
%
1.94
%
1.28
%
Net interest income (TE) and net interest margin (TE)
$
1,150
2.66
%
$
1,105
2.58
%
$
899
2.04
%
TE adjustment (b)
9
9
12
Net interest income, GAAP basis
$
1,141
$
1,096
$
887
(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 June 30, 2025, March 31, 2025, and June 30, 2024.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $218 million, $213 million, and $218 million of assets from commercial credit cards for the three months ended June 30, 2025, March 31, 2025, and June 30, 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 $43.8 billion, $42.7 billion, and $42.8 billion for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Yield based on the fair value of securities available for sale was 4.03%, 3.99%, and 2.82% for the three months ended June 30, 2025, March 31, 2025, and June 30, 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.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 20
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Six months ended June 30, 2025
Six months ended June 30, 2024
Average
Yield/
Average
Yield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$
54,680
$
1,638
6.04
%
$
54,909
$
1,714
6.28
%
Real estate — commercial mortgage
13,187
392
5.99
14,562
446
6.16
Real estate — construction
2,889
99
6.91
3,030
113
7.51
Commercial lease financing
2,588
46
3.55
3,269
55
3.34
Total commercial loans
73,344
2,175
5.98
75,770
2,328
6.18
Real estate — residential mortgage
19,591
327
3.34
20,664
340
3.30
Home equity loans
6,169
172
5.62
6,921
206
5.98
Other consumer loans
5,016
126
5.05
5,699
142
5.00
Credit cards
919
62
13.74
943
69
14.78
Total consumer loans
31,695
687
4.35
34,227
757
4.44
Total loans
105,039
2,862
5.49
109,997
3,085
5.64
Loans held for sale
792
25
6.23
744
22
5.86
Securities available for sale (b), (e)
40,021
803
3.73
36,926
491
2.29
Held-to-maturity securities (b)
7,156
124
3.46
8,273
148
3.58
Trading account assets
1,277
33
5.26
1,171
30
5.30
Short-term investments
14,345
331
4.65
11,986
334
5.61
Other investments (e)
975
17
3.57
1,235
33
5.29
Total earning assets
169,605
4,195
4.88
170,332
4,143
4.72
Allowance for loan and lease losses
(1,413)
(1,519)
Accrued income and other assets
18,254
17,412
Discontinued assets
246
317
Total assets
$
186,692
$
186,542
Liabilities
Money market deposits
$
42,298
$
551
2.63
%
$
38,512
$
554
2.89
%
Other demand deposits
57,307
619
2.18
55,383
697
2.53
Savings deposits
4,620
2
.06
5,221
3
.13
Time deposits
16,110
311
3.90
15,225
345
4.55
Total interest-bearing deposits
120,335
1,483
2.49
114,341
1599
2.81
Federal funds purchased and securities sold under repurchase agreements
258
5
4.22
115
2
4.42
Bank notes and other short-term borrowings
2,784
61
4.47
3,471
97
5.60
Long-term debt (f)
11,934
391
6.58
19,378
660
6.81
Total interest-bearing liabilities
135,311
1,940
2.89
137,305
2,358
3.45
Noninterest-bearing deposits
27,655
29,189
Accrued expense and other liabilities
4,528
5,170
Discontinued liabilities (f)
246
317
Total liabilities
$
167,740
$
171,981
Equity
Total equity
18,952
14,561
Total liabilities and equity
$
186,692
$
186,542
Interest rate spread (TE)
1.99
%
1.27
%
Net interest income (TE) and net interest margin (TE)
$
2,255
2.62
%
$
1,785
2.03
%
TE adjustment (b)
18
23
Net interest income, GAAP basis
$
2,237
$
1,762
(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 six months ended June 30, 2025, and June 30, 2024, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $216 million and $214 million of assets from commercial credit cards for the six months ended June 30, 2025, and June 30, 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 $43.2 billion and $42.8 billion for the six months ended June 30, 2025, and June 30, 2024, respectively. Yield based on the fair value of securities available for sale was 4.01% and 2.66% for the six months ended June 30, 2025, and June 30, 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
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 21
Noninterest Expense
(Dollars in millions)
Three months ended
Six months ended
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Personnel (a)
$
705
$
680
$
636
$
1,385
$
1,310
Net occupancy
69
67
66
136
133
Computer processing
107
107
101
214
203
Business services and professional fees
48
40
37
88
78
Equipment
21
20
20
41
40
Operating lease expense
10
11
17
21
34
Marketing
24
21
21
45
40
Other expense
170
185
181
355
384
Total noninterest expense
$
1,154
$
1,131
$
1,079
$
2,285
$
2,222
Average full-time equivalent employees (b)
17,105
16,989
16,646
17,047
16,699
(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
Six months ended
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Salaries and contract labor
$
427
$
405
$
394
$
832
$
783
Incentive and stock-based compensation
168
158
143
326
302
Employee benefits
108
109
98
217
224
Severance
2
8
1
10
1
Total personnel expense
$
705
$
680
$
636
$
1,385
$
1,310
Loan Composition
(Dollars in millions)
Change 6/30/2025 vs.
6/30/2025
3/31/2025
6/30/2024
3/31/2025
6/30/2024
Commercial and industrial (a)(b)
$
56,058
$
54,378
$
53,129
3.1
%
5.5
%
Commercial real estate:
Commercial mortgage
13,862
13,239
14,218
4.7
(2.5)
Construction
2,830
2,929
3,077
(3.4)
(8.0)
Total commercial real estate loans
16,692
16,168
17,295
3.2
(3.5)
Commercial lease financing (b)
2,472
2,576
3,101
(4.0)
(20.3)
Total commercial loans
75,222
73,122
73,525
2.9
2.3
Real estate — residential mortgage
19,330
19,622
20,380
(1.5)
(5.2)
Home equity loans
6,023
6,154
6,729
(2.1)
(10.5)
Other consumer loans
4,881
5,000
5,514
(2.4)
(11.5)
Credit cards
933
911
930
2.4
.3
Total consumer loans
31,167
31,687
33,553
(1.6)
(7.1)
Total loans (c), (d)
$
106,389
$
104,809
$
107,078
1.5
%
(.6)
%
(a)Loan balances include $220 million, $218 million, and $217 million of commercial credit card balances at June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $192 million at March 31, 2025 and $285 million at June 30, 2024. Commercial lease financing includes receivables held as collateral for a secured borrowing of $2 million, $2 million, and $5 million at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $230 million at June 30, 2025, $243 million at March 31, 2025, and $291 million at June 30, 2024, related to the discontinued operations of the education lending business.
(d)Accrued interest of $465 million, $448 million, and $502 million at June 30, 2025, March 31, 2025, and June 30, 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 6/30/2025 vs.
6/30/2025
3/31/2025
6/30/2024
3/31/2025
6/30/2024
Commercial and industrial
$
158
$
252
$
72
(37.3)
%
119.4
%
Real estate — commercial mortgage
290
473
354
(38.7)
(18.1)
Real estate — residential mortgage
82
86
91
(4.7)
(9.9)
Total loans held for sale
$
530
$
811
$
517
(34.6)
%
2.5
%
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 22
Summary of Changes in Loans Held for Sale
(Dollars in millions)
2Q25
1Q25
4Q24
3Q24
2Q24
Balance at beginning of period
$
811
$
797
$
1,058
$
517
$
228
New originations
1,806
1,840
2,915
2,473
1,532
Transfers from (to) held to maturity, net
(71)
6
—
(16)
(1)
Loan sales
(2,012)
(1,695)
(3,039)
(1,889)
(1,234)
Loan draws (payments), net
(1)
(138)
(136)
(28)
(7)
Valuation and other adjustments
(3)
1
(1)
1
(1)
Balance at end of period
$
530
$
811
$
797
$
1,058
$
517
Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months ended
Six months ended
6/30/2025
3/31/2025
6/30/2024
6/30/2025
6/30/2024
Average loans outstanding
$
105,715
$
104,354
$
108,961
$
105,039
$
109,997
Allowance for loan and lease losses at the beginning of the period
$
1,429
$
1,409
$
1,542
$
1,409
$
1,508
Loans charged off:
Commercial and industrial
94
62
86
156
148
Real estate — commercial mortgage
6
36
10
42
15
Real estate — construction
—
—
—
—
—
Total commercial real estate loans
6
36
10
42
15
Commercial lease financing
2
—
6
2
6
Total commercial loans
102
98
102
200
169
Real estate — residential mortgage
—
1
1
1
2
Home equity loans
—
1
—
1
1
Other consumer loans
13
14
16
27
32
Credit cards
12
12
12
24
24
Total consumer loans
25
28
29
53
59
Total loans charged off
127
126
131
253
228
Recoveries:
Commercial and industrial
19
10
31
29
39
Real estate — commercial mortgage
1
—
1
1
1
Real estate — construction
—
—
—
—
—
Total commercial real estate loans
1
—
1
1
1
Commercial lease financing
—
—
3
—
5
Total commercial loans
20
10
35
30
45
Real estate — residential mortgage
1
1
1
2
3
Home equity loans
1
1
—
2
1
Other consumer loans
2
2
2
4
4
Credit cards
1
2
2
3
3
Total consumer loans
5
6
5
11
11
Total recoveries
25
16
40
41
56
Net loan charge-offs
(102)
(110)
(91)
(212)
(172)
Provision (credit) for loan and lease losses
119
130
96
249
211
Allowance for loan and lease losses at end of period
$
1,446
$
1,429
$
1,547
$
1,446
$
1,547
Liability for credit losses on lending-related commitments at beginning of period
$
278
$
290
$
281
$
290
$
296
Provision (credit) for losses on lending-related commitments
19
(12)
4
7
(10)
Other
—
—
1
—
—
Liability for credit losses on lending-related commitments at end of period (a)
$
297
$
278
$
286
$
297
$
286
Total allowance for credit losses at end of period
$
1,743
$
1,707
$
1,833
$
1,743
$
1,833
Net loan charge-offs to average total loans
.39
%
.43
%
.34
%
.41
%
.31
%
Allowance for loan and lease losses to period-end loans
1.36
1.36
1.44
1.36
1.44
Allowance for credit losses to period-end loans
1.64
1.63
1.71
1.64
1.71
Allowance for loan and lease losses to nonperforming loans
208
208
218
208
218
Allowance for credit losses to nonperforming loans
250
249
258
250
258
Discontinued operations — education lending business:
Loans charged off
$
1
$
1
$
1
$
1
$
2
Recoveries
—
—
1
—
1
Net loan charge-offs
$
(1)
$
(1)
$
—
$
(1)
$
(1)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 23
Asset Quality Statistics From Continuing Operations
(Dollars in millions)
2Q25
1Q25
4Q24
3Q24
2Q24
Net loan charge-offs
$
102
$
110
$
114
$
154
$
91
Net loan charge-offs to average total loans
.39
%
.43
%
.43
%
.58
%
.34
%
Allowance for loan and lease losses
$
1,446
$
1,429
$
1,409
$
1,494
$
1,547
Allowance for credit losses (a)
1,743
1,707
1,699
1,774
1,833
Allowance for loan and lease losses to period-end loans
1.36
%
1.36
%
1.35
%
1.42
%
1.44
%
Allowance for credit losses to period-end loans
1.64
1.63
1.63
1.68
1.71
Allowance for loan and lease losses to nonperforming loans
208
208
186
205
218
Allowance for credit losses to nonperforming loans
250
249
224
244
258
Nonperforming loans at period end
$
696
$
686
$
758
$
728
$
710
Nonperforming assets at period end
707
700
772
741
727
Nonperforming loans to period-end portfolio loans
.65
%
.65
%
.73
%
.69
%
.66
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.66
.67
.74
.70
.68
(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)
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
Commercial and industrial
$
280
$
288
$
322
$
365
$
358
Real estate — commercial mortgage
226
206
243
176
173
Real estate — construction
—
—
—
—
—
Total commercial real estate loans
226
206
243
176
173
Commercial lease financing
—
—
—
—
1
Total commercial loans
506
494
565
541
532
Real estate — residential mortgage
95
94
92
87
77
Home equity loans
84
87
89
90
91
Other Consumer loans
4
4
5
4
4
Credit cards
7
7
7
6
6
Total consumer loans
190
192
193
187
178
Total nonperforming loans (a)
696
686
758
728
710
OREO
11
14
14
13
17
Total nonperforming assets
$
707
$
700
$
772
$
741
$
727
Accruing loans past due 90 days or more
$
74
$
86
$
90
$
166
$
137
Accruing loans past due 30 through 89 days
266
281
206
184
282
Nonperforming assets from discontinued operations — education lending business
2
1
2
2
3
Nonperforming loans to period-end portfolio loans
.65
%
.65
%
.73
%
.69
%
.66
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.66
.67
.74
.70
.68
Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
2Q25
1Q25
4Q24
3Q24
2Q24
Balance at beginning of period
$
686
$
758
$
728
$
710
$
658
Loans placed on nonaccrual status
233
170
309
271
317
Charge-offs
(127)
(126)
(131)
(167)
(131)
Loans sold
—
—
(13)
(32)
(22)
Payments
(74)
(57)
(111)
(37)
(76)
Transfers to OREO
(1)
(2)
(2)
(1)
(1)
Loans returned to accrual status
(21)
(57)
(22)
(16)
(35)
Balance at end of period
$
696
$
686
$
758
$
728
$
710
KeyCorp Reports Second Quarter 2025 Results
July 22, 2025
Page 24
Line of Business Results
(Dollars in millions)
Change 2Q25 vs.
2Q25
1Q25
4Q24
3Q24
2Q24
1Q25
2Q24
Consumer Bank
Summary of operations
Total revenue (TE)
$
912
$
871
$
865
$
800
$
758
4.7
%
20.3
%
Provision for credit losses
55
43
43
52
33
27.9
66.7
Noninterest expense
696
675
713
649
648
3.1
7.4
Net income (loss) attributable to Key
122
116
83
75
59
5.2
106.8
Average loans and leases
36,137
36,819
37,567
38,332
39,174
(1.9)
(7.8)
Average deposits
88,002
88,306
87,476
86,431
85,397
(.3)
3.1
Net loan charge-offs
40
52
63
54
45
(23.1)
(11.1)
Net loan charge-offs to average total loans
.44
%
.57
%
.67
%
.56
%
.46
%
(22.8)
(4.3)
Nonperforming assets at period end
$
196
$
201
$
201
$
195
$
190
(2.5)
3.2
Return on average allocated equity
16.20
%
15.15
%
10.24
%
9.01
%
6.98
%
6.9
132.1
Commercial Bank
Summary of operations
Total revenue (TE)
$
974
$
942
$
1,001
$
866
$
768
3.4
%
26.8
%
Provision for credit losses
84
75
(3)
41
87
12.0
(3.4)
Noninterest expense
449
462
515
444
431
(2.8)
4.2
Net income (loss) attributable to Key
349
321
381
299
206
8.7
69.4
Average loans and leases
69,087
67,056
66,691
67,452
69,248
3.0
(.2)
Average loans held for sale
707
754
1,247
998
522
(6.2)
35.4
Average deposits
55,886
57,436
59,687
58,696
57,360
(2.7)
(2.6)
Net loan charge-offs
62
57
52
99
64
8.8
(3.1)
Net loan charge-offs to average total loans
.36
%
.34
%
.31
%
.58
%
.37
%
5.9
(2.7)
Nonperforming assets at period end
$
511
$
499
$
571
$
546
$
537
2.4
(4.8)
Return on average allocated equity
14.45
%
13.77
%
15.58
%
11.94
%
8.27
%
4.9
74.7
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 June 30, 2025
No items
$
—
$
—
$
—
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)
Year to date results
Six months ended June 30, 2025
No items
$
—
$
—
$
—
Six months ended June 30, 2024
FDIC special assessment (other expense)(d)
(34)
(26)
(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.
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor