KeyCorp (KEY)

KeyCorp reported third-quarter 2026 net income from continuing operations attributable to common shareholders of $537 million, or $0.51 per diluted share, on 20 October 2026 1. Total revenue was $2,044 million, up 8.4 percent from a year earlier 1.

Net interest income, the gap between what a bank earns on loans and securities and what it pays on deposits, was $1,300 million 1. The net interest margin, that gap as a share of earning assets, was 2.95 percent 1. Investment banking and debt placement fees were $214 million, against $169 million in the second quarter 1.

Credit quality improved 1. Net loan charge-offs, loans written off as lost, were $89 million, against $114 million a year earlier 1.

The quarterly report says Key closed its acquisition of Clearwater UK, an advisory firm for mid-sized company deals, and repurchased $320 million of its common shares in the quarter 2. It also tightened its outlook for 2026 2.

On 2 November 2026 KeyCorp issued $1 billion of 5.889 percent senior notes due 2032, a debt sale it reported to the SEC 4.

KeyCorp was organized in 1958 under Ohio law and is based in Cleveland 3. It is the holding company for KeyBank National Association, which provides most of its banking services 3. At the end of 2025 it had total assets of about $184.4 billion and 940 full-service branches in 15 states 3.

The last three years were uneven 3. Net income from continuing operations attributable to common shareholders was $821 million in 2023, a loss of $306 million in 2024 and $1,685 million in 2025 3.

The 2024 loss came from a deliberate clean-up of the securities portfolio 3. Key sold about $10.0 billion of lower-yielding mortgage-backed securities and reinvested the money at higher yields in the second half of 2024 3. The sale cost a $1.8 billion loss in noninterest income, the fees and other revenue outside interest 3.

The payoff showed in 2025 3. Net interest income rose $861 million from 2024 and the net interest margin rose 53 basis points, as deposits got cheaper and maturing low-yield assets were reinvested at higher rates 3.

Fees grew too 3. Investment banking and debt placement fees rose from $688 million in 2024 to $780 million in 2025 3. Average loans slipped to $105.7 billion from $107.7 billion, because Key let low-yielding consumer loans run off on purpose 3.

In August 2024 Canada’s Bank of Nova Scotia (Scotiabank) agreed to invest in Key 3. It paid about $821 million for 47,829,359 shares on 30 August 2024 and about $2.0 billion for 115,042,316 more on 27 December 2024, after bank regulators approved 3.

Scotiabank now owns about 14.9 percent of Key’s common shares 3. American Banker reported that an activist investor, HoldCo Asset Management, pressed Key in 2025 to stop bank acquisitions 5.

The board did not declare a moratorium, but Chairman and CEO Chris Gorman told investors in December that management would abstain from bank deals and return capital to shareholders 5.

Consumer Bank

The Consumer Bank serves individuals and small businesses across Key’s 15-state branch footprint and through a digital brand 2. It offers deposit and investment products, personal finance services and lending 2.

In the third quarter it earned $211 million, up from $208 million a year earlier, on taxable-equivalent revenue of $1,049 million 2. Its average loans fell 7.9 percent to $32,596 million as consumer loans kept running off 2.

Commercial Bank

The Commercial Bank has two parts 2. The Commercial operating segment serves mid-sized businesses within the 15-state footprint, and the Institutional segment lends nationally to large corporate and institutional clients 2.

It is also a significant, national commercial real estate lender and a master and special servicer of commercial mortgages 2.

In the third quarter it earned $516 million, up from $440 million, on revenue of $1,201 million 2. Average loans rose 11.7 percent to $78,556 million, led by commercial and industrial loans 2.

Fee businesses

Key calls investment banking, commercial payments and wealth management its priority fee-based businesses, and they grew about 12 percent together from a year earlier 2. Assets under management were $74.5 billion, up 9.7 percent 2.

Key trades securities as a dealer and handles derivatives and currency deals for clients, mainly through the Commercial Bank 2.

Branches, people and rivals

KeyBank owned 408 branches and leased 532 at the end of 2025 3. Key leased about 375,414 square feet of its Cleveland headquarters, the Key Center 3.

Christopher Gorman is Chairman and Chief Executive Officer, and Clark Khayat has been Chief Financial Officer since March 2023 3. Key had 17,883 full-time and part-time employees at the end of 2025 3.

Key says it competes with other banks, credit unions, investment banks, private credit funds and financial technology companies, and that some rivals are larger 3.

Current problems

Credit is improving 1. Nonperforming loans, loans whose borrowers have stopped paying as agreed, were $618 million at the end of the third quarter, down from $809 million three months earlier 1.

Key’s own filing lists Scotiabank’s large stake, and its ability to name up to two directors, as a risk to other shareholders 3.

The umbrella, in words

KeyBank National Association, the bank, is 100 percent owned by KeyCorp and is the only subsidiary the annual report lists 6. Other subsidiaries are not listed because together they are not significant 6.

Main brands include KeyBank and Key Institutional Bank, which includes KeyBanc Capital Markets and Key Bank Real Estate Capital 25. On 3 August 2026 Key closed its purchase of Clearwater Corporate Finance LLP, recording about $51 million of goodwill 2.

Scotiabank is the largest holder named in the annual report: it owns about 14.9 percent of the common shares and has agreed rights to name up to two directors 3.

Key published its 2026 outlook on 20 October 2026 2. It expects revenue up about 8 percent and net interest income up about 10 percent compared with 2025 2.

It expects average loans up about 5 percent and net charge-offs of 37 to 39 basis points of average loans 2. The earlier range for charge-offs was 40 to 45 basis points 2.

The company also expects noninterest income, the fees and other non-interest revenue, to rise 4 to 5 percent, and adjusted noninterest expense to rise about 4 percent 2. It expects a fourth-quarter net interest margin near 3.00 percent and an effective tax rate near 22 percent 2.

The company set medium-term targets for the run rate by the end of 2027: a return on tangible common equity of 15 percent or more and a net interest margin of 3.25 percent or more 2.

Key says it remains on pace to complete $1.3 billion of share repurchases in 2026 2.