KeyCorp Q1 revenue rises 10%, net income up 33% on lower deposit costs

KeyCorp

16/04/2026 11:42

Overview

U.S. bank-based financial services firm's Q1 revenue grew 10% yr/yr

Company repurchased $389 mln of common shares in Q1

Revenue growth driven by lower deposit costs and reinvestment into higher-yielding assets

Outlook

KeyCorp expects to drive strong revenue and earnings growth in 2026

Company says it is prepared to manage through a broad range of economic scenarios

KeyCorp targets 15%+ return on tangible common equity by year-end 2027

Result Drivers

NET INTEREST INCOME - Growth driven by lower deposit costs, reinvestment of maturing securities into higher-yielding assets, and a shift to higher-yielding commercial and industrial loans

NONINTEREST INCOME - Year-over-year increase led by higher investment banking and debt placement fees, and trust and investment services income

COMMERCIAL LOAN GROWTH - Average commercial loans rose, primarily due to higher commercial and industrial loan balances

Company press release: ID:nPn1cn4Tna

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$1.95 bln
Q1 Adjusted EPS
$0.44
Q1 Net Interest Income
$1.23 bln
Q1 CET1 Capital Ratio
11.40%
Q1 Net Income continuing operations
$486 mln
Q1 Net Interest Margin
2.87%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for KeyCorp is $23.50, about 8.9% above its April 15 closing price of $21.57

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)