KeyCorp Q2 net interest income rises on lower deposit costs

KeyCorp

21/07/2026 11:43

    

    Overview
  
U.S. regional bank's Q2 revenue rose 7% yr/yr, net income up 22%
Adjusted EPS for Q2 increased to $0.44 from $0.35 a year ago
Company repurchased $341 mln of common shares in Q2

    

    Outlook
  
KeyCorp aims to generate return on tangible common equity exceeding 15% by year-end 2027

    

    Result Drivers
  
NET INTEREST INCOME - Growth driven by lower deposit costs, reinvestment into higher-yielding assets, and a shift toward more commercial and industrial loans
NONINTEREST INCOME MIX - Modest year-over-year growth led by trust and investment services, partly offset by lower commercial mortgage servicing fees
HIGHER EXPENSES - Personnel expense rose due to incentive compensation and continued investments in staff

    
Company press release: ID:nPn9vMLxWa

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Net Interest Income
 
$1.26 bln
 
Q2 CET1 Capital Ratio
 
11.20%
 
Q2 Net Income continuing operations
 
$472 mln
 
Q2 Net Interest Margin
 
2.89%
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "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 $25.00, about 7.2% above its July 20 closing price of $23.32
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

    

    Reuters Recommended Reads
  
July 20 - Zions Bancorp Q2 adjusted EPS misses estimates as one-time gains lift net profit
July 20 - Wintrust Q2 net interest income rises on growth in average earning assets
July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

    
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(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.)