KeyCorp Q4 profit rises on lower deposit costs

KeyCorp

20/01/2026 11:40

Overview

Bank-based financial services firm's Q4 2025 revenue rose to $2 bln

Net income from continuing operations was $474 mln, recovering from a loss last year

Company repurchased $200 mln of common shares during the quarter

Outlook

KeyCorp expects strong organic revenue and earnings growth in 2026

Company plans to increase return of capital to shareholders in 2026

KeyCorp sees strong business momentum with record assets under management

Result Drivers

NET INTEREST INCOME - Increase driven by lower deposit costs and favorable balance sheet shift towards higher-yielding loans

NONINTEREST INCOME - Growth driven by higher investment banking and debt placement fees

CAPITAL RETURN - Repurchased $200 million of common shares, reflecting strong capital position

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
$0.43
Q4 Net Interest Income
$1.22 bln
Q4 CET1 Capital Ratio
11.70%
Q4 Net Income continuing operations
$474 mln
Q4 Net Interest Margin
2.82%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 10 "hold" and 1 "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 $23.00, about 8.6% above its January 16 closing price of $21.17

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

Press Release: ID:nPn1kB3lka

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