KEY-PI · KeyCorp

KeyCorp’s Q1 2026 results reflect strong operational execution amid a dynamic rate environment. Net income rose 33% YoY to $486 million, driven by $1.95 billion in revenue — up 10% YoY — with both net interest income (+11% YoY) and noninterest income (+8% YoY) contributing meaningfully. The 2.87% net interest margin expanded 29 bps YoY, primarily due to declining deposit costs (down 16 bps YoY), proactive beta management, and strategic reinvestment into higher-yielding commercial loans and securities. Noninterest income growth was led by investment banking & debt placement fees (+13% YoY) and trust & investment services (+13% YoY), underscoring traction in priority fee-based businesses. Credit quality remained robust: nonperforming assets stood at 63 bps and net charge-offs at 38 bps — both near multi-year lows. Capital position remained solid with a 11.4% CET1 ratio (estimated), and the company executed $389 million in share repurchases, consistent with its $1.3 billion full-year buyback plan. Management highlighted continued loan growth (C&I loans up $3.3 billion QoQ), disciplined expense management (noninterest expense up only 4% YoY despite personnel investments), and progress toward long-term ROTCE targets of 15%+ by end-2027. Forward guidance reaffirms confidence: revenue up ~7%, net interest income up 9–10%, and NCOs expected between 40–45 bps — all within prior ranges and supported by improving loan yields, stable deposit betas, and resilient client demand across commercial and wealth segments.