KeyCorp (KEY) investor relations material

Executive summary

• EPS for Q2 was $0.44, up 26% year-over-year, with revenue growth of 7% and pre-provision net revenue up 9%.

• Net income for Q2 2026 was $472 million, up 22% year-over-year, with net interest income up 9%.

• Net interest margin expanded to 2.89%, with commercial loan growth and asset repricing as key drivers.

• Share repurchases totaled $341 million in the quarter, with a board authorization for $3 billion and a target of at least $1.3 billion for the year.

• Asset quality remained solid, with net charge-offs at 42 basis points and criticized loans stable at 4.9%.

Financial highlights

• Revenue increased 7% year-over-year to $1.96 billion; expenses rose 5% year-over-year.

• Net interest income grew 9% year-over-year and 2% sequentially; NIM at 2.89%.

• Noninterest income rose 2% year-over-year, driven by trust, investment services, and payments.

• Tangible book value per share increased 6% year-over-year to $13.62.

• Return on average tangible common equity was 12.89%, up 180 bps year-over-year.

Outlook and guidance

• Full-year 2026 revenue growth guidance raised to 7%-8%; net interest income expected to rise 9%-11%.

• Net interest margin expected to exit the year at 3%-3.05%.

• Average loans now expected to increase 4%-5%, with commercial loans up 8%-10% for 2026.

• Noninterest income expected to grow 3%-4%; adjusted noninterest expense up 4%-5%.

• Long-term ROTCE target set at 16%-19%.