KeyCorp (KEY) Q1 2026 earnings summary

Executive summary

• Q1 2026 EPS was $0.44, up 33% year-over-year, with net income from continuing operations at $486 million and revenue rising 10% to $1.95 billion.

• Return on tangible common equity reached 13.02%, progressing toward a 15%+ target by year-end 2027.

• Priority fee-based businesses (wealth, investment banking, commercial payments) grew 12% year-over-year, with assets under management reaching ~$70Bn, up 11%.

• Commercial loan growth was broad-based, increasing $3.3 billion or 4% sequentially, with pipelines up nearly 20% from year-end.

• Share repurchases totaled $389 million in Q1 2026, reducing outstanding shares by 1.4%.

Financial highlights

• Net interest margin expanded 5 bps sequentially to 2.87%, up 29 bps year-over-year.

• Taxable-equivalent net interest income rose 11% year-over-year and 1% sequentially.

• Noninterest income increased 8% year-over-year, with investment banking and debt placement fees up 13%.

• Loan loss provision was $106 million, including 38 bps of net charge-offs and a $5 million reserve build.

• Tangible book value per share increased 10% year-over-year to $13.60.

Outlook and guidance

• Full-year net interest income growth now expected at 9%-10%, up from prior 8%-10% guidance.

• Net interest margin expected to exit 2026 at approximately 3.05%.

• Average loans forecasted to increase 2%-4%, with commercial loans up 6%-8% for the year.

• At least $1.3 billion in share repurchases planned for 2026.

• Expense growth guidance maintained at 3%-4% for the full year.