KeyCorp (KEY) Q3 2026 earnings summary

Executive summary

• Record taxable-equivalent revenue was $2.052B, up 8.3% YoY; diluted EPS was $0.51, up 24.4% YoY.

• ROTCE reached 15.11%; management aims to sustain returns of 15%+ by end-2027, with a long-term target of 16%–19%.

• Priority fee businesses grew 12% YoY; commercial lending and deposits advanced as credit quality improved.

Financial highlights

• Taxable-equivalent NII was $1.308B, up $115M YoY and $50M QoQ; GAAP NII was $1.300B.

• Noninterest income was $744M, up 6.0% YoY; noninterest expense was $1.245B, up 5.8% YoY, or 5% excluding the prior-year FDIC special-assessment adjustment.

• Provision for credit losses was $61M, including $89M in net charge-offs and a $28M reserve release.

• PPNR was $807M, versus $718M in Q3 2025 and $747M in Q2 2026; management reported record PPNR.

• Investment banking and debt placement fees were $214M, up 27% QoQ and 16% YoY; trust and investment services income rose 10% YoY and cards and payments income rose 8%.

Outlook and guidance

• FY26 outlook: NII growth ~10%, average loan growth ~5%, average commercial loan growth ~10%, and net charge-offs of 37–39 bps, revised from 40–45 bps.

• FY26 revenue growth outlook was ~8%; noninterest income growth was 4%–5%, or 6%–7% on an adjusted basis.

• Q4 2026 NIM exit-rate outlook is 3.00%; average earning assets are expected to increase $1.5B–$2.0B QoQ, excluding the AFS securities mark.

• End-2027 targets are NIM of 3.25%+ and ROTCE of 15%+; long-term ROTCE target is 16%–19%.

• Loan growth for the rest of 2026 is expected to be funded by client deposits; deposits are expected to grow at or above loans through 2027.