KeyCorp Matches EPS Expectations in Q2
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Research suggests that What stands out here is KeyCorp (KEY 2. On the other hand, 35%), a regional bank offering a broad array of consumer and commercial financial services, released...
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July 22, 2025
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Re suggests that What stands out here is KeyCorp (KEY 2
On the other hand, 35%), a regional bank offering a broad array of consumer and commercial financial services, released its earnings for the second quarter of fiscal 2025 on July 22, 2025, in this volatile climate
GAAP earnings per were $0. 35 for Q2 2025, precisely matching analyst forecasts (an important development), amid market uncertainty
GAAP revenue for Q2 2025 was $1
Furthermore, 80 billion, slightly below consensus expectations
Year-over-year fit and revenue growth were strong, highlighted by imved net interest income and solid fee-based results
Furthermore, However, the bank saw higher credit loss visions and continued cost growth
On balance, the quarter reflected steady performance and resilience, though signs of rising risk and macroeconomic caution remain
MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS (Non-GAAP)$0
Moreover, 35 (GAAP)$0, given current economic conditions
On the other hand, 35 (GAAP) for Q2 2025$0 (this bears monitoring), considering recent developments. 25 per diluted common (GAAP)Revenue (Non-GAAP)$1. 84 billion (GAAP) revenue$1. 80 billion (GAAP) revenue$1. 80 billion (GAAP)Net Interest Income (Non-GAAP)$1
Moreover, 15 billion (taxable-equivalent net interest income)n/a$899 millionNet Loan Charge-Offs$102 millionn/a$91 millionTotal Noninterest Expense$1
On the other hand, 15 billion (taxable-equivalent net interest income, Q2 2025)n/a7. 0% increase in noninterest expense (Q2 2025 vs
Q2 2024) Source: Analyst estimates for the quarter vided by FactSet
Understanding KeyCorp's and Recent PrioritiesKeyCorp operates as a regional bank, serving retail, small, and commercial clients across the United States (noteworthy indeed), given the current landscape
Market analysis shows s splits into two main parts: Consumer Bank, which ders everyday banking, loans, and wealth management for individuals, and Commercial Bank, targeting es with lending, payments, treasury, and advisory services
Recently, its major focus areas have included managing regulatory responsibilities, strengthening its competitive edge, in digital banking, and attracting top staff
Conversely, It aims to grow by imving nology offerings, keeping a tight grip on its risk file, and building stronger ties with both consumer and clients, in this volatile climate
Success hinges on staying compliant, vigilant risk controls, and offering innovative ducts that resonate with changing customer preferences
Quarter Highlights: Financial and Operating PerformanceIn the period, KeyCorp posted meaningful imvements across several key measures
Additionally, On the other hand, Net income attributable to holders rose 63% year-over-year in Q2 2025, given the current landscape
Return on average tangible common equity from continuing operations (non-GAAP) -- a measure of fitability relative to holder capital -- was 11
On the other hand, On the other hand, 09% for Q2 2025, up from 10
Conversely, 39% in Q2 2024
Net interest income, which reflects the difference between what the bank earns on loans and what it pays on deposits and borrowings, climbed 27, in this volatile climate. 9% in Q2 2025
This demonstrates that performance came despite only modest growth in average loans, which totaled $105
In contrast, 7 billion for Q2 2025, a decline of 3 (noteworthy indeed). 0% from the prior year
Commercial and industrial loans increased 5
Meanwhile, 5% year-over-year, while consumer loans decreased 7
Nevertheless, The bank intentionally reduced low-yielding consumer loans and focused more on higher-yielding lending (fascinating analysis)
Moreover, Noninterest income -- such as fees from investment banking, commercial mortgage servicing, and deposit account service charges -- increased 10. 0% for Q2 2025
Moreover, Moreover, In particular, investment banking and debt placement fees grew by 41. 3%, while commercial mortgage servicing fees increased 14. 8% in Q2 2025 compared to Q2 2024
Furthermore, Furthermore, This fee growth was driven by higher investment banking and debt placement fees, as well as increased commercial mortgage servicing fees, in today's financial world
On the other hand, On the cost side, total noninterest expense (GAAP) increased 7. 0% year-over-year in Q2 2025 to $1 (something worth watching). 15 billion, mainly due to higher personnel and nology investments (an important development)
Notably, personnel expense rose 10. 8% in Q2 2025, reflecting additional staff to support growth in fee-based lines and higher incentive compensation for imved results
What the data shows is bank also increased spending on computer cessing and fessional fees, primarily for nology-related investments
Nevertheless, Credit quality remains in focus, given current economic conditions
Net loan charge-offs -- a measure of loans unly to be collected -- rose to $102 million in Q2 2025, up 12. 1% year-over-year, yet imved from the prior quarter (something worth watching)
What the re reveals is vision for credit losses increased in Q2 2025 to cover loan growth, changes in loan types, and early signs of a softer economic outlook
Additionally, Management noted it added $36 million to reserves in Q2 2025 as a prudent step
Nonperforming loans, which are past due or in default, stood at $696 million, slightly lower than the year before and representing 0
Moreover, 65% of total loans for Q2 2025
Within its Consumer Bank segment, revenue increased 20, amid market uncertainty
However, 3% from the prior year in Q2 2025, while net income more than doubled over the same period
Loan volumes declined, assets under management reached a record, and money market deposits increased
What the re reveals is Commercial Bank segment saw a 26, given current economic conditions
On the other hand, 8% increase in revenue and a 69. 4% rise in net income for Q2 2025, driven by strong fee income, especially from investment banking and payments ducts
On the balance sheet, KeyCorp Q2 2025 with $146. 9 billion in deposits -- up less than 1% from Q2 2024 -- and a total deposit cost that fell to 1
Assets under management reached a record $64 billion as of Q2 2025, an 11. 5% increase from last year, given the current landscape
On the other hand, Both commercial and consumer es contributed, and the company gained more relationship households
From a regulatory standpoint, capital ratios remained solid, amid market uncertainty
However, The Common Equity Tier 1 ratio was 11. 7% as of Q2 2025, well above required minimums, in this volatile climate
Tangible common equity as a of total assets was 7. 8% (non-GAAP) for Q2 2025, up from 5. 2% in Q2 2024, giving the bank flexibility to pursue further investment or buybacks
Book value per rose 17
Furthermore, Conversely, 0% year-over-year for Q2 2025
Management highlighted investments in nology and personnel for growth and compliance
Personnel investment was a central theme, with average full-time employees increasing by nearly 3% year-over-year for Q2 2025
The bank reiterated its goal to increase front-line bankers by 10% in 2025 to deepen client relationships and drive growth
Nevertheless, "We continue to make investments in people and nology that will drive future growth for our company
We remain on target to increase our front line bankers," the CEO stated
Outlook: Guidance and What to Watch NextNet interest income is expected to increase by around 20% for 2025, supported by balance sheet changes and continued imvement in loan and deposit mix
Nevertheless, Management expects adjusted fee income to grow 5% or more in 2025, assuming no substantial decline in economic conditions
No formal quarterly outlook was issued beyond the year, amid market uncertainty
Looking ahead, investors should keep an eye on credit costs, deposit growth, and expense trends
Management signaled readiness to adapt cost controls and capital spending if conditions change
Repurchases totaling up to $1 billion are authorized and expected to begin in the second half of 2025, depending on economic growth and evolving capital rules
The board declared a dividend of $0. 205 per for the quarter, amid market uncertainty
Revenue and net income presented using U
Generally accepted accounting principles (GAAP) unless otherwise noted, in today's financial world
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