- KeyCorp’s net interest income on a taxable-equivalent basis was $1.19 billion, which was exactly in line with estimates.
- The net interest margin on a taxable-equivalent basis was 2.75%, meeting expectations.
- Adjusted earnings per share exceeded expectations at $0.41, compared to an estimate of $0.38.
- Total revenue for the quarter was $1.90 billion.
- Investment banking and debt placement fees amounted to $184 million, slightly above the $182 million estimate.
- Non-interest income was $702 million, just above the expected $701.8 million.
- Provision for credit losses stood at $107 million, slightly higher than the $106.3 million estimate.
- Non-interest expenses were $1.18 billion, coming in under the estimate of $1.19 billion.
- Net charge-offs were $114 million, exceeding the expected $110.6 million.
- The return on average tangible common equity was reported at 12.5%.
- The efficiency ratio was calculated at 61.8%.
- The common equity Tier 1 ratio stood at 11.8%, slightly higher than the estimated 11.7%.
- Total deposits reached $150.77 billion, surpassing the expectation of $147.85 billion.
- Total loans were $105.90 billion.
- Earnings per share for the company were recorded at $0.41.
- Analyst ratings on the stock include 12 buys, 14 holds, and no sells.
Keycorp on Smartkarma
Keycorp has been receiving positive analyst coverage on Smartkarma, the independent investment research network. According to reports from Baptista Research, the company’s financial performance in the second quarter of 2025 was robust, with earnings per share at $0.35. KeyCorp strategically added $36 million to loan loss reserves and pre-funded its charitable foundation, contributing to its stable funding base. Revenues showed a notable 21% year-over-year increase, while expenses rose by 6%, excluding the charitable contribution.
Furthermore, Baptista Research‘s analysis highlights KeyCorp’s strong performance in the first quarter of 2025, despite facing challenges in the macroeconomic environment. The company’s focused strategic execution and financial health were instrumental in navigating uncertainties such as potential economic slowdowns and geopolitical tensions. KeyCorp reported a significant 16% increase in revenues year-over-year, with stable expenses contributing to a substantial rise in pre-provision net revenue, demonstrating the company’s resilience and growth potential.
A look at Keycorp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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KeyCorp, a financial services company, is exhibiting a promising long-term outlook according to the Smartkarma Smart Scores. With strong scores in Value and Dividend at 4 out of 5, KeyCorp is viewed favorably in terms of its financial health and ability to provide consistent dividend payments. Although scoring slightly lower in Growth and Momentum at 3 each, indicating room for improvement in these areas, KeyCorp’s robust offerings in retail and commercial banking, investment management, and consumer finance position it well for future growth opportunities.
However, KeyCorp’s Smart Scores highlight potential areas of concern, particularly in Resilience, where it scores a 2. This suggests a need for the company to enhance its ability to withstand economic challenges and market fluctuations. Despite this, KeyCorp’s diverse range of products and services, catering to individual, corporate, and institutional clients, provides a strong foundation for potential long-term success in the dynamic financial services industry.
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Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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