KeyCorp (KEY) Q1 2026 earnings summary

Executive summary

• Net income from continuing operations attributable to common shareholders was $486 million, with diluted EPS of $0.44 for Q1 2026, up 33% year-over-year, and revenue grew 10% to $1.95 billion, driven by strong commercial loan and fee-based business momentum.

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

• Commercial client growth was 3% year-over-year, with net new relationship households up 2% and commercial loan growth broad-based, increasing $3.3 billion or 4% sequentially.

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

• Share repurchases totaled $389 million in Q1 2026, exceeding prior commitments, with at least $1.3 billion planned for 2026.

Financial highlights

• Net interest margin was 2.87%, up 29 bps year-over-year and 5 bps sequentially, with net interest income up 11% year-over-year.

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

• Provision for credit losses 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.

• Cash efficiency ratio improved to 60.4% from 63.5% a year ago.

Outlook and guidance

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

• Noninterest income forecasted to grow 3%-4%, and adjusted noninterest expense up 2%-4%.

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

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