KeyCorp (KEY) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $472 million, with diluted EPS of $0.44, up 26% year-over-year, driven by strong commercial loan growth and fee-based business expansion.

• Revenue grew 7% year-over-year, with net interest income up 9% and noninterest income up 2.3%.

• Net interest margin expanded to 2.89%, with a target to reach 3% by year-end, supported by commercial loan growth and asset repricing.

• Share repurchases totaled $341 million in Q2, with a CET1 ratio of 11.2%.

• Assets under management reached a record $74 billion, up 15.5% year-over-year.

Financial highlights

• Net interest income was $1.26 billion, up 9% year-over-year and 2% sequentially; NIM at 2.89%.

• Noninterest income rose 2% year-over-year, driven by trust, investment services, and payments.

• Noninterest expense increased 5% year-over-year, mainly due to higher personnel costs.

• Tangible book value per share increased 6% year-over-year.

• Average loans grew $4.4 billion year-over-year, led by commercial and industrial lending.

Outlook and guidance

• Full-year 2026 outlook raised: revenue up 7-8%, net interest income up 9-11%, average loans up 3-4%.

• Net interest margin expected to exit the year at 3%-3.05%.

• Net charge-offs to average loans forecasted at 40-45 bps; effective tax rate ~22%.

• Medium-term targets by end of 2027: return on tangible common equity 15%+, net interest margin 3.25%+.