KeyCorp reported strong third quarter results characterized by record revenue and significant margin expansion. Performance was driven by higher yielding asset repricing and robust capital markets activity, with net interest margin climbing 20 basis points year-over-year to 2.95%.
Key Highlights
- Net interest income (TE) rose to $1.31 billion, exceeding estimates as the bank benefited from proactive deposit management and fixed-rate portfolio repricing.
- Investment banking and debt placement fees surged 27% sequentially to $214 million, reflecting strong client engagement.
- Asset quality improved significantly with net loan charge-offs declining to 0.32% of average total loans, down from 0.42% in both the year-ago and prior quarters.
- Average deposit growth of $3.6 billion sequentially outpaced average loan growth of $1.5 billion, supporting liquidity and margin recovery.