KeyCorp reported second quarter 2026 revenue of $1.96 billion and EPS of $0.44, beating analyst EPS estimates of $0.42 while revenue was roughly in line with expectations. Net income of $472 million increased 22% from the prior year, supported by strong growth in net interest income and commercial loans.
Key Highlights
- Net interest income (NII) grew 9.4% year-over-year to $1.26 billion, as the net interest margin expanded by 23 basis points to 2.89%.
- The bank saw robust commercial momentum, with average commercial and industrial (C&I) loans increasing 11.7% year-over-year to $62.1 billion.
- Credit quality showed some deterioration, as net charge-offs rose to 0.42% of average loans from 0.39% in the year-ago quarter.
- KeyCorp repurchased $341 million of common stock during the quarter, demonstrating confidence in its capital position.