KeyCorp Beats Q1 Earnings Estimates On Strong Loan Growth

KeyCorp (NYSE:KEY) reported first-quarter 2026 results that exceeded analyst expectations, supported by growth in loans and net interest income.

The bank posted adjusted earnings per share of $0.44, surpassing the consensus estimate of $0.42. Revenue totaled $1.95 billion, slightly above the $1.94 billion estimate and up 10% from the prior-year period.

Net income attributable to common shareholders reached $486 million, or $0.44 per diluted share, compared to $0.33 per share a year earlier.

Net interest income increased 11% to $1.23 billion, while net interest margin expanded 29 basis points to 2.87%, driven by lower deposit costs and a shift toward higher-yielding commercial and industrial loans.

Noninterest income rose 8% to $723 million, with investment banking and debt placement fees increasing by $22 million.

Period-end loans grew by $2.6 billion sequentially to $109.2 billion, with commercial loans rising $3.3 billion, or 4%. Average deposits declined 0.8% year over year to $147.3 billion, reflecting the intentional runoff of brokered certificates of deposit.

Credit quality remained stable, with net charge-offs at 0.38% of average loans and nonperforming assets at 0.63% of total loans. The provision for credit losses totaled $106 million.