KeyCorp Reports Q3 2026 Financial Results with EPS Up 24% YoY

Executive Summary

On October 20, 2026, KeyCorp filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), reporting its financial results for the third quarter ended September 30, 2026.

Key Financial Metrics & Performance Highlights

• Earnings Per Share (EPS): Diluted EPS of $0.51, representing a 24.4% increase YoY compared to $0.41 in Q3 2025, and a 15.9% sequential increase compared to $0.44 in Q2 2026.
• Net Income: $537 million attributable to Key common shareholders, up 18.3% YoY compared to $454 million in Q3 2025.
• Revenue Performance: Total revenue reached a record $2.044 billion (or $2.052 billion on a taxable-equivalent basis), advancing 8.4% YoY and 4.5% sequentially.
  • Net Interest Income (NII): $1.300 billion ($1.308 billion TE), increasing 9.8% YoY and 4.0% sequentially, aided by reduced deposit costs, loan growth in commercial & industrial, and reinvestment into higher-yielding assets.
  • Noninterest Income: $744 million, up 6.0% YoY and 5.4% QoQ, driven in part by a 27% sequential jump in investment banking and debt placement fees.
• Margins & Profitability:
  • Net Interest Margin (TE): Expanded to 2.95%, up 20 bps YoY and 6 bps QoQ.
  • Return on Average Tangible Common Equity (ROTCE): Rose to 15.11%, up 260 bps YoY and 222 bps QoQ.
  • Return on Average Total Assets (ROA): 1.21%, compared to 1.04% in Q3 2025.
• Capital & Liquidity:
  • Common Equity Tier 1 (CET1) Ratio: Estimated at 11.1% as of September 30, 2026.
  • Share Buybacks: KeyCorp repurchased $320 million of common shares during the quarter.
  • Deposit Growth: Average deposits increased by $3.6 billion sequentially, outpacing loan growth (average loans held for investment rose $1.5 billion).

Context and Outlook

Management noted continued momentum across the franchise, highlighting disciplined risk management, improved credit metrics with lower net charge-offs and nonperforming assets, and strong client engagement. KeyCorp reiterated its target of sustaining a return on tangible common equity of 15%+ through 2027.