From The Motley Fool · Motley Fool Transcribing · · 2m
KeyCorp Q3 2026 Earnings Report
KeyCorp reports record revenue and improved margins as it targets 15% return on equity by 2027.
In brief
KeyCorp reports record revenue and improved margins as it targets 15% return on equity by 2027. KeyCorp achieved $537 million net income and $2.04 billion revenue in Q3 2026, with guidance for 15%+ return on tangible common equity by year-end 2027. Originally reported by The Motley Fool.
Q3 2026 Results
KeyCorp reported record quarterly revenue of $2.04 billion, an 8.4% year-over-year increase.
Net Income Growth
Net income rose to $537 million, an 18.3% year-over-year increase from $453 million.
Diluted EPS
Diluted earnings per share reached $0.51, up 24.4% from $0.41 in the prior year quarter.
Net Interest Margin
Net interest margin expanded to 2.95%, a 20 basis point year-over-year improvement.
Return on Equity
Return on average tangible common equity reached 15.11%, up from 12.51% in Q3 2025.
Commercial Loan Growth
Commercial loans grew 5.0% year-over-year with utilization increasing 200 basis points to 33%.
Deposit Growth
Average deposits grew $3.6 billion sequentially, representing 0.5% year-over-year growth.
Investment Banking
Investment banking fees increased 26.6% sequentially with strong M&A and syndication activity.
AI Deployment
KeyCorp deployed AI across four domains to improve commercial onboarding, servicing, originations, and software engineering.
Capital Markets
Capital markets team delivered strong results with investment banking and debt placement fees increasing 27% sequentially.
Credit Quality
Net charge-off ratio improved to 32 basis points from 42 basis points in the prior year period.
Capital Structure
KeyCorp redeemed $525 million of Series D preferred stock in September and is evaluating new preferred issuance.
2026 Guidance
KeyCorp tightened net interest income growth guidance to approximately 10% from 9%-11% for 2026.
Commercial Loan Growth Guidance
Commercial loan growth guidance revised upward to approximately 10% from 8%-10% for 2026.
Net Charge-off Guidance
Net charge-off guidance improved to 37-39 basis points from 40-45 basis points for 2026.
Q4 2026 Outlook
KeyCorp expects net interest margin of approximately 3.0% in Q4 2026 with strong loan growth.
At a glance
KeyCorp achieved $537 million net income and $2.04 billion revenue in Q3 2026, with guidance for 15%+ return on tangible common equity by year-end 2027.
