KEY beats Q2 estimates with a 40% y/y EPS jump, boosted by strong NII and fee income despite rising expenses and provisions.
KeyCorp is increasing its number of frontline bankers and client advisers by 10% and has boosted its investment in technology by nearly $100 million this year to support the company's growth.
The headline numbers for KeyCorp (KEY) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
KeyCorp (KEY) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.25 per share a year ago.
KEY is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Beyond analysts' top-and-bottom-line estimates for KeyCorp (KEY), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
KEY's Q2 earnings are expected to have been boosted by fee income and NII, but rising provisions are likely to have weighed on it.
KeyCorp (KEY) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
KeyCorp (KEY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Shares of Ohio-based KeyCorp have been pretty flat since I opened on the bank last October, broadly tracking the fortunes of the wider regional bank space. The bank's margin-driven recovery continues, which should result in strong earnings growth over the next few years. The stock now trades for less than 10x consensus 2026 EPS, offering today's buyer attractive total return potential.
KeyCorp's preferred shares, particularly the Series I, offer a compelling yield with a favorable outlook, given the bank's strong financial positioning and potential for rate cuts. First quarter earnings show improved net interest margin and net interest income, positioning KeyCorp well for a lower interest rate environment. KeyCorp's strategic growth in deposits and reduction in external debt enhance its ability to fund future loan growth, improving overall financial health.
KeyCorp's solid Q1 results and strategic capital raise from Scotiabank have strengthened its balance sheet, positioning it well for a potential economic downturn. Despite a 25% stock decline since my last "buy" rating, I am increasingly bullish due to NII momentum and a robust capital position. Favorable net interest trends and strong reserves, combined with prudent credit quality management, support KEY's resilience amidst economic uncertainties.