What were the key takeaways from Keycorp’s earnings call?

What guidance did Keycorp's management provide for the next earnings period?

What is Keycorp's gross profit margin?

What does Keycorp do and what are its main business segments?

What were the key takeaways from Keycorp's earnings call?

What is Keycorp's latest dividend and current dividend yield?

Did Keycorp beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Keycorp year over year?

- **Record Growth**: 17% revenue YoY, 2.75% NIM, and $100M+ Q4 buybacks signal aggressive capital return. 
- **15% ROTCE Target**: 2027 milestone achievable via 50bps NIM expansion and fee-based growth. 
- **Frontline Expansion**: 10% staff increase drives fee income, with mass affluent AUM at $68B. 
- **Credit Strength**: 42bps NCOs, 6% NPAs decline, and 10.3% marked CET1 support flexibility. 
- **Strategic Focus**: No M&A, prioritizing organic commercial loan and wealth growth. 
- **Regulatory Shift**: Simplified exams enable focus on earnings and liquidity.

**【CEO Summary Section】**
- **Revenue Growth**: Reported 17% year-over-year growth in revenue, driven by commercial loan expansion and fee income. 
- **Net Interest Margin (NIM)**: Achieved 2.75% NIM, meeting the year-end target a quarter early, with plans for modest further growth. 
- **AI Investment**: Frontline staff increased by 10%, with new hires in mass affluent and institutional banking contributing to record fee income. 
- **Strategic Targets**: Announced a 15%+ Return on Tangible Common Equity (ROTCE) target by 2027, achievable through NIM expansion, fee growth, and capital efficiency. 
- **Share Buybacks**: Plans to repurchase $100 million of common stock in Q4, with flexibility to accelerate based on market conditions.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income of $40 million, Non-GAAP EPS of $1.08 (vs. $0.95 prior), with operating expenses up 7% YoY due to frontline hiring. 
- **Balance Sheet**: Average loans grew $0.5 billion QoQ, deposits increased 2% (3% period-end), with low-cost deposits at 19% of total. 
- **Credit Quality**: Net charge-offs at 42 basis points (41% YoY), within the 40-45bp target range, with NPAs declining 6%. 
- **Capital Management**: CET1 ratio at 11.8%, marked CET1 at 10.3%, enabling active share repurchases. 
- **Guidance**: Full-year NII growth of 22%, fees up 5-6%, and operating leverage of >100bps.

**【Q&A Highlights】**
- **ROTCE Strategy**: 15%+ ROTCE target via 50bps NIM expansion, fee growth, and capital discipline. 
- **M&A Caution**: No active bank M&A, focusing on organic growth and tuck-in deals. 
- **Deposit Growth**: Commercial deposits up 2% QoQ, consumer deposits stable with mix shift to noninterest-bearing. 
- **Regulatory Shift**: Positive regulator focus on safety/soundness, reducing procedural exams. 
- **Investment Banking**: $184 million Q3 fees, pipeline up 2x YoY, targeting $1 billion annualized. 
- **Risk Management**: No direct auto industry exposure, credit metrics improving across NPAs and charge-offs.

KeyCorp (KEY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KEY

KEY fundamentals

You can ask Aime