Keycorp · NYSE:KEY
Keycorp — Q2 2025 Earnings Presentation
22 slides from Keycorp's earnings presentation, Jul 22, 2025
Slide 1: KeyCorp Second Quarter 2025 Earnings Review
KeyCorp Second Quarter 2025 Earnings Review July 22, 2025 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer
Slide 2: 2Q25 Results
2Q25 Results Differentiated Fee Driving New Businesses Focused Relationships Focused Risk Management Strengthening the on Targeted Scale on Primacy Excellence Balance Sheet +10% +3% 39bps 11.7% Noninterest Income Growth YoY Commercial Loan Growth QoQ NCOs / Average Loans, Common Equity Tier 1(2), do
Slide 3: Financial Review
Financial Review
Slide 4: 2Q25 Highlights
2Q25 Highlights $ in millions, excluding per share metrics From continuing operations, unless otherwise noted Reported QoQ YoY ▪ EPS of $0.35, up 6% QoQ and up 40% YoY EPS $ 0.35 6.1 % 40.0 % ▪ Revenue up 4% QoQ and up 21% YoY – Net interest income up 4% QoQ and up 28% YoY Net Interest Income (TE) (
Slide 5: Average Loans
Average Loans $ in billions vs. Prior Quarter $109.0 $106.2 $104.7 $104.4 $105.7 ▪ Average loans up $1.4Bn – Increase in average commercial loans (+2.7%) Consumer $33.9 $33.2 $32.6 $32.0 $31.4 primarily driven by an increase in C&I loans, and to a lesser extent CRE loans Commercial $75.1 $73.1 $72.1
Slide 6: Average Deposits
Average Deposits $ in billions vs. Prior Quarter ▪ Average deposits down 0.7% $147.8 $149.7 $148.5 $147.4 $144.2 Other (1) – Driven by a reduction in higher-cost commercial client balances and retail CDs Commercial $57.4 $58.7 $59.7 $57.4 $55.9 – Consumer deposits excluding CDs up 1.5% Total deposit
Slide 7: Net Interest Income and Margin (TE)
(1) Net Interest Income and Margin (TE) From continuing operations, $ in millions NII Walk (TE) $9 $1,150 $8 $6 +28% $9 $1,150 $13 $1,105 $1,105 $1,061 $964 $899 +4% 1Q25 Beta Mgmt & Swap Fixed-Rate Balance Day Count & 2Q25 Rate Maturities Securities Sheet Mix Other 2.58% 2.66% Impacts Repricing 2.4
Slide 8: Noninterest Income
Noninterest Income $ in millions; Illustrative, not drawn to scale vs. Prior Year +10% YoY ▪ Noninterest income up $63MM (+10%) $668 $690 $627 – Investment banking and debt placement fees were $178MM (+41%), reflecting higher syndications, commercial real estate, and equity issuance activity ▪ Secon
Slide 9: Noninterest Expense
Noninterest Expense $ in millions % change vs. Prior Year YoY QoQ ▪ Noninterest expense up $75MM (+7%), or 6% excluding a $10MM charitable contribution $1,154 +7% +2% – Driven by higher personnel expense $1,131 $1,079 (+$69MM), primarily related to incentive $5(2) compensation associated with strong
Slide 10: Credit Quality
Credit Quality Net Charge-offs (NCOs) & Provision for Credit Losses Delinquencies to Period-end Total Loans $ in millions Continuing Operations 0.58% 0.26% 0.27% 0.25% 0.43% 0.43% 0.39% 0.20% 0.34% 0.17% $154 $138 $91 $100 $95 $114 $110 $118 $102 0.16% $39 0.13% 0.09% 0.08% 0.07% 2Q24 3Q24 4Q24 1Q25
Slide 11: Capital
Capital Common Equity Tier 1(1) Marked Common Equity Tier 1(2) ~120bps ~270bps 11.9% 11.8% 11.7% 10.8% 9.7% 9.9% 10.0% 10.5% 8.6% 7.3% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 Tangible Common Equity Ratio(2) Projected AOCI Impacts (Forward Curve) $ in billions ~260bps AOCI Position Forward
Slide 12: 2025 Outlook
2025 Outlook FY2025 (vs. FY2024) 2024 Baseline Ranges are shown on an operating basis $ in millions, unless otherwise stated Average Loans $107.7Bn down 1 – 3% (previously down 2 – 5%) Ending Loans $104.3Bn up ~2% vs. YE 2024 (previously Flat vs. YE 2024) PE Commercial Loans $71.9Bn up ~5% (previous
Slide 13: Appendix
Appendix
Slide 14: Balance Sheet Management Detail
Balance Sheet Management Detail Fixed-rate Asset Repricing Tailwinds – 3Q25 to 2026 $ in billions 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 2025 2026 Projected receive-fixed swaps maturities $0.4 $1.4 $2.8 $2.2 $2.2 $1.9 $1.8 $9.1 Weighted-average rate received (%) 2.19% 1.96% 2.63% 2.95% 2.82% 2.73% 2.01% 2.78
Slide 15: Hedging Strategy Opportunity
Hedging Strategy Opportunity $ in billions; ending balances 2Q25 ALM Hedge Actions ▪ Executed $1.0B of forward-starting receive-fixed swaps that begin accruing from 3Q25 to 4Q25 with a weighted average receive rate of 3.6% Forward Starting Swaps as of 6/30 ▪ Forward starting cash flow hedges of $14.
Slide 16: Credit Quality by Portfolio
Credit Quality by Portfolio Allowance for Credit Losses (ACL) NCOs to Average Loans (%)(1),(2) $1,833 $1,774 $1,743 $1,699 $1,707 4.24% 1.71% 1.68% 1.63% 1.63% 1.64% 0.54% 0.92% 0.15% 0.27% 2Q24 3Q24 4Q24 1Q25 2Q25 (0.02)% (0.02)% (3), (4) C&I CRE Comm'l Resi Mtg Home Credit Other ACL ACL to Period-
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions 2Q25 1Q25 2Q24 Tangible common equity to tangible assets at period end Key shareholders’ equity (GAAP) $ 19,484 $ 19,003 $ 14,789 Less: Intangible assets 2,770 2,774 2,793 Preferred stock(1) 2,446 2,446 2,446 Tangible common equity (non-GAAP) $ 14,268 $
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions 2Q25 1Q25 2Q24 Pre-provision net revenue Net interest income (GAAP) $ 1,141 $ 1,096 $ 887 Plus: Taxable-equivalent adjustment 9 9 12 Noninterest income 690 668 627 Less: Noninterest expense 1,154 1,131 1,079 Pre-provision net revenue from continuing oper
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions 2Q25 1Q25 2Q24 Noninterest expense adjusted for selected items Noninterest expense (GAAP) $ 1,154 $ 1,131 $ 1,079 Plus: Selected Items(1) — — (5) Noninterest expense adjusted for selected items (non-GAAP) $ 1,154 $ 1,131 $ 1,074 Adjusted income (loss) av
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation CET1 – AOCI Impact(1) ($ in millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Common Equity Tier 1 (A) $ 16,774 $ 16,549 $ 16,489 $ 15,043 $ 14,893 Add: AFS and Pension accumulated other Comprehensive income (loss) (2,476) (2,601) (3,032) (3,118) (4,530) Marked Common Equity Tier 1
Slide 21: Selected Items Impact on Earnings
Selected Items Impact on Earnings Selected Items Impact on Earnings $ in millions, except per share amounts Pretax(1) After-tax at marginal rate(1) Quarter to date results Amount Net Income EPS(3)(5) Three months ended June 30, 2025 No items $ — $ — $ — Three months ended March 31, 2025 No items — —
Slide 22: Forward-looking Statements and Additional Information
Forward-looking Statements and Additional Information This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or