KeyCorp reported Q4 2025 EPS of $0.43, meeting or exceeding all financial targets. Management guided for 7% revenue growth in 2026, driven by net interest income tailwinds and fee business momentum, with expenses growing only 3-4%. The bank plans aggressive share buybacks ($1.2B+ in 2026) and announced board additions. Q4 2025 EPS $0.43; revenue up 12% YoY on adjusted basis; NIM rose to 2.82%.
KeyCorp reported Q4 2025 EPS of $0.43, meeting or exceeding all financial targets. Management guided for 7% revenue growth in 2026, driven by net interest income tailwinds and fee business momentum, with expenses growing only 3-4%. The bank plans aggressive share buybacks ($1.2B+ in 2026) and announced board additions. Q4 2025 EPS $0.43; revenue up 12% YoY on adjusted basis; NIM rose to 2.82%.
KeyCorp reported Q4 2025 EPS of $0.43, meeting or exceeding all financial targets. Management guided for 7% revenue growth in 2026, driven by net interest income tailwinds and fee business momentum, with expenses growing only 3-4%. The bank plans aggressive share buybacks…
Guidance · revenue to 7%
2026 guidance: total revenue up ~7%, net interest income up 8-10%, non-interest income up 3-4% (5-6% adjusted for business decisions).
Guidance · revenue to 7%
Management discussed investing in AI and technology, noting they have deployed it in areas like call centers and see opportunities to apply it more broadly, such as loan underwriting and processing, which could save money and improve client experience.
Management expresses strong confidence in revenue growth outpacing expenses, supported by net interest income tailwinds, fee business momentum, and capital return plans.
Management increased technology spending to $1 billion in 2026, up from $900 million last year, focusing on customer-facing capabilities and AI implementation. They also highlighted ongoing investments in talent, adding nearly 10% to frontline banker staff.
Management expressed strong confidence in continued growth, citing record revenue, positive momentum, and a clear path to higher returns.
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Revenue | FY2026 | 7% | 7% | GUIDED |
| RevenueINVESTMENT_BANKING | FY2026 | 5% | 5% | GUIDED |
KeyCorp CEO references a prior discussion at Goldman Sachs, indicating engagement with the investment bank but no material business relationship.
“I think I was unambiguous about our capital priorities at Goldman.”
Hi. You made several changes to your board. I guess you added Tony and Chris to your board, and you changed the lead director. And I just want to, I know you've covered this in the past, but as far as your appetite for bank acquisition, where is that, given these board changes, different boards can have different views. And then separately, as far as a non-bank acquisition, such as to propel your capital markets, investment banking, M&A business. And if you just clarify, do you have some visibility past the first quarter? I know you said first quarter should be up versus your record first quarter last year, but how do you see that playing out? So a few questions in there.
Sure. Thanks, Mike, and good morning to you. So a few things. Our capital priorities are unchanged. We've been pretty consistent about communicating them. I think I was unambiguous about our capital priorities at Goldman. And those, again, are first and foremost to support our clients. Secondly, to continue to invest in people and technology. And some of those are groups of people. I already touched on our investments in technology, which we're leaning into. Third is obviously to pay the dividend. That goes without saying. Fourth are complementary fee-based and capability-enhancing acquisitions, which was part of your multi-part question. The answer is yes. We're keenly interested in adding groups of knowledge workers, whether those are group hires, individual hires, or boutiques. And you can assume that we're out there and having discussions, and we see probably everything that goes on out there. And then lastly, what's left over, and we covered that today as well, are the buybacks. And obviously, the buybacks are sort of a product. We're generating a lot of capital. And we started with a lot of capital. So as you can imagine, the ability to have a pretty aggressive buyback program is there. The last part of your question was visibility past the first quarter. I would say, look, it's the deal business. I would say we have very good visibility through quarter one. Also, our backlogs are at historically high levels. So our view on that, frankly, is rather conservative. In this business, you can't have a great year without having a great start. And we will get off to a great start and we have good backlogs. Let's hope the markets stay in place and we can revisit it as the year develops.
KeyCorp nominates a former BlackRock executive to its board, adding expertise in capital allocation and public markets.
“Tony DiSperito most recently served as global chief investment officer for fundamental equities at BlackRock.”
… to our board that we announced just this morning. These changes reaffirm our board's commitment to strong corporate governance and long-term shareholder value. First, the board will nominate Tony DiSperito and Chris Henson for election as directors at Key Corp's 2026 annual meeting of shareholders. Both candidates have impressive backgrounds in the financial services industry and bring capabilities that are directly aligned with Key's priorities. Tony DiSperito most recently served as global chief investment officer for fundamental equities at BlackRock. Tony has portfolio manager experience spanning over 30 years. He brings deep expertise in public markets, capital allocation, and long-term value creation. Chris Henson is a former senior banking executive with extensive experience leading large financial institutions. He most recently served as head of banking and insurance at Truist, and prior to that was president, chief operating officer, and chief financial officer at BB&T. We believe these additions will enhance an already highly engaged and very capable board as we drive the next phase of value creation for Key. Following the additions of Mr. Desperato and Mr. …
Dollar General's CEO becomes lead independent director of KeyCorp, indicating a governance change.
“Todd Vasos, who currently serves as the CEO of Dollar General.”