KeyCorp announced its financial results for the three and nine months ended September 30, 2026, reporting net income from continuing operations attributable to common shareholders of $537 million, or $0.51 per diluted share. This represents an increase of 13.8% compared to the second quarter of 2026 and 18.3% compared to the third quarter of 2025. The company recorded record revenue of $2.04 billion, an increase of 4.5% sequentially and 8.4% year-over-year.
The bank reported a taxable-equivalent net interest margin of 2.95%, an increase of 20 basis points from the prior year and 6 basis points from the previous quarter. This expansion was attributed to declining interest rates, proactive deposit beta management, and the reinvestment of maturing securities into higher-yielding assets. Average deposits increased by $3.6 billion sequentially to $151.2 billion, while average loans held for investment increased by $1.5 billion to $111.6 billion.
Noninterest income totaled $744 million, driven by a $45 million sequential increase in investment banking and debt placement fees. Total noninterest expense was $1.245 billion, up $28 million from the prior quarter, primarily due to a $29 million increase in personnel expenses related to incentive compensation and continued investments in people.
Asset quality metrics improved, with net loan charge-offs decreasing to $89 million, or 0.32% of average total loans, from $115 million in the prior quarter. The company’s Common Equity Tier 1 ratio was 11.1% at September 30, 2026. During the quarter, KeyCorp repurchased $320 million of common shares and generated a return on tangible common equity exceeding 15%.
