KeyCorp

Strong Q3 performance; clear momentum toward 15%+ ROTCE - EPS $0.51 (+24% YoY). - Record quarterly revenue > $2B (+8% YoY). - PPNR up $60M (linked-quarter basis) and ROTC(E)/return on tangible common equity >15% (15.1%, up 260 bps YoY). - Management reiterates confidence in sustaining progress toward 15%+ ROTCE by YE 2027 and the broader 16–19% long-term target.

NIM and funding strength driven by deposits + repricing; guidance tightened - Net interest margin (NIM) expanded +6 bps sequentially to 2.95%; reflects fixed asset repricing, funding optimization, commercial loan growth, and balance-sheet management. - Funding cost rose only +1 bp; interest-bearing deposit costs up +3 bps—supports improved profitability. - Updated FY2026 guidance: - Net interest income growth ~10% (tightened from 9–11% previously). - Average loan growth ~5% (up from 4–5%). - Average commercial loan growth ~10% (up from 8–10%). - Net charge-offs ~37–39 bps (improved from 40–45 bps). - Q4 2026 NIM ~3.00% and guidance notes Q4 NIM is slightly pressured by preferred capital actions but EPS impact is “de minimis.”

Credit quality remains resilient; provisioning improved but with caution - Provision for credit losses $61M with net charge-offs 32 bps (i.e., $89M) and reserve release $28M. - Asset quality continues improving: non-performing assets down 19 bps to 55 bps (lowest since late 2023). - Criticized loan ratio ~4.9% stable. - Management says they’re well reserved across economic/geopolitical uncertainty, i.e., optimistic but not complacent.