KeyCorp

Strong results + momentum toward ROTCE / revenue targets - Q3’26 earnings: $0.51 EPS, +24% YoY. - Q3 revenue: record >$2B, +8% YoY. - PPNR record; return on tangible common equity (ROTCE) 15.1%, +260 bps YoY, and management reiterates progress toward 15%+ ROTCE by year-end 2027 (and long-term 16–19% target). - Management attributes performance to the relationship-focused business model (deposits + commercial payments + wealth/investment banking).

Net interest income / margin: solid expansion, but with Q4 “noise” - NIM +6 bps sequentially to 2.95% (drivers: commercial loan growth, funding optimization from client deposits, swaps/securities repricing, and one additional day). - Updated full-year guidance (key items): - NII growth ~10% (tightened from 9%–11%). - Average loan growth ~5% (prior 4%–5%); average commercial loan growth ~10% (prior 8%–10%). - Net charge-offs 37–39 bps (improving vs prior 40–45 bps). - Q4’26 outlook: NIM ~3%; management frames this as slightly dilutive from a NIM perspective due to capital optimization / preferred structure changes but de minimis EPS impact. - Surprising/important nuance: Q4 is expected to have “noise”/timing impacts, but the bigger bridge story is about fixed-asset repricing and deposit growth.

Credit quality improving; still reserved for uncertainty - Provision detail: $61M total (includes $89M net charge-offs = 32 bps, plus $28M reserve release). - Asset quality: - Net charge-off ratio improves to 32 bps. - NPA ratio improves 19 bps sequentially to 55 bps (lowest since late 2023). - Criticised loan ratio ~4.9% stable. - Management emphasizes they remain “well reserved” amid geopolitical/macro uncertainty and qualitative builds partially offset improved portfolio performance.