KeyCorp

Strong Q3 performance; ROTCE target on track - Reported Q3 EPS: $0.51 (+24% YoY) and record quarterly revenue: >$2B (+8% YoY). - PPNR growth: $60M (linked-quarter basis); ROTC(E) / ROTCE (return on tangible common equity): 15.1%, up +260 bps YoY, and exceeded 15% in the quarter. - Company reiterates path to 15%+ ROTCE by end of 2027 (long-term target: 16%–19%).

Core business momentum: deposits, loans, and fee income all working - Deposits: average total deposits +$3.6B (+2.4% QoY/seq context); interest-bearing deposit cost up only +3 bps; funding costs up only +1 bp. - NIM / NII: NIM expanded +6 bps sequentially to 2.95%, driven by fixed asset repricing + funding optimization + swaps/securities repricing. - Loan growth: average loans +$1.5B sequentially; C&I loans +4% (~$2.3B average) and period-end C&I loans +$3.3B (+5%) with utilization up +200 bps to 33% (highest in 3+ years). - Fees: non-interest income +6% YoY; investment banking debt placement fees +27% sequentially; cards/payments fees +8% YoY; wealth AUM at another record.

Credit quality improving, but management still builds reserves - Net charge-offs: 32 bps annualized (Q3 charge-offs $89M); improved and non-performing assets decreased 19 bps sequentially to 55 bps (lowest since late 2023). - Provision for credit losses: $61M, including reserve release of $28M (benefits from improved portfolio performance/remix), partially offset by qualitative builds for macro/geopolitical uncertainty. - Criticized loan ratio: stable at 4.9%.