Key reported second-quarter 2026 net income from continuing operations attributable to common shareholders of $472 million, or $0.44 per diluted common share, on total taxable-equivalent revenue of $1.964 billion. Revenue rose 6.7% year-over-year and net interest income (TE) was $1.258 billion with a net interest margin of 2.89%. The bank repurchased $341 million of common shares during the quarter and estimated Common Equity Tier 1 ratio was 11.2% at June 30, 2026.

Financial Highlights

  • Total revenue (taxable-equivalent): $1,964 million for Q2 2026 (up 6.7% vs. Q2 2025).
  • Net interest income (taxable-equivalent): $1,258 million for Q2 2026 (up 9.4% vs. Q2 2025); net interest margin (TE) 2.89%.
  • Net income from continuing operations attributable to Key common shareholders: $472 million; diluted EPS $0.44 for Q2 2026 (vs. $0.35 in Q2 2025).
  • Net income attributable to Key (consolidated): $509 million for Q2 2026; total net income to common shareholders $473 million.
  • Capital and shareholder returns: repurchased $341 million of common shares in the quarter; estimated Common Equity Tier 1 ratio 11.2% (6/30/2026).

Business Highlights

  • Loan growth and mix: Period-end total loans increased sequentially by approximately $1.2 billion; commercial and industrial loans grew by $2.1 billion sequentially (average C&I loans up 11.7% year-over-year).
  • Deposit dynamics: Average total deposits were $147.6 billion, essentially flat year-over-year, with growth in non-time deposits and a decline in time deposits; cost of total deposits declined to 1.63%.
  • Segment performance: Consumer Bank revenue and income improved (Consumer Bank net income $203 million, assets under management reached a record $74.2 billion); Commercial Bank net interest income and loan volumes expanded with Commercial Bank net income $423 million.
  • Asset quality: Net loan charge-offs were $115 million (0.42% of average total loans); nonperforming loans rose to $809 million (0.73% of period-end portfolio loans) and allowance for credit losses was $1.72 billion (1.56% of period-end loans) after a $23 million reserve release.
  • Operational momentum: Investment banking pipelines grew sequentially (investment banking and debt placement fees remained a material revenue source) and commercial payments and wealth management showed strong growth, supporting relationship-driven revenue expansion.

Original SEC Filing:

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