KeyCorp Reports Q1 2025 Revenue Up 16% Year-on-Year with Record First-Quarter Investment Banking Fees and New $1 Billion Buyback

KeyCorp reported first-quarter 2025 net income of $370 million, or $0.33 per diluted share, as total revenue climbed 16% year-on-year to $1.8 billion.

Chairman and chief executive Chris Gorman said the results "marked a strong beginning to the year", with revenue up 16% year-on-year while expenses were essentially flat.

NET INTEREST MARGIN AND CREDIT

Net interest margin expanded by 17 basis points on a sequential basis to 2.58%. Net interest income rose 4% quarter-on-quarter and 25% year-on-year. Management attributed the sequential margin gain to lower funding costs, including interest-bearing deposit costs, the second tranche of the securities repositioning completed in the fourth quarter, and the redeployment of low-yielding investments into higher-yielding securities.

Credit quality continued to improve during the quarter, with nonperforming assets down 9% and net charge-offs down 4% from the fourth quarter, and the net charge-off ratio stable at 0.43%. The CET1 ratio stood at 11.8% at 31 March 2025.

INVESTMENT BANKING FEES AND BUYBACK

Investment banking and debt placement fees of $175 million were a record for a first quarter.

In March 2025, KeyCorp's board authorised a new share repurchase programme of up to $1 billion.