Yahoo Finance

• Revenue: Up 16% year-over-year.

• Earnings Per Share (EPS): $0.33 for the first quarter.

• Net Interest Income: $1.1 billion, up 4% sequentially and 25% year-over-year.

• Noninterest Income: Increased 3% year-over-year.

• Provision for Credit Losses: $118 million, including $110 million of net charge-offs and an $8 million reserve build.

• CET1 Ratio: 11.8%.

• Tangible Book Value Per Share: Increased roughly 26% year-over-year.

• Average Loans: $105 billion on a period-end basis, up about $0.5 billion.

• Commercial Loans: Up $1.2 billion sequentially.

• Deposits: Up mid-single digits year-over-year; household relationships up 2%.

• Investment Banking Fees: Record for the first quarter, up 3% year-over-year.

• Net Charge-Offs: $110 million, down 4% sequentially.

• Nonperforming Loans: Down 9% sequentially.

• Net Interest Margin (NIM): Increased 17 basis points to 2.58%.

• Share Repurchase Authorization: $1 billion, expected to commence in the second half of the year.

• Warning! GuruFocus has detected 5 Warning Signs with KEY.

Release Date: April 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• KeyCorp (NYSE:KEY) reported a 16% increase in revenues year-over-year, with expenses remaining flat, indicating strong financial performance.

• The company achieved a pre-provision net revenue increase of over $90 million from the previous quarter.

• KeyCorp (NYSE:KEY) ended the quarter with a CET1 ratio of 11.8%, positioning it at the high end of its peer group.

• The company reported record first-quarter investment banking fees, with pipelines remaining at historically elevated levels.

• KeyCorp (NYSE:KEY) announced a $1 billion share repurchase authorization, expected to commence in the second half of the year, reflecting confidence in its financial position.

Negative Points

• The macroeconomic environment remains uncertain, with inflation and geopolitical risks potentially impacting client sentiment and market conditions.

• KeyCorp (NYSE:KEY) noted a pause in transactional activity from clients due to recent tariff announcements and market uncertainty.

• The company is performing a name-by-name review of its largest clients to assess exposure to tariffs, indicating potential risks in its loan portfolio.

• Despite strong performance, KeyCorp (NYSE:KEY) acknowledged that future charge-offs will depend on the path of the economy, reflecting ongoing credit risk concerns.

• The company expects expenses to increase throughout the year due to investment spend, salary increases, and other personnel costs, which could impact profitability.