KeyCorp reported second-quarter 2026 net income of $0.44 per diluted share, flat with the first quarter, while first-half diluted EPS rose 28% year over year to $0.88.
Revenue in 2Q26 edged up to $1.964 billion from $1.953 billion in 1Q26, a gain of about 1%. Net interest income increased to $1.258 billion from $1.230 billion, up 2.3% quarter over quarter, while noninterest income slipped to $706 million from $723 million. Noninterest expense rose to $1.217 billion from $1.181 billion.
Credit costs improved in the quarter: provision for credit losses fell to $92 million from $106 million, down 13%. Return on assets eased to 1.08% from 1.14%, while return on tangible common equity was 12.9%, essentially unchanged from 13.0%. The cash efficiency ratio worsened to 61.9% from 60.4%.
For the first half, revenue reached $3.917 billion, up 8% from the prior-year period. Net interest income climbed 10% to $2.488 billion, noninterest income rose 5% to $1.429 billion, and noninterest expense increased 5% to $2.398 billion. Provision for credit losses fell 23% to $198 million.
On the balance sheet, period-end C&I loans grew 3% sequentially, and assets under management hit a record $74 billion. Relationship households increased 3% year over year. The company ended the period with a CET1 ratio of 9.8% and an allowance for credit losses equal to 1.56% of period-end loans.
KeyCorp said it repurchased $341 million of stock in the second quarter and expects $1.3 billion of planned share repurchases in 2026. Following these announcements, the company's shares moved 0.05%, and are now trading at a price of $20.25. For more information, read the company's full 8-K submission here.
