Q2 2025 KeyCorp Earnings Call Transcript
Key Points
- KeyCorp (KEY) reported a strong second quarter with earnings per share of $0.35, despite adding $36 million to loan loss reserves.
- Revenues increased by 21% year-over-year, while expenses rose only 6% excluding charitable contributions.
- Commercial loan growth was robust, achieving the full-year target of $3 billion by mid-year.
- Investment banking had its second-best first half in history, with fees growing 10% year-over-year.
- Credit metrics improved, with declines in net charge-offs, criticized loans, and delinquencies.
- Provision for credit losses was $138 million, driven by loan growth and macroeconomic scenario deterioration.
- Average deposits declined slightly, reflecting reductions in higher-cost commercial client balances.
- Interest-bearing deposit costs decreased, but competition for deposits is expected to increase.
- Loan growth guidance was revised, with expectations of a 1-3% decline in average loans for the full year.
- The macroeconomic environment remains uncertain, impacting the company's ability to predict future performance.
Good morning and welcome to KeyCorp's second-quarter 2025 earnings conference call.
(Operator Instructions)
As a reminder, this conference is being recorded.
I would now like to turn the conference over to Brian Mauney, KeyCorp, Director of Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone.
I'd like to thank you for joining KeyCorp's second-quarter 2025 earnings conference call.
I'm here with Chris Gorman, our Chairman and Chief Executive Officer; and Clark Khayat, our Chief Financial Officer.
As usual, we will reference our earnings presentation slides, which can be found in the Investor Relations section of the key.com website. In the back of the presentation, you will find our statement on forward-looking disclosures and certain financial measures, including non-GAAP measures. This covers our earnings materials as well as remarks made on this morning's call. Actual results may differ materially from forward
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