Q3 2025 KeyCorp Earnings Call Transcript
Key Points
- KeyCorp (KEY) reported earnings per share of $0.41, with a return on assets surpassing 1%.
- Pre-provision net revenue increased by $33 million quarter over quarter, marking the sixth consecutive quarter of improvement.
- Net interest income benefited from strong business dynamics across both deposits and loans, with deposit balances up and cost of deposits down.
- Asset quality metrics showed positive trends, with non-performing assets and criticized loans declining.
- KeyCorp (KEY) achieved a 2.75% net interest margin, reaching its year-end target one quarter ahead of schedule.
- Despite improvements, the consumer loan segment experienced planned runoff, impacting overall loan growth.
- Non-interest expenses increased by 7% year over year, driven by higher personnel expenses and technology investments.
- The commercial mortgage servicing fees are expected to decline in the fourth quarter due to lower Fed funds rates.
- The bank's efficiency ratio remains higher than some peers, partly due to its mix of fee-based businesses.
- There is ongoing uncertainty in the macroeconomic environment, which could impact future capital deployment and growth strategies.
Good morning and welcome to KeyCorps 3rd quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to Brian Monney, Key Corp, director of investor relations. Please go ahead.
:
Thank you, operator, and good morning everyone. I'd like to thank you for joining KeyCorp's 3rd quarter 2025 earnings conference call. I am here with Chris Gorman, our Chairman and Chief Executive Officer, Clarkayet, our Chief Financial Officer, and Mo Romani, our Chief Risk 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,
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