Q2 2026 KeyCorp Earnings Call Transcript
Key Points
- KeyCorp (KEY) reported a strong year-over-year earnings growth of 26%, with earnings per share reaching $0.44.
- Revenue increased by 7% year-over-year, and pre-provision net revenue grew by 9%, indicating solid financial performance.
- Net interest margin expanded to 2.89% with expectations to exceed 3% by year-end, driven by commercial loan growth and portfolio repricing.
- The company successfully repurchased over $340 million of common stock, on track to meet its full-year share repurchase target of at least $1.3 billion.
- KeyCorp (KEY) announced a strategic acquisition of Clearwater UK, enhancing its middle market advisory franchise and expanding international M&A capabilities.
- Non-performing loans increased modestly, reflecting idiosyncratic items, although broader portfolio performance remains stable.
- Investment banking results fell short of expectations, despite strong industry performance, with a need for improvement in the second half.
- The company faces challenges in maintaining deposit growth, with a reliance on wholesale funds due to seasonal low deposits.
- Loan growth, while strong, came with tighter spreads due to higher credit quality, potentially impacting net interest margin.
- The macroeconomic environment remains uncertain, posing potential risks to KeyCorp (KEY)'s financial outlook and strategic goals.
Good morning, and welcome to KeyCorp's second-quarter 2026 earnings conference call. My name is Megan, and I will be your moderator for today. (Operator Instructions) As a reminder, this conference is being recorded.
And I would now like to turn the conference over to Troy Gates, KeyCorp's 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 2026 earnings conference call. I'm here with Chris Gorman, our Chairman and Chief Executive Officer; Clark Khayat, our Chief Financial Officer; and Mo Ramani, 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, including non-GAAP measures. This covers our earnings materials as well as remarks made on
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