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# KeyCorp's Third-Quarter EPS Rises 24% From A Year Ago, On Record Revenue Of $2.04 Billion
- URL: https://www.bullished.co/keycorps-third-quarter-eps-rises-24-from-a-year-ago-on-record-revenue-of-2-04-billion-713a9096/
- Published: 2026-10-20T10:52:51.000Z
- Updated: 2026-10-28T19:54:17.000Z
- Description: The Cleveland bank also lifted its 2026 loan outlook and lowered its expected charge-off rate, according to its earnings presentation.
- Author: Matteo Parrino
- Tags: Earnings, KEY, Industry: Financials

[KeyCorp](https://www.bullished.co/tag/key/) earned [$537 million](https://www.sec.gov/Archives/edgar/data/0000091576/000009157626000020/key-20261020.htm?ref=bullished.co) from continuing operations for common shareholders in the third quarter, or $0.51 per diluted share, according to an [8-K](https://www.bullished.co/learn/8-k-items-explained/) filed Tuesday. That is up 24% from $0.41 a year earlier and about 16% from $0.44 in the second quarter.

## What the results show

Revenue hit a record $2.04 billion, up 8% from a year ago and 4% from the second quarter, [the earnings release](https://www.sec.gov/Archives/edgar/data/0000091576/000009157626000020/a3q26earningsrelease.htm?ref=bullished.co) says. Net interest income was $1.3 billion and noninterest income was $744 million.

The net interest margin, a measure of lending profit, was 2.95%, up 20 basis points from a year earlier and 6 basis points from the second quarter. Return on tangible common equity was 15.11%, against 12.89% in the second quarter.

Investment banking and debt placement fees rose 27% from the second quarter to $214 million, which the company's slides tie to higher merger-advisory fees and syndications. Average deposits grew $3.6 billion from the second quarter, while average loans held for investment rose $1.5 billion.

Credit improved. Net charge-offs, loans written off as uncollectable, fell to $89 million from $115 million in the second quarter. Nonperforming loans dropped to $618 million from $809 million.

## What changes: outlook and capital

In its [earnings presentation](https://www.sec.gov/Archives/edgar/data/0000091576/000009157626000020/a3q26earningspresentatio.htm?ref=bullished.co), KeyCorp now expects 2026 average loans to rise about 5%, versus 4% to 5% before. It sees net charge-offs of 37 to 39 basis points of average loans, down from a prior 40 to 45.

It repurchased $320 million of common shares in the quarter at an average $22.57, and expects $1.3 billion of buybacks in 2026\. The estimated Common Equity Tier 1 ratio was 11.1%, versus 11.2% at the end of June.

Chairman and CEO Chris Gorman said the results "reinforce our confidence in achieving and sustaining a return on tangible common equity of 15%+ by the end of 2027."

## What to watch

KeyCorp targets a fourth-quarter net interest margin exit rate of about 3.00%. Its fourth-quarter 2027 targets are a margin of 3.25% or more and a return on tangible common equity of 15% or more.

The company's slides put the fourth-quarter margin exit rate at about 3.00%, against 2.95% in the third quarter.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — KEYCORP /NEW/ (KEY)](https://www.sec.gov/Archives/edgar/data/0000091576/000009157626000020/key-20261020.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit a3q26earningsrelease.htm — KEYCORP /NEW/ 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000091576/000009157626000020/a3q26earningsrelease.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit a3q26earningspresentatio.htm — KEYCORP /NEW/ 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000091576/000009157626000020/a3q26earningspresentatio.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit a3q26erex993.htm — KEYCORP /NEW/ 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000091576/000009157626000020/a3q26erex993.htm?ref=bullished.co) — SEC EDGAR

### More on KeyCorp

- [KeyCorp CEO Names Real Estate Retrading 'The One Wildcard' For Investment Banking Pipelines](https://www.bullished.co/keycorp-ceo-names-real-estate-retrading-the-one-wildcard-for-investment-banking-pipelines-45bd0a84/)

[All KeyCorp (KEY) coverage →](https://www.bullished.co/tag/key/)