KeyCorp reported strong Q4 results, with EPS of $0.43 and revenue exceeding $2 billion (+12% YoY). NII increased by 15%, NIM reached 2.82%, and management anticipates ~7% revenue growth in 2026. The company plans at least $1.2 billion in buybacks this year and is increasing investments in technology and AI.

KeyCorp executives highlighted improved profitability and credit trends during the fourth-quarter earnings call. The company met or exceeded its 2025 financial targets, with record revenue growth of 16% year-over-year. Expenses rose 4.6%, translating to about 1,200 basis points of operating leverage.

Net interest income rose 15% YoY, and non-interest income increased by 8%. Investment banking and debt placement fees were up 10%, while trust and investment services income rose 10%. The company’s assets under management reached a record $70 billion.

The company outlined its 2026 guidance, including revenue growth of about 7%, driven by NII and non-interest income growth. Expenses are expected to increase by 3-4%, with average loans up 1-2% and a stable net charge-off ratio. The tax rate is projected to be around 22-23%.

KeyCorp plans to repurchase at least $1.2 billion of shares in 2026, with an increased focus on technology investments and improving processes. The company’s organic focus remains on middle market and payments, investment banking, and wealth services, with continued investments in AI.

Management detailed board changes, including new nominations and retirements. The company emphasized its commitment to ongoing investments in technology and AI, with a focus on enhancing processes and customer experience. KeyCorp is not focused on bank acquisitions but is interested in complementary fee-based acquisitions.

Read more at Yahoo Finance: KeyCorp Q4 Earnings Call Highlights