Company: KEY-PI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000091576-25-000058
Chunk: 5

Company: KEYCORP /NEW/
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 2
Chunk 5
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 the first quarter of 2025. 

•Our continuous focus on maintaining our risk discipline has and should continue to position us to perform well through all business cycles. Net charge-offs remain at the low-end of our long-term target range of 40 to 60 basis points and nonperforming loans are down 9% quarter-over-quarter.

•Investment banking and debt placement fees had a record first quarter driven by syndication and debt capital markets activity.

•During the first quarter we announced a $1 billion dollar share repurchase authorization from our Board of Directors, under which we currently expect to commence purchases in the second half of the year. The pace and magnitude of share buybacks will depend on a variety of factors, including general market conditions, the stock price, regulatory requirements and limitations, corporate liquidity requirements and priorities, and other factors.

•We ended the quarter with a Common Equity Tier 1 ratio of 11.8%(a), up approximately 150 basis points year over year, which positions us to continue to support existing and prospective clients.

                (a) March 31, 2025 capital ratios are estimates 

Business outlook 

Consistent with the forward guidance we provided on April 17, 2025, we expect these current year results, that is full year 2025 vs. full year 2024:

Category2024 BaselineFY2025 (vs FY 2024)(a)Average loans$107.7 Billiondown 2% to 5%Ending loans$104.3 BillionFlat vs YE 2024PE Commercial Loans$71.9 Billionup 2% to 4%Net interest income (TE)$3,810 Millionup ~20%(b)Adjusted noninterest income(c)$2,645 Millionup 5%+Adjusted noninterest expense(c)$4,520 Millionup 3% to 5%Net charge-offs to average loans41 bps40 to 45 basis points (FY2025)Effective tax rate~21% to 22% (FY2025)Tax-equivalent Effective Rate(d)~23% to 24% (FY2025)

(a) Ranges are shown on an operating basis.

(b) Additional Guidance: Net interest income (TE): 10%+ 4Q25 vs. 4Q24. 

(c) Refer to the GAAP to Non-GAAP Reconciliation within Management's Discussion and Analysis of this Form 10-Q for the reconciliation of these non-GAAP measures.

(d) Reflects