Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 5

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 5
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 billion for the second quarter of 2025, driven by net positive cash inflows and market impacts on portfolios. 

•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 are tracking at the low-end of our current outlook for the year.

•Our noninterest income increased 10% year-over-year, driven by differentiated fee businesses strategically focused on targeted scale.

•We ended the quarter with a Common Equity Tier 1 ratio of 11.7%(a), up approximately 120 basis points year-over-year, which positions us to continue to support existing and prospective clients.

                (a) June 30, 2025 capital ratios are estimates 

Business outlook 

Consistent with the forward guidance we provided on July 22, 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 1% to 3% (previously down 2% to 5%)Ending loans$104.3 Billionup ~2% vs YE 2024 (previously Flat vs YE 2024)PE Commercial Loans$71.9 Billionup ~5% (previously up 2% - 4%)Net interest income (TE)(c)$3,810 Millionup 20% to 22%(b) (previously up ~20%)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): 11%+ 4Q25 vs 4Q24 (previously 10%+ 4Q25 vs. 4Q24).

(c)    Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly related GAAP financial measures because Key is unable to provide without unreasonable effort a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity