Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 5

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 5
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ows 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 in line with our current outlook for the year.

•Our noninterest income strength continues to be driven by differentiated fee businesses strategically focused on targeted scale. On a quarterly basis, Investment banking and debt placement fees and Trust and investment services fees are up 8% and 7%, respectively, versus the prior year.

•We ended the quarter with a Common Equity Tier 1 ratio of 11.8%(a), up over 100 basis points year-over-year, which positions us to continue to support existing and prospective clients.

                (a) September 30, 2025 capital ratios are estimates 

Business outlook 

Consistent with the forward guidance we provided on October 16, 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%Ending loans$104.3 Billionup ~2% vs YE 2024PE Commercial Loans$71.9 Billionup ~5%Net interest income (TE)(c)$3,810 Millionup 22%(b) (previously up 20% - 22%)Net Interest Margin2.75% - 2.80% in 4Q25 (previously ~2.75%)Adjusted noninterest income(c)$2,645 Millionup 5 -6% (previously up 5%+)Adjusted noninterest expense(c)$4,520 Millionup ~4% (previously up 3% to 5%)Net charge-offs to average loans41 bps40 to 45 basis points (FY2025)Effective tax rate~21% (previously ~21% to 22%)Tax-equivalent Effective Rate(d)~22% (previously ~23% to 24%)

(a)    Ranges are shown on an operating basis.

(b)    Additional Guidance: Net interest income (TE): 13%+ 4Q25 vs 4Q24 (previously 11%+).

(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