$KEY · KEYCORP /NEW/
KeyCorp filed its Q3 2026 10-Q, reporting consolidated net income of $579M ($0.51 GAAP EPS) on total revenue of $2.052B, up 8.3% YoY. The Consumer Bank segment contributed $211M in net income on $1.049B revenue. Tangible common equity fell to $13.07B, pushing the TCE ratio to 6.9% from 8.1% a year ago, while total assets grew to $193.1B.
- Consolidated Q3 net income of $579M vs. $453M in prior-year quarter, with GAAP EPS of $0.51.
- Total revenue (TE) of $2.052B, up 8.3% YoY, driven by net interest income growth.
- Tangible common equity to tangible assets ratio fell to 6.9% from 8.1% a year ago.
- Average total loans and leases declined 7.9% YoY to $32.6B, with broad-based contraction across categories.
- Provision for credit losses rose 37.5% YoY to $55M; net charge-off ratio ticked up to 0.57%.
Extended-hours trading shows KEY at $21.18, down 0.24% from the regular close of $21.23. The modest decline suggests the market is weighing the sharp TCE ratio compression against solid revenue growth.
The TCE ratio's slide to 6.9% — well below regional bank norms — raises capital adequacy questions even as earnings momentum improves.
KeyCorp's loan contraction mirrors regional bank peers navigating the higher-for-longer rate environment, though its 6.9% TCE ratio is notably below the ~8%+ levels typical of well-capitalized regionals, raising capital flexibility questions.
Tangible common equity ratio compressed to 6.9% from 8.1% YoY, driven by a $2.3B decline in tangible common equity and AOCI deterioration to -$3.865B. Loan portfolio contracted 7.9% YoY, with commercial loans down 10.3% and consumer categories also shrinking, signaling potential earnings headwinds if balance sheet contraction persists.