KeyCorp Delivers Mixed Q4 Results with Earnings Beat Amid Revenue Miss, Stock Down 3%

KeyCorp (NYSE:KEY) posted mixed results for the fourth quarter, with a strong earnings beat offset by a revenue shortfall. Following the announcement, shares dropped more than 3% intra-day today as investors weighed the bank’s performance.

The Cleveland-based financial institution reported adjusted earnings per share of $0.38, surpassing analyst expectations of $0.33. However, revenue fell significantly short, reaching $865 million compared to Wall Street's projection of $1.74 billion.

Net interest income grew 10% quarter-over-quarter to $1.06 billion, buoyed by higher interest rates. KeyCorp also reported solid growth across its investment banking, payments, and wealth management segments, with fees climbing 27% year-over-year.

Despite the positive earnings, the bank recorded a net loss from continuing operations attributable to common shareholders of $279 million, or $0.28 per diluted share. This was primarily driven by $657 million, or $0.66 per share, in after-tax charges linked to the sale of securities.

The company highlighted its financial resilience, with its Common Equity Tier 1 (CET1) ratio—a key metric of capital strength—rising 120 basis points to 12% from the prior quarter.

Credit quality metrics showed improvement, with net loan charge-offs declining 26% quarter-over-quarter and criticized loans dropping 7%, signaling better loan performance.