The earnings call highlighted significant progress in strategic investments and growth in key areas such as net interest income and wealth management. However, challenges remain with negative earnings per share and specific credit charge-offs. The company is positioned for future growth, but near-term headwinds are evident.

Company Guidance

During the Q3 2024 earnings call for KeyCorp (KEY), the company provided robust guidance, emphasizing significant financial progress and strategic initiatives. KeyCorp received an initial $821 million investment from Scotiabank, using $700 million to reposition its securities portfolio, which is expected to enhance quarterly net interest income by over $40 million in Q4. The company reported a 7% quarter-over-quarter increase in net interest income, driven by maturing low-yield swaps and proactive funding cost management. Client deposits rose by 4% year-over-year and 2% sequentially. Fee-based organic growth initiatives showed strong momentum, with investment banking and debt placement fees reaching $171 million, marking one of the best third quarters historically. KeyCorp's CET1 ratio improved by 35 basis points to 10.8%, and they anticipate further securities repositioning upon receiving the final $2.8 billion Scotiabank investment. The guidance reflects confidence in achieving the high end of their $600 to $650 million target for investment banking fees, with potential to exceed if market conditions remain favorable.

Scotiabank Investment and Securities Repositioning

Received $821 million from Scotiabank's minority investment, used $700 million to reposition securities portfolio, resulting in $40 million anticipated addition to quarterly net interest income.

Net Interest Income Growth

Net interest income increased by 7% quarter-over-quarter, driven by deposit growth and proactive funding cost management.

Strong Fee-Based Growth

Investment banking and debt placement fees reached $171 million, one of the best third quarters in the company's history, with M&A backlogs up 10% from the prior quarter.

Record Wealth Management Performance

Assets under management reached an all-time high of $61 billion, up 16% from the prior year, with strong traction in the mass affluent segment.

Improved Capital Ratios

CET1 ratio improved by 35 basis points to 10.8%, with tangible book value increasing nearly 16% sequentially.

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KeyCorp (KEY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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KEY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 21, 2025	2024 (Q4)	0.32 / -	0.25	―	―	―
Oct 17, 2024	2024 (Q3)	0.28 / 0.30	0.29	3.45% (+0.01)
Jul 18, 2024	2024 (Q2)	0.24 / 0.25	0.27	-7.41% (-0.02)
Apr 18, 2024	2024 (Q1)	0.23 / 0.22	0.333	-33.93% (-0.11)
Jan 18, 2024	2023 (Q4)	0.23 / 0.25	0.38	-34.21% (-0.13)
Oct 19, 2023	2023 (Q3)	0.27 / 0.29	0.55	-47.27% (-0.26)
Jul 20, 2023	2023 (Q2)	0.32 / 0.27	0.54	-50.00% (-0.27)
Apr 20, 2023	2023 (Q1)	0.44 / 0.33	0.45	-26.00% (-0.12)
Jan 19, 2023	2022 (Q4)	0.55 / 0.38	0.64	-40.63% (-0.26)
Oct 20, 2022	2022 (Q3)	0.58 / 0.55	0.65	-15.38% (-0.10)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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KEY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 17, 2024	$17.51	$17.06	-2.57%
Jul 18, 2024	$15.84	$15.21	-3.98%
Apr 18, 2024	$13.90	$13.85	-0.36%
Jan 18, 2024	$13.14	$12.53	-4.64%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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