KeyCorp (NYSE:KEY) reported record full-year results for 2025, capped by a fourth quarter that saw net income climb to $474 million, or $0.43 per diluted share.
The bank's performance was bolstered by significant positive operating leverage and a strategic expansion of its wealth management business, which saw assets under management (AUM) hit a new high of $70 million.
For the full year, the company generated record revenue of $7.5 billion, a 16% increase on an adjusted basis compared to 2024.
The fourth quarter specifically contributed $2 billion to that total, driven by a taxable-equivalent net interest income of $1.22 billion.
KeyCorp’s net interest margin (NIM) also widened to 2.82%, reflecting the successful redeployment of low-yielding investments into higher-earning assets and an improved funding mix.
The bank’s efficiency gains were evident in its pre-provision net revenue (PPNR), which rose $46 million sequentially in the fourth quarter.
For the full year, adjusted PPNR surged 44%, a result of the bank generating substantial operating leverage as revenue growth outpaced expenses.
KeyCorp also reinforced its capital cushion, ending the year with an estimated Common Equity Tier 1 (CET1) ratio of 11.7%.
The strong capital levels allowed the bank to return value to shareholders, including $200 million in common share repurchases during the final quarter of the year.
As the lender heads into 2026, it remains focused on its goal of reaching $100 billion in AUM by 2030, supported by the continued growth of its mass affluent and commercial payment platforms.