Keefe, Bruyette & Woods analyst David Konrad has maintained an Outperform rating on KeyCorp while raising the price target to $26 from $25. This follows a recent adjustment by RBC Capital, which raised its target to $25 from $24. The revised targets reflect updated market assessments and confidence in the bank's solid performance metrics, including a 22% year-over-year increase in net income to $472 million in the second quarter of 2026.

KeyCorp reported total taxable-equivalent revenue of $1,964 million for the second quarter of 2026, a 6.7% increase from the year-ago period. The net interest margin improved to 2.89%, driven by reduced deposit costs and a strategic shift toward higher-yielding commercial and industrial loans. However, total noninterest expense rose 5.5% year-over-year to $1,217 million, primarily due to increased personnel costs.

Capital and Shareholder Returns

The bank's capital ratios remained strong, with an estimated Common Equity Tier 1 ratio of 11.2% at June 30, 2026. During the quarter, KeyCorp repurchased $341 million of common shares and declared a dividend of $0.205 per share. The return on average tangible common equity stood at 12.89%, up from 11.09% in the prior year.

Asset Quality and Loan Growth

Average total loans grew 4.1% year-over-year to $110,072 million, led by an 11.7% increase in commercial and industrial loans. Conversely, consumer loans declined 7.4% due to the intentional run-off of low-yielding assets. Net loan charge-offs increased slightly to 0.42% of average total loans, while the allowance for credit losses stood at 1.56% of period-end loans.

KeyCorp announced a cash dividend of $0.205 per share on its outstanding common shares for the third quarter of 2026. The dividend is payable on September 15, 2026, to holders of record as of the close of business on September 1, 2026. The declaration was made by the company's Board of Directors.

In addition to the common share dividend, KeyCorp declared dividends on six series of preferred stocks. All preferred dividends are payable on September 15, 2026, to holders of record as of the close of business on August 31, 2026, for the period from June 15, 2026, to September 15, 2026.

The Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series D, will receive a dividend of $312.50 per share, equivalent to $12.50 per depositary share. The Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E, will receive $15.3125 per share, equivalent to $0.382813 per depositary share.

The Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F, will receive $14.1250 per share, equivalent to $0.353125 per depositary share. The Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G, will receive $14.0625 per share, equivalent to $0.351563 per depositary share.

The Fixed Rate Reset Perpetual Non-Cumulative Preferred Stock, Series H, will receive $15.50 per share, equivalent to $0.3875 per depositary share.

Dividend Details

KeyCorp is headquartered in Cleveland, Ohio, and provides financial services through KeyBank National Association. The company operates approximately 950 branches and 1,100 ATMs across 15 states.