KeyCorp (KEY) official guidance

Given our stronger than expected business performance, I have even greater confidence in our ability to generate a return on tangible common equity exceeding 15% by the end of 2027 on our path to achieving our 16%-19% long-term target.

I remain confident in our ability to generate a return on tangible common equity exceeding 15% by year-end 2027.

Return on tangible common equity exceeded 13% as we continue to make significant progress with respect to our goal of 15%+ return on tangible common equity by year-end 2027.

Return on tangible common equity exceeded 13%, reflecting significant progress toward achieving our goal of 15%+ return on tangible common equity by year-end 2027.

As we turn the page to 2026, Clark will go through our financial guidance shortly, but I am confident we will deliver another year of outsized revenue and earnings growth and make substantial progress toward our commitment to achieve a 15%-plus return on tangible common equity by year-end 2027.

We believe we can achieve a Return on tangible common equity of 15% or better on a run rate basis by the end of 2027.

Average loans are expected to increase 2%-4%, compared to our previous guidance of 1%-2%, and average commercial loans are now expected to grow 6%-8% this year.

We expect average loans to grow 1%-2%, with commercial loans growing at about 5% as we continue to remix the runoff of consumer loans into higher-yielding relationship-based commercial loans.

Average loans are expected to increase 2%-4%, compared to our previous guidance of 1%-2%, and average commercial loans are now expected to grow 6%-8% this year.

We expect average loans to grow 1%-2%, with commercial loans growing at about 5% as we continue to remix the runoff of consumer loans into higher-yielding relationship-based commercial loans.

We now expect full year net interest income growth of 9%-10%, compared to our prior guide of 8%-10%.

We expect revenue to be up about 7%, driven by net interest income growth of 8%-10% and non-interest income growth of 3%-4%.

We now also expect to exit the year with a net interest margin of approximately 3.05% on a stable earning asset base relative to the Q1.

We continue to feel very comfortable with our full-year expense growth guide of 3%-4%.

As a result, I am highly confident we will grow revenues at a high single-digit rate this year, with expenses growing approximately half that rate, indicating substantial operating leverage again this year.

While we do currently expect investment banking fees to decline in the Q2 compared to the record Q1, given current market conditions, we continue to feel very comfortable that we can grow investment banking fees in the mid-single digits for the full year.

Within that, we expect investment banking fees to grow about 5%, wealth fees to grow in the high single digits, and commercial payments fees to grow in the low double digits.

We remain well positioned to drive strong revenue and earnings growth in 2026 through the continued delivery of our differentiated capabilities and exceptional service to our clients.

We expect revenue to be up about 7%, driven by net interest income growth of 8%-10% and non-interest income growth of 3%-4%.

Subject to market conditions, we expect to buy back at least $1.3 billion of our shares in 2026, up from the $1.2 billion we previously communicated.

As Chris mentioned earlier, we plan to repurchase at least $300 million worth of shares in the first quarter and at least $1.2 billion for the full year 2026.

Lastly, we are investing approximately $1 billion in technology this year that will give us new product and service capabilities and deliver better outcomes and experiences for those we serve.