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KeyCorp's 26% earnings jump rests on a margin still finding its footing

7/21/2026

KeyCorp posted second-quarter 2026 net income of $472 million, or $0.44 per diluted common share, a 26% increase year-over-year. Revenue came in at $1.96 billion, up 7% from the prior-year period.

Those two numbers move at different speeds, and the gap between them is what the quarter is actually about. Net interest income carries the result Net interest income rose 9% year-over-year and 2% sequentially.

The net interest margin came in at 2.89%, up 2 basis points sequentially. Neither figure alone is a headline.

Together, they describe a bank where the core spread business is growing, if at a measured pace, and where that growth is translating directly into the earnings line.

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