KeyCorp posted a solid second quarter, with the market responding positively to its performance. Management attributed revenue growth primarily to robust commercial loan activity, improvement in fee-based businesses, and disciplined management of deposit costs. CEO Christopher Gorman emphasized that commercial loan pipelines and client backlogs were strong, and that the bank had already achieved its full-year commercial loan growth target by midyear. Fee income from investment banking, commercial payments, and mortgage servicing also contributed, benefiting from increased client activity. Gorman noted, “Revenues were up 21% from a year ago, while expenses were up about 6%, excluding the charitable contribution.”

Is now the time to buy KEY? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions KeyCorp’s Q2 Earnings Call

• Ryan Nash (Goldman Sachs) asked about client sentiment and pipeline strength. CEO Christopher Gorman described clients as “cautiously optimistic” and emphasized healthy balance sheets and growth opportunities, while CFO Clark Khayat said improved guidance reflects broad-based loan and deposit momentum.
• Robert Siefers (Piper Sandler) inquired about deposit pricing strategy. Khayat explained the bank’s decision to let higher-cost deposits roll off and noted strong client retention in lower-yielding products despite industry competition.
• Ebrahim Poonawala (Bank of America) questioned the path to a higher net interest margin. Khayat projected that margin could reach 3% by the end of 2026, supported by continued runoff of low-yielding assets and redeployment into commercial loans.
• Manan Gosalia (Morgan Stanley) asked about loan and deposit pricing competition. Gorman acknowledged increased competition but said loan pricing has stayed flat, and most commercial clients maintain broader relationships with the bank.
• L. Erika Penala (UBS) sought clarification on loan growth expectations and balance sheet mix. Khayat explained that commercial loan growth could be offset by paydowns in other portfolios and that additional upside depends on macroeconomic and capital markets conditions.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the pace of commercial loan growth and whether institutional and middle-market pipelines remain strong; (2) the impact of deposit pricing competition on funding costs and net interest margin; and (3) continued execution of technology investments and frontline hiring. We will also monitor any shifts in credit quality metrics and the company’s approach to capital deployment, including potential share repurchases.

KeyCorp currently trades at $18.42, in line with $18.32 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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