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Research Alert: Key: Q1 Earnings Beat As Recovery Continues

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

KeyCorp (KEY) posted solid Q1 2026 results with operating EPS of $0.44 vs. $0.33 a year ago, beating consensus by $0.03. Revenue of $1.95B beat consensus by 1% but declined 3% sequentially, with investment banking fees of $197M showing 13% Y/Y growth despite 19% Q/Q decline due to seasonality. The strong performance reflects successful execution of KEY's turnaround strategy, driven by net interest margin expansion and improved operational efficiency. Management maintains its goal of achieving 15%+ return on tangible common equity by year-end 2027. Net interest income grew 11% Y/Y as net interest margin expanded 29 basis points to 2.87%, benefiting from deposit beta management and reinvestment of low-yielding securities. Credit quality remained healthy with net charge-offs at 38 basis points and a strong allowance coverage ratio of 1.60%. KEY accelerated capital deployment with $389M in share repurchases while maintaining a robust CET1 ratio of 11.4%, and ROTCE improved 59 basis points Q/Q to 13.0%.

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