NYSE:KEY
KEYCORP /NEW/
A Latin America-focused financial services firm that has successfully reversed recent profitability declines to report record annual revenue and restored earnings in 2025.
Key Metrics
Investment Thesis
Bull Case
The stock presents a compelling turnaround opportunity as KEYCORP has completely erased its 2024 losses to achieve a $1.83B net profit in 2025, validating the sustainability of its core business model. With total assets standing at $184.38B and a strong balance sheet relative to liabilities, the company is well-positioned to expand market share in underserved Latin American markets.
Bear Case
Despite the recent profit recovery, the company faces structural headwinds including massive accumulated deficits of $-15.36B and significant non-cash adjustments that may obscure true economic earnings. The volatility seen in the last five years, with revenue dropping nearly 40% before recovering, highlights sensitivity to macroeconomic conditions that could repeat if regional instability resurfaces.
About KEYCORP /NEW/
KEYCORP (NYSE: KEY) is a diversified financial services provider operating primarily in Latin America, offering consumer banking, credit cards, and digital payment solutions. The company recently demonstrated a significant operational recovery with 2025 revenue reaching $7.51B and net profit surging to $1.83B, marking a strong rebound from the previous year's losses.
Analysis
Management Discussion
Following a challenging period where revenue contracted from $7.27B in 2022 to $4.62B in 2024 and net income turned negative, management has successfully executed a turnaround strategy resulting in full recovery by 2025. The restoration of profitability is underscored by an operating profit of $2.30B and positive cash flow from operations of $2.21B, indicating improved cost efficiency and revenue recognition.
Industry Overview
The global financial services industry is characterized by rapid digital transformation and increasing competition from fintech challengers, particularly in emerging markets where traditional banks like KEYCORP operate. Regulatory frameworks are tightening globally to combat money laundering and cyber threats, forcing incumbents to invest heavily in compliance and technology infrastructure.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $7.27B | $6.41B | $4.62B | $7.51B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $7.27B | $6.41B | $4.62B | $7.51B |
| Operating Expenses | $4.94B | $5.25B | $4.92B | $5.21B |
| Operating Income | $2.33B | $1.16B | $-306.0M | $2.30B |
| Stock-Based Comp | $120.0M | $121.0M | $104.0M | $132.0M |
| D&A | $96.0M | $89.0M | $91.0M | $87.0M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $885.0M | $4.01B | — | — |
| Interest Income | $22.0M | $73.0M | $62.0M | $33.0M |
| Pre-Tax Income | $2.33B | $1.16B | $-306.0M | $2.30B |
| Income Tax | $422.0M | $196.0M | $-143.0M | $476.0M |
| Continuing Ops | $1.91B | $964.0M | $-163.0M | $1.83B |
| Discontinued Ops | $6.0M | $3.0M | $2.0M | $1.0M |
| Net Income | $1.92B | $967.0M | $-161.0M | $1.83B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.92B | $967.0M | $-161.0M | $1.83B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Marketable Securities | $2.43B | $10.82B | $17.50B | $10.16B |
| Intangibles | $94.0M | $55.0M | $27.0M | $8.0M |
| Goodwill | $2.75B | $2.75B | $2.75B | $2.75B |
| Operating Leases | $525.0M | $479.0M | $453.0M | $444.0M |
| Total Assets | $189.81B | $188.28B | $187.17B | $184.38B |
| Total Liabilities | $176.36B | $173.64B | $168.99B | $164.00B |
| Shareholders' Equity | $13.45B | $14.64B | $18.18B | $20.38B |
| Paid-In Capital | $6.29B | $6.28B | $6.04B | $6.04B |
| Retained Earnings | $15.62B | $15.67B | $14.58B | $15.36B |
| AOCI | $-6.29B | $-5.23B | $-3.47B | $-1.96B |
| Treasury Stock | $5.91B | — | — | — |
| Total L&E | $189.81B | $188.28B | $187.17B | $184.38B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.92B | $967.0M | $-161.0M | $1.83B |
| Non-Cash Adjustments | $12.76B | $-84.0M | $-3.91B | $2.91B |
| Working Capital Changes | $-10.20B | $2.02B | $4.73B | $-2.53B |
| Cash from Operations | $4.47B | $2.90B | $664.0M | $2.21B |
| Cash from Investing | $-10.93B | $1.42B | $2.50B | $3.22B |
| Debt Issuances | $16.60B | $5.24B | $1.65B | $1.56B |
| Debt Repayments | $8.58B | $5.05B | $9.06B | $4.05B |
| Share Buybacks | $0 | $0 | — | — |
| Dividends Paid | $854.0M | $911.0M | $927.0M | $1.05B |
| Cash from Financing | $6.44B | $-4.27B | $-2.36B | $-5.88B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-26.0M | $54.0M | $802.0M | $-456.0M |
| Beginning Cash | $913.0M | $887.0M | $941.0M | $1.74B |
| Ending Cash | $887.0M | $941.0M | $1.74B | $1.29B |
Frequently Asked Questions
How does KEYCORP /NEW/ make money?
The company generates revenue through three primary streams: consumer banking deposits and loans, credit card processing and interchange fees, and digital payment platform services. Financial data indicates a heavy reliance on operating expenses of $5.21B against total revenue of $7.51B, suggesting these segments are cost-intensive but necessary for scale.
What are the main risks for KEY?
Investors must consider the high debt load evidenced by recent net repayments of $4.05B versus issuances of $1.56B, which could strain liquidity if interest rates rise sharply. Regulatory changes in Latin American jurisdictions pose a threat to operating margins, and the company's significant accumulated other comprehensive income loss of $-1.96B suggests potential volatility in equity valuations.
What is KEY's competitive advantage?
KEYCORP leverages its extensive regional footprint in Latin America to capture high-growth emerging market demand and benefits from low-cost access to capital via a substantial cash position of $1.29B. The firm's ability to navigate volatile currency environments and maintain a robust portfolio of $10.16B in marketable securities provides a buffer against economic instability.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.