On December 9, 2025, KeyCorp chief executive Chris Gorman announced that the bank would not pursue acquisitions in the near term and would instead deploy excess capital to repurchase shares. The statement followed a presentation by activist investor HoldCo Asset Management that called for a “no acquisitions” policy and a stronger buyback program. KeyCorp had already authorized a $1 billion share repurchase program in March 2025, with an expected $100 million of repurchases in the fourth quarter.
The decision comes after KeyCorp completed a $2 billion minority investment from Scotiabank on December 27, 2024, and finished a $900 million technology modernization program for 2025. Those capital deployments freed up capital that the bank can now allocate to shareholder returns without compromising its capital adequacy or strategic initiatives.
KeyCorp reported third‑quarter 2025 earnings of $0.41 per share, beating the consensus estimate of $0.38 by $0.03. Revenue of $1.886 billion fell slightly short of the $1.899 billion estimate, a miss of $13 million. The earnings beat was driven by disciplined cost management and an improvement in net interest margin, which rose to 2.75% from 2.17% in the same quarter a year earlier. The revenue miss reflected modest weakness in loan demand, but the higher margin helped offset the decline.
Management raised its full‑year 2025 revenue guidance to $4.396 billion–$4.400 billion from $4.14 billion–$4.15 billion, and increased adjusted operating income guidance to $2.151 billion–$2.155 billion from $2.1 billion–$2.12 billion. The upward revisions signal confidence in continued growth in fee‑generating commercial banking activities and a favorable interest‑rate environment, while the company remains cautious about potential headwinds in loan demand.
Investors reacted to the earnings release with concern about the revenue miss and the bank’s future growth outlook, and the activist investor’s call for a stronger buyback program added additional pressure. The announcement of a moratorium on acquisitions was welcomed by those who view the policy as a way to preserve capital for shareholder returns and reduce M&A risk.
KeyCorp’s focus on organic growth, a target return on tangible common equity of 15% by 2027, and significant technology investment positions the bank to capture fee‑based opportunities while maintaining a robust capital base. The share‑buyback program is intended to return value to shareholders and provide flexibility for future opportunities, reinforcing the bank’s long‑term value‑creation strategy.
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