KeyCorp Q1 Profit Grows on Higher Lending and Dealmaking

KeyCorp reported a significant rise in its first-quarter profit on Thursday, bolstered by a combination of robust lending activity and a surge in dealmaking fees. The financial results reflect a broader trend within the United States banking industry, where recent interest rate cuts by the Federal Reserve have sparked renewed demand for borrowing from both businesses and individual consumers.

The Cleveland, Ohio-based lender saw its net interest income—the difference between what it earns on loans and pays out on deposits—increase by 11.3% to $1.23 billion for the quarter ended March 31. This growth was primarily driven by higher yields on reinvested assets alongside lower overall deposit costs. Total loans at the bank rose more than 3% to $107.7 billion, with commercial and industrial lending showing particular strength after surging 10.1% during the period.