KeyCorp lowers prime lending rate to 7.25 percent

CLEVELAND - KeyCorp (NYSE:KEY), a financial institution with a market capitalization of $20.58 billion, announced Wednesday it will reduce its prime lending rate to 7.25 percent from 7.50 percent, effective Thursday, September 18, 2025.

The 25 basis point reduction applies to KeyCorp and all its banking affiliates across its operational footprint, which spans from Maine to Alaska.

KeyCorp, headquartered in Cleveland, Ohio, is marking its bicentennial in 2025, celebrating 200 years of financial services. The bank currently manages approximately $185 billion in assets as of June 30, 2025.

The financial institution operates approximately 1,000 branches and 1,200 ATMs across 15 states under the KeyBank National Association name. Its services include deposit accounts, lending, cash management, and investment services for both individuals and businesses.

The company also provides corporate and investment banking products through its KeyBanc Capital Markets division, offering services such as merger and acquisition advice, debt and equity financing, and derivatives to middle market companies in selected industries throughout the United States.

The announcement was made in a press release statement issued by the company.

In other recent news, KeyCorp reported its second-quarter 2025 earnings, revealing revenue that exceeded expectations at $1.84 billion, a 2.22% surprise over the forecast. Despite the revenue beat, earnings per share came in at $0.25, falling short of the projected $0.35 by 28.57%. Meanwhile, Citi downgraded KeyCorp’s stock rating from Buy to Neutral, even though the company raised its net interest income guidance and improved its net interest margin forecast to approximately 2.75%. TD Cowen raised its price target for KeyCorp to $20.00, citing strong loan growth trends contributing to higher net interest income. BofA Securities also increased its price target to $21.00, maintaining a Buy rating, despite KeyCorp’s earnings per share being slightly below estimates. These recent developments highlight mixed analyst sentiments and financial performance indicators for KeyCorp.

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