KEYCORP RAISES ITS PRIME LENDING RATE TO 7.00 PERCENT

Major U.S. banks, including JPMorgan, Bank of America, and others, raised their prime lending rate to 7% after the Federal Reserve's quarter-point rate hike. The move increases borrowing costs for consumers and businesses. Bank stocks fell, with BofA down 2.7%, Citi 2.4%, and JPMorgan 1%. Rate hikes may boost bank earnings but could also slow economic activity and impact credit quality.

Top U.S. banks, including JPMorgan and Bank of America, raised their prime lending rate to 7% after the Federal Reserve's first rate hike since 2023. The Fed increased rates by 0.25% and signaled further hikes, aiming to combat inflation. Bank shares fell, with JPMorgan down 1% and Goldman Sachs down 4%. Higher rates boost bank earnings but may slow economic activity and reduce loan demand.

KeyCorp (KEY) raised its 2026 revenue outlook to 8% growth, up from 7-8%, citing strong loan growth, fee-based business momentum, and the Clearwater acquisition. Non-interest income is now expected to grow 4-5%, with adjusted non-interest income projected to increase 6-7%. The company also affirmed a 20%+ sequential rise in third-quarter investment-banking fees. KeyCorp anticipates 4-5% average loan growth and 9-11% net interest income growth for 2026, supported by solid loan demand and deposit

KeyCorp (KEY) appointed Chris Doll as Chief Strategy Officer, effective August 31, 2026. The bank's 1-year total return is 20.59%, with a recent 7-day return of 2.64%. Analysts suggest a 15% undervaluation, citing improved net interest income and deposit costs, but note risks from nonperforming loans and regulatory pressures.

The UK Financial Conduct Authority cleared KeyCorp’s acquisition of corporate finance advisory firm Clearwater UK. KeyCorp completed the deal on 4 August 2026 and notified investors on the New York Stock Exchange. The article says Clearwater UK will use KeyCorp’s expertise for corporate finance advisory services.

KeyCorp’s Q2 2026 earnings call cited 3% sequential commercial loan growth, net interest margin expansion to 2.89%, and 12% growth in commercial payments fees. Management raised full-year revenue guidance to 7-8% growth and projected NIM of 3.0% to 3.05% by year-end, plus $1.3B+ in 2026 buybacks.