KeyCorp Faces Profit Drop Due to Higher Deposit Costs

KeyCorp Experiences Significant First-Quarter Profit Drop Amid Rising Deposit Costs

In the ever-turbulent financial sphere, KeyCorp has reported a striking 33.5% drop in first-quarter profit, underscoring the challenges U.S. banks face amidst increasing funding costs and a cautious borrowing climate. The primary culprits eroding the bank's profit margins include higher deposit costs and a persistently elevated interest rate environment that has notably dampened borrower enthusiasm.