KeyCorp (NYSE:KEY) just dropped its Q4 results, and it's a classic good-news-bad-news situation. The good? Adjusted earnings hit $0.38 per share, blowing past analyst estimates of $0.32. The star of the show was investment banking, with fees skyrocketing 63% to $221 million, thanks to a booming deal-making streak. But here's the kicker: a $915 million hit from a securities portfolio shuffle dragged the bank to a net loss of $279 millionor $0.28 per share. Cue the nearly 5% drop in KeyCorp's stock.

• Warning! GuruFocus has detected 11 Warning Signs with KEY.

On the bright side, KeyCorp's NII surged 14% to $1.06 billion, fueled by smart reinvestments into higher-yielding assets and the strategic unwinding of less profitable interest rate swaps. But it wasn't all smooth sailing. Loan balances slipped 8%, with demand for commercial loans still in the doldrums, echoing challenges flagged by peers like Fifth Third Bancorp. That said, KeyCorp made gains where it counts: deposits climbed 4%, and assets under management hit an all-time high of $61 billion in 2024.

Looking ahead, KeyCorp is playing the long game. CEO Chris Gorman projects a 20% bump in NII for 2025, backed by strong performance in investment banking, payments, and wealth management. As the bank celebrates its 200th anniversary, Gorman's tone is clear: KeyCorp isn't just riding out the stormit's doubling down on its fee-driven strategy to dominate the financial landscape.