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KeyCorp 2026 Conference Summary Company Overview - **Company**: KeyCorp (NYSE: KEY) - **Event**: 2026 Conference - **Date**: February 10, 2026 Key Points Industry and Market Position - KeyCorp is well-positioned in the banking industry, benefiting from the largest interest rate hiking cycle in 60 years, which began in 2022 [6] - The company raised $2.8 billion in capital in 2024, using half to reposition its balance sheet, resulting in positive outcomes [6] - The investment banking sector had a strong performance, with a 23% increase in net interest income (NII) and a 44% growth in pre-provision net revenue (PP&R) in 2025 [7] Financial Performance - KeyCorp's investment banking had its second-best year, with M&A activity expected to increase in the middle market [7][8] - The company grew its commercial client base by 4% in 2025, indicating a focus on client growth rather than just loan and deposit metrics [9] - Consumer health is strong, with non-interest-bearing accounts holding 25% more cash than pre-pandemic levels and a 5% increase in consumer spending [10] Growth and Hiring - KeyCorp plans to hire 10% more bankers across three key areas: Mass Affluent, middle market payments, and investment banking [11] - A record loan backlog is reported, with overall loan backlogs up 20% and middle market backlogs up 50% [12] Economic Outlook - Loan growth is anticipated to continue, with $600 million in loans and $900 million in commercial and industrial (C&I) loans added from the end of 2025 to January 2026 [16] - The company is optimistic about capital expenditures (CapEx) benefiting from new tax incentives, with 60% of customers indicating positive expectations [18][19] Sector Focus - KeyCorp sees significant activity in power and renewables, healthcare, and basic industrial sectors, with expectations for consolidation in healthcare [29][30] Deposit Growth Strategy - KeyCorp has $88 billion in core retail deposits, focusing on the mass affluent segment, which has been largely ignored by competitors [34] - The Western U.S. market is seen as a growth opportunity due to faster household growth and a favorable competitive landscape [35][36] Technology and Investment - KeyCorp is investing heavily in technology, with planned expenditures increasing from $800 million in 2024 to $1 billion in 2026 [41] - The bank is modernizing its systems and focusing on AI to improve efficiency and customer experience [42] Credit Quality and Risks - KeyCorp maintains a conservative credit approach, with a super prime consumer book and low charge-off rates [13] - Areas of concern include leveraged finance and healthcare, with ongoing monitoring of specific sectors [61][62] Regulatory Environment - The company is adapting to regulatory changes but does not anticipate significant operational shifts [58] - There is a focus on reducing duplicative regulatory audits to free up management bandwidth [59] M&A and Competitive Landscape - KeyCorp does not see a need for bank M&A, focusing instead on organic growth opportunities [70] - The current market environment presents opportunities for disruption and talent acquisition without engaging in costly acquisitions [71] Future Financial Targets - KeyCorp aims for a return on tangible common equity (ROTCE) of 15% by the end of 2027, with long-term goals of 16%-19% [47][48] This summary encapsulates the key insights and strategic directions discussed during the KeyCorp conference, highlighting the company's robust position in the banking sector and its proactive approach to growth and technology investment.

Core Insights - KeyCorp's Commercial Banking business is led by Ken Gavrity, encompassing the Middle Market segment and Commercial Payments platform [2] - The Middle Market segment is defined as companies with annual revenues ranging from $10 million to $1 billion [2] Commercial Banking Overview - The Commercial Bank represents a significant portion of KeyCorp's overall revenue and core operations [4]

KeyCorp 2026 Conference Summary Company Overview - **Company**: KeyCorp (NYSE: KEY) - **Industry**: Commercial Banking - **Conference Date**: February 9, 2026 Key Points Commercial Banking Performance - In 2025, KeyCorp's commercial bank generated **$2.1 billion** in revenue, accounting for nearly **one-third** of the company's total revenue and approximately **40%** of overall deposits [3][4] - The commercial banking platform is characterized as an efficient, high-return growth business, with a return on equity consistently in the **high teens to low twenties** [5] - The middle-market segment, defined as companies with annual revenues between **$10 million** and **$1 billion**, represents a significant growth opportunity with **200,000** companies in the U.S. and a current market share of less than **3%** [4] Growth and Market Strategy - The middle-market franchise has seen **9%** annual growth in commercial payments revenue over the past five years, indicating a strong demand for integrated banking services [5] - KeyCorp operates in **11 of the top 20** metropolitan statistical areas (MSAs) for middle-market companies and is actively expanding its presence [6] - The company has onboarded new teams in markets like Chicago and Southern California, which have driven customer growth and loan production at **twice the rate** of the rest of the portfolio [6][7] Client Sentiment and Economic Outlook - A survey indicated that **77%** of middle-market clients are optimistic about their own businesses, despite macroeconomic uncertainties [22] - Clients are focusing on capital expenditures (CapEx) for new production lines and geographic expansion, with increased interest in mergers and acquisitions (M&A) [25] - The company expects to outperform the market with a projected **5%-6%** growth in commercial loans, supported by a strong pipeline and anticipated M&A activity [34] Competitive Landscape - KeyCorp differentiates itself from larger global systemically important banks (GSIBs) by providing tailored services to middle-market clients, which are often overlooked by larger institutions [36] - The bank's expertise in capital markets and payments is a significant competitive advantage, allowing for a more coordinated approach to serving middle-market clients [36] Payment Solutions and Embedded Banking - KeyCorp's payments business has been a focus area, with gross payment fees growing at an **8% CAGR** over the last six years [9] - The bank is scaling its embedded banking strategy, which integrates banking services into clients' operations, and has doubled this business in 2025 [11] - The company aims for high single-digit to low double-digit growth in commercial payment fees moving forward [16] Technology and Innovation - KeyCorp is investing in technology, including artificial intelligence (AI), to enhance operational efficiency and client service [79] - The bank is focused on improving its digital platform and payment capabilities, with a full digital refresh expected later in the year [73] Credit Quality and Risk Management - The quality of the loan portfolio remains strong, with net charge-offs and non-performing loans (NPLs) at the low end of targeted ranges [8] - KeyCorp is monitoring sectors like agriculture, healthcare, and consumer goods for potential credit risks due to external pressures [86] Conclusion - KeyCorp's commercial banking model is positioned for sustainable growth, with a clear strategy focused on middle-market clients, innovative payment solutions, and a commitment to technology and talent development [16][87]

KeyCorp UBS Financial Services Conference February 9, 2026 Ken Gavrity Head of the Commercial Bank Commercial Bank Supporting Clients Across Industries & Geographies Middle Market Total Revenue 2025 Total Average Deposits 2025 Meaningful Contributor to KEY Earnings & Returns ~$58Bn Commercial Deposits ~$2.1Bn Commercial Payments & Middle Market Growth & Returns Avg ROE across our Middle Market business(2) Commercial Payments Revenue ~17-20% ~9% CAGR over last 5 years (1) Source: BCG Global Payments Report 2 ...

Core Viewpoint - HoldCo Asset Management has decided not to pursue proxy fights at KeyCorp or Eastern Bancshares after both regional banks agreed to the main changes proposed by the activist investor [1] Group 1 - HoldCo Asset Management is an activist investor that has been pressing for changes at KeyCorp and Eastern Bancshares [1] - The decision to not pursue proxy fights indicates a resolution between HoldCo and the two banks [1] - The changes agreed upon by KeyCorp and Eastern Bancshares are significant enough to satisfy HoldCo's demands [1]

Core Insights - KeyBank is strategically expanding its middle market capabilities by adding a five-person family office and private capital team led by Ward Nixon, based in Overland Park, Kansas [1][2] Group 1: Strategic Expansion - The addition of the new team reflects KeyBank's commitment to the middle market, where family offices and private equity are becoming increasingly influential in ownership and capital deployment [2][4] - KeyBank aims to differentiate itself through integrated family office banking, providing coordinated services to sponsor relationships, portfolio companies, and wealth needs [2][4] Group 2: Team Composition - Ward Nixon brings extensive experience in commercial banking and leveraged finance, specializing in family office and private equity sponsor finance [3] - The team includes professionals with diverse backgrounds, such as Andrew Hendricks, Chris Tallent, Judy Evans, and Adam Hazlett, each bringing significant expertise in areas like private equity, treasury management, and financial analysis [5][8] Group 3: Market Positioning - KeyBank's strategy is to build capabilities that align with how clients operate, recognizing the growing influence of family offices as sophisticated capital providers [4][6] - The bank's comprehensive capabilities are designed to attract talent and clients seeking a banking partner rather than just a lender, emphasizing the unique service model of Key Commercial Bank [6]

Core Insights - Key Family Wealth, a division of KeyCorp, was awarded "Best Educational Initiative" at the PAM Awards, recognizing its innovative educational platform for wealth stewardship [1][2][3] Educational Initiative - The award highlights the importance of comprehensive educational programs that prepare families for the complexities of wealth management across generations [3] - Key Family Wealth's platform delivered 48 bespoke education experiences and 77 milestone engagements in the past year, addressing psychological, relational, and practical challenges faced by inheritors [3][4] Platform Features - The education platform includes strategic partnerships with providers like EVERFI for financial literacy, Tamarind Learning for specialized modules, and Corenology for family alignment [4] - It offers life coaching services that have received positive feedback, providing personalized guidance for next-generation wealth stewards [4] Family Engagement - The platform features Family Milestone Experiences for intergenerational dialogue, Family Alignment Days for exploring purpose and legacy, and Family Journey experiences for recording heritage and values [5] Company Overview - Key Family Wealth manages approximately $22 billion in assets under management (AUM) and $29 billion in assets under administration (AUA) as of December 31, 2025 [6] - KeyCorp, headquartered in Cleveland, Ohio, is one of the largest bank-based financial services companies in the U.S., with assets of approximately $184 billion as of December 31, 2025 [7][8]

Core Viewpoint - KeyCorp (KEY) has demonstrated strong financial performance and shareholder returns, outpacing major indices and peers in the regional banking sector [2][3][9]. Financial Performance - KeyCorp's stock delivered a 19.4% return over the past 52 weeks, surpassing the S&P 500 Index's 14.3% increase during the same period [2]. - Year-to-date, KeyCorp shares are up nearly 4.3%, compared to the S&P 500's 1.4% gain [2]. - In Q4 2025, KeyCorp reported a revenue increase of 131.8% year-over-year to $2.01 billion, exceeding expectations of $1.97 billion [6]. - Earnings per share (EPS) for Q4 came in at $0.41, beating analyst estimates of $0.39 [6]. Growth Projections - Management has guided for approximately 7% revenue growth in fiscal year 2026 [7]. - Analysts project diluted EPS of $1.79 for fiscal year 2026, indicating a growth of 19.3% [8]. - KeyCorp has consistently exceeded EPS estimates in the past four quarters, enhancing management's credibility [8]. Market Sentiment - Wall Street analysts maintain a positive outlook on KeyCorp, with a consensus rating of "Moderate Buy" among 23 analysts [9]. - The consensus includes 11 "Strong Buy" ratings, two "Moderate Buy" recommendations, nine "Hold" calls, and one "Strong Sell" [9].

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures related to the author's position and compensation [1][2] Summary by Categories - **Company Analysis**: No specific company analysis or performance data is presented in the article [1][2] - **Industry Trends**: The article does not discuss any industry trends or market conditions [1][2] - **Financial Performance**: There are no financial performance metrics or data included in the article [1][2]