Slide 1: KeyCorp First Quarter 2012 Earnings Review
Exhibit 99.2 KeyCorp First Quarter 2012 Earnings Review April 19, 2012 Beth E. Mooney Jeffrey B. Weeden Chairman and Chief Financial Officer Chief Executive Officer
Slide 2: Forward-Looking Statements and Additional Information Disclosure
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION DISCLOSURE This presentation contains and we may, from time to time, make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key’s financial condition, results of oper
Slide 3: Investor Highlights – First Quarter 2012
Investor Highlights – First Quarter 2012 Delivering sustainable profitability Execution of Continued improvement in credit quality Business Plan Disciplined expense management Growth in average loans driven by CF&A Growing the Growth in engaged clients Franchise Continued investment to drive future
Slide 4: Executing Business Plan: Progress on Targets for Success
Executing Business Plan: Progress on Targets for Success KEY Business KEY KEY KEY Metrics (a) Targets Action Plans Model 1Q12 4Q11 Leverage integrated model to grow Core funded Loan to deposit ratio (b) 87% 87% 90-100% relationships and loans Improve deposit mix Focus on relationship clients Returni
Slide 5: Financial Review
Financial Review 5
Slide 6: Financial Summary – First Quarter 2012
Financial Summary – First Quarter 2012 Metrics 1Q12 4Q11 1Q11 Income from continuing operations attributable to Key $.21 $.21 $.21 Financial common shareholders Performance (a) Net interest margin (TE) 3.16% 3.13% 3.25% Return on average total assets 1.02 1.01 1.32 Tier 1 common equity (c), (d) 11.5
Slide 7: Loan Growth
Loan Growth Highlights Average Commercial, Financial & Agricultural Loans Average balances grew for the second $ in billions consecutive quarter, driven by strong growth in $25 60% CF&A loans $19.6 $20 $17.4 $18.3 $16.3 $16.9 Loan commitments increased 20% to $8.3 billion in 46.9% 50% $15 46.3% 43.4
Slide 8: Improving Deposit Mix
Improving Deposit Mix Highlights Average Non-time Deposits (a) Higher cost CDs continue to decline, while lower $ in billions cost deposits have remained strong $48.2 $48.8 Improved funding mix has reduced the cost of $50 $45.4 $45.3 $46.5 .30% total deposits, which is down 4 bps from 4Q11 $40 .20%
Slide 9: Continued Improvement in Asset Quality
Continued Improvement in Asset Quality Net Charge-offs & Provision for Loan and Lease Losses Nonperforming Assets $ in millions $ in millions $300 3.00% $1,600 3.00% $193 $1,089 $200 2.00% $1,200 $134 $950 $914 2.00% 1.59% $109 $105 $101 $859 $767 $100 1.00% $800 1.82% 1.76% 1.11% .90% .86% 1.64% .
Slide 10: Total Revenue
Total Revenue Highlights Net Interest Margin (TE) Trend $ in millions Net interest margin increased 3 bps from 4Q11, a Continuing Operations result of improved funding costs and a decrease $750 6.00% in lower-yielding short-term investments $604 $570 $555 $563 $559 $600 4.00% Higher noninterest inco
Slide 11: Focused Expense Management
Focused Expense Management Highlights Noninterest Expense $ in millions Noninterest expense declined $14 million from $800 $701 $680 $692 $717 $703 4Q11, with improvement in both personnel and non-personnel expense $600 $330 $300 $310 $330 $318 Key remains focused on operating leverage $400 – Shifti
Slide 12: Pre-Provision Net Revenue and ROAA
Pre-Provision Net Revenue (a), (b) and ROAA (c) 1Q12 Pre-Provision Net Revenue Pre-Provision Net Revenue Trend $ in millions $ in millions $1,031 $500 Noninterest income $703 $400 $360 $344 $346 46% $328 Personnel expense $300 $260 Net interest 55% $328 $200 income Non-personnel 54% expense $100 45%
Slide 13: Strong Capital Ratios
Strong Capital Ratios Highlights Tangible Common Equity to Tangible Assets (b) No objection from Federal Reserve on capital plan 12.00% 9.8% 9.9% 10.3% 9.7% – Board authorized stock repurchase program 9.2% 9.00% – Dividend increase will be evaluated at May Board meeting 6.00% Peer leading capital po
Slide 14: Appendix
Appendix 14
Slide 15: High Quality Investment Portfolio
High Quality Investment Portfolio Highlights Average Total Investment Securities $ in billions Portfolio composed of Agency or GSE backed: $25 5.00% $21.2 GNMA, Fannie & Freddie $19.0 $18.5 $18.4 $20 $17.5 4.00% – No private label MBS or financial paper $15 3.00% 3.19% 3.20% 3.15% 3.07% 3.01% Averag
Slide 16: Credit Quality
Credit Quality Credit Quality by Portfolio $ in millions Net loan Allowance / Net loan Nonperforming Ending Period-end Average charge-offs / (a) (b) period-end Allowance / loans loans charge-offs loans allowance (b) NPLs average loans loans 3/31/12 1Q12 1Q12 4Q11 1Q12 4Q11 3/31/12 12/31/11 3/31/12 3
Slide 17: Home Equity Loans – 3/31/12
Home Equity Loans – 3/31/12 Community Bank – Home Equity Exit Portfolio – Home Equity Vintage (% of Loans) $ in millions, except average loan size Average Loan Average Average % of Loans 2011 and 2007 and Loan Balances Size ($) FICO LTV (a) LTV>90% later 2010 2009 2008 prior Home equity loans and li
Slide 18: Exit Loan Portfolio
Exit Loan Portfolio Exit Loan Portfolio Balance on $ in millions Balance Change Net Loan Nonperforming Outstanding 3-31-12 vs. Charge-offs Status 3-31-12 12-31-11 12-31-11 1Q12(c) 4Q11(c) 3-31-12 12-31-11 Residential properties –homebuilder $34 $41 $(7) $2 $(2) $17 $23 Marine and RV floor plan 59 81
Slide 19: Credit Quality Trends
Credit Quality Trends Delinquencies to Period-end Total Loans Quarterly Change in Criticized Outstandings (a) 2.50% 40% 35.1% 1.87% 2.00% 1.72% 1.61% 1.59% 30% 1.50% 1.29% 20% 1.14%1.14% .98% .97% .99% 1.00% .82% .95% .89% .85% 10% .78% 2.8% .62% .60% .56% .45% .48% 0% (1.0)% 0.50% .30% .32% .25%.24
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (a) Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities), net gains or losses on cash flow hedges, and amounts resulting from the December 31, 2006, adoption and subsequent applicat