Slide 1: Investor Meetings: Europe – November 2020
Investor Meetings: Europe – November 2020 KeyCorp
Slide 2: Forward-Looking Statements and Additional Information
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or
Slide 3: Key: A Relationship-Focused Regional Bank
Key: A Relationship-Focused Regional Bank Committed to delivering value for all stakeholders Strong franchise with differentiated business model − Distinctive, relationship-focused strategy $171 billion $137 billion $12 billion − Focused on building targeted scale in specific client total assets d
Slide 4: Key: Strong, Resilient, and Well-Positioned
Key: Strong, Resilient, and Well-Positioned Pandemic Response Driving Future Growth Business resiliency and teammate support: Distinctive strategy and business model: balanced operational effectiveness across the franchise with and relationship-focused highly engaged workforce − >10,000 team mem
Slide 5: Revenue and Expense Opportunities
Revenue and Expense Opportunities Efforts to improve productivity and efficiency have resulted in seven consecutive years of positive operating leverage Revenue Momentum Expense Discipline Executing on relationship-based business model: building Committed to continuous improvement: completed tar
Slide 6: Targeted Technology Investments
Targeted Technology Investments Accelerating digital usage across the enterprise Investing in digital and leveraging technology to create a seamless experience for our clients… Digitizing client Building differentiated Enhancing digital Leveraging analytics portals capabilities offerings to provide
Slide 7: Strong Risk Management
Strong Risk Management Maintaining a strong risk culture and moderate risk profile Positioned to Outperform Through the Cycle Maintaining strong credit quality: benefitting from actions Enhanced framework, governance, and controls, taken over time to reduce risk profile including people and tech
Slide 8: Disciplined Capital Management
Disciplined Capital Management Highlights Disciplined in how we manage, invest, deploy, and Capital Priorities return our capital Positioned to weather adverse operating environments: − Government-mandated and internal stress tests demonstrate Key would remain well-capitalized Supporting through
Slide 9: Fourth Quarter 2020 Trends & Long-term Targets
Fourth Quarter 2020 Trends & Long-term Targets Fourth Quarter 2020 Trend (vs. Third Quarter 2020) Average Loans: down low-single digits (reflective of lower starting point at 9/30/20) Deposits: relatively stable Net interest income: up low-single digits with a relatively stable NIM − Includes
Slide 10: Appendix
Appendix 10
Slide 11: Corporate Responsibility
Corporate Responsibility Strong Corporate Citizen Focusing on our Communities Engage, support, and encourage sustainability and National Community Benefits Plan Operating efficiency efforts Lending and investing $16.5 billion nationwide over five years, with Integrity On track to achieve emissio
Slide 12: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Total Commercial Loans Commercial & Industrial (C&I) Solid middle market portfolio $ in billions 9/30/20 % of total loans Aligning bankers to areas of market opportunity and growth - Commercial and industrial $ 55.0 53 investing in strategic hires with industry v
Slide 13: Consumer Loan Portfolio Detail
Consumer Loan Portfolio Detail Laurel Road Total Consumer Loans $ in millions Origination Volume $ in billions 9/30/20 % of total WA FICO at loans origination $801 $706 Residential mortgage 8.7 9 769 $552 $611 $419 Home equity C&I 9.5 9 CRE 808 3Q19 4Q19 1Q20 2Q20 3Q20 Consumer direct $40 4.4 $18 4
Slide 14: Deposits
Deposits Average Deposits Highlights $ in billions $140 $135 1.50% Interest-bearing deposit costs down 20 bps from 2Q20, reflecting impact of lower interest rates $120 $110 1.25% Strong and stable deposit base $100 1.09% 1.00% − 32% noninterest-bearing(a) $80 0.75% − ~60% stable retail and low-c
Slide 15: Investment Portfolio
Investment Portfolio Average Total Investment Securities Highlights $ in billions $32.6 $33.6 Portfolio used for funding and liquidity management $32.0 3.00% ‒ Portfolio composed primarily of fixed-rate GNMA and 2.49% GSE-backed MBS and CMOs 2.50% $24.0 2.05% ‒ Reinvestments continue to be in High
Slide 16: Asset & Liability Management
Asset & Liability Management Hedging strategy utilizes comprehensive toolkit to promote net interest income stability Fixed Rate as % of Earning Assets(a),(b) Highlights 76% Loan book repricing characteristics well-positioned − A lower exposure to unhedged floating rate loans combined with floors
Slide 17: Credit Quality Trends
Credit Quality Trends Delinquencies to Period-end Total Loans Criticized Outstandings(a) to Period-end Total Loans Continuing operations Continuing operations .80% 6.0% .60% 3.9% 4.0% .39% .40% .33% 2.7% 2.0% .20% .06% .07% .00% .0% 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 30 – 89 days deli
Slide 18: Select Commercial Portfolio Focus Areas
Select Commercial Portfolio Focus Areas Active Portfolio Surveillance Portfolios in Focus Ongoing portfolio reviews 6/30/20 9/30/20 % of Total Outstandings Outstandings Loans as of 9/30 $ in millions Monitoring ratings migration Consumer behavior(a) $ 5,206 $ 5,020 4.9% Central reporting on Ed
Slide 19: Credit Quality
Credit Quality Credit Quality by Portfolio Net loan Net loan Allowance / Allowance / Period- Average charge-offs(b) / Nonperforming Ending charge- period-end NPLs end loans loans average loans loans allowance offs loans (%) (%) $ in millions (%) 9/30/20 3Q20 3Q20 3Q20 9/30/20 9/30/20 9/30/20 9/30/20
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended $ in millions 9/30/2020 6/30/2020 9/30/2019 Notable Items Provision for credit losses - - $ (123) - Efficiency initiative expenses - - - Laurel Road acquisition expenses - - - Total notable items - - $ (123) Income taxes - - (29) Total notable items
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended $ in millions 9/30/2020 6/30/2020 9/30/2019 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ 397 $ 159 $ 383 Plus: Notable items, after