Keycorp · NYSE:KEY
Keycorp — Keycorp /New/ — BancAnalysts Association of Boston (November 2011)
23 slides from Keycorp's conference presentation, Nov 3, 2011
Slide 1: Key Corporate Bank: Strong, Focused and Building Momentum
Exhibit 99.1 BancAnalysts Association of Boston Key Corporate Bank Strong, Focused and Building Momentum Christopher M. Gorman President Key Corporate Bank
Slide 2: Private Securities Litigation Reform Act of 1995 Forward-Looking Statement Disclosure
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD-LOOKING STATEMENT DISCLOSURE This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key’s financial condition, results of operations, earning
Slide 3: Key – An Overview
Key – An Overview Key Facts Diverse, Advantaged Geography • The 14 th largest U.S. bank-based financial services company • Assets of approximately $89 billion • Market capitalization of $6 billion • 15,490 employees • Unique and diverse geography – Building presence in higher-growth markets in Rocky
Slide 4: Diverse and Balanced Business Mix
Diverse and Balanced Business Mix 2011 YTD Revenue Other 10% Community Corporate Bank Bank 54% 36% Corporate Community Bank Bank Note: 2011 YTD Revenue from continuing operations; “Other” consists of corporate treasury, principalinvesting and exit portfolios 4
Slide 5: Key Corporate Bank Segment
Key Corporate Bank Segment Presentation Focus Corporate Bank LTM Revenue As of 9/30/11 • Presentation provides detail about Key Corporate Bank, which is comprised of the following business units: – Real Estate Capital & Corporate Banking Services (“REC”) – Institutional & Capital Markets (“ICM”) Ins
Slide 6: Key Corporate Bank Overview
Key Corporate Bank Overview Real Estate Capital & Institutional & Corporate Banking Key Equipment Finance Capital Markets Services • National franchise focused on • Leading middle-market corporate • 6th largest bank-owned REITs, long-term real estate and investment bank, focused on equipment finance
Slide 7: Product Breadth with an Industry Focus
Product Breadth with an Industry Focus Asset-based Lending Asset Management Commercial Mortgage Commercial Loan Servicing Banking Consumer Derivatives Equipment Finance Energy Equity Capital Markets Equity Research Debt Capital Markets Healthcare Equity Sales & Trading Capital Solutions Client Secto
Slide 8: Competitive Advantage
Competitive Advantage Corporate and Community Bank Business Continuum • Delivering more value to business clients by High combining the local knowledge and service of a Community Bank with the specialized Bulge Bracket/ Universal Banks expertise and industry knowledge of a Corporate Bank Breadth of
Slide 9: Aligned to Serve Our Clients
Aligned to Serve Our Clients Key’s integrated model is aligned to serve client needs Activity Results • Tight coordination between Real Estate • $106mm in LTM 3Q11 real estate Investment relationship managers and Capital Markets Banking Income and Debt Placement Fees (1) execution bankers • #1 among
Slide 10: Past the Inflection Point
Past the Inflection Point Ending Loan Balances ($B) & LTM Investment Banking Income and Debt Placement Fees ($mm) $29.4 $258 $28.4 $243 5.4 $227 5.8 $25.5 $208 $22.9 $193 5.3 $21.5 $177 4.7 $19.9 4.5 $18.7 $18.0 $149 4.5 $17.2 $17.3 $149 $16.6 8.7 4.6 7.9 $153 $154 $155 4.7 4.6 6.6 4.6 4.7 5.7 5.1 4
Slide 11: Investing in Relationships and Capabilities
Investing in Relationships and Capabilities Key Corporate Bank has hired more than 100 senior professionals since 1Q10 Areas of Strategic Hire Results from Strategic Hires • Significant investment in commercial • $700mm increase in annual Real Estate mortgage banking professionals commercial mortgag
Slide 12: Converting New Client Relationships
Converting New Client Relationships New Clients Since January 2011 Financial Impact of New Clients $45mm $1.5B 89 65 REC ICM Fee Revenue Assets • Tracking new client generation across the • New clients have significant financial impact franchise – Average fee revenue from new clients is nearly • Sem
Slide 13: Growing Capital Markets Presence
Growing Capital Markets Presence Investment Banking Income and Debt Client Transactions & Capital Raised ($B) Placement Fees ($mm) $227 409 $193 316 $135 $102 LTM 3Q10 LTM 3Q11 LTM 3Q10 LTM 3Q11 # of Transactions Capital Raised ($B) • Our capital markets businesses raised $135B • Investment Banking
Slide 14: Targeted Collaboration for Growth
Targeted Collaboration for Growth Community and Corporate Bank Our footprint contains more than 7,000 targets in our focus industry segments with revenue between $25 million and $1.5 billion -- 18% are clients 775 125 225 100 500 175 1,350 900 76 1,725 325 550 550 25 n = # of target KEY client penet
Slide 15: Measuring Our Progress
Measuring Our Progress We are aggressively pursuing client acquisition — and measuring the efficiency and effectiveness of our actions • Created a series of programs structured around acquiring and broadening client relationships • All Relationship Managers and business leaders participate in regula
Slide 16: Relationship Strategy in Action
Relationship Strategy in Action Key helped a business client grow from a small enterprise with less than $1mm in annual revenue to a $1B national leader in its industry • Financial Advisory Solutions • Capital to Fund Strategic Acquisitions • Capital to Fund PP&E 1983 1990 1998 2001 2005 2011 16
Slide 17: Appendix
Appendix 17
Slide 18: Building the Foundation for Growth: Real Estate Capital
Building the Foundation for Growth Real Estate Capital Pre-Crisis Today Fragmented, inefficient & high-risk Focused, efficient & de-risked • 1,000 real estate clients in all sectors and • 500 real estate clients in three segments states (raw land to industry REITs) • Emphasis on owners/operators • >
Slide 19: Industry-Leading Real Estate Franchise
Industry-Leading Real Estate Franchise Capabilities & Relationships YTD U.S. REIT League Tables (by # of deals) • Deep relationships with REITs and real Senior Debt Bookrunner estate operating companies Rank Firm # of Deals Volume ($MM) – Key agents 78 REIT and real estate credits 1 Bank of America
Slide 20: Building the Foundation for Growth: Institutional & Capital Markets
Building the Foundation for Growth Institutional & Capital Markets Pre-Crisis Today Early stage of integrating 14 distinct Refined relationship strategy business units • Narrowing focus to small and mid-size; • No explicit size focus target clients where we can matter • $455mm fee income and $6.7B a
Slide 21: Growing Equity Capital Markets Platform
Growing Equity Capital Markets Platform Equity Capital Markets Activity (LTM figures) Equity Research Coverage (# of companies) 57 464 53 400 39 95 31 333 346 74 38 369 33 55 71 326 25 $26 291 23 262 $10 $14 $11 10 13 22 18 3Q08 3Q09 3Q10 3Q11 3Q08 3Q09 3Q10 3Q11 Lead Transactions Other Transactions
Slide 22: Building the Foundation for Growth: Key Equipment Finance
Building the Foundation for Growth Key Equipment Finance Pre-Crisis Today Lack of focus Narrowed operating focus • Significant volume outside Key footprint • Tightened alignment between KEF and Key • Large, fragmented Vendor franchise – $497mm in Community Bank lease volume YTD 3Q11, up 40% YoY – 3,
Slide 23: Strong Equipment Finance Business
Strong Equipment Finance Business New Asset Origination ($B) Buy-desk Activity as % of Originations (1) $3.2 $2.5 LTM 3Q10 LTM 3Q11 • Originated $3.2B in gross new business • Key is achieving volume targets while volume YTD 3Q11, up $756mm or 31% YoY remaining focused on our core client • Growth dri
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