Keycorp · NYSE:KEY
Keycorp — Investor Presentation (November 2022)
21 slides from Keycorp's investor presentation, November 2022
Slide 1: KeyCorp Investor Meetings: Europe
KeyCorp Investor Meetings: Europe November 2022 Don Kimble Clark Khayat Vern Patterson Vice Chairman and Chief Strategy Officer Head of Investor Relations Chief Financial Officer
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: Driving Sustainable Growth and Returns
Key: Driving Sustainable Growth and Returns Unique Business Model and Strong Foundation Targeted Growth Opportunities Strategy ▪ Strong, stable core deposit base ▪ Relationship-based business model ▪ Healthcare ▪ Well-positioned for rate environment ▪ Focused on targeted scale ▪ Laurel Road ▪ Strong
Slide 4: Strong Growth Opportunities Across the Franchise
Strong Growth Opportunities Across the Franchise We have a relationship focused business model with unique targeted capabilities to best serve consumer and commercial clients Strong consumer foundation and distribution… A differentiated and commercial platform… Regional Trillionaire/ Boutiques Banks
Slide 5: Driving Growth through Targeted Scale
Driving Growth through Targeted Scale Strong strategic focus on specific client segments and businesses where we can compete and win Healthcare Renewables Affordable Laurel Road 20% 95% ~36 of US GDP and growing Renewables portion of total Affordable and available at 5% CAGR(1) global power capacity
Slide 6: Laurel Road: A Different Path Forward
Laurel Road: A Different Path Forward Building strong, valuable, digitally-led relationships with a targeted client set Thoughtful expansion to concentric circles of healthcare... Doctors & Hospital Broader Dentists Nurses Systems Healthcare Student Loan Refinance Nurse Debt Healthcare Debt Expanded
Slide 7: Investments Driving Tangible Results
Investments Driving Tangible Results Investing in teammates, digital, analytics, and niche businesses to support and accelerate growth across the enterprise Teammates Digital & Analytics ▪ Successful acquisition, integration, and retention of talent in areas of focus ▪ Continued expansion of nationa
Slide 8: Well-Positioned for Interest Rate Environment
Well-Positioned for Interest Rate Environment Balanced approach to managing interest rate risk provides upside to higher rates while maintaining downside protection 3Q22 Balance Sheet Highlights(1) Actively Managing Interest Rate Risk Position Loans Deposits ▪ Strong liquidity and funding, with stab
Slide 9: Strong Credit Quality
Strong Credit Quality Solid foundation to position the company for long-term outperformance Strong Risk Culture and Portfolio Discipline ✓ Maintaining strong credit quality: benefitting from actions taken to ✓ Improved credit risk profile with strategic exits and growth in targeted reduce risk profi
Slide 10: Disciplined Capital Management
Disciplined Capital Management Solid foundation to position the company for long-term outperformance Strategic Priorities Capital Priorities ▪ Disciplined in how we manage, invest, deploy, and return capital 1 2 3 ▪ Focused on the return on and the return of capital Supporting Share Dividends ▪ Stre
Slide 11: Key: Driving Sustainable Growth and Returns
Key: Driving Sustainable Growth and Returns Improved financial performance with strong growth opportunities Strong franchise - core funded and well positioned for rate environment Differentiated business model focused on targeted scale Remaining at the forefront of delivering client-centric, digital
Slide 12: Appendix
Appendix
Slide 13: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Total Commercial Loans Commercial & Industrial (C&I) $ in billions 9/30/22 % of total loans ▪ Focused on middle market companies Commercial and industrial $ 56,971 49% ▪ Aligning bankers to areas of market opportunity and growth - investing in strategic hires with in
Slide 14: Consumer Loan Portfolio Detail
Consumer Loan Portfolio Detail Total Consumer Loans Laurel Road $ in millions Origination Volume $ in billions 9/30/22 % of total loans Consumer mortgage $ 20,838 18% $820 $646 Home equity 7,926 7 $504 $445 Consumer direct 6,803 6 $194 Credit card 977 1 3Q21 4Q21 1Q22 2Q22 3Q22 Consumer indirect(1)
Slide 15: Deposits
Deposits Average Deposits Highlights $ in billions ▪ Strong and stable deposit base $147 $144 $150 − 32% noninterest-bearing(1) 0.55% Commercial $120 Consumer − ~60% stable retail and low-cost escrow $90 .25% x 0.30% Cost of total interest- − 81% loan to deposit ratio(2) bearing deposits $60 .06% Co
Slide 16: Investment Portfolio
Investment Portfolio Average Total Investment Securities Highlights $ in billions ▪ Portfolio used for funding and liquidity management $60.0 3.00% $50.2 ‒ Portfolio composed primarily of fixed-rate GNMA and GSE-backed MBS $43.4 and CMOs 2.50% $40.0 ‒ Portfolio yield excluding short-term Treasury/Ag
Slide 17: ESG Highlights
ESG Highlights Committed to helping our clients and communities thrive Published inaugural TCFD Report(1) and Extended and expanded National SASB Index(2) Community Benefits Plan Enhanced and renamed annual ESG report and Increased diverse representation in senior completed ESG focus assessment lead
Slide 18: Responsible Operations and Inclusive Culture
Responsible Operations and Inclusive Culture Accelerating efforts and sharpening focus to address pressing issues facing our teammates, clients, and communities Environmental Social Governance ▪ Published inaugural TCFD Report ▪ $40Bn National Community Benefits Plan targeting ▪ Focused and diverse
Slide 19: Credit Quality
Credit Quality Credit Quality by Portfolio Net loan charge- Allowance / Allowance / Period-end Average Net loan Nonperforming Ending offs(3) / average period-end loans NPLs loans loans charge-offs loans allowance $ in millions loans (%) (%) (%) 9/30/22 3Q22 3Q22 3Q22 9/30/22 9/30/22 9/30/22 9/30/22
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions (1) For the three months ended September 30, 2022, June 30, 2022, and September 30, 2021, intangible assets exclude $2 million, $2 million, and $3 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus; (3) For
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions 21