Keycorp · NYSE:KEY
Keycorp — Keycorp /New/ — Q3 2009 Earnings Presentation
23 slides from Keycorp's earnings presentation, Oct 21, 2009
Slide 1: Third Quarter 2009 Review
Third Quarter 2009 Review October 21, 2009 Speakers: Henry Meyer Jeff Weeden Exhibit 99.2 Supplemental Information Package
Slide 2: Forward-looking statements
2 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, earnings outlook, asset quality trends and profitability. Forward-looking statements are no
Slide 3: Third Quarter 2009 Strategic Update
3 Strong capital, reserves and liquidity Proactively addressing credit Focused on client relationship strategies Progressing on Keyvolution initiative Third Quarter 2009 Strategic Update
Slide 4: Keyvolution: Improving Efficiency and Effectiveness
4 Keyvolution ^ Improving Efficiency and Effectiveness Implemented In-process Additional targeted benefits Total Cost Savings 121 121 181 300 0 60 119 $ in millions Keyvolution - Cost Savings by 2012 (before one-time costs and investments) $121 $60 $375 $119 $194 $300
Slide 5: Financial Summary Third Quarter 2009
5 Financial Summary ^ Third Quarter 2009 (a) Ratios are estimated. Loss from continuing operations attributable to Key common shareholders $ (.50) Significant items included in net loss Provision for loan losses in excess of net charge-offs $ (.11) Realized and unrealized losses on loan and securiti
Slide 6: Net Interest Income and Margin
6 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Net Interest Income 689 692 716 722 726 726 744 700 706 712 750 738 738 684 664 595 591 613 NII Adjustments 34 838 18 0 15 738.4 738 684 642 595 591 613 Net Interest Spread 0.0319 0.0309 0.0306 0.0305 0.0296
Slide 7: Average Loans
7 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Exit Portfolios 8.3 8.7 8.2 10.7 11.9 11.3 10.8 9.9 9.1 Other Consumer 3.3 2.9 3.3 3.987 3.1 3.1 3 2.9 2.9 Home Equity 9.7 9.7 9.7 9.8 9.9 10.1 10.3 10.3 10.2 Leasing 10.2 10.3 10 9.8 6.4 6.1 5.9 5.8 5.7 CRE - Construction 17.142 15.3 7 6.9 7.8 7.7 7.5
Slide 8: Average Deposits
8 $10.6 26.7 1.8 13.1 9.5 $61.7 $10.7 24.9 1.7 14.6 11.3 $63.2 $11.1 24.0 1.7 14.7 12.5 $64.0 $12.4 24.1 1.8 14.9 13.6 $66.8 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Foreign Deposits 5.721 5.9 4.121 2.761 1.3 CD's > $100K 6.888 8.072 8.67 9.506 11.3 12.5 13.5 12.8 CD's < $100K 11.454 12.7 12.7 13.1 1
Slide 9: Strengthened Liquidity
9 Strengthened Liquidity Continuing operations Discontinued operations Increased Asset Liquidity Reduced Reliance on Wholesale Funding 84% 1% 4% 2% 9% 76% 14% 1% 3% 6% Average Earning Assets 3Q08 3Q09 Average Deposit & Funding Sources 3Q08 3Q09 Total Loans Loans HFS Investment Securities Other Inves
Slide 10: Nonperforming Assets
10 3Q09 Nonperforming Loans = $2.3 billion Nonperforming Assets Nonperforming Asset Trends 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 NPAs to Loans + OREO 0.0146 0.0159 0.0169 0.02 0.0284 0.0377 0.0446 Peer Median S&P Regional & Diversified Bank Indices 0.0135 0.0165 0.0196 0.0201 0.0276 0.0356 OREO & Other
Slide 11: Net Loan Charge-offs
11 3Q09 Net Loan Charge-offs = $587 million Net Loan Charge-offs Net Loan Charge-Offs to Average Loans 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Exit Portfolios 0.0026 0.0176 0.0049 0.0058 0.0061 0.0069 0.0065 Consumer 0.001 0.001 0.0012 0.0017 0.0019 0.0025 0.0029 RE Construction 0.0004 0.0043 0.0012 0.00
Slide 12: Commercial Real Estate - 3Q09
12 Commercial Real Estate - 3Q09 $ in millions (a) Nonresidential land and development loans (a)
Slide 13: Reducing Risk - CRE Residential Properties
13 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Nonperforming 189 65 108 96 57 77 32 Performing 516 363 259 184 179 100 102 Total 705 428 367 280 236 177 134 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Nonperforming 653 282 346 360 414 523 472 Performing 2985 2433 2010 1794 1425 1118 1020 Total Reducing Risk - CRE Res
Slide 14: Capital ratios: Tier 1 and Tangible Common Equity
14 Fed-defined minimum for a "well capitalized" bank 6.00% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Common 0.0583 0.056 0.0558 0.0562 0.0562 0.0736 0.0763 Capital Raise Convertible 0.0059 0.006 0.0062 0.0065 0.003 0.0032 TARP 0.0226 0.0239 0.0252 0.0268 Qualifying Securities 0.025 0.0234 0.0237 0.0242 0.0
Slide 15: Appendix
15 Appendix
Slide 16: Credit Quality by Portfolio
16 Credit Quality by Portfolio (a) Net charge-off amounts are annualized in calculation. (b) 09-30-09 allowance by Portfolio is estimated. N/M = Not Meaningful $ in millions
Slide 17: Commercial Portfolio - Continuing Ops.
17 Commercial Portfolio - Continuing Ops. Average Loans, NCOs and NPLs $ in millions Third Quarter 2009 $ in millions Second Quarter 2009
Slide 18: Commercial Real Estate - 3Q09 By Property Type
18 Owner Occupied Retail Properties Multifamily Properties Residential Properties Office Buildings Health Facilities Land & Development Warehouses Other % Composition 4990 2690 2603 1492 1362 1157 612 654 1080 Commercial Real Estate - 3Q09 By Property Type $16.6 billion Owner Occupied Retail Propert
Slide 19: Commercial Real Estate Loans September 30, 2009
19 Commercial Real Estate Loans September 30, 2009 $ in millions (a) Nonresidential land and development loans N/M = Not Meaningful (a)
Slide 20: Residential Properties: $1.49 Billion
20 Residential Properties: $1.49 Billion Commercial Real Estate September 30, 2009 20
Slide 21: Home Equity Loans September 30, 2009
21 Home Equity Loans September 30, 2009 $ in millions
Slide 22: Exit Loan Portfolio
22 Exit Loan Portfolio $ in millions (a) Includes the business aviation, commercial vehicle, office products, construction and industrial, and Canadian lease financing portfolios; and all remaining balances related to lease in, lease out; sale in, sale out; service contract leases and qualified tech
Slide 23: Net Charge-Offs to Average Loans Continuing Operations
23 Net Charge-Offs to Average Loans Continuing Operations