Keycorp · NYSE:KEY
Keycorp — Keycorp /New/ — Investor Presentation (June 2008)
19 slides from Keycorp's investor presentation, Jun 12, 2008
Slide 1: Common Stock and Convertible Preferred Stock Offering
Exhibit 99.1 Common Stock and Convertible Preferred Stock Offering June 2008
Slide 2: Forward-Looking Statement Disclosure
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 1 FORWARD-LOOKING STATEMENT DISCLOSURE This presentation contains forward-looking statements, including statements about our financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward- looking stateme
Slide 3: Transaction Overview
2 Transaction Overview Aggregate Offering Size $1.5 Billion Securities Offered • Common Equity • Non-Cumulative Perpetual Convertible Preferred Stock Over – Allotment Option 15% Ticker / Listing KEY / NYSE Use of Proceeds General Corporate Purposes Expected Pricing June 12, 2008 Sole Book-Runner Cit
Slide 4: Recent Actions
3 Recent Actions Tax – Leasing Credit nd th 2 quarter after-tax charge of $1.1 billion to On May 27 disclosed revised NCO guidance of $1.2 billion for LILO, QTE and Service 100-130 bps Contract Leases reflects the adverse decision - Increase from prior guidance of 65 – 90 bps in the previously discl
Slide 5: Rationale & Steps Taken to Bolster Key's Capital Position
Rationale & Steps Taken to Bolster Key’s 4 Capital Position Rationale Addresses head-on and resolves any potential capital issues arising from LILO, QTE and Service Contracts related charges and the CRE-Residential Properties portfolio Strengthens the balance sheet and allows Key to retain top tier
Slide 6: Pro Forma Capital Ratios
5 Pro Forma Capital Ratios Tangible Common Equity/ Tangible Assets Ratio Tangible Equity/ Tangible Assets Ratio 8.50% 8.50% 7.50% 7.50% 7.04% 6.97% 7.04% 6.97% 6.87% 6.87% 6.85% 6.80% - 6.85% 6.58% 6.60% 6.58% 6.30% - 6.50% 6.10% 6.50% 5.50% 5.50% 5.30% 5.30% - 5.10% 5.10% 4.50% 4.50% Q1 '07 Q2 '07
Slide 7: Managing through the Credit Cycle
6 Managing through the Credit Cycle Commercial Portfolio C&I Portfolio Middle market and large corporate portfolios are well-diversified, granular and performing well Modest migration consistent with credit cycle Commercial Real Estate Income Property Group performing well. Modest deterioration expe
Slide 8: NPA Trends
7 NPA Trends $ in millions $1,200 1.80% $1,115 $1,000 1.46% 1.50% $800 $764 1.20% 1.08% $570 $600 0.83% 0.90% $353 $378 $400 $320 $329 $308 $273 0.60% $200 0.54% 0.57% 0.50% 0.41% 0.48% 0.46% $0 0.30% 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 NPAs to Loans + OREO + Other NPAs CRE – Construction $
Slide 9: Credit Quality by Portfolio—1Q08
Credit Quality by Portfolio—1Q08 8 $ in millions C&I $ 25,777 $ 25,411 $ 36 0.57 % $ 147 273.5 % $ 402 1.56 % Commercial Real Estate Commercial Mortgage 10,479 10,283 4 0.17 113 186.7 211 2.01 Construction 8,473 8,468 25 1.18 610 58.7 358 4.23 Commercial Leasing 10,000 10,004 9 0.37 38 339.5 129 1.2
Slide 10: Commercial Real Estate Loans
9 Commercial Real Estate Loans CRE-Residential Properties account for less than 5% of total loans but 62% of NPLs March 31, 2008 Geographic Region % of % of (1) $ in millions NE SE SW Mid W Central West Total Total CRE NPLs Nonowner-occupied Residential Properties $449 $977 $251 $183 $418 $1,360 $3,
Slide 11: Commercial Real Estate
10 Commercial Real Estate Residential Properties: $3.6 Billion $1.4 B $0.2 B $0.4 B California $0.7 B $0.2 B $1.0 B $0.4 B Florida $0.6 B Nonperforming & Past Due Loan $ in millions NE SE SW MW Central West Total Nonperforming loans $10 $226 $66 $38 $5 $308 $653 90% of CRE related NPLs 90+ days past
Slide 12: Strategic Position
11 Strategic Position Significant business and geographic 1 diversification 2 Focus on client-relationship banking 3 Maintain a disciplined, proactive risk management culture 4 Focus on expense management
Slide 13: Diversified Business Mix
12 Diversified Business Mix First Quarter 2008 Revenue (TE) Real Estate Capital and Corporate Banking Services Regional Banking Retail Banking 50% 7% Business Banking Private Banking 9% Equipment Finance Wealth Management 15% 9% 10% Institutional and Capital Markets Victory Capital Management Commer
Slide 14: Geographically Diverse Community Banking
13 Geographically Diverse Community Banking March 31, 2008 Northwest Rocky Mountains Great Lakes Northeast Core Deposits: 23% Core Deposits: 8% Core Deposits: 33% Core Deposits: 32% Commercial Loans: 26% Commercial Loans: 13% Commercial Loans: 31% Commercial Loans: 21% Home Equity Loans: 28% Home Eq
Slide 15: Investing in the Community Bank
14 Investing in the Community Bank Human Capital Client Experience Desktop Teller21 System Branch Modernization
Slide 16: National Banking – Unique Mix of Businesses
15 National Banking – Unique Mix of Businesses People and products aligned around targeted client segments Active and collaborative risk management process Opportunity to continue to penetrate Key’s client base Focused on noninterest income, balance sheet management and improving cross-sell Lines of
Slide 17: Victory Capital Management
16 Victory Capital Management Investment Performance Ranking vs. Peers Rankings 3 yr* 5 yr* 3 Year* 5 Year* Top Decile 2 3 Percentile Product Rank Product Rank Above 25th 7 3 5 Above Median 1 3 2 Top Decile 1 5 Above 75th 1 1 13 1 3 4 12 2 11 12 Below 75th 2 3 7 Total 13 13 6 11 25th 13 4 3 7 Victor
Slide 18: Summary
17 Summary Strong balance sheet and capital position Diversified loan portfolio Relationship-based book of business Experienced management team Conservative risk management focus Positions Company to take advantage of opportunities in the current market
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