Keycorp · NYSE:KEY
Keycorp — Investor Presentation (November 2021)
22 slides from Keycorp's investor presentation, November 2021
Slide 1: KeyCorp Investor Meetings: Europe – November 2021
KeyCorp Investor Meetings: Europe – November 2021
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 $187 billion $147 billion $23 billion − Focused on building targeted scale in specific client total assets d
Slide 4: Targeted Scale Strategy
Targeted Scale Strategy Targeted scale drives deeper penetration in high growth sectors and markets Targeted Scale in High Growth Sectors & Meaningful Niches Healthcare Renewables Affordable Technology 20% 1.6x 3.4MM 10% of US GDP and Increase in renewable Affordable Housing of GDP and grew 66% grow
Slide 5: Strategic Pillars Accelerate Growth
Strategic Pillars Accelerate Growth Investing for long-term success while generating positive operating leverage Strategic Pillars Results Primacy: serve as client’s primary bank and retain 1 Record household growth operating account − Supported by investments in digital and analytics, including YTD
Slide 6: Leading the way with Digital: A Focus on Targeted Scale
Leading the way with Digital: A Focus on Targeted Scale Accelerating our digital and analytics journey to drive sustainable growth Strategic Priorities Actions & Investments Investing in digital to create a … resulting in increased digital usage across client base and improved seamless experience fo
Slide 7: Targeted Scale Execution: Laurel Road for Healthcare
Targeted Scale Execution: Laurel Road for Healthcare Laurel Road is a differentiated growth engine for Key to drive targeted scale and expand footprint nationally Current State Next Steps ■ Unique digital-first, relationship-based ■ Comprehensive product suite: Laurel Road for Healthcare business mo
Slide 8: 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 Committed to moderate risk profile and strong taken over time to reduce risk profile underwriting standards
Slide 9: Disciplined Capital Management
Disciplined Capital Management Highlights Capital Priorities Disciplined in how we manage, invest, deploy, and return capital Focused on the return on and the return of capital Supporting Stress test demonstrates Key’s ability to weather adverse operating Share Organic Dividends environments (
Slide 10: Why KEY
Why KEY Key: A Compelling Investment 1 Distinctive business model with differentiated strategy built around targeted scale 2 Leading position in high growth sectors of GDP and markets 3 Targeted investments in digital, analytics, and teammates 4 Strong risk management practices support sound profita
Slide 11: Appendix
Appendix 11
Slide 12: 4Q Outlook and Long-term Targets
4Q Outlook and Long-term Targets 4Q21 (vs. 3Q21) Average Loans: Up low-single digit (excluding the impact of sale of the indirect auto portfolio) Average Deposits: Relatively stable Net Interest Income (TE): Down low-single digit Reflects lower PPP forgiveness in 4Q Noninterest Income: Relatively st
Slide 13: Corporate Responsibility
Corporate Responsibility ESG Fast Facts National Community Benefits Plan Expansion Given our momentum and the intensity of the need, we’re extending #2 Wind & Solar lender in North America and expanding our National Community Benefits commitment to more Environmental $6.6Bn committed to renewabl
Slide 14: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail Total Commercial Loans Commercial & Industrial (C&I) Solid middle market portfolio $ in billions 9/30/21 % of total loans Aligning bankers to areas of market opportunity and growth - Commercial and industrial $ 49.5 50 investing in strategic hires with industry v
Slide 15: Consumer Loan Portfolio Detail
Consumer Loan Portfolio Detail Laurel Road Total Consumer Loans $ in millions Origination Volume $ in billions 9/30/21 % of total WA FICO at loans origination $590 $475 $504 $419 $399 Consumer mortgage 14.2 15 765 Home equity C&I 8.7 9 CRE 801 3Q20 4Q20 1Q21 2Q21 3Q21 Consumer direct $40 5.3 $18 5 7
Slide 16: Deposits
Deposits Average Deposits Highlights $ in billions $160 $147 Strong and stable deposit base $140 $135 − 35% noninterest-bearing(a) $120 .23% − ~60% stable retail and low-cost escrow $100 − 67% loan to deposit ratio(b) $80 .16% .06% vs. Prior Year $60 $40 .04% Average deposits up 9% from 3Q20 $20
Slide 17: Investment Portfolio
Investment Portfolio Average Total Investment Securities Highlights $ in billions $43.4 Portfolio used for funding and liquidity management $40.0 2.50% ‒ Portfolio composed primarily of fixed-rate GNMA and $33.6 GSE-backed MBS and CMOs $32.0 2.00% ‒ Portfolio yield excluding short-term Treasuries:
Slide 18: Asset & Liability Management Positioning
Asset & Liability Management Positioning Balanced approach to managing interest rate risk provides declining rate protection while maintaining significant upside to higher rates 3Q21 Balance Sheet Highlights(a) Actively Managing Interest Rate Risk Position Loan Composition Deposit Mix Modest expos
Slide 19: 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% 3.3% .40% .33% 2.0% .17% .20% .07% .08% .00% .0% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 30 – 89 days deli
Slide 20: 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 (%) 9/30/21 3Q21 3Q21 3Q21 9/30/21 9/30/21 9/30/21 9/30/21
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions Three m onths ended 9/30/2021 6/30/2021 9/30/2020 Tangible com m on equity to tangible assets at period end Key shareholders' equity (GAAP) $ 17,510 $ 17,941 $ 17,722 Less: Intangible assets (a) 2,814 2,828 2,862 Preferred Stock (b) 1,856 1,856 1,856 Tan
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions Three m onths ended 9/30/2021 6/30/2021 9/30/2020 Return on average tangible com m on equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ 616 $ 698 $ 397 Average tangible common