Keycorp · NYSE:KEY
Keycorp — Keycorp /New/ — Investor Day (October 2018)
130 slides from Keycorp's investor day presentation, Oct 30, 2018
Slide 1: KeyCorp Investor Day October 30, 2018
KeyCorp Investor Day October 30, 2018 Exhibit 99.1
Slide 2: Agenda
Time Topic Presenter(s) Page 7:45 am Breakfast and Registration 8:30 am Key Overview Beth Mooney 3 Differentiated Business Model Chris Gorman 17 Consumer & Business Banking: Building on Momentum Dennis Devine & Jamie Warder 29 Q&A 10:00 am Break Commercial Payments & Strategic Partnerships Ken Gavri
Slide 3: Key Overview
Beth Mooney Chairman & Chief Executive Officer Key Overview
Slide 4: Appendix
Appendix
Slide 5: KEY Investor Day: Why?
Highlight Key's significant transformation: strategy, execution, and performance Demonstrate the breadth, quality, and distinctiveness of our business model Introduce the depth of our talented, energized senior leadership team Show that the company is positioned to grow and perform through business
Slide 6: Agenda
Agenda Time Topic Presenter(s) 7:45 am Breakfast and Registration 8:30 am Key Overview Beth Mooney Differentiated Business Model Chris Gorman Consumer & Business Banking: Building on Momentum Dennis Devine & Jamie Warder Q&A 10:00 am Break Commercial Payments & Strategic Partnerships Ken Gavrity & C
Slide 7: Significant Transformation
Built targeted scale by executing on a distinctive relationship-based strategy Developed discipline for focused execution to deliver on commitments Strengthened core franchise through investment: market presence, products, and capabilities Completed transformative FNFG acquisition: drove step change
Slide 8: Focused Forward: Step Change in Performance
Distinctive platform and model driving organic growth Focused execution of revenue growth opportunities accelerates our performance Expense discipline and cost savings initiatives drive further improvement in efficiency and returns Cash Efficiency Ratio1,2 Earnings per Common Share1 ROTCE1,2 Distinc
Slide 9: Why Key? Positioned to Outperform
Leading commercial and investment banking platform aimed at middle market companies Attractive market presence Financial Wellness focus Distinctive Model Targeted Scale Focused Execution Disciplined Capital & Risk Management Delivering Results Proven model è focused on building targeted scale agains
Slide 10: Winning with Targeted Scale
Revenue Growth Loan Growth Growth Metrics (2012 – 2017) Types of Scale Deposit Growth Institutions with significant market share in a product capability delivered to a broad set of clients Largest players in a given market as defined by resources within the franchise: most investment, broadest distr
Slide 11: Targeted Scale: Where We Invest to Drive Growth
Organic Investment Third Party Partnerships Examples Impact Focused investment in talent (senior bankers, product specialists, and other focused areas, e.g., analytics) Strengthening products and capabilities Simplification of systems and processes to drive client experience and efficiency Digitizat
Slide 12: First Niagara Acquisition
Good use of capital with strong returns Execution and integration exceeded expectations Strengthened Key’s brand and presence in shared markets while adding complementary new markets Created leading market share in Upstate NY Over 1 million new clients and ~$27 billion in deposits Augmented and dive
Slide 13: Digitizing the Enterprise
Client-empowering DIGITAL Experiences Connecting to client preferences; enabling Ease, Value, & Expertise End-to-end DIGITAL Process Redesign Faster, leaner, and smarter Analytics-driven Products and Decisions Real-time data supply chain leveraging cognitive & artificial intelligence Operational Eff
Slide 14: Clear Capital Priorities and Enhanced Risk Management
Clear Capital Priorities Enhanced Risk Management 1. Organic Growth 2. Dividends 3. Share Repurchases Common share dividend: é 42% in 3Q18 >3% yield1 28% CAGR since 2011 Focused on sound, profitable growth Implemented strategic exits and asset class reductions Targeted approach to specific markets,
Slide 15: Delivering Results for Stakeholders
v Employees Together we do work that matters, have opportunities for growth, and our efforts are recognized and rewarded We help our clients make better, more confident financial decisions We have an award winning culture of community development, philanthropy and volunteerism $16.5B National Commun
Slide 16: Why KEY? Positioned to Outperform
We have a distinctive, relationship-based business model We are winning with targeted scale We are focused on executing on revenue and expense opportunities We are remaining disciplined with capital and risk management We are delivering results to our stakeholders 2011 Emerging from crisis under new
Slide 17: Differentiated Business Model
Differentiated Business Model Chris Gorman Vice Chairman & President of Banking
Slide 18: Appendix
Appendix
Slide 19: Competitive advantage with full set of products for targeted clients
Competitive advantage by providing a full set of products and services to targeted clients As of 9/30/18 unless otherwise noted Key Overview 3.5MM Clients $41B Assets Under Management $664MM Investment Banking & Debt Placement Fees (TTM) 13% C&I Loan Growth 5-year CAGR 61% Consumer Deposits, % of to
Slide 20: Targeted Scale at Key: Examples
Commercial Industry Verticals Key Equipment Finance Real Estate Loan Servicing Historical Retail Franchise Scale at Key: Examples (1) Metropolitan Statistical Areas (MSAs) within retail footprint with greater than $3B in market deposits where Key has a Top 5 market share; source: FDIC Summary of Dep
Slide 21: Consumer Capabilities and Expertise
Strong Market Share Top 5 in 20 MSAs1 3.5 Million Clients 5 Consecutive Years of Organic Growth Accelerating Growth & Profitability 4 Consecutive Years of Positive Operative Leverage2 Current State Positioned for Growth Ease Enabling simple and clear banking with no surprises Value Knowing the clien
Slide 22: Commercial Banking and Capital Markets Capabilities
Traditional Bank Products Capital Markets Capabilities Deposits & payments Loans Wealth management & private banking Equipment finance Commercial mortgage banking Derivatives & foreign exchange Equity capital markets Equity research M&A, sponsors, leveraged finance Investment grade & high-yield debt
Slide 23: Delivering the Distinctive Platform
In the 12 months ended 3Q18, Key advised on ~$17B of M&A and raised $72B in capital for our clients 55% of investment banking clients have engaged in multiple transactions over the last 3 years Key’s Non-Capital Solutions Derivatives Foreign Exchange Deposits & Payments Wealth Mgmt & Private Banking
Slide 24: Vertical Case Study: Industrial
Vertical Case Study: Industrial Deep industry expertise is core to our model è enabling bankers to serve as advisors to our clients Industrial Coverage Sub-Verticals 23 Bankers with avg. tenure >7 years 7 Research Analysts 600+ Clients 200+ Companies Under Research 18th Annual Industry Conference in
Slide 25: Vertical Case Study: Supporting Clients Strategically
July 2018 Senior Unsecured Interim Term Loan Joint Lead Arranger Joint Bookrunner Co-Admin Agent Vertical Case Study: Supporting Clients Strategically Our relationship model, paired with industry expertise and broad capability, delivers results Differentiated Capabilities Longstanding Relationship B
Slide 26: Building Our Differentiated Commercial Platform
Building Our Differentiated Commercial Platform C&I loans (avg) Investment banking & debt placement fees (TTM) $18B $245MM $43B $664MM A deliberate, constant focus on serving all target client needs created the leading middle market bank Building the Foundation: 1998-2011 Leveraging & Scaling the Pl
Slide 27: Executing to Drive Growth
Executing to Drive Growth The next leg of our journey requires us to leverage the strong businesses we have while developing and executing similar approaches in other areas Core Business Principles Our success has been driven by 3 principles: Relationship Strategy – focusing our efforts on targeted
Slide 28: Differentiated Business Model
Differentiated Business Model Demonstrated ability to build scaled businesses against targeted customer sets Differentiated commercial relationships drive recurring fee income Poised for growth by adding and expanding relationships across each of our businesses Distinctive commercial platform built
Slide 29: Consumer & Business Banking: Building on Momentum
Consumer & Business Banking Building on Momentum Dennis Devine Co-President, Key Community Bank Jamie Warder Head of Key Business Banking
Slide 30: Appendix
Appendix
Slide 31: Results of our Transformation
Deposit Growth 12% CAGR ($ in billions) Consumer and Business Banking Cards & Payments Income Strong Market Share top 5 in 20 MSAs2 3.5 Million Clients 5 Consecutive Years of Organic Growth1 Accelerating Growth & Profitability 4 Consecutive Years of Positive Operative Leverage3 Results of our Transf
Slide 32: Simplification and Digitization
Simplification and Digitization Physical Presence Remixed Talent4 +49% Branch Advice & Sales Roles (32%) Branch Transaction Roles Strategic investments are simplifying and digitizing the client and employee experience è driving growth and operating leverage Simplified Business Process & Systems Resu
Slide 33: Analytics Drive Positive Operating Leverage
Analytics Drive Positive Operating Leverage Relationship Rate Relationship Pricing rewards full client relationships Resulting Benefit Strong Data Analytics Clients are segmented and administered a rate to drive expansion, retention, and optimal pricing betas Rate Sensitivity Client Lifetime Value P
Slide 34: Key's Financial Wellness is a Differentiator
Key’s Financial Wellness is a Differentiator Holistic approach to wellness delivers data, insights, and tailored solutions to our clients across all channels Financial instability is pervasive in the US; #1 source of stress within all our target segments Despite the proliferation of digital tools, a
Slide 35: Wellness Insights and Analysis
Wellness Insights and Analysis Digitally delivered insights integrated into online banking lead to recommendations
Slide 36: Financial Wellness in Action
In-Branch Wellness: Financial Wellness reviews are centerpiece of playbook and client experience Digital Wellness: Budgeting, account aggregation, transaction tracking with advice and tips Financial Wellness in Action Wellness integrated across client experiences Our Integrated Approach Client Engag
Slide 37: Business Banking: Winning with Financial Wellness
Specialized practice lending Revenue cycle management with payors Patient/Appointment Management Group Purchasing Business Banking: Winning with Financial Wellness 230K Clients $5B Loans Top 15 SBA 7A Lender in U.S. $14B Deposits Bundled Solutions: Medical Practice Targeted payment-intensive industr
Slide 38: Small Business Wellness Review
x Small Business Wellness Review” {or Bidption Merobewery
Slide 39: What motivated you to start your business?
What motivated you to start your business? f &
Slide 40: What are your goals and challenges?
ad What are your goals and challenges?
Slide 41: “eons
“eons Which of the following best describes your business? a) S| 8) || & »)
Slide 42: How is your business organized?
How is your business organized?
Slide 43: What do you anticipate this year's annual sales to be?
What do you anticipate this year's annual sales to be? ss 5&8 8 ®
Slide 44: How do your customers pay you today?
5 Callect money trom So Pay your ver your customers DS _ employees, and partners > > Finance your short tet, Soyou can Manage Secure your business P spatter noses O ourbusiess 8 Sayourutue Collect How do your customers pay you today? a 4, =) %/ 9 Credit or Debit Card
Slide 45: Finance
O Finance
Slide 46: KeyBank Business Banking Clients
hing about KeyBank knows somet Restaurants, Cafes, and Bars Mobile Options! mere ts my food from? ‘Social Mecia Buzz! KeyBank Business Banking Clients 5,000+ $500MM+ $250MM+ $23B+
Slide 47: We can help you manage
We can help you manage: ory of ingredients, tp pooling, and payrolt + Payments to the vendors We can help you establish: + Online reservations Meet Your Team ‘Our team of experts at KeyBank is ready to help you with easy and customized solutions. We have convenient locations for branches and ATMs. K
Slide 48: Solutions for Bridgefront Microbrewery
Solutions for Bridgefront Microbrewery lst of products in the Adcitional Products section. Speak toa Trusted Advisor
Slide 49: Open Accounts for Bridgefront Microbrewery
re ec | Open Accounts for Bridgefront Microbrewery Great! We're excited to be working with you! Let's start getting together the paperwork you need to open your account KeyBank Experts Included 14 Products 0 Products
Slide 50: Building on Momentum
Simplifying and digitizing the client experience to drive growth and operating leverage Financial Wellness is a differentiator with omni-channel delivery of insights è client value Business Banking is growing with industry-specific and payment focused client solutions Transformation has improved pro
Slide 51: Commercial Payments & Strategic Partnerships
Ken Gavrity Head of Commercial Payments Clark Khayat Chief Strategy Officer Commercial Payments & Strategic Partnerships
Slide 52: Appendix
Appendix
Slide 53: Commercial Payments: Comprehensive Platform
650+ Million Payment Transactions Conducted1 ~$800 Million Deposit & Product Revenue3 $3.6 Trillion Payments Volume Processed1 < $10 MM $10 MM - $500 MM $500 MM+ Corporations >$500 MM Client Revenue: Commercial Businesses Small Businesses Commercial Payments: Comprehensive Platform Digital & Mobile
Slide 54: Commercial Payments: Compelling Opportunity
Commercial Payments: Compelling Opportunity We are focused on delivering and capturing value in this dynamic, growing space Potential to Deliver Significant Client ROI (1) 2017, Phoenix Hecht Treasury Management Monitor; (2) 1999-2017, Bureau of Labor Statistics Bookkeeping, Accounting, and Audit Cl
Slide 55: Commercial Payments: Repositioned for Opportunity
ü ü Commercial Payments: Repositioned for Opportunity Building our payments franchise through focused investments that help us differentiate Next generation platforms that meet our clients where they are Digital Platforms Rebuilt servicing, onboarding, and workflow capabilities Capabilities Upscalin
Slide 56: Commercial Payments: Repositioned for Opportunity
ü Commercial Payments: Repositioned for Opportunity Building our payments franchise through focused investments that help us differentiate Payments in Focus (2011-2014) Organizational Transformation (2014-2016) Accelerated Differentiation (2016+) Up-tiered talent across the teams Aligned against ind
Slide 57: Commercial Payments: Repositioned for Opportunity
Commercial Payments: Repositioned for Opportunity Building our payments franchise through focused investments that help us differentiate Payments in Focus (2011-2014) Organizational Transformation (2014-2016) Accelerated Differentiation (2016+) Purchase of Merchant Services Joint Venture Continued b
Slide 58: Commercial Payments: Client Centric
Unlocking value for clients across the payments continuum Adding Value Beyond the Payment 75%+ Payment & Invoice Cost Reduction1 50%+ Payment Capture & Reconciliation Cost Reduction1 Pre-Payment Process Traditional Banking Payment Execution Payment Optimization Consumer Energy Healthcare Industrial
Slide 59: Commercial Card and Merchant Services Volume
Commercial Card Volume1 Our reconfigured model is driving significant growth – but ample opportunity remains Strong Performance: Gaining Share Significant Runway: Benchmarking Merchant Services Volume2 50% CAGR 25% Growth 2017 Commercial Card Volume1 2017 Merchant Services Volume2 (1) US Visa & Mast
Slide 60: Commercial Payments: Partnership Strategy
Commercial Payments: Partnership Strategy Proven track record of sourcing targeted solutions to solve client pain points Focused Approach Partnerships Critical for Targeted Solutions Client Centered Approach – Every partnership stems from a deep understanding of client needs and a commitment to brin
Slide 61: Partnership Strategy: Adapting for Growth
Partnership Strategy: Adapting for Growth True partnership requires a change in skillset from traditional roles Sales Joint sales management, call planning, and client presentations Servicing Clear roles and responsibilities and escalation procedures to deliver on client success and experience Produ
Slide 62: Partnership Strategy: Solving More Client Needs Faster
Partnership Strategy: Solving More Client Needs Faster Leveraging partners enhances Key’s expertise while improving our speed to market Determining When to Partner at Key Augment value proposition Fill gap or strengthen offering to clients Gain access to pools of clients Use partner position to crea
Slide 63: Commercial Payments and Strategic Partnerships
Differentiated business model that creates considerable value for clients and Key Partnership strategy built on client centric approach that delivers leading solutions Proven ability to engage with the right partners at the right time and in the right way Proven growth engine with meaningful opportu
Slide 64: Appendix
Appendix
Slide 65: Technology Strategy: Enabling Growth & Innovation
Technology Strategy Enabling Growth & Innovation Amy Brady Chief Information Officer
Slide 66: Appendix
Appendix
Slide 67: Our Technology Strategy
Digitize the Enterprise Insights and Analytics Support Business Growth Strategies Cyber/ Fraud Modernize/ Operating Efficiency Business Enablement Optimization Advancing our technology remains foundational to Key’s strategy of building enduring client relationships through Ease, Value, and Expertise
Slide 68: Targeted Investment Approach
Targeted Investment Approach Technology Portfolio Annual Spend Distribution Balanced portfolio strategy to support operations, improve efficiency, and enable growth Representative Investments Targeted to Support Emerging Growth Opportunities Consumer Business Banking Commercial Payments and Deposits
Slide 69: Digitizing the Enterprise
Digitizing the Enterprise We have substantially advanced our digital capabilities Our Journey Our Accomplishments Client-empowering DIGITAL Experiences End-to-end DIGITAL Process Redesign Analytics-driven Products and Decisions Operational Efficiency and Effectiveness Always On, Secure, On the Go, 2
Slide 70: Modernizing Our Systems
Modernizing Our Systems Investing in client experience and core systems modernization to drive end-to-end simplicity and agility Back Office Network/Infrastructure KeyNavigator Key Digital Key Wealth Direction Salesforce - Commercial Salesforce – Wealth KEF – Onboarding (Aspire) Consumer and Mortgag
Slide 71: Architecture Agility and Core Modernization
Key has transitioned from our historic siloed integration framework to a microservices-based API framework Oracle Banking Platform (1st bank in US), Backbase omni-channel platform (1st bank in US) Enables continuous deployment, agile initiative management and DevOps Architecture Agility and Core Mod
Slide 72: Data and Analytics
Data and Analytics Our modernization investments facilitate better data and analytics Robust Data Supply Chain Comprehensive Data Sourcing Integrated “Data Lake” Single Customer Master Platform Strong Data Governance Interactive Data Visualization Analytics Capabilities Business Outcomes Optimized P
Slide 73: Innovation: Partnerships and APIs
In-House Development KeyNavigator Small Business Wellness Review Tool Strategic Partnerships and APIs Partnerships API Connections Permissioned vendor relationships with data connectivity via API: 50+ Connected APIs Innovation Building differentiated capabilities through an innovative, FutureReady w
Slide 74: Enabling Growth & Innovation
Enabling Growth & Innovation Balanced portfolio strategy Intense focus on maintaining a secure and safe environment Well-positioned to support continued growth and drive efficiency Significant investment in modernization è driving efficiency and enabling growth Proven ability to build differentiated
Slide 75: Commercial Real Estate: Building & Managing Scale
Commercial Real Estate Building & Managing Scale Angela Mago Co-President, Corporate Bank
Slide 76: Appendix
Appendix
Slide 77: Commercial Capabilities and Expertise
Commercial Capabilities and Expertise Competitive advantage with targeted clients Growing Loans and Fee Income Energy Healthcare Industrial Public Sector Real Estate Consumer Technology Targeted Industry Verticals Traditional Bank Products Capital Markets Capabilities $18B $245MM $43B $664MM +14% +1
Slide 78: Differentiated Model: Targeted Scale
Differentiated Model: Targeted Scale Scale in Supporting Fee Generating Businesses Targeted Segments Broad Capital Placement Capabilities Income Property Group Privately owned firms with: Top tier owners of income-producing real estate with scale, asset stability, and modest leverage Active users of
Slide 79: Commercial Mortgage Banking & Servicing
Off Balance Sheet Differentiated Model: Targeted Scale Scale in Supporting Fee Generating Businesses Targeted Segments Broad Capital Placement Capabilities Commercial Mortgage 3rd Party Commercial Mortgage Servicing $224B Loans Serviced1 $6.5B Escrow Deposits1 #3 Ranked Commercial Mortgage Loan Serv
Slide 80: Scale Against Targeted Clients
Scale Against Targeted Clients U.S. Based Banks by Total Assets 13 $2,534 (FY2017, $ in B) $2,281 $1,952 $1,842 $462 … $138 Industry Leading Platform Executing On Our Value Proposition, Driving Outsized Scale Overall Freddie Originator Commercial Mortgage Loan Servicer in 2017 Fannie Seniors Origina
Slide 81: Case Study: Enabling Client Growth
Scale Against Targeted Clients Case Study: Enabling Client Growth 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Bank Debt & Syndications Debt Capital Markets Equity Capital Markets Commercial Mortgage Commercial Payments Lead Arranger Lead Arranger Lead Arranger Lead Arr
Slide 82: Commercial Real Estate: Strategic Repositioning
Commercial Real Estate: Strategic Repositioning Pre-Crisis (2006) September 2018 ∆ CRE Balances % of Total Key Loans CRE IB&DP Fees1 Fee Income/ Revenue1 Fee Income/ FTE1 +29% (1%) +270% +20% +188% Note: Balances are as of period-end; (1) TTM September 2018 Strategic Focus Focused on thoughtful grow
Slide 83: Positioned for Growth
Positioned for Growth Commercial Payments Affordable Housing Loan Servicing Key Growth Areas Drivers Proven Ability to Execute Continuing to invest in technology and client service excellence to position for consolidation Focus on growth in institutional clients, life companies, and named special se
Slide 84: Building and Managing Scale
Building and Managing Scale Substantial fee income from capital markets and distinctive fee generating platforms Dramatically repositioned business since the financial crisis with disciplined risk culture Clear room to grow by building on existing and adjacent opportunities Targeted relationship mod
Slide 85: Maintaining a Moderate Risk Profile
Maintaining a Moderate Risk Profile Positioned to Outperform Mark Midkiff Chief Risk Officer
Slide 86: Appendix
Appendix
Slide 87: Risk Management at Key
Risk Management at Key Enhanced and transformed enterprise-wide approach to risk management Significantly enhanced risk profile: focused on soundness, profitability, and growth Improved credit risk profile with strategic exits and growth in targeted client segments Enhanced framework, governance, an
Slide 88: Enterprise Risk Framework
Significantly enhanced risk profile: focused on soundness, profitability, and growth Enterprise Risk Framework Everyone owns risk Clear accountability Transparency Escalation Maintain moderate risk profile through cycle Inform risk appetite through stress testing Engage 3 lines of defense Enable exp
Slide 89: Credit Risk Management
Credit Risk Management Enhanced and Disciplined Approach, driven by: Target specific client segments Broad products and industry verticals (on or off balance sheet) Line of business clear risk accountability Seasoned bankers serve client needs Relationship-based Business Model Governance Oversight R
Slide 90: Repositioned credit risk profile with strategic exits
Merchant builders/developers Construction Homebuilders Land and condos Equity and mezzanine Select geographies Select transportation & media Out-of-market auto & RV dealers Portfolio Discipline Strategic Exits and Reductions Targeted Growth Areas Repositioned credit risk profile with strategic exits
Slide 91: Loan Portfolio Evolution
Loan Portfolio Evolution Dramatic repositioning of balance sheet and risk profile December 2006 September 2018 CRE: Construction CRE: Mortgage C&I Commercial Leasing Residential Mortgage Home Equity Other Consumer CRE: Construction CRE: Mortgage C&I Commercial Leasing Residential Mortgage Home Equit
Slide 92: Improved Loss Absorption
~$9B Dec 2006 ~$15B Sept 2018 Tangible Common Equity + ALLL Stronger loss absorption driven by: sound capital position, reduced exposure in certain asset classes and growth in targeted sectors Improved Loss Absorption Stronger Loss Absorption Sound capital position and allowance Total Loans Loans /
Slide 93: Positioned to Outperform
Positioned to Outperform Relationship business model with distribution capabilities Strong credit risk profile è focused on targeted client segments Effective governance and oversight including investments in people and technology Strong risk culture è accountability and ownership Sound capital posi
Slide 94: Appendix
Appendix
Slide 95: Delivering on Targets & Commitments
Delivering on Targets & Commitments Don Kimble Vice Chairman & Chief Financial Officer
Slide 96: Appendix
Appendix
Slide 97: Executing on Targets
Positive Operating Leverage Cash Efficiency Ratio: 54% - 56% Moderate Risk Profile: Net charge-offs to avg. loans targeted range of 40 - 60 bps Return on Average Tangible Common Equity: 16% - 19% Targets Growing & expanding relationships Extending scale segments Enhancing products and capabilities D
Slide 98: Focused Expense Discipline
Focused Expense Discipline Cost Savings Reinvestments 2019 Plans Accelerating cost saving efforts to achieve efficiency ratio target by 2H19, while maintaining the ability to reinvest in our businesses: Infrastructure and service delivery efficiency Process simplification Leveraging technology inves
Slide 99: Disciplined Capital Management
1. Organic Growth 2. Dividends 3. Share Repurchases $3.4 billion Common share repurchases since 20123 9.9%4 9.0% - 9.5% Common share dividend: é42% in 3Q18 >3% yield1 28% CAGR since 2011 102% Share Repurchases Dividends Dividend Payout Target: 40% - 50% Common Equity Tier 1 Shareholder Payout5 Capit
Slide 100: A/LM Philosophy
A/LM Philosophy Key maintains a Moderate Risk Profile (limited appetite for market-driven risks, including interest rate risk) We believe shareholders achieve greater long-term value from growth in our core business activities, rather than our rate view vs. the market’s ‘Natural business’ results in
Slide 101: Transformed Franchise
Operating Results Valuation 16%-19% 54%-56% Cash Efficiency Ratio1,2 Return on Avg. TCE2 Business Mix 2011 2017 Pre-provision Net Revenue Consumer: 18% Commercial: 82% Commercial: 66% Consumer: 34% Return on Tangible Common Equity (2Q18) Price / Tangible Book Value (6/30/18) Peer banks3 Transformed
Slide 102: Delivering on Targets and Commitments
Delivering on Targets and Commitments Achieving our financial targets and delivering consistent top-tier performance Maintaining our moderate risk profile to outperform through the cycle Remaining disciplined with capital, consistent with our priorities Making targeted investments in technology and
Slide 103: Concluding Remarks
Beth Mooney Chairman & Chief Executive Officer Concluding Remarks
Slide 104: Appendix
Appendix
Slide 105: Why KEY? Positioned to Outperform
Leading commercial and investment banking platform aimed at middle market companies Attractive market presence Financial Wellness focus Distinctive Model Targeted Scale Focused Execution Disciplined Capital & Risk Management Delivering Results Proven model è focused on building targeted scale agains
Slide 106: Appendix
Appendix
Slide 107: Appendix
Appendix
Slide 108: Appendix
Appendix
Slide 109: Forward-looking Statements and Additional Disclosures
Forward-looking Statements and Additional Disclosures 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 110: 4Q Outlook and Long-term Targets
4Q Outlook and Long-term Targets 4Q18 (vs. 3Q18) Long-term Targets Positive operating leverage Cash efficiency ratio: 54%-56% Moderate risk profile: Net charge-offs to avg. loans targeted range of 40-60 bps ROTCE: 16%-19% Average Loans: Up low single digit Average Deposits: Relatively stable Net Int
Slide 111: Corporate Governance and Responsibility
Active Shareholder Engagement Program Corporate Governance and Responsibility Strong Corporate Governance Independent, Diverse and Highly-Qualified Board of Directors Robust Independent Lead Director role Independent Board committee chairs Diverse representation Broad industry expertise and experien
Slide 112: Financial Highlights
Financial Highlights Note: EOP = End of Period; (1) Non-GAAP measure; see Appendix for reconciliation. Additional disclosure regarding non-GAAP measures is available in our reports filed with the SEC, available at key.com/documents; (2) From consolidated operations; (3) 9/30/18 ratios are estimated;
Slide 113: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) For the three months ended September 30, 2018, June 30, 2018, and September 30, 2017, intangible assets exclude $17 million, $20 million, and $30 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus $ in millions Three
Slide 114: Appendix
Appendix
Slide 115: Biographies
Biographies
Slide 116: Appendix
Appendix
Slide 117: Beth E. Mooney
Beth E. Mooney Chairman and Chief Executive Officer, KeyCorp Director, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Beth Mooney has been Chairman and Chief Executive Officer of KeyCorp since May 1, 2011. In 2010, she was named President and became a m
Slide 118: Amy G. Brady
Chief Information Officer, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Amy G. Brady is Key’s Chief Information Officer, leading the company’s Technology and Operations organization. In her role, Amy oversees all of Key’s shared services for technolog
Slide 119: E.J. Burke
Co-President of Key Community Bank, Commercial, Residential Mortgage & Private Banking, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp E.J. Burke is a Co-President of Key Community Bank. He is responsible for Key’s Commercial Banking, Residential Mortga
Slide 120: Dennis Devine
Co-President of Key Community Bank, Consumer and Business Banking, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Dennis Devine is a Co-President of Key Community Bank. He is responsible for Key’s Consumer and Business Banking lines of business national
Slide 121: Katrina (Trina) M. Evans
Executive Vice President, KeyCorp Chief of Staff and Director of Corporate Center, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Katrina (Trina) M. Evans is the Executive Vice President and Director of Corporate Center for KeyCorp. Trina leads the team
Slide 122: Ken Gavrity
Executive Vice President, KeyCorp Group Head, Enterprise Commercial Payments KeyCorp Member of Executive Council, KeyCorp Ken Gavrity is Group Head of Enterprise Commercial Payments (ECP) for KeyCorp. He is responsible for the strategy, development and distribution of Key’s domestic and internationa
Slide 123: Christopher M. Gorman
Vice Chairman – President of Banking, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Chairman and CEO, KeyBank N.A. Christopher M. Gorman currently serves as Vice Chairman and President of Banking. In this role, Chris is responsible for KeyCorp’s busine
Slide 124: Clark Khayat
Executive Vice President, KeyCorp Chief Strategy Officer, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Clark Khayat is Executive Vice President and Chief Strategy Officer for KeyCorp. In this role he is responsible for corporate strategy, mergers and
Slide 125: Don Kimble
Vice Chairman and Chief Financial Officer, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Don Kimble joined KeyCorp as Chief Financial Officer on June 3, 2013. With assets of $139 billion, Key is among the nation's largest bank-based financial services
Slide 126: Angela Mago
Executive Vice President, KeyCorp Co-Head of Corporate Bank, KeyCorp Head of KeyBank Real Estate Capital, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp In her 30 years at Key, Angela Mago has been involved in real estate and healthcare finance. In Janu
Slide 127: Mark Midkiff
Chief Risk Officer, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Mark Midkiff is Chief Risk Officer of KeyCorp, responsible for Key's risk management functions, including credit, market, compliance and operational risk, as well as portfolio management
Slide 128: Randy Paine
Executive Vice President, KeyCorp Co-Head of Corporate Bank, KeyCorp President of KeyBanc Capital Markets, KeyCorp Member of the Executive Leadership Team, KeyCorp Member of Executive Council, KeyCorp Randy Paine is Co-Head of Key Corporate Bank and President of KeyBanc Capital Markets. Randy is a m
Slide 129: Jamie Warder
Executive Vice President, KeyCorp Head of Business Banking, KeyBank N.A. Member of Executive Council, KeyCorp Jamie Warder leads Business Banking and Investment Services at Key Bank responsible for business clients in the $0-10MM space and the Retail Investment and broker/dealer business. Prior to j
Slide 130: Appendix
Appendix