Keycorp · NYSE:KEY
Keycorp — Investor Day (March 2022)
96 slides from Keycorp's investor day presentation, Mar 1, 2022
Slide 1: Key Overview
Key Overview Chris Gorman Chairman and Chief Executive Officer
Slide 2: Forward-looking Statements
Forward-looking Statements 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 conditions. Forward-looking
Slide 3: Agenda
Agenda Introduction & Welcome | Chris Gorman 8:30AM Relationship Banker Driven Businesses | Angela Mago & Randy Paine Enterprise Payments and Commercial Primacy | Ken Gavrity Q&A Break Driving Consumer Relationship Growth | Victor Alexander Targeted Scale Execution in Healthcare: Laurel Road | Jamie
Slide 4: Key Takeaways: Focus Propels Growth
Key Takeaways: Focus Propels Growth A new KEY built around targeted scale, driving sustainable growth and returns 1 We have a unique business model focused on targeted scale 2 We have clear strategic opportunities to accelerate growth 3 We are making targeted investments that are driving tangible re
Slide 5: KEY: Then, Now and The Future
KEY: Then, Now and The Future Then: Competitive Disadvantages The New KEY: Competitive Strengths Overweighted to commercial with lack of consumer growth engines ✓ Balanced franchise with strong consumer growth engines Reliant on stable, but slow growth markets ✓ Strong presence in fast-growing marke
Slide 6: Relationship-Focused Business Model - Consumer
Relationship-Focused Business Model - Consumer Key’s Consumer Bank is focused on acquiring and deepening relationships Strong foundation and distribution … with a targeted national digital offering… expands footprint nationally for targeted clients: originations in all 50 states … and strong momentu
Slide 7: Accelerating Consumer Growth
Accelerating Consumer Growth Clear, strategic growth opportunities across consumer franchise Adding Deepening Capitalizing on Leveraging relationship existing client high growth digital and client relationships markets analytics households Record net new >$22Bn consumer 4X household growth in 75%1 i
Slide 8: Unique Business Model - Commercial
Unique Business Model - Commercial We have a differentiated and targeted, full-service platform delivered through a unique, relationship-based approach A differentiated and comprehensive platform… …with a full set of products and capabilities… Trillionaire/ Commercial Derivatives & Regional Loans Pa
Slide 9: Accelerating Commercial Growth
Accelerating Commercial Growth Commercial Compounded Annual Growth Rate (10-YR): Investment Banking and Debt Placement Fees: 15% 80 $937MM Leading full-service commercial and investment bank Commercial and Industrial Loans: 11% 900 serving middle-market clients in targeted verticals 70 700 ▪ Acceler
Slide 10: Targeted Scale Focus: High Growth Sectors
Targeted Scale Focus: High Growth Sectors Healthcare Technology Renewables Affordable 20% 10% 95% ~37 of US GDP and growing of GDP and grew 66% Renewables portion of total Affordable and available at 6% CAGR1 between 2010-20192 global power capacity rental homes for every increase through 20263 100
Slide 11: Investments Driving Tangible Results
Investments Driving Tangible Results Investing in teammates, digital, and analytics support and accelerate growth across the enterprise Teammates Digital & Analytics ▪ Successful acquisition, integration, and retention of talent in areas ▪ Continued expansion of national digital affinity bank: Laure
Slide 12: Delivering on Commitments for All Stakeholders
Delivering on Commitments for All Stakeholders Teammates Clients Together we do work that matters, have We help our clients make better, more opportunities for growth, and our efforts are confident financial decisions recognized and rewarded $11Bn ~17K originated Paycheck Shareholders dedicated Prot
Slide 13: 2021 ESG Highlights
2021 ESG Highlights Committed to helping our clients and communities thrive Published inaugural TCFD Report1 and Extended and expanded National SASB Index2 Community Benefits Plan Enhanced and renamed annual ESG report and Increased diverse representation in senior completed ESG focus assessment lea
Slide 14: Metrics that Matter
Metrics that Matter Key is a growth story with specific, measurable targets Consumer Commercial Laurel Road +20% +25% 250K Growth in relationship Increase in senior bankers Total member households households by 2025 by 2025 by 2025 Positive operating Moderate risk profile: leverage: Cash efficiency
Slide 15: Key is a Compelling Investment
Key is a Compelling Current Valuation1 Investment Price / Earnings 16.0 Unique, distinctive business model and 12.9 strategy positioned for growth 12.0 11.3 8.0 4.0 High quality, diverse revenue streams built for consistent earnings 0.0 Price / Tangible Book Value Positioned to deliver through diffe
Slide 16: Relationship Banker Driven Businesses
Relationship Banker Driven Businesses Angela Mago Randy Paine Head of Commercial Bank Head of Institutional Bank
Slide 17: Differentiated & Integrated Commercial Platforms
Differentiated & Integrated Commercial Platforms We have a differentiated and targeted, full-service platform delivered through a unique, relationship-based approach that enables us to deliver unparalleled solutions to our clients, while maintaining our moderate risk profile A Broad Set of Client So
Slide 18: Platform Growth & Evolution
Platform Growth & Evolution We have been intentionally evolving our platform to drive growth while expanding solutions we deliver to clients and diversifying into higher growth industries Investing in our Platform… …to Broaden Industry Expertise… 10-Year Investment Banking Fee CAGR by Industry (2011
Slide 19: Consistent Growth and Returns
Consistent Growth and Returns We have been delivering consistent, sound, high-value growth through our industry-focused, relationship-driven approach that positions us to drive new client wins while capturing more of the client wallet Consistent Loan Growth over the Long-Term Strong Fee Generation T
Slide 20: Relationship Model Generates Durable Fee Income
Relationship Model Generates Durable Fee Income Our industry focused, relationship driven strategy combined with the breadth and depth of our platform delivers predictable, consistent, high- value fee income streams as we meet the needs of our growing client base Relationship Strategy Consistent Inv
Slide 21: Outpacing Peers with Proven Model & Targeted Scale
Outpacing Peers with Proven Model & Targeted Scale We are growing loans faster than peers and outperform in monetizing that loan growth Loan Growth Investment Banking Fee Generation C&I Loan Growth 2016-20211 Key H8 Investment Banking Fees as a % of Commercial Loans: 2016-2021 Average 27% 1.01% 0.79
Slide 22: Peer Leading Credit Quality
Peer Leading Credit Quality While we continue to outperform peers in balance sheet and earnings growth, we remain rigorously focused on prudently managing risk – as demonstrated by peer leading stress test results and top tier credit performance Stressed Losses – Stress Test Scenario Commercial Crit
Slide 23: Sound Credit Risk Management
Sound Credit Risk Management While we have delivered strong growth in balances, revenue, and productivity – we have also meaningfully de-risked our business by leveraging our ability to distribute risk into the capital markets ➔ In 2021, <20% of capital raised for clients came from our balance sheet
Slide 24: Collaborating to Drive Relationship Strategy
Collaborating to Drive Relationship Strategy The breadth and depth of our platform positions us to deliver for clients and shareholders – as there are clear synergies in capturing the full value of our trusted advisor relationships to drive sustained revenue growth and peer leading returns Collabora
Slide 25: Targeted Scale
Targeted Scale We continue to demonstrate the ability to build scale in businesses and against targeted customer sets to drive growth U.S. Banks by Assets Industry Leading Platforms As of YE2021, $ in billions Real Estate Capital Key Equipment Finance Bank #1 $3,744 Commercial mortgage Equipment fin
Slide 26: Strategically Positioned in Secular Growth Segments
Strategically Positioned in Secular Growth Segments Key is uniquely positioned to continue to outperform peers and drive market share gains through our leading position in growth sectors Renewable Energy Healthcare U.S. Wind, Solar & Storage Capacity Additions1 (GW) 20% of US GDP and growing at 6% C
Slide 27: Investing to Capture Opportunity
Investing to Capture Opportunity We are aggressively investing in adding more bankers to our platform, enabling capabilities for our bankers, and client experience opportunities to extend productivity gains and fuel continued growth Productivity Gains Across the Platform Actively Investing in High-G
Slide 28: Takeaways
Takeaways Poised for Growth We continue to strengthen and diversify our robust, expertise-driven platform that features a broad set of 1 client solutions We have been delivering consistent, durable, high-value growth through our industry-focused, relationship 2 driven approach We are growing loans f
Slide 29: Enterprise Payments and Commercial Primacy
Enterprise Payments and Commercial Primacy Ken Gavrity Head of Enterprise Payments
Slide 30: Robust and Differentiated Platform
Robust and Differentiated Platform A broad platform of traditional and emerging payments capabilities leveraged across the franchise to drive client outcomes Expertise and Service Focused Meaningful Scale and Reach Powerful Set of Capabilities Serving Clients of all Sizes Traditional • Consumer Card
Slide 31: Creating Significant Value for Key
Creating Significant Value for Key Our strategy remains consistent ➔ Primacy drives engagement, attractive returns, and the data assets that power our growth High Engagement High Value Recurring Revenue Low-Cost Deposit Base Highly engaged clients Revenue per Client Operating Deposits as % of Commer
Slide 32: Delivering on our Strategy
Delivering on our Strategy We’ve delivered on the roadmap laid out in 2018 and built a durable, hard to replicate, foundation for growth Market Leading Intelligence Driven NextGen Business Elevated Client Partnership Strategy Strategies Development Team Experience Build-out of the Analytics Complete
Slide 33: Driving Results Across the Platform
Driving Results Across the Platform We have delivered on the opportunity identified in 2018 and meaningfully outperformed industry benchmarks, and we expect to continue double-digit growth in payments fee income through 2025 Generating ~$1.5Bn in NII and Fee Income Growth Outpacing the Industry Grow
Slide 34: Well Positioned for the Future
Well Positioned for the Future Significant runway for growth by continuing to penetrate our existing client base and amplified by industry tailwinds from changing customer behaviors Significant Opportunity Remains Industry Tailwinds Consumer Growth of the Digital Economy 2x 65K+ 50%+ 45% Volume oppo
Slide 35: Embedded Banking Opportunity
Embedded Banking Opportunity Vertical-specialization is driving explosive growth of payments-enabled software companies, causing a shift in consumer behavior creating a massive opportunity for financial services companies Client Example: Dental Office Patient Engagement Shift in Consumer Behavior %
Slide 36: Capturing the Opportunity
Capturing the Opportunity Uniquely positioned to capture the explosive growth in Embedded Banking given our scale in the Technology vertical, credibility across the fintech ecosystem, and ability to integrate products and deliver across our platform Focused Strategy in a Validated Market Our Positio
Slide 37: Takeaways
Takeaways Poised for Growth 1 We have built a robust and differentiated platform, powered by expertise, that drives value for customers We’re creating significant value for Key as we drive customer engagement, create sticky recurring revenue 2 streams, and capture valuable data assets We’ve delivere
Slide 38: Questions
Questions
Slide 39: Driving Consumer Relationship Growth
Driving Consumer Relationship Growth Victor Alexander Head of Consumer Banking
Slide 40: Consumer Bank Overview
Consumer Bank Overview We have the foundation – product set, physical distribution, bankers, digital capabilities, client base, and execution focus – to compete and win Compelling Product Set Convenient Distribution Select Product Examples Smart Checking Cashback Card Home Lending No monthly fees or
Slide 41: Relationship Focus: High Value Revenue Streams
Relationship Focus: High Value Revenue Streams There is nothing more valuable to Key than a relationship client and we are intensely focused on driving relationship depth and strong engagement with our client base to grow high-value revenue streams Relationship Revenue Streams Generating Attractive
Slide 42: Relationship Focus: Tangible Action
Relationship Focus: Tangible Action We have taken specific steps to make our relationship focus real Exited Indirect Auto Restructured Incentive Plans Shifted Marketing Focus Branch Banker Incentive 2019: High-Rate Money Return on Equity Market Acquisition Compensation on Checking Sales 4x 16-19% ✘
Slide 43: Execution Focus Throughout the Business
Execution Focus Throughout the Business We are executing better across our businesses – driving strong client experiences and business performance Checking Sales New Checking Balance1 Wealth Sales New Household Age +19% +47% +48% 25% Of new households in 2021 under age 30 2019 2021 2019 2021 2019 20
Slide 44: Omni-Channel Approach: The Winning Combination
Omni-Channel Approach: The Winning Combination We believe that a combination of physical and digital is the winning strategy and are focused on our omni-channel approach A Winning Combination for Clients… … and for Key Revenue per Household +20% Physical Digital High touch, expertise …combined with
Slide 45: Omni-Channel Approach: Optimizing Distribution
Omni-Channel Approach: Optimizing Distribution We’ve taken action to execute against our omni-channel approach by right-sizing our branch count and generating efficiency while investing in digital; improving customer experience across all channels Growing Branch Efficiency Elevating Digital Enhancin
Slide 46: Driving Growth: Geographic Tailwinds in the West
Driving Growth: Geographic Tailwinds in the West Our significant exposure to the West adds high growth, attractive markets ➔ We continue to outpace market growth and take share in this focus area Strong Growth in the West Key has Taken Deposit Share… … And Loan Share 2021-2026 Cumulative 2017-2021 D
Slide 47: Driving Growth: Deepening Relationships
Driving Growth: Deepening Relationships While we have made initial progress, opportunity remains to achieve fair share in some of our most important core banking products with client sets including the Business Owner, Mass Affluent, and Emerging segments Progress in Deepening Relationships… Targetin
Slide 48: Consumer Outlook: Accelerated Growth
Consumer Outlook: Accelerated Growth We will grow total Retail relationship households 20%+ through 2025, reflecting stronger customer acquisition, retention, and overall Consumer Bank performance Relationship Households at Key Retail Relationship Household Growth1 20%+ Save / Invest Primary And / O
Slide 49: Takeaways
Takeaways Poised for Growth Intensely focused on growing relationships that provide steady, high value revenue streams through checking, 1 payments, and wealth 2 Building momentum in execution and business performance A combination of physical and digital is the winning strategy and we have made sol
Slide 50: Targeted Scale Execution in Healthcare: Laurel Road, National Digital Bank
Targeted Scale Execution in Healthcare: Laurel Road, National Digital Bank Jamie Warder Alyssa Schaefer Head of Digital Head of Laurel Road
Slide 51: Laurel Road: Born-Digital Platform
Laurel Road: Born-Digital Platform Well-positioned for continued growth, built on the foundation of digital student loan business we acquired in 2019 Strong student loan refinance portfolio, with attractive client set… $6Bn in student loan refi originations since acquisition $240K ~780 33 Average Bo
Slide 52: Strong, High Quality Industry Partnerships
Strong, High Quality Industry Partnerships Deepening our strongest industry partnerships as the platform continues to grow Established Student Developed Practice Lending Lending Partnership Referral Program Largest medical affinity organization in the US 2018 2019 2020 2021 National Network of 270,0
Slide 53: Laurel Road Evolution: National Digital Bank
Laurel Road Evolution: National Digital Bank Launch of Laurel Road for Doctors represents a differentiated, affinity approach to targeted scale nationally Building strong, valuable, digitally-led relationships Full suite of digital banking products tailored to target segments Since launching Laurel
Slide 54: Targeted Growth through National Platform
Targeted Growth through National Platform Continuing to gain traction nationally with targeted approach, focused on markets with high healthcare density Focused National Footprint….with a Brand that is Resonating Focus Media Regions Focus Regions with OOH1 Advertising Key Consumer Footprint Laurel R
Slide 55: This is What Success Looks Like
This is What Success Looks Like One of many healthcare members who have taken advantage of all Laurel Road for Doctors has to offer. Took advantage of Member since 2015 bundled checking offer to lower refi rate Dr. Jeffrey Martinez1 Came into Student Loan Dentist through ADA partnership ADA Member A
Slide 56: What our Members are Saying
What our Members are Saying “ “ A lot of banks are just like, ‘Hey ... pay us The fact that Laurel Road has specific your money, and that’s it.’ And to me, it programs for doctors makes me feel should be more than that ... Laurel Road heard and supported in a way that no puts out products and servic
Slide 57: Powerful Growth Vector for Franchise
Powerful Growth Vector for Franchise Leveraging strong foundation and expertise to continue focused consumer healthcare expansion Targeted segment expansion… …to drive sustainable growth U.S. Healthcare Landscape Laurel Road Member Households 5x 250K Expanded Offering Launching: 1H22 4MM Nurses1 Cur
Slide 58: Making KEY Even Better
Making KEY Even Better Laurel Road’s entrepreneurial nature and approach, coupled with connectivity to broader franchise fuels innovation enterprise-wide Leveraging relationships Driving innovation and across brands to bolster Attracting & developing value proposition design re-use progressive talen
Slide 59: Competing to Win: Carving a New Niche
Competing to Win: Carving a New Niche Laurel Road combines traditional and progressive capabilities, to compete in a truly differentiated manner Capabilities branch based traditional bank full-service top consumer lending traditional bank direct offering digital bank FinTech Full-Service Bank with f
Slide 60: Takeaways
Takeaways Poised for Growth 1 Continued strength in core student lending business provides strong foundation for growth 2 Launch of Laurel Road for Doctors represents a differentiated, affinity approach to targeted scale nationally Continued expansion of Laurel Road represents a meaningful ongoing g
Slide 61: Questions
Questions
Slide 62: Entrepreneurial Partnerships
Entrepreneurial Partnerships Clark Khayat Arjun Sirrah Chief Strategy Officer Head of Engineering, Laurel Road
Slide 63: Proven Partnership Model
Proven Partnership Model We have a long history of successful partnership with entrepreneurial firms – through commercial partnerships, investments, and acquisitions Buy Partner and Invest KY3P ® Partner 2014 2022 Note: Visual is illustrative and non-exhaustive 63
Slide 64: Proven Partnership Process
Proven Partnership Process Deep integration with a broad ecosystem generates a significant pipeline of opportunities for rigorous evaluation Sources of Opportunities Evaluation Criteria Venture Capital Funds Targeted Client Segment Historical Co-investors Overlapping Focus Large Addressable Market I
Slide 65: Proven Partnership Process
Proven Partnership Process Deep integration with a broad ecosystem generates a significant pipeline of opportunities for rigorous evaluation >$10Bn Commitments Across Thousands of Clients1 Targeted Client Segment >700 Years Industry Experience Across Senior Bankers >65% of Healthcare Commitments are
Slide 66: Growth Accelerants
Growth Accelerants These efforts can be huge accelerators for growth, generate high returns, and we have demonstrated track record of success Buy Partner Invest >55% 3,000+ 3x Post-acquisition Commercial clients served Investment returns from revenue growth via fintech partnerships fintech investmen
Slide 67: Attracting Entrepreneurial Talent
Attracting Entrepreneurial Talent We have intentionally built our platform to empower entrepreneurial leaders to scale quickly by leveraging our infrastructure and agility Solve a problem by leveraging dynamic and in an organization that values at scale… leading-edge infrastructure… talent and innov
Slide 68: Entrepreneur Ecosystem: Invaluable Strategic Resource
Entrepreneur Ecosystem: Invaluable Strategic Resource In addition to the tangible economic benefits of effectively partnering with entrepreneurial businesses, the ecosystem we have constructed unlocks new perspectives and ways of operating that scale across the company Strategic Examples of Entrepre
Slide 69: Takeaways
Takeaways Poised for Growth We have a long history of successful partnership with entrepreneurial firms – through commercial 1 partnerships, investments, and acquisitions Deep integration with a broad ecosystem generates significant pipeline of opportunities for rigorous 2 evaluation These efforts c
Slide 70: Technology Powering Targeted Scale
Technology Powering Targeted Scale Amy Brady Chief Information Officer
Slide 71: Focused Technology Strategy
Focused Technology Strategy Technology enables Key’s distinctive relationship strategy by delivering outsized results in focused areas at speed Security Enablers Client Engagement Omni Channel Personalized Digital Experiences Cyber Automation Physical Open Banking Data and Analytics Engineering Acce
Slide 72: Supporting Key's Growth Agenda: 2021 Proof Points
Supporting Key’s Growth Agenda: 2021 Proof Points Our agile approach combined with modern technology capabilities come together in client-centric and digital first solutions that generate powerful outcomes against targeted opportunities in real-time PPP Loan Originations and Forgiveness Consumer Col
Slide 73: Strong Foundation: Protecting Key and our Clients
Strong Foundation: Protecting Key and our Clients Continued investment to keep pace with the ever-evolving threat landscape +125%1 increase in security investment with a client focus Building Client Engagement and Trust Advanced client Protect client Proactively fortify authentication data cybersecu
Slide 74: Strong Foundation: Progressive Modernization Journey
Strong Foundation: Progressive Modernization Journey We have continued our long-term focus on progressive modernization to leverage best-in-breed technology, enabling competitive client experiences and rapid innovation 2013 2022 Human Consumer Real Time Payments Finance and Conversational Resources
Slide 75: Technology Investment Strategy
Technology Investment Strategy Through our consistent focus on modernization over the past 10 years, we have created an ability to direct more investment towards the development of new business capabilities 47% +18% Increase in business capabilities spend allocation 65% Business Capabilities Securit
Slide 76: Leveraging Leading-Edge Technologies
Leveraging Leading-Edge Technologies We have a demonstrated ability to deploy targeted, differentiated capabilities in high-impact areas to accelerate and amplify business strategies Automation Intelligent Marketing Open Bank Engineering Agile Methodologies Automate tasks to generate cost Accelerate
Slide 77: Cloud and Software-as-a-Service Acceleration
Cloud and Software-as-a-Service Acceleration We continue to take advantage of the benefits of cloud hosting and Software-as-a-Service Cloud Acceleration Benefits Acceleration of Cloud Utilization 100% of distributed applications migrated to cloud or SaaS by 2025 100% Innovative Digital Client Experi
Slide 78: Investing in Talent to Deliver
Investing in Talent to Deliver Emerging technology, demographic shifts, and other global trends will accelerate change creating enormous opportunities for employee growth and the need to learn new skills to deliver on Key’s strategic priorities ✓ Future Ready Program → Aggressively “CEO of your own
Slide 79: Takeaways
Takeaways Positioned for Growth & Agility Focused execution of our technology strategy remains critical to enabling Key’s distinctive relationship 1 strategy and driving competitive positioning We have been progressively modernizing our platforms to provide agility and new capabilities to drive the
Slide 80: Delivering on Our Commitments
Delivering on Our Commitments Don Kimble Vice Chairman and Chief Financial Officer
Slide 81: Record 2021 Performance
Record 2021 Performance Building off a record year of financial results Delivered Positive Operating Leverage Committed to delivering positive operating leverage again in 2022 Record Revenue and PPNR Delivered record revenue, PPNR, and fee income with strength across businesses Investments Continue
Slide 82: Key Continues to Generate Top Tier Performance
Key Continues to Generate Top Tier Performance Operating Leverage Revenue Growth PPNR Growth ROTCE NCOs / Avg Loans FY2021 FY2021 FY2021 FY2021 FY2021 Peer 1 Peer 1 Peer 1 Peer 1 Peer 2 Peer 2 Peer 1 Peer 2 Peer 2 Peer 2 Peer 3 Peer 3 Peer 3 Peer 3 Peer 3 Peer 4 Peer 4 Peer 4 Peer 4 Peer 4 Peer 5 Pe
Slide 83: Growing the Business and Driving Returns
Growing the Business and Driving Returns Driving positive operating leverage while investing for the future Accelerating Growth Expense Discipline Driving Returns ▪ Acquiring and deepening relationships ▪ Balancing continuous improvements and Ability to Deliver Positive Operating Leverage2 investing
Slide 84: Positioned to Benefit from Rising Interest Rates
Positioned to Benefit from Rising Interest Rates Actively managing interest rate risk; significant upside to higher rates Asset Sensitivity Deposit Repricing Benefit from Redeployment Asset sensitive position enables KEY to Opportunities to benefit from lower deposit Significant upside from redeploy
Slide 85: Strong Risk Culture and Portfolio Discipline
Strong Risk Culture and Portfolio Discipline De-risked portfolio with a strong focus on relationships Consumer Commercial ▪ Exited higher risk indirect businesses that did not ▪ Focused on middle market clients in our 7 industry verticals align with our relationship strategy Construction Portfolio ▪
Slide 86: Peer Leading Stress Test Results
Peer Leading Stress Test Results De-risked portfolio positioned to outperform throughout any economic cycle 2012 Stress Test: Capital Consumption 2020 Stress Test: Capital Consumption 4.5% 5.0% 3.8% 3.9% 3.3% 2.5% 2.5% 2.2% 1.7% 1.8% 1.8% 1.9% 1.6% 1.4% 1.4% 0.8% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 P
Slide 87: Disciplined Capital Management
Disciplined Capital Management Consistently delivering on our capital priorities through dividend growth and share repurchases Capital Priorities Common Equity Tier 1 10.2% 9.9% 9.7% 9.4% 9.5% Annual Dividend Growth ➔ Target Range Supporting Organic 18% 5-year CAGR 9.0 – 9.5% Growth 2017 2018 2019 2
Slide 88: Full Year 2022 Outlook
Full Year 2022 Outlook Full Year 2022 (vs. Full Year 2021) • Loans: up low-double digit excluding the impact of PPP and the indirect auto portfolio sale Average Balance Sheet ➢ up low-single digit on a reported basis • Deposits: up low-single digit Revised from NII guidance provided on 1/20/22 Net I
Slide 89: Committed to Achieving our Long-Term Targets
Committed to Achieving our Long-Term Targets Moderate risk profile: Positive operating leverage Cash efficiency ratio: Net charge-offs to avg. loans ROTCE: 54% - 56% through the cycle targeted range 16% - 19% of 40-60 bps Generating positive operating Drives improved productivity and leverage in eac
Slide 90: Closing Remarks
Closing Remarks Chris Gorman Chairman and Chief Executive Officer
Slide 91: Metrics that Matter
Metrics that Matter Key is a growth story with specific, measurable targets Consumer Commercial Laurel Road +20% +25% 250K Growth in relationship Increase in senior bankers Total member households households by 2025 by 2025 by 2025 Positive operating Moderate risk profile: leverage: Cash efficiency
Slide 92: Takeaways: The New KEY
Takeaways: The New KEY Leading position in targeted, high-growth Unique, digitally-led healthcare focus businesses Balanced, sustainable, relationship-based Strong credit profile revenue streams Accelerating growth with targeted Committed to strong corporate social investments responsibility Positio
Slide 93: Questions
Questions
Slide 94: Appendix
Appendix
Slide 95: Cultivating an Inclusive Culture
Cultivating an Inclusive Culture Building on our legacy, we are committed to driving positive impact for all stakeholders Diversity, Equity, and Inclusion Financial Inclusion ▪ Focused on engaging a diverse and talented team and supplier base; ▪ Extended and expanded National Community Benefits Plan
Slide 96: Responsible Operations
Responsible Operations Accelerating efforts and sharpening focus to address pressing issues facing our clients and communities Climate Stewardship Data Privacy and Security ▪ Published inaugural TCFD Report1 ▪ Enhanced client access and authentication across channels to reduce risk and to improve th