Keycorp · NYSE:KEY
Keycorp — Keycorp /New/ — BancAnalysts Association of Boston 2012 Conference
20 slides from Keycorp's conference presentation, Nov 1, 2012
Slide 1: Key Corporate Bank: Strong, Focused and Building Momentum
Exhibit 99.1 BancAnalysts Association of Boston 2012 Conference Key Corporate Bank Strong, Focused and Building Momentum Christopher M. Gorman President Key Corporate Bank
Slide 2: Forward-Looking Statements and Additional Information Disclosure
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION DISCLOSURE This presentation contains and we may, from time to time, make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key’s financial condition, results of oper
Slide 3: Key -- An Overview
Key -- An Overview Key Facts Diverse, Advantaged Geography th • The 15 largest U.S. bank-based financial services company • Assets of approximately $87 billion • Market capitalization of $8 billion • 15,833 employees • 1,087 branches in three regions • Unique and diverse geography – Building presenc
Slide 4: Key -- 3Q12 Highlights
Key -- 3Q12 Highlights • Net interest income increased 6% to $578MM, as NIM expanded 17bps to 3.23% • Growing the franchise – Completed acquisition of 37 branches in western New York – Re-entered credit card business; acquired Key-branded portfolio • Improving efficiency through company-wide initiat
Slide 5: Balanced, Diverse Retail Network
Balanced, Diverse Retail Network Our footprint provides growth opportunities throughout our franchise -- it also balances our risk over the course of the economic cycle • Community Banking model features local leaders owning their markets to acquire and deepen client relationships across all busines
Slide 6: Investing for Growth
Investing for Growth We have identified specific growth opportunities across our franchise and are focused on executing to improve performance and drive shareholder returns Private Payments Healthcare Corporate Banking Banking • Acquire and deepen • Provide bundled • Expand Key’s presence • Acquire
Slide 7: Key Corporate Bank
Key Corporate Bank LTM 3Q12 Statistics (a) Contribution to KeyCorp Loans Deposits • 37% of Key’s loans and 20% of deposits – $18.4B in loans – $12.0B in deposits, 53% of which are noninterest bearing • 38% of Key’s revenue and 55% of PPNR – $1.6B in revenue (TE) – $870MM in noninterest income Revenu
Slide 8: Diverse and Balanced Revenue Mix
Diverse and Balanced Revenue Mix Real Estate Capital & Corporate Banking Services Institutional & Capital Markets • National franchise focused on REITs, long-term real • Leading middle-market corporate and estate owners and healthcare real estate clients investment bank, focused on serving consumer,
Slide 9: Our Distinctive Business Model
Our Distinctive Business Model Our alignment with Key Community Bank provides a unique market position that is compelling to middle market companies and their owners/employees • Key offers a full breadth of solutions relevant to these clients, including capital markets, industry expertise, payments,
Slide 10: Aligned to Deliver the Whole Bank
Aligned to Deliver the Whole Bank Key Corporate Bank is aligned to seamlessly deliver industry expertise and product solutions to clients across Key’s franchise Corporate Bank Capability 20,000+ Community and Corporate Industry and capital markets specialists + Bank clients utilize commercial Adviso
Slide 11: Successful Business Transition
Successful Business Transition Since the financial crisis, we have successfully re-focused our business units to enhance risk-adjusted returns and better serve our targeted clients Pre-crisis(a) Today Fragmented, inefficient and higher risk Focused, efficient and de-risked • 1,000 + clients in multi
Slide 12: Past the Inflection Point
Past the Inflection Point Loan balances up $2.5B (+15%) since 2Q11 trough, driven by new and expanded client relationships • New ICM clients generate $1.9B in loan growth since 4Q10 with utilization >50% • KEF balances up 11% (+530MM) YoY in 3Q12 Loan Balances ($B) & Investment Banking Income & Debt
Slide 13: Repositioning Our Loan Portfolio
Repositioning Our Loan Portfolio We are growing C&I loan balances in our targeted industry sectors while continuing to reduce our real estate exposure and its risk profile • C&I growth driven by new and expanded client relationships within our targeted client segments Period-end Loan Balances Commer
Slide 14: Strong Noninterest Income Generation
Strong Noninterest Income Generation Key Corporate Bank has a diverse noninterest income platform • Significant recent investment in people and capabilities to enhance our ability to generate investment banking & debt placement fees and commercial payments income • Key Corporate Bank is the most pro
Slide 15: Rationalizing Our Delivery System
Rationalizing Our Delivery System Key Corporate Bank continually seeks to enhance the effectiveness and efficiency of our operations. Our philosophy is to: • Reduce our cost to serve through FTE reduction and variabilization of fixed costs • Invest in client-facing senior professionals with existing
Slide 16: Investing in People to Deliver for Clients
Investing in People to Deliver for Clients We invest in client-facing senior professionals with existing relationships to broaden our industry expertise, expand our product capabilities and leverage our unique platform • 80 + senior professionals hired since January 2010 • This investment furthers o
Slide 17: Measuring Our Impact
Measuring Our Impact We are aggressively pursuing client acquisition -- and measuring the efficiency and effectiveness of our actions • Created a series of programs structured around acquiring and broadening client relationships Performance Metrics 600 2012 YTD 480 • $63MM in revenue from new client
Slide 18: Our Model in Action: Client Example
Our Model in Action: Client Example We collaborate to successfully deliver the breadth of Key’s capabilities to our targeted clients Company Overview Alignment with Key Results • $1B+ specialty REIT with niche market • Within Key’s risk appetite • Key helps client raise more than $1B leadership posi
Slide 19: Appendix
Appendix 19
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Key Corporate Bank $ in millions Pre-Provision net revenue 4Q11 1Q12 2Q12 3Q12 Total LTM Net interest income (TE) $ 175 $ 187 $ 182 $ 182 $ 726 Noninterest income 236 214 210 210 870 Total Revenue 411 401 392 392 1,596 Less: Depreciation and amortization 13 13 13 11 5
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