Core Viewpoint - KeyCorp is undergoing significant changes to its board of directors following criticism from activist investor HoldCo Asset Management regarding the bank's performance and calls for CEO Chris Gorman's dismissal [1][3]. Group 1: Board Changes - KeyCorp appointed Todd Vasos, CEO of Dollar General, as the bank's lead independent director, succeeding Alexander M. "Sandy" Cutler, who has served for 10 years [2]. - Directors Carlton Highsmith and Ruth Ann Gillis will retire at the bank's annual meeting on May 14, 2023 [2]. - KeyCorp has nominated Antonio DeSpirito, a former BlackRock executive, and Christopher Henson, a former Truist executive, to replace Highsmith and Gillis [3][4]. Group 2: Investor Criticism - HoldCo Asset Management, which holds a $140 million stake in KeyCorp, criticized the board's performance, claiming that Cutler has overseen significant underperformance over the past 25 years [3]. - The activist investor asserted that "every single director" at KeyCorp has failed their constituents [3]. Group 3: Strategic Goals - The new nominees are expected to support KeyCorp's strategy aimed at driving disciplined growth, enhanced profitability, and shareholder value [5]. - Gorman emphasized that the new board members bring expertise in capital markets, banking operations, and financial oversight, which aligns with KeyCorp's priorities [4].

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Core Viewpoint - KeyCorp reported strong financial performance with earnings per share (EPS) of $0.43, exceeding estimates, but faced stock decline due to increased provisions for credit losses and broader market trends [2][3][5] Financial Performance - KeyCorp's EPS was $0.43, surpassing the estimated $0.38, marking a 7.9% increase year-over-year [2] - The company's revenue reached approximately $2.01 billion, exceeding the estimated $1.97 billion, driven by higher net interest income and average loan growth [2][5] Market Reaction - Despite positive earnings, KeyCorp's stock declined over 2% in early-market trading due to a significant rise in provisions for credit losses, which increased to $108 million [3][5] - Bearish trends in the broader market also contributed to the stock's decline [3] Valuation Metrics - KeyCorp has a price-to-earnings (P/E) ratio of approximately 12.54, indicating market valuation of its earnings [4] - The price-to-sales ratio stands at about 2.05, reflecting market valuation of its revenue [4] - The debt-to-equity ratio is 0.54, suggesting a moderate level of debt relative to equity, while a current ratio of 38.17 indicates a strong liquidity position [4]

Core Viewpoint - KeyCorp reported strong fourth-quarter earnings, exceeding analyst expectations due to increased net interest income and robust investment banking activity [1][2]. Financial Performance - Net income from continuing operations attributable to common shareholders was $474 million, or $0.43 per diluted share, surpassing analyst estimates of $0.39 [1]. - Revenue for the quarter reached $2.0 billion, exceeding the consensus forecast of $1.96 billion [1]. - For the full year, revenue hit a record $7.5 billion, reflecting a 16% year-over-year increase when adjusted for selected items [2]. Key Metrics - There was a 3% sequential increase in net interest income and a 7 basis point improvement in net interest margin to 2.82% [2]. - Investment banking and debt placement fees rose 33% quarter over quarter to $243 million [2]. - Noninterest income increased 11.4% sequentially to $782 million, while nonperforming assets declined 6% from the prior quarter [2]. Capital Management - KeyCorp maintained strong capital levels, reporting a Common Equity Tier 1 ratio of 11.7% [3]. - The bank repurchased $200 million of common stock during the quarter while maintaining peer-leading capital ratios [3].

KeyCorp （KEY）周二尾盘下跌0.8%。该公司2025年第四季度财报电话会议要点：强劲营收增长与战 略投资。 责任编辑：张俊 SF065 KeyCorp （KEY）周二尾盘下跌0.8%。该公司2025年第四季度财报电话会议要点：强劲营收增长与战 略投资。 责任编辑：张俊 SF065 ...

Core Insights - KeyCorp's fourth-quarter 2025 adjusted earnings per share from continuing operations were 41 cents, exceeding the Zacks Consensus Estimate of 38 cents, reflecting a 7.9% increase from the prior-year quarter [1][9] - Despite better-than-expected results, KeyCorp's shares fell over 2% in early trading due to bearish market trends and a significant rise in provisions [1] Financial Performance - The quarterly results were bolstered by higher net interest income (NII) and non-interest income, alongside an increase in average loans and deposits [2] - Total revenues for the fourth quarter reached $2 billion, a 12.5% year-over-year increase, surpassing the Zacks Consensus Estimate of $1.94 billion [4] - For the full year 2025, total revenues were $7.51 billion, up 16.4% from the previous year, also exceeding the consensus estimate of $7.43 billion [4] Income and Expenses - NII on a taxable-equivalent basis rose 15.3% year over year to $1.22 billion, with the net interest margin expanding 41 basis points to 2.82% [5] - Adjusted non-interest income increased by 8.3% to $782 million, driven by higher investment banking and corporate services income [6] - Non-interest expenses rose nearly 1% to $1.24 billion, with adjusted expenses increasing 2.4% to $1.26 billion [6] Loan and Deposit Growth - Average total loans were $106.32 billion, showing a slight increase from the previous quarter, while average total deposits were $150.71 billion, also up marginally [7] Credit Quality - Provisions for credit losses surged to $108 million from $39 million in the prior-year quarter, impacting investor sentiment despite solid earnings [8][9] - Net loan charge-offs as a percentage of average total loans decreased by 4 basis points year over year to 0.39%, and non-performing assets as a percentage of the portfolio declined by 15 basis points to 0.59% [10] Capital Ratios - KeyCorp's tangible common equity to tangible assets ratio improved to 8.4% as of December 31, 2025, up from 7% in the same period of 2024 [11] - The Tier 1 risk-based capital ratio was 13.4%, down from 13.7%, while the Common Equity Tier 1 ratio decreased to 11.7% from 11.9% [11] Share Repurchases - During the reported quarter, KeyCorp repurchased shares worth $200 million [12] Strategic Outlook - The company is expected to benefit from decent loan balances, balance sheet repositioning efforts, and stabilizing funding costs, although weak asset quality remains a concern [13]

Core Insights - KeyCorp reported strong financial performance in Q4 2025, with earnings of $0.43 per share and revenue exceeding $2 billion, reflecting a 12% year-over-year growth on an adjusted basis [3][7] - The company emphasized improved profitability, credit trends, and a capital return plan, with plans for significant share buybacks in 2026 [4][5] Financial Performance - Non-interest income increased by 8% year-over-year, with investment banking and debt placement fees rising to $243 million, a 10% increase [1] - Tax-equivalent net interest income rose 15% year-over-year, with a net interest margin (NIM) of 2.82%, exceeding the target range [2] - Total revenue for the year increased by 16%, with net interest income growing 23% and fees up 7.5% [8] Capital Management - KeyCorp repurchased $200 million in Q4 and plans to repurchase at least $1.2 billion in 2026, managing CET1 toward the high end of its 9.5%–10% target [5][13] - The CET1 ratio was reported at 11.7% on a reported basis, with plans for continued capital generation to support buybacks [14] Credit Quality - Provision for credit losses was $108 million in Q4, with a net charge-off ratio of 39 basis points, indicating improving asset quality [6][9] - Non-performing assets decreased by 6% sequentially, and criticized loans fell by $500 million [9] Strategic Focus - The company is focusing on middle market and payments, investment banking, and wealth management, with increased investments in technology and AI [14] - KeyCorp is not pursuing bank acquisitions but is interested in complementary fee-based acquisitions [16] Board Changes - KeyCorp announced significant board changes, including new nominations and retirements, indicating a shift in governance [17]

Shares of KeyCorp ( KEY ) have been a strong performer over the past year, gaining 19%. Its 2024 decision to raise capital has paid off, enabling KEY to accelerate its balance sheet transformation and improve margins. AtOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclos ...

Core Viewpoint - KeyCorp (KEY) has shown strong performance over the past year, with a 19% increase in its stock price, attributed to its decision to raise capital in 2024, which has facilitated balance sheet transformation and margin improvement [1] Company Performance - KeyCorp's stock has gained 19% over the past year, indicating robust market performance [1] - The decision to raise capital in 2024 has been beneficial, allowing the company to enhance its balance sheet and improve profit margins [1]

Financial Data and Key Metrics Changes - The company reported fourth quarter earnings of $0.43 per share, with revenue exceeding $2 billion, growing 12% year-over-year on an adjusted basis, while expenses grew by 2% [3][4] - Full-year record revenue increased by 16% compared to the prior year, with net interest income and fee revenue both exceeding projections [6][16] - The fourth quarter net interest margin (NIM) was 2.82%, an increase of 7 basis points sequentially, and above the previously indicated target of 2.75%-2.8% [21][25] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in commercial and industrial (C&I) loans, which grew by 9%, while consumer loans were intentionally reduced [6][18] - Fee income growth was 7.5%, with all priority fee-based businesses growing at a high single or low double-digit rate [6][10] - Investment banking fees increased by 10% year-over-year, driven by debt capital markets and commercial mortgage debt placement activity [22] Market Data and Key Metrics Changes - The company raised nearly $140 billion of capital on behalf of clients in 2025, retaining 20% on its balance sheet [9] - Assets under management in wealth management reached a record $70 billion, with significant growth in the mass affluent segment [9][10] - Commercial payments fee-equivalent revenue grew by 11% in 2025, reflecting successful investments in bankers and new geographies [10] Company Strategy and Development Direction - The company aims to achieve a 15%-plus return on tangible common equity by year-end 2027, focusing on organic growth in middle market, payments, investment banking, and wealth management [8][32] - Investments in technology, particularly in AI, are a priority, with spending increasing from $900 million to $1 billion [34] - The company plans to repurchase at least $300 million of stock in the first quarter and anticipates similar amounts in subsequent quarters throughout 2026 [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of outsized revenue and earnings growth, supported by favorable macro conditions and strong business momentum [11][28] - The company expects to continue growing priority fee-based businesses at a mid to high single-digit pace, capitalizing on strong pipelines [8][10] - Management noted that the current environment plays well to the company's strengths, with expectations for improved middle market M&A activity in 2026 [9][11] Other Important Information - The company announced changes to its board, nominating two new directors with extensive experience in financial services [12][13] - The lead independent director role transitioned to Todd Vassos, with other board members retiring [14] Q&A Session Summary Question: Strategic priorities for 2026 - Management emphasized organic growth in middle market, payments, investment banking, and wealth management, alongside a focus on return on capital and technology investments [30][32] Question: Investment banking fee guidance - Management acknowledged the competitive hiring environment and expressed caution regarding visibility for investment banking fees, despite recent positive trends [36][38] Question: Expectations for growth and banker productivity - Management highlighted the importance of recent hires and backlogs, expressing optimism for growth as new bankers ramp up productivity [41][43] Question: Deposit beta assumptions and margin expectations - Management indicated a stable deposit base with expectations for low-to-mid 50s beta throughout the year, with a focus on remixing brokered deposits into client deposits [55][56] Question: Capital priorities and acquisition appetite - Management reiterated a focus on supporting clients, investing in technology, and pursuing complementary acquisitions, while maintaining a cautious stance on bank acquisitions [66][68]