NEW YORK, Sept. 16, 2024 /PRNewswire/ -- KeyBanc Capital Markets Inc. ("KBCM"), the corporate and investment banking arm of KeyCorp (NYSE:KEY), announced today that Julie Andress, Managing Director, has been appointed to serve as the 2025 Board Chair for the Security Traders Association (STA). Founded in 1934, STA is a grassroots organization that educates its members on market structure issues while representing their interests with legislators, regulators and other industry associations. The organization ...

CLEVELAND, Sept. 11, 2024 /PRNewswire/ -- KeyCorp (NYSE: KEY) announced a strategic relationship, which includes a minority investment, with Zentist, a leading cloud-based Insurance Revenue Cycle Management (RCM) software provider for Dental Support Organizations (DSOs) across the country. KeyBank will introduce Zentist's Remit AI software to its extensive network of DSOs, providing them with access to a transformative tool that enhances their dental insurance revenue cycle management operations. Remit AI s ...

KeyCorp (KEY) shares gained 3.1% on Sept. 9 in response to its balance sheet repositioning announcement. The regional lender sold its low-yielding available-for-sale (AFS) investment securities portfolio worth almost $7 billion. KeyCorp is expected to incur an after-tax loss of $700 million in the third quarter because of the sale. The securities sold had a weighted average book yield of roughly 2.3% and an average duration of nearly six years. Last month, KeyCorp stated its plan to reposition its balance s ...

Historically, September has been a sluggish month for the stock market, a trend that continued this year, with the S&P 500 Index declining 4.4% in the first week. With the Federal Reserve's first interest rate cut since March 2020 in focus, investors are on the edge. This was further compounded by a significant cooling down of the job market, sparking recession fears. Hence, the market participants are now expecting a sizable rate cut at the two-day FOMC meeting on Sept.17-18. As the broader market witnesse ...

KeyCorp (KEY) , one of the leading regional banks in the United States, has seen its stock soar 18.5% in a month. This jump is higher than the 11.7% and 6.4% growth of the industry it belongs to and the S&P 500, respectively. One-Month Price Performance Image Source: Zacks Investment Research Let's figure out the reasons behind KeyCorp's shares solid performance. Minority Equity Stake by Scotiabank in KeyCorp If you observe the above price chart, we will see that KeyCorp shares started rising after the surp ...

The Bank of Nova Scotia (also known as Scotiabank) (BNS) has completed the first tranche of strategic minority investment in KeyCorp (KEY) . With an investment of 0.8 billion, BNS now holds approximately 4.9% stake in KeyCorp. This is part of the agreement announced on Aug. 12. Under it, Scotiabank will acquire roughly a 14.9% stake (in two tranches) in KeyCorp for a fixed price of $17.17 per share. The second part of the deal involves BNS making an additional $2 billion of investment, expected to close in ...

CLEVELAND, Aug. 30, 2024 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced that The Bank of Nova Scotia ("Scotiabank") has completed the initial purchase of KeyCorp's common stock with an investment of approximately $0.8 billion as expected. With this investment, Scotiabank now owns approximately 4.9% of KeyCorp's common stock. This initial purchase is part of the agreement announced on August 12, 2024, under which Scotiabank (TSX: BNS) (NYSE: BNS) will make a strategic minority investment in KeyCorp of a ...

Core Viewpoint - KeyCorp (KEY) is well-positioned for growth due to strategic acquisitions, restructuring initiatives, solid loan and deposit balances, and higher interest rates, although funding costs and elevated expenses pose challenges [1] Group 1: Growth Catalysts - KeyCorp has experienced solid loan growth contributing to top-line expansion, with a compound annual growth rate (CAGR) of 0.3% in tax-equivalent revenues over the last six years ending in 2023 [2] - Loans and deposits recorded a CAGR of 4.3% and 6.8% respectively over the four years ending in 2023, with deposits showing year-over-year growth in the first half of 2024 [3] - Management anticipates gradual stabilization and potential growth in loans in the second half of 2024, supported by decent loan demand and initiatives to boost fee income [3] - Total revenues are projected to dip marginally in 2024 but are expected to rebound with growth rates of 11.2% and 6% in 2025 and 2026 respectively [3] Group 2: Interest Margin and Funding - The Federal Reserve is likely to maintain high interest rates, which may enhance KeyCorp's net interest margin (NIM) despite rising funding costs [4] - NIM is expected to improve in the near term, with estimates of 2.18%, 2.52%, and 2.60% for 2024, 2025, and 2026 respectively [4] - The acquisition of a 14.9% stake by the Bank of Nova Scotia is anticipated to enhance capital availability, aiding loan portfolio restructuring and NIM expansion [4] Group 3: Business Restructuring and Expansion - KeyCorp's restructuring initiatives include acquisitions such as GradFin in 2022 and XUP Payments in 2021, aimed at enhancing digital capabilities and revenue diversification [5][6] - The company is consolidating its branch network to meet the rising demand for digital banking services, with a projected CAGR of 3.8% for total non-interest income by 2026 [7] Group 4: Challenges - KeyCorp faces challenges from an escalating expense base, which has seen a CAGR of 3.6% over the past five years, primarily due to higher personnel costs [8] - Although total non-interest expenses are expected to decline by 5.4% in 2024, they are projected to rise by 4.8% and 2.6% in 2025 and 2026 respectively [8] - Weak asset quality is a concern, with provisions expected to decline in 2024 while net charge-offs (NCOs) are projected to rise by 48.6% year-over-year [9]

ab 13 August 2024 Global Research and Evidence Lab KeyCorp BNS stake supports KEY shares, but greater visibility needed to determine upside Capital injection solves for near term capital, earnings headwinds KEY shares handily outperformed today (+9.1% vs. -0.5% for the BKX) after announcing a $2.8bn strategic investment in the bank by Scotiabank (14.9% pro forma ownership) at a premium to recent its valuation, though retreated from early trading levels that neared the $17.17 price implied by the deal. We th ...

Shares of KeyCorp (KEY) touched a 52-week high of $17.09 yesterday before closing the session at $15.94 (marking a jump of 9.1%). The surge was driven by the news of an investment of $2.8 billion by The Bank of Nova Scotia (BNS) in KeyCorp. Canada's BNS will acquire approximately a 14.9% stake in KeyCorp for a fixed price of $17.17 per share, representing a premium of 7.7% at the previous day's closing price. For BNS, the step marks a massive advancement as it tries to expand operations in North America. De ...