Core Insights - Key Wealth and Envestnet have expanded their multi-year partnership to enhance wealth management services for Key Wealth advisors [1][2] - The collaboration aims to provide a next-generation wealth management platform with advanced tools for personalized financial planning and investment management [2] Company Overview - Key Wealth is the wealth management division of KeyCorp, which has approximately $61 billion in assets as of December 31, 2024 [3] - Key Wealth offers a range of services including financial planning, investment management, and fiduciary services, catering to high-net-worth (HNW), ultra-high-net-worth (UHNW), and institutional clients [3] Technology and Solutions - The partnership will grant Key Wealth advisors access to Envestnet's wealth management technology and data-driven solutions, enhancing client engagement and financial planning [2][5] - Envestnet's platform includes features such as digital client experience, integrated financial planning, and advanced portfolio management tools [6]

Company Overview - KeyCorp is celebrating its bicentennial in 2025, marking 200 years of service to clients and communities from Maine to Alaska [3] - The company is headquartered in Cleveland, Ohio, and is one of the largest bank-based financial services companies in the United States, with assets of approximately $187 billion as of December 31, 2024 [3] Services Offered - KeyCorp provides a range of services including deposit, lending, cash management, and investment services to individuals and businesses across 15 states under the KeyBank National Association brand, supported by a network of around 1,000 branches and approximately 1,200 ATMs [4] - The company also offers sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name [4] Upcoming Events - KeyCorp's Chief Financial Officer, Clark Khayat, will speak at the 2025 RBC Capital Markets Global Financial Institutions Conference on March 4, 2025, at 11:20 a.m. ET in New York City [1] - The conference will include a review of KeyCorp's performance, strategy, and outlook, with potential forward-looking statements and material information discussed [2]

Financial Performance and Capital Ratios - KeyCorp's consolidated total assets were approximately $187.2 billion as of December 31, 2024[19]. - KeyCorp's Common Equity Tier 1 ratio as of December 31, 2024, was 11.92%, exceeding the regulatory minimum of 4.50%[74]. - KeyCorp's Tier 1 Capital ratio was 13.69%, significantly above the required 6.00%[74]. - Total Capital ratio for KeyCorp stood at 16.15%, well above the minimum requirement of 8.00%[74]. - KeyCorp's leverage ratio was reported at 10.03%, exceeding the minimum requirement of 4.00%[74]. - KeyBank was classified as "well capitalized" under the revised prompt corrective action framework as of December 31, 2024[81]. - The stress capital buffer for KeyCorp is 3.10%, contributing to a total capital requirement of 11.10%[74]. - KeyCorp's capital ratios reflect a five-year transition of CECL impacts on regulatory ratios[76]. - KeyCorp is required to maintain a Modified Liquidity Coverage Ratio (LCR) of 100% on a monthly basis, as it is classified under the Liquidity Coverage Rules[87]. - KeyCorp is subject to a minimum long-term debt requirement of 6% of total risk-weighted assets, 3.5% of average total consolidated assets, or 2.5% of total leverage exposure[139]. Employee Compensation and Benefits - As of December 31, 2024, 93% of employees earned $20 or more per hour, reflecting a commitment to competitive compensation[34]. - KeyCorp's average voluntary turnover rate decreased to 13.2% in 2024, down from 14.6% in 2023[42]. - KeyCorp's employee benefits include a 401(k) plan with dollar-for-dollar matching contributions up to 7% of eligible pay[35]. - The company has a pay-for-performance culture that aligns compensation with both short-term and long-term financial performance objectives[37]. Business Segments and Services - The Commercial Bank segment focuses on middle market clients and includes significant expertise in sectors such as Healthcare and Technology[28]. - KeyCorp's investment management services cater to large corporate and public retirement plans, foundations, and high-net-worth individuals[21]. - KeyCorp's digital brand, Laurel Road, enhances its reach in providing financial services to individuals and small businesses[26]. Regulatory Environment and Compliance - KeyCorp is authorized to engage in a broader scope of activities as a Financial Holding Company, including securities underwriting and merchant banking[60]. - The regulatory capital framework is based on the Basel III standards, which were revised to enhance financial stability post-2007-2009 financial crisis[70]. - The Capital Proposal will require Large Banking Organizations, including KeyCorp, to calculate risk-based capital ratios under both the expanded risk-based approach and the current standardized approach, using the lower of the two[82]. - The Community Reinvestment Act final rule will impose new data collection and reporting requirements, effective January 1, 2026, for large banks including KeyBank[136]. - KeyBank must comply with the OCC's revised recovery planning guidelines by January 1, 2026, with testing compliance delayed until January 1, 2027[124]. - The evolving regulatory environment may lead to increased compliance costs and impact the company's ability to realize benefits from regulatory tailoring[181]. Risk Factors - The company faces various risks including credit, market, liquidity, operational, and compliance risks that could adversely affect its financial condition[144]. - KeyCorp's credit risk is concentrated in commercial and industrial loans, with potential adverse effects from deteriorating market conditions[146]. - Rising interest rates and economic downturns could negatively affect net interest income and the ability to maintain capital ratios[170]. - The soundness of other financial institutions is critical, as defaults or negative perceptions can lead to market-wide liquidity problems affecting Key's operations[174]. - The company is subject to liquidity risk, which could negatively affect funding levels and may require alternative funding methods, potentially increasing the overall cost of funds[175]. - Geopolitical destabilization, such as the Russia-Ukraine war and the Israel-Hamas war, poses risks to loan portfolios by increasing potential defaults and loan losses[160]. Operational and Cybersecurity Risks - Operational risks include human error, fraud, and technology failures, which could lead to increased operational costs and reputational harm[191]. - Cybersecurity risks are heightened due to reliance on third-party service providers, and breaches could result in financial and operational harm[194]. - The company has incurred substantial expenses to enhance the reliability and security of its systems, but cannot guarantee these measures will prevent cyber incidents[198]. - Third-party vendors perform significant operational services, and their failures could negatively impact the company's performance and service delivery[199]. Special Assessments and Financial Obligations - KeyBank incurred an initial pre-tax expense of approximately $190 million due to the special assessment recognized in Q4 2023[113]. - In Q1 2024, KeyBank recorded an incremental pre-tax expense of $29 million due to an increase in the FDIC's loss estimates related to the protection of uninsured depositors[114]. - KeyBank recorded an additional pre-tax expense of $5 million in Q2 2024, and reversals of $6 million and $3 million in Q3 and Q4 2024, respectively, to adjust initial estimates[114]. - KeyCorp's dividends are limited by federal law to the lesser of amounts calculated under an earnings retention test and an undivided profits test[107]. Market Conditions and Economic Impact - The commercial real estate market is experiencing deterioration, particularly in multifamily, office, hospitality, and single-family detached properties, with property values continuing to decline in many markets[151]. - Approximately 5% of Key's multifamily portfolio is located in major urban markets like New York City, Chicago, Los Angeles, and San Francisco, with no exposure to rent-controlled properties in New York City[151]. - Economic conditions in regions where Key operates are uneven, and adverse conditions could impact borrowers' ability to repay loans and decrease collateral values[171]. - Market volatility and uncertainty related to inflation may lead to increased costs for businesses and consumers, further impacting creditworthiness of borrowers[166].

Group 1 - Key Private Bank has been awarded the best "Private Banking Client Service" at the PAM Awards for the fifth time, recognizing its exceptional client service in the wealth management sector [1][3][4] - The PAM Awards have been recognizing high-performing firms and wealth advisors in the private wealth industry for over two decades, with winners selected by an independent panel based on qualitative and quantitative performance indicators [2] - Key Private Bank's award highlights its commitment to providing customized wealth management and financial planning solutions to high-net-worth and ultra-high-net-worth clients [4][5] Group 2 - Key Private Bank manages $55 billion in assets under management (AUM) and $60 billion in assets under administration (AUA) as of December 31, 2024 [5] - KeyCorp, the parent company of Key Private Bank, has approximately $187 billion in total assets as of December 31, 2024, making it one of the largest bank-based financial services companies in the United States [6] - KeyBank operates approximately 1,000 branches and 1,200 ATMs across 15 states, providing a range of financial services including deposit, lending, and investment services [7]

Core Insights - KeyCorp's Chairman and CEO, Chris Gorman, will present at the Bank of America Securities 2025 Financial Services Conference on February 11, 2025, at 8:00 a.m. ET in Miami [1] - The conference will include a review of KeyCorp's performance, strategy, and outlook, potentially featuring forward-looking statements and other material information [2] - KeyCorp is celebrating its bicentennial in 2025, marking 200 years of service, and has approximately $187 billion in assets as of December 31, 2024 [3] Company Overview - KeyCorp operates under the name KeyBank National Association, providing deposit, lending, cash management, and investment services across 15 states with around 1,000 branches and 1,200 ATMs [4] - The company also offers a range of corporate and investment banking products, including merger and acquisition advice, public and private debt and equity, syndications, and derivatives, primarily targeting middle market companies in selected industries [4]

Core Points - KeyBank has launched a year-long bicentennial celebration to mark its 200 years of service to clients and communities in 2025 [1][5] - The bank was founded in 1825 in Albany, New York, and has evolved into one of the nation's largest bank-based financial services companies [2][5] - A digital KeyBank Heritage Center has been unveiled, providing an interactive look at the bank's history and significant milestones [2] - A state-of-the-art Heritage Center will open in April 2025 at KeyBank's headquarters in Cleveland, featuring interactive exhibits and artifacts [3] - KeyBank operates with approximately 17,000 teammates and serves millions of clients across 15 states, with a network of around 1,000 branches and 1,200 ATMs [4][6] Company Overview - KeyCorp, the parent company of KeyBank, has assets of approximately $187 billion as of December 31, 2024 [5] - KeyBank offers a range of services including deposit, lending, cash management, and investment services, as well as corporate and investment banking products under the KeyBanc Capital Markets name [6]

Group 1 - KeyCorp reported solid earnings for the last quarter of the 2024 fiscal year, showing a decent EPS beat but missing on revenue [1] - The bank, along with other lenders, benefited from favorable market conditions [1] Group 2 - The article does not provide any specific investment recommendations or advice [2][3]

Deposit Growth and Embedded Banking Opportunities - Overall average deposits reached $149.7 billion in Q4, up from $145.1 billion YoY and 1.3% higher than Q3 levels, driven by growth in both consumer and commercial deposits [1] - Growth opportunities lie within embedded banking offerings, with commercial payments-related revenues growing in the mid-single digit percentage points [1][3] - The company plans to continue investing in embedded banking capabilities, including software advisors, relationship bankers, digital and analytics tools [4] Credit Quality and Consumer Segment Performance - Credit card charge-offs were 4.5% in Q4 [2] - Non-performing assets are peaking, with non-performing loans expected to decline by midyear assuming a constructive macro environment [2] - The company grew its number of relationship households by over 3% for the second consecutive year, with 5-8% growth in Western markets and continued growth in Eastern markets [2] Loan Outlook and Lending Environment - Average loans are expected to decline 2-5% by the end of 2025, with balances flat compared to 2024 [4] - 80% of middle-market clients surveyed are confident in their growth prospects and plan to invest in property, plants, and equipment [5] Regulatory Environment and Investment Roadmap - The regulatory environment around M&A has been challenging, but there is potential for improvement and significant opportunities in the future [6] - The company has been migrating to the cloud, replacing 2 core systems annually, and will continue to invest in the business, hire talent, and pursue bolt-on acquisitions [6] Consumer Lending Strategy - Consumer lending is an important element of the balance sheet, with plans to further expand into personal lending over time [7]

KeyCorp (NYSE:KEY) Q4 2024 Earnings Call Transcript January 21, 2025 8:00 AM ET Company Participants Brian Mauney - Director of IR Chris Gorman - Chairman and CEO Clark Khayat - CFO Conference Call Participants John Pancari - Evercore ISI Ebrahim Poonawala - Bank of America Merrill Lynch Bill Carcache - Wolfe Research Manan Gosalia - Morgan Stanley Matthew O'Connor - Deutsche Bank Mike Mayo - Wells Fargo Erika Najarian - UBS Brian Foran - Truist Thomas Leddy - RBC Operator Good morning, and welcome to KeyCo ...

KeyCorp’s (KEY) fourth-quarter 2024 adjusted earnings from continuing operations of 38 cents per share beat the Zacks Consensus Estimate of 33 cents. Further, the bottom line reflected a 52% jump from the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The stock lost 4.4% in pre-market trading on deteriorating credit quality and spread income weakness concerns.Results benefited from a rise in adjusted non-interest income, higher net interest income (NII), and lowe ...