Fifth Third(US:FITB) American Banker·2026-01-20 21:18Core Viewpoint - KeyCorp is undergoing significant changes to its board of directors in response to demands from activist investor HoldCo Asset Management, which has criticized the bank's stock performance and governance practices [1][4]. Board Changes - KeyCorp has appointed Todd Vasos, CEO of Dollar General, as the new lead independent director, replacing Alexander Cutler, who has held the position since at least 2010 [2][5]. - Two new directors, Antonio "Tony" DeSpirito and Christopher Henson, have been nominated for one-year terms, both bringing extensive banking experience [3][9]. - The board will maintain a total of 14 directors following the upcoming election, despite the recent retirement of David Wilson due to health reasons [7]. Activist Investor Influence - HoldCo Asset Management issued a report criticizing KeyCorp's board for share dilution and called for the termination of CEO Chris Gorman, among other governance changes [4][6]. - The activist group owns approximately $142 million of Key shares, representing about 0.7% of the bank's stock [6]. Financial Performance - KeyCorp reported a net income of $510 million for the fourth quarter, a significant improvement from a net loss of $244 million in the same quarter the previous year [11]. - Revenue for the fourth quarter reached $2.0 billion, reflecting increases in both net interest income and noninterest income, with noninterest expenses totaling $1.2 billion, up 1% year over year [12]. - Average loans during the fourth quarter were $106.3 billion, with a decrease in total consumer loans but an increase in commercial loans from $72.1 billion to $76 billion [13]. Future Outlook - KeyCorp plans to repurchase at least $300 million of its stock in the first quarter and expects similar buybacks in future quarters [6][9]. - The bank anticipates overall loan growth of 1-2% for 2026, with commercial loans projected to grow by about 5% [14].