KeyCorp Conference Call Summary Company Overview - **Company**: KeyCorp (NYSE: KEY) - **Assets**: $187 billion - **Location**: Cleveland, Ohio - **Consumer Banking**: Serves over 3 million customers across 15 states Key Points Consumer Banking Performance - **Deposits**: $80 billion from 2 million households and 250,000 small business clients [5][6] - **Wealth Management**: Manages a record $68 billion, with 75% from Eastern markets [5][6] - **Growth in Western Markets**: Higher relationship household growth rate in Western states compared to Eastern states [5][6] - **Credit Profile**: Average FICO score of 790, with residential mortgage portfolio above 800 [7][18] Strategic Focus - **Core Activities**: Focus on growing relationship households, wealth business, and client care [8][18] - **Client Satisfaction**: Internal measures of client satisfaction have increased by double digits [9] - **Relationship Households**: 80% of consumer deposits are from relationship households, up from 70% pre-COVID [11] Wealth Management Growth - **Key Private Client Initiative**: Targets clients with $250,000 to $2 million in investable assets [12][14] - **Mass Affluent Segment**: 50,000 households added $6 billion in assets, averaging $125,000 per family [14] - **Goals**: Aim for $100 billion in assets under management by 2030 [17] Operational Efficiency - **Branch Efficiency**: Average branch size increased by 40%, with 1,000 fewer employees than a few years ago [9] - **Sales Professionals**: Planning to start 2026 with 100 more sales professionals than in January 2025 [16] Market Position and Competition - **Competitive Confidence**: Increased confidence in closing the gap with competitors in consumer banking [19][20] - **Client Experience**: Enhanced client experience through better service and rewards for active checking account holders [20][21] M&A and Capital Management - **M&A Strategy**: Focus on organic growth; depository M&A is a low priority [25][28] - **Share Buybacks**: Committed to $100 million in buybacks for Q4, with potential for more [27][29] Lending Strategy - **Consumer Loans**: Focus on supporting relationship clients with a full suite of lending products [40][41] - **Home Equity Lines of Credit**: Anticipated growth in HELOCs due to high home equity levels [43] NDFI Exposure - **NDFI Portfolio**: $18 billion in NDFI, with a focus on specialty finance lending [49][50] - **Quality of Book**: Strong performance with minimal losses in specialty finance lending [50] Government Shutdown Impact - **Minimal Impact**: Limited effects on consumer and commercial areas from the government shutdown [55] Relationship with Scotiabank - **Ownership**: Scotiabank owns nearly 15% of KeyCorp; exploring business opportunities but not a top priority [57][58] Conclusion KeyCorp is positioned for growth through a focus on consumer banking and wealth management, with a strong emphasis on client relationships and operational efficiency. The company aims to enhance its market position while maintaining a disciplined approach to capital management and lending.