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KeyCorp Presentation to the CFA Society of Cleveland

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					   KeyCorp Presentation to the
    CFA Society of Cleveland
                        April 29, 2010




Beth E. Mooney
Vice Chair – KeyCorp
Key Community Banking
                                                                                                                                2
PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995 FORWARD-LOOKING STATEMENT DISCLOSURE

 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act
 of 1995, including statements about Key’s financial condition, results of operations, earnings outlook, asset quality trends
 and profitability. Forward-looking statements are not historical facts but instead represent only management’s current
 expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside
 of Key’s control. Key’s actual results and financial condition may differ, possibly materially, from the anticipated results
 and financial condition indicated in these forward-looking statements. Factors that could cause Key’s actual results to
 differ materially from those described in the forward-looking statements can be found in Key’s Quarterly Reports on Form
 10-Q for the quarters ended March 31, 2009, June 30, 2009, and September 30, 2009, and in its Annual Report on Form
 10-K for the year ended December 31, 2008, each of which has been filed with the Securities and Exchange
 Commission and is available on Key’s website (www.key.com) and on the Securities and Exchange Commission’s
 website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied
 upon as representing management's views as of any subsequent date. Key does not undertake any obligation to update
 the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the
 forward-looking statements.
                                                     3

Key Facts



 – 14th largest U.S. bank-based financial services
   company by asset size

 –   NYSE Symbol: KEY

 –   Assets: $95 billion

 –   Market Cap: $8 billion

 –   Headquarters: Cleveland, Ohio

 –   Employees: 15,700

 –   Banking Offices: 14 States

 –   Web Site: www.key.com
                                                                                                                4

Strong Franchise – Geographically Diverse

    AK
            WA
                                                                                                      VT
                                                                                                           ME
            OR            ID
                                                                                 MI                NY

                                                                              IN OH
                               UT       CO
                                                                                 KY                        CT




                                Rocky Mountain
                                                           Great Lakes                 Northeast
                                 and Northwest
            Branches                 367                        343                       304
              ATMs                   530                        541                       430
             Loans (a)               $10.7                      $6.8                      $5.8
           Deposits (a)              $16.2                     $16.7                      $15.5
          Competitors           Bank of America              Fifth Third             Citizens Bank
                               J.P. Morgan Chase                 PNC                   M&T Bank
                                    U.S. Bank               Huntington               TD Banknorth
                                  Wells Fargo           J.P. Morgan Chase         J.P. Morgan Chase

         (a) Community Banking average total loans and deposits for the first quarter of 2010
                                                    5

Strategic Update


  First quarter 2010 loss narrows

  Continued improvement in credit quality

  Capital and liquidity positions remain strong

  Management transition completed

  Continued investment in relationship businesses
                                                                                                                                                                   6

Financial Summary ― First Quarter 2010

                                                                                                                                  1Q10                   1Q09
   Loss from continuing operations attributable to Key common shareholders                                                        $ (.11)                $(1.03)

   Performance – from continuing operations
     Net interest margin (TE)                                                                                                      3.19%                  2.79%
     Return on average total assets                                                                                                (.26)                 (1.87)

   Capital
     Tier 1 common equity (a)                                                                                                      7.53%                 5.62%
     Tier 1 risk-based capital (a)                                                                                                12.96                 11.22
     Total risk-based capital (a)                                                                                                 17.11                 15.18

   Asset quality – from continuing operations
     Allowance for credit losses to period-end loans                                                                               4.55%                 2.96%
     Net loan charge-offs to average loans                                                                                         3.67                  2.60
     Allowance for loan losses to nonperforming loans                                                                               117                   116

   Liquidity
      Loan to deposit ratio (b)                                                                                                      93%                 115%


TE = Taxable Equivalent, EOP = End of Period
(a) Ratios are estimated.
(b) From consolidated operations, calculated as loans and loans held for sale (excluding securitized loans) to deposits (excluding deposits in foreign office)
                                                                7

2010 Strategic Priorities


  Return to sustainable profitability

  Sustain strong reserves, capital and liquidity

  Continue building a robust risk management culture

  Expand and acquire client relationships

  Attract and retain a capable, diverse and engaged workforce
                                                                                                                                                  8

Key’s Targets for Success


    KEY Business                                                  KEY
                                 KEY Metrics (a)                                  Targets                       Action Plans
       Model                                                      1Q10

                                                                                                 Improve risk profile of loan portfolio
      Core funded            Loan to deposit ratio (b) (c)         93%            90-100%
                                                                                                 Improve mix and grow deposit base

                                                                                                 Focus on relationship clients
     Returning to a                                                                              Exit noncore portfolios
     moderate risk            NCOs to average loans               3.67%           40-50 bps
        profile                                                                                  Limit concentrations
                                                                                                 Focus on risk-adjusted returns
                                                                                               • Improve funding mix
     Growing high               Net Interest Margin               3.19%            >3.50%
                                                                                               • Focus on risk-adjusted returns
    quality, diverse
   revenue streams             Noninterest income/
                                                                  41.6%             >40%
                                                                                               • Leverage Key’s total client solutions and
                               total revenue                                                     cross-selling capabilities
       Creating                                                                                  Improve efficiency and effectiveness
        positive                                               $191 million       $300-$375
                             Keyvolution cost savings                                            Leverage technology
       operating                                              implemented           million
       leverage                                                                                  Change cost base to more variable from fixed

                                                                                                 Execute our client insight-driven relationship
                                                                                                 model
     Executing our
                            Return on average assets             (.26)%          1.00-1.25%      Improved funding mix with lower cost core
       strategies
                                                                                                 deposits
                                                                                                 Keyvolution savings




  (a) Continuing operations, unless otherwise noted
  (b) Consolidated operations
  (c) Loans & loans HFS (excluding securitized loans) to deposits (excluding foreign branch)
                                                                                                         9

Diversified Business Mix

First Quarter 2010 Revenue (TE)

     Regional Banking                                              Real Estate Capital and
        Retail Banking                                           Corporate Banking Services
       Business Banking                                13%
        Private Banking       46%
      Wealth Management                                         6%       Equipment Finance


                                                         16%
                                    10%        9%

                                                                     Institutional and Capital Markets
                                                                         Victory Capital Management
               Commercial Banking                                         KeyBanc Capital Markets
                                          Other Segments
                                          Corporate Treasury
       Community Banking                  Principal Investing
       National Banking                     Exit Portfolios
       Other Segments


TE = Taxable Equivalent
                                                                                                                                                             10

Community Banking – Financial Summary

                          Total Revenue (TE)                                                            Average Deposits (a)
          $ in millions                                                            $ in billions
 $700                                                                            $60
            $612          $632         $632      $629                                       $50.9         $52.1       $52.5           $52.1        $51.0
                                                               $599
 $600                      103         104                                       $50
              103                                 117                                        8.5           9.0            8.9             8.2       7.4
                                                                109
 $500
                                                                                 $40
                                                                                                          14.9        14.7            13.7         12.6
 $400                                                                                       14.7
                                                                                 $30                                                                1.8
 $300                                                                                        1.7           1.8        1.8                 1.8
              509          529         528        512           490              $20                                                  17.9         18.6
 $200                                                                                       17.4          17.3        17.4

 $100                                                                            $10
                                                                                             8.6           9.1            9.7             10.5     10.6
  $0                                                                              $0
             1Q09         2Q09         3Q09      4Q09          1Q10                         1Q09          2Q09       3Q09             4Q09         1Q10
                                                                                                   CDs > $100K                  Savings               DDA
                    Regional Banking           Commercial Banking
                                                                                                   CDs < $100K                  NOW/MMDA

                                                                                          (a) Excludes foreign office deposits.

                           Noninterest Expense
        $ in millions                                                                                  Average Loans and Leases
 $600                                                                    9,500         $ in billions
                           $496        $491       $492                           $40
 $500        $468                                               $468     9,250
                           57           61         63
              57                                                 46                         $31.3          $30.3          $29.1
 $400                                                                    9,000   $30                                                       $28.3     $27.8
                                                                                             11.3          10.6            9.8
 $300                                             429           422      8,750                                                              9.2       9.0
                                        430
                                                                                 $20
 $200        411           439                                           8,500
                                                                                                            19.7           19.3             19.1      18.8
                                                                                              20.0
                                                                                 $10
 $100                                                                    8,250

   $0                                                                    8,000    $0
             1Q09          2Q09        3Q09      4Q09           1Q10                        1Q09           2Q09           3Q09             4Q09      1Q10
              Regional Banking           FTE            Commercial Banking                             Regional Banking               Commercial Banking
                                                          11

Community Banking Model


Growing and Investing…

    Leveraging Client Insight

    Integrated Delivery Channels

    Enhanced Sales/Service Culture

    Optimizing to Maintain Efficiency and Effectiveness
                                                                                                                12

Leveraging Client Insight

                                          Sustainable, Profitable Revenue
                                                      Growth


                                       Acquire & Expand Client Relationships




                               Client           Product                         Human     Sales &
             Brand                                            Delivery
                             Experience      Development/                       Capital   Service
           Positioning                                        Channels
                                              Innovation                                  Process




                                                                                                    Execution
 Culture




                                              Segment Value Propositions




                                                  Client Insight
                         Client Needs/ Preferences/ Attitudes
                         Client Behavior
                         Local Market Conditions and Competitive Intelligence
                         Client Economics/ Profitability
                                                                                                                                               13
Integrated Delivery Channels
Branch Strategy




      Branch                                                                     Introduce
                                            Branch                                                                  November 2007
                                                                                                                       Integrated
                                                                                 Capabilities:
                                                                                                              =
    Expansion:

       Market
                                  +      Modernization:

                                             Repair,
                                                                       +         Differentiate
                                                                                                                         Branch
                                                                                                                        Strategy
      Portfolio                            Revitalize &                           the Client
      Approach                              Re-brand                             Experience

• Concentrate investment in           • Create a look distinctly Key       • Match service levels,                • Reintroduce Key into the
  select markets                                                             functionality & design with            market in a concentrated
                                      • Condition of outlet lifts
                                                                             client transaction potential           “burst”
• Align capital investment with         performance
  return                                                                   • Leverage client insight to           • Achieve management focus
                                                                             customize and localize the             & in-market efficiencies
• Build branch density in                                                    experience
  growth markets                                                                                                  • Optimize marketing spend
                                                                           • Use technology as an
• Relative outlet share drives                                               accelerator of momentum (e.g.,       • Create market awareness
  client acquisition                                                         Teller21, Remote ATM,
                                                                                                                  • Increase branch density,
                                                                             Desktop, etc.)
                                                                                                                    deposit market share and
                                                                           • Integrate with other channels          maximize revenue lift
                                                                               14
Integrated Delivery Channels
Branch Expansion

      128th & Thornton, Colorado          North French & Transit, Western NY




                                   Shoppes of Solon, Cleveland
                               15
Integrated Delivery Channels
Branch Modernization
                                                                                                  16
Integrated Delivery Channels
Mobile Banking

 Online Banking clients with iPhone or Blackberry
 phones can:
  •     View accounts balances and transactions
  •     Make payments to existing payees
  •     Transfer money between Key accounts
  •     Locate ATMs and Branches

 Introduced in Q1 2010:
  •     Text messaging capabilities for all clients and
        phones, including:
         –     Mobile Alerts
         –     Real-time inquiries




 Convenience is more than a nearby branch or ATM — it’s being able to bank wherever you are
 when you want, and being convenient is still one of the top reasons why people choose their
 bank. Key’s Mobile Banking is ideal for clients on the go — it allows them to locate a branch,
 view account information, pay bills and transfer funds from anywhere at any time.
                                                                17
Integrated Delivery Channels
Online Banking

• In Corporate Insight’s 2010 Bank Monitor Report, Key
  was cited for enhancements made to its online banking
  site Key.com for 2009:
      • 1 GOLD MEDAL (Online Application capabilities)
      • 2 SILVER MEDALS (Online Banking Account Information
        and Account Transfer Capabilities)
      • 2 BRONZE MEDALS (Online Banking Alerts and Help Area)
                                                           18

Enhanced Sales/Service Culture

   2009 BusinessWeek        2010 American Customer
 Customer Service Champ   Satisfaction Index Recognition
                                                                      19

Optimizing to Maintain Efficiency and Effectiveness

   Capital optimization
    – Exiting unprofitable relationships
    – Differentiating return thresholds based on risk model

   Focus on operating efficiency and effectiveness
    – Consolidation of regions, branches, management, and headcount

   Strong risk management
    – Net charge-offs at 1st Qtr 2010:
          Home Equity 122 bps
          Commercial Banking 90 bps
    – Balance risk and reward


   Enhancing profitability of deposit portfolio
                                                                                                                                                                      20

Improving Net Interest Margin

 First Quarter 2010                                                                Net Interest Margin
                                                                                                                                          Key = 3.19%
                                                                                   5.00%
          Net interest margin increased by 40 bps                                                                                         Peers (a) = 3.55%
          compared to the 1Q09                                                     4.00%

                                                                                   3.00%


          Core funded; loan to deposit ratio                                       2.00%

          improved from 115% in 1st quarter 2009 to                                1.00%
          93% in 1st quarter 2010
                                                                                   0.00%




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                                                                                                                           H
          Continued benefit from improved funding
          mix as maturing CDs re-price or move into
                                                                                                          Loan to Deposit Ratio (b)
          lower cost deposits                                                     125%       115%
                                                                                                            107%
                                                                                                                                101%            98%
                                                                                  100%                                                                      93%

                                                                                   75%

                                                                                             109%           101%
                                                                                   50%                                          95%             91%         88%

                                                                                   25%

                                                                                    0%
                                                                                                1Q09        2Q09                3Q09            4Q09       1Q10
                                                                                                   Discontinued operations               Continuing operations



(a) Peer data pulled from 1Q10 earnings releases and the peer calculation represents the median of Key and its 13 peer banks.
(b) Ending balances; loans & loans held for sale (excluding securitized loans) to deposits (excluding foreign branch)
                                                                                                                                                          21

Deposit Repricing Opportunity

    5.00%                                                                                                                             Opportunity for
                                                                                                                                    continued repricing
                                                                                                                                    and improved rates
    4.00%
                    3.29%           3.32%
                                                    3.13%                                                                                  3.19%
                                                                                                                                3.04%
                                                                   2.84%                                          2.87%
    3.00%                                                                          2.79%           2.77%
                   3.10%

                                   2.56%            2.57%           2.56%
    2.00%                                                                          2.24%           2.15%
                                                                                                                  2.03%
                                                                                                                                1.84%
                                                                                                                                           1.71%

    1.00%



    0.00%
                             (a)             (a)                           (a)                              (a)           (a)
                    1Q08           2Q08            3Q08            4Q08            1Q09           2Q09            3Q09          4Q09       1Q10


                                               KEY - Net Interest Margin                     KEY - Interest-bearing Deposits

Community Bank
$ in billions
  CDs                $19.2           $19.4          $20.0          $22.6            $23.2          $23.9          $23.6         $21.9      $20.0


  (a) Net interest margin is adjusted to exclude the impact of certain items related to leveraged leases.
                                  22

Community Banking – Advertising
                                  23

Community Banking – Advertising
                                  24

Community Banking – Advertising
                                  25

Community Banking – Advertising

				
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