Barclays Global Financial Services Virtual Conference 2020

Chris Gorman

Don Kimble

Chairman and

Vice Chairman and

Chief Executive Officer

Chief Financial Officer

November 6, 2019

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp's expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as "believe," "seek," "expect," "a nticipate," "intend," "target," "estimate," "continue," "positions," "plan," "predict," "project," "forecast," "guidance," "goal," "objective," "prospects ," "possible," "potential," "strategy," "opportunities, " or "trends," by future conditional verbs such as "assume," "will," "would," "should," "could" or "may", or b y variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp's control.) Actual results may differ materially from current projections.

Actual outcomes may differ materially from those expressed or implied as a result of the factors described under "Forward-looking Statements" and "Risk Factors" in KeyCorp's Annual Report on Form 10-K for the year ended December 31, 2019 and in other filings of KeyCorp with the Securities and Exchange Commission (the "SEC"). In addition to the aforementioned factors, the COVID-19 global pandemic is adversely affecting us, our clients, and our third-party service providers, among others, and its impact may adversely affect our business and results of operations over a period of time. Risks related to COVID-19 are more fully described under "Risk Factors" in KeyCorp's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward- looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir.

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Key: Strong, Resilient, and Well-Positioned

Pandemic Response

  • Business resiliency and teammate support: operational effectiveness across the franchise with highly engaged workforce
    • >10,000 team members working from home
    • Supporting teammates through flexible work arrangements, pay incentives, temporary assistance loans, childcare credits, etc.
  • Proactive client outreach and support: playing a critical role in providing capital and assistance to clients
    • Processed >40,000 PPP loans, providing over

$8 B of funding

    • Provided forbearance options and assistance for consumer and commercial clients: <5% of total loan balances in forbearance status as of 6/30
  • Continued focus on credit: committed to moderate risk profile and strong underwriting standards
    • Active portfolio surveillance; COVID-impacted industries performing in-line with expectations

Priorities to Drive Future Growth

  • Distinctive strategy and business model: balanced, diverse and relationship-focused
  • Significantly improved risk profile: committed to proactive credit risk management and strong underwriting standards
  • Accelerate investments in digital across all client segments: expanded capabilities through Laurel Road
  • Invest in talent and targeted capabilities: including capital markets, payments, residential mortgage, digital and analytics
  • Focus on expenses: aligning expenses with revenue opportunities to drive positive operating leverage
  • Strong capital management: committed to capital priorities, including quarterly dividend

Committed to achieving long-term targets:

Positive operating leverage

Moderate risk profile:

ROTCE:

Cash efficiency ratio:

NCOs to avg. loans targeted range:

16% - 19%

54% - 56%

40-60 bps

PPP= Paycheck Protection Program

3

Loan Portfolio: Positioned to Weather Potential Stress

Loan Composition

(as of 6/30/20)

26%

Consumer

Commercial

  • Target specific client segments focused on seven industry verticals
  • Experienced bankers with deep industry expertise
  • Focused on high quality clients (C&I: ~50% IG)
  • Continuous ongoing portfolio reviews with business, as well as proactive case-by-case reviews with clients potentially impacted by pandemic

~50% C&I

investment

grade

Consumer

74%

Commercial

  • Prime & super prime client base focused on relationships
  • Local presence within retail footprint
  • Heightened LTV / DTI / FICO requirements across all consumer products related to COVID-19
  • Record consumer originations bring more balance to portfolio driven by Laurel Road and consumer mortgage

Average FICO scores at origination:

774 765 791

Total Consumer

Residential

Laurel Road

Mortgage

4

Pandemic Credit Metrics: Outperforming Peers

2Q20 Deferrals (% of Total Loans)2Q20 Criticized Loans (% of Total Loans)(a)

11.2%

7.7%

Peer Median: 7.4%

Peer Median: 4.6%

3.3%

4.3%

KEY Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8KEY Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8

KEY COVID-19 Hardship Support

Commercial

Consumer

Deferral or forbearance options as of 6/30: 2% of

Deferral or forbearance options as of 6/30: 2% of

clients / 4% of balances

clients / 5.5% of balances

Second round deferral requests (August 2020): ~15%

Second round deferral requests (August 2020):

COVID-impacted industries performing in-line with

− Real estate: ~30%

expectations

− Non-real estate consumer: ~12%

Dynamic assessment of ratings migration

Focusing on loss mitigation and collection

strategies

Note: Peer group includes peer banks that reported both deferral and criticized loan statistics in 2Q20: CMA, FITB, HBAN, PNC, RF, TFC, USB, and ZION

(a) Criticized figures derived from peer 10-Q filings; KEY includes commercial and consumer criticized; peers are commercial criticized only unless only total

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(inclusive of consumer) reported

Accelerating Digital Usage

Investing in digital and leveraging technology to create a seamless experience for our clients…

Digitizing client

Building differentiated

Enhancing digital

Leveraging analytics

portals

capabilities

offerings

to provide insights

… resulting in increased digital usage across

… and improved client

consumer client base…

satisfaction.

Laurel Road

Digital Deposits(a)

Net Promoter Score(b)

900

$ in millions

530 K

800

700

$801

600

$706

500

$611

332 K

$552

11K

262 K

19%

400

$416

300

200

10%

8%

1007K

0

2Q19 3Q19 4Q19 1Q20 2Q20

2Q18

2Q19

2Q20

Digital Total

Mobile

Originations

Doctor/ Dentist Clients

Digital

Digital % of Total

2Q18

2Q19

2Q20

(a) Total Mobile Remote Deposits Captured relative to the percentage of total (Branch + ATMs)

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(b) Promoters minus Detractors calculation for clients when asked "How likely are you to recommend Key to a friend or family member? (0-10 scale)"

Disciplined Capital Management

Highlights

Disciplined in how we manage, invest, deploy, and

return our capital

Positioned to weather adverse operating environments:

− Government-mandated and internal stress tests

demonstrate Key would remain well-capitalized

through periods of significant stress

Capital Priorities

Supporting

Share

OrganicDividends

Announced preliminary stress capital buffer of 2.5%

(minimum required)

3Q20 quarterly common share dividend of $.185

(consistent with 2Q20)

Growth

Repurchases

Common Equity Tier 1(a)

Dividend Growth

11.0%

Targeted CET1 range: 9-9.5%

Dividend yield: ~6%

10.0%

$0.74

9.6%

9.0%

9.1%

8.0%

7.0%

$0.215

6.0%

2Q19

3Q19

4Q19

1Q20

2Q20

2013

2014

2015

2016

2017

2018

2019

2020

Annualized

Note: Dividend yield as of 8/31/20; assumes 4Q20 dividend of $.185 per common share (subject to Board approval)

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Focus Areas: Positioned to Outperform

I

Maintain moderate risk profile and proactively manage credit quality

II

Grow organically with a focus on targeted businesses and client segments

III

Manage expenses while continuing to invest for growth

IV

Continue disciplined capital management

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November 6, 2019

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KeyCorp published this content on 13 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2020 15:54:00 UTC