KeyCorp (KEY) investor relations material

Macroeconomic and client outlook

• Economic resilience persists despite shifting rate expectations, with clients adapting well to ongoing uncertainty through 2026.

• Loan growth remains strong, though moderating in the second half, with robust client acquisition and healthy pipelines.

• Credit quality is stable to improving, with benign charge-offs and improving metrics across key sectors.

• Commercial loan growth is broad-based, especially in utilities, renewables, and technology, with positive trends across geographies.

• Loan demand has exceeded expectations despite higher rates, though further hikes could slow growth.

Technology, efficiency, and AI initiatives

• Ongoing modernization of core systems avoids large-scale investments and keeps technology current.

• Technology and operations have been realigned to enhance end-to-end client and employee journeys, leveraging AI for efficiency.

• AI tools like Copilot are widely deployed, driving operational efficiencies and potentially increasing revenue without proportional expense growth.

• Early AI adoption is expected to scale operations without significant headcount increases.

Loan and deposit trends

• Commercial loan growth is slightly above guidance midpoint, with strong client relationship growth.

• Consumer loan runoff is slower than expected, with the process likely continuing through 2027, aiding funding optimization.

• Deposit growth has rebounded post-May, outpacing loan growth and occurring at favorable pricing.

• Deposit growth is strongest in commercial segments, with geographic diversity providing balance.