KeyCorp (KEY) UBS Financial Services Conference 2026 summary

Business Overview and Market Positioning

• Commercial banking generated $2.1 billion in revenue in 2025, about a third of total revenue, and served approximately 5,000 middle market clients across 30 markets, targeting businesses with $10 million to $1 billion in revenue.

• Addresses a total market of over 200,000 U.S. middle market businesses, with market share under 3%, indicating significant growth potential.

• Holds a national presence, with significant growth in top MSAs and middle market loan pipelines up 54% by 2025.

• Nearly all deposits (98%) are attached to operating accounts, and over 50% of clients have three or more products.

• Commercial deposits expected to reach ~$58 billion, with middle market revenue up 26% and deposits up 60% from 2019 to 2025.

Financial Performance and Growth Strategy

• Commercial payments process ~$7 trillion in annual volume, with gross payments fees growing at an 8% CAGR from 2019 to 2025 and 9% in 2025.

• Commercial payments revenue CAGR over the last five years is strong, with 2025 revenue projected at ~$2.1 billion.

• Middle-market loans grew 9% in 2025, clients increased 4%, and loan pipelines are up over 50% year-over-year.

• Middle market average ROE is ~9% for 2025.

• Payments penetration among middle market clients is at 90%.

Platform Capabilities, Innovation, and Technology

• Offers a broad suite of traditional and innovative commercial payment capabilities, including embedded banking and fintech partnerships.

• Embedded banking business doubled in 2025 and is targeted to double again in 2026, with revenue and fee growth expected to double in 2025.

• Embedded banking leverages APIs to integrate with client platforms, enabling access to large client bases through software partnerships.

• Investments in product development, automation, analytics, and digital refresh are ongoing, with a major digital upgrade planned for 2026.

• AI is being piloted in commercial servicing to reduce manual processes and improve efficiency.