Slides
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KeyCorp Morgan Stanley U.S. Financials Conference June 11, 2025 Ken Gavrity Head of the Commercial Bank
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Commercial Banking: Relevance to Total KeyCorp Middle Market Total Revenue 27 Markets Strong coverage across top Middle Market MSAs ~4.6K customers 98% of deposits attached to an operating account 94% have at least 1 non-lending product with Key National Footprint ~8.3K Commercial Clients 95% of deposits attached to an operating account ~1/3 of new Commercial clients are payments led w/ no credit extended(3) Commercial Payments 2024(1) ~$58Bn Commercial Deposits Commercial Bank Organization 2 Total Average Deposits 2024 Growth & Returns Significant source of primacy to the bank Product, Digital, Onboarding, and Servicing All together in one organization, built around the customer ~17-20% Avg ROE across our Middle Market business(2) ~10% Commercial Payments Revenue CAGR over last 5 years (1) Total Key revenue excludes 2024 securities repositioning loss of $1.8 billion; (2) FY2022 - FY2024; (3) FY2024 ~$2Bn Commercial Payments & Middle Market
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A Purpose-Built Platform for Middle Market Clients 3 A multi-decade journey to create a platform tailored to the needs of Middle Market clients… …with significant opportunity given our <5% market penetration 1998 2014 2022 2023 Acquisition of McDonald Investments Build out of Middle Market Investment Banking practice Integrated Servicing Model To create teams focused on end-to-end client journeys Combined Middle Market and Payments businesses To create one team to serve the customers’ primary needs 2017 Elevation of Commercial Payments business Teams, platforms, industry focus, fintech strategy 200K+ U.S. Middle Market Businesses
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A Clear Value Proposition that Resonates Our targeted, full-service platform is delivered seamlessly through a unique relationship-based approach 4 Capabilities Scaled Holistic Platform (Commercial Payments, Capital Markets, and Wealth) Industry Expertise Integrated Delivery Model Regional Banks Trillionaire BanksBoutiques Middle Market Focus Client Impact (Average Tenure of ~15 years) Key’s Solutions Supply chain solutions manufacturer and distributor with 175+ locations in 10+ countries 60-Year Client Relationship Core Treasury | Lending | FX Merchant | Capital Markets Electric power systems solutions provider New Client Relationship Key’s Solutions Core Treasury | Lending | FX Merchant | Embedded Banking