KeyCorp's third-quarter 2014 earnings missed the Zacks Consensus
Estimate. Weak revenue generation resulted in the poor quarterly
performance. However, prudent expense management along with a fall
in provisions slightly salvaged the results. The company's
restructuring initiatives are expected to further strengthen its
credit quality and liquidity position going forward. Moreover, the
company's robust capital position, enhancement in asset quality and
steady capital deployment activities continue to boost investors'
confidence. Also, sustained growth in loan and deposits will likely
ease the pressure triggered by a persistent low interest rate
environment, elevated competition and stringent regulations to some
Cleveland-based KeyCorp, a bank-oriented financial services
company, provides a wide range of products and services, such as
commercial and retail banking, commercial leasing, investment
management, consumer finance as well as investment banking products
to individual, corporate and institutional clients throughout the
U.S. and, for certain businesses, internationally.
The company operates through the following business
Key Community Bank serves consumers and small to mid-sized
businesses by offering a variety of deposit, investment as well as
lending and wealth management products and services. These products
and services are provided through a 12-state branch network
organized into 9 internally defined geographic regions: Oregon and
Alaska, Washington, Rocky Mountains, Indiana, Western Ohio and
Michigan, Eastern Ohio, Eastern New York, New England, and Western
Key Corporate Bank is a full-service corporate and investment
bank, focused largely on serving the needs of middle market clients
in six industry sectors: consumer, energy, healthcare, industrial,
public sector and real estate. The segment offers a wide-range of
products to its clients, including syndicated finance, debt and
equity capital markets, commercial payments, equipment finance,
commercial mortgage banking, derivatives, foreign exchange,
financial advisory and public finance.
Other Segments consists of Corporate Treasury, Principal
Investing and a diverse range of exit portfolios.
In addition to the customary banking services, KeyCorp's bank ,
its registered investment advisor, and its trust company
subsidiaries offer personal and corporate trust services, personal
financial services, access to mutual funds, cash management
services, investment banking and capital markets products as well
as international banking services. KeyCorp also provides other
financial services, both within and beyond its primary banking
markets, through non-bank subsidiaries. These services include
accident, health and credit-life insurance on loans, principal
investing, community development financing, securities underwriting
and brokerage as well as other financial services. The company is
also an equity participant in a joint venture with Key Merchant
In 2008, the company acquired U.S.B. Holding Co. Inc., the
holding company for Orangeburg, N.Y.-based Union State Bank,
expanding KeyCorp's presence in Hudson Valley markets.
In 2012, KeyCorp acquired 37 retail banking branches in Buffalo
and Rochester, N.Y. from First Niagara Financial Group by paying a
4.4% premium on deposits or nearly $95 million.
In 2013, KeyCorp divested Victory Capital Management and its
broker dealer affiliate, Victory Capital Advisers. The company
realized a net after tax gain of $92 million from the deal.
In Sep 2014, KeyCorp completed the acquisition of Pacific Crest
Securities, Portland, OR-based technology-focused investment bank
and capital markets firm. The financial terms of the agreement were
As of Sep 30, 2014, KeyCorp had a network of 997 full-service
retail banking branches and about 1,290 ATMs. Further, the company
had total assets of $89.8 billion, total earning assets of $78.3
billion, total deposits of $68.5 billion and total equity of $10.5
billion, as of the same date.
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