KeyCorp presented at the Morgan Stanley U.S. Financials Conference, where Ken Gavrity, the head of the commercial bank, provided insights on the company's performance and strategic initiatives. The presentation highlighted the growth and evolution of KeyCorp's commercial banking segment.
KeyCorp's commercial banking segment showed significant growth in various metrics from 2019 to 2024. The total revenue from the middle market increased from approximately $13 billion in 2019 to around $18 billion in 2024, representing a robust 38% growth. Moreover, the number of commercial clients also saw an 8% increase, reaching around 4.6 thousand in 2024.
In terms of deposits, KeyCorp experienced substantial growth, with total deposits in the commercial banking segment increasing by 24% from approximately $4.2 billion in 2019 to about $5.2 billion in 2024.
The commercial payments segment also demonstrated impressive growth, with fees increasing by 60% from around $36 million in 2019 to approximately $58 million in 2024. Additionally, merchant fees and fee equivalent revenue saw an 85% growth, reaching around $360 million in 2024.
KeyCorp's strategic initiatives were also highlighted in the presentation, emphasizing the company's investments in scaling the business and expanding its market footprint. Key accomplishments included the expansion into Chicago and Southern California, with 77% of total commercial deposits being operating deposits. The company also reported approximately 25% growth in its business-focused risk team, reflecting a commitment to enhancing risk management capabilities.
The presentation underscored KeyCorp's focus on building a purpose-built platform for middle-market clients and highlighted the growth opportunities in the holistic payments platform, as evidenced by the substantial increase in API clients and embedded banking clients.
Today the company's shares have moved 0.43% to a price of $16.35. Check out the company's full 8-K submission here.
