Welcome to our dedicated page for Keycorp news (Ticker: KEY), a resource for investors and traders seeking the latest updates and insights on Keycorp stock.
KeyCorp reports developments across its KeyBank banking franchise, KeyBanc Capital Markets, and wealth-management operations. Company news commonly covers deposit, lending, cash management, and investment services for individuals and businesses in its multi-state banking footprint, along with commercial banking coverage for middle-market companies.
Recurring updates include quarterly earnings, net interest income, fee-based businesses such as investment banking, commercial payments, and wealth management, and regional expansion of middle-market teams. News also covers Key Private Bank, customer financial surveys, community partnerships, and capital-markets services including M&A advice, public and private debt and equity, syndications, and derivatives.
KeyBank Foundation has committed a $300,000 community impact grant over three years to Urban Arts, a nonprofit organization teaching video game design to underserved youth as a pathway to college and career. Urban Arts provides a comprehensive curriculum in game design, including computer science, coding, animation, music, and storytelling. The organization offers college access services, scholarships, and connects alumni to mentorship and internship opportunities at leading corporations.
This partnership aligns with KeyBank's commitment to education and workforce development. Urban Arts' innovative approach boosts persistence in computer sciences for low-income youth, generating technically skilled and creatively confident individuals ready for college and career. The program has helped students earn $25 million in scholarships since 2017 and achieved a 100% college enrollment rate for its seniors.
KeyBank Foundation has granted $15,000 to ProsperityME, a Maine-based organization empowering refugees and immigrants through financial education and counseling. Founded by Claude Rwaganje, ProsperityME offers services including financial education, workforce development, business support, and housing assistance. The funding will support programs like Basic Money Management and Saving to Build Wealth, teaching clients about the U.S. financial system, budgeting, and saving.
Since 2008, ProsperityME has offered over 300 courses and workshops, helping more than 10,000 newcomers and low-income families. The organization anticipates serving 4,000 immigrants in the Greater Portland and Lewiston areas this year. This grant is part of KeyBank's $40 billion commitment for lending and investments across its national footprint, established in 2017.
KeyCorp (NYSE: KEY) announced a strategic minority investment of approximately $2.8 billion from Scotiabank (TSX: BNS) (NYSE: BNS), representing a 14.9% pro forma common stock ownership at a fixed price of $17.17 per share. This opportunistic capital raise is expected to:
- Increase KeyCorp's CET1 capital ratio by 195 basis points to 12.4%
- Boost tangible book value per share by over 10%
- Result in a net CET1 capital ratio of 11.3% to 11.6% after potential portfolio repositioning
- Be low single-digit accretive to 2025 earnings per share
The investment will be made in two tranches, with the initial 4.9% stake expected to be completed by end of August 2024, and the remaining purchase subject to Federal Reserve approval in Q1 2025.
KeyBank's Key4Women program, Micro Enterprise Services of Oregon (MESO), and the Portland Thorns FC have announced 10 finalists for their second annual women-owned business pitch contest in Oregon and SW Washington. The finalists, selected from 86 applicants, will compete for $50,000 in cash awards, with the grand prize winner receiving $20,000. The contest aims to support and empower women entrepreneurs, recognizing their impact on the economy and community.
Finalists will present a 4-minute pitch and answer questions on October 10th at Providence Park in Portland. The event will be livestreamed by the Thorns. To be eligible, businesses must be at least 51% owned and controlled by women, headquartered in specific Oregon or Washington counties, and have annual sales under $3 million. MESO is providing application support, mentorship, and workshops to help finalists prepare their pitches.
Cascade AIDS Project (CAP) has received a $300,000 grant from KeyBank to launch a new Healthcare Equity Advocate Program. The program aims to address healthcare disparities among marginalized communities, including Black, Latino, Indigenous, Pacific Islanders, and LGBTQ+ populations. CAP employee Robb Lawerence has been promoted to Community Healthcare Equity and Engagement Manager to implement the program.
The initiative will focus on community engagement, acting as a liaison between CAP's healthcare services and underserved communities. KeyBank's grant will enhance CAP's capacity to provide culturally informed and responsive care through outreach and partnership development. This aligns with KeyBank's mission to help communities thrive and underscores its commitment to diversity, equity, and inclusion.
KeyBank (NYSE: KEY) announced that over 2,800 clients graduated from the Key Secured Credit Card® program in Spring 2024, bringing the total number of graduates to more than 30,900 since 2019. The program aims to help clients establish or improve their credit history and financial stability. Key findings include:
- 26% of graduates had low FICO scores at origination, with an average improvement of 73 points
- 60% of clients graduated within 12 months, and 93% within 24 months
- Graduates with no initial FICO score achieved an average score of 721
- Overall, graduates showed an average increase of 63 points in their FICO scores
The program features include a $0 annual fee, free FICO score checks, and credit history reporting to bureaus.
KeyBank has provided $64.7 million in financing for the construction of Silos Apartments, a new affordable housing project in Salt Lake City, Utah. The financing includes $16.6 million in low-income housing tax credit equity, a $21.3 million construction loan, and $6.3 million taxable equity bridge. The project will add 180 units of affordable housing for families earning up to 60% of the area median income. KeyBank's Commercial Mortgage Group also originated a $20.5 million permanent loan, while KeyBanc Capital Markets secured $21.3 million in Utah Housing Multifamily Housing Revenue Bonds.
Silos Apartments is part of a larger master-planned development in the Granary District, aiming to address Utah's substantial need for affordable housing. The project is sponsored by Blaser Ventures, a local affordable housing developer. KeyBank's involvement in this project aligns with its commitment to community development and affordable housing initiatives.
KeyCorp (NYSE: KEY) reported net income of $237 million or $0.25 per diluted share for Q2 2024, up from $183 million or $0.20 per share in Q1 2024. However, net income was down 5.2% year-over-year from $250 million or $0.27 per share in Q2 2023.
Average deposits increased by $1.3 billion compared to both last quarter and the same period last year, with client deposits up 5% year-over-year.
Total revenue decreased by 4.3% year-over-year to $1.53 billion, reflecting an 8.8% drop in net interest income and a 3.0% rise in noninterest income.
Expenses declined roughly 6% from Q1 2024. The Common Equity Tier 1 ratio improved to 10.5%, up 20 basis points from the previous quarter.
Net charge-offs as a percentage of average loans were 0.34%, up from 0.29% in Q1 but a significant increase from 0.17% in Q2 2023. The allowance for credit losses was $1.83 billion, or 1.71% of total loans.
The Springfield Boys & Girls Club has received a $20,000 grant from the KeyBank Foundation to support their Summer Brain Gain Program. This initiative aims to prevent learning loss among children during the summer, with modules aligned to common core standards emphasizing discovery, creativity, and collaboration.
The program targets children from low-income families, many of whom speak English as a second language. KeyBank also provided a financial literacy course to about 40 teen members, emphasizing the importance of money management skills for future success.
The grant and financial education efforts underscore KeyBank's commitment to supporting educational and financial literacy initiatives in minority and low-income communities.
KeyCorp (NYSE: KEY) announced that its Board of Directors has declared several dividends for the third quarter of 2024. Shareholders of the common shares will receive a cash dividend of $0.205 per share, payable on September 13, 2024, to those on record by August 27, 2024.
Dividends were also declared for various series of preferred stock, each payable on September 16, 2024, to holders of record as of September 3, 2024. These include: $312.50 per Series D share, $15.3125 per Series E share, $14.1250 per Series F share, $14.0625 per Series G share, and $15.50 per Series H share.