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This presentation contains forward-looking statements, including statements about our financial
condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-
looking statements express management's current expectations or forecasts of future events and,
by their nature, are subject to assumptions, risks and uncertainties. Although management
believes that the expectations and forecasts reflected in these forward-looking statements are
reasonable, actual results could differ materially due to a variety of factors including: (1) changes
in interest rates; (2) changes in trade, monetary or fiscal policy; (3) changes in general economic
conditions, or in the condition of the local economies or industries in which we have significant
operations or assets, which could, among other things, materially impact credit quality trends and
our ability to generate loans; (4) increased competitive pressure among financial services
companies; (5) the inability to successfully execute strategic initiatives designed to grow revenues
and/or manage expenses; (6) consummation of significant business combinations or divestitures;
(7) operational or risk management failures due to technological or other factors; (8) heightened
regulatory practices, requirements or expectations; (9) new legal obligations or liabilities or
unfavorable resolution of litigation; (10) adverse capital markets conditions; (11) continued
disruption in the fixed income markets; (12) disruption in the economy and general business
climate as a result of terrorist activities or military actions; and (13) changes in accounting or tax
practices or requirements. Forward-looking statements are not guarantees of future performance
and should not be relied upon as representing management's views as of any subsequent date.
We do not assume any obligation to update these forward-looking statements. For further
information regarding KeyCorp, please read KeyCorp's reports that are filed with the Securities
and Exchange Commission and are available at www.sec.gov.
3
Strategic Update
(1)
Continuing Operations exclude the results of the Champion Mortgage finance business, which has been
accounted for as a discontinued operation.
5
$800 4.25%
$744
$716 $722 $726 $726
$706 $712 4.00%
$692 $700
$700
3.75%
$600 3.72%
3.68% 3.68% 3.66%
3.63% 3.61% 3.50%
3.50%
3.46%
3.40%
$500 3.25%
3.09% 3.00%
3.06% 3.05%
$400
2.96%
2.85% 2.85% 2.75%
$300 2.70%
2.62% 2.50%
2.52%
$200 2.25%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Net Interest Income Net Interest Spread Net Interest Margin
TE = Taxable Equivalent
6
$75 15%
65.6 65.7 66.3 67.7
63.4 64.2 64.9 65.2
62.0
$60 10%
$45 5%
$30 0%
$15 -5%
$0 -10%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
$40
8%
$30
4%
$20
0%
$10
$0 -4%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Average Core Deposit Growth from Prior Year
Average Core Deposit Growth Adjusted for McDonald Divestiture
DDA $12.2 $12.6 $12.7 $13.0 $13.1 $13.4 $13.2 $14.0 $14.4
NOW/MMDA 22.9 23.9 24.5 25.3 25.2 25.1 23.4 23.0 24.2
Savings 2.0 1.9 1.8 1.8 1.7 1.7 1.6 1.6 1.6
CD’s 10.8 11.0 11.3 11.5 11.7 11.9 12.1 12.0 11.5
10
Asset Quality
$ in millions
Net C/O $ 59 $ 53 $ 43 $ 6 $ 16
to Average Loans from
Continuing Operations 0.35 % 0.32 % 0.26 %
Capital Ratios
9.00%
8.24% 8.14%
8.15%
8.02% 7.92%
8.00% 7.90%
7.72% 7.64%
7.59%
6.00%
5.00%
4.00%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Appendix
14
Community Banking
Northwest Rocky Mountains Great Lakes Northeast
Core Deposits: 24% Core Deposits: 9% Core Deposits: 36% Core Deposits: 31%
Comm’l Loans: 25% Comm’l Loans: 12% Comm’l Loans: 39% Comm’l Loans: 24%
15
80%
60%
46.3%
40% 35.8%
27.4% 28.4%
23.2%
20% 15.3%
11.0% 12.6%
1.02%
0.90%
0.60%
0.33% 0.35%
0.32% 0.32%
0.30% 0.26% 0.27%
0.24% 0.22%
(1) (1)
0.26% 0.22%
0.00%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
0.51% 0.46%
0.43% 0.45% 0.47%
0.41%
0.36%
0.28% 0.29% 0.30%
0.23% 0.20%
0.15% 0.12%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
(1)
Excludes Champion Mortgage
19
Nonperforming Assets
$ in millions
0.83%
$500
0.80%
$393 $378
$400
$353
$329 0.62%
0.60% $307 $320 $308
$300 $273 0.54% 0.60%
0.50%
0.48%
0.46% 0.46% 0.57%
0.54%
$200 0.50% 0.49%
0.46% 0.40%
0.43% 0.44% 0.44% 0.41%
$100
$0 0.20%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
NPAs to Loans + OREO Peer Median S&P Regional & Diversified Bank Indices
Commercial $237 $142 $138 $144 $135 $118 $155 $181 $393
Consumer 123 135 157 135 88 97 99 95 105
OREO + Other 33 30 25 29 106 58 99 102 72
20
1.67%
1.00%
0.50%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Allowance to NPLs
500%
439%
423%
400% 372%
349%
343% 342%
327%
304%
300%
192%
200%
100%
0%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Nonowner-occupied:
Nonperforming loans $81 — $7 $25 $106 $9 $228 N/M
90+ days past due 32 — — 4 — — 36 N/M
30 — 89 days past due 33 $16 1 14 20 29 113 N/M
$1.4 B
$0.2 B $0.2 B
$0.9 B $1.1 B
$0.3 B
$0.5 B
$0.7 B
$160.0 $5.0
$140.0 $4.5
$60.0 $2.0
$1.5
$40.0
$1.0
$20.0 $0.5
$0.0 $0.0
2000 2001 2002 2003 2004 2005 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07