KeyCorp highlights 6% year-over-year commercial client growth and 2.5% year-over-year net new relationship household growth, demonstrating the effectiveness of its relationship-based business model and long-term strategic commitment to primacy.

KeyCorp announced a strategic partnership aimed at accelerating growth in its commercial platform, reflecting a focus on delivering best-in-class execution services while managing risk.

The recent launch of Key Private Client is designed to penetrate the growing mass affluent segment within the consumer base and commercial business owners, with Assets Under Management surpassing $57 billion.

KeyCorp's planned balance sheet optimization efforts resulted in an $8.8 billion decrease in average loans compared to the prior year, reflecting a strategic shift in asset allocation.

Personnel expense decreased by $27 million YoY, driven by lower headcount from efficiency-related actions, indicating progress in streamlining operations.

The Common Equity Tier 1 ratio ended the quarter at 10.3%, up approximately 120 basis points from a year ago, representing the fastest rate of organic capital build over a 12-month period since the industry began tracking this metric.

The 10-Q discusses the potential impact of the Capital Proposal, which would significantly change regulatory capital rules, including a new framework for calculating risk-weighted assets and the supplementary leverage ratio requirement.

The Federal Reserve's proposal to lower the maximum interchange fee for debit card issuers with over $10 billion in assets is identified as a potential risk, indicating a possible reduction in fee income.

A lawsuit challenging the CRA final rule has resulted in a preliminary injunction, creating uncertainty regarding compliance requirements and implementation timelines.

Commercial and industrial loans decreased by $1.0 billion, or 1.8%, reflecting the competitive environment, low client demand, and the residual impact of balance sheet optimization efforts.

Trust and investment services income increased by $8 million, or 6.3%, driven primarily by investment management fees associated with higher assets under management, indicating a strong competitive position in wealth management.

Average deposit balances increased $3.9 billion, or 7.4%, driven by our focus on growing deposits across our commercial businesses

Personnel expense decreased by $27 million, or 3.9%, driven by lower headcount from efficiency-related actions taken last year.

Service charges on deposit accounts decreased $4 million, or 6.0%, driven by decreased maintenance fees.

Generate positive operating leverage and a cash efficiency ratio in the range of 54% to 56%.

The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint and through our Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity, credit card, treasury services, and business advisory services.

No open market share repurchases were completed during the first quarter of 2024, indicating a potential shift in capital allocation priorities.

A quarterly dividend of $0.205 per Common Share was declared, consistent with the capital plan, signaling a commitment to returning capital to shareholders.

Treasury shares are being reissued as needed in connection with stock-based compensation awards

The SEC issued an order staying its final climate disclosure rules pending the completion of judicial review of these lawsuits. Key is monitoring developments in these lawsuits.

As of March 31, 2024, economic uncertainty remains elevated. Unemployment rates remain at relatively low levels, but job growth is moderating.

Inflation, in the United States, is more persistent than anticipated, but has eased as the restrictive monetary policy and higher interest rates have made an impact.

Commercial real estate values remain under pressure, with office being the most vulnerable asset class.