KeyCorp
KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits and investment products; personal finance and financial wellness, lending, student loan refinancing, mortgage and home equity, credit card, treasury, and business advisory; commercial leasing, investment management, consumer finance; and wealth management and investment services for institutional, non-profit, and high-net-worth clients. It also provides lending, cash management, equipment financing, and commercial mortgage loans; and capital market products and services, such as syndicated finance, debt and equity underwriting, fixed income and equity sales and trading, derivatives, foreign exchange, mergers and acquisition, other advisory services, and public finance to large corporate and institutional clients. In addition, the company offers personal and institutional trust custody services, personal financial and planning services, access to mutual funds, treasury services, and international banking services. Further, it provides community development financing, securities underwriting, brokerage, and investment banking services, as well as merchant services. The company was founded in 1849 and is headquartered in Cleveland, Ohio.
What does it do?
KeyCorp is the parent company of KeyBank, one of the largest regional banks in the United States with branches mostly in the Midwest, Pacific Northwest, and Northeast. Think of it like a mid-sized bank that does everything your local bank does — checking accounts, mortgages, car loans — but also serves businesses with loans, leasing, and investment services. For example, a small business owner in Ohio might use KeyBank for their company's payroll account and a line of credit, while a regular customer uses it for a home equity loan. It's not as big as JPMorgan Chase, but it's a major player in the communities it operates in.
Regional banks like KeyCorp are closely watched as a barometer for the health of everyday American consumers and small businesses — when people can pay their loans and businesses are borrowing to grow, banks like KEY do well. After a rough stretch where rising interest rates squeezed borrowers and rattled confidence in regional banks following the 2023 SVB collapse, investors are now watching to see which mid-sized banks can prove they've stabilized. KeyCorp also made headlines when Canadian bank Scotiabank took a roughly 15% stake in the company in 2024, injecting fresh capital and signaling outside confidence in its recovery.
How does it make money?
KeyCorp makes money primarily in two ways: charging interest on loans (mortgages, business loans, credit cards) and collecting fees for services like investment management and treasury services. The gap between what a bank pays you on your savings account and what it charges borrowers on loans is called net interest income — that spread is the engine of KeyCorp's profits. In its latest annual results, revenue jumped to $7.5 billion from $4.6 billion the prior year, a massive increase partly driven by improved interest income as rates stayed elevated. The bank also earns fee-based income from its commercial banking arm, which handles things like leasing equipment to businesses and managing corporate cash.
Why do investors care?
The investment story for KeyCorp is essentially a turnaround play — the idea that the worst is behind it and profitability is set to improve as interest rates eventually come down and loan demand picks back up. When rates fall, KeyCorp's cost of funding (what it pays depositors) drops faster than what it earns on loans, which can widen its profit margins. The Scotiabank investment in 2024 was a big vote of confidence, giving KeyCorp capital to grow without diluting existing shareholders too heavily. For this story to work, credit quality needs to hold up — meaning borrowers have to keep repaying their loans — and the broader U.S. economy needs to avoid a deep recession.
Deep Dive
MemberA full investor briefing on KeyCorp — history, leadership, risks, and outlook.