KeyCorp Investor Meeting Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Erika Najarian, UBS. I have two questions, one for Angela and one for Ken. And you can answer, too. I'm not trying to leave you out. Angela, you mentioned something that I wrote down. It's actually a question we're getting from investors a lot. Obviously, the big question now with the forward curve changing the way it has is, can the Fed land the plane without crashing it? And could you give us a sense as you do your debt service sensitivities, what sort of rate shock would start concerning you in terms of debt service coverage ratios. And I'm sure you lost a lot of business to nonbanks, even now and prior to the pandemic. Could you sort of compare what the credit standards and the debt sort of the structure standards are versus Key? But really wanted to focus on the sensitivity of credit to rates. And the second question for Ken is, you mentioned that operating deposits grew from 2019. Could you give us a sense of how much that has grown from 2015? Additionally, you gave us balanced growth from '19 to '21. What about account growth? We're just trying to get a sense of what these deposit betas could look like. And if you could give us your outlook on if we really do go 7x, what does that mean for deposit growth in the commercial bank as well as deposit betas?

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : I have 2 questions. The first is -- what is the advantage of having Laurel Road as a very separate brand from Key? And piggybacking off of Steve's question, you won't reveal the NPS score -- what is the big difference between the 2 systems in terms of, obviously, the difference between NPS scores? So I guess that's the first question. The second question is when you gave the example of Dr. Martinez's experience. The actual loan amount for me was eye-popping. And so I'm wondering if you could give us a sense of what the payment behavior is like for student debt that is attached to medical professionals versus student debt that is not attached to medical professionals in terms of payment behaviors and payment priorities in a tougher economic time.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Two questions for me, please. So the first is just a reframing of Ryan and Steve's question. We've heard a lot about the persistent discount the stock is trading at. If I look forward to 2024 consensus expectations, the consensus expectations for ROTCE for Key is 16%. For your large regional peers, it's 18%. So your capital stack seems optimized or close to optimize at the moment. So it seems like a numerator question. So the question -- the first question really here is, what gets you close to peers or really what gets you to the higher end of your ROTCE range of 16% to 19%? And if The Street has you underperforming your peers by 200 basis points, what are they missing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 01, 2022 / 1:30PM, KEY.N - KeyCorp Investor Meeting

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : So I was referring to 2024.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : I was thinking that, that would be fully baked in for rates. And I would also point out, I doubt that, that includes a recessionary scenario. So banks aren't distinguishing themselves. But just to repeat, it sounds like you're saying that charge-offs aside, right -- because I think that 18% ROTCE would presume that everything is still going great. It sounds like it's the pace of investment that you had recently accelerated and some Key-specific headwinds like prepaid card are -- that's going to help you at least match your peers looking forward.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : I'm sorry, the second question -- and I'll give up the mic is, I got a few e-mails, Don, asking about -- asking me to ask about a swap update in terms of -- if you could remind us what the maturity schedule is over the next 2 years. Clearly, there's a big difference since we heard from you in a public forum with regards to the forward curve. And a question I'm going to sneak in, Arjun, where are you based? Arjun Sirrah I'm based in New York.