KeyCorp Q2 2022 Earnings Call Transcript

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

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : My first question is on credit quality, which is clearly pristine currently. Chris, you said to Ebrahim that the time to prepare for a downturn is well before the downturn hits. And maybe help us understand how we should think about how Key's ACL would look like in a recession. So you ended the quarter at 113 and clearly, your book has changed, but you also have more consumer loans, which, even if the credit is good, my understanding is from a CECL standpoint, they have longer lives, right? So I guess the question here is, if we do have a mild recession next year or sooner than that, where would this ACL ratio trend?

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Got it. And Chris, maybe a follow-up question for you. As you take a step back, you and your colleagues have built Key into this powerhouse, super regional commercial and corporate bank. And I think a lot of investors are thinking that a lot of the issues in credit and corporate from higher rates and lower EBITDA, perhaps, may come outside of the banking system. And given your comments about derisking, is there any room at KeyCorp for perhaps some market share gains if you do see some blowups in the private credit markets? Or are those deals just deals that you wouldn't be comfortable with any way?