KeyCorp Q2 2023 Earnings Call Summary

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

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : First question -- what was your adjusted CET1 in the quarter, including AOCI? And I presume that 9% 9.5% CET1 target would be like your fully loaded target even after we get an NPR that would be inclusive of AOCI and CET1?

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Got it. So my second question is for you, Chris. And I apologize if this sounds challenging, but this is sort of the big conversation that I'm having with long-term shareholders. Clearly, the stock price performance today is trying to price out some of the dividend fears that were in the market given where your yield is. And I think the big discussion I'm having with your investors is that, that 80% REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 20, 2023 / 2:00PM, KEY.N - Q2 2023 KeyCorp Earnings Call payout, right, that you mentioned and that happened for this quarter, it feels like 3 years ago, sort of in the pandemic, you were getting the same question about the sustainability of your dividend. And it feels like at the end of the day, it's really the denominator that has been challenged. So whether it's been expenses previously or steady having the balance sheet set up to have these received fixed rates that essentially implied a 0 rate environment forever, it just feels like your efficiency ratio isn't just quite right and doesn't really reflect the potential of the business. So as you think about the next 3 years, how are you -- what discussion are you going to have with your Board to have that earning -- the potential of your franchise really be reflected in your earnings power. I mean the NIM is the NIM, and I get the swaps, but like I feel like that (inaudible) gets wrapped up in the dividend conversation at the entire time, not necessarily because the dividend is an albatross, but it feels like that your earnings power is sensitive to vagaries of the macro.