KeyCorp Preliminary Stress Capital Buffer

Rhea-AI Summary

KeyCorp (NYSE: KEY) announced its preliminary Stress Capital Buffer requirement from the Federal Reserve, set at 2.5%. This buffer is crucial for banks of Key's size and will be finalized before Q4 2020. CEO Chris Gorman emphasized the company's commitment to a moderate risk profile and robust capital management, stating that their strong balance sheet enables them to sustain operations during tough economic conditions while supporting clients. KeyCorp aims to maintain its common stock dividend for Q3 2020, pending Board approval.

Positive

• Strong balance sheet and liquidity support operational sustainability during economic downturns.
• Commitment to maintaining common stock dividend for Q3 2020 at previous levels, subject to Board approval.

Negative

• None.

CLEVELAND, June 30, 2020 /PRNewswire/ -- KeyCorp (NYSE: KEY) announced today its preliminary Stress Capital Buffer requirement provided by the Federal Reserve as part of the 2020 Federal Reserve Capital Stress Testing exercise. The preliminary buffer is 2.5% and represents the minimum buffer required for banks the size of Key. The final Stress Capital Buffer for KeyCorp will be released by the Federal Reserve before it takes effect in the fourth quarter.

Commenting on the results from the Federal Reserve, Chris Gorman, Chairman and CEO of KeyCorp, stated, "We remain committed to maintaining our moderate risk profile and being disciplined in the way we manage our capital. Our strong balance sheet, liquidity, and capital positions our company to weather adverse economic scenarios, while continuing to support our clients, invest in our business, and provide returns for our shareholders. Our capital plans would include maintaining our common stock dividend for the third quarter of 2020, at the same level as the second quarter of 2020, subject to approval from our Board of Directors."

KeyCorp's roots trace back 190 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $156.2 billion at March 31, 2020. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of over 1,000 branches and approximately 1,400 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

 

 

 

 

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SOURCE KeyCorp

FAQ

What is KeyCorp's preliminary Stress Capital Buffer for 2020?

KeyCorp's preliminary Stress Capital Buffer for 2020 is 2.5%.

When will the final Stress Capital Buffer for KeyCorp be released?

The final Stress Capital Buffer for KeyCorp will be released by the Federal Reserve before it takes effect in the fourth quarter.

How does KeyCorp plan to manage its capital during economic challenges?

KeyCorp plans to manage its capital by maintaining a moderate risk profile and leveraging its strong balance sheet and liquidity.

What is KeyCorp's common stock dividend plan for Q3 2020?

KeyCorp plans to maintain its common stock dividend for Q3 2020 at the same level as Q2 2020, pending Board approval.