Chairman, President & Chief Executive Officer, KeyCorp
KeyCorp AGM 2026 | Net Income Surges 33% To $486M As Shareholders Approve All Resolutions
KeyCorp AGM 2026 | Net Income Surges 33% To $486M As Shareholders Approve All Resolutions | May 14, 2026.
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About Christopher Gorman
Christopher Gorman, chairman and chief executive officer of KeyCorp, discussed the company’s second quarter 2026 earnings on a July 21 call. He reported earnings of 44 cents per share, a 26% year-over-year increase, with revenue up 7% and pre-provision net revenue up 9%. Gorman stated he had “even greater confidence” in KeyCorp’s ability to achieve a return on tangible common equity exceeding 15% by the end of 2027, on a path toward a 16% to 19% long-term target. He described middle market M&A activity as lagging large-cap activity, attributing this to interest rates and conditions in the private credit market, but said he was “encouraged” by what he sees. On an April 16 earnings call, Gorman said he did not think there was “a credit problem” but noted that redemptions in private credit were real and could create an opportunity for banks to “reintermediate some of those activities.” He also said there was “no question” of excess capacity in lending and that a “properly graded commercial loan can’t return its cost of capital,” adding that the industry “may” be at an inflection point on spread and structure pressure. Gorman outlined KeyCorp’s capital priorities as supporting client growth, investing in people and technology, and highlighted artificial intelligence as a “huge opportunity” for wealth platforms, saying the company would have more to say on that in the future.
Transcript (8 segments)
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Ryan0:00
Hello and welcome to the annual meeting of shareholders of KeyCorp. Please note that today's meeting is being recorded. During the meeting, we have a question and answer session. You can submit questions or comments at any time by clicking on the Q&A icon. It is now my pleasure to turn today's meeting over to Chris Gorman, Chairman and CEO of Key. The floor is yours.
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Christopher Gorman0:18
Thank you, Ryan. Good morning, everyone. The meeting is now in session. Welcome to our 2026 annual meeting of shareholders. I am Chris Gorman, Chairman and CEO of KeyCorp. We thank everyone for being with us today through our virtual meeting platform. With me today is James Waters, Secretary of Key. James will first explain the meeting formalities. After the meeting, I will share a few highlights from the company's 2025 performance. Shareholders may submit questions at any time during the meeting by clicking the Q&A icon in the virtual meeting platform. When submitting questions, shareholders should follow the guidelines set forth in the rules of conduct available within the virtual meeting platform. James, I turn the meeting over to you.
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James Waters1:07
Thank you, Chris. The list of the corporation's shareholders as of the close of business on Friday, March 20th, 2026, the record date set for today's meeting, is available for inspection during this meeting by clicking the documents icon in the virtual meeting platform. A notice of this meeting was duly and properly mailed to shareholders, and a certificate to that effect will be filed with the meeting records. Your board of directors has authorized Computershare Investor Services, our transfer agent, to act as the inspector for the meeting. The inspector will be responsible for confirming the validity of all proxies, receiving and tabulating all votes cast, and reporting the voting results. The inspector's oath will be filed with the meeting records. The inspector has reported that we have a quorum. Accordingly, this meeting has been duly convened to transact any business properly brought before it. The order of the meeting will be as follows: first, we will elect directors; second, we will present management proposals; third, we will address questions that have been submitted by shareholders related to the proposals; fourth, we will vote on the proposals; and finally, we will announce the preliminary voting results. After the formal meeting has concluded, management will share performance highlights from the company's 2025 results and will answer general questions submitted by shareholders concerning our strategy, performance, and the financial services industry in general. At any time, speakers on behalf of Key may make statements about Key's future performance. A notice regarding forward-looking statements appears within the documents of the virtual meeting platform. Please review that statement and take note of the same. I now call your attention to the rules of conduct set forth for this meeting. These are available within the documents of the virtual meeting platform. We ask that you please review and abide by those rules. There will be a question and answer period during the meeting limited to the proposals being voted on today, and another question and answer period following the adjournment of the formal meeting for general questions regarding Key's strategy, performance, and the financial services industry in general. A representative from Key will address questions that have been submitted regarding the proposals being voted on. You may submit questions through the virtual meeting platform by clicking on the Q&A icon. We ask that questions be brief. That concludes the meeting formalities.
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Christopher Gorman4:37
Thank you, James. The first proposal concerns the election of directors to serve until the 2027 annual shareholders meeting. The size of Key's board of directors is currently set at 14 members. The nominees for election include individuals from various backgrounds in banking, finance, and corporate leadership, including retired managing directors, executive vice presidents, and chief executives from major financial institutions. Additionally, each director stands for election by the board of directors. A vote for each of the nominees is recommended. One of the longstanding strengths of Key has been the quality and dedication of the members of our board of directors. I would like to express my appreciation for the valuable service that our directors provide to Key and to you, our shareholders. I would also like to offer a special thanks to those who served on the audit committee. Ernst & Young has been selected as Key's independent auditor for 2026. If there are no questions, we will proceed to the vote for this proposal.
The next proposal is an advisory vote on Key's executive compensation. The board has presented this proposal before the shareholders as required by the Dodd-Frank Act and applicable securities laws. The board is of the opinion that Key's executive compensation program provides appropriate incentives to its executive officers and at the same time does not encourage its executive officers to take unnecessary risks. For those reasons, the board recommends that shareholders vote for this proposal. The final proposal before the shareholders is a vote to approve KeyCorp's 2026 equity compensation plan. A copy of the equity plan was included as an appendix to the proxy statement. The board believes that equity compensation is an integral part of Key's compensation program. Shareholder approval of the equity plan will allow Key to continue to provide the appropriate levels and types of equity compensation for our employees and non-employee directors. For that reason, the board recommends that shareholders vote for this proposal. I will now address any questions that have been submitted on the proposals being presented today.
If you are voting through the virtual meeting platform, please make sure you have your vote in at this time. Voting is now closed. Because we permit voting by telephone, by proxy cards, over the internet, and on the virtual meeting platform, it will take additional time to finalize the tabulation. The final tabulation will be filed with the SEC on a Form 8-K within four days. The inspector has informed me that each of the directors identified in the proxy statement has been elected to the board of directors by at least 90% of the votes cast. Second, the shareholders have ratified the appointment of Ernst & Young as the company's independent auditor for 2026. That proposal received a favorable vote of 95% of the votes cast. The shareholders have approved the advisory resolution on executive compensation, and finally, shareholders have approved the 2026 equity compensation plan, which received a favorable vote of 97% of the votes cast.
This meeting is adjourned. I will now share a few highlights from 2025. As we communicated at the beginning of 2025, we delivered revenue growth which increased 16%. Expenses grew modestly even as we concurrently made investments in our franchise. Fee income increased by 7.5%. We added approximately 10% to front-line staff across management banking, middle market, and investment banking. Total loans grew 2% in 2025, with commercial loans growing 6% driven by broad growth. We continue to maintain strong risk discipline, with charge-offs stable in basis points. We ended 2025 with a strong capital position, including a CET1 ratio of 10.4%. Looking ahead to 2026, I want to thank each of our teammates for their contributions to our performance. I am very proud of all that our team accomplished in 2025. Together, we delivered results, strengthened our franchise, and capitalized on momentum while positioning Key for continued success.
As we look to 2026, I am confident we will deliver another year of outsized revenue and earnings growth as we make progress on our path to achieving a sustainable 15% plus return on tangible common equity by 2027. I am confident in our ability to deliver value to our shareholders and our communities. I would like to thank each of you for your participation and commitment to Key. We will now be happy to answer any questions you have.