KeyCorp (KEY) is a large regional bank with around $94 billion in assets. Its operations spread over the Pacific, Rocky Mountain, Indiana, Ohio, Michigan, New York, and New England regions. The bank’s operations are divided into two main segments: Community Bank and Corporate Bank.
KeyCorp’s Community Bank segment serves individuals and small to mid-sized businesses. It offers deposit, investment, lending, credit card, wealth management, and business advisory services.
The company’s Corporate Bank segment focuses principally on serving middle-market clients. It offers syndicated finance, capital markets, equipment finance, commercial mortgage banking, and financial advisory and public finance services.
The above chart shows the company’s traditional banking and capital market offerings. It also shows targeted industries for the corporate bank and community and corporate bank’s target client size. KeyCorp forms ~1.4% of the SPDR S&P Regional Banking ETF (KRE) and ~3.1% of the iShares U.S. Regional Banks ETF (IAT).
KeyCorp competes with national banks such as JP Morgan (JPM) and Bank of America (BAC) in various service segments. Its regional peers include U.S. Bancorp (USB), PNC Financial Services (PNC), Fifth Third Bancorp (FITB), Citizens Financial Group (CFG), and others.
These banks have some overlap with KeyCorp’s geography of operations. Regional banks typically operate in a few states with a strong hold in some MSAs (metropolitan statistical areas). The banks compete with other regional banks in various MSAs. A competitor of KeyCorp in one MSA might not even be present in some other area of KeyCorp’s operation.
Such complexity makes it difficult to make a direct comparison of regional banks. Regional banks are typically compared with other regional peers based on asset size.
In this series, we’ll take a look at KeyCorp’s business, loan portfolio, asset quality, and more. You’ll also learn how its stock compares with its peers’. We’ll also discover what key factors to watch for in KeyCorp stock so you can make more sophisticated investment decisions.