The Bank Slate


Key aims to shed $10B of risk-weighted assets this year

KeyCorp in Cleveland aims to reduce its risk-weighted assets by $10 billion this year.

The $195 billion-asset company disclosed during the Barclays Global Financial Services Conference that it will exit non-relationship businesses and shed non-strategic assets.

“We will continue to prioritize full relationships,” Christopher Gorman, Key’s chairman, president and CEO, said during his presentation. The bank also plans to return to securitizing and selling student loans.

“We have literally ripped through our portfolio in any business” that is falling sort of satisfactory returns, Gorman added. “Obviously, the number of businesses that are not returning at our hurdle levels just went up given that the amount of capital has gone up and cost of capital has gone up.”

Key reiterated guidance it gave in July that average loans will fall by 1% to 3% in both the third and fourth quarters.

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