KeyCorp in Ohio swears off bank M&A, raises buyback projections

KeyCorp in Cleveland is taking itself off the board when it comes to buying banks.

The company made it clear during its presentation at a conference hosted by Goldman Sachs, stating in a slide that it is “not pursuing depository acquisitions.”

Key also noted in a slide that it expects to repurchase about $200 million of its stock in the fourth quarter.

The updates come shortly after HoldCo Asset Management went public with pressure on Key to buy back more stock and swear off acquisitions. The activist investor has also been calling on the board to oust Chairman and CEO Chris Gorman.

“The buyback and M&A points address concerns raised last week by” HoldCo, Scott Siefers, an analyst at Piper Sandler, wrote in a client note.

“Unclear if the statements will satisfy the activist,” Siefers added. “From our standpoint, the repurchase commentary is a plus, the underlying momentum looks stronger than expected … and the M&A statement should really clean up any lingering investor confusion on Key’s aspirations.”