Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 166

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 166
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Table of contents

ITEM 1A.  RISK FACTORS

Summary of Risk Factors 

The following is a summary of some of the material risks and uncertainties that could have an adverse effect on our business.

•Credit Risk

◦We have concentrated credit exposure in commercial and industrial loans, commercial real estate loans, and commercial leases.

◦Should the fundamentals of the commercial real estate market deteriorate, our financial condition and results of operations could be adversely affected.

◦We are subject to the risk of defaults by our loan clients and counterparties.

◦Declining asset prices could adversely affect us.

◦Various factors may cause our allowance for loan and lease losses to increase or to be inadequate.

◦Geopolitical destabilization could adversely impact our loan portfolios.

•Market Risk

◦A worsening of the U.S. economy and volatile or recessionary conditions in the U.S. or abroad could negatively affect our business or our access to capital markets.

◦We are subject to interest rate risk, which could adversely affect net interest income.

◦Our profitability depends upon economic conditions in the geographic regions where we have significant operations and in certain market segments in which we conduct significant business.

◦The soundness of other financial institutions could adversely affect us.

•Liquidity Risk

◦We are subject to liquidity risk, which could negatively affect our funding levels.

◦Capital and liquidity requirements imposed by banking regulations require banks and BHCs to maintain more and higher quality capital and more and higher quality liquid assets.

◦Federal agencies’ actions to ensure stability of the U.S. economy and financial system may have costly or disruptive effects on us.

◦We rely on dividends by our subsidiaries for most of our funds.

◦Our credit ratings affect our liquidity position.

•Operational Risk

◦We are subject to a variety of operational risks.

◦We and third parties on which we rely (including their downstream service providers) may experience a cyberattack, technology failure, information system or security breach or interruption.

◦We rely on third parties to perform significant operational services for us, and their failure to perform to our standards or other issues of concern with them could harm us.

◦Our framework for managing risks and mitigating losses may not be effective.

◦We are, and may in the future be, subject to claims, litigation, arbitration, investigations, and governmental proceedings, which could result in significant financial liability and/or reputational harm.

◦Our controls and procedures may