Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 219

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 219
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 additional $3.0 billion in market value of low-yielding investment securities and terminating approximately $3.0 billion of fair value hedges, resulting in a pre-tax loss of $915 million in the fourth quarter of 2024. The investment securities that were sold had a weighted average book yield of approximately 1.5% and an average duration of approximately eight years. The reinvestment of the proceeds from the repositioning was completed in December 2024, with the new securities having an average book yield of 5.5% and an average duration of approximately four years. 

In addition to the items described above, the following actions and results during 2024 also supported our overall corporate strategy. 

•We have expanded our commercial banking business in Chicago and Southern California to serve more middle market clients with our differentiated platform, which includes a full range of commercial lending and capital markets capabilities as well as payments solutions designed specifically for the segment.

•We completed core technological modernization projects of our commercial loan platform and our derivatives platform.

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•We ended the year with $61.4 billion in assets under management and administration, a record high, reflecting the strong sales production in our mass affluent segment.

•Within our Consumer Bank, we grew relationship households in excess of three percent for the second consecutive year, including growth of five to eight percent throughout our western markets.

•We remained committed to our strategy to engage a high-performing and talented workforce and fostering an inclusive environment for all. We continue to be recognized by multiple organizations for our dedication to creating an environment where all employees are treated with respect and empowered to bring their authentic selves to work. 

Business Outlook 

Consistent with the forward guidance we provided on January 21, 2025, we expect these results for full year 2025 versus full year 2024.

Category2024 BaselineFY2024 vs FY2023FY2025 (vs FY 2024)(a)Average loans$107.7 Billion(9)%down 2% to 5%Ending loans$104.3 Billion(7)%Flat vs YE 2024PE Commercial Loans$71.9 Billion(7)%up 2% to 4%Net interest income (TE)$3,810 Million(3)%up ~20%(b)Adjusted noninterest income(c)$2,645 Million+7%up 5%+Adjusted noninterest expense(c)$4,520 Million+3%up 3% to 5%Net charge-offs to average