Nathan Stein's questions to KeyCorp (KEY) leadership • Q1 2025
Question
Nathan Stein from Deutsche Bank requested elaboration on how KeyCorp gains market share during market dislocations, particularly when clients are delaying new projects. He also asked for the specific drivers behind the elevated gross charge-offs in the commercial real estate (CRE) portfolio during the quarter.
Answer
Chairman and CEO Christopher Gorman provided an example of using Key's balance sheet to provide bridge financing for real estate clients when the CMBS market is volatile or unavailable. CFO Clark Khayat addressed the CRE charge-offs, explaining they were not broad-based but were driven by the resolution of just two specific loans, and that the overall health of the CRE portfolio is improving.