KeyCorp's Board of Directors Greenlights $1 Billion Share Buyback Plan

KeyCorp Announces Share Repurchase Program

CLEVELAND, March 13, 2025 – KeyCorp (NYSE: KEY) has officially informed the market of its Board of Directors’ recent decision to authorize a substantial share repurchase program. Under this initiative, the bank plans to repurchase up to $1.0 billion worth of its common stock, either through open market transactions or via privately negotiated agreements.

The execution of this buyback strategy is expected to commence in the latter half of 2025. KeyCorp has clarified that the specific timing and pricing of the shares purchased—alongside the exact number of shares acquired—will be determined by various factors. These will include overall market conditions, stock prices, regulatory frameworks, liquidity demands, and other pertinent considerations that could impact the company’s financial strategies.

KeyCorp, a prominent player within the financial services sector, is set to celebrate its bicentennial in 2025, marking 200 years of providing banking and financial services across the United States. Headquartered in Cleveland, Ohio, the company boasts a robust asset portfolio, which was recorded at approximately $187 billion as of December 31, 2024.

This buyback program aligns with key strategic objectives aimed at enhancing shareholder value, providing a clear signal of management's confidence in the company's future performance. As the banking sector continues to evolve amidst changing economic landscapes, initiatives like this serve as vital mechanisms for instilling investor confidence.

Strategic Rationale Behind the Buyback

Share repurchase programs are often viewed as robust strategies for companies looking to return capital to shareholders while also supporting the stock price. By repurchasing shares, KeyCorp can effectively reduce the total number of shares outstanding, which, in turn, can lead to an increase in earnings per share (EPS), assuming constant profit levels. This could potentially make the stock more attractive to investors seeking value.

Furthermore, the timing of the repurchases will depend on market conditions, allowing the firm to capitalize on price fluctuations and purchase shares when they are perceived to be undervalued.

Forward-Looking Statements

In line with the announcement, KeyCorp also issued forward-looking statements regarding the anticipated execution of the share buyback program. These statements are identified by terms such as “outlook,” “project,” and “believe,” highlighting the management’s expectations for future market performance. However, the company cautions that actual results could diverge from expectations due to various risks and uncertainties that may arise.

Company Overview

As one of the largest bank-based financial service institutions in the U.S., KeyCorp provides a comprehensive suite of services. These include deposit accounts, loans, investment services, and dedicated banking for businesses across 15 states. The firm operates through approximately 1,000 branches and 1,200 ATMs, ensuring broad accessibility to their services for both individual and corporate clients.

Their investment arm, KeyBanc Capital Markets, offers specialized corporate and investment banking services categorized under debt, equity, and advisory services. With historical roots tracing back to 1825, KeyCorp has maintained a reputation for reliability and innovation during its 200-year history.

For more information about KeyCorp and their operations, stakeholders can visit their official website. As the company embarks on this new chapter with its repurchase program, it underlines a proactive approach to financial management and shareholder engagement.

KeyBank is a member of the FDIC, showcasing its commitment to providing secure and trustworthy banking services.