KeyBank 2013 Annual Report Download - page 9

intelligence, data and tools, all of which
further enhance our commitment to
strong risk management. Maintaining
a moderate risk profile, with consistency
through the cycle, will serve as a
quantifiable testament to the effectiveness
of our strategy and our risk discipline.
Disciplined capital management
Key’s capital priorities – organic growth,
dividends, share repurchases, and
opportunistic growth – are the foundation
to how we manage, deploy, invest, and
return capital. Remaining consistent
with these priorities is an integral part of
maximizing shareholder value and has
allowed us to return a peer-leading 76%
of net income to shareholders through
dividends and share repurchases in 2013.
With our increased payout to shareholders
and the significant investments we made
in growing our businesses, our Tier 1
common ratio remained above 11%. Our
strong capital position provides us with
a solid foundation for the capital planning
process and stress testing we participate
in each year.
Board of Directors
Long-standing strengths of our company
include the quality and diversity of our
Board of Directors and our strong
corporate governance practices. Our
Directors are regional and national
business leaders who have demonstrated
their financial literacy, risk management
insight, integrity, and sound independent
business judgment.
In January, we welcomed our newest
member to the Board, Demos Parneros.
Demos is the President of North American
Stores and Online for Staples, Inc., and
brings decades of experience executing
client-focused strategies. We also thank
Edward Campbell for his 15 years of
service to Key’s Board of Directors, as
he will not be standing for re-election this
year. He leaves Key a stronger institution
due to his contributions and we wish
him well in his future endeavors.
Going forward
While the slow growth economy, low
interest rate environment, and other
macroeconomic challenges are likely
to persist in the near term, I am
encouraged by the progress we have
made, and I am energized by the
opportunities ahead. Our focus and
resolve drove results in 2013 as we
leveraged our distinctive business model,
strengthened our execution, and became
a more efficient and productive company.
Our well-defined strategy provides
us with a roadmap for growth as well
as the ability to continue to meet
the commitments we make to our
shareholders. In the coming year, I look
forward to driving positive operating
leverage, effectively managing risk,
and delivering a disciplined approach
to capital management. By building on
our momentum, rigor and discipline, we
can execute on these commitments and
continue to grow and improve our returns.
I’m proud of our team, our progress, and
the journey we are on. As a result, I am
excited for and encouraged by what lies
ahead and look forward to sharing more
successes with you in years to come.
Sincerely,
Beth E. Mooney
Chairman and Chief Executive Officer
March 2014
7
KeyBank volunteers help restore a mural at Northwest Center Kids at Queen Anne in Seattle.
KeyCorp
2013 Annual Report
59%
Stock price increase
in 2013.
We are dedicated
to meeting the
commitments
we make to our
shareholders.