KeyBank 2015 Annual Report Download - page 3

To our fellow shareholders:
In 2015, Key made significant
progress by improving our
financial performance, executing
against our strategic priorities,
and making investments that
will improve our returns and
create long-term value for you,
our shareholders. We saw strong
levels of retail and corporate client growth, record
results in a number of our fee-based businesses, and
improved productivity across our franchise.
For the year, net income from continuing operations
was $892 million, or $1.05 per share, and we returned
more than $700 million of net income to shareholders
through dividends and share repurchases.
After increasing an average of 24% for each of the
three years prior to 2015, Key’s stock price declined
by 5% during the year, compared to a median decline
for our peer group of 2%. The pressure on bank stocks
has continued into early 2016 given investor concerns
over the direction of the economy and the impact of
lower interest rates. Despite market weakness, we
remain optimistic about our outlook and the future
performance of our company.
During the year, we announced the acquisition of
Buffalo, N.Y.-based First Niagara Financial Group,
a compelling opportunity that we are confident will
accelerate our progress in becoming a top-performing
regional bank and help drive long-term value.
This year, Key remains Focused Forward. Building
on our strong results in 2015 and successfully
integrating First Niagara are two of our top priorities
in 2016, and I am eager for what lies ahead. We will
continue to execute on our strategy and invest in
our businesses to drive growth and deliver on our
commitments to our shareholders.
Focused Forward: Investing for growth
The investments we made in our talent, businesses,
and capabilities were important contributors to our
growth in 2015. We added bankers and remixed our
headcount to increase client-facing roles in both the
Community Bank and Corporate Bank. These actions
included hiring new senior bankers during the year
to drive client acquisition and expansion, while also
improving productivity across our franchise. We are
seeing results from our efforts, with total retail clients
growing at four times the market rate in 2015. We
continue to invest in talented people who can deliver
the full breadth of KeyBank to our clients.
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KeyCorp
2015 Annual Report
LETTER TO SHAREHOLDERS
Beth Mooney
Chairman and Chief Executive Officer
KeyCorp
We are Focused Forward, executing
our strategy, growing our businesses,
remaining disciplined, and delivering on
our commitments to our shareholders.
Beth Mooney