CLEVELAND, March 11, 2015 /PRNewswire/ -- KeyCorp
(NYSE: KEY) announced today that the Federal Reserve did not object
to Key's proposed capital plan submitted during the 2015
Comprehensive Capital Analysis and Review. The capital plan,
which occurs over a five-quarter time period, includes:
- A common share repurchase program of up to $725 million.
- An increase in the quarterly common share dividend from
$0.065 per share up to $0.075 per share. Key's Board of Directors will
consider the potential dividend increase in May.
- An additional potential increase in the quarterly common share
dividend, up to $0.085 per share,
which will be considered by the Board of Directors in 2016, for the
fifth quarter of the 2015 capital plan.
Share repurchases under the capital plan have been authorized by
Key's Board of Directors and include repurchases to offset
issuances of common shares under Key's employee compensation plans.
Key intends to repurchase its common shares through the open market
or in privately negotiated transactions over a five quarter
time-period, which differs from prior year authorizations that
occurred over a four quarter time-period. The Company anticipates
repurchasing common shares under the 2015 capital plan through
June 30, 2016. The reacquired shares
will be held as treasury shares and may be reissued for various
corporate purposes.
Beth E. Mooney, Key's Chairman
and Chief Executive Officer, stated, "We are pleased that we
received no objection to our capital plan from the Federal
Reserve. This provides us with the ability to increase our
dividends and continue to repurchase common shares, consistent with
our capital priorities. After returning 82% of net income to
shareholders in 2014, Key remains one of the best capitalized banks
in its peer group. We are well positioned to execute on our
strategic priorities and grow our businesses, while remaining
disciplined in managing capital for our shareholders."
About Key
KeyCorp was organized more than 160 years ago and is
headquartered in Cleveland, Ohio.
One of the nation's largest bank-based financial services
companies, Key has assets of approximately $94 billion.
Key provides deposit, lending, cash management and investment
services to individuals, small and medium-sized businesses under
the name of KeyBank National Association. Key also provides a broad
range of sophisticated corporate and investment banking products,
such as merger and acquisition advice, public and private debt and
equity, syndications and derivatives to middle market companies in
selected industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com/. KeyBank is Member
FDIC.
This release contains forward-looking statements, including
statements about Key's capital actions. Forward-looking statements
can be identified by words such as "plan," "potential," "expect,"
"anticipate," "intend," or "estimate." Forward-looking statements
represent management's current expectations regarding future
events. If underlying assumptions prove to be inaccurate or unknown
risks arise, actual results could vary materially from these
expectations. Factors that could cause Key's actual results to
differ from those described in the forward-looking statements can
be found in KeyCorp's Form 10-K for the Year ended December 31, 2014, which has been filed with the
Securities and Exchange Commission and is available on Key's
website (www.key.com/ir) and on the Securities and Exchange
Commission's website (www.sec.gov). These factors may include,
among others: deterioration of commercial real estate market
fundamentals, defaults by our loan counterparties or clients,
adverse changes in credit quality trends, declining asset prices,
our concentrated credit exposure in commercial, financial and
agricultural loans, and unanticipated changes in our liquidity
position.
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SOURCE KeyCorp