KeyCorp: M&A & Private Equity Activity As A Critical Factor Driving Growth! 

KeyCorp’s third-quarter 2024 results indicate several strategic movements aimed at bolstering the company’s financial position, albeit amidst challenges that need keen investor consideration. On the positive side, KeyCorp received an initial minority investment from Scotiabank amounting to $821 million, which it utilized to reposition a portion of its securities portfolio. This move was timely as it coincided with market highs, enabling the bank to sell over $7 billion in securities and reinvest in shorter duration, higher-yielding agency MBS. This repositioning is expected to enhance quarterly net interest income by more than $40 million starting in the fourth quarter. Additionally, KeyCorp anticipates the remainder of the $2.8 billion Scotiabank investment in the first quarter of 2025, pending regulatory approval, which could further strengthen its capital profile.