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Keycorp/New · 8-K · For 10/17/02

Filed On 10/17/02 3:50pm ET · SEC File 1-11302 · Accession Number 950152-2-7646

  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

10/17/02  Keycorp/New                       8-K{5,7,9} 10/17/02    2:34                                     Bowne of Cleveland/FA

Current Report · Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                        17     26K 
 2: EX-99.1     Press Release                                         17    111K

8-K · Current Report
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (RTF, XML, et al.) Financial Statements and Exhibits Other Events and Regulation Fd Disclosure Regulation Fd Disclosure
1	1st Page
2	Item 5. Other Events and Regulation Fd Disclosure
"	Item 7. Financial Statements and Exhibits
"	Item 9. Regulation Fd Disclosure

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15d of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 17, 2002

[KeyCorp LOGO]
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)

        Ohio                          0-850                 34-6542451
-------------------------------    ----------------------    -------------------
(State or other jurisdiction of    Commission File Number    (I.R.S. Employer   
incorporation or organization)                               Identification No.)

127 Public Square, Cleveland, Ohio                            44114-1306  
----------------------------------------                     -------------------
(Address of principal executive offices)                         (Zip Code)     

Registrant's telephone number, including area code: (216) 689-6300

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ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE                               
-----------------------------------------                       

On October 17, 2002, the Registrant issued a press release announcing its       
earnings results for the three- and nine-month period ended September 30, 2002. 
This press release, dated October 17, 2002, is attached as Exhibit 99.1 to this 
report.                                                                         

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS                                       
---------------------------------                               

(c)     Exhibits                                                                
--------                                                        

    99.1 The Registrant's October 17, 2002, press release announcing its
     earnings results for the three- and nine-month period ended
September 30, 2002.                                   

ITEM 9. REGULATION FD DISCLOSURE                                                
------------------------                                        

On October 17, 2002, the Registrant conducted a conference call/webcast to      
discuss its quarterly earnings and currently anticipated earnings trends. The   
slide presentation reviewed by the Registrant in the conference call/webcast    
follows as Annex A to this Item 9.                                              

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                                                                               1

 Annex A

 THIRD QUARTER 2002 REVIEW
OCTOBER 17, 2002

SPEAKERS:        HENRY MEYER              
   JEFF WEEDEN
  LEE IRVING
     KEVIN BLAKELY

 CONFERENCE CALL: 913-981-4900  CODE: 457513
REPLAY:          402-398-4261             

                                                                  [KeyCorp LOGO]

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                                                                               2

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
FORWARD-LOOKING STATEMENT DISCLOSURE

The conference call and discussion, including related questions and answers, and
presentation materials, contain forward-looking statements about issues like    
anticipated fourth quarter and full-year 2002 earnings, anticipated level of net
loan charge-offs and nonperforming assets and anticipated improvement in        
profitability and competitiveness. Forward-looking statements by their nature   
are subject to assumptions, risks and uncertainties. Actual results could differ
materially from those contained in or implied by such forward-looking statements
for a variety of factors including: changes in interest rates; continued        
weakness in the economy, which could materially impact credit quality trends and
the ability to generate loans; failure of the capital markets to function       
consistent with customary levels; delay in or inability to execute strategic    
initiatives designed to grow revenues and/or manage expenses; consummation of   
significant business combinations or divestitures; new legal obligations or     
restrictions or unfavorable resolution of litigation; further disruption in the 
economy or the general business climate as a result of terrorist activities or  
military actions; and changes in accounting, tax or regulatory practices or     
requirements.                                                                   

                                                                  [KeyCorp LOGO]

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                                                                               3

STRATEGIC OVERVIEW                                                              

* COMPLETED MANAGEMENT RESTRUCTURING                                            
- JEFF WEEDEN APPOINTED NEW CFO                                             

* ANNOUNCED ACQUISITION OF UNION BANKSHARES                                     

* CONTINUED PROGRESS ON STRATEGIC INITIATIVES                                   
- AUTO LOANS/ LEASES REDUCED BY $2.3 BILLION SINCE 5/01                     
- RUNOFF PORTFOLIO REDUCED BY $.9 BILLION SINCE 5/01                        

* STOCK OPTIONS TO BE EXPENSED IN 2003                                          

                                                                  [KeyCorp LOGO]

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                                                                               4

FINANCIAL SUMMARY - 3Q02                                                        

* EPS OF $0.57                                                                  

* SLIGHTLY HIGHER NET INTEREST MARGIN                                           

* TOTAL LOANS DOWN DUE TO WEAK DEMAND                                           

* EXPENSES DOWN 4% FROM YEAR-AGO QUARTER                                        

* REPURCHASED 1.8 MILLION SHARES                                                

                                                                  [KeyCorp LOGO]

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                                                                               5

NET INTEREST INCOME & MARGIN (TE)                                               

$ IN MILLIONS                                                               

[BAR CHART] 

               3Q01       4Q01       1Q02      2Q02       3Q02
Net Interest Income     $730       $726       $702      $721       $722         

NET INTEREST MARGIN    3.85%      3.98%      3.93%     3.98%      3.99%         

AVG. EARNING ASSETS  $75,687    $72,706    $71,981   $72,579    $72,083         

                                                                  [KeyCorp LOGO]

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                                                                               6

NONINTEREST INCOME 3Q02 VS. 2Q02                                                
IN MILLIONS                                                                     

Noninterest Income 2Q02                                $448                     

Loan Fees                                    7                              
Investment Banking & Capital Markets       (13)                             
Trust & Investment Services                ( 7)                             
All other-net                              ( 3)                             
              ----
Total                                      (16)                             

Noninterest Income 3Q02                                $432                     

                                                                  [KeyCorp LOGO]

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                                                                               7

NONINTEREST EXPENSE 3Q02 VS. 2Q02                                               
IN MILLIONS                                                                     

Noninterest Expense 2Q02                             $665                   

Personnel                                  (3)                          
Marketing                                   3                           
All other                                  (6)                          
                 ---
Total                                      (6)                          

Noninterest Expense 3Q02                               $659                     

                                                                  [KeyCorp LOGO]

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                                                                               8

LINE OF BUSINESS HIGHLIGHTS                                                     
(3Q02 VS. 2Q02)                                                                 

KEY CONSUMER BANKING                                                        
--------------------                                                        
 - Net income up 6% - Revenue growth in Retail Banking (up 2%), Small Business
(up 4%) and National Home Equity (up 3%)                                
- Revenue down 10% in Indirect Lending - primarily due to downsizing of auto
business                                                                

KEY CORPORATE FINANCE                                                       
---------------------                                                       
- Net income up 5% - (3% revenue growth)                                    
- Average deposits up 9%                                                    

KEY CAPITAL PARTNERS                                                        
--------------------                                                        
- Net income down 12% due to declining equity markets                       

                                                                  [KeyCorp LOGO]

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                                                                               9

BALANCE SHEET MANAGEMENT                                                        

* BUILDING CAPITAL IN UNCERTAIN TIMES                                           
- CAPITAL RATIOS AT HIGH END OF RANGES                                      
- FLEXIBILITY -- INVESTMENT IN HIGHER RETURN BUSINESSES/ DIVIDENDS/ SHARE   
REPURCHASE                                                              

* FOCUS ON GROWING PROFITABLE, STABLE CORE DEPOSITS                             

                                                                  [KeyCorp LOGO]

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                                                                              10

NET CHARGE-OFFS BY LOAN TYPE                                                    

  IN MILLIONS                        3Q01      4Q01      1Q02      2Q02     3Q02
                                     ----      ----      ----      ----     ----

CONTINUING PORTFOLIO                                                        
  Commercial                          $48       $62       $69       $76      $84
  Consumer                             68        71        67        59       51
                                      ---       ---       ---       ---      ---
                                      116       133       136       135      135

  RUN-OFF PORTFOLIO & LOAN SALES       57        87        70        68       50
                                      ---       ---       ---       ---      ---
  TOTAL NET C/O                      $173      $220      $206      $203     $185

                                                                  [KeyCorp LOGO]

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                                                                              11

ASSET QUALITY INDICATORS                                                        

  $ IN MILLIONS                         3Q01     4Q01     1Q02     2Q02     3Q02
                                        ----     ----     ----     ----     ----

  Nonperforming Loans                   $885     $910     $973     $957     $987
  to EOP Loans                         1.37%    1.44%    1.52%    1.50%    1.57%

  Nonperforming Assets                  $913     $947   $1,012     $995   $1,017
  to EOP Loans + OREO                  1.41%    1.49%    1.58%    1.56%    1.61%

  Net C/O                               $173     $220     $206     $203     $185
  to Average Loans                     1.04%    1.37%    1.32%    1.27%    1.16%

  Allowance                           $1,174   $1,677   $1,607   $1,539   $1,489
  to Total Loans                       1.82%    2.65%    2.51%    2.41%    2.37%
  to Nonperforming Loans                133%     184%     165%     161%     151%

                                                                  [KeyCorp LOGO]

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                                                                              12

RUN-OFF PORTFOLIO &                                                             
NONREPLENISHING RESERVES                                                        

IN MILLIONS                                                                     

                            9/30/01    12/31/01    3/31/02    6/30/02    9/30/02
                            -------    --------    -------    -------    -------

COMMITMENTS                  $2,019      $1,694     $1,532     $1,143     $1,005

OUTSTANDINGS                  1,176       1,023        941        724        662

ALLOWANCE FOR LOAN LOSSES       172         275        205        137         87

NPLS                            233         231        208        132         91

                                                                  [KeyCorp LOGO]

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                                                                              13

ASSET QUALITY OUTLOOK                                                           

NPLS                           Flat                                         

TOTAL NET C/Os                 Flat                                         

WATCH LIST                     Flat                                         

RESERVE LEVEL                  Adequate                                     

                                                                  [KeyCorp LOGO]

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                                                                              14

FOURTH QUARTER 2002 OUTLOOK                                                     
(COMPARED WITH 3Q02)                                                            

REVENUE                Relatively stable                                        

EXPENSES               Stable to slight increase                                

TAX RATE (TE)          Approximately 33%                                        

EPS                    Relatively stable                                        

                                                                  [KeyCorp LOGO]

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 SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the        
Registrant has duly caused this report to be signed on its behalf by the        
undersigned thereunto duly authorized.                                          

                                             KEYCORP
                                               ---------------------------------
                                              (Registrant)

Date: October 17, 2002                                  /s/ Lee Irving          
                                               ---------------------------------
                            By: Lee Irving
                                              Executive Vice President
                                                  and Chief Accounting Officer

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Dates Referenced Herein and Documents Incorporated By Reference

		Referenced-On Page
This 8-K Filing	Date	First	Last	Other Filings

	9/30/02	2		10-Q
Filed On / Filed As Of / For The Period Ended	10/17/02	1	17

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Keycorp/New · 8-K · For 10/17/02

Filed On 10/17/02 3:50pm ET · SEC File 1-11302 · Accession Number 950152-2-7646

Current Report · Form 8-KFiling Table of Contents

8-K · Current ReportDocument Table of Contents

Dates Referenced Herein and Documents Incorporated By Reference

Current Report · Form 8-K
Filing Table of Contents

8-K · Current Report
Document Table of Contents