Randy Paine, the President of KeyBanc Capital Markets (KEY), Interviews with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - April 29, 2014 - The Wall Street Transcript has just published its Money Center Banks Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Investing in Financial Services - Regulatory Outlook Gains Clarity - Investing in Regional Banks - Interest Rates and Loan-Growth Strategies - Challenging Revenue Environment - Fed Capital Review Program - Opportunities in Larger Banks

Companies include: KeyCorp (KEY) and many more.

In the following excerpt from the Money Center Banks Report, the President of KeyBanc Capital Markets (KEY) discusses company strategy and the outlook for this vital industry:

TWST: Are there any parts of the business, whether it's a certain vertical or a certain type of service, in which you see good opportunities for growth? And how are you positioning the company to take advantage of those particular opportunities?

Mr. Paine: We have been in a growth mode coming out of the great recession. Over the past three years, our headcount has expanded by more than 100 people, so we're up to about 600 people today. Our industry verticals include Consumer, Industrial, Healthcare, Technology, Oil & Gas, Real Estate, and Utilities, Power & Renewables. KeyBanc Capital Markets also serves government and not-for-profit entities through our Public Sector/Public Finance Group. We support each industry vertical with a broad spectrum of corporate and investment banking capabilities, which include full-service debt and equity capital markets platforms - with sales, trading and equity research in each area - M&A advisory and traditional corporate banking capabilities, meaning Key's balance sheet and a full-service syndicated finance platform.

Over the past three years, each of our industry verticals, as well as all of our product areas, have expanded. This expansion has translated into consecutive record-revenue years for KeyBanc Capital Markets in 2012 and 2013, and we just finished the best first quarter in the history of our firm. This performance validates the niche KeyBanc Capital Markets has established. It also confirms that our clients value the industry expertise and capabilities we provide.

TWST: You mentioned that the first quarter was a record quarter for you, and I know that KeyCorp released their Q1 results today. Are you able to share any highlights from KeyBanc Capital Markets' performance in the first quarter?

Mr. Paine: KeyCorp had a good first quarter. Our net income was $232 million versus $196 million in the first quarter of 2013, and that was driven by strong loan growth and expense management as well as strength within our corporate banking area. KeyBanc Capital Markets is a part of the corporate bank, and as I mentioned previously, we had a record first quarter. We don't release specific financial details related to KeyBanc Capital Markets publicly, but I can say that we had a tremendous first quarter in M&A advisory. Our leveraged finance business was also very strong, and we had very solid loan growth as well.

TWST: On the Q4 2013 earnings call, KeyCorp CEO Beth Mooney talked about the goal to reduce expenses by $200 million by the first quarter of this year. How did or will these cost-cutting measures affect KeyBanc Capital Markets?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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