KeyBank invests in clients, people, technology
Bank’s noninterest expense increased 19% to $1.4B
KeyBank prioritized its investment in technology during the fourth quarter as it looks to build the bank’s franchise to ensure competitiveness.
“Our first investments are always going to be good clients and our people. And then in this world, you’ve got to continue to invest in technology,” Chief Financial Officer Clark Khayat said during today’s Q4 2023 earnings call.
During the quarter, the $190 billion KeyBank’s noninterest expense increased 19% year over year to $1.4 billion, with equipment expense accounting for $24 million, according to the bank’s earnings release.
BIGGER PICTURE: As the bank invests in technology, AI is part of the initiative, Robbi Armstrong, vice president and group product manager of conversational AI at KeyBank, previously told Bank Automation News.
Uses of AI the bank is exploring include contact center implementation, large language models and compliance, Armstrong said.
BY THE NUMBERS: KeyBank reported in Q4:
- Net interest income grew 24.4% YoY to $928 million;
- Total revenue fell 19% YoY to $1.5 billion; and
- Average deposits fell 0.4% YoY to $145.1 billion.
NOTEWORTHY: During the quarter, the bank named Darrin Benhart as its chief risk officer effective Jan. 1, according to a Jan. 9 release.
He succeeds Mark Midkiff, who announced his retirement in November.
Benhart joined KeyBank in July 2022 and served as the bank’s deputy chief risk officer before being appointed to the new role, according to the release.
“During Darrin’s extensive career, he has worked with top management teams in the financial services industry across a wide range of risk disciplines, including credit and market risk, commercial credit policy and climate change,” Chief Executive Chris Gorman said in the release.
Benhart will report to Gorman.
FUTURE LOOK: Chief Transformation Officer Dominic Cugini will speak at Bank Automation Summit U.S. 2024 on Tuesday, March 19, at the Omni Nashville in Nashville, Tenn.
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Get ready for the Bank Automation Summit U.S. 2024 in Nashville on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.
