KeyBank spends $800 million annually on technology and expects expenses to grow in 2025 as it continues to invest in overall operations.  

“The reason we’ve been able to invest is we took $400 million of expenses out last year just for the purpose of being able to invest in people and technology and the businesses that we are trying to grow,” Chief Executive Chris Gorman said during today’s second-quarter earnings call.  

Cloud migration is one key area of investment, Gorman said. 

BY THE NUMBERS: KeyBank reported in Q2: 

• Noninterest income grew 3% YoY; 

• Equipment expenses dropped 9% YoY to $20 million; 

• Efficiency ratio increased to 70% from 67.5% in Q2 2023;  

• Revenue fell 4.3% YoY to $1.5 billion; and 

• Noninterest expenses remained flat YoY at $1.1 billion. 

TRANSACTION: During the quarter the bank rolled out its virtual account managed solution, Key Virtual Account Management, with payments platform Qolo, according to a May 7 KeyBank release. 

MARKET REACTION: KeyBank shares were trading down 4% at $15.58 at 3 p.m. ET Thursday. KeyBank has a market capitalization of $14.7 billion.   

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