KeyBank has been preparing for market fluctuations and will evaluate niche acquisitions that come its way. 

“We’ve continued to invest in the business, in our technology and hiring people,” Christopher M. Gorman, chairman and chief executive, said during the bank’s earnings call today. “We’ll continue to look at niche acquisitions.”

The $184 billion bank is eyeing technology and fintech companies because it has a “good track record of successfully integrating entrepreneurial groups into” its operations, Gorman said. 

According to Crunchbase, since 2020, KeyBank has acquired: 

• AQN Strategies, an analytics-driven consultancy, in May 2021 for an undisclosed amount; 

• XUP Payments, a B2B payments service provider, in November 2021 for an undisclosed amount; and 

• GradFin, a student loan management company, in May 2022 for an undisclosed amount. 

The bank has been preparing for fluctuations in the market and is ready “to deal with whatever comes,” Gorman said. 

“We have ample liquidity, ending the quarter with over 30% of our balance sheet in cash and cash equivalents,” he said. 

The bank reported cash and cash equivalents of $19.2 billion on its balance sheet in Q1, up 25% year over year, according to its earnings report. 

THE BIG PICTURE: KeyBank has increased its tech spend amid uncertainty to maintain a “throughout the year consistent” investment cycle, Gorman said. 

“Noninterest expenses of $1.13 billion decreased 8% from the prior quarter and increased1% YoY,” Gorman said, adding that higher tech-related investments and personnel cost were among the main drivers during the first quarter. 

Other major FIs like JPMorgan and Citi increased tech spending during the quarter. The $3.4 trillion JPMorgan increased its tech spend by 6% YoY to $2.6 billion, according to the company’s earnings report. 

BY THE NUMBERS: During the quarter, KeyBank reported: 

• Revenue of $1.7 billion, up 15.7% YoY; 

• Net interest income of $1.1 billion, up 42% YoY; and 

• Total deposits of $148.5 billion, up 4% YoY. 

OF NOTE: KeyBank is celebrating its 200th anniversary in 2025 and has pledged to donate $200,000 to Cleveland Guardians Charities, a youth sports organization, according to the bank’s April 12 release. 

MARKET REACTION: Shares of KeyCorp (NYSE: KEY) were down TKTK% from market open to $TKTK as of market close today. KeyCorp has a market capitalization of $TKTK billion.