KeyCorp (KEY) risk factors: FY2025 10-K

1. Should the fundamentals of the commercial real estate market deteriorate, our financial condition and results of operations could be adversely affected.
2. We are subject to the risk of defaults by our loan clients and counterparties.
3. Declining asset prices could adversely affect us.
4. Various factors may cause our allowance for loan and lease losses to increase or to be inadequate.
5. Geopolitical destabilization could adversely impact our loan portfolios.
6. We are subject to interest rate risk, which could adversely affect net interest income.Interest rates
7. Our profitability depends upon economic conditions in the geographic regions where we have significant operations and in certain market segments in which we conduct significant business.
8. The soundness of other financial institutions could adversely affect us.
9. Capital and liquidity requirements imposed by banking regulators and the credit rating agencies may require banks and BHCs to maintain more and higher quality capital and more and higher quality liquid assets.reworded
10. Federal agencies’ actions to ensure stability of the U.S. economy and financial system may have costly or disruptive effects on us.
11. We rely on dividends by our subsidiaries for most of our funds.
12. Our credit ratings affect our liquidity position.
13. A loss of customer deposits or an adverse change in deposit mix could increase our funding costs and/or impair our liquidity.new
14. We and third parties on which we rely (including their downstream service providers) may experience a cyberattack, technology failure, information system or security breach or interruption.Cybersecurity
15. We rely on third parties to perform significant operational services for us, and their failure to perform to our standards or other issues of concern with them could harm us.
16. Our framework for managing risks and mitigating losses may not be effective.
17. We are, and may in the future be, subject to claims, litigation, arbitration, investigations, and governmental proceedings, which could result in significant financial liability and/or reputational harm.
18. Our controls and procedures may fail or be circumvented, and our methods of reducing risk exposure may not be effective.
19. Our operations and financial performance could be adversely affected by severe weather and natural disasters, both directly and as a result of impacts on our customers.reworded
20. Our development and use of AI, including through third parties, exposes us to inherent risks that may adversely impact KeyCorp.newAI
21. We are subject to complex and evolving laws and regulations regarding privacy and cybersecurity, which could limit our ability to pursue business initiatives, increase the cost of doing business and subject us to compliance risks and potential liability.Cybersecurity
22. We operate in a highly competitive industry.
23. Maintaining or increasing our market share depends upon our ability to adapt our products and services to evolving industry standards and consumer preferences, while maintaining competitive products and services.
24. We may not be able to attract and retain skilled people.
25. Acquisitions or strategic partnerships may disrupt our business and dilute shareholder value.
26. Scotiabank holds a significant equity interest in our business and may exercise influence over us, including through its ability to designate up to two directors to our Board of Directors.
27. Damage to our reputation could significantly impact our business and major stakeholders.
28. Differing views on corporate responsibility and sustainability could adversely affect our reputation and our business and results of operations.reworded
29. Changes in accounting policies, standards, and interpretations could materially affect how we report our financial condition and results of operations.
30. Impairment of goodwill could require charges to earnings, which could result in a negative impact on our results of operations.

Read these in Item 1A · See the changes

Headings in the FY2024 10-K with no match this year.

1. We have concentrated credit exposure in commercial and industrial loans, commercial real estate loans, and commercial leases.
2. A worsening of the U.S. economy and volatile or recessionary conditions in the U.S. or abroad could negatively affect our business or our access to capital markets.
3. We are subject to liquidity risk, which could negatively affect our funding levels.
4. We are subject to a variety of operational risks.
5. Societal and governmental responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers.
6. The increased use of remote work infrastructure has expanded potential attack vectors and resulted in increased operational risks.
7. We are subject to extensive government regulation, supervision, and tax legislation.
8. We may not realize the expected benefits of our strategic initiatives.
9. We rely on quantitative models to manage certain accounting, risk management, capital planning, and treasury functions.
10. The preparation of our consolidated financial statements requires us to make subjective determinations and use estimates that may vary from actual results and materially impact our financial condition and results of operations.