KeyCorp CEO Touts Limited Exposure to Commercial Real Estate

KeyCorp Chief Executive Officer Chris Gorman touted his company’s contained exposure to commercial real estate lending, an area of concern for investors in regional US banks amid heightened interest rates and property vacancies.

“At Key, we are underweight commercial real estate relative to our peers,” Gorman said Tuesday during a Bank of America Corp. financial-services conference. About 13% of KeyCorp’s total loans are to non-owner-occupied commercial properties, he said, compared with 17% for its regional-banking peers, and the company has no loans in one area of particular concern. “Key has no exposure to rent-controlled properties in New York City.”