KeyCorp Expands US Middle Market Footprint and Targets European M&A

KeyCorp made gains across its priority growth businesses of investment banking, commercial payments and wealth management in the second quarter, Chairman, CEO and President Chris Gorman said Tuesday (July 14).

The bank’s investment banking pipelines grew 9% over the previous quarter, its commercial payments business delivered double-digit fee growth over the past year, and its assets under management reached a record high of $74 billion, Gorman said in an earnings release.

Collectively, the priority fee-based businesses of wealth, investment banking and commercial payments grew 8% in the first half compared to the same period in 2025, according to a presentation released Tuesday.

“While the macroeconomic environment remains uncertain, our momentum continues to be strong,” Gorman said during a Tuesday earnings call. “We are seeing healthy client engagement, solid activity levels across our businesses, and remain well-positioned to perform through a range of potential economic scenarios.”

KeyCorp provides banking services to individuals and businesses in 15 states under the name KeyBank National Association, and it provides corporate and investment banking products to middle-market companies in selected industries across the United States under the name KeyBanc Capital Markets.

The company announced in April that it plans to expand its ability to provide financial advisory services to institutional clients by entering the Western European market via its acquisition of United Kingdom-based middle market investment banking advisory firm Clearwater UK. Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in the second half, KeyCorp said in an April22 press release.

Highlighting the planned acquisition during Tuesday’s call, Gorman said: “This transaction represents a strategic extension of our leading middle-market advisory franchise and expands our ability to serve M&A [mergers and acquisitions] clients and prospects internationally.”

To expand its middle market commercial banking capabilities in regions of the U.S., KeyCorp announced in a May press release that it added experienced local talent in Southeast Michigan. The company announced in a March press release that it launched a five-person middle market commercial banking team in Atlanta after introducing similar teams in Chicago, Southern California, and Overland Park, Kansas.

Gorman said during Tuesday’s earning call: “We have done, I think, a really good job of expanding our core middle market business in new cities that we haven’t been in in the past.”

KeyCorp Chief Financial Officer Clark Khayat said during the call that the company expects to see its average commercial loans increase 8% to 10% this year.

“The higher outlook reflects strong loan growth through the first half of the year, continued success in adding and expanding client relationships, and healthy commercial loan pipelines that continue to support growth in the second half of 2026,” Khayat said.