KeyCorp Highlights Commercial Banking Growth at Conference

Commercial bank generates $2.1B in revenue, with middle-market and payments as key priorities

Published on Feb. 9, 2026

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KeyCorp's commercial banking head Ken Gavrity outlined the company's growth strategy for its commercial bank during a recent investor conference. Gavrity highlighted the commercial bank's significant contribution to KeyCorp's overall revenue and deposits, as well as the growth potential in middle-market lending and commercial payments.

Why it matters

KeyCorp's commercial banking division is a major driver of the company's revenue and profitability. The bank's focus on middle-market lending and commercial payments suggests it sees these areas as key growth opportunities, which could impact its competitive positioning and financial performance going forward.

The details

Gavrity said KeyCorp's commercial bank generated $2.1 billion in revenue in 2025, representing nearly a third of the company's total revenue. The commercial bank also provided around 40% of KeyCorp's overall deposits. The commercial bank has two main components: a middle-market segment serving companies with $10 million to $1 billion in annual revenue, and a commercial payments platform serving clients from small businesses to large corporations. Gavrity described the middle-market opportunity as large, with an estimated 200,000 middle-market companies nationwide and KeyCorp currently having less than 3% market share. He said the middle-market business has consistently generated a return on equity in the high teens to low twenties. On the payments side, Gavrity said revenue has grown 9% annually over the past five years, and he expects high single-digit to low double-digit growth going forward, driven by efforts to embed payments capabilities into clients' technology platforms.

  • KeyCorp provided the update during a presentation and fireside chat on February 9, 2026.
  • In 2025, KeyCorp's middle-market C&I loan balances grew 9%, clients grew 4%, and pipelines were up more than 50% from the prior year.

The players

Ken Gavrity

Head of commercial banking at KeyCorp.

KeyCorp

A bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank.

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What they’re saying

“Key's commercial bank generated $2.1 billion of revenue in 2025, representing 'a little less than a third' of the company's total revenue, and provided roughly 40% of overall deposits.”

— Ken Gavrity, Head of commercial banking

“The middle-market opportunity is large, citing an estimated 200,000 middle-market companies across the U.S. and noting Key has less than 3% market share today.”

— Ken Gavrity, Head of commercial banking

What’s next

KeyCorp expects its full-year 2026 loan growth to be more conservative than the prior year's 9% growth, with an expectation of roughly 5% to 6% growth.

The takeaway

KeyCorp's commercial banking division remains a significant contributor to the company's overall revenue and profitability, with the bank focused on driving growth in middle-market lending and commercial payments as key strategic priorities.