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KeyCorp CEO Beth Mooney on the bank’s growth and the impact of the Federal Reserve keeping interest rates low.
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But a key court.
This is the largest bank in Cleveland and the fifteenth largest in the country plus listen to this.
One of only two major US banks with a five star credit rating despite a slow economy.
And low interest rates joining me now -- -- Fox Business explicit is definitely she's KeyCorp chairman.
And CEO 87 billion in assets -- a stock up 43%.
Year over here not bad.
Not bad at a time when it's not easy to be -- -- finances.
-- we certainly have been in an industry much like our economy that has seen its challenges.
All but I think.
Lots of us are finding our way to navigate through this.
-- staying focused since about our clients and our communities OK but it wasn't a profitable bank.
Profitable bank -- -- -- -- -- use steered it back to profitability as the CEO.
What did you do to make that happen a lot of people would like to know that secret stuff.
Well first we all had our share of troubles that we think back four years ago September.
For 2008 was the real beginning of the downturn so what you had to do was -- your balance sheet take your losses.
Become for funded.
Get back to basics and never lose sight of financing America's recovery so I think the -- she -- she took care medicine and 0809.
He came out very focused on what your business proposition from your clients are.
How you're gonna do business.
And start growing again but it's not over -- -- you would have to say that everybody learned the lesson here and there's still some cutting that needs to be done that KeyCorp will you do it in the form -- branch closings job cuts what happens now.
You know this is an economy -- that because of our slow recovery in low interest rates every dollar counts.
Every decision matter so one of the things we are doing is focusing in on our efficiency.
How do we grow our revenue but at the same time.
What can you do to make sure your cost effective with -- shareholders money.
So we are looking at whether or not we should rationalize some of our branches how -- we reduce our occupancy expense how -- -- look for overtime that operations across the -- Every last dime counts to make sure we're doing the right things to be as efficient and profitable -- we can't -- how do you deal with the low interest rate environment.
And it's tough when -- making loans or refinancing.
Loans.
And -- losing a couple of basis points here and there on every -- It's true that this extended low interest rate environment is not necessarily.
Favorable to bank earnings I'd have you want to -- Ben Bernanke -- -- and you deal with that I -- -- with it because I also understand.
His positions that it's cumulative to the economy.
It's good for borrowers to have low interest rates and now that we have.
Low rates from short to long it's intended to make it easier to borrow to give people reasons to borrow.
So -- the last time I checked we still make money when people -- loans that's good for us.
I'll but it does spread shrink the spread on our loan so it just that's part of the reason you gotta be cost effective growing acquiring -- clients.
And looking at how you can generate more business do you expect fourth quarter while growth.
As we have talked about it.
We continue to see particularly a -- among our commercial clients.
That they continue to borrow there are acquiring competitors they're investing in their businesses they're doing things that are -- -- where.
And industries that have returned to profitability.
They're not hiring.
Which is part of why we.
I'll still talk with chairman Bernanke about QE3 of the things we're doing to stimulate the economy.
But we do see our companies our clients' continuing to borrow and we're continuing built.
Acquire new -- you stuck wants all over the place but you do have some agriculture Farber clients that -- what's that been like for those clients about you have to feel about.
Interestingly enough we just looked at that a couple weeks ago and much of our agricultural one -- in our western markets.
Which would be Idaho and Washington.
And proportionately they did not experience that throughout that you -- In the heartland between Indiana Iowa Nebraska.
Sorry cultural portfolio has actually done well although -- -- pick you have definitely I have to ask you were just named one of fortunes.
-- powerful weapon.
You -- the only female CEO of the top top bank have to get there.
Well I'd like to say there's no substitute for hard work.
But I will also tell you that I tell our young employees all the time and our young women.
To find something that you really like to do and do it well I'll always be part of a team.
Find the solution be somebody that people can count on -- can trust.
And then at the end of the day work hard.
Look at head and three big.
What what you're from us and stumbling blocks atrophy -- very tough economy if you had the ear of the administration what does one -- -- -- -- I would tell you that I am very supportive of much of what pressuring the Federal Reserve has done.
Like -- that I understand the backdrop for the economy.
But I do think the tone in Washington.
We need to be looking forward and I think there is -- anti business tone.
That I don't think this helpful to the national dialogue.
More helpful to our recovery sulphide -- I'd say let's acknowledge -- in -- together we fault if you said we made all make mistakes we learn from them.
We're moving forward and we -- helping finance America's recovery well.
You really -- and we did our research but we didn't realize our research was just a couple of feet away a little surprise for you.
Our satellite truck operator -- it's called American satellite he's right over there.
-- various.
Years ago when he wanted to start his small business -- court.
Gave him a loan and guess what.
-- provost at -- and then the financial crisis hit and you guys still came through with the money while another bank pulled out.
Up another line of credit so I thought to myself well that is worth mentioning that KeyCorp is a business that helps small business.
Well we're very proud of that story and -- They're smiling as I look over there because I will tell you that's what we do we -- here to help our clients arrive.
Our communities thrive we ringing small business -- of the year left here.
-- all goodness and the great story gradually entrance dot -- and I got -- -- closing bell ring negative.
