Key Expects Record # of 4Q Charges

Cleveland-based KeyCorp has announced that it expects a record number of charges for the fourth quarter, including some related to its homebuilder loan portfolio and its past exit from the subprime mortgage business.However, Key also reported that its board has increased the company's dividend for first-quarter 2008 by 2.7% to $0.375 per common share. "Key has been well positioned to weather this unprecedented volatility in the credit markets as we exited the subprime home mortgage business more than a year ago," said Henry L. Meyer III, KeyCorp's chairman and chief executive officer. "Further, we have no meaningful [collateralized loan obligation, collateralized debt obligation, asset-backed commercial paper, or specialized investment vehicle] exposure, and we moved two years ago to sharply curtail our Florida condominium exposure." However, Key's homebuilder loan portfolio has been hurt by the downturn in the U.S. housing market, and its participation in the capital markets has hurt market values and, therefore, financial results, he said. The company can be found online at https://www.key.com.