Keycorp CEO Chris Gorman says clients are optimistic despite tariffs uncertainty (updated)

KeyCorp

11/02/2025 14:37

(Adds Gorman comments on regulation, M&A, file photo of Gorman)
       NEW YORK, Feb 11 (Reuters) - Keycorp CEO Chris Gorman
said the bank's clients remain optimistic, despite the
uncertainty created by new import tariffs. 
    "I do think tariffs are inflationary, and create some
uncertainty", Gorman said during a financial services conference
on Tuesday.
    But Gorman added that the tariffs currently in place are
similar to the ones the U.S. has already adopted before and
"lived through." On the short term, tariffs may even increase
demand for loans as companies buy more to avoid future new
tariffs.
    The Keycorp CEO said a survey with clients showed that many
are optimistic and 62% expect to work on strategic M&A over the
next year.
    Gorman said there have been good regulatory changes, such as
the new protocol for the stress tests, that he said "seemed a
lot more reasonable." The Keycorp CEO is also optimistic about
the Basel III endgame rules, saying, "I feel pretty good about
the regulatory environment broadly, but a lot of it is in the
state of flux," citing the announcements over the last three
weeks.
        Although he is optimistic about the M&A pipeline, Gorman
still sees hurdles for bank M&A, specifically the losses banks
have to book on underwater securities portfolios.
  

 (Reporting by Manya Saini and Tatiana Bautzer
Editing by Nick Zieminski)
 ((tatiana.bautzer@tr.com; Mob: +1-646-2397968; Reuters
Messaging: tatiana.bautzer.thomsonreuters.com@reuters.net))