We talked to the head of the bank's wealth business about the details of productivity, organic growth, which investment and credit solutions are needed, and how it is positioning for the future.

When Cleveland-headquartered KeyBank reported its fourth-quarter financial results just over a week ago, the data showed that its Key Wealth arm logged a 14 per cent rise in assets under management for 2025. 

Encouragingly, net inflows rose 42 per cent in Q4 from the previous three months – and that’s entirely from organic growth and not the kind of M&A that has been a feature of much North American wealth management in recent years. At the group level of KeyBank, it logged net income from continuing operations – on an attributable basis – of $474 million, or $458 million on an adjusted basis. Q4 revenue exceeded $2 billion. The bank has a Common Equity Tier 1 ratio of 11.7 per cent. In the 12 months to February 29, shares in KeyBank have risen 21.4 per cent.

Joe Skarda, Key Wealth’s president (main picture) is understandably pleased, but not complacent. The number of private bankers has risen by 12 per cent on a year ago; productivity of these bankers has risen 7 per cent; mass-affluent banker headcount is up 10 per cent and productivity is up 24 per cent. 

“2025 was our best year in most metrics that we set. We were bullish in 2025, and we are equally bullish for our prospects for 2026,” Skarda told FWR in an interview. 

“We have more RMs and private client advisors than ever before. There is no reason why productivity gains will not continue to trend upwards,” he continued. 

Key's business strategy includes providing trust and investment management, as well as institutional trust and banking services for individuals, families, business owners and institutions across the wealth spectrum. Within the Key Wealth group, Key Private Client is a mass-affluent business ($250,000 to $2 million in investible assets); Key Private Bank is the HNW segment ($2 million to $10 million); Key Family Wealth covers clients with $10 million-plus, and there is the Institutional Advisory business. (FWR also spoke to Skarda back in 2024 when the strategy was being ramped up.)

Skarda characterizes Key Wealth's market position as a strategic "sweet spot" – possessing the institutional resources and capabilities of a major banking group while maintaining the agility and client focus that larger institutions often struggle to preserve. "We're large enough to have the resources and scope to meet client needs, but not so large that you get in your own way," he explained.

The integration across KeyBank's platform represents a distinct competitive advantage, he said. "Our collaboration revenue in the fourth quarter reached a record high, and we anticipate continued momentum," he noted.

Connecting the dots
One important development is clients’ ability to “link financial planning and investment advice, which is getting more correlated than ever before,” Skarda said. 

With private market investing having been in the spotlight in recent years, FWR asked Skarda for his take.

“People have an appetite for alternative investments and that is no surprise given where markets are today. A lot of investors are worried about valuations and are looking at alternative investments closely,” he replied. “Purpose-driven investing is top of mind for a lot of people.”

A group such as KeyBank, with its roots in the US industrial heartland – many clients have or have run operational companies – is a quality this firm likes to stress. As clients' wealth rises, their appetite for credit, and more complex credit options increases, creating natural deepening of relationships.

Cleveland

Part of what Key Wealth does is in the “mass-affluent” sector. It is not an easy segment to get right, given the need to deliver mass-customization to blend personalized advice profitably.

“The mass-affluent segment in the US is an underserved market. Their needs are complex and multifaceted, yet most firms don't show up for this segment with curated solutions,” Skarda said. 

Key Private Client, Key Wealth’s mass-affluent segment, has added more than 45,000 households and generated just under $7 billion in new assets since its 2023 launch. This comprises deposits and investment assets, he added.