2023-05-26 06:00:00 ET
Since the start of the banking crisis in March, large and super regional bank stocks have been hit especially hard. The SPDR S&P Regional Banking ETF is down nearly 29% this year.
But KeyCorp (NYSE: KEY) has been hit even harder, with shares down about 40%. The bank had a rough first quarter and certainly faces some near-term challenges. But given the big sell-off, is it time for investors to jump in and buy the dip? Let's take a look.
As I pointed out in an article published on the eve of the banking crisis, KeyCorp's deposit beta performed very well in 2022, coming in at just 16%. The deposit beta looks at how much a bank will raise deposit pricing in response to changes in interest rates over a set period of time, so the lower the beta the better. Furthermore, management in January projected deposit beta to peak at less than 30%, which would have outperformed its peer group.
For further details see:
KeyCorp's Stock Has Now Fallen More Than the Broader Banking Sector. Is Now the Time to Buy?