Shareholders' Equity

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Shareholders' Equity

17. Shareholders’ Equity

Comprehensive Capital Plan

During the second quarter of 2013, we completed $112 million of Common Share repurchases on the open market under our 2013 capital plan. As previously reported and as authorized by Key’s Board of Directors and pursuant to our 2013 capital plan submitted to and not objected to by the Federal Reserve, we have authority to repurchase up to $426 million of our Common Shares in the open market or through privately negotiated transactions. Common Share repurchases under the current authorization are expected to be executed through the first quarter of 2014.

As previously reported, on February 21, 2013, we announced an agreement to sell our investment management subsidiary, Victory Capital Management, and our broker-dealer affiliate, Victory Capital Advisors, to a private equity fund. The after-tax realized gain which was originally estimated to be $145 million to $155 million is now expected to be in the range of $100 million to $115 million. The cash portion of the gain will be between $75 million and $90 million. The difference from the original estimate is due to higher than expected client attrition that has taken place during the consent process. We have received no objection from the Federal Reserve to use the cash portion of the gain for Common Share repurchases. The Board intends to consider these additional Common Share repurchases at its September meeting.

Our 2013 capital plan also proposed an increase in our quarterly Common Share dividend from $.05 to $.055 per share. Consistent with the 2013 capital plan, the Board, at its May and July 2013 meetings, declared quarterly dividends of $.055 per Common Share for the second and third quarters of 2013, respectively.