Keycorp said it plans to merge its leasing subsidiaries, forming a $1.3 billion-asset unit that will be the nation's fifth-largest leasing company under bank ownership.

The move represents a further integration of former Keycorp, Albany, N.Y., and Society Corp., Cleveland. The two banks combined earlier this year to form the nation's 10th-largest banking company, with $60 billion assets.

Although the merged banking company is based in Cleveland, the new Keycorp Leasing Ltd. will have its "primary operations" in Albany.

President Named

Frederick E. Wolfert was named president and chief executive of the new company, which primarily leases equipment to corporations.

Mr. Wolfert, a former U.S. Leasing Corp. officer, joined Keycorp in 1988, becoming president and chief operating officer of Keycorp's lease unit in 1992.

A.J. Desposito, former head of Society's leasing unit, will become an executive vice president and head of sales and market management at the new company. Mr. Desposito will remain based in Cleveland, though he will also maintain an office in Albany.

Savings Undetermined

A spokeswoman said the potential cost savings in the leasing company merger had not yet been determined.

She said an undetermined number of leasing employees based in Cleveland would relocate to Albany, and that few job cuts were envisioned because of the unit's strong prospects for growth.

Keycorp said the new leasing company would post about $85 million in revenues in 1994 and originate more than $600 million of commercial leases.

Growth Opportunities Sought

James A. Fishell, head of Keycorp's specialty finance group, said the merged leasing unit would "explore new growth opportunities throughout the United States."

According to Smith Barney Inc. banking analyst Henry C. Dickson, merging the lease operations would not have an appreciable impact on Keycorp's earnings.

But he said the move would still be helpful in the company's overall effort to intergrate and streamline its 22-state operations.

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