The reaction to KeyCorp's cost cuts — nice work, but you'll need to do more — offers a valuable lesson for the many banks that plan major streamlining this year.

Executives at KeyCorp (KEY) faced some questions from analysts during its fourth-quarter call Thursday about whether it was doing enough. KeyCorp still has higher efficiency ratios than some of its peers, including Fifth Third Bancorp (FITB), U.S. Bancorp (USB) and Huntington Bancshares (HBAN).

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