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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d)
 of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 18, 2024
 
KeyCorp
keylogoa11.jpg
(Exact name of registrant as specified in its charter)
 
Ohio
001-11302
34-6542451
State or other jurisdiction of incorporation or organization:Commission File NumberI.R.S. Employer Identification Number:
127 Public Square,
Cleveland,
Ohio
44114-1306
Address of principal executive offices:Zip Code:

(216) 689-3000
Registrant’s telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:


Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $1 par value
KEY
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E)
KEY PrI
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F)
KEY PrJ
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G)
KEY PrK
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Reset Perpetual Non-Cumulative Preferred Stock, Series H)KEY PrL
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

    Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02     Results of Operations and Financial Condition.

    On April 18, 2024, KeyCorp issued a press release announcing its financial results for the three-month period ended March 31, 2024 (the “Press Release”), and posted on its website its first quarter 2024 Supplemental Information Package (the “Supplemental Information Package”). The Press Release and Supplemental Information Package are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

The information in the preceding paragraph, as well as Exhibit 99.1 and Exhibit 99.2 referenced therein, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”).

    KeyCorp’s Consolidated Balance Sheets and Consolidated Statements of Income (collectively, the “Financial Statements”), included as part of the Press Release, are filed as Exhibit 99.3 to this report. Exhibit 99.3 is deemed “filed” for purposes of Section 18 of the Exchange Act and, therefore, may be incorporated by reference in filings under the Securities Act.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

The following exhibits are furnished, or filed in the case of Exhibit 99.3, herewith:

99.1    Press Release, dated April 18, 2024, announcing financial results for the three-month period ended March 31, 2024

99.2    Supplemental Information Package reviewed during the conference call and webcast.

99.3    Financial Statements.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KEYCORP
(Registrant)
Date: April 18, 2024/s/ Douglas M. Schosser
By: Douglas M. Schosser
Chief Accounting Officer


 Document

                                        
http://api.rkd.refinitiv.com/api/FilingsRetrieval3/.78535622.keylogoicononlyrgba01.jpg.ashx

KEYCORP REPORTS FIRST QUARTER 2024 NET INCOME OF $183 MILLION,
OR $.20 PER DILUTED COMMON SHARE, WITH $.02 IMPACT FROM THE FDIC SPECIAL ASSESSMENT(a)


Noninterest income up 6% year-over-year and linked quarter, driven by strength in investment banking and debt placement fees

Continued to strengthen the balance sheet by reducing reliance on wholesale funding and higher cost brokered deposits

Common Equity Tier 1 ratio increased 120 basis points year-over-year to 10.3%(b)

Credit costs remain low: net loan charge-offs to average loans of 29 basis points


    CLEVELAND, April 18, 2024 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $183 million, or $.20 per diluted common share, for the first quarter of 2024. Net income from continuing operations attributable to Key common shareholders was $30 million, or $.03 per diluted common share, for the fourth quarter of 2023 and $275 million, or $.30 per diluted common share, for the first quarter of 2023. Included in the first quarter of 2024 are $22 million, or $.02 per diluted common share, after-tax, of charges related to the FDIC special assessment(a). Included in the fourth quarter of 2023 are $209 million, or $.22 per diluted common share, after-tax, of charges related to the FDIC special assessment, efficiency related expenses, and a pension settlement charge(a).
Comments from Chairman and CEO, Chris Gorman

"We are off to a solid start in 2024. Investment Banking posted its best first quarter in our history, net interest income was within the range of guidance that we provided in January, and expenses remained well controlled. Customer deposits were up 2% year-over-year, while relationship households and commercial clients grew 2.5% and 6%, respectively. Net charge-offs and nonperforming loans remained low and below their historical averages.

Our Common Equity Tier 1 ratio rose to 10.3%, bringing our organic capital build to approximately 120 basis points over the past twelve months. Tangible common equity measures were steady to improved, despite the first quarter’s increase in interest rates, reflecting the work we have done over the past year to improve our asset liability positioning.

We continued to invest and make progress in our fee-based businesses where we have a differentiated value proposition. Last month, we announced a strategic partnership that will help us accelerate growth in our commercial platform, another example of how we are delivering best-in-class execution services for our clients while concurrently managing risk.

Key is back to playing offense. I remain excited for our future and believe our strong foundation positions us to deliver sound, profitable growth moving forward."





(a)See table on page 24 for more information on Selected Items Impact on Earnings, including information on the FDIC special assessment, efficiency related expenses, and the pension settlement charge.
(b)March 31, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 2

Selected Financial Highlights
Dollars in millions, except per share dataChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Income (loss) from continuing operations attributable to Key common shareholders$183 $30 $275 510.0 %(33.5)%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
.20 .03 .30 566.7 (33.3)
Return on average tangible common equity from continuing operations (a)
7.87 %1.46 %13.16 %N/AN/A
Return on average total assets from continuing operations.47 .14 .66 N/AN/A
Common Equity Tier 1 ratio (b)
10.3 10.0 9.1 N/AN/A
Book value at period end$12.84 $13.02 $12.70 (1.4)1.1 
Net interest margin (TE) from continuing operations2.02 %2.07 %2.47 %N/AN/A
(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)March 31, 2024 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millionsChange 1Q24 vs.
 1Q244Q231Q234Q231Q23
Net interest income (TE)$886 $928 $1,106 (4.5)%(19.9)%
Noninterest income647 610 608 6.1 6.4 
Total revenue (TE)$1,533 $1,538 $1,714 (.3)%(10.6)%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $886 million for the first quarter of 2024 and the net interest margin was 2.02%. Compared to the first quarter of 2023, net interest income decreased by $220 million, and the net interest margin decreased by 45 basis points. While both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing interest rate swaps, investments, and U.S. Treasury securities into higher-yielding cash and swaps, the decline in net interest income and the net interest margin reflects the higher interest rate environment and Key’s balance sheet optimization efforts, which resulted in planned reductions in loan balances. The higher interest rate environment drove earning asset yields higher, but were outpaced by the higher cost of deposits and borrowings. Additionally, the balance sheet experienced a shift in funding mix from noninterest-bearing deposits to higher-cost deposits and borrowings.

Compared to the fourth quarter of 2023, taxable-equivalent net interest income decreased by $42 million, and the net interest margin decreased by five basis points. Net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing interest rate swaps and U.S. Treasury securities into higher-yielding cash, investments, and swaps. The decline in net interest income and the net interest margin was driven by higher deposit costs, an unfavorable funding mix, and lower loan balances. Additionally, net interest income fell in part because of one less day to earn interest.


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 3

Noninterest Income
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Trust and investment services income$136 $132 $128 3.0 %6.3 %
Investment banking and debt placement fees170 136 145 25.0 17.2 
Cards and payments income77 84 81 (8.3)(4.9)
Service charges on deposit accounts63 65 67 (3.1)(6.0)
Corporate services income69 67 76 3.0 (9.2)
Commercial mortgage servicing fees56 48 46 16.7 21.7 
Corporate-owned life insurance income32 36 29 (11.1)10.3 
Consumer mortgage income14 11 11 27.3 27.3 
Operating lease income and other leasing gains24 22 25 9.1 (4.0)
Other income6 9 — (33.3)N/M
Total noninterest income$647 $610 $608 6.1 %6.4 %
N/M = Not Meaningful
    
Compared to the first quarter of 2023, noninterest income increased by $39 million. The increase was driven by investment banking and debt placement fees, up $25 million, related to strong commercial mortgage and debt capital markets activity. Additionally, commercial mortgage servicing fees increased $10 million.

Compared to the fourth quarter of 2023, noninterest income increased by $37 million. The increase was driven by investment banking and debt placement fees, up $34 million, reflective of increased merger and acquisition advisory fees, syndication fees, and debt and equity capital markets activity. Commercial mortgage servicing fees increased $8 million, which was partly offset by a $7 million decline in cards and payments income.

Noninterest Expense
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Personnel expense$674 $674 $701 .0 %(3.9)%
Net occupancy67 65 70 3.1 (4.3)
Computer processing102 92 92 10.9 10.9 
Business services and professional fees41 44 45 (6.8)(8.9)
Equipment20 24 22 (16.7)(9.1)
Operating lease expense17 18 20 (5.6)(15.0)
Marketing19 31 21 (38.7)(9.5)
Other expense203 424 205 (52.1)(1.0)
Total noninterest expense$1,143 $1,372 $1,176 (16.7)%(2.8)%
    Compared to the first quarter of 2023, noninterest expense decreased $33 million, reflective of lower personnel expense, which decreased $27 million this quarter, due to lower headcount from efficiency related actions taken last year. In the first quarter of 2024, other expense included $29 million from the FDIC special assessment. See the Selected Items Impact on Earnings table on page 24 for more information.

    Compared to the fourth quarter of 2023, noninterest expense decreased by $229 million. The decline was driven by selected items that impacted earnings in the fourth quarter, which included the FDIC special assessment, efficiency related expenses, and a pension settlement charge in the fourth quarter, which collectively totaled $275 million. The decline was partly offset by a $29 million charge related to the FDIC special assessment in the first quarter of 2024, as well as an increase in employee benefits. See the Selected Items Impact on Earnings table on page 24 for more information.



KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 4

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Commercial and industrial (a)
$55,220 $56,664 $60,281 (2.5)%(8.4)%
Other commercial loans21,222 21,942 22,778 (3.3)(6.8)
Total consumer loans34,592 35,342 36,778 (2.1)(5.9)
Total loans$111,034 $113,948 $119,837 (2.6)%(7.3)%
(a)Commercial and industrial average loan balances include $211 million, $210 million, and $178 million of assets from commercial credit cards at March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
    
Average loans were $111.0 billion for the first quarter of 2024, a decrease of $8.8 billion compared to the first quarter of 2023, reflective of Key's planned balance sheet optimization efforts. The decline in average loans was mostly driven by lower commercial and industrial loans, as well as a decline in commercial mortgage real estate loans. Additionally, average consumer loans decreased by $2.2 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the fourth quarter of 2023, average loans decreased by $2.9 billion. Average commercial loans declined by $2.2 billion, primarily driven by a decrease in commercial and industrial loans. Additionally, average consumer loans declined $750 million, driven by declines across all consumer loan categories.

Average Deposits
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Non-time deposits$128,448 $130,750 $132,907 (1.8)%(3.4)%
Time deposits14,430 14,326 10,498 .7 37.5 
Total deposits$142,878 $145,076 $143,405 (1.5)%(.4)%
Cost of total deposits2.20 %2.06 %.99 %N/AN/A
N/A = Not Applicable

    Average deposits totaled $142.9 billion for the first quarter of 2024, a decrease of $527 million compared to the year-ago quarter. The decrease was driven by continued changing client behavior reflective of higher interest rates, as well as a decline in wholesale deposit balances.

Compared to the fourth quarter of 2023, average deposits decreased by $2.2 billion. The decline was driven by normal seasonal deposit outflows and a decrease in wholesale deposit balances.

ASSET QUALITY
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Net loan charge-offs$81 $76 $45 6.6 %80.0 %
Net loan charge-offs to average total loans.29 %.26 %.15 %N/AN/A
Nonperforming loans at period end$658 $574 $416 14.6 58.2 
Nonperforming assets at period end674 591 447 14.0 50.8 
Allowance for loan and lease losses1,542 1,508 1,380 2.3 11.7 
Allowance for credit losses1,823 1,804 1,656 1.1 10.1 
Provision for credit losses101 102 139 (1.0)(27.3)
Allowance for loan and lease losses to nonperforming loans234 %263 %332 %N/AN/A
Allowance for credit losses to nonperforming loans277 314 398 N/AN/A
N/A = Not Applicable

    


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 5

    Key's provision for credit losses was $101 million, compared to $139 million in the first quarter of 2023 and $102 million in the fourth quarter of 2023. The decline from the year-ago period reflects a more stable economic outlook and the impact of balance sheet optimization efforts, partly offset by portfolio migration.

    Net loan charge-offs for the first quarter of 2024 totaled $81 million, or 0.29% of average total loans. These results compare to $45 million, or 0.15%, for the first quarter of 2023 and $76 million, or 0.26%, for the fourth quarter of 2023. Key’s allowance for credit losses was $1.8 billion, or 1.66% of total period-end loans at March 31, 2024, compared to 1.38% at March 31, 2023, and 1.60% at December 31, 2023.

    At March 31, 2024, Key’s nonperforming loans totaled $658 million, which represented 0.60% of period-end portfolio loans. These results compare to 0.35% at March 31, 2023, and 0.51% at December 31, 2023. Nonperforming assets at March 31, 2024, totaled $674 million, and represented 0.61% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.37% at March 31, 2023, and 0.52% at December 31, 2023.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2024.
Capital Ratios
3/31/202412/31/20233/31/2023
Common Equity Tier 1 (a)
10.3 %10.0 %9.1 %
Tier 1 risk-based capital (a)
12.0 11.7 10.6 
Total risk-based capital (a)
14.5 14.1 12.8 
Tangible common equity to tangible assets (b)
5.0 5.1 4.6 
Leverage (a)
9.1 9.0 8.8 
(a)March 31, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(b)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.


Key's regulatory capital position remained strong in the first quarter of 2024. As shown in the preceding table, at March 31, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 10.3% and 12.0%, respectively. Key's tangible common equity ratio was 5.0% at March 31, 2024.

    Key elected the CECL phase-in option provided by regulatory guidance which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022. Effective for the first quarter 2022, Key is now in the three-year transition period. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by four basis points.

Summary of Changes in Common Shares Outstanding
In thousandsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Shares outstanding at beginning of period936,564 936,161 933,325 — %.3 %
Open market share repurchases— — (2,550)— (100.0)
Shares issued under employee compensation plans (net of cancellations and returns)6,212 403 4,454 1,441.4 39.5 
Shares outstanding at end of period942,776 936,564 935,229 .7 %.8 %

    
    Key declared a dividend of $.205 per common share for the first quarter of 2024.



KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 6

LINE OF BUSINESS RESULTS

    The following table shows the contribution made by each major business segment to Key’s taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.

Major Business Segments
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Revenue from continuing operations (TE)
Consumer Bank$773 $786 $840 (1.7)%(8.0)%
Commercial Bank791 794 844 (.4)(6.3)
Other (a)
(31)(42)30 26.2 (203.3)
Total$1,533 $1,538 $1,714 (.3)%(10.6)%
Income (loss) from continuing operations attributable to Key
Consumer Bank$55 $1 $89 N/M(38.2)%
Commercial Bank200 143 255 39.9 (21.6)
Other (a)
(36)(79)(33)54.4 (9.1)
Total$219 $65 $311 236.9 %(29.6)%
(a)Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent
N/M = Not Meaningful


Consumer Bank
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Summary of operations
Net interest income (TE)$549 $558 $612 (1.6)%(10.3)%
Noninterest income224 228 228 (1.8)(1.8)
Total revenue (TE)773 786 840 (1.7)(8.0)
Provision for credit losses(2)5 60 (140.0)(103.3)
Noninterest expense703 780 663 (9.9)6.0 
Income (loss) before income taxes (TE)72 1 117 N/M(38.5)
Allocated income taxes (benefit) and TE adjustments17 — 28 N/M(39.3)
Net income (loss) attributable to Key$55 $1 $89 N/M(38.2)%
Average balances
Loans and leases$40,446 $41,381 $43,086 (2.3)%(6.1)%
Total assets43,239 44,178 45,935 (2.1)(5.9)
Deposits84,317 84,856 84,637 (.6)(.4)
Assets under management at period end$57,305 $54,859 $53,689 4.5 %6.7 %
TE = Taxable Equivalent
N/M = Not Meaningful




KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 7

Additional Consumer Bank Data
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Noninterest income
Trust and investment services income$109 $105 $101 3.8 %7.9 %
Service charges on deposit accounts33 37 38 (10.8)(13.2)
Cards and payments income56 62 61 (9.7)(8.2)
Consumer mortgage income14 11 11 27.3 27.3 
Other noninterest income12 13 17 (7.7)(29.4)
Total noninterest income$224 $228 $228 (1.8)%(1.8)%
Average deposit balances
Money market deposits$29,918 $29,752 $28,128 .6 %6.4 %
Demand deposits22,353 23,072 24,849 (3.1)(10.0)
Savings deposits4,987 5,241 7,025 (4.8)(29.0)
Time deposits11,809 10,265 4,351 15.0 171.4 
Noninterest-bearing deposits15,250 16,526 20,284 (7.7)(24.8)
Total deposits$84,317 $84,856 $84,637 (.6)%(.4)%
Other data
Branches957 959 971 
Automated teller machines1,214 1,217 1,263 

Consumer Bank Summary of Operations (1Q24 vs. 1Q23)
•Key's Consumer Bank recorded net income attributable to Key of $55 million for the first quarter of 2024, compared to $89 million for the year-ago quarter
•Taxable-equivalent net interest income decreased by $63 million, or 10.3%, compared to the first quarter of 2023, reflective of a shift in funding mix from noninterest-bearing deposits to higher-cost deposits and borrowings, as well as Key’s balance sheet optimization efforts
•Average loans and leases decreased $2.6 billion, or 6.1%, from the first quarter of 2023, driven by broad-based declines across loan categories
•Average deposits decreased $320 million, or 0.4%, from the first quarter of 2023
•Provision for credit losses decreased $62 million compared to the first quarter of 2023, driven by planned balance sheet optimization efforts and an improving economic outlook, partly offset by higher net charge-offs
•Noninterest income decreased $4 million from the year-ago quarter, driven by declines in service charges on deposit accounts and cards and payments income
•Noninterest expense increased $40 million from the year-ago quarter, primarily reflective of the FDIC special assessment charge



KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 8

Commercial Bank
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Summary of operations
Net interest income (TE)$391 $444 $478 (11.9)%(18.2)%
Noninterest income400 350 366 14.3 9.3 
Total revenue (TE)791 794 844 (.4)(6.3)
Provision for credit losses102 96 80 6.3 27.5 
Noninterest expense442 525 442 (15.8)— 
Income (loss) before income taxes (TE)247 173 322 42.8 (23.3)
Allocated income taxes and TE adjustments47 30 67 56.7 (29.9)
Net income (loss) attributable to Key$200 $143 $255 39.9 %(21.6)%
Average balances
Loans and leases$70,099 $72,088 $76,306 (2.8)%(8.1)%
Loans held for sale840 635 876 32.3 (4.1)
Total assets79,456 81,393 85,852 (2.4)(7.5)
Deposits56,090 56,897 52,219 (1.4)%7.4 %
TE = Taxable Equivalent

Additional Commercial Bank Data
Dollars in millionsChange 1Q24 vs.
1Q244Q231Q234Q231Q23
Noninterest income
Trust and investment services income$27 $27 $27 — %— %
Investment banking and debt placement fees170 135 145 25.9 17.2 
Cards and payments income19 19 20 — (5.0)
Service charges on deposit accounts29 27 27 7.4 7.4 
Corporate services income63 61 69 3.3 (8.7)
Commercial mortgage servicing fees56 49 46 14.3 21.7 
Operating lease income and other leasing gains24 21 24 14.3 — 
Other noninterest income12 11 8 9.1 50.0 
Total noninterest income$400 $350 $366 14.3 %9.3 %

Commercial Bank Summary of Operations (1Q24 vs. 1Q23)
•Key's Commercial Bank recorded net income attributable to Key of $200 million for the first quarter of 2024 compared to $255 million for the year-ago quarter
•Taxable-equivalent net interest income decreased by $87 million, or 18.2%, compared to the first quarter of 2023, primarily reflecting higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits, as well as Key’s balance sheet optimization efforts
•Average loan and lease balances decreased $6.2 billion, or 8.1%, compared to the first quarter of 2023, driven by a decline in commercial and industrial loans
•Average deposit balances increased $3.9 billion compared to the first quarter of 2023, driven by our focus on growing deposits across our commercial businesses
•Provision for credit losses increased $22 million compared to the first quarter of 2023, driven by a more stable economic outlook and the impact of balance sheet optimization efforts, partly offset by portfolio migration
•Noninterest income increased $34 million from the year-ago quarter, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
•Noninterest expense remained unchanged compared to the first quarter of 2023


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 9


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KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $187 billion at March 31, 2024.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 10

CONTACTS:
ANALYSTSMEDIA
Brian MauneySusan Donlan
216.689.0521216.471.3133
Brian_Mauney@KeyBank.comSusan_E_Donlan@KeyBank.com
Halle NicholsBeth Strauss
216.689.5305216.471.2787
Halle_A_Nichols@KeyBank.comBeth_A_Strauss@KeyBank.com
INVESTOR RELATIONS:KEY MEDIA NEWSROOM:
www.key.com/irwww.key.com/newsroom
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2023 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

Notes to Editors:
A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on April 18, 2024. A replay of the call will be available on our website through April 18, 2025.
For up-to-date company information, media contacts, and facts and figures about Key’s lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****



KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 11




KeyCorp
First Quarter 2024
Financial Supplement


    
Page



KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 12

Basis of Presentation

Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management
believes it to be helpful in understanding Key’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key’s website (www.key.com/ir).

Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized”
basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.

Taxable Equivalent
Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of peers.

Earnings Per Share Equivalent
Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, with this then being the amount used to calculate the earnings per share equivalent.




KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 13

Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
3/31/202412/31/20233/31/2023
Summary of operations
Net interest income (TE)$886 $928 $1,106 
Noninterest income647 610 608 
Total revenue (TE)
1,533 1,538 1,714 
Provision for credit losses101 102 139 
Noninterest expense1,143 1,372 1,176 
Income (loss) from continuing operations attributable to Key219 65 311 
Income (loss) from discontinued operations, net of taxes— — 1 
Net income (loss) attributable to Key219 65 312 
Income (loss) from continuing operations attributable to Key common shareholders183 30 275 
Income (loss) from discontinued operations, net of taxes— — 1 
Net income (loss) attributable to Key common shareholders183 30 276 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.20 $.03 $.30 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.20 .03 .30 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution.20 .03 .30 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
.20 .03 .30 
Cash dividends declared.205 .205 .205 
Book value at period end12.84 13.02 12.70 
Tangible book value at period end9.87 10.02 9.67 
Market price at period end15.81 14.40 12.52 
Performance ratios
From continuing operations:
Return on average total assets.47 %.14 %.66 %
Return on average common equity6.06 1.08 9.85 
Return on average tangible common equity (b)
7.87 1.46 13.16 
Net interest margin (TE)2.02 2.07 2.47 
Cash efficiency ratio (b)
74.0 88.6 68.0 
From consolidated operations:
Return on average total assets.47 %.14 %.66 %
Return on average common equity6.06 1.08 9.89 
Return on average tangible common equity (b)
7.87 1.46 13.21 
Net interest margin (TE)2.02 2.07 2.47 
Loan to deposit (c)
76.6 77.9 84.4 
Capital ratios at period end
Key shareholders’ equity to assets7.8 %7.8 %7.3 %
Key common shareholders’ equity to assets6.5 6.5 6.0 
Tangible common equity to tangible assets (b)
5.0 5.1 4.6 
Common Equity Tier 1 (d)
10.3 10.0 9.1 
Tier 1 risk-based capital (d)
12.0 11.7 10.6 
Total risk-based capital (d)
14.5 14.1 12.8 
Leverage (d)
9.1 9.0 8.8 
Asset quality — from continuing operations
Net loan charge-offs
$81 $76 $45 
Net loan charge-offs to average loans
.29 %.26 %.15 %
Allowance for loan and lease losses
$1,542 $1,508 $1,380 
Allowance for credit losses
1,823 1,804 1,656 
Allowance for loan and lease losses to period-end loans
1.40 %1.34 %1.15 %
Allowance for credit losses to period-end loans
1.66 1.60 1.38 
Allowance for loan and lease losses to nonperforming loans234 263 332 
Allowance for credit losses to nonperforming loans277 314 398 
Nonperforming loans at period-end$658 $574 $416 
Nonperforming assets at period-end674 591 447 
Nonperforming loans to period-end portfolio loans.60 %.51 %.35 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets.61 .52 .37 
Trust assets
Assets under management$57,305 $54,859 $53,689 
Other data
Average full-time equivalent employees
16,752 17,129 18,220 
Branches
957 959 971 
Taxable-equivalent adjustment
$11 $7 $7 


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 14

(a)Earnings per share may not foot due to rounding.
(b)The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.
(d)March 31, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 15

GAAP to Non-GAAP Reconciliations
(Dollars in millions)
The table below presents certain non-GAAP financial measures related to “tangible common equity,” “return on average tangible common equity,” “pre-provision net revenue," and “cash efficiency ratio."

The tangible common equity ratio and the return on average tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key’s capital position without regard to the effects of intangible assets and preferred stock.

The table also shows the computation for pre-provision net revenue, which is not formally defined by GAAP. Management believes that eliminating the effects of the provision for credit losses makes it easier to analyze the results by presenting them on a more comparable basis.

The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key’s intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key’s results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
Three months ended
3/31/202412/31/20233/31/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)$14,547 $14,637 $14,322 
Less: Intangible assets (a)
2,799 2,806 2,836 
Preferred Stock (b)
2,446 2,446 2,446 
Tangible common equity (non-GAAP)$9,302 $9,385 $9,040 
Total assets (GAAP)$187,485 $188,281 $197,519 
Less: Intangible assets (a)
2,799 2,806 2,836 
Tangible assets (non-GAAP)$184,686 $185,475 $194,683 
Tangible common equity to tangible assets ratio (non-GAAP)5.04 %5.06 %4.64 %
Pre-provision net revenue
Net interest income (GAAP)$875 $921 $1,099 
Plus: Taxable-equivalent adjustment11 7 7 
Noninterest income647 610 608 
Less: Noninterest expense1,143 1,372 1,176 
Pre-provision net revenue from continuing operations (non-GAAP)$390 $166 $538 
Average tangible common equity
Average Key shareholders' equity (GAAP)$14,649 $13,471 $13,817 
Less: Intangible assets (average) (c)
2,802 2,811 2,841 
Preferred stock (average)2,500 2,500 2,500 
Average tangible common equity (non-GAAP)$9,347 $8,160 $8,476 
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)$183 $30 $275 
Average tangible common equity (non-GAAP)9,347 8,160 8,476 
Return on average tangible common equity from continuing operations (non-GAAP)7.87 %1.46 %13.16 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)$183 $30 $276 
Average tangible common equity (non-GAAP)9,347 8,160 8,476 
Return on average tangible common equity consolidated (non-GAAP)7.87 %1.46 %13.21 %






KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 16

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months ended
3/31/202412/31/20233/31/2023
Cash efficiency ratio
Noninterest expense (GAAP)$1,143 $1,372 $1,176 
Less: Intangible asset amortization8 10 10 
Adjusted noninterest expense (non-GAAP)$1,135 $1,362 $1,166 
Net interest income (GAAP)$875 $921 $1,099 
Plus: Taxable-equivalent adjustment11 7 7 
Net interest income TE (non-GAAP)886 928 1,106 
Noninterest income (GAAP)647 610 608 
Total taxable-equivalent revenue (non-GAAP)$1,533 $1,538 $1,714 
Cash efficiency ratio (non-GAAP)74.0 %88.6 %68.0 %
(a)For the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, intangible assets exclude $1 million, $1 million, and $1 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, average intangible assets exclude $1 million, $1 million, and $1 million, respectively, of average purchased credit card receivables.
GAAP = U.S. generally accepted accounting principles




KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 17

Consolidated Balance Sheets
(Dollars in millions)
3/31/202412/31/20233/31/2023
Assets
Loans$109,885 $112,606 $119,971 
Loans held for sale228 483 1,211 
Securities available for sale37,298 37,185 39,498 
Held-to-maturity securities8,272 8,575 9,561 
Trading account assets1,171 1,142 1,118 
Short-term investments13,205 10,817 8,410 
Other investments1,247 1,244 1,587 
Total earning assets171,306 172,052 181,356 
Allowance for loan and lease losses(1,542)(1,508)(1,380)
Cash and due from banks1,247 941 784 
Premises and equipment650 661 628 
Goodwill2,752 2,752 2,752 
Other intangible assets48 55 85 
Corporate-owned life insurance4,392 4,383 4,372 
Accrued income and other assets8,314 8,601 8,512 
Discontinued assets318 344 410 
Total assets$187,485 $188,281 $197,519 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits$114,593 $114,859 $106,841 
Noninterest-bearing deposits29,638 30,728 37,307 
Total deposits144,231 145,587 144,148 
Federal funds purchased and securities sold under repurchase agreements 27 38 1,374 
Bank notes and other short-term borrowings2,896 3,053 10,061 
Accrued expense and other liabilities5,008 5,412 4,861 
Long-term debt20,776 19,554 22,753 
Total liabilities172,938 173,644 183,197 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,164 6,281 6,207 
Retained earnings15,662 15,672 15,700 
Treasury stock, at cost(5,722)(5,844)(5,868)
Accumulated other comprehensive income (loss)(5,314)(5,229)(5,474)
Key shareholders’ equity14,547 14,637 14,322 
Total liabilities and equity$187,485 $188,281 $197,519 
Common shares outstanding (000)942,776 936,564 935,229 
    





KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 18

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
3/31/202412/31/20233/31/2023
Interest income
Loans$1,538 $1,574 $1,476 
Loans held for sale14 12 13 
Securities available for sale232 213 194 
Held-to-maturity securities75 78 74 
Trading account assets14 13 12 
Short-term investments142 138 42 
Other investments17 22 13 
Total interest income2,032 2,050 1,824 
Interest expense
Deposits782 754 350 
Federal funds purchased and securities sold under repurchase agreements1 — 22 
Bank notes and other short-term borrowings46 45 78 
Long-term debt328 330 275 
Total interest expense1,157 1,129 725 
Net interest income875 921 1,099 
Provision for credit losses101 102 139 
Net interest income after provision for credit losses774 819 960 
Noninterest income
Trust and investment services income136 132 128 
Investment banking and debt placement fees170 136 145 
Cards and payments income77 84 81 
Service charges on deposit accounts63 65 67 
Corporate services income69 67 76 
Commercial mortgage servicing fees56 48 46 
Corporate-owned life insurance income32 36 29 
Consumer mortgage income14 11 11 
Operating lease income and other leasing gains24 22 25 
Other income6 9 — 
Total noninterest income647 610 608 
Noninterest expense
Personnel674 674 701 
Net occupancy67 65 70 
Computer processing102 92 92 
Business services and professional fees41 44 45 
Equipment20 24 22 
Operating lease expense17 18 20 
Marketing19 31 21 
Other expense203 424 205 
Total noninterest expense1,143 1,372 1,176 
Income (loss) from continuing operations before income taxes278 57 392 
Income taxes59 (8)81 
Income (loss) from continuing operations219 65 311 
Income (loss) from discontinued operations, net of taxes— — 1 
Net income (loss)219 65 312 
Net income (loss) attributable to Key$219 $65 $312 
Income (loss) from continuing operations attributable to Key common shareholders$183 $30 $275 
Net income (loss) attributable to Key common shareholders183 30 276 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.20 $.03 $.30 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.20 .03 .30 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.20 $.03 $.30 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.20 .03 .30 
Cash dividends declared per common share$.205 $.205 $.205 
Weighted-average common shares outstanding (000)929,692 927,517 926,490 
Effect of common share options and other stock awards7,319 6,529 7,314 
Weighted-average common shares and potential common shares outstanding (000) (b)
937,011 934,046 933,804 
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards, as applicable.


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
First Quarter 2024Fourth Quarter 2023First Quarter 2023
AverageYield/AverageYield/AverageYield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$55,220 $853 6.22 %$56,664 $870 6.09 %$60,281 $807 5.42 %
Real estate — commercial mortgage14,837 229 6.21 15,346 234 6.05 16,470 224 5.52 
Real estate — construction3,039 57 7.50 3,028 54 7.05 2,525 39 6.30 
Commercial lease financing3,346 27 3.23 3,568 30 3.34 3,783 27 2.87 
Total commercial loans76,442 1,166 6.14 78,606 1,188 6.00 83,059 1,097 5.35 
Real estate — residential mortgage20,814 171 3.29 21,113 174 3.30 21,436 172 3.21 
Home equity loans7,024 104 5.97 7,227 108 5.93 7,879 106 5.47 
Other consumer loans5,800 72 4.99 6,015 75 4.94 6,480 76 4.69 
Credit cards954 36 14.93 987 36 14.47 983 32 13.37 
Total consumer loans34,592 383 4.44 35,342 393 4.43 36,778 386 4.23 
Total loans111,034 1,549 5.61 113,948 1,581 5.51 119,837 1,483 5.01 
Loans held for sale888 14 6.15 695 12 6.85 907 13 5.86 
Securities available for sale (b), (e)
37,089 232 2.17 35,576 213 1.99 39,172 194 1.72 
Held-to-maturity securities (b)
8,423 75 3.57 8,714 78 3.56 8,931 74 3.32 
Trading account assets1,110 14 5.21 1,104 13 4.93 1,001 12 4.86 
Short-term investments10,243 142 5.59 9,571 138 5.72 3,532 42 4.80 
Other investments (e)
1,236 17 5.39 1,297 22 6.91 1,309 13 4.01 
Total earning assets170,023 2,043 4.67 170,905 2,057 4.60 174,689 1,831 4.09 
Allowance for loan and lease losses(1,505)(1,484)(1,336)
Accrued income and other assets17,350 17,471 17,498 
Discontinued assets329 351 419 
Total assets$186,197 $187,243 $191,270 
Liabilities
Money market deposits$37,659 $264 2.82 %$36,648 $251 2.72 %$33,853 $78 .94 %
Demand deposits56,137 357 2.56 56,963 348 2.42 52,365 183 1.42 
Savings deposits5,253 1 .07 5,492 1 .05 7,346 1 .03 
Time deposits14,430 160 4.45 14,326 154 4.26 10,498 88 3.39 
Total interest-bearing deposits113,479 782 2.77 113,429 754 2.63 104,062 350 1.36 
Federal funds purchased and securities sold under repurchase agreements106 1 4.03 56 — 2.29 2,087 22 4.34 
Bank notes and other short-term borrowings3,325 46 5.63 3,199 45 5.62 6,597 78 4.80 
Long-term debt (f), (g)
19,537 328 6.72 19,921 330 6.64 20,141 275 5.47 
Total interest-bearing liabilities136,447 1,157 3.41 136,605 1,129 3.29 132,887 725 2.20 
Noninterest-bearing deposits29,399 31,647 39,343 
Accrued expense and other liabilities5,373 5,169 4,804 
Discontinued liabilities (g)
329 351 419 
Total liabilities$171,548 $173,772 $177,453 
Equity
Key shareholders’ equity$14,649 $13,471 $13,817 
Noncontrolling interests— — — 
Total equity14,649 13,471 13,817 
Total liabilities and equity$186,197 $187,243 $191,270 
Interest rate spread (TE)1.26 %1.31 %1.89 %
Net interest income (TE) and net interest margin (TE)$886 2.02 %$928 2.07 %$1,106 2.47 %
TE adjustment (b)
1177
Net interest income, GAAP basis$875 $921 $1,099 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $211 million, $210 million, and $178 million of assets from commercial credit cards for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
(e)Yield is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $42.7 billion, $42.6 billion, and $45.3 billion for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
(f)Rate calculation excludes basis adjustments related to fair value hedges.
(g)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles.



KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 20

Noninterest Expense
(Dollars in millions)
Three months ended
3/31/202412/31/20233/31/2023
Personnel (a)
$674 $674 $701 
Net occupancy67 65 70 
Computer processing102 92 92 
Business services and professional fees41 44 45 
Equipment20 24 22 
Operating lease expense17 18 20 
Marketing19 31 21 
Other expense203 424 205 
Total noninterest expense$1,143 $1,372 $1,176 
Average full-time equivalent employees (b)
16,752 17,129 18,220 
(a)Additional detail provided in Personnel Expense table below.
(b)The number of average full-time equivalent employees has not been adjusted for discontinued operations.
Personnel Expense
(Dollars in millions)
Three months ended
3/31/202412/31/20233/31/2023
Salaries and contract labor$389 $399 $419 
Incentive and stock-based compensation159 139 152 
Employee benefits126 97 99 
Severance— 39 31 
Total personnel expense$674 $674 $701 



KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 21

Loan Composition
(Dollars in millions)
Change 3/31/2024 vs.
3/31/202412/31/20233/31/202312/31/20233/31/2023
Commercial and industrial (a)(b)
$54,793 $55,815 $60,565 (1.8)%(9.5)%
Commercial real estate:
Commercial mortgage14,540 15,187 16,348 (4.3)(11.1)
Construction3,013 3,066 2,590 (1.7)16.3 
Total commercial real estate loans17,553 18,253 18,938 (3.8)(7.3)
Commercial lease financing (b)
3,305 3,523 3,763 (6.2)(12.2)
Total commercial loans75,651 77,591 83,266 (2.5)(9.1)
Residential — prime loans:
Real estate — residential mortgage20,704 20,958 21,632 (1.2)(4.3)
Home equity loans6,905 7,139 7,706 (3.3)(10.4)
Total residential — prime loans27,609 28,097 29,338 (1.7)(5.9)
Other consumer loans5,690 5,916 6,398 (3.8)(11.1)
Credit cards935 1,002 969 (6.7)(3.5)
Total consumer loans34,234 35,015 36,705 (2.2)(6.7)
Total loans (c), (d)
$109,885 $112,606 $119,971 (2.4)%(8.4)%
(a)Loan balances include $214 million, $207 million, and $185 million of commercial credit card balances at March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $349 million at March 31, 2024, and no amounts held as collateral for a secured borrowing at December 31, 2023, and March 31, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $6 million, $7 million, and $6 million at March 31, 2024, December 31, 2023, and March 31, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $313 million at March 31, 2024, $339 million at December 31, 2023, and $407 million at March 31, 2023, related to the discontinued operations of the education lending business.
(d)Accrued interest of $508 million, $522 million, and $522 million at March 31, 2024, December 31, 2023, and March 31, 2023, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.
Loans Held for Sale Composition
(Dollars in millions)
Change 3/31/2024 vs.
3/31/202412/31/20233/31/202312/31/20233/31/2023
Commercial and industrial$— $50 $351 N/MN/M
Real estate — commercial mortgage155 382 815 (59.4)(81.0)
Real estate — residential mortgage73 51 45 43.1 62.2 
Total loans held for sale$228 $483 $1,211 (52.8)%(81.2)%
N/M = Not Meaningful
Summary of Changes in Loans Held for Sale
(Dollars in millions)
1Q244Q233Q232Q231Q23
Balance at beginning of period$483 $730 $1,130 $1,211 $963 
New originations1,738 1,879 3,035 1,798 1,779 
Transfers from (to) held to maturity, net(105)(31)(94)(52)(13)
Loan sales(1,893)(2,095)(3,312)(1,798)(1,518)
Loan draws (payments), net4 — (29)(28)— 
Valuation and other adjustments1 — — (1)— 
Balance at end of period$228 $483 $730 $1,130 $1,211 
    




KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 22

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months ended
3/31/202412/31/20233/31/2023
Average loans outstanding$111,034 $113,948 $119,837 
Allowance for loan and lease losses at the beginning of the period$1,508 $1,488 $1,337 
Loans charged off:
Commercial and industrial62 49 35 
Real estate — commercial mortgage5 24 5 
Real estate — construction— — — 
Total commercial real estate loans5 24 5 
Commercial lease financing— — (1)
Total commercial loans67 73 39 
Real estate — residential mortgage1 — — 
Home equity loans1 (2)1 
Other consumer loans16 14 11 
Credit cards12 10 9 
Total consumer loans30 22 21 
Total loans charged off97 95 60 
Recoveries:
Commercial and industrial8 11 8 
Real estate — commercial mortgage— 1 — 
Real estate — construction— 1 — 
Total commercial real estate loans— 2 — 
Commercial lease financing2 1 1 
Total commercial loans10 14 9 
Real estate — residential mortgage2 1 1 
Home equity loans1 — 1 
Other consumer loans2 1 3 
Credit cards1 3 1 
Total consumer loans6 5 6 
Total recoveries16 19 15 
Net loan charge-offs(81)(76)(45)
Provision (credit) for loan and lease losses115 96 88 
Allowance for loan and lease losses at end of period$1,542 $1,508 $1,380 
Liability for credit losses on lending-related commitments at beginning of period$296 $290 $225 
Provision (credit) for losses on lending-related commitments(14)6 51 
Other(1)— — 
Liability for credit losses on lending-related commitments at end of period (a)
$281 $296 $276 
Total allowance for credit losses at end of period$1,823 $1,804 $1,656 
Net loan charge-offs to average total loans.29 %.26 %.15 %
Allowance for loan and lease losses to period-end loans1.40 1.34 1.15 
Allowance for credit losses to period-end loans1.66 1.60 1.38 
Allowance for loan and lease losses to nonperforming loans234 263 332 
Allowance for credit losses to nonperforming loans277 314 398 
Discontinued operations — education lending business:
Loans charged off$1 $1 $1 
Recoveries— — — 
Net loan charge-offs$(1)$(1)$(1)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 23

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
1Q244Q233Q232Q231Q23
Net loan charge-offs$81 $76 $71 $52 $45 
Net loan charge-offs to average total loans.29 %.26 %.24 %.17 %.15 %
Allowance for loan and lease losses$1,542 $1,508 $1,488 $1,480 $1,380 
Allowance for credit losses (a)
1,823 1,804 1,778 1,771 1,656 
Allowance for loan and lease losses to period-end loans1.40 %1.34 %1.29 %1.24 %1.15 %
Allowance for credit losses to period-end loans1.66 1.60 1.54 1.49 1.38 
Allowance for loan and lease losses to nonperforming loans234 263 327 343 332 
Allowance for credit losses to nonperforming loans277 314 391 411 398 
Nonperforming loans at period end$658 $574 $455 $431 $416 
Nonperforming assets at period end674 591 471 462 447 
Nonperforming loans to period-end portfolio loans.60 %.51 %.39 %.36 %.35 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.61 .52 .41 .39 .37 
        
(a)Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
3/31/202412/31/20239/30/20236/30/20233/31/2023
Commercial and industrial$360 $297 $214 $188 $170 
Real estate — commercial mortgage113 100 63 65 59 
Real estate — construction— — — — — 
Total commercial real estate loans113 100 63 65 59 
Commercial lease financing1 — 1 1 1 
Total commercial loans474 397 278 254 230 
Real estate — residential mortgage79 71 72 73 75 
Home equity loans95 97 97 97 104 
Other Consumer loans4 4 4 4 4 
Credit cards6 5 4 3 3 
Total consumer loans184 177 177 177 186 
Total nonperforming loans (a)
658 574 455 431 416 
OREO16 17 16 15 13 
Nonperforming loans held for sale— — — 16 18 
Other nonperforming assets— — — — — 
Total nonperforming assets$674 $591 $471 $462 $447 
Accruing loans past due 90 days or more$119 $107 $52 $73 $55 
Accruing loans past due 30 through 89 days242 222 178 139 164 
Nonperforming assets from discontinued operations — education lending business 2 3 2 2 3 
Nonperforming loans to period-end portfolio loans.60 %.51 %.39 %.36 %.35 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.61 .52 .41 .39 .37 

Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
1Q244Q233Q232Q231Q23
Balance at beginning of period$574 $455 $431 $416 $387 
Loans placed on nonaccrual status243 297 159 169 143 
Charge-offs(97)(95)(87)(76)(60)
Loans sold(5)(9)(4)(23)(2)
Payments(35)(56)(25)(20)(31)
Transfers to OREO(2)(2)(3)(2)(2)
Loans returned to accrual status(20)(16)(16)(33)(19)
Balance at end of period$658 $574 $455 $431 $416 


KeyCorp Reports First Quarter 2024 Profit     
April 18, 2024
Page 24

Line of Business Results
(Dollars in millions)
Change 1Q24 vs.
1Q244Q233Q232Q231Q234Q231Q23
Consumer Bank
Summary of operations
Total revenue (TE)$773 $786 $791 $803 $840 (1.7)%(8.0)%
Provision for credit losses(2)5 14 32 60 (140.0)(103.3)
Noninterest expense703 780 677 663 663 (9.9)6.0 
Net income (loss) attributable to Key55 1 76 82 89 N/M(38.2)
Average loans and leases40,446 41,381 42,250 42,934 43,086 (2.3)(6.1)
Average deposits84,317 84,856 83,864 82,498 84,637 (.6)(.4)
Net loan charge-offs44 40 36 32 24 10.0 83.3 
Net loan charge-offs to average total loans.44 %.38 %.34 %.30 %.23 %15.8 91.3 
Nonperforming assets at period end$196 $190 $190 $193 $196 3.2 — 
Return on average allocated equity6.18 %0.11 %8.48 %9.04 %9.87 %N/M(37.4)
Commercial Bank
Summary of operations
Total revenue (TE)$791 $794 $790 $805 $844 (.4)%(6.3)%
Provision for credit losses102 96 68 134 80 6.3 27.5 
Noninterest expense442 525 431 405 442 (15.8)— 
Net income (loss) attributable to Key200 143 226 214 255 39.9 (21.6)
Average loans and leases70,099 72,088 74,951 77,277 76,306 (2.8)(8.1)
Average loans held for sale840 635 1,268 1,014 876 32.3 (4.1)
Average deposits56,090 56,897 54,896 51,420 52,219 (1.4)7.4 
Net loan charge-offs37 35 35 20 21 5.7 76.2 
Net loan charge-offs to average total loans.21 %.19 %.19 %.10 %.11 %10.5 90.9 
Nonperforming assets at period end$479 $401 $281 $269 $251 19.5 90.8 
Return on average allocated equity8.02 %5.64 %8.64 %8.17 %10.04 %42.2 (20.1)
TE = Taxable Equivalent; N/M = Not Meaningful


Selected Items Impact on Earnings(a)
(Dollars in millions, except per share amounts)
Pretax(b)
After-tax at marginal rate(b)
Quarter to date resultsAmountNet Income
EPS(c)
Three months ended March 31, 2024
FDIC special assessment (other expense)(d)
$(29)$(22)$(0.02)
Three months ended December 31, 2023
Efficiency related expenses(e)
(67)(51)(0.05)
Pension settlement (other expense)(18)(14)(0.02)
FDIC special assessment (other expense)(d)
(190)(144)(0.15)
Total selected items(275)(209)(0.22)
Three months ended March 31, 2023
Efficiency related expenses(f)
(64)(49)(0.05)
(a)Includes items impacting results or trends during the period but are not considered non-GAAP adjustments.
(b)Favorable (unfavorable) impact.
(c)Impact to EPS reflected on a fully diluted basis.
(d)In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024.
(e)Efficiency related expenses for the three months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.
(f)Efficiency related expenses for the three months ended March 31, 2023, consist primarily of $31 million of severance recorded in personnel expense and $28 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.

a1q24confcallslidesvf
KeyCorp First Quarter 2024 Earnings Review April 18, 2024 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer

 
2 Note: All metrics are as of 3/31/2024 unless otherwise noted (1) 3/31/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision ✓Enhanced underwrite-to- distribute platform through partnership with Blackstone+6% YoY Commercial Client Growth Differentiated Fee Businesses Focused on Targeted Scale Driving New Relationships Focused on Primacy 10.3% Common Equity Tier 1(1) +6% YoY Increase in noninterest income, driven by record 1Q Investment Banking fees Strengthening the Balance Sheet Reduced reliance on wholesale funding and higher-cost brokered deposits 29bps NCOs / Average Loans Risk Management Excellence Expanded underwrite-to-distribute model by formulating a new strategic partnership +2.5% YoY Net New Relationship Household Growth 1Q24 Results 60bps NPAs / Period-end Loans

 
Financial Review

 
4 Reported QoQ▪ EPS of $0.20, with $0.02 impact from FDIC special assessment of $29MM pre-tax(1) ▪ Net interest income down 4.5% sequentially, as expected, reflecting lower loan balances and higher funding costs ▪ Noninterest income up 6% QoQ and YoY, primarily due to a record first quarter performance in investment banking ▪ Expenses were down reflecting significant impact from selected items in prior periods ‒ Excluding selected items(1), expenses were flat YoY and up 1.5% QoQ ▪ Provision for Credit Losses of $101MM, flat QoQ and included $81MM of NCOs and ~$20MM build to the allowance for credit losses ▪ CET1 increased 24 bps QoQ to 10.3%, and tangible book value per common share declined just 1.5% sequentially despite impact of higher interest rates on unrealized losses in the AFS securities portfolio YoY EPS $0.20 N/M (33)% Net Interest Income (TE) $886 (4.5)% (20)% Noninterest Income $647 6% 6% Revenue $1,533 (-)% (11)% Noninterest Expense $1,143 (17)% (3)% Provision for Credit Losses $101 (1)% (27)% CET1(2) 10.3% 24 bps ~120 bps $ in millions, excluding EPS From continuing operations, unless otherwise noted N/M = Not Meaningful (1) Please see slide 26 for breakout on Selected Items Impact on Earnings; (2) 3/31/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (3) Non-GAAP measure: see appendix for reconciliation Tangible Book Value per Common Share $9.87 (1.5)% 2% Cash Efficiency Ratio(3) 74.0% N/M 600 bps ROTCE(3) 7.87% 641 bps (529) bps Includes $0.02 impact from special assessment(1) 1Q24 Highlights

 
$83.1 $84.0 $81.6 $78.6 $76.4 $36.8 $36.6 $36.1 $35.3 $34.6 1.00% 1Q23 2Q23 3Q23 4Q23 1Q24 5 ▪ Average loans down 2.6% from 4Q23 − Decline in commercial loans (-$2.2Bn), mostly driven by C&I − Decline in average consumer loans (-$750MM) driven by declines across all consumer loan categories vs. Prior Quarter Portfolio Highlights Consumer Commercial Loan Yield $119.8 $120.7 $117.6 $113.9 $111.0 $ in billions ▪ ~62% variable rate, or 47% after adjusting for loans swapped to a fixed rate; loan yields would have been 6.4% in first quarter 2024 excluding the impact from hedges(3) ▪ ~86%(4) of commercial loans are with relationship clients that have two or more products with Key ▪ 54% of the C&I portfolio is investment grade; Consumer book has a 769 weighted average FICO at origination ▪ C&I loan utilization: 32% in 1Q24 QoQ Avg Balances by Type 5.01% 5.26% 5.41% 5.51% 5.61% EOP Loans: $109.9Bn Down 2% QoQ C&I Commercial Leases 4Q23 1Q24Other Consumer (2) CRE(1) Residential Mortgage Note: Graphs may not foot due to rounding (1) CRE includes real estate – commercial mortgage and real estate – construction; (2) Other Consumer includes home equity loans, credit cards, and other consumer loans; (3) Non-GAAP measure: see appendix for reconciliation; (4) Relationship client is defined as having two or more of the following: credit, capital markets, or payments Average Loans

 
vs. Prior Quarter Deposit Franchise Highlights 6 ▪ Average deposits were down 1.5% from from 4Q23 − Included ~$1Bn decline in brokered CDs − Client deposits down slightly reflecting seasonal outflows in commercial ▪ Client deposits up 2% year-over-year ▪ Total deposit costs rose by 14 basis points − Reflects rollover of MMDAs and CDs at higher rates, and deposit mix shift − Cumulative total interest-bearing deposit beta: ~52%(2) ▪ Commercial deposit balances driven by relationship clients − 78% of commercial deposits in core operating accounts − 95% of commercial deposits have an operating account ▪ Loan-to-deposit ratio: 77%(3) Consumer Other(1) Commercial $84.6 $82.5 $83.9 $84.9 $84.3 $52.2 $51.4 $54.9 $56.9 $56.1 $6.6 $9.0 $6.1 $3.3 $2.5 1Q23 2Q23 3Q23 4Q23 1Q24 $144.8$143.4 $142.9 $145.1 0.99% $142.9 Total deposit cost 1Q24 Product Mix Time deposits Savings Noninterest- bearing Demand 39% 21% 26% 4% 1Q24 Interest-bearing Mix Consumer 21% $ in billions 1.49% 1.88% 2.06% 2.20% 10% MMDA Other Commercial / Treasury Managed Indexed Commercial Wealth 53% 7% ~25% ~15% Note: Graphs may not foot due to rounding (1) Other includes treasury brokered deposits and other deposits; (2) Cumulative beta indexed to 4Q21; (3) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits Average Deposits

 
TE = Taxable equivalent Note: NIM Walk may not foot due to rounding 7 1Q23 2Q23 3Q23 4Q23 1Q24 $1,106 $923 $886 NII Walk (TE) NIM Walk (TE) 2.12% $986 $928 2.47% 2.01% 2.07% 2.02% Swap & UST Roll-off Lower Loan Volumes Deposit Costs & Mix Other 4Q23 1Q24 Swap & UST Roll-off Other Fixed Rate Assets Repricing Deposit Costs & Mix Other, Primarily Day Count 4Q23 1Q24 9bps Net Interest Income and Margin (TE) Other Fixed Rate Assets Repricing From continuing operations, $ in millions Lower Loan Volumes 2bps (6)bps (8)bps (1)bps

 
$145 $136 $170 $128 $132 $136 $81 $84 $77 $76 $67 $69 $67 $65 $63 $46 $48 $56 $65 $78 $76 1Q23 4Q23 1Q24 QoQ 8 $608 % change YoY +22% (6)% (9)% +17% (5)% +6% +17% +17% (3)% +3% (3)% (8)% +3% +25% vs. Prior Year $610 $647 +6% +6% $ in millions Investment Banking & Debt Placement Trust & Investment Services Cards & Payments Other(1) Corporate Services Service Charges on Deposit Acct Commercial Mortgage Servicing ▪ Noninterest income up $39MM (+6%) from 1Q23 − Higher Investment Banking and Debt Placement fees (+$25MM) related to strong commercial mortgage, M&A, and debt capital markets activity − Increase in Commercial Mortgage Servicing fees (+$10MM) − Trust & Investment Services growth (+$8MM) driven by higher market values and momentum in Key Private Client (1) Other includes Corporate-Owned Life Insurance Income, Consumer Mortgage Income, Operating Lease Income and Other Leasing Gains, and Other Income Noninterest Income

 
9 $665 $631 $674 $447 $466 $440 $64 $275 $29 $1,176 $1,372 1Q23 4Q23 1Q24 Personnel Non-personnel Selected Items Impact on Earnings(1) vs. Prior Year % change YoY QoQ (2)% 1% (6)% 7% (3)% (17)% ▪ Noninterest expense down $33MM (-3%) from 1Q23 − 1Q24 Noninterest expense included $29M pre-tax, from the FDIC special assessment(1) − 1Q23 Noninterest expense included $64MM pre-tax, from efficiency related expenses(1) ▪ Excluding selected items, personnel expenses increased by 1% reflecting merit and inflation, and incentive compensation related to strong fee revenues, offset by lower headcount reflecting efficiency related actions taken last year $ in millions $1,143 (1) Please see slide 26 for breakout on Selected Items Impact on Earnings FDIC Special Assessment(1) Efficiency Related Expenses(1) Noninterest Expense

 
0.14% 0.12% 0.15% 0.20% 0.22% 0.05% 0.06% 0.04% 0.09% 0.11% 1Q23 2Q23 3Q23 4Q23 1Q24 NCO = Net charge-off (1) Loan and lease outstandings 10 $ in millions $3,295 $3,921 $4,475 $4,984 $6,588 1Q23 2Q23 3Q23 4Q23 1Q24 30 – 89 days delinquent 90+ days delinquent Net Charge-offs & Provision for Credit Losses Delinquencies to Period-end Total Loans Criticized Outstandings(1) to Period-end Total Loans $ in millions; Continuing Operations Criticized Outstandings to Period-end Total LoansCriticized Outstandings 2.8% 3.3% 3.9% 4.4% 6.0% $45 $52 $71 $76 $81$139 $167 $81 $102 $101 1Q23 2Q23 3Q23 4Q23 1Q24 NCOs Provision for credit losses NCOs to avg. loans 0.15% 0.17% 0.24% 0.26% 0.29% $416 $431 $455 $574 $658 1Q23 2Q23 3Q23 4Q23 1Q24 Nonperforming Loans to Period-end Total Loans $ in millions Nonperforming Loans to Period-end Total LoansNonperforming Loans 0.35% 0.36% 0.39% 0.51% 0.60% Credit Quality Continuing Operations

 
1.2% 2.7% 0.7% 8.4% 2.3% 1.2% 2.5% 0.8% 7.9% 2.6% C&I CRE Mortgage Residential Real Estate Credit Cards Other Consumer ALLL Peer Average(1) as of 12/31/23KEY ALLL $1,656 $1,771 $1,778 1,804 1,823 1Q23 2Q23 3Q23 4Q23 1Q24 11 Portfolio Drivers Economic Drivers Allowance for Credit Losses Walk 4Q23 $1,804 $1,823 1Q24 Allowance for Credit Losses to Period-end LoansAllowance for Credit Losses $ in millions Allowance for Credit Losses (ACL) 1.38% 1.49% 1.54% 1.60% 1.66% Allowance for Loan Losses as % Period-end Loans by Type $ in millions 3.0% ACL against NOO-CRE Drivers of Allowance for Credit Losses Note: NOO-CRE = Nonowner Occupied Commercial Real Estate; ALLL = Allowance for Loan and Lease Losses (1) Peer Average includes: CFG, CMA, FITB, HBAN, MTB, PNC, RF, TFC, USB, ZION

 
AFS AOCI 7.0 7.0 7.0 7.0 7.0 1Q23 2Q23 3Q23 4Q23 1Q24 12 $ in billions $(5.3) $(4.4) $(4.6) ~18% ~32% $(3.6) $(4.0) AOCI Forward Rates 12/31/2024 12/31/2025 AOCI Flat Rates 12/31/2024 12/31/2025 AOCI Position 3/31/2024 ~13% ~25% AOCI burn down assuming ~6 rate cuts through 2025 & 3-5 year UST rates decline by ~35bps AOCI burn down assuming rates hold at 3/31/2024 levels Tangible Common Equity Ratio(2) Common Equity Tier 1(1) Projected AOCI Impacts(3) 4.6% 4.5% 4.4% 5.1% 5.0% 1Q23 2Q23 3Q23 4Q23 1Q24 Regulatory Minimum with buffers 9.1% 9.3% 9.8% 10.0% Target operating range: 9% - 9.5% $(3.8) $(3.3) $(3.8) $(3.3) 10.3% Adjusted for unrealized AFS Securities and Pension losses(2) $(4.3) Other AOCI 6.3% 6.2% 6.2% 7.0% 7.1% (1) 3/31/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (2) Non-GAAP measure: see appendix for reconciliation; (3) Assumes market forwards as of 3/31/2024 Capital

 
FY2024 (vs. FY2023)2023 13 Note: Guidance range: relatively stable: +/- 2% (1) The noninterest expense guidance excludes the FDIC special assessment of $190MM, efficiency related expenses of $131MM, and a pension settlement charge of $18MM in 2023; (2) The noninterest expense guidance excludes the FDIC special assessment of $29MM in 2024 $118,004 $112,606 Average Loans Ending Loans Noninterest Income Noninterest Expense NCOs to Avg Loans GAAP Tax Rate down 5 - 7% relatively stable vs. YE23 balance Long-term Targets $144,059 $3,943 Positive operating leverage Cash efficiency ratio: 54% - 56% Moderate risk profile: Net charge-offs to avg. loans targeted range of 40-60 bps ROTCE: 16% - 19% flat to down 2% down 2 - 5% up low-single digits vs. 4Q23 annualized exit rate 10%+ 4Q24 vs. 4Q23 up 5%+ relatively stable(1,2) 30 – 40 bps Average Deposits $2,470 $4,734 21 bps 16.9% ~20% $ in millions 2024 Outlook Net Interest Income (TE) Includes selected items of $339MM(1)

 
$1.3 $1.9 $1.9 $1.5 $2.6 $2.9 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 (1) Assumes the forward curve as of 3/31/2024 and maturities to occur on the last day of each quarter; only includes swap and Treasury maturities 14 Treasuries Swaps $3.1 $2.8 $4.5 $4.8 $2.7 $1.7 $1.1 Benefit Realized WA Maturity Yields $ in billions ▪ ~$540MM expected total benefit in 2024 ▪ ~$320MM annualized benefit in 1Q run rate ▪ ~$220MM expected incremental benefit FY24 vs. 1Q24 annualized run rate 1 Tailwinds from Short-term Swaps & Treasuries Maturities(1) Maturities Schedule 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 $117 $149 $198 $244 0.54% 0.49% 0.50% $ in millions; cumulative view Terminated CF Swaps ▪ ~$975MM expected annualized NII opportunity by 1Q25 (~30% realized to date) 2 ~$80 NII Opportunity From Swaps and Treasuries

 
15 ▪ Loan Balances − Period-end loans relatively stable (12/31/24 vs. 12/31/23), implies 2%-3% growth off 3/31/24 levels by year-end ▪ Deposit Costs − Forward Curve Scenario: Deposit costs peak in 1H24, lag in Consumer betas for first few rate cuts − Flat Rate Scenario: Cumulative beta reaches mid- 50%’s ▪ Deposit Balances and Mix − Avg deposits flat to down slightly (4Q24 vs 1Q24) − Some continued modest migration from NIB to IB deposits ▪ Other Assets Repricing − ~$1.1Bn of securities cash flows roll-off quarterly at ~2.3% – 2.5% − Forward Curve Scenario: Variable-rate loans reprice immediately Swap & UST Roll-off Other Assets Repricing Lower Funding Costs Loan Growth1Q24 4Q24 Achieving 4Q24 Exit Rate NII Target – Forward Curve(1) Change to NII ($ in millions ); Illustrative, not drawn to scale Other Key Inputs & Assumptions Achieving 4Q24 Exit Rate NII Target – Flat Rate Change to NII ($ in millions); Illustrative, not drawn to scale $886 $1Bn+ $886 $1Bn+ Swap & UST Roll-off Other Assets Repricing Higher Funding Costs 1Q24 4Q24Loan Growth 2.40 – 2.50% NIM 2.40 – 2.50% NIM (1) As of 3/31/2024 assumes two rate cuts in 2024 NII Opportunity From Swaps and Treasuries

 
Appendix

 
Brokered Deposits ▪ Proactive balance sheet management − Right-sized the balance sheet − Significantly increased CET1 through RWA optimization − Vastly improved liquidity and funding profile ▪ Targeted expense reductions to hold expenses relatively stable − Simplified and streamlined businesses 17 ▪ Franchise momentum: client growth, consistent business flows, strong deposit base ▪ Upside to capital markets recovery ▪ Strengths play to market trends − Strong fee-based businesses − Underwrite-to-distribute business model ▪ Core funded balance sheet more resilient to changes in interest rates ▪ Outsized fixed asset repricing benefit from the roll-off of swaps and Treasuries ▪ High-quality portfolio with strong credit quality − Low exposure to leveraged lending, office, and construction Repositioned Company in 2023 Well-Positioned Moving Forward $34 $24 45016 45382 1Q23 1Q24 31% 3/31/23 3/31/24 3/31/23 3/31/24 Wholesale Funding(1) 62% (1) Wholesale funding includes Federal funds purchased and securities sold under repurchase agreements, bank notes and other short-term borrowings, and long-term debt Positioned for the Future $in billions $in billions $8 $3

 
1% Office 3% 4% 5% < Nonowner-Occupied CRE Loan Portfolio Composition Category III banks KEY Regional bank peers All banks >$10Bn assets 13% Note: NOORE = Nonowner occupied real estate (Commercial Real Estate); KEY data as of 3/31/2024 (1) Data as of 12/31/2023; Sourced from ffiec.gov ‘peer group average reports’; (2) Data as of 12/31/2023; Includes: CFG, CMA, FCNCA, FITB, HBAN, MTB, RF and ZION; (3) Data as of 12/31/2023; Includes: COF, PNC, TFC and USB; (4) Other NOORE includes Diversified, Industrial, Land & Residential, Retail, Senior Housing, Student Housing, Lodging, Medical Office, Self Storage, Skilled Nursing, and Other 18 Category III banks(3) KEY Regional bank peers(2) All banks >$10Bn assets(1) As a % Total Loans All other loans As a % Total Loans • $0 nonowner-occupied construction • Nonperforming loans: 5.2% • Reserves to loans: ~8% • B&C Class properties in CBDs <0.1% of total loans • Nonperforming loans: 0.72% • Reserves to loans: ~3% • No core-based statistical area >4.2% of total nonowner-occupied CRE Office Highlights Nonowner-Occupied CRE Highlights Affordable Housing Other NOORE(4) Traditional Multifamily High-quality CRE portfolio has relatively limited exposure and is diversified by property type and geography 30% 17% 11% Commercial Real Estate

 
19 Multifamily Portfolio Highlights Affordable Housing Loan Portfolio Highlights ▪ Targeted clients utilize low-income housing tax credit (LIHTC) financing programs to build, acquire, rehab and preserve facilities ▪ Significant shortage requires continued investments in new supply, preservation of existing supply, and expansion of government subsidies and programs ▪ Long-term financing structures result in limited refinance and interest rate risk ▪ Construction loans underwritten with forward commitments for permanent financing as part of distribution model 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 ▪ Diversified - no more than ~4% of Multifamily Loans concentrated in any market(1) ▪ No exposure to rent controlled properties in New York City ▪ Only ~4% of portfolio in NYC, Chicago, Los Angeles and San Francisco Affordable Housing Loans Driving most of Multifamily Growth $5,074 $5,247 $6,736 $8,889 $8,853 Traditional Market Rate Multifamily Affordable Housing 23% 28% 28% 31% 37% +29% Affordable Housing CAGR +9% Traditional Multifamily CAGR $ in millions Note: All data as of 3/31/2024 unless otherwise noted (1) Measured as core-based statistical area (CBSA); (2) Defined as New York City, Los Angeles, Chicago, Washington DC, San Francisco, and Boston Market Rate Multifamily Loan Portfolio Highlights ▪ Relationship model focused on owners and operators of multifamily projects, rather than developers ▪ Gateway Markets(2) less than 5% of exposure – 2/3 of portfolio is suburban ▪ Loans underwritten based on long-term permanent rates on actual, non-trended rents, reducing refinance and interest rate risk ▪ Over 80% of exposure has recourse Business leverages our originate-to-distribute model and is a mixture of market rate and affordable housing Commercial Real Estate: Multifamily

 
0.39% 0.14% (0.02)% 0.00% 4.64% 0.97% C&I CRE Resi Mtg Home Equity Credit Cards Other Consumer 20 Net Loan Charge-offs(1) to Average Loans (%)(2) Allowance to NPLs (%)(2) Criticized Outstandings to Period-end Loans (%)(2) 182% 398% 152% 83% N/M N/M C&I CRE Resi Mtg Home Equity Credit Cards Other Consumer 7.1% 13.5% 0.4% 1.5% 1.8% 0.3% C&I CRE Resi Mtg Home Equity Credit Cards Other Consumer Credit Quality by Portfolio (3), (4) (3), (4) (3), (4) N/M = Not Meaningful (1) Net loan charge-off amounts are annualized in calculation; (2) Ratios calculated using unrounded figures and therefore may not foot to calculation using rounded figures presented in chart; (3) Loan balance includes $214 million of commercial credit card balances at March 31, 2024; (4) Commercial and industrial includes receivables held as collateral for a secured borrowing of $349 million at March 31, 2024. Principal reductions are based on the cash payments received from these related receivables

 
$1.5 $2.6 $2.9 $0.3 2Q24 3Q24 4Q24 1Q25 Prime 8% 1M SOFR 21% 3M SOFR 7% O/N SOFR 25% Fixed 38% Other 2% Loan Composition(1) Earning Asset Mix(2) 64% 22% 5% 8% 2% Total Loans AFS Securities Other(3) $8.9 $9.4 $9.0 $8.7 $8.4 $39.2 $38.9 $37.3 $35.6 $37.1 1Q23 2Q23 3Q23 4Q23 1Q24 Average AFS Securities Average Yield(4)Average HTM Securities $ in billions Average Total Investment Securities Balance Sheet Mix and Trends $48.1 $46.3 $44.3 (1) Loan statistics based on 3/31/2024 period-end balances; (2) Based on 3/31/2024 period-end balances; (3) Other includes loans HFS and trading account assets; (4) Yield is calculated on the basis of amortized cost Projected Cash Flow & Maturities (Under Implied Forward Rates) Floating Rate (Including Hedges) Existing Securities Portfolio Repricing Characteristics $ in billions 0.45% WA yield on portfolio $ in billions Short-term Treasury Maturities WA Maturity Yield Short-term Treasury Maturities 21 1.98% 2.04% 2.06% 2.26% .45% .44% .48% .63% Balance Sheet Management Detail $10.4 $4.9 $4.7 $22.7 $16.7 $15.8 2024 2025 2026 2.40% $45.5$48.3 ST Investments HTM Securities

 
Hedging Strategy $2.0 $3.3 $3.5 $3.5 $3.1 $1.4 $3.3 $3.3 $2.5 $9.0 $9.0 $9.0 $8.0 $8.0 $6.2 1Q24 2Q24 3Q24 4Q24 2025 2026 $ in billions Forward-starting Rec Fixed ALM Swaps Floor SpreadsSpot Starting Pay Fix Swaps $ in billions 3/31/2024 ALM Hedges(2) $ 17.3 ALM Forward Hedges(2) 5.3 Debt Swaps 11.3 Securities Hedges(3) 9.4 Non-zero Commercial Loan Floors 8.7 4Q22 – 1Q24 ALM Hedge Actions(1) ▪ Executed $250MM of forward-starting receive fixed swaps - WA receive rate: 3.85% (January 2025 start date) ▪ Executed $950MM of forward-starting debt hedges – WA receive rate: 3.77% (March 2025 start date) ▪ Executed $750MM of spot pay fix swaps to hedge securities – WA pay rate: 4.1% 22 Opportunistically locking in future benefit while managing downside risk (1) Chart includes forward-starting swaps and floor spreads since 4Q22; (2) Floating rate loans swapped to fixed rate; (3) AFS securities swapped to floating rate Hedge Portfolio 1Q24 ALM Hedge Actions

 
GAAP to Non-GAAP Reconciliation (1) For the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, intangible assets exclude $1 million, $1 million, and $1 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus; (3) For the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, average intangible assets exclude $1 million, $1 million, and $1 million, respectively, of average purchased credit card receivables. 23 $ in millions 1Q24 4Q23 1Q23 Tangible common equity to tangible assets at period end Key shareholders’ equity (GAAP) $ 14,547 $ 14,637 $ 14,322 Less: Intangible assets(1) 2,799 2,806 2,836 Preferred stock(2) 2,446 2,446 2,446 Tangible common equity (non-GAAP) 9,302 $ 9,385 $ 9,040 Total assets (GAAP) $ 187,485 $ 188,281 $ 197,519 Less: Intangible assets(1) 2,799 2,806 2,836 Tangible assets (non-GAAP) $ 184,686 $ 185,475 $ 194,683 Tangible common equity to tangible assets ratio (non-GAAP) 5.04 % 5.06 % 4.64 % Average tangible common equity Average Key shareholders’ equity (GAAP) $ 14,649 $ 13,471 $ 13,817 Less: Intangible assets (average) (3) 2,802 2,811 2,841 Preferred stock (average) 2,500 2,500 2,500 Average tangible common equity (non-GAAP) $ 9,347 $ 8,160 $ 8,476

 
GAAP to Non-GAAP Reconciliation 24 $ in millions 1Q24 4Q23 1Q23 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ 183 $ 30 $ 275 Average tangible common equity (non-GAAP) 9,347 8,160 8,476 Return on average tangible common equity from continuing operations (non-GAAP) 7.87 % 1.46 % 13.16 % Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) $ 183 $ 30 $ 276 Average tangible common equity (non-GAAP) 9,347 8,160 8,476 Return on average tangible common equity consolidation (non-GAAP) 7.87 % 1.46 % 13.21 % Cash efficiency ratio Noninterest expense (GAAP) $ 1,143 $ 1,372 $ 1,176 Less: Intangible asset amortization 8 10 10 Adjusted noninterest expense (non-GAAP) $ 1,135 $ 1,362 $ 1,166 Net interest income (GAAP) $ 875 $ 921 $ 1,099 Plus: Taxable-equivalent adjustment 11 7 7 Noninterest income (GAAP) 647 610 608 Total taxable-equivalent revenue (non-GAAP) $ 1,533 $ 1,538 $ 1,714 Cash efficiency ratio (non-GAAP) 74.0 % 88.6 % 68.0 %

 
GAAP to Non-GAAP Reconciliation 25 CET1 – AOCI Impact(1) ($ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Common Equity Tier 1 (A) $ 14,781 $ 14,887 $ 15,007 $ 14,894 $ 14,837 Add: accumulated other Comprehensive income (loss) (4,559) (4,961) (5,581) (4,573) (4,608) Adjusted Common Equity Tier 1 (B) $ 10,223 $ 9,926 $ 9,426 $ 10,321 $ 10,229 Risk Weighted Assets (C) $ 162,941 $ 160,422 $ 152,672 $ 148,575 $ 144,554 Common Equity Tier 1 ratio (A/C) 9.07 % 9.28 % 9.83 % 10.02 % 10.26 % Adjusted CET1 Ratio (B/C) 6.27 % 6.19 % 6.17 % 6.95 % 7.08 % (1) Under the current applicable regulatory capital rules, Key has made the AOCI opt out election, which enables us to exclude components of AOCI from regulatory capital, notably the AOCI relative to securities and pension. Adjusted CET1 ratio is a non-GAAP measure and is calculated based on Common Equity Tier 1 capital, inclusive of the AOCI impact from securities and pension, divided by risk weighted assets. We believe this non-GAAP measure provides useful information in light of the potential for change in the regulatory capital framework; (2) Loan Yields Excluding Impact from Hedges is a non-GAAP metric and is calculated by excluding losses realized on derivatives which hedge the interest rate risk of our loans. We believe this metric is meaningful as it provides information on loan yields excluding the impacts of hedge-related interest rate risk management programs Loan Yields Excluding Impact from Hedges(2) 1Q23 2Q23 3Q23 4Q23 1Q24 Loan Yield 5.01 % 5.26 % 5.41 % 5.51 % 5.61 % Subtract: Loan Yield Impact of Realized Hedge Gains/(Losses) (0.73) % (0.82) % (0.86) % (0.84) % (0.78) % Loan Yield Excluding Impact from Hedges 5.74 % 6.08 % 6.27 % 6.35 % 6.39 %

 
(1) Includes items impacting results or trends during the period but are not considered non-GAAP adjustments. (2) Favorable (unfavorable) impact (3) Impact to EPS reflected on a fully diluted basis (4) In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024. (5) Efficiency related expenses for the three months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense. (6) Efficiency related expenses for the three months ended March 31, 2023, consist primarily of $31 million of severance recorded in personnel expense and $28 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense. 26 Selected Items Impact on Earnings(1) $ in millions, except per share amounts Pretax(2) After-tax at marginal rate(2) Quarter to date results Amount Net Income EPS(3) Three months ended March 31, 2024 FDIC special assessment (other expense)(4) $ (29) $ (22) $ (0.02) Three month ended December 31, 2023 Efficiency related expenses (5) $ (67) $ (51) $ (0.05) Pension settlement (other expense) (18) (14) (0.02) FDIC special assessment (other expense)(4) (190) (144) (0.15) Total selected items (275) (209) (0.22) Three month ended March 31, 2023 Efficiency related expenses(6) (64) (49) (0.05) Selected Items Impact on Earnings

 
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “seek,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible,” “potential,” “strategy,” “opportunities,” or “trends,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp’s control). Actual results may differ materially from current projections. Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward-looking Statements” and “Risk Factors” in KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2023, and in subsequent filings of KeyCorp with the Securities and Exchange Commission (the “SEC”). Such forward- looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir. This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Key’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in in the appendix to this presentation, the financial supplement, or the press release related to this presentation, all of which can be found on Key’s website (www.key.com/ir). Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of peers. Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, with this then being the amount used to calculate the earnings per share equivalent. GAAP: Generally Accepted Accounting Principles 27 Forward-looking Statements and Additional Information

 
Document
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
3/31/202412/31/20233/31/2023
Assets
Loans$109,885 $112,606 $119,971 
Loans held for sale 228 483 1,211 
Securities available for sale37,298 37,185 39,498 
Held-to-maturity securities8,272 8,575 9,561 
Trading account assets1,171 1,142 1,118 
Short-term investments13,205 10,817 8,410 
Other investments1,247 1,244 1,587 
Total earning assets171,306 172,052 181,356 
Allowance for loan and lease losses(1,542)(1,508)(1,380)
Cash and due from banks1,247 941 784 
Premises and equipment650 661 628 
Goodwill2,752 2,752 2,752 
Other intangible assets48 55 85 
Corporate-owned life insurance4,392 4,383 4,372 
Accrued income and other assets8,314 8,601 8,512 
Discontinued assets318 344 410 
Total assets$187,485 $188,281 $197,519 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits114,593 114,859 106,841 
Noninterest-bearing deposits29,638 30,728 37,307 
Total deposits144,231 145,587 144,148 
Federal funds purchased and securities sold under repurchase agreements 27 38 1,374 
Bank notes and other short-term borrowings2,896 3,053 10,061 
Accrued expense and other liabilities5,008 5,412 4,861 
Long-term debt20,776 19,554 22,753 
Total liabilities172,938 173,644 183,197 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,164 6,281 6,207 
Retained earnings15,662 15,672 15,700 
Treasury stock, at cost(5,722)(5,844)(5,868)
Accumulated other comprehensive income (loss)(5,314)(5,229)(5,474)
Key shareholders’ equity14,547 14,637 14,322 
Noncontrolling interests— — — 
Total equity14,547 14,637 14,322 
Total liabilities and equity$187,485 $188,281 $197,519 
Common shares outstanding (000)942,776 936,564 935,229 



Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months ended
3/31/202412/31/20233/31/2023
Interest income
Loans$1,538 $1,574 $1,476 
Loans held for sale14 12 13 
Securities available for sale232 213 194 
Held-to-maturity securities75 78 74 
Trading account assets14 13 12 
Short-term investments142 138 42 
Other investments17 22 13 
Total interest income2,032 2,050 1,824 
Interest expense
Deposits782 754 350 
Federal funds purchased and securities sold under repurchase agreements1 — 22 
Bank notes and other short-term borrowings46 45 78 
Long-term debt328 330 275 
Total interest expense1,157 1,129 725 
Net interest income875 921 1,099 
Provision for credit losses101 102 139 
Net interest income after provision for credit losses774 819 960 
Noninterest income
Trust and investment services income136 132 128 
Investment banking and debt placement fees170 136 145 
Service charges on deposit accounts63 65 67 
Operating lease income and other leasing gains24 22 25 
Corporate services income69 67 76 
Cards and payments income77 84 81 
Corporate-owned life insurance income32 36 29 
Consumer mortgage income14 11 11 
Commercial mortgage servicing fees56 48 46 
Other income6 9 — 
Total noninterest income647 610 608 
Noninterest expense
Personnel674 674 701 
Net occupancy67 65 70 
Computer processing102 92 92 
Business services and professional fees41 44 45 
Equipment20 24 22 
Operating lease expense17 18 20 
Marketing19 31 21 
Intangible asset amortization— — — 
Other expense203 424 205 
Total noninterest expense1,143 1,372 1,176 
Income (loss) from continuing operations before income taxes278 57 392 
Income taxes59 (8)81 
Income (loss) from continuing operations219 65 311 
Income (loss) from discontinued operations, net of taxes— — 1 
Net income (loss)219 65 312 
Less: Net income (loss) attributable to noncontrolling interests— — — 
Net income (loss) attributable to Key$219 $65 $312 
Income (loss) from continuing operations attributable to Key common shareholders$183 $30 $275 
Net income (loss) attributable to Key common shareholders183 30 276 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.20 $.03 $.30 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.20 .03 .30 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.20 $.03 $.30 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.20 .03 $.30 
Cash dividends declared per common share$.205 $.205 $.205 
Weighted-average common shares outstanding (000)929,692 927,517 926,490 
Effect of common share options and other stock awards7,319 6,529 7,314 
Weighted-average common shares and potential common shares outstanding (000) (b)
937,011 934,046 933,804 
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.