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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): October 17, 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 October 17, 2024, KeyCorp issued a press release announcing its financial results for the three- and nine-month periods ended September 30, 2024 (the “Press Release”), and posted on its website its third 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:




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: October 17, 2024/s/ Stacy L. Gilbert
By: Stacy L. Gilbert
Chief Accounting Officer



                                    
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KEYCORP REPORTS THIRD QUARTER 2024 NET LOSS OF $(447) MILLION,
OR $(.47) PER DILUTED COMMON SHARE, AND ADJUSTED NET INCOME OF $290 MILLION, OR $.30 PER DILUTED COMMON SHARE(a)


Received initial $821 million tranche of strategic minority investment from Scotiabank; Common Equity Tier 1 ratio of 10.8% and Tangible Common Equity ratio of 6.2%(b)

Net interest income up 7% quarter-over-quarter, with average deposits up 2.5%; Client deposits were up 4% year-over-year

Continued strong fee momentum across investment banking, commercial mortgage servicing, commercial payments, and wealth management

Nonperforming assets and provision for credit losses were stable to improved quarter-over-quarter



    CLEVELAND, October 17, 2024 - KeyCorp (NYSE: KEY) today announced net loss from continuing operations attributable to Key common shareholders of $(447) million, or $(.47) per diluted common share, or adjusted net income of $290 million or $.30 per diluted common share(a), for the third quarter of 2024. Included in the third quarter of 2024 are $(737) million, or $(.77) per diluted common share, after-tax, of charges related to the loss on the sale of securities(c). Net income from continuing operations attributable to Key common shareholders was $237 million, or $.25 per diluted common share, for the second quarter of 2024 and $266 million, or $.29 per diluted common share, for the third quarter of 2023.
Comments from Chairman and CEO, Chris Gorman

"Key performed well in the third quarter. EPS was impacted by a previously communicated securities portfolio repositioning that will enhance future earnings, capital, and liquidity starting in the fourth quarter. Underlying results were solid as relationship clients, deposits, and business-related fees all demonstrated
continued momentum. As anticipated, we saw a meaningful increase in net interest income, up 7% quarter-over-quarter, as substantial portions of low-yielding securities and swaps matured. Concurrently, both our credit risk profile and expenses remained stable.

We continue to make progress regarding our $2.8 billion capital raise from Scotiabank, completing the initial $821 million investment tranche this quarter. As a result of this initial investment and the meaningful decline in interest rates in the third quarter, our tangible common equity ratio improved by 100 basis points quarter-over-quarter, and our reported CET1 ratio further strengthened to 10.8%. We continue to expect to complete the final tranche of the equity financing in the first quarter of 2025, subject to Fed approval.

Our fee-based pipelines continue to build. Investment banking and debt placement pipelines remain near record levels. Wealth management and commercial payments continue to demonstrate momentum.

Given the combination of our strong pipelines, further expected net interest income tailwinds in the quarters ahead, and a stable-to-improved credit outlook, I remain optimistic with respect to the trajectory of our business and our ability to drive value for all of our stakeholders."





(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “adjusted earnings per share" and "adjusted net income.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b) September 30, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(c) See table on page 25 for more information on Selected Items Impact on Earnings.



KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 2

Selected Financial Highlights
Dollars in millions, except per share dataChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Income (loss) from continuing operations attributable to Key common shareholders$(447)$237 $266 (288.6)%(268.0)%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
(.47).25 .29 (288.0)(262.1)
Return on average tangible common equity from continuing operations (a)
(16.98)%10.39 %12.40 %N/AN/A
Return on average total assets from continuing operations(.87).59 .62 N/AN/A
Common Equity Tier 1 ratio (b)
10.8 10.5 9.8 N/AN/A
Book value at period end$14.53 $13.09 $11.65 11.0 24.7 
Net interest margin (TE) from continuing operations2.17 %2.04 %2.01 %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)September 30, 2024 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millionsChange 3Q24 vs.
 3Q242Q243Q232Q243Q23
Net interest income (TE)$964 $899 $923 7.2 %4.4 %
Noninterest income(269)627 643 (142.9)(141.8)
Total revenue (TE)$695 $1,526 $1,566 (54.5)%(55.6)%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $964 million for the third quarter of 2024 and the net interest margin was 2.17%. Compared to the third quarter of 2023, net interest income increased by $41 million, and the net interest margin increased by 16 basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding investments, the maturity of lower-yielding interest rate swaps with negative carry, and a shift in funding mix from higher-cost wholesale borrowings to lower-cost interest-bearing deposits. In addition, during the third quarter of 2024, Key began the repositioning of the available-for-sale portfolio, which involved the sale of approximately $7.0 billion of lower-yielding mortgaged-backed securities and reinvestment of the proceeds into higher-yielding investments. These benefits were partially offset by a decline in loan balances and higher deposit costs relative to a year ago.

Compared to the second quarter of 2024, taxable-equivalent net interest income increased by $65 million, and the net interest margin increased by 13 basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding investments, continued amortization of low-yielding interest rate swaps that had been terminated in 2023, the repositioning of the available-for-sale portfolio, and an improved funding mix. Lower loan balances and higher interest-bearing deposit costs somewhat offset the increase.



KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 3

Noninterest Income
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Trust and investment services income$140 $139 $130 .7 %7.7 %
Investment banking and debt placement fees171 126 141 35.7 21.3 
Cards and payments income84 85 90 (1.2)(6.7)
Service charges on deposit accounts67 66 69 1.5 (2.9)
Corporate services income69 68 73 1.5 (5.5)
Commercial mortgage servicing fees73 61 46 19.7 58.7 
Corporate-owned life insurance income36 34 35 5.9 2.9 
Consumer mortgage income12 16 15 (25.0)(20.0)
Operating lease income and other leasing gains16 21 22 (23.8)(27.3)
Other income(937)11 22 N/MN/M
Total noninterest income$(269)$627 $643 (142.9)%(141.8)%
N/M = Not Meaningful
    
Compared to the third quarter of 2023, noninterest income decreased by $912 million. The decrease was driven primarily by a $918 million loss on the sale of securities as part of a strategic repositioning of the portfolio in the third quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. The decline was partly offset by a $30 million increase in investment banking and debt placement fees, reflective of stronger syndication, debt, and equity underwriting fees, as well as a $27 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances and overall growth of the servicing portfolio.

Compared to the second quarter of 2024, noninterest income decreased by $896 million. The decrease was driven primarily by the loss on the sale of securities referenced above. The decline was partly offset by a $45 million increase in investment banking and debt placement fees, reflective of stronger syndication and equity underwriting fees, as well as a $12 million increase in commercial mortgage servicing fees.

Noninterest Expense
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Personnel expense$670 $636 $663 5.3 %1.1 %
Net occupancy66 66 67 — (1.5)
Computer processing104 101 89 3.0 16.9 
Business services and professional fees41 37 38 10.8 7.9 
Equipment20 20 20 — — 
Operating lease expense14 17 18 (17.6)(22.2)
Marketing21 21 28 — (25.0)
Other expense158 181 187 (12.7)(15.5)
Total noninterest expense$1,094 $1,079 $1,110 1.4 %(1.4)%
    Compared to the third quarter of 2023, noninterest expense decreased $16 million. The decline in noninterest expense was driven by a $7 million decrease in marketing expense, and a reduction in the estimated FDIC special assessment in the third quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. Partly offsetting the decline was an increase in computer processing expense of $15 million, due to technology investments, and a $7 million increase in personnel expense due to an increase in incentive and stock-based compensation related to strong capital markets activity and a higher stock price compared to the year-ago period.

    Compared to the second quarter of 2024, noninterest expense increased by $15 million. The increase was driven by a $34 million increase in personnel expense, primarily from incentive and stock-based
compensation, reflecting stronger capital markets activity. The increase was partly offset by a decline in other expense of $23 million, related to a reduction of the estimated FDIC special assessment charge recognized in


KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 4

the third quarter of 2024 when compared to the second quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information.

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Commercial and industrial (a)
$53,121 $54,599 $59,187 (2.7)%(10.2)%
Other commercial loans19,929 20,500 22,371 (2.8)(10.9)
Total consumer loans33,194 33,862 36,069 (2.0)(8.0)
Total loans$106,244 $108,961 $117,627 (2.5)%(9.7)%
(a)Commercial and industrial average loan balances include $215 million, $218 million, and $202 million of assets from commercial credit cards at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
    
Average loans were $106.2 billion for the third quarter of 2024, a decrease of $11.4 billion compared to the third quarter of 2023, reflective of Key's planned balance sheet optimization efforts in 2023, and continued tepid client loan demand. The decline in average loans was mostly driven by a $8.5 billion decline in average commercial loans, due to lower commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined by $2.9 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the second quarter of 2024, average loans decreased by $2.7 billion. Average commercial loans declined by $2.0 billion, primarily driven by a decrease in commercial and industrial loans and commercial mortgage real estate loans. Average consumer loans declined $668 million, driven by broad-based declines across all consumer loan categories.

Average Deposits
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Non-time deposits$129,901 $128,161 $129,743 1.4 %0.1 %
Time deposits17,870 16,019 15,082 11.6 18.5 
Total deposits$147,771 $144,180 $144,825 2.5 %2.0 %
Cost of total deposits2.39 %2.28 %1.88 %N/AN/A
N/A = Not Applicable

    Average deposits totaled $147.8 billion for the third quarter of 2024, an increase of $2.9 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.

Compared to the second quarter of 2024, average deposits increased by $3.6 billion, driven by an increase in both consumer and commercial deposit balances.



KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 5

ASSET QUALITY
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Net loan charge-offs$154 $91 $71 69.2 %116.9 %
Net loan charge-offs to average total loans.58 %.34 %.24 %N/AN/A
Nonperforming loans at period end$728 $710 $455 2.5 60.0 
Nonperforming assets at period end741 727 471 1.9 57.3 
Allowance for loan and lease losses1,494 1,547 1,488 (3.4)0.4 
Allowance for credit losses1,774 1,833 1,778 (3.2)(0.2)
Provision for credit losses95 100 81 (5.0)17.3 
Allowance for loan and lease losses to nonperforming loans205 %218 %327 %N/AN/A
Allowance for credit losses to nonperforming loans244 258 391 N/AN/A
N/A = Not Applicable

    
    Key's provision for credit losses was $95 million, compared to $81 million in the third quarter of 2023 and $100 million in the second quarter of 2024. The increase from the year-ago period reflects continued, but slowing, credit portfolio migration, higher net charge-offs, and changes in the economic outlook, partly offset by balance sheet optimization efforts.

    Net loan charge-offs for the third quarter of 2024 totaled $154 million, or 0.58% of average total loans. These results compare to $71 million, or 0.24%, for the third quarter of 2023 and $91 million, or 0.34%, for the second quarter of 2024. Key’s allowance for credit losses was $1.8 billion, or 1.68% of total period-end loans at September 30, 2024, compared to 1.54% at September 30, 2023, and 1.71% at June 30, 2024.

    At September 30, 2024, Key’s nonperforming loans totaled $728 million, which represented 0.69% of period-end portfolio loans. These results compare to 0.39% at September 30, 2023, and 0.66% at June 30, 2024. Nonperforming assets at September 30, 2024, totaled $741 million, and represented 0.70% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.41% at September 30, 2023, and 0.68% at June 30, 2024.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2024.
Capital Ratios
9/30/20246/30/20249/30/2023
Common Equity Tier 1 (a)
10.8 %10.5 %9.8 %
Tier 1 risk-based capital (a)
12.6 12.2 11.4 
Total risk-based capital (a)
15.1 14.7 13.8 
Tangible common equity to tangible assets (b)
6.2 5.2 4.4 
Leverage (a)
9.2 9.1 8.9 
(a)September 30, 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 third quarter of 2024. As shown in the preceding table, at September 30, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 10.8% and 12.6%, respectively. Key's tangible common equity ratio was 6.2% at September 30, 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.


KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 6

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 five basis points.

Summary of Changes in Common Shares Outstanding
In thousandsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Shares outstanding at beginning of period943,200 942,776 935,733 — %.8 %
Shares issued under employee compensation plans (net of cancellations and returns)222 424 428 (47.6)(48.1)
Shares issued under Scotiabank investment agreement47,829 — — N/MN/M
Shares outstanding at end of period991,251 943,200 936,161 5.1 %5.9 %
N/M = Not Meaningful
    
    Key declared a dividend of $.205 per common share for the third quarter of 2024.

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 3Q24 vs.
3Q242Q243Q232Q243Q23
Revenue from continuing operations (TE)
Consumer Bank$814 $769 $775 5.9 %5.0 %
Commercial Bank868 770 809 12.7 7.3 
Other (a)
(987)(13)(18)N/MN/M
Total$695 $1,526 $1,566 (54.5)%(55.6)%
Income (loss) from continuing operations attributable to Key
Consumer Bank$86 $67 $65 28.4 %32.3 %
Commercial Bank300 207 240 44.9 25.0 
Other (a)
(797)(1)(3)N/MN/M
Total$(411)$273 $302 (250.5)%(236.1)%
(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. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. 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




KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 7

Consumer Bank
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Summary of operations
Net interest income (TE)$584 $535 $534 9.2 %9.4 %
Noninterest income230 234 241 (1.7)(4.6)
Total revenue (TE)814 769 775 5.9 5.0 
Provision for credit losses52 33 14 57.6 271.4 
Noninterest expense649 648 676 .2 (4.0)
Income (loss) before income taxes (TE)113 88 85 28.4 32.9 
Allocated income taxes (benefit) and TE adjustments27 21 20 28.6 35.0 
Net income (loss) attributable to Key$86 $67 $65 28.4 %32.3 %
Average balances
Loans and leases$38,332 $39,174 $41,610 (2.1)%(7.9)%
Total assets41,188 42,008 44,429 (2.0)(7.3)
Deposits86,431 85,397 82,683 1.2 4.5 
Assets under management at period end$61,122 $57,602 $52,516 6.1 %16.4 %
TE = Taxable Equivalent



Additional Consumer Bank Data
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Noninterest income
Trust and investment services income$114 $112 $105 1.8 %8.6 %
Service charges on deposit accounts34 34 39 — (12.8)
Cards and payments income60 61 65 (1.6)(7.7)
Consumer mortgage income12 16 15 (25.0)(20.0)
Other noninterest income10 11 17 (9.1)(41.2)
Total noninterest income$230 $234 $241 (1.7)%(4.6)%
Average deposit balances
Money market deposits$30,805 $30,229 $28,638 1.9 %7.6 %
Demand deposits22,310 22,292 22,526 .1 (1.0)
Savings deposits4,553 4,791 5,676 (5.0)(19.8)
Time deposits13,927 13,038 8,752 6.8 59.1 
Noninterest-bearing deposits14,836 15,047 17,091 (1.4)(13.2)
Total deposits$86,431 $85,397 $82,683 1.2 %4.5 %
Other data
Branches944 946 959 
Automated teller machines1,194 1,199 1,249 

Consumer Bank Summary of Operations (3Q24 vs. 3Q23)
•Key's Consumer Bank recorded net income attributable to Key of $86 million for the third quarter of 2024, compared to $65 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $50 million, or 9.4%, compared to the third quarter of 2023
•Average loans and leases decreased $3.3 billion, or 7.9%, from the third quarter of 2023, driven by broad-based declines across all loan categories
•Average deposits increased $3.7 billion, or 4.5%, from the third quarter of 2023, driven by growth in retail deposits
•Provision for credit losses increased $38 million compared to the third quarter of 2023, driven by changes in economic outlook and higher net charge-offs, partly offset by planned balance sheet optimization efforts


KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 8

•Noninterest income decreased $11 million from the year-ago quarter, driven by declines in service charges on deposit accounts and cards and payments income
•Noninterest expense decreased $27 million from the year-ago quarter, reflective of lower marketing expense

Commercial Bank
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Summary of operations
Net interest income (TE)$460 $411 $446 11.9 %3.1 %
Noninterest income408 359 363 13.6 12.4 
Total revenue (TE)868 770 809 12.7 7.3 
Provision for credit losses41 87 68 (52.9)(39.7)
Noninterest expense445 432 433 3.0 2.8 
Income (loss) before income taxes (TE)382 251 308 52.2 24.0 
Allocated income taxes and TE adjustments82 44 68 86.4 20.6
Net income (loss) attributable to Key$300 $207 $240 44.9 %25.0 %
Average balances
Loans and leases$67,452 $69,248 $75,598 (2.6)%(10.8)%
Loans held for sale998 522 1,268 91.2 (21.3)
Total assets76,395 78,328 85,930 (2.5)(11.1)
Deposits58,696 57,360 56,078 2.3 %4.7 %
TE = Taxable Equivalent

Additional Commercial Bank Data
Dollars in millionsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Noninterest income
Trust and investment services income$26 $26 $25 — %4.0 %
Investment banking and debt placement fees171 126 141 35.7 21.3 
Cards and payments income22 21 18 4.8 22.2 
Service charges on deposit accounts32 31 29 3.2 10.3 
Corporate services income62 61 64 1.6 (3.1)
Commercial mortgage servicing fees73 61 45 19.7 62.2 
Operating lease income and other leasing gains16 21 22 (23.8)(27.3)
Other noninterest income6 12 19 (50.0)(68.4)
Total noninterest income$408 $359 $363 13.6 %12.4 %

Commercial Bank Summary of Operations (3Q24 vs. 3Q23)
•Key's Commercial Bank recorded net income attributable to Key of $300 million for the third quarter of 2024 compared to $240 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $14 million, or 3.1%, compared to the third quarter of 2023
•Average loan and lease balances decreased $8.1 billion, or 10.8%, compared to the third quarter of 2023, driven by a decline in commercial and industrial loans
•Average deposit balances increased $2.6 billion compared to the third quarter of 2023, driven by our focus on growing deposits across our commercial businesses
•Provision for credit losses decreased $27 million compared to the third quarter of 2023, driven by the impact of balance sheet optimization efforts, partly offset by slowing credit portfolio migration, changes in economic outlook, and higher net charge-offs
•Noninterest income increased $45 million compared to the third quarter of 2023, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
•Noninterest expense increased $12 million compared to the third quarter of 2023, driven by higher incentive compensation related to stronger investment banking and debt placement fees


KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 9


*******************************************

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 $190 billion at September 30, 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 Third Quarter 2024 Results     
October 17, 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 October 17, 2024. A replay of the call will be available on our website through October 17, 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 Third Quarter 2024 Results     
October 17, 2024
Page 11




KeyCorp
Third Quarter 2024
Financial Supplement


    



KeyCorp Reports Third Quarter 2024 Results     
October 17, 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, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.




KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 13

Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
9/30/20246/30/20249/30/2023
Summary of operations
Net interest income (TE)$964 $899 $923 
Noninterest income(269)627 643 
Total revenue (TE)
695 1,526 1,566 
Provision for credit losses95 100 81 
Noninterest expense1,094 1,079 1,110 
Income (loss) from continuing operations attributable to Key(411)273 302 
Income (loss) from discontinued operations, net of taxes1 1 1 
Net income (loss) attributable to Key(410)274 303 
Income (loss) from continuing operations attributable to Key common shareholders(447)237 266 
Income (loss) from discontinued operations, net of taxes1 1 1 
Net income (loss) attributable to Key common shareholders(446)238 267 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$(.47)$.25 $.29 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
(.47).25 .29 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution(.47).25 .29 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
(.47).25 .29 
Cash dividends declared.205 .205 .205 
Book value at period end14.53 13.09 11.65 
Tangible book value at period end11.72 10.13 8.65 
Market price at period end16.75 14.21 10.76 
Performance ratios
From continuing operations:
Return on average total assets(.87)%.59 %.62 %
Return on average common equity(13.41)7.96 9.31 
Return on average tangible common equity (b)
(16.98)10.39 12.40 
Net interest margin (TE)2.17 2.04 2.01 
Cash efficiency ratio (b)
156.4 70.2 70.3 
From consolidated operations:
Return on average total assets(.87)%.59 %.62 %
Return on average common equity(13.38)7.99 9.35 
Return on average tangible common equity (b)
(16.95)10.43 12.45 
Net interest margin (TE)2.17 2.04 2.01 
Loan to deposit (c)
71.0 74.0 80.8 
Capital ratios at period end
Key shareholders’ equity to assets8.9 %7.9 %7.1 %
Key common shareholders’ equity to assets7.6 6.6 5.8 
Tangible common equity to tangible assets (b)
6.2 5.2 4.4 
Common Equity Tier 1 (d)
10.8 10.5 9.8 
Tier 1 risk-based capital (d)
12.6 12.2 11.4 
Total risk-based capital (d)
15.1 14.7 13.8 
Leverage (d)
9.2 9.1 8.9 
Asset quality — from continuing operations
Net loan charge-offs
$154 $91 $71 
Net loan charge-offs to average loans
.58 %.34 %.24 %
Allowance for loan and lease losses
$1,494 $1,547 $1,488 
Allowance for credit losses
1,774 1,833 1,778 
Allowance for loan and lease losses to period-end loans
1.42 %1.44 %1.29 %
Allowance for credit losses to period-end loans
1.68 1.71 1.54 
Allowance for loan and lease losses to nonperforming loans205 218 327 
Allowance for credit losses to nonperforming loans244 258 391 
Nonperforming loans at period-end$728 $710 $455 
Nonperforming assets at period-end741 727 471 
Nonperforming loans to period-end portfolio loans.69 %.66 %.39 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets.70 .68 .41 
Trust assets
Assets under management$61,122 $57,602 $52,516 
Other data
Average full-time equivalent employees
16,805 16,646 17,666 
Branches
944 946 959 
Taxable-equivalent adjustment
$12 $12 $8 


KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 14

Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Nine months ended
9/30/20249/30/2023
Summary of operations
Net interest income (TE)$2,749 $3,015 
Noninterest income1,005 1,860 
Total revenue (TE)3,754 4,875 
Provision for credit losses296 387 
Noninterest expense3,316 3,362 
Income (loss) from continuing operations attributable to Key81 899 
Income (loss) from discontinued operations, net of taxes2 3 
Net income (loss) attributable to Key83 902 
Income (loss) from continuing operations attributable to Key common shareholders(27)791 
Income (loss) from discontinued operations, net of taxes2 3 
Net income (loss) attributable to Key common shareholders(25)794 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$(.03)$.85 
Income (loss) from discontinued operations, net of taxes— — 
Net income (loss) attributable to Key common shareholders (a)(.03).86 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution(.03).85 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)(.03).85 
Cash dividends paid.62 .62 
Performance ratios
From continuing operations:
Return on average total assets.06 %.62 %
Return on average common equity(.29)9.18 
Return on average tangible common equity (b)(.37)12.17 
Net interest margin (TE)2.08 2.20 
Cash efficiency ratio (b)87.7 68.4 
From consolidated operations:
Return on average total assets.06 %.62 %
Return on average common equity(0.27)9.22 
Return on average tangible common equity (b)(0.35)12.22 
Net interest margin (TE)2.08 2.20 
Asset quality — from continuing operations
Net loan charge-offs$326 $168 
Net loan charge-offs to average total loans.40 %.19 %
Other data
Average full-time equivalent employees16,734 17,880 
Taxable-equivalent adjustment35 23 
(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)September 30, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


KeyCorp Reports Third Quarter 2024 Results     
October 17, 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," “cash efficiency ratio," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."

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.

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or “adjusted net income”) and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude securities portfolio repositioning, net of tax, that occurred in the third quarter of 2024. Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the significant losses related to the securities repositioning.

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 endedNine months ended
9/30/20246/30/20249/30/20239/30/20249/30/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)$16,852 $14,789 $13,356 
Less: Intangible assets (a)
2,786 2,793 2,816 
Preferred Stock (b)
2,446 2,446 2,446 
Tangible common equity (non-GAAP)$11,620 $9,550 $8,094 
Total assets (GAAP)$189,763 $187,450 $187,851 
Less: Intangible assets (a)
2,786 2,793 2,816 
Tangible assets (non-GAAP)$186,977 $184,657 $185,035 
Tangible common equity to tangible assets ratio (non-GAAP)6.21 %5.17 %4.37 %
Pre-provision net revenue
Net interest income (GAAP)$952 $887 $915 $2,714 $2,992 
Plus: Taxable-equivalent adjustment12 12 8 35 23 
Noninterest income(269)627 643 1,005 1,860 
Less: Noninterest expense1,094 1,079 1,110 3,316 3,362 
Pre-provision net revenue from continuing operations (non-GAAP)$(399)$447 $456 $438 $1,513 
Average tangible common equity
Average Key shareholders' equity (GAAP)$15,759 $14,474 $13,831 $14,963 $14,020 
Less: Intangible assets (average) (c)
2,789 2,796 2,821 2,796 2,831 
Preferred stock (average)2,500 2,500 2,500 2,500 2,500 
Average tangible common equity (non-GAAP)$10,470 $9,178 $8,510 $9,667 $8,689 
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)$(447)$237 $266 $(27)$791 
Average tangible common equity (non-GAAP)10,470 9,178 8,510 9,667 8,689 
Return on average tangible common equity from continuing operations (non-GAAP)(16.98)%10.39 %12.40 %(0.37)%12.17 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)$(446)$238 $267 $(25)$794 
Average tangible common equity (non-GAAP)10,470 9,178 8,510 9,667 8,689 
Return on average tangible common equity consolidated (non-GAAP)(16.95)%10.43 %12.45 %(0.35)%12.22 %






KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 16

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months endedNine months ended
9/30/20246/30/20249/30/20239/30/20249/30/2023
Cash efficiency ratio
Noninterest expense (GAAP)$1,094 $1,079 $1,110 $3,316 $3,362 
Less: Intangible asset amortization7 7 9 22 29 
Adjusted noninterest expense (non-GAAP)$1,087 $1,072 $1,101 $3,294 $3,333 
Net interest income (GAAP)$952 $887 $915 $2,714 $2,992 
Plus: Taxable-equivalent adjustment12 12 8 35 23 
Net interest income TE (non-GAAP)964 899 923 2,749 3,015 
Noninterest income (GAAP)(269)627 643 1,005 1,860 
Total taxable-equivalent revenue (non-GAAP)$695 $1,526 $1,566 $3,754 $4,875 
Cash efficiency ratio (non-GAAP)156.4 %70.2 %70.3 %87.7 %68.4 %
Adjusted income (loss) available from continuing operations attributable to Key common shareholders
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)$(447)$237 $266 
Plus: Loss on sale of securities (net of tax)737 — — 
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)$290 $237 $266 
Diluted earnings per common share (EPS) - adjusted
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)$(.47)$.25 $.29 
Plus: EPS impact of loss on sale of securities.77 — — 
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)$.30 $.25 $.29 
(a)For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, average intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of average purchased credit card receivables.
GAAP = U.S. generally accepted accounting principles




KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 17

Consolidated Balance Sheets
(Dollars in millions)
9/30/20246/30/20249/30/2023
Assets
Loans$105,346 $107,078 $115,544 
Loans held for sale1,058 517 730 
Securities available for sale34,169 37,460 35,839 
Held-to-maturity securities7,702 7,968 8,853 
Trading account assets1,404 1,219 1,325 
Short-term investments22,796 15,536 7,871 
Other investments1,117 1,259 1,356 
Total earning assets173,592 171,037 171,518 
Allowance for loan and lease losses(1,494)(1,547)(1,488)
Cash and due from banks1,276 1,326 766 
Premises and equipment624 631 649 
Goodwill2,752 2,752 2,752 
Other intangible assets34 41 65 
Corporate-owned life insurance4,379 4,382 4,381 
Accrued income and other assets8,323 8,532 8,843 
Discontinued assets277 296 365 
Total assets$189,763 $187,450 $187,851 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits$119,995 $117,570 $112,581 
Noninterest-bearing deposits30,358 28,150 31,710 
Total deposits150,353 145,720 144,291 
Federal funds purchased and securities sold under repurchase agreements 44 25 43 
Bank notes and other short-term borrowings2,359 5,292 3,470 
Accrued expense and other liabilities4,478 4,755 5,388 
Long-term debt15,677 16,869 21,303 
Total liabilities172,911 172,661 174,495 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,149 6,185 6,254 
Retained earnings15,066 15,706 15,835 
Treasury stock, at cost(4,839)(5,715)(5,851)
Accumulated other comprehensive income (loss)(3,281)(5,144)(6,639)
Key shareholders’ equity16,852 14,789 13,356 
Total liabilities and equity$189,763 $187,450 $187,851 
Common shares outstanding (000)991,251 943,200 936,161 
    





KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 18

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Nine months ended
9/30/20246/30/20249/30/20239/30/20249/30/2023
Interest income
Loans$1,516 $1,524 $1,593 $4,578 $4,645 
Loans held for sale18 8 19 40 49 
Securities available for sale298 259 192 789 580 
Held-to-maturity securities70 73 79 218 234 
Trading account assets15 16 15 45 42 
Short-term investments244 192 123 578 276 
Other investments14 16 22 47 51 
Total interest income2,175 2,088 2,043 6,295 5,877 
Interest expense
Deposits887 817 687 2,486 1,568 
Federal funds purchased and securities sold under repurchase agreements1 1 9 3 79 
Bank notes and other short-term borrowings43 51 81 140 263 
Long-term debt292 332 351 952 975 
Total interest expense1,223 1,201 1,128 3,581 2,885 
Net interest income952 887 915 2,714 2,992 
Provision for credit losses95 100 81 296 387 
Net interest income after provision for credit losses857 787 834 2,418 2,605 
Noninterest income
Trust and investment services income140 139 130 415 384 
Investment banking and debt placement fees171 126 141 467 406 
Cards and payments income84 85 90 246 256 
Service charges on deposit accounts67 66 69 196 205 
Corporate services income69 68 73 206 235 
Commercial mortgage servicing fees73 61 46 190 142 
Corporate-owned life insurance income36 34 35 102 96 
Consumer mortgage income12 16 15 42 40 
Operating lease income and other leasing gains16 21 22 61 70 
Other income(c)
(937)11 22 (920)26 
Total noninterest income(269)627 643 1,005 1,860 
Noninterest expense
Personnel670 636 663 1,980 1,986 
Net occupancy66 66 67 199 202 
Computer processing104 101 89 307 276 
Business services and professional fees41 37 38 119 124 
Equipment20 20 20 60 64 
Operating lease expense14 17 18 48 59 
Marketing21 21 28 61 78 
Other expense158 181 187 542 573 
Total noninterest expense1,094 1,079 1,110 3,316 3,362 
Income (loss) from continuing operations before income taxes(506)335 367 107 1,103 
Income taxes (benefit)(95)62 65 26 204 
Income (loss) from continuing operations(411)273 302 81 899 
Income (loss) from discontinued operations, net of taxes1 1 1 2 3 
Net income (loss)(410)274 303 83 902 
Net income (loss) attributable to Key$(410)$274 $303 $83 $902 
Income (loss) from continuing operations attributable to Key common shareholders$(447)$237 $266 $(27)$791 
Net income (loss) attributable to Key common shareholders(446)238 267 (25)794 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$(.47)$.25 $.29 $(.03)$.85 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
(.47).25 .29 (.03).86 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$(.47)$.25 $.29 $(.03)$.85 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
(.47).25 .29 (.03).85 
Cash dividends declared per common share$.205 $.205 $.205 $.615 $.615 
Weighted-average common shares outstanding (000)948,979 931,726 927,131 936,962 927,019 
Effect of common share options and other stock awards8,951 6,761 4,613 7,678 5,213 
Weighted-average common shares and potential common shares outstanding (000) (b)
957,929 938,487 931,744 944,640 932,232 
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards, as applicable.
(c)For the three months ended September 30, 2024, and June 30, 2024, we had $935 million and $13 million in net securities losses, respectively. For the three months ended September 30, 2023, we had no net securities gains or losses. For the nine months ended September 30, 2024, and September 30, 2023, we had $948 million and $7 million in net securities losses, respectively.


KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Third Quarter 2024Second Quarter 2024Third 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)
$53,121 $847 6.34 %$54,599 $860 6.34 %$59,187 $886 5.94 %
Real estate — commercial mortgage13,864 225 6.46 14,287 217 6.10 15,844 238 5.97 
Real estate — construction3,077 59 7.65 3,020 56 7.51 2,820 48 6.77 
Commercial lease financing2,988 26 3.46 3,193 28 3.46 3,707 30 3.25 
Total commercial loans73,050 1,157 6.30 75,099 1,161 6.22 81,558 1,202 5.85 
Real estate — residential mortgage20,215 167 3.30 20,515 169 3.30 21,459 176 3.28 
Home equity loans6,634 100 5.98 6,817 102 5.98 7,418 110 5.87 
Other consumer loans5,426 69 5.08 5,597 70 5.00 6,201 78 4.96 
Credit cards919 35 15.22 933 34 14.63 991 35 14.16 
Total consumer loans33,194 371 4.46 33,862 375 4.44 36,069 399 4.40 
Total loans106,244 1,528 5.73 108,961 1,536 5.66 117,627 1,601 5.41 
Loans held for sale1,098 18 6.54 599 8 5.42 1,356 19 5.73 
Securities available for sale (b), (e)
36,700 298 2.87 36,764 259 2.42 37,271 192 1.76 
Held-to-maturity securities (b)
7,838 70 3.58 8,123 73 3.59 9,020 79 3.50 
Trading account assets1,142 15 5.08 1,231 16 5.38 1,203 15 4.97 
Short-term investments17,773 244 5.47 13,729 192 5.62 8,416 123 5.79 
Other investments (e)
1,193 14 4.77 1,234 16 5.19 1,395 22 6.35 
Total earning assets171,988 2,187 4.93 170,641 2,100 4.77 176,288 2,051 4.47 
Allowance for loan and lease losses(1,533)(1,534)(1,477)
Accrued income and other assets17,154 17,476 17,530 
Discontinued assets284 305 374 
Total assets$187,893 $186,888 $192,715 
Liabilities
Money market deposits$40,379 $309 3.04 %$39,364 $290 2.97 %$35,243 $213 2.40 %
Demand deposits56,087 365 2.59 54,629 340 2.50 55,837 315 2.24 
Savings deposits4,967 3 .22 5,189 2 .19 5,966 1 .05 
Time deposits17,870 210 4.68 16,019 185 4.64 15,082 158 4.16 
Total interest-bearing deposits119,303 887 2.96 115,201 817 2.85 112,128 687 2.43 
Federal funds purchased and securities sold under repurchase agreements98 1 4.48 124 1 4.76 710 9 5.04 
Bank notes and other short-term borrowings3,172 43 5.44 3,617 51 5.57 5,819 81 5.54 
Long-term debt (f)
16,422 292 7.09 19,219 332 6.91 21,584 351 6.50 
Total interest-bearing liabilities138,995 1,223 3.50 138,161 1,201 3.49 140,241 1,128 3.20 
Noninterest-bearing deposits28,468 28,979 32,697 
Accrued expense and other liabilities4,387 4,969 5,572 
Discontinued liabilities (f)
284 305 374 
Total liabilities$172,134 $172,414 $178,884 
Equity
Key shareholders’ equity$15,759 $14,474 $13,831 
Noncontrolling interests— — — 
Total equity15,759 14,474 13,831 
Total liabilities and equity$187,893 $186,888 $192,715 
Interest rate spread (TE)1.43 %1.28 %1.27 %
Net interest income (TE) and net interest margin (TE)$964 2.17 %$899 2.04 %$923 2.01 %
TE adjustment (b)
12128
Net interest income, GAAP basis$952 $887 $915 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) 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 September 30, 2024, June 30, 2024, and September 30, 2023.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $215 million, $218 million, and $202 million of assets from commercial credit cards for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
(e)Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $41.6 billion, $42.8 billion, and $43.6 billion for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Yield based on the fair value of securities available for sale was 3.25%, 2.82%, and 2.06% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
(f)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 Third Quarter 2024 Results     
October 17, 2024
Page 20

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Nine months ended September 30, 2024Nine months ended September 30, 2023
AverageYield/AverageYield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$54,309 $2,561 6.30 %$60,294 $2,574 5.71 %
Real estate — commercial mortgage14,328 6716.25 16,178 6975.76 
Real estate — construction3,046 172 7.56 2,663 131 6.58 
Commercial lease financing3,175 81 3.38 3,749 86 3.06 
Total commercial loans74,858 3,485 6.22 82,884 3,488 5.63 
Real estate — residential mortgage20,514 508 3.30 21,534 524 3.25 
Home equity loans6,824 305 5.98 7,621 325 5.71 
Other consumer loans5,607 211 5.02 6,346 230 4.84 
Credit cards935 104 14.92 986 101 13.68 
Total consumer loans33,880 1,128 4.44 36,487 1,180 4.32 
Total loans108,738 4,613 5.67 119,371 4,668 5.23 
Loans held for sale862 40 6.14 1,118 49 5.90 
Securities available for sale (b), (e)
36,850 789 2.48 38,440 580 1.74 
Held-to-maturity securities (b)
8,127 218 3.58 9,108 234 3.43 
Trading account assets1,161 45 5.23 1,150 42 4.82 
Short-term investments13,929 578 5.55 6,600 276 5.59 
Other investments (e)
1,221 47 5.12 1,423 51 4.78 
Total earning assets170,888 6,330 4.79 177,210 5,900 4.30 
Allowance for loan and lease losses(1,524)(1,398)
Accrued income and other assets17,327 17,411 
Discontinued assets306 395 
Total assets$186,997 $193,618 
Liabilities
Money market deposits$39,139 $863 2.94 %$33,829 $414 1.64 %
Other demand deposits55,619 1,062 2.55 53,951 754 1.87 
Savings deposits5,136 6 .16 6,630 2 .04 
Time deposits16,113 555 4.60 13,615 398 3.90 
Total interest-bearing deposits116,007 2,486 2.86 108,025 1,568 1.94 
Federal funds purchased and securities sold under repurchase agreements109 3 4.44 2,183 79 4.84 
Bank notes and other short-term borrowings3,371 140 5.55 6,797 263 5.17 
Long-term debt (f)
18,386 952 6.90 21,341 975 6.09 
Total interest-bearing liabilities137,873 3,581 3.47 138,346 2,885 2.79 
Noninterest-bearing deposits28,947 35,691 
Accrued expense and other liabilities4,908 5,166 
Discontinued liabilities (f)
306 395 
Total liabilities$172,034 $179,598 
Equity
Key shareholders’ equity$14,963 $14,020 
Noncontrolling interests— — 
Total equity14,963 14,020 
Total liabilities and equity$186,997 $193,618 
Interest rate spread (TE)1.32 %1.52 %
Net interest income (TE) and net interest margin (TE)$2,749 2.08 %$3,015 2.20 %
TE adjustment (b)
3523 
Net interest income, GAAP basis$2,714 $2,992 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) 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 nine months ended September 30, 2024, and September 30, 2023, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $215 million and $192 million of assets from commercial credit cards for the nine months ended September 30, 2024, and September 30, 2023, respectively.
(e)Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $42.4 billion and $44.5 billion for the nine months ended September 30, 2024, and September 30, 2023, respectively. Yield based on the fair value of securities available for sale was 2.85% and 2.01% for the nine months ended September 30, 2024, and September 30, 2023, respectively.
(f)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 Third Quarter 2024 Results     
October 17, 2024
Page 21

Noninterest Expense
(Dollars in millions)
Three months endedNine months ended
9/30/20246/30/20249/30/20239/30/20249/30/2023
Personnel (a)
$670 $636 $663 $1,980 $1,986 
Net occupancy66 66 67 199 202 
Computer processing104 101 89 307 276 
Business services and professional fees41 37 38 119 124 
Equipment20 20 20 60 64 
Operating lease expense14 17 18 48 59 
Marketing21 21 28 61 78 
Other expense158 181 187 542 573 
Total noninterest expense$1,094 $1,079 $1,110 $3,316 $3,362 
Average full-time equivalent employees (b)
16,805 16,646 17,666 16,734 17,880 
(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 endedNine months ended
9/30/20246/30/20249/30/20239/30/20249/30/2023
Salaries and contract labor$408 $394 $415 $1,191 $1,250 
Incentive and stock-based compensation162 143 141 464 386 
Employee benefits99 98 106 323 308 
Severance1 1 1 2 42 
Total personnel expense$670 $636 $663 $1,980 $1,986 



KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 22

Loan Composition
(Dollars in millions)
Change 9/30/2024 vs.
9/30/20246/30/20249/30/20236/30/20249/30/2023
Commercial and industrial (a)(b)
$52,774 $53,129 $57,606 (.7)%(8.4)%
Commercial real estate:
Commercial mortgage13,637 14,218 15,549 (4.1)(12.3)
Construction3,093 3,077 2,982 .5 3.7 
Total commercial real estate loans16,730 17,295 18,531 (3.3)(9.7)
Commercial lease financing (b)
2,913 3,101 3,681 (6.1)(20.9)
Total commercial loans72,417 73,525 79,818 (1.5)(9.3)
Residential — prime loans:
Real estate — residential mortgage20,122 20,380 21,309 (1.3)(5.6)
Home equity loans6,555 6,729 7,324 (2.6)(10.5)
Total residential — prime loans26,677 27,109 28,633 (1.6)(6.8)
Other consumer loans5,338 5,514 6,105 (3.2)(12.6)
Credit cards914 930 988 (1.7)(7.5)
Total consumer loans32,929 33,553 35,726 (1.9)(7.8)
Total loans (c), (d)
$105,346 $107,078 $115,544 (1.6)%(8.8)%
(a)Loan balances include $219 million, $217 million, and $207 million of commercial credit card balances at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $261 million at September 30, 2024, $285 million at June 30, 2024 and no amounts held as collateral for a secured borrowing at September 30, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $3 million, $5 million, and $4 million at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $272 million at September 30, 2024, $291 million at June 30, 2024, and $360 million at September 30, 2023, related to the discontinued operations of the education lending business.
(d)Accrued interest of $480 million, $487 million, and $522 million at September 30, 2024, June 30, 2024, and September 30, 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 9/30/2024 vs.
9/30/20246/30/20249/30/20236/30/20249/30/2023
Commercial and industrial$250 $72 $47 247.2 %431.9 %
Real estate — commercial mortgage747 354 571 111.0 30.8 
Real estate — residential mortgage61 91 112 (33.0)(45.5)
Total loans held for sale$1,058 $517 $730 104.6 %44.9 %
Summary of Changes in Loans Held for Sale
(Dollars in millions)
3Q242Q241Q244Q233Q23
Balance at beginning of period$517 $228 $483 $730 $1,130 
New originations2,473 1,532 1,738 1,879 3,035 
Transfers from (to) held to maturity, net(16)(1)(105)(31)(94)
Loan sales(1,889)(1,234)(1,893)(2,095)(3,312)
Loan draws (payments), net(28)(7)4 — (29)
Valuation and other adjustments1 (1)1 — — 
Balance at end of period$1,058 $517 $228 $483 $730 
    




KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 23

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months endedNine months ended
9/30/20246/30/20249/30/20239/30/20249/30/2023
Average loans outstanding$106,244 $108,961 $117,627 $108,738 $119,371 
Allowance for loan and lease losses at the beginning of the period$1,547 $1,542 $1,480 $1,508 $1,337 
Loans charged off:
Commercial and industrial131 86 62 279 139 
Real estate — commercial mortgage7 10 1 22 15 
Real estate — construction— — — — — 
Total commercial real estate loans7 10 1 22 15 
Commercial lease financing— 6 — 6 — 
Total commercial loans138 102 63 307 154 
Real estate — residential mortgage— 1 — 2 1 
Home equity loans1 — 1 2 4 
Other consumer loans17 16 14 49 37 
Credit cards11 12 9 35 27 
Total consumer loans29 29 24 88 69 
Total loans charged off167 131 87 395 223 
Recoveries:
Commercial and industrial7 31 10 46 33 
Real estate — commercial mortgage1 1 — 2 1 
Real estate — construction— — — — — 
Total commercial real estate loans1 1 — 2 1 
Commercial lease financing— 3 1 5 4 
Total commercial loans8 35 11 53 38 
Real estate — residential mortgage1 1 1 4 3 
Home equity loans1 — 1 2 3 
Other consumer loans2 2 2 6 7 
Credit cards1 2 1 4 4 
Total consumer loans5 5 5 16 17 
Total recoveries13 40 16 69 55 
Net loan charge-offs(154)(91)(71)(326)(168)
Provision (credit) for loan and lease losses101 96 79 312 319 
Allowance for loan and lease losses at end of period$1,494 $1,547 $1,488 $1,494 $1,488 
Liability for credit losses on lending-related commitments at beginning of period$286 $281 $291 $296 $225 
Provision (credit) for losses on lending-related commitments(6)4 2 (16)68 
Other— 1 (3)— (3)
Liability for credit losses on lending-related commitments at end of period (a)
$280 $286 $290 $280 $290 
Total allowance for credit losses at end of period$1,774 $1,833 $1,778 $1,774 $1,778 
Net loan charge-offs to average total loans.58 %.34 %.24 %.40 %.19 %
Allowance for loan and lease losses to period-end loans1.42 1.44 1.29 1.42 1.29 
Allowance for credit losses to period-end loans1.68 1.71 1.54 1.68 1.54 
Allowance for loan and lease losses to nonperforming loans205 218 327 205 327 
Allowance for credit losses to nonperforming loans244 258 391 244 391 
Discontinued operations — education lending business:
Loans charged off$1 $1 $— $3 $3 
Recoveries— 1 — 1 1 
Net loan charge-offs$(1)$— $— $(2)$(2)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 24

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
3Q242Q241Q244Q233Q23
Net loan charge-offs$154 $91 $81 $76 $71 
Net loan charge-offs to average total loans.58 %.34 %.29 %.26 %.24 %
Allowance for loan and lease losses$1,494 $1,547 $1,542 $1,508 $1,488 
Allowance for credit losses (a)
1,774 1,833 1,823 1,804 1,778 
Allowance for loan and lease losses to period-end loans1.42 %1.44 %1.40 %1.34 %1.29 %
Allowance for credit losses to period-end loans1.68 1.71 1.66 1.60 1.54 
Allowance for loan and lease losses to nonperforming loans205 218 234 263 327 
Allowance for credit losses to nonperforming loans244 258 277 314 391 
Nonperforming loans at period end$728 $710 $658 $574 $455 
Nonperforming assets at period end741 727 674 591 471 
Nonperforming loans to period-end portfolio loans.69 %.66 %.60 %.51 %.39 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.70 .68 .61 .52 .41 
        
(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)
9/30/20246/30/20243/31/202412/31/20239/30/2023
Commercial and industrial$365 $358 $360 $297 $214 
Real estate — commercial mortgage176 173 113 100 63 
Real estate — construction— — — — — 
Total commercial real estate loans176 173 113 100 63 
Commercial lease financing— 1 1 — 1 
Total commercial loans541 532 474 397 278 
Real estate — residential mortgage87 77 79 71 72 
Home equity loans90 91 95 97 97 
Other Consumer loans4 4 4 4 4 
Credit cards6 6 6 5 4 
Total consumer loans187 178 184 177 177 
Total nonperforming loans (a)
728 710 658 574 455 
OREO13 17 16 17 16 
Nonperforming loans held for sale— — — — — 
Other nonperforming assets— — — — — 
Total nonperforming assets$741 $727 $674 $591 $471 
Accruing loans past due 90 days or more$166 $137 $119 $107 $52 
Accruing loans past due 30 through 89 days184 282 242 222 178 
Nonperforming assets from discontinued operations — education lending business 2 3 2 3 2 
Nonperforming loans to period-end portfolio loans.69 %.66 %.60 %.51 %.39 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.70 .68 .61 .52 .41 

Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
3Q242Q241Q244Q233Q23
Balance at beginning of period$710 $658 $574 $455 $431 
Loans placed on nonaccrual status271 317 243 297 159 
Charge-offs(167)(131)(97)(95)(87)
Loans sold(32)(22)(5)(9)(4)
Payments(37)(76)(35)(56)(25)
Transfers to OREO(1)(1)(2)(2)(3)
Loans returned to accrual status(16)(35)(20)(16)(16)
Balance at end of period$728 $710 $658 $574 $455 


KeyCorp Reports Third Quarter 2024 Results     
October 17, 2024
Page 25

Line of Business Results
(Dollars in millions)
Change 3Q24 vs.
3Q242Q241Q244Q233Q232Q243Q23
Consumer Bank
Summary of operations
Total revenue (TE)$814 $769 $757 $770 $775 5.9 %5.0 %
Provision for credit losses52 33 (2)5 14 57.6 271.4 
Noninterest expense649 648 704 779 676 .2 (4.0)
Net income (loss) attributable to Key86 67 41 (11)65 28.4 32.3 
Average loans and leases38,332 39,174 39,919 40,763 41,610 (2.1)(7.9)
Average deposits86,431 85,397 84,075 83,557 82,683 1.2 4.5 
Net loan charge-offs54 45 44 40 36 20.0 50.0 
Net loan charge-offs to average total loans.56 %.46 %.44 %.39 %.34 %21.7 64.7 
Nonperforming assets at period end$195 $190 $196 $190 $190 2.6 2.6 
Return on average allocated equity10.34 %7.93 %4.69 %(1.28)%7.42 %30.4 39.4 
Commercial Bank
Summary of operations
Total revenue (TE)$868 $770 $798 $804 $809 12.7 %7.3 %
Provision for credit losses41 87 102 96 68 (52.9)(39.7)
Noninterest expense445 432 442 526 433 3.0 2.8 
Net income (loss) attributable to Key300 207 205 150 240 44.9 25.0 
Average loans and leases67,452 69,248 70,633 72,713 75,598 (2.6)(10.8)
Average loans held for sale998 522 840 635 1,268 91.2 (21.3)
Average deposits58,696 57,360 56,331 58,196 56,078 2.3 4.7 
Net loan charge-offs99 64 37 35 35 54.7 182.9 
Net loan charge-offs to average total loans.58 %.37 %.21 %.19 %.18 %56.8 222.2 
Nonperforming assets at period end$546 $537 $478 $401 $281 1.7 94.3 
Return on average allocated equity11.98 %8.31 %8.24 %5.88 %9.11 %44.2 31.5 
TE = Taxable Equivalent


Selected Items Impact on Earnings(a)
(Dollars in millions, except per share amounts)
Pretax(b)
After-tax at marginal rate(b)(c)
Quarter to date resultsAmountNet Income
EPS(d)
Three months ended September 30, 2024
Loss on sale of securities (other income)$(918)$(737)$(0.77)
FDIC special assessment (other expense)(d)
6 5 — 
Three months ended June 30, 2024
FDIC special assessment (other expense)(e)
(5)(4)— 
Three months ended March 31, 2024
FDIC special assessment (other expense)(e)
(29)(22)(0.02)
Three months ended December 31, 2023
Efficiency related expenses(f)
(67)(51)(0.05)
Pension settlement (other expense)(18)(14)(0.02)
FDIC special assessment (other expense)(e)
(190)(144)(0.15)
Three months ended September 30, 2023
No items
(a)Includes items impacting results or trends during the period but are not considered non-GAAP adjustments.
(b)Favorable (unfavorable) impact.
(c)After-tax loss on sale of securities adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments to be required in the fourth quarter of 2024.
(d)Impact to EPS reflected on a fully diluted basis.
(e)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. Amounts reflected for both the three-months ended June 30, 2024, and September 30, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.
(f)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.

KeyCorp Third Quarter 2024 Earnings Review October 17, 2024 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer

 
Note: All metrics are as of 9/30/2024 unless otherwise noted (1) YTD Annualized growth; (2) 9/30/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision 3Q24 Results +4% YoY Client Deposit Growth +3.5% Net New Relationship Household Growth(1) Driving New Relationships Focused on Primacy Differentiated Fee Businesses Focused on Targeted Scale 10.8% Common Equity Tier 1(2), up ~100bps year-over-year Strengthening the Balance Sheet 70bps NPAs / Period-end Loans Risk Management Excellence 2 Received initial tranche $821MM strategic minority investment from Scotiabank (2)% Criticized Loans QoQ +9% YoY increase in organic growth areas (Investment Banking, Wealth and Payments) 35 - 40bps Expected FY24 NCOs / Loans $61Bn In Assets Under Management

 
Financial Review

 
4 Reported QoQ ▪ Reported EPS of $(0.47), with $(0.77) impact from loss on sale of securities(1) ‒ Adjusted EPS of $0.30(3) ▪ Net interest income up 7% QoQ as a greater portion of low- yielding short-term swaps and Treasuries matured, and the funding mix improved ▪ Noninterest income impacted by a $918MM loss on the sale of securities as part of a strategic repositioning of the portfolio ▪ Expenses remained well-controlled, down 1.4% YoY ▪ Provision for Credit Losses of $95MM, down 5% QoQ, and included $154MM of NCOs and ~$60MM release of allowance for credit losses ▪ CET1 up 35 basis points QoQ to 10.8%(2) ▪ Tangible book value per common share increased ~16% QoQ YoY $ in millions, excluding EPS From continuing operations, unless otherwise noted N/M = Not Meaningful (1) See slide 24 for breakout on Selected Items Impact on Earnings; (2) 9/30/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (3) Non-GAAP measure: see appendix for reconciliation 3Q24 Highlights EPS $(0.47) N/M N/M Net Interest Income (TE) $964 7.2% 4.4% Noninterest Income $(269) N/M N/M Revenue (TE) $695 (54.5)% (55.6)% Noninterest Expense $1,094 1.4% (1.4)% Provision for Credit Losses $95 (5.0)% 17.3% CET1(2) 10.8% 35bps 99bps Cash Efficiency Ratio(3) 156.4% N/M N/M ROTCE(3) (17.0)% N/M N/M Tangible Book Value per Common Share $11.72 15.7% 35.5% Includes $(0.77) impact after-tax, or $918MM loss pretax, from the sale of securities(1) +3% YoY ex. loss on sale of securities(1)

 
$81.6 $78.6 $76.4 $75.1 $73.1 $36.1 $35.3 $34.6 $33.9 $33.2 3Q23 4Q23 1Q24 2Q24 3Q24 $106.2 5 ▪ Average loans down 2.5% from 2Q24 − Decline in commercial loans (-$2Bn), due to lower commercial and industrial loans and commercial mortgage real estate loans − Decline in average consumer loans (-$0.7Bn), driven by declines across all consumer loan categories vs. Prior Quarter Portfolio Highlights ▪ ~63% variable rate, or 45% after adjusting for loans swapped to a fixed rate; loan yields would have been 6.4% in third quarter 2024 excluding the impact from hedges(3) ▪ ~92% of commercial loans are made to clients who do additional business with Key(4) ▪ 54% of the C&I portfolio is investment grade; Consumer book has a 764 weighted average FICO at origination ▪ C&I loan utilization: 31% in 3Q24 QoQ Avg Balances by Type C&I Commercial Leases 2Q24 3Q24Other 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) Defined as capital markets, payments or deposits Average Loans Consumer Commercial Loan Yield $117.6 $113.9 $111.0 $109.0 $ in billions 5.41% 5.51% 5.61% 5.66% 5.73% EOP Loans: $105.3Bn

 
36% 17%7% 30% 10%19% 3% 38% 27% 12% vs. Prior Quarter Deposit Franchise Highlights 6 ▪ Average deposits were up 2.5% from 2Q24 − Growth in consumer and commercial deposits − Included ~$1Bn increase in brokered CDs ▪ Total deposit costs rose by 11 basis points − Mostly reflects growth in new client deposits and brokered deposits to replace more expensive wholesale funding − Cumulative total interest-bearing deposit beta: ~55%(3) ▪ Client deposits up 4% year-over-year ▪ Commercial deposit balances driven by relationship clients − 76% of commercial deposits in core operating accounts − 93% of commercial deposits have an operating account ▪ Loan-to-deposit ratio: 71%(4) 3Q24 Product Mix Time deposits Savings Noninterest- bearing Demand 3Q24 Interest-bearing Mix Consumer ex term products 21% MMDA Other Commercial / Treasury Managed / Indexed Commercial Wealth & Laurel Road Note: Graphs may not foot due to rounding (1) Other includes treasury brokered deposits and other deposits; (2) Includes MMDA promos and retail CDs; (3) Cumulative beta indexed to 4Q21; (4) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits Average Deposits Consumer Other(1) Commercial $82.7 $83.6 $84.1 $85.4 $86.4 $56.1 $58.2 $56.3 $57.4 $58.7 $6.0 $3.3 $2.5 $1.4 $2.7 3Q23 4Q23 1Q24 2Q24 3Q24 $145.1$144.8 $142.9 $144.2 Total deposit cost $ in billions 1.88% 2.06% 2.20% 2.28% 2.39% $147.8 Consumer term products(2)

 
$923 $928 $886 $899 $964 3Q23 4Q23 1Q24 2Q24 3Q24 TE = Taxable equivalent Note: NIM Walk may not foot due to rounding 7 NII Walk (TE) NIM Walk (TE) 2.01% 2.07% 2.02% 2.04% Net Interest Income and Margin (TE) From continuing operations, $ in millions 2.17% +7% Swap & UST rolloff Earning asset yields & mix Deposit cost & mix Other 2Q24 3Q24 Securities repositioning & BNS investment Other funding cost & mix 2.04% 2.17% Swap & UST rolloff Earning asset yields & mix Deposit cost & mix Other2Q24 3Q24Other funding cost & mix Securities repositioning & BNS investment $10 day count & NPL payoff

 
$236 $216 $181 $141 $126 $171 $130 $139 $140 $90 $85 $84 $46 $61 $73 3Q23 2Q24 3Q24 N/M (1)% +36% +20% +1% (16)% N/M QoQ 8 % change YoY +21% +59% (7)% +8% (23)% vs. Prior Year $ in millions; Illustrative, not drawn to scale ▪ Noninterest income included a $918MM pre- tax loss from the sale of securities(2) − Excluding the loss on the sale of securities(2), fees were up 1% − Investment Banking & Debt Placement growth (+$30MM), due to higher syndications, debt, and equity underwriting fees − Commercial Mortgage Servicing fees (+$27MM), reflects higher active special servicing balances and growth in the overall portfolio − Trust & Investment Services growth (+$10MM) driven by AUM growth and continued strong momentum in Key Private Client (1) Other includes Corporate-Owned Life Insurance Income, Consumer Mortgage Income, Operating Lease Income and Other Leasing Gains, Corporate Services, Service Charges and Other Income; (2) See slide 24 for breakout on Selected Items Impact on Earnings Noninterest Income $643 $627 $(269)Total Noninterest Income Investment Banking & Debt Placement Trust & Investment Services Cards & Payments Commercial Mortgage Servicing Other(1) Pretax loss on sale of securities(2)$(918) Includes $918MM loss on sale of securities(2)

 
9 $663 $636 $670 $447 $438 $430 $5 3Q23 2Q24 3Q24 Personnel Non-personnel(1) vs. Prior Year % change YoY QoQ (4)% 1% (2)% 5% (1.4)% 1.4% ▪ Noninterest expense down $16MM (-1.4%) − A reduction in an estimated FDIC special assessment (-$6MM), and lower marketing expenses (-$7MM) − Partly offset by an increase in personnel expense (+$7MM) and computer processing costs (+$15MM) ▪ Noninterest expense up $15MM (+1.4%) − Personnel expense (+$34MM) driven by higher incentive compensation, reflective of stronger capital markets activity − Partly offset by a decline in other expense (-$23MM), related to a reduction of the estimated FDIC special assessment charge recognized in the prior quarter(2) $ in millions (1) 2Q24 excludes FDIC special assessments and 3Q24 includes a reduction of the estimated FDIC special assessment charge; (2) FDIC Special Assessment, please see slide 24 for breakout on Selected Items Impact on Earnings Noninterest Expense $1,094$1,079$1,110 Total Noninterest Expense (2) vs. Prior Quarter $(6) (2)

 
0.15% 0.20% 0.22% 0.26% 0.17% 0.04% 0.09% 0.11% 0.13% 0.16% 3Q23 4Q23 1Q24 2Q24 3Q24 NCO = Net charge-off (1) Loan and lease outstandings 10 $ in millions $4,475 $4,984 $6,588 $6,973 $6,841 3Q23 4Q23 1Q24 2Q24 3Q24 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 3.9% 4.4% 6.0% 6.5% $71 $76 $81 $91 $154 $81 $102 $101 $100 $95 3Q23 4Q23 1Q24 2Q24 3Q24 NCOs Provision for credit losses NCOs to avg. loans 0.24% 0.26% 0.29% 0.34% $455 $574 $658 $710 $728 3Q23 4Q23 1Q24 2Q24 3Q24 Nonperforming Loans to Period-end Total Loans $ in millions Nonperforming Loans to Period-end Total LoansNonperforming Loans 0.39% 0.51% 0.60% 0.66% Credit Quality Continuing Operations 0.69% 0.58% 6.5% +2.5% (2)%

 
$(2.8) $(2.7) $(1.9) $(1.7) 3Q23 4Q23 1Q24 2Q24 3Q24 11 $ in billions Tangible Common Equity Ratio(2) Common Equity Tier 1(1) Projected AOCI Impacts (Flat and Forward Curve)(3) 4.4% 5.1% 5.0% 5.2% 6.2% 3Q23 4Q23 1Q24 2Q24 3Q24 9.8% 10.0% 10.3% 10.5% Adjusted for unrealized AFS Securities and Pension losses(2) 6.2% 7.0% 7.1% 7.3% (1) 9/30/2024 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 9/30/2024, includes contemplated securities repositioning in 2025; any contemplated actions undertaken are subject to market conditions and satisfaction of all regulatory requirements related to the strategic minority investment from Scotiabank Capital 10.8% 8.6% $(3.3) $(3.0) ~40% $(2.1) Forward Rates 12/31/24 AOCI Position 9/30/24 AOCI burn down assumes ~8 rate cuts through 2025, 0 cuts in 2026, and 3- to 5- year UST rates relatively unchanged ~37% ~7% $(2.0) 12/31/25 12/31/26 AFS AOCI Other AOCI

 
Average Deposits up 1 – 2%, with client deposits up 3 – 4% (previously relatively stable, with client deposits up) FY2024 (vs. FY2023)2023 12 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 FDIC special assessments of $28MM in 2024; (3) Excludes the $918MM loss on sale of securities; (4) Includes the $918MM loss on the sale of securities; (5) See slide 24 for breakout on Selected Items Impact on Earnings; (6) To be updated upon the finalization of the currently proposed future capital requirements $118,004 $112,606 Average Loans Ending Loans Noninterest Income Noninterest Expense NCOs to Avg Loans GAAP Tax Rate down 7 – 8% down 5 – 6% (previously down 4 – 5%) Long-term Targets(6) $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% down 2 – 5% up low-single digits vs. 4Q23 annualized exit rate 10%+ 4Q24 vs. 4Q23 up 6%+(3) (previously up 5%+) up ~2% (1,2) (previously relatively stable(1,2)) 35 – 40 bps (previously 30 – 40 bps) $2,470 $4,734 21 bps ~13%(4) $ in millions 2024 Outlook Net Interest Income (TE) Includes selected items of $339MM(1) ~20% excluding the loss on the securities portfolio(5)

 
Note: Prior quarters used a simplifying assumption that any benefit was captured the quarter after maturity, where 3Q and 4Q reflect actual activity (1) Assumes the forward curve as of 9/30/2024; only includes short-term swaps and US Treasury maturities 13 NII Opportunity From Swaps and Treasuries 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Treasuries SwapsBenefit Realized $ in millions; cumulative view ~$830MM expected annualized NII opportunity (of which ~80% realized to date) ~$118 ~$164 ~$208

 
14 ▪ Loan Balances − Commercial loans up ~$1Bn off 3Q average (includes held for investment and held for sale) − Consumer loans decline ~$800MM ▪ Deposit Balances and Mix − Avg deposits flat to up 1% − Some migration from NIB to IB deposits ▪ Other − ~$1.3Bn of securities cash flows roll-off at ~2.4% − ~$0.8Bn of consumer loans roll off at ~4.0% − Variable-rate loans reprice to changes in benchmark SOFR monthly − $12Bn investment securities swapped to floating − $4.75Bn of FHLB debt maturing in 4Q at an expected weighted-average rate of ~5.4% Net Interest Income Opportunity Achieving 4Q24 Exit Rate NII Target Change to NII ($ in millions); Illustrative, not drawn to scale Securities Repositioning & Scotiabank Investment ST USTs & Swaps Opportunity Near-term Impact of Fed Rate Cuts 3Q24 Commercial Loan Growth (HFI + HFS) $1,020+ 4Q24Other (including funding optimization) Other Key Inputs & Assumptions Nets to a slightly negative impact ~2.40% NIM $38 Other Fixed Asset Repricing

 
Appendix

 
Other 1% 1M SOFR 20% 3M SOFR 8% Prime 8% O/N SOFR 26% Fixed 37% Loan Composition(1) 61%20% 4% 13% 2% Total Loans AFS Securities Other(3) $9.0 $8.7 $8.4 $8.1 $7.8 $37.3 $35.6 $37.1 $36.8 $36.7 3Q23 4Q23 1Q24 2Q24 3Q24 Average AFS Securities Average Yield(4)Average HTM Securities $ in billions Average Total Investment Securities $46.3 $45.5 $44.9 Fixed-rate Asset Repricing Tailwinds – 4Q24 to 2026 16 2.06% 2.26% 2.40% Balance Sheet Management Detail 2.61% $44.5$44.3 ST Investments HTM Securities2.98% (1) Loan statistics based on 9/30/2024 period-end balances; (2) Based on 9/30/2024 period-end balances; chart may not foot due to rounding; (3) Other includes loans HFS and trading account assets; (4) Yield is calculated on the basis of amortized cost; (5) 2H24 receive-fixed swaps were terminated in September 2023 and realized P&L from the terminated swaps that mature in 2H24 will be recognized throughout 2H24; (6) Excludes short-term Treasury maturities shown in the bottom right graph $ in billions 4Q24 2025 2026 Projected receive-fixed swaps(5) maturities 0.0 $5.2 $9.1 Weighted-average rate received (%) n/a 1.80% 2.78% Projected fixed rate loans cash flows / maturities $4.7 $13.1 $13.6 Weighted-average rate received (%) 3.82% 3.98% 4.22% Projected fixed rate investment securities cash flows / maturities(6) $1.3 $5.9 $6.5 Weighted-average rate received (%) 2.44% 3.14% 3.59% Earning Asset Mix(2)

 
$18.8 $18.8 $18.1 $23.3 $14.5 $5.8 3Q24 4Q24 1Q25 FY25 FY26 FY27 Hedging Strategy Summary 17 (1) Portfolio as of 9/30/2024 and includes already executed forward-starting swaps; (2) AFS securities swapped to floating rate ~2.3% ~2.3% ~2.6% ~3.1% ~3.3% ~3.8% 4Q24 1Q25 FY25 FY26 FY27 $0 $2.2 $5.2 $9.1 $8.7 n/a 1.4% 1.8% 2.8% 2.9% W.A. Active Receive Rate as of 9/30/24 Note: Maturing Swaps ($Bn) W.A. Receive-fixed Rate Active Receive- fixed Asset Swaps(1) $ in billions; ending balances Other Hedge Positions ($ in billions) 9/30/2024 Debt Hedges $10.8 Securities Hedges(2) $12.4 Floor Spreads $3.3 3Q24 ALM Hedge Actions 2Q24 ALM Hedge Actions ▪ Executed $3.7Bn of forward-starting receive-fixed swaps – WA receive rate: 3.55% (May 2025 start date) ▪ Executed $2.7Bn of spot-starting pay-fixed swaps to hedge securities – WA pay rate: 4.23% ▪ Terminated $1.0Bn of accruing pay-fixed swaps to hedge securities – WA pay rate: 3.84% ▪ Executed $5.75Bn of forward-starting receive-fixed swaps – WA receive rate: 4.06% (March 2025 start date) ▪ Executed $1.35Bn of spot pay-fixed swaps to hedge securities – WA pay rate: 4.48% 1Q24 ALM Hedge Actions ▪ 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-fixed swaps to hedge securities – WA pay rate: 4.1%

 
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 9/30/2024 (1) Data as of 6/30/2024; Sourced from ffiec.gov ‘peer group average reports’; (2) Data as of 6/30/2024; Includes: CFG, CMA, FCNCA, FITB, HBAN, MTB, RF and ZION; (3) Data as of 6/30/2024; 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: 5.1% • Reserves to loans: ~5% • B&C Class properties in CBDs <0.1% of total loans • Nonperforming loans: 1.22% • 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% 10% Commercial Real Estate

 
0.93% 0.14% (0.02)% 0.00% 4.33% 1.10% C&I CRE Resi Mtg Home Equity Credit Cards Other Consumer 19 Allowance to NPLs (%)(2) Criticized Outstandings to Period-end Loans (%)(2) 180% 240% 128% 80% N/M N/M C&I CRE Resi Mtg Home Equity Credit Cards Other Consumer 8.1% 13.6% 0.4% 1.4% 2.1% 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 Note: All metrics are as of 9/30/2024 unless otherwise noted; (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 balances include $219 million of commercial credit card balances at September 30, 2024; (4) Commercial and industrial includes receivables held as collateral for a secured borrowing of $261 million at September 30, 2024. Principal reductions are based on the cash payments received from these related receivables Allowance for Credit Losses (ACL) $ in millions $1,778 $1,804 $1,823 $1,833 $1,774 3Q23 4Q23 1Q24 2Q24 3Q24 Allowance for Credit Losses to Period-end LoansAllowance for Credit Losses 1.54% 1.60% 1.66% 1.71% 1.68% Net Loan Charge-offs(1) to Average Loans (%)(2)

 
GAAP to Non-GAAP Reconciliation (1) For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, intangible assets exclude less than $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 September 30, 2024, June 30, 2024, and September 30, 2023, average intangible assets exclude less than $1 million, $1 million, and $1 million, respectively, of average purchased credit card receivables. 20 $ in millions 3Q24 2Q24 3Q23 Tangible common equity to tangible assets at period end Key shareholders’ equity (GAAP) $ 16,852 $ 14,789 $ 13,356 Less: Intangible assets(1) 2,786 2,793 2,816 Preferred stock(2) 2,446 2,446 2,446 Tangible common equity (non-GAAP) $ 11,620 $ 9,550 $ 8,094 Total assets (GAAP) $ 189,763 $ 187,450 $ 187,851 Less: Intangible assets(1) 2,786 2,793 2,816 Tangible assets (non-GAAP) $ 186,977 $ 184,657 $ 185,035 Tangible common equity to tangible assets ratio (non-GAAP) 6.21 % 5.17 % 4.37 % Average tangible common equity Average Key shareholders’ equity (GAAP) $ 15,759 $ 14,474 $ 13,831 Less: Intangible assets (average) (3) 2,789 2,796 2,821 Preferred stock (average) 2,500 2,500 2,500 Average tangible common equity (non-GAAP) $ 10,470 $ 9,178 $ 8,510

 
GAAP to Non-GAAP Reconciliation 21 $ in millions 3Q24 2Q24 3Q23 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ (447) $ 237 $ 266 Average tangible common equity (non-GAAP) 10,470 9,178 8,510 Return on average tangible common equity from continuing operations (non-GAAP) (16.98) % 10.39 % 12.40 % Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) $ (446) $ 238 $ 267 Average tangible common equity (non-GAAP) 10,470 9,178 8,510 Return on average tangible common equity consolidation (non-GAAP) (16.95) % 10.43 % 12.45 % Cash efficiency ratio Noninterest expense (GAAP) $ 1,094 $ 1,079 $ 1,110 Less: Intangible asset amortization 7 7 9 Adjusted noninterest expense (non-GAAP) $ 1,087 $ 1,072 $ 1,101 Net interest income (GAAP) $ 952 $ 887 $ 915 Plus: Taxable-equivalent adjustment 12 12 8 Net interest income TE (non-GAAP) 964 899 923 Noninterest income (GAAP) (269) 627 643 Total taxable-equivalent revenue (non-GAAP) $ 695 $ 1,526 $ 1,566 Cash efficiency ratio (non-GAAP) 156.4 % 70.2 % 70.3 %

 
GAAP to Non-GAAP Reconciliation 22 $ in millions 3Q24 2Q24 3Q23 Adjusted income (loss) available from continuing operations attributable to Key common shareholders Income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ (447) $ 237 $ 266 Plus: Loss on sale of securities (net of tax) 737 - - Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP) $ 290 $ 237 $ 266 Diluted earnings per common share (EPS) - adjusted Diluted EPS from continuing operations attributable to Key common shareholders (GAAP) $ (.47) $ .25 $ .29 Plus: EPS impact of loss on sale of securities .77 $ - $ - Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP) $ .30 $ .25 $ .29

 
GAAP to Non-GAAP Reconciliation 23 CET1 – AOCI Impact(1) ($ in millions) 3Q23 4Q23 1Q24 2Q24 3Q24 Common Equity Tier 1 (A) $ 15,007 $ 14,894 $ 14,821 $ 14,901 $ 15.,045 Add: AFS and Pension accumulated other Comprehensive income (loss) (5,581) (4,573) (4,608) (4,530) (3,118) Adjusted Common Equity Tier 1 (B) $ 9,426 $ 10,321 $ 10,213 $ 10,371 $ 11,927 Risk Weighted Assets (C) $ 152,672 $ 148,575 $ 144,295 $ 141,971 $ 139,061 Common Equity Tier 1 ratio (A/C) 9.83 % 10.02 % 10.27 % 10.47 % 10.82 % Adjusted CET1 Ratio (B/C) 6.17 % 6.95 % 7.08 % 7.29 % 8.58 % (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) 3Q23 4Q23 1Q24 2Q24 3Q24 Loan Yield 5.41 % 5.51 % 5.61 % 5.66 % 5.73 % Subtract: Loan Yield Impact of Realized Hedge Gains/(Losses) (0.86) % (0.84) % (0.78) % (0.73) % (0.69) % Loan Yield Excluding Impact from Hedges 6.27 % 6.35 % 6.39 % 6.39 % 6.42 %

 
24 (1) Includes items impacting results or trends during the period but are not considered non-GAAP adjustments; (2) Favorable (unfavorable) impact. (3) After-tax loss on sale of securities adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments to be required in the fourth quarter of 2024; (4) Impact to EPS reflected on a fully diluted basis; (5) 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. Amounts reflected for both the three-months ended June 30, 2024, and September 30, 2024, represent adjustments from initial estimates based on quarterly invoices received by the FDIC; (6) 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. Selected Items Impact on Earnings Selected Items Impact on Earnings(1) $ in millions, except per share amounts Pretax(2) After-tax at marginal rate(2)(3) Quarter to date results Amount Net Income EPS(4) Three months ended September 30, 2024 Loss on sale of securities (other income) $ (918) $ (737) $ (0.77) FDIC special assessment (other expense)(4) 6 5 - Three months ended June 30, 2024 FDIC special assessment (other expense)(5) (5) (4) - Three months ended March 31, 2024 FDIC special assessment (other expense)(5) (29) (22) (0.02) Three months ended December 31, 2023 Efficiency related expenses(6) (67) (51) (0.05) Pension settlement (other expense) (18) (14) (0.02) FDIC special assessment (other expense)(5) (190) (144) (0.15) Three months ended September 30, 2023 No items

 
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 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, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent. GAAP: Generally Accepted Accounting Principles 25 Forward-looking Statements and Additional Information

 
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
9/30/20246/30/20249/30/2023
Assets
Loans$105,346 $107,078 $115,544 
Loans held for sale 1,058 517 730 
Securities available for sale34,169 37,460 35,839 
Held-to-maturity securities7,702 7,968 8,853 
Trading account assets1,404 1,219 1,325 
Short-term investments22,796 15,536 7,871 
Other investments1,117 1,259 1,356 
Total earning assets173,592 171,037 171,518 
Allowance for loan and lease losses(1,494)(1,547)(1,488)
Cash and due from banks1,276 1,326 766 
Premises and equipment624 631 649 
Goodwill2,752 2,752 2,752 
Other intangible assets34 41 65 
Corporate-owned life insurance4,379 4,382 4,381 
Accrued income and other assets8,323 8,532 8,843 
Discontinued assets277 296 365 
Total assets$189,763 $187,450 $187,851 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits119,995 117,570 112,581 
Noninterest-bearing deposits30,358 28,150 31,710 
Total deposits150,353 145,720 144,291 
Federal funds purchased and securities sold under repurchase agreements 44 25 43 
Bank notes and other short-term borrowings2,359 5,292 3,470 
Accrued expense and other liabilities4,478 4,755 5,388 
Long-term debt15,677 16,869 21,303 
Total liabilities172,911 172,661 174,495 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,149 6,185 6,254 
Retained earnings15,066 15,706 15,835 
Treasury stock, at cost(4,839)(5,715)(5,851)
Accumulated other comprehensive income (loss)(3,281)(5,144)(6,639)
Key shareholders’ equity16,852 14,789 13,356 
Noncontrolling interests— — — 
Total equity16,852 14,789 13,356 
Total liabilities and equity$189,763 $187,450 $187,851 
Common shares outstanding (000)991,251 943,200 936,161 



Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months endedNine months ended
9/30/20246/30/20249/30/20239/30/20249/30/2023
Interest income
Loans$1,516 $1,524 $1,593 $4,578 $4,645 
Loans held for sale18 8 19 40 49 
Securities available for sale298 259 192 789 580 
Held-to-maturity securities70 73 79 218 234 
Trading account assets15 16 15 45 42 
Short-term investments244 192 123 578 276 
Other investments14 16 22 47 51 
Total interest income2,175 2,088 2,043 6,295 5,877 
Interest expense
Deposits887 817 687 2,486 1,568 
Federal funds purchased and securities sold under repurchase agreements1 1 9 3 79 
Bank notes and other short-term borrowings43 51 81 140 263 
Long-term debt292 332 351 952 975 
Total interest expense1,223 1,201 1,128 3,581 2,885 
Net interest income952 887 915 2,714 2,992 
Provision for credit losses95 100 81 296 387 
Net interest income after provision for credit losses857 787 834 2,418 2,605 
Noninterest income
Trust and investment services income140 139 130 415 384 
Investment banking and debt placement fees171 126 141 467 406 
Service charges on deposit accounts67 66 69 196 205 
Operating lease income and other leasing gains16 21 22 61 70 
Corporate services income69 68 73 206 235 
Cards and payments income84 85 90 246 256 
Corporate-owned life insurance income36 34 35 102 96 
Consumer mortgage income12 16 15 42 40 
Commercial mortgage servicing fees73 61 46 190 142 
Other income(937)11 22 (920)26 
Total noninterest income(269)627 643 1,005 1,860 
Noninterest expense
Personnel670 636 663 1,980 1,986 
Net occupancy66 66 67 199 202 
Computer processing104 101 89 307 276 
Business services and professional fees41 37 38 119 124 
Equipment20 20 20 60 64 
Operating lease expense14 17 18 48 59 
Marketing21 21 28 61 78 
Intangible asset amortization— — — — — 
Other expense158 181 187 542 573 
Total noninterest expense1,094 1,079 1,110 3,316 3,362 
Income (loss) from continuing operations before income taxes(506)335 367 107 1,103 
Income taxes(95)62 65 26 204 
Income (loss) from continuing operations(411)273 302 81 899 
Income (loss) from discontinued operations, net of taxes1 1 1 2 3 
Net income (loss)(410)274 303 83 902 
Less: Net income (loss) attributable to noncontrolling interests— — — — — 
Net income (loss) attributable to Key$(410)$274 $303 $83 $902 
Income (loss) from continuing operations attributable to Key common shareholders$(447)$237 $266 $(27)$791 
Net income (loss) attributable to Key common shareholders(446)238 267 (25)794 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$(.47)$.25 $.29 $(.03)$.85 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
(.47).25 .29 (.03).86 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$(.47)$.25 $.29 $(.03)$.85 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
(.47).25 $.29 (.03).85 
Cash dividends declared per common share$.205 $.205 $.205 $.615 $.615 
Weighted-average common shares outstanding (000)948,979 931,726 927,131 936,962 927,019 
Effect of common share options and other stock awards8,951 6,761 4,613 7,678 5,213 
Weighted-average common shares and potential common shares outstanding (000) (b)
957,929 938,487 931,744 944,640 932,232 
(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.


v3.24.3
Cover Page
Oct. 17, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 17, 2024
Entity Registrant Name KeyCorp
Entity Incorporation, State or Country Code OH
Entity File Number 001-11302
Entity Tax Identification Number 34-6542451
Entity Address, Address Line One 127 Public Square,
Entity Address, City or Town Cleveland,
Entity Address, State or Province OH
Entity Address, Postal Zip Code 44114-1306
City Area Code 216
Local Phone Number 689-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000091576
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common Shares, $1 par value
Trading Symbol KEY
Security Exchange Name NYSE
Series E Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E)
Trading Symbol KEY PrI
Security Exchange Name NYSE
Series F Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F)
Trading Symbol KEY PrJ
Security Exchange Name NYSE
Series G Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G)
Trading Symbol KEY PrK
Security Exchange Name NYSE
Series H Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Reset Perpetual Non-Cumulative Preferred Stock, Series H)
Trading Symbol KEY PrL
Security Exchange Name NYSE
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