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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): January 19, 2023
 
KeyCorp
key-20230119_g1.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 January 19, 2023, KeyCorp issued a press release announcing its financial results for the three- and twelve-month period ended December 31, 2022 (the “Press Release”), and posted on its website its fourth quarter 2022 Supplemental Information Package (the “Supplemental Information Package”). The Press Release and Supplemental Information Package are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

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

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

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

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

99.1    Press Release, dated January 19, 2023, announcing financial results for the three-month and twelve-month periods ended December 31, 2022

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

99.3    Financial Statements.

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


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KEYCORP
(Registrant)
Date: January 19, 2023/s/ Douglas M. Schosser
By: Douglas M. Schosser
Chief Accounting Officer

keylogoicononlyrgba01.jpg

KEYCORP REPORTS FOURTH QUARTER 2022 NET INCOME OF $356 MILLION,
OR $.38 PER DILUTED COMMON SHARE
Results reflect provision for credit losses of $265 million, which exceeded net charge-offs by $224 million, or $.20 per share

Loan and deposit growth across commercial and consumer businesses

Solid credit quality with net charge-offs to average loans of 14 basis points

Annual positive operating leverage for the ninth time in the last ten years


    CLEVELAND, January 19, 2023 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $356 million, or $.38 per diluted common share for the fourth quarter of 2022. This compared to $513 million, or $.55 per diluted common share, for the third quarter of 2022 and $601 million, or $.64 per diluted common share, for the fourth quarter of 2021.
quotescreenshotv8.jpg


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 2

Selected Financial Highlights
Dollars in millions, except per share dataChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Income (loss) from continuing operations attributable to Key common shareholders$356 $513 $601 (30.6)%(40.8)%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
.38 .55 .64 (30.9)(40.6)
Return on average tangible common equity from continuing operations (a)
18.07 %21.19 %18.69 %N/AN/A
Return on average total assets from continuing operations.83 1.14 1.34 N/AN/A
Common Equity Tier 1 ratio (b)
9.1 9.1 9.5 N/AN/A
Book value at period end$11.79 $11.62 $16.76 1.5 (29.7)
Net interest margin (TE) from continuing operations2.73 %2.74 %2.44 %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 “Return on average tangible common equity from continuing operations.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)December 31, 2022 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millionsChange 4Q22 vs.
 4Q223Q224Q213Q224Q21
Net interest income (TE)$1,227 $1,203 $1,038 2.0 %18.2 %
Noninterest income671 683 909 (1.8)(26.2)
Total revenue$1,898 $1,886 $1,947 .6 %(2.5)%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $1.2 billion for the fourth quarter of 2022 and the net interest margin was 2.73%. Compared to the fourth quarter of 2021, net interest income increased $189 million and the net interest margin increased by 29 basis points. Net interest income and net interest margin benefited from higher earning asset balances and higher interest rates. Net interest income and the net interest margin were negatively impacted by higher interest-bearing deposit costs and lower loan fees from the Paycheck Protection Program ("PPP").

Compared to the third quarter of 2022, taxable-equivalent net interest income increased by $24 million, while the net interest margin decreased by one basis point. Both net interest income and the net interest margin reflect the impact of strong loan growth and higher interest rates, offset by higher interest-bearing deposit costs, and a shift in funding mix.

Noninterest Income
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Trust and investment services income$126 $127 $135 (.8)%(6.7)%
Investment banking and debt placement fees172 154 323 11.7 (46.7)
Service charges on deposit accounts71 92 90 (22.8)(21.1)
Operating lease income and other leasing gains24 19 37 26.3 (35.1)
Corporate services income89 96 76 (7.3)17.1 
Cards and payments income85 91 86 (6.6)(1.2)
Corporate-owned life insurance income33 33 34 — (2.9)
Consumer mortgage income9 14 25 (35.7)(64.0)
Commercial mortgage servicing fees42 44 48 (4.5)(12.5)
Other income20 13 55 53.8 (63.6)
Total noninterest income$671 $683 $909 (1.8)%(26.2)%

    


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 3

    Compared to the fourth quarter of 2021, noninterest income decreased by $238 million. The decrease was largely driven by investment banking and debt placement fees, down $151 million, reflecting a slowdown in capital markets activity. Other income decreased $35 million as a result of market-related gains in the year-ago period. Service charges on deposit accounts decreased $19 million, primarily reflecting a planned reduction in overdraft and non sufficient funds fees. The decline also reflected lower account analysis fees related to the interest rate environment. Additionally, consumer mortgage income decreased $16 million, reflecting lower saleable volume and gain on sale margins, while operating lease income decreased $13 million, reflecting a continued decline in operating lease balances. Trust and investment services income decreased $9 million, primarily reflecting the decline in the equity markets. Partially offsetting the decrease was an increase in corporate services income of $13 million, primarily reflecting higher derivatives income.

Compared to the third quarter of 2022, noninterest income decreased by $12 million. The decline was driven partly by service charges on deposit accounts, which decreased $21 million, primarily reflecting a planned reduction in overdraft and non sufficient funds fees. It was also driven by corporate services income, which decreased $7 million, primarily reflecting a valuation adjustment benefit in the prior quarter. Partially offsetting the decline was an increase in investment banking and debt placement fees of $18 million due to seasonality.


Noninterest Expense
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Personnel expense$674 $655 $674 2.9 %— %
Nonpersonnel expense482 451 496 6.9 (2.8)
Total noninterest expense$1,156 $1,106 $1,170 4.5 %(1.2)%
    Key’s noninterest expense was $1.2 billion for the fourth quarter of 2022, a decrease of $14 million from the year-ago period. The decline was driven by a decrease of $14 million in nonpersonnel expense reflecting lower professional fees and operating lease expenses, down $10 million and $9 million, respectively. Personnel expense remained flat compared to the year-ago period, reflecting higher salaries and employee benefits, offset by lower incentive and stock based compensation.

    Compared to the third quarter of 2022, noninterest expense increased $50 million. The increase was primarily driven by nonpersonnel expense, which increased $31 million, reflecting a $17 million increase in other expense related primarily to a pension settlement charge and a $13 million increase in professional fees. Personnel expense was also up $19 million, reflecting lower deferred costs from slower loan originations.



BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Commercial and industrial (a)
$58,212 $56,151 $49,510 3.7 %17.6 %
Other commercial loans22,720 22,200 19,743 2.3 15.1 
Total consumer loans36,770 36,067 30,144 1.9 22.0 
Total loans$117,702 $114,418 $99,397 2.9 %18.4 %
(a)Commercial and industrial average loan balances include $171 million, $162 million, and $141 million of assets from commercial credit cards at December 31, 2022, September 30, 2022, and December 31, 2021, respectively.
    
Average loans were $117.7 billion for the fourth quarter of 2022, an increase of $18.3 billion compared to the fourth quarter of 2021. Commercial loans increased by $11.7 billion, reflecting core commercial and industrial loan growth and an increase in commercial mortgage real estate loans, which mitigated the impact of a $2.2 billion decline in PPP balances. Consumer loans increased $6.6 billion, largely driven by Key's consumer mortgage business and student loan originations from Laurel Road.


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 4


Compared to the third quarter of 2022, average loans increased by $3.3 billion. Commercial loans increased $2.6 billion, reflecting growth in commercial and industrial loans and commercial mortgage real estate loans. Consumer loans increased $703 million, driven by Key's consumer mortgage business.

Average Deposits
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Non-time deposits$139,558 $140,169 $146,979 (.4)%(5.0)%
Certificates of deposit ($100,000 or more)1,351 1,347 1,793 .3 (24.7)
Other time deposits4,757 2,713 2,233 75.3 113.0 
Total deposits$145,666 $144,229 $151,005 1.0 %(3.5)%
Cost of total deposits.51 %.16 %.04 %N/AN/A
N/A = Not Applicable

    Average deposits totaled $145.7 billion for the fourth quarter of 2022, a decrease of $5.3 billion compared to the year-ago quarter. The decrease reflects declines in non-operating commercial deposit balances and retail balances.

Compared to the third quarter of 2022, average deposits increased by $1.4 billion, reflecting higher commercial balances, and a shift in mix from noninterest-bearing to interest-bearing balances, partly offset by declines in retail balances.

ASSET QUALITY
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Net loan charge-offs$41 $43 $19 (4.7)%115.8 %
Net loan charge-offs to average total loans.14 %.15 %.08 %N/AN/A
Nonperforming loans at period end$387 $390 $454 (.8)(14.8)
Nonperforming assets at period end420 419 489 .2 (14.1)
Allowance for loan and lease losses1,337 1,144 1,061 16.9 26.0 
Allowance for credit losses1,562 1,338 1,221 16.7 27.9 
Provision for credit losses265 109 4 143.1 N/M
Allowance for loan and lease losses to nonperforming loans345 %293 %234 %N/AN/A
Allowance for credit losses to nonperforming loans404 343 269 N/AN/A
N/A = Not Applicable

    
    Key's provision for credit losses was $265 million, compared to $4 million in the fourth quarter of 2021 and provision of $109 million in the third quarter of 2022. The increase from prior periods primarily reflects the change in the economic outlook as well as growth in loans.

    Net loan charge-offs for the fourth quarter of 2022 totaled $41 million, or 0.14% of average total loans. These results compare to $19 million, or 0.08%, for the fourth quarter of 2021 and $43 million, or 0.15%, for the third quarter of 2022. Key’s allowance for credit losses was $1.6 billion, or 1.31% of total period-end loans at December 31, 2022, compared to 1.20% at December 31, 2021, and 1.15% at September 30, 2022.

    At December 31, 2022, Key’s nonperforming loans totaled $387 million, which represented 0.32% of period-end portfolio loans. These results compare to 0.45% at December 31, 2021, and 0.34% at September 30, 2022. Nonperforming assets at December 31, 2022, totaled $420 million, and represented 0.35% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.48% at December 31, 2021, and 0.36% at September 30, 2022.



KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 5

CAPITAL

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at December 31, 2022.
Capital Ratios
12/31/20229/30/202212/31/2021
Common Equity Tier 1 (a)
9.1 %9.1 %9.5 %
Tier 1 risk-based capital (a)
10.6 10.7 10.8 
Total risk-based capital (a)
12.8 12.7 12.5 
Tangible common equity to tangible assets (b)
4.4 4.3 6.9 
Leverage (a)
8.9 8.9 8.5 
(a)December 31, 2022 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 capital position remained strong in the fourth quarter of 2022. As shown in the preceding table, at December 31, 2022, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.1% and 10.6%, respectively. Key's tangible common equity ratio increased ten basis points to 4.4% at December 31, 2022.

    Key elected the CECL phase-in option provided by regulatory guidance which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022. Effective for the first quarter 2022, Key is now in the three-year transition period. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by 12 basis points.

Summary of Changes in Common Shares Outstanding
In thousandsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Shares outstanding at beginning of period932,938 932,643 930,544 — %.3 %
Open market repurchases, repurchases under the accelerated repurchase program, and return of shares under employee compensation plans(2)(3)(2,482)(33.3)(99.9)
Shares issued under employee compensation plans (net of cancellations)389 298 788 30.5 (50.6)
Shares outstanding at end of period933,325 932,938 928,850 — %.5 %

    
    During the fourth quarter of 2022, Key declared a dividend of $.205 per common share, representing a 5% increase from the prior quarter. In the third quarter of 2022, the KeyCorp Board of Directors approved an extension of the remaining $790 million existing share repurchase authorization through the third quarter of 2023.

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.



KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 6

Major Business Segments
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Revenue from continuing operations (TE)
Consumer Bank$900 $891 $839 1.0 %7.3 %
Commercial Bank928 889 1,027 4.4 (9.6)
Other (a)
70 106 81 (34.0)(13.6)
Total$1,898 $1,886 $1,947 .6 %(2.5)%
Income (loss) from continuing operations attributable to Key
Consumer Bank$73 $142 $161 (48.6)%(54.7)%
Commercial Bank250 295 448 (15.3)(44.2)
Other (a)
71 103 18 (31.1)294.4 
Total$394 $540 $627 (27.0)%(37.2)%
(a)Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent


Consumer Bank
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Summary of operations
Net interest income (TE)$674 $632 $570 6.6 %18.2 %
Noninterest income226 259 269 (12.7)(16.0)
Total revenue (TE)900 891 839 1.0 7.3 
Provision for credit losses105 37 14 183.8 650.0 
Noninterest expense699 667 613 4.8 14.0 
Income (loss) before income taxes (TE)96 187 212 (48.7)(54.7)
Allocated income taxes (benefit) and TE adjustments23 45 51 (48.9)(54.9)
Net income (loss) attributable to Key$73 $142 $161 (48.6)%(54.7)%
Average balances
Loans and leases$43,149 $42,568 $37,841 1.4 %14.0 %
Total assets46,214 45,638 41,072 1.3 12.5 
Deposits87,243 90,044 90,385 (3.1)(3.5)
Assets under management at period end$51,282 $47,846 $55,806 7.2 %(8.1)%
TE = Taxable Equivalent




KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 7

Additional Consumer Bank Data
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Noninterest income
Trust and investment services income$97 $99 $107 (2.0)%(9.3)%
Service charges on deposit accounts40 56 55 (28.6)(27.3)
Cards and payments income62 64 64 (3.1)(3.1)
Consumer mortgage income9 13 26 (30.8)(65.4)
Other noninterest income18 27 17 (33.3)5.9 
Total noninterest income$226 $259 $269 (12.7)%(16.0)%
Average deposit balances
NOW and money market deposit accounts$54,650 $56,696 $57,242 (3.6)%(4.5)%
Savings deposits7,439 7,556 6,951 (1.5)7.0 
Certificates of deposit ($100,000 or more)1,227 1,238 1,669 (.9)(26.5)
Other time deposits1,763 1,838 2,228 (4.1)(20.9)
Noninterest-bearing deposits22,164 22,716 22,295 (2.4)(.6)
Total deposits$87,243 $90,044 $90,385 (3.1)%(3.5)%
Other data
Branches972 976 999 
Automated teller machines1,265 1,270 1,317 
    


Consumer Bank Summary of Operations (4Q22 vs. 4Q21)
•Key's Consumer Bank recorded net income attributable to Key of $73 million for the fourth quarter of 2022, compared to $161 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $104 million, or 18.2%, compared to the fourth quarter of 2021, driven by higher earning assets and interest rates
•Average loans and leases increased $5.3 billion, or 14.0%, from the fourth quarter of 2021, driven by loan growth in consumer mortgage and Laurel Road, partly offset by a decline in home equity loans
•Average deposits decreased $3.1 billion, or 3.5%, from the fourth quarter of 2021, driven by lower retail deposits
•Provision for credit losses increased $91 million compared to the fourth quarter of 2021, due to an increase in the provision in the current quarter, reflecting the change in the economic outlook, as well as growth in the consumer loan portfolio
•Noninterest income decreased $43 million from the year-ago quarter, driven by lower consumer mortgage income, reflecting lower saleable volume and gain on sale margins, lower service charges on deposit accounts reflecting a planned reduction in overdraft and non sufficient funds fees, and a decline in trust and investment services, reflecting lower equity markets
•Noninterest expense increased $86 million, or 14.0%, from the year-ago quarter, primarily driven by continued investments in technology and cybersecurity capabilities



KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 8

Commercial Bank
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Summary of operations
Net interest income (TE)$521 $495 $415 5.3 %25.5 %
Noninterest income407 394 612 3.3 (33.5)
Total revenue (TE)928 889 1027 4.4 (9.6)
Provision for credit losses165 74 (12)123.0 N/M
Noninterest expense460 450 501 2.2 (8.2)
Income (loss) before income taxes (TE)303 365 538 (17.0)(43.7)
Allocated income taxes and TE adjustments53 70 90 (24.3)(41.1)
Net income (loss) attributable to Key$250 $295 $448 (15.3)%(44.2)%
Average balances
Loans and leases$74,100 $71,464 $61,078 3.7 %21.3 %
Loans held for sale1,377 1,036 1,962 32.9 (29.8)
Total assets84,614 81,898 71,581 3.3 18.2 
Deposits54,385 52,272 59,423 4.0 %(8.5)%
TE = Taxable Equivalent

Additional Commercial Bank Data
Dollars in millionsChange 4Q22 vs.
4Q223Q224Q213Q224Q21
Noninterest income
Trust and investment services income$30 $29 $29 3.4 %3.4 %
Investment banking and debt placement fees172 153 322 12.4 (46.6)
Operating lease income and other leasing gains23 19 36 21.1 (36.1)
Corporate services income81 89 68 (9.0)19.1 
Service charges on deposit accounts30 36 34 (16.7)(11.8)
Cards and payments income19 19 26 — (26.9)
Payments and services income130 144 128 (9.7)1.6 
Commercial mortgage servicing fees41 44 47 (6.8)(12.8)
Other noninterest income11 5 50 120.0 (78.0)
Total noninterest income$407 $394 $612 3.3 %(33.5)%

Commercial Bank Summary of Operations (4Q22 vs. 4Q21)
•Key's Commercial Bank recorded net income attributable to Key of $250 million for the fourth quarter of 2022 compared to $448 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $106 million, or 25.5%, compared to the fourth quarter of 2021, reflecting growth in commercial and industrial loans and commercial real estate loans, as well as higher interest rates
•Average loan and lease balances increased $13.0 billion, or 21.3%, compared to the fourth quarter of 2021, due to growth in commercial and industrial loans and commercial mortgage real estate loans
•Average deposit balances decreased $5.0 billion compared to the fourth quarter of 2021, driven by a decline in non-operating deposits
•Provision for credit losses increased $177 million compared to the fourth quarter of 2021, due to an increase in the provision in the current quarter, primarily reflecting the change in the economic outlook, as well as growth in the commercial loan portfolio and a reserve release in the year-ago period as uncertainty caused by the pandemic subsided
•Noninterest income decreased $205 million from the year-ago quarter, primarily driven by lower investment banking and debt placement fees and market-related gains in the year-ago period, partially offset by an increase in corporate services income primarily reflecting higher derivatives income
•Noninterest expense decreased $41 million from the fourth quarter of 2021, primarily driven by lower incentive compensation and lower operating lease expense


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
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 $189.8 billion at December 31, 2022.

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 1,300 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 Fourth Quarter 2022 Profit     
January 19, 2023
Page 10

CONTACTS:
ANALYSTSMEDIA
Vernon L. PattersonSusan Donlan
216.689.0520216.471.3133
Vernon_Patterson@KeyBank.comSusan_E_Donlan@KeyBank.com
Adrienne AtkinsonBeth Strauss
216.689.4030216.471.2787
Adrienne.Atkinson@key.comBeth_A_Strauss@KeyBank.com
Halle A. NicholsTwitter: @keybank
216.471.2184
Halle_A_Nichols@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, 2021, as well as 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, 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 10:00 a.m. ET, on January 19, 2023. A replay of the call will be available through January 28, 2023.
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 Fourth Quarter 2022 Profit     
January 19, 2023
Page 11




KeyCorp
Fourth Quarter 2022
Financial Supplement


    
Page
Financial Highlights
GAAP to Non-GAAP Reconciliation
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
Noninterest Expense
Personnel Expense
Loan Composition
Loans Held for Sale Composition
Summary of Changes in Loans Held for Sale
Summary of Loan and Lease Loss Experience From Continuing Operations
Asset Quality Statistics From Continuing Operations
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
Summary of Changes in Nonperforming Loans From Continuing Operations
Line of Business Results


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 12

Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
12/31/20229/30/202212/31/2021
Summary of operations
Net interest income (TE)$1,227 $1,203 $1,038 
Noninterest income671 683 909 
Total revenue (TE)
1,898 1,886 1,947 
Provision for credit losses265 109 4 
Noninterest expense1,156 1,106 1,170 
Income (loss) from continuing operations attributable to Key394 540 627 
Income (loss) from discontinued operations, net of taxes— 2 2 
Net income (loss) attributable to Key394 542 629 
Income (loss) from continuing operations attributable to Key common shareholders356 513 601 
Income (loss) from discontinued operations, net of taxes— 2 2 
Net income (loss) attributable to Key common shareholders356 515 603 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.38 $.55 $.65 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.38 .55 .65 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution.38 .55 .64 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
.38 .55 .64 
Cash dividends declared.205 .195 .195 
Book value at period end11.79 11.62 16.76 
Tangible book value at period end8.75 8.56 13.72 
Market price at period end17.42 16.02 23.13 
Performance ratios
From continuing operations:
Return on average total assets.83 %1.14 %1.34 %
Return on average common equity13.24 16.33 15.31 
Return on average tangible common equity (b)
18.07 21.19 18.69 
Net interest margin (TE)2.73 2.74 2.44 
Cash efficiency ratio (b)
60.3 58.0 59.4 
From consolidated operations:
Return on average total assets.82 %1.14 %1.35 %
Return on average common equity13.24 16.39 15.36 
Return on average tangible common equity (b)
18.07 21.28 18.75 
Net interest margin (TE)2.73 2.73 2.44 
Loan to deposit (c)
84.7 81.3 68.9 
Capital ratios at period end
Key shareholders’ equity to assets7.1 %7.0 %9.4 %
Key common shareholders’ equity to assets5.8 5.7 8.4 
Tangible common equity to tangible assets (b)
4.4 4.3 6.9 
Common Equity Tier 1 (d)
9.1 9.1 9.5 
Tier 1 risk-based capital (d)
10.6 10.7 10.8 
Total risk-based capital (d)
12.8 12.7 12.5 
Leverage (d)
8.9 8.9 8.5 
Asset quality — from continuing operations
Net loan charge-offs
$41 $43 $19 
Net loan charge-offs to average loans
.14 %.15 %.08 %
Allowance for loan and lease losses
$1,337 $1,144 $1,061 
Allowance for credit losses
1,562 1,338 1,221 
Allowance for loan and lease losses to period-end loans
1.12 %.98 %1.04 %
Allowance for credit losses to period-end loans
1.31 1.15 1.20 
Allowance for loan and lease losses to nonperforming loans345 293 234 
Allowance for credit losses to nonperforming loans404 343 269 
Nonperforming loans at period-end$387 $390 $454 
Nonperforming assets at period-end420 419 489 
Nonperforming loans to period-end portfolio loans.32 %.34 %.45 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets.35 .36 .48 
Trust assets
Assets under management$51,282 $47,846 $55,806 
Other data
Average full-time equivalent employees
18,210 17,907 16,797 
Branches
972 976 999 
Taxable-equivalent adjustment
$7 $7 $5 


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 13

Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Twelve months ended
12/31/202212/31/2021
Summary of operations
Net interest income (TE)$4,554 $4,098 
Noninterest income2,718 3,194 
Total revenue (TE)7,272 7,292 
Provision for credit losses502 (418)
Noninterest expense4,410 4,429 
Income (loss) from continuing operations attributable to Key1,911 2,612 
Income (loss) from discontinued operations, net of taxes6 13 
Net income (loss) attributable to Key1,917 2,625 
Income (loss) from continuing operations attributable to Key common shareholders1,793 2,506 
Income (loss) from discontinued operations, net of taxes6 13 
Net income (loss) attributable to Key common shareholders1,799 2,519 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$1.94 $2.64 
Income (loss) from discontinued operations, net of taxes.01 .01 
Net income (loss) attributable to Key common shareholders (a)
1.94 2.65 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution1.92 2.62 
Income (loss) from discontinued operations, net of taxes — assuming dilution.01 .01 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
1.93 2.63 
Cash dividends paid.79 .75 
Performance ratios
From continuing operations:
Return on average total assets1.03 %1.46 %
Return on average common equity14.21 15.90 
Return on average tangible common equity (b)
18.34 19.37 
Net interest margin (TE)2.64 2.50 
Cash efficiency ratio (b)
60.0 59.9 
From consolidated operations:
Return on average total assets1.03 %1.46 %
Return on average common equity14.26 15.98 
Return on average tangible common equity (b)
18.40 19.47 
Net interest margin (TE)2.63 2.50 
Asset quality — from continuing operations
Net loan charge-offs$161 $184 
Net loan charge-offs to average total loans.14 %.18 %
Other data
Average full-time equivalent employees17,660 16,974 
Taxable-equivalent adjustment$27 $27 
(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)December 31, 2022, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 14

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

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

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

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

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
Three months endedTwelve months ended
12/31/20229/30/202212/31/202112/31/202212/31/2021
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)$13,454 $13,290 $17,423 
Less: Intangible assets (a)
2,844 2,856 2,820 
Preferred Stock (b)
2,446 2,446 1,856 
Tangible common equity (non-GAAP)$8,164 $7,988 $12,747 
Total assets (GAAP)$189,813 $190,051 $186,346 
Less: Intangible assets (a)
2,844 2,856 2,820 
Tangible assets (non-GAAP)$186,969 $187,195 $183,526 
Tangible common equity to tangible assets ratio (non-GAAP)4.37 %4.27 %6.95 %
Pre-provision net revenue
Net interest income (GAAP)$1,220 $1,196 $1,033 $4,527 $4,071 
Plus: Taxable-equivalent adjustment7 7 5 27 27 
Noninterest income671 683 909 2,718 3,194 
Less: Noninterest expense1,156 1,106 1,170 4,410 4,429 
Pre-provision net revenue from continuing operations (non-GAAP)$742 $780 $777 $2,862 $2,863 
Average tangible common equity
Average Key shareholders' equity (GAAP)$13,168 $14,614 $17,471 $14,730 $17,665 
Less: Intangible assets (average) (c)
2,851 2,863 2,814 2,839 2,829 
Preferred stock (average)2,500 2,148 1,900 2,114 1,900 
Average tangible common equity (non-GAAP)$7,817 $9,603 $12,757 $9,777 $12,936 
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)$356 $513 $601 $1,793 $2,506 
Average tangible common equity (non-GAAP)7,817 9,603 12,757 9,777 12,936 
Return on average tangible common equity from continuing operations (non-GAAP)18.07 %21.19 %18.69 %18.34 %19.37 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)$356 $515 $603 $1,799 $2,519 
Average tangible common equity (non-GAAP)7,817 9,603 12,757 9,777 12,936 
Return on average tangible common equity consolidated (non-GAAP)18.07 %21.28 %18.75 %18.40 %19.47 %






KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 15

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months endedTwelve months ended
12/31/20229/30/202212/31/202112/31/202212/31/2021
Cash efficiency ratio
Noninterest expense (GAAP)$1,156 $1,106 $1,170 $4,410 $4,429 
Less: Intangible asset amortization12 12 14 47 58 
Adjusted noninterest expense (non-GAAP)$1,144 $1,094 $1,156 $4,363 $4,371 
Net interest income (GAAP)$1,220 $1,196 $1,033 $4,527 $4,071 
Plus: Taxable-equivalent adjustment7 7 5 27 27 
Noninterest income671 683 909 2,718 3,194 
Total taxable-equivalent revenue (non-GAAP)$1,898 $1,886 $1,947 $7,272 $7,292 
Cash efficiency ratio (non-GAAP)60.3 %58.0 %59.4 %60.0 %59.9 %
(a)For the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, intangible assets exclude $2 million, $2 million, and $3 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, average intangible assets exclude $2 million, $2 million, and $3 million, respectively, of average purchased credit card receivables. For the twelve months ended December 31, 2022, and December 31, 2021, average intangible assets exclude $2 million, and $4 million, respectively, of average purchased credit card receivables.
GAAP = U.S. generally accepted accounting principles



KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 16

Consolidated Balance Sheets
(Dollars in millions)
12/31/20229/30/202212/31/2021
Assets
Loans$119,394 $116,191 $101,854 
Loans held for sale963 1,048 2,729 
Securities available for sale39,117 40,000 45,364 
Held-to-maturity securities8,710 8,163 7,539 
Trading account assets829 1,068 701 
Short-term investments2,432 4,896 11,010 
Other investments1,308 1,272 639 
Total earning assets172,753 172,638 169,836 
Allowance for loan and lease losses(1,337)(1,144)(1,061)
Cash and due from banks887 717 913 
Premises and equipment636 629 681 
Goodwill2,752 2,752 2,693 
Other intangible assets94 106 130 
Corporate-owned life insurance4,369 4,351 4,327 
Accrued income and other assets9,223 9,535 8,265 
Discontinued assets436 467 562 
Total assets$189,813 $190,051 $186,346 
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts$86,707 $84,168 $89,207 
Savings deposits7,681 7,860 7,503 
Certificates of deposit ($100,000 or more)1,708 1,269 1,705 
Other time deposits5,665 4,578 2,153 
Total interest-bearing deposits101,761 97,875 100,568 
Noninterest-bearing deposits40,834 46,980 52,004 
Total deposits142,595 144,855 152,572 
Federal funds purchased and securities sold under repurchase agreements 4,077 4,224 173 
Bank notes and other short-term borrowings5,386 4,576 588 
Accrued expense and other liabilities4,994 4,849 3,548 
Long-term debt19,307 18,257 12,042 
Total liabilities176,359 176,761 168,923 
Equity
Preferred stock2,500 2,500 1,900 
Common shares1,257 1,257 1,257 
Capital surplus6,286 6,257 6,278 
Retained earnings15,616 15,450 14,553 
Treasury stock, at cost(5,910)(5,917)(5,979)
Accumulated other comprehensive income (loss)(6,295)(6,257)(586)
Key shareholders’ equity13,454 13,290 17,423 
Total liabilities and equity$189,813 $190,051 $186,346 
Common shares outstanding (000)933,325 932,938 928,850 
    





KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 17

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Twelve months ended
12/31/20229/30/202212/31/202112/31/202212/31/2021
Interest income
Loans$1,347 $1,134 $873 $4,241 $3,532 
Loans held for sale20 14 15 56 50 
Securities available for sale195 196 148 752 546 
Held-to-maturity securities64 55 52 213 185 
Trading account assets10 8 5 31 19 
Short-term investments48 32 8 97 28 
Other investments11 5 2 22 7 
Total interest income1,695 1,444 1,103 5,412 4,367 
Interest expense
Deposits186 59 15 279 67 
Federal funds purchased and securities sold under repurchase agreements16 19 — 41 — 
Bank notes and other short-term borrowings54 24 2 90 8 
Long-term debt219 146 53 475 221 
Total interest expense475 248 70 885 296 
Net interest income1,220 1,196 1,033 4,527 4,071 
Provision for credit losses265 109 4 502 (418)
Net interest income after provision for credit losses955 1,087 1,029 4,025 4,489 
Noninterest income
Trust and investment services income126 127 135 526 530 
Investment banking and debt placement fees172 154 323 638 937 
Service charges on deposit accounts71 92 90 350 337 
Operating lease income and other leasing gains24 19 37 103 148 
Corporate services income89 96 76 372 288 
Cards and payments income85 91 86 341 415 
Corporate-owned life insurance income33 33 34 132 128 
Consumer mortgage income9 14 25 58 131 
Commercial mortgage servicing fees42 44 48 167 160 
Other income20 13 55 31 120 
Total noninterest income671 683 909 2,718 3,194 
Noninterest expense
Personnel674 655 674 2,566 2,561 
Net occupancy72 72 75 295 300 
Computer processing82 77 73 314 284 
Business services and professional fees60 47 70 212 227 
Equipment20 23 25 92 100 
Operating lease expense22 24 31 101 126 
Marketing31 30 37 123 126 
Other expense195 178 185 707 705 
Total noninterest expense1,156 1,106 1,170 4,410 4,429 
Income (loss) from continuing operations before income taxes470 664 768 2,333 3,254 
Income taxes76 124 141 422 642 
Income (loss) from continuing operations394 540 627 1,911 2,612 
Income (loss) from discontinued operations, net of taxes— 2 2 6 13 
Net income (loss)394 542 629 1,917 2,625 
Net income (loss) attributable to Key$394 $542 $629 $1,917 2,625 
Income (loss) from continuing operations attributable to Key common shareholders$356 $513 $601 $1,793 $2506 
Net income (loss) attributable to Key common shareholders356 515 603 1,799 2519 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.38 $.55 $.65 $1.94 $2.64 
Income (loss) from discontinued operations, net of taxes— — — 0.01 .01 
Net income (loss) attributable to Key common shareholders (a)
.38 .55 .65 1.94 2.65 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.38 $.55 $.64 $1.92 $2.62 
Income (loss) from discontinued operations, net of taxes— — — 0.01 .01 
Net income (loss) attributable to Key common shareholders (a)
.38 .55 .64 1.93 2.63 
Cash dividends declared per common share$.205 $.195 $.195 $.790 $.750 
Weighted-average common shares outstanding (000)924,974 924,594 922,970 924,363 947,065 
Effect of common share options and other stock awards8,750 7,861 11,758 8,696 10,349 
Weighted-average common shares and potential common shares outstanding (000) (b)
933,724 932,455 934,729 933,059 957,414 
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards, as applicable.


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 18

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Fourth Quarter 2022Third Quarter 2022Fourth Quarter 2021
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)
$58,212 $712 4.85 %$56,151 $578 4.09 %$49,510 $447 3.58 %
Real estate — commercial mortgage16,445 208 5.01 16,002 168 4.18 13,671 121 3.51 
Real estate — construction2,450 35 5.70 2,306 27 4.58 2,119 19 3.50 
Commercial lease financing3,825 26 2.71 3,892 25 2.58 3,953 26 2.57 
Total commercial loans80,932 981 4.81 78,351 798 4.05 69,253 613 3.51 
Real estate — residential mortgage21,128 164 3.11 20,256 152 3.00 15,017 102 2.72 
Home equity loans7,890 103 5.18 8,024 91 4.51 8,603 79 3.64 
Consumer direct loans6,713 75 4.45 6,766 72 4.25 5,509 60 4.33 
Credit cards993 31 12.61 969 28 11.63 941 24 10.13 
Consumer indirect loans46 — — 52 — — 74 — — 
Total consumer loans36,770 373 4.05 36,067 343 3.80 30,144 265 3.49 
Total loans117,702 1,354 4.57 114,418 1,141 3.97 99,397 878 3.50 
Loans held for sale1,421 20 5.63 1,102 14 5.22 2,202 15 2.83 
Securities available for sale (b), (e)
39,149 195 1.70 42,271 196 1.69 42,329 148 1.39 
Held-to-maturity securities (b)
8,278 64 3.07 7,933 55 2.79 7,991 52 2.61 
Trading account assets863 10 4.57 841 8 3.65 853 5 2.48 
Short-term investments3,159 48 6.02 3,043 32 4.13 15,505 8 .20 
Other investments (e)
1,294 11 3.15 1054 5 1.78 634 2 1.15 
Total earning assets171,866 1,702 3.79 170,662 1,451 3.30 168,911 1,108 2.60 
Allowance for loan and lease losses(1,145)(1,099)(1,081)
Accrued income and other assets18,421 18,629 17,133 
Discontinued assets447 478 574 
Total assets$189,589 $188,670 $185,537 
Liabilities
NOW and money market deposit accounts$85,798 $154 .71 %$83,050 $50 .24 %$88,110 $11 .05 %
Savings deposits7,795 1 .03 7,904 — .01 7,375 — .01 
Certificates of deposit ($100,000 or more)1,351 3 .93 1,347 2 .47 1,793 2 .53 
Other time deposits4,757 28 2.33 2,713 7 .97 2,233 2 .21 
Total interest-bearing deposits99,701 186 .74 95,014 59 .25 99,511 15 .06 
Federal funds purchased and securities sold under repurchase agreements1,752 16 3.52 3,562 19 2.10 230 — .02 
Bank notes and other short-term borrowings5,420 54 3.94 3,725 24 2.53 789 2 1.45 
Long-term debt (f), (g)
18,351 219 4.77 17,704 146 3.32 12,159 53 1.74 
Total interest-bearing liabilities125,224 475 1.50 120,005 248 .82 112,689 70 .25 
Noninterest-bearing deposits45,965 49,215 51,494 
Accrued expense and other liabilities4,785 4,358 3,309 
Discontinued liabilities (g)
447 478 574 
Total liabilities$176,421 $174,056 $168,066 
Equity
Key shareholders’ equity$13,168 $14,614 $17,471 
Noncontrolling interests— — — 
Total equity13,168 14,614 17,471 
Total liabilities and equity$189,589 $188,670 $185,537 
Interest rate spread (TE)2.28 %2.48 %2.36 %
Net interest income (TE) and net interest margin (TE)$1,227 2.73 %$1,203 2.74 %$1,038 2.44 %
TE adjustment (b)
775
Net interest income, GAAP basis$1,220 $1,196 $1,033 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $171 million, $162 million, and $141 million of assets from commercial credit cards for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively.
(e)Yield is calculated on the basis of amortized cost.
(f)Rate calculation excludes basis adjustments related to fair value hedges.
(g)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Twelve months ended December 31, 2022Twelve months ended December 31, 2021
AverageYield/AverageYield/
BalanceInterest (a)Rate (a)BalanceInterest (a)Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$54,970 $2,148 3.91 %$50,931 $1,795 3.52 %
Real estate — commercial mortgage15,572 6334.07 13,118 4723.60 
Real estate — construction2,229 99 4.44 2,113 77 3.61 
Commercial lease financing3,869 98 2.54 4,019 114 2.84 
Total commercial loans76,640 2,978 3.89 70,181 2,458 3.50 
Real estate — residential mortgage19,036 559 2.94 12,252 348 2.84 
Home equity loans8,115 347 4.28 8,967 336 3.74 
Consumer direct loans6,490 277 4.27 5,105 233 4.56 
Credit cards959 107 11.23 925 94 10.11 
Consumer indirect loans62 — — 2,839 90 3.19 
Total consumer loans34,662 1,290 3.72 30,088 1,101 3.66 
Total loans111,302 4,268 3.84 100,269 3,559 3.55 
Loans held for sale1,278 56 4.41 1,700 50 2.96 
Securities available for sale (b), (e)
42,325 752 1.62 35,765 546 1.53 
Held-to-maturity securities (b)
7,676 213 2.77 7,035 185 2.63 
Trading account assets850 31 3.61 820 19 2.35 
Short-term investments4,264 97 2.28 17,529 28 .16 
Other investments (e)
952 22 2.26 621 7 1.14 
Total earning assets168,647 5,439 3.15 163,739 4,394 2.69 
Allowance for loan and lease losses(1,101)(1,340)
Accrued income and other assets18,340 16,520 
Discontinued assets492 632 
Total assets$186,378 $179,551 
Liabilities
NOW and money market deposit accounts$85,673 $234 .27 %$84,736 $41 .05 %
Savings deposits7,798 1 .01 6,893 1 .02 
Certificates of deposit ($100,000 or more)1,455 8 .56 2,135 16 .72 
Other time deposits2,892 36 1.25 2,540 9 .37 
Total interest-bearing deposits97,818 279 .29 96,304 67 .07 
Federal funds purchased and securities sold under repurchase agreements2,107 41 1.93 239 — .02 
Bank notes and other short-term borrowings2,963 90 3.02 770 8 1.08 
Long-term debt (f), (g)
14,915 475 3.19 12,391 221 1.79 
Total interest-bearing liabilities117,803 885 .75 109,704 296 .27 
Noninterest-bearing deposits49,044 48,731 
Accrued expense and other liabilities4,309 2,819 
Discontinued liabilities (g)
492 632 
Total liabilities$171,648 $161,886 
Equity
Key shareholders’ equity$14,730 $17,665 
Noncontrolling interests— — 
Total equity14,730 17,665 
Total liabilities and equity$186,378 $179,551 
Interest rate spread (TE)2.40 %2.42 %
Net interest income (TE) and net interest margin (TE)$4,554 2.64 %$4,098 2.50 %
TE adjustment (b)
2727 
Net interest income, GAAP basis$4,527 $4,071 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the twelve months ended December 31, 2022, and December 31, 2021.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $157 million and $134 million of assets from commercial credit cards for the twelve months ended December 31, 2022, and December 31, 2021, respectively.
(e)Yield is calculated on the basis of amortized cost.
(f)Rate calculation excludes basis adjustments related to fair value hedges.
(g)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 20

Noninterest Expense
(Dollars in millions)
Three months endedTwelve months ended
12/31/20229/30/202212/31/202112/31/202212/31/2021
Personnel (a)
$674 $655 $674 $2,566 $2,561 
Net occupancy72 72 75 295 300 
Computer processing82 77 73 314 284 
Business services and professional fees60 47 70 212 227 
Equipment20 23 25 92 100 
Operating lease expense22 24 31 101 126 
Marketing31 30 37 123 126 
Other expense195 178 185 707 705 
Total noninterest expense$1,156 $1,106 $1,170 $4,410 $4,429 
Average full-time equivalent employees (b)
18,210 17,907 16,797 17,660 16,974 
(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 endedTwelve months ended
12/31/20229/30/202212/31/202112/31/202212/31/2021
Salaries and contract labor$407 $388 $342 $1,500 $1,311 
Incentive and stock-based compensation171 176 243 693 861 
Employee benefits94 89 89 363 388 
Severance2 2 — 10 1 
Total personnel expense$674 $655 $674 $2,566 $2,561 



KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 21

Loan Composition
(Dollars in millions)
Change 12/31/2022 vs.
12/31/20229/30/202212/31/20219/30/202212/31/2021
Commercial and industrial (a)
$59,647 $56,971 $50,525 4.7 %18.1 %
Commercial real estate:
Commercial mortgage16,352 16,400 14,244 (.3)14.8 
Construction2,530 2,349 1,996 7.7 26.8 
Total commercial real estate loans18,882 18,749 16,240 .7 16.3 
Commercial lease financing (b)
3,936 3,877 4,071 1.5 (3.3)
Total commercial loans82,465 79,597 70,836 3.6 16.4 
Residential — prime loans:
Real estate — residential mortgage21,401 20,838 15,756 2.7 35.8 
Home equity loans7,951 7,926 8,467 .3 (6.1)
Total residential — prime loans29,352 28,764 24,223 2.0 21.2 
Consumer direct loans6,508 6,803 5,753 (4.3)13.1 
Credit cards1,026 977 972 5.0 5.6 
Consumer indirect loans43 50 70 (14.0)(38.6)
Total consumer loans36,929 36,594 31,018 .9 19.1 
Total loans (c), (d)
$119,394 $116,191 $101,854 2.8 %17.2 %
(a)Loan balances include $172 million, $166 million, and $139 million of commercial credit card balances at December 31, 2022, September 30, 2022, and December 31, 2021, respectively.
(b)Commercial lease financing includes receivables held as collateral for a secured borrowing of $8 million, $10 million, and $16 million at December 31, 2022, September 30, 2022, and December 31, 2021, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $434 million at December 31, 2022, $467 million at September 30, 2022, and $567 million at December 31, 2021, related to the discontinued operations of the education lending business.
(d)Accrued interest of $417 million, $274 million, and $198 million at December 31, 2022, September 30, 2022, and December 31, 2021, 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 12/31/2022 vs.
12/31/20229/30/202212/31/20219/30/202212/31/2021
Commercial and industrial$477 $292 $1,438 63.4 %(66.8)%
Real estate — commercial mortgage427 693 1,010 (38.4)(57.7)
Commercial lease financing35 2 — N/MN/M
Real estate — residential mortgage24 61 281 (60.7)(91.5)
Total loans held for sale$963 $1,048 $2,729 (8.1)%(64.7)%
N/M = Not Meaningful
Summary of Changes in Loans Held for Sale
(Dollars in millions)
4Q223Q222Q221Q224Q21
Balance at beginning of period$1,048 $1,306 $1,170 $2,729 $1,805 
New originations3,158 2,157 2,837 2,724 5,704 
Transfers from (to) held to maturity, net(48)— (57)— (1)
Loan sales(3,124)(2,446)(2,506)(4,269)(4,742)
Loan draws (payments), net(71)26 (133)(12)(12)
Valuation and other adjustments— 5 (5)(2)(25)
Balance at end of period$963 $1,048 $1,306 $1,170 $2,729 
    




KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 22

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months endedTwelve months ended
12/31/20229/30/202212/31/202112/31/202212/31/2021
Average loans outstanding$117,702 $114,418 $99,397 $111,302 $100,269 
Allowance for loan and lease losses at the beginning of the period1,144 1,099 1,084 1,061 1,626 
Loans charged off:
Commercial and industrial35 49 33 153 174 
Real estate — commercial mortgage13 3 1 23 40 
Real estate — construction— — — — — 
Total commercial real estate loans13 3 1 23 40 
Commercial lease financing— — 1 2 6 
Total commercial loans48 52 35 178 220 
Real estate — residential mortgage— 1 (1)(2)(2)
Home equity loans— — 2 1 9 
Consumer direct loans9 8 7 34 29 
Credit cards8 7 6 30 27 
Consumer indirect loans2 — 1 4 39 
Total consumer loans19 16 15 67 102 
Total loans charged off67 68 50 245 322 
Recoveries:
Commercial and industrial18 13 23 50 83 
Real estate — commercial mortgage1 2 1 5 9 
Real estate — construction— — — 1 — 
Total commercial real estate loans1 2 1 6 9 
Commercial lease financing2 1 — 4 7 
Total commercial loans21 16 24 60 99 
Real estate — residential mortgage3 1 1 5 3 
Home equity loans— 1 1 3 5 
Consumer direct loans1 4 2 8 8 
Credit cards1 2 2 6 8 
Consumer indirect loans— 1 1 2 15 
Total consumer loans5 9 7 24 39 
Total recoveries26 25 31 84 138 
Net loan charge-offs(41)(43)(19)(161)(184)
Provision (credit) for loan and lease losses234 88 (4)437 (381)
Allowance for loan and lease losses at end of period$1,337 $1,144 $1,061 $1,337 $1,061 
Liability for credit losses on lending-related commitments at beginning of period194 173 152 160 197 
Provision (credit) for losses on lending-related commitments31 21 8 65 (37)
Liability for credit losses on lending-related commitments at end of period (a)
$225 $194 $160 $225 $160 
Total allowance for credit losses at end of period$1,562 $1,338 $1,221 $1,562 $1,221 
Net loan charge-offs to average total loans.14 %.15 %.08 %.14 %.18 %
Allowance for loan and lease losses to period-end loans1.12 .98 1.04 1.12 1.04 
Allowance for credit losses to period-end loans1.31 1.15 1.20 1.31 1.20 
Allowance for loan and lease losses to nonperforming loans345 293 234 345 234 
Allowance for credit losses to nonperforming loans404 343 269 404 269 
Discontinued operations — education lending business:
Loans charged off$2 $1 $1 $6 $4 
Recoveries— 1 — 2 2 
Net loan charge-offs$(2)$— $(1)$(4)$(2)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 23

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
4Q223Q222Q221Q224Q21
Net loan charge-offs$41 $43 $44 $33 $19 
Net loan charge-offs to average total loans.14 %.15 %.16 %.13 %.08 %
Allowance for loan and lease losses$1,337 $1,144 $1,099 $1,105 $1,061 
Allowance for credit losses (a)
1,562 1,338 1,272 1,271 1,221 
Allowance for loan and lease losses to period-end loans1.12 %.98 %.98 %1.04 %1.04 %
Allowance for credit losses to period-end loans1.31 1.15 1.13 1.19 1.20 
Allowance for loan and lease losses to nonperforming loans345 293 256 252 234 
Allowance for credit losses to nonperforming loans404 343 297 290 269 
Nonperforming loans at period end$387 $390 $429 $439 $454 
Nonperforming assets at period end420 419 463 467 489 
Nonperforming loans to period-end portfolio loans.32 %.34 %.38 %.41 %.45 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.35 .36 .41 .44 .48 
        
(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)
12/31/20229/30/20226/30/20223/31/202212/31/2021
Commercial and industrial$174 $169 $197 $186 $191 
Real estate — commercial mortgage21 34 35 40 44 
Real estate — construction— — — — — 
Total commercial real estate loans21 34 35 40 44 
Commercial lease financing1 2 2 3 4 
Total commercial loans196 205 234 229 239 
Real estate — residential mortgage77 66 67 73 72 
Home equity loans107 112 120 129 135 
Consumer direct loans3 3 3 4 4 
Credit cards3 3 3 3 3 
Consumer indirect loans1 1 2 1 1 
Total consumer loans191 185 195 210 215 
Total nonperforming loans387 390 429 439 454 
OREO13 12 9 8 8 
Nonperforming loans held for sale20 17 25 20 24 
Other nonperforming assets— — — — 3 
Total nonperforming assets$420 $419 $463 $467 $489 
Accruing loans past due 90 days or more60 47 41 55 68 
Accruing loans past due 30 through 89 days180 187 137 122 165 
Restructured loans — accruing and nonaccruing (a)
236 254 216 219 220 
Restructured loans included in nonperforming loans (a)
118 134 94 98 99 
Nonperforming assets from discontinued operations — education lending business 3 3 3 4 4 
Nonperforming loans to period-end portfolio loans.32 %.34 %.38 %.41 %.45 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.35 .36 .41 .44 .48 
(a)Restructured loans (i.e., troubled debt restructuring) are those for which Key, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.
Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
4Q223Q222Q221Q224Q21
Balance at beginning of period$390 $429 $439 $454 $554 
Loans placed on nonaccrual status113 80 118 87 116 
Charge-offs(67)(68)(59)(50)(51)
Loans sold(4)(3)(8)— (38)
Payments(22)(29)(35)(27)(68)
Transfers to OREO(1)(1)(2)(1)(1)
Loans returned to accrual status(22)(18)(24)(24)(58)
Balance at end of period$387 $390 $429 $439 $454 


KeyCorp Reports Fourth Quarter 2022 Profit     
January 19, 2023
Page 24

Line of Business Results
(Dollars in millions)
Change 4Q22 vs.
4Q223Q222Q221Q224Q213Q224Q21
Consumer Bank
Summary of operations
Total revenue (TE)$900 $891 $824 $799 $839 1.0 %7.3 %
Provision for credit losses105 37 8 43 14 183.8 650.0 
Noninterest expense699 667 676 663 613 4.8 14.0 
Net income (loss) attributable to Key73 142 107 71 161 (48.6)(54.7)
Average loans and leases43,149 42,568 40,827 38,654 37,841 1.4 14.0 
Average deposits87,243 90,044 91,273 91,516 90,385 (3.1)(3.5)
Net loan charge-offs21 17 23 22 22 23.5 (4.5)
Net loan charge-offs to average total loans.19 %.16 %.23 %.23 %.23 %18.8 (17.4)
Nonperforming assets at period end$202 $195 $203 $217 $222 3.6 (9.0)
Return on average allocated equity8.66 %16.20 %11.66 %8.02 %18.05 %(46.5)(52.0)
Commercial Bank
Summary of operations
Total revenue (TE)$928 $889 $842 $808 $1027 4.4 %(9.6)%
Provision for credit losses165 74 37 41 (12)123.0 N/M
Noninterest expense460 450 410 413 501 2.2 (8.2)
Net income (loss) attributable to Key250 295 317 284 448 (15.3)(44.2)
Average loans and leases74,100 71,464 67,825 64,684 61,078 3.7 21.3 
Average loans held for sale1,377 1,036 1,016 1,323 1,962 32.9 (29.8)
Average deposits54,385 52,272 54,846 57,241 59,423 4.0 (8.5)
Net loan charge-offs25 27 21 11 — (7.4)N/M
Net loan charge-offs to average total loans.13 %.15 %.12 %.07 %— %(13.3)N/M
Nonperforming assets at period end$218 $224 $260 $250 $267 (2.7)(18.4)
Return on average allocated equity10.40 %12.63 %14.26 %13.26 %20.94 %(17.7)(50.3)
TE = Taxable Equivalent
KeyCorp Fourth Quarter 2022 Earnings Review January 19, 2023 Don Kimble Vice Chairman and Chief Financial Officer Chris Gorman Chairman and Chief Executive Officer Clark Khayat Executive Vice President and Chief Strategy Officer

 
Forward-looking Statements and Additional Information 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, 2021, and in other 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. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. This presentation also includes certain non-GAAP financial measures related to “tangible common equity,” “cash efficiency ratio,” and “pre-provision net revenue.” Although Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of results under GAAP. For more information on these calculations and to view the reconciliations to the most comparable GAAP measures, please refer to the appendix of this presentation, or page 46 of our Form 10-Q dated September 30, 2022. GAAP: Generally Accepted Accounting Principles 2

 
2022 Results and Outlook 3 ✓ Grew and expanded client relationships ▪ Focused on targeted client segments ▪ Supported clients; record capital raised ✓ Positioned balance sheet for rate environment ▪ Upside to higher rates: short duration of swaps and Treasuries ✓ Invested in targeted growth opportunities ▪ Laurel Road expansion, GradFin acquisition, and new Embedded Banking capabilities ✓ Maintained strong credit quality ▪ Historically low NCO levels 2022 Results (1) Non-GAAP measure: see appendix for reconciliation 18% Return on average tangible common equity(1) Positive Operating Leverage vs. FY2021 Outlook and Priorities 14 bps FY22 NCOs to average loans ✓ Executing on our differentiated business model with targeted growth opportunities ▪ Focus on targeted growth opportunities ▪ Supporting clients: on and off-balance sheet solutions ✓ Positioning balance sheet for rate environment ▪ Positioned for NII growth in 2023 and 2024 ✓ Focusing on expenses in order to create capacity for targeted investments ▪ Investing in teammates, digital, and niche businesses ✓ Maintaining strong credit quality ▪ Positioned to outperform through the cycle

 
Financial Review

 
EOP = End of Period; (1) Non-GAAP measure: see appendix for reconciliation; (2) 12/31/2022 ratios are estimated and reflect Key's election to adopt the CECL optional transition provision Financial Highlights 5 EPS – assuming dilution $ .38 $ .55 $ .64 (30.9) % (40.6) % Cash efficiency ratio(1) 60.3 % 58.0 % 59.4 % 230 bps 90 bps Return on average tangible common equity(1) 18.1 21.2 18.7 (310) (60) Return on average total assets .83 1.14 1.34 (31) (51) Net interest margin 2.73 2.74 2.44 (1) 29 Common Equity Tier 1(2) 9.1 % 9.1 % 9.5 % -- bps (40) bps Tier 1 risk-based capital(2) 10.6 10.7 10.8 (10) (20) Tangible common equity to tangible assets(1) 4.4 4.3 6.9 10 (250) NCOs to average loans .14 % .15 % .08 % (1) bps 6 bps NPLs to EOP portfolio loans .32 .34 .45 (2) (13) Allowance for credit losses to EOP loans 1.31 1.15 1.20 16 11 Profitability Capital Asset Quality 4Q22 3Q22 4Q21 LQ Δ Y/Y Δ Continuing operations, unless otherwise noted

 
Total Average Loans 4Q21 3Q22 4Q22 Highlights Average Loan Detail 6 29% 32% 10.00% 20.00% 30.00% 40.00% $60 $70 $80 $90 $100 $110 $120 4Q21 1Q22 2Q22 3Q22 4Q22 C&I line utilization Total average loans PPP $ in billions 4Q21 3Q22 4Q22 ▪ Average loans up 18% from 4Q21 − Growth in C&I and commercial mortgage real estate loans, partially offset by a decline in PPP balances − Growth in consumer mortgage and Laurel Road loans, partially offset by a decline in home equity loans ▪ Average loans up 3% from 3Q22 − Growth in C&I and commercial mortgage real estate loans − Consumer loans increased reflecting growth in consumer mortgage ($990MM originations) Loans Commercial Loans Consumer Loans $ in billions $2.3 $99.4 $117.7 $69 $78 $81 $30 $36 $37 vs. Prior Year vs. Prior Quarter PPP: $2.3 PPP

 
(1) Based on average balances; (2) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits; (3) Cumulative beta indexed to 4Q21 Deposits 7 $ in billions vs. Prior Quarter ▪ Average deposit balances up 1% from 3Q22 − Increase reflects higher commercial deposit balances for tax payments next quarter and a shift in deposit mix from noninterest-bearing to interest-bearing deposit balances − Partly offset by a decline in retail balances CDs and other time deposits Savings Noninterest-bearing NOW and MMDA ▪ Average deposits down 4% from 4Q21 − Declines in commercial non-operating deposit account balances and retail deposit balances ▪ Strong and stable deposit base − 32% noninterest-bearing(1) − ~60% stable retail and low-cost escrow − 85% loan to deposit ratio(2) ▪ Cumulative total interest-bearing deposit beta: 19%(3) $ in billions 4Q22 Average Deposit Mix Average Deposits Highlights $85.8 $46.0 $6.1$7.8 vs. Prior Year $0 $40 $80 $120 $160 4Q21 1Q22 2Q22 3Q22 4Q22 0% 19% Cumulative total interest- bearing deposit beta(3) Consumer Commercial $151.0 $145.7

 
Net Interest Income and Margin $ in millions, continuing operations vs. Prior Quarter TE = Taxable equivalent 2.44% 2.73% 2.0% 2.5% 3.0% 3.5% 4.0% $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 4Q21 1Q22 2Q22 3Q22 4Q22 Net Interest Income (TE) Net Interest Margin (TE)x ▪ Net interest income up $189MM (+18%) and the net interest margin increased 29 basis points from 4Q21 − Reflects benefits from higher interest rates and higher earning asset balances − Partially offset by higher interest-bearing deposit costs and lower loan fees from PPP ▪ Net interest income up $24MM (+2%) and the net interest margin decreased 1 basis point from 3Q22 − Reflects loan growth and higher interest rates − Partially offset by higher interest-bearing deposit costs and a change in the funding mix Net Interest Income & Net Interest Margin Trend (TE) Highlights 8 vs. Prior Year $1,038 $1,227

 
Noninterest Income 9 ▪ Noninterest income down $238MM (-26%) from 4Q21 − Lower investment banking and debt placement fees (-$151MM) reflecting a slowdown in capital markets activity − Other income declined (-$35MM) due to market related gains in the year-ago period − Lower service charges on deposit accounts (-$19MM) driven by new client friendly fee structure for NSF/OD fees and lower account analysis fees due to the interest rate environment − Lower consumer mortgage income (-$16MM) driven by lower gain on sale margins and lower saleable volume − Partly offsetting the decline was corporate services income (+$13MM), due to higher derivatives income vs. Prior Quarter ▪ Noninterest income relatively stable (-$12MM) from 3Q22 − Lower service charges on deposit accounts (-$21MM) reflecting new client friendly fee structure for NSF/OD fees − Lower corporate services income (-$7MM) reflecting a valuation adjustment benefit in the prior quarter − Partially offset by higher investment banking and debt placement fees (+$18MM) reflecting end of year seasonality vs. Prior Year $ in millions up / (down) 4Q22 vs. 4Q21 vs. 3Q22 Trust and investment services income $ 126 $ (9) $ (1) Investment banking and debt placement fees 172 (151) 18 Service charges on deposit accounts 71 (19) (21) Operating lease income and other leasing gains 24 (13) 5 Corporate services income 89 13 (7) Cards and payments income 85 (1) (6) Corporate-owned life insurance 33 (1) - Consumer mortgage income 9 (16) (5) Commercial mortgage servicing fees 42 (6) (2) Other income 20 (35) 7 Total noninterest income $ 671 $ (238) $ (12) Noninterest Income Highlights

 
Noninterest Expense 10 vs. Prior Quarter vs. Prior Year ▪ Noninterest expense down $14MM (-1%) from 4Q21 − Lower nonpersonnel expense (-$14MM) driven by a decline in business services and professional fees and a decline in operating lease expense − Personnel expense remained flat, due to higher salaries and employee benefits, offset by lower compensation driven by lower revenue generation in our variable expense businesses ▪ Noninterest expense up $50MM (+5%) from 3Q22 − Higher nonpersonnel expense (+$31MM) related to an increase in other expense, reflecting a pension settlement charge as well as higher professional fees − Personnel expense increased (+$19MM) reflecting lower deferred costs from slower loan originations and higher salaries Noninterest Expense Highlights $ in millions favorable / (unfavorable) 4Q22 vs. 4Q21 vs. 3Q22 Personnel $ 674 $ - $ (19) Net occupancy 72 3 - Computer processing 82 (9) (5) Business services and professional fees 60 10 (13) Equipment 20 5 3 Operating lease expense 22 9 2 Marketing 31 6 (1) Other expense 195 (10) (17) Total noninterest expense $ 1,156 $ 14 $ (50)

 
NCO = Net charge-off NPL = Nonperforming Loans Credit Quality 11 $454 $387 .45% .32% .00% .40% .80% 1.20% 1.60% 2.00% $200 $400 $600 4Q21 1Q22 2Q22 3Q22 4Q22 NPLs NPLs to period-end loans $1,221 $1,562 269% 404% 100% 200% 300% 400% 500% $0 $500 $1,000 $1,500 $2,000 4Q21 1Q22 2Q22 3Q22 4Q22 Allowance for credit losses to NPLsAllowance for credit losses 4Q22 allowance for credit losses to period-end loans of 1.31% Nonperforming Loans Allowance for Credit Losses (ACL) $ in millions $ in millions $19 $41 $4 $265 .08% .14% .00% .06% .12% .18% $0 $50 $100 $150 $200 $250 $300 4Q21 1Q22 2Q22 3Q22 4Q22 NCOs Provision for credit losses NCOs to avg. loans Net Charge-offs & Provision for Credit Losses $ in millions

 
(1) 12/31/22 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision Capital 12 ▪ Strong capital position: CET1 ratio 9.1%(1) at 12/31/2022 − Within targeted range of 9.0% - 9.5% ▪ Increased dividend 5% to $.205 per common share in 4Q22 ▪ Last quarter, the Board of Directors approved extension of existing $790 million share repurchase authorization through 3Q23 9.5% 9.1% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 4Q21 1Q22 2Q22 3Q22 4Q22 Common Equity Tier 1(1) Highlights Capital Priorities Organic Growth Dividends Share Repurchases 1 2 3

 
2023 Outlook FY 2023 (vs. FY 2022) 13 Average Balance Sheet • Loans: up 6% - 9% • Deposits: flat to down 2% Net Interest Income (TE) • Net interest income: up 6% - 9% Noninterest Income • Noninterest income: down 1% - 3% Noninterest Expense • Noninterest expense: relatively stable Credit Quality • Net charge-offs to average loans: 25 – 30 bps Taxes • GAAP tax rate: 19% - 20% Long-term Targets Positive operating leverage Moderate risk profile: Net charge-offs to avg. loans targeted range of 40-60 bps ROTCE: 16% - 19% Cash efficiency ratio: 54% - 56% Note: Guidance range: relatively stable: +/- 2%

 
Appendix

 
Commercial Loan Portfolio Detail Portfolio Highlights ▪ Target specific client segments focused in seven industry verticals ▪ Experienced bankers with deep industry expertise ▪ Focused on high quality clients ▪ Credit quality metrics remain strong and stable − Disciplined, consistent underwriting − Active surveillance with ongoing portfolio reviews − Dynamic assessment of ratings migration ~80% commercial bank credit exposure from relationship(1) clients Targeted Industry Verticals Consumer Energy Industrial TechnologyHealthcare (1) Relationship client is defined as having two or more of the following: credit, capital markets, or payments ▪ Solid middle market portfolio ▪ Aligning bankers to areas of market opportunity and growth - investing in strategic hires with industry vertical expertise ▪ High-quality borrowers ▪ Small, stable leveraged portfolio: ~2.5% of total loans ▪ Strengthened credit risk profile with strategic exits and growth in targeted client segments to focus on relationships ▪ Significantly scaled back construction portfolio from pre-global financial crisis (42% in 2008  13% in 2022) ▪ Focused on relationships with owners and operators ▪ Strategic focus in multifamily, primarily affordable housing Real Estate Public Sector Total Commercial Loans Commercial & Industrial (C&I) Commercial Real Estate (CRE) 15 $ in billions 12/31/22 % of total loans Commercial and industrial $ 59,647 50% Commercial real estate 18,882 16 Commercial lease financing 3,936 3 Total Commercial $ 82,465 69% ~50% of C&I portfolio is investment grade

 
Consumer Loan Portfolio Detail Portfolio Highlights ▪ Prime & super prime client base focused on relationships ▪ Continuing to invest in digital to drive future growth 772 weighted average FICO at origination $646 $820 $445 $194 $118 4Q21 1Q22 2Q22 3Q22 4Q22 Origination Volume$ in millions $ in billions $3.4 $2.6 $3.2 $1.9 $1.0 4Q21 1Q22 2Q22 3Q22 4Q22 Origination Volume Note: Table may not foot due to rounding (1) Indirect auto portfolio was sold on 9/10/21 ▪ High-quality client base: primarily healthcare professionals ▪ Expands Key’s digital reach and consumer franchise nationally through targeted scale (doctor/dentist clients in all 50 states) ▪ Launched Laurel Road for Doctors in 1Q21 and expanded platform to nurses in 2Q22 ▪ Production levels continue to be impacted by rising interest rates and the federal student loan payment holiday ▪ Focused on prime/super-prime clients (weighted average FICO at origination: 761) ▪ Investing in digital capabilities to improve efficiency and enhance client experience Total Consumer Loans Laurel Road Consumer Mortgage 16 $ in billions 12/31/22 % of total loans WA FICO at origination Consumer mortgage $ 21,401 18% 761 Home equity 7,951 7 807 Consumer direct 6,508 5 746 Credit card 1,026 1 792 Consumer indirect(1) 43 N/A N/A Total Consumer $ 36,929 31% 772

 
17 $ in billions 1.58% 1.91% 1.00% 1.50% 2.00% 2.50% 3.00% $0.0 $20.0 $40.0 $60.0 4Q21 1Q22 2Q22 3Q22 4Q22 Average AFS securities Average yield(1)Average HTM securities Projected Cash Flows & Maturities (under implied forward rates) Floating Rate (including hedges) ▪ Portfolio used for funding and liquidity management ‒ Portfolio composed primarily of fixed-rate GNMA and GSE-backed MBS and CMOs ‒ Portfolio yield excluding short-term Treasury/Agency: 2.21% ▪ Portfolio focused on protecting capital and minimizing market volatility − ~95% of 4Q22 reinvestment ($0.9Bn) designated as held-to-maturity ▪ New investment opportunities at higher yields than runoff ‒ 4Q22 purchases ~5.2% compared to ~2.0% runoff ▪ Portfolio constructed to enhance current returns on excess liquidity, while preserving the optionality to capitalize on higher interest rates in the future ‒ Recent Agency MBS/CMO investments constructed to limit extension risk and provide continued cash flows as rates rise (~$1.0Bn per quarter in the near-term) ‒ $9Bn short-term Treasury portfolio- maturities beginning in the second half of 2023 through 2024 ▪ Available for sale portfolio duration of 5.6 years at 12/31/2022 (duration including securities hedges) Average Total Investment Securities $ in billions Existing Portfolio Repricing Characteristics Highlights (1) Yield is calculated on the basis of amortized cost $47.4 $50.3 Investment Portfolio $7.0 $13.9 $5.8 $0.0 $5.0 $10.0 $15.0 2023 2024 2025

 
Balanced approach to managing interest rate risk provides declining rate protection while maintaining significant upside to higher rates (1) Loan statistics based on 12/31/2022 ending balances; (2) Deposit statistics based on 12/31/2022 average balances; (3) Non-zero loan floors Loan Composition(1) Deposit Mix(2) ▪ Given macroeconomic and geopolitical uncertainty, the position exhibits a modest exposure to rate changes − Sensitive to the level of expected tightening while preparing for potential economic weakness − Mindful towards increased levels of current and expected volatility ▪ Opportunistically reinvesting to manage interest rate risk and liquidity ▪ Total hedge portfolio at 12/31/2022: ▪ Attractive business model with relationship-oriented lending franchise − Distinctive commercial capabilities drive C&I growth and ~63% floating-rate loan mix − Laurel Road and consumer mortgage enhance fixed rate loan volumes with attractive client profile ▪ Strong, low-cost deposit base − ~60% stable retail and low-cost escrow − >85% from markets where Key maintains top-5 deposit or branch share ▪ $47.4Bn investment portfolio structured to provide greater yield stability − Higher allocation of bullet-like securities and mortgage collateral with lower prepayment risks and limited exposure to unamortized premiums 4Q22 Balance Sheet Highlights Actively Managing Interest Rate Risk Position 18 Asset & Liability Management Positioning $1.3Bn $.4Bn 4 Q 2 2 A/LM Swaps Debt Swaps $28.5Bn $11Bn $8Bn Floors(3)A/LM Fwd Securities Hedges ▪ Continually evaluating opportunities to protect and enhance NII through new hedging and/or modifying existing positions Noninterest- bearing 32% Interest- bearing 68% Prime 8% 1M LIBOR 13% 3M LIBOR 3% Other 7% SOFR 32% Fixed 37%

 
19 Net Interest Income Opportunities $ in billions $9.0 $9.0 $9.0 $8.6 $8.4 $7.5 $6.3 $3.9 $0.9 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Expected Balance - Short-term Treasuries $ in billions Future Net Interest Income Drivers ▪ Organic Growth − Focus on relationship banking expected to drive continued loan growth and relatively stable deposits ▪ ALM Management − Positioned to grow net interest income over the next two years, as swaps and short-term Treasuries mature ▪ Investment Portfolio − Positioned to provide liquidity and enhance returns while benefiting from higher reinvestment rates ▪ Deposit Beta and Funding Costs − Marginal funding costs are increasing with rising market interest rates, and are expected to weigh on net interest income − Deposit costs are expected to increase as we remain competitive with the industry ALM Interest Rate Swap Maturities $1.2 $1.7 $1.7 $0.6 $2.3 $2.4 $1.3 $1.9 $1.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Total Cash Flow Hedges WA yield on portfolio 0.43% WA Received fixed rate (4Q22-4Q24): 0.88%

 
Credit Quality Trends (1) Loan and lease outstandings; (2) From continuing operations 20 Delinquencies to Period-end Total Loans Criticized Outstandings(1) to Period-end Total Loans Continuing Operations Continuing Operations .16% .07% .00% .10% .20% .30% .40% .50% 4Q21 1Q22 2Q22 3Q22 4Q22 .15% .05% 2.6% 2.5% .0% 2.0% 4.0% 6.0% 4Q21 1Q22 2Q22 3Q22 4Q22 30 – 89 days delinquent 90+ days delinquent Metric(2) 4Q22 3Q22 2Q22 1Q22 4Q21 Delinquencies to EOP total loans: 30-89 days .15 % .16 % .12 % .11 % .16 % Delinquencies to EOP total loans: 90+ days .05 .04 .04 .05 .07 NPLs to EOP portfolio loans .32 .34 .38 .41 .45 NPAs to EOP portfolio loans + OREO + Other NPAs .35 .36 .41 .44 .48 Allowance for credit losses to period-end loans 1.31 1.15 1.13 1.19 1.20 Allowance for credit losses to NPLs 404 343 297 290 269

 
Credit Quality by Portfolio 21 Period-end loans Average loans Net loan charge-offs Net loan charge- offs(3) / average loans (%) Nonperforming loans Ending allowance Allowance / period-end loans (%) Allowance / NPLs (%) 12/31/22 4Q22 4Q22 4Q22 12/31/22 12/31/22 12/31/22 12/31/22 Commercial and industrial(1) $ 59,647 $ 58,212 $ 17 .12% $ 174 $ 601 1.01% 345.40% Commercial real estate: Commercial Mortgage 16,352 16,445 12 .29 21 203 1.24 966.67 Construction 2,530 2,450 - - - 28 1.11 - Commercial lease financing(2) 3,936 3,825 (2) (.21) 1 32 .81 N/M Real estate – residential mortgage 21,401 21,128 (3) (.06) 77 196 .92 254.55 Home equity 7,951 7,890 - - 107 98 1.23 91.59 Consumer direct loans 6,508 6,713 8 .47 3 111 1.71 N/M Credit cards 1,026 993 7 2.80 3 66 6.43 N/M Consumer indirect loans 43 46 2 17.25 1 2 4.65 200.00 Continuing total $ 119,394 $ 117,702 $ 41 .14% $ 387 $ 1,337 1.12% 345.48% Discontinued operations 434 447 2 1.77 3 21 4.84 700.00 Consolidated total $ 119,828 $ 118,149 $ 43 .14% $ 390 $ 1,358 1.13% 348.21% $ in millions (1) Loan balance includes $172 million of commercial credit card balances at December 31, 2022; (2) Commercial lease financing includes receivables held as collateral for a secured borrowing of $8 million at December 31, 2022. Principal reductions are based on the cash payments received from these related receivables; (3) Net loan charge-off amounts are annualized in calculation Credit Quality

 
22 $ in millions (1) For the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, intangible assets exclude $2 million, $2 million, and $3 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus; (3) For the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, average intangible assets exclude $2 million, $2 million, and $3 million, respectively, of average purchased credit card receivables. For the twelve months ended December 31, 2022, and December 31, 2021, average intangible assets exclude $2 million, and $4 million, respectively, of average purchased credit card receivables. GAAP to Non-GAAP Reconciliation 12/31/2022 9/30/2022 12/31/2021 12/31/2022 12/31/2021 Tangible common equity to tangible assets at period end Key shareholders' equity (GAAP) 13,454$ 13,290$ 17,423$ Less: Intangible assets (1) 2,844 2,856 2,820 Preferred Stock (2) 2,446 2,446 1,856 Tangible common equity (non-GAAP) 8,164$ 7,988$ 12,747$ Total assets (GAAP) 189,813$ 190,051$ 186,346$ Less: Intangible assets (1) 2,844 2,856 2,820 Tangible assets (non-GAAP) 186,969$ 187,195$ 183,526$ Tangible common equity to tangible assets ratio (non-GAAP) 4.37% 4.27% 6.95% Pre-provision net revenue Net interest income (GAAP) 1,220$ 1,196$ 1,033$ 4,527$ 4,071$ Plus: Taxable-equivalent adjustment 7 7 5 27 27 Noninterest income 671 683 909 2,718 3,194 Less: Noninterest expense 1,156 1,106 1,170 4,410 4,429 Pre-provision net revenue from continuing operations (non-GAAP) 742$ 780$ 777$ 2,862$ 2,863$ Average tangible common equity Average Key shareholders' equity (GAAP) 13,168$ 14,614$ 17,471$ 14,730$ 17,665$ Less: Intangible assets (average) (3) 2,851 2,863 2,814 2,839 2,829 Preferred Stock (average) 2,500 2,148 1,900 2,114 1,900 Average tangible common equity (non-GAAP) 7,817$ 9,603$ 12,757$ 9,777$ 12,936$ Twelve Months EndedThree months ended

 
23 $ in millions GAAP to Non-GAAP Reconciliation 12/31/2022 9/30/2022 12/31/2021 12/31/2022 12/31/2021 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) 356$ 513$ 601$ 1,793$ 2,506$ Average tangible common equity (non-GAAP) 7,817 9,603 12,757 9,777 12,93621.19 21.19 18.55 Return on average tangible common equity from continuing operations (non-GAAP) 18.07% 21.19% 18.69% 18.34% 19.37%618.00 18.61% Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) 356$ 515$ 603$ 1,799$ 2,519$ Average tangible common equity (non-GAAP) 7,817 9,603 12,757 9,777 12,936 Return on average tangible common equity consolidation (non-GAAP) 18.07% 21.28% 18.75% 18.40% 19.47% Cash efficiency ratio Noninterest expense (GAAP) 1,156$ 1,106$ 1,170$ 4,410$ 4,429$ Less: Intangible asset amortization 12 12 14 47 58 Adjusted noninterest expense (non-GAAP) 1,144$ 1,094$ 1,156$ 4,363$ 4,371$ Net interest income (GAAP) 1,220$ 1,196$ 1,033$ 4,527$ 4,071$ Plus: Taxable-equivalent adjustment 7 7 5 27 27 Noninterest income 671 683 909 2,718 3,194 Total taxable-equivalent revenue (non-GAAP) 1,898$ 1,886$ 1,947$ 7,272$ 7,292$ Cash eff iciency ratio (non-GAAP) 60.3% 58.0% 59.4% 60.0% 59.9%0.602 0.602 Three months ended Twelve Months Ended

 
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
12/31/20229/30/202212/31/2021
Assets
Loans$119,394 $116,191 $101,854 
Loans held for sale 963 1,048 2,729 
Securities available for sale39,117 40,000 45,364 
Held-to-maturity securities8,710 8,163 7,539 
Trading account assets829 1,068 701 
Short-term investments2,432 4,896 11,010 
Other investments1,308 1,272 639 
Total earning assets172,753 172,638 169,836 
Allowance for loan and lease losses(1,337)(1,144)(1,061)
Cash and due from banks887 717 913 
Premises and equipment636 629 681 
Goodwill2,752 2,752 2,693 
Other intangible assets94 106 130 
Corporate-owned life insurance4,369 4,351 4,327 
Accrued income and other assets9,223 9,535 8,265 
Discontinued assets436 467 562 
Total assets$189,813 $190,051 $186,346 
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts$86,707 $84,168 $89,207 
Savings deposits7,681 7,860 7,503 
Certificates of deposit ($100,000 or more)1,708 1,269 1,705 
Other time deposits5,665 4,578 2,153 
Total interest-bearing deposits101,761 97,875 100,568 
Noninterest-bearing deposits40,834 46,980 52,004 
Total deposits142,595 144,855 152,572 
Federal funds purchased and securities sold under repurchase agreements 4,077 4,224 173 
Bank notes and other short-term borrowings5,386 4,576 588 
Accrued expense and other liabilities4,994 4,849 3,548 
Long-term debt19,307 18,257 12,042 
Total liabilities176,359 176,761 168,923 
Equity
Preferred stock2,500 2,500 1,900 
Common shares1,257 1,257 1,257 
Capital surplus6,286 6,257 6,278 
Retained earnings15,616 15,450 14,553 
Treasury stock, at cost(5,910)(5,917)(5,979)
Accumulated other comprehensive income (loss)(6,295)(6,257)(586)
Key shareholders’ equity13,454 13,290 17,423 
Noncontrolling interests— — — 
Total equity13,454 13,290 17,423 
Total liabilities and equity$189,813 $190,051 $186,346 
Common shares outstanding (000)933,325 932,938 928,850 



Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months endedTwelve months ended
12/31/20229/30/202212/31/202112/31/202212/31/2021
Interest income
Loans$1,347 $1,134 $873 $4,241 $3,532 
Loans held for sale20 14 15 56 50 
Securities available for sale195 196 148 752 546 
Held-to-maturity securities64 55 52 213 185 
Trading account assets10 8 5 31 19 
Short-term investments48 32 8 97 28 
Other investments11 5 2 22 7 
Total interest income1,695 1,444 1,103 5,412 4,367 
Interest expense
Deposits186 59 15 279 67 
Federal funds purchased and securities sold under repurchase agreements16 19 — 41 — 
Bank notes and other short-term borrowings54 24 2 90 8 
Long-term debt219 146 53 475 221 
Total interest expense475 248 70 885 296 
Net interest income1,220 1,196 1,033 4,527 4,071 
Provision for credit losses265 109 4 502 (418)
Net interest income after provision for credit losses955 1,087 1,029 4,025 4,489 
Noninterest income
Trust and investment services income126 127 135 526 530 
Investment banking and debt placement fees172 154 323 638 937 
Service charges on deposit accounts71 92 90 350 337 
Operating lease income and other leasing gains24 19 37 103 148 
Corporate services income89 96 76 372 288 
Cards and payments income85 91 86 341 415 
Corporate-owned life insurance income33 33 34 132 128 
Consumer mortgage income9 14 25 58 131 
Commercial mortgage servicing fees42 44 48 167 160 
Other income20 13 55 31 120 
Total noninterest income671 683 909 2,718 3,194 
Noninterest expense
Personnel674 655 674 2,566 2,561 
Net occupancy72 72 75 295 300 
Computer processing82 77 73 314 284 
Business services and professional fees60 47 70 212 227 
Equipment20 23 25 92 100 
Operating lease expense22 24 31 101 126 
Marketing31 30 37 123 126 
Intangible asset amortization— — — — — 
Other expense195 178 185 707 705 
Total noninterest expense1,156 1,106 1,170 4,410 4,429 
Income (loss) from continuing operations before income taxes470 664 768 2,333 3,254 
Income taxes76 124 141 422 642 
Income (loss) from continuing operations394 540 627 1,911 2,612 
Income (loss) from discontinued operations, net of taxes— 2 2 6 13 
Net income (loss)394 542 629 1,917 2,625 
Less: Net income (loss) attributable to noncontrolling interests— — — — — 
Net income (loss) attributable to Key$394 $542 $629 $1,917 $2,625 
Income (loss) from continuing operations attributable to Key common shareholders$356 $513 $601 $1,793 $2,506 
Net income (loss) attributable to Key common shareholders356 515 603 1,799 2,519 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.38 $.55 $.65 $1.94 $2.6397 
Income (loss) from discontinued operations, net of taxes— — — .01 .0134 
Net income (loss) attributable to Key common shareholders (a)
.38 .55 .65 1.94 2.6531 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.38 $.55 $.64 $1.92 $2.62 
Income (loss) from discontinued operations, net of taxes— — — .01 .01 
Net income (loss) attributable to Key common shareholders (a)
.38 .55 $.64 1.93 2.63 
Cash dividends declared per common share$.205 $.195 $.195 $.79 $.75 
Weighted-average common shares outstanding (000)924,974 924,594 922,970 924,363 947,065 
Effect of common share options and other stock awards8,750 7,861 11,758 8,696 10,349 
Weighted-average common shares and potential common shares outstanding (000) (b)
933,724 932,455 934,729 933,059 957,414 
(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.