KEYCORP /NEW/ (Form: 8-K, Received: 04/20/2023 07:06:26)

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 20, 2023

(Exact name of registrant as specified in its charter)

Ohio

001-11302

34-6542451

State or other jurisdiction of incorporation or organization:

Commission File Number

I.R.S. Employer Identification Number:

127 Public Square,

Cleveland,

Ohio

44114-1306

Address of principal executive offices:

Zip Code:

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 class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, $1 par value	KEY	New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E)	KEY PrI	New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F)	KEY PrJ	New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G)	KEY PrK	New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Reset Perpetual Non-Cumulative Preferred Stock, Series H)	KEY PrL	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition.

On April 20, 2023, KeyCorp issued a press release announcing its financial results for the three-month period ended March 31, 2023 (the “Press Release”), and posted on its website its first quarter 2023 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.

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

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


SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



						KEYCORP
						(Registrant)


Date: April 20, 2023						/s/ Douglas M. Schosser
						By: Douglas M. Schosser
						Chief Accounting Officer

KEYCORP REPORTS FIRST QUARTER 2023 NET INCOME OF $275 MILLION,

OR $.30 PER DILUTED COMMON SHARE

Net income includes $126 million, or $.14 per share from allowance build and expense actions

Durable, relationship-based business model provides stability and positions the company to perform well throughout the business cycle

Strong liquidity and funding, supported by diverse, core deposits

Solid credit quality and disciplined underwriting with net charge-offs to average loans of 15 basis points

Capital remains strong, with Common Equity Tier 1 of 9.1%(a)

CLEVELAND, April 20, 2023 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $275 million, or $.30 per diluted common share for the first quarter of 2023. This compared to $356 million, or $.38 per diluted common share, for the fourth quarter of 2022 and $420 million, or $.45 per diluted common share, for the first quarter of 2022.

Comments from Chairman and CEO, Chris Gorman

"Key’s durable business model continues to provide stability while driving sound, profitable growth through all market conditions. Our strong balance sheet and our focus on relationship banking yields a diverse, stable deposit base and high-quality lending opportunities. Importantly, our long-standing commitment to primacy continues to serve us well, resulting in an increase in period-end deposits on a linked quarter basis. As a strong, core-funded institution, we are well positioned to continue to serve and support our clients and prospects.

The successful de-risking of our loan portfolios over the last decade positions Key to outperform, from a credit perspective. In the first quarter, we added to our allowance for credit losses to reflect changes in our economic outlook, with our allowance now representing over 7 years of annualized net charge-offs. Additionally, we delivered another quarter of strong credit performance, with net charge-offs of 15 basis points.

I remain confident in Key and the long-term outlook for our business. We have a relationship-based business model that will continue to serve our clients and our prospects and deliver value to our shareholders.”

(a)March 31, 2023 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 2


Selected Financial Highlights

Dollars in millions, except per share data										Change 1Q23 vs.
	1Q23			4Q22			1Q22			4Q22		1Q22
Income (loss) from continuing operations attributable to Key common shareholders	$	275		$	356		$	420		(22.8)	%	(34.5)	%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution	.30			.38			.45			(21.1)		(33.3)
Return on average tangible common equity from continuing operations (a)	13.16		%	18.07		%	14.12		%	N/A		N/A
Return on average total assets from continuing operations	.66			.83			.99			N/A		N/A
Common Equity Tier 1 ratio (b)	9.1			9.1			9.4			N/A		N/A
Book value at period end	$	12.70		$	11.79		$	14.43		7.7		(12.0)
Net interest margin (TE) from continuing operations	2.47		%	2.73		%	2.46		%	N/A		N/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)March 31, 2023 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable


INCOME STATEMENT HIGHLIGHTS

Revenue

Dollars in millions							Change 1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Net interest income (TE)	$	1,106	$	1,227	$	1,020	(9.9)	%	8.4	%
Noninterest income	608		671		676		(9.4)		(10.1)
Total revenue	$	1,714	$	1,898	$	1,696	(9.7)	%	1.1	%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.1 billion for the first quarter of 2023 and the net interest margin was 2.47%. Compared to the first quarter of 2022, net interest income increased $86 million and the net interest margin increased by one basis point. Net interest income and the net interest margin benefited from higher earning asset balances and higher interest rates, partly offset by higher interest-bearing deposit costs and a shift in funding mix.

Compared to the fourth quarter of 2022, taxable-equivalent net interest income decreased by $121 million, while the net interest margin decreased by 26 basis points. Net interest income and the net interest margin reflect higher interest-bearing deposit costs and a change in funding mix, partly offset by higher earning asset balances and a benefit from higher interest rates. Additionally, net interest income was lower reflecting two fewer days in the first quarter of 2023.


Noninterest Income

Dollars in millions							Change 1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Trust and investment services income	$	128	$	126	$	136	1.6	%	(5.9)	%
Investment banking and debt placement fees	145		172		163		(15.7)		(11.0)
Cards and payments income	81		85		80		(4.7)		1.3
Service charges on deposit accounts	67		71		91		(5.6)		(26.4)
Corporate services income	76		89		91		(14.6)		(16.5)
Commercial mortgage servicing fees	46		42		36		9.5		27.8
Corporate-owned life insurance income	29		33		31		(12.1)		(6.5)
Consumer mortgage income	11		9		21		22.2		(47.6)
Operating lease income and other leasing gains	25		24		32		4.2		(21.9)
Other income	—		20		(5)		(100.0)		100.0
Total noninterest income	$	608	$	671	$	676	(9.4)	%	(10.1)	%

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 3

Compared to the first quarter of 2022, noninterest income decreased by $68 million. The decrease was driven by a $24 million decline in service charges on deposit accounts, reflecting a planned reduction in overdraft and non-sufficient funds fees and lower account analysis fees related to the interest rate environment, as well as an $18 million decline in investment banking and debt placement fees. Additionally, corporate services income decreased $15 million, due to lower loan fees and market-related adjustments in the prior period. Consumer mortgage income decreased $10 million, reflecting lower saleable volume and lower gain on sale margins. Partially offsetting the decrease was a $10 million increase in commercial mortgage servicing fees.

Compared to the fourth quarter of 2022, noninterest income decreased by $63 million, reflecting a $27 million decline in investment banking and debt placement fees. Other income decreased by $20 million, driven by market-related valuation adjustments and a Visa litigation adjustment. Corporate services income decreased $13 million, reflecting lower derivatives income associated with customer derivatives, partially offset by growth in commercial mortgage servicing fees and trust and investment services income, up $4 million and $2 million, respectively.


Noninterest Expense

Dollars in millions							Change 1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Personnel expense	$	701	$	674	$	630	4.0	%	11.3	%
Nonpersonnel expense	475		482		440		(1.5)		8.0
Total noninterest expense	$	1,176	$	1,156	$	1,070	1.7	%	9.9	%

Compared to the first quarter of 2022, noninterest expense increased by $106 million. The increase was driven by personnel expense, up $71 million, reflecting $36 million of severance and other costs related to expense actions, as well as higher salaries. Nonpersonnel expense increased $35 million, driven by a $47 million increase in other expense, reflecting $28 million related to our expense actions and an increase in the base Federal Deposit Insurance Corporation ("FDIC") assessment rate of $9 million. Additionally, computer processing expense increased $15 million. Partially offsetting the increase in nonpersonnel expense was an $8 million decline in business services and professional fees, an $8 million decline in operating lease expense and a $7 million decline in marketing expense.

Compared to the fourth quarter of 2022, noninterest expense increased $20 million. The increase was driven by a $27 million increase in personnel expense, reflecting $36 million of severance and other costs related to expense actions, partly offset by a decline in incentive compensation. Nonpersonnel expense declined $7 million, reflecting a $15 million decline in business services and professional fees and a $10 million decline in marketing expense, partly offset by a $10 million increase in other expense. The increase in other expense reflects $28 million related to expense actions, as well as an increase in the base FDIC assessment rate of $9 million, partly offset by a reduction of a charitable contribution in the prior period.


BALANCE SHEET HIGHLIGHTS

Average Loans

Dollars in millions							Change 1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Commercial and industrial (a)	$	60,281	$	58,212	$	51,574	3.6	%	16.9	%
Other commercial loans	22,778		22,720		20,556		.3		10.8
Total consumer loans	36,778		36,770		31,632		—		16.3
Total loans	$	119,837	$	117,702	$	103,762	1.8	%	15.5	%

(a)Commercial and industrial average loan balances include $178 million, $171 million, and $141 million of assets from commercial credit cards at March 31, 2023, December 31, 2022, and March 31, 2022, respectively.

Average loans were $119.8 billion for the first quarter of 2023, an increase of $16.1 billion compared to the first quarter of 2022. Commercial loans increased by $10.9 billion, largely reflecting growth in commercial and industrial loans, as well as an increase in commercial mortgage real estate loans. Consumer loans increased $5.1 billion, largely driven by Key's residential mortgage business.

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 4

Compared to the fourth quarter of 2022, average loans increased by $2.1 billion. The increase was driven by commercial loans, up $2.1 billion, reflecting growth in commercial and industrial loans.


Average Deposits

Dollars in millions										Change 1Q23 vs.
	1Q23			4Q22			1Q22			4Q22		1Q22
Non-time deposits	$	132,907		$	139,558		$	146,426		(4.8)	%	(9.2)	%
Certificates of deposit ($100,000 or more)	2,392			1,351			1,639			77.1		45.9
Other time deposits	8,106			4,757			2,098			70.4		286.4
Total deposits	$	143,405		$	145,666		$	150,163		(1.6)	%	(4.5)	%

Cost of total deposits	.99		%	.51		%	.04		%	N/A		N/A

N/A = Not Applicable

Average deposits totaled $143.4 billion for the first quarter of 2023, a decrease of $6.8 billion compared to the year-ago quarter. The decline reflects elevated inflation-related spend, the normalization of pandemic-related deposits, and changing client behavior due to higher interest rates.

Compared to the fourth quarter of 2022, average deposits decreased by $2.3 billion. The decline was driven by the normalization of pandemic-related balances, changing client behavior due to higher interest rates, and normal seasonal deposit outflows in commercial deposits.


ASSET QUALITY

Dollars in millions										Change 1Q23 vs.
	1Q23			4Q22			1Q22			4Q22		1Q22
Net loan charge-offs	$	45		$	41		$	33		9.8	%	36.4	%
Net loan charge-offs to average total loans	.15		%	.14		%	.13		%	N/A		N/A
Nonperforming loans at period end	$	416		$	387		$	439		7.5		(5.2)
Nonperforming assets at period end	447			420			467			6.4		(4.3)
Allowance for loan and lease losses	1,380			1,337			1,105			3.2		24.9
Allowance for credit losses	1,656			1,562			1,271			6.0		30.3
Provision for credit losses	139			265			83			(47.5)		67.5

Allowance for loan and lease losses to nonperforming loans	332		%	346		%	252		%	N/A		N/A
Allowance for credit losses to nonperforming loans	398			404			290			N/A		N/A

N/A = Not Applicable

Key's provision for credit losses was $139 million, compared to $83 million in the first quarter of 2022 and provision of $265 million in the fourth quarter of 2022. The increase from the year-ago period reflects changes in the economic outlook, in addition to higher net loan charge-offs. The decrease from the prior quarter is primarily driven by economic conditions and slowing loan growth.

Net loan charge-offs for the first quarter of 2023 totaled $45 million, or 0.15% of average total loans. These results compare to $33 million, or 0.13%, for the first quarter of 2022 and $41 million, or 0.14%, for the fourth quarter of 2022. Key’s allowance for credit losses was $1.7 billion, or 1.38% of total period-end loans at March 31, 2023, compared to 1.19% at March 31, 2022, and 1.31% at December 31, 2022.

At March 31, 2023, Key’s nonperforming loans totaled $416 million, which represented 0.35% of period-end portfolio loans. These results compare to 0.41% at March 31, 2022, and 0.32% at December 31, 2022. Nonperforming assets at March 31, 2023, totaled $447 million, and represented 0.37% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.44% at March 31, 2022, and 0.35% at December 31, 2022.

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 5

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2023.


Capital Ratios

	3/31/2023		12/31/2022		3/31/2022
Common Equity Tier 1 (a)	9.1	%	9.1	%	9.4	%

Tier 1 risk-based capital (a)	10.6		10.6		10.7
Total risk-based capital (a)	12.8		12.8		12.4
Tangible common equity to tangible assets (b)	4.6		4.4		6.0
Leverage (a)	8.8		8.9		8.6

(a)March 31, 2023 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 first quarter of 2023. As shown in the preceding table, at March 31, 2023, 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 was 4.6% at March 31, 2023.

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 eight basis points.


Summary of Changes in Common Shares Outstanding

In thousands					Change 1Q23 vs.
		1Q23	4Q22	1Q22	4Q22		1Q22
Shares outstanding at beginning of period		933,325	932,938	928,850	—	%	.5	%
Open market repurchases and return of shares under employee compensation plans		(4,333)	(2)	(1,707)	N/M		153.8
Shares issued under employee compensation plans (net of cancellations)		6,237	389	5,255	N/M		18.7
	Shares outstanding at end of period	935,229	933,325	932,398	.2	%	.3	%

N/M = Not Meaningful

During the first quarter of 2023, Key declared a dividend of $.205 per common share. Additionally, we have $752 million remaining in our 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 First Quarter 2023 Profit

April 20, 2023

Page 6


Major Business Segments

Dollars in millions								Change 1Q23 vs.
		1Q23		4Q22		1Q22		4Q22		1Q22
Revenue from continuing operations (TE)
Consumer Bank		$	842	$	900	$	799	(6.4)	%	5.4	%
Commercial Bank		841		928		808		(9.4)		4.1
Other (a)		31		70		89		(55.7)		(65.2)


	Total	$	1,714	$	1,898	$	1,696	(9.7)	%	1.1	%

Income (loss) from continuing operations attributable to Key
Consumer Bank		$	81	$	74	$	71	9.5	%	14.1	%
Commercial Bank		264		250		284		5.6		(7.0)
Other (a)		(34)		70		92		(148.6)		(137.0)


	Total	$	311	$	394	$	447	(21.1)	%	(30.4)	%

(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 millions							Change 1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Summary of operations
Net interest income (TE)	$	614	$	674	$	543	(8.9)	%	13.1	%
Noninterest income	228		226		256		.9		(10.9)
Total revenue (TE)	842		900		799		(6.4)		5.4
Provision for credit losses	60		105		43		(42.9)		39.5
Noninterest expense	675		698		663		(3.3)		1.8
Income (loss) before income taxes (TE)	107		97		93		10.3		15.1
Allocated income taxes (benefit) and TE adjustments	26		23		22		13.0		18.2
Net income (loss) attributable to Key	$	81	$	74	$	71	9.5	%	14.1	%

Average balances
Loans and leases	$	43,086	$	43,149	$	38,654	(.1)	%	11.5	%
Total assets	45,911		46,214		41,786		(.7)		9.9
Deposits	84,492		87,243		91,516		(3.2)		(7.7)

Assets under management at period end	$	53,689	$	51,282	$	53,707	4.7	%	—	%

TE = Taxable Equivalent

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 7


Additional Consumer Bank Data

Dollars in millions							Change 1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Noninterest income
Trust and investment services income	$	101	$	97	$	106	4.1	%	(4.7)	%
Service charges on deposit accounts	38		40		54		(5.0)		(29.6)
Cards and payments income	61		62		57		(1.6)		7.0
Consumer mortgage income	11		9		21		22.2		(47.6)
Other noninterest income	17		18		18		(5.6)		(5.6)
Total noninterest income	$	228	$	226	$	256	.9	%	(10.9)	%

Average deposit balances
Money market deposits	$	28,127	$	29,695	$	32,013	(5.3)	%	(12.1)	%
Demand deposits	24,829		24,956		26,632		(.5)		(6.8)
Savings deposits	7,025		7,439		7,233		(5.6)		(2.9)
Certificates of deposit ($100,000 or more)	2,182		1,227		1,520		77.8		43.6
Other time deposits	2,169		1,762		2,089		23.1		3.8
Noninterest-bearing deposits	20,160		22,164		22,029		(9.0)		(8.5)
Total deposits	$	84,492	$	87,243	$	91,516	(3.2)	%	(7.7)	%






Other data
Branches	971		972		993
Automated teller machines	1,263		1,265		1,308

Consumer Bank Summary of Operations (1Q23 vs. 1Q22)

•Key's Consumer Bank recorded net income attributable to Key of $81 million for the first quarter of 2023, compared to $71 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $71 million, or 13.1%, compared to the first quarter of 2022, driven by higher interest rates and balance sheet mix

•Average loans and leases increased $4.4 billion, or 11.5%, from the first quarter of 2022, driven by loan growth in consumer mortgage

•Average deposits decreased $7.0 billion, or 7.7%, from the first quarter of 2022, driven by elevated inflation-related spend, the normalization of pandemic-related deposits, and changing client behavior due to higher interest rates

•Provision for credit losses increased $17 million compared to the first quarter of 2022, driven by changes in the economic outlook

•Noninterest income decreased $28 million from the year-ago quarter, driven by a decline in service charges on deposit accounts, reflecting a planned reduction in overdraft and non-sufficient funds fees, and lower consumer mortgage income, reflecting lower saleable volume and gain on sale margins

•Noninterest expense increased $12 million, or 1.8%, from the year-ago quarter, primarily driven by an increase in salaries

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 8


Commercial Bank

Dollars in millions							Change 1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Summary of operations
Net interest income (TE)	$	475	$	521	$	414	(8.8)	%	14.7	%
Noninterest income	366		407		394		(10.1)		(7.1)
Total revenue (TE)	841		928		808		(9.4)		4.1
Provision for credit losses	80		165		41		(51.5)		95.1
Noninterest expense	428		461		414		(7.2)		3.4
Income (loss) before income taxes (TE)	333		302		353		10.3		(5.7)
Allocated income taxes and TE adjustments	69		52		69		32.7		—


Net income (loss) attributable to Key	$	264	$	250	$	284	5.6	%	(7.0)	%

Average balances
Loans and leases	$	76,306	$	74,100	$	64,684	3.0	%	18.0	%
Loans held for sale	876		1,377		1,323		(36.4)		(33.8)
Total assets	85,852		84,615		74,816		1.5		14.8
Deposits	52,185		54,385		57,241		(4.0)	%	(8.8)	%

TE = Taxable Equivalent


Additional Commercial Bank Data

Dollars in millions							Change 1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Noninterest income
Trust and investment services income	$	27	$	29	$	31	(6.9)	%	(12.9)	%
Investment banking and debt placement fees	145		172		162		(15.7)		(10.5)
Cards and payments income	20		19		22		5.3		(9.1)
Service charges on deposit accounts	27		30		36		(10.0)		(25.0)
Corporate services income	69		81		82		(14.8)		(15.9)
Commercial mortgage servicing fees	46		42		36		9.5		27.8
Operating lease income and other leasing gains	24		23		32		4.3		(25.0)
Other noninterest income	8		11		(7)		(27.3)		214.3
Total noninterest income	$	366	$	407	$	394	(10.1)	%	(7.1)	%

Commercial Bank Summary of Operations (1Q23 vs. 1Q22)

•Key's Commercial Bank recorded net income attributable to Key of $264 million for the first quarter of 2023 compared to $284 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $61 million, or 14.7%, compared to the first quarter of 2022, reflecting higher interest rates and balance sheet mix

•Average loan and lease balances increased $11.6 billion, or 18.0%, compared to the first quarter of 2022, reflecting growth in commercial and industrial loans and an increase in commercial mortgage real estate loans

•Average deposit balances decreased $5.1 billion compared to the first quarter of 2022, reflecting elevated inflation-related spend, the normalization of pandemic-related deposits, and changing client behavior due to higher interest rates

•Provision for credit losses increased $39 million compared to the first quarter of 2022, as we prepare for more challenging economic conditions

•Noninterest income decreased $28 million from the year-ago quarter, primarily driven by a decline in corporate services income and lower investment banking and debt placement fees

•Noninterest expense increased $14 million from the first quarter of 2022, primarily driven by an increase in salaries and incentive compensation

KeyCorp Reports First Quarter 2023 Profit

April 20, 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 $198 billion at March 31, 2023.

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 First Quarter 2023 Profit

April 20, 2023

Page 10


CONTACTS:

ANALYSTS			MEDIA
Vernon L. Patterson			Susan Donlan
216.689.0520			216.471.3133
Vernon_Patterson@KeyBank.com			Susan_E_Donlan@KeyBank.com

Adrienne Atkinson			Beth Strauss
216.689.4030			216.471.2787
Adrienne.Atkinson@key.com			Beth_A_Strauss@KeyBank.com

Halle A. Nichols			Twitter: @keybank
216.471.2184
Halle_A_Nichols@KeyBank.com

INVESTOR RELATIONS:			KEY MEDIA NEWSROOM:
www.key.com/ir			www.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, 2022, 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, the soundness of other financial institutions and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

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 April 20, 2023. A replay of the call will be available through April 30, 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 First Quarter 2023 Profit

April 20, 2023

Page 11

Financial Supplement


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

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 12


Financial Highlights
(Dollars in millions, except per share amounts)
			Three months ended
			3/31/2023			12/31/2022			3/31/2022
Summary of operations
	Net interest income (TE)		$	1,106		$	1,227		$	1,020
	Noninterest income		608			671			676
		Total revenue (TE)	1,714			1,898			1,696
	Provision for credit losses		139			265			83
	Noninterest expense		1,176			1,156			1,070
	Income (loss) from continuing operations attributable to Key		311			394			447
	Income (loss) from discontinued operations, net of taxes		1			—			1
	Net income (loss) attributable to Key		312			394			448

	Income (loss) from continuing operations attributable to Key common shareholders		275			356			420
	Income (loss) from discontinued operations, net of taxes		1			—			1
	Net income (loss) attributable to Key common shareholders		276			356			421

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	.30		$	.38		$	.45
	Income (loss) from discontinued operations, net of taxes		—			—			—
	Net income (loss) attributable to Key common shareholders (a)		.30			.38			.46

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.30			.38			.45
	Income (loss) from discontinued operations, net of taxes — assuming dilution		—			—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)		.30			.38			.45

	Cash dividends declared		.205			.205			.195
	Book value at period end		12.70			11.79			14.43
	Tangible book value at period end		9.67			8.75			11.41
	Market price at period end		12.52			17.42			22.38

Performance ratios
	From continuing operations:
	Return on average total assets		.66		%	.83		%	.99		%
	Return on average common equity		9.85			13.24			11.45
	Return on average tangible common equity (b)		13.16			18.07			14.12
	Net interest margin (TE)		2.47			2.73			2.46
	Cash efficiency ratio (b)		68.0			60.3			62.4

	From consolidated operations:
	Return on average total assets		.66		%	.82		%	.99		%
	Return on average common equity		9.89			13.24			11.47
	Return on average tangible common equity (b)		13.21			18.07			14.15
	Net interest margin (TE)		2.47			2.73			2.46
	Loan to deposit (c)		84.4			84.7			72.9

Capital ratios at period end
	Key shareholders’ equity to assets		7.3		%	7.1		%	8.5		%
	Key common shareholders’ equity to assets		6.0			5.8			7.4
	Tangible common equity to tangible assets (b)		4.6			4.4			6.0
	Common Equity Tier 1 (d)		9.1			9.1			9.4
	Tier 1 risk-based capital (d)		10.6			10.6			10.7
	Total risk-based capital (d)		12.8			12.8			12.4
	Leverage (d)		8.8			8.9			8.6

Asset quality — from continuing operations
	Net loan charge-offs		$	45		$	41		$	33
	Net loan charge-offs to average loans		.15		%	.14		%	.13		%
	Allowance for loan and lease losses		$	1,380		$	1,337		$	1,105
	Allowance for credit losses		1,656			1,562			1,271
	Allowance for loan and lease losses to period-end loans		1.15		%	1.12		%	1.04		%
	Allowance for credit losses to period-end loans		1.38			1.31			1.19
	Allowance for loan and lease losses to nonperforming loans		332			346			252
	Allowance for credit losses to nonperforming loans		398			404			290
	Nonperforming loans at period-end		$	416		$	387		$	439
	Nonperforming assets at period-end		447			420			467
	Nonperforming loans to period-end portfolio loans		.35		%	.32		%	.41		%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.37			.35			.44

Trust assets
	Assets under management		$	53,689		$	51,282		$	53,707


Other data
	Average full-time equivalent employees		18,220			18,210			17,110
	Branches		971			972			993
	Taxable-equivalent adjustment		$	7		$	7		$	6

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 13

(a)Earnings per share may not foot due to rounding.

(b)The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.

(d)March 31, 2023, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports First Quarter 2023 Profit

April 20, 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 ended
	3/31/2023			12/31/2022			3/31/2022
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)	$	14,322		$	13,454		$	15,308
Less: Intangible assets (a)	2,836			2,844			2,810
Preferred Stock (b)	2,446			2,446			1,856
Tangible common equity (non-GAAP)	$	9,040		$	8,164		$	10,642
Total assets (GAAP)	$	197,519		$	189,813		$	181,221
Less: Intangible assets (a)	2,836			2,844			2,810
Tangible assets (non-GAAP)	$	194,683		$	186,969		$	178,411
Tangible common equity to tangible assets ratio (non-GAAP)	4.64		%	4.37		%	5.96		%




Pre-provision net revenue
Net interest income (GAAP)	$	1,099		$	1,220		$	1,014
Plus: Taxable-equivalent adjustment	7			7			6
Noninterest income	608			671			676
Less: Noninterest expense	1,176			1,156			1,070
Pre-provision net revenue from continuing operations (non-GAAP)	$	538		$	742		$	626
Average tangible common equity
Average Key shareholders' equity (GAAP)	$	13,817		$	13,168		$	16,780
Less: Intangible assets (average) (c)	2,841			2,851			2,814
Preferred stock (average)	2,500			2,500			1,900
Average tangible common equity (non-GAAP)	$	8,476		$	7,817		$	12,066
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	275		$	356		$	420


Average tangible common equity (non-GAAP)	8,476			7,817			12,066

Return on average tangible common equity from continuing operations (non-GAAP)	13.16		%	18.07		%	14.12		%

Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	276		$	356		$	421
Average tangible common equity (non-GAAP)	8,476			7,817			12,066

Return on average tangible common equity consolidated (non-GAAP)	13.21		%	18.07		%	14.15		%

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 15


GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
	Three months ended
	3/31/2023			12/31/2022			3/31/2022





































Cash efficiency ratio
Noninterest expense (GAAP)	$	1,176		$	1,156		$	1,070
Less: Intangible asset amortization	10			12			11
Adjusted noninterest expense (non-GAAP)	$	1,166		$	1,144		$	1,059



Net interest income (GAAP)	$	1,099		$	1,220		$	1,014
Plus: Taxable-equivalent adjustment	7			7			6
Noninterest income	608			671			676
Total taxable-equivalent revenue (non-GAAP)	$	1,714		$	1,898		$	1,696



Cash efficiency ratio (non-GAAP)	68.0		%	60.3		%	62.4		%

(a)For the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, intangible assets exclude $1 million, $2 million, and $2 million, respectively, of period-end purchased credit card receivables.

(b)Net of capital surplus.

(c)For the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, average intangible assets exclude $1 million, $2 million, and $3 million, respectively, of average purchased credit card receivables.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 16


Consolidated Balance Sheets
(Dollars in millions)

			3/31/2023		12/31/2022		3/31/2022
Assets
	Loans		$	119,971	$	119,394	$	106,600
	Loans held for sale		1,211		963		1,170
	Securities available for sale		39,498		39,117		43,681
	Held-to-maturity securities		9,561		8,710		6,871
	Trading account assets		1,118		829		848
	Short-term investments		8,410		2,432		3,881
	Other investments		1,587		1,308		722
		Total earning assets	181,356		172,753		163,773
	Allowance for loan and lease losses		(1,380)		(1,337)		(1,105)
	Cash and due from banks		784		887		684
	Premises and equipment		628		636		647
	Goodwill		2,752		2,752		2,694
	Other intangible assets		85		94		118
	Corporate-owned life insurance		4,372		4,369		4,340
	Accrued income and other assets		8,512		9,223		9,544
	Discontinued assets		410		436		526
		Total assets	$	197,519	$	189,813	$	181,221

Liabilities
	Deposits in domestic offices:





		Interest-bearing deposits	106,841		101,761		98,239
		Noninterest-bearing deposits	37,307		40,834		50,424
		Total deposits	144,148		142,595		148,663
	Federal funds purchased and securities sold under repurchase agreements		1,374		4,077		599
	Bank notes and other short-term borrowings		10,061		5,386		2,222
	Accrued expense and other liabilities		4,861		4,994		3,615
	Long-term debt		22,753		19,307		10,814
		Total liabilities	183,197		176,359		165,913

Equity
	Preferred stock		2,500		2,500		1,900
	Common shares		1,257		1,257		1,257
	Capital surplus		6,207		6,286		6,214
	Retained earnings		15,700		15,616		14,793
	Treasury stock, at cost		(5,868)		(5,910)		(5,927)
	Accumulated other comprehensive income (loss)		(5,474)		(6,295)		(2,929)
		Key shareholders’ equity	14,322		13,454		15,308


Total liabilities and equity			$	197,519	$	189,813	$	181,221

Common shares outstanding (000)			935,229		933,325		932,398

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 17


Consolidated Statements of Income
(Dollars in millions, except per share amounts)
			Three months ended
			3/31/2023		12/31/2022		3/31/2022
Interest income
	Loans		$	1,476	$	1,347	$	837
	Loans held for sale		13		20		12
	Securities available for sale		194		195		173
	Held-to-maturity securities		74		64		46
	Trading account assets		12		10		6
	Short-term investments		42		48		4
	Other investments		13		11		2
		Total interest income	1,824		1,695		1,080
Interest expense
	Deposits		350		186		14
	Federal funds purchased and securities sold under repurchase agreements		22		16		—
	Bank notes and other short-term borrowings		78		54		3
	Long-term debt		275		219		49
		Total interest expense	725		475		66
Net interest income			1,099		1,220		1,014
Provision for credit losses			139		265		83
Net interest income after provision for credit losses			960		955		931
Noninterest income
	Trust and investment services income		128		126		136
	Investment banking and debt placement fees		145		172		163
	Cards and payments income		81		85		80
	Service charges on deposit accounts		67		71		91
	Corporate services income		76		89		91
	Commercial mortgage servicing fees		46		42		36
	Corporate-owned life insurance income		29		33		31
	Consumer mortgage income		11		9		21
	Operating lease income and other leasing gains		25		24		32
	Other income		—		20		(5)
		Total noninterest income	608		671		676
Noninterest expense
	Personnel		701		674		630
	Net occupancy		70		72		73
	Computer processing		92		82		77
	Business services and professional fees		45		60		53
	Equipment		22		20		23
	Operating lease expense		20		22		28
	Marketing		21		31		28



	Other expense		205		195		158
		Total noninterest expense	1,176		1,156		1,070
Income (loss) from continuing operations before income taxes			392		470		537
	Income taxes		81		76		90
Income (loss) from continuing operations			311		394		447
	Income (loss) from discontinued operations, net of taxes		1		—		1
Net income (loss)			312		394		448

Net income (loss) attributable to Key			$	312	$	394	$	448

Income (loss) from continuing operations attributable to Key common shareholders			$	275	$	356	$	420
Net income (loss) attributable to Key common shareholders			276		356		421
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.30	$	.38	$	.45
Income (loss) from discontinued operations, net of taxes			—		—		—
Net income (loss) attributable to Key common shareholders (a)			.30		.38		.46
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.30	$	.38	$	.45
Income (loss) from discontinued operations, net of taxes			—		—		—
Net income (loss) attributable to Key common shareholders (a)			.30		.38		.45

Cash dividends declared per common share			$	.205	$	.205	$	.195

Weighted-average common shares outstanding (000)			926,490		924,974		922,941
	Effect of common share options and other stock awards		7,314		8,750		10,692
Weighted-average common shares and potential common shares outstanding (000) (b)			933,804		933,724		933,634

(a)Earnings per share may not foot due to rounding.

(b)Assumes conversion of common share options and other stock awards, as applicable.

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 18


Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		First Quarter 2023						Fourth Quarter 2022						First Quarter 2022
		Average				Yield/		Average				Yield/		Average				Yield/
		Balance		Interest (a)		Rate (a)		Balance		Interest (a)		Rate (a)		Balance		Interest (a)		Rate (a)
Assets
	Loans: (b), (c)
	Commercial and industrial (d)	$	60,281	$	807	5.42	%	$	58,212	$	712	4.85	%	$	51,574	$	410	3.22	%
	Real estate — commercial mortgage	16,470		224		5.52		16,445		208		5.01		14,587		121		3.37
	Real estate — construction	2,525		39		6.30		2,450		35		5.70		2,027		17		3.37
	Commercial lease financing	3,783		27		2.87		3,825		26		2.71		3,942		24		2.41
	Total commercial loans	83,059		1,097		5.35		80,932		981		4.81		72,130		572		3.21
	Real estate — residential mortgage	21,436		172		3.21		21,128		164		3.11		16,309		112		2.75
	Home equity loans	7,879		106		5.47		7,890		103		5.18		8,345		74		3.61
	Consumer direct loans	6,439		75		4.71		6,713		75		4.45		5,954		61		4.16
	Credit cards	983		32		13.37		993		31		12.61		932		24		10.36
	Consumer indirect loans	41		1		1.24		46		—		—		92		—		—
	Total consumer loans	36,778		386		4.23		36,770		373		4.05		31,632		271		3.45
	Total loans	119,837		1,483		5.01		117,702		1,354		4.57		103,762		843		3.28
	Loans held for sale	907		13		5.86		1,421		20		5.63		1,485		12		3.32
	Securities available for sale (b), (e)	39,172		194		1.72		39,149		195		1.70		44,923		173		1.50
	Held-to-maturity securities (b)	8,931		74		3.32		8,278		64		3.07		7,188		46		2.54
	Trading account assets	1,001		12		4.86		863		10		4.57		842		6		2.74
	Short-term investments	3,532		42		4.80		3,159		48		6.02		7,323		4		.25
	Other investments (e)	1,309		13		4.01		1294		11		3.15		651		2		1.26
	Total earning assets	174,689		1,831		4.09		171,866		1,702		3.79		166,174		1,086		2.62
	Allowance for loan and lease losses	(1,336)						(1,145)						(1,056)
	Accrued income and other assets	17,498						18,421						17,471
	Discontinued assets	419						447						539
	Total assets	$	191,270					$	189,589					$	183,128
Liabilities
	Money market deposits	$	33,853	$	78	.94	%	$	34,921	$	35	.40	%	$	37,233	$	4	.04	%
	Demand deposits	52,365		183		1.42		50,877		119		.93		51,282		7		.06
	Savings deposits	7,346		1		.03		7,795		1		.03		7,599		—		.01
	Certificates of deposit ($100,000 or more)	2,392		16		2.64		1,351		3		.93		1,639		2		.44
	Other time deposits	8,106		72		3.61		4,757		28		2.33		2,098		1		.15
	Total interest-bearing deposits	104,062		350		1.36		99,701		186		.74		99,851		14		.06
	Federal funds purchased and securities sold under repurchase agreements	2,087		22		4.34		1,752		16		3.52		287		—		.13
	Bank notes and other short-term borrowings	6,597		78		4.80		5,420		54		3.94		705		3		1.94
	Long-term debt (f), (g)	20,141		275		5.47		18,351		219		4.77		10,830		49		1.79
	Total interest-bearing liabilities	132,887		725		2.20		125,224		475		1.50		111,673		66		.24
	Noninterest-bearing deposits	39,343						45,965						50,312
	Accrued expense and other liabilities	4,804						4,785						3,824
	Discontinued liabilities (g)	419						447						539
	Total liabilities	$	177,453					$	176,421					$	166,348
Equity
	Key shareholders’ equity	$	13,817					$	13,168					$	16,780
	Noncontrolling interests	—						—						—
	Total equity	13,817						13,168						16,780
	Total liabilities and equity	$	191,270					$	189,589					$	183,128
Interest rate spread (TE)						1.89	%					2.28	%					2.38	%
Net interest income (TE) and net interest margin (TE)				$	1,106	2.47	%			$	1,227	2.73	%			$	1,020	2.46	%
TE adjustment (b)				7						7						6
	Net interest income, GAAP basis			$	1,099					$	1,220					$	1,014

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.

(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended March 31, 2023, December 31, 2022, and March 31, 2022.

(c)For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)Commercial and industrial average balances include $178 million, $171 million, and $141 million of assets from commercial credit cards for the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, 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 First Quarter 2023 Profit

April 20, 2023

Page 19


Noninterest Expense
(Dollars in millions)

	Three months ended
	3/31/2023		12/31/2022		3/31/2022
Personnel (a)	$	701	$	674	$	630
Net occupancy	70		72		73
Computer processing	92		82		77
Business services and professional fees	45		60		53
Equipment	22		20		23
Operating lease expense	20		22		28
Marketing	21		31		28



Other expense	205		195		158
Total noninterest expense	$	1,176	$	1,156	$	1,070


Average full-time equivalent employees (b)	18,220		18,210		17,110

(a)Additional detail provided in Personnel Expense table below.

(b)The number of average full-time equivalent employees has not been adjusted for discontinued operations.


Personnel Expense
(Dollars in millions)

	Three months ended
	3/31/2023		12/31/2022		3/31/2022
Salaries and contract labor	$	419	$	407	$	348
Incentive and stock-based compensation	152		171		183
Employee benefits	99		94		97
Severance	31		2		2
Total personnel expense	$	701	$	674	$	630

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 20


Loan Composition
(Dollars in millions)

							Change 3/31/2023 vs.
	3/31/2023		12/31/2022		3/31/2022		12/31/2022		3/31/2022
Commercial and industrial (a)	$	60,565	$	59,647	$	52,815	1.5	%	14.7	%
Commercial real estate:
Commercial mortgage	16,348		16,352		15,124		—		8.1
Construction	2,590		2,530		2,065		2.4		25.4
Total commercial real estate loans	18,938		18,882		17,189		.3		10.2
Commercial lease financing (b)	3,763		3,936		3,916		(4.4)		(3.9)
Total commercial loans	83,266		82,465		73,920		1.0		12.6
Residential — prime loans:
Real estate — residential mortgage	21,632		21,401		17,181		1.1		25.9
Home equity loans	7,706		7,951		8,258		(3.1)		(6.7)
Total residential — prime loans	29,338		29,352		25,439		—		15.3
Consumer direct loans	6,359		6,508		6,249		(2.3)		1.8
Credit cards	969		1,026		930		(5.6)		4.2
Consumer indirect loans	39		43		62		(9.3)		(37.1)
Total consumer loans	36,705		36,929		32,680		(.6)		12.3
Total loans (c), (d)	$	119,971	$	119,394	$	106,600	.5	%	12.5	%

(a)Loan balances include $185 million, $172 million, and $147 million of commercial credit card balances at March 31, 2023, December 31, 2022, and March 31, 2022, respectively.

(b)Commercial lease financing includes receivables held as collateral for a secured borrowing of $6 million, $8 million, and $14 million at March 31, 2023, December 31, 2022, and March 31, 2022, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $407 million at March 31, 2023, $434 million at December 31, 2022, and $531 million at March 31, 2022, related to the discontinued operations of the education lending business.

(d)Accrued interest of $487 million, $417 million, and $192 million at March 31, 2023, December 31, 2022, and March 31, 2022, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.


Loans Held for Sale Composition
(Dollars in millions)

							Change 3/31/2023 vs.
	3/31/2023		12/31/2022		3/31/2022		12/31/2022		3/31/2022
Commercial and industrial	$	351	$	477	$	216	(26.4)	%	62.5	%
Real estate — commercial mortgage	815		427		819		90.9		(0.5)

Commercial lease financing	—		35		—		N/M		N/M
Real estate — residential mortgage	45		24		114		87.5		(60.5)

Total loans held for sale	$	1,211	$	963	$	1,170	25.8	%	3.5	%

N/M = Not Meaningful


Summary of Changes in Loans Held for Sale
(Dollars in millions)

	1Q23		4Q22		3Q22		2Q22		1Q22
Balance at beginning of period	$	963	$	1,048	$	1,306	$	1,170	$	2,729
New originations	1,779		3,158		2,157		2,837		2,724
Transfers from (to) held to maturity, net	(13)		(48)		—		(57)		—
Loan sales	(1,518)		(3,124)		(2,446)		(2,506)		(4,269)
Loan draws (payments), net	—		(71)		26		(133)		(12)
Valuation and other adjustments	—		—		5		(5)		(2)
Balance at end of period	$	1,211	$	963	$	1,048	$	1,306	$	1,170

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 21


Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)

	Three months ended
	3/31/2023			12/31/2022			3/31/2022
Average loans outstanding	$	119,837		$	117,702		$	103,762


Allowance for loan and lease losses at the beginning of the period	1,337			1,144			1,061
Loans charged off:
Commercial and industrial	35			35			30

Real estate — commercial mortgage	5			13			4
Real estate — construction	—			—			—
Total commercial real estate loans	5			13			4
Commercial lease financing	(1)			—			2
Total commercial loans	39			48			36
Real estate — residential mortgage	—			—			(1)
Home equity loans	1			—			1
Consumer direct loans	11			9			7
Credit cards	9			8			7
Consumer indirect loans	—			2			1
Total consumer loans	21			19			15
Total loans charged off	60			67			51
Recoveries:
Commercial and industrial	8			18			11

Real estate — commercial mortgage	—			1			1
Real estate — construction	—			—			—
Total commercial real estate loans	—			1			1
Commercial lease financing	1			2			—
Total commercial loans	9			21			12
Real estate — residential mortgage	1			3			—
Home equity loans	1			—			1
Consumer direct loans	2			1			2
Credit cards	1			1			2
Consumer indirect loans	1			—			1
Total consumer loans	6			5			6
Total recoveries	15			26			18
Net loan charge-offs	(45)			(41)			(33)
Provision (credit) for loan and lease losses	88			234			77

Allowance for loan and lease losses at end of period	$	1,380		$	1,337		$	1,105




Liability for credit losses on lending-related commitments at beginning of period	225			194			160
Provision (credit) for losses on lending-related commitments	51			31			6
Liability for credit losses on lending-related commitments at end of period (a)	$	276		$	225		$	166

Total allowance for credit losses at end of period	$	1,656		$	1,562		$	1,271

Net loan charge-offs to average total loans	.15		%	.14		%	.13		%
Allowance for loan and lease losses to period-end loans	1.15			1.12			1.04
Allowance for credit losses to period-end loans	1.38			1.31			1.19
Allowance for loan and lease losses to nonperforming loans	332			345			252
Allowance for credit losses to nonperforming loans	398			404			290

Discontinued operations — education lending business:
Loans charged off	$	1		$	2		$	2
Recoveries	—			—			—
Net loan charge-offs	$	(1)		$	(2)		$	(2)

(a)Included in "Accrued expense and other liabilities" on the balance sheet.

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 22


Asset Quality Statistics From Continuing Operations
(Dollars in millions)
	1Q23			4Q22			3Q22			2Q22			1Q22
Net loan charge-offs	$	45		$	41		$	43		$	44		$	33
Net loan charge-offs to average total loans	.15		%	.14		%	.15		%	.16		%	.13		%
Allowance for loan and lease losses	$	1,380		$	1,337		$	1,144		$	1,099		$	1,105
Allowance for credit losses (a)	1,656			1,562			1,338			1,272			1,271
Allowance for loan and lease losses to period-end loans	1.15		%	1.12		%	.98		%	.98		%	1.04		%
Allowance for credit losses to period-end loans	1.38			1.31			1.15			1.13			1.19
Allowance for loan and lease losses to nonperforming loans	332			346			293			256			252
Allowance for credit losses to nonperforming loans	398			404			343			297			290
Nonperforming loans at period end	$	416		$	387		$	390		$	429		$	439
Nonperforming assets at period end	447			420			419			463			467
Nonperforming loans to period-end portfolio loans	.35		%	.32		%	.34		%	.38		%	.41		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.37			.35			.36			.41			.44

(a)Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.


Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Commercial and industrial	$	170		$	174		$	169		$	197		$	186

Real estate — commercial mortgage	59			21			34			35			40
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	59			21			34			35			40
Commercial lease financing	1			1			2			2			3
Total commercial loans	230			196			205			234			229
Real estate — residential mortgage	75			77			66			67			73
Home equity loans	104			107			112			120			129
Consumer direct loans	3			3			3			3			4
Credit cards	3			3			3			3			3
Consumer indirect loans	1			1			1			2			1
Total consumer loans	186			191			185			195			210
Total nonperforming loans (a)	416			387			390			429			439
OREO	13			13			12			9			8
Nonperforming loans held for sale	18			20			17			25			20
Other nonperforming assets	—			—			—			—			—
Total nonperforming assets	$	447		$	420		$	419		$	463		$	467
Accruing loans past due 90 days or more	55			60			47			41			55
Accruing loans past due 30 through 89 days	164			180			187			137			122




Nonperforming assets from discontinued operations — education lending business	3			3			3			3			4
Nonperforming loans to period-end portfolio loans	.35		%	.32		%	.34		%	.38		%	.41		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.37			.35			.36			.41			.44

(a)On January 1, 2023, Key adopted ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. In connection with the adoption of this guidance, nonperforming loans as of March 31, 2023, includes certain loans which were modified for borrowers experiencing financial difficulty. Prior period amounts included nonperforming troubled debt restructurings (TDRs), for which accounting guidance was eliminated upon adoption of ASU 2022-02 on January 1, 2023. Our first quarter 2023 Form 10-Q will include additional information on our adoption of this ASU.


Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
	1Q23		4Q22		3Q22		2Q22		1Q22
Balance at beginning of period	$	387	$	390	$	429	$	439	$	454
Loans placed on nonaccrual status	143		113		80		118		87

Charge-offs	(60)		(67)		(68)		(59)		(50)
Loans sold	(2)		(4)		(3)		(8)		—
Payments	(31)		(22)		(29)		(35)		(27)
Transfers to OREO	(2)		(1)		(1)		(2)		(1)


Loans returned to accrual status	(19)		(22)		(18)		(24)		(24)
Balance at end of period	$	416	$	387	$	390	$	429	$	439

KeyCorp Reports First Quarter 2023 Profit

April 20, 2023

Page 23


Line of Business Results
(Dollars in millions)

																Change 1Q23 vs.
	1Q23			4Q22			3Q22			2Q22			1Q22			4Q22		1Q22
Consumer Bank
Summary of operations
Total revenue (TE)	$	842		$	900		$	891		$	824		$	799		(6.4)	%	5.4	%
Provision for credit losses	60			105			37			8			43			(42.9)		39.5
Noninterest expense	675			698			667			675			663			(3.3)		1.8
Net income (loss) attributable to Key	81			74			142			107			71			9.5		14.1
Average loans and leases	43,086			43,149			42,568			40,827			38,654			(.1)		11.5
Average deposits	84,492			87,243			90,044			91,273			91,516			(3.2)		(7.7)
Net loan charge-offs	24			21			17			23			22			14.3		9.1
Net loan charge-offs to average total loans	.23		%	.19		%	.16		%	.23		%	.23		%	21.1		—
Nonperforming assets at period end	$	196		$	202		$	195		$	203		$	217		(3.0)		(9.7)
Return on average allocated equity	8.98		%	8.78		%	16.20		%	11.66		%	8.02		%	2.3		12.0


Commercial Bank
Summary of operations
Total revenue (TE)	$	841		$	928		$	889		$	842		$	808		(9.4)	%	4.1	%
Provision for credit losses	80			165			74			37			41			(51.5)		95.1
Noninterest expense	428			461			451			410			414			(7.2)		3.4
Net income (loss) attributable to Key	264			250			295			317			284			5.6		(7.0)
Average loans and leases	76,306			74,100			71,464			67,825			64,684			3.0		18.0
Average loans held for sale	876			1,377			1,036			1,016			1,323			(36.4)		(33.8)
Average deposits	52,185			54,385			52,272			54,846			57,241			(4.0)		(8.8)
Net loan charge-offs	21			25			27			21			11			(16.0)		90.9
Net loan charge-offs to average total loans	.11		%	.13		%	.15		%	.12		%	.07		%	(15.4)		57.1
Nonperforming assets at period end	$	251		$	218		$	224		$	260		$	250		15.1		.4
Return on average allocated equity	10.39		%	10.40		%	12.63		%	14.26		%	13.26		%	(.1)		(21.6)

TE = Taxable Equivalent

KeyCorp First Quarter 2023 Earnings Review April 20, 2023 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Executive Vice President and Chief Financial 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, 2022, 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” and “cash efficiency ratio.” 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 89 of our Form 10-K dated December 31, 2022. GAAP: Generally Accepted Accounting Principles 2

Well Positioned for Dynamic Market Conditions Positioned to deliver sound, profitable growth ✓ Durable, relationship-based business model provides stability and positions Key to perform through the cycle ✓ Diverse core deposit base driven by a sustained focus on primacy ✓ Strong liquidity position - capacity exceeds the level of uninsured deposits ✓ Disciplined capital management with earnings and near-term maturities adding to accretion ✓ Improved risk profile driving strong credit performance ✓ Differentiated franchise with long-term earnings power and balance sheet tailwinds 3

4 ▪ EPS of $.30 per diluted common share ‒ Includes $64MM(1) of charges related to expense actions ‒ Includes $94MM(1) related to reserve build ▪ Grew and expanded relationships ‒ Supported clients on and off-balance sheet ‒ Market disruption providing opportunity for client acquisition ▪ Positioned balance sheet for rate environment ‒ Managed downside risk and maintained significant upside potential ‒ Took action to realize benefit from higher rates ▪ Strong liquidity and funding position ‒ Diverse core deposit base, focused on primary relationships ‒ Liquidity capacity exceeds the level of uninsured deposits ▪ Robust capital and credit profile ‒ NCOs to average loans of 15 bps ‒ CET1 - 9.1%(2) Results 2023 Outlook and Updates ▪ Supporting relationship clients through dynamic market conditions ‒ Offering on and off-balance sheet solutions ▪ Opportunistically locking in future benefit ‒ Maintaining significant upside while managing downside risk ▪ Maintaining strong credit quality ‒ Positioned to outperform through the cycle ‒ Limited exposure to office and lodging 1Q23 Highlights ▪ Key Wealth Management ‒ Focusing on growth of mass affluent retail relationships ▪ Laurel Road ‒ Expanding to hospital systems in 2023 ▪ Relationship Manager Productivity ‒ Building tools to enhance RM efficiency and improve profitability Strategic Highlights (1) Pre-tax (2) 3/31/2023 ratios are estimated and reflect Key's election to adopt the CECL optional transition provision

Financial Review

EOP = End of Period; (1) Non-GAAP measure: see appendix for reconciliation; (2) 3/31/2023 ratios are estimated and reflect Key's election to adopt the CECL optional transition provision 6 EPS – assuming dilution $.30 $ .38 $ .45 (21.1) % (33.3) % Cash efficiency ratio(1) 68.0 % 60.3 % 62.4 % 770 bps 560 bps Return on average tangible common equity(1) 13.2 18.1 14.1 (490) (90) Return on average total assets .66 .83 .99 (17) (33) Net interest margin 2.47 2.73 2.46 (26) 1 Common Equity Tier 1(2) 9.1 % 9.1 % 9.4 % - bps (30) bps Tier 1 risk-based capital(2) 10.6 10.6 10.7 - (10) Tangible common equity to tangible assets(1) 4.6 4.4 6.0 20 (140) NCOs to average loans .15 % .14 % .13 % 1 bps 2 bps NPLs to EOP portfolio loans .35 .32 .41 3 (6) Allowance for credit losses to EOP loans 1.38 1.31 1.19 7 19 Profitability Capital Asset Quality 1Q23 4Q22 1Q22 LQ Δ Y/Y Δ Continuing operations, unless otherwise noted Financial Highlights

Total Average Loans Highlights 7 $72.1 $75.0 $78.4 $81.0 $83.1 $31.6 $34.1 $36.1 $36.7 $36.8 3.28% 3.41% 3.97% 4.57% 5.01% 1.00% 1Q22 2Q22 3Q22 4Q22 1Q23 Loan Yield Consumer Commercial $ in billions ▪ Average loans up 16% from 1Q22 − Growth in C&I and commercial mortgage real estate loans − Growth in consumer mortgage loans ▪ Average loans up 2% from 4Q22 − Growth in C&I loans vs. Prior Year vs. Prior Quarter $103.8 $109.1 $114.4 $117.7 $119.8 Loans Growth driven by relationship-based strategy across commercial and consumer

(1) Cumulative beta indexed to 4Q21 8 $ in billions CDs and other time deposits Savings Noninterest-bearing Demand and MMDA $ in billions 1Q23 Average Deposit Mix 60% 27% 8% 5% Average Consumer Average Commercial $150.2 $143.4 $143.4 Total deposit cost (bp) $147.5 $144.2 $145.7 Deposits Balances remained stable, with continuing mix shift Deposits Highlights ▪ Average deposits down 5% from 1Q22 − Decline in retail balances (-$7.0Bn), reflecting inflation-related spend, normalization, and changing client behavior − Commercial balances, which included $6Bn of brokered deposits in Q1, remained relatively flat ▪ Average deposit balances down 2% from 4Q22 − Decline in retail balances (-$2.7Bn), reflecting a decrease in inflation-related spend, normalization, and changing client behavior − Commercial balances, which included $6Bn of brokered deposits in Q1, remained relatively flat vs. Prior Year vs. Prior Quarter Period-End Consumer Period-End Commercial $144.1 ▪ Cumulative total interest-bearing deposit beta: 29%(1) ▪ Expecting cumulative beta to peak in the low 40s $91.5 $91.3 $90.0 $87.2 $84.5 $83.9 $58.7 $56.2 $54.2 $58.4 $58.9 $60.2 4 6 16 51 99 1Q22 2Q22 3Q22 4Q22 1Q23

73% 85% 84% 1Q22 4Q22 1Q23 9 $ in billions, as of 3/31/2023 ▪ 54% of deposits are from consumers, wealth clients, and small businesses ▪ 78% from markets where Key maintains top-5 deposit share ▪ $8Bn of deposits are from low-cost, stable escrow balances ▪ $13.7Bn of uninsured deposits are collateralized by government-backed securities ▪ 81% of commercial segment deposit balances are from core operating accounts 1Q23 Mix by Insurance Coverage 59% 32% 5% Deposits: A Diverse Core Base Key’s deposit base is made up of over three and a half million retail, small business, private banking, and commercial clients, with two thirds of balances covered by FDIC insurance or collateralized 1Q23 Mix by Client Highlights 41% 28% 13% 11% 7% Middle Market Business Banking Retail Large Corporate Public Sector Uninsured and Uncollateralized Insured Collateralized 56%34% 10% $144.1 $ in billions 66% of balances insured or collateralized 54% of balances from retail and business banking clients Loan-to-Deposit Ratio(2) (1) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries (2) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits (1)

$ in millions, continuing operations vs. Prior Quarter TE = Taxable equivalent (1) Table may not foot due to rounding $1,020 $1,140 $1,203 $1,227 $1,106 2.46% 2.61% 2.74% 2.73% 2.47% 1Q22 2Q22 3Q22 4Q22 1Q23 ▪ Net interest income up $86MM (+8%), net interest margin increased 1 basis point from 1Q22 − Reflects benefits from higher earning asset balances and higher interest rates − Partially offset by higher interest-bearing deposit costs and a shift in funding mix ▪ Net interest income down $121MM (-10%), net interest margin decreased 26 basis points from 4Q22 − Reflects higher interest-bearing deposit costs, a change in funding mix, and two fewer days in the quarter − Partially offset by the benefit of higher interest rates and earning asset balances 10 vs. Prior Year Net Interest Income (TE) Net Interest Margin (TE) Linked quarter benefit of higher interest rates and earning assets offset by interest-bearing deposit costs and funding mix shift Net Interest Income and Margin Net Interest Income & Net Interest Margin Trend (TE) Highlights Net Interest Margin Walk (TE)(1) and Illustrative Gain Higher rates & earning asset growth IB deposit costs Funding mix & liquidity 1Q234Q22 Ex: Treasuries & swaps 1Q23 Ex. Treasuries & swaps

11 Expecting significant benefit from swap and Treasury maturities Net Interest Income Opportunities Illustrative, $ in millions NII Pickup from Short-dated Maturities(1) $10 $34 $56 $76 $85 $97 $109 $6 $11 $17 $29 $50 $71 $28 $41 $66 $92 $114 $147 $180 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 ~$720MM annualized NII benefit by 1Q25 ~$1Bn annualized NII benefit by 1Q25 - assuming “higher for longer” (1) Assumes the forward curve and maturities to occur on the last day of each quarter Treasuries Swaps

12 ▪ Noninterest income down $68MM (-10%) from 1Q22 − Lower service charges on deposit accounts (-$24MM) driven by new client friendly fee structure for NSF/OD fees and lower account analysis fees due to the interest rate environment − Lower investment banking and debt placement fees (-$18MM) reflecting lower syndication fees, partly offset by an increase in advisory fees − Corporate services income declined (-$15MM) primarily due to lower loan fees and a market-related adjustment in the prior period vs. Prior Quarter ▪ Noninterest income down $63MM (-9%) from 4Q22 − Lower investment banking and debt placement fees (-$27MM) reflecting lower advisory and syndication fees − Other income declined (-$20MM) driven by market-related valuation adjustments and a Visa litigation adjustment − Lower corporate services income (-$13MM) reflecting lower derivatives volume vs. Prior Year $ in millions - up / (down) 1Q23 vs. 1Q22 vs. 4Q22 Trust and investment services income $ 128 $ (8) $ 2 Investment banking and debt placement fees 145 (18) (27) Cards and payments income 81 1 (4) Service charges on deposit accounts 67 (24) (4) Corporate services income 76 (15) (13) Commercial mortgage servicing fees 46 10 4 Corporate-owned life insurance 29 (2) (4) Consumer mortgage income 11 (10) 2 Operating lease income and other leasing gains 25 (7) (1) Other income - 5 (20) Total noninterest income $ 608 $ (68) $ (63) Growth from trust and investment services income offset by lower deposit service charges, investment banking and debt placement as expected Noninterest Income Noninterest Income Highlights

13 vs. Prior Quarter vs. Prior Year ▪ Noninterest expense up $106MM (+10%) from 1Q22 − Higher personnel expense (+$71MM) reflecting $36MM of severance and other costs related to efficiency actions, and higher salaries and headcount growth − Higher other expense (+$47MM) reflecting $28MM of other costs related to efficiency actions and an increase in the base FDIC assessment rate of $9MM ▪ Noninterest expense up $20MM (+2%) from 4Q22 − Higher personnel expense (+$27MM) reflecting $36MM of severance and other costs related to efficiency actions, partly offset by lower incentive compensation − Higher other expense (+$10MM) reflecting $28MM of other costs related to efficiency actions and an increase in the base FDIC assessment rate of $9MM, partly offset by the timing of a charitable contribution in the prior period Completed actions this quarter which represented $200MM in annualized benefit to allow for investment while keeping costs stable Noninterest Expense Noninterest Expense Highlights $ in millions - favorable / (unfavorable) 1Q23 vs. 1Q22 vs. 4Q22 Personnel $ 701 $ (71) $ (27) Net occupancy 70 3 2 Computer processing 92 (15) (10) Business services and professional fees 45 8 15 Equipment 22 1 (2) Operating lease expense 20 8 2 Marketing 21 7 10 Other expense 205 (47) (10) Total noninterest expense $ 1,176 $(106) $ (20)

$1,271 $1,272 $1,338 $1,562 $1,656 290% 297% 343% 404% 398% 1Q22 2Q22 3Q22 4Q22 1Q23 Allowance for credit losses to NPLsAllowance for credit losses 1Q23 allowance for credit losses to period-end loans of 1.38%$ in millions NCO = Net charge-off NPL = Nonperforming Loans 14 Criticized Outstandings(1) to Period-end Total Loans $33 $44 $43 $41 $45 $83 $45 $109 $265 $1390.13% 0.16% 0.15% 0.14% 0.15% 1Q22 2Q22 3Q22 4Q22 1Q23 $ in millions NCOs Provision for credit losses NCOs to avg. loans Allowance for Credit Losses (ACL) 2.5% 2.3% 2.5% 2.5% 2.8% 1Q22 2Q22 3Q22 4Q22 1Q23 Continuing Operations Disciplined underwriting with net charge-offs remaining near historically low levels Credit Quality Net Charge-offs & Provision for Credit Losses Delinquencies to Period-end Total Loans Continuing Operations 0.11% 0.12% 0.16% 0.15% 0.14% 0.05% 0.04% 0.04% 0.05% 0.05% 1Q22 2Q22 3Q22 4Q22 1Q23 30 – 89 days delinquent 90+ days delinquent

12% 2% 14% 14% 26% 16% Pre-Crisis (2006) 2022 Construction Commercial Mortgage Credit Quality: Prudently Managing CRE We have meaningfully de-risked our business by repositioning our commercial real estate (CRE) portfolio following the global financial crisis ➔ Key’s CRE exposure has declined significantly, and we remain rigorously focused on managing risk (1) Source: FFIEC 031 Call Report, Schedule RC-C, data as of 12/31/2006, 12/31/2022; (2) Source: Federal Reserve Bank 2022 Stress Test Results, peers exclude CMA, ZION as they were not subject to 2022 stress tests Repositioned Portfolio Stressed Scenario Losses Key has significantly reduced total CRE exposure and rebalanced the portfolio away from construction, focusing on relationship lending with owners and operators Key’s latest stress test results were top quartile vs. peers ➔ Key derives a distinctive risk management capability from our CRE loan servicing business, which provides us with unique sector insights 8.2% 11.5% Key Peer Median 2022 Projected CRE Losses as % of Total(2)CRE Loans as a % of Total(1) 15

16 Prudent management – capacity comfortably exceeds the level of uninsured deposits Liquidity Additional Available Liquidity $ in billions, as of 3/31/2023 Liquidity Sources Federal Reserve Cash Balance ~$8 Unpledged Investment Securities ~16 Available FHLB Borrowing Capacity ~7 Fed Availability ~45 Total ~$76 Vs. Uninsured / Uncollateralized Deposits(1) ~$49 (1) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries

9.4% 9.2% 9.1% 9.1% 9.1% 1Q22 2Q22 3Q22 4Q22 1Q23 $5.5 $4.3 $3.3 1 2 3 (1) 3/31/23 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision 17 Strong, stable position within targeted range, with significant AOCI accretion expected over the next 7 quarters Capital Common Equity Tier 1(1) Illustrative, $ in billions Projected AOCI Accretion Target operating range: 9% - 9.5% ▪ Priorities remain unchanged: focused on organic growth and dividends ▪ Increased dividend 5% to $.205 per common share in 4Q22 3/31/23 12/31/24 ~40% Burn down ~90% from maturities and cash flows, ~10% due to rate benefit 12/31/23

Full Year 2023 (vs. Full Year 2022) 18 Average Balance Sheet • Loans: up 6% - 9% • Deposits: flat to down 2% Net Interest Income (TE) • Net interest income: down 1% - 3% (previously up 1% - 4%) Noninterest Income • Noninterest income: down 1% - 3% Noninterest Expense • Noninterest expense: relatively stable – including $64MM of charges in 1Q23 related to expense actions Credit Quality • Net charge-offs to average loans: 25 – 30 bps Taxes • GAAP tax rate: 20% - 21% (previously 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% 2023 Outlook Updated Guidance (as of 4/20/2023) ➔ Changes reflected in red

Appendix

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 82% 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, high-quality borrowers ▪ Aligning bankers to areas of market opportunity and growth - investing in strategic hires with industry vertical expertise ▪ Small, stable leveraged portfolio: ~2.2% of total loans ▪ C&I loan utilization: 32% in 1Q23 ▪ 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 select owners and operators ▪ Strategic focus in multifamily, primarily affordable housing Real Estate Public Sector Commercial Real Estate (CRE) 20 $ in millions 3/31/23 % of total loans Commercial and industrial $ 60,565 50% Commercial real estate 18,938 16 Commercial lease financing 3,763 3 Total Commercial $ 83,266 69% ~56% of C&I portfolio is investment grade Commercial Loan Portfolio Detail Total Commercial Loans Commercial & Industrial (C&I)

Commercial Real Estate Loan Portfolio Detail Key has limited exposure to riskier asset classes like office, lodging, and retail Portfolio by Asset Class Office Loan Detail 21 $ in millions, non-owner occupied 3/31/23 % of total loans Multifamily $ 8,934 7% Industrial 824 <1 Retail 1,253 1 Seniors Housing 905 <1% Office 950 <1% Class B and C Office in Central Business Districts 128 N/A Lodging 212 <1% Other 2,130 1.8 Total Non-owner Occupied Commercial Real Estate $ 15,208 13% (1) Source: 10-K filing data as of 12/31/2022 – peers include JPM, BAC, USB, PNC, WFC, MTB, CFG, and ZION, as others do not report data on office balances 0.8% 2.9% Key Peer Median ▪ $30% to mature in 2023 ($285MM) ▪ $0 non-owner occupied construction ▪ Delinquencies: ▪ 30 – 89 Day: 0.05% ▪ 90+ day: 0.01% 39% 17%13% 30% $950 Build to Suit Central Business District - Other Suburban $ in millions Office Loans as a Portion of Total Loans (1) Highlights Central Business District - Class B and C

(1) From continuing operations 22 Metric(1) 1Q23 4Q22 3Q22 2Q22 1Q22 Delinquencies to EOP total loans: 30-89 days .14 % .15 % .16 % .12 % .11 % Delinquencies to EOP total loans: 90+ days .05 .05 .04 .04 .05 NPLs to EOP portfolio loans .35 .32 .34 .38 .41 NPAs to EOP portfolio loans + OREO + Other NPAs .37 .35 .36 .41 .44 Allowance for credit losses to period-end loans 1.38 1.31 1.15 1.13 1.19 Allowance for credit losses to NPLs 398 404 343 297 290 Credit Quality Nonperforming Loans $439 $429 $390 $387 $416 .41% .38% .34% .32% .35% 1Q22 2Q22 3Q22 4Q22 1Q23 NPLs NPLs to period-end loans $ in millions

23 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 (%) 3/31/23 1Q23 1Q23 1Q23 3/31/23 3/31/23 3/31/23 3/31/23 Commercial and industrial(1) $ 60,565 $ 60,281 $ 27 .18% $ 170 $ 605 1.00% 355.88% Commercial real estate: Commercial Mortgage 16,348 16,470 5 .12 59 218 1.33 369.49 Construction 2,590 2,525 - - - 28 1.08 - Commercial lease financing(2) 3,763 3,783 (2) (.21) 1 33 .88 N/M Real estate – residential mortgage 21,632 21,436 (1) (.02) 75 212 .98 282.67 Home equity 7,706 7,879 - - 104 96 1.25 92.31 Consumer direct loans 6,359 6,439 9 .57 3 116 1.82 N/M Credit cards 969 983 8 3.30 3 71 7.33 N/M Consumer indirect loans 39 41 (1) 9.89 1 1 2.56 100.00 Continuing total $ 119,971 $ 119,837 $ 45 .15% $ 416 $ 1,380 1.15% 331.73% Discontinued operations 407 418 1 0.97 3 19 4.67 633.33 Consolidated total $ 120,378 $ 120,255 $ 46 .16% $ 419 $ 1,399 1.16% 333.89% $ in millions (1) Loan balance includes $185 million of commercial credit card balances at March 31, 2023; (2) Commercial lease financing includes receivables held as collateral for a secured borrowing of $6 million at March 31, 2023. 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 Credit Quality by Portfolio

$2.6 $3.2 $1.9 $1.0 $0.6 1Q22 2Q22 3Q22 4Q22 1Q23 Origination Volume $820 $445 $194 $118 $100 1Q22 2Q22 3Q22 4Q22 1Q23 Origination Volume $ in millions $ in billions Note: Table may not foot due to rounding (1) Indirect auto portfolio was sold on 9/10/21 ▪ High-quality client base: targeting healthcare professionals ▪ Expands Key’s digital reach and consumer franchise nationally through targeted scale (doctor/dentist clients in all 50 states) ▪ Expanded to hospitals in 2023 and have signed contracts with two of the Top-25 hospital systems in the U.S. ▪ Launched new, fee-based Income Driven Repayment Student Loan Product with early results outpacing expectations 24 $ in millions 3/31/23 % of total loans WA FICO at origination Consumer mortgage $ 21,632 18% 759 Home equity 7,706 6 810 Consumer direct 6,359 5 741 Credit card 969 1 793 Consumer indirect(1) 39 N/A N/A Total Consumer $ 36,705 31% 771 Consumer Loan Portfolio Detail Consumer Mortgage Total Consumer Loans Laurel Road

$0.5 $0.4 $0.7 $1.5 $2.6 $2.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 (1) Loan statistics based on 3/31/2023 ending balances; (2) Deposit statistics based on 3/31/2023 average balances; (3) Yield is calculated on the basis of amortized cost; (4) Includes ~$300MM of Treasuries maturing in 1Q25 Loan Composition(1) Deposit Mix(2) ▪ Attractive business model with relationship-oriented lending franchise − Distinctive commercial capabilities drive C&I growth and ~64% floating-rate loan mix − Laurel Road and consumer mortgage enhance fixed rate loan volumes with attractive client profile ▪ Investment portfolio positioned to provide liquidity and enhance returns while benefiting from higher reinvestment rates − Objectives include investing in mortgage-backed securities with lower prepayment risks and limited exposure to unamortized premiums − ~$9Bn in short-dated Treasury maturities provide near-term upside to higher rates 25 Noninterest- bearing 27% Interest- bearing 73% WA yield on portfolio 0.43% $7.2 $7.3 $7.9 $8.3 $8.9 $44.9 $43.0 $42.3 $39.2 $39.2 1.64% 1.75% 1.85% 1.91% 1.98% 1Q22 2Q22 3Q22 4Q22 1Q23 Average AFS securities Average yield(3)Average HTM securities $ in billions Average Total Investment Securities Balance Sheet Management Detail 1Q23 Balance Sheet Highlights Highlights $ in billions .48% .44% .45% .29%.17%.28% $52.1 $50.3 $50.2 $47.5 Short-term Treasury Maturities(4) $48.1 Prime 8% 1M LIBOR 8% 3M LIBOR 3% Other 8% SOFR 37% Fixed 36%

(1) Non-zero loan floors; (2) $5.2Bn of swaps set to mature in 2025; $9.1Bn in 2026 (3) Chart includes forward-starting swaps and floor spreads since 4Q22 ▪ Recent actions position Key to benefit from higher rates while maintaining significant upside potential ▪ Balancing desire to lock in potential benefit in the midst of macroeconomic uncertainty and an inverted yield curve − Sensitive to the level of expected tightening while preparing for potential economic weakness − Mindful towards increased levels of current and expected volatility ▪ Continually evaluating opportunities to protect and enhance NII and capital while taking a measured approach to swap replacement 26 WA Receive fixed rate (2Q23-4Q24): 0.45% Hedging Strategy Opportunistically locking in future benefit while managing downside risk Hedge Portfolio Recent ALM Hedge Actions(3) $1.7 $0.6 $2.3 $2.4 $1.3 $1.9 $1.9 $0.0 $1.0 $2.0 $3.0 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Total Cash Flow Hedges WA Receive Rate on Maturities .37% .27% .41% .34% .65% .57% .53% $2.0 $3.3 $3.5 $3.5 $2.9 $1.2 $3.3 $3.3 $2.5 ($1.0) $1.0 $3.0 $5.0 $7.0 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2025 2026 Forward-Starting Swaps Floor Spreads • Added $3Bn of forward-starting receive fixed swaps - WA receive rate: 3.4% • Executed $3.3Bn of forward-starting floor spreads - WA buy strike: 3.4%, WA sold strike: 2.3% 1Q23 QTD Interest Rate Swap Maturities(2) $ in billions $ in billions $ in billions 3/31/23 A/LM Hedges $ 27.0 A/LM Forward Hedges 7.3 Debt Swaps 11.2 Securities Hedges 1.4 Non-zero Loan Floors 8.3

$3.0 $3.0 $1.8 $5.0 $13.0 $5.0 $8.0 $16.0 $6.8 2023** 2024 2025 27 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 securities: 2.3% ▪ Average balances reflect redeployment of cash into higher yielding securities − ~85% of 1Q23 reinvestment ($1.2Bn) designated as held-to- maturity ▪ New investment opportunities at higher yields than runoff ‒ 1Q23 purchases ~4.90% compared to ~2.0% runoff ▪ Portfolio constructed to enhance current returns on excess liquidity, while preserving the opportunity 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 (~$1.3Bn per quarter in the near-term) ‒ Short-term Treasury/Agency portfolio consists of a laddered maturity profile with runoff beginning in second half of 2023 ▪ Available for sale portfolio duration of 5.4 years at 3/31/2023 (duration including securities hedges) Existing Portfolio Repricing Characteristics Highlights (1) 2023 Projected cashflows do not include realized cashflows from 1Q23 Investment Portfolio $ in billions (1)

28 Securities Maturity Schedule Available for Sale (AFS) Held-to-Maturity (HTM) Remaining maturity, as of March 31, 2023 $ in millions Agency Residential Collateralized Mortgage Obligations Agency Residential Mortgage- backed Securities Agency Commercial Mortgage- backed Securities Asset- backed Securities Other Total One year or less $ 10 $ - $ 5 $ 2 $ 4 $ 21 After 1 through 5 years 2,187 124 1,958 1,217 11 5,497 After 5 through 10 years 2,553 53 585 - - 3,191 After 10 years 816 - 36 - - 852 Amortized Cost 5,566 177 2,584 1,219 15 9,561 Fair Value 5,349 165 2,402 1,155 14 9,085 Remaining maturity, as of March 31, 2023 $ in millions U.S. Treasury, Agencies, and Corporations Agency Residential Collateralized Mortgage Obligations Agency Residential Mortgage- backed Securities Agency Commercial Mortgage- backed Securities Total One year or less $ 1,774 $ 59 $ 2 $ 52 $ 1,887 After 1 through 5 years 7,476 1,979 2,889 2,332 14,676 After 5 through 10 years 157 11,211 750 6,058 18,176 After 10 years 107 3,176 259 1,217 4,759 Fair Value 9,514 16,425 3,900 9,659 39,498

29 $ in millions (1) For the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, intangible assets exclude $1 million, $2 million, and $2 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus; (3) For the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, average intangible assets exclude $1 million, $2 million, and $3 million, respectively, of average purchased credit card receivables GAAP to Non-GAAP Reconciliation 3/31/2023 12/31/2022 3/31/2022 Tangible common equity to tangible assets at period end Key shareholders' equity (GAAP) 14,322$ 13,454$ 15,308$ Less: Intangible assets (1) 2,836 2,844 2,810 Preferred Stock (2) 2,446 2,446 1,856 Tangible common equity (non-GAAP) 9,040$ 8,164$ 10,642$ Total assets (GAAP) 197,519$ 189,813$ 181,221$ Less: Intangible assets (1) 2,836 2,844 2,810 Tangible assets (non-GAAP) 194,683$ 186,969$ 178,411$ Tangible common equity to tangible assets ratio (non-GAAP) 4.64% 4.37% 5.96% Average tangible common equity Average Key shareholders' equity (GAAP) 13,817$ 13,168$ 16,780$ Less: Intangible assets (average) (3) 2,841 2,851 2,814 Preferred Stock (average) 2,500 2,500 1,900 Average tangible common equity (non-GAAP) 8,476$ 7,817$ 12,066$ Three months ended

30 $ in millions GAAP to Non-GAAP Reconciliation 3/31/2023 12/31/2022 3/31/2022 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) 275$ 356$ 420$ Average tangible common equity (non-GAAP) 8,476 7,817 12,06621.19 Return on average tangible common equity from continuing operations (non-GAAP) 13.16% 18.07% 14.12% Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) 276$ 356$ 421$ Average tangible common equity (non-GAAP) 8,476 7,817 12,066 Return on average tangible common equity consolidation (non-GAAP) 13.21% 18.07% 14.15% Cash efficiency ratio Noninterest expense (GAAP) 1,176$ 1,156$ 1,070$ Less: Intangible asset amortization 10 12 11 Adjusted noninterest expense (non-GAAP) 1,166$ 1,144$ 1,059$ Net interest income (GAAP) 1,099$ 1,220$ 1,014$ Plus: Taxable-equivalent adjustment 7 7 6 Noninterest income 608 671 676 Total taxable-equivalent revenue (non-GAAP) 1,714$ 1,898$ 1,696$ Cash eff iciency ratio (non-GAAP) 68.0% 60.3% 62.4% Three months ended


Consolidated Balance Sheets
(dollars in millions)

			3/31/2023		12/31/2022		3/31/2022
Assets
	Loans		$	119,971	$	119,394	$	106,600
	Loans held for sale		1,211		963		1,170
	Securities available for sale		39,498		39,117		43,681
	Held-to-maturity securities		9,561		8,710		6,871
	Trading account assets		1,118		829		848
	Short-term investments		8,410		2,432		3,881
	Other investments		1,587		1,308		722
		Total earning assets	181,356		172,753		163,773
	Allowance for loan and lease losses		(1,380)		(1,337)		(1,105)
	Cash and due from banks		784		887		684
	Premises and equipment		628		636		647
	Goodwill		2,752		2,752		2,694
	Other intangible assets		85		94		118
	Corporate-owned life insurance		4,372		4,369		4,340
	Accrued income and other assets		8,512		9,223		9,544
	Discontinued assets		410		436		526
		Total assets	$	197,519	$	189,813	$	181,221

Liabilities
	Deposits in domestic offices:





		Interest-bearing deposits	106,841		101,761		98,239
		Noninterest-bearing deposits	37,307		40,834		50,424
		Total deposits	144,148		142,595		148,663
	Federal funds purchased and securities sold under repurchase agreements		1,374		4,077		599
	Bank notes and other short-term borrowings		10,061		5,386		2,222
	Accrued expense and other liabilities		4,861		4,994		3,615
	Long-term debt		22,753		19,307		10,814
		Total liabilities	183,197		176,359		165,913

Equity
	Preferred stock		2,500		2,500		1,900
	Common shares		1,257		1,257		1,257
	Capital surplus		6,207		6,286		6,214
	Retained earnings		15,700		15,616		14,793
	Treasury stock, at cost		(5,868)		(5,910)		(5,927)
	Accumulated other comprehensive income (loss)		(5,474)		(6,295)		(2,929)
		Key shareholders’ equity	14,322		13,454		15,308
	Noncontrolling interests		—		—		—
		Total equity	14,322		13,454		15,308
Total liabilities and equity			$	197,519	$	189,813	$	181,221

Common shares outstanding (000)			935,229		933,325		932,398


Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended						Three months ended
			3/31/2023		12/31/2022		3/31/2022		3/31/2023		3/31/2022
Interest income
	Loans		$	1,476	$	1,347	$	837	$	1,476	$	837
	Loans held for sale		13		20		12		13		12
	Securities available for sale		194		195		173		194		173
	Held-to-maturity securities		74		64		46		74		46
	Trading account assets		12		10		6		12		6
	Short-term investments		42		48		4		42		4
	Other investments		13		11		2		13		2
		Total interest income	1,824		1,695		1,080		1,824		1,080
Interest expense
	Deposits		350		186		14		350		14
	Federal funds purchased and securities sold under repurchase agreements		22		16		—		22		—
	Bank notes and other short-term borrowings		78		54		3		78		3
	Long-term debt		275		219		49		275		49
		Total interest expense	725		475		66		725		66
Net interest income			1,099		1,220		1,014		1,099		1,014
Provision for credit losses			139		265		83		139		83
Net interest income after provision for credit losses			960		955		931		960		931
Noninterest income
	Trust and investment services income		128		126		136		128		136
	Investment banking and debt placement fees		145		172		163		145		163
	Service charges on deposit accounts		67		71		91		67		91
	Operating lease income and other leasing gains		25		24		32		25		32
	Corporate services income		76		89		91		76		91
	Cards and payments income		81		85		80		81		80
	Corporate-owned life insurance income		29		33		31		29		31
	Consumer mortgage income		11		9		21		11		21
	Commercial mortgage servicing fees		46		42		36		46		36
	Other income		—		20		(5)		—		(5)
		Total noninterest income	608		671		676		608		676
Noninterest expense
	Personnel		701		674		630		701		630
	Net occupancy		70		72		73		70		73
	Computer processing		92		82		77		92		77
	Business services and professional fees		45		60		53		45		53
	Equipment		22		20		23		22		23
	Operating lease expense		20		22		28		20		28
	Marketing		21		31		28		21		28

	Intangible asset amortization		—		—		—		—		—

	Other expense		205		195		158		205		158
		Total noninterest expense	1,176		1,156		1,070		1,176		1,070
Income (loss) from continuing operations before income taxes			392		470		537		392		537
	Income taxes		81		76		90		81		90
Income (loss) from continuing operations			311		394		447		311		447
	Income (loss) from discontinued operations, net of taxes		1		—		1		1		1
Net income (loss)			312		394		448		312		448
	Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income (loss) attributable to Key			$	312	$	394	$	448	$	312	$	448

Income (loss) from continuing operations attributable to Key common shareholders			$	275	$	356	$	420	$	275	$	420
Net income (loss) attributable to Key common shareholders			276		356		421		276		421
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.30	$	.38	$	.45	$	.3	$	.45
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			.30		.38		.46		.3		.46
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.30	$	.38	$	.45	$	.30	$	.45
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			.30		.38		$	.45	.30		.45

Cash dividends declared per common share			$	.205	$	.205	$	.195	$	.205	$	.195

Weighted-average common shares outstanding (000)			926,490		924,974		922,941		926,490		922,941
	Effect of common share options and other stock awards		7,314		8,750		10,692		7,314		10,692
Weighted-average common shares and potential common shares outstanding (000) (b)			933,804		933,724		933,634		933,804		933,634

(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.