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

CURRENT REPORT
Pursuant to Section 13 or 15(d)
 of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 21, 2025
 
KeyCorp
keylogoa11.jpg
(Exact name of registrant as specified in its charter)
 
Ohio
001-11302
34-6542451
State or other jurisdiction of incorporation or organization:Commission File NumberI.R.S. Employer Identification Number:
127 Public Square,
Cleveland,
Ohio
44114-1306
Address of principal executive offices:Zip Code:

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

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


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

    Emerging growth company ☐

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



Item 2.02     Results of Operations and Financial Condition.

    On January 21, 2025, KeyCorp issued a press release announcing its financial results for the three- and twelve-month periods ended December 31, 2024 (the “Press Release”), and posted on its website its fourth quarter 2024 Supplemental Information Package (the “Supplemental Information Package”). The Press Release and Supplemental Information Package are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

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

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

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

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




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


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KEYCORP
(Registrant)
Date: January 21, 2025/s/ Stacy L. Gilbert
By: Stacy L. Gilbert
Chief Accounting Officer




keylogoicononlyrgba01a.jpg

KEYCORP REPORTS FOURTH QUARTER 2024 NET LOSS OF $(279) MILLION,
OR $(.28) PER DILUTED COMMON SHARE, AND ADJUSTED NET INCOME OF $378 MILLION, OR $.38 PER DILUTED COMMON SHARE(a)


Revenue of $865 million; Adjusted for selected items(a), revenue up 16% year-over-year

Net interest income up 10% linked quarter

Momentum across investment banking, payments, and wealth management fees up 27% year-over-year

Common Equity Tier 1 ratio increased 120 basis points quarter-over-quarter to 12%(b)



    CLEVELAND, January 21, 2025 - KeyCorp (NYSE: KEY) today announced a net loss from continuing operations attributable to Key common shareholders of $(279) million, or $(.28) per diluted common share, or adjusted net income of $378 million or $.38 per diluted common share(a), for the fourth quarter of 2024. Included in the fourth quarter of 2024 are $(657) million, or $(.66) per diluted common share, after-tax, of charges related to the loss on the sale of securities(c). For the third quarter of 2024, KeyCorp reported a net loss from continuing operations attributable to Key common shareholders of $(447) million, or $(.47) per diluted common share, or adjusted net income of $285 million or $.30 per diluted common share(a). Net income from continuing operations attributable to Key common shareholders was $30 million, or $.03 per diluted common share, or adjusted net income of $239 million or $.25 per diluted common share(a), for the fourth quarter of 2023. During the quarter, Key and Scotiabank received regulatory approval to complete Scotiabank's minority investment in Key as announced on August 12, 2024.
Comments from Chairman and CEO, Chris Gorman
"Our fourth quarter results marked a strong finish to the year. EPS and revenue were impacted by the previously communicated completion of our securities portfolio repositioning. On an adjusted basis(a), revenues were up 16% year-over-year and 11% sequentially. Net interest income was up 10% quarter-over-quarter and fees (as adjusted(a)), were up meaningfully versus comparable periods. We achieved year-over-year positive operating leverage for a second consecutive quarter. On a linked quarter basis, net charge-offs were down 26% and criticized loans down 7%.

Our strong financial results are a function of continued client momentum. Relationship households were up 3%, client deposits were up 4%, and AUM increased to a record level of $61 billion in 2024. We continued to drive significant progress in each of our strategic, fee-based businesses – wealth management, commercial payments, and investment banking.

I am very proud of all that our team accomplished in 2024. As we turn the page to 2025, we celebrate KeyBank’s 200th anniversary, a remarkable milestone that reflects the hard work of our teammates over the past two centuries, and their collective dedication to our clients. With strong performance momentum and a leading capital position, we are well positioned for sound, profitable growth in 2025 and beyond.”



(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “adjusted earnings per share", "adjusted taxable-equivalent revenues", "adjusted noninterest income", and "adjusted net income.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b) December 31, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(c) See table on page 25 for more information on Selected Items Impact on Earnings.



KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 2

Selected Financial Highlights
Dollars in millions, except per share dataChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Income (loss) from continuing operations attributable to Key common shareholders$(279)$(447)$30 37.6 %N/M
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
(.28)(.47).03 40.4 N/M
Return on average tangible common equity from continuing operations (a)
(9.69)%(16.98)%1.46 %N/AN/A
Return on average total assets from continuing operations(.52)(.87).14 N/AN/A
Common Equity Tier 1 ratio (b)
12.0 10.8 10.0 N/AN/A
Book value at period end$14.21 $14.53 $13.02 (2.2)9.1 
Net interest margin (TE) from continuing operations2.41 %2.17 %2.07 %N/AN/A
(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)December 31, 2024 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millionsChange 4Q24 vs.
 4Q243Q244Q233Q244Q23
Net interest income (TE)$1,061 $964 $928 10.1 %14.3 %
Noninterest income(196)(269)610 27.1 (132.1)
Total revenue (TE)$865 $695 $1,538 24.5 %(43.8)%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $1.1 billion for the fourth quarter of 2024 and the net interest margin was 2.41%. Compared to the fourth quarter of 2023, net interest income increased by $133 million, and the net interest margin increased by 34 basis points. The increase in net interest income and the net interest margin reflect the reinvestment of proceeds from maturing investment securities into higher yielding investments, the maturity of lower-yielding interest rate swaps with negative carry that were terminated in 2023, and the first tranche of the repositioning of the available-for-sale portfolio of $7.0 billion during the third quarter of 2024. In addition, during the fourth quarter of 2024, Key completed the second tranche of the available-for-sale portfolio repositioning, which involved the sale and reinvestment of approximately $3.0 billion of lower-yielding mortgaged-backed securities into higher-yielding investments. Net interest income and the net interest margin also benefited from an increase in lower-cost deposits, which contributed to the decline in wholesale borrowings. These benefits were partially offset by a decline in loan balances and the impact of lower interest rates on repricing earning assets.

Compared to the third quarter of 2024, taxable-equivalent net interest income increased by $97 million, and the net interest margin increased by 24 basis points. Net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher-yielding investments, the repositioning of the available-for-sale portfolio, the maturity of amortizing interest rate swaps with negative carry, and an improved funding mix.


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 3

Noninterest Income
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Trust and investment services income$142 $140 $132 1.4 %7.6 %
Investment banking and debt placement fees221 171 136 29.2 62.5 
Cards and payments income85 84 84 1.2 1.2 
Service charges on deposit accounts65 67 65 (3.0)— 
Corporate services income69 69 67 — 3.0 
Commercial mortgage servicing fees68 73 48 (6.8)41.7 
Corporate-owned life insurance income36 36 36 — — 
Consumer mortgage income16 12 11 33.3 45.5 
Operating lease income and other leasing gains15 16 22 (6.3)(31.8)
Other income(5)(2)13 150.0(138.5)
Net securities gains (losses)(908)(935)(4)2.9N/M
Total noninterest income$(196)$(269)$610 27.1 %(132.1)%
N/M = Not Meaningful
    
Compared to the fourth quarter of 2023, noninterest income decreased by $806 million. The decrease was driven by a $915 million loss on the sale of securities as part of a strategic repositioning of the portfolio, as well as a $3 million loss related to the Scotiabank investment agreement valuation in the fourth quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. The decline was partly offset by an $85 million increase in investment banking and debt placement fees, reflective of stronger syndication fees, underwriting fees, and merger and acquisition fees, as well as a $20 million increase in commercial mortgage servicing fees.

Compared to the third quarter of 2024, noninterest income increased by $73 million, primarily driven by a $50 million increase in investment banking and debt placement fees, reflective of stronger syndication fees and merger and acquisition advisory fees. Additionally, net securities losses declined relative to the prior quarter, reflecting gains from other investment activity in the fourth quarter.

Noninterest Expense
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Personnel expense$734 $670 $674 9.6 %8.9 %
Net occupancy67 66 65 1.5 3.1 
Computer processing107 104 92 2.9 16.3 
Business services and professional fees55 41 44 34.1 25.0 
Equipment20 20 24 — (16.7)
Operating lease expense15 14 18 7.1 (16.7)
Marketing33 21 31 57.1 6.5 
Other expense198 158 424 25.3 (53.3)
Total noninterest expense$1,229 $1,094 $1,372 12.3 %(10.4)%
    Compared to the fourth quarter of 2023, noninterest expense decreased $143 million. The decline was driven by selected items that impacted earnings in the fourth quarter of 2023, which included the FDIC special assessment, efficiency related expenses, and a pension settlement charge in the fourth quarter of 2023, which collectively totaled $275 million. See the Selected Items Impact on Earnings table on page 25 for more information. Partly offsetting the decline was an increase in personnel expense of $60 million due to an increase in incentive and stock-based compensation related to strong capital markets activity, as well as an increase in technology investments.

    Compared to the third quarter of 2024, noninterest expense increased by $135 million. The increase was driven by a $64 million increase in personnel expense, primarily related to incentive and stock-based
compensation, reflective of stronger capital markets activity, as well as an increase in employee benefits. Additionally, there was a $40 million increase in other expense, largely related to seasonal miscellaneous expenses such as charitable donations.


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 4


BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Commercial and industrial (a)
$52,887 $53,121 $56,664 (.4)%(6.7)%
Other commercial loans19,202 19,929 21,942 (3.6)(12.5)
Total consumer loans32,622 33,194 35,342 (1.7)(7.7)
Total loans$104,711 $106,244 $113,948 (1.4)%(8.1)%
(a)Commercial and industrial average loan balances include $216 million, $215 million, and $210 million of assets from commercial credit cards at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
    
Average loans were $104.7 billion for the fourth quarter of 2024, a decrease of $9.2 billion compared to the fourth quarter of 2023, reflective of continued tepid client loan demand. The decline in average loans was mostly driven by a $6.5 billion decline in average commercial loans, due to lower commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined by $2.7 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the third quarter of 2024, average loans decreased by $1.5 billion. Average commercial loans declined by $961 million, primarily driven by a decrease in commercial mortgage real estate loans and commercial and industrial loans. Average consumer loans declined $572 million, driven by lower consumer mortgage and home equity loan balances.

Average Deposits
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Non-time deposits$132,092 $129,901 $130,750 1.7 %1.0 %
Time deposits17,641 17,870 14,326 (1.3)23.1 
Total deposits$149,733 $147,771 $145,076 1.3 %3.2 %
Cost of total deposits2.18 %2.39 %2.06 %N/AN/A
N/A = Not Applicable

    Average deposits totaled $149.7 billion for the fourth quarter of 2024, an increase of $4.7 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.

Compared to the third quarter of 2024, average deposits increased by $2.0 billion, driven by an increase in both consumer and commercial deposit balances.

ASSET QUALITY
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Net loan charge-offs$114 $154 $76 (26.0)%50.0 %
Net loan charge-offs to average total loans.43 %.58 %.26 %N/AN/A
Nonperforming loans at period end$758 $728 $574 4.1 32.1 
Nonperforming assets at period end772 741 591 4.2 30.6 
Allowance for loan and lease losses1,409 1,494 1,508 (5.7)(6.6)
Allowance for credit losses1,699 1,774 1,804 (4.2)(5.8)
Provision for credit losses39 95 102 (58.9)(61.8)
Allowance for loan and lease losses to nonperforming loans186 %205 %263 %N/AN/A
Allowance for credit losses to nonperforming loans224 244 314 N/AN/A
N/A = Not Applicable

    


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 5

    Key's provision for credit losses was $39 million, compared to $102 million in the fourth quarter of 2023 and $95 million in the third quarter of 2024. The decrease from prior periods primarily reflects lower loan balances, slowing asset quality migration, and changes in net charge-off levels.

    Net loan charge-offs for the fourth quarter of 2024 totaled $114 million, or 0.43% of average total loans. These results compare to $76 million, or 0.26%, for the fourth quarter of 2023 and $154 million, or 0.58%, for the third quarter of 2024. Key’s allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans at December 31, 2024, compared to 1.60% at December 31, 2023, and 1.68% at September 30, 2024.

    At December 31, 2024, Key’s nonperforming loans totaled $758 million, which represented 0.73% of period-end portfolio loans. These results compare to 0.51% at December 31, 2023, and 0.69% at September 30, 2024. Nonperforming assets at December 31, 2024, totaled $772 million, and represented 0.74% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.52% at December 31, 2023, and 0.70% at September 30, 2024.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at December 31, 2024.
Capital Ratios
12/31/20249/30/202412/31/2023
Common Equity Tier 1 (a)
12.0 %10.8 %10.0 %
Tier 1 risk-based capital (a)
13.7 12.6 11.7 
Total risk-based capital (a)
16.2 15.1 14.2 
Tangible common equity to tangible assets (b)
7.0 6.2 5.1 
Leverage (a)
10.1 9.2 9.0 
(a)December 31, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(b)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.


Key's regulatory capital position remained strong in the fourth quarter of 2024. As shown in the preceding table, at December 31, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 12.0% and 13.7%, respectively. Key's tangible common equity ratio was 7.0% at December 31, 2024.

    Key elected the CECL phase-in option provided by regulatory guidance which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022. Effective for the first quarter 2022, Key entered a three-year transition period, and the full impact of the CECL standard was phased-in to regulatory capital through December 31, 2024. In the first quarter of 2025, CECL will be fully reflected in regulatory capital. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by five basis points.

Summary of Changes in Common Shares Outstanding
In thousandsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Shares outstanding at beginning of period991,251 943,200 936,161 5.1 %5.9 %
Shares issued under employee compensation plans (net of cancellations and returns)493 222 403 122.1 22.3 
Shares issued under Scotiabank investment agreement115,042 47,829 — N/MN/M
Shares outstanding at end of period1,106,786 991,251 936,564 11.7 %18.2 %
N/M = Not Meaningful
    


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 6

    Key declared a dividend in January of 2025 of $.205 per common share, payable in the first quarter of 2025.

LINE OF BUSINESS RESULTS

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

Major Business Segments
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Revenue from continuing operations (TE)
Consumer Bank$872 $814 $770 7.1 %13.2 %
Commercial Bank999 868 804 15.1 24.3 
Other (a)
(1,006)(987)(36)(1.9)N/M
Total$865 $695 $1,538 24.5 %(43.8)%
Income (loss) from continuing operations attributable to Key
Consumer Bank$88 $86 $(11)2.3 %900.0 %
Commercial Bank379 300 150 26.3 152.7 
Other (a)
(711)(797)(74)10.8N/M
Total$(244)$(411)$65 40.6 %(475.4)%
(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. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent
N/M = Not Meaningful


Consumer Bank
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Summary of operations
Net interest income (TE)$637 $584 $544 9.1 %17.1 %
Noninterest income235 230 226 2.2 4.0 
Total revenue (TE)872 814 770 7.1 13.2 
Provision for credit losses43 52 5 (17.3)760.0 
Noninterest expense713 649 779 9.9 (8.5)
Income (loss) before income taxes (TE)116 113 (14)2.7 928.6 
Allocated income taxes (benefit) and TE adjustments28 27 (3)3.7 N/M
Net income (loss) attributable to Key$88 $86 $(11)2.3 %900.0 %
Average balances
Loans and leases$37,567 $38,332 $40,763 (2.0)%(7.8)%
Total assets40,563 41,188 43,551 (1.5)(6.9)
Deposits87,476 86,431 83,557 1.2 4.7 
Assets under management at period end$61,361 $61,122 $54,859 .4 %11.9 %
TE = Taxable Equivalent, N/M = Not Meaningful





KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 7

Additional Consumer Bank Data
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Noninterest income
Trust and investment services income$115 $114 $105 .9 %9.5 %
Service charges on deposit accounts32 34 37 (5.9)(13.5)
Cards and payments income64 60 62 6.7 3.2 
Consumer mortgage income16 12 11 33.3 45.5 
Other noninterest income8 10 11 (20.0)(27.3)
Total noninterest income$235 $230 $226 2.2 %4.0 %
Average deposit balances
Money market deposits$31,968 $30,805 $29,546 3.8 %8.2 %
Demand deposits22,442 22,310 22,323 .6 .5 
Savings deposits4,391 4,553 5,238 (3.6)(16.2)
Time deposits13,979 13,927 10,261 .4 36.2 
Noninterest-bearing deposits14,696 14,836 16,189 (.9)(9.2)
Total deposits$87,476 $86,431 $83,557 1.2 %4.7 %
Other data
Branches944 944 959 
Automated teller machines1,182 1,194 1,217 

Consumer Bank Summary of Operations (4Q24 vs. 4Q23)
•Key's Consumer Bank recorded net income attributable to Key of $88 million for the fourth quarter of 2024, compared to a loss of $11 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $93 million, or 17.1%, compared to the fourth quarter of 2023
•Average loans and leases decreased $3.2 billion, or 7.8%, from the fourth quarter of 2023, driven by broad-based declines across all loan categories
•Average deposits increased $3.9 billion, or 4.7%, from the fourth quarter of 2023, driven by growth in money market deposits and certificates of deposit
•Provision for credit losses increased $38 million compared to the fourth quarter of 2023, largely driven by higher net charge-offs
•Noninterest income increased $9 million from the year-ago quarter, driven by increases in trust and investment services, consumer mortgage, and cards and payments income
•Noninterest expense decreased $66 million from the year-ago quarter, primarily driven by a FDIC special assessment charge in the fourth quarter of 2023



KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 8

Commercial Bank
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Summary of operations
Net interest income (TE)$537 $460 $452 16.7 %18.8 %
Noninterest income462 408 352 13.2 31.3 
Total revenue (TE)999 868 804 15.1 24.3 
Provision for credit losses(3)41 96 (107.3)(103.1)
Noninterest expense516 445 526 16.0 (1.9)
Income (loss) before income taxes (TE)486 382 182 27.2 167.0 
Allocated income taxes and TE adjustments107 82 32 30.5 234.4
Net income (loss) attributable to Key$379 $300 $150 26.3 %152.7 %
Average balances
Loans and leases$66,691 $67,452 $72,713 (1.1)%(8.3)%
Loans held for sale1,247 998 635 24.9 96.4 
Total assets76,433 76,395 82,026 — (6.8)
Deposits59,687 58,696 58,196 1.7 %2.6 %
TE = Taxable Equivalent

Additional Commercial Bank Data
Dollars in millionsChange 4Q24 vs.
4Q243Q244Q233Q244Q23
Noninterest income
Trust and investment services income$27 $25 $27 8.0 %— %
Investment banking and debt placement fees220 171 135 28.7 63.0 
Cards and payments income18 22 20 (18.2)(10.0)
Service charges on deposit accounts32 32 28 — 14.3 
Corporate services income67 62 61 8.1 9.8 
Commercial mortgage servicing fees67 73 49 (8.2)36.7 
Operating lease income and other leasing gains15 16 21 (6.3)(28.6)
Other noninterest income16 7 11 128.6 45.5 
Total noninterest income$462 $408 $352 13.2 %31.3 %

Commercial Bank Summary of Operations (4Q24 vs. 4Q23)
•Key's Commercial Bank recorded net income attributable to Key of $379 million for the fourth quarter of 2024 compared to $150 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $85 million, or 18.8%, compared to the fourth quarter of 2023
•Average loan and lease balances decreased $6.0 billion, or 8.3%, compared to the fourth quarter of 2023, driven by a decline in commercial and industrial loans and commercial real estate loans
•Average deposit balances increased $1.5 billion compared to the fourth quarter of 2023, driven by our focus on growing deposits across our commercial businesses
•Provision for credit losses decreased $99 million compared to the fourth quarter of 2023, driven by lower loan balances, slowing asset quality migration, and changes in the economic outlook
•Noninterest income increased $110 million compared to the fourth quarter of 2023, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
•Noninterest expense decreased $10 million compared to the fourth quarter of 2023, driven by a FDIC special assessment charge in the fourth quarter of 2023, partly offset by higher incentive compensation from an increase in investment banking activity


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
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 $187 billion at December 31, 2024.

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


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 10

CONTACTS:
ANALYSTSMEDIA
Brian MauneySusan Donlan
216.689.0521216.471.3133
Brian_Mauney@KeyBank.comSusan_E_Donlan@KeyBank.com
Halle NicholsBeth Strauss
216.689.5305216.471.2787
Halle_A_Nichols@KeyBank.comBeth_A_Strauss@KeyBank.com
INVESTOR RELATIONS:KEY MEDIA NEWSROOM:
www.key.com/irwww.key.com/newsroom
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

Notes to Editors:
A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 8:00 a.m. ET, on January 21, 2025. A replay of the call will be available on our website through January 21, 2026.
For up-to-date company information, media contacts, and facts and figures about Key’s lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****



KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 11




KeyCorp
Fourth Quarter 2024
Financial Supplement


    



KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 12

Basis of Presentation

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

Forward-Looking Non-GAAP Financial Measures
From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.

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

Taxable Equivalent
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt loans, and certain lease assets, on a common basis that facilitates comparison of results to peers.

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




KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 13

Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
12/31/20249/30/202412/31/2023
Summary of operations
Net interest income (TE)$1,061 $964 $928 
Noninterest income(196)(269)610 
Total revenue (TE)
865 695 1,538 
Provision for credit losses39 95 102 
Noninterest expense1,229 1,094 1,372 
Income (loss) from continuing operations attributable to Key(244)(411)65 
Income (loss) from discontinued operations, net of taxes— 1 — 
Net income (loss) attributable to Key(244)(410)65 
Income (loss) from continuing operations attributable to Key common shareholders(279)(447)30 
Income (loss) from discontinued operations, net of taxes— 1 — 
Net income (loss) attributable to Key common shareholders(279)(446)30 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$(.28)$(.47)$.03 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
(.28)(.47).03 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution(.28)(.47).03 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
(.28)(.47).03 
Cash dividends declared.205 .205 .205 
Book value at period end14.21 14.53 13.02 
Tangible book value at period end11.70 11.72 10.02 
Market price at period end17.14 16.75 14.40 
Performance ratios
From continuing operations:
Return on average total assets(.52)%(.87)%.14 %
Return on average common equity(7.80)(13.41)1.08 
Return on average tangible common equity (b)
(9.69)(16.98)1.46 
Net interest margin (TE)2.41 2.17 2.07 
Cash efficiency ratio (b)
141.3 156.4 88.6 
From consolidated operations:
Return on average total assets(.52)%(.87)%.14 %
Return on average common equity(7.80)(13.38)1.08 
Return on average tangible common equity (b)
(9.69)(16.95)1.46 
Net interest margin (TE)2.41 2.17 2.07 
Loan to deposit (c)
70.3 71.0 77.9 
Capital ratios at period end
Key shareholders’ equity to assets9.7 %8.9 %7.8 %
Key common shareholders’ equity to assets8.4 7.6 6.5 
Tangible common equity to tangible assets (b)
7.0 6.2 5.1 
Common Equity Tier 1 (d)
12.0 10.8 10.0 
Tier 1 risk-based capital (d)
13.7 12.6 11.7 
Total risk-based capital (d)
16.2 15.1 14.2 
Leverage (d)
10.1 9.2 9.0 
Asset quality — from continuing operations
Net loan charge-offs
$114 $154 $76 
Net loan charge-offs to average loans
.43 %.58 %.26 %
Allowance for loan and lease losses
$1,409 $1,494 $1,508 
Allowance for credit losses
1,699 1,774 1,804 
Allowance for loan and lease losses to period-end loans
1.35 %1.42 %1.34 %
Allowance for credit losses to period-end loans
1.63 1.68 1.60 
Allowance for loan and lease losses to nonperforming loans186 205 263 
Allowance for credit losses to nonperforming loans224 244 314 
Nonperforming loans at period-end$758 $728 $574 
Nonperforming assets at period-end772 741 591 
Nonperforming loans to period-end portfolio loans.73 %.69 %.51 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets.74 .70 .52 
Trust assets
Assets under management$61,361 $61,122 $54,859 
Other data
Average full-time equivalent employees
16,810 16,805 17,129 
Branches
944 944 959 
Taxable-equivalent adjustment
$10 $12 $7 


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 14

Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Twelve months ended
12/31/202412/31/2023
Summary of operations
Net interest income (TE)$3,810 $3,943 
Noninterest income809 2,470 
Total revenue (TE)4,619 6,413 
Provision for credit losses335 489 
Noninterest expense4,545 4,734 
Income (loss) from continuing operations attributable to Key(163)964 
Income (loss) from discontinued operations, net of taxes2 3 
Net income (loss) attributable to Key(161)967 
Income (loss) from continuing operations attributable to Key common shareholders(306)821 
Income (loss) from discontinued operations, net of taxes2 3 
Net income (loss) attributable to Key common shareholders(304)824 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$(.32)$.88 
Income (loss) from discontinued operations, net of taxes— — 
Net income (loss) attributable to Key common shareholders (a)(.32).89 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution(.32).88 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)(.32).88 
Cash dividends paid.82 .82 
Performance ratios
From continuing operations:
Return on average total assets(.09)%.50 %
Return on average common equity(2.37)7.21 
Return on average tangible common equity (b)(3.03)9.60 
Net interest margin (TE)2.16 2.17 
Cash efficiency ratio (b)97.8 73.2 
From consolidated operations:
Return on average total assets(.09)%.50 %
Return on average common equity(2.36)7.24 
Return on average tangible common equity (b)(3.01)9.63 
Net interest margin (TE)2.16 2.17 
Asset quality — from continuing operations
Net loan charge-offs$440 $244 
Net loan charge-offs to average total loans.41 %.21 %
Other data
Average full-time equivalent employees16,753 17,692 
Taxable-equivalent adjustment45 30 
(a)Earnings per share may not foot due to rounding.
(b)The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.
(d)December 31, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 15

GAAP to Non-GAAP Reconciliations
(Dollars in millions)
The table below presents certain non-GAAP financial measures related to “tangible common equity,” “return on average tangible common equity,” “pre-provision net revenue," “cash efficiency ratio," "adjusted taxable-equivalent revenue," "noninterest expense adjusted for selected items," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."

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

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

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

Adjusted taxable-equivalent revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and selected items. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to those selected items.

Noninterest expense adjusted for selected items is a non-GAAP measure in that it excludes selected items. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects on noninterest expense related to those selected items.

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

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
Three months endedTwelve months ended
12/31/20249/30/202412/31/202312/31/202412/31/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)$18,176 $16,852 $14,637 
Less: Intangible assets (a)
2,779 2,786 2,806 
Preferred Stock (b)
2,446 2,446 2,446 
Tangible common equity (non-GAAP)$12,951 $11,620 $9,385 
Total assets (GAAP)$187,168 $189,763 $188,281 
Less: Intangible assets (a)
2,779 2,786 2,806 
Tangible assets (non-GAAP)$184,389 $186,977 $185,475 
Tangible common equity to tangible assets ratio (non-GAAP)7.02 %6.21 %5.06 %
Pre-provision net revenue
Net interest income (GAAP)$1,051 $952 $921 $3,765 $3,913 
Plus: Taxable-equivalent adjustment10 12 7 45 30 
Noninterest income(196)(269)610 809 2,470 
Less: Noninterest expense1,229 1,094 1,372 4,545 4,734 
Pre-provision net revenue from continuing operations (non-GAAP)$(364)$(399)$166 $74 $1,513 
Average tangible common equity
Average Key shareholders' equity (GAAP)$16,732 $15,759 $13,471 $15,408 $13,881 
Less: Intangible assets (average) (c)
2,783 2,789 2,811 2,793 2,831 
Preferred stock (average)2,500 2,500 2,500 2,500 2,500 
Average tangible common equity (non-GAAP)$11,449 $10,470 $8,160 $10,115 $8,689 
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)$(279)$(447)$30 $(306)$821 
Average tangible common equity (non-GAAP)11,449 10,470 8,160 10,115 8,689 
Return on average tangible common equity from continuing operations (non-GAAP)(9.69)%(16.98)%1.46 %(3.03)%9.60 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)$(279)$(446)$30 $(304)$824 
Average tangible common equity (non-GAAP)11,449 10,470 8,160 10,115 8,689 
Return on average tangible common equity consolidated (non-GAAP)(9.69)%(16.95)%1.46 %(3.01)%9.63 %






KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 16

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months endedTwelve months ended
12/31/20249/30/202412/31/202312/31/202412/31/2023
Cash efficiency ratio
Noninterest expense (GAAP)$1,229 $1,094 $1,372 $4,545 $4,734 
Less: Intangible asset amortization7 7 10 29 39 
Adjusted noninterest expense (non-GAAP)$1,222 $1,087 $1,362 $4,516 $4,695 
Net interest income (GAAP)$1,051 $952 $921 $3,765 $3,913 
Plus: Taxable-equivalent adjustment10 12 7 45 30 
Net interest income TE (non-GAAP)1,061 964 928 3,810 3,943 
Noninterest income (GAAP)(196)(269)610 809 2,470 
Total taxable-equivalent revenue (non-GAAP)$865 $695 $1,538 $4,619 $6,413 
Cash efficiency ratio (non-GAAP)141.3 %156.4 %88.6 %97.8 %73.2 %
Adjusted taxable-equivalent revenue
Noninterest income (GAAP)$(196)$(269)$610 $809 $2,470 
Plus: Selected items(d)
918 918 — 1,836 — 
Adjusted noninterest income (non-GAAP)$722 $649 $610 $2,645 $2,470 
Net interest income TE (non-GAAP)1,061 964 928 3,810 3,943 
Total adjusted taxable-equivalent revenue (non-GAAP)$1,783 $1,613 $1,538 $6,455 $6,413 
Noninterest expense adjusted for selected items
Noninterest expense (GAAP)$1,229 $1,094 $1,372 $4,545 $4,734 
Plus: Selected items(d)
3 6 (275)(25)(339)
Noninterest expense adjusted for selected items (non-GAAP)$1,232 $1,100 $1,097 $4,520 $4,395 
Adjusted income (loss) available from continuing operations attributable to Key common shareholders
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)$(279)$(447)$30 $(306)$821 
Plus: Selected items (net of tax)(d)
657 732 209 1,415 258 
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)$378 $285 $239 $1,109 $1,079 
Diluted earnings per common share (EPS) - adjusted
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)$(.28)$(.47)$.03 $(.32)$.88 
Plus: EPS impact of selected items(d)
.66 .77 .22 1.48 .27 
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)$.38 $.30 $.25 $1.16 $1.15 
(a)For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, average intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of average purchased credit card receivables.
(d)Additional detail provided in Selected Items table on page 25
GAAP = U.S. generally accepted accounting principles




KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 17

Consolidated Balance Sheets
(Dollars in millions)
12/31/20249/30/202412/31/2023
Assets
Loans$104,260 $105,346 $112,606 
Loans held for sale797 1,058 483 
Securities available for sale37,707 34,169 37,185 
Held-to-maturity securities7,395 7,702 8,575 
Trading account assets1,283 1,404 1,142 
Short-term investments17,504 22,796 10,817 
Other investments1,041 1,117 1,244 
Total earning assets169,987 173,592 172,052 
Allowance for loan and lease losses(1,409)(1,494)(1,508)
Cash and due from banks1,743 1,276 941 
Premises and equipment614 624 661 
Goodwill2,752 2,752 2,752 
Other intangible assets27 34 55 
Corporate-owned life insurance4,394 4,379 4,383 
Accrued income and other assets8,797 8,323 8,601 
Discontinued assets263 277 344 
Total assets$187,168 $189,763 $188,281 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits$120,132 $119,995 $114,859 
Noninterest-bearing deposits29,628 30,358 30,728 
Total deposits149,760 150,353 145,587 
Federal funds purchased and securities sold under repurchase agreements 14 44 38 
Bank notes and other short-term borrowings2,130 2,359 3,053 
Accrued expense and other liabilities4,983 4,478 5,412 
Long-term debt12,105 15,677 19,554 
Total liabilities168,992 172,911 173,644 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,038 6,149 6,281 
Retained earnings14,584 15,066 15,672 
Treasury stock, at cost(2,733)(4,839)(5,844)
Accumulated other comprehensive income (loss)(3,470)(3,281)(5,229)
Key shareholders’ equity18,176 16,852 14,637 
Total liabilities and equity$187,168 $189,763 $188,281 
Common shares outstanding (000)1,106,786 991,251 936,564 
    





KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 18

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Twelve months ended
12/31/20249/30/202412/31/202312/31/202412/31/2023
Interest income
Loans$1,448 $1,516 $1,574 $6,026 $6,219 
Loans held for sale20 18 12 60 61 
Securities available for sale353 298 213 1,142 793 
Held-to-maturity securities66 70 78 284 312 
Trading account assets16 15 13 61 55 
Short-term investments214 244 138 792 414 
Other investments15 14 22 62 73 
Total interest income2,132 2,175 2,050 8,427 7,927 
Interest expense
Deposits821 887 754 3,307 2,322 
Federal funds purchased and securities sold under repurchase agreements1 1 — 4 79 
Bank notes and other short-term borrowings24 43 45 164 308 
Long-term debt235 292 330 1,187 1,305 
Total interest expense1,081 1,223 1,129 4,662 4,014 
Net interest income1,051 952 921 3,765 3,913 
Provision for credit losses39 95 102 335 489 
Net interest income after provision for credit losses1,012 857 819 3,430 3,424 
Noninterest income
Trust and investment services income142 140 132 557 516 
Investment banking and debt placement fees221 171 136 688 542 
Cards and payments income85 84 84 331 340 
Service charges on deposit accounts65 67 65 261 270 
Corporate services income69 69 67 275 302 
Commercial mortgage servicing fees68 73 48 258 190 
Corporate-owned life insurance income36 36 36 138 132 
Consumer mortgage income16 12 11 58 51 
Operating lease income and other leasing gains15 16 22 76 92 
Other income(5)(2)13 23 46 
Net securities gains (losses)(908)(935)(4)(1,856)(11)
Total noninterest income(196)(269)610 809 2,470 
Noninterest expense
Personnel734 670 674 2,714 2,660 
Net occupancy67 66 65 266 267 
Computer processing107 104 92 414 368 
Business services and professional fees55 41 44 174 168 
Equipment20 20 24 80 88 
Operating lease expense15 14 18 63 77 
Marketing33 21 31 94 109 
Other expense198 158 424 740 997 
Total noninterest expense1,229 1,094 1,372 4,545 4,734 
Income (loss) from continuing operations before income taxes(413)(506)57 (306)1,160 
Income taxes (benefit)(169)(95)(8)(143)196 
Income (loss) from continuing operations(244)(411)65 (163)964 
Income (loss) from discontinued operations, net of taxes— 1 — 2 3 
Net income (loss)$(244)$(410)$65 $(161)$967 
Income (loss) from continuing operations attributable to Key common shareholders$(279)$(447)$30 $(306)$821 
Net income (loss) attributable to Key common shareholders(279)(446)30 (304)824 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$(.28)$(.47)$.03 $(.32)$.88 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
(.28)(.47).03 (.32).89 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$(.28)$(.47)$.03 $(.32)$.88 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
(.28)(.47).03 (.32).88 
Cash dividends declared per common share$.205 $.205 $.205 $.820 $.820 
Weighted-average common shares outstanding (000)986,829 948,979 927,517 949,561 927,217 
Effect of common share options and other stock awards(b)
— — 6,529 — 5,542 
Weighted-average common shares and potential common shares outstanding (000) (c)
986,829 948,979 934,046 949,561 932,759 
(a)Earnings per share may not foot due to rounding.
(b)For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.
(c)Assumes conversion of common share options and other stock awards, as applicable.



KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Fourth Quarter 2024Third Quarter 2024Fourth Quarter 2023
AverageYield/AverageYield/AverageYield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$52,887 $817 6.15 %$53,121 $847 6.34 %$56,664 $870 6.09 %
Real estate — commercial mortgage13,343 202 6.01 13,864 225 6.46 15,346 234 6.05 
Real estate — construction3,033 55 7.23 3,077 59 7.65 3,028 54 7.05 
Commercial lease financing2,826 24 3.51 2,988 26 3.46 3,568 30 3.34 
Total commercial loans72,089 1,098 6.07 73,050 1,157 6.30 78,606 1,188 6.00 
Real estate — residential mortgage19,990 166 3.32 20,215 167 3.30 21,113 174 3.30 
Home equity loans6,445 93 5.75 6,634 100 5.98 7,227 108 5.93 
Other consumer loans5,256 67 5.08 5,426 69 5.08 6,015 75 4.94 
Credit cards931 34 14.36 919 35 15.22 987 36 14.47 
Total consumer loans32,622 360 4.40 33,194 371 4.46 35,342 393 4.43 
Total loans104,711 1,458 5.55 106,244 1,528 5.73 113,948 1,581 5.51 
Loans held for sale1,327 20 6.05 1,098 18 6.54 695 12 6.85 
Securities available for sale (b), (e)
37,952 353 3.38 36,700 298 2.87 35,576 213 1.99 
Held-to-maturity securities (b)
7,541 66 3.50 7,838 70 3.58 8,714 78 3.56 
Trading account assets1,215 16 4.98 1,142 15 5.08 1,104 13 4.93 
Short-term investments17,575 214 4.83 17,773 244 5.47 9,571 138 5.72 
Other investments (e)
1,045 15 5.72 1,193 14 4.77 1,297 22 6.91 
Total earning assets171,366 2,142 4.87 171,988 2,187 4.93 170,905 2,057 4.60 
Allowance for loan and lease losses(1,486)(1,533)(1,484)
Accrued income and other assets17,308 17,154 17,471 
Discontinued assets268 284 351 
Total assets$187,456 $187,893 $187,243 
Liabilities
Money market deposits$40,676 $283 2.77 %$40,379 $309 3.04 %$36,648 $251 2.72 %
Demand deposits57,653 341 2.35 56,087 365 2.59 56,963 348 2.42 
Savings deposits4,635 1 .07 4,967 3 .22 5,492 1 .05 
Time deposits17,641 196 4.43 17,870 210 4.68 14,326 154 4.26 
Total interest-bearing deposits120,605 821 2.71 119,303 887 2.96 113,429 754 2.63 
Federal funds purchased and securities sold under repurchase agreements84 1 3.99 98 1 4.48 56 — 2.29 
Bank notes and other short-term borrowings1,832 24 5.19 3,172 43 5.44 3,199 45 5.62 
Long-term debt (f)
13,984 235 6.70 16,422 292 7.09 19,921 330 6.64 
Total interest-bearing liabilities136,505 1,081 3.15 138,995 1,223 3.50 136,605 1,129 3.29 
Noninterest-bearing deposits29,128 28,468 31,647 
Accrued expense and other liabilities4,823 4,387 5,169 
Discontinued liabilities (f)
268 284 351 
Total liabilities$170,724 $172,134 $173,772 
Equity
Total equity$16,732 $15,759 $13,471 
Total liabilities and equity$187,456 $187,893 $187,243 
Interest rate spread (TE)1.72 %1.43 %1.31 %
Net interest income (TE) and net interest margin (TE)$1,061 2.41 %$964 2.17 %$928 2.07 %
TE adjustment (b)
10127
Net interest income, GAAP basis$1,051 $952 $921 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $216 million, $215 million, and $210 million of assets from commercial credit cards for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.8 billion, $41.6 billion, and $42.6 billion for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Yield based on the fair value of securities available for sale was 3.73%, 3.25%, and 2.39% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles.


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 20

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Twelve months ended December 31, 2024Twelve months ended December 31, 2023
AverageYield/AverageYield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$53,951 $3,378 6.26 %$59,379 $3,444 5.80 %
Real estate — commercial mortgage14,080 8736.20 15,968 9315.83 
Real estate — construction3,042 227 7.48 2,755 185 6.71 
Commercial lease financing3,087 105 3.41 3,703 116 3.13 
Total commercial loans74,160 4,583 6.18 81,805 4,676 5.72 
Real estate — residential mortgage20,382 674 3.31 21,428 699 3.26 
Home equity loans6,729 398 5.92 7,522 433 5.76 
Other consumer loans5,519 278 5.04 6,263 305 4.86 
Credit cards934 138 14.78 986 136 13.88 
Total consumer loans33,564 1,488 4.43 36,199 1,573 4.35 
Total loans107,724 6,071 5.64 118,004 6,249 5.30 
Loans held for sale979 60 6.11 1,012 61 6.06 
Securities available for sale (b), (e)
37,127 1,142 2.71 37,718 793 1.80 
Held-to-maturity securities (b)
7,980 284 3.56 9,008 312 3.46 
Trading account assets1,175 61 5.16 1,138 55 4.85 
Short-term investments14,846 792 5.33 7,349 414 5.63 
Other investments (e)
1,177 62 5.25 1,392 73 5.28 
Total earning assets171,008 8,472 4.81 175,621 7,957 4.37 
Allowance for loan and lease losses(1,515)(1,419)
Accrued income and other assets17,322 17,425 
Discontinued assets296 384 
Total assets$187,111 $192,011 
Liabilities
Money market deposits$39,525 $1,146 2.90 %$34,539 $666 1.93 %
Other demand deposits56,130 1,402 2.50 54,711 1,102 2.01 
Savings deposits5,010 7 .14 6,343 3 .04 
Time deposits16,497 752 4.56 13,794 551 4.00 
Total interest-bearing deposits117,162 3,307 2.82 109,387 2,322 2.12 
Federal funds purchased and securities sold under repurchase agreements103 4 4.35 1,647 79 4.81 
Bank notes and other short-term borrowings2,984 164 5.49 5,890 308 5.24 
Long-term debt (f)
17,279 1,187 6.87 20,983 1,305 6.22 
Total interest-bearing liabilities137,528 4,662 3.39 137,907 4,014 2.91 
Noninterest-bearing deposits28,993 34,672 
Accrued expense and other liabilities4,886 5,167 
Discontinued liabilities (f)
296 384 
Total liabilities$171,703 $178,130 
Equity
Total equity$15,408 $13,881 
Total liabilities and equity$187,111 $192,011 
Interest rate spread (TE)1.42 %1.46 %
Net interest income (TE) and net interest margin (TE)$3,810 2.16 %$3,943 2.17 %
TE adjustment (b)
4530 
Net interest income, GAAP basis$3,765 $3,913 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the twelve months ended December 31, 2024, and December 31, 2023, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $215 million and $196 million of assets from commercial credit cards for the twelve months ended December 31, 2024, and December 31, 2023, respectively.
(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $42.2 billion and $44.0 billion for the twelve months ended December 31, 2024, and December 31, 2023, respectively. Yield based on the fair value of securities available for sale was 3.08% and 2.10% for the twelve months ended December 31, 2024, and December 31, 2023, respectively.
(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 21

Noninterest Expense
(Dollars in millions)
Three months endedTwelve months ended
12/31/20249/30/202412/31/202312/31/202412/31/2023
Personnel (a)
$734 $670 $674 $2,714 $2,660 
Net occupancy67 66 65 266 267 
Computer processing107 104 92 414 368 
Business services and professional fees55 41 44 174 168 
Equipment20 20 24 80 88 
Operating lease expense15 14 18 63 77 
Marketing33 21 31 94 109 
Other expense198 158 424 740 997 
Total noninterest expense$1,229 $1,094 $1,372 $4,545 $4,734 
Average full-time equivalent employees (b)
16,810 16,805 17,129 16,753 17,692 
(a)Additional detail provided in Personnel Expense table below.
(b)The number of average full-time equivalent employees has not been adjusted for discontinued operations.
Personnel Expense
(Dollars in millions)
Three months endedTwelve months ended
12/31/20249/30/202412/31/202312/31/202412/31/2023
Salaries and contract labor$418 $408 $399 $1,609 $1,649 
Incentive and stock-based compensation197 162 139 661 525 
Employee benefits119 99 97 442 405 
Severance— 1 39 2 81 
Total personnel expense$734 $670 $674 $2,714 $2,660 



KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 22

Loan Composition
(Dollars in millions)
Change 12/31/2024 vs.
12/31/20249/30/202412/31/20239/30/202412/31/2023
Commercial and industrial (a)(b)
$52,909 $52,774 $55,815 .3 %(5.2)%
Commercial real estate:
Commercial mortgage13,310 13,637 15,187 (2.4)(12.4)
Construction2,936 3,093 3,066 (5.1)(4.2)
Total commercial real estate loans16,246 16,730 18,253 (2.9)(11.0)
Commercial lease financing (b)
2,736 2,913 3,523 (6.1)(22.3)
Total commercial loans71,891 72,417 77,591 (.7)(7.3)
Residential — prime loans:
Real estate — residential mortgage19,886 20,122 20,958 (1.2)(5.1)
Home equity loans6,358 6,555 7,139 (3.0)(10.9)
Total residential — prime loans26,244 26,677 28,097 (1.6)(6.6)
Other consumer loans5,167 5,338 5,916 (3.2)(12.7)
Credit cards958 914 1,002 4.8 (4.4)
Total consumer loans32,369 32,929 35,015 (1.7)(7.6)
Total loans (c), (d)
$104,260 $105,346 $112,606 (1.0)%(7.4)%
(a)Loan balances include $212 million, $219 million, and $207 million of commercial credit card balances at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $211 million at December 31, 2024, $261 million at September 30, 2024 and no amounts held as collateral for a secured borrowing at December 31, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $3 million, $3 million, and $7 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $257 million at December 31, 2024, $272 million at September 30, 2024, and $339 million at December 31, 2023, related to the discontinued operations of the education lending business.
(d)Accrued interest of $456 million, $480 million, and $522 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

Loans Held for Sale Composition
(Dollars in millions)
Change 12/31/2024 vs.
12/31/20249/30/202412/31/20239/30/202412/31/2023
Commercial and industrial$88 $250 $50 (64.8)%76.0 %
Real estate — commercial mortgage616 747 382 (17.5)61.3 
Real estate — residential mortgage93 61 51 52.5 82.4 
Total loans held for sale$797 $1,058 $483 (24.7)%65.0 %
Summary of Changes in Loans Held for Sale
(Dollars in millions)
4Q243Q242Q241Q244Q23
Balance at beginning of period$1,058 $517 $228 $483 $730 
New originations2,915 2,473 1,532 1,738 1,879 
Transfers from (to) held to maturity, net— (16)(1)(105)(31)
Loan sales(3,039)(1,889)(1,234)(1,893)(2,095)
Loan draws (payments), net(136)(28)(7)4 — 
Valuation and other adjustments(1)1 (1)1 — 
Balance at end of period$797 $1,058 $517 $228 $483 
    




KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 23

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months endedTwelve months ended
12/31/20249/30/202412/31/202312/31/202412/31/2023
Average loans outstanding$104,711 $106,244 $113,948 $107,724 $118,004 
Allowance for loan and lease losses at the beginning of the period$1,494 $1,547 $1,488 $1,508 $1,337 
Loans charged off:
Commercial and industrial84 131 49 363 188 
Real estate — commercial mortgage18 7 24 40 39 
Real estate — construction— — — — — 
Total commercial real estate loans18 7 24 40 39 
Commercial lease financing1 — — 7 — 
Total commercial loans103 138 73 410 227 
Real estate — residential mortgage1 — — 3 1 
Home equity loans— 1 (2)2 2 
Other consumer loans15 17 14 64 51 
Credit cards12 11 10 47 37 
Total consumer loans28 29 22 116 91 
Total loans charged off131 167 95 526 318 
Recoveries:
Commercial and industrial12 7 11 58 44 
Real estate — commercial mortgage— 1 1 2 2 
Real estate — construction— — 1 — 1 
Total commercial real estate loans— 1 2 2 3 
Commercial lease financing— — 1 5 5 
Total commercial loans12 8 14 65 52 
Real estate — residential mortgage1 1 1 5 4 
Home equity loans— 1 — 2 3 
Other consumer loans2 2 1 8 8 
Credit cards2 1 3 6 7 
Total consumer loans5 5 5 21 22 
Total recoveries17 13 19 86 74 
Net loan charge-offs(114)(154)(76)(440)(244)
Provision (credit) for loan and lease losses29 101 96 341 415 
Allowance for loan and lease losses at end of period$1,409 $1,494 $1,508 $1,409 $1,508 
Liability for credit losses on lending-related commitments at beginning of period$280 $286 $290 $296 $225 
Provision (credit) for losses on lending-related commitments10 (6)6 (6)74 
Other— — — — (3)
Liability for credit losses on lending-related commitments at end of period (a)
$290 $280 $296 $290 $296 
Total allowance for credit losses at end of period$1,699 $1,774 $1,804 $1,699 $1,804 
Net loan charge-offs to average total loans.43 %.58 %.26 %.41 %.21 %
Allowance for loan and lease losses to period-end loans1.35 1.42 1.34 1.35 1.34 
Allowance for credit losses to period-end loans1.63 1.68 1.60 1.63 1.60 
Allowance for loan and lease losses to nonperforming loans186 205 263 186 263 
Allowance for credit losses to nonperforming loans224 244 314 224 314 
Discontinued operations — education lending business:
Loans charged off$1 $1 $1 $4 $4 
Recoveries— — — 1 1 
Net loan charge-offs$(1)$(1)$(1)$(3)$(3)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 24

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
4Q243Q242Q241Q244Q23
Net loan charge-offs$114 $154 $91 $81 $76 
Net loan charge-offs to average total loans.43 %.58 %.34 %.29 %.26 %
Allowance for loan and lease losses$1,409 $1,494 $1,547 $1,542 $1,508 
Allowance for credit losses (a)
1,699 1,774 1,833 1,823 1,804 
Allowance for loan and lease losses to period-end loans1.35 %1.42 %1.44 %1.40 %1.34 %
Allowance for credit losses to period-end loans1.63 1.68 1.71 1.66 1.60 
Allowance for loan and lease losses to nonperforming loans186 205 218 234 263 
Allowance for credit losses to nonperforming loans224 244 258 277 314 
Nonperforming loans at period end$758 $728 $710 $658 $574 
Nonperforming assets at period end772 741 727 674 591 
Nonperforming loans to period-end portfolio loans.73 %.69 %.66 %.60 %.51 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.74 .70 .68 .61 .52 
        
(a)Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
12/31/20249/30/20246/30/20243/31/202412/31/2023
Commercial and industrial$322 $365 $358 $360 $297 
Real estate — commercial mortgage243 176 173 113 100 
Real estate — construction— — — — — 
Total commercial real estate loans243 176 173 113 100 
Commercial lease financing— — 1 1 — 
Total commercial loans565 541 532 474 397 
Real estate — residential mortgage92 87 77 79 71 
Home equity loans89 90 91 95 97 
Other Consumer loans5 4 4 4 4 
Credit cards7 6 6 6 5 
Total consumer loans193 187 178 184 177 
Total nonperforming loans (a)
758 728 710 658 574 
OREO14 13 17 16 17 
Nonperforming loans held for sale— — — — — 
Other nonperforming assets— — — — — 
Total nonperforming assets$772 $741 $727 $674 $591 
Accruing loans past due 90 days or more$90 $166 $137 $119 $107 
Accruing loans past due 30 through 89 days206 184 282 242 222 
Nonperforming assets from discontinued operations — education lending business 2 2 3 2 3 
Nonperforming loans to period-end portfolio loans.73 %.69 %.66 %.60 %.51 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.74 .70 .68 .61 .52 

Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
4Q243Q242Q241Q244Q23
Balance at beginning of period$728 $710 $658 $574 $455 
Loans placed on nonaccrual status309 271 317 243 297 
Charge-offs(131)(167)(131)(97)(95)
Loans sold(13)(32)(22)(5)(9)
Payments(111)(37)(76)(35)(56)
Transfers to OREO(2)(1)(1)(2)(2)
Loans returned to accrual status(22)(16)(35)(20)(16)
Balance at end of period$758 $728 $710 $658 $574 


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 25

Line of Business Results
(Dollars in millions)
Change 4Q24 vs.
4Q243Q242Q241Q244Q233Q244Q23
Consumer Bank
Summary of operations
Total revenue (TE)$872 $814 $769 $757 $770 7.1 %13.2 %
Provision for credit losses43 52 33 (2)5 (17.3)760.0 
Noninterest expense713 649 648 704 779 9.9 (8.5)
Net income (loss) attributable to Key88 86 67 41 (11)2.3 900.0 
Average loans and leases37,567 38,332 39,174 39,919 40,763 (2.0)(7.8)
Average deposits87,476 86,431 85,397 84,075 83,557 1.2 4.7 
Net loan charge-offs63 54 45 44 40 16.7 57.5 
Net loan charge-offs to average total loans.67 %.56 %.46 %.44 %.39 %19.6 71.8 
Nonperforming assets at period end$201 $195 $190 $196 $190 3.1 5.8 
Return on average allocated equity10.85 %10.34 %7.93 %4.69 %(1.28)%4.9 947.7 
Commercial Bank
Summary of operations
Total revenue (TE)$999 $868 $769 $798 $804 15.1 %24.3 %
Provision for credit losses(3)41 87 102 96 (107.3)(103.1)
Noninterest expense516 445 431 442 526 16.0 (1.9)
Net income (loss) attributable to Key379 300 207 205 150 26.3 152.7 
Average loans and leases66,691 67,452 69,248 70,633 72,713 (1.1)(8.3)
Average loans held for sale1,247 998 522 840 635 24.9 96.4 
Average deposits59,687 58,696 57,360 56,331 58,196 1.7 2.6 
Net loan charge-offs52 99 64 37 35 (47.5)48.6 
Net loan charge-offs to average total loans.31 %.58 %.37 %.21 %.19 %(46.6)63.2 
Nonperforming assets at period end$571 $546 $537 $478 $401 4.6 42.4 
Return on average allocated equity15.50 %11.98 %8.31 %8.24 %5.88 %29.4 163.6 
TE = Taxable Equivalent


Selected Items Impact on Earnings
(Dollars in millions, except per share amounts)
Pretax(a)
After-tax at marginal rate(a)
Quarter to date resultsAmountNet Income
EPS(c)(f)
Three months ended December 31, 2024
Loss on sale of securities(b)
$(915)$(657)$(0.66)
Scotiabank investment agreement valuation (other income)(3)(2)— 
FDIC special assessment (other expense)(d)
3 2 — 
Three months ended September 30, 2024
Loss on sale of securities(b)
(918)(737)(0.77)
FDIC special assessment (other expense)(d)
6 5 — 
Three months ended June 30, 2024
FDIC special assessment (other expense)(d)
(5)(4)— 
Three months ended March 31, 2024
FDIC special assessment (other expense)(d)
(29)(22)(0.02)
Three months ended December 31, 2023
Efficiency related expenses(e)
(67)(51)(0.05)
Pension settlement (other expense)(18)(14)(0.02)
FDIC special assessment (other expense)(d)
(190)(144)(0.15)
Year to date results
Twelve months ended December 31, 2024
Loss on sale of securities(1,833)(1,394)(1.45)
Scotiabank investment agreement valuation (other income)(3)(2)— 
FDIC special assessment (other expense)(d)
(25)(19)(0.02)
Total selected items(f)
$(1,861)$(1,415)$(1.48)
Twelve months ended December 31, 2023
Efficiency related expenses(e)
(131)(100)(0.10)
Pension settlement (other expense)(18)(14)(0.02)
FDIC special assessment (other expense)(d)
(190)(144)(0.15)
Total selected items(f)
$(339)$(258)$(0.27)


KeyCorp Reports Fourth Quarter 2024 Results     
January 21, 2025
Page 26

(a)Favorable (unfavorable) impact.
(b)After-tax loss on sale of securities for the three months ended September 30, 2024 adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments recorded in the fourth quarter of 2024.
(c)Impact to EPS reflected on a fully diluted basis.
(d)In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024. Amounts reflected for the three-months ended June 30, 2024, September 30, 2024, and December 31, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.
(e)Efficiency related expenses for the three-months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense. Efficiency related expenses for the twelve-months ended December 31, 2023, consist primarily of $70 million of severance recorded in personnel expense and $52 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.
(f)Earnings per share may not foot due to rounding.

KeyCorp Fourth Quarter 2024 Earnings Review January 21, 2025 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer

 
Note: All metrics are FY 2024, unless otherwise noted (1) FY24 vs. FY23; (2) As of 12/31/2024; (3) 12/31/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (4) Adjusted for unrealized AFS Securities and Pension losses and non-GAAP measure: see appendix for reconciliation 2024 Results Differentiated Fee Businesses Focused on Targeted Scale 15% Increase in strategic, fee-based businesses (Investment Banking, Wealth and Commercial Payments)(1) $61Bn In Assets Under Management(2) 74bps NPAs / Period-end Loans(2) Risk Management Excellence (7)% Criticized Loans QoQ 41bps NCOs / Average Loans 4% Client Deposit Growth(1) 3% Net New Relationship Household Growth Driving New Relationships Focused on Primacy 12.0% Common Equity Tier 1(3), up ~200bps YoY Strengthening the Balance Sheet 9.8% Marked Common Equity Tier 1(4), up ~280bps YoY 2

 
Financial Review

 
4 Reported QoQ  Reported EPS of $(0.28), or $0.38 adjusted for impact from selected items(1)  Net interest income up 10% QoQ, benefiting from fixed rate asset repricing, funding optimization, and impact of securities repositioning − NIM of 2.41%  Noninterest income was down YoY due to the loss on the sale of securities and an investment agreement valuation, but up 18% excluding these selected items(1)  Expenses of $1.2Bn reflected strong capital markets activity and other elevated expenses not expected to reoccur in 2025  Provision for Credit Losses of $39MM, and included $114MM of NCOs and $75MM release of allowance for credit losses  CET1 up ~114 basis points QoQ to 12%(3)  Tangible book value per common share increased 17% YoY YoY $ in millions, excluding EPS From continuing operations, unless otherwise noted N/M = Not Meaningful (1) Non-GAAP measure: see appendix for reconciliation; (2) See slide 24 for breakout on Selected Items Impact on Earnings; (3) 12/31/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision 4Q24 Highlights EPS $ (0.28) (40.4) % N/M Net Interest Income (TE) $ 1,061 10.1 % 14.3 % Noninterest Income $ (196) 27.1 % (132.1) % Revenue (TE) $ 865 24.5 % (43.8) % Noninterest Expense $ 1,229 12.3 % (10.4) % Provision for Credit Losses $ 39 (58.9) % (61.8) % CET1(3) 12.0 % 114 bps 195 bps Cash Efficiency Ratio(1) 141.3 % N/M N/M ROTCE(1) (9.69) % N/M N/M Tangible Book Value per Common Share $ 11.70 (0.2) % 16.8 % Adjusted metrics, excluding the impact of selected items(2), can be found on slide 21

 
5 FY24 vs. FY23  Reported EPS of ($0.32), or $1.16 adjusted for impact of selected items(1)  Net interest income down 3.4%, reflecting lower loans and changes in interest rates, offset by client deposit growth, fixed rate asset repricing, and funding optimization  Adjusted noninterest income up 7%(1), reflecting strong growth in investment banking / debt placement fees, commercial mortgage servicing fees, and trust & investment services income  Adjusted expenses up ~3%(1), reflecting the strong fee environment and higher technology investments  Provision for credit losses improved ~31% driven by reserve release in 2024 compared to reserve build in 2023 $ in millions, excluding EPS From continuing operations, unless otherwise noted (1) Non-GAAP measure: see appendix for reconciliation; (2) See slide 25 for breakout on Selected Items Impact on Earnings FY 2024 Highlights EPS $ (0.32) (136.4) % Net Interest Income (TE) $ 3,810 (3.4) % Noninterest Income $ 809 (67.2) % Total Revenue (TE) $ 4,619 (28) % Noninterest Expense $ 4,545 (4.0) % Provision for Credit Losses $ 335 (31.5) % Average Loans $ 107,724 (8.7) % Average Deposits $ 146,155 1.5 % NCOs to Avg Loans 41 bps 20 bps 2024 Reported +1% excl. selected items(1) +7% excl. selected items(1) +1% excl. selected items(1) +3% excl. selected items(1) Adjusted metrics, excluding the impact of selected items(2), can be found on slide 22

 
$78.6 $76.4 $75.1 $73.1 $72.1 $35.3 $34.6 $33.9 $33.2 $32.6 4Q23 1Q24 2Q24 3Q24 4Q24 $104.7 6  Average loans down 1.4% from 3Q24 − Decline in commercial loans ($1.0Bn) reflected a decrease in commercial mortgage real estate loans and commercial and industrial loans − Decline in average consumer loans ($0.6Bn) reflected a decline in consumer mortgage and home equity loan balances vs. Prior Quarter Portfolio Highlights  ~63% variable rate, or 45% after adjusting for loans swapped to a fixed rate; loan yields would have been 6.05% in fourth quarter 2024 excluding the impact from hedges(3)  ~92% of commercial loans are made to clients who do additional business with Key(4)  ~54% of the C&I portfolio is investment grade; Consumer book has a 765 weighted average FICO at origination  C&I loan utilization: 31% in 4Q24 (stable to 3Q24) Note: Graphs may not foot due to rounding (1) CRE includes real estate – commercial mortgage and real estate – construction; (2) Other Consumer includes home equity loans, credit cards, and other consumer loans; (3) Non-GAAP measure: see appendix for reconciliation; (4) Defined as capital markets, payments or deposits Average Loans Consumer Commercial Loan Yield $113.9 $111.0 $109.0 $106.2 $ in billions 5.51% 5.61% 5.66% 5.73% 5.55% EOP Loans: $104.3Bn $0.1$105.3 ($0.2)($0.5) ($0.3)($0.2) $104.3 C&I Commercial Leases 9/30/24 CRE(1) Residential Mortgage QoQ Ending Balances by Type Other Consumer(2) 12/31/24

 
12% 3% 19% 39% 27% 35% 18%7% 30% 8% 2% vs. Prior Quarter Deposit Franchise Highlights 7  Average deposits were up 1.3% from 3Q24 − Growth across both consumer and commercial deposits − Included ~$160MM decrease in brokered CDs (to $4.4Bn)  Total deposit costs declined by 21 basis points − Interest-bearing deposit costs declined by 25bps − Cumulative down interest-bearing deposit beta: ~40%(3)  Client deposits up 4% year-over-year  NIB deposits: 23% of total deposits including hybrid accounts  Commercial deposit balances driven by relationship clients − 79% of commercial deposits in core operating accounts − 90% of commercial deposits have an operating account  Loan-to-deposit ratio: 70%(4) 4Q24 Product Mix Time deposits Savings Noninterest- bearing Demand 4Q24 Interest-bearing Mix Consumer ex term products 21% MMDA Other Commercial Managed / Indexed Commercial Wealth & Laurel Road Average Deposits Consumer Other(1) Commercial $83.6 $84.1 $85.4 $86.4 $87.5 $58.2 $56.3 $57.4 $58.7 $59.7 4Q23 1Q24 2Q24 3Q24 4Q24 $142.9$145.1 $144.2 $147.8 Total deposit cost $ in billions 2.06% 2.20% 2.28% 2.39% 2.18% $149.7 Consumer term products(2) Note: Graphs may not foot due to rounding (1) Other includes treasury brokered deposits and other deposits; (2) Includes MMDA promos and retail CDs; (3) Cumulative beta indexed to 3Q24; (4) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits 23% including hybrid accounts Treasury / Other

 
$928 $886 $899 $964 $1,061 4Q23 1Q24 2Q24 3Q24 4Q24 TE = Taxable equivalent Note: NIM Walk may not foot due to rounding 8 NII Walk (TE) NIM Walk (TE) 2.07% 2.02% 2.04% 2.17% Net Interest Income and Margin (TE) From continuing operations, $ in millions 2.41% Legacy USTs & terminated swaps Securities portfolio repricing Funding optimization & beta mgmt Rate impact3Q24 4Q24Securities repositioning & Scotiabank investment 2.17% 2.41% Legacy USTs & terminated swaps Securities portfolio repricing 3Q24 4Q24Securities repositioning & Scotiabank investment +10% Loan decline & other $(10)-$(15) $(2)-$(5) Funding optimization & beta mgmt Rate impact Loan decline & other +14% ~ Net interest margin (TE)Net interest income (TE)

 
$72$45$78 $221 $171$136 $142 $140$132 $85 $84$84 $68 $73$48 $65 $67 $65 $69 $69 $67 4Q243Q244Q23 N/M +1% +29% (7)% +1% +60% 27% QoQ 9 % change YoY +63% +42% +1% +8% (8)% vs. Prior Year  Noninterest income included a $918MM pre- tax loss from the sale of securities and investment agreement valuation(3) − Excluding the loss on the sale of securities and investment agreement valuation, fees were up 18%(1) − Investment Banking & Debt Placement increased (+$85MM), due to higher syndication fees, underwriting fees, and merger and acquisition fees − Commercial Mortgage Servicing fees (+$20MM), reflects higher active special servicing balances and growth in the overall portfolio − Trust & Investment Services growth (+$10MM) driven by AUM growth and continued strong momentum in Key Private Client(1) Adjusted noninterest income, non-GAAP measure: see appendix for reconciliation; (2) Other includes Corporate-Owned Life Insurance Income, Consumer Mortgage Income, Operating Lease Income and Other Leasing Gains, Net Securities gains (losses), and Other Income; (3) See slide 24 for breakout on Selected Items Impact on Earnings Noninterest Income $610 $(269) $(196)Total Noninterest Income Investment Banking & Debt Placement Trust & Investment Services Cards & Payments Pretax loss on selected items(3) Other(2) $(918) $(918) $ in millions; Illustrative, not drawn to scale $649(1) $722(1) Service Charges Corporate Services Comm’l Mortgage Servicing (3)%- -3%

 
10 Personnel Non-personnel YoY QoQ 7% 16% 16% 10% (10.4)% 12.3% $ in millions Noninterest Expense $1,229$1,094$1,372Total Noninterest Expense  Noninterest expense down $143MM − Driven by ~$275MM of selected items(1) in the fourth quarter of 2023 − Expenses up excluding selected items due to higher incentive and stock-based compensation related to strong capital markets activity, and higher tech spend vs. Prior Quarter  Noninterest expense up $135MM − Higher personnel expense reflects stronger capital markets activity and an increase in employee benefits − Higher other expenses largely driven by seasonality, investment spend, and other miscellaneous costs % change vs. Prior Year  $18MM charitable contributions  ~$30MM higher than typical expenses across contract terminations, claims expenses, benefits costs, and other elevated expenses not expected to reoccur in the future 4Q24 Notable Expenses $631 $670 $734 $466 $430 $498 $275 4Q23 3Q24 4Q24 $(6)(1) $(3)(1) (1) (1) Please see slide 24 for breakout on Selected Items Impact on Earnings

 
0.20% 0.22% 0.26% 0.17% 0.20% 0.09% 0.11% 0.13% 0.16% 0.09% 4Q23 1Q24 2Q24 3Q24 4Q24 NCOs = Net charge-offs (1) Loan and lease outstandings 11 $ in millions $4,984 $6,588 $6,973 $6,841 $6,337 4Q23 1Q24 2Q24 3Q24 4Q24 30 – 89 days delinquent 90+ days delinquent Net Charge-offs & Provision for Credit Losses Delinquencies to Period-end Total Loans Criticized Outstandings(1) to Period-end Total Loans $ in millions; Continuing Operations Criticized Outstandings to Period-end Total LoansCriticized Outstandings 4.4% 6.0% 6.5% 6.5% $76 $81 $91 $154 $114$102 $101 $100 $95 $39 4Q23 1Q24 2Q24 3Q24 4Q24 NCOs Provision for credit losses NCOs to avg. loans 0.26% 0.29% 0.34% 0.58% $574 $658 $710 $728 $758 4Q23 1Q24 2Q24 3Q24 4Q24 Nonperforming Loans to Period-end Total Loans $ in millions Nonperforming Loans to Period-end Total LoansNonperforming Loans 0.51% 0.60% 0.66% 0.69% Credit Quality Continuing Operations 0.73% 0.43% 6.1% +4% (7)%

 
4Q23 1Q24 2Q24 3Q24 4Q24 $(2.7) $(2.5) $(2.2) 12 $ in billions Tangible Common Equity Ratio(2) Common Equity Tier 1(1) Projected AOCI Impacts (Forward Curve) 5.1% 5.0% 5.2% 6.2% 7.0% 4Q23 1Q24 2Q24 3Q24 4Q24 10.0% 10.3% 10.5% 10.8% Adjusted for unrealized AFS Securities and Pension losses(2) 7.0% 7.1% 7.3% 8.6% (1) 12/31/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (2) Non-GAAP measure: see appendix for reconciliation Capital 12.0% 9.8% $(3.5) ~29% $(2.9) Forward RatesAOCI Position 12/31/24 Projected AOCI burndown assumes ~2 rate cuts in 2025 and 0 cuts in 2026, and 2-5 year UST rates remain relatively unchanged ~18% $(2.5) 12/31/25 12/31/26 AFS AOCI Other AOCI

 
2025 Outlook FY2025 (vs. FY2024) Ranges are shown on an operating basis 13 (1) Noninterest income excludes $1,836MM from losses on sale of securities. See slide 25 for breakout on Selected Items Impact on Earnings; (2) Noninterest expense excludes $25MM from FDIC special assessment. See slide 25 for breakout on Selected Items Impact on Earnings; (3) Non-GAAP measure: see appendix for reconciliation; (4) Reflects the estimated full year taxable-equivalent adjustment. Refer to Basis of Presentation on page 12 of the Earnings Release; (5) Represents a forward-looking Non-GAAP measure. Refer to Basis of Presentation on page 12 of the Earnings Release. $ in millions, unless otherwise stated 2024 Baseline $107.7Bn $104.3Bn $71.9Bn $3,810 $2,645(1) $4,520(2) 41 bps down (2 – 5%) Flat vs. YE 2024 up 2 – 4% up ~20% 10%+ 4Q25 vs. 4Q24 up 5%+(5) up 3 – 5 %(5) 40-45 bps ~21 – 22% ~23 – 24% (9)% (7)% (7)% (3)% + 7% + 3% + 20 bps FY2024 (vs. FY2023) Average Loans Ending Loans PE Commercial Loans Adjusted Noninterest Income(3) Adjusted Noninterest Expense (3) Net Interest Income (TE) GAAP Tax Rate Tax-equivalent Effective Rate(4) NCOs to Average Loans

 
14 Net Interest Income Opportunity Change to NII ($ in millions); Illustrative, not drawn to scale Fixed-rate securities & swaps repricing 2024 Swap terminations FY avg impact of lower loans, interest rates & other FY24 FY25 Securities repositionings & Scotiabank investment Business growth & balance sheet optimization ~$4.6Bn ~$315 Drivers of Full Year 2025 NII Growth(1) Fixed-rate securities & swaps repricing 2024 Swap terminations Interest rates & Other4Q24 4Q252nd Securities repositioning & Scotiabank investment Business growth & balance sheet optimization 2.41% NIM 2.70%+ NIM $1.17Bn+ Drivers of 4Q25 NII Exit Rate(1) $45 $14 (1) Assumes two rate cuts in 2025, one in May and one in December $180 $1.06Bn ~$3.8Bn ~20% growth 10%+ growth

 
Appendix

 
Other 1% 1M SOFR 19% 3M SOFR 9% Prime 8% O/N SOFR 26% Fixed 37% Loan Composition(1) 61% 22% 4% 10% 2% Total Loans AFS Securities Other(3) $8.7 $8.4 $8.1 $7.8 $7.5 $35.6 $37.1 $36.8 $36.7 $38.0 4Q23 1Q24 2Q24 3Q24 4Q24 Average AFS Securities Average Yield(4)Average HTM Securities $ in billions Average Total Investment Securities $44.3 $44.9 $44.5 Fixed-rate Asset Repricing Tailwinds – 1Q25 to 2026 16 2.26% 2.40% 2.61% Balance Sheet Management Detail 2.98% $45.5$45.5 ST Investments HTM Securities 3.40% (1) Loan statistics based on 12/31/2024 period-end balances; (2) Based on 12/31/2024 period-end balances; chart may not foot due to rounding; (3) Other includes loans HFS and trading account assets; (4) Yield is calculated on the basis of amortized cost $ in billions 1Q25 2Q25 3Q25 4Q25 2025 2026 Projected receive-fixed swaps maturities $2.2 $1.3 $0.4 $1.4 $5.2 $9.1 Weighted-average rate received (%) 1.42% 2.17% 2.19% 1.96% 1.80% 2.78% Projected fixed rate loans cash flows / maturities $2.6 $2.6 $2.7 $2.7 $10.5 $10.8 Weighted-average rate received (%) 3.87% 3.93% 4.01% 4.10% 3.97% 4.31% Projected fixed rate investment securities cash flows / maturities $1.6 $1.8 $1.9 $1.8 $7.1 $7.4 Weighted-average rate received (%) 2.61% 2.40% 3.33% 3.81% 3.06% 3.83% Earning Asset Mix(2)

 
 Receive-fixed swaps hedging loans of $19.0B – WA receive rate: 3.8%  $1.5B starting in 1Q25 (3.7% WA receive rate)  $6.7B starting in 2Q25 (3.7% WA receive rate)  $4.0B starting in 3Q25 (3.8% WA receive rate)  $6.3B starting in 4Q25 (3.8% WA receive rate)  $0.5B starting in 1Q26 (4.1% WA receive rate)  Executed $9.3Bn of forward-starting receive-fixed swaps – WA receive rate: 3.7% that become effective over the course of 2Q25 to 1Q26  Terminated $3.0Bn of accruing pay-fixed swaps in conjunction with the securities portfolio rebalancing transaction – WA pay rate: 4.4% $18.8 $18.1 $23.5 $27.2 $32.1 $23.8 $14.1 4Q24 1Q25 2Q25 3Q25 4Q25 YE26 YE27 Hedging Strategy Opportunity $ in billions 12/31/2024 Debt Hedges $10.8 Securities Hedges(2) $9.4 Floor Spreads $3.3 17 (1) Portfolio as of 12/31/2024 and includes already executed forward starting swaps; (2) AFS securities swapped to floating rate Other Hedge Positions 4Q24 ALM Hedge Actions 2.3% 2.6% 2.9% 3.1% 3.2% 3.4% 3.8% 1Q25 2Q25 3Q25 4Q25 YE26 YE27 $2.2 $1.3 $0.4 $1.4 $9.1 $9.7 1.4% 2.2% 2.2% 2.0% 2.8% 3.0% W.A. Receive- fixed Rate Note: Maturing Swaps ($Bn) W.A. Receive-fixed Rate Receive-fixed Asset Swaps(1) $ in billions; ending balances Forward Starting Swaps as of 12/31

 
0.55% 0.43% 0.29% 0.00% 0.00% 4.50% 1.00% C&I CRE Comm'l Lease Resi Mtg Home Equity Credit Cards Other Consumer 18 Allowance to NPLs (%)(2) Criticized Outstandings to Period-end Loans (%)(2) 198% 152% N/M 98% 79% N/M N/M C&I CRE Comm'l Lease Resi Mtg Home Equity Credit Cards Other Consumer 7.6% 12.3% 4.2% 0.5% 1.5% 2.0% 0.3% C&I CRE Comm'l Lease Resi Mtg Home Equity Credit Cards Other Consumer Credit Quality by Portfolio (3), (4) (3), (4) (3), (4) N/M = Not Meaningful Note: All metrics are as of 12/31/2024 unless otherwise noted; (1) Net loan charge-off amounts are annualized in calculation; (2) Ratios calculated using unrounded figures and therefore may not foot to calculation using rounded figures presented in chart; (3) Loan balances include $212 million of commercial credit card balances at December 31, 2024; (4) Commercial and industrial includes receivables held as collateral for a secured borrowing of $211 million at December 31, 2024. Principal reductions are based on the cash payments received from these related receivables Allowance for Credit Losses (ACL) $ in millions $1,804 $1,823 $1,833 $1,774 $1,699 4Q23 1Q24 2Q24 3Q24 4Q24 Allowance for Credit Losses to Period-end LoansAllowance for Credit Losses 1.60% 1.66% 1.71% 1.68% 1.63% Net Loan Charge-offs(1) to Average Loans (%)(2) ↓ 51bps QoQ ↓ 138bps QoQ

 
GAAP to Non-GAAP Reconciliation (1) For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, intangible assets exclude less than $1 million, $1 million, and $1 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus; (3) For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, average intangible assets exclude less than $1 million, $1 million, and $1 million, respectively, of average purchased credit card receivables 19 $ in millions 4Q24 3Q24 4Q23 Tangible common equity to tangible assets at period end Key shareholders’ equity (GAAP) $ 18,176 $ 16,852 $ 14,637 Less: Intangible assets(1) 2,779 2,786 2,806 Preferred stock(2) 2,446 2,446 2,446 Tangible common equity (non-GAAP) $ 12,951 $ 11,620 $ 9,385 Total assets (GAAP) $ 187,168 $ 189,763 $ 188,281 Less: Intangible assets(1) 2,779 2,786 2,806 Tangible assets (non-GAAP) $ 184,389 $ 186,977 $ 185,475 Tangible common equity to tangible assets ratio (non-GAAP) 7.02 % 6.21 % 5.06 % Average tangible common equity Average Key shareholders’ equity (GAAP) $ 16,732 $ 15,759 $ 13,471 Less: Intangible assets (average) (3) 2,783 2,789 2,811 Preferred stock (average) 2,500 2,500 2,500 Average tangible common equity (non-GAAP) $ 11,449 $ 10,470 $ 8,160

 
GAAP to Non-GAAP Reconciliation 20 $ in millions 4Q24 3Q24 4Q23 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ (279) $ (447) $ 30 Average tangible common equity (non-GAAP) 11,449 10,470 8,160 Return on average tangible common equity from continuing operations (non-GAAP) (9.69) % (16.98) % 1.46 % Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) $ (279) $ (446) $ 30 Average tangible common equity (non-GAAP) 11,449 10,470 8,160 Return on average tangible common equity consolidation (non-GAAP) (9.69) % (16.95) % 1.46 % Cash efficiency ratio Noninterest expense (GAAP) $ 1,229 $ 1,094 $ 1,372 Less: Intangible asset amortization 7 7 10 Adjusted noninterest expense (non-GAAP) $ 1,222 $ 1,087 $ 1,362 Net interest income (GAAP) $ 1,051 $ 952 $ 921 Plus: Taxable-equivalent adjustment 10 12 7 Net interest income TE (non-GAAP) 1,061 964 928 Noninterest income (GAAP) (196) (269) 610 Total taxable-equivalent revenue (non-GAAP) $ 865 $ 695 $ 1,538 Cash efficiency ratio (non-GAAP) 141.3 % 156.4 % 88.6 %

 
GAAP to Non-GAAP Reconciliation 21 $ in millions 4Q24 3Q24 4Q23 Adjusted taxable-equivalent revenue Noninterest income (GAAP) $ (196) $ (269) $ 610 Plus: Selected Items(1) 918 918 - Adjusted noninterest income (non-GAAP) $ 722 $ 649 $ 610 Net interest income TE (non-GAAP) 1,061 964 928 Total adjusted taxable-equivalent revenue (non-GAAP) $ 1,783 $ 1,613 $ 1,538 Noninterest expense adjusted for selected items Noninterest expense (GAAP) $ 1,229 $ 1,094 $ 1,372 Plus: Selected Items(1) 3 6 (275) Noninterest expense adjusted for selected items (non-GAAP) $ 1,232 $ 1,100 $ 1,097 Adjusted income (loss) available from continuing operations attributable to Key common shareholders Income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ (279) $ (447) $ 30 Plus: Selected Items(1) 657 732 209 Adjusted income (loss) available from continuing operations attributable to Key common shareholders $ 378 $ 285 $ 239 Diluted earnings per common share (EPS) - adjusted Diluted EPS from continuing operations attributable to Key common shareholders (GAAP) $ (.28) $ (.47) $ .03 Plus: EPS impact of selected items(1) .66 .77 .22 Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP) $ .38 $ .30 $ .25 (1) See slide 24 for breakout on Selected Items Impact on Earnings

 
GAAP to Non-GAAP Reconciliation 22 $ in millions FY2024 FY2023 Adjusted taxable-equivalent revenue Noninterest income (GAAP) $ 809 $ 2,470 Plus: Selected Items(1) 1,836 - Adjusted noninterest income (non-GAAP) $ 2,645 $ 2,470 Net interest income TE (non-GAAP) 3,810 3,943 Total adjusted taxable-equivalent revenue (non-GAAP) $ 6,455 $ 6,413 Noninterest expense adjusted for selected items Noninterest expense (GAAP) $ 4,545 $ 4,734 Less: Selected items(1) (25) (339) Noninterest expense adjusted for selected items (non-GAAP) $ 4,520 $ 4,395 Adjusted income (loss) available from continuing operations attributable to Key common shareholders Income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ (306) $ 821 Plus: Selected items (net of tax)(1) 1,415 258 Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP) $ 1,109 $ 1,079 Diluted earnings per common share (EPS) – adjusted Diluted EPS from continuing operations attributable to Key common shareholders (GAAP) $ (.32) $ .88 Plus: EPS impact of selected items(1) 1.48 .27 Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP) $ 1.16 $ 1.15 (1) See slide 25 for breakout on Selected Items Impact on Earnings

 
GAAP to Non-GAAP Reconciliation 23 CET1 – AOCI Impact(1) ($ in millions) 4Q23 1Q24 2Q24 3Q24 4Q24 Common Equity Tier 1 (A) $ 14,894 $ 14,821 $ 14,893 $ 15,043 $ 16,563 Add: AFS and Pension accumulated other Comprehensive income (loss) (4,573) (4,608) (4,530) (3,118) (3,032) Adjusted Common Equity Tier 1 (B) $ 10,321 $ 10,213 $ 10,363 $ 11,925 $ 13,532 Risk Weighted Assets (C) $ 148,575 $ 144,295 $ 142,179 $ 138,933 $ 138,348 Common Equity Tier 1 ratio (A/C) 10.02 % 10.27 % 10.47 % 10.83 % 11.97 % Adjusted CET1 Ratio (B/C) 6.95 % 7.08 % 7.29 % 8.58 % 9.78 % (1) Under the current applicable regulatory capital rules, Key has made the AOCI opt out election, which enables us to exclude components of AOCI from regulatory capital, notably the AOCI relative to securities and pension. Adjusted CET1 ratio is a non-GAAP measure and is calculated based on Common Equity Tier 1 capital, inclusive of the AOCI impact from securities and pension, divided by risk weighted assets. We believe this non-GAAP measure provides useful information in light of the potential for change in the regulatory capital framework; (2) Loan Yields Excluding Impact from Hedges is a non-GAAP metric and is calculated by excluding losses realized on derivatives which hedge the interest rate risk of our loans. We believe this metric is meaningful as it provides information on loan yields excluding the impacts of hedge-related interest rate risk management programs Loan Yields Excluding Impact from Hedges(2) 4Q23 1Q24 2Q24 3Q24 4Q24 Loan Yield 5.51 % 5.61 % 5.66 % 5.73 % 5.55 % Subtract: Loan Yield Impact of Realized Hedge Gains/(Losses) (0.84) % (0.78) % (0.73) % (0.69) % (0.50) % Loan Yield Excluding Impact from Hedges 6.35 % 6.39 % 6.39 % 6.42 % 6.05 %

 
24 (1) Favorable (unfavorable) impact; (2) After-tax loss on sale of securities for the three months ended September 30, 2024 adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments recorded in the fourth quarter of 2024; (3) Impact to EPS reflected on a fully diluted basis; (4) In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024. Amounts reflected for the three-months ended June 30, 2024, September 30, 2024, and December 31, 2024, represent adjustments from initial estimates based on quarterly invoices received by the FDIC; (5) Efficiency related expenses for the three-months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense Selected Items Impact on Earnings Selected Items Impact on Earnings $ in millions, except per share amounts Pretax(1) After-tax at marginal rate(1) Quarter to date results Amount Net Income EPS(3) Three months ended December 31, 2024 Loss on sale of securities(2) $ (915) $ (657) $ (0.66) Scotiabank investment agreement valuation (other income) (3) (2) - FDIC special assessment (other expense)(4) 3 2 Three months ended September 30, 2024 Loss on sale of securities(2) (918) (737) (0.77) FDIC special assessment (other expense)(4) 6 5 - Three months ended June 30, 2024 FDIC special assessment (other expense)(4) (5) (4) - Three months ended March 31, 2024 FDIC special assessment (other expense)(4) (29) (22) (0.02) Three months ended December 31, 2023 Efficiency related expenses(5) (67) (51) (0.05) Pension settlement (other expense) (18) (14) (0.02) FDIC special assessment (other expense)(4) (190) (144) (0.15)

 
25 (1) Favorable (unfavorable) impact; (2) Impact to EPS reflected on a fully diluted basis; (3) In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024, as well as adjustments from initial estimates throughout 2024 based on quarterly invoices received from the FDIC; (4) Efficiency related expenses for the twelve-months ended December 31, 2023, consist primarily of $70 million of severance recorded in personnel expense and $52 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense; (5) Earnings per share may not foot due to rounding Selected Items Impact on Earnings Selected Items Impact on Earnings $ in millions, except per share amounts Pretax(1) After-tax at marginal rate(1) Year to date results Amount Net Income EPS(2,5) Twelve months ended December 31, 2024 Loss on sale of securities $ (1,833) $ (1,394) $ (1.45) Scotiabank investment agreement valuation (other income) (3) (2) - FDIC special assessment (other expense)(3) (25) (19) (0.02) Total selected items(5) $ (1,861) $ (1,415) $ (1.48) Twelve months ended December 31, 2023 Efficiency related expenses(4) $ (131) $ (100) $ (0.10) Pension settlement (other expense) (18) (14) (0.02) FDIC special assessment (other expense)(3) (190) (144) (0.15) Total selected items(5) $ (339) $ (258) $ (0.27)

 
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “seek,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible,” “potential,” “strategy,” “opportunities,” or “trends,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp’s control). Actual results may differ materially from current projections. Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward-looking Statements” and “Risk Factors” in KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and in subsequent filings of KeyCorp with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir. Non-GAAP Measures. This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Key’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the appendix to this presentation, the financial supplement, or the press release related to this presentation, all of which can be found on Key’s website (www.key.com/ir). Forward-Looking Non-GAAP Measures. From time to time we may discuss forward-looking non-GAAP financial measures. We are unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because we are unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results. Annualized Data. Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Taxable Equivalent. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of peers. Earnings Per Share Equivalent. Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent. GAAP: Generally Accepted Accounting Principles 26 Forward-looking Statements and Additional Information

 
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
12/31/20249/30/202412/31/2023
Assets
Loans$104,260 $105,346 $112,606 
Loans held for sale 797 1,058 483 
Securities available for sale37,707 34,169 37,185 
Held-to-maturity securities7,395 7,702 8,575 
Trading account assets1,283 1,404 1,142 
Short-term investments17,504 22,796 10,817 
Other investments1,041 1,117 1,244 
Total earning assets169,987 173,592 172,052 
Allowance for loan and lease losses(1,409)(1,494)(1,508)
Cash and due from banks1,743 1,276 941 
Premises and equipment614 624 661 
Goodwill2,752 2,752 2,752 
Other intangible assets27 34 55 
Corporate-owned life insurance4,394 4,379 4,383 
Accrued income and other assets8,797 8,323 8,601 
Discontinued assets263 277 344 
Total assets$187,168 $189,763 $188,281 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits120,132 119,995 114,859 
Noninterest-bearing deposits29,628 30,358 30,728 
Total deposits149,760 150,353 145,587 
Federal funds purchased and securities sold under repurchase agreements 14 44 38 
Bank notes and other short-term borrowings2,130 2,359 3,053 
Accrued expense and other liabilities4,983 4,478 5,412 
Long-term debt12,105 15,677 19,554 
Total liabilities168,992 172,911 173,644 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,038 6,149 6,281 
Retained earnings14,584 15,066 15,672 
Treasury stock, at cost(2,733)(4,839)(5,844)
Accumulated other comprehensive income (loss)(3,470)(3,281)(5,229)
Key shareholders’ equity18,176 16,852 14,637 
Noncontrolling interests— — — 
Total equity18,176 16,852 14,637 
Total liabilities and equity$187,168 $189,763 $188,281 
Common shares outstanding (000)1,106,786 991,251 936,564 



Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months endedTwelve months ended
12/31/20249/30/202412/31/202312/31/202412/31/2023
Interest income
Loans$1,448 $1,516 $1,574 $6,026 $6,219 
Loans held for sale20 18 12 60 61 
Securities available for sale353 298 213 1,142 793 
Held-to-maturity securities66 70 78 284 312 
Trading account assets16 15 13 61 55 
Short-term investments214 244 138 792 414 
Other investments15 14 22 62 73 
Total interest income2,132 2,175 2,050 8,427 7,927 
Interest expense
Deposits821 887 754 3,307 2,322 
Federal funds purchased and securities sold under repurchase agreements1 1 — 4 79 
Bank notes and other short-term borrowings24 43 45 164 308 
Long-term debt235 292 330 1,187 1,305 
Total interest expense1,081 1,223 1,129 4,662 4,014 
Net interest income1,051 952 921 3,765 3,913 
Provision for credit losses39 95 102 335 489 
Net interest income after provision for credit losses1,012 857 819 3,430 3,424 
Noninterest income
Trust and investment services income142 140 132 557 516 
Investment banking and debt placement fees221 171 136 688 542 
Service charges on deposit accounts65 67 65 261 270 
Operating lease income and other leasing gains15 16 22 76 92 
Corporate services income69 69 67 275 302 
Cards and payments income85 84 84 331 340 
Corporate-owned life insurance income36 36 36 138 132 
Consumer mortgage income16 12 11 58 51 
Commercial mortgage servicing fees68 73 48 258 190 
Other income(5)(2)13 23 46 
Net securities gains (losses)(908)(935)(4)(1,856)(11)
Total noninterest income(196)(269)610 809 2,470 
Noninterest expense
Personnel734 670 674 2,714 2,660 
Net occupancy67 66 65 266 267 
Computer processing107 104 92 414 368 
Business services and professional fees55 41 44 174 168 
Equipment20 20 24 80 88 
Operating lease expense15 14 18 63 77 
Marketing33 21 31 94 109 
Intangible asset amortization— — — — — 
Other expense198 158 424 740 997 
Total noninterest expense1,229 1,094 1,372 4,545 4,734 
Income (loss) from continuing operations before income taxes(413)(506)57 (306)1,160 
Income taxes(169)(95)(8)(143)196 
Income (loss) from continuing operations(244)(411)65 (163)964 
Income (loss) from discontinued operations, net of taxes— 1 — 2 3 
Net income (loss)(244)(410)65 (161)967 
Less: Net income (loss) attributable to noncontrolling interests— — — — — 
Net income (loss) attributable to Key$(244)$(410)$65 $(161)$967 
Income (loss) from continuing operations attributable to Key common shareholders$(279)$(447)$30 $(306)$821 
Net income (loss) attributable to Key common shareholders(279)(446)30 (304)824 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$(.28)$(.47)$.03 $(.32)$.88 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
(.28)(.47).03 (.32).89 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$(.28)$(.47)$.03 $(.32)$.88 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
(.28)(.47)$.03 (.32).88 
Cash dividends declared per common share$.205 $.205 $.205 $.82 $.82 
Weighted-average common shares outstanding (000)986,829 948,979 927,517 949,561 927,217 
Effect of common share options and other stock awards— — 6,529 — 5,542 
Weighted-average common shares and potential common shares outstanding (000) (b)
986,829 948,979 934,046 949,561 932,759 
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.


v3.24.4
Cover Page
Jan. 21, 2025
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 21, 2025
Entity Registrant Name KeyCorp
Entity Incorporation, State or Country Code OH
Entity File Number 001-11302
Entity Tax Identification Number 34-6542451
Entity Address, Address Line One 127 Public Square,
Entity Address, City or Town Cleveland,
Entity Address, State or Province OH
Entity Address, Postal Zip Code 44114-1306
City Area Code 216
Local Phone Number 689-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000091576
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common Shares, $1 par value
Trading Symbol KEY
Security Exchange Name NYSE
Series E Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E)
Trading Symbol KEY PrI
Security Exchange Name NYSE
Series F Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F)
Trading Symbol KEY PrJ
Security Exchange Name NYSE
Series G Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G)
Trading Symbol KEY PrK
Security Exchange Name NYSE
Series H Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Reset Perpetual Non-Cumulative Preferred Stock, Series H)
Trading Symbol KEY PrL
Security Exchange Name NYSE
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