Document

KEYCORP REPORTS SECOND QUARTER 2020 NET INCOME OF $159 MILLION,

OR $.16 PER DILUTED COMMON SHARE

Results reflect provision for credit losses of $482 million, which exceeded net charge-offs by $386 million, or $.34 per share

Positive operating leverage relative to prior year with record pre-provision net revenue

Record revenue up 17% from prior quarter, driven by strength in fees: positive momentum in capital markets businesses, payments and consumer mortgage

Continued to support clients with over $8 billion of Paycheck Protection Program funding

Committed to maintaining strong risk management practices: net charge-offs to average loans of 36 basis points

Strong capital position: Common Equity Tier 1 of 9.1%, within targeted range

CLEVELAND, July 22, 2020 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $159 million, or $.16 per diluted common share for the second quarter of 2020, compared to $118 million, or $.12 per diluted common share, for the first quarter of 2020 and $403 million, or $.40 per diluted common share, for the second quarter of 2019. Key's results in the first and second quarters of 2020 reflect the Current Expected Credit Losses ("CECL") accounting methodology, as well as the impact of the COVID-19 pandemic.

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 2



Selected Financial Highlights

dollars in millions, except per share data										Change 2Q20 vs.
	2Q20			1Q20			2Q19			1Q20		2Q19
Income (loss) from continuing operations attributable to Key common shareholders	$	159		$	118		$	403		34.7	%	(60.5	)%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution	.16			.12			.40			33.3		(60.0	)
Return on average tangible common equity from continuing operations ^(a)	4.96		%	3.82		%	13.69		%	N/A		N/A
Return on average total assets from continuing operations	.45			.40			1.19			N/A		N/A
Common Equity Tier 1 ratio ^(b)	9.1			8.9			9.6			N/A		N/A
Book value at period end	$	16.07		$	15.95		$	15.07		.8	%	6.6	%
Net interest margin (TE) from continuing operations	2.76		%	3.01		%	3.06		%	N/A		N/A


(a)	The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “Return on average tangible common equity from continuing operations.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.


(b)	6/30/20 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable



INCOME STATEMENT HIGHLIGHTS

Revenue

dollars in millions							Change 2Q20 vs.
	2Q20		1Q20		2Q19		1Q20		2Q19
Net interest income (TE)	$	1,025	$	989	$	989	3.6	%	3.6	%
Noninterest income	692		477		622		45.1		11.3
Total revenue	$	1,717	$	1,466	$	1,611	17.1	%	6.6	%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.0 billion for the second quarter of 2020, compared to taxable-equivalent net interest income of $989 million for the second quarter of 2019. The increase in net interest income reflects higher earning asset balances partially offset by a lower net interest margin. The net interest margin was impacted by lower interest rates, a lag in deposit pricing as interest rates declined, and a change in balance sheet mix, including elevated levels of liquidity and Key's participation in the Paycheck Protection Program.

Compared to the first quarter of 2020, taxable-equivalent net interest income increased by $36 million, reflecting higher earning asset balances, partially offset by a lower net interest margin. The lower net interest margin reflects elevated levels of liquidity, the impact of lower interest rates, and Key's participation in the Paycheck Protection Program.



Noninterest Income

dollars in millions								Change 2Q20 vs.
	2Q20		1Q20			2Q19		1Q20		2Q19
Trust and investment services income	$	123	$	133		$	122	(7.5	)%	.8	%
Investment banking and debt placement fees	156		116			163		34.5		(4.3	)
Service charges on deposit accounts	68		84			83		(19.0	)	(18.1	)
Operating lease income and other leasing gains	60		30			44		100.0		36.4
Corporate services income	52		62			53		(16.1	)	(1.9	)
Cards and payments income	91		66			73		37.9		24.7
Corporate-owned life insurance income	35		36			33		(2.8	)	6.1
Consumer mortgage income	62		20			15		210.0		313.3
Commercial mortgage servicing fees	12		18			19		(33.3	)	(36.8	)
Other income	33		(88		)	17		N/M		94.1
Total noninterest income	$	692	$	477		$	622	45.1	%	11.3	%

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 3

Compared to the second quarter of 2019, noninterest income increased by $70 million, primarily driven by a $47 million increase in consumer mortgage income, driven by a record level of loan originations and related fees in the second quarter of 2020. Additionally, cards and payments income increased $18 million related to prepaid card activity and operating lease income increased $16 million driven by gains from the sale of leveraged leases. These benefits were partially offset by a decline of $15 million in service charges on deposit accounts.

Compared to the first quarter of 2020, noninterest income increased by $215 million. The largest driver of the quarterly increase was a $121 million improvement in other income, primarily driven by $92 million of market-related valuation adjustments in the first quarter of 2020. Other significant drivers for the quarter-over-quarter increase include $42 million of higher consumer mortgage income, and a $40 million increase in investment banking and debt placement fees related to strong commercial mortgage and debt capital markets activity. Operating lease income and cards and payments income also increased, $30 million and $25 million, respectively.



Noninterest Expense

dollars in millions							Change 2Q20 vs.
	2Q20		1Q20		2Q19		1Q20		2Q19
Personnel expense	$	572	$	515	$	589	11.1	%	(2.9	)%
Nonpersonnel expense	441		416		430		6.0		2.6
Total noninterest expense	$	1,013	$	931	$	1,019	8.8	%	(.6	)%

Key’s noninterest expense was $1.0 billion for the second quarter of 2020, a decrease of $6 million from the year-ago period. The second quarter of 2019 included notable items of $52 million, primarily personnel-related from Key's efficiency initiatives. Excluding notable items in the year-ago period, expenses increased $46 million. The increase is primarily related to higher other expense, from $25 million of payments-related expenses incurred in the current period, as well as COVID-19-related costs related to steps that the company has taken to ensure the health and safety of teammates.

Compared to the first quarter of 2020, noninterest expense increased $82 million. The increase was largely due to higher incentive and stock-based compensation from strong revenue production in Key's investment banking and consumer mortgage businesses. Other drivers for the linked quarter increase include $25 million of payments-related costs (in other expense), as well as other COVID-19 related expenses.



BALANCE SHEET HIGHLIGHTS

Average Loans

dollars in millions							Change 2Q20 vs.
	2Q20		1Q20		2Q19		1Q20		2Q19
Commercial and industrial ^(a)	$	60,480	$	49,466	$	47,227	22.3	%	28.1	%
Other commercial loans	19,850		19,779		19,765		.4		.4
Total consumer loans	27,611		26,929		23,793		2.5		16.0
Total loans	$	107,941	$	96,174	$	90,785	12.2	%	18.9	%


(a)	Commercial and industrial average loan balances include $135 million, $145 million, and $141 million of assets from commercial credit cards at June 30, 2020, March 31, 2020, and June 30, 2019, respectively.

Average loans were $107.9 billion for the second quarter of 2020, an increase of $17.2 billion compared to the second quarter of 2019. Commercial loans increased $13.3 billion, reflecting growth from participation in the Paycheck Protection Program during the current quarter, as well as core broad-based growth in commercial and industrial loans and increased utilization versus the year-ago period. Consumer loans increased $3.8 billion, driven by strength from Laurel Road and Key's consumer mortgage business.

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 4

Compared to the first quarter of 2020, average loans increased by $11.8 billion. The second quarter of 2020 included over $8 billion of loans related to the Paycheck Protection Program, which, in addition to the increase in commercial and industrial utilization rates in March 2020, drove the majority of commercial loan growth from the prior quarter. Consumer loan growth continued to be driven by strength from Laurel Road, as well as a record quarter in Key's consumer mortgage business.



Average Deposits

dollars in millions										Change 2Q20 vs.
	2Q20			1Q20			2Q19			1Q20		2Q19
Non-time deposits	$	118,694		$	99,117		$	95,885		19.8	%	23.8	%
Certificates of deposit ($100,000 or more)	4,950			6,310			8,147			(21.6	)	(39.2	)
Other time deposits	4,333			4,901			5,569			(11.6	)	(22.2	)
Total deposits	$	127,977		$	110,328		$	109,601		16.0	%	16.8	%

Cost of total deposits	.30		%	.62		%	.82		%	N/A		N/A

N/A = Not Applicable

Average deposits totaled $128.0 billion for the second quarter of 2020, an increase of $18.4 billion compared to the year-ago quarter, reflecting growth from consumer and commercial relationships, partially offset by a decline in time deposits.

Compared to the first quarter of 2020, average deposits increased by $17.6 billion, primarily driven by broad-based commercial growth as well as growth from consumer stimulus payments and lower consumer spending. This growth was offset by a decline in time deposits, primarily related to lower interest rates.



ASSET QUALITY

dollars in millions										Change 2Q20 vs.
	2Q20			1Q20			2Q19			1Q20		2Q19
Net loan charge-offs	$	96		$	84		$	65		14.3	%	47.7	%
Net loan charge-offs to average total loans	.36		%	.35		%	.29		%	N/A		N/A
Nonperforming loans at period end	$	760		$	632		$	561		20.3		35.5
Nonperforming assets at period end	951			844			608			12.7		56.4
Allowance for loan and lease losses	1,708			1,359			890			25.7		91.9
Allowance for loan and lease losses to nonperforming loans	224.7		%	215.0		%	158.6		%	N/A		N/A
Provision for credit losses	$	482		$	359		$	74		34.3	%	551.4	%

N/A = Not Applicable

Key’s provision for credit losses was $482 million for the second quarter of 2020, compared to $74 million for the second quarter of 2019, and $359 million for the first quarter of 2020. The provision for credit losses reflects the adoption of a new accounting standard, often referred to as Current Expected

Credit Losses ("CECL"), beginning in the first quarter of 2020. This framework requires that management estimate credit losses over the full remaining expected life and consider expected future changes in macroeconomic conditions.

The provision for credit losses exceeded net charge-offs by $386 million. Net loan charge-offs for the second quarter of 2020 totaled $96 million, or .36% of average total loans. These results compare to $65 million, or .29%, for the second quarter of 2019, and $84 million, or .35%, for the first quarter of 2020. Key’s allowance for loan and lease losses was $1.7 billion, or 1.61% of total period-end loans at June 30, 2020, compared to .97% at June 30, 2019, and 1.32% at March 31, 2020.

At June 30, 2020, Key’s nonperforming loans totaled $760 million, which represented .72% of period-end portfolio loans. These results compare to .61% at June 30, 2019, and .61% at March 31, 2020.

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 5

Nonperforming assets at June 30, 2020, totaled $951 million, and represented .89% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to .66% at June 30, 2019, and .82% at March 31, 2020.

CAPITAL

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2020.



Capital Ratios

	6/30/2020		3/31/2020		6/30/2019
Common Equity Tier 1 ^(a)	9.1	%	8.9	%	9.6	%
Tier 1 risk-based capital ^(a)	10.4		10.2		11.0
Total risk based capital ^(a)	12.8		12.2		13.0
Tangible common equity to tangible assets ^(b)	7.6		8.3		8.6
Leverage ^(a)	8.8		9.8		10.0


(a)	6/30/2020 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


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

Key's capital position remained strong in the second quarter of 2020. As shown in the preceding table, at June 30, 2020, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.1% and 10.4%, respectively. Key's tangible common equity ratio was 7.6% at June 30, 2020.

Key has elected the CECL phase-in option provided by regulatory guidance which delays for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by 29 basis points.



Summary of Changes in Common Shares Outstanding

in thousands								Change 2Q20 vs.
		2Q20		1Q20		2Q19		1Q20		2Q19
Shares outstanding at beginning of period		975,319		977,189		1,013,186		(.2	)%	(3.7	)%
Open market repurchases and return of shares under employee compensation plans		(19	)	(7,862	)	(10,412	)	(99.8	)	(99.8	)
Shares issued under employee compensation plans (net of cancellations)		647		5,992		340		(89.2	)	90.3
	Shares outstanding at end of period	975,947		975,319		1,003,114		.1	%	(2.7	)%

Consistent with Key's 2019 Capital Plan, during the second quarter of 2020, Key declared a dividend of $.185 per common share. Per Key's announcement on March 17, 2020, share repurchase activity has been temporarily suspended in response to the COVID-19 pandemic.

LINE OF BUSINESS RESULTS

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

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 6



Major Business Segments

dollars in millions											Change 2Q20 vs.
		2Q20			1Q20			2Q19			1Q20		2Q19
Revenue from continuing operations (TE)
Consumer Bank		$	841		$	820		$	825		2.6	%	1.9	%
Commercial Bank		847			629			760			34.7		11.4
Other ^(a)		29			17			26			70.6		11.5
	Total	$	1,717		$	1,466		$	1,611		17.1	%	6.6	%

Income (loss) from continuing operations attributable to Key
Consumer Bank		$	91		$	105		$	177		(13.3	)%	(48.6	)%
Commercial Bank		120			70			277			71.4		(56.7	)
Other ^(a)		(24		)	(29		)	(29		)	N/M		N/M
	Total	$	187		$	146		$	425		28.1	%	(56.0	)%

(a)

Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

TE = Taxable Equivalent, N/M = Not Meaningful



Consumer Bank


dollars in millions							Change 2Q20 vs.
	2Q20		1Q20		2Q19		1Q20		2Q19
Summary of operations
Net interest income (TE)	$	594	$	590	$	594	.7	%	—
Noninterest income	247		230		231		7.4		6.9	%
Total revenue (TE)	841		820		825		2.6		1.9
Provision for credit losses	167		140		40		19.3		317.5
Noninterest expense	555		543		552		2.2		.5
Income (loss) before income taxes (TE)	119		137		233		(13.1	)	(48.9	)
Allocated income taxes (benefit) and TE adjustments	28		32		56		(12.5	)	(50.0	)
Net income (loss) attributable to Key	$	91	$	105	$	177	(13.3	)%	(48.6	)%

Average balances
Loans and leases	$	39,197	$	35,197	$	31,881	11.4	%	22.9	%
Total assets	44,106		38,460		35,469		14.7		24.4
Deposits	79,502		73,320		72,303		8.4		10.0

Assets under management at period end	$	39,722	$	36,189	$	38,942	9.8	%	2.0	%

TE = Taxable Equivalent

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 7



Additional Consumer Bank Data

dollars in millions										Change 2Q20 vs.
	2Q20			1Q20			2Q19			1Q20		2Q19
Noninterest income
Trust and investment services income	$	87		$	93		$	91		(6.5	)%	(4.4	)%
Service charges on deposit accounts	38			55			56			(30.9	)	(32.1	)
Cards and payments income	46			49			54			(6.1	)	(14.8	)
Other noninterest income	76			33			30			130.3		153.3
Total noninterest income	$	247		$	230		$	231		7.4	%	6.9	%

Average deposit balances
NOW and money market deposit accounts	$	49,152		$	45,583		$	42,800		7.8	%	14.8	%
Savings deposits	4,817			4,345			4,506			10.9		6.9
Certificates of deposit ($100,000 or more)	4,520			5,587			6,644			(19.1	)	(32.0	)
Other time deposits	4,296			4,869			5,549			(11.8	)	(22.6	)
Noninterest-bearing deposits	16,717			12,936			12,804			29.2		30.6
Total deposits	$	79,502		$	73,320		$	72,303		8.4	%	10.0	%

Home equity loans
Average balance	$	9,893		$	10,093		$	10,618
Combined weighted-average loan-to-value ratio (at date of origination)	70		%	70		%	70		%
Percent first lien positions	63			62			60

Other data
Branches	1,077			1,082			1,102
Automated teller machines	1,394			1,398			1,430

Consumer Bank Summary of Operations (2Q20 vs. 2Q19)


•	Net income attributable to Key of $91 million for the second quarter of 2020, compared to $177 million for the year-ago quarter


•	Taxable equivalent net interest income was flat compared to the second quarter of 2019 as the lower interest rate environment offset balance sheet growth


•	Average loans and leases increased $7.3 billion, or 22.9%, driven by loan production related to the Paycheck Protection Program, as well as growth from Laurel Road and consumer mortgage


•	Average deposits increased $7.2 billion, or 10.0%, from the second quarter of 2019. This was driven by consumer stimulus payments and lower consumer spend activity


•	Provision for credit losses increased $127 million compared to the second quarter of 2019. The increase in provision for credit losses is mainly attributable to the change in the economic scenario under the CECL accounting methodology, as well as balance sheet growth


•	Noninterest income increased $16 million, or 6.9%, from the year-ago quarter, driven by a record quarter in consumer mortgage income partially offset by lower consumer spend activity


•	Noninterest expense increased $3 million, or .5%, from the year ago quarter

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 8



Commercial Bank


dollars in millions								Change 2Q20 vs.
	2Q20		1Q20			2Q19		1Q20		2Q19
Summary of operations
Net interest income (TE)	$	442	$	410		$	405	7.8	%	9.1	%
Noninterest income	405		219			355		84.9		14.1
Total revenue (TE)	847		629			760		34.7		11.4
Provision for credit losses	314		214			33		46.7		851.5
Noninterest expense	403		353			389		14.2		3.6
Income (loss) before income taxes (TE)	130		62			338		109.7		(61.5	)
Allocated income taxes and TE adjustments	10		(8		)	61		N/M		(83.6	)
Net income (loss) attributable to Key	$	120	$	70		$	277	71.4	%	(56.7	)%

Average balances
Loans and leases	$	68,038	$	60,082		$	57,918	13.2	%	17.5	%
Loans held for sale	2,012		1,607			1,168		25.2		72.3
Total assets	76,974		69,383			65,901		10.9		16.8
Deposits	46,099		36,058			35,960		27.8	%	28.2	%

TE = Taxable Equivalent, N/M = Not Meaningful



Additional Commercial Bank Data

dollars in millions								Change 2Q20 vs.
	2Q20		1Q20			2Q19		1Q20		2Q19
Noninterest income
Trust and investment services income	$	36	$	39		$	31	(7.7	)%	16.1	%
Investment banking and debt placement fees	156		116			162		34.5		(3.7	)
Operating lease income and other leasing gains	46		30			43		53.3		7.0

Corporate services income	45		57			50		(21.1	)	(10.0	)
Service charges on deposit accounts	30		28			27		7.1		11.1
Cards and payments income	44		17			17		158.8		158.8
Payments and services income	119		102			94		16.7		26.6

Commercial mortgage servicing fees	12		18			20		(33.3	)	(40.0	)
Other noninterest income	36		(86		)	5		N/M		620.0
Total noninterest income	$	405	$	219		$	355	84.9	%	14.1	%

N/M = Not Meaningful

Commercial Bank Summary of Operations (2Q20 vs. 2Q19)


•	Net income attributable to Key of $120 million for the second quarter of 2020, compared to $277 million for the year-ago quarter


•	Taxable-equivalent net interest income increased by $37 million, compared to the second quarter of 2019, with balance sheet growth partially offset by lower interest rate environment


•	Average loan and lease balances increased $10.1 billion, or 17.5%, compared to the second quarter of 2019 driven by growth in commercial and industrial loans from line draws and Paycheck Protection Program loans


•	Average deposit balances increased $10.1 billion, or 28.2%, compared to the second quarter of 2019, driven by growth in targeted relationships and the impact of government programs


•	Provision for credit losses increased $281 million compared to the second quarter of 2019. The increase in provision for credit losses is mainly attributable to the change in the economic scenario under the CECL accounting methodology, but also impacted by line draws on commercial credits


•	Noninterest income increased $50 million, or 14.1%, from the second quarter of 2019, driven by higher cards and payments income related to prepaid card revenue, as well as higher other income


•	Noninterest expense increased by $14 million, or 3.6%, from the second quarter of 2019 driven by higher incentives related to strong revenue production

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 9

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

KeyCorp's roots trace back 190 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 $171.2 billion at June 30, 2020.

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 more than 1,000 branches and approximately 1,400 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 Second Quarter 2020 Profit

July 22, 2020

Page 10



CONTACTS:

ANALYSTS	MEDIA
Vernon L. Patterson	Susan Donlan
216.689.0520	216.471.3133
[email protected]	[email protected]

Melanie S. Kaiser	Tracy Pesho
216.689.4545	216.471.2825
[email protected]	[email protected]

	Twitter: @keybank

INVESTOR RELATIONS:	KEY MEDIA NEWSROOM:
www.key.com/ir	www.key.com/newsroom

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key’s actual results to differ from those described in the forward-looking statements can be found in KeyCorp’s Form 10-K for the year ended December 31, 2019, as well as in KeyCorp’s subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others: deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a reversal of the U.S. economic recovery due to financial, political, or other shocks, and the extensive regulation of the U.S. financial services industry. In addition to the aforementioned factors, the COVID–19 global pandemic is adversely affecting us, our clients, and third–party service providers, among others, and its impact may adversely affect our business and results of operations over a period of time. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

Notes to Editors:

A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on Wednesday, July 22, 2020. A replay of the call will be available through August 5, 2020.

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 Second Quarter 2020 Profit

July 22, 2020

Page 11

KeyCorp

Second Quarter 2020

Financial Supplement



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

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 12



Financial Highlights
(dollars in millions, except per share amounts)
			Three months ended
			6/30/2020			3/31/2020			6/30/2019
Summary of operations
	Net interest income (TE)		$	1,025		$	989		$	989
	Noninterest income		692			477			622
		Total revenue (TE)	1,717			1,466			1,611
	Provision for credit losses		482			359			74
	Noninterest expense		1,013			931			1,019
	Income (loss) from continuing operations attributable to Key		185			145			423
	Income (loss) from discontinued operations, net of taxes		2			1			2
	Net income (loss) attributable to Key		187			146			425

	Income (loss) from continuing operations attributable to Key common shareholders		159			118			403
	Income (loss) from discontinued operations, net of taxes		2			1			2
	Net income (loss) attributable to Key common shareholders		161			119			405

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	.16		$	.12		$	.40
	Income (loss) from discontinued operations, net of taxes		—			—			—
	Net income (loss) attributable to Key common shareholders ^(a)		.17			.12			.40

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.16			.12			.40
	Income (loss) from discontinued operations, net of taxes — assuming dilution		—			—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution ^(a)		.17			.12			.40

	Cash dividends declared		.185			.185			.17
	Book value at period end		16.07			15.95			15.07
	Tangible book value at period end		13.12			12.98			12.12
	Market price at period end		12.18			10.37			17.75

Performance ratios
	From continuing operations:
	Return on average total assets		.45		%	.40		%	1.19		%
	Return on average common equity		4.05			3.10			10.94
	Return on average tangible common equity ^(b)		4.96			3.82			13.69
	Net interest margin (TE)		2.76			3.01			3.06
	Cash efficiency ratio ^(b)		57.9			62.3			61.9

	From consolidated operations:
	Return on average total assets		.46		%	.40		%	1.19		%
	Return on average common equity		4.10			3.12			11.00
	Return on average tangible common equity ^(b)		5.02			3.86			13.75
	Net interest margin (TE)		2.76			3.00			3.05
	Loan to deposit ^(c)		80.4			92.1			86.1

Capital ratios at period end
	Key shareholders’ equity to assets		10.2		%	11.1		%	11.7		%
	Key common shareholders’ equity to assets		9.2			10.0			10.5
	Tangible common equity to tangible assets ^(b)		7.6			8.3			8.6
	Common Equity Tier 1^(d)		9.1			8.9			9.6
	Tier 1 risk-based capital ^(d)		10.4			10.2			11.0
	Total risk-based capital ^(d)		12.8			12.2			13.0
	Leverage ^(d)		8.8			9.8			10.0

Asset quality — from continuing operations
	Net loan charge-offs		$	96		$	84		$	65
	Net loan charge-offs to average loans		.36		%	.35		%	.29		%
	Allowance for loan and lease losses		$	1,708		$	1,359		$	890
	Allowance for credit losses		1,906			1,520			954
	Allowance for loan and lease losses to period-end loans		1.61		%	1.32		%	.97		%
	Allowance for credit losses to period-end loans		1.80			1.47			1.04
	Allowance for loan and lease losses to nonperforming loans ^(e)		224.7			215.0			158.6
	Allowance for credit losses to nonperforming loans ^(e)		250.8			240.5			170.1
	Nonperforming loans at period-end ^(e)		$	760		$	632		$	561
	Nonperforming assets at period-end ^(e)		951			844			608
	Nonperforming loans to period-end portfolio loans ^(e)		.72		%	.61		%	.61		%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets ^(e)		.89			.82			.66

Trust assets
	Assets under management		$	39,722		$	36,189		$	38,942

Other data
	Average full-time equivalent employees		16,646			16,529			17,206
	Branches		1,077			1,082			1,102

Taxable-equivalent adjustment			$	7		$	8		$	8

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 13




Financial Highlights (continued)
(dollars in millions, except per share amounts)
		Six months ended
		6/30/2020			6/30/2019
Summary of operations
	Net interest income (TE)	$	2,014		$	1,974
	Noninterest income	1,169			1,158
	Total revenue (TE)	3,183			3,132
	Provision for credit losses	841			136
	Noninterest expense	1,944			1,982
	Income (loss) from continuing operations attributable to Key	330			829
	Income (loss) from discontinued operations, net of taxes	3			3
	Net income (loss) attributable to Key	333			832

	Income (loss) from continuing operations attributable to Key common shareholders	$	277		$	789
	Income (loss) from discontinued operations, net of taxes	3			3
	Net income (loss) attributable to Key common shareholders	280			792

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders	$	.29		$	.79
	Income (loss) from discontinued operations, net of taxes	—			—
	Net income (loss) attributable to Key common shareholders ^(a)	.29			.79

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	.28			.78
	Income (loss) from discontinued operations, net of taxes — assuming dilution	—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution ^(a)	.29			.78

	Cash dividends paid	.37			.34

Performance ratios
	From continuing operations:
	Return on average total assets	.43		%	1.18		%
	Return on average common equity	3.58			10.96
	Return on average tangible common equity ^(b)	4.40			13.69
	Net interest margin (TE)	2.88			3.10
	Cash efficiency ratio ^(b)	60.0			61.9

	From consolidated operations:
	Return on average total assets	.43		%	1.18		%
	Return on average common equity	3.62			11.01
	Return on average tangible common equity ^(b)	4.45			13.74
	Net interest margin (TE)	2.87			3.08

Asset quality — from continuing operations
	Net loan charge-offs	$	180		$	129
	Net loan charge-offs to average total loans	.35		%	.29		%

Other data
	Average full-time equivalent employees	16,587			17,379

Taxable-equivalent adjustment		15			16


(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)	June 30, 2020, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 14

GAAP to Non-GAAP Reconciliations

(dollars in millions)

The table below presents certain non-GAAP financial measures related to “tangible common equity,” “return on average tangible common equity,” “pre-provision net revenue," and “cash efficiency ratio" and certain ratios excluding notable items.

Notable items include certain revenue or expense items that may occur in a reporting period which management does not consider indicative of ongoing financial performance. Management believes it is useful to consider certain financial metrics with and without notable items, in order to enable a better understanding of company results, increase comparability of period-to-period results, and to evaluate and forecast those results.

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 provide greater consistency and comparability between Key’s results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.



	Three months ended									Six months ended
	6/30/2020			3/31/2020			6/30/2019			6/30/2020			6/30/2019
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)	$	17,542		$	17,411		$	16,969
Less: Intangible assets ^(a)	2,877			2,894			2,952
Preferred Stock ^(b)	1,856			1,856			1,856
Tangible common equity (non-GAAP)	$	12,809		$	12,661		$	12,161
Total assets (GAAP)	$	171,192		$	156,197		$	144,545
Less: Intangible assets ^(a)	2,877			2,894			2,952
Tangible assets (non-GAAP)	$	168,315		$	153,303		$	141,593
Tangible common equity to tangible assets ratio (non-GAAP)	7.6		%	8.3		%	8.6		%
Pre-provision net revenue
Net interest income (GAAP)	$	1,018		$	981		$	981		$	1,999		$	1,958
Plus: Taxable-equivalent adjustment	7			8			8			15			16
Noninterest income	692			477			622			1,169			1,158
Less: Noninterest expense	1,013			931			1,019			1,944			1,982
Pre-provision net revenue from continuing operations (non-GAAP)	$	704		$	535		$	592		$	1,239		$	1,150
Average tangible common equity
Average Key shareholders' equity (GAAP)	$	17,688		$	17,216		$	16,531		$	17,452		$	16,119
Less: Intangible assets (average) ^(c)	2,886			2,902			2,959			2,894			2,886
Preferred stock (average)	1,900			1,900			1,762			1,900			1,607
Average tangible common equity (non-GAAP)	$	12,902		$	12,414		$	11,810		$	12,658		$	11,626
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	159		$	118		$	403		$	277		$	789
Plus: Notable items, after tax ^(d)	—			—			40			—			60
Net income (loss) from continuing operations attributable to Key common shareholders excluding notable items (non-GAAP)	$	159		$	118		$	443		$	277		$	849
Average tangible common equity (non-GAAP)	12,902			12,414			11,810			12,658			11,626

Return on average tangible common equity from continuing operations (non-GAAP)	4.96		%	3.82		%	13.69		%	4.40		%	13.69		%
Return on average tangible common equity from continuing operations excluding notable items (non-GAAP)	4.96		%	3.82		%	15.05		%	4.40		%	14.73		%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	161		$	119		$	405		$	280		$	792
Average tangible common equity (non-GAAP)	12,902			12,414			11,810			12,658			11,626

Return on average tangible common equity consolidated (non-GAAP)	5.02		%	3.86		%	13.75		%	4.45		%	13.74		%

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 15



GAAP to Non-GAAP Reconciliations (continued)
(dollars in millions)
	Three months ended									Six months ended
	6/30/2020			3/31/2020			6/30/2019			6/30/2020			6/30/2019
Cash efficiency ratio
Noninterest expense (GAAP)	$	1,013		$	931		$	1,019		$	1,944		$	1,982
Less: Intangible asset amortization	18			17			22			35			44
Adjusted noninterest expense (non-GAAP)	$	995		$	914		$	997		$	1,909		$	1,938
Less: Notable items ^(d)	—			—			52			—			78
Adjusted noninterest expense excluding notable items (non-GAAP)	$	995		$	914		$	945		$	1,909		$	1,860

Net interest income (GAAP)	$	1,018		$	981		$	981		$	1,999		$	1,958
Plus: Taxable-equivalent adjustment	7			8			8			15			16
Noninterest income	692			477			622			1,169			1,158
Total taxable-equivalent revenue (non-GAAP)	$	1,717		$	1,466		$	1,611		$	3,183		$	3,132

Cash efficiency ratio (non-GAAP)	57.9		%	62.3		%	61.9		%	60.0		%	61.9		%

Cash efficiency ratio excluding notable items (non-GAAP)	57.9		%	62.3		%	58.7		%	60.0		%	59.4		%


(a)	For the three months ended June 30, 2020, March 31, 2020, and June 30, 2019, intangible assets exclude $5 million, $6 million, and $10 million, respectively, of period-end purchased credit card receivables.


(b)	Net of capital surplus.


(c)	For the three months ended June 30, 2020, March 31, 2020, and June 30, 2019, average intangible assets exclude $6 million, $7 million, and $11 million, respectively, of average purchased credit card receivables. For the six months ended June 30, 2020, and June 30, 2019, average intangible assets exclude $6 million and $12 million, respectively, of average purchase credit card receivables.


(d)	Additional detail provided in Notable Items table on page 24 of this release.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 16



Consolidated Balance Sheets
(dollars in millions)

			6/30/2020			3/31/2020			6/30/2019
Assets
	Loans		$	106,159		$	103,198		$	91,937
	Loans held for sale		2,007			2,143			1,790
	Securities available for sale		23,600			20,807			21,528
	Held-to-maturity securities		9,075			9,638			10,878
	Trading account assets		645			795			1,005
	Short-term investments		14,036			4,073			2,443
	Other investments		655			679			632
		Total earning assets	156,177			141,333			130,213
	Allowance for loan and lease losses		(1,708		)	(1,359		)	(890		)
	Cash and due from banks		1,059			865			607
	Premises and equipment		776			791			829
	Goodwill		2,664			2,664			2,664
	Other intangible assets		218			236			298
	Corporate-owned life insurance		4,251			4,243			4,201
	Accrued income and other assets		6,976			6,604			5,633
	Discontinued assets		779			820			990
		Total assets	$	171,192		156,197			144,545

Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	78,853		$	71,005		$	63,619
		Savings deposits	5,371			4,753			4,747
		Certificates of deposit ($100,000 or more)	4,476			5,630			8,084
		Other time deposits	4,011			4,623			5,524
		Total interest-bearing deposits	92,711			86,011			81,974
		Noninterest-bearing deposits	42,802			29,293			27,972
		Total deposits	135,513			115,304			109,946
	Federal funds purchased and securities sold under repurchase agreements		267			2,444			161
	Bank notes and other short-term borrowings		1,716			4,606			720
	Accrued expense and other liabilities		2,420			2,700			2,435
	Long-term debt		13,734			13,732			14,312
		Total liabilities	153,650			138,786			127,574

Equity
	Preferred stock		1,900			1,900			1,900
	Common shares		1,257			1,257			1,257
	Capital surplus		6,240			6,222			6,266
	Retained earnings		12,154			12,174			12,005
	Treasury stock, at cost		(4,945		)	(4,956		)	(4,457		)
	Accumulated other comprehensive income (loss)		936			814			(2		)
		Key shareholders’ equity	17,542			17,411			16,969
	Noncontrolling interests		—			—			2
		Total equity	17,542			17,411			16,971
Total liabilities and equity			$	171,192		$	156,197		$	144,545

Common shares outstanding (000)			975,947			975,319			1,003,114

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 17



Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended							Six months ended
			6/30/2020		3/31/2020			6/30/2019		6/30/2020			6/30/2019
Interest income
	Loans		$	980	$	1,026		$	1,082	$	2,006		$	2,148
	Loans held for sale		21		19			15		40			28
	Securities available for sale		121		129			135		250			264
	Held-to-maturity securities		56		62			67		118			135
	Trading account assets		5		8			9		13			17
	Short-term investments		7		6			17		13			33
	Other investments		—		1			4		1			8
		Total interest income	1,190		1,251			1,329		2,441			2,633
Interest expense
	Deposits		96		169			223		265			425
	Federal funds purchased and securities sold under repurchase agreements		—		6			—		6			1
	Bank notes and other short-term borrowings		5		5			5		10			9
	Long-term debt		71		90			120		161			240
		Total interest expense	172		270			348		442			675
Net interest income			1,018		981			981		1,999			1,958
Provision for credit losses			482		359			74		841			136
Net interest income after provision for credit losses			536		622			907		1,158			1,822
Noninterest income
	Trust and investment services income		123		133			122		256			237
	Investment banking and debt placement fees		156		116			163		272			273
	Service charges on deposit accounts		68		84			83		152			165
	Operating lease income and other leasing gains		60		30			44		90			81
	Corporate services income		52		62			53		114			108
	Cards and payments income		91		66			73		157			139
	Corporate-owned life insurance income		35		36			33		71			65
	Consumer mortgage income		62		20			15		82			26
	Commercial mortgage servicing fees		12		18			19		30			37
	Other income		33		(88		)	17		(55		)	27
		Total noninterest income	692		477			622		1,169			1,158
Noninterest expense
	Personnel		572		515			589		1,087			1,152
	Net occupancy		71		76			73		147			145
	Computer processing		56		55			56		111			110
	Business services and professional fees		49		44			45		93			89
	Equipment		25		24			24		49			48
	Operating lease expense		34		36			32		70			58
	Marketing		24		21			24		45			43
	FDIC assessment		8		9			9		17			16
	Intangible asset amortization		18		17			22		35			44
	OREO expense, net		6		3			4		9			7
	Other expense		150		131			141		281			270
		Total noninterest expense	1,013		931			1,019		1,944			1,982
Income (loss) from continuing operations before income taxes			215		168			510		383			998
	Income taxes		30		23			87		53			169
Income (loss) from continuing operations			185		145			423		330			829
	Income (loss) from discontinued operations, net of taxes		2		1			2		3			3
Net income (loss)			187		146			425		333			832
	Less: Net income (loss) attributable to noncontrolling interests		—		—			—		—			—
Net income (loss) attributable to Key			$	187	$	146		$	425	$	333		$	832

Income (loss) from continuing operations attributable to Key common shareholders			$	159	$	118		$	403	$	277		$	789
Net income (loss) attributable to Key common shareholders			161		119			405		280			792
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.16	$	.12		$	.40	$	.29		$	.79
Income (loss) from discontinued operations, net of taxes			—		—			—		—			—
Net income (loss) attributable to Key common shareholders ^(a)			.17		.12			.40		.29			.79
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.16	$	.12		$	.40	$	.28		$	.78
Income (loss) from discontinued operations, net of taxes			—		—			—		—			—
Net income (loss) attributable to Key common shareholders ^(a)			.17		.12			.40		.29			.78

Cash dividends declared per common share			$	.185	$	.185		$	.17	$	.37		$	.34

Weighted-average common shares outstanding (000)			967,147		967,446			999,163		967,380			1,003,047
	Effect of common share options and other stock awards		4,994		8,664			8,801		6,892			9,318
Weighted-average common shares and potential common shares outstanding (000) ^(b)			972,141		976,110			1,007,964		974,272			1,012,365


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


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

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 18



Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)
		Second Quarter 2020							First Quarter 2020							Second Quarter 2019
		Average					Yield/		Average					Yield/		Average					Yield/
		Balance			Interest ^(a)		Rate ^(a)		Balance			Interest ^(a)		Rate ^(a)		Balance			Interest ^(a)		Rate ^(a)
Assets
	Loans: ^{(b), (c)}
	Commercial and industrial ^(d)	$	60,480		$	518	3.44	%	$	49,466		$	508	4.13	%	$	47,227		$	547	4.65	%
	Real estate — commercial mortgage	13,510			128		3.80		13,548			155		4.60		13,866			175		5.06
	Real estate — construction	1,756			17		3.97		1,666			20		4.75		1,423			20		5.41
	Commercial lease financing	4,584			33		2.96		4,565			39		3.39		4,476			41		3.65
	Total commercial loans	80,330			696		3.49		69,245			722		4.19		66,992			783		4.69
	Real estate — residential mortgage	7,783			69		3.57		7,215			68		3.75		5,790			58		4.03
	Home equity loans	9,949			97		3.89		10,155			113		4.49		10,701			135		5.05
	Consumer direct loans	4,152			55		5.24		3,709			54		5.91		2,352			43		7.39
	Credit cards	983			25		10.22		1,082			31		11.50		1,091			31		11.26
	Consumer indirect loans	4,744			45		3.82		4,768			46		3.86		3,859			40		4.15
	Total consumer loans	27,611			291		4.22		26,929			312		4.66		23,793			307		5.17
	Total loans	107,941			987		3.67		96,174			1,034		4.32		90,785			1,090		4.81
	Loans held for sale	2,463			21		3.50		1,885			19		3.99		1,302			15		4.56
	Securities available for sale ^{(b), (e)}	20,749			121		2.43		21,172			129		2.49		21,086			135		2.54
	Held-to-maturity securities ^(b)	9,331			56		2.43		9,820			62		2.51		11,058			67		2.41
	Trading account assets	760			5		2.43		1,065			8		2.95		1,124			9		3.28
	Short-term investments	7,892			7		.31		1,764			6		1.42		3,200			17		2.23
	Other investments ^(e)	672			—		.29		614			1		.40		640			4		2.00
	Total earning assets	149,808			1,197		3.22		132,494			1,259		3.82		129,195			1,337		4.14
	Allowance for loan and lease losses	(1,413		)					(1,097		)					(881		)
	Accrued income and other assets	15,704							14,831							14,321
	Discontinued assets	793							838							1,009
	Total assets	$	164,892						$	147,066						$	143,644
Liabilities
	NOW and money market deposit accounts	$	75,297		56		.30		$	66,721		112		.67		$	63,071		147		.93
	Savings deposits	5,130			—		.04		4,655			1		.05		4,781			1		.09
	Certificates of deposit ($100,000 or more)	4,950			24		1.93		6,310			34		2.20		8,147			48		2.37
	Other time deposits	4,333			16		1.52		4,901			22		1.81		5,569			27		1.93
	Total interest-bearing deposits	89,710			96		.43		82,587			169		.82		81,568			223		1.10
	Federal funds purchased and securities sold under repurchase agreements	242			—		.03		2,002			6		1.17		194			—		.20
	Bank notes and other short-term borrowings	2,869			5		.57		1,401			5		1.58		842			5		2.46
	Long-term debt ^{(f), (g)}	12,954			71		2.30		12,443			90		2.96		13,213			120		3.67
	Total interest-bearing liabilities	105,775			172		.66		98,433			270		1.10		95,817			348		1.46
	Noninterest-bearing deposits	38,267							27,741							28,033
	Accrued expense and other liabilities	2,369							2,838							2,253
	Discontinued liabilities ^(g)	793							838							1,009
	Total liabilities	147,204							129,850							127,112
Equity
	Key shareholders’ equity	17,688							17,216							16,531
	Noncontrolling interests	—							—							1
	Total equity	17,688							17,216							16,532
	Total liabilities and equity	$	164,892						$	147,066						$	143,644
Interest rate spread (TE)							2.56	%						2.72	%						2.68	%
Net interest income (TE) and net interest margin (TE)					1,025		2.76	%				989		3.01	%				989		3.06	%
TE adjustment ^(b)					7							8							8
	Net interest income, GAAP basis				$	1,018						$	981						$	981


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


(b)	Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended June 30, 2020, March 31, 2020, and June 30, 2019.


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


(d)	Commercial and industrial average balances include $135 million, $145 million, and $141 million of assets from commercial credit cards for the three months ended June 30, 2020, March 31, 2020, and June 30, 2019, respectively.


(e)	Yield is calculated on the basis of amortized cost.


(f)	Rate calculation excludes basis adjustments related to fair value hedges.


(g)	A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.

TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 19



Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)
		Six months ended June 30, 2020							Six months ended June 30, 2019
		Average					Yield/		Average					Yield/
		Balance			Interest ^(a)		Rate ^(a)		Balance			Interest ^(a)		Rate ^(a)
Assets
	Loans: ^{(b), (c)}
	Commercial and industrial ^(d)	$	54,973		$	1,026	3.75	%	$	46,616		$	1,079	4.67	%
	Real estate — commercial mortgage	13,529			283		4.20		14,094			354		5.07
	Real estate — construction	1,711			37		4.35		1,492			41		5.45
	Commercial lease financing	4,575			72		3.17		4,486			82		3.66
	Total commercial loans	74,788			1,418		3.81		66,688			1,556		4.70
	Real estate — residential mortgage	7,500			137		3.66		5,667			114		4.02
	Home equity loans	10,052			210		4.19		10,847			272		5.06
	Consumer direct loans	3,930			109		5.56		2,109			80		7.68
	Credit cards	1,032			56		10.89		1,098			63		11.53
	Consumer indirect loans	4,756			91		3.84		3,811			79		4.14
	Total consumer loans	27,270			603		4.44		23,532			608		5.20
	Total loans	102,058			2,021		3.98		90,220			2,164		4.83
	Loans held for sale	2,174			40		3.71		1,212			28		4.64
	Securities available for sale ^{(b), (e)}	20,960			250		2.46		20,649			264		2.52
	Held-to-maturity securities ^(b)	9,575			118		2.47		11,213			135		2.41
	Trading account assets	913			13		2.73		1041			17		3.31
	Short-term investments	4,828			13		.52		2,965			33		2.25
	Other investments ^(e)	643			1		.34		647			8		2.35
	Total earning assets	141,151			2,456		3.51		127,947			2,649		4.16
	Allowance for loan and lease losses	(1255		)					(879		)
	Accrued income and other assets	15,268							14,317
	Discontinued assets	815							1,037
	Total assets	$	155,979						$	142,422
Liabilities
	NOW and money market deposit accounts	$	71,009		168		.47		$	61,928		277		.90
	Savings deposits	4,893			1		.04		4,796			2		.08
	Certificates of deposit ($100,000 or more)	5,630			58		2.08		8,261			95		2.31
	Other time deposits	4,617			38		1.67		5,535			51		1.86
	Total interest-bearing deposits	86,149			265		.62		80,520			425		1.06
	Federal funds purchased and securities sold under repurchase agreements	1,122			6		1.05		301			1		.67
	Bank notes and other short-term borrowings	2,135			10		.90		746			9		2.59
	Long-term debt ^{(f), (g)}	12,698			161		2.62		13,187			240		3.67
	Total interest-bearing liabilities	102,104			442		.87		94,754			675		1.44
	Noninterest-bearing deposits	33,004							28,074
	Accrued expense and other liabilities	2,604							2,437
	Discontinued liabilities ^(g)	815							1,037
	Total liabilities	138,527							126,302
Equity
	Key shareholders’ equity	17,452							16,119
	Noncontrolling interests	—							1
	Total equity	17,452							16,120
	Total liabilities and equity	$	155,979						$	142,422
Interest rate spread (TE)							2.64	%						2.72	%
Net interest income (TE) and net interest margin (TE)					2,014		2.88	%				1,974		3.10	%
TE adjustment ^(b)					15							16
	Net interest income, GAAP basis				$	1,999						$	1,958


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


(b)	Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the six months ended June 30, 2020, and June 30, 2019, respectively.


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


(d)	Commercial and industrial average balances include $140 million and $137 million of assets from commercial credit cards for the six months ended June 30, 2020, and June 30, 2019, respectively.


(e)	Yield is calculated on the basis of amortized cost.


(f)	Rate calculation excludes basis adjustments related to fair value hedges.


(g)	A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.

TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 20



Noninterest Expense
(dollars in millions)

	Three months ended						Six months ended
	6/30/2020		3/31/2020		6/30/2019		6/30/2020		6/30/2019
Personnel ^(a)	$	572	$	515	$	589	$	1,087	$	1,152
Net occupancy	71		76		73		147		145
Computer processing	56		55		56		111		110
Business services and professional fees	49		44		45		93		89
Equipment	25		24		24		49		48
Operating lease expense	34		36		32		70		58
Marketing	24		21		24		45		43
FDIC assessment	8		9		9		17		16
Intangible asset amortization	18		17		22		35		44
OREO expense, net	6		3		4		9		7
Other expense	150		131		141		281		270
Total noninterest expense	$	1,013	$	931	$	1,019	$	1,944	$	1,982
Average full-time equivalent employees ^(b)	16,646		16,529		17,206		16,587		17,379


(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
(in millions)

	Three months ended						Six months ended
	6/30/2020		3/31/2020		6/30/2019		6/30/2020		6/30/2019
Salaries and contract labor	$	332	$	316	$	322	$	648	$	642
Incentive and stock-based compensation	162		102		155		264		287
Employee benefits	76		92		83		168		176
Severance	2		5		29		7		47
Total personnel expense	$	572	$	515	$	589	$	1,087	$	1,152

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 21



Loan Composition
(dollars in millions)

							Percent change 6/30/2020 vs
	6/30/2020		3/31/2020		6/30/2019		3/31/2020		6/30/2019
Commercial and industrial ^(a)	$	58,297	$	55,983	$	48,544	4.1	%	20.1	%
Commercial real estate:
Commercial mortgage	13,465		13,548		13,299		(.6	)	1.2
Construction	1,919		1,710		1,439		12.2		33.4
Total commercial real estate loans	15,384		15,258		14,738		.8		4.4
Commercial lease financing ^(b)	4,524		4,677		4,578		(3.3	)	(1.2	)
Total commercial loans	78,205		75,918		67,860		3.0		15.2
Residential — prime loans:
Real estate — residential mortgage	8,149		7,498		6,053		8.7		34.6
Home equity loans	9,782		10,103		10,575		(3.2	)	(7.5	)
Total residential — prime loans	17,931		17,601		16,628		1.9		7.8
Consumer direct loans	4,327		3,833		2,350		12.9		84.1
Credit cards	974		1,041		1,096		(6.4	)	(11.1	)
Consumer indirect loans	4,722		4,805		4,003		(1.7	)	18.0
Total consumer loans	27,954		27,280		24,077		2.5		16.1
Total loans ^{(c), (d)}	$	106,159	$	103,198	$	91,937	2.9	%	15.5	%


(a)	Loan balances include $132 million, $143 million, and $143 million of commercial credit card balances at June 30, 2020, March 31, 2020, and June 30, 2019, respectively.


(b)	Commercial lease financing includes receivables held as collateral for a secured borrowing of $18 million, $14 million, and $11 million at June 30, 2020, March 31, 2020, and June 30, 2019, respectively. Principal reductions are based on the cash payments received from these related receivables.


(c)	Total loans exclude loans of $780 million at June 30, 2020, $821 million at March 31, 2020, and $964 million at June 30, 2019, related to the discontinued operations of the education lending business.


(d)	Accrued interest of $225 million, $241 million, and $272 million at June 30, 2020, March 31, 2020, and June 30, 2019, 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)

							Percent change 6/30/2020 vs
	6/30/2020		3/31/2020		6/30/2019		3/31/2020		6/30/2019
Commercial and industrial	$	419	$	446	$	255	(6.1	)%	64.3	%
Real estate — commercial mortgage	1,107		1,284		1,123		(13.8	)	(1.4	)
Commercial lease financing	—		8		—		N/M		N/M
Real estate — residential mortgage	250		152		164		64.5		52.4
Consumer direct loans	231		253		248		(8.7	)	(6.9	)
Total loans held for sale ^(a)	$	2,007	$	2,143	$	1,790	(6.3	)%	12.1	%


(a)	Total loans held for sale include Real estate — residential mortgage loans held for sale at fair value of $250 million at June 30, 2020, $152 million at March 31, 2020, and $164 million at June 30, 2019.



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

	2Q20			1Q20			4Q19			3Q19			2Q19
Balance at beginning of period	$	2,143		$	1,334		$	1,598		$	1,790		$	894
New originations	3,621			3,333			3,659			3,222			3,218
Transfers from (to) held to maturity, net	(15		)	200			26			237			42
Loan sales	(3,679		)	(2,649		)	(3,933		)	(3,602		)	(2,358		)
Loan draws (payments), net	(61		)	(77		)	(18		)	(49		)	(6		)
Valuation adjustments	(2		)	2			2			—			—
Balance at end of period ^(a)	$	2,007		$	2,143		$	1,334		$	1,598		$	1,790


(a)	Total loans held for sale include Real estate — residential mortgage loans held for sale at fair value of $250 million at June 30, 2020, $152 million at March 31, 2020, $140 million at December 31, 2019, $120 million at September 30, 2019, and $164 million at June 30, 2019.

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 22



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

	Three months ended									Six months ended
	6/30/2020			3/31/2020			6/30/2019			6/30/2020			6/30/2019
Average loans outstanding	$	107,941		$	96,174		$	90,785		$	102,058		$	90,220
Allowance for loan and lease losses at the end of the prior period	$	1,359		$	900		$	883		$	900		$	883
Cumulative effect from change in accounting principle ^(a)	—			204			—			204			—
Allowance for loan and lease losses at the beginning of the period	1,359			1,104			883			1,104			883
Loans charged off:
Commercial and industrial	71			60			30			131			66

Real estate — commercial mortgage	2			3			1			5			6
Real estate — construction	—			—			—			—			4
Total commercial real estate loans	2			3			1			5			10
Commercial lease financing	4			2			16			6			24
Total commercial loans	77			65			47			142			100
Real estate — residential mortgage	2			—			1			2			2
Home equity loans	2			4			6			6			10
Consumer direct loans	10			12			10			22			20
Credit cards	12			11			12			23			23
Consumer indirect loans	7			9			8			16			16
Total consumer loans	33			36			37			69			71
Total loans charged off	110			101			84			211			171
Recoveries:
Commercial and industrial	5			5			6			10			16

Real estate — commercial mortgage	—			1			1			1			2
Total commercial real estate loans	—			1			1			1			2
Commercial lease financing	1			—			2			1			3
Total commercial loans	6			6			9			12			21
Real estate — residential mortgage	—			—			—			—			1
Home equity loans	1			2			2			3			4
Consumer direct loans	2			2			2			4			3
Credit cards	2			2			2			4			4
Consumer indirect loans	3			5			4			8			9
Total consumer loans	8			11			10			19			21
Total recoveries	14			17			19			31			42
Net loan charge-offs	(96		)	(84		)	(65		)	(180		)	(129		)
Provision (credit) for loan and lease losses	445			339			72			784			136
Allowance for loan and lease losses at end of period	$	1,708		$	1,359		$	890		$	1,708		$	890

Liability for credit losses on lending-related commitments at the end of the prior period	$	161		$	68		$	62		$	68		$	64
Liability for credit losses on contingent guarantees at the end of the prior period	—			7			—			7			—
Cumulative effect from change in accounting principle ^{(a), (b)}	—			66			—			66			—
Liability for credit losses on lending-related commitments at beginning of period	161			141			62			141			64
Provision (credit) for losses on lending-related commitments	37			20			2			57			—
Liability for credit losses on lending-related commitments at end of period ^(c)	$	198		$	161		$	64		$	198		$	64

Total allowance for credit losses at end of period	$	1,906		$	1,520		$	954		$	1,906		$	954

Net loan charge-offs to average total loans	.36		%	.35		%	.29		%	.35		%	.29		%
Allowance for loan and lease losses to period-end loans	1.61			1.32			.97			1.61			.97
Allowance for credit losses to period-end loans	1.80			1.47			1.04			1.80			1.04
Allowance for loan and lease losses to nonperforming loans	224.7			215.0			158.6			224.7			158.6
Allowance for credit losses to nonperforming loans	250.8			240.5			170.1			250.8			170.1

Discontinued operations — education lending business:
Loans charged off	$	2		$	2		$	4		$	4		$	8
Recoveries	2			1			1			3			2
Net loan charge-offs	—			$	(1	)	$	(3	)	$	(1	)	$	(6	)


(a)	The cumulative effect from change in accounting principle relates to the January 1, 2020, adoption of ASU 2016-13.


(b)	March 31, 2020, amount excludes $4 million related to the provision for other financial assets.


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

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 23



Asset Quality Statistics From Continuing Operations
(dollars in millions)
	2Q20			1Q20			4Q19			3Q19			2Q19
Net loan charge-offs	$	96		$	84		$	99		$	196		$	65
Net loan charge-offs to average total loans	.36		%	.35		%	.42		%	.85		%	.29		%
Allowance for loan and lease losses	$	1,708		$	1,359		$	900		$	893		$	890
Allowance for credit losses ^(a)	1,906			1,520			968			958			954
Allowance for loan and lease losses to period-end loans	1.61		%	1.32		%	.95		%	.96		%	.97		%
Allowance for credit losses to period-end loans	1.80			1.47			1.02			1.03			1.04
Allowance for loan and lease losses to nonperforming loans	224.7			215.0			156.0			152.6			158.6
Allowance for credit losses to nonperforming loans	250.8			240.5			167.8			163.8			170.1
Nonperforming loans at period end	$	760		$	632		$	577		$	585		$	561
Nonperforming assets at period end	951			844			715			711			608
Nonperforming loans to period-end portfolio loans	.72		%	.61		%	.61		%	.63		%	.61		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.89			.82			.75			.77			.66


(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)
	6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019
Commercial and industrial	$	404		$	277		$	264		$	238		$	189

Real estate — commercial mortgage	91			87			83			92			85
Real estate — construction	1			2			2			2			2
Total commercial real estate loans	92			89			85			94			87
Commercial lease financing	9			5			6			7			7
Total commercial loans	505			371			355			339			283
Real estate — residential mortgage	89			89			48			42			62
Home equity loans	141			143			145			179			191
Consumer direct loans	3			4			4			3			3
Credit cards	2			3			3			2			2
Consumer indirect loans	20			22			22			20			20
Total consumer loans	255			261			222			246			278
Total nonperforming loans	760			632			577			585			561
OREO	112			119			35			39			38
Nonperforming loans held for sale	75			89			94			78			—
Other nonperforming assets	4			4			9			9			9
Total nonperforming assets	$	951		$	844		$	715		$	711		$	608
Accruing loans past due 90 days or more	87			128			97			54			74
Accruing loans past due 30 through 89 days	419			393			329			366			299
Restructured loans — accruing and nonaccruing ^(a)	310			340			347			347			395
Restructured loans included in nonperforming loans ^(a)	166			172			183			176			228
Nonperforming assets from discontinued operations — education lending business	7			7			7			7			7
Nonperforming loans to period-end portfolio loans	.72		%	.61		%	.61		%	.63		%	.61		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.89			.82			.75			.77			.66

(a)

Restructured loans (i.e., troubled debt restructuring) are those for which Key, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.



Summary of Changes in Nonperforming Loans From Continuing Operations
(in millions)
	2Q20			1Q20			4Q19			3Q19			2Q19
Balance at beginning of period	$	632		$	577		$	585		$	561		$	548
Loans placed on nonaccrual status ^(a)	293			219			268			271			189
Charge-offs	(111		)	(100		)	(114		)	(91		)	(84		)
Loans sold	(5		)	(4		)	(1		)	—			(38		)
Payments	(29		)	(31		)	(59		)	(37		)	(23		)
Transfers to OREO	—			(3		)	(3		)	(4		)	(4		)
Transfers to nonperforming loans held for sale	—			—			(47		)	(78		)	—
Loans returned to accrual status	(20		)	(26		)	(52		)	(37		)	(27		)
Balance at end of period	$	760		$	632		$	577		$	585		$	561

(a)

Purchase credit impaired (PCI) loans meeting nonperforming criteria were historically excluded from Key's nonperforming disclosures. As a result of CECL implementation on January 1, 2020, PCI loans became purchased credit deteriorated (PCD) loans. PCD loans that met the definition of nonperforming are now included in nonperforming disclosures, resulting in a $45 million increase in nonperforming loans in the first quarter of 2020.

KeyCorp Reports Second Quarter 2020 Profit

July 22, 2020

Page 24



Line of Business Results
(dollars in millions)

																Percentage change 2Q20 vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19
Consumer Bank
Summary of operations
Total revenue (TE)	$	841		$	820		$	825		$	833		$	825		2.6	%	1.9	%
Provision for credit losses	167			140			55			48			40			19.3		317.5
Noninterest expense	555			543			552			531			552			2.2		.5
Net income (loss) attributable to Key	91			105			166			194			177			(13.3	)	(48.6	)
Average loans and leases	39,197			35,197			34,148			32,760			31,881			11.4		22.9
Average deposits	79,502			73,320			73,561			72,995			72,303			8.4		10.0
Net loan charge-offs	39			43			43			40			40			(9.3	)	(2.5	)
Net loan charge-offs to average total loans	.40		%	.49		%	.50		%	.48		%	.50		%	N/A		N/A
Nonperforming assets at period end	$	332		$	342		$	306		$	354		$	366		(2.9	)	(9.3	)
Return on average allocated equity	10.38		%	12.18		%	19.27		%	22.82		%	21.75		%	N/A		N/A

Commercial Bank
Summary of operations
Total revenue (TE)	$	847		$	629		$	771		$	779		$	760		34.7	%	11.4	%
Provision for credit losses	314			214			38			32			33			46.7		851.5
Noninterest expense	403			353			388			372			389			14.2		3.6
Net income (loss) attributable to Key	120			70			315			304			277			71.4		(56.7	)
Average loans and leases	68,038			60,082			58,535			58,215			57,918			13.2		17.5
Average loans held for sale	2,012			1,607			1,465			1,325			1,168			25.2		72.3
Average deposits	46,099			36,058			38,224			36,204			35,960			27.8		28.2
Net loan charge-offs	57			40			39			35			23			42.5		147.8
Net loan charge-offs to average total loans	.34		%	.27		%	.26		%	.24		%	.16		%	N/A		N/A
Nonperforming assets at period end	$	616		$	407		$	402		$	351		$	235		51.4		162.1
Return on average allocated equity	10.00		%	6.00		%	26.69		%	26.37		%	24.09		%	N/A		N/A

TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful



Notable Items
(in millions)

	Three months ended					Six months ended
	6/30/2020	3/31/2020	6/30/2019			6/30/2020	6/30/2019
Efficiency initiative expenses	—	—	$	(50	)	—	$	(76	)
Laurel Road acquisition expenses	—	—	(2		)	—	(2		)
Total notable items	—	—	$	(52	)	—	$	(78	)
Income taxes	—	—	(12		)	—	(18		)
Total notable items, after tax	—	—	$	(40	)	—	$	(60	)

KeyCorp Second Quarter 2020 Earnings Review July 22, 2020 Chris Gorman Don Kimble Chairman and Vice Chairman and Chief Executive Officer Chief Financial Officer

FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “seek,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible,” “potential,” “strategy,” “opportunities,” or “trends,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp’s control.) Actual results may differ materially from current projections. Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward-looking Statements” and “Risk Factors” in KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2019 and in other filings of KeyCorp with the Securities and Exchange Commission (the “SEC”). In addition to the aforementioned factors, the COVID-19 global pandemic is adversely affecting us, our clients, and our third-party service providers, among others, and its impact may adversely affect our business and results of operations over a period of time. Risks related to COVID-19 are more fully described under “Risk Factors” in KeyCorp’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward- looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir . Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. This presentation also includes certain non-GAAP financial measures related to “tangible common equity,” “cash efficiency ratio,” “pre-provision net revenue,” and certain financial measures excluding notable items. Notable items include certain revenue or expense items that may occur in a reporting period in which management does not consider indicative of ongoing financial performance. Management believes it is useful for the investment community to consider financial metrics with and without notable items in order to enable a better understanding of company results, facilitate comparability of period-to-period financial results, and to evaluate and forecast those results. Although Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of results under GAAP. For more information on these calculations and to view the reconciliations to the most comparable GAAP measures, please refer to the appendix of this presentation, or page 44 of our Form 10-Q dated March 31, 2020. GAAP: Generally Accepted Accounting Principles 2

2Q20 Investor Themes . Positive operating leverage versus the year-ago quarter with record PPNR − Revenue up 17% from prior quarter: reflects strength in NII and fee income (investment banking & debt placement fees, cards and payments income, consumer mortgage income) − Expenses reflect higher production-related variable costs, payments business costs, and Financial COVID-related expenses . Results reflect provision for credit losses of $482 MM: exceeded net charge-offs by $386 MM . Balance sheet strength: double-digit growth in loans and deposits vs. prior quarter and prior year − Paycheck Protection Program: >$8 billion of funding to support small business clients . Strong credit discipline: maintaining moderate risk profile Credit − Net charge-offs to average loans of 36 basis points Quality . Allowance for loan and lease losses to period-end loans of 1.61% (1.73% excl. PPP loans) . CET1 ratio of 9.1% within targeted range . Well-positioned to weather adverse operating environments: announced preliminary stress Capital and capital buffer of 2.5% (minimum required) Liquidity − Declared 3Q20 dividend of $.185 per common share (consistent with 2Q20 level) . Strong capital and liquidity: committed to continuing to support clients and play a role in revitalizing economy PPNR = Pre-provision net revenue 3

Financial Review 4

Financial Highlights Continuing operations, unless otherwise noted 2Q20 1Q20 2Q19 LQ ∆ Y/Y ∆ EPS – assuming dilution $ .16 $ .12 $ .40 33.3 % (60.0) % Cash efficiency ratio (a) 57.9 % 62.3 % 61.9 % (440) bps (394) bps (a) Profitability Return on average tangible common equity 5.0 3.8 13.7 114 (873) Return on average total assets .45 .40 1.19 5 (74) Net interest margin 2.76 3.01 3.06 (25) (30) Common Equity Tier 1 (b) 9.1 % 8.9 % 9.6 % 20 bps (50) bps Capital Tier 1 risk-based capital (b) 10.4 10.2 11.0 22 (58) Tangible common equity to tangible assets (a) 7.6 8.3 8.6 (65) (98) NCOs to average loans .36 % .35 % .29 % 1 bps 7 bps Asset NPLs to EOP portfolio loans .72 .61 .61 11 11 Quality Allowance for loan and lease losses to EOP loans 1.61 1.32 .97 29 64 EOP = End of Period (a) Non-GAAP measure: see Appendix for reconciliations 5 (b) 6/30/20 ratios are estimated

Loans Total Average Loans Highlights $ in billions vs. Prior Year $110 $108 6.00% PPP $6 . Average loans up 19% from 2Q19 $100 $102 $91 − Commercial balances reflect >$6 B of PPP 5.00% $90 production, broad-based core C&I growth and 4.81% increased utilization $80 3.67% 4.00% − Consumer loan growth (+16%) driven by momentum from Laurel Road and consumer $70 mortgage $60 3.00% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Total average loans Loan yield vs. Prior Quarter Portfolio Detail . Average loans up 12% from 1Q20 $ in billions − Commercial balances reflect >$6 B of PPP C&I Consumer production $60 $28 − Consumer loans up 2.5% reflecting:  $700 MM Laurel Road originations in 2Q20  Record $2.2 B funded residential mortgage $47 $24 volume 2Q19 2Q20 2Q19 2Q20 6

Deposits Average Deposits Highlights $ in billions $140 $128 1.40% . Interest-bearing deposit costs down 39 bps from 1Q20, reflecting impact of lower interest rates $120 $110 1.20% . Strong and stable deposit base $100 1.10% 1.00% − 32% noninterest-bearing (a) $80 0.80%34% .82% − ~60% stable retail and low-cost escrow $60 .43% 0.60% − 80% loan to deposit ratio (b) $40 0.40% vs. Prior Year $20 .30% 0.20% . Average deposits up 17% from 2Q19 $0 0.00% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 − Growth from consumer and commercial relationships Commercial Cost of total deposits Consumer x Cost of total interest-bearing deposits − Partially offset by decline in time deposits as a result of lower interest rates 2Q20 Average Deposit Mix $ in billions vs. Prior Quarter $9.3 . Average deposit balances up 16% from 1Q20 $5.1 Noninterest-bearing − Broad-based commercial growth $38.3 NOW and MMDA − Consumer growth from stimulus payments and Savings lower spending $75.3 CDs and other time deposits − Partially offset by a decline in time deposits as a result of lower interest rates (a) Based on period-end balances 7 (b) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits

Net Interest Income and Margin Net Interest Income & Net Interest Margin Trend (TE) Highlights $ in millions; continuing operations vs. Prior Year $1,100 4.0% $1,025 $989 . Net interest income up $36 MM (+4%) from 2Q19 $1,000 3.5% − Largely driven by higher earning asset $900 3.06% balances $800 2.76% 3.0% − Partially offset by a lower net interest margin $700 . Lower NIM driven by the impact from lower 2.5% interest rates, elevated levels of liquidity, and PPP $600 program participation $500 2.0% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 vs. Prior Quarter Net interest income (TE)x Net Interest Margin (TE) . Net interest income up $36 MM (+4%) from 1Q20 − Largely driven by higher earning asset balances NIM Change vs. Prior Quarter 1Q20: 3.01% − Partially offset by a lower net interest margin Elevated liquidity (.12) . Lower NIM driven by elevated levels of liquidity, Lower interest rates (.07) impact from lower interest rates, and PPP Paycheck Protection Program / other (.06) program participation Total change (.25) 2Q20: 2.76% TE = Taxable equivalent 8

Noninterest Income Noninterest Income Highlights vs. Prior Year $ in millions up / (down) 2Q20 vs. 2Q19 vs. 1Q20 . Noninterest income up $70 MM (+11%) from 2Q19 Trust and investment services income $ 123 $ 1 $ (10) Investment banking and debt 156 (7) 40 − Primarily driven by record quarter in consumer placement fees mortgage business (+$47 MM) Service charges on deposit accounts 68 (15) (16) − Increase in cards and payments income driven Operating lease income and other 60 16 30 by prepaid card activity and operating lease leasing gains income related to gains from the sale of Corporate services income 52 (1) (10) leveraged leases Cards and payments income 91 18 25 − Partially offset by a decline in service charges Corporate-owned life insurance 35 2 (1) on deposit accounts reflecting lower activity Consumer mortgage income 62 47 42 levels and higher fee waivers Commercial mortgage servicing fees 12 (7) (6) Other income 33 16 121 vs. Prior Quarter Total noninterest income $ 692 $ 70 $ 215 . Noninterest income up $215 MM (+45%) from 1Q20 − Other income up (+$121 MM), largely driven by market-related valuation adjustments for customer derivatives and trading losses in 1Q20 compared to $20 MM recovery in 2Q20 − Record quarter in consumer mortgage business (+$42 MM) − Higher investment banking and debt placement fees (+$40 MM) from strong commercial mortgage and debt capital markets activity 9

Noninterest Expense Noninterest Expense Highlights $ in millions favorable / (unfavorable) 2Q20 vs. 2Q19 vs. 1Q20 vs. Prior Year Personnel $ 572 $ 17 $ (57) . Noninterest expense down $6 MM (-<1%) from Net occupancy 71 2 5 2Q19 Computer processing 56 - (1) − Excluding notable items up $46 MM (+5%) (a) Business services, professional fees 49 (4) (5) Equipment 25 (1) (1) − Primarily reflects payments-related expense of $25 million (reported in other expense) and Operating lease expense 34 (2) 2 COVID-related expenses of $13 million, Marketing 24 - (3) partially offset by benefit from Key’s efficiency FDICassessment 8 1 1 initiatives Intangible asset amortization 18 4 (1) OREO expense, net 6 (2) (3) vs. Prior Quarter Other expense 150 (9) (19) . Noninterest expense up $82 MM (+9%) from 1Q20 Total noninterest expense $ 1,013 $ 6 $ (82) Notable Items: − Higher personnel costs from production-related incentive compensation related to revenue Efficiency initiative expenses - 50 - growth (IBDP & consumer mortgage) Laurel Road acquisition expenses - 2 - − Payments-related expense of $25 million Total noninterest expense, excl. $1,013 $ (46) $ (82) (a) notable items (reported in other expense) − COVID-19 related expense of $13 million to support teammates 10 (a) Non-GAAP measure and excludes notable items: see Appendix for detail

Credit Quality Net Charge-offs & Provision for Credit Losses $ in millions CECL Implementation $500 $482 1.00% $400 4Q19 and 3Q19 reflect $16 MM and .80% $123 MM, respectively, from $300 previously disclosed fraud loss .60% .36% $200 .40% .29% $96 $100 $65 $74 .20% $0 .00% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 NCOs Provision for credit losses NCOs to avg loans NCOs to avg loans excl. fraud loss (a) Nonperforming Loans Allowance for Loan and Lease Losses $ in millions $ in millions $760 2Q20 allowance for loan losses to period- $1,708 $800 2.00% $1,800 end loans of 1.61% (excl. PPP 1.73%) 300% $1,500 1.60% $561 250% $600 225% $1,200 1.20% $890 $400 $900 200% .72% .61% .80% 159% $600 $200 150% .40% $300 $0 .00% $0 100% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Allowance for loan Allowance for loan and NPLs to period-end loans NPLs and lease losses lease losses to NPLs NCO = Net charge-off 11 (a) Excludes fraud loss in 4Q19 and 3Q19; see 4Q19 earnings slide appendix for reconciliation

Select Commercial Portfolio Focus Areas Active Portfolio Surveillance Portfolios in Focus . Ongoing portfolio reviews 3/31/20 6/30/20 % of Total Outstandings Outstandings Loans as of 6/30 $ in millions . Monitoring ratings migration Consumer behavior (a) $ 5,276 $ 5,206 4.9% . Central reporting on Education 1,574 1,592 1.5 enterprise-wide relief Sports 749 622 .6 initiatives Restaurants 482 413 .4 . Established pandemic Retail commercial real estate (b) $ 760 $ 684 .6% watchlist and ongoing Nondurable retail (c) $ 866 $ 752 .7% review of commercial clients Travel / Tourism (d) $ 3,102 $ 2,994 2.8% at risk Hotels 1,036 905 .9 − Evaluate business Leveraged lending (e) $ 2,373 $ 1,891 1.8% position as well as potential COVID Oil and gas $ 2,541 $ 2,356 2.2% implications Upstream (reserve-based) 1,630 1,505 1.4 Midstream 516 424 .4 Downstream 171 161 .2 Portfolios reviewed on a frequent and ongoing basis Note: Approximately 2% of outstandings overlapped in multiple categories (a) Consumer behavior includes restaurants, sports, entertainment and leisure, services, education, etc. (b) Retail commercial real estate is mainly composed of regional malls, strip centers (unanchored) and lifestyle centers) (c) Nondurable retail includes direct lending to retailers including apparel, hobby shops, nursery garden centers, cosmetics, and gas stations with convenience stores (d) Travel/Tourism includes hotels, tours, and air/water/rail leasing. (e) Leveraged lending exposures have total debt to EBITDA greater than four times or senior debt to EBITDA greater than three times and meet the purpose test (the new debt finances a buyout, acquisition, or capital distribution) 12

Capital Common Equity Tier 1 (a) Highlights 11.0% . Strong capital position: CET1 ratio of 9.1% (a) at 6/30/2020 10.0% 9.6% 9.1% . Well-positioned to weather adverse operating 9.0% environments: − Announced 3Q20 quarterly common share 8.0% dividend of $.185 (consistent with 2Q20 level) 7.0% − Announced preliminary stress capital buffer of 2.5% (minimum required) 6.0% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Tangible Common Equity to Tangible Assets (b) Quarterly Common Share Dividend 10.0% $0.20 $.185 $.17 9.0% 8.6% $0.16 8.0% 7.6% $0.12 7.0% 6.0% $0.08 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 (a) 6/30/20 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision 13 (b) Non-GAAP measure: see Appendix for reconciliation

Third Quarter 2020 Trends & Long-term Targets Third Quarter 2020 Trend (vs. Second Quarter 2020) . Average Loans: relatively stable, reflecting consumer loan growth and lower commercial line utilization . Deposits: relatively stable . Net interest income: up low-single digit reflecting modest NIM improvement and relatively stable balance sheet . Noninterest income: down high-single digits reflecting lower operating lease gains and return to more normal level of activity in consumer mortgage . Noninterest expense: down low-single digits . Net charge-offs: expected to be in the 50-60 bps range Guidance ranges: relatively stable: +/- 2%; low-single digit: 1% - 3%; mid-single digit: 4% - 6%; high-single digit: 7% - 9% Long-term Targets Positive operating Moderate risk profile: ROTCE: Cash efficiency ratio: Net charge-offs to avg. loans leverage targeted range of 40-60 bps 16% - 19% 54% - 56% 14

Appendix 15

Loan Portfolio Detail, at 6/30/2020 Total Loans Commercial Loans $ in billions 6/30/20 % of total Diversified Portfolio by Industry loans Total commercial loans: Automotive Utilities Agriculture Commercial and industrial $ 58.3 55 Business Products Transportation Commercial real estate 15.4 15 Business Services Technology Media And Telecom C&I CRE Chemicals Commercial lease financing$40 4.5$18 4 Construction Total Commercial $ 78.2 74% Consumer Discretionary Residential mortgage 8.1 8 Real Estate Home equity 9.8 9 Consumer Consumer direct 4.3 4 Services Credit card .97 1 Public Sector Consumer indirect 4.7 4 Other Equipment Oil And Gas Total Consumer $ 28.0 26% Materials/ Finance Metals And Mining Extraction Home Equity Commercial Real Estate 2008/ Outstanding Average Average prior Balances Loan Size FICO Construction vintage . Focused on relationships with CRE owners First lien $ 6,178 63 % $ 73,114 777 12 % Second lien 3,604 37 45,473 776 24 . Aligned with targeted industry verticals Total home equity $ 9,782 . Primarily commercial mortgage; selective approach to construction . Combined weighted-average LTV at Commercial mortgage origination: 70% Fixed . Criticized non-accruals: 0.7% of period- 74% 88% Variable 50% end balances (a) 50% . $491 million in lines outstanding (8% of the home equity lines) come to end of draw period by 2Q22 6/30/2010 6/30/2020 Tables may not foot due to rounding 16 (a) Loan and lease outstandings

Investment Portfolio Average Total Investment Securities Highlights $ in billions $32.1 . Portfolio used for funding and liquidity management $30.1 $32.0 2.75% ‒ Portfolio composed primarily of fixed-rate GNMA and GSE-backed MBS and CMOs 2.49% 2.43% $24.0 2.50% ‒ GNMA 45% of 2Q20 average balance ‒ Reinvestments continue to be in High Quality Liquid Assets $16.0 2.25% . Excess cash was put to work in portfolio at end of 2Q20 $8.0 2.00% ‒ Purchased Treasury Bills during the quarter (avg. yield excl. T-bills = 2.49%) $0.0 1.75% ‒ Yields on typical reinvestment opportunities would be ~100 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 bps lower than runoff yields Average AFS securities Average yield (a) Average HTM securities . Strategically positioned the portfolio allocation to provide greater yield stability in a lower interest rate Securities Cash Flows (b) as a % of Total Securities environment: ‒ Grew allocation to bullet-like or locked-out cash flow 12.0% 4.8% 5.0% securities backed by commercial mortgages to 15% 10.0% ‒ Focused on investing in securities backed by residential 3.5% 4.0% 3.3% and multi-family mortgage collateral with lower prepayment 8.0% risks 3.0% ‒ Reduced exposure to net unamortized premiums on 6.0% 7% mortgage securities 2.0% 4.0% 5% 5% ‒ Quarterly mortgage security cash flows as a % of the 4% 4% portfolio increased a modest 4% with mortgage rates 4% 4% 1.0% 2.0% 3% ~1.50% lower 0.0% 0.0% . Portfolio average life of 3.6 years and duration of 3.2 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 years at 6/30/2020 Securities cash flows as a % of total Mortgage rate (c) securities (b) (a) Yield is calculated on the basis of amortized cost 17 (b) Quarterly cash flows (c) Average 30-year Freddie Mac fixed mortgage rate

Asset & Liability Management Positioning Active hedging moderates interest rate risk, protecting and enhancing net interest income 2Q20 Balance Sheet Highlights (a) Actively Managing Interest Rate Risk Position Loan Composition Deposit Mix . Declining rate exposure lower relative to 1Q20 driven by normalization of LIBOR/Fed Funds spread Prime Noninterest- − NII decline of ~.5% for a ramped 100 bps decrease from 10% bearing current rates over 12 months (subject to 25 bps floor) Fixed 32% 37% 1 month Interest- . Reducing exposure to lower and negative rates LIBOR bearing through the use of floors in loan agreements 40% 68% Other − ~75% of total LIBOR loan portfolio contains floors 7% 3 month LIBOR ‒ Implementing floors in substantially all new LIBOR-based 6% loan originations and loans entering into forbearance . Attractive business model with relationship-oriented ‒ Floors include language to apply to alternative indices lending franchise (SOFR, etc.) − Distinctive commercial capabilities drive C&I growth and . Total Hedge portfolio of $34.2 B at 6/30/2020 ~63% floating-rate loan mix − Executed $1.5 B of debt swaps in 2Q20 and $7.5 B in − Laurel Road and residential mortgage enhances fixed rate interest rate floors in 2Q20 loan volumes with attractive client profile . Strong, low-cost deposit base 2Q20 − ~60% stable retail and low-cost escrow $17.6 B $8.8 B $7.8 B − >85% from markets where Key maintains top-5 deposit or A/LM Swaps Debt Swaps Floors branch share . $31.8 B securities portfolio structured to provide . Hedging beginning in 3Q18 significantly reduced impact greater yield stability in a lower rate environment of recent rate movements (~$31B in executions through − Continued to add bullet-like securities and mortgage collateral 2Q20) with lower prepayment risks, while reducing exposure to net unamortized premiums 18 (a) Loan, deposit and securities portfolio statistics based on 6/30/2020 ending balances

Credit Quality Trends Delinquencies to Period-end Total Loans Criticized Outstandings (a) to Period-end Total Loans Continuing operations Continuing operations .80% 6.0% .60% 4.0% 3.3% .39% .40% .33% 2.7% 2.0% .20% .08% .08% .00% .0% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 30 – 89 days delinquent 90+ days delinquent Metric (b) 2Q20 1Q20 4Q19 3Q19 2Q19 Delinquencies to EOP total loans: 30-89 days .39 % .38 % .35 % .39 % .33 % Delinquencies to EOP total loans: 90+ days .08 .12 .10 .06 .08 NPLs to EOP portfolio loans .72 .61 .61 .63 .61 NPAs to EOP portfolio loans + OREO + Other NPAs .89 .82 .75 .77 .66 Allowance for loan losses to period-end loans 1.61 1.32 .95 .96 .97 Allowance for loan losses to NPLs 224.7 215.0 156.0 152.6 158.6 (a) Loan and lease outstandings 19 (b) From continuing operations

Credit Quality Credit Quality by Portfolio Net loan Net loan Allowance / Allowance / Period- Average charge-offs (b) / Nonperforming Ending charge- period-end NPLs end loans loans average loans loans allowance offs loans (%) (%) $ in millions (%) 6/30/20 2Q20 2Q20 2Q20 6/30/20 6/30/20 6/30/20 6/30/20 Commercial and industrial (a) $ 58,297 $ 60,480 $ 66 .44% $ 404 $ 725 1.24% 179.46% Commercial real estate: Commercial Mortgage 13,465 13,510 2 .06 91 292 2.17 320.88 Construction 1,919 1,756 - - 1 41 2.14 N/M Commercial lease financing (c) 4,524 4,584 3 .26 9 55 1.22 611.11 Real estate – residential mortgage 8,149 7,783 2 .10 89 101 1.24 113.48 Home equity 9,782 9,949 1 .04 141 197 2.01 139.72 Consumer direct loans 4,327 4,152 8 .77 3 130 3.00 N/M Credit cards 974 983 10 4.09 2 107 10.99 N/M Consumer indirect loans 4,722 4,744 4 .34 20 60 1.27 300.00 Continuing total $ 106,159 $ 107,941 $ 96 .36% $ 760 $ 1,708 1.61% 224.74% Discontinued operations 780 794 - - 7 43 5.51 614.29 Consolidated total $ 106,939 $ 108,735 $ 96 .36% $ 767 $ 1,751 1.64% 228.29% N/M = Not meaningful (a) Commercial and industrial ending loan balances include $132 million of commercial credit card balances at June 30, 2020; commercial and industrial average balances include $135 million of assets from commercial credit cards for the three months ended June 30, 2020 (b) Net loan charge-off amounts are annualized in calculation (c) Commercial lease financing includes receivables held as collateral for a secured borrowing of $18 million at June 30, 2020. Principal reductions are based on 20 the cash payments received from these related receivables

GAAP to Non-GAAP Reconciliation Three months ended $ in millions 6/30/2020 3/31/2020 6/30/2019 Notable Items Efficiency initiative expenses - -$ (50) Laurel Road acquisition expenses - - (2) Total notable items - -$ (52) Income taxes - - (12) Total notable items after tax - -$ (40) Tangible common equity to tangible assets at period end Key shareholders' equity (GAAP) $ 17,542 $ 17,411 $ 16,969 Less: Intangible assets (a) 2,877 2,894 2,952 Preferred Stock (b) 1,856 1,856 1,856 Tangible common equity (non-GAAP) $ 12,809 $ 12,661 $ 12,161 Total assets (GAAP) $ 171,192 $ 156,197 $ 144,545 Less: Intangible assets (a) 2,877 2,894 2,952 Tangible assets (non-GAAP) $ 168,315 $ 153,303 $ 141,593 Tangible common equity to tangible assets ratio (non-GAAP) 7.6% 8.3% 8.6% Pre-provision net revenue Net interest income (GAAP) $ 1,018 $ 981 $ 981 Plus: Taxable-equivalent adjustment 7 8 8 Noninterest income 692 477 622 Less: Noninterest expense 1,013 931 1,019 Pre-provision net revenue from continuing operations (non-GAAP) $ 704 $ 535 $ 592 Average tangible common equity Average Key shareholders' equity (GAAP) $ 17,688 $ 17,216 $ 16,531 Less: Intangible assets (average) (c) 2,886 2,902 2,959 Preferred Stock (average) 1,900 1,900 1,762 Average tangible common equity (non-GAAP) $ 12,902 $ 12,414 $ 11,810 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ 159 $ 118 $ 403 Plus: Notable items, after tax - - 40 Net income (loss) from continuing operations attributable to Key common shareholders excl. notable items $ 159 $ 118 $ 443 Average tangible common equity (non-GAAP) 12,902 12,414 11,810 Return on average tangible common equity from continuing operations (non-GAAP) 4.96% 3.82% 13.69% Return on average tangible common equity from continuing operations excl. notable items (non-GAAP) 4.96% 3.82% 15.05% (a) For the three months ended June 30, 2020, March 31, 2020, and June 30, 2019, intangible assets exclude $5 million, $6 million, and $10 million, respectively, of period-end purchased credit card receivables (b) Net of capital surplus (c) For the three months ended ended June 30, 2020, March 31, 2020, and June 30, 2019, intangible assets exclude $6 million, $7 million, and $11 million, 21 respectively, of average purchased credit card receivables

GAAP to Non-GAAP Reconciliation Three months ended $ in millions 6/30/2020 3/31/2020 6/30/2019 Cash efficiency ratio Noninterest expense (GAAP) $ 1,013 $ 931 $ 1,019 Less: Intangible asset amortization 18 17 22 Adjusted noninterest expense (non-GAAP) $ 995 $ 914 $ 997 Less: Notable items - - 52 Adjusted noninterest expense (non-GAAP) $ 995 $ 914 $ 945 Net interest income (GAAP) $ 1,018 $ 981 $ 981 Plus: Taxable-equivalent adjustment 7 8 8 Noninterest income 692 477 622 Total taxable-equivalent revenue (non-GAAP) $ 1,717 $ 1,466 $ 1,611 Cash efficiency ratio (non-GAAP) 57.9% 62.3% 61.9% Cash efficiency ratio excluding notable items (non-GAAP) 57.9% 62.3% 58.7% 22



Ohio	001-11302	34-6542451
State or other jurisdiction of incorporation or organization:	Commission File Number	I.R.S. Employer Identification Number:



127 Public Square,	Cleveland,	Ohio	44114-1306
Address of principal executive offices:			Zip Code:



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):

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



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: July 22, 2020		/s/ Douglas M. Schosser
		By: Douglas M. Schosser
		Chief Accounting Officer


99.1	Press Release, dated July 22, 2020, announcing financial results for the three- and six-month period ended June 30, 2020


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


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


Item 9.01	Financial Statements and Exhibits.


(d)	Exhibits