key-20231019
false000009157600000915762023-10-192023-10-190000091576us-gaap:CommonStockMember2023-10-192023-10-190000091576us-gaap:SeriesEPreferredStockMember2023-10-192023-10-190000091576us-gaap:SeriesFPreferredStockMember2023-10-192023-10-190000091576us-gaap:SeriesGPreferredStockMember2023-10-192023-10-190000091576us-gaap:SeriesHPreferredStockMember2023-10-192023-10-19

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

CURRENT REPORT
Pursuant to Section 13 or 15(d)
 of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 19, 2023
 
KeyCorp
keylogoa11.jpg
(Exact name of registrant as specified in its charter)
 
Ohio
001-11302
34-6542451
State or other jurisdiction of incorporation or organization:Commission File NumberI.R.S. Employer Identification Number:
127 Public Square,
Cleveland,
Ohio
44114-1306
Address of principal executive offices:Zip Code:

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

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


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

    Emerging growth company ☐

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



Item 2.02     Results of Operations and Financial Condition.

    On October 19, 2023, KeyCorp issued a press release announcing its financial results for the three- and nine-month period ended September 30, 2023 (the “Press Release”), and posted on its website its third quarter 2023 Supplemental Information Package (the “Supplemental Information Package”). The Press Release and Supplemental Information Package are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

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

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

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

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

99.1    Press Release, dated October 19, 2023, announcing financial results for the three- and nine-month period ended September 30, 2023

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

99.3    Financial Statements.

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


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



                                        
keylogoicononlyrgba01.jpg

KEYCORP REPORTS THIRD QUARTER 2023 NET INCOME OF $266 MILLION,
OR $.29 PER DILUTED COMMON SHARE

Strong balance sheet with significant capital build: Common Equity Tier 1 of 9.8%(a), up 50 basis points from the prior quarter and above targeted range

Focus on relationships and balance sheet optimization drives reduction in risk-weighted assets, down $7 billion(b), compared to the prior quarter

Increased average deposits and continued to strengthen liquidity and funding, average deposits up $2 billion compared to the prior quarter

Growth in noninterest income; noninterest income represents approximately 40% of total revenue

Strong risk management drives solid credit quality: net charge-offs to average loans of 24 basis points



    CLEVELAND, October 19, 2023 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $266 million, or $.29 per diluted common share for the third quarter of 2023. This compared to $250 million, or $.27 per diluted common share, for the second quarter of 2023 and $513 million, or $.55 per diluted common share, for the third quarter of 2022.



Comments from Chairman and CEO, Chris Gorman

"Key’s third quarter results reflect continued momentum across our franchise, supported by our strong balance sheet and disciplined risk management. Our focus on relationship banking drove both core deposit growth and a planned reduction in non-relationship loan balances.

Our Common Equity Tier 1 ratio is above our targeted capital range, increasing by 50 basis points, to 9.8%, through proactive balance sheet management. We remain well positioned to support our clients and return capital to our shareholders.

Another strength of our company is credit quality. We continue to benefit from our high-quality, relationship-based loan portfolio and our distinctive, underwrite-to-distribute business model. Net charge-offs to average loans remained low, at 24 basis points.

We remain committed to strengthening both capital and liquidity, managing risk, and improving earnings while continuing to invest. I am confident in the long-term outlook for Key and in our ability to deliver value to all of our stakeholders."







(a)September 30, 2023 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(b)September 30, 2023 figures are estimated.


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 2

Selected Financial Highlights
Dollars in millions, except per share dataChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Income (loss) from continuing operations attributable to Key common shareholders$266 $250 $513 6.4 %(48.1)%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
.29 .27 .55 7.4 (47.3)
Return on average tangible common equity from continuing operations (a)
12.40 %11.04 %21.19 %N/AN/A
Return on average total assets from continuing operations.62 .58 1.14 N/AN/A
Common Equity Tier 1 ratio (b)
9.8 9.3 9.1 N/AN/A
Book value at period end$11.65 $12.18 $11.62 (4.4).3 
Net interest margin (TE) from continuing operations2.01 %2.12 %2.74 %N/AN/A
(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “Return on average tangible common equity from continuing operations.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)September 30, 2023 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millionsChange 3Q23 vs.
 3Q232Q233Q222Q233Q22
Net interest income (TE)$923 $986 $1,203 (6.4)%(23.3)%
Noninterest income643 609 683 5.6 (5.9)
Total revenue$1,566 $1,595 $1,886 (1.8)%(17.0)%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $923 million for the third quarter of 2023 and the net interest margin was 2.01%. Compared to the third quarter of 2022, net interest income decreased $280 million, and the net interest margin decreased by 73 basis points. The decrease in net interest income and the net interest margin reflects higher interest-bearing deposit costs and a shift in funding mix to higher cost deposits and borrowings due to the higher interest rate environment. Partly offsetting the decline in net interest income and the net interest margin were higher earning asset balances and yields.

Compared to the second quarter of 2023, taxable-equivalent net interest income decreased by $63 million, and the net interest margin decreased by 11 basis points. The decline in net interest income and the net interest margin reflects a planned reduction in earning asset balances and the impact of higher interest rates on interest-bearing deposit costs, which outpaced the benefit from higher earning asset yields. Net interest income and the net interest margin benefited from an improved funding mix as higher-cost wholesale borrowings declined, and lower-cost interest-bearing deposits increased. Additionally, net interest income benefited from one additional day in the quarter.


Noninterest Income
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Trust and investment services income$130 $126 $127 3.2 %2.4 %
Investment banking and debt placement fees141 120 154 17.5 (8.4)
Cards and payments income90 85 91 5.9 (1.1)
Service charges on deposit accounts69 69 92 — (25.0)
Corporate services income73 86 96 (15.1)(24.0)
Commercial mortgage servicing fees46 50 44 (8.0)4.5 
Corporate-owned life insurance income35 32 33 9.4 6.1 
Consumer mortgage income15 14 14 7.1 7.1 
Operating lease income and other leasing gains22 23 19 (4.3)15.8 
Other income22 4 13 450.0 69.2 
Total noninterest income$643 $609 $683 5.6 %(5.9)%


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 3


    
    Compared to the third quarter of 2022, noninterest income decreased by $40 million. The decrease was driven by a $23 million decline in corporate services income and a $23 million decline in service charges on deposit accounts. The decrease in corporate services income was reflective of lower customer derivatives trading revenue. The decline in service charges on deposit accounts was driven by a reduction in overdraft and non-sufficient funds fees and lower account analysis fees related to the interest rate environment. Additionally, investment banking and debt placement fees declined $13 million, reflecting lower capital markets activity. Partly offsetting the decline was a $9 million increase in other income, driven by higher trading income and broad-based growth across fee categories.

Compared to the second quarter of 2023, noninterest income increased by $34 million, driven by a $21 million increase in investment banking and debt placement fees and an $18 million increase in other income from higher trading income and a gain on a loan sale. Partly offsetting the increase was a decrease in corporate services income, which declined $13 million, reflective of lower customer derivatives trading revenue.

Noninterest Expense
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Personnel expense$663 $622 $655 6.6 %1.2 %
Net occupancy67 65 72 3.1 (6.9)
Computer processing89 95 77 (6.3)15.6 
Business services and professional fees38 41 47 (7.3)(19.1)
Equipment20 22 23 (9.1)(13.0)
Operating lease expense18 21 24 (14.3)(25.0)
Marketing28 29 30 (3.4)(6.7)
Other expense187 181 178 3.3 5.1 
Total noninterest expense$1,110 $1,076 $1,106 3.2 %.4 %
    Compared to the third quarter of 2022, noninterest expense increased $4 million, driven by $12 million of higher computer processing expense from technology investments, as well as a $9 million increase in other expense. Personnel expense increased $8 million, due to higher salaries and contract labor and employee benefits, partially offset by lower incentive and stock-based compensation. Additionally, business services and professional fees and operating lease expense declined $9 million and $6 million, respectively.

    Compared to the second quarter of 2023, noninterest expense increased $34 million. The increase was due to a $41 million increase in personnel expense, primarily from incentive and stock-based compensation, reflecting a higher stock price, production-related incentives, and other incentive funding. The increase was partly offset by a decline in computer processing expense of $6 million and broad-based declines among expense categories.

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Commercial and industrial (a)
$59,187 $61,426 $56,151 (3.6)%5.4 %
Other commercial loans22,371 22,623 22,200 (1.1).8 
Total consumer loans36,069 36,623 36,067 (1.5).0 
Total loans$117,627 $120,672 $114,418 (2.5)%2.8 %
(a)Commercial and industrial average loan balances include $202 million, $194 million, and $162 million of assets from commercial credit cards at September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
    


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 4

Average loans were $117.6 billion for the third quarter of 2023, an increase of $3.2 billion compared to the third quarter of 2022. The growth in average loans was driven by commercial loans, which increased by $3.2 billion, largely reflecting growth in commercial and industrial loans of $3.0 billion.

Compared to the second quarter of 2023, average loans decreased by $3.0 billion, driven by a reduction in non-relationship loan balances as part of Key's planned balance sheet optimization efforts. Average commercial loans declined by $2.5 billion, reflective of a $2.2 billion decrease in commercial and industrial loans. Additionally, average consumer loans declined $554 million, driven by lower consumer mortgage and home equity loan balances.

Average Deposits
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Non-time deposits$129,743 $127,687 $140,169 1.6 %(7.4)%
Certificates of deposit ($100,000 or more)5,446 3,851 1,347 41.4 304.3 
Other time deposits9,636 11,365 2,713 (15.2)255.2 
Total deposits$144,825 $142,903 $144,229 1.3 %.4 %
Cost of total deposits1.88 %1.49 %.16 %N/AN/A
N/A = Not Applicable

    Average deposits totaled $144.8 billion for the third quarter of 2023, an increase of $596 million compared to the year-ago quarter. The increase was driven by higher wholesale deposits and public sector deposits, partly offset by a continuation of impacts from changing client behavior reflective of higher interest rates and a normalization of pandemic-related deposits.

Compared to the second quarter of 2023, average deposits increased by $1.9 billion, driven by an increase in both consumer and commercial deposit balances. The increase was partly offset by a decline in other time deposits, reflecting a decrease in wholesale deposit balances.

ASSET QUALITY
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Net loan charge-offs$71 $52 $43 36.5 %65.1 %
Net loan charge-offs to average total loans.24 %.17 %.15 %N/AN/A
Nonperforming loans at period end$455 $431 $390 5.6 16.7 
Nonperforming assets at period end471 462 419 1.9 12.4 
Allowance for loan and lease losses1,488 1,480 1,144 0.5 30.1 
Allowance for credit losses1,778 1,771 1,338 0.4 32.9 
Provision for credit losses81 167 109 (51.5)(25.7)
Allowance for loan and lease losses to nonperforming loans327 %343 %293 %N/AN/A
Allowance for credit losses to nonperforming loans391 411 343 N/AN/A
N/A = Not Applicable

    
    Key's provision for credit losses was $81 million, compared to $109 million in the third quarter of 2022 and $167 million in the second quarter of 2023. The decline from the year-ago period and prior quarter reflects a more stable economic outlook and the impact of current balance sheet optimization efforts.

    Net loan charge-offs for the third quarter of 2023 totaled $71 million, or 0.24% of average total loans. These results compare to $43 million, or 0.15%, for the third quarter of 2022 and $52 million, or 0.17%, for the second quarter of 2023. Key’s allowance for credit losses was $1.8 billion, or 1.54% of total period-end loans at September 30, 2023, compared to 1.15% at September 30, 2022, and 1.49% at June 30, 2023.

    At September 30, 2023, Key’s nonperforming loans totaled $455 million, which represented 0.39% of period-end portfolio loans. These results compare to 0.34% at September 30, 2022, and 0.36% at June 30,


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 5

2023. Nonperforming assets at September 30, 2023, totaled $471 million, and represented 0.41% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.36% at September 30, 2022, and 0.39% at June 30, 2023.

CAPITAL

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2023.
Capital Ratios
9/30/20236/30/20239/30/2022
Common Equity Tier 1 (a)
9.8 %9.3 %9.1 %
Tier 1 risk-based capital (a)
11.4 10.8 10.7 
Total risk-based capital (a)
13.8 13.1 12.7 
Tangible common equity to tangible assets (b)
4.4 4.5 4.3 
Leverage (a)
8.9 8.7 8.9 
(a)September 30, 2023 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(b)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.


Key's capital position remained strong in the third quarter of 2023. As shown in the preceding table, at September 30, 2023, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.8% and 11.4%, respectively. Key's tangible common equity ratio was 4.4% at September 30, 2023.

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

Summary of Changes in Common Shares Outstanding
In thousandsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Shares outstanding at beginning of period935,733 935,229 932,643 .1 %.3 %
Open market repurchases and return of shares under employee compensation plans(10)(38)(3)73.7 (233.3)
Shares issued under employee compensation plans (net of cancellations)438 542 298 (19.2)47.0 
Shares outstanding at end of period936,161 935,733 932,938 — %.3 %
N/M = Not Meaningful

    
    Key declared a dividend of $.205 per common share for the third quarter of 2023.

LINE OF BUSINESS RESULTS

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



KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 6

Major Business Segments
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Revenue from continuing operations (TE)
Consumer Bank$791 $803 $877 (1.5)%(9.8)%
Commercial Bank790 805 878 (1.9)(10.0)
Other (a)
(15)(13)131 (15.4)(111.5)
Total$1,566 $1,595 $1,886 (1.8)%(17.0)%
Income (loss) from continuing operations attributable to Key
Consumer Bank$76 $82 $125 (7.3)%(39.2)%
Commercial Bank226 214 287 5.6 (21.3)
Other (a)
— (10)128 100.0 (100.0)
Total$302 $286 $540 5.6 %(44.1)%
(a)Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent


Consumer Bank
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Summary of operations
Net interest income (TE)$548 $558 $618 (1.8)%(11.3)%
Noninterest income243 245 259 (.8)(6.2)
Total revenue (TE)791 803 877 (1.5)(9.8)
Provision for credit losses14 32 37 (56.3)(62.2)
Noninterest expense677 663 675 2.1 .3 
Income (loss) before income taxes (TE)100 108 165 (7.4)(39.4)
Allocated income taxes (benefit) and TE adjustments24 26 40 (7.7)(40.0)
Net income (loss) attributable to Key$76 $82 $125 (7.3)%(39.2)%
Average balances
Loans and leases$42,250 $42,934 $42,568 (1.6)%(.7)%
Total assets45,078 45,761 45,659 (1.5)(1.3)
Deposits83,863 82,498 90,170 1.7 (7.0)
Assets under management at period end$52,516 $53,952 $47,846 (2.7)%9.8 %
TE = Taxable Equivalent




KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 7

Additional Consumer Bank Data
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Noninterest income
Trust and investment services income$105 $101 $99 4.0 %6.1 %
Service charges on deposit accounts40 41 56 (2.4)(28.6)
Cards and payments income66 66 64 — 3.1 
Consumer mortgage income15 14 13 7.1 15.4 
Other noninterest income17 23 27 (26.1)(37.0)
Total noninterest income$243 $245 $259 (.8)%(6.2)%
Average deposit balances
Money market deposits$28,775 $27,340 $31,510 5.2 %(8.7)%
Demand deposits23,202 23,845 25,186 (2.7)(7.9)
Savings deposits5,681 6,298 7,556 (9.8)(24.8)
Certificates of deposit ($100,000 or more)5,003 3,550 1,238 40.9 304.1 
Other time deposits3,751 2,864 1,838 31.0 104.1 
Noninterest-bearing deposits17,451 18,601 22,842 (6.2)(23.6)
Total deposits$83,863 $82,498 $90,170 1.7 %(7.0)%
Other data
Branches959 965 976 
Automated teller machines1,249 1,255 1,270 


Consumer Bank Summary of Operations (3Q23 vs. 3Q22)
•Key's Consumer Bank recorded net income attributable to Key of $76 million for the third quarter of 2023, compared to $125 million for the year-ago quarter
•Taxable-equivalent net interest income decreased by $70 million, or 11.3%, compared to the third quarter of 2022, reflecting higher interest-bearing deposit costs
•Average loans and leases decreased $318 million, or 0.7%, from the third quarter of 2022, driven by lower home equity and consumer direct loans
•Average deposits decreased $6.3 billion, or 7.0%, from the third quarter of 2022, reflecting elevated inflation-related spend, changing client behavior due to higher interest rates, and a normalization of pandemic-related deposits
•Provision for credit losses decreased $23 million compared to the third quarter of 2022, driven by an improved economic outlook and current balance sheet optimization efforts
•Noninterest income decreased $16 million from the year-ago quarter, driven by lower service charges on deposit accounts due to a planned reduction in overdraft and non-sufficient funds fees
•Noninterest expense increased $2 million from the year-ago quarter, reflecting an increase in marketing expense and higher salaries, partially offset by a decline in incentive compensation



KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 8

Commercial Bank
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Summary of operations
Net interest income (TE)$430 $459 $484 (6.3)%(11.2)%
Noninterest income360 346 394 4.0 (8.6)
Total revenue (TE)790 805 878 (1.9)(10.0)
Provision for credit losses68 134 74 (49.3)(8.1)
Noninterest expense431 405 451 6.4 (4.4)
Income (loss) before income taxes (TE)291 266 353 9.4 (17.6)
Allocated income taxes and TE adjustments65 52 66 25.0 (1.5)
Net income (loss) attributable to Key$226 $214 $287 5.6 %(21.3)%
Average balances
Loans and leases$74,951 $77,277 $71,464 (3.0)%4.9 %
Loans held for sale1,268 1,014 1,036 25.0 22.4 
Total assets85,274 87,106 81,899 (2.1)4.1 
Deposits54,896 51,420 52,272 6.8 %5.0 %
TE = Taxable Equivalent

Additional Commercial Bank Data
Dollars in millionsChange 3Q23 vs.
3Q232Q233Q222Q233Q22
Noninterest income
Trust and investment services income$25 $24 $29 4.2 %(13.8)%
Investment banking and debt placement fees141 120 154 17.5 (8.4)
Cards and payments income17 22 19 (22.7)(10.5)
Service charges on deposit accounts28 27 36 3.7 (22.2)
Corporate services income64 77 89 (16.9)(28.1)
Commercial mortgage servicing fees45 50 44 (10.0)2.3 
Operating lease income and other leasing gains22 24 19 (8.3)15.8 
Other noninterest income18 2 4 800.0 350.0 
Total noninterest income$360 $346 $394 4.0 %(8.6)%

Commercial Bank Summary of Operations (3Q23 vs. 3Q22)
•Key's Commercial Bank recorded net income attributable to Key of $226 million for the third quarter of 2023 compared to $287 million for the year-ago quarter
•Taxable-equivalent net interest income decreased by $54 million, or 11.2%, compared to the third quarter of 2022, primarily reflecting higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits
•Average loan and lease balances, driven by relationship clients, increased $3.5 billion, or 4.9%, compared to the third quarter of 2022
•Average deposit balances increased $2.6 billion compared to the third quarter of 2022, reflecting an increase in public sector deposits and commercial client growth
•Provision for credit losses decreased $6 million compared to the third quarter of 2022, driven by a more stable economic outlook and current balance sheet optimization efforts
•Noninterest income decreased $34 million from the year-ago quarter, primarily driven by a decline in corporate services income and a decrease in investment banking and debt placement fees, reflecting lower syndication fees
•Noninterest expense decreased $20 million from the third quarter of 2022, primarily driven by a decline in personnel expense from lower incentive compensation, as well as a decrease in operating lease expense


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 9


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

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $188 billion at September 30, 2023.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 10

CONTACTS:
ANALYSTSMEDIA
Vernon L. PattersonSusan Donlan
216.689.0520216.471.3133
[email protected][email protected]
Halle NicholsBeth Strauss
216.471.2184216.471.2787
[email protected][email protected]
Anya Bernard
216.471.2053
[email protected]
INVESTOR RELATIONS:KEY MEDIA NEWSROOM:
www.key.com/irwww.key.com/newsroom
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key’s actual results to differ from those described in the forward-looking statements can be found in KeyCorp’s Form 10-K for the year ended December 31, 2022, Form 10-Q for the quarter ended March 31, 2023, as well as in KeyCorp’s subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

Notes to Editors:
A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 10:00 a.m. ET, on October 19, 2023. A replay of the call will be available through October 28, 2023.
For up-to-date company information, media contacts, and facts and figures about Key’s lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****



KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 11




KeyCorp
Third Quarter 2023
Financial Supplement


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


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 12

Basis of Presentation

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

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

Taxable Equivalent
Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of peers.

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




KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 13

Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
9/30/20236/30/20239/30/2022
Summary of operations
Net interest income (TE)$923 $986 $1,203 
Noninterest income643 609 683 
Total revenue (TE)
1,566 1,595 1,886 
Provision for credit losses81 167 109 
Noninterest expense1,110 1,076 1,106 
Income (loss) from continuing operations attributable to Key302 286 540 
Income (loss) from discontinued operations, net of taxes1 1 2 
Net income (loss) attributable to Key303 287 542 
Income (loss) from continuing operations attributable to Key common shareholders266 250 513 
Income (loss) from discontinued operations, net of taxes1 1 2 
Net income (loss) attributable to Key common shareholders267 251 515 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.29 $.27 $.55 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.29 .27 .55 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution.29 .27 .55 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
.29 .27 .55 
Cash dividends declared.205 .205 .195 
Book value at period end11.65 12.18 11.62 
Tangible book value at period end8.65 9.16 8.56 
Market price at period end10.76 9.24 16.02 
Performance ratios
From continuing operations:
Return on average total assets.62 %.58 %1.14 %
Return on average common equity9.31 8.42 16.33 
Return on average tangible common equity (b)
12.40 11.04 21.19 
Net interest margin (TE)2.01 2.12 2.74 
Cash efficiency ratio (b)
70.3 66.8 58.0 
From consolidated operations:
Return on average total assets.62 %.58 %1.14 %
Return on average common equity9.35 8.45 16.39 
Return on average tangible common equity (b)
12.45 11.09 21.28 
Net interest margin (TE)2.01 2.12 2.73 
Loan to deposit (c)
80.8 83.0 81.3 
Capital ratios at period end
Key shareholders’ equity to assets7.1 %7.1 %7.0 %
Key common shareholders’ equity to assets5.8 5.8 5.7 
Tangible common equity to tangible assets (b)
4.4 4.5 4.3 
Common Equity Tier 1 (d)
9.8 9.3 9.1 
Tier 1 risk-based capital (d)
11.4 10.8 10.7 
Total risk-based capital (d)
13.8 13.1 12.7 
Leverage (d)
8.9 8.7 8.9 
Asset quality — from continuing operations
Net loan charge-offs
$71 $52 $43 
Net loan charge-offs to average loans
.24 %.17 %.15 %
Allowance for loan and lease losses
$1,488 $1,480 $1,144 
Allowance for credit losses
1,778 1,771 1,338 
Allowance for loan and lease losses to period-end loans
1.29 %1.24 %.98 %
Allowance for credit losses to period-end loans
1.54 1.49 1.15 
Allowance for loan and lease losses to nonperforming loans327 343 293 
Allowance for credit losses to nonperforming loans391 411 343 
Nonperforming loans at period-end$455 $431 $390 
Nonperforming assets at period-end471 462 419 
Nonperforming loans to period-end portfolio loans.39 %.36 %.34 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets.41 .39 .36 
Trust assets
Assets under management$52,516 $53,952 $47,846 
Other data
Average full-time equivalent employees
17,666 17,754 17,907 
Branches
959 965 976 
Taxable-equivalent adjustment
$8 $8 $7 




KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 14

Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Nine months ended
9/30/20239/30/2022
Summary of operations
Net interest income (TE)$3,015 $3,327 
Noninterest income1,860 2,047 
Total revenue (TE)4,875 5,374 
Provision for credit losses387 237 
Noninterest expense3,362 3,254 
Income (loss) from continuing operations attributable to Key899 1,517 
Income (loss) from discontinued operations, net of taxes3 6 
Net income (loss) attributable to Key902 1,523 
Income (loss) from continuing operations attributable to Key common shareholders791 1,437 
Income (loss) from discontinued operations, net of taxes3 6 
Net income (loss) attributable to Key common shareholders794 1,443 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.85 $1.55 
Income (loss) from discontinued operations, net of taxes— .01 
Net income (loss) attributable to Key common shareholders (a)
.86 1.56 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution.85 1.54 
Income (loss) from discontinued operations, net of taxes — assuming dilution— .01 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
.85 1.55 
Cash dividends paid.62 .59 
Performance ratios
From continuing operations:
Return on average total assets.62 %1.10 %
Return on average common equity9.18 14.48 
Return on average tangible common equity (b)
12.17 18.41 
Net interest margin (TE)2.20 2.60 
Cash efficiency ratio (b)
68.4 59.9 
From consolidated operations:
Return on average total assets.62 %1.10 %
Return on average common equity9.22 14.54 
Return on average tangible common equity (b)
12.22 18.49 
Net interest margin (TE)2.20 2.60 
Asset quality — from continuing operations
Net loan charge-offs$168 $120 
Net loan charge-offs to average total loans.19 %.15 %
Other data
Average full-time equivalent employees17,880 17,477 
Taxable-equivalent adjustment23 20 
(a)Earnings per share may not foot due to rounding.
(b)The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.
(d)September 30, 2023, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 15

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

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

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

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

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
Three months endedNine months ended
9/30/20236/30/20239/30/20229/30/20239/30/2022
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)$13,356 $13,844 $13,290 
Less: Intangible assets (a)
2,816 2,826 2,856 
Preferred Stock (b)
2,446 2,446 2,446 
Tangible common equity (non-GAAP)$8,094 $8,572 $7,988 
Total assets (GAAP)$187,851 $195,037 $190,051 
Less: Intangible assets (a)
2,816 2,826 2,856 
Tangible assets (non-GAAP)$185,035 $192,211 $187,195 
Tangible common equity to tangible assets ratio (non-GAAP)4.37 %4.46 %4.27 %
Pre-provision net revenue
Net interest income (GAAP)$915 $978 $1,196 $2,992 $3,307 
Plus: Taxable-equivalent adjustment8 8 7 23 20 
Noninterest income643 609 683 1,860 2,047 
Less: Noninterest expense1,110 1,076 1,106 3,362 3,254 
Pre-provision net revenue from continuing operations (non-GAAP)$456 $519 $780 $1,513 $2,120 
Average tangible common equity
Average Key shareholders' equity (GAAP)$13,831 $14,412 $14,614 $14,020 $15,256 
Less: Intangible assets (average) (c)
2,821 2,831 2,863 2,831 2,835 
Preferred stock (average)2,500 2,500 2,148 2,500 1,984 
Average tangible common equity (non-GAAP)$8,510 $9,081 $9,603 $8,689 $10,437 
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)$266 $250 $513 $791 $1,437 
Average tangible common equity (non-GAAP)8,510 9,081 9,603 8,689 10,437 
Return on average tangible common equity from continuing operations (non-GAAP)12.40 %11.04 %21.19 %12.17 %18.41 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)$267 $251 $515 $794 $1,443 
Average tangible common equity (non-GAAP)8,510 9,081 9,603 8,689 10,437 
Return on average tangible common equity consolidated (non-GAAP)12.45 %11.09 %21.28 %12.22 %18.49 %






KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 16

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months endedNine months ended
9/30/20236/30/20239/30/20229/30/20239/30/2022
Cash efficiency ratio
Noninterest expense (GAAP)$1,110 $1,076 $1,106 $3,362 $3,254 
Less: Intangible asset amortization9 10 12 29 35 
Adjusted noninterest expense (non-GAAP)$1,101 $1,066 $1,094 $3,333 $3,219 
Net interest income (GAAP)$915 $978 $1,196 $2,992 $3,307 
Plus: Taxable-equivalent adjustment8 8 7 23 20 
Noninterest income643 609 683 1,860 2,047 
Total taxable-equivalent revenue (non-GAAP)$1,566 $1,595 $1,886 $4,875 $5,374 
Cash efficiency ratio (non-GAAP)70.3 %66.8 %58.0 %68.4 %59.9 %
(a)For the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, intangible assets exclude $1 million, $1 million, and $2 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, average intangible assets exclude $1 million, $1 million, and $2 million, respectively, of average purchased credit card receivables.
GAAP = U.S. generally accepted accounting principles



KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 17

Consolidated Balance Sheets
(Dollars in millions)
9/30/20236/30/20239/30/2022
Assets
Loans$115,544 $119,011 $116,191 
Loans held for sale730 1,130 1,048 
Securities available for sale35,839 37,908 40,000 
Held-to-maturity securities8,853 9,189 8,163 
Trading account assets1,325 1,177 1,068 
Short-term investments7,871 8,959 4,896 
Other investments1,356 1,474 1,272 
Total earning assets171,518 178,848 172,638 
Allowance for loan and lease losses(1,488)(1,480)(1,144)
Cash and due from banks766 758 717 
Premises and equipment649 652 629 
Goodwill2,752 2,752 2,752 
Other intangible assets65 75 106 
Corporate-owned life insurance4,381 4,378 4,351 
Accrued income and other assets8,843 8,668 9,535 
Discontinued assets365 386 467 
Total assets$187,851 $195,037 $190,051 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits$112,581 $111,766 $97,875 
Noninterest-bearing deposits31,710 33,366 46,980 
Total deposits144,291 145,132 144,855 
Federal funds purchased and securities sold under repurchase agreements 43 1,702 4,224 
Bank notes and other short-term borrowings3,470 6,949 4,576 
Accrued expense and other liabilities5,388 5,339 4,849 
Long-term debt21,303 22,071 18,257 
Total liabilities174,495 181,193 176,761 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,254 6,231 6,257 
Retained earnings15,835 15,759 15,450 
Treasury stock, at cost(5,851)(5,859)(5,917)
Accumulated other comprehensive income (loss)(6,639)(6,044)(6,257)
Key shareholders’ equity13,356 13,844 13,290 
Total liabilities and equity$187,851 $195,037 $190,051 
Common shares outstanding (000)936,161 935,733 932,938 
    





KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 18

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Nine months ended
9/30/20236/30/20239/30/20229/30/20239/30/2022
Interest income
Loans$1,593 $1,576 $1,134 $4,645 $2,894 
Loans held for sale19 17 14 49 36 
Securities available for sale192 194 196 580 557 
Held-to-maturity securities79 81 55 234 149 
Trading account assets15 15 8 42 21 
Short-term investments123 111 32 276 49 
Other investments22 16 5 51 11 
Total interest income2,043 2,010 1,444 5,877 3,717 
Interest expense
Deposits687 531 59 1568 93 
Federal funds purchased and securities sold under repurchase agreements9 48 19 79 25 
Bank notes and other short-term borrowings81 104 24 263 36 
Long-term debt351 349 146 975 256 
Total interest expense1,128 1,032 248 2,885 410 
Net interest income915 978 1,196 2,992 3,307 
Provision for credit losses81 167 109 387 237 
Net interest income after provision for credit losses834 811 1,087 2,605 3,070 
Noninterest income
Trust and investment services income130 126 127 384 400 
Investment banking and debt placement fees141 120 154 406 466 
Cards and payments income90 85 91 256 256 
Service charges on deposit accounts69 69 92 205 279 
Corporate services income73 86 96 235 283 
Commercial mortgage servicing fees46 50 44 142 125 
Corporate-owned life insurance income35 32 33 96 99 
Consumer mortgage income15 14 14 40 49 
Operating lease income and other leasing gains22 23 19 70 79 
Other income22 4 13 26 11 
Total noninterest income643 609 683 1,860 2,047 
Noninterest expense
Personnel663 622 655 1,986 1,892 
Net occupancy67 65 72 202 223 
Computer processing89 95 77 276 232 
Business services and professional fees38 41 47 124 152 
Equipment20 22 23 64 72 
Operating lease expense18 21 24 59 79 
Marketing28 29 30 78 92 
Other expense187 181 178 573 512 
Total noninterest expense1,110 1,076 1,106 3,362 3,254 
Income (loss) from continuing operations before income taxes367 344 664 1,103 1,863 
Income taxes65 58 124 204 346 
Income (loss) from continuing operations302 286 540 899 1,517 
Income (loss) from discontinued operations, net of taxes1 1 2 3 6 
Net income (loss)303 287 542 902 1,523 
Net income (loss) attributable to Key$303 $287 $542 $902 1,523 
Income (loss) from continuing operations attributable to Key common shareholders$266 $250 $513 $791 $1,437 
Net income (loss) attributable to Key common shareholders267 251 515 794 $1,443 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.29 $.27 $.55 $.85 $1.55 
Income (loss) from discontinued operations, net of taxes— — — — .01 
Net income (loss) attributable to Key common shareholders (a)
.29 .27 .55 .86 1.56 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.29 $.27 $.55 $.85 $1.54 
Income (loss) from discontinued operations, net of taxes— — — — .01 
Net income (loss) attributable to Key common shareholders (a)
.29 .27 .55 .85 1.55 
Cash dividends declared per common share$.205 $.205 $.195 $.615 $.585 
Weighted-average common shares outstanding (000)927,131 926,741 924,594 927,019 924,085 
Effect of common share options and other stock awards4,613 3,713 7,861 5,213 8,679 
Weighted-average common shares and potential common shares outstanding (000) (b)
931,744 930,454 932,455 932,232 932,764 
(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 Third Quarter 2023 Profit     
October 19, 2023
Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Third Quarter 2023Second Quarter 2023Third Quarter 2022
AverageYield/AverageYield/AverageYield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$59,187 $886 5.94 %$61,426 $881 5.76 %$56,151 $578 4.09 %
Real estate — commercial mortgage15,844 238 5.97 16,226 235 5.80 16,002 168 4.18 
Real estate — construction2,820 48 6.77 2,641 44 6.64 2,306 27 4.58 
Commercial lease financing3,707 30 3.25 3,756 29 3.07 3,892 25 2.58 
Total commercial loans81,558 1,202 5.85 84,049 1,189 5.67 78,351 798 4.05 
Real estate — residential mortgage21,459 176 3.28 21,659 176 3.25 20,256 152 3.00 
Home equity loans7,418 110 5.87 7,620 109 5.75 8,024 91 4.51 
Consumer direct loans6,169 77 4.96 6,323 77 4.89 6,766 72 4.25 
Credit cards991 35 14.16 984 33 13.49 969 28 11.63 
Consumer indirect loans32 1 3.77 37 — — 52 — — 
Total consumer loans36,069 399 4.40 36,623 395 4.33 36,067 343 3.80 
Total loans117,627 1,601 5.41 120,672 1,584 5.26 114,418 1,141 3.97 
Loans held for sale1,356 19 5.73 1,087 17 6.16 1,102 14 5.22 
Securities available for sale (b), (e)
37,271 192 1.76 38,899 194 1.74 42,271 196 1.69 
Held-to-maturity securities (b)
9,020 79 3.50 9,371 81 3.47 7,933 55 2.79 
Trading account assets1,203 15 4.97 1,244 15 4.64 841 8 3.65 
Short-term investments8,416 123 5.79 7,798 111 5.73 3,043 32 4.13 
Other investments (e)
1,395 22 6.35 1,566 16 4.03 1054 5 1.78 
Total earning assets176,288 2,051 4.47 180,637 2,018 4.34 170,662 1,451 3.30 
Allowance for loan and lease losses(1,477)(1,379)(1,099)
Accrued income and other assets17,530 17,202 18,629 
Discontinued assets374 394 478 
Total assets$192,715 $196,854 $188,670 
Liabilities
Money market deposits$35,243 $213 2.40 %$32,419 $123 1.53 %$35,379 $8 .10 %
Demand deposits55,837 315 2.24 53,569 256 1.91 47,671 42 .35 
Savings deposits5,966 1 .05 6,592 1 .04 7,904 — .01 
Certificates of deposit ($100,000 or more)5,446 55 4.01 3,851 33 3.48 1,347 2 .47 
Other time deposits9,636 103 4.25 11,365 118 4.17 2,713 7 .97 
Total interest-bearing deposits112,128 687 2.43 107,796 531 1.98 95,014 59 .25 
Federal funds purchased and securities sold under repurchase agreements710 9 5.04 3,767 48 5.07 3,562 19 2.10 
Bank notes and other short-term borrowings5,819 81 5.54 7,982 104 5.22 3,725 24 2.53 
Long-term debt (f), (g)
21,584 351 6.50 22,284 349 6.26 17,704 146 3.32 
Total interest-bearing liabilities140,241 1,128 3.20 141,829 1,032 2.91 120,005 248 .82 
Noninterest-bearing deposits32,697 35,107 49,215 
Accrued expense and other liabilities5,572 5,112 4,358 
Discontinued liabilities (g)
374 394 478 
Total liabilities$178,884 $182,442 $174,056 
Equity
Key shareholders’ equity$13,831 $14,412 $14,614 
Noncontrolling interests— — — 
Total equity13,831 14,412 14,614 
Total liabilities and equity$192,715 $196,854 $188,670 
Interest rate spread (TE)1.27 %1.43 %2.48 %
Net interest income (TE) and net interest margin (TE)$923 2.01 %$986 2.12 %$1,203 2.74 %
TE adjustment (b)
887
Net interest income, GAAP basis$915 $978 $1,196 
(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 September 30, 2023, June 30, 2023, and September 30, 2022.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $202 million, $194 million, and $162 million of assets from commercial credit cards for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
(e)Yield is calculated on the basis of amortized cost.
(f)Rate calculation excludes basis adjustments related to fair value hedges.
(g)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles












KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 20

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Nine months ended September 30, 2023Nine months ended September 30, 2022
AverageYield/AverageYield/
BalanceInterest (a)Rate (a)BalanceInterest (a)Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$60,294 $2,574 5.71 %$53,878 $1,437 3.57 %
Real estate — commercial mortgage16,178 6975.76 15,278 4253.72 
Real estate — construction2,663 131 6.58 2,154 64 3.95 
Commercial lease financing3,749 86 3.06 3,883 72 2.48 
Total commercial loans82,884 3,488 5.63 75,193 1,998 3.55 
Real estate — residential mortgage21,534 524 3.25 18,331 395 2.87 
Home equity loans7,621 325 5.71 8,191 244 3.98 
Consumer direct loans6,309 229 4.86 6,414 201 4.20 
Credit cards986 101 13.68 948 76 10.75 
Consumer indirect loans37 1 1.54 67 — — 
Total consumer loans36,487 1,180 4.32 33,951 916 3.60 
Total loans119,371 4,668 5.23 109,144 2,914 3.57 
Loans held for sale1,118 49 5.90 1,230 36 3.94 
Securities available for sale (b), (e)
38,440 580 1.74 43,396 557 1.60 
Held-to-maturity securities (b)
9,108 234 3.43 7,473 149 2.66 
Trading account assets1150 42 4.82 846 21 3.28 
Short-term investments6,600 276 5.59 4,636 49 1.42 
Other investments (e)
1,423 51 4.78 836 11 1.80 
Total earning assets177,210 5,900 4.30 167,561 3,737 2.92 
Allowance for loan and lease losses(1,398)(1,087)
Accrued income and other assets17,411 18,315 
Discontinued assets395 507 
Total assets$193,618 $185,296 
Liabilities
Money market deposits$33,829 $414 1.64 %$36,318 $17 .06 %
Other demand deposits53,951 754 1.87 49,314 62 .17 
Savings deposits6,630 2 .04 7,799 1 .01 
Certificates of deposit ($100,000 or more)3,907 104 3.56 1,490 5 .45 
Other time deposits9,708 294 4.04 2,263 8 .48 
Total interest-bearing deposits108,025 1,568 1.94 97,184 93 .13 
Federal funds purchased and securities sold under repurchase agreements2,183 79 4.84 2,226 25 1.51 
Bank notes and other short-term borrowings6,797 263 5.17 2,135 36 2.24 
Long-term debt (f), (g)
21,341 975 6.09 13,757 256 2.49 
Total interest-bearing liabilities138,346 2,885 2.79 115,302 410 .48 
Noninterest-bearing deposits35,691 50,082 
Accrued expense and other liabilities5,166 4,149 
Discontinued liabilities (g)
395 507 
Total liabilities$179,598 $170,040 
Equity
Key shareholders’ equity$14,020 $15,256 
Noncontrolling interests— — 
Total equity14,020 15,256 
Total liabilities and equity$193,618 $185,296 
Interest rate spread (TE)1.52 %2.45 %
Net interest income (TE) and net interest margin (TE)$3,015 2.20 %$3,327 2.60 %
TE adjustment (b)
2320 
Net interest income, GAAP basis$2,992 $3,307 
(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 nine months ended September 30, 2023, and September 30, 2022, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $192 million and $152 million of assets from commercial credit cards for the nine months ended September 30, 2023, and September 30, 2022, respectively.
(e)Yield is calculated on the basis of amortized cost.
(f)Rate calculation excludes basis adjustments related to fair value hedges.
(g)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles



KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 21

Noninterest Expense
(Dollars in millions)
Three months endedNine months ended
9/30/20236/30/20239/30/20229/30/20239/30/2022
Personnel (a)
$663 $622 $655 $1,986 $1,892 
Net occupancy67 65 72 202 223 
Computer processing89 95 77 276 232 
Business services and professional fees38 41 47 124 152 
Equipment20 22 23 64 72 
Operating lease expense18 21 24 59 79 
Marketing28 29 30 78 92 
Other expense187 181 178 573 512 
Total noninterest expense$1,110 $1,076 $1,106 $3,362 $3,254 
Average full-time equivalent employees (b)
17,666 17,754 17,907 17,880 17,477 
(a)Additional detail provided in Personnel Expense table below.
(b)The number of average full-time equivalent employees has not been adjusted for discontinued operations.
Personnel Expense
(Dollars in millions)
Three months endedNine months ended
9/30/20236/30/20239/30/20229/30/20239/30/2022
Salaries and contract labor$415 $416 $388 $1,250 $1,093 
Incentive and stock-based compensation141 93 176 386 522 
Employee benefits106 103 89 308 269 
Severance1 10 2 42 8 
Total personnel expense$663 $622 $655 $1,986 $1,892 



KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 22

Loan Composition
(Dollars in millions)
Change 9/30/2023 vs.
9/30/20236/30/20239/30/20226/30/20239/30/2022
Commercial and industrial (a)
$57,606 $60,059 $56,971 (4.1)%1.1 %
Commercial real estate:
Commercial mortgage15,549 16,048 16,400 (3.1)(5.2)
Construction2,982 2,646 2,349 12.7 26.9 
Total commercial real estate loans18,531 18,694 18,749 (.9)(1.2)
Commercial lease financing (b)
3,681 3,801 3,877 (3.2)(5.1)
Total commercial loans79,818 82,554 79,597 (3.3).3 
Residential — prime loans:
Real estate — residential mortgage21,309 21,637 20,838 (1.5)2.3 
Home equity loans7,324 7,529 7,926 (2.7)(7.6)
Total residential — prime loans28,633 29,166 28,764 (1.8)(.5)
Consumer direct loans6,074 6,257 6,803 (2.9)(10.7)
Credit cards988 1,001 977 (1.3)1.1 
Consumer indirect loans31 33 50 (6.1)(38.0)
Total consumer loans35,726 36,457 36,594 (2.0)(2.4)
Total loans (c), (d)
$115,544 $119,011 $116,191 (2.9)%(.6)%
(a)Loan balances include $207 million, $200 million, and $166 million of commercial credit card balances at September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
(b)Commercial lease financing includes receivables held as collateral for a secured borrowing of $4 million, $5 million, and $10 million at September 30, 2023, June 30, 2023, and September 30, 2022, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $360 million at September 30, 2023, $381 million at June 30, 2023, and $467 million at September 30, 2022, related to the discontinued operations of the education lending business.
(d)Accrued interest of $520 million, $500 million, and $274 million at September 30, 2023, June 30, 2023, and September 30, 2022, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.
Loans Held for Sale Composition
(Dollars in millions)
Change 9/30/2023 vs.
9/30/20236/30/20239/30/20226/30/20239/30/2022
Commercial and industrial$47 $221 $292 (78.7)%(83.9)%
Real estate — commercial mortgage571 829 693 (31.1)(17.6)
Commercial lease financing— 13 2 (100.0)(100.0)
Real estate — residential mortgage112 67 61 67.2 83.6 
Total loans held for sale$730 $1,130 $1,048 (35.4)%(30.3)%
N/M = Not Meaningful
Summary of Changes in Loans Held for Sale
(Dollars in millions)
3Q232Q231Q234Q223Q22
Balance at beginning of period$1,130 $1,211 $963 $1,048 $1,306 
New originations3,035 1,798 1,779 3,158 2,157 
Transfers from (to) held to maturity, net(94)(52)(13)(48)— 
Loan sales(3,312)(1,798)(1,518)(3,124)(2,446)
Loan draws (payments), net(29)(28)— (71)26 
Valuation and other adjustments— (1)— — 5 
Balance at end of period$730 $1,130 $1,211 $963 $1,048 
    




KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 23

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months endedNine months ended
9/30/20236/30/20239/30/20229/30/20239/30/2022
Average loans outstanding$117,627 $120,672 $114,418 $119,371 $109,144 
Allowance for loan and lease losses at the beginning of the period1,480 1,380 1,099 1,337 1,061 
Loans charged off:
Commercial and industrial62 42 49 139 118 
Real estate — commercial mortgage1 9 3 15 10 
Real estate — construction— — — — — 
Total commercial real estate loans1 9 3 15 10 
Commercial lease financing— 1 — — 2 
Total commercial loans63 52 52 154 130 
Real estate — residential mortgage— 1 1 1 (2)
Home equity loans1 2 — 4 1 
Consumer direct loans14 11 8 36 25 
Credit cards9 9 7 27 22 
Consumer indirect loans— 1 — 1 2 
Total consumer loans24 24 16 69 48 
Total loans charged off87 76 68 223 178 
Recoveries:
Commercial and industrial10 15 13 33 32 
Real estate — commercial mortgage— 1 2 1 4 
Real estate — construction— — — — 1 
Total commercial real estate loans— 1 2 1 5 
Commercial lease financing1 2 1 4 2 
Total commercial loans11 18 16 38 39 
Real estate — residential mortgage1 1 1 3 2 
Home equity loans1 1 1 3 3 
Consumer direct loans2 2 4 6 7 
Credit cards1 2 2 4 5 
Consumer indirect loans— — 1 1 2 
Total consumer loans5 6 9 17 19 
Total recoveries16 24 25 55 58 
Net loan charge-offs(71)(52)(43)(168)(120)
Provision (credit) for loan and lease losses79 152 88 319 203 
Allowance for loan and lease losses at end of period$1,488 $1,480 $1,144 $1,488 $1,144 
Liability for credit losses on lending-related commitments at beginning of period$291 $276 $173 $225 $160 
Provision (credit) for losses on lending-related commitments2 15 21 68 34 
Other(3)— — (3)— 
Liability for credit losses on lending-related commitments at end of period (a)
$290 $291 $194 $290 $194 
Total allowance for credit losses at end of period$1,778 $1,771 $1,338 $1,778 $1,338 
Net loan charge-offs to average total loans.24 %.17 %.15 %.19 %.15 %
Allowance for loan and lease losses to period-end loans1.29 1.24 .98 1.29 .98 
Allowance for credit losses to period-end loans1.54 1.49 1.15 1.54 1.15 
Allowance for loan and lease losses to nonperforming loans327 343 293 327 293 
Allowance for credit losses to nonperforming loans391 411 343 391 343 
Discontinued operations — education lending business:
Loans charged off$— $2 $1 $3 $4 
Recoveries— 1 1 1 2 
Net loan charge-offs$— $(1)$— $(2)$(2)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 24

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
3Q232Q231Q234Q223Q22
Net loan charge-offs$71 $52 $45 $41 $43 
Net loan charge-offs to average total loans.24 %.17 %.15 %.14 %.15 %
Allowance for loan and lease losses$1,488 $1,480 $1,380 $1,337 $1,144 
Allowance for credit losses (a)
1,778 1,771 1,656 1,562 1,338 
Allowance for loan and lease losses to period-end loans1.29 %1.24 %1.15 %1.12 %.98 %
Allowance for credit losses to period-end loans1.54 1.49 1.38 1.31 1.15 
Allowance for loan and lease losses to nonperforming loans327 343 332 346 293 
Allowance for credit losses to nonperforming loans391 411 398 404 343 
Nonperforming loans at period end$455 $431 $416 $387 $390 
Nonperforming assets at period end471 462 447 420 419 
Nonperforming loans to period-end portfolio loans.39 %.36 %.35 %.32 %.34 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.41 .39 .37 .35 .36 
        
(a)Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
9/30/20236/30/20233/31/202312/31/20229/30/2022
Commercial and industrial$214 $188 $170 $174 $169 
Real estate — commercial mortgage63 65 59 21 34 
Real estate — construction— — — — — 
Total commercial real estate loans63 65 59 21 34 
Commercial lease financing1 1 1 1 2 
Total commercial loans278 254 230 196 205 
Real estate — residential mortgage72 73 75 77 66 
Home equity loans97 97 104 107 112 
Consumer direct loans3 3 3 3 3 
Credit cards4 3 3 3 3 
Consumer indirect loans1 1 1 1 1 
Total consumer loans177 177 186 191 185 
Total nonperforming loans (a)
455 431 416 387 390 
OREO16 15 13 13 12 
Nonperforming loans held for sale— 16 18 20 17 
Other nonperforming assets— — — — — 
Total nonperforming assets$471 $462 $447 $420 $419 
Accruing loans past due 90 days or more52 73 55 60 47 
Accruing loans past due 30 through 89 days178 139 164 180 187 
Nonperforming assets from discontinued operations — education lending business 2 2 3 3 3 
Nonperforming loans to period-end portfolio loans.39 %.36 %.35 %.32 %.34 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.41 .39 .37 .35 .36 
(a)On January 1, 2023, Key adopted ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. In connection with the adoption of this guidance, nonperforming loans for periods after January 1, 2023, include certain loans which were modified for borrowers experiencing financial difficulty. Amounts prior to January 1, 2023, include nonperforming troubled debt restructurings (TDRs), for which accounting guidance was eliminated upon adoption of ASU 2022-02.

Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
3Q232Q231Q234Q223Q22
Balance at beginning of period$431 $416 $387 $390 $429 
Loans placed on nonaccrual status159 169 143 113 80 
Charge-offs(87)(76)(60)(67)(68)
Loans sold(4)(23)(2)(4)(3)
Payments(25)(20)(31)(22)(29)
Transfers to OREO(3)(2)(2)(1)(1)
Loans returned to accrual status(16)(33)(19)(22)(18)
Balance at end of period$455 $431 $416 $387 $390 


KeyCorp Reports Third Quarter 2023 Profit     
October 19, 2023
Page 25

Line of Business Results
(Dollars in millions)
Change 3Q23 vs.
3Q232Q231Q234Q223Q222Q233Q22
Consumer Bank
Summary of operations
Total revenue (TE)$791 $803 $840 $860 $877 (1.5)%(9.8)%
Provision for credit losses14 32 60 105 37 (56.3)(62.2)
Noninterest expense677 663 663 705 675 2.1 .3 
Net income (loss) attributable to Key76 82 89 38 125 (7.3)(39.2)
Average loans and leases42,250 42,934 43,086 43,149 42,568 (1.6)(.7)
Average deposits83,863 82,498 84,637 87,370 90,170 1.7 (7.0)
Net loan charge-offs36 32 24 21 17 12.5 111.8 
Net loan charge-offs to average total loans.34 %.30 %.23 %.19 %.16 %13.3 112.5 
Nonperforming assets at period end$190 $193 $196 $202 $195 (1.6)(2.6)
Return on average allocated equity8.48 %9.04 %9.87 %4.51 %14.26 %(6.2)(40.5)
Commercial Bank
Summary of operations
Total revenue (TE)$790 $805 $844 $894 $878 (1.9)%(10.0)%
Provision for credit losses68 134 80 165 74 (49.3)(8.1)
Noninterest expense431 405 442 459 451 6.4 (4.4)
Net income (loss) attributable to Key226 214 255 225 287 5.6 (21.3)
Average loans and leases74,951 77,277 76,306 74,100 71,464 (3.0)4.9 
Average loans held for sale1,268 1,014 876 1,377 1,036 25.0 22.4 
Average deposits54,896 51,420 52,219 54,385 52,272 6.8 5.0 
Net loan charge-offs35 20 21 25 27 75.0 29.6 
Net loan charge-offs to average total loans.19 %.10 %.11 %.13 %.15 %90.0 26.7 
Nonperforming assets at period end$281 $269 $251 $218 $224 4.5 25.4 
Return on average allocated equity8.64 %8.17 %10.04 %9.36 %12.29 %5.8 (29.7)
TE = Taxable Equivalent

KeyCorp Third Quarter 2023 Earnings Review October 19, 2023 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer

 
Forward-looking Statements and Additional Information This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “seek,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible,” “potential,” “strategy,” “opportunities,” or “trends,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp’s control). Actual results may differ materially from current projections. Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward-looking Statements” and “Risk Factors” in KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2022, Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and in other filings of KeyCorp with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward- looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. This presentation also includes certain non-GAAP financial measures related to “tangible common equity” and “cash efficiency ratio.” Although Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of results under GAAP. For more information on these calculations and to view the reconciliations to the most comparable GAAP measures, please refer to the appendix of this presentation, or page 48 of our Form 10-Q dated June 30, 2023. Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain items is disclosed separately, the after-tax amount is computed using the marginal tax rate, with this then being the amount used to calculate the earnings per share equivalent. GAAP: Generally Accepted Accounting Principles 2

 
3 ▪ Increased CET1 ratio by 50 bps; above targeted range ‒ Risk-weighted assets declined by $7Bn(1) ▪ Strong core funded balance sheet ‒ Granular, diverse deposit base: average deposits up $2Bn ▪ NII declined from prior quarter and year-ago period ‒ Reflects higher interest rates and balance sheet positioning ▪ Growth in noninterest income ‒ Driven by strong activity in capital markets, payments, and wealth ▪ Well-managed expenses ‒ Expenses up 3% QoQ and stable YoY ▪ Solid credit quality ‒ NCOs to average loans: .24% 3Q23 Highlights ▪ Strengthening and optimizing our balance sheet ‒ Strengthening our balance sheet by continuing to grow core deposits and improve funding and liquidity ‒ Positioning Key to meet new capital requirements under the proposed Basel III Endgame framework ▪ Simplifying and streamlining our focus ‒ Narrowing our focus on high-impact initiatives that improve efficiency and support ongoing investments ‒ Leveraging our relationship-based business model focused on targeted scale to drive future growth and strong performance ▪ Maintaining strong risk management – High-quality portfolio positions Key to continue to deliver sound, profitable growth (1) 9/30/2023 figures are estimated; (2) 9/30/2023 figures are estimated and reflect Key's election to adopt the CECL optional transition provision 3Q23 Financial Results Strategic Highlights & Outlook 9.8% CET1(2) $.29 Earnings per diluted common share $7Bn Reduction in RWAs (1) vs. prior QTR 24 bps NCO to Average Loans

 
Financial Review

 
EOP = End of Period; (1) Non-GAAP measure: see appendix for reconciliation; (2) 9/30/2023 ratios are estimated and reflect Key's election to adopt the CECL optional transition provision 5 EPS – assuming dilution $.29 $.27 $ .55 7.4 % (47.3) % Cash efficiency ratio(1) 70.3 % 66.8 % 58.0 % 350 bps 1,230 bps Return on average tangible common equity(1) 12.4 11.0 21.2 140 (880) Return on average total assets .62 .58 1.14 4 (52) Net interest margin 2.01 2.12 2.74 (11) (73) Common Equity Tier 1(2) 9.8 % 9.3 % 9.1 % 50 bps 70 bps Tier 1 risk-based capital(2) 11.4 10.8 10.7 60 70 Tangible common equity to tangible assets(1) 4.4 4.5 4.3 (10) 10 NCOs to average loans .24 % .17 % .15 % 7 bps 9 bps NPLs to EOP portfolio loans .39 .36 .34 3 5 Allowance for credit losses to EOP loans 1.54 1.49 1.15 5 39 Profitability Capital Asset Quality 3Q23 2Q23 3Q22 LQ Δ Y/Y Δ Continuing operations, unless otherwise noted Financial Highlights

 
6 $78.3 $80.9 $83.0 $84.0 $81.5 $36.1 $36.8 $36.8 $36.6 $36.1 3.97% 4.57% 5.01% 5.26% 5.41% 1.00% 3Q22 4Q22 1Q23 2Q23 3Q23 Average Consumer Average Commercial $ in billions ▪ Average loans up 3% from 3Q22 − Growth in C&I loans driven by relationship clients ▪ Average loans down 3% from 2Q23 − Driven by our balance sheet optimization efforts as we deemphasize non-relationship business − Decline in C&I loans − Decline in consumer mortgage and home equity loans vs. Prior Year vs. Prior Quarter $114.4 $117.7 $119.8 Loans Results reflect our balance sheet optimization efforts as we deemphasize non-relationship business Total Average Loans Highlights $120.7 $117.6 Loan Yield

 
$90.2 $87.4 $84.6 $82.5 $83.9 $52.3 $54.4 $52.2 $51.4 $54.9 $1.7 $3.9 $6.6 $9.0 $6.1 16 51 99 149 188 3Q22 4Q22 1Q23 2Q23 3Q23 $142.9$144.2 $145.7 $143.4 (1) Other includes brokered deposits and other deposits; (2) Cumulative beta indexed to 4Q21 7 $ in billions Deposits Continue to focus on relationship banking and primacy; average deposits increased compared to the prior quarter and year-ago period ▪ Average deposits up 0.4% from 3Q22 − Increase in wholesale deposits and public sector deposits − Partly offset by a continuation of impacts from changing client behavior reflective of higher interest rates and a normalization of pandemic-related deposits ▪ Average deposits up 1% from 2Q23 − Driven by an increase in consumer and commercial deposit balances − The increase was partly offset by a decline in other time deposits, reflecting lower wholesale deposits ($7Bn of average brokered deposits in 3Q23) vs. Prior Year vs. Prior Quarter ▪ Cumulative total interest-bearing deposit beta: 46%(2) $144.8 Deposits Highlights Average Consumer Average Commercial Average Other (1) Total deposit cost (bp)

 
$ in millions, continuing operations vs. Prior Quarter TE = Taxable equivalent $1,203 $1,227 $1,106 $986 $923 2.74% 2.73% 2.47% 2.12% 2.01% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 3Q22 4Q22 1Q23 2Q23 3Q23 ▪ Net interest income down $280MM (-23%), net interest margin decreased 73 basis points from 3Q22 − Reflects higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits and borrowings − Partially offset by benefits from higher earning asset balances and yields ▪ Net interest income down $63MM (-6%), net interest margin decreased 11 basis points from 2Q23 − Reflects a planned reduction in earning asset balances and higher interest rates on interest-bearing deposit costs − Benefitted from an improved funding mix as higher-cost wholesale borrowings declined, and lower-cost interest- bearing deposits increased 8 vs. Prior Year Net Interest Income (TE) Net Interest Margin (TE) Net interest income in the quarter reflected the continued higher interest rate environment and our balance sheet positioning Net Interest Income and Margin Net Interest Margin Walk (TE) Interest-bearing Deposit Costs Funding Mix & Liquidity Earnings Asset Yields 3Q232Q23 Net Interest Income & Net Interest Margin Trend (TE) Highlights

 
9 Expecting significant benefit from swap and Treasury maturities Net Interest Income Opportunities Illustrative, $ in millions $39 $67 $97 $112 $131 $150 $7 $13 $22 $41 $71 $102 $46 $80 $119 $152 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 ~$1Bn annualized Net Interest Income benefit by 1Q25 (1) Assumes the forward curve as of 9/30/2023 and maturities to occur on the last day of each quarter Treasuries Swaps Net Interest Income Pickup from Short-dated Maturities(1) $202 $252

 
10 ▪ Noninterest income down $40MM (-6%) from 3Q22 − Lower service charges on deposit accounts (-$23MM) driven by a reduction in NSF/OD fees and lower account analysis fees related to higher interest rates − Lower corporate services income (-$23MM) driven by lower customer derivatives trading revenue − Lower investment banking and debt placement fees (-$13MM) reflecting lower capital markets activity vs. Prior Quarter ▪ Noninterest income up $34MM (+6%) from 2Q23 − Higher investment banking and debt placement fees (+$21MM) − Higher other income (+$18MM) due to higher trading income and a gain on a loan sale − Lower corporate services income (-$13MM) driven by lower customer derivatives trading revenue vs. Prior Year $ in millions - up / (down) 3Q23 vs. 3Q22 vs. 2Q23 Trust and investment services income $ 130 $ 3 $ 4 Investment banking and debt placement fees 141 (13) 21 Cards and payments income 90 (1) 5 Service charges on deposit accounts 69 (23) - Corporate services income 73 (23) (13) Commercial mortgage servicing fees 46 2 (4) Corporate-owned life insurance 35 2 3 Consumer mortgage income 15 1 1 Operating lease income and other leasing gains 22 3 (1) Other income 22 9 18 Total noninterest income $ 643 $ (40) $ 34 Stronger investment banking and debt placement fees drove the increase in fee income compared to the prior quarter Noninterest Income Noninterest Income Highlights

 
11 vs. Prior Quarter vs. Prior Year ▪ Noninterest expense up $4MM (+0.4%) from 3Q22 − Higher computer processing expense (+$12MM) related to technology investments and higher personnel expense (+$8MM) and employee benefits costs − Lower business and professional fees (-$9MM) and lower operating lease expense (-$6MM) ▪ Noninterest expense up $34MM (+3%) from 2Q23 − Higher personnel expense (+$41MM) due to higher incentive and stock-based compensation reflecting a higher stock price, production-related incentives, and other incentive funding − Partially offset by a decline in computer processing expense (-$6MM) and broad-based declines among expense categories Continue to simplify and streamline businesses to create expense efficiencies while continuing to make targeted investments for the future Noninterest Expense $ in millions - favorable / (unfavorable) 3Q23 vs. 3Q22 vs. 2Q23 Personnel $ 663 $ (8) $ (41) Net occupancy 67 5 (2) Computer processing 89 (12) 6 Business services and professional fees 38 9 3 Equipment 20 3 2 Operating lease expense 18 6 3 Marketing 28 2 1 Other expense 187 (9) (6) Total noninterest expense $ 1,110 $ (4) $ (34) Noninterest Expense Highlights

 
$1,338 $1,562 $1,656 $1,771 $1,778 343% 404% 398% 411% 391% 3Q22 4Q22 1Q23 2Q23 3Q23 Allowance for credit losses to NPLsAllowance for credit losses 3Q23 allowance for credit losses to period-end loans of 1.54%$ in millions NCO = Net charge-off NPL = Nonperforming Loans (1) Loan and lease outstandings 12 $43 $41 $45 $52 71 $109 $265 $139 $167 81 0.15% 0.14% 0.15% 0.17% 0.24% 3Q22 4Q22 1Q23 2Q23 3Q23 $ in millions NCOs Provision for credit losses NCOs to avg. loans 2.5% 2.5% 2.8% 3.3% 3.9% 3Q22 4Q22 1Q23 2Q23 3Q23 Continuing Operations Disciplined underwriting with net charge-offs remaining near low levels Credit Quality 0.16% 0.15% 0.14% 0.12% 0.15% 0.04% 0.05% 0.05% 0.06% 0.04% 3Q22 4Q22 1Q23 2Q23 3Q23 30 – 89 days delinquent 90+ days delinquent Net Charge-offs & Provision for Credit Losses Continuing Operations Delinquencies to Period-end Total Loans Criticized Outstandings (1) to Period-end Total Loans Allowance for Credit Losses (ACL)

 
9.1% 9.1% 9.1% 9.3% 9.8% 3Q22 4Q22 1Q23 2Q23 3Q23 A = Actual; E = Estimated (1) 9/30/23 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (2) Assumes market forwards as of September 30, 2023 13 Strong capital position, up 50 basis points from last quarter and well above targeted range Capital Target operating range: 9% - 9.5% ▪ Priorities remain unchanged: focused on supporting relationship clients and dividends ▪ Declared 3Q23 dividend of $.205 per common share Common Equity Tier 1(1) Projected AOCI Impacts(2) 9/30/2023 A 12/31/2023 E 12/31/2024 E 12/31/2025 E Illustrative, $ in billions $(6.6) $(6.2) $(4.8) $(4.1) ~27% AOCI burn down by the end of 2024 ~39% AOCI burn down by the end of 2025 ~$2.5Bn Capital Build Contribution by End of 2025

 
Average Balance Sheet • Loans: down 1% - 3% • Deposits: relatively stable • Loans: up 6% - 9% • Deposits: flat to down 2% Net Interest Income (TE) • Net interest income: relatively stable (Prior guidance flat to down 2%) • Net interest income: down 12% - 14% Noninterest Income • Noninterest income: up 1% - 3% (Prior guidance up 4% - 6%) • Noninterest income: down 7% - 9% Noninterest Expense • Noninterest expense: relatively stable(1) • Noninterest expense: relatively stable(1) Credit Quality • Net charge-offs to average loans: 25 – 35 bps (4Q23) • Net charge-offs to average loans: 25 – 30 bps (FY2023) Taxes • GAAP tax rate: 18% - 19% (4Q23) • GAAP tax rate: 18% - 19% (FY2023) Long-term Targets Positive operating leverage Moderate risk profile: Net charge-offs to avg. loans targeted range of 40-60 bps ROTCE: 16% - 19% Cash efficiency ratio: 54% - 56% Note: Guidance range: relatively stable: +/- 2% Note: Assumes market forwards as of September 30, 2023 (1) The noninterest expense guidance excludes the proposed FDIC special assessment related to recovering the cost of the closures of Silicon Valley Bank and Signature Bank, efficiency related expenses, and an expected pension settlement charge Outlook 4Q23 (vs. 3Q23) FY2023 (vs. FY2022) 14 Guidance as of 10/19/2023

 
Appendix

 
16 $ in billions, as of 9/30/2023 ▪ $8Bn of deposits are from low-cost, stable escrow balances ▪ $13.5Bn of uninsured deposits are collateralized by government-backed securities ▪ 79% of commercial segment deposit balances are from core operating accounts ▪ Loan-to-deposit ratio: 81%(2) 3Q23 Mix by Insurance Coverage 59% 32% 5% Deposits: A Diverse Core Base Key’s deposit base is made up of over three and a half million retail, small business, private banking, and commercial clients, with two-thirds of balances covered by FDIC insurance or collateralized 46% 26% 12% 9% 7% Middle Market Business Banking Retail Large Corporate Public Sector Uninsured and Uncollateralized Insured Collateralized 58% 33% 9% $144.3 67% of balances insured or collateralized 58% of balances from retail and business banking clients Note: All figures are based on 9/30/2023 period-end data unless otherwise noted (1) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries; (2) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits (1) 3Q23 Mix by Client Highlights $ in billions CDs and other time deposits Savings Noninterest-bearing Demand and MMDA 3Q23 Average Deposit Mix 63% 23% 10%4% $144.8 As of 9/30/2023

 
Portfolio Highlights ▪ Target specific client segments focused in seven industry verticals ▪ Experienced bankers with deep industry expertise ▪ Focused on high quality clients ▪ Small, stable leveraged portfolio: ~2% of total loans ▪ Strong credit quality metrics − Disciplined, consistent underwriting − Active surveillance with ongoing portfolio reviews − Dynamic assessment of ratings migration ~80% commercial bank credit exposure from relationship(1) clients Targeted Industry Verticals Consumer Energy Industrial TechnologyHealthcare (1) Relationship client is defined as having two or more of the following: credit, capital markets, or payments ▪ Solid middle market portfolio, high-quality borrowers ▪ Aligning bankers to areas of market opportunity and growth - investing in strategic hires with industry vertical expertise ▪ C&I loan utilization: 32% in 3Q23 ▪ Focused on relationships with select owners and operators ▪ Strengthened credit risk profile with strategic exits and growth in targeted client segments ▪ Since the global financial crisis, we have reduced our overall construction loans (42% in 2008  16% at 9/30/23) ▪ Strategic focus on multifamily, primarily affordable housing Real Estate Public Sector 17 $ in millions 9/30/23 % of total loans Commercial and industrial $ 57,606 50% Commercial real estate 18,531 16 Commercial lease financing 3,681 3 Total Commercial $ 79,818 69% >50% of C&I portfolio is investment grade Total Commercial Loans Commercial & Industrial (C&I) Commercial Real Estate (CRE) Commercial Business Detail

 
Key has limited exposure to riskier asset classes like office, lodging, and retail 18 $ in millions, non-owner occupied 9/30/23 % of total loans Multifamily $ 9,025 7.8% Industrial 811 <1% Retail 1,161 1% Senior Housing 809 <1% Office 865 <1% B and C Class Office in Central Business Districts 116 N/A Lodging 206 <1% Other 1,888 1.6% Total Non-owner Occupied Commercial Real Estate $ 14,765 13% Office Loans as a Portion of Total Loans (1) Source: 10-Q filing data as of 6/30/2023 – peers include BAC, CFG, JPM, MTB, PNC, TFC, WFC, and ZION, as others do not report data on office balances Portfolio by Asset Class Office Loan Detail Commercial Real Estate Loan Portfolio Detail ▪ 17% to mature in 2023 ($147MM) ▪ $0 non-owner-occupied construction ▪ Nonperforming loans: 2.3% ▪ Delinquencies: ‒ 30 – 89 Day: 0.00% ‒ 90+ day: 0.01% Office Highlights 0.7% 3.1% Key Peer Median (1)

 
Portfolio Highlights ▪ Prime & super prime client base focused on relationships ▪ Continuing to invest in digital to drive future growth 768 weighted average FICO at origination Note: Table may not foot due to rounding (1) Indirect auto portfolio was sold on 9/10/21 Total Consumer Loans 19 $ in billions 9/30/23 % of total loans WA FICO at origination Consumer mortgage $ 21,309 18% 754 Home equity 7,324 6 807 Consumer direct 6,074 5 759 Credit card 988 1 793 Consumer indirect(1) 31 N/A N/A Total Consumer $ 35,726 31% 768 ▪ Assets under management of $52.5Bn, up $4.5Bn from the year-ago period ▪ Collaborating with businesses across Key, representing strong cross-sell opportunities ▪ Launched Key Private Client in 2023 and have seen compelling traction, adding over 17K households, growing both investments and deposits Wealth Management $ in millions Assets Under Management $47.8 $51.3 $53.7 $54.0 $52.5 3Q22 4Q22 1Q23 2Q23 3Q23 +10% Growth Consumer Business Detail

 
Period-end loans Average loans Net loan charge-offs Net loan charge- offs(3) / average loans (%)(4) Nonperforming loans Ending allowance Allowance / period-end loans (%)(4) Allowance / NPLs (%)(4) 9/30/23 3Q23 3Q23 3Q23 9/30/23 9/30/23 9/30/23 9/30/23 Commercial and industrial(1) $ 57,606 $ 59,187 $ 52 .35% $ 214 $ 576 1.00% 269.27% Commercial real estate: Commercial Mortgage 15,549 15,844 1 .03 63 360 2.31 571.01 Construction 2,982 2,820 - - - 48 1.60 - Commercial lease financing(2) 3,681 3,707 (1) (.11) 1 32 .88 N/M Real estate – residential mortgage 21,309 21,459 (1) (.02) 72 181 .85 252.06 Home equity 7,324 7,418 - - 97 91 1.24 93.28 Consumer direct loans 6,074 6,169 12 .77 3 124 2.03 N/M Credit cards 988 991 8 3.20 4 75 7.62 N/M Consumer indirect loans 31 32 - - 1 1 3.59 111.19 Continuing total $ 115,544 $ 117,627 $ 71 .24% $ 455 $ 1,488 1.29% 327.01% Discontinued operations 360 370 - - 2 17 4.81 865.57 Consolidated total $ 115,904 $ 117,997 $ 71 .24% $ 457 $ 1,505 1.30% 329.37% 20 $ in millions (1) Loan balance includes $207 million of commercial credit card balances at September 30, 2023; (2) Commercial lease financing includes receivables held as collateral for a secured borrowing of $4 million at September 30, 2023. Principal reductions are based on the cash payments received from these related receivables; (3) Net loan charge-off amounts are annualized in calculation; (4) Ratios calculated using unrounded figures and therefore may not foot to calculation using rounded figures presented in table Credit Quality Credit Quality by Portfolio

 
Prime 8% 1M SOFR 21% 3M SOFR 6% O/N SOFR 25% Fixed 36% Other 4% (1) Loan statistics based on 9/30/2023 ending balances; (2) Deposit statistics based on 9/30/2023 average balances; (3) Yield is calculated on the basis of amortized cost Loan Composition(1) Deposit Mix(2) ▪ Attractive business model with relationship-oriented lending franchise − Distinctive commercial capabilities drive C&I growth and ~64% floating-rate loan mix − Laurel Road and consumer mortgage enhance fixed rate loan volumes with attractive client profile ▪ Investment portfolio positioned to provide liquidity and enhance returns while benefiting from higher reinvestment rates − Objectives include investing in mortgage-backed securities with lower prepayment risks and limited exposure to unamortized premiums ▪ Average balances reflects portfolio runoff in 3Q23 ▪ HTM utilized to reduce OCI volatility beginning in 2Q22 ‒ Current portfolio consists of ~20% HTM (+5% year over year) 21 Noninterest- bearing Interest- bearing 23% $7.9 $8.3 $8.9 $9.4 $9.0 $42.3 $39.2 $39.2 $38.9 $37.3 1.85% 1.91% 1.98% 2.04% 2.06% 3Q22 4Q22 1Q23 2Q23 3Q23 Average AFS securities Average yield(3)Average HTM securities $ in billions Average Total Investment Securities Balance Sheet Management Detail 3Q23 Balance Sheet Highlights Highlights $50.3 $50.2 $47.5 $48.1 $46.3 77%

 
22 Hedging Strategy Opportunistically locking in future benefit while managing downside risk ALM Hedge Actions(1) Hedge Portfolio $ in billions (1) Chart includes forward-starting swaps and floor spreads since 4Q22; (2) Additional $5.2Bn of swaps set to mature in 2025 and $9.1Bn in 2026; (3) Excludes $50MM forward-starting SOFR swaps created as a result of the industry’s operational transition from LIBOR to SOFR that matures 10/2/2023 WA Receive fixed rate (4Q23-4Q24): 0.48% Interest Rate Swap Maturities(2) $2.0 $3.3 $3.5 $3.5 $2.9 $1.2 $3.3 $3.3 $2.5 $7.8 $7.8 $7.8 $7.8 $7.8 $6.8 $6.8 $5.7 $0.0 $2.0 $4.0 $6.0 $8.0 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2025 2026 • Added $3Bn of forward-starting receive fixed swaps - WA receive rate: 3.4% • Executed $3.3Bn of forward-starting floor spreads - WA buy strike: 3.4%, WA sold strike: 2.3% • Executed $7.8Bn of spot pay fix swaps ($1.0Bn in 1Q23 & $6.75Bn in 3Q23) – WA pay rate: 4.2% $ in billions YTD through 9/30 Forward-starting Rec Fixed Swaps Floor Spreads Spot Starting Pay Fix Swaps Action and Impact Subsequent to 3Q23 ▪ Terminated $7.5Bn of receive fixed cash flow swaps which were scheduled to mature throughout 2024 ‒ Amount in AOCI will be recognized in earnings throughout 2024 in alignment with the hedged cash flows ‒ Decreases Key’s liability sensitivity, maintain swap repricing benefit, and protects capital $2.3 $2.4 $1.3 $1.9 $1.9 0.41% 0.34% 0.65% 0.57% 0.53% $0.0 $1.0 $2.0 $3.0 4Q23 1Q24 2Q24 3Q24 4Q24 Total Receive Fixed Cash Flow Swaps WA Receive Rate on Maturities $ in billions 9/30/2023 ALM Hedges $ 24.8 ALM Forward Hedges 7.3 Debt Swaps (3) 10.4 Securities Hedges 8.2 Non-zero Loan Floors 8.0

 
23 Projected Cash Flows & Maturities (under implied forward rates) Floating Rate (including hedges) Existing Portfolio Repricing Characteristics Highlights (1) 2023 Projected cashflows does not include realized cashflows from 1Q23, 2Q23 and 3Q23 Investment Portfolio $ in billions $0.4 $0.7 $1.5 $2.6 $2.9 $0.3 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 WA yield on portfolio 0.44% $ in billions .48%.44%.45%.29% .17% Short-term Treasury Maturities WA Maturity Yield Short-term Treasury Maturities .63% ▪ Portfolio used for funding and liquidity management ‒ Portfolio composed primarily of fixed-rate GNMA and GSE-backed MBS and CMOs ‒ Portfolio yield excluding short-term Treasury/Agency securities: 2.4% ▪ Portfolio constructed to enhance current returns on excess liquidity, while preserving the opportunity to capitalize on higher interest rates in the future ‒ Agency MBS/CMO investments constructed to limit extension risk and provide continued cash flows as rates rise (~$1.2Bn per quarter in the near-term) ‒ Short-term Treasury/Agency portfolio consists of a laddered maturity profile has begun running off and will continue to provide yield enhancement opportunity through 1Q25 ▪ Available for sale portfolio duration of 4.9 years at 9/30/2023 (duration including securities hedges) ▪ $6.75Bn of fair value hedges on CMBS and RMBS securities were executed in 3Q23 at a weighted average pay rate of 4.22% $11.5 $21.7 $13.7 2023** 2024 2025 (1)

 
24 Remaining maturity, as of September 30, 2023 $ in millions Agency Residential Collateralized Mortgage Obligations Agency Residential Mortgage- backed Securities Agency Commercial Mortgage- backed Securities Asset- backed Securities Other Total One year or less $ 12 $ - $ 5 $ 873 $ 5 $ 895 After 1 through 5 years 1,714 114 2,194 2 10 4,034 After 5 through 10 years 2,340 8 276 4 - 2,628 After 10 years 1,214 46 36 - - 1,296 Amortized Cost 5,280 168 2,511 879 15 8,853 Fair Value 4,832 145 2,217 836 14 8,044 Remaining maturity, as of September 30, 2023 $ in millions U.S. Treasury, Agencies, and Corporations Agency Residential Collateralized Mortgage Obligations Agency Residential Mortgage- backed Securities Agency Commercial Mortgage- backed Securities Total One year or less $ 5,224 $ 40 $ 1 $ 18 $ 5,283 After 1 through 5 years 3,596 1,538 2,239 2,106 9,479 After 5 through 10 years 111 8,556 802 5,495 14,964 After 10 years 100 4,526 443 1,044 6,113 Fair Value 9,031 14,660 3,485 8,663 35,839 Available for Sale (AFS) Held-to-Maturity (HTM) Securities Maturity Schedule

 
25 $ in millions (1) For the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, intangible assets exclude $1 million, $1 million, and $2 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus; (3) For the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, average intangible assets exclude $1 million, $1 million, and $2 million, respectively, of average purchased credit card receivables GAAP to Non-GAAP Reconciliation 9/30/2023 6/30/2023 9/30/2022 Tangible common equity to tangible assets at period end Key shareholders' equity (GAAP) 13,356$ 13,844$ 13,290$ Less: Intangible assets (1) 2,816$ 2,826 2,856 Preferred Stock (2) 2,446$ 2,446 2,446 Tangible common equity (non-GAAP) 8,094$ 8,572$ 7,988$ Total assets (GAAP) 187,851$ 195,037$ 190,051$ Less: Intangible assets (1) 2,816$ 2,826 2,856 Tangible assets (non-GAAP) 185,035$ 192,211$ 187,195$ Tangible common equity to tangible assets ratio (non-GAAP) 4.37% 4.46% 4.27% Average tangible common equity Average Key shareholders' equity (GAAP) 13,831$ 14,412$ 14,614$ Less: Intangible assets (average) (3) 2,821$ 2,831 2,863 Preferred Stock (average) 2,500$ 2,500 2,148 Average tangible common equity (non-GAAP) 8,510$ 9,081$ 9,603$ Three months ended

 
26 $ in millions GAAP to Non-GAAP Reconciliation 9/30/2023 6/30/2023 9/30/2022 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) 266$ 250$ 513$ Average tangible common equity (non-GAAP) 8,510 9,081 9,603 Return on average tangible common equity from continuing operations (non-GAAP) 12.40% 11.04% 21.19% Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) 267$ 251$ 515$ Average tangible common equity (non-GAAP) 8,510 9,081 9,603 Return on average tangible common equity consolidation (non-GAAP) 12.45% 11.09% 21.28% Cash efficiency ratio Noninterest expense (GAAP) 1,110$ 1,076$ 1,106$ Less: Intangible asset amortization 9 10 12 Adjusted noninterest expense (non-GAAP) 1,101$ 1,066$ 1,094$ Net interest income (GAAP) 915$ 978$ 1,196$ Plus: Taxable-equivalent adjustment 8 8 7 Noninterest income 643 609 683 Total taxable-equivalent revenue (non-GAAP) 1,566$ 1,595$ 1,886$ Cash eff iciency ratio (non-GAAP) 70.3% 66.8% 58.0% Three months ended

 
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
9/30/20236/30/20239/30/2022
Assets
Loans$115,544 $119,011 $116,191 
Loans held for sale 730 1,130 1,048 
Securities available for sale35,839 37,908 40,000 
Held-to-maturity securities8,853 9,189 8,163 
Trading account assets1,325 1,177 1,068 
Short-term investments7,871 8,959 4,896 
Other investments1,356 1,474 1,272 
Total earning assets171,518 178,848 172,638 
Allowance for loan and lease losses(1,488)(1,480)(1,144)
Cash and due from banks766 758 717 
Premises and equipment649 652 629 
Goodwill2,752 2,752 2,752 
Other intangible assets65 75 106 
Corporate-owned life insurance4,381 4,378 4,351 
Accrued income and other assets8,843 8,668 9,535 
Discontinued assets365 386 467 
Total assets$187,851 $195,037 $190,051 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits112,581 111,766 97,875 
Noninterest-bearing deposits31,710 33,366 46,980 
Total deposits144,291 145,132 144,855 
Federal funds purchased and securities sold under repurchase agreements 43 1,702 4,224 
Bank notes and other short-term borrowings3,470 6,949 4,576 
Accrued expense and other liabilities5,388 5,339 4,849 
Long-term debt21,303 22,071 18,257 
Total liabilities174,495 181,193 176,761 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,254 6,231 6,257 
Retained earnings15,835 15,759 15,450 
Treasury stock, at cost(5,851)(5,859)(5,917)
Accumulated other comprehensive income (loss)(6,639)(6,044)(6,257)
Key shareholders’ equity13,356 13,844 13,290 
Noncontrolling interests— — — 
Total equity13,356 13,844 13,290 
Total liabilities and equity$187,851 $195,037 $190,051 
Common shares outstanding (000)936,161 935,733 932,938 



Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months endedNine months ended
9/30/20236/30/20239/30/20229/30/20239/30/2022
Interest income
Loans$1,593 $1,576 $1,134 $4,645 $2,894 
Loans held for sale19 17 14 49 36 
Securities available for sale192 194 196 580 557 
Held-to-maturity securities79 81 55 234 149 
Trading account assets15 15 8 42 21 
Short-term investments123 111 32 276 49 
Other investments22 16 5 51 11 
Total interest income2,043 2,010 1,444 5,877 3,717 
Interest expense
Deposits687 531 59 1,568 93 
Federal funds purchased and securities sold under repurchase agreements9 48 19 79 25 
Bank notes and other short-term borrowings81 104 24 263 36 
Long-term debt351 349 146 975 256 
Total interest expense1,128 1,032 248 2,885 410 
Net interest income915 978 1,196 2,992 3,307 
Provision for credit losses81 167 109 387 237 
Net interest income after provision for credit losses834 811 1,087 2,605 3,070 
Noninterest income
Trust and investment services income130 126 127 384 400 
Investment banking and debt placement fees141 120 154 406 466 
Service charges on deposit accounts69 69 92 205 279 
Operating lease income and other leasing gains22 23 19 70 79 
Corporate services income73 86 96 235 283 
Cards and payments income90 85 91 256 256 
Corporate-owned life insurance income35 32 33 96 99 
Consumer mortgage income15 14 14 40 49 
Commercial mortgage servicing fees46 50 44 142 125 
Other income22 4 13 26 11 
Total noninterest income643 609 683 1,860 2,047 
Noninterest expense
Personnel663 622 655 1,986 1,892 
Net occupancy67 65 72 202 223 
Computer processing89 95 77 276 232 
Business services and professional fees38 41 47 124 152 
Equipment20 22 23 64 72 
Operating lease expense18 21 24 59 79 
Marketing28 29 30 78 92 
Intangible asset amortization— — — — — 
Other expense187 181 178 573 512 
Total noninterest expense1,110 1,076 1,106 3,362 3,254 
Income (loss) from continuing operations before income taxes367 344 664 1,103 1,863 
Income taxes65 58 124 204 346 
Income (loss) from continuing operations302 286 540 899 1,517 
Income (loss) from discontinued operations, net of taxes1 1 2 3 6 
Net income (loss)303 287 542 902 1,523 
Less: Net income (loss) attributable to noncontrolling interests— — — — — 
Net income (loss) attributable to Key$303 $287 $542 $902 $1,523 
Income (loss) from continuing operations attributable to Key common shareholders$266 $250 $513 $791 $1,437 
Net income (loss) attributable to Key common shareholders267 251 515 794 1,443 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.29 $.27 $.55 $.85 $1.55 
Income (loss) from discontinued operations, net of taxes— — — — .01 
Net income (loss) attributable to Key common shareholders (a)
.29 .27 .55 .86 1.56 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.29 $.27 $.55 $.85 $1.54 
Income (loss) from discontinued operations, net of taxes— — — — .01 
Net income (loss) attributable to Key common shareholders (a)
.29 .27 $.55 .85 1.55 
Cash dividends declared per common share$.205 $.205 $.195 $.615 $.585 
Weighted-average common shares outstanding (000)927,131 926,741 924,594 927,019 924,085 
Effect of common share options and other stock awards4,613 3,713 7,861 5,213 8,679 
Weighted-average common shares and potential common shares outstanding (000) (b)
931,744 930,454 932,455 932,232 932,764 
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.