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8-K

Keycorp /New/ (KEY)

8-K 2021-10-21 For: 2021-10-21
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Added on April 10, 2026

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): October 21, 2021

KeyCorp

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(Exact name of registrant as specified in its charter)

Ohio 001-11302 34-6542451
State or other jurisdiction of incorporation or organization: Commission File Number I.R.S. Employer Identification Number: 127 Public Square, Cleveland, Ohio 44114-1306
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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 class Trading Symbol(s) Name of each exchange on which registered
Common Shares, $1 par value KEY New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E) KEY PrI New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F) KEY PrJ New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G) KEY PrK New York Stock Exchange

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 21, 2021, KeyCorp issued a press release announcing its financial results for the three- and nine-month period ended September 30, 2021 (the “Press Release”), and posted on its website its third quarter 2021 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 21, 2021, announcing financial results for the three- and nine-month period ended September 30, 2021

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 21, 2021 /s/ Douglas M. Schosser
By: Douglas M. Schosser
Chief Accounting Officer

Document

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KEYCORP REPORTS THIRD QUARTER 2021 NET INCOME OF $616 MILLION,

OR $.65 PER DILUTED COMMON SHARE

Positive operating leverage compared to the year-ago period

Record third quarter revenue, up 8% from the year-ago period

Record third quarter noninterest income, up 17% from the year-ago period

Strong credit quality: net charge-offs to average loans of 11 basis points

Entered into accelerated share repurchase program: aided by capital relief from sale of

indirect auto loan portfolio

CLEVELAND, October 21, 2021 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $616 million, or $.65 per diluted common share for the third quarter of 2021. This compared to $698 million, or $.72 per diluted common share, for the second quarter of 2021 and $397 million, or $.41 per diluted common share, for the third quarter of 2020.

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KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

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Selected Financial Highlights
dollars in millions, except per share data Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Income (loss) from continuing operations attributable to Key common shareholders $ 616 $ 698 $ 397 (11.7) % 55.2 %
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution .65 .72 .41 (9.7) 58.5
Return on average tangible common equity from continuing operations (a) 18.55 % 21.34 % 12.19 % N/A N/A
Return on average total assets from continuing operations 1.41 1.63 1.00 N/A N/A
Common Equity Tier 1 ratio (b) 9.6 9.9 9.5 N/A N/A
Book value at period end $ 16.82 $ 16.75 $ 16.25 .4 % 3.5 %
Net interest margin (TE) from continuing operations 2.47 % 2.52 % 2.62 % N/A N/A

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

(b)September 30, 2021 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Net interest income (TE) $ 1,025 $ 1,023 $ 1,006 .2 % 1.9 %
Noninterest income 797 750 681 6.3 17.0
Total revenue $ 1,822 $ 1,773 $ 1,687 2.8 % 8.0 %

TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.0 billion for the third quarter of 2021, an increase of $19 million from the third quarter of 2020. The increase in net interest income reflects higher earning asset balances and lower interest-bearing deposit costs, partially offset by a lower net interest margin. The net interest margin was impacted by lower interest rates and a change in balance sheet mix, including elevated levels of liquidity, partly offset by higher loan fees from the Paycheck Protection Program ("PPP") forgiveness.

Compared to the second quarter of 2021, taxable-equivalent net interest income increased by $2 million, and the net interest margin decreased by 5 basis points. Both net interest income and the net interest margin were impacted by higher earning asset balances, including elevated levels of liquidity, partially offset by lower earning asset yields. Net interest income also benefited from one additional business day in the third quarter of 2021.

Noninterest Income
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Trust and investment services income $ 129 $ 133 $ 128 (3.0) % .8 %
Investment banking and debt placement fees 235 217 146 8.3 61.0
Service charges on deposit accounts 91 83 77 9.6 18.2
Operating lease income and other leasing gains 37 36 38 2.8 (2.6)
Corporate services income 69 55 51 25.5 35.3
Cards and payments income 111 113 114 (1.8) (2.6)
Corporate-owned life insurance income 33 30 30 10.0 10.0
Consumer mortgage income 33 26 51 26.9 (35.3)
Commercial mortgage servicing fees 34 44 18 (22.7) 88.9
Other income 25 13 28 92.3 (10.7)
Total noninterest income $ 797 $ 750 $ 681 6.3 % 17.0 %

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 3

Compared to the third quarter of 2020, noninterest income increased by $116 million, primarily driven by an $89 million increase in investment banking and debt placement fees, driven by higher volumes in equity underwriting and advisory transactions. Corporate services income and commercial mortgage servicing fees increased $18 million and $16 million, respectively. Partially offsetting these increases was consumer mortgage income, which decreased $18 million, due to lower gain on sale margins.

Compared to the second quarter of 2021, noninterest income increased by $47 million, reflecting broad-based growth in our fee-based businesses. Notable drivers of the quarter-over-quarter increase were investment banking and debt placement fees and corporate services income, which increased $18 million and $14 million, respectively. Partially offsetting these increases was a $10 million decrease in commercial mortgage servicing fees, reflecting lower activity-related fees.

Noninterest Expense
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Personnel expense $ 640 $ 623 $ 588 2.7 % 8.8 %
Nonpersonnel expense 472 453 449 4.2 5.1
Total noninterest expense $ 1,112 $ 1,076 $ 1,037 3.3 % 7.2 %

Key’s noninterest expense was $1.1 billion for the third quarter of 2021, an increase of $75 million from the year-ago period. The increase is primarily related to higher personnel costs of $52 million, reflecting higher incentive and stock-based compensation, attributed to an increase in fee production and Key's increased stock price. Additionally, other drivers for the year-over-year increase include higher business services and professional fees and marketing expense.

Compared to the second quarter of 2021, noninterest expense increased $36 million. The increase is primarily related to other expense, which is up $18 million reflecting elevated charitable contributions and a pension settlement charge. Additionally, personnel expense increased $17 million, mostly driven by an $8 million increase in employee benefits and a $7 million increase in salaries and contract labor due to one additional day in the quarter.

BALANCE SHEET HIGHLIGHTS
Average Loans
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Commercial and industrial (a) $ 49,868 $ 51,808 $ 57,067 (3.7) % (12.6) %
Other commercial loans 19,362 19,034 19,677 1.7 (1.6)
Total consumer loans 30,908 29,972 28,175 3.1 9.7
Total loans $ 100,138 $ 100,814 $ 104,919 (.7) % (4.6) %

(a)Commercial and industrial average loan balances include $137 million, $132 million, and $129 million of assets from commercial credit cards at September 30, 2021, June 30, 2021, and September 30, 2020, respectively.

Average loans were $100.1 billion for the third quarter of 2021, a decrease of $4.8 billion compared to the third quarter of 2020. Commercial loans decreased $7.5 billion, reflecting decreased utilization versus the year-ago period and a decline in PPP balances. Consumer loans increased $2.7 billion, reflecting strength from Key's consumer mortgage business and Laurel Road, partly offset by the sale of the indirect auto loan portfolio.

Compared to the second quarter of 2021, average loans decreased by $676 million. Commercial loans decreased $1.6 billion, driven by a $3.3 billion decline in PPP loan balances, partially offset by core portfolio growth in commercial and industrial loans and commercial real estate loans. Consumer loans continue to reflect strength from Key's consumer mortgage business, partly offset by the sale of the indirect auto loan portfolio, which reduced average loans by $763 million.

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

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Average Deposits
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Non-time deposits $ 142,537 $ 139,480 $ 127,347 2.2 % 11.9 %
Certificates of deposit ($100,000 or more) 1,975 2,212 3,862 (10.7) (48.9)
Other time deposits 2,404 2,630 3,735 (8.6) (35.6)
Total deposits $ 146,916 $ 144,322 $ 134,944 1.8 % 8.9 %
Cost of total deposits .04 % .05 % .16 % N/A N/A

N/A = Not Applicable

Average deposits totaled $146.9 billion for the third quarter of 2021, an increase of $12.0 billion compared to the year-ago quarter, reflecting growth from consumer and commercial relationships, including higher commercial escrow deposits, partially offset by a decline in time deposits.

Compared to the second quarter of 2021, average deposits increased by $2.6 billion, primarily driven by commercial growth.

ASSET QUALITY
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Net loan charge-offs $ 29 $ 22 $ 128 31.8 % (77.3) %
Net loan charge-offs to average total loans .11 % .09 % .49 % N/A N/A
Nonperforming loans at period end $ 554 $ 694 $ 834 (20.2) (33.6)
Nonperforming assets at period end 599 738 1,003 (18.8) (40.3)
Allowance for loan and lease losses 1,084 1,220 1,730 (11.1) (37.3)
Allowance for credit losses 1,236 1,372 1,938 (9.9) (36.2)
Allowance for loan and lease losses to nonperforming loans 195.7 % 175.8 % 207.4 % N/A N/A
Allowance for credit losses to nonperforming loans 223.1 197.7 232.4 N/A N/A
Provision for credit losses $ (107) $ (222) $ 160 (51.8) % (166.9) %

N/A = Not Applicable

Key's provision for credit losses was a net benefit of $107 million, including a $136 million reserve release for the third quarter of 2021, compared to an expense of $160 million in the third quarter of 2020 and a net benefit of $222 million in the second quarter of 2021. The reserve release was largely driven by a continued improvement in the economic outlook.

Net loan charge-offs for the third quarter of 2021 totaled $29 million, or .11% of average total loans. These results compare to $128 million, or .49%, for the third quarter of 2020 and $22 million, or .09%, for the second quarter of 2021. Net charge-offs in the current quarter included $22 million related to the sale of the indirect auto loan portfolio. Key’s allowance for credit losses was $1.2 billion, or 1.25% of total period-end loans at September 30, 2021, compared to 1.88% at September 30, 2020, and 1.36% at June 30, 2021.

At September 30, 2021, Key’s nonperforming loans totaled $554 million, which represented .56% of period-end portfolio loans. These results compare to .81% at September 30, 2020, and .69% at June 30, 2021. Nonperforming assets at September 30, 2021, totaled $599 million, and represented .61% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to .97% at September 30, 2020, and .73% at June 30, 2021.

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 5

CAPITAL

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2021. On September 10, Key entered into an accelerated share repurchase program.

Capital Ratios
9/30/2021 6/30/2021 9/30/2020
Common Equity Tier 1 (a) 9.6 % 9.9 % 9.5 %
Tier 1 risk-based capital (a) 10.9 11.3 10.9
Total risk based capital (a) 12.7 13.2 13.3
Tangible common equity to tangible assets (b) 7.0 7.4 7.8
Leverage (a) 8.4 8.7 8.7

(a)September 30, 2021 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 2021. As shown in the preceding table, at September 30, 2021, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.6% and 10.9%, respectively. Key's tangible common equity ratio was 7.0% at September 30, 2021.

Key has elected the CECL phase-in option provided by regulatory guidance which delays for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by 20 basis points.

Summary of Changes in Common Shares Outstanding
in thousands Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Shares outstanding at beginning of period 960,276 972,587 975,947 (1.3) % (1.6) %
Open market repurchases, repurchases under the accelerated repurchase program, and return of shares under employee compensation plans (29,923) (13,304) (1) 124.9 N/M
Shares issued under employee compensation plans (net of cancellations) 191 993 259 (80.8) (26.3)
Shares outstanding at end of period 930,544 960,276 976,205 (3.1) % (4.7) %

N/M = Not Meaningful

During the third quarter of 2021, Key declared a dividend of $.185 per common share and completed $593 million of common share repurchases. Of the $593 million total common shares repurchased in the third quarter of 2021, $468 million were related to the initial settlement of the accelerated share repurchase program and $125 million were purchased in the open market.

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 2021 Profit

October 21, 2021

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Major Business Segments
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Revenue from continuing operations (TE)
Consumer Bank $ 870 $ 852 $ 864 2.1 % .7 %
Commercial Bank 891 873 811 2.1 9.9
Other (a) 61 48 12 27.1 N/M
Total $ 1,822 $ 1,773 $ 1,687 2.8 % 8.0 %
Income (loss) from continuing operations attributable to Key
Consumer Bank $ 241 $ 257 $ 229 (6.2) % 5.2 %
Commercial Bank 384 433 173 (11.3) 122.0
Other (a) 18 34 22 (47.1) (18.2)
Total $ 643 $ 724 $ 424 (11.2) % 51.7 %

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

TE = Taxable Equivalent, N/M = Not Meaningful

Consumer Bank
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Summary of operations
Net interest income (TE) $ 582 $ 599 $ 598 (2.8) % (2.7) %
Noninterest income 288 253 266 13.8 8.3
Total revenue (TE) 870 852 864 2.1 .7
Provision for credit losses (38) (70) (3) 45.7 N/M
Noninterest expense 591 584 567 1.2 4.2
Income (loss) before income taxes (TE) 317 338 300 (6.2) 5.7
Allocated income taxes (benefit) and TE adjustments 76 81 71 (6.2) 7.0
Net income (loss) attributable to Key $ 241 $ 257 $ 229 (6.2) % 5.2 %
Average balances
Loans and leases $ 39,796 $ 40,598 $ 38,354 (2.0) % 3.8 %
Total assets 42,981 43,818 43,304 (1.9) (.7)
Deposits 89,156 88,412 82,829 .8 7.6
Assets under management at period end $ 52,867 $ 51,013 $ 43,949 3.6 % 20.3 %

TE = Taxable Equivalent

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

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Additional Consumer Bank Data
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Noninterest income
Trust and investment services income $ 105 $ 104 $ 100 1.0 % 5.0 %
Service charges on deposit accounts 56 48 44 16.7 27.3
Cards and payments income 62 62 55 — 12.7
Consumer mortgage income 33 26 51 26.9 (35.3)
Other noninterest income 32 13 16 146.2 100.0
Total noninterest income $ 288 $ 253 $ 266 13.8 % 8.3 %
Average deposit balances
NOW and money market deposit accounts $ 56,353 $ 56,038 $ 52,539 .6 % 7.3 %
Savings deposits 6,749 6,523 5,168 3.5 30.6
Certificates of deposit ($100,000 or more) 1,846 2,083 3,550 (11.4) (48.0)
Other time deposits 2,398 2,616 3,701 (8.3) (35.2)
Noninterest-bearing deposits 21,810 21,152 17,872 3.1 22.0
Total deposits $ 89,156 $ 88,412 $ 82,830 .8 % 7.6 %
Other data
Branches 1,000 1,014 1,077
Automated teller machines 1,316 1,329 1,388

Consumer Bank Summary of Operations (3Q21 vs. 3Q20)

•Net income attributable to Key of $241 million for the third quarter of 2021, compared to $229 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $16 million, compared to the third quarter of 2020, driven by the lower interest rate environment, partially offset by strong consumer mortgage balance sheet growth and fees related to PPP loans

•Average loans and leases increased $1.4 billion, or 3.8%, from the third quarter of 2020, driven by growth in consumer mortgage, partially offset by the sale of the indirect auto loan portfolio

•Average deposits increased $6.3 billion, or 7.6%, from the third quarter of 2020, driven by retention of consumer stimulus payments and relationship growth

•Provision for credit losses decreased $35 million, compared to the third quarter of 2020. The provision for credit losses was a net benefit and was driven by improvements in expected economic conditions and continued strength in client credit quality

•Noninterest income increased $22 million, or 8.3%, from the year ago quarter, driven by higher service charges on deposit accounts and cards and payments income, partially offset by lower consumer mortgage income, due to lower gain on sale margins

•Noninterest expense increased $24 million, or 4.2%, from the year ago quarter, driven by higher production-related incentives and support expenses related to higher loan volumes

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 8

Commercial Bank
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Summary of operations
Net interest income (TE) $ 414 $ 418 $ 427 (1.0) % (3.0) %
Noninterest income 477 455 384 4.8 24.2
Total revenue (TE) 891 873 811 2.1 9.9
Provision for credit losses (69) (131) 150 (47.3) (146.0)
Noninterest expense 470 451 447 4.2 5.1
Income (loss) before income taxes (TE) 490 553 214 (11.4) 129.0
Allocated income taxes and TE adjustments 106 120 41 (11.7) 158.5
Net income (loss) attributable to Key $ 384 $ 433 $ 173 (11.3) % 122.0 %
Average balances
Loans and leases $ 59,914 $ 59,953 $ 66,378 (.1) % (9.7) %
Loans held for sale 1,190 1,341 1,383 (11.3) (14.0)
Total assets 69,285 69,101 74,530 0.3 (7.0)
Deposits 56,546 54,814 51,585 3.2 % 9.6 %

TE = Taxable Equivalent, N/M = Not Meaningful

Additional Commercial Bank Data
dollars in millions Change 3Q21 vs.
3Q21 2Q21 3Q20 2Q21 3Q20
Noninterest income
Trust and investment services income $ 24 $ 27 $ 28 (11.1) % (14.3)
Investment banking and debt placement fees 234 215 146 8.8 60.3 %
Operating lease income and other leasing gains 37 35 38 5.7 (2.6)
Corporate services income 63 47 44 34.0 43.2
Service charges on deposit accounts 34 34 33 — 3.0
Cards and payments income 44 49 60 (10.2) (26.7)
Payments and services income 141 130 137 8.5 2.9
Commercial mortgage servicing fees 34 44 18 (22.7) 88.9
Other noninterest income 7 4 17 75.0 (58.8)
Total noninterest income $ 477 $ 455 $ 384 4.8 % 24.2 %

N/M = Not Meaningful

Commercial Bank Summary of Operations (3Q21 vs. 3Q20)

•Net income attributable to Key of $384 million for the third quarter of 2021, compared to $173 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $13 million, compared to the third quarter of 2020, as lower average loan balances offset fees related to PPP loans

•Average loan and lease balances decreased $6.5 billion, compared to the third quarter of 2020, driven by lower commercial and industrial line draws and PPP loan forgiveness

•Average deposit balances increased $5.0 billion, or 9.6%, compared to the third quarter of 2020, driven by growth in targeted relationships and the impact of government programs

•Provision for credit losses decreased $219 million, compared to the third quarter of 2020. The provision for credit losses was a net benefit and was driven by expected improvements in economic conditions

•Noninterest income increased $93 million, from the year-ago quarter, driven by elevated investment banking client activity and commercial mortgage servicing fees, partially offset by lower cards and payments income as individuals roll off unemployment benefits

•Noninterest expense increased by $23 million, or 5.1%, from the third quarter of 2020, driven by higher production-related incentives related to strong revenue production

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 9

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

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $187.0 billion at September 30, 2021.

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 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 2021 Profit

October 21, 2021

Page 10

CONTACTS:
ANALYSTS MEDIA
Vernon L. Patterson Susan Donlan
216.689.0520 216.471.3133
Vernon_Patterson@KeyBank.com Susan_E_Donlan@KeyBank.com
Melanie S. Kaiser Tracy Pesho
216.689.4545 216.471.2825
Melanie_S_Kaiser@KeyBank.com Tracy_Pesho@KeyBank.com
Halle A. Nichols Twitter: @keybank
216.471.2184
Halle_A_Nichols@KeyBank.com
INVESTOR RELATIONS: KEY MEDIA NEWSROOM:
www.key.com/ir www.key.com/newsroom
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key’s actual results to differ from those described in the forward-looking statements can be found in KeyCorp’s Form 10-K for the year ended December 31, 2020, as well as in KeyCorp’s subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, and the impact of the COVID-19 global pandemic on us, our clients, our third-party service providers, and the markets. 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.
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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 21, 2021. A replay of the call will be available through October 30, 2021.

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 2021 Profit

October 21, 2021

Page 11

KeyCorp

Third Quarter 2021

Financial Supplement

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

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 12

Financial Highlights
(dollars in millions, except per share amounts)
Three months ended
9/30/2021 6/30/2021 9/30/2020
Summary of operations
Net interest income (TE) $ 1,025 $ 1,023 $ 1,006
Noninterest income 797 750 681
Total revenue (TE) 1,822 1,773 1,687
Provision for credit losses (107) (222) 160
Noninterest expense 1,112 1,076 1,037
Income (loss) from continuing operations attributable to Key 643 724 424
Income (loss) from discontinued operations, net of taxes 2 5 4
Net income (loss) attributable to Key 645 729 428
Income (loss) from continuing operations attributable to Key common shareholders 616 698 397
Income (loss) from discontinued operations, net of taxes 2 5 4
Net income (loss) attributable to Key common shareholders 618 703 401
Per common share
Income (loss) from continuing operations attributable to Key common shareholders $ .65 $ .73 $ .41
Income (loss) from discontinued operations, net of taxes — — —
Net income (loss) attributable to Key common shareholders (a) .66 .73 .41
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution .65 .72 .41
Income (loss) from discontinued operations, net of taxes — assuming dilution — — —
Net income (loss) attributable to Key common shareholders — assuming dilution (a) .65 .73 .41
Cash dividends declared .185 .185 .185
Book value at period end 16.82 16.75 16.25
Tangible book value at period end 13.80 13.81 13.32
Market price at period end 21.62 20.65 11.93
Performance ratios
From continuing operations:
Return on average total assets 1.41 % 1.63 % 1.00 %
Return on average common equity 15.28 % 17.54 9.98
Return on average tangible common equity (b) 18.55 21.34 12.19
Net interest margin (TE) 2.47 2.52 2.62
Cash efficiency ratio (b) 60.2 59.9 60.6
From consolidated operations:
Return on average total assets 1.41 1.64 % 1.00 %
Return on average common equity 15.33 17.67 10.08
Return on average tangible common equity (b) 18.61 21.49 12.31
Net interest margin (TE) 2.46 2.55 2.62
Loan to deposit (c) 66.5 70.4 77.2
Capital ratios at period end
Key shareholders’ equity to assets 9.4 % 9.9 % 10.4 %
Key common shareholders’ equity to assets 8.4 8.9 9.3
Tangible common equity to tangible assets (b) 7.0 7.4 7.8
Common Equity Tier 1 (d) 9.6 9.9 9.5
Tier 1 risk-based capital (d) 10.9 11.3 10.9
Total risk-based capital (d) 12.7 13.2 13.3
Leverage (d) 8.4 8.7 8.7
Asset quality — from continuing operations
Net loan charge-offs $ 29 $ 22 $ 128
Net loan charge-offs to average loans .11 % .09 % .49 %
Allowance for loan and lease losses $ 1,084 $ 1,220 $ 1,730
Allowance for credit losses 1,236 1,372 1,938
Allowance for loan and lease losses to period-end loans 1.10 % 1.21 % 1.68 %
Allowance for credit losses to period-end loans 1.25 1.36 1.88
Allowance for loan and lease losses to nonperforming loans 195.7 175.8 207.4
Allowance for credit losses to nonperforming loans 223.1 197.7 232.4
Nonperforming loans at period-end $ 554 $ 694 $ 834
Nonperforming assets at period-end 599 738 1,003
Nonperforming loans to period-end portfolio loans .56 % .69 % .81 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets .61 .73 .97
Trust assets
Assets under management $ 52,867 $ 51,013 $ 43,949
Other data
Average full-time equivalent employees 17,009 17,003 17,097
Branches 1,000 1,014 1,077
Taxable-equivalent adjustment $ 9 $ 6 $ 6

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 13

Financial Highlights (continued)
(dollars in millions, except per share amounts)
Nine months ended
9/30/2021 9/30/2020
Summary of operations
Net interest income (TE) $ 3,060 $ 3,020
Noninterest income 2,285 1,850
Total revenue (TE) 5,345 4,870
Provision for credit losses (422) 1,001
Noninterest expense 3,259 2,981
Income (loss) from continuing operations attributable to Key 1,985 754
Income (loss) from discontinued operations, net of taxes 11 7
Net income (loss) attributable to Key 1,996 761
Income (loss) from continuing operations attributable to Key common shareholders 1,905 674
Income (loss) from discontinued operations, net of taxes 11 7
Net income (loss) attributable to Key common shareholders 1,916 681
Per common share
Income (loss) from continuing operations attributable to Key common shareholders $ 1.99 $ .70
Income (loss) from discontinued operations, net of taxes .01 .01
Net income (loss) attributable to Key common shareholders (a) 2.00 .70
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution 1.98 .69
Income (loss) from discontinued operations, net of taxes — assuming dilution .01 .01
Net income (loss) attributable to Key common shareholders — assuming dilution (a) 1.99 .70
Cash dividends paid .56 .56
Performance ratios
From continuing operations:
Return on average total assets 1.50 % .63 %
Return on average common equity 15.98 5.75
Return on average tangible common equity (b) 19.43 7.06
Net interest margin (TE) 2.53 2.78
Cash efficiency ratio (b) 60.1 60.2
From consolidated operations:
Return on average total assets 1.50 % .63 %
Return on average common equity 16.07 5.81
Return on average tangible common equity (b) 19.54 7.13
Net interest margin (TE) 2.52 2.78
Asset quality — from continuing operations
Net loan charge-offs $ 165 $ 308
Net loan charge-offs to average total loans .22 % .40 %
Other data
Average full-time equivalent employees 17,034 16,758
Taxable-equivalent adjustment 22 21

(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, 2021, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 14

GAAP to Non-GAAP Reconciliations

(dollars in millions)

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

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

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

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

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

Three months ended Nine months ended
9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP) $ 17,510 $ 17,941 $ 17,722
Less: Intangible assets (a) 2,814 2,828 2,862
Preferred Stock (b) 1,856 1,856 1,856
Tangible common equity (non-GAAP) $ 12,840 $ 13,257 $ 13,004
Total assets (GAAP) $ 187,035 $ 181,115 $ 170,540
Less: Intangible assets (a) 2,814 2,828 2,862
Tangible assets (non-GAAP) $ 184,221 $ 178,287 $ 167,678
Tangible common equity to tangible assets ratio (non-GAAP) 6.97 % 7.44 % 7.76 %
Pre-provision net revenue
Net interest income (GAAP) $ 1,016 $ 1,017 $ 1,000 $ 3,038 $ 2,999
Plus: Taxable-equivalent adjustment 9 6 6 22 21
Noninterest income 797 750 681 2,285 1,850
Less: Noninterest expense 1,112 1,076 1,037 3,259 2,981
Pre-provision net revenue from continuing operations (non-GAAP) $ 710 $ 697 $ 650 $ 2,086 $ 1,889
Average tangible common equity
Average Key shareholders' equity (GAAP) $ 17,899 $ 17,859 $ 17,730 $ 17,843 $ 17,545
Less: Intangible assets (average) (c) 2,823 2,840 2,870 2,834 2,886
Preferred stock (average) 1,900 1,900 1,900 1,900 1,900
Average tangible common equity (non-GAAP) $ 13,176 $ 13,119 $ 12,960 $ 13,109 $ 12,759
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ 616 $ 698 $ 397 $ 1,905 $ 674
Average tangible common equity (non-GAAP) 13,176 13,119 12,960 13,109 12,759
Return on average tangible common equity from continuing operations (non-GAAP) 18.55 % 21.34 % 12.19 % 19.43 % 7.06 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP) $ 618 $ 703 $ 401 $ 1,916 $ 681
Average tangible common equity (non-GAAP) 13,176 13,119 12,960 13,109 12,759
Return on average tangible common equity consolidated (non-GAAP) 18.61 % 21.49 % 12.31 % 19.54 % 7.13 %

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 15

GAAP to Non-GAAP Reconciliations (continued)
(dollars in millions)
Three months ended Nine months ended
9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020
Cash efficiency ratio
Noninterest expense (GAAP) $ 1,112 $ 1,076 $ 1,037 $ 3,259 $ 2,981
Less: Intangible asset amortization 15 14 15 44 50
Adjusted noninterest expense (non-GAAP) $ 1,097 $ 1,062 $ 1,022 $ 3,215 $ 2,931
Net interest income (GAAP) $ 1,016 $ 1,017 $ 1,000 $ 3,038 $ 2,999
Plus: Taxable-equivalent adjustment 9 6 6 22 21
Noninterest income 797 750 681 2,285 1,850
Total taxable-equivalent revenue (non-GAAP) $ 1,822 $ 1,773 $ 1,687 $ 5,345 $ 4,870
Cash efficiency ratio (non-GAAP) 60.2 % 59.9 % 60.6 % 60.1 % 60.2 %

(a)For the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, intangible assets exclude $3 million, $4 million, and $5 million, respectively, of period-end purchased credit card receivables.

(b)Net of capital surplus.

(c)For the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, average intangible assets exclude $3 million, $4 million, and $5 million, respectively, of average purchased credit card receivables. For the nine months ended September 30, 2021, and September 30, 2020, average intangible assets exclude $4 million and $6 million, respectively, of average purchased credit card receivables

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 16

Consolidated Balance Sheets
(dollars in millions)
9/30/2021 6/30/2021 9/30/2020
Assets
Loans $ 98,609 $ 100,730 $ 103,081
Loans held for sale 1,805 1,537 1,724
Securities available for sale 40,594 34,638 26,895
Held-to-maturity securities 8,423 6,175 8,384
Trading account assets 902 851 733
Short-term investments 19,608 20,460 14,148
Other investments 607 635 620
Total earning assets 170,548 165,026 155,585
Allowance for loan and lease losses (1,084) (1,220) (1,730)
Cash and due from banks 763 792 956
Premises and equipment 678 785 765
Goodwill 2,673 2,673 2,664
Other intangible assets 144 159 203
Corporate-owned life insurance 4,312 4,304 4,274
Accrued income and other assets 8,404 7,966 7,084
Discontinued assets 597 630 739
Total assets $ 187,035 181,115 170,540
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts $ 87,242 $ 85,242 $ 80,791
Savings deposits 7,259 6,993 5,585
Certificates of deposit ($100,000 or more) 1,890 2,064 3,345
Other time deposits 2,315 2,493 3,450
Total interest-bearing deposits 98,706 96,792 93,171
Noninterest-bearing deposits 53,225 49,280 43,575
Total deposits 151,931 146,072 136,746
Federal funds purchased and securities sold under repurchase agreements 228 211 213
Bank notes and other short-term borrowings 767 723 818
Accrued expense and other liabilities 3,434 2,957 2,356
Long-term debt 13,165 13,211 12,685
Total liabilities 169,525 163,174 152,818
Equity
Preferred stock 1,900 1,900 1,900
Common shares 1,257 1,257 1,257
Capital surplus 6,141 6,232 6,263
Retained earnings 14,133 13,689 12,375
Treasury stock, at cost (5,876) (5,287) (4,940)
Accumulated other comprehensive income (loss) (45) 150 867
Key shareholders’ equity 17,510 17,941 17,722
Noncontrolling interests — — —
Total equity 17,510 17,941 17,722
Total liabilities and equity $ 187,035 $ 181,115 $ 170,540
Common shares outstanding (000) 930,544 960,276 976,205

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 17

Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months ended Nine months ended
9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020
Interest income
Loans $ 882 $ 888 $ 927 $ 2,659 $ 2,933
Loans held for sale 13 11 18 35 58
Securities available for sale 135 133 115 398 365
Held-to-maturity securities 43 45 53 133 171
Trading account assets 4 5 3 14 16
Short-term investments 9 6 1 20 14
Other investments 1 2 2 5 3
Total interest income 1,087 1,090 1,119 3,264 3,560
Interest expense
Deposits 15 16 54 52 319
Federal funds purchased and securities sold under repurchase agreements — — — — 6
Bank notes and other short-term borrowings 2 3 1 6 11
Long-term debt 54 54 64 168 225
Total interest expense 71 73 119 226 561
Net interest income 1,016 1,017 1,000 3,038 2,999
Provision for credit losses (107) (222) 160 (422) 1,001
Net interest income after provision for credit losses 1,123 1,239 840 3,460 1,998
Noninterest income
Trust and investment services income 129 133 128 395 384
Investment banking and debt placement fees 235 217 146 614 418
Service charges on deposit accounts 91 83 77 247 229
Operating lease income and other leasing gains 37 36 38 111 128
Corporate services income 69 55 51 188 165
Cards and payments income 111 113 114 329 271
Corporate-owned life insurance income 33 30 30 94 101
Consumer mortgage income 33 26 51 106 133
Commercial mortgage servicing fees 34 44 18 112 48
Other income 25 13 28 89 (27)
Total noninterest income 797 750 681 2,285 1,850
Noninterest expense
Personnel 640 623 588 1,887 1,675
Net occupancy 74 75 76 225 223
Computer processing 67 71 59 211 170
Business services and professional fees 56 51 49 157 142
Equipment 25 25 25 75 74
Operating lease expense 30 31 33 95 103
Marketing 32 31 22 89 67
Intangible asset amortization 15 14 15 44 50
Other expense 173 155 170 476 477
Total noninterest expense 1,112 1,076 1,037 3,259 2,981
Income (loss) from continuing operations before income taxes 808 913 484 2,486 867
Income taxes 165 189 60 501 113
Income (loss) from continuing operations 643 724 424 1,985 754
Income (loss) from discontinued operations, net of taxes 2 5 4 11 7
Net income (loss) 645 729 428 1,996 761
Less: Net income (loss) attributable to noncontrolling interests — — — — —
Net income (loss) attributable to Key $ 645 $ 729 $ 428 $ 1,996 $ 761
Income (loss) from continuing operations attributable to Key common shareholders $ 616 $ 698 $ 397 $ 1,905 $ 674
Net income (loss) attributable to Key common shareholders 618 703 401 1,916 681
Per common share
Income (loss) from continuing operations attributable to Key common shareholders $ .65 $ .73 $ .41 $ 1.99 $ .70
Income (loss) from discontinued operations, net of taxes — — — .01 .01
Net income (loss) attributable to Key common shareholders (a) .66 .73 .41 2.00 .70
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders $ .65 $ .72 $ .41 $ 1.98 $ .69
Income (loss) from discontinued operations, net of taxes — — — .01 .01
Net income (loss) attributable to Key common shareholders (a) .65 .73 .41 1.99 .70
Cash dividends declared per common share $ .185 $ .185 $ .185 $ .555 $ .555
Weighted-average common shares outstanding (000) 942,446 957,423 967,804 955,069 967,632
Effect of common share options and other stock awards 10,077 9,740 6,184 9,712 6,648
Weighted-average common shares and potential common shares outstanding (000) (b) 952,523 967,163 973,988 964,781 974,280

(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 2021 Profit

October 21, 2021

Page 18

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)
Third Quarter 2021 Second Quarter 2021 Third Quarter 2020
Average Yield/ Average Yield/ Average Yield/
Balance Interest (a) Rate (a) Balance Interest (a) Rate (a) Balance Interest (a) Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d) $ 49,868 $ 445 3.54 $ 51,808 $ 450 3.48 $ 57,067 $ 474 3.31
Real estate — commercial mortgage 13,306 120 3.56 12,825 117 3.67 13,202 117 3.54
Real estate — construction 2,134 19 3.53 2,149 20 3.68 1,987 18 3.57
Commercial lease financing 3,922 27 2.80 4,060 30 2.98 4,488 35 3.10
Total commercial loans 69,230 611 3.50 70,842 617 3.49 76,744 644 3.34
Real estate — residential mortgage 13,168 92 2.78 11,055 81 2.92 8,398 73 3.46
Home equity loans 8,894 84 3.75 9,089 85 3.76 9,580 91 3.82
Consumer direct loans 5,175 59 4.55 4,910 57 4.69 4,403 56 5.07
Credit cards 917 23 10.07 908 22 9.79 967 25 10.24
Consumer indirect loans 2,754 22 3.15 4,010 32 3.19 4,827 44 3.66
Total consumer loans 30,908 280 3.60 29,972 277 3.71 28,175 289 4.10
Total loans 100,138 891 3.53 100,814 894 3.56 104,919 933 3.55
Loans held for sale 1,447 13 3.66 1,616 11 2.60 1,924 18 3.61
Securities available for sale (b), (e) 36,923 135 1.48 33,623 133 1.57 24,941 115 1.90
Held-to-maturity securities (b) 6,507 43 2.66 6,452 45 2.75 8,677 53 2.44
Trading account assets 743 4 2.19 837 5 2.56 686 3 2.08
Short-term investments 19,274 9 .18 18,817 6 .13 12,525 1 .04
Other investments (e) 614 1 .99 622 2 1.02 640 2 1.49
Total earning assets 165,646 1,096 2.64 162,781 1,096 2.70 154,312 1,125 2.93
Allowance for loan and lease losses (1,222) (1,442) (1,696)
Accrued income and other assets 16,947 16,531 16,195
Discontinued assets 618 650 752
Total assets $ 181,989 $ 178,520 $ 169,563
Liabilities
NOW and money market deposit accounts $ 85,333 $ 10 .05 $ 83,981 $ 9 .05 $ 80,175 $ 26 .13
Savings deposits 7,117 — .01 6,859 1 .03 5,478 1 .04
Certificates of deposit ($100,000 or more) 1,975 3 .59 2,212 4 .72 3,862 16 1.60
Other time deposits 2,404 2 .26 2,630 2 .38 3,735 11 1.17
Total interest-bearing deposits 96,829 15 .06 95,682 16 .07 93,250 54 .23
Federal funds purchased and securities sold under repurchase agreements 231 — .02 251 — .02 225 — .05
Bank notes and other short-term borrowings 671 2 1.11 744 3 1.19 761 1 .68
Long-term debt (f), (g) 12,601 54 1.73 11,978 54 1.79 12,801 64 2.12
Total interest-bearing liabilities 110,332 71 .26 108,655 73 .27 107,037 119 .45
Noninterest-bearing deposits 50,087 48,640 41,694
Accrued expense and other liabilities 3,053 2,716 2,350
Discontinued liabilities (g) 618 650 752
Total liabilities $ 164,090 $ 160,661 $ 151,833
Equity
Key shareholders’ equity $ 17,899 $ 17,859 $ 17,730
Noncontrolling interests — — —
Total equity 17,899 17,859 17,730
Total liabilities and equity $ 181,989 $ 178,520 $ 169,563
Interest rate spread (TE) 2.38 % 2.43 % 2.48 %
Net interest income (TE) and net interest margin (TE) $ 1,025 2.47 % $ 1,023 2.52 % $ 1,006 2.62 %
TE adjustment (b) 9 6 6
Net interest income, GAAP basis $ 1,016 $ 1,017 $ 1,000

(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, 2021, June 30, 2021, and September 30, 2020.

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

(d)Commercial and industrial average balances include $137 million, $132 million, and $129 million of assets from commercial credit cards for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, 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 2021 Profit

October 21, 2021

Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)
Nine months ended September 30, 2021 Nine months ended September 30, 2020
Average Yield/ Average Yield/
Balance Interest (a) Rate (a) Balance Interest (a) Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d) $ 51,410 $ 1,347 3.50 % $ 55,676 $ 1,500 3.60 %
Real estate — commercial mortgage 12,932 351 3.63 13,419 400 3.98
Real estate — construction 2,111 58 3.65 1,804 55 4.06
Commercial lease financing 4,041 89 2.93 4,546 107 3.15
Total commercial loans 70,494 1,845 3.50 75,445 2,062 3.65
Real estate — residential mortgage 11,320 246 2.89 7,801 210 3.59
Home equity loans 9,089 257 3.78 9,894 301 4.07
Consumer direct loans 4,969 173 4.65 4,089 165 5.38
Credit cards 919 69 10.10 1,010 81 10.68
Consumer indirect loans 3,771 91 3.22 4,779 135 3.78
Total consumer loans 30,068 836 3.71 27,573 892 4.32
Total loans 100,562 2,681 3.56 103,018 2,954 3.83
Loans held for sale 1,531 35 3.03 2,090 58 3.68
Securities available for sale (b), (e) 33,553 398 1.60 22,297 365 2.25
Held-to-maturity securities (b) 6,713 133 2.64 9,274 171 2.46
Trading account assets 809 14 2.30 837 16 2.55
Short-term investments 18,211 20 .15 7,412 14 .24
Other investments (e) 616 5 1.14 642 3 .72
Total earning assets 161,995 3,286 2.71 145,570 3,581 3.30
Allowance for loan and lease losses (1,427) (1,403)
Accrued income and other assets 16,626 15,579
Discontinued assets 651 794
Total assets $ 177,845 $ 160,540
Liabilities
NOW and money market deposit accounts $ 83,599 $ 30 .05 $ 74,087 $ 194 .35
Savings deposits 6,730 1 .02 5,089 2 .04
Certificates of deposit ($100,000 or more) 2,250 13 .77 5,036 74 1.96
Other time deposits 2,644 8 .41 4,321 49 1.53
Total interest-bearing deposits 95,223 52 .07 88,533 319 .48
Federal funds purchased and securities sold under repurchase agreements 242 — .03 821 6 .95
Bank notes and other short-term borrowings 764 6 .96 1,674 11 .87
Long-term debt (f), (g) 12,469 168 1.80 12,733 225 2.45
Total interest-bearing liabilities 108,698 226 .28 103,761 561 .73
Noninterest-bearing deposits 47,800 35,922
Accrued expense and other liabilities 2,853 2,518
Discontinued liabilities (g) 651 794
Total liabilities $ 160,002 $ 142,995
Equity
Key shareholders’ equity $ 17,843 $ 17,545
Noncontrolling interests — —
Total equity 17,843 17,545
Total liabilities and equity $ 177,845 $ 160,540
Interest rate spread (TE) 2.44 % 2.57 %
Net interest income (TE) and net interest margin (TE) $ 3,060 2.53 % $ 3,020 2.78 %
TE adjustment (b) 22 21
Net interest income, GAAP basis $ 3,038 $ 2,999

(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, 2021, and September 30, 2020, respectively.

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

(d)Commercial and industrial average balances include $131 million and $137 million of assets from commercial credit cards for the nine months ended September 30, 2021, and September 30, 2020, 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 2021 Profit

October 21, 2021

Page 20

Noninterest Expense
(dollars in millions)
Three months ended Nine months ended
9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020
Personnel (a) $ 640 $ 623 $ 588 $ 1,887 $ 1,675
Net occupancy 74 75 76 225 223
Computer processing 67 71 59 211 170
Business services and professional fees 56 51 49 157 142
Equipment 25 25 25 75 74
Operating lease expense 30 31 33 95 103
Marketing 32 31 22 89 67
Intangible asset amortization 15 14 15 44 50
Other expense 173 155 170 476 477
Total noninterest expense $ 1,112 $ 1,076 $ 1,037 $ 3,259 $ 2,981
Average full-time equivalent employees (b) 17,009 17,003 17,097 17,034 16,758

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

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

Personnel Expense
(in millions)
Three months ended Nine months ended
9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020
Salaries and contract labor $ 328 $ 321 $ 339 $ 969 $ 987
Incentive and stock-based compensation 212 210 155 618 419
Employee benefits 100 92 93 299 261
Severance — — 1 1 8
Total personnel expense $ 640 $ 623 $ 588 $ 1,887 $ 1,675

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 21

Loan Composition
(dollars in millions)
Percent change 9/30/2021 vs
9/30/2021 6/30/2021 9/30/2020 6/30/2021 9/30/2020
Commercial and industrial (a) $ 49,553 $ 50,672 $ 55,025 (2.2) % (9.9) %
Commercial real estate:
Commercial mortgage 13,674 12,965 13,059 5.5 4.7
Construction 2,120 2,132 1,947 (.6) 8.9
Total commercial real estate loans 15,794 15,097 15,006 4.6 5.3
Commercial lease financing (b) 3,982 4,061 4,450 (1.9) (10.5)
Total commercial loans 69,329 69,830 74,481 (.7) (6.9)
Residential — prime loans:
Real estate — residential mortgage 14,204 12,131 8,715 17.1 63.0
Home equity loans 8,747 9,047 9,488 (3.3) (7.8)
Total residential — prime loans 22,951 21,178 18,203 8.4 26.1
Consumer direct loans 5,324 5,049 4,395 5.4 21.1
Credit cards 928 923 970 .5 (4.3)
Consumer indirect loans 77 3,750 5,032 (97.9) (98.5)
Total consumer loans 29,280 30,900 28,600 (5.2) 2.4
Total loans (c), (d) $ 98,609 $ 100,730 $ 103,081 (2.1) % (4.3) %

(a)Loan balances include $139 million, $135 million, and $128 million of commercial credit card balances at September 30, 2021, June 30, 2021, and September 30, 2020, respectively.

(b)Commercial lease financing includes receivables held as collateral for a secured borrowing of $16 million, $19 million, and $18 million at September 30, 2021, June 30, 2021, and September 30, 2020, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $602 million at September 30, 2021, $636 million at June 30, 2021, and $743 million at September 30, 2020, related to the discontinued operations of the education lending business.

(d)Accrued interest of $211 million, $225 million, and $235 million at September 30, 2021, June 30, 2021, and September 30, 2020, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

Loans Held for Sale Composition
(dollars in millions)
Percent change 9/30/2021 vs
9/30/2021 6/30/2021 9/30/2020 6/30/2021 9/30/2020
Commercial and industrial $ 122 $ 233 $ 336 (47.6) % (63.7) %
Real estate — commercial mortgage 1,446 1,073 1,031 34.8 40.3
Commercial lease financing — — 1 N/M N/M
Real estate — residential mortgage 237 231 288 2.6 (17.7)
Consumer direct loans — — 68 N/M N/M
Total loans held for sale $ 1,805 $ 1,537 $ 1,724 17.4 % 4.7 %

N/M = Not Meaningful

Summary of Changes in Loans Held for Sale
(in millions)
3Q21 2Q21 1Q21 4Q20 3Q20
Balance at beginning of period $ 1,537 $ 2,296 $ 1,583 $ 1,724 $ 2,007
New originations 3,328 3,573 4,010 3,835 3,282
Transfers from (to) held to maturity, net 3,305 (71) 83 (24) 75
Loan sales (6,405) (4,195) (3,303) (3,932) (3,583)
Loan draws (payments), net 8 (27) (73) (19) (57)
Valuation and other adjustments 32 (39) (4) — —
Balance at end of period $ 1,805 $ 1,537 $ 2,296 $ 1,583 $ 1,724

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 22

Summary of Loan and Lease Loss Experience From Continuing Operations
(dollars in millions)
Three months ended Nine months ended
9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020
Average loans outstanding $ 100,138 $ 100,814 $ 104,919 $ 100,562 $ 103,018
Allowance for loan and lease losses at the end of the prior period $ 1,220 $ 1,438 $ 1,708 $ 1,626 $ 900
Cumulative effect from change in accounting principle (a) — — — — 204
Allowance for loan and lease losses at the beginning of the period 1,220 1,438 1,708 1,626 1,104
Loans charged off:
Commercial and industrial 27 41 101 141 232
Real estate — commercial mortgage — 4 13 39 18
Real estate — construction — — — — —
Total commercial real estate loans — 4 13 39 18
Commercial lease financing 1 — 10 5 16
Total commercial loans 28 45 124 185 266
Real estate — residential mortgage (2) 1 — (1) 2
Home equity loans 1 4 4 7 10
Consumer direct loans 7 7 8 22 30
Credit cards 6 9 9 21 32
Consumer indirect loans 26 5 6 38 22
Total consumer loans 38 26 27 87 96
Total loans charged off 66 71 151 272 362
Recoveries:
Commercial and industrial 20 32 9 60 19
Real estate — commercial mortgage 1 6 2 8 3
Real estate — construction — — — — —
Total commercial real estate loans 1 6 2 8 3
Commercial lease financing 6 — — 7 1
Total commercial loans 27 38 11 75 23
Real estate — residential mortgage 1 — 1 2 1
Home equity loans 2 1 3 4 6
Consumer direct loans 2 2 2 6 6
Credit cards 1 3 2 6 6
Consumer indirect loans 4 5 4 14 12
Total consumer loans 10 11 12 32 31
Total recoveries 37 49 23 107 54
Net loan charge-offs (29) (22) (128) (165) (308)
Provision (credit) for loan and lease losses (107) (196) 150 (377) 934
Allowance for loan and lease losses at end of period $ 1,084 $ 1,220 $ 1,730 $ 1,084 $ 1,730
Liability for credit losses on lending-related commitments at the end of the prior period $ 152 $ 178 $ 198 $ 197 $ 68
Liability for credit losses on contingent guarantees at the end of the prior period — — — — 7
Cumulative effect from change in accounting principle (a), (b) — — — — 66
Liability for credit losses on lending-related commitments at beginning of period 152 178 198 197 141
Provision (credit) for losses on lending-related commitments — (26) 10 (45) 67
Liability for credit losses on lending-related commitments at end of period (c) $ 152 $ 152 $ 208 $ 152 $ 208
Total allowance for credit losses at end of period $ 1,236 $ 1,372 $ 1,938 $ 1,236 $ 1,938
Net loan charge-offs to average total loans .11 % .09 % .49 % .22 % .40 %
Allowance for loan and lease losses to period-end loans 1.10 1.21 1.68 1.10 1.68
Allowance for credit losses to period-end loans 1.25 1.36 1.88 1.25 1.88
Allowance for loan and lease losses to nonperforming loans 195.7 175.8 207.4 195.7 207.4
Allowance for credit losses to nonperforming loans 223.1 197.7 232.4 223.1 232.4
Discontinued operations — education lending business:
Loans charged off $ 1 1 $ — $ 3 $ 4
Recoveries 1 — — 2 3
Net loan charge-offs $ — (1) $ — (1) $ (1)

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

(b)Nine months ended September 30, 2020, excludes $4 million related to the provision for other financial assets as a result of the change in accounting principle.

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

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 23

Asset Quality Statistics From Continuing Operations
(dollars in millions)
3Q21 2Q21 1Q21 4Q20 3Q20
Net loan charge-offs $ 29 $ 22 $ 114 $ 135 $ 128
Net loan charge-offs to average total loans .11 % .09 % .46 % .53 % .49 %
Allowance for loan and lease losses $ 1,084 $ 1,220 $ 1,438 $ 1,626 $ 1,730
Allowance for credit losses (a) 1,236 1,372 1,616 1,823 1,938
Allowance for loan and lease losses to period-end loans 1.10 % 1.21 % 1.42 % 1.61 % 1.68 %
Allowance for credit losses to period-end loans 1.25 1.36 1.60 1.80 1.88
Allowance for loan and lease losses to nonperforming loans 195.7 175.8 197.5 207.1 207.4
Allowance for credit losses to nonperforming loans 223.1 197.7 222.0 232.2 232.4
Nonperforming loans at period end $ 554 $ 694 $ 728 $ 785 $ 834
Nonperforming assets at period end 599 738 790 937 1,003
Nonperforming loans to period-end portfolio loans .56 % .69 % .72 % .78 % .81 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets .61 .73 .78 .92 .97

(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)
9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
Commercial and industrial $ 253 $ 355 $ 387 $ 385 $ 459
Real estate — commercial mortgage 49 66 66 104 104
Real estate — construction — — — — 1
Total commercial real estate loans 49 66 66 104 105
Commercial lease financing 5 7 8 8 6
Total commercial loans 307 428 461 497 570
Real estate — residential mortgage 93 99 95 110 96
Home equity loans 146 146 148 154 146
Consumer direct loans 4 4 5 5 3
Credit cards 3 3 3 2 2
Consumer indirect loans 1 14 16 17 17
Total consumer loans 247 266 267 288 264
Total nonperforming loans 554 694 728 785 834
OREO 8 9 12 100 105
Nonperforming loans held for sale 35 32 47 49 61
Other nonperforming assets 2 3 3 3 3
Total nonperforming assets $ 599 $ 738 $ 790 $ 937 $ 1,003
Accruing loans past due 90 days or more 82 74 92 86 73
Accruing loans past due 30 through 89 days 164 190 191 241 336
Restructured loans — accruing and nonaccruing (a) 270 334 376 363 306
Restructured loans included in nonperforming loans (a) 146 177 192 229 168
Nonperforming assets from discontinued operations — education lending business 4 5 5 5 6
Nonperforming loans to period-end portfolio loans .56 % .69 % .72 % .78 % .81 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets .61 .73 .78 .92 .97

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

Summary of Changes in Nonperforming Loans From Continuing Operations
(in millions)
3Q21 2Q21 1Q21 4Q20 3Q20
Balance at beginning of period $ 694 $ 728 $ 785 $ 834 $ 760
Loans placed on nonaccrual status 116 186 196 300 387
Charge-offs (66) (74) (135) (160) (150)
Loans sold (17) (10) (13) (9) (6)
Payments (136) (92) (37) (83) (83)
Transfers to OREO (1) — (3) (3) —
Transfers to nonperforming loans held for sale — — — — —
Loans returned to accrual status (36) (44) (65) (94) (74)
Balance at end of period $ 554 $ 694 $ 728 $ 785 $ 834

KeyCorp Reports Third Quarter 2021 Profit

October 21, 2021

Page 24

Line of Business Results
(dollars in millions)
Percentage change 3Q21 vs.
3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
Consumer Bank
Summary of operations
Total revenue (TE) $ 870 $ 852 $ 864 $ 896 $ 864 2.1 % .7 %
Provision for credit losses (38) (70) (23) (5) (3) 45.7 N/M
Noninterest expense 591 584 601 606 567 1.2 4.2
Net income (loss) attributable to Key 241 257 217 225 229 (6.2) 5.2
Average loans and leases 39,796 40,598 39,249 38,033 38,354 (2.0) 3.8
Average deposits 89,156 88,412 85,033 82,845 82,829 .8 7.6
Net loan charge-offs 35 34 36 28 23 2.9 52.2
Net loan charge-offs to average total loans .35 % .34 % .37 % .29 % .24 % 2.9 45.8
Nonperforming assets at period end $ 254 $ 274 $ 277 $ 300 $ 281 (7.3) (9.6)
Return on average allocated equity 25.81 % 28.53 % 25.74 % 25.60 % 26.21 % (9.5) (1.5)
Commercial Bank
Summary of operations
Total revenue (TE) $ 891 $ 873 $ 858 $ 922 $ 811 2.1 % 9.9 %
Provision for credit losses (69) (131) (67) 44 150 (47.3) (187.3)
Noninterest expense 470 451 443 499 447 4.2 5.1
Net income (loss) attributable to Key 384 433 383 310 173 (11.3) 122.0
Average loans and leases 59,914 59,953 61,221 63,432 66,378 (.1) (9.7)
Average loans held for sale 1,190 1,341 1,237 1,285 1,383 (11.3) (14.0)
Average deposits 56,546 54,814 51,894 52,489 51,585 3.2 9.6
Net loan charge-offs (6) 9 78 108 103 N/M N/M
Net loan charge-offs to average total loans (.04) % .06 % .52 % .68 % .62 % N/M N/M
Nonperforming assets at period end $ 345 $ 464 $ 514 $ 637 $ 722 (25.6) (52.2)
Return on average allocated equity 18.68 % 20.74 % 17.41 % 23.79 % 13.35 % (9.9) 39.9

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

key-3q21confcallslidesvf

KeyCorp Third Quarter 2021 Earnings Review October 21, 2021 Chris Gorman Chairman and Chief Executive Officer Don Kimble Vice Chairman and Chief Financial Officer

FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “seek,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible,” “potential,” “strategy,” “opportunities,” or “trends,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp’s control.) Actual results may differ materially from current projections. Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward-looking Statements” and “Risk Factors” in KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2020 and in other filings of KeyCorp with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. This presentation also includes certain non-GAAP financial measures related to “tangible common equity,” “cash efficiency ratio,” and “pre-provision net revenue.” Although Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of results under GAAP. For more information on these calculations and to view the reconciliations to the most comparable GAAP measures, please refer to the appendix of this presentation, or page 48 of our Form 10-Q dated June 30, 2021. GAAP: Generally Accepted Accounting Principles 2

3 3Q21 Highlights Financial Results  Positive operating leverage  Record third quarter revenue, up 8% YoY  Record third quarter noninterest income, up 17% YoY − Record third quarter investment banking fees of $235MM  Record consumer loan originations of $4.2Bn from co nsumer mortgage and Laurel Road  Momentum across consumer and commercial businesses − Record YTD net new consumer households − Raised $29Bn of capital for commercial clients in 3Q21; ~20% retained on balance sheet − Growing and deepening healthcare relationships across the franchise Credit Quality & Capital  Strong credit quality: net charge-offs to average loans of 11 bps with lower NPL and criticized loans  Capital above targeted range: CET1 ratio of 9.6%(a)  Entered into accelerated share repurchase program: aided by capital relief from sale of $3.2Bn indirect auto loan portfolio(b) − Repurchased $593MM total common shares in 3Q21 under current $1.5Bn authorization (a) 9/30/21 ratios are estimated and reflect Key's election to adopt the CECL optional transition provision (b) Details of auto transaction included in presentation appendix

Financial Review 4

Financial Highlights EOP = End of Period (a) Non-GAAP measure: see Appendix for reconciliations (b) 9/30/21 ratios are estimated EPS – assuming dilution $ .65 $ .72 $ .41 (9.7) % 58.5 % Cash efficiency ratio(a) 60.2 % 59.9 % 60.6 % 30 bps (40) bps Return on average tangible common equity(a) 18.6 21.3 12.2 (270) 640 Return on average total assets 1.41 1.63 1.00 (22) 41 Net interest margin 2.47 2.52 2.62 (5) (15) Common Equity Tier 1(b) 9.6 % 9.9 % 9.5 % (30) bps 10 bps Tier 1 risk-based capital(b) 10.9 11.3 10.9 (40) - Tangible common equity to tangible assets(a) 7.0 7.4 7.8 (40) (80) NCOs to average loans .11 % .09 % .49 % 2 bps (38) bps NPLs to EOP portfolio loans .56 .69 .81 (13) (25) Allowance for credit losses to EOP loans 1.25 1.36 1.88 (11) (63) Asset Quality Profitability Continuing operations, unless otherwise noted 3Q21 2Q21 3Q20 LQ ∆ Y/Y ∆ Capital 5

$8 $8 $4 3Q20 2Q21 3Q21 Commercial loans PPP Loans $ in billions vs. Prior Year Total Average Loans Highlights  Average loans down 5% from 3Q20 − Balances reflect $4.3Bn of average PPP balances in 3Q21 − Commercial balances reflect decreased utilization and PPP forgiveness − Consumer loan growth (+10%) driven by consumer mortgage and Laurel Road vs. Prior Quarter  Average loans relatively stable compared to 2Q21 − Commercial balances reflect a slight increase in commercial utilization rates, more than offset by the forgiveness of PPP loans ($2.6Bn) − Record consumer loan originations of >$4.2Bn from consumer mortgage and Laurel Road $ in billions Portfolio Detail $8 $8 $4 33% 28% 20.00% 30.00% 40.00% $60 $70 $80 $90 $100 $110 3Q20 4Q20 1Q21 2Q21 3Q21 $105 C&I line utilizationTotal average loans ConsumerCommercial $28 $30 $31 3Q20 2Q21 3Q21 6 PPP $100  Sold indirect auto loan portfolio on 9/10/21 − Reduced 3Q21 average loans by $.8Bn − Reduced 3Q21 period-end loans by $3.3Bn $77 $71 $69

$50.1 $85.3 $7.1 $4.4 .16% .04% .23% .06% $0 $20 $40 $60 $80 $100 $120 $140 $160 3Q20 4Q20 1Q21 2Q21 3Q21 Cost of total interest-bearing deposits  Average deposit balances up 2% from 2Q21 − Growth in commercial balances partially offset by a continued decline in time deposits 3Q21 Average Deposit Mix  Average deposits up 9% from 3Q20 − Growth from consumer and commercial relationships − Partially offset by decline in time deposits as a result of lower interest rates Cost of total deposits CDs and other time deposits Savings Noninterest-bearing NOW and MMDA $ in billions $ in billions vs. Prior Year vs. Prior Quarter Consumer Commercial $135 Average Deposits Highlights $147  Strong and stable deposit base − 35% noninterest-bearing(a) − ~60% stable retail and low-cost escrow − 67% loan to deposit ratio(b) (a) Based on period-end balances (b) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits x 7 Deposits

2.62% 2.47% 2.0% 2.5% 3.0% 3.5% 4.0% $500 $600 $700 $800 $900 $1,000 $1,100 3Q20 4Q20 1Q21 2Q21 3Q21  Net interest income up $2MM (+.2%) from 2Q21 − Largely reflecting the impact of higher earning asset balances and one additional day in 3Q21 − Partially offset by elevated liquidity levels and lower earning asset yields TE = Taxable equivalent Net interest income (TE) Net Interest Margin (TE) Net Interest Income and Margin $ in millions; continuing operations vs. Prior Year vs. Prior Quarter $1,006 $1,025 Net Interest Income & Net Interest Margin Trend (TE ) Highlights x  Net interest income up $19MM (+2%) compared to 3Q20 − Largely driven by higher earning asset balances, higher loan fees (incl. PPP forgiveness) and lower interest-bearing deposit costs − Offset by a lower net interest margin  Lower NIM driven by the impact from lower interest rates and elevated levels of liquidity 8 NIM Change vs. Prior Quarter 2Q21: 2.52% Elevated liquidity (.03) Balance sheet mix and earning asset yields (.02) Total change (.05) 3Q21: 2.47%

 Noninterest income up $116MM (+17%) from 3Q20 − Record third quarter of investment banking and debt placement fees (+$89MM) driven by broad-based growth across the platform − Strength in corporate services income (+$18MM) and commercial mortgage servicing fees (+$16MM) − Partially offset by lower consumer mortgage income (-$18MM) from lower gain on sale Noninterest Income Noninterest Income  Noninterest income up $47MM (+6%) from 2Q21 − Higher investment banking and debt placement fees (+$18MM) driven by broad-based growth across the platform and strong corporate services income (+$14MM) − Partially offset by lower commercial mortgage servicing fees (-$10MM) from lower activity- related fees vs. Prior Year vs. Prior Quarter Highlights $ in millions up / (down) 3Q21 vs. 3Q20 vs. 2Q21 Trust and investment services income $ 129 $ 1 ($4) Investment banking and debt placement fees 235 89 18 Service charges on deposit accounts 91 14 8 Operating lease income and other leasing gains 37 (1) 1 Corporate services income 69 18 14 Cards and payments income 111 (3) (2) Corporate-owned life insurance 33 3 3 Consumer mortgage income 33 (18) 7 Commercial mortgage servicing fees 34 16 (10) Other income 25 (3) 12 Total noninterest income $ 797 $ 116 $ 4 7 9

Noninterest Expense vs. Prior Year vs. Prior Quarter Noninterest Expense Highlights $ in millions favorable / (unfavorable) 3Q21 vs. 3Q20 vs. 2Q21 Personnel $ 640 $ (52) $ (17) Net occupancy 74 2 1 Computer processing 67 (8) 4 Business services, professional fees 56 (7) (5) Equipment 25 - - Operating lease expense 30 3 1 Marketing 32 (10) (1) Intangible asset amortization 15 - (1) Other expense 173 (3) (18) Total noninterest expense $ 1,112 $ (75) $ (36)  Noninterest expense up $75MM (+7%) from 3Q20 − Expenses reflect investments across franchise in digital, analytics, and teammates − Higher personnel expense (+$52MM), largely attributable to higher incentive and stock-based compensation driven by higher fee production and increased stock price − Higher marketing costs (+$10MM) largely attributable to Laurel Road  Noninterest expense up $36MM (+3%) from 2Q21 − Higher other expense (+$18MM) includes a pension settlement charge and elevated charitable contributions − Higher personnel expense related to higher employee benefits costs and one additional day in the quarter 10  Growing Laurel Road  Adding talent  Strengthening analytics capabilities  Balancing branch infrastructure with digital 2021 Investments – Driving Growth

$128 $29 $160 $(107) .49% .11% (.40)% (.20)% .00% .20% .40% .60% .80% ($300) ($150) $0 $150 $300 $450 $600 3Q20 4Q20 1Q21 2Q21 3Q21 $ in millions Credit Quality $ in millions NCOs Provision for credit losses NCOs to avg. loans $834 $554 .81% .56% .00% .40% .80% 1.20% 1.60% 2.00% $0 $300 $600 $900 3Q20 4Q20 1Q21 2Q21 3Q21 NPLs NPLs to period-end loans NCO = Net charge-off NPL = Nonperforming Loans $1,938 $1,236 232% 223% 100% 150% 200% 250% 300% 350% 400% $0 $500 $1,000 $1,500 $2,000 $2,500 3Q20 4Q20 1Q21 2Q21 3Q21 Allowance for credit losses to NPLs Allowance for credit losses Nonperforming Loans 3Q21 allowance for credit losses to period-end loans of 1.25% Allowance for Credit Losses (ACL) Net Charge-offs & Provision for Credit Losses $ in millions 11 3Q21 includes $22MM related to the sale of Key’s indirect auto portfolio

Common Equity Tier 1 (a)  Strong capital position: CET1 ratio 9.6% (a) at 9/30/2021 – above targeted range  Strong capital return: − Repurchased $593MM common shares in 3Q21, including $468MM(c) from ASR and $125MM from the open market − Maintained dividend of $.185 per common share in 3Q21 Tangible Common Equity to Tangible Assets (b) (a) 9/30/21 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision (b) Non-GAAP measure: see Appendix for reconciliation (c) Reflects the initial settlement of shares in the ASR announced on 9/10/21; Remaining 20% to be settled in 4Q21 9.5% 9.6% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 3Q20 4Q20 1Q21 2Q21 3Q21 7.8% 7.0% 6.0% 7.0% 8.0% 9.0% 3Q20 4Q20 1Q21 2Q21 3Q21 Capital Highlights 12 Share Repurchase Authorization Remaining share repurchase authorization of up to $907MM $593MM of common shares repurchased in 3Q21 Capital Return Common Share Dividend $.185 per common share in 3Q21 34% 10-year common share CAGR

4Q Outlook and Long -term Targets 13 Average Loans: Up low-single digit (excluding the impact of sale of the indirect auto portfolio) Average Deposits: Relatively stable Net Interest Income (TE): Down low-single digit Reflects lower PPP forgiveness in 4Q Noninterest Income: Relatively stable Noninterest Expense: Down low-single digit Net Charge-offs: < 20 basis points GAAP Tax Rate: Approximately 20% Long-term Targets Positive operating leverage Cash efficiency ratio: 54% - 56% Moderate risk profile: Net charge-offs to avg. loans targeted range of 40-60 bps ROTCE: 16% - 19% 4Q21 (vs. 3Q21) Guidance ranges: relatively stable: +/- 2%; low-single digit: 1% - 3%

Appendix 14

Total Commercial Loans C&I $40 CRE $18 $ in billions 9/30/21 % of total loans Commercial and industrial $ 49.5 50 Commercial real estate 15.8 16 Commercial lease financing 4.0 4 Total Commercial $ 69.3 70% Commercial Loan Portfolio Detail  Solid middle market portfolio  Aligning bankers to areas of market opportunity and growth - investing in strategic hires with industry vertical expertise  High-quality borrowers  Small, stable leveraged portfolio: <2% of total loans Portfolio Highlights  Target specific client segments focused in 7 industry verticals  Experienced bankers with deep industry expertise  Focused on high quality clients  Credit quality metrics remain strong and stable − Disciplined, consistent underwriting − Active surveillance with ongoing portfolio reviews − Dynamic assessment of ratings migration  Strengthened credit risk profile with strategic exits and growth in targeted client segments to focus on relationships  Significantly scaled back construction portfolio from pre- recession (42% in 2008  14% in 2021)  Focused on relationships with owners and operators  Strategic focus in CDLI and multifamily Commercial Real Estate (CRE) Commercial & Industrial (C&I) Consumer Energy Healthcare Industrial Public Sector Real Estate Technology Targeted Industry Verticals ~80% commercial bank credit exposure from relationship(a) clients (a) Relationship client is defined as having two or more of the following: credit, capital markets, or payments 15

$2.3 $2.5 $3.0 $3.7 $3.7 3Q20 4Q20 1Q21 2Q21 3Q21 Origination Volume $419 $590 $475 $399 $504 3Q20 4Q20 1Q21 2Q21 3Q21 Origination Volume Portfolio Highlights  Prime & super prime client base focused on relationships  Continued consumer originations bring more balance to portfolio  Continuing to invest in digital to drive future growth weighted average FICO at origination Total Consumer Loans Consumer Loan Portfolio Detail C&I $40 CRE $18 $ in billions 9/30/21 % of total loans WA FICO at origination Consumer mortgage 14.2 15 765 Home equity 8.7 9 801 Consumer direct 5.3 5 784 Credit card .93 1 794 Consumer indirect(a) .08 N/A N/A Total Consumer $ 29.2 30% 776 $ in millions $ in billions  High-quality client base: primarily healthcare professionals  Launched Laurel Road for Doctors on 3/30/21: expands Key’s digital reach and consumer franchise nationally through targeted scale  2021 production levels were negatively impacted by the federal student loan payment holiday  Focused on prime/super-prime clients (weighted average FICO: 765)  Investing in digital capabilities to enhance client experience and improve efficiency  Continued momentum with loan originations of $3.7Bn in 3Q21 and $10.5Bn YTD21 Laurel Road Consumer Mortgage 776 16(a) Indirect auto portfolio was sold on 9/10/21

Indirect Auto Sale Transaction 17  Removes potential credit risk by way of the subordinated bonds in the securitization  Reduced reinvestment risk related to the loan sale with the purchase of the senior notes  Retention of servicing significantly reduces the compliance risk associated with a loan sale The sale of the indirect auto loan portfolio coupled with the purchase of senior notes from a securitization collateralized by the sold loans Effective Risk Mitigation Strategy 3Q21 Financial Statement ImpactPositive Economics for Shareholders  Resulted in modest benefit to net income for 3Q21  The senior note will carry a risk weighting of 20%, relative to the 100% risk weighting of the loans ‒ Impact of ~$2.8Bn reduction in RWAs and 20 bps of CET1 ‒ Translates to $250MM in capital relief at an attractive cost of capital  Servicing income aids in achieving desired economic outcome  Accelerated Share Repurchase (ASR) strategy provide d additional economic benefit of share repurchases by locking in a discount to volume weighted average pr ice over the term of the contract ‒ ASR reduced average shares by 23.5MM in 3Q21 Balance Sheet Impact Category Impact Loans Ending balance $3.3Bn Average Balance $.8Bn Securities (HTM) Ending balance $2.8Bn Average Balance $.7Bn  Remainder of cash deployed in investment portfolio

Average Total Investment Securities Average AFS securities Investment Portfolio Average yield(a) Average HTM securities $ in billions Highlights 2.05% .50% 1.00% 1.50% 2.00% 2.50% $0.0 $8.0 $16.0 $24.0 $32.0 $40.0 3Q20 4Q20 1Q21 2Q21 3Q21 $33.6 $43.4 1.66% Securities Cash Flows (b) as a % of Total Securities Securities cash flows as a % of total securities(b) Mortgage rate(c) (a) Yield is calculated on the basis of amortized cost (b) Quarterly cash flows (c) Average 30-year Freddie Mac fixed mortgage rate  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 Treasuries: 1.90%  Growth in average balances reflects redeployment of excess liquidity and indirect auto transaction ‒ Added $3.7Bn (yield: 1.35%) in Agency Mortgage Securities and Treasuries in 3Q21 ‒ Purchase of the $2.8Bn (yield: 2.10%) senior tranche in Key’s indirect auto transaction ‒ Continue to evaluate alternatives to deploy additional excess cash into securities while maintaining flexibility to capitalize on higher interest rates as the economy continues to recover  Strategically positioned the portfolio allocation t o provide greater yield stability in a lower interest rate environment: ‒ Grew allocation to bullet-like or locked-out cash flow securities backed by commercial mortgages ‒ Focused on investing in securities backed by residential and multi-family mortgage collateral with lower prepayment risks ‒ Limited exposure to net unamortized premiums on mortgage securities ‒ Quarterly mortgage security cash flows, as a percentage of the portfolio, remain at modest levels with mortgage rates near historic lows  Portfolio average life of 5.5 years and duration of 3.9 years at 9/30/2021 (duration including securities h edges) 18 4% 4% 5% 5% 7% 8% 8% 8% 6% 6% 4.0% 3.7%3.7%3.5% 3.3% 3.0% 2.8% 2.9% 3.0% 2.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21

Interest- bearing 65% Noninterest- bearing 35% Prime 9% 1M LIBOR 35% 3M LIBOR 6% Other 12% Fixed 38% Balanced approach to managing interest rate risk provides declining rate protection while maintaining significant upside to higher rates 3Q21 Balance Sheet Highlights (a) Loan Composition Deposit Mix  Attractive business model with relationship-oriente d lending franchise − Distinctive commercial capabilities drive C&I growth and ~60% floating-rate loan mix (incl. PPP) − Laurel Road and consumer mortgage enhance fixed rate loan volumes with attractive client profile  Strong, low-cost deposit base − ~60% stable retail and low-cost escrow − >85% from markets where Key maintains top-5 deposit or branch share  $49Bn investment portfolio structured to provide greater yield stability in a lower rate environment − Higher allocation of bullet-like securities and mortgage collateral with lower prepayment risks and limited exposure to unamortized premiums Actively Managing Interest Rate Risk Position  Modest exposure to further rate declines with prote ction against negative interest rates − 90+% of existing Libor loan portfolio contain floors (at or above 0%), with floors incorporated into all new Libor loan contracts  Substantial investment opportunities to monetize hig her term rate levels ‒ Modeled year one net interest income benefit of ~6% to ramped 200 bps rise in rates with conservative low 30’s deposit beta assumption ‒ $25+ Bn in cash and short-term treasuries ‒ $20+ Bn in projected annual fixed rate investments across loan, security, and derivative portfolios  Total hedge portfolio of $36.2Bn at 9/30/2021 (a) Loan and deposit statistics based on 9/30/2021 ending balances  Continually evaluating opportunities to protect and enhance NII through new hedging and/or modifying existing positions 19 Asset & Liability Management Positioning A/LM Swaps Debt Swaps 3Q 21 $22.1Bn $7.9Bn $6.3Bn Securities Hedges

Criticized Outstandings (a) to Period-end Total LoansDelinquencies to Period-end Total Loans Credit Quality Trends (a) Loan and lease outstandings (b) From continuing operations 30 – 89 days delinquent 90+ days delinquent .33% .17% .07% .08% .00% .20% .40% .60% .80% 3Q20 4Q20 1Q21 2Q21 3Q21 3.9% 3.3% .0% 2.0% 4.0% 6.0% 3Q20 4Q20 1Q21 2Q21 3Q21 Metric (b) 3Q21 2Q21 1Q21 4Q20 3Q20 Delinquencies to EOP total loans: 30-89 days .17 % .19 % .19 % .24 % .33 % Delinquencies to EOP total loans: 90+ days .08 .07 .09 .08 .07 NPLs to EOP portfolio loans .56 .69 .72 .78 .81 NPAs to EOP portfolio loans + OREO + Other NPAs .61 .73 .78 .92 .97 Allowance for credit losses to period-end loans 1.25 1.36 1.60 1.80 1.88 Allowance for credit losses to NPLs 223.1 197.7 222.0 232.2 232.4 Continuing operations Continuing operations 20

Period- end loans Average loans Net loan charge- offs Net loan charge-offs (b) / average loans (%) Nonperforming loans Ending allowance Allowance / period-end loans (%) Allowance / NPLs (%) 9/30/21 3Q21 3Q21 3Q21 9/30/21 9/30/21 9/30/21 9/30/21 Commercial and industrial(a) $ 49,553 $ 49,868 $ 7 .06% $ 253 $ 462 .93% 182.61% Commercial real estate: Commercial Mortgage 13,674 13,306 (1) (.03) 49 184 1.35 375.51 Construction 2,120 2,134 - - - 27 1.27 - Commercial lease financing(c) 3,982 3,922 (5) (.51) 5 32 .80 640.00 Real estate – residential mortgage 14,204 13,168 (3) (.09) 93 88 .62 94.62 Home equity 8,747 8,894 (1) (.04) 146 124 1.42 84.93 Consumer direct loans 5,324 5,175 5 .38 4 105 1.11 N/M Credit cards 928 917 5 2.16 3 59 11.31 N/M Consumer indirect loans 77 2,754 22 3.17 1 3 3.90 300.00 Continuing total $ 98,609 $ 100,138 $ 29 .11% $ 554 $ 1,084 1.10% 195.67% Discontinued operations 602 615 - - 4 29 4.81 725.00 Consolidated total $ 99,211 $ 100,753 $ 29 .11% $ 558 $ 1,113 1.12% 199.46% Credit Quality by Portfolio Credit Quality $ in millions N/M = Not meaningful (a) Commercial and industrial ending loan balances include $139 million of commercial credit card balances at September 30, 2021; commercial and industrial average balances include $137 million of assets from commercial credit cards for the three months ended September 30, 2021 (b) Net loan charge-off amounts are annualized in calculation (c) Commercial lease financing includes receivables held as collateral for a secured borrowing of $16 million at September 30, 2021. Principal reductions are based on the cash payments received from these related receivables 21

GAAP to Non -GAAP Reconciliation (a) For the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, intangible assets exclude $3 million, $4 million, and $5 million, respectively, of period-end purchased credit card receivables (b) Net of capital surplus (c) For the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, average intangible assets exclude $3 million, $4 million, and $5 million, respectively, of average purchased credit card receivables 22 $ in millions 9/30/2021 6/30/2021 9/30/2020 Tangible common equity to tangible assets at period end Key shareholders' equity (GAAP) 17,510$ 17,941$ 17,722$ Less: Intangible assets (a) 2,814 2,828 2,862 Preferred Stock (b) 1,856 1,856 1,856 Tangible common equity (non-GAAP) 12,840$ 13,257$ 13,004$ Total assets (GAAP) 187,035$ 181,115$ 170,540$ Less: Intangible assets (a) 2,814 2,828 2,862 Tangible assets (non-GAAP) 184,221$ 178,287$ 167,678$ Tangible common equity to tangible assets ratio (non-GAAP) 6.97% 7.44% 7.76% Pre-provision net revenue Net interest income (GAAP) 1,016$ 1,017$ 1,000$ Plus: Taxable-equivalent adjustment 9 6 6 Noninterest income 797 750 681 Less: Noninterest expense 1,112 1,076 1,037 Pre-provision net revenue from continuing operations (non-GAAP) 710$ 697$ 650$ Average tangible common equity Average Key shareholders' equity (GAAP) 17,899$ 17,859$ 17,730$ Less: Intangible assets (average) (c) 2,823 2,840 2,870 Preferred Stock (average) 1,900 1,900 1,900 Average tangible common equity (non-GAAP) 13,176$ 13,119$ 12,960$ Three months ended

GAAP to Non -GAAP Reconciliation 23 $ in millions 9/30/2021 6/30/2021 9/30/2020 Return on average tangible common equity from conti nuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) 616$ 698$ 397$ Average tangible common equity (non-GAAP) 13,176 13,119 12,960 Return on average tangible common equity from continuing operations (non-GAAP) 18.55% 21.34% 12.19% Return on average tangible common equity consolidat ed Net income (loss) attributable to Key common shareholders (GAAP) 618$ 703$ 401$ Average tangible common equity (non-GAAP) 13,176 13,119 12,960 Return on average tangible common equity consolidation (non-GAAP) 18.61% 21.49% 12.31% Cash efficiency ratio Noninterest expense (GAAP) 1,112$ 1,076$ 1,037$ Less: Intangible asset amortization 15 14 15 Adjusted noninterest expense (non-GAAP) 1,097$ 1,062$ 1,022$ Net interest income (GAAP) 1,016$ 1,017$ 1,000$ Plus: Taxable-equivalent adjustment 9 6 6 Noninterest income 797 750 681 Total taxable-equivalent revenue (non-GAAP) 1,822$ 1,773$ 1,687$ Cash eff iciency ratio (non-GAAP) 60.2% 59.9% 60.6% Three months ended

Document

Exhibit 99.3

Consolidated Balance Sheets
(dollars in millions)
9/30/2021 6/30/2021 9/30/2020
Assets
Loans $ 98,609 $ 100,730 $ 103,081
Loans held for sale 1,805 1,537 1,724
Securities available for sale 40,594 34,638 26,895
Held-to-maturity securities 8,423 6,175 8,384
Trading account assets 902 851 733
Short-term investments 19,608 20,460 14,148
Other investments 607 635 620
Total earning assets 170,548 165,026 155,585
Allowance for loan and lease losses (1,084) (1,220) (1,730)
Cash and due from banks 763 792 956
Premises and equipment 678 785 765
Goodwill 2,673 2,673 2,664
Other intangible assets 144 159 203
Corporate-owned life insurance 4,312 4,304 4,274
Accrued income and other assets 8,404 7,966 7,084
Discontinued assets 597 630 739
Total assets $ 187,035 $ 181,115 $ 170,540
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts $ 87,242 $ 85,242 $ 80,791
Savings deposits 7,259 6,993 5,585
Certificates of deposit ($100,000 or more) 1,890 2,064 3,345
Other time deposits 2,315 2,493 3,450
Total interest-bearing deposits 98,706 96,792 93,171
Noninterest-bearing deposits 53,225 49,280 43,575
Total deposits 151,931 146,072 136,746
Federal funds purchased and securities sold under repurchase agreements 228 211 213
Bank notes and other short-term borrowings 767 723 818
Accrued expense and other liabilities 3,434 2,957 2,356
Long-term debt 13,165 13,211 12,685
Total liabilities 169,525 163,174 152,818
Equity
Preferred stock 1,900 1,900 1,900
Common shares 1,257 1,257 1,257
Capital surplus 6,141 6,232 6,263
Retained earnings 14,133 13,689 12,375
Treasury stock, at cost (5,876) (5,287) (4,940)
Accumulated other comprehensive income (loss) (45) 150 867
Key shareholders’ equity 17,510 17,941 17,722
Noncontrolling interests — — —
Total equity 17,510 17,941 17,722
Total liabilities and equity $ 187,035 $ 181,115 $ 170,540
Common shares outstanding (000) 930,544 960,276 976,205
Consolidated Statements of Income
--- --- --- --- --- --- --- --- --- --- --- --- ---
(dollars in millions, except per share amounts)
Three months ended Nine months ended
9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020
Interest income
Loans $ 882 $ 888 $ 927 $ 2,659 $ 2,933
Loans held for sale 13 11 18 35 58
Securities available for sale 135 133 115 398 365
Held-to-maturity securities 43 45 53 133 171
Trading account assets 4 5 3 14 16
Short-term investments 9 6 1 20 14
Other investments 1 2 2 5 3
Total interest income 1,087 1,090 1,119 3,264 3,560
Interest expense
Deposits 15 16 54 52 319
Federal funds purchased and securities sold under repurchase agreements — — — — 6
Bank notes and other short-term borrowings 2 3 1 6 11
Long-term debt 54 54 64 168 225
Total interest expense 71 73 119 226 561
Net interest income 1,016 1,017 1,000 3,038 2,999
Provision for credit losses (107) (222) 160 (422) 1,001
Net interest income after provision for credit losses 1,123 1,239 840 3,460 1,998
Noninterest income
Trust and investment services income 129 133 128 395 384
Investment banking and debt placement fees 235 217 146 614 418
Service charges on deposit accounts 91 83 77 247 229
Operating lease income and other leasing gains 37 36 38 111 128
Corporate services income 69 55 51 188 165
Cards and payments income 111 113 114 329 271
Corporate-owned life insurance income 33 30 30 94 101
Consumer mortgage income 33 26 51 106 133
Commercial mortgage servicing fees 34 44 18 112 48
Other income 25 13 28 89 (27)
Total noninterest income 797 750 681 2,285 1,850
Noninterest expense
Personnel 640 623 588 1,887 1,675
Net occupancy 74 75 76 225 223
Computer processing 67 71 59 211 170
Business services and professional fees 56 51 49 157 142
Equipment 25 25 25 75 74
Operating lease expense 30 31 33 95 103
Marketing 32 31 22 89 67
Intangible asset amortization 15 14 15 44 50
Other expense 173 155 170 476 477
Total noninterest expense 1,112 1,076 1,037 3,259 2,981
Income (loss) from continuing operations before income taxes 808 913 484 2,486 867
Income taxes 165 189 60 501 113
Income (loss) from continuing operations 643 724 424 1,985 754
Income (loss) from discontinued operations, net of taxes 2 5 4 11 7
Net income (loss) 645 729 428 1,996 761
Less: Net income (loss) attributable to noncontrolling interests — — — — —
Net income (loss) attributable to Key $ 645 $ 729 $ 428 $ 1,996 $ 761
Income (loss) from continuing operations attributable to Key common shareholders $ 616 $ 698 $ 397 $ 1,905 $ 674
Net income (loss) attributable to Key common shareholders 618 703 401 1,916 681
Per common share
Income (loss) from continuing operations attributable to Key common shareholders $ .65 $ .73 $ .41 $ 1.99 $ .7
Income (loss) from discontinued operations, net of taxes — — — .01 .01
Net income (loss) attributable to Key common shareholders (a) .66 .73 .41 2 .7
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders $ .65 $ .72 $ .41 $ 1.98 $ .69
Income (loss) from discontinued operations, net of taxes — — — .01 .01
Net income (loss) attributable to Key common shareholders (a) .65 .73 $ .41 1.99 .70
Cash dividends declared per common share $ .185 $ .185 $ .185 $ .555 $ .555
Weighted-average common shares outstanding (000) 942,446 957,423 967,804 955,069 967,632
Effect of common share options and other stock awards 10,077 9,740 6,184 9,712 6,648
Weighted-average common shares and potential common shares outstanding (000) (b) 952,523 967,163 973,988 964,781 974,280

(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.

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