KeyCorp 8K Average deposits up $1.3 billion compared to the prior quarter and the second quarter of 2023, with client deposits up 5% year-over-year | KEY 18 Jul 24

KEYCORP REPORTS SECOND QUARTER 2024 NET INCOME OF $237 MILLION,

OR $.25 PER DILUTED COMMON SHARE

Average deposits up $1.3 billion compared to the prior quarter and the second quarter of 2023, with client deposits up 5% year-over-year

Disciplined expense management: expenses declined approximately 6% from the prior quarter and were stable versus the year-ago period

Common Equity Tier 1 ratio rose 20 basis points to 10.5%(a)

Credit quality remains solid: net charge-offs to average loans of 34 basis points

CLEVELAND, July 18, 2024 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $237 million, or $.25 per diluted common share, for the second quarter of 2024. Net income from continuing operations attributable to Key common shareholders was $183 million, or $.20 per diluted common share, for the first quarter of 2024 and $250 million, or $.27 per diluted common share, for the second quarter of 2023.

Comments from Chairman and CEO, Chris Gorman

"This was a solid quarter for Key as we continued to execute on our clearly defined path to enhanced profitability. Sequentially, net interest income grew as we benefited from fixed asset repricing and continued to grow client deposits while the pace of deposit repricing slowed. Client deposits were up 5% from the prior year. Loan demand remained tepid, however, we are optimistic that we will begin to see growth in the second half of the year.

We continued to make progress against our most important strategic fee-based initiatives where we benefit from a differentiated value proposition. We demonstrated momentum in Wealth Management and Commercial Payments. Additionally, our Investment Banking pipelines are meaningfully higher from prior periods.

Expenses continue to be well-managed, and net charge-offs remained low. We built our Common Equity Tier 1 ratio another 23 basis points to 10.5%, bringing our organic capital build to approximately 120 basis points over the past twelve months.

I am excited for our path forward and energized by our momentum which positions us to deliver sound, profitable growth."

(a)June 30, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 2


Selected Financial Highlights

Dollars in millions, except per share data										Change 2Q24 vs.
	2Q24			1Q24			2Q23			1Q24		2Q23
Income (loss) from continuing operations attributable to Key common shareholders	$	237		$	183		$	250		29.5	%	(5.2)	%

Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution	.25			.20			.27			25.0		(7.4)

Return on average tangible common equity from continuing operations (a)	10.39		%	7.87		%	11.04		%	N/A		N/A

Return on average total assets from continuing operations	.59			.47			.58			N/A		N/A

Common Equity Tier 1 ratio (b)	10.5			10.3			9.3			N/A		N/A
Book value at period end	$	13.09		$	12.84		$	12.18		1.9		7.5
Net interest margin (TE) from continuing operations	2.04		%	2.02		%	2.12		%	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 “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b)June 30, 2024 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable


INCOME STATEMENT HIGHLIGHTS

Revenue

Dollars in millions							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Net interest income (TE)	$	899	$	886	$	986	1.5	%	(8.8)	%
Noninterest income	627		647		609		(3.1)		3.0
Total revenue (TE)	$	1,526	$	1,533	$	1,595	(.5)	%	(4.3)	%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $899 million for the second quarter of 2024 and the net interest margin was 2.04%. Compared to the second quarter of 2023, net interest income decreased by $87 million, and the net interest margin decreased by eight basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding but still liquid investments, and the replacement of low-yielding interest rate swaps with higher-yield interest rate swaps. Net interest income and the net interest margin declined year-over-year, however, reflecting lower loan balances from Key's balance sheet optimization actions during 2023 and higher deposit costs in the higher interest rate environment relative to a year ago. Additionally, the balance sheet experienced a shift in funding mix from noninterest-bearing deposits to higher-cost deposits and borrowings.

Compared to the first quarter of 2024, taxable-equivalent net interest income increased by $13 million, and the net interest margin increased by two basis points for the second quarter of 2024. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding but still liquid investments, and the replacement of low-yielding interest rate swaps with higher-yield interest rate swaps. Lower loan balances, higher funding costs, and an unfavorable funding mix partly offset the increase in net interest income and the net interest margin from higher yielding reinvestments.

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 3


Noninterest Income

Dollars in millions							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Trust and investment services income	$	139	$	136	$	126	2.2	%	10.3	%
Investment banking and debt placement fees	126		170		120		(25.9)		5.0
Cards and payments income	85		77		85		10.4		—
Service charges on deposit accounts	66		63		69		4.8		(4.3)
Corporate services income	68		69		86		(1.4)		(20.9)
Commercial mortgage servicing fees	61		56		50		8.9		22.0
Corporate-owned life insurance income	34		32		32		6.3		6.3
Consumer mortgage income	16		14		14		14.3		14.3
Operating lease income and other leasing gains	21		24		23		(12.5)		(8.7)
Other income	11		6		4		83.3		175.0
Total noninterest income	$	627	$	647	$	609	(3.1)	%	3.0	%

N/M = Not Meaningful

Compared to the second quarter of 2023, noninterest income increased by $18 million. The increase was driven by trust and investment services, up $13 million, reflective of strong market performance as well as an increase in commercial mortgage servicing fees, which increased $11 million.

Compared to the first quarter of 2024, noninterest income decreased by $20 million. The decrease was driven by investment banking and debt placement fees, down $44 million, reflective of strong merger and acquisition advisory fees and syndication fees in the first quarter. The decline was partly offset by an $8 million increase in cards and payments income due to higher seasonal transactions in debit and credit cards and a $5 million increase in commercial mortgage servicing fees.


Noninterest Expense

Dollars in millions							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Personnel expense	$	636	$	674	$	622	(5.6)	%	2.3	%
Net occupancy	66		67		65		(1.5)		1.5
Computer processing	101		102		95		(1.0)		6.3
Business services and professional fees	37		41		41		(9.8)		(9.8)
Equipment	20		20		22		—		(9.1)
Operating lease expense	17		17		21		—		(19.0)
Marketing	21		19		29		10.5		(27.6)



Other expense	181		203		181		(10.8)		.0
Total noninterest expense	$	1,079	$	1,143	$	1,076	(5.6)	%	.3	%

Compared to the second quarter of 2023, noninterest expense increased $3 million, driven by a $14 million increase in personnel expense, reflective of a higher stock price compared to the year-ago period. The increase was partly offset by lower marketing expense and lower business services and professional fees.

Compared to the first quarter of 2024, noninterest expense decreased by $64 million. The decrease was driven by a $38 million decline in personnel expense, related to lower incentive compensation and lower employee benefits. The decline in noninterest expense was also reflective of a higher FDIC special assessment in the prior quarter. For more information on the FDIC special assessment, see the Selected Items Impact on Earnings table on page 25.

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 4


BALANCE SHEET HIGHLIGHTS

Average Loans

Dollars in millions							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Commercial and industrial (a)	$	54,599	$	55,220	$	61,426	(1.1)	%	(11.1)	%
Other commercial loans	20,500		21,222		22,623		(3.4)		(9.4)
Total consumer loans	33,862		34,592		36,623		(2.1)		(7.5)
Total loans	$	108,961	$	111,034	$	120,672	(1.9)	%	(9.7)	%

(a)Commercial and industrial average loan balances include $218 million, $211 million, and $194 million of assets from commercial credit cards at June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

Average loans were $109.0 billion for the second quarter of 2024, a decrease of $11.7 billion compared to the second quarter of 2023, reflective of Key's planned balance sheet optimization efforts in 2023. The decline in average loans was mostly driven by a $9.0 billion decline in average commercial loans, driven by lower commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined by $2.8 billion, driven by declines across all consumer loan categories.

Compared to the first quarter of 2024, average loans decreased by $2.1 billion. Average commercial loans declined by $1.3 billion, primarily driven by a decrease in commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined $730 million, driven by declines across all consumer loan categories.


Average Deposits

Dollars in millions										Change 2Q24 vs.
	2Q24			1Q24			2Q23			1Q24		2Q23
Non-time deposits	$	128,161		$	128,448		$	127,687		(.2)	%	0.4	%

Time deposits	16,019			14,430			15,216			11.0		5.3
Total deposits	$	144,180		$	142,878		$	142,903		.9	%	.9	%

Cost of total deposits	2.28		%	2.20		%	1.49		%	N/A		N/A

N/A = Not Applicable

Average deposits totaled $144.2 billion for the second quarter of 2024, an increase of $1.3 billion compared to the year-ago quarter. The increase was reflective of growth in retail deposit balances and our focus on growing deposits across our commercial businesses.

Compared to the first quarter of 2024, average deposits increased by $1.3 billion. The increase was reflective of growth in retail certificate of deposit balances and stronger commercial deposit balances.


ASSET QUALITY

Dollars in millions										Change 2Q24 vs.
	2Q24			1Q24			2Q23			1Q24		2Q23
Net loan charge-offs	$	91		$	81		$	52		12.3	%	75.0	%
Net loan charge-offs to average total loans	.34		%	.29		%	.17		%	N/A		N/A
Nonperforming loans at period end	$	710		$	658		$	431		7.9		64.7
Nonperforming assets at period end	727			674			462			7.9		57.4
Allowance for loan and lease losses	1,547			1,542			1,480			0.3		4.5
Allowance for credit losses	1,833			1,823			1,771			0.5		3.5
Provision for credit losses	100			101			167			(1.0)		(40.1)

Allowance for loan and lease losses to nonperforming loans	218		%	234		%	343		%	N/A		N/A
Allowance for credit losses to nonperforming loans	258			277			411			N/A		N/A

N/A = Not Applicable

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 5

Key's provision for credit losses was $100 million, compared to $167 million in the second quarter of 2023 and $101 million in the first quarter of 2024. The decline from the year-ago period reflects a more stable economic outlook and the impact of balance sheet optimization efforts, partly offset by credit portfolio migration.

Net loan charge-offs for the second quarter of 2024 totaled $91 million, or 0.34% of average total loans. These results compare to $52 million, or 0.17%, for the second quarter of 2023 and $81 million, or 0.29%, for the first quarter of 2024. Key’s allowance for credit losses was $1.8 billion, or 1.71% of total period-end loans at June 30, 2024, compared to 1.49% at June 30, 2023, and 1.66% at March 31, 2024.

At June 30, 2024, Key’s nonperforming loans totaled $710 million, which represented 0.66% of period-end portfolio loans. These results compare to 0.36% at June 30, 2023, and 0.60% at March 31, 2024. Nonperforming assets at June 30, 2024, totaled $727 million, and represented 0.68% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.39% at June 30, 2023, and 0.61% at March 31, 2024.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2024.


Capital Ratios

	6/30/2024		3/31/2024		6/30/2023
Common Equity Tier 1 (a)	10.5	%	10.3	%	9.3	%

Tier 1 risk-based capital (a)	12.2		12.0		10.8
Total risk-based capital (a)	14.7		14.5		13.1
Tangible common equity to tangible assets (b)	5.2		5.0		4.5
Leverage (a)	9.1		9.1		8.7

(a)June 30, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

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

Key's regulatory capital position remained strong in the second quarter of 2024. As shown in the preceding table, at June 30, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 10.5% and 12.2%, respectively. Key's tangible common equity ratio was 5.2% at June 30, 2024.

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


Summary of Changes in Common Shares Outstanding

In thousands					Change 2Q24 vs.
		2Q24	1Q24	2Q23	1Q24		2Q23
Shares outstanding at beginning of period		942,776	936,564	935,229	.7	%	.8	%

Shares issued under employee compensation plans (net of cancellations and returns)		424	6,212	504	(93.2)		(16)
	Shares outstanding at end of period	943,200	942,776	935,733	—	%	.8	%

Key declared a dividend of $.205 per common share for the third quarter of 2024.

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 6

LINE OF BUSINESS RESULTS

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


Major Business Segments

Dollars in millions								Change 2Q24 vs.
		2Q24		1Q24		2Q23		1Q24		2Q23
Revenue from continuing operations (TE)
Consumer Bank		$	769	$	757	$	787	1.6	%	(2.3)	%
Commercial Bank		769		799		823		(3.8)		(6.6)
Other (a)		(12)		(23)		(15)		47.8		20.0


	Total	$	1,526	$	1,533	$	1,595	(.5)	%	(4.3)	%

Income (loss) from continuing operations attributable to Key
Consumer Bank		$	67	$	41	$	71	63.4	%	(5.6)	%
Commercial Bank		207		205		227		1.0		(8.8)
Other (a)		(1)		(27)		(12)		96.3		91.7


	Total	$	273	$	219	$	286	24.7	%	(4.5)	%

(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 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Summary of operations
Net interest income (TE)	$	535	$	532	$	544	.6	%	(1.7)	%
Noninterest income	234		225		243		4.0		(3.7)
Total revenue (TE)	769		757		787		1.6		(2.3)
Provision for credit losses	33		(2)		32		N/M		3.1
Noninterest expense	648		704		662		(8.0)		(2.1)
Income (loss) before income taxes (TE)	88		55		93		60.0		(5.4)
Allocated income taxes (benefit) and TE adjustments	21		14		22		50.0		(4.5)
Net income (loss) attributable to Key	$	67	$	41	$	71	63.4	%	(5.6)	%

Average balances
Loans and leases	$	39,174	$	39,919	$	42,297	(1.9)	%	(7.4)	%
Total assets	42,008		42,710		45,116		(1.6)		(6.9)
Deposits	85,397		84,075		81,406		1.6		4.9

Assets under management at period end	$	57,602	$	57,305	$	53,952	.5	%	6.8	%

TE = Taxable Equivalent

N/M = Not Meaningful

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 7


Additional Consumer Bank Data

Dollars in millions							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Noninterest income
Trust and investment services income	$	112	$	110	$	101	1.8	%	10.9	%
Service charges on deposit accounts	34		33		40		3.0		(15.0)
Cards and payments income	61		57		65		7.0		(6.2)
Consumer mortgage income	16		14		14		14.3		14.3
Other noninterest income	11		11		23		—		(52.2)
Total noninterest income	$	234	$	225	$	243	4.0	%	(3.7)	%

Average deposit balances
Money market deposits	$	30,229	$	29,875	$	27,217	1.2	%	11.1	%
Demand deposits	22,292		22,213		23,322		.4		(4.4)
Savings deposits	4,791		4,986		6,294		(3.9)		(23.9)

Time deposits	13,039		11,808		6,413		10.4		103.3
Noninterest-bearing deposits	15,047		15,193		18,160		(1.0)		(17.1)
Total deposits	$	85,398	$	84,075	$	81,406	1.6	%	4.9	%






Other data
Branches	946		957		965
Automated teller machines	1,199		1,214		1,255

Consumer Bank Summary of Operations (2Q24 vs. 2Q23)

•Key's Consumer Bank recorded net income attributable to Key of $67 million for the second quarter of 2024, compared to $71 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $9 million, or 1.7%, compared to the second quarter of 2023, primarily reflective of a decline in loan spreads as a result of lower loan balances

•Average loans and leases decreased $3.1 billion, or 7.4%, from the second quarter of 2023, driven by broad-based declines across loan categories

•Average deposits increased $4.0 billion, or 4.9%, from the second quarter of 2023, driven by strong retail deposit growth

•Provision for credit losses increased $1 million compared to the second quarter of 2023

•Noninterest income decreased $9 million from the year-ago quarter, driven by declines in service charges on deposit accounts and cards and payments income

•Noninterest expense decreased $14 million from the year-ago quarter, reflective of lower marketing expense


Commercial Bank

Dollars in millions							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Summary of operations
Net interest income (TE)	$	411	$	397	$	475	3.5	%	(13.5)	%
Noninterest income	358		402		348		(10.9)		2.9
Total revenue (TE)	769		799		823		(3.8)		(6.6)
Provision for credit losses	87		102		134		(14.7)		(35.1)
Noninterest expense	431		443		406		(2.7)		6.2
Income (loss) before income taxes (TE)	251		254		283		(1.2)		(11.3)
Allocated income taxes and TE adjustments	44		49		56		(10.2)		(21.4)


Net income (loss) attributable to Key	$	207	$	205	$	227	1.0	%	(8.8)	%

Average balances
Loans and leases	$	69,248	$	70,633	$	77,922	(2.0)	%	(11.1)	%
Loans held for sale	522		840		1,014		(37.9)		(48.5)
Total assets	78,328		80,000		87,759		(2.1)		(10.7)
Deposits	57,360		56,331		52,512		1.8	%	9.2	%

TE = Taxable Equivalent

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 8


Additional Commercial Bank Data

Dollars in millions							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Noninterest income
Trust and investment services income	$	27	$	26	$	25	3.8	%	8.0	%
Investment banking and debt placement fees	126		170		120		(25.9)		5.0
Cards and payments income	21		20		23		5.0		(8.7)
Service charges on deposit accounts	31		29		28		6.9		10.7
Corporate services income	61		63		77		(3.2)		(20.8)
Commercial mortgage servicing fees	61		56		50		8.9		22.0
Operating lease income and other leasing gains	21		24		24		(12.5)		(12.5)
Other noninterest income	10		13		1		(23.1)		900.0
Total noninterest income	$	358	$	401	$	348	(10.7)	%	2.9	%

Commercial Bank Summary of Operations (2Q24 vs. 2Q23)

•Key's Commercial Bank recorded net income attributable to Key of $207 million for the second quarter of 2024 compared to $227 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $64 million, or 13.5%, compared to the second quarter of 2023, primarily reflecting higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits, as well as a decline in loan balances

•Average loan and lease balances decreased $8.7 billion, or 11.1%, compared to the second quarter of 2023, driven by a decline in commercial and industrial loans

•Average deposit balances increased $4.8 billion compared to the second quarter of 2023, driven by our focus on growing deposits across our commercial businesses

•Provision for credit losses decreased $47 million compared to the second quarter of 2023, driven by a more stable economic outlook and the impact of balance sheet optimization efforts, partly offset by credit portfolio migration

•Noninterest income increased $10 million from the year-ago quarter, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees

•Noninterest expense increased $25 million compared to the second quarter of 2023, driven by higher business services and professional fees and broad-based increases across other expense categories

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 9

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

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $187 billion at June 30, 2024.

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

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 10


CONTACTS:

ANALYSTS			MEDIA
Brian Mauney			Susan Donlan
216.689.0521			216.471.3133
Brian_Mauney@KeyBank.com			Susan_E_Donlan@KeyBank.com

Halle Nichols			Beth Strauss
216.689.5305			216.471.2787
Halle_A_Nichols@KeyBank.com			Beth_A_Strauss@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, 2023 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

Notes to Editors:

A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on July 18, 2024. A replay of the call will be available on our website through July 18, 2025.

For up-to-date company information, media contacts, and facts and figures about Key’s lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 11

KeyCorp

Second Quarter 2024

Financial Supplement

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 12

Basis of Presentation

Use of Non-GAAP Financial Measures

This document contains GAAP financial measures and non-GAAP financial measures where management

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

Annualized Data

Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized”

basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.

Taxable Equivalent

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

Earnings Per Share Equivalent

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

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 13


Financial Highlights
(Dollars in millions, except per share amounts)
			Three months ended
			6/30/2024			3/31/2024			6/30/2023
Summary of operations
	Net interest income (TE)		$	899		$	886		$	986
	Noninterest income		627			647			609
		Total revenue (TE)	1,526			1,533			1,595
	Provision for credit losses		100			101			167
	Noninterest expense		1,079			1,143			1,076
	Income (loss) from continuing operations attributable to Key		273			219			286
	Income (loss) from discontinued operations, net of taxes		1			—			1
	Net income (loss) attributable to Key		274			219			287

	Income (loss) from continuing operations attributable to Key common shareholders		237			183			250
	Income (loss) from discontinued operations, net of taxes		1			—			1
	Net income (loss) attributable to Key common shareholders		238			183			251

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	.25		$	.20		$	.27
	Income (loss) from discontinued operations, net of taxes		—			—			—
	Net income (loss) attributable to Key common shareholders (a)		.25			.20			.27

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.25			.20			.27
	Income (loss) from discontinued operations, net of taxes — assuming dilution		—			—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)		.25			.20			.27

	Cash dividends declared		.205			.205			.205
	Book value at period end		13.09			12.84			12.18
	Tangible book value at period end		10.13			9.87			9.16
	Market price at period end		14.21			15.81			9.24

Performance ratios
	From continuing operations:
	Return on average total assets		.59		%	.47		%	.58		%
	Return on average common equity		7.96			6.06			8.42
	Return on average tangible common equity (b)		10.39			7.87			11.04
	Net interest margin (TE)		2.04			2.02			2.12
	Cash efficiency ratio (b)		70.2			74.0			66.8

	From consolidated operations:
	Return on average total assets		.59		%	.47		%	.58		%
	Return on average common equity		7.99			6.06			8.45
	Return on average tangible common equity (b)		10.43			7.87			11.09
	Net interest margin (TE)		2.04			2.02			2.12
	Loan to deposit (c)		74.0			76.6			83.0

Capital ratios at period end
	Key shareholders’ equity to assets		7.9		%	7.8		%	7.1		%
	Key common shareholders’ equity to assets		6.6			6.5			5.8
	Tangible common equity to tangible assets (b)		5.2			5.0			4.5
	Common Equity Tier 1 (d)		10.5			10.3			9.3
	Tier 1 risk-based capital (d)		12.2			12.0			10.8
	Total risk-based capital (d)		14.7			14.5			13.1
	Leverage (d)		9.1			9.1			8.7

Asset quality — from continuing operations
	Net loan charge-offs		$	91		$	81		$	52
	Net loan charge-offs to average loans		.34		%	.29		%	.17		%
	Allowance for loan and lease losses		$	1,547		$	1,542		$	1,480
	Allowance for credit losses		1,833			1,823			1,771
	Allowance for loan and lease losses to period-end loans		1.44		%	1.40		%	1.24		%
	Allowance for credit losses to period-end loans		1.71			1.66			1.49
	Allowance for loan and lease losses to nonperforming loans		218			234			343
	Allowance for credit losses to nonperforming loans		258			277			411
	Nonperforming loans at period-end		$	710		$	658		$	431
	Nonperforming assets at period-end		727			674			462
	Nonperforming loans to period-end portfolio loans		.66		%	.60		%	.36		%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.68			.61			.39

Trust assets
	Assets under management		$	57,602		$	57,305		$	53,952


Other data
	Average full-time equivalent employees		16,646			16,752			17,754
	Branches		946			957			965
	Taxable-equivalent adjustment		$	12		$	11		$	8

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 14



Financial Highlights (continued)
(Dollars in millions, except per share amounts)
		Six months ended
		6/30/2024			6/30/2023
Summary of operations
	Net interest income (TE)	$	1,785		$	2,092
	Noninterest income	1,274			1,217
	Total revenue (TE)	3,059			3,309
	Provision for credit losses	201			306
	Noninterest expense	2,222			2,252
	Income (loss) from continuing operations attributable to Key	492			597
	Income (loss) from discontinued operations, net of taxes	1			2
	Net income (loss) attributable to Key	493			599

	Income (loss) from continuing operations attributable to Key common shareholders	420			525
	Income (loss) from discontinued operations, net of taxes	1			2
	Net income (loss) attributable to Key common shareholders	421			527

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders	$	.45		$	.57
	Income (loss) from discontinued operations, net of taxes	—			—
	Net income (loss) attributable to Key common shareholders (a)	.45			.57

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	.45			.56
	Income (loss) from discontinued operations, net of taxes — assuming dilution	—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)	.45			.57

	Cash dividends paid	.41			.41

Performance ratios
	From continuing operations:
	Return on average total assets	.53		%	.62		%
	Return on average common equity	7.00			9.11
	Return on average tangible common equity (b)	9.12			12.06
	Net interest margin (TE)	2.03			2.29
	Cash efficiency ratio (b)	72.1			67.5

	From consolidated operations:
	Return on average total assets	.53		%	.62		%
	Return on average common equity	7.02			9.15
	Return on average tangible common equity (b)	9.14			12.10
	Net interest margin (TE)	2.03			2.29

Asset quality — from continuing operations
	Net loan charge-offs	$	172		$	97
	Net loan charge-offs to average total loans	.31		%	.16		%

Other data
	Average full-time equivalent employees	16,699			17,987

Taxable-equivalent adjustment		23			15

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

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

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

(d)June 30, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 15

GAAP to Non-GAAP Reconciliations

(Dollars in millions)

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

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

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

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

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


	Three months ended									Six months ended
	6/30/2024			3/31/2024			6/30/2023			6/30/2024			6/30/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)	$	14,789		$	14,547		$	13,844
Less: Intangible assets (a)	2,793			2,799			2,826
Preferred Stock (b)	2,446			2,446			2,446
Tangible common equity (non-GAAP)	$	9,550		$	9,302		$	8,572
Total assets (GAAP)	$	187,450		$	187,485		$	195,037
Less: Intangible assets (a)	2,793			2,799			2,826
Tangible assets (non-GAAP)	$	184,657		$	184,686		$	192,211
Tangible common equity to tangible assets ratio (non-GAAP)	5.17		%	5.04		%	4.46		%




Pre-provision net revenue
Net interest income (GAAP)	$	887		$	875		$	978		$	1,762		$	2,077
Plus: Taxable-equivalent adjustment	12			11			8			23			15
Noninterest income	627			647			609			1,274			1,217
Less: Noninterest expense	1,079			1,143			1,076			2,222			2,252
Pre-provision net revenue from continuing operations (non-GAAP)	$	447		$	390		$	519		$	837		$	1,679
Average tangible common equity
Average Key shareholders' equity (GAAP)	$	14,474		$	14,649		$	14,412		$	14,561		$	14,116
Less: Intangible assets (average) (c)	2,796			2,802			2,831			2,798			2,836
Preferred stock (average)	2,500			2,500			2,500			2,500			2,500
Average tangible common equity (non-GAAP)	$	9,178		$	9,347		$	9,081		$	9,263		$	8,780
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	237		$	183		$	250		$	420		$	525


Average tangible common equity (non-GAAP)	9,178			9,347			9,081			9,263			8,780

Return on average tangible common equity from continuing operations (non-GAAP)	10.39		%	7.87		%	11.04		%	9.12		%	12.06		%

Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	238		$	183		$	251		$	421		$	527
Average tangible common equity (non-GAAP)	9,178			9,347			9,081			9,263			8,780

Return on average tangible common equity consolidated (non-GAAP)	10.43		%	7.87		%	11.09		%	9.14		%	12.10		%

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 16


GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
	Three months ended									Six months ended
	6/30/2024			3/31/2024			6/30/2023			6/30/2024			6/30/2023













































Cash efficiency ratio
Noninterest expense (GAAP)	$	1,079		$	1,143		$	1,076		$	2,222		$	2,252
Less: Intangible asset amortization	7			8			10			15			20
Adjusted noninterest expense (non-GAAP)	$	1,072		$	1,135		$	1,066		$	2,207		$	2,232



Net interest income (GAAP)	$	887		$	875		$	978		$	1,762		$	2,077
Plus: Taxable-equivalent adjustment	12			11			8			23			15
Net interest income TE (non-GAAP)	899			886			986			1,785			2,092
Noninterest income (GAAP)	627			647			609			1,274			1,217
Total taxable-equivalent revenue (non-GAAP)	$	1,526		$	1,533		$	1,595		$	3,059		$	3,309



Cash efficiency ratio (non-GAAP)	70.2		%	74.0		%	66.8		%	72.1		%	67.5		%

(a)For the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, intangible assets exclude less than $1 million, $1 million, and $1 million, respectively, of period-end purchased credit card receivables.

(b)Net of capital surplus.

(c)For the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, average intangible assets exclude less than $1 million, $1 million, and $1 million, respectively, of average purchased credit card receivables.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 17


Consolidated Balance Sheets
(Dollars in millions)

			6/30/2024		3/31/2024		6/30/2023
Assets
	Loans		$	107,078	$	109,885	$	119,011
	Loans held for sale		517		228		1,130
	Securities available for sale		37,460		37,298		37,908
	Held-to-maturity securities		7,968		8,272		9,189
	Trading account assets		1,219		1,171		1,177
	Short-term investments		15,536		13,205		8,959
	Other investments		1,259		1,247		1,474
		Total earning assets	171,037		171,306		178,848
	Allowance for loan and lease losses		(1,547)		(1,542)		(1,480)
	Cash and due from banks		1,326		1,247		758
	Premises and equipment		631		650		652
	Goodwill		2,752		2,752		2,752
	Other intangible assets		41		48		75
	Corporate-owned life insurance		4,382		4,392		4,378
	Accrued income and other assets		8,532		8,314		8,668
	Discontinued assets		296		318		386
		Total assets	$	187,450	$	187,485	$	195,037

Liabilities
	Deposits in domestic offices:





		Interest-bearing deposits	$	117,570	$	114,593	$	111,766
		Noninterest-bearing deposits	28,150		29,638		33,366
		Total deposits	145,720		144,231		145,132
	Federal funds purchased and securities sold under repurchase agreements		25		27		1,702
	Bank notes and other short-term borrowings		5,292		2,896		6,949
	Accrued expense and other liabilities		4,755		5,008		5,339
	Long-term debt		16,869		20,776		22,071
		Total liabilities	172,661		172,938		181,193

Equity
	Preferred stock		2,500		2,500		2,500
	Common shares		1,257		1,257		1,257
	Capital surplus		6,185		6,164		6,231
	Retained earnings		15,706		15,662		15,759
	Treasury stock, at cost		(5,715)		(5,722)		(5,859)
	Accumulated other comprehensive income (loss)		(5,144)		(5,314)		(6,044)
		Key shareholders’ equity	14,789		14,547		13,844


Total liabilities and equity			$	187,450	$	187,485	$	195,037

Common shares outstanding (000)			943,200		942,776		935,733

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 18


Consolidated Statements of Income
(Dollars in millions, except per share amounts)
			Three months ended						Six months ended
			6/30/2024		3/31/2024		6/30/2023		6/30/2024		6/30/2023
Interest income
	Loans		$	1,524	$	1,538	$	1,576	$	3,062	$	3,052
	Loans held for sale		8		14		17		22		30
	Securities available for sale		259		232		194		491		388
	Held-to-maturity securities		73		75		81		148		155
	Trading account assets		16		14		15		30		27
	Short-term investments		192		142		111		334		153
	Other investments		16		17		16		33		29
		Total interest income	2,088		2,032		2,010		4,120		3,834
Interest expense
	Deposits		817		782		531		1,599		881
	Federal funds purchased and securities sold under repurchase agreements		1		1		48		2		70
	Bank notes and other short-term borrowings		51		46		104		97		182
	Long-term debt		332		328		349		660		624
		Total interest expense	1,201		1,157		1,032		2,358		1,757
Net interest income			887		875		978		1,762		2,077
Provision for credit losses			100		101		167		201		306
Net interest income after provision for credit losses			787		774		811		1,561		1,771
Noninterest income
	Trust and investment services income		139		136		126		275		254
	Investment banking and debt placement fees		126		170		120		296		265
	Cards and payments income		85		77		85		162		166
	Service charges on deposit accounts		66		63		69		129		136
	Corporate services income		68		69		86		137		162
	Commercial mortgage servicing fees		61		56		50		117		96
	Corporate-owned life insurance income		34		32		32		66		61
	Consumer mortgage income		16		14		14		30		25
	Operating lease income and other leasing gains		21		24		23		45		48
	Other income		11		6		4		17		4
		Total noninterest income	627		647		609		1,274		1,217
Noninterest expense
	Personnel		636		674		622		1,310		1,323
	Net occupancy		66		67		65		133		135
	Computer processing		101		102		95		203		187
	Business services and professional fees		37		41		41		78		86
	Equipment		20		20		22		40		44
	Operating lease expense		17		17		21		34		41
	Marketing		21		19		29		40		50



	Other expense		181		203		181		384		386
		Total noninterest expense	1,079		1,143		1,076		2,222		2,252
Income (loss) from continuing operations before income taxes			335		278		344		613		736
	Income taxes		62		59		58		121		139
Income (loss) from continuing operations			273		219		286		492		597
	Income (loss) from discontinued operations, net of taxes		1		—		1		1		2
Net income (loss)			274		219		287		493		599

Net income (loss) attributable to Key			$	274	$	219	$	287	$	493	$	599

Income (loss) from continuing operations attributable to Key common shareholders			$	237	$	183	$	250	$	420	$	525
Net income (loss) attributable to Key common shareholders			238		183		251		421		527
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.25	$	.20	$	.27	$	.45	$	.57
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			.25		.20		.27		.45		.57
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.25	$	.20	$	.27	$	.45	$	.56
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			.25		.20		.27		.45		.57

Cash dividends declared per common share			$	.205	$	.205	$	.205	$	.410	$	.410

Weighted-average common shares outstanding (000)			931,726		929,692		926,741		930,776		926,807
	Effect of common share options and other stock awards		6,761		7,319		3,713		7,040		5,513
Weighted-average common shares and potential common shares outstanding (000) (b)			938,487		937,011		930,454		937,816		932,320

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

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

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 19


Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		Second Quarter 2024						First Quarter 2024						Second Quarter 2023
		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)	$	54,599	$	860	6.34	%	$	55,220	$	853	6.22	%	$	61,426	$	881	5.76	%
	Real estate — commercial mortgage	14,287		217		6.10		14,837		229		6.21		16,226		235		5.80
	Real estate — construction	3,020		56		7.51		3,039		57		7.50		2,641		44		6.64
	Commercial lease financing	3,193		28		3.46		3,346		27		3.23		3,756		29		3.07
	Total commercial loans	75,099		1,161		6.22		76,442		1,166		6.14		84,049		1,189		5.67
	Real estate — residential mortgage	20,515		169		3.30		20,814		171		3.29		21,659		176		3.25
	Home equity loans	6,817		102		5.98		7,024		104		5.97		7,620		109		5.75
	Other consumer loans	5,597		70		5.00		5,800		72		4.99		6,360		77		4.86
	Credit cards	933		34		14.63		954		36		14.93		984		33		13.49

	Total consumer loans	33,862		375		4.44		34,592		383		4.44		36,623		395		4.33
	Total loans	108,961		1,536		5.66		111,034		1,549		5.61		120,672		1,584		5.26
	Loans held for sale	599		8		5.42		888		14		6.15		1,087		17		6.16
	Securities available for sale (b), (e)	36,764		259		2.42		37,089		232		2.17		38,899		194		1.74
	Held-to-maturity securities (b)	8,123		73		3.59		8,423		75		3.57		9,371		81		3.47
	Trading account assets	1,231		16		5.38		1,110		14		5.21		1,244		15		4.64
	Short-term investments	13,729		192		5.62		10,243		142		5.59		7,798		111		5.73
	Other investments (e)	1,234		16		5.19		1,236		17		5.39		1,566		16		4.03
	Total earning assets	170,641		2,100		4.77		170,023		2,043		4.67		180,637		2,018		4.34
	Allowance for loan and lease losses	(1,534)						(1,505)						(1,379)
	Accrued income and other assets	17,476						17,350						17,202
	Discontinued assets	305						329						394
	Total assets	$	186,888					$	186,197					$	196,854
Liabilities
	Money market deposits	$	39,364	$	290	2.97	%	$	37,659	$	264	2.82	%	$	32,419	$	123	1.53	%
	Demand deposits	54,629		340		2.50		56,137		357		2.56		53,569		256		1.91
	Savings deposits	5,189		2		.19		5,253		1		.07		6,592		1		.04

	Time deposits	16,019		185		4.64		14,430		160		4.45		15,216		151		3.99
	Total interest-bearing deposits	115,201		817		2.85		113,479		782		2.77		107,796		531		1.98
	Federal funds purchased and securities sold under repurchase agreements	124		1		4.76		106		1		4.03		3,767		48		5.07
	Bank notes and other short-term borrowings	3,617		51		5.57		3,325		46		5.63		7,982		104		5.22
	Long-term debt (f)	19,219		332		6.91		19,537		328		6.72		22,284		349		6.26
	Total interest-bearing liabilities	138,161		1,201		3.49		136,447		1,157		3.41		141,829		1,032		2.91
	Noninterest-bearing deposits	28,979						29,399						35,107
	Accrued expense and other liabilities	4,969						5,373						5,112
	Discontinued liabilities (f)	305						329						394
	Total liabilities	$	172,414					$	171,548					$	182,442
Equity
	Key shareholders’ equity	$	14,474					$	14,649					$	14,412
	Noncontrolling interests	—						—						—
	Total equity	14,474						14,649						14,412
	Total liabilities and equity	$	186,888					$	186,197					$	196,854
Interest rate spread (TE)						1.28	%					1.26	%					1.43	%
Net interest income (TE) and net interest margin (TE)				$	899	2.04	%			$	886	2.02	%			$	986	2.12	%
TE adjustment (b)				12						11						8
	Net interest income, GAAP basis			$	887					$	875					$	978

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

(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023.

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

(d)Commercial and industrial average balances include $218 million, $211 million, and $194 million of assets from commercial credit cards for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

(e)Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $42.8 billion, $42.7 billion, and $44.6 billion for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. Yield based on the fair value of securities available for sale was 2.82%, 2.50%, and 2.00% for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

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

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

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 20



Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		Six months ended June 30, 2024						Six months ended June 30, 2023
		Average				Yield/		Average				Yield/
		Balance		Interest (a)		Rate (a)		Balance		Interest (a)		Rate (a)
Assets
	Loans: (b), (c)
	Commercial and industrial (d)	$	54,909	$	1,714	6.28	%	$	60,857	$	1,688	5.59	%
	Real estate — commercial mortgage	14,562		446		6.16		16,347		459		5.66
	Real estate — construction	3,030		113		7.51		2,583		83		6.47
	Commercial lease financing	3,269		55		3.34		3,770		56		2.97
	Total commercial loans	75,770		2,328		6.18		83,557		2,286		5.51
	Real estate — residential mortgage	20,664		340		3.30		21,548		348		3.23
	Home equity loans	6,921		206		5.98		7,749		215		5.61
	Other consumer loans	5,699		142		5.00		6,419		153		4.78
	Credit cards	943		69		14.78		984		65		13.43

	Total consumer loans	34,227		757		4.44		36,700		781		4.28
	Total loans	109,997		3,085		5.64		120,257		3,067		5.14
	Loans held for sale	744		22		5.86		997		30		6.02
	Securities available for sale (b), (e)	36,926		491		2.29		39,034		388		1.73
	Held-to-maturity securities (b)	8,273		148		3.58		9,152		155		3.40
	Trading account assets	1,171		30		5.30		1,123		27		4.74
	Short-term investments	11,986		334		5.61		5,677		153		5.44
	Other investments (e)	1,235		33		5.29		1,438		29		4.02
	Total earning assets	170,332		4,143		4.72		177,678		3,849		4.22
	Allowance for loan and lease losses	(1,519)						(1,357)
	Accrued income and other assets	17,412						17,351
	Discontinued assets	317						406
	Total assets	$	186,542					$	194,078
Liabilities
	Money market deposits	$	38,512	$	554	2.89		$	33,110	$	201	1.23
	Other demand deposits	55,383		697		2.53		52,993		440		1.67
	Savings deposits	5,221		3		.13		6,967		1		.04

	Time deposits	15,225		345		4.55		12,870		239		3.75
	Total interest-bearing deposits	114,341		1,599		2.81		105,940		881		1.68
	Federal funds purchased and securities sold under repurchase agreements	115		2		4.42		2,932		70		4.81
	Bank notes and other short-term borrowings	3,471		97		5.60		7,293		182		5.03
	Long-term debt (f)	19,378		660		6.81		21,218		624		5.88
	Total interest-bearing liabilities	137,305		2,358		3.45		137,383		1,757		2.57
	Noninterest-bearing deposits	29,189						37,213
	Accrued expense and other liabilities	5,170						4,960
	Discontinued liabilities (f)	317						406
	Total liabilities	$	171,981					$	179,962
Equity
	Key shareholders’ equity	$	14,561					$	14,116
	Noncontrolling interests	—						—
	Total equity	14,561						14,116
	Total liabilities and equity	$	186,542					$	194,078
Interest rate spread (TE)						1.27	%					1.65	%
Net interest income (TE) and net interest margin (TE)				$	1,785	2.03	%			$	2,092	2.29	%
TE adjustment (b)				23						15
	Net interest income, GAAP basis			$	1,762					$	2,077

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

(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the six months ended June 30, 2024, and June 30, 2023, respectively.

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

(d)Commercial and industrial average balances include $214 million and $186 million of assets from commercial credit cards for the six months ended June 30, 2024, and June 30, 2023, respectively.

(e)Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $42.8 billion and $45.0 billion for the six months ended June 30, 2024, and June 30, 2023, respectively. Yield based on the fair value of securities available for sale was 2.66% and 1.99% for the six months ended June 30, 2024, and June 30, 2023, respectively.

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

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 21


Noninterest Expense
(Dollars in millions)

	Three months ended						Six months ended
	6/30/2024		3/31/2024		6/30/2023		6/30/2024		6/30/2023
Personnel (a)	$	636	$	674	$	622	$	1,310	$	1,323
Net occupancy	66		67		65		133		135
Computer processing	101		102		95		203		187
Business services and professional fees	37		41		41		78		86
Equipment	20		20		22		40		44
Operating lease expense	17		17		21		34		41
Marketing	21		19		29		40		50



Other expense	181		203		181		384		386
Total noninterest expense	$	1,079	$	1,143	$	1,076	$	2,222	$	2,252


Average full-time equivalent employees (b)	16,646		16,752		17,754		16,699		17,987

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

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


Personnel Expense
(Dollars in millions)

	Three months ended						Six months ended
	6/30/2024		3/31/2024		6/30/2023		6/30/2024		6/30/2023
Salaries and contract labor	$	394	$	389	$	416	$	783	$	835
Incentive and stock-based compensation	143		159		93		302		245
Employee benefits	98		126		103		224		202
Severance	1		—		10		1		41
Total personnel expense	$	636	$	674	$	622	$	1,310	$	1,323

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 22


Loan Composition
(Dollars in millions)

							Change 6/30/2024 vs.
	6/30/2024		3/31/2024		6/30/2023		3/31/2024		6/30/2023
Commercial and industrial (a)(b)	$	53,129	$	54,793	$	60,059	(3.0)	%	(11.5)	%
Commercial real estate:
Commercial mortgage	14,218		14,540		16,048		(2.2)		(11.4)
Construction	3,077		3,013		2,646		2.1		16.3
Total commercial real estate loans	17,295		17,553		18,694		(1.5)		(7.5)
Commercial lease financing (b)	3,101		3,305		3,801		(6.2)		(18.4)
Total commercial loans	73,525		75,651		82,554		(2.8)		(10.9)
Residential — prime loans:
Real estate — residential mortgage	20,380		20,704		21,637		(1.6)		(5.8)
Home equity loans	6,729		6,905		7,529		(2.5)		(10.6)
Total residential — prime loans	27,109		27,609		29,166		(1.8)		(7.1)
Other consumer loans	5,514		5,690		6,290		(3.1)		(12.3)
Credit cards	930		935		1,001		(.5)		(7.1)

Total consumer loans	33,553		34,234		36,457		(2.0)		(8.0)
Total loans (c), (d)	$	107,078	$	109,885	$	119,011	(2.6)	%	(10.0)	%

(a)Loan balances include $217 million, $214 million, and $200 million of commercial credit card balances at June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $285 million at June 30, 2024, $349 million at March 31, 2024 and no amounts held as collateral for a secured borrowing at June 30, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $5 million, $6 million, and $5 million at June 30, 2024, March 31, 2024, and June 30, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $291 million at June 30, 2024, $313 million at March 31, 2024, and $381 million at June 30, 2023, related to the discontinued operations of the education lending business.

(d)Accrued interest of $502 million, $522 million, and $500 million at June 30, 2024, March 31, 2024, and June 30, 2023, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.


Loans Held for Sale Composition
(Dollars in millions)

							Change 6/30/2024 vs.
	6/30/2024		3/31/2024		6/30/2023		3/31/2024		6/30/2023
Commercial and industrial	$	72	$	—	$	221	N/M		(67.4)	%
Real estate — commercial mortgage	354		155		829		128.4		(57.3)

Commercial lease financing	—		—		13		—		(100.0)
Real estate — residential mortgage	91		73		67		24.7		35.8

Total loans held for sale	$	517	$	228	$	1,130	126.8	%	(54.2)	%

N/M = Not Meaningful


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

	2Q24		1Q24		4Q23		3Q23		2Q23
Balance at beginning of period	$	228	$	483	$	730	$	1,130	$	1,211
New originations	1,532		1,738		1,879		3,035		1,798
Transfers from (to) held to maturity, net	(1)		(105)		(31)		(94)		(52)
Loan sales	(1,234)		(1,893)		(2,095)		(3,312)		(1,798)
Loan draws (payments), net	(7)		4		—		(29)		(28)
Valuation and other adjustments	(1)		1		—		—		(1)
Balance at end of period	$	517	$	228	$	483	$	730	$	1,130

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 23


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

	Three months ended									Six months ended
	6/30/2024			3/31/2024			6/30/2023			6/30/2024			6/30/2023
Average loans outstanding	$	108,961		$	111,034		$	120,672		$	109,997		$	120,257


Allowance for loan and lease losses at the beginning of the period	$	1,542		$	1,508		$	1,380		$	1,508		$	1,337
Loans charged off:
Commercial and industrial	86			62			42			148			77

Real estate — commercial mortgage	10			5			9			15			14
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	10			5			9			15			14
Commercial lease financing	6			—			1			6			—
Total commercial loans	102			67			52			169			91
Real estate — residential mortgage	1			1			1			2			1
Home equity loans	—			1			2			1			3
Other consumer loans	16			16			12			32			23
Credit cards	12			12			9			24			18

Total consumer loans	29			30			24			59			45
Total loans charged off	131			97			76			228			136
Recoveries:
Commercial and industrial	31			8			15			39			23

Real estate — commercial mortgage	1			—			1			1			1
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	1			—			1			1			1
Commercial lease financing	3			2			2			5			3
Total commercial loans	35			10			18			45			27
Real estate — residential mortgage	1			2			1			3			2
Home equity loans	—			1			1			1			2
Other consumer loans	2			2			2			4			5
Credit cards	2			1			2			3			3

Total consumer loans	5			6			6			11			12
Total recoveries	40			16			24			56			39
Net loan charge-offs	(91)			(81)			(52)			(172)			(97)
Provision (credit) for loan and lease losses	96			115			152			211			240

Allowance for loan and lease losses at end of period	$	1,547		$	1,542		$	1,480		$	1,547		$	1,480




Liability for credit losses on lending-related commitments at beginning of period	$	281		$	296		$	276		$	296		$	225
Provision (credit) for losses on lending-related commitments	4			(14)			15			(10)			66
Other	1			(1)			—			—			—
Liability for credit losses on lending-related commitments at end of period (a)	$	286		$	281		$	291		$	286		$	291

Total allowance for credit losses at end of period	$	1,833		$	1,823		$	1,771		$	1,833		$	1,771

Net loan charge-offs to average total loans	.34		%	.29		%	.17		%	.31		%	.16		%
Allowance for loan and lease losses to period-end loans	1.44			1.40			1.24			1.44			1.24
Allowance for credit losses to period-end loans	1.71			1.66			1.49			1.71			1.49
Allowance for loan and lease losses to nonperforming loans	218			234			343			218			343
Allowance for credit losses to nonperforming loans	258			277			411			258			411

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

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

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 24


Asset Quality Statistics From Continuing Operations
(Dollars in millions)
	2Q24			1Q24			4Q23			3Q23			2Q23
Net loan charge-offs	$	91		$	81		$	76		$	71		$	52
Net loan charge-offs to average total loans	.34		%	.29		%	.26		%	.24		%	.17		%
Allowance for loan and lease losses	$	1,547		$	1,542		$	1,508		$	1,488		$	1,480
Allowance for credit losses (a)	1,833			1,823			1,804			1,778			1,771
Allowance for loan and lease losses to period-end loans	1.44		%	1.40		%	1.34		%	1.29		%	1.24		%
Allowance for credit losses to period-end loans	1.71			1.66			1.60			1.54			1.49
Allowance for loan and lease losses to nonperforming loans	218			234			263			327			343
Allowance for credit losses to nonperforming loans	258			277			314			391			411
Nonperforming loans at period end	$	710		$	658		$	574		$	455		$	431
Nonperforming assets at period end	727			674			591			471			462
Nonperforming loans to period-end portfolio loans	.66		%	.60		%	.51		%	.39		%	.36		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.68			.61			.52			.41			.39

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


Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023
Commercial and industrial	$	358		$	360		$	297		$	214		$	188

Real estate — commercial mortgage	173			113			100			63			65
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	173			113			100			63			65
Commercial lease financing	1			1			—			1			1
Total commercial loans	532			474			397			278			254
Real estate — residential mortgage	77			79			71			72			73
Home equity loans	91			95			97			97			97
Other Consumer loans	4			4			4			4			4
Credit cards	6			6			5			4			3

Total consumer loans	178			184			177			177			177
Total nonperforming loans (a)	710			658			574			455			431
OREO	17			16			17			16			15
Nonperforming loans held for sale	—			—			—			—			16
Other nonperforming assets	—			—			—			—			—
Total nonperforming assets	$	727		$	674		$	591		$	471		$	462
Accruing loans past due 90 days or more	$	137		$	119		$	107		$	52		$	73
Accruing loans past due 30 through 89 days	282			242			222			178			139
Nonperforming assets from discontinued operations — education lending business	3			2			3			2			2
Nonperforming loans to period-end portfolio loans	.66		%	.60		%	.51		%	.39		%	.36		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.68			.61			.52			.41			.39


Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
	2Q24		1Q24		4Q23		3Q23		2Q23
Balance at beginning of period	$	658	$	574	$	455	$	431	$	416
Loans placed on nonaccrual status	317		243		297		159		169

Charge-offs	(131)		(97)		(95)		(87)		(76)
Loans sold	(22)		(5)		(9)		(4)		(23)
Payments	(76)		(35)		(56)		(25)		(20)
Transfers to OREO	(1)		(2)		(2)		(3)		(2)


Loans returned to accrual status	(35)		(20)		(16)		(16)		(33)
Balance at end of period	$	710	$	658	$	574	$	455	$	431

KeyCorp Reports Second Quarter 2024 Profit

July 18, 2024

Page 25


Line of Business Results
(Dollars in millions)

																Change 2Q24 vs.
	2Q24			1Q24			4Q23			3Q23			2Q23			1Q24		2Q23
Consumer Bank
Summary of operations
Total revenue (TE)	$	769		$	757		$	770		$	775		$	787		1.6	%	(2.3)	%
Provision for credit losses	33			(2)			5			14			32			N/M		3.1
Noninterest expense	648			704			779			676			662			(8.0)		(2.1)
Net income (loss) attributable to Key	67			41			(11)			65			71			63.4		(5.6)
Average loans and leases	39,174			39,919			40,763			41,610			42,297			(1.9)		(7.4)
Average deposits	85,397			84,075			83,557			82,683			81,406			1.6		4.9
Net loan charge-offs	45			44			40			36			32			2.3		40.6
Net loan charge-offs to average total loans	.46		%	.44		%	.39		%	.34		%	.30		%	4.5		53.3
Nonperforming assets at period end	$	190		$	196		$	190		$	190		$	193		(3.1)		(1.6)
Return on average allocated equity	7.93		%	4.69		%	(1.28)		%	7.42		%	8.00		%	69.1		(.9)


Commercial Bank
Summary of operations
Total revenue (TE)	$	769		$	799		$	804		$	809		$	823		(3.8)	%	(6.6)	%
Provision for credit losses	87			102			96			68			134			(14.7)		(35.1)
Noninterest expense	431			443			526			433			406			(2.7)		6.2
Net income (loss) attributable to Key	207			205			150			240			227			1.0		(8.8)
Average loans and leases	69,248			70,633			72,713			75,598			77,922			(2.0)		(11.1)
Average loans held for sale	522			840			635			1,268			1,014			(37.9)		(48.5)
Average deposits	57,360			56,331			58,196			56,078			52,512			1.8		9.2
Net loan charge-offs	64			37			35			35			20			73.0		220.0
Net loan charge-offs to average total loans	.37		%	.21		%	.19		%	.18		%	.10		%	76.2		270.0
Nonperforming assets at period end	$	537		$	479		$	401		$	281		$	269		12.1		99.6
Return on average allocated equity	8.31		%	8.24		%	5.88		%	9.11		%	8.61		%	.8		(3.5)

TE = Taxable Equivalent; N/M = Not Meaningful


Selected Items Impact on Earnings(a)
(Dollars in millions, except per share amounts)
	Pretax(b)		After-tax at marginal rate(b)
Quarter to date results	Amount		Net Income		EPS(c)
Three months ended June 30, 2024


FDIC special assessment (other expense)(d)	$	(5)	$	(4)	$	—


Three months ended March 31, 2024


FDIC special assessment (other expense)(d)	(29)		(22)		(0.02)



Three months ended June 30, 2023
No items	—		—		—

(a)Includes items impacting results or trends during the period but are not considered non-GAAP adjustments.

(b)Favorable (unfavorable) impact.

(c)Impact to EPS reflected on a fully diluted basis.

(d)In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024. In June 2024, Key received its quarterly invoice from the FDIC which included amounts due under the special assessment. As such, Key recorded an additional expense in the second quarter of 2024 to true-up initial estimates to the invoiced amount.

KeyCorp (KEY) 8-KAverage deposits up $1.3 billion compared to the prior quarter and the second quarter of 2023, with client deposits up 5% year-over-year