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

KeyCorp Second Quarter 2024 Earnings Review July 18, 2024 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer

 

2 Note: All metrics are as of 6/30/2024 unless otherwise noted (1) 1H24 Annualized growth; (2) 6/30/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision ✓Enhanced underwrite-to- distribute platform through partnership with Blackstone+5% YoY Client Deposit Growth Differentiated Fee Businesses Focused on Targeted Scale Driving New Relationships Focused on Primacy +3% YoY Increase in noninterest incom Strengthening the Balance Sheet 34bps NCOs / Average Loans Risk Management Excellence Momentum across Wealth Management, Payments, and Commercial Mortgage Servicing IB pipelines continue to build +3.3% Net New Relationship Household Growth(1) 2Q24 Results 68bps NPAs / Period-end Loans 10.5% Common Equity Tier 1(2), up 120bps year-over-year Continued to reduce reliance on wholesale funding and brokered deposits

 

Financial Review

 

4 Reported QoQ▪ EPS of $0.25, up 25% sequentially ▪ Net interest income up 1.5% QoQ driven by fixed-rate asset repricing, partly offset by higher funding costs and impact of forward-starting swaps ▪ Noninterest income up 3% YoY primarily driven by trust and investment services and commercial mortgage servicing fees ▪ Expenses essentially flat YoY ▪ Provision for Credit Losses of $100MM, down 1% QoQ and included $91MM of NCOs and ~$10MM build to the allowance for credit losses ▪ CET1 increased 23 basis points QoQ to 10.5%, and tangible book value per common share increased ~3% sequentially YoY EPS $0.25 25.0% (7.4)% Net Interest Income (TE) $899 1.5% (8.8)% Noninterest Income $627 (3.1)% 3.0% Revenue $1,526 (0.5)% (4.3)% Noninterest Expense $1,079 (5.6)% 0.3% Provision for Credit Losses $100 (1.0)% (40.1)% CET1(1) 10.5% 23 bps 122 bps $ in millions, excluding EPS From continuing operations, unless otherwise noted (1) 6/30/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (2) Non-GAAP measure: see appendix for reconciliation Tangible Book Value per Common Share $10.13 2.6% 10.6% Cash Efficiency Ratio(2) 70.2% (380) bps 340 bps ROTCE(2) 10.39% 252 bps (65) bps 2Q24 Highlights

 

$84.0 $81.6 $78.6 $76.4 $75.1 $36.6 $36.1 $35.3 $34.6 $33.9 1.00% 2Q23 3Q23 4Q23 1Q24 2Q24 $109.0 5 ▪ Average loans down 1.9% from 1Q24 − Decline in commercial loans (-$1.3Bn), driven by lower C&I and commercial real estate loans − Decline in average consumer loans (-$730MM), driven by declines across all consumer loan categories vs. Prior Quarter Portfolio Highlights ▪ ~63% variable rate, or 46% after adjusting for loans swapped to a fixed rate; loan yields would have been 6.4% in second quarter 2024 excluding the impact from hedges(3) ▪ ~89% of commercial loans are made to clients who do additional business with Key(4) ▪ 53% of the C&I portfolio is investment grade; Consumer book has a 766 weighted average FICO at origination ▪ C&I loan utilization: 31% in 2Q24 QoQ Avg Balances by Type C&I Commercial Leases 1Q24 2Q24Other Consumer (2) CRE(1) Residential Mortgage Note: Graphs may not foot due to rounding (1) CRE includes real estate – commercial mortgage and real estate – construction; (2) Other Consumer includes home equity loans, credit cards, and other consumer loans; (3) Non-GAAP measure: see appendix for reconciliation; (4) Defined as capital markets, payments or deposits Average Loans Consumer Commercial Loan Yield $120.7 $117.6 $113.9 $111.0 $ in billions 5.26% 5.41% 5.51% 5.61% 5.66% EOP Loans: $107.1Bn

 

vs. Prior Quarter Deposit Franchise Highlights 6 ▪ Average deposits were up 1% from from 1Q24 − Growth in retail CD balances and commercial deposits − Included ~$200MM decline in brokered CDs ▪ Total deposit costs rose by 8 basis points − Reflects increase in time deposits and continued deposit mix shift − Cumulative total interest-bearing deposit beta: ~53%(2) ▪ Client deposits up 5% year-over-year ▪ Commercial deposit balances driven by relationship clients − 76% of commercial deposits in core operating accounts − 94% of commercial deposits have an operating account ▪ Loan-to-deposit ratio: 74%(3) 2Q24 Product Mix Time deposits Savings Noninterest- bearing Demand 38% 20% 27% 4% 2Q24 Interest-bearing Mix Consumer 21% 11% MMDA Other Commercial / Treasury Managed Indexed Commercial Wealth 55% 6% ~30% ~10% Note: Graphs may not foot due to rounding (1) Other includes treasury brokered deposits and other deposits; (2) Cumulative beta indexed to 4Q21; (3) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits Average Deposits Consumer Other(1) Commercial $81.4 $82.7 $83.6 $84.1 $85.4 $52.5 $56.1 $58.2 $56.3 $57.4 $9.0 $6.0 $3.3 $2.5 $1.4 2Q23 3Q23 4Q23 1Q24 2Q24 $144.8$142.9 $145.1 $142.9 Total deposit cost $ in billions 1.49% 1.88% 2.06% 2.20% 2.28% $144.2

 

2Q23 3Q23 4Q23 1Q24 2Q24 TE = Taxable equivalent Note: NIM Walk may not foot due to rounding 7 $923 $886 NII Walk (TE) NIM Walk (TE) 2.12% $986 $928 2.01% 2.07% 2.02% Swaps & UST Roll-off 1Q24 2Q24 Net Interest Income and Margin (TE) From continuing operations, $ in millions $899 2.04% Lower Loans (remixed into ST investments) Deposit Cost & Mix ~$39 $(18) Other (3)bps Increase in Time Deposits & Fed Account 1Q24 2Q24Higher Deposit Costs (ex Time Deposit Increase) Forward- starting Swaps $(9) $9 Swaps & UST Roll-off 3bps 8bps Other (net) (2)bps +1.5% Lower Loans / Forward- starting Swaps (4)bps

 

+3% +10% +9% +5% (1)% +8% +2% (26)% (3)% QoQ 8 % change YoY +22% (4)% (21)% +12% - +10% +5% vs. Prior Year $ in millions Investment Banking & Debt Placement Trust & Investment Services Cards & Payments Other(1) Corporate Services Service Charges on Deposit Acct Commercial Mortgage Servicing ▪ Noninterest income up $18MM (+3%) from 2Q23 − Trust & Investment Services growth (+$13MM) driven by strong market performance and momentum in Wealth Management mass affluent initiative − Increase in Commercial Mortgage Servicing fees (+$11MM) − Corporate Services decline ($18MM) reflects elevated LIBOR-SOFR related transition activity in the year ago quarter (1) Other includes Corporate-Owned Life Insurance Income, Consumer Mortgage Income, Operating Lease Income and Other Leasing Gains, and Other Income $120 $170 $126 $126 $136 $139 $85 $77 $85 $86 $69 $68 $69 $63 $66 $50 $56 $61 $73 $76 $82 2Q23 1Q24 2Q24 Noninterest Income $609 $647 $627 Total Noninterest Income

 

9 $622 $674 $636 $454 $440 $438 $29 2Q23 1Q24 2Q24 Personnel Non-personnel(1) vs. Prior Year % change YoY QoQ (4)% 2% (0.5)% (6)% 0.3% (6)% ▪ Noninterest expense up $3MM (0.3%) from 2Q23 − 2Q24 Noninterest expense included $5MM pre-tax, from the FDIC special assessment(2) ▪ Higher personnel expense due to KEY’s higher stock price, offset by lower marketing and business services and professional fees ▪ Noninterest expense down $64MM sequentially, or $40MM (or 4%) excluding FDIC special assessment(2) − Lower incentive compensation and employee benefits more than offset merit increases $ in millions (1) 1Q24 and 2Q24 exclude FDIC special assessments; (2) FDIC Special Assessment, please see slide 25 for breakout on Selected Items Impact on Earnings Noninterest Expense $1,079 $5 $1,143$1,076 Total Noninterest Expense (2) (2) vs. Prior Quarter

 

0.12% 0.15% 0.20% 0.22% 0.26% 0.06% 0.04% 0.09% 0.11% 0.13% 2Q23 3Q23 4Q23 1Q24 2Q24 NCO = Net charge-off (1) Loan and lease outstandings 10 $ in millions $3,921 $4,475 $4,984 $6,588 $6,973 2Q23 3Q23 4Q23 1Q24 2Q24 30 – 89 days delinquent 90+ days delinquent Net Charge-offs & Provision for Credit Losses Delinquencies to Period-end Total Loans Criticized Outstandings(1) to Period-end Total Loans $ in millions; Continuing Operations Criticized Outstandings to Period-end Total LoansCriticized Outstandings 3.3% 3.9% 4.4% 6.0% $52 $71 $76 $81 $91 $167 $81 $102 $101 $100 2Q23 3Q23 4Q23 1Q24 2Q24 NCOs Provision for credit losses NCOs to avg. loans 0.17% 0.24% 0.26% 0.29% $431 $455 $574 $658 $710 2Q23 3Q23 4Q23 1Q24 2Q24 Nonperforming Loans to Period-end Total Loans $ in millions Nonperforming Loans to Period-end Total LoansNonperforming Loans 0.36% 0.39% 0.51% 0.60% Credit Quality Continuing Operations 0.66% 0.34% 6.5% +8% +6%

 

2Q23 3Q23 4Q23 1Q24 2Q24 11 $ in billions Tangible Common Equity Ratio(2) Common Equity Tier 1(1) Projected AOCI Impacts(3) 4.5% 4.4% 5.1% 5.0% 5.2% 2Q23 3Q23 4Q23 1Q24 2Q24 9.3% 9.8% 10.0% Target operating range: 9% - 9.5% 10.3% Adjusted for unrealized AFS Securities and Pension losses(2) 6.2% 6.2% 7.0% 7.1% (1) 6/30/2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (2) Non-GAAP measure: see appendix for reconciliation; (3) Assumes market forwards as of 6/30/2024 Capital 10.5% 7.3% AFS AOCI ($5.1) ($4.6) ($4.7) ~12% ~28% ($3.7) ($4.1) AOCI Forward Rates YE 2024 AOCI Flat RatesAOCI Position 6/30/2024 ~8% ~21% AOCI burn down assumes ~4 rate cuts through 2025, ~6 cuts through 2026, and 3-5 year UST rates decline by ~25bps AOCI burn down assuming rates hold at 6/30/2024 levels ($3.9) ($3.4) ($4.0) ($3.4) ($4.3) Other AOCI ($2.9) ($2.9) ($3.2) ($3.4) ~39% ~34% YE 2025 YE 2026 YE 2024 YE 2025 YE 2026

 

Average Deposits relatively stable, with client deposits up (previously flat to down 2%) FY2024 (vs. FY2023)2023 12 Note: Guidance range: relatively stable: +/- 2% (1) The noninterest expense guidance excludes the FDIC special assessment of $190MM, efficiency related expenses of $131MM, and a pension settlement charge of $18MM in 2023; (2) The noninterest expense guidance excludes FDIC special assessments of $34MM in 2024; (3) To be updated upon the finalization of the currently proposed future capital requirements $118,004 $112,606 Average Loans Ending Loans Noninterest Income Noninterest Expense NCOs to Avg Loans GAAP Tax Rate down 7 – 8% (previously down 5 – 7%) down 4 – 5% (previously relatively stable) Long-term Targets(3) $144,059 $3,943 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% down 2 – 5% up low-single digits vs. 4Q23 annualized exit rate 10%+ 4Q24 vs. 4Q23 up 5%+ relatively stable(1,2) 30 – 40 bps $2,470 $4,734 21 bps 16.9% ~20% $ in millions 2024 Outlook Net Interest Income (TE) Includes selected items of $339MM(1)

 

2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 (1) Assumes the forward curve as of 6/30/2024 and maturities to occur on the last day of each quarter; only includes swap and Treasury maturities 13 Treasuries SwapsBenefit Realized WA Maturity Yields ▪ ~$550MM expected total benefit in 2024 ▪ ~$470MM annualized benefit in 2Q run rate ▪ ~$80MM expected incremental benefit 4Q24 vs. 2Q24 1 Tailwinds from Short-term Swaps & Treasuries Maturities(1) Maturities Schedule ~$118 $151 $198 $238 $ in millions; cumulative view Terminated CF Swaps ▪ ~$950MM expected annualized NII opportunity by 1Q25 (~50% realized to date) 2 ~$79 NII Opportunity From Swaps and Treasuries $1.9 $1.9 $2.6 $2.9 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $3.1 $2.8 $4.5 $4.8 $2.7 $1.7 $1.1 $ in billions 0.49% 0.50%

 

14 ▪ Loan Balances − Loans flat / up slightly vs 6/30/24 levels ▪ Deposit Costs − Cumulative beta reaches mid-50%’s − Lag in consumer betas for first few rate cuts ▪ Deposit Balances and Mix − Avg deposits flat to up 1% versus 2Q24, growth mostly driven by CDs (offset with lower FHLB borrowings) − Some continued slight migration from NIB to IB deposits ▪ Other Assets Repricing − ~$2Bn of securities cash flows roll-off at ~2.3% – 2.4% − ~$1.5Bn consumer loans roll off at ~3.7% − Variable-rate loans reprice to changes in benchmark SOFR monthly Achieving 4Q24 Exit Rate NII Target – One December Fed Rate Cut(1) Change to NII ($ in millions); Illustrative, not drawn to scale Other Key Inputs & Assumptions Net Interest Income Opportunity (1) Assumes one 25 basis point Fed rate cut in December; (2) Assumes two 25 basis point Fed rate cuts – one in September and one in December $899 $1Bn+ 2.40 – 2.50% NIM 2Q24 4Q24Swaps & UST Roll-off Other Fixed Rate Assets Roll Off Day Count & Loan Fees Improved Funding Mix Loan Growth (ex. Consumer) Higher Deposit Costs Impact of Dec Rate Cut +~$130MM Impact nets Achieving 4Q24 Exit Rate NII Target – Two Fed Rate Cuts(2) Change to NII ($ in millions); Illustrative, not drawn to scale $899 $1Bn+ 2Q24 4Q24Swaps & UST Roll-off Other Fixed Rate Assets Roll Off Day Count & Loan Fees Improved Funding Mix Loan Growth (ex. Consumer) Lower Deposit Costs Two Rate Cuts – Lower Loan Yields 2.40 – 2.50% NIM +$120-125MM Slightly negative impact

 

Appendix

 

Brokered Deposits ▪ Proactive balance sheet management − Right-sized the balance sheet − Significantly increased CET1 through RWA optimization − Vastly improved liquidity and funding profile ▪ Targeted expense reductions to hold expenses relatively stable − Simplified and streamlined businesses 16 ▪ Franchise momentum: client growth, consistent business flows, strong deposit base ▪ Upside to capital markets recovery ▪ Strengths play to market trends − Strong fee-based businesses − Underwrite-to-distribute business model ▪ Core funded balance sheet more resilient to changes in interest rates ▪ Outsized fixed asset repricing benefit from the roll-off of swaps and Treasuries ▪ High-quality portfolio with strong credit quality − Low exposure to leveraged lending, office, and construction Repositioned Company in 2023 Well-Positioned Moving Forward $31 $22 45107 45473 2Q23 2Q24 28% 6/30/23 6/30/24 6/30/23 6/30/24 Wholesale Funding(1) 44% (1) Wholesale funding includes Federal funds purchased and securities sold under repurchase agreements, bank notes and other short-term borrowings, and long-term debt Positioned for the Future $in billions $in billions $9 $5

 

1% Office 3% 4% 5% < Nonowner-occupied CRE Loan Portfolio Composition Category III banks KEY Regional bank peers All banks >$10Bn assets 13% Note: NOORE = Nonowner-occupied real estate (Commercial Real Estate); KEY data as of 6/30/2024 (1) Data as of 3/31/2024; Sourced from ffiec.gov ‘peer group average reports’; (2) Data as of 3/31/2024; Includes: CFG, CMA, FCNCA, FITB, HBAN, MTB, RF and ZION; (3) Data as of 3/31/2024; Includes: COF, PNC, TFC and USB; (4) Other NOORE includes Diversified, Industrial, Land & Residential, Retail, Senior Housing, Student Housing, Lodging, Medical Office, Self Storage, Skilled Nursing, and Other 17 Category III banks(3) KEY Regional bank peers(2) All banks >$10Bn assets(1) As a % Total Loans All other loans As a % Total Loans • $0 nonowner-occupied construction • Nonperforming loans: 5.5% • Reserves to loans: ~7% • B&C Class properties in CBDs <0.1% of total loans • Nonperforming loans: 1.17% • Reserves to loans: ~3% • No core-based statistical area >4.1% of total nonowner-occupied CRE Office Highlights Nonowner-occupied CRE Highlights Affordable Housing Other NOORE(4) Traditional Multifamily High-quality CRE portfolio has relatively limited exposure and is diversified by property type and geography 31% 17% 11% Commercial Real Estate

 

18 Multifamily Portfolio Highlights Affordable Housing Loan Portfolio Highlights ▪ Targeted clients utilize low-income housing tax credit (LIHTC) financing programs to build, acquire, rehab and preserve facilities ▪ Significant shortage requires continued investments in new supply, preservation of existing supply, and expansion of government subsidies and programs ▪ Long-term financing structures result in limited refinance and interest rate risk ▪ Construction loans underwritten with forward commitments for permanent financing as part of distribution model 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 ▪ Diversified - no more than ~4% of Multifamily loans concentrated in any market(1) ▪ No exposure to rent controlled properties in New York City ▪ Only ~5% of portfolio in NYC, Chicago, Los Angeles and San Francisco Affordable Housing Loans Driving Most of Multifamily Growth $5,074 $5,247 $6,736 $8,889 $8,853 Traditional Market Rate Multifamily Affordable Housing 23% 28% 28% 31% 37% +29% Affordable Housing CAGR +9% Traditional Multifamily CAGR $ in millions Note: All data as of 6/30/2024 unless otherwise noted (1) Measured as core-based statistical area (CBSA); (2) Defined as New York City, Los Angeles, Chicago, Washington DC, San Francisco, and Boston Market Rate Multifamily Loan Portfolio Highlights ▪ Relationship model focused on owners and operators of multifamily projects, rather than developers ▪ Gateway Markets(2) 5% of exposure – 2/3 of portfolio is suburban ▪ Loans underwritten based on long-term permanent rates on actual, non-trended rents, reducing refinance and interest rate risk ▪ Over 80% of exposure has recourse Business leverages our originate-to-distribute model and is a mixture of market rate and affordable housing Commercial Real Estate: Multifamily

 

0.41% 0.21% 0.00% 0.00% 4.31% 1.01% C&I CRE Resi Mtg Home Equity Credit Cards Other Consumer 19 Allowance to NPLs (%)(2) Criticized Outstandings to Period-end Loans (%)(2) 191% 259% 150% 78% N/M N/M C&I CRE Resi Mtg Home Equity Credit Cards Other Consumer 8.1% 13.8% 0.4% 1.4% 1.8% 0.3% C&I CRE Resi Mtg Home Equity Credit Cards Other Consumer Credit Quality by Portfolio (3), (4) (3), (4) (3), (4) N/M = Not Meaningful Note: All metrics are as of 6/30/2024 unless otherwise noted; (1) Net loan charge-off amounts are annualized in calculation; (2) Ratios calculated using unrounded figures and therefore may not foot to calculation using rounded figures presented in chart; (3) Loan balance includes $217 million of commercial credit card balances at June 30, 2024; (4) Commercial and industrial includes receivables held as collateral for a secured borrowing of $285 million at June 30, 2024. Principal reductions are based on the cash payments received from these related receivables Allowance for Credit Losses (ACL) $ in millions $1,771 $1,778 1,804 1,823 1,833 2Q23 3Q23 4Q23 1Q24 2Q24 Allowance for Credit Losses to Period-end LoansAllowance for Credit Losses 1.49% 1.54% 1.60% 1.66% 1.71% Net Loan Charge-offs(1) to Average Loans (%)(2)

 

$2.6 $2.9 $0.3 3Q24 4Q24 1Q25 Prime 8% 1M SOFR 21% 3M SOFR 7% O/N SOFR 25% Fixed 37% Other 2% Loan Composition(1) Earning Asset Mix(2) 63% 22% 5% 9% 2% Total Loans AFS Securities Other(3) $9.4 $9.0 $8.7 $8.4 $8.1 $38.9 $37.3 $35.6 $37.1 $36.8 2Q23 3Q23 4Q23 1Q24 2Q24 Average AFS Securities Average Yield(4)Average HTM Securities $ in billions Average Total Investment Securities Balance Sheet Mix and Trends $48.3 $44.3 $45.5 Fixed-rate Asset Repricing Tailwinds – 2H24 to 2026 0.47% WA yield on portfolio $ in billions Short-term Treasury Maturities WA Maturity Yield Short-term Treasury Maturities 20 2.04% 2.06% 2.26% .44% .48% .63% Balance Sheet Management Detail 2.40% $44.9$46.3 ST Investments HTM Securities 2.61% (1) Loan statistics based on 6/30/2024 period-end balances; (2) Based on 6/30/2024 period-end balances; chart may not foot due to rounding; (3) Other includes loans HFS and trading account assets; (4) Yield is calculated on the basis of amortized cost; (5) 2H24 receive fixed swaps were terminated in September 2023 and realized P&L from the terminated swaps that mature in 2H24 will be recognized throughout 2H24; (6) Excludes short-term Treasury maturities shown in the bottom right graph $ in billions 2H24 2025 2026 Projected receive fixed swaps(5) maturities $0.0 $5.2 $9.1 Weighted-average rate received (%) n/a 1.80% 2.78% Projected fixed rate loans cash flows / maturities $6.7 $11.2 $11.1 Weighted-average rate received (%) 3.89% 4.15% 4.47% Projected fixed rate investment securities CFs / maturities(6) $2.0 $4.2 $4.7 Weighted-average rate received (%) 2.33% 2.74% 3.04%

 

$18.5 $18.8 $18.8 $18.8 $19.6 $10.8 2Q24 3Q24 4Q24 YE24 YE25 YE26 Hedging Strategy Opportunity $ in billions 6/30/2024 Debt Hedges $10.8 Securities Hedges(2) $10.8 Floor Spreads $3.3 ▪ Executed $5.75Bn of forward-starting receive-fixed swaps – WA receive rate: 4.06% (March 2025 start date) ▪ Executed $1.35Bn of spot pay-fixed swaps to hedge securities – WA pay rate: 4.48% 21 (1) Portfolio as of 6/30/2024 and includes already executed forward starting swaps; (2) AFS securities swapped to floating rate Other Hedge Positions 2Q24 ALM Hedge Actions ~2.3% ~2.3% ~2.3% ~2.3% ~3.0% ~3.2% 3Q24 4Q24 FY24 FY25 FY26 $0 $0 $0 $5.2 $9.1 n/a n/a n/a 1.80% 2.78% W.A. Receive- fixed Rate at 6/30/24 Note: Maturing Swaps ($Bn) W.A. Receive-fixed Rate Receive-fixed Asset Swaps(1) $ in billions; ending balances 1Q24 ALM Hedge Actions ▪ Executed $250MM of forward-starting receive fixed swaps - WA receive rate: 3.85% (January 2025 start date) ▪ Executed $950MM of forward-starting debt hedges – WA receive rate: 3.77% (March 2025 start date) ▪ Executed $750MM of spot pay fix swaps to hedge securities – WA pay rate: 4.1%

 

GAAP to Non-GAAP Reconciliation (1) 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; (2) Net of capital surplus; (3) 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. 22 $ in millions 2Q24 1Q24 2Q23 Tangible common equity to tangible assets at period end Key shareholders’ equity (GAAP) $ 14,789 $ 14,547 $ 13,844 Less: Intangible assets(1) 2,793 2,799 2,826 Preferred stock(2) 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(1) 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 % Average tangible common equity Average Key shareholders’ equity (GAAP) $ 14,474 $ 14,649 $ 14,412 Less: Intangible assets (average) (3) 2,796 2,802 2,831 Preferred stock (average) 2,500 2,500 2,500 Average tangible common equity (non-GAAP) $ 9,178 $ 9,347 $ 9,081

 

GAAP to Non-GAAP Reconciliation 23 $ in millions 2Q24 1Q24 2Q23 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ 237 $ 183 $ 250 Average tangible common equity (non-GAAP) 9,178 9,347 9,081 Return on average tangible common equity from continuing operations (non-GAAP) 10.39 % 7.87 % 11.04 % Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) $ 238 $ 183 $ 251 Average tangible common equity (non-GAAP) 9,178 9,347 9,081 Return on average tangible common equity consolidation (non-GAAP) 10.43 % 7.87 % 11.09 % Cash efficiency ratio Noninterest expense (GAAP) $ 1,079 $ 1,143 $ 1,076 Less: Intangible asset amortization 7 8 10 Adjusted noninterest expense (non-GAAP) $ 1,072 $ 1,135 $ 1,066 Net interest income (GAAP) $ 887 $ 875 $ 978 Plus: Taxable-equivalent adjustment 12 11 8 Noninterest income (GAAP) 627 647 609 Total taxable-equivalent revenue (non-GAAP) $ 1,526 $ 1,533 $ 1,595 Cash efficiency ratio (non-GAAP) 70.2 % 74.0 % 66.8 %

 

GAAP to Non-GAAP Reconciliation 24 CET1 – AOCI Impact(1) ($ in millions) 2Q23 3Q23 4Q23 1Q24 2Q24 Common Equity Tier 1 (A) $ 14,887 $ 15,007 $ 14,894 $ 14,821 $ 14,901 Add: AFS and Pension accumulated other Comprehensive income (loss) (4,961) (5,581) (4,573) (4,608) (4,530) Adjusted Common Equity Tier 1 (B) $ 9,926 $ 9,426 $ 10,321 $ 10,213 $ 10,371 Risk Weighted Assets (C) $ 160,422 $ 152,672 $ 148,575 $ 144,295 $ 141,971 Common Equity Tier 1 ratio (A/C) 9.28 % 9.83 % 10.02 % 10.27 % 10.50 % Adjusted CET1 Ratio (B/C) 6.19 % 6.17 % 6.95 % 7.08 % 7.30 % (1) Under the current applicable regulatory capital rules, Key has made the AOCI opt out election, which enables us to exclude components of AOCI from regulatory capital, notably the AOCI relative to securities and pension. Adjusted CET1 ratio is a non-GAAP measure and is calculated based on Common Equity Tier 1 capital, inclusive of the AOCI impact from securities and pension, divided by risk weighted assets. We believe this non-GAAP measure provides useful information in light of the potential for change in the regulatory capital framework; (2) Loan Yields Excluding Impact from Hedges is a non-GAAP metric and is calculated by excluding losses realized on derivatives which hedge the interest rate risk of our loans. We believe this metric is meaningful as it provides information on loan yields excluding the impacts of hedge-related interest rate risk management programs Loan Yields Excluding Impact from Hedges(2) 2Q23 3Q23 4Q23 1Q24 2Q24 Loan Yield 5.26 % 5.41 % 5.51 % 5.61 % 5.66 % Subtract: Loan Yield Impact of Realized Hedge Gains/(Losses) (0.82) % (0.86) % (0.84) % (0.78) % (0.73) % Loan Yield Excluding Impact from Hedges 6.08 % 6.27 % 6.35 % 6.39 % 6.39 %