KeyCorp (KEY) 8-K Positive operating leverage compared to the year-ago quarter

Exhibit 99.3

Consolidated Balance Sheets
(dollars in millions)
			3/31/2021		12/31/2020		3/31/2020
Assets
	Loans		$	100,926	$	101,185	$	103,198
	Loans held for sale		2,296		1,583		2,143
	Securities available for sale		33,923		27,556		20,807
	Held-to-maturity securities		6,857		7,595		9,638
	Trading account assets		811		735		795
	Short-term investments		15,376		16,194		4,073
	Other investments		621		621		679
		Total earning assets	160,810		155,469		141,333
	Allowance for loan and lease losses		(1,438)		(1,626)		(1,359)
	Cash and due from banks		938		1,091		865
	Premises and equipment		737		753		791
	Goodwill		2,673		2,664		2,664
	Other intangible assets		173		188		236
	Corporate-owned life insurance		4,296		4,286		4,243
	Accrued income and other assets		7,347		6,812		6,604
	Discontinued assets		667		699		820
		Total assets	$	176,203	$	170,336	$	156,197
Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	82,777	$	80,427	$	71,005
		Savings deposits	6,655		5,913		4,753
		Certificates of deposit ($100,000 or more)	2,437		2,733		5,630
		Other time deposits	2,782		3,010		4,623
		Total interest-bearing deposits	94,651		92,083		86,011
		Noninterest-bearing deposits	47,532		43,199		29,293
		Total deposits	142,183		135,282		115,304
	Federal funds purchased and securities sold under repurchase agreements		281		220		2,444
	Bank notes and other short-term borrowings		744		759		4,606
	Accrued expense and other liabilities		2,862		2,385		2,700
	Long-term debt		12,499		13,709		13,732
		Total liabilities	158,569		152,355		138,786
Equity
	Preferred stock		1,900		1,900		1,900
	Common shares		1,257		1,257		1,257
	Capital surplus		6,213		6,281		6,222
	Retained earnings		13,166		12,751		12,174
	Treasury stock, at cost		(5,005)		(4,946)		(4,956)
	Accumulated other comprehensive income (loss)		103		738		814
		Key shareholders’ equity	17,634		17,981		17,411
	Noncontrolling interests		—		—		—
		Total equity	17,634		17,981		17,411
Total liabilities and equity			$	176,203	$	170,336	$	156,197
Common shares outstanding (000)			972,587		975,773		975,319

Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended
			3/31/2021		12/31/2020		3/31/2020
Interest income
	Loans		$	889	$	933	$	1,026
	Loans held for sale		11		11		19
	Securities available for sale		130		119		129
	Held-to-maturity securities		45		51		62
	Trading account assets		5		4		8
	Short-term investments		5		4		6
	Other investments		2		3		1
		Total interest income	1,087		1,125		1,251
Interest expense
	Deposits		21		28		169
	Federal funds purchased and securities sold under repurchase agreements		—		—		6
	Bank notes and other short-term borrowings		1		1		5
	Long-term debt		60		61		90
		Total interest expense	82		90		270
Net interest income			1,005		1,035		981
Provision for credit losses			(93)		20		359
Net interest income after provision for credit losses			1,098		1,015		622
Noninterest income
	Trust and investment services income		133		123		133
	Investment banking and debt placement fees		162		243		116
	Service charges on deposit accounts		73		82		84
	Operating lease income and other leasing gains		38		39		30
	Corporate services income		64		63		62
	Cards and payments income		105		97		66
	Corporate-owned life insurance income		31		38		36
	Consumer mortgage income		47		43		20
	Commercial mortgage servicing fees		34		32		18
	Other income		51		42		(88)
		Total noninterest income	738		802		477
Noninterest expense
	Personnel		624		661		515
	Net occupancy		76		75		76
	Computer processing		73		62		55
	Business services and professional fees		50		54		44
	Equipment		25		26		24
	Operating lease expense		34		35		36
	Marketing		26		30		21
	Intangible asset amortization		15		15		17
	Other expense		148		170		143
		Total noninterest expense	1,071		1,128		931
Income (loss) from continuing operations before income taxes			765		689		168
	Income taxes		147		114		23
Income (loss) from continuing operations			618		575		145
	Income (loss) from discontinued operations, net of taxes		4		7		1
Net income (loss)			622		582		146
	Less: Net income (loss) attributable to noncontrolling interests		—		—		—
Net income (loss) attributable to Key			$	622	$	582	$	146
Income (loss) from continuing operations attributable to Key common shareholders			$	591	$	549	$	118
Net income (loss) attributable to Key common shareholders			595		556		119
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.61	$	.57	$	.12
Income (loss) from discontinued operations, net of taxes			—		.01		—
Net income (loss) attributable to Key common shareholders (a)			.62		.57		.12
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.61	$	.56	$	.12
Income (loss) from discontinued operations, net of taxes			—		.01		—
Net income (loss) attributable to Key common shareholders (a)			.61		.57		$	.12
Cash dividends declared per common share			$	.185	$	.185	$	.185
Weighted-average common shares outstanding (000)			964,878		967,987		967,446
	Effect of common share options and other stock awards		9,419		8,473		8,664
Weighted-average common shares and potential common shares outstanding (000) (b)			974,297		976,460		976,110

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

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