KeyCorp 8K Results of Operations and Financial Condition | KEY 21 Jan 25

KEYCORP REPORTS FOURTH QUARTER 2024 NET LOSS OF $(279) MILLION,

OR $(.28) PER DILUTED COMMON SHARE, AND ADJUSTED NET INCOME OF $378 MILLION, OR $.38 PER DILUTED COMMON SHARE(a)

Revenue of $865 million; Adjusted for selected items(a), revenue up 16% year-over-year

Net interest income up 10% linked quarter

Momentum across investment banking, payments, and wealth management fees up 27% year-over-year

Common Equity Tier 1 ratio increased 120 basis points quarter-over-quarter to 12%(b)

CLEVELAND, January 21, 2025 - KeyCorp (NYSE: KEY) today announced a net loss from continuing operations attributable to Key common shareholders of $(279) million, or $(.28) per diluted common share, or adjusted net income of $378 million or $.38 per diluted common share(a), for the fourth quarter of 2024. Included in the fourth quarter of 2024 are $(657) million, or $(.66) per diluted common share, after-tax, of charges related to the loss on the sale of securities(c). For the third quarter of 2024, KeyCorp reported a net loss from continuing operations attributable to Key common shareholders of $(447) million, or $(.47) per diluted common share, or adjusted net income of $285 million or $.30 per diluted common share(a). Net income from continuing operations attributable to Key common shareholders was $30 million, or $.03 per diluted common share, or adjusted net income of $239 million or $.25 per diluted common share(a), for the fourth quarter of 2023. During the quarter, Key and Scotiabank received regulatory approval to complete Scotiabank's minority investment in Key as announced on August 12, 2024.

Comments from Chairman and CEO, Chris Gorman

"Our fourth quarter results marked a strong finish to the year. EPS and revenue were impacted by the previously communicated completion of our securities portfolio repositioning. On an adjusted basis(a), revenues were up 16% year-over-year and 11% sequentially. Net interest income was up 10% quarter-over-quarter and fees (as adjusted(a)), were up meaningfully versus comparable periods. We achieved year-over-year positive operating leverage for a second consecutive quarter. On a linked quarter basis, net charge-offs were down 26% and criticized loans down 7%.

Our strong financial results are a function of continued client momentum. Relationship households were up 3%, client deposits were up 4%, and AUM increased to a record level of $61 billion in 2024. We continued to drive significant progress in each of our strategic, fee-based businesses – wealth management, commercial payments, and investment banking.

I am very proud of all that our team accomplished in 2024. As we turn the page to 2025, we celebrate KeyBank’s 200th anniversary, a remarkable milestone that reflects the hard work of our teammates over the past two centuries, and their collective dedication to our clients. With strong performance momentum and a leading capital position, we are well positioned for sound, profitable growth in 2025 and beyond.”

(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “adjusted earnings per share", "adjusted taxable-equivalent revenues", "adjusted noninterest income", and "adjusted net income.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b) December 31, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 2


Selected Financial Highlights

Dollars in millions, except per share data										Change 4Q24 vs.
	4Q24			3Q24			4Q23			3Q24		4Q23
Income (loss) from continuing operations attributable to Key common shareholders	$	(279)		$	(447)		$	30		37.6	%	N/M

Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution	(.28)			(.47)			.03			40.4		N/M

Return on average tangible common equity from continuing operations (a)	(9.69)		%	(16.98)		%	1.46		%	N/A		N/A

Return on average total assets from continuing operations	(.52)			(.87)			.14			N/A		N/A

Common Equity Tier 1 ratio (b)	12.0			10.8			10.0			N/A		N/A
Book value at period end	$	14.21		$	14.53		$	13.02		(2.2)		9.1
Net interest margin (TE) from continuing operations	2.41		%	2.17		%	2.07		%	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)December 31, 2024 ratio is estimated.

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


INCOME STATEMENT HIGHLIGHTS

Revenue

Dollars in millions							Change 4Q24 vs.
	4Q24		3Q24		4Q23		3Q24		4Q23
Net interest income (TE)	$	1,061	$	964	$	928	10.1	%	14.3	%
Noninterest income	(196)		(269)		610		27.1		(132.1)
Total revenue (TE)	$	865	$	695	$	1,538	24.5	%	(43.8)	%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.1 billion for the fourth quarter of 2024 and the net interest margin was 2.41%. Compared to the fourth quarter of 2023, net interest income increased by $133 million, and the net interest margin increased by 34 basis points. The increase in net interest income and the net interest margin reflect the reinvestment of proceeds from maturing investment securities into higher yielding investments, the maturity of lower-yielding interest rate swaps with negative carry that were terminated in 2023, and the first tranche of the repositioning of the available-for-sale portfolio of $7.0 billion during the third quarter of 2024. In addition, during the fourth quarter of 2024, Key completed the second tranche of the available-for-sale portfolio repositioning, which involved the sale and reinvestment of approximately $3.0 billion of lower-yielding mortgaged-backed securities into higher-yielding investments. Net interest income and the net interest margin also benefited from an increase in lower-cost deposits, which contributed to the decline in wholesale borrowings. These benefits were partially offset by a decline in loan balances and the impact of lower interest rates on repricing earning assets.

Compared to the third quarter of 2024, taxable-equivalent net interest income increased by $97 million, and the net interest margin increased by 24 basis points. Net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher-yielding investments, the repositioning of the available-for-sale portfolio, the maturity of amortizing interest rate swaps with negative carry, and an improved funding mix.

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 3


Noninterest Income

Dollars in millions							Change 4Q24 vs.
	4Q24		3Q24		4Q23		3Q24		4Q23
Trust and investment services income	$	142	$	140	$	132	1.4	%	7.6	%
Investment banking and debt placement fees	221		171		136		29.2		62.5
Cards and payments income	85		84		84		1.2		1.2
Service charges on deposit accounts	65		67		65		(3.0)		—
Corporate services income	69		69		67		—		3.0
Commercial mortgage servicing fees	68		73		48		(6.8)		41.7
Corporate-owned life insurance income	36		36		36		—		—
Consumer mortgage income	16		12		11		33.3		45.5
Operating lease income and other leasing gains	15		16		22		(6.3)		(31.8)
Other income	(5)		(2)		13		150.0		(138.5)
Net securities gains (losses)	(908)		(935)		(4)		2.9		N/M
Total noninterest income	$	(196)	$	(269)	$	610	27.1	%	(132.1)	%

N/M = Not Meaningful

Compared to the fourth quarter of 2023, noninterest income decreased by $806 million. The decrease was driven by a $915 million loss on the sale of securities as part of a strategic repositioning of the portfolio, as well as a $3 million loss related to the Scotiabank investment agreement valuation in the fourth quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. The decline was partly offset by an $85 million increase in investment banking and debt placement fees, reflective of stronger syndication fees, underwriting fees, and merger and acquisition fees, as well as a $20 million increase in commercial mortgage servicing fees.

Compared to the third quarter of 2024, noninterest income increased by $73 million, primarily driven by a $50 million increase in investment banking and debt placement fees, reflective of stronger syndication fees and merger and acquisition advisory fees. Additionally, net securities losses declined relative to the prior quarter, reflecting gains from other investment activity in the fourth quarter.


Noninterest Expense

Dollars in millions							Change 4Q24 vs.
	4Q24		3Q24		4Q23		3Q24		4Q23
Personnel expense	$	734	$	670	$	674	9.6	%	8.9	%
Net occupancy	67		66		65		1.5		3.1
Computer processing	107		104		92		2.9		16.3
Business services and professional fees	55		41		44		34.1		25.0
Equipment	20		20		24		—		(16.7)
Operating lease expense	15		14		18		7.1		(16.7)
Marketing	33		21		31		57.1		6.5



Other expense	198		158		424		25.3		(53.3)
Total noninterest expense	$	1,229	$	1,094	$	1,372	12.3	%	(10.4)	%

Compared to the fourth quarter of 2023, noninterest expense decreased $143 million. The decline was driven by selected items that impacted earnings in the fourth quarter of 2023, which included the FDIC special assessment, efficiency related expenses, and a pension settlement charge in the fourth quarter of 2023, which collectively totaled $275 million. See the Selected Items Impact on Earnings table on page 25 for more information. Partly offsetting the decline was an increase in personnel expense of $60 million due to an increase in incentive and stock-based compensation related to strong capital markets activity, as well as an increase in technology investments.

Compared to the third quarter of 2024, noninterest expense increased by $135 million. The increase was driven by a $64 million increase in personnel expense, primarily related to incentive and stock-based

compensation, reflective of stronger capital markets activity, as well as an increase in employee benefits. Additionally, there was a $40 million increase in other expense, largely related to seasonal miscellaneous expenses such as charitable donations.

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 4


BALANCE SHEET HIGHLIGHTS

Average Loans

Dollars in millions							Change 4Q24 vs.
	4Q24		3Q24		4Q23		3Q24		4Q23
Commercial and industrial (a)	$	52,887	$	53,121	$	56,664	(.4)	%	(6.7)	%
Other commercial loans	19,202		19,929		21,942		(3.6)		(12.5)
Total consumer loans	32,622		33,194		35,342		(1.7)		(7.7)
Total loans	$	104,711	$	106,244	$	113,948	(1.4)	%	(8.1)	%

(a)Commercial and industrial average loan balances include $216 million, $215 million, and $210 million of assets from commercial credit cards at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.

Average loans were $104.7 billion for the fourth quarter of 2024, a decrease of $9.2 billion compared to the fourth quarter of 2023, reflective of continued tepid client loan demand. The decline in average loans was mostly driven by a $6.5 billion decline in average commercial loans, due to lower commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined by $2.7 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the third quarter of 2024, average loans decreased by $1.5 billion. Average commercial loans declined by $961 million, primarily driven by a decrease in commercial mortgage real estate loans and commercial and industrial loans. Average consumer loans declined $572 million, driven by lower consumer mortgage and home equity loan balances.


Average Deposits

Dollars in millions										Change 4Q24 vs.
	4Q24			3Q24			4Q23			3Q24		4Q23
Non-time deposits	$	132,092		$	129,901		$	130,750		1.7	%	1.0	%

Time deposits	17,641			17,870			14,326			(1.3)		23.1
Total deposits	$	149,733		$	147,771		$	145,076		1.3	%	3.2	%

Cost of total deposits	2.18		%	2.39		%	2.06		%	N/A		N/A

N/A = Not Applicable

Average deposits totaled $149.7 billion for the fourth quarter of 2024, an increase of $4.7 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.

Compared to the third quarter of 2024, average deposits increased by $2.0 billion, driven by an increase in both consumer and commercial deposit balances.


ASSET QUALITY

Dollars in millions										Change 4Q24 vs.
	4Q24			3Q24			4Q23			3Q24		4Q23
Net loan charge-offs	$	114		$	154		$	76		(26.0)	%	50.0	%
Net loan charge-offs to average total loans	.43		%	.58		%	.26		%	N/A		N/A
Nonperforming loans at period end	$	758		$	728		$	574		4.1		32.1
Nonperforming assets at period end	772			741			591			4.2		30.6
Allowance for loan and lease losses	1,409			1,494			1,508			(5.7)		(6.6)
Allowance for credit losses	1,699			1,774			1,804			(4.2)		(5.8)
Provision for credit losses	39			95			102			(58.9)		(61.8)

Allowance for loan and lease losses to nonperforming loans	186		%	205		%	263		%	N/A		N/A
Allowance for credit losses to nonperforming loans	224			244			314			N/A		N/A

N/A = Not Applicable

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 5

Key's provision for credit losses was $39 million, compared to $102 million in the fourth quarter of 2023 and $95 million in the third quarter of 2024. The decrease from prior periods primarily reflects lower loan balances, slowing asset quality migration, and changes in net charge-off levels.

Net loan charge-offs for the fourth quarter of 2024 totaled $114 million, or 0.43% of average total loans. These results compare to $76 million, or 0.26%, for the fourth quarter of 2023 and $154 million, or 0.58%, for the third quarter of 2024. Key’s allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans at December 31, 2024, compared to 1.60% at December 31, 2023, and 1.68% at September 30, 2024.

At December 31, 2024, Key’s nonperforming loans totaled $758 million, which represented 0.73% of period-end portfolio loans. These results compare to 0.51% at December 31, 2023, and 0.69% at September 30, 2024. Nonperforming assets at December 31, 2024, totaled $772 million, and represented 0.74% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.52% at December 31, 2023, and 0.70% at September 30, 2024.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at December 31, 2024.


Capital Ratios

	12/31/2024		9/30/2024		12/31/2023
Common Equity Tier 1 (a)	12.0	%	10.8	%	10.0	%

Tier 1 risk-based capital (a)	13.7		12.6		11.7
Total risk-based capital (a)	16.2		15.1		14.2
Tangible common equity to tangible assets (b)	7.0		6.2		5.1
Leverage (a)	10.1		9.2		9.0

(a)December 31, 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 fourth quarter of 2024. As shown in the preceding table, at December 31, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 12.0% and 13.7%, respectively. Key's tangible common equity ratio was 7.0% at December 31, 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 entered a three-year transition period, and the full impact of the CECL standard was phased-in to regulatory capital through December 31, 2024. In the first quarter of 2025, CECL will be fully reflected in regulatory capital. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by five basis points.


Summary of Changes in Common Shares Outstanding

In thousands					Change 4Q24 vs.
		4Q24	3Q24	4Q23	3Q24		4Q23
Shares outstanding at beginning of period		991,251	943,200	936,161	5.1	%	5.9	%

Shares issued under employee compensation plans (net of cancellations and returns)		493	222	403	122.1		22.3
Shares issued under Scotiabank investment agreement		115,042	47,829	—	N/M		N/M
	Shares outstanding at end of period	1,106,786	991,251	936,564	11.7	%	18.2	%

N/M = Not Meaningful

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 6

Key declared a dividend in January of 2025 of $.205 per common share, payable in the first quarter of 2025.

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 4Q24 vs.
		4Q24		3Q24		4Q23		3Q24		4Q23
Revenue from continuing operations (TE)
Consumer Bank		$	872	$	814	$	770	7.1	%	13.2	%
Commercial Bank		999		868		804		15.1		24.3
Other (a)		(1,006)		(987)		(36)		(1.9)		N/M


	Total	$	865	$	695	$	1,538	24.5	%	(43.8)	%

Income (loss) from continuing operations attributable to Key
Consumer Bank		$	88	$	86	$	(11)	2.3	%	900.0	%
Commercial Bank		379		300		150		26.3		152.7
Other (a)		(711)		(797)		(74)		10.8		N/M


	Total	$	(244)	$	(411)	$	65	40.6	%	(475.4)	%

(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. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. 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 4Q24 vs.
	4Q24		3Q24		4Q23		3Q24		4Q23
Summary of operations
Net interest income (TE)	$	637	$	584	$	544	9.1	%	17.1	%
Noninterest income	235		230		226		2.2		4.0
Total revenue (TE)	872		814		770		7.1		13.2
Provision for credit losses	43		52		5		(17.3)		760.0
Noninterest expense	713		649		779		9.9		(8.5)
Income (loss) before income taxes (TE)	116		113		(14)		2.7		928.6
Allocated income taxes (benefit) and TE adjustments	28		27		(3)		3.7		N/M
Net income (loss) attributable to Key	$	88	$	86	$	(11)	2.3	%	900.0	%

Average balances
Loans and leases	$	37,567	$	38,332	$	40,763	(2.0)	%	(7.8)	%
Total assets	40,563		41,188		43,551		(1.5)		(6.9)
Deposits	87,476		86,431		83,557		1.2		4.7

Assets under management at period end	$	61,361	$	61,122	$	54,859	.4	%	11.9	%

TE = Taxable Equivalent, N/M = Not Meaningful

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 7


Additional Consumer Bank Data

Dollars in millions							Change 4Q24 vs.
	4Q24		3Q24		4Q23		3Q24		4Q23
Noninterest income
Trust and investment services income	$	115	$	114	$	105	.9	%	9.5	%
Service charges on deposit accounts	32		34		37		(5.9)		(13.5)
Cards and payments income	64		60		62		6.7		3.2
Consumer mortgage income	16		12		11		33.3		45.5
Other noninterest income	8		10		11		(20.0)		(27.3)
Total noninterest income	$	235	$	230	$	226	2.2	%	4.0	%

Average deposit balances
Money market deposits	$	31,968	$	30,805	$	29,546	3.8	%	8.2	%
Demand deposits	22,442		22,310		22,323		.6		.5
Savings deposits	4,391		4,553		5,238		(3.6)		(16.2)

Time deposits	13,979		13,927		10,261		.4		36.2
Noninterest-bearing deposits	14,696		14,836		16,189		(.9)		(9.2)
Total deposits	$	87,476	$	86,431	$	83,557	1.2	%	4.7	%






Other data
Branches	944		944		959
Automated teller machines	1,182		1,194		1,217

Consumer Bank Summary of Operations (4Q24 vs. 4Q23)

•Key's Consumer Bank recorded net income attributable to Key of $88 million for the fourth quarter of 2024, compared to a loss of $11 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $93 million, or 17.1%, compared to the fourth quarter of 2023

•Average loans and leases decreased $3.2 billion, or 7.8%, from the fourth quarter of 2023, driven by broad-based declines across all loan categories

•Average deposits increased $3.9 billion, or 4.7%, from the fourth quarter of 2023, driven by growth in money market deposits and certificates of deposit

•Provision for credit losses increased $38 million compared to the fourth quarter of 2023, largely driven by higher net charge-offs

•Noninterest income increased $9 million from the year-ago quarter, driven by increases in trust and investment services, consumer mortgage, and cards and payments income

•Noninterest expense decreased $66 million from the year-ago quarter, primarily driven by a FDIC special assessment charge in the fourth quarter of 2023

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 8


Commercial Bank

Dollars in millions							Change 4Q24 vs.
	4Q24		3Q24		4Q23		3Q24		4Q23
Summary of operations
Net interest income (TE)	$	537	$	460	$	452	16.7	%	18.8	%
Noninterest income	462		408		352		13.2		31.3
Total revenue (TE)	999		868		804		15.1		24.3
Provision for credit losses	(3)		41		96		(107.3)		(103.1)
Noninterest expense	516		445		526		16.0		(1.9)
Income (loss) before income taxes (TE)	486		382		182		27.2		167.0
Allocated income taxes and TE adjustments	107		82		32		30.5		234.4


Net income (loss) attributable to Key	$	379	$	300	$	150	26.3	%	152.7	%

Average balances
Loans and leases	$	66,691	$	67,452	$	72,713	(1.1)	%	(8.3)	%
Loans held for sale	1,247		998		635		24.9		96.4
Total assets	76,433		76,395		82,026		—		(6.8)
Deposits	59,687		58,696		58,196		1.7	%	2.6	%

TE = Taxable Equivalent


Additional Commercial Bank Data

Dollars in millions							Change 4Q24 vs.
	4Q24		3Q24		4Q23		3Q24		4Q23
Noninterest income
Trust and investment services income	$	27	$	25	$	27	8.0	%	—	%
Investment banking and debt placement fees	220		171		135		28.7		63.0
Cards and payments income	18		22		20		(18.2)		(10.0)
Service charges on deposit accounts	32		32		28		—		14.3
Corporate services income	67		62		61		8.1		9.8
Commercial mortgage servicing fees	67		73		49		(8.2)		36.7
Operating lease income and other leasing gains	15		16		21		(6.3)		(28.6)
Other noninterest income	16		7		11		128.6		45.5
Total noninterest income	$	462	$	408	$	352	13.2	%	31.3	%

Commercial Bank Summary of Operations (4Q24 vs. 4Q23)

•Key's Commercial Bank recorded net income attributable to Key of $379 million for the fourth quarter of 2024 compared to $150 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $85 million, or 18.8%, compared to the fourth quarter of 2023

•Average loan and lease balances decreased $6.0 billion, or 8.3%, compared to the fourth quarter of 2023, driven by a decline in commercial and industrial loans and commercial real estate loans

•Average deposit balances increased $1.5 billion compared to the fourth quarter of 2023, driven by our focus on growing deposits across our commercial businesses

•Provision for credit losses decreased $99 million compared to the fourth quarter of 2023, driven by lower loan balances, slowing asset quality migration, and changes in the economic outlook

•Noninterest income increased $110 million compared to the fourth quarter of 2023, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees

•Noninterest expense decreased $10 million compared to the fourth quarter of 2023, driven by a FDIC special assessment charge in the fourth quarter of 2023, partly offset by higher incentive compensation from an increase in investment banking activity

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

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 December 31, 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 Fourth Quarter 2024 Results

January 21, 2025

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, Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, 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 8:00 a.m. ET, on January 21, 2025. A replay of the call will be available on our website through January 21, 2026.

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 Fourth Quarter 2024 Results

January 21, 2025

Page 11

KeyCorp

Fourth Quarter 2024

Financial Supplement

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

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).

Forward-Looking Non-GAAP Financial Measures

From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.

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

The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. 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 loans, and certain lease assets, on a common basis that facilitates comparison of results to 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, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 13


Financial Highlights
(Dollars in millions, except per share amounts)
			Three months ended
			12/31/2024			9/30/2024			12/31/2023
Summary of operations
	Net interest income (TE)		$	1,061		$	964		$	928
	Noninterest income		(196)			(269)			610
		Total revenue (TE)	865			695			1,538
	Provision for credit losses		39			95			102
	Noninterest expense		1,229			1,094			1,372
	Income (loss) from continuing operations attributable to Key		(244)			(411)			65
	Income (loss) from discontinued operations, net of taxes		—			1			—
	Net income (loss) attributable to Key		(244)			(410)			65

	Income (loss) from continuing operations attributable to Key common shareholders		(279)			(447)			30
	Income (loss) from discontinued operations, net of taxes		—			1			—
	Net income (loss) attributable to Key common shareholders		(279)			(446)			30

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	(.28)		$	(.47)		$	.03
	Income (loss) from discontinued operations, net of taxes		—			—			—
	Net income (loss) attributable to Key common shareholders (a)		(.28)			(.47)			.03

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		(.28)			(.47)			.03
	Income (loss) from discontinued operations, net of taxes — assuming dilution		—			—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)		(.28)			(.47)			.03

	Cash dividends declared		.205			.205			.205
	Book value at period end		14.21			14.53			13.02
	Tangible book value at period end		11.70			11.72			10.02
	Market price at period end		17.14			16.75			14.40

Performance ratios
	From continuing operations:
	Return on average total assets		(.52)		%	(.87)		%	.14		%
	Return on average common equity		(7.80)			(13.41)			1.08
	Return on average tangible common equity (b)		(9.69)			(16.98)			1.46
	Net interest margin (TE)		2.41			2.17			2.07
	Cash efficiency ratio (b)		141.3			156.4			88.6

	From consolidated operations:
	Return on average total assets		(.52)		%	(.87)		%	.14		%
	Return on average common equity		(7.80)			(13.38)			1.08
	Return on average tangible common equity (b)		(9.69)			(16.95)			1.46
	Net interest margin (TE)		2.41			2.17			2.07
	Loan to deposit (c)		70.3			71.0			77.9

Capital ratios at period end
	Key shareholders’ equity to assets		9.7		%	8.9		%	7.8		%
	Key common shareholders’ equity to assets		8.4			7.6			6.5
	Tangible common equity to tangible assets (b)		7.0			6.2			5.1
	Common Equity Tier 1 (d)		12.0			10.8			10.0
	Tier 1 risk-based capital (d)		13.7			12.6			11.7
	Total risk-based capital (d)		16.2			15.1			14.2
	Leverage (d)		10.1			9.2			9.0

Asset quality — from continuing operations
	Net loan charge-offs		$	114		$	154		$	76
	Net loan charge-offs to average loans		.43		%	.58		%	.26		%
	Allowance for loan and lease losses		$	1,409		$	1,494		$	1,508
	Allowance for credit losses		1,699			1,774			1,804
	Allowance for loan and lease losses to period-end loans		1.35		%	1.42		%	1.34		%
	Allowance for credit losses to period-end loans		1.63			1.68			1.60
	Allowance for loan and lease losses to nonperforming loans		186			205			263
	Allowance for credit losses to nonperforming loans		224			244			314
	Nonperforming loans at period-end		$	758		$	728		$	574
	Nonperforming assets at period-end		772			741			591
	Nonperforming loans to period-end portfolio loans		.73		%	.69		%	.51		%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.74			.70			.52

Trust assets
	Assets under management		$	61,361		$	61,122		$	54,859


Other data
	Average full-time equivalent employees		16,810			16,805			17,129
	Branches		944			944			959
	Taxable-equivalent adjustment		$	10		$	12		$	7

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 14



Financial Highlights (continued)
(Dollars in millions, except per share amounts)
		Twelve months ended
		12/31/2024			12/31/2023
Summary of operations
	Net interest income (TE)	$	3,810		$	3,943
	Noninterest income	809			2,470
	Total revenue (TE)	4,619			6,413
	Provision for credit losses	335			489
	Noninterest expense	4,545			4,734
	Income (loss) from continuing operations attributable to Key	(163)			964
	Income (loss) from discontinued operations, net of taxes	2			3
	Net income (loss) attributable to Key	(161)			967

	Income (loss) from continuing operations attributable to Key common shareholders	(306)			821
	Income (loss) from discontinued operations, net of taxes	2			3
	Net income (loss) attributable to Key common shareholders	(304)			824

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders	$	(.32)		$	.88
	Income (loss) from discontinued operations, net of taxes	—			—
	Net income (loss) attributable to Key common shareholders (a)	(.32)			.89

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	(.32)			.88
	Income (loss) from discontinued operations, net of taxes — assuming dilution	—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)	(.32)			.88

	Cash dividends paid	.82			.82

Performance ratios
	From continuing operations:
	Return on average total assets	(.09)		%	.50		%
	Return on average common equity	(2.37)			7.21
	Return on average tangible common equity (b)	(3.03)			9.60
	Net interest margin (TE)	2.16			2.17
	Cash efficiency ratio (b)	97.8			73.2

	From consolidated operations:
	Return on average total assets	(.09)		%	.50		%
	Return on average common equity	(2.36)			7.24
	Return on average tangible common equity (b)	(3.01)			9.63
	Net interest margin (TE)	2.16			2.17

Asset quality — from continuing operations
	Net loan charge-offs	$	440		$	244
	Net loan charge-offs to average total loans	.41		%	.21		%

Other data
	Average full-time equivalent employees	16,753			17,692

Taxable-equivalent adjustment		45			30

(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)December 31, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

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," “cash efficiency ratio," "adjusted taxable-equivalent revenue," "noninterest expense adjusted for selected items," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."

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.

Adjusted taxable-equivalent revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and selected items. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to those selected items.

Noninterest expense adjusted for selected items is a non-GAAP measure in that it excludes selected items. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects on noninterest expense related to those selected items.

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or “adjusted net income”) and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude selected items, net of tax. Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to the selected items.

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									Twelve months ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024			12/31/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)	$	18,176		$	16,852		$	14,637
Less: Intangible assets (a)	2,779			2,786			2,806
Preferred Stock (b)	2,446			2,446			2,446
Tangible common equity (non-GAAP)	$	12,951		$	11,620		$	9,385
Total assets (GAAP)	$	187,168		$	189,763		$	188,281
Less: Intangible assets (a)	2,779			2,786			2,806
Tangible assets (non-GAAP)	$	184,389		$	186,977		$	185,475
Tangible common equity to tangible assets ratio (non-GAAP)	7.02		%	6.21		%	5.06		%




Pre-provision net revenue
Net interest income (GAAP)	$	1,051		$	952		$	921		$	3,765		$	3,913
Plus: Taxable-equivalent adjustment	10			12			7			45			30
Noninterest income	(196)			(269)			610			809			2,470
Less: Noninterest expense	1,229			1,094			1,372			4,545			4,734
Pre-provision net revenue from continuing operations (non-GAAP)	$	(364)		$	(399)		$	166		$	74		$	1,513
Average tangible common equity
Average Key shareholders' equity (GAAP)	$	16,732		$	15,759		$	13,471		$	15,408		$	13,881
Less: Intangible assets (average) (c)	2,783			2,789			2,811			2,793			2,831
Preferred stock (average)	2,500			2,500			2,500			2,500			2,500
Average tangible common equity (non-GAAP)	$	11,449		$	10,470		$	8,160		$	10,115		$	8,689
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	(279)		$	(447)		$	30		$	(306)		$	821


Average tangible common equity (non-GAAP)	11,449			10,470			8,160			10,115			8,689

Return on average tangible common equity from continuing operations (non-GAAP)	(9.69)		%	(16.98)		%	1.46		%	(3.03)		%	9.60		%

Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	(279)		$	(446)		$	30		$	(304)		$	824
Average tangible common equity (non-GAAP)	11,449			10,470			8,160			10,115			8,689

Return on average tangible common equity consolidated (non-GAAP)	(9.69)		%	(16.95)		%	1.46		%	(3.01)		%	9.63		%

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 16


GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
	Three months ended									Twelve months ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024			12/31/2023













































Cash efficiency ratio
Noninterest expense (GAAP)	$	1,229		$	1,094		$	1,372		$	4,545		$	4,734
Less: Intangible asset amortization	7			7			10			29			39
Adjusted noninterest expense (non-GAAP)	$	1,222		$	1,087		$	1,362		$	4,516		$	4,695



Net interest income (GAAP)	$	1,051		$	952		$	921		$	3,765		$	3,913
Plus: Taxable-equivalent adjustment	10			12			7			45			30
Net interest income TE (non-GAAP)	1,061			964			928			3,810			3,943
Noninterest income (GAAP)	(196)			(269)			610			809			2,470
Total taxable-equivalent revenue (non-GAAP)	$	865		$	695		$	1,538		$	4,619		$	6,413



Cash efficiency ratio (non-GAAP)	141.3		%	156.4		%	88.6		%	97.8		%	73.2		%






Adjusted taxable-equivalent revenue
Noninterest income (GAAP)	$	(196)		$	(269)		$	610		$	809		$	2,470
Plus: Selected items(d)	918			918			—			1,836			—
Adjusted noninterest income (non-GAAP)	$	722		$	649		$	610		$	2,645		$	2,470
Net interest income TE (non-GAAP)	1,061			964			928			3,810			3,943
Total adjusted taxable-equivalent revenue (non-GAAP)	$	1,783		$	1,613		$	1,538		$	6,455		$	6,413
Noninterest expense adjusted for selected items
Noninterest expense (GAAP)	$	1,229		$	1,094		$	1,372		$	4,545		$	4,734
Plus: Selected items(d)	3			6			(275)			(25)			(339)
Noninterest expense adjusted for selected items (non-GAAP)	$	1,232		$	1,100		$	1,097		$	4,520		$	4,395
Adjusted income (loss) available from continuing operations attributable to Key common shareholders
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	(279)		$	(447)		$	30		$	(306)		$	821
Plus: Selected items (net of tax)(d)	657			732			209			1,415			258
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)	$	378		$	285		$	239		$	1,109		$	1,079
Diluted earnings per common share (EPS) - adjusted
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)	$	(.28)		$	(.47)		$	.03		$	(.32)		$	.88
Plus: EPS impact of selected items(d)	.66			.77			.22			1.48			.27
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)	$	.38		$	.30		$	.25		$	1.16		$	1.15

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

(b)Net of capital surplus.

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

(d)Additional detail provided in Selected Items table on page 25

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 17


Consolidated Balance Sheets
(Dollars in millions)

			12/31/2024		9/30/2024		12/31/2023
Assets
	Loans		$	104,260	$	105,346	$	112,606
	Loans held for sale		797		1,058		483
	Securities available for sale		37,707		34,169		37,185
	Held-to-maturity securities		7,395		7,702		8,575
	Trading account assets		1,283		1,404		1,142
	Short-term investments		17,504		22,796		10,817
	Other investments		1,041		1,117		1,244
		Total earning assets	169,987		173,592		172,052
	Allowance for loan and lease losses		(1,409)		(1,494)		(1,508)
	Cash and due from banks		1,743		1,276		941
	Premises and equipment		614		624		661
	Goodwill		2,752		2,752		2,752
	Other intangible assets		27		34		55
	Corporate-owned life insurance		4,394		4,379		4,383
	Accrued income and other assets		8,797		8,323		8,601
	Discontinued assets		263		277		344
		Total assets	$	187,168	$	189,763	$	188,281

Liabilities
	Deposits in domestic offices:





		Interest-bearing deposits	$	120,132	$	119,995	$	114,859
		Noninterest-bearing deposits	29,628		30,358		30,728
		Total deposits	149,760		150,353		145,587
	Federal funds purchased and securities sold under repurchase agreements		14		44		38
	Bank notes and other short-term borrowings		2,130		2,359		3,053
	Accrued expense and other liabilities		4,983		4,478		5,412
	Long-term debt		12,105		15,677		19,554
		Total liabilities	168,992		172,911		173,644

Equity
	Preferred stock		2,500		2,500		2,500
	Common shares		1,257		1,257		1,257
	Capital surplus		6,038		6,149		6,281
	Retained earnings		14,584		15,066		15,672
	Treasury stock, at cost		(2,733)		(4,839)		(5,844)
	Accumulated other comprehensive income (loss)		(3,470)		(3,281)		(5,229)
		Key shareholders’ equity	18,176		16,852		14,637


Total liabilities and equity			$	187,168	$	189,763	$	188,281

Common shares outstanding (000)			1,106,786		991,251		936,564

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 18


Consolidated Statements of Income
(Dollars in millions, except per share amounts)
			Three months ended						Twelve months ended
			12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
Interest income
	Loans		$	1,448	$	1,516	$	1,574	$	6,026	$	6,219
	Loans held for sale		20		18		12		60		61
	Securities available for sale		353		298		213		1,142		793
	Held-to-maturity securities		66		70		78		284		312
	Trading account assets		16		15		13		61		55
	Short-term investments		214		244		138		792		414
	Other investments		15		14		22		62		73
		Total interest income	2,132		2,175		2,050		8,427		7,927
Interest expense
	Deposits		821		887		754		3,307		2,322
	Federal funds purchased and securities sold under repurchase agreements		1		1		—		4		79
	Bank notes and other short-term borrowings		24		43		45		164		308
	Long-term debt		235		292		330		1,187		1,305
		Total interest expense	1,081		1,223		1,129		4,662		4,014
Net interest income			1,051		952		921		3,765		3,913
Provision for credit losses			39		95		102		335		489
Net interest income after provision for credit losses			1,012		857		819		3,430		3,424
Noninterest income
	Trust and investment services income		142		140		132		557		516
	Investment banking and debt placement fees		221		171		136		688		542
	Cards and payments income		85		84		84		331		340
	Service charges on deposit accounts		65		67		65		261		270
	Corporate services income		69		69		67		275		302
	Commercial mortgage servicing fees		68		73		48		258		190
	Corporate-owned life insurance income		36		36		36		138		132
	Consumer mortgage income		16		12		11		58		51
	Operating lease income and other leasing gains		15		16		22		76		92
	Other income		(5)		(2)		13		23		46
	Net securities gains (losses)		(908)		(935)		(4)		(1,856)		(11)
		Total noninterest income	(196)		(269)		610		809		2,470
Noninterest expense
	Personnel		734		670		674		2,714		2,660
	Net occupancy		67		66		65		266		267
	Computer processing		107		104		92		414		368
	Business services and professional fees		55		41		44		174		168
	Equipment		20		20		24		80		88
	Operating lease expense		15		14		18		63		77
	Marketing		33		21		31		94		109



	Other expense		198		158		424		740		997
		Total noninterest expense	1,229		1,094		1,372		4,545		4,734
Income (loss) from continuing operations before income taxes			(413)		(506)		57		(306)		1,160
	Income taxes (benefit)		(169)		(95)		(8)		(143)		196
Income (loss) from continuing operations			(244)		(411)		65		(163)		964
	Income (loss) from discontinued operations, net of taxes		—		1		—		2		3
Net income (loss)			$	(244)	$	(410)	$	65	$	(161)	$	967



Income (loss) from continuing operations attributable to Key common shareholders			$	(279)	$	(447)	$	30	$	(306)	$	821
Net income (loss) attributable to Key common shareholders			(279)		(446)		30		(304)		824
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	(.28)	$	(.47)	$	.03	$	(.32)	$	.88
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			(.28)		(.47)		.03		(.32)		.89
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	(.28)	$	(.47)	$	.03	$	(.32)	$	.88
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			(.28)		(.47)		.03		(.32)		.88

Cash dividends declared per common share			$	.205	$	.205	$	.205	$	.820	$	.820

Weighted-average common shares outstanding (000)			986,829		948,979		927,517		949,561		927,217
	Effect of common share options and other stock awards(b)		—		—		6,529		—		5,542
Weighted-average common shares and potential common shares outstanding (000) (c)			986,829		948,979		934,046		949,561		932,759

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

(b)For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.

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

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 19


Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		Fourth Quarter 2024						Third Quarter 2024						Fourth 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)	$	52,887	$	817	6.15	%	$	53,121	$	847	6.34	%	$	56,664	$	870	6.09	%
	Real estate — commercial mortgage	13,343		202		6.01		13,864		225		6.46		15,346		234		6.05
	Real estate — construction	3,033		55		7.23		3,077		59		7.65		3,028		54		7.05
	Commercial lease financing	2,826		24		3.51		2,988		26		3.46		3,568		30		3.34
	Total commercial loans	72,089		1,098		6.07		73,050		1,157		6.30		78,606		1,188		6.00
	Real estate — residential mortgage	19,990		166		3.32		20,215		167		3.30		21,113		174		3.30
	Home equity loans	6,445		93		5.75		6,634		100		5.98		7,227		108		5.93
	Other consumer loans	5,256		67		5.08		5,426		69		5.08		6,015		75		4.94
	Credit cards	931		34		14.36		919		35		15.22		987		36		14.47

	Total consumer loans	32,622		360		4.40		33,194		371		4.46		35,342		393		4.43
	Total loans	104,711		1,458		5.55		106,244		1,528		5.73		113,948		1,581		5.51
	Loans held for sale	1,327		20		6.05		1,098		18		6.54		695		12		6.85
	Securities available for sale (b), (e)	37,952		353		3.38		36,700		298		2.87		35,576		213		1.99
	Held-to-maturity securities (b)	7,541		66		3.50		7,838		70		3.58		8,714		78		3.56
	Trading account assets	1,215		16		4.98		1,142		15		5.08		1,104		13		4.93
	Short-term investments	17,575		214		4.83		17,773		244		5.47		9,571		138		5.72
	Other investments (e)	1,045		15		5.72		1,193		14		4.77		1,297		22		6.91
	Total earning assets	171,366		2,142		4.87		171,988		2,187		4.93		170,905		2,057		4.60
	Allowance for loan and lease losses	(1,486)						(1,533)						(1,484)
	Accrued income and other assets	17,308						17,154						17,471
	Discontinued assets	268						284						351
	Total assets	$	187,456					$	187,893					$	187,243
Liabilities
	Money market deposits	$	40,676	$	283	2.77	%	$	40,379	$	309	3.04	%	$	36,648	$	251	2.72	%
	Demand deposits	57,653		341		2.35		56,087		365		2.59		56,963		348		2.42
	Savings deposits	4,635		1		.07		4,967		3		.22		5,492		1		.05

	Time deposits	17,641		196		4.43		17,870		210		4.68		14,326		154		4.26
	Total interest-bearing deposits	120,605		821		2.71		119,303		887		2.96		113,429		754		2.63
	Federal funds purchased and securities sold under repurchase agreements	84		1		3.99		98		1		4.48		56		—		2.29
	Bank notes and other short-term borrowings	1,832		24		5.19		3,172		43		5.44		3,199		45		5.62
	Long-term debt (f)	13,984		235		6.70		16,422		292		7.09		19,921		330		6.64
	Total interest-bearing liabilities	136,505		1,081		3.15		138,995		1,223		3.50		136,605		1,129		3.29
	Noninterest-bearing deposits	29,128						28,468						31,647
	Accrued expense and other liabilities	4,823						4,387						5,169
	Discontinued liabilities (f)	268						284						351
	Total liabilities	$	170,724					$	172,134					$	173,772
Equity


	Total equity	$	16,732					$	15,759					$	13,471
	Total liabilities and equity	$	187,456					$	187,893					$	187,243
Interest rate spread (TE)						1.72	%					1.43	%					1.31	%
Net interest income (TE) and net interest margin (TE)				$	1,061	2.41	%			$	964	2.17	%			$	928	2.07	%
TE adjustment (b)				10						12						7
	Net interest income, GAAP basis			$	1,051					$	952					$	921

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) 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 December 31, 2024, September 30, 2024, and December 31, 2023.

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

(d)Commercial and industrial average balances include $216 million, $215 million, and $210 million of assets from commercial credit cards for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.

(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.8 billion, $41.6 billion, and $42.6 billion for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Yield based on the fair value of securities available for sale was 3.73%, 3.25%, and 2.39% for the three months ended December 31, 2024, September 30, 2024, and December 31, 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 Fourth Quarter 2024 Results

January 21, 2025

Page 20



Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		Twelve months ended December 31, 2024						Twelve months ended December 31, 2023
		Average				Yield/		Average				Yield/
		Balance		Interest (a)		Rate (a)		Balance		Interest (a)		Rate (a)
Assets
	Loans: (b), (c)
	Commercial and industrial (d)	$	53,951	$	3,378	6.26	%	$	59,379	$	3,444	5.80	%
	Real estate — commercial mortgage	14,080		873		6.20		15,968		931		5.83
	Real estate — construction	3,042		227		7.48		2,755		185		6.71
	Commercial lease financing	3,087		105		3.41		3,703		116		3.13
	Total commercial loans	74,160		4,583		6.18		81,805		4,676		5.72
	Real estate — residential mortgage	20,382		674		3.31		21,428		699		3.26
	Home equity loans	6,729		398		5.92		7,522		433		5.76
	Other consumer loans	5,519		278		5.04		6,263		305		4.86
	Credit cards	934		138		14.78		986		136		13.88

	Total consumer loans	33,564		1,488		4.43		36,199		1,573		4.35
	Total loans	107,724		6,071		5.64		118,004		6,249		5.30
	Loans held for sale	979		60		6.11		1,012		61		6.06
	Securities available for sale (b), (e)	37,127		1,142		2.71		37,718		793		1.80
	Held-to-maturity securities (b)	7,980		284		3.56		9,008		312		3.46
	Trading account assets	1,175		61		5.16		1,138		55		4.85
	Short-term investments	14,846		792		5.33		7,349		414		5.63
	Other investments (e)	1,177		62		5.25		1,392		73		5.28
	Total earning assets	171,008		8,472		4.81		175,621		7,957		4.37
	Allowance for loan and lease losses	(1,515)						(1,419)
	Accrued income and other assets	17,322						17,425
	Discontinued assets	296						384
	Total assets	$	187,111					$	192,011
Liabilities
	Money market deposits	$	39,525	$	1,146	2.90	%	$	34,539	$	666	1.93	%
	Other demand deposits	56,130		1,402		2.50		54,711		1,102		2.01
	Savings deposits	5,010		7		.14		6,343		3		.04

	Time deposits	16,497		752		4.56		13,794		551		4.00
	Total interest-bearing deposits	117,162		3,307		2.82		109,387		2,322		2.12
	Federal funds purchased and securities sold under repurchase agreements	103		4		4.35		1,647		79		4.81
	Bank notes and other short-term borrowings	2,984		164		5.49		5,890		308		5.24
	Long-term debt (f)	17,279		1,187		6.87		20,983		1,305		6.22
	Total interest-bearing liabilities	137,528		4,662		3.39		137,907		4,014		2.91
	Noninterest-bearing deposits	28,993						34,672
	Accrued expense and other liabilities	4,886						5,167
	Discontinued liabilities (f)	296						384
	Total liabilities	$	171,703					$	178,130
Equity


	Total equity	$	15,408					$	13,881
	Total liabilities and equity	$	187,111					$	192,011
Interest rate spread (TE)						1.42	%					1.46	%
Net interest income (TE) and net interest margin (TE)				$	3,810	2.16	%			$	3,943	2.17	%
TE adjustment (b)				45						30
	Net interest income, GAAP basis			$	3,765					$	3,913

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) 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 twelve months ended December 31, 2024, and December 31, 2023, respectively.

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

(d)Commercial and industrial average balances include $215 million and $196 million of assets from commercial credit cards for the twelve months ended December 31, 2024, and December 31, 2023, respectively.

(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $42.2 billion and $44.0 billion for the twelve months ended December 31, 2024, and December 31, 2023, respectively. Yield based on the fair value of securities available for sale was 3.08% and 2.10% for the twelve months ended December 31, 2024, and December 31, 2023, respectively.

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

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 21


Noninterest Expense
(Dollars in millions)

	Three months ended						Twelve months ended
	12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
Personnel (a)	$	734	$	670	$	674	$	2,714	$	2,660
Net occupancy	67		66		65		266		267
Computer processing	107		104		92		414		368
Business services and professional fees	55		41		44		174		168
Equipment	20		20		24		80		88
Operating lease expense	15		14		18		63		77
Marketing	33		21		31		94		109



Other expense	198		158		424		740		997
Total noninterest expense	$	1,229	$	1,094	$	1,372	$	4,545	$	4,734


Average full-time equivalent employees (b)	16,810		16,805		17,129		16,753		17,692

(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						Twelve months ended
	12/31/2024		9/30/2024		12/31/2023		12/31/2024		12/31/2023
Salaries and contract labor	$	418	$	408	$	399	$	1,609	$	1,649
Incentive and stock-based compensation	197		162		139		661		525
Employee benefits	119		99		97		442		405
Severance	—		1		39		2		81
Total personnel expense	$	734	$	670	$	674	$	2,714	$	2,660

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 22


Loan Composition
(Dollars in millions)

							Change 12/31/2024 vs.
	12/31/2024		9/30/2024		12/31/2023		9/30/2024		12/31/2023
Commercial and industrial (a)(b)	$	52,909	$	52,774	$	55,815	.3	%	(5.2)	%
Commercial real estate:
Commercial mortgage	13,310		13,637		15,187		(2.4)		(12.4)
Construction	2,936		3,093		3,066		(5.1)		(4.2)
Total commercial real estate loans	16,246		16,730		18,253		(2.9)		(11.0)
Commercial lease financing (b)	2,736		2,913		3,523		(6.1)		(22.3)
Total commercial loans	71,891		72,417		77,591		(.7)		(7.3)
Residential — prime loans:
Real estate — residential mortgage	19,886		20,122		20,958		(1.2)		(5.1)
Home equity loans	6,358		6,555		7,139		(3.0)		(10.9)
Total residential — prime loans	26,244		26,677		28,097		(1.6)		(6.6)
Other consumer loans	5,167		5,338		5,916		(3.2)		(12.7)
Credit cards	958		914		1,002		4.8		(4.4)

Total consumer loans	32,369		32,929		35,015		(1.7)		(7.6)
Total loans (c), (d)	$	104,260	$	105,346	$	112,606	(1.0)	%	(7.4)	%

(a)Loan balances include $212 million, $219 million, and $207 million of commercial credit card balances at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.

(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $211 million at December 31, 2024, $261 million at September 30, 2024 and no amounts held as collateral for a secured borrowing at December 31, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $3 million, $3 million, and $7 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $257 million at December 31, 2024, $272 million at September 30, 2024, and $339 million at December 31, 2023, related to the discontinued operations of the education lending business.

(d)Accrued interest of $456 million, $480 million, and $522 million at December 31, 2024, September 30, 2024, and December 31, 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 12/31/2024 vs.
	12/31/2024		9/30/2024		12/31/2023		9/30/2024		12/31/2023
Commercial and industrial	$	88	$	250	$	50	(64.8)	%	76.0	%
Real estate — commercial mortgage	616		747		382		(17.5)		61.3


Real estate — residential mortgage	93		61		51		52.5		82.4

Total loans held for sale	$	797	$	1,058	$	483	(24.7)	%	65.0	%


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

	4Q24		3Q24		2Q24		1Q24		4Q23
Balance at beginning of period	$	1,058	$	517	$	228	$	483	$	730
New originations	2,915		2,473		1,532		1,738		1,879
Transfers from (to) held to maturity, net	—		(16)		(1)		(105)		(31)
Loan sales	(3,039)		(1,889)		(1,234)		(1,893)		(2,095)
Loan draws (payments), net	(136)		(28)		(7)		4		—
Valuation and other adjustments	(1)		1		(1)		1		—
Balance at end of period	$	797	$	1,058	$	517	$	228	$	483

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 23


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

	Three months ended									Twelve months ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024			12/31/2023
Average loans outstanding	$	104,711		$	106,244		$	113,948		$	107,724		$	118,004


Allowance for loan and lease losses at the beginning of the period	$	1,494		$	1,547		$	1,488		$	1,508		$	1,337
Loans charged off:
Commercial and industrial	84			131			49			363			188

Real estate — commercial mortgage	18			7			24			40			39
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	18			7			24			40			39
Commercial lease financing	1			—			—			7			—
Total commercial loans	103			138			73			410			227
Real estate — residential mortgage	1			—			—			3			1
Home equity loans	—			1			(2)			2			2
Other consumer loans	15			17			14			64			51
Credit cards	12			11			10			47			37

Total consumer loans	28			29			22			116			91
Total loans charged off	131			167			95			526			318
Recoveries:
Commercial and industrial	12			7			11			58			44

Real estate — commercial mortgage	—			1			1			2			2
Real estate — construction	—			—			1			—			1
Total commercial real estate loans	—			1			2			2			3
Commercial lease financing	—			—			1			5			5
Total commercial loans	12			8			14			65			52
Real estate — residential mortgage	1			1			1			5			4
Home equity loans	—			1			—			2			3
Other consumer loans	2			2			1			8			8
Credit cards	2			1			3			6			7

Total consumer loans	5			5			5			21			22
Total recoveries	17			13			19			86			74
Net loan charge-offs	(114)			(154)			(76)			(440)			(244)
Provision (credit) for loan and lease losses	29			101			96			341			415

Allowance for loan and lease losses at end of period	$	1,409		$	1,494		$	1,508		$	1,409		$	1,508




Liability for credit losses on lending-related commitments at beginning of period	$	280		$	286		$	290		$	296		$	225
Provision (credit) for losses on lending-related commitments	10			(6)			6			(6)			74
Other	—			—			—			—			(3)
Liability for credit losses on lending-related commitments at end of period (a)	$	290		$	280		$	296		$	290		$	296

Total allowance for credit losses at end of period	$	1,699		$	1,774		$	1,804		$	1,699		$	1,804

Net loan charge-offs to average total loans	.43		%	.58		%	.26		%	.41		%	.21		%
Allowance for loan and lease losses to period-end loans	1.35			1.42			1.34			1.35			1.34
Allowance for credit losses to period-end loans	1.63			1.68			1.60			1.63			1.60
Allowance for loan and lease losses to nonperforming loans	186			205			263			186			263
Allowance for credit losses to nonperforming loans	224			244			314			224			314

Discontinued operations — education lending business:
Loans charged off	$	1		$	1		$	1		$	4		$	4
Recoveries	—			—			—			1			1
Net loan charge-offs	$	(1)		$	(1)		$	(1)		$	(3)		$	(3)

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

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 24


Asset Quality Statistics From Continuing Operations
(Dollars in millions)
	4Q24			3Q24			2Q24			1Q24			4Q23
Net loan charge-offs	$	114		$	154		$	91		$	81		$	76
Net loan charge-offs to average total loans	.43		%	.58		%	.34		%	.29		%	.26		%
Allowance for loan and lease losses	$	1,409		$	1,494		$	1,547		$	1,542		$	1,508
Allowance for credit losses (a)	1,699			1,774			1,833			1,823			1,804
Allowance for loan and lease losses to period-end loans	1.35		%	1.42		%	1.44		%	1.40		%	1.34		%
Allowance for credit losses to period-end loans	1.63			1.68			1.71			1.66			1.60
Allowance for loan and lease losses to nonperforming loans	186			205			218			234			263
Allowance for credit losses to nonperforming loans	224			244			258			277			314
Nonperforming loans at period end	$	758		$	728		$	710		$	658		$	574
Nonperforming assets at period end	772			741			727			674			591
Nonperforming loans to period-end portfolio loans	.73		%	.69		%	.66		%	.60		%	.51		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.74			.70			.68			.61			.52

(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)
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
Commercial and industrial	$	322		$	365		$	358		$	360		$	297

Real estate — commercial mortgage	243			176			173			113			100
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	243			176			173			113			100
Commercial lease financing	—			—			1			1			—
Total commercial loans	565			541			532			474			397
Real estate — residential mortgage	92			87			77			79			71
Home equity loans	89			90			91			95			97
Other Consumer loans	5			4			4			4			4
Credit cards	7			6			6			6			5

Total consumer loans	193			187			178			184			177
Total nonperforming loans (a)	758			728			710			658			574
OREO	14			13			17			16			17
Nonperforming loans held for sale	—			—			—			—			—
Other nonperforming assets	—			—			—			—			—
Total nonperforming assets	$	772		$	741		$	727		$	674		$	591
Accruing loans past due 90 days or more	$	90		$	166		$	137		$	119		$	107
Accruing loans past due 30 through 89 days	206			184			282			242			222
Nonperforming assets from discontinued operations — education lending business	2			2			3			2			3
Nonperforming loans to period-end portfolio loans	.73		%	.69		%	.66		%	.60		%	.51		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.74			.70			.68			.61			.52


Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
	4Q24		3Q24		2Q24		1Q24		4Q23
Balance at beginning of period	$	728	$	710	$	658	$	574	$	455
Loans placed on nonaccrual status	309		271		317		243		297

Charge-offs	(131)		(167)		(131)		(97)		(95)
Loans sold	(13)		(32)		(22)		(5)		(9)
Payments	(111)		(37)		(76)		(35)		(56)
Transfers to OREO	(2)		(1)		(1)		(2)		(2)


Loans returned to accrual status	(22)		(16)		(35)		(20)		(16)
Balance at end of period	$	758	$	728	$	710	$	658	$	574

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 25


Line of Business Results
(Dollars in millions)

																Change 4Q24 vs.
	4Q24			3Q24			2Q24			1Q24			4Q23			3Q24		4Q23
Consumer Bank
Summary of operations
Total revenue (TE)	$	872		$	814		$	769		$	757		$	770		7.1	%	13.2	%
Provision for credit losses	43			52			33			(2)			5			(17.3)		760.0
Noninterest expense	713			649			648			704			779			9.9		(8.5)
Net income (loss) attributable to Key	88			86			67			41			(11)			2.3		900.0
Average loans and leases	37,567			38,332			39,174			39,919			40,763			(2.0)		(7.8)
Average deposits	87,476			86,431			85,397			84,075			83,557			1.2		4.7
Net loan charge-offs	63			54			45			44			40			16.7		57.5
Net loan charge-offs to average total loans	.67		%	.56		%	.46		%	.44		%	.39		%	19.6		71.8
Nonperforming assets at period end	$	201		$	195		$	190		$	196		$	190		3.1		5.8
Return on average allocated equity	10.85		%	10.34		%	7.93		%	4.69		%	(1.28)		%	4.9		947.7


Commercial Bank
Summary of operations
Total revenue (TE)	$	999		$	868		$	769		$	798		$	804		15.1	%	24.3	%
Provision for credit losses	(3)			41			87			102			96			(107.3)		(103.1)
Noninterest expense	516			445			431			442			526			16.0		(1.9)
Net income (loss) attributable to Key	379			300			207			205			150			26.3		152.7
Average loans and leases	66,691			67,452			69,248			70,633			72,713			(1.1)		(8.3)
Average loans held for sale	1,247			998			522			840			635			24.9		96.4
Average deposits	59,687			58,696			57,360			56,331			58,196			1.7		2.6
Net loan charge-offs	52			99			64			37			35			(47.5)		48.6
Net loan charge-offs to average total loans	.31		%	.58		%	.37		%	.21		%	.19		%	(46.6)		63.2
Nonperforming assets at period end	$	571		$	546		$	537		$	478		$	401		4.6		42.4
Return on average allocated equity	15.50		%	11.98		%	8.31		%	8.24		%	5.88		%	29.4		163.6

TE = Taxable Equivalent


Selected Items Impact on Earnings
(Dollars in millions, except per share amounts)
	Pretax(a)		After-tax at marginal rate(a)
Quarter to date results	Amount		Net Income		EPS(c)(f)
Three months ended December 31, 2024


Loss on sale of securities(b)	$	(915)	$	(657)	$	(0.66)
Scotiabank investment agreement valuation (other income)	(3)		(2)		—
FDIC special assessment (other expense)(d)	3		2		—


Three months ended September 30, 2024


Loss on sale of securities(b)	(918)		(737)		(0.77)
FDIC special assessment (other expense)(d)	6		5		—

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 December 31, 2023

Efficiency related expenses(e)	(67)		(51)		(0.05)
Pension settlement (other expense)	(18)		(14)		(0.02)
FDIC special assessment (other expense)(d)	(190)		(144)		(0.15)

Year to date results
Twelve months ended December 31, 2024
Loss on sale of securities	(1,833)		(1,394)		(1.45)
Scotiabank investment agreement valuation (other income)	(3)		(2)		—
FDIC special assessment (other expense)(d)	(25)		(19)		(0.02)
Total selected items(f)	$	(1,861)	$	(1,415)	$	(1.48)

Twelve months ended December 31, 2023



Efficiency related expenses(e)	(131)		(100)		(0.10)





Pension settlement (other expense)	(18)		(14)		(0.02)
FDIC special assessment (other expense)(d)	(190)		(144)		(0.15)
Total selected items(f)	$	(339)	$	(258)	$	(0.27)

KeyCorp Reports Fourth Quarter 2024 Results

January 21, 2025

Page 26

(a)Favorable (unfavorable) impact.

(b)After-tax loss on sale of securities for the three months ended September 30, 2024 adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments recorded in the fourth quarter of 2024.

(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. Amounts reflected for the three-months ended June 30, 2024, September 30, 2024, and December 31, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.

(e)Efficiency related expenses for the three-months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense. Efficiency related expenses for the twelve-months ended December 31, 2023, consist primarily of $70 million of severance recorded in personnel expense and $52 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.

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

KeyCorp (KEY) 8-KResults of Operations and Financial Condition