KeyCorp (KEY) 8-K Keycorp Reports Second Quarter 2009 Results

Exhibit 99.1

News
	KeyCorp 127 Public Square Cleveland, OH 44114

CONTACTS:	ANALYSTS Vernon L. Patterson 216.689.0520 Vernon_Patterson@KeyBank.com	MEDIA William C. Murschel 216.828.7416 William_C_Murschel@KeyBank.com
	Christopher F. Sikora 216.689.3133 Chris_F_Sikora@KeyBank.com

INVESTOR
RELATIONS: www.key.com/ir KEY MEDIA
NEWSROOM: www.key.com/newsroom

FOR IMMEDIATE RELEASE

KEYCORP REPORTS SECOND QUARTER 2009 RESULTS

¨ Net loss from continuing operations of $.69 per common share

¨ Loan loss reserve increased to $2.5 billion, or 3.53% of total loans

¨ Raised $1.8 billion of Tier 1 common equity; fulfilled stress test requirement

¨ $8.2 billion in new or renewed loans and commitments originated

¨ Costs well controlled; Keyvolution initiative underway

     CLEVELAND, July 22, 2009 — KeyCorp (NYSE: KEY) today announced a second quarter net loss from continuing operations attributable to Key of $236 million, or $.69 per common share. Per share results for the current quarter are after cash and deemed preferred stock dividends of $164 million, or $.28 per common share. These dividends include a noncash deemed dividend of $114 million related to the exchange of Key common shares for Key’s Series A Preferred Stock as part of the company’s efforts to raise an additional $1.8 billion of Tier 1 common equity, and a cash dividend payment of $31 million made to the U.S. Treasury Department under the Capital Purchase Program. Results for the current quarter compare to a net loss from continuing operations of $1.128 billion, or $2.71 per common share, for the second quarter of 2008.

     The loss for the current quarter is largely the result of an increase in the provision for loan losses. During the second quarter, Key continued to build its loan loss reserves by taking an $850 million provision for loan losses, which exceeded net charge-offs by $311 million. As of the end of the quarter, Key’s allowance for loan losses was $2.5 billion, or 3.53% of total loans, up from $1.4 billion, or 1.87% one year ago. The loss for the year-ago quarter was largely attributable to a $1.011 billion after-tax charge recorded as a result of an adverse federal tax court ruling that impacted Key’s accounting for certain lease financing transactions.

     “Our results continue to reflect the weak economic environment and the aggressive steps we’ve taken to address credit quality, strengthen our capital position and control costs as we manage through this difficult credit cycle,” said Chief Executive Officer Henry L. Meyer III.

     During the second quarter, Key successfully raised more than $1.8 billion in new Tier 1 common equity as required by the Supervisory Capital Assessment Program (“SCAP”) initiated by the U.S. Treasury and, as of today, is well on its way to further supplement that amount through an additional offer to exchange common shares for retail capital securities, which is currently in progress. The additional capital will serve as a “buffer” in the event the U.S. economy worsens considerably through 2010. Throughout the current financial crisis, Key’s capital ratios have remained in excess of the “well-capitalized” levels established by the federal regulators. At June 30, 2009, Key had a Tier 1 risk-based capital ratio of 12.42% and a Tier 1 common equity ratio of 7.27%.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 2

     Meyer continued: “Key’s fortified capital position will also enable us to support our clients’ borrowing needs and benefit from other business opportunities when the economy recovers. During the second quarter, Key originated approximately $8.2 billion in new or renewed loans and commitments to consumers and businesses.

     “In conjunction with our efforts to improve Key’s competitive position, late last year we initiated a process known as “Keyvolution,” a corporate-wide initiative designed to build a consistently superior experience for clients, simplify processes, improve speed to market and enhance Key’s ability to seize growth and profit opportunities,” Meyer said. “Through this initiative, we expect to achieve annualized cost savings of $300 million to $375 million by 2012. Over the past fifteen months, we have been addressing certain noncore businesses, such as retail marine and private student lending activities. We have also deployed new teller platform technology throughout our company. These and other efforts have resulted in a reduction in our employee workforce of approximately 8%, or 1,500 positions, over the fifteen month period. Compared to the year-ago quarter, our personnel costs are down 6%.

     “Additionally, we have continued to build upon our relationship-based, client-focused business model. Our Community Banking business continues to benefit from these efforts as evidenced by a $2.7 billion, or 5%, increase in deposits compared to the second quarter of 2008.”

     The following table shows Key’s continuing and discontinued operating results for comparative quarters and for the six-month periods ended June 30, 2009 and 2008.

Results of Operations

	Three months ended									Six months ended
in millions, except per share amounts	6-30-09			3-31-09			6-30-08			6-30-09			6-30-08
Summary of operations
Loss from continuing operations attributable to Key	$	(236	)	$	(466	)	$	(1,128	)	$	(702	)	$	(911	)
Income (loss) from discontinued operations, net of taxes(a)		10			(22	)		2			(12	)		3
Net loss attributable to Key	$	(226	)	$	(488	)	$	(1,126	)	$	(714	)	$	(908	)
Loss from continuing operations attributable to Key	$	(236	)	$	(466	)	$	(1,128	)	$	(702	)	$	(911	)
Less: Dividends on Series A Preferred Stock		15			12			—			27			—
Noncash deemed dividend — common shares exchanged for Series A Preferred Stock		114			—			—			114			—
Cash dividends on Series B Preferred Stock		31			32			—			63			—
Amortization of discount on Series B Preferred Stock		4			4			—			8			—
Loss from continuing operations attributable to Key common shareholders		(400	)		(514	)		(1,128	)		(914	)		(911	)
Income (loss) from discontinued operations, net of taxes(a)		10			(22	)		2			(12	)		3
Net loss attributable to Key common shareholders	$	(390	)	$	(536	)	$	(1,126	)	$	(926	)	$	(908	)
Per common share — assuming dilution
Loss from continuing operations attributable to Key common shareholders	$	(.69	)	$	(1.04	)	$	(2.71	)	$	(1.71	)	$	(2.23	)
Income (loss) from discontinued operations, net of taxes(a)		.02			(.04	)		—			(.02	)		.01
Net loss attributable to Key common shareholders	$	(.68	)(b)	$	(1.09	)(b)	$	(2.70	)(b)	$	(1.73	)	$	(2.23	)(b)

(a)

In April 2009, management made the strategic decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of this decision, Key has accounted for this business as a discontinued operation. The loss from discontinued operations for the first quarter of 2009 was attributable to a $23 million after tax, or $.05 per common share, charge for intangible assets impairment.

(b)

Earnings per share may not foot due to rounding.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 3

     As shown in the following table, the comparability of Key’s earnings for the current, prior and year-ago quarters is affected by several significant items.

Significant Items Affecting the Comparability of Earnings

	Second Quarter 2009									First Quarter 2009									Second Quarter 2008
	Pre-tax			After-tax			Impact			Pre-tax			After-tax			Impact			Pre-tax			After-tax			Impact
in millions, except per share amounts	Amount			Amount			on EPS			Amount			Amount			on EPS			Amount			Amount			on EPS
Provision for loan losses in excess of net charge-offs	$	(311	)	$	(195	)	$	(.34	)	$	(383	)	$	(239	)	$	(.49	)	$	(123	)	$	(77	)	$	(.18	)
Noncash deemed dividend — common shares exchanged for Series A Preferred Stock		—			—			(.20	)(a)		—			—			—			—			—			—
FDIC special assessment		(44	)		(27	)		(.05	)		—			—			—			—			—			—
Realized and unrealized (losses) gains on loan and securities portfolios held for sale or trading		(20	)		(13	)		(.02	)		2			1			—			62			39			.09
Severance and other exit costs		(14	)		(9	)		(.02	)		(8	)		(5	)		(.01	)		(8	)		(5	)		(.01	)
Net losses from principal investing		(6	)		(4	)		(.01	)		(72	)		(45	)		(.09	)		(14	)		(8	)		(.02	)
Net gains from repositioning of securities portfolio		125			78			.13			—			—			—			—			—			—
Gain related to exchange of common shares for capital securities		95			59			.10			—			—			—			—			—			—
Gain from sale of Key’s claim associated with the Lehman Brothers’ bankruptcy		32			20			.03			—			—			—			—			—			—
Noncash charge for intangible assets impairment		—			—			—			(196	)(b)		(164	)(b)		(.33	)(b)		—			—			—
Gain from sale of Visa Inc. shares		—			—			—			105			65			.13			—			—			—
Charges related to leveraged lease tax litigation		—			—			—			—			—			—			(359	)		(1,011	)		(2.43	)

(a)	The deemed dividend related to the exchange of Key common shares for Series A Preferred Stock is subtracted from earnings to derive the numerator used in the calculation of per share results; it is not recorded as a reduction to equity.
(b)	Excludes a $27 million ($23 million after tax, or $.05 per common share) charge for intangible assets impairment related to the discontinued operations of Austin Capital Management, Ltd.
EPS = Earnings per common share

SUMMARY OF OPERATIONS

     Taxable-equivalent net interest income was $598 million for the second quarter of 2009 and the net interest margin was 2.67%. These results compare to taxable-equivalent net interest income of $738 million and a net interest margin of 3.32% for the second quarter of 2008, after adjusting for the effects of charges recorded one year ago in connection with subsequently resolved tax litigation pertaining to Key’s leveraged lease financing portfolio. As previously reported, Key’s taxable-equivalent net interest income for the second quarter of 2008 was reduced significantly as a result of an adverse federal court decision on the company’s tax treatment of a service contract lease transaction. In accordance with the applicable accounting guidance, Key recalculated the lease income recognized from inception for all of the leveraged leases being contested by the Internal Revenue Service, not just the single leveraged lease subject to the Court decision. Key’s results for the year-ago quarter also reflect a $475 million charge to income taxes for the interest cost associated with the contested tax liabilities. These actions reduced Key’s taxable-equivalent net interest income and net interest margin for the second quarter of 2008 by $838 million and 376 basis points, respectively, and reduced Key’s earnings by $1.011 billion, or $2.43 per common share.

     During the past twelve months, the net interest margin has remained under pressure as the decrease in the federal funds target rate has caused interest rates on earning assets to decline more rapidly than the rates paid for interest-bearing liabilities. Competition for deposits and a shift in deposit mix to higher costing, longer term certificates of deposit have also contributed to a lower net interest margin. During the same period, earning asset yields have been compressed as a result of the higher levels of nonperforming loans. In addition, during the second quarter of 2009, Key terminated certain leveraged lease financing arrangements, which reduced net interest income by $16 million and lowered the net interest margin by approximately 7 basis points.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 4

     Compared to the first quarter of 2009, taxable-equivalent net interest income decreased by $22 million, and the net interest margin was down 10 basis points. The reduction in the net interest margin reflects an increase in lower-yielding liquid assets, due in part to the weak demand for credit; a higher level of nonperforming loans; and the impact of actions described below to reposition Key’s securities portfolio.

     During May 2009, Key sold approximately $2.8 billion of collateralized mortgage obligations (“CMOs”), resulting in net gains of $125 million for the second quarter. These securities were sold as part of the company’s overall plan to generate additional capital required under the SCAP, and to reposition the securities available-for-sale portfolio to better support Key’s strategies for managing interest rate and liquidity risk. The proceeds from the sale were reinvested in CMOs issued by government-sponsored entities or GNMA.

     The reduction in the net interest margin caused by the above factors was moderated by the impact of new or renewed loans with more favorable interest rate spreads.

     Key’s noninterest income was $715 million for the second quarter of 2009, compared to $547 million for the year-ago quarter. The increase was attributable to three primary factors. In addition to the $125 million of net gains recorded in connection with the repositioning of the securities portfolio, in the current quarter Key recorded a $95 million gain related to the exchange of common shares for capital securities and a $32 million gain from the sale of Key’s claim associated with the Lehman Brothers’ bankruptcy. Additionally, net gains on leased equipment rose by $29 million, which more than offset the reduction to net interest income associated with the termination of lease financing arrangements. The increase attributable to the above factors was offset in part by a $63 million reduction in income from investment banking and capital markets activities, and net losses of $3 million from loan sales in the current quarter, compared to net gains of $33 million for the second quarter of 2008. Key also experienced lower income from trust and investment services, service charges on deposit accounts and operating leases.

     The major components of Key’s fee-based income for the past five quarters are shown in the following table.

Fee-based Income — Major Components

in millions	2Q09			1Q09			4Q08			3Q08			2Q08
Trust and investment services income	$	119		$	110		$	131		$	125		$	130
Service charges on deposit accounts		83			82			90			94			93
Operating lease income		59			61			64			69			68
Letter of credit and loan fees		45			38			42			53			51
Corporate-owned life insurance income		25			27			33			28			28
Electronic banking fees		27			24			25			27			27
Insurance income		16			18			15			15			20
Investment banking and capital markets income (loss)		17			18			6			(31	)		80
Net losses from principal investing		(6	)		(72	)		(37	)		(14	)		(14	)

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 5

     Compared to the first quarter of 2009, noninterest income increased by $230 million, due primarily to the gains recorded during the second quarter of 2009 in connection with the repositioning of the securities portfolio, the exchange of common shares for capital securities and the sale of Key’s claim associated with the Lehman Brothers’ bankruptcy. Also contributing to the improvement was a $66 million decrease in net losses from principal investing and a $9 million increase in income from trust and investment services. Noninterest income for the first quarter of 2009 includes a $105 million gain from the sale of Visa Inc. shares.

     Key’s noninterest expense was $870 million for the second quarter of 2009, compared to $777 million for the same period last year. Personnel expense decreased by $25 million as a result of lower incentive compensation accruals and a reduction in salaries expense caused by a 7% decline in the number of average full-time equivalent employees. These reductions were offset in part by an increase in severance expense and higher costs associated with employee benefits, primarily pension expense. The reduction in personnel expense was more than offset by a $118 million rise in nonpersonnel expense, due largely to a $68 million increase in the FDIC deposit insurance assessment. The higher assessment is a result of an across-the-board increase in the assessment rate that took effect during the first quarter of 2009 and a special assessment imposed during the second quarter of 2009, under which Key recorded $44 million of additional expense. Professional fees rose by $15 million due to increased collection efforts on loans, the outsourcing of certain services and the Keyvolution initiative. Additionally, Key recorded an $11 million provision for losses on lending-related commitments during the current quarter, compared to a $2 million credit for the second quarter of 2008.

     Compared to the first quarter of 2009, noninterest expense declined by $72 million. Personnel expense increased by $16 million, as increases in all major components were offset in part by a reduction in costs associated with employee benefits. Nonpersonnel expense decreased by $88 million from the prior quarter. Excluding the intangible assets impairment charge of $196 million recorded in the first quarter of 2009, nonpersonnel expense was up $108 million, due to increases in the FDIC deposit insurance assessment, professional fees, the provision for losses on lending-related commitments, expenses associated with other real estate owned (“OREO”) and a variety of other miscellaneous expense components.

ASSET QUALITY

     Key’s provision for loan losses was $850 million for the second quarter of 2009, compared to $647 million for the year-ago quarter and $875 million for the first quarter of 2009. Credit migration, particularly in the commercial real estate portfolio, continues to result in higher levels of net charge-offs and nonperforming loans, and more reserve building. Key’s provision for loan losses for the second quarter of 2009 exceeded net loan charge-offs by $311 million. As a result, Key’s allowance for loan losses rose to $2.5 billion, or 3.53% of total loans at June 30 2009, up from $2.2 billion, or 2.97% at March 31, 2009.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 6

     Selected asset quality statistics for Key for each of the past five quarters are presented in the following table.

Selected Asset Quality Statistics

dollars in millions	2Q09			1Q09			4Q08			3Q08			2Q08
Net loan charge-offs	$	539		$	492		$	342		$	273		$	524
Net loan charge-offs to average loans		2.99	%		2.65	%		1.77	%		1.43	%		2.75	%
Nonperforming loans at period end	$	2,188		$	1,738		$	1,225		$	967		$	814
Nonperforming loans to period-end portfolio loans		3.09	%		2.36	%		1.60	%		1.26	%		1.07	%
Nonperforming assets at period end	$	2,551		$	1,997		$	1,464		$	1,239		$	1,210
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		3.58	%		2.70	%		1.91	%		1.61	%		1.59	%
Allowance for loan losses	$	2,499		$	2,186		$	1,803		$	1,554		$	1,421
Allowance for loan losses to period-end loans		3.53	%		2.97	%		2.36	%		2.03	%		1.87	%
Allowance for loan losses to nonperforming loans		114.21			125.78			147.18			160.70			174.57

     Net loan charge-offs for the quarter totaled $539 million, or 2.99% of average loans. These results compare to $524 million, or 2.75%, for the same period last year and $492 million, or 2.65%, for the previous quarter. Key’s net loan charge-offs by loan type for each of the past five quarters are shown in the following table.

Net Loan Charge-offs

dollars in millions	2Q09			1Q09			4Q08			3Q08			2Q08
Commercial, financial and agricultural	$	168		$	232		$	119		$	62		$	61
Real estate___ commercial mortgage		87			21			43			20			15
Real estate___ construction		133			104			49			79			339	(a)
Commercial lease financing		22			18			21			19			14
Total commercial loans		410			375			232			180			429
Home equity — Community Banking		24			17			14			9			9
Home equity — National Banking		18			15			17			12			10
Marine		29			32			25			16			10
Education		37			32			33			40			54
Other		21			21			21			16			12
Total consumer loans		129			117			110			93			95
Total net loan charge-offs	$	539		$	492		$	342		$	273		$	524
Net loan charge-offs to average loans		2.99	%		2.65	%		1.77	%		1.43	%		2.75	%

(a) During the second quarter of 2008, Key transferred $384 million of commercial real estate loans ($719 million of primarily construction loans, net of $335 million in net charge-offs) from the loan portfolio to held-for-sale status.

     Compared to the first quarter of 2009, net loan charge-offs in the commercial loan portfolio rose by $35 million, due primarily to a $95 million rise in net charge-offs in the commercial mortgage and construction loan portfolios, offset in part by a $64 million reduction in the commercial and financial portfolio. The Real Estate Capital and Corporate Banking Services line of business within the National Banking group accounted for virtually all of the growth in net charge-offs in the commercial real estate portfolios and $46 million of the reduction in the commercial and financial portfolio. The level of net charge-offs in the consumer portfolio rose by $12 million, due to losses incurred in the home equity and education portfolios. As shown in the table on page 7, Key’s exit loan portfolio accounted for $156 million, or 29%, of Key’s total net loan charge-offs for the second quarter of 2009.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 7

     At June 30, 2009, Key’s nonperforming loans totaled $2.2 billion and represented 3.09% of period-end portfolio loans, compared to 2.36% at March 31, 2009, and 1.07% at June 30, 2008. Nonperforming assets at June 30, 2009, totaled $2.6 billion and represented 3.58% of portfolio loans, OREO and other nonperforming assets, compared to 2.70% at March 31, 2009, and 1.59% at June 30, 2008. The following table illustrates the trend in Key’s nonperforming assets by loan type over the past five quarters.

Nonperforming Assets

dollars in millions	2Q09			1Q09			4Q08			3Q08			2Q08
Commercial, financial and agricultural	$	700		$	595		$	415		$	309		$	259
Real estate — commercial mortgage		454			310			128			119			107
Real estate — construction		716			546			436			334			256
Commercial lease financing		122			109			81			55			57
Total consumer loans		196			178			165			150			135
Total nonperforming loans		2,188			1,738			1,225			967			814
Nonperforming loans held for sale		145			72			90			169			342
OREO and other nonperforming assets		218			187			149			103			54
Total nonperforming assets	$	2,551		$	1,997		$	1,464		$	1,239		$	1,210
Nonperforming loans to period-end portfolio loans		3.09	%		2.36	%		1.60	%		1.26	%		1.07	%
Nonperforming assets to period-end portfolio loans, plus OREO and other nonperforming assets		3.58			2.70			1.91			1.61			1.59

     As shown in the preceding table, all categories of nonperforming assets experienced increases during the second quarter of 2009, compared to the prior quarter. Nonperforming loans in the commercial and financial, and commercial real estate portfolios experienced the largest increases. The increase in the commercial and financial portfolio reflects the impact of general weakness in the economic environment and was principally attributable to loans in the Equipment Finance, Institutional and Capital Markets, and Middle Market lines of business. The increase in the commercial real estate portfolio was caused in part by the continuation of deteriorating market conditions in both the residential properties and income properties segments. As shown in the following table, Key’s exit loan portfolio accounted for $559 million, or 22%, of Key’s total nonperforming assets at June 30, 2009, compared to $502 million, or 25%, at March 31, 2009.

     The composition of Key’s exit loan portfolio at June 30, 2009, and March 31, 2009, the net charge-offs recorded on this portfolio for the second and first quarters of 2009, and the nonperforming status of these loans at June 30, 2009, and March 31, 2009, are shown in the following table.

Exit Loan Portfolio

												Balance on
	Balance				Change			Net Loan				Nonperforming
	Outstanding				6-30-09 vs.			Charge-offs				Status
in millions	6-30-09		3-31-09		3-31-09			2Q09		1Q09		6-30-09		3-31-09
Residential properties___ homebuilder	$	614	$	766	$	(152	)	$	62	$	44	$	298	$	306
Residential properties___ held for sale		65		70		(5	)		—		—		65		70
Total residential properties		679		836		(157	)		62		44		363		376
Marine and RV floor plan		696		817		(121	)		8		11		149		80
Total commercial loans		1,375		1,653		(278	)		70		55		512		456
Private education		2,847		2,897		(50	)		37		32		2		—
Home equity___ National Banking		934		998		(64	)		18		15		20		19
Marine		3,095		3,256		(161	)		29		32		19		21
RV and other consumer		245		262		(17	)		2		5		6		6
Total consumer loans		7,121		7,413		(292	)		86		84		47		46
Total loans in exit portfolio	$	8,496	$	9,066	$	(570	)	$	156	$	139	$	559	$	502

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 8

     Key’s allowance for loan losses was $2.5 billion, or 3.53% of loans outstanding, at June 30, 2009, compared to $2.2 billion, or 2.97%, at March 31, 2009, and $1.4 billion, or 1.87%, at June 30, 2008. The company has continued to build its allowance for loan losses as the current credit cycle progresses, and at June 30, 2009, had a coverage ratio of 114%.

CAPITAL

     Key’s risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2009.

Capital Ratios

	6-30-09			3-31-09			12-31-08			9-30-08			6-30-08
Tier 1 common equity(a)		7.27	%		5.62	%		5.62	%		5.58	%		5.60	%
Tier 1 risk-based capital(a)		12.42			11.22			10.92			8.55			8.53
Total risk-based capital (a)		16.47			15.18			14.82			12.40			12.41
Tangible Key shareholders’ equity to tangible assets		10.16			9.23			8.92			6.95			6.98
Tangible common equity to tangible assets		7.35			6.06			5.95			6.29			6.32

(a) 6-30-09 ratio is estimated.

     During the second quarter of 2009, Key successfully raised more than $1.8 billion in new Tier 1 common equity as required by the SCAP initiated by the U.S. Treasury Department and the federal banking regulators. The additional capital will serve as a “buffer” in the event the U.S. economy worsens considerably through 2010. As shown in the above table, at June 30, 2009, Key had a Tier 1 risk-based capital ratio of 12.42%, a Tier 1 common equity ratio of 7.27%, and a tangible common equity ratio of 7.35%. On June 2, 2009, Key announced it had sold $1 billion of newly issued common stock through an at-the-market offering. In addition, Key has raised a significant portion of the additional Tier 1 common equity through the exchange of Key common shares for Key’s Noncumulative Perpetual Convertible Preferred Stock, Series A and for certain capital (i.e., trust preferred) securities. As a result of these exchange offers, Key will reduce its future dividend and interest obligations on the exchanged securities by approximately $70 million through the SCAP assessment period, which ends December 31, 2010.

     Although management believes Key has now complied with the requirements of the SCAP assessment, as it has generated additional Tier 1 common equity in excess of $1.8 billion, management intends to further augment Key’s capital base. On July 8, 2009, KeyCorp commenced an offer to exchange (the “Trust Preferred Exchange Offer”) Key common shares for any and all outstanding retail capital securities issued by a number of affiliated capital trusts. The Early Tender Period for the Trust Preferred Exchange Offer expired at 11:59 p.m., New York City time, on July 21, 2009, and will not be extended. The Final Tender Period and the Trust Preferred Exchange Offer will expire at 11:59 p.m., New York City time, on August 4, 2009 (unless we extend it or terminate it earlier). As of July 21, 2009, prior to the end of the Early Tender Period, holders of approximately $534 million aggregate liquidation preference of trust preferred securities had indicated that they would be tendering securities in the Trust Preferred Exchange Offer, subject to applicable withdrawal rights. As a result of the success of this exchange offer, management has made a determination to limit the total aggregate liquidation preference of trust preferred securities that it will accept in the Trust Preferred Exchange Offer to $500 million. The Trust Preferred Exchange Offer will be amended and disseminated accordingly, pursuant to Securities and Exchange Commission rules.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 9

     Transactions that caused the change in Key’s outstanding common shares over the past five quarters are summarized in the following table.

Summary of Changes in Common Shares Outstanding

in thousands	2Q09		1Q09		4Q08		3Q08		2Q08
Shares outstanding at beginning of period		498,573		495,002		494,765		485,662		400,071
Common shares exchanged for capital securities		46,338		—		—		—		—
Common shares exchanged for Series A Preferred Stock		46,602		—		—		—		—
Common shares issued		205,439		—		—		7,066		85,106
Shares reissued under employee benefit plans		294		3,571		237		2,037		485
Shares outstanding at end of period		797,246		498,573		495,002		494,765		485,662

     During the second quarter of 2009, Key made a $31 million cash dividend payment to the U.S. Treasury Department. This is the second of such quarterly payments that Key has made after having raised $2.5 billion of additional capital during the fourth quarter of 2008 as a participant in the U.S. Treasury’s Capital Purchase Program.

     On July 17, the Board of Directors declared a cash dividend of $1.9375 per share of Key’s 7.750% Series A Preferred Stock. The dividend is payable September 15, 2009, to shareholders of record on August 28, 2009. The Board also declared a cash dividend of $.01 per share on the company’s common shares payable September 15, 2009, to shareholders of record on September 1, 2009.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 10

LINE OF BUSINESS RESULTS

     The following table shows the contribution made by each major business group to Key’s taxable-equivalent revenue from continuing operations and (loss) income from continuing operations attributable to Key for the periods presented. The specific lines of business that comprise each of the major business groups are described under the heading “Line of Business Descriptions.” For more detailed financial information pertaining to each business group and its respective lines of business, see the tables at the end of this release.

Major Business Groups

										Percent change 2Q09 vs.
dollars in millions	2Q09			1Q09			2Q08			1Q09			2Q08
Revenue from continuing operations (TE)
Community Banking	$	592		$	599		$	654			(1.2)	%		(9.5)	%
National Banking(a)		547			533			(133	)		2.6			N/M
Other Segments(b)		183			(79	)		(31	)		N/M			N/M
Total Segments		1,322			1,053			490			25.5			169.8
Reconciling Items (c)		(9	)		52			(43	)		N/M			79.1
Total	$	1,313		$	1,105		$	447			18.8	%		193.7	%
(Loss) income from continuing operations attributable to Key
Community Banking	$	(57	)	$	30		$	103			N/M			N/M
National Banking(a)		(294	)		(548	)		(674	)		46.4	%		56.4	%
Other Segments(b)		112			(37	)		(14	)		N/M			N/M
Total Segments		(239	)		(555	)		(585	)		56.9			59.1
Reconciling Items (c)		3			89			(543	)		(96.6	)		N/M
Total	$	(236	)	$	(466	)	$	(1,128	)		49.4	%		79.1	%

(a)	National Banking’s results for the first quarter of 2009 include a noncash charge for goodwill and other intangible assets impairment of $196 million ($164 million after tax). During the second quarter of 2008, National Banking’s taxable-equivalent net interest income and net results were reduced by $838 million and $536 million, respectively, as a result of its involvement with certain leveraged lease financing transactions which were challenged by the Internal Revenue Service.
(b)	Other Segments’ results for the second quarter of 2009 include net gains of $125 million ($78 million after tax) in connection with the repositioning of the securities portfolio and a $95 million ($59 million after tax) gain related to the exchange of Key common shares for capital securities.
(c)	Reconciling Items for the second quarter of 2009 include a $32 million ($20 million after tax) gain from the sale of Key’s claim associated with the Lehman Brothers’ bankruptcy. For the first quarter of 2009, Reconciling Items include a $105 million ($65 million after tax) gain from the sale of Key’s remaining equity interest in Visa Inc. Reconciling Items for the second quarter of 2008 include a $475 million charge to income taxes for the interest cost associated with the previously disclosed leveraged lease tax litigation.

TE = Taxable Equivalent, N/M = Not Meaningful

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 11

Community Banking

								Percent change 2Q09 vs.
dollars in millions	2Q09			1Q09		2Q08		1Q09			2Q08
Summary of operations
Net interest income (TE)	$	397		$	410	$	433		(3.2)	%		(8.3)	%
Noninterest income		195			189		221		3.2			(11.8	)
Total revenue (TE)		592			599		654		(1.2	)		(9.5	)
Provision for loan losses		187			81		44		130.9			325.0
Noninterest expense		497			470		445		5.7			11.7
(Loss) income before income taxes (TE)		(92	)		48		165		N/M			N/M
Allocated income taxes and TE adjustments		(35	)		18		62		N/M			N/M
Net (loss) income attributable to Key	$	(57	)	$	30	$	103		N/M			N/M
Average balances
Loans and leases	$	28,237		$	28,940	$	28,470		(2.4)	%		(.8)	%
Total assets		31,183			31,948		31,414		(2.4	)		(.7	)
Deposits		52,689			51,560		49,944		2.2			5.5
Assets under management at period end	$	15,815		$	14,205	$	19,366		11.3	%		(18.3)	%

TE = Taxable Equivalent, N/M = Not Meaningful

Additional Community Banking Data

										Percent change 2Q09 vs.
dollars in millions	2Q09			1Q09			2Q08			1Q09			2Q08
Average deposits outstanding
NOW and money market deposit accounts	$	17,361		$	17,368		$	19,656			—			(11.7)	%
Savings deposits		1,785			1,721			1,804			3.7	%		(1.1	)
Certificates of deposit ($100,000 or more)		8,974			8,490			6,661			5.7			34.7
Other time deposits		14,898			14,723			12,735			1.2			17.0
Deposits in foreign office		548			713			1,308			(23.1	)		(58.1	)
Noninterest-bearing deposits		9,123			8,545			7,780			6.8			17.3
Total deposits	$	52,689		$	51,560		$	49,944			2.2	%		5.5	%
Home equity loans
Average balance	$	10,287		$	10,273		$	9,766
Weighted-average loan-to-value ratio (at date of origination)		70	%		70	%		70	%
Percent first lien positions		53			53			55
Other data
Branches		993			989			985
Automated teller machines		1,485			1,479			1,479

Community Banking Summary of Operations

     Community Banking recorded a net loss attributable to Key of $57 million for the second quarter of 2009, compared to net income attributable to Key of $103 million for the year-ago quarter. Increases in the provision for loan losses and FDIC expense, coupled with decreases in net interest income and noninterest income, caused the decline.

     Taxable-equivalent net interest income declined by $36 million, or 8%, from the second quarter of 2008, due primarily to tighter loan spreads and a slight decline in the volume of average earning assets. While average deposits increased by $2.7 billion, or 5%, the composition and value of deposits have been impacted by the declining interest rate environment. Growth was centered in noninterest-bearing deposits and a shift from money market deposit accounts into higher-yielding certificates of deposit, reflecting consumer preferences.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 12

     Noninterest income decreased by $26 million, or 12%, from the year-ago quarter, largely from declines in service charges on deposit accounts, trust and investment services income, and branch-based investment income, coupled with an increase in the reserve for credit losses from client derivatives. The reductions in service charges on deposit accounts, and trust and investment services income are the results of changing client behavior and lower levels of assets under management resulting from declining market conditions, respectively. These reductions were partially offset by higher mortgage loan sale gains.

     The provision for loan losses rose by $143 million compared to the second quarter of 2008, reflecting a $49 million increase in net loan charge-offs, primarily from the commercial and home equity loan portfolios. Community Banking’s provision for loan losses for the second quarter of 2009 exceeded its net loan charge-offs by $100 million as the company continued to build reserves, in light of the challenging credit conditions brought on by a weak economy.

     Noninterest expense grew by $52 million, or 12%, from the year-ago quarter, as a result of a $52 million increase in the FDIC deposit insurance assessment. The higher assessment is a result of the across-the-board increase in the assessment rate that took effect during the first quarter of 2009 and the special assessment imposed during the second quarter of 2009. A decline in personnel expense, due primarily to a decrease in incentive compensation accruals and a reduction in the number of average full-time equivalent employees, was offset by increases in various other components of noninterest expense.

National Banking

										Percent change 2Q09 vs.
dollars in millions	2Q09			1Q09			2Q08			1Q09			2Q08
Summary of operations
Net interest income (expense) (TE)	$	282		$	289		$	(471)	(a)		(2.4)	%		N/M
Noninterest income		265			244			338			8.6			(21.6)	%
Total revenue (TE)		547			533			(133	)		2.6			N/M
Provision for loan losses		662			789			609			(16.1	)		8.7
Noninterest expense		358			506	(a)		335			(29.2	)		6.9
Loss from continuing operations before income taxes (TE)		(473	)		(762	)		(1,077	)		37.9			56.1
Allocated income taxes and TE adjustments		(178	)		(212	)		(403	)		16.0			55.8
Loss from continuing operations		(295	)		(550	)		(674	)		46.4			56.2
Income (loss) from discontinued operations, net of taxes		10			(22	)		2			N/M			400.0
Net loss		(285	)		(572	)		(672	)		50.2			57.6
Less: Net loss attributable to noncontrolling interests		(1	)		(2	)		—			50.0			N/M
Net loss attributable to Key	$	(284	)	$	(570	)	$	(672	)		50.2			57.7
Loss from continuing operations attributable to Key	$	(294	)	$	(548	)	$	(674	)		46.4	%		56.4	%
Average balances
Loans and leases	$	43,943		$	46,197		$	47,872			(4.9)	%		(8.2)	%
Loans held for sale		910			1,078			1,282			(15.6)			(29.0)
Total assets		50,998			54,799			56,316			(6.9)			(9.4)
Deposits		13,260			12,214			12,287			8.6			7.9
Assets under management at period end	$	47,567		$	45,959		$	61,632			3.5	%		(22.8)	%

(a) National Banking’s results for the first quarter of 2009 include a noncash charge for goodwill and other intangible assets impairment of $196 million ($164 million after tax). During the second quarter of 2008, National Banking’s taxable-equivalent net interest income and net results were reduced by $838 million and $536 million, respectively, as a result of its involvement with certain leveraged lease financing transactions which were challenged by the Internal Revenue Service.

TE = Taxable Equivalent, N/M = Not Meaningful

National Banking Summary of Continuing Operations

     National Banking recorded a loss from continuing operations attributable to Key of $294 million for the second quarter of 2009, compared to $674 million for the same period one year ago. During the second quarter of 2008, net results were reduced by $536 million as a result of an adverse federal court decision on the company’s tax treatment of a segment of Key’s leveraged lease financing portfolio. Excluding this charge, net results decreased by $156 million from the second quarter of 2008, due to lower net interest income and noninterest income, coupled with increases in the provision for loan losses and noninterest expense.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 13

     As a result of the federal court decision, National Banking reduced its taxable-equivalent net interest income by $838 million during the second quarter of 2008. Excluding this charge, taxable-equivalent net interest income decreased by $85 million, or 23%, from the second quarter of 2008, due primarily to a decrease in average earning assets and a higher level of nonperforming loans, offset in part by more favorable deposit spreads and an increase in average deposits. Average earning assets decreased by $4.2 billion, or 8%, from the year-ago quarter, reflecting reductions in the commercial, home equity and held-for-sale loan portfolios. Average deposits rose by $1 billion, or 8%, as growth in certificates of deposit, NOW accounts and noninterest-bearing deposits more than offset a decline in money market deposit accounts.

     Noninterest income declined by $73 million, or 22%, from the second quarter of 2008, due primarily to a $60 million reduction in income from investment banking and capital markets activities, which was largely attributable to a $27 million decrease in dealer trading and derivatives income and a $23 million decrease in investment banking income. A decline in net loan sale gains of $37 million also contributed to the reduction in noninterest income. The adverse effect of the above factors was offset in part by a $29 million increase in gains on leased equipment and a $15 million increase in mortgage fees.

     The provision for loan losses rose by $53 million. National Banking’s provision for loan losses for the second quarter of 2009 exceeded its net loan charge-offs by $210 million as the company continued to build reserves in a weak economy.

     Noninterest expense grew by $23 million, or 7%, from the second quarter of 2008, reflecting an increase in the FDIC deposit insurance assessment as a result of the same factors that contributed to the increase in Community Banking. Also contributing to higher noninterest expense was an increase in the reserve for low-income housing tax credit funds, a provision for losses on lending-related commitments compared to a credit in the year-ago quarter, and higher expenses associated with OREO. The adverse effect of these factors was offset in part by lower personnel expense, reflecting a reduction in incentive compensation accruals and a decrease in the number of average full-time equivalent employees.

     In April 2009, Key made the strategic decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of this decision, Key has accounted for this business as a discontinued operation.

Other Segments

     Other Segments consist of Corporate Treasury and Key’s Principal Investing unit. These segments generated net income attributable to Key of $112 million for the second quarter of 2009, compared to a net loss attributable to Key of $14 million for the same period last year. The improvement was attributable to net gains of $125 million recorded during the second quarter of 2009 in connection with the repositioning of the securities portfolio, and a $95 million gain related to the exchange of Key common shares for capital securities.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 14

Line of Business Descriptions

Community Banking

Regional Bankingprovides individuals with branch-based deposit and investment products, personal finance services and loans, including residential mortgages, home equity and various types of installment loans. This line of business also provides small businesses with deposit, investment and credit products, and business advisory services.

Regional Banking also offers financial, estate and retirement planning, and asset management services to assist high-net-worth clients with their banking, trust, portfolio management, insurance, charitable giving and related needs.

Commercial Bankingprovides midsize businesses with products and services that include commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, derivatives and foreign exchange.

National Banking

Real Estate Capital and Corporate Banking Servicesconsists of two business units, Real Estate Capital and Corporate Banking Services.

Real Estate Capital is a national business that provides construction and interim lending, permanent debt placements and servicing, equity and investment banking, and other commercial banking products and services to developers, brokers and owner-investors. This unit deals primarily with nonowner-occupied properties (i.e., generally properties in which at least 50% of the debt service is provided by rental income from nonaffiliated third parties). Real Estate Capital emphasizes providing clients with finance solutions through access to the capital markets.

Corporate Banking Services provides cash management, interest rate derivatives, and foreign exchange products and services to clients served by both the Community Banking and National Banking groups. Through its Public Sector and Financial Institutions businesses, Corporate Banking Services also provides a full array of commercial banking products and services to government and not-for-profit entities, and to community banks.

Equipment Financemeets the equipment leasing needs of companies worldwide and provides equipment manufacturers, distributors and resellers with financing options for their clients. Lease financing receivables and related revenues are assigned to other lines of business (primarily Institutional and Capital Markets, and Commercial Banking) if those businesses are principally responsible for maintaining the relationship with the client.

Institutional and Capital Markets,through its KeyBanc Capital Markets unit, provides commercial lending, treasury management, investment banking, derivatives, foreign exchange, equity and debt underwriting and trading, and syndicated finance products and services to large corporations and middle-market companies.

Through its Victory Capital Management unit, Institutional and Capital Markets also manages or offers advice regarding investment portfolios for a national client base, including corporations, labor unions, not-for-profit organizations, governments and individuals. These portfolios may be managed in separate accounts, common funds or the Victory family of mutual funds.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 15

Consumer Financeprovides government-guaranteed education loans to students and their parents, and processes tuition payments for private schools. Through its Commercial Floor Plan Lending unit, this line of business also finances inventory for automobile dealers. In October 2008, Key exited retail and floor-plan lending for marine and recreational vehicle products, and began to limit new education loans to those backed by government guarantee. The Consumer Finance line of business continues to service existing loans in these portfolios and to honor existing education loan commitments. These actions are consistent with Key’s strategy of de-emphasizing nonrelationship or out-of-footprint businesses.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Morgan Stanley is the sole arranger and lead manager for the Trust Preferred Exchange Offer, and Morgan Stanley, UBS Investment Bank, Citi and Wells Fargo Securities are acting as dealer managers. In addition, Morgan Stanley is KeyCorp’s capital advisor on all of its capital execution plans related to the SCAP. The complete terms and conditions of the Trust Preferred Exchange Offer are set forth in the Prospectus and letter of transmittal that are being sent to holders of the Trust Preferred Securities. Holders are urged to read the Trust Preferred Exchange Offer documents carefully. This press release is neither an offer to purchase nor a solicitation to buy any shares of the securities, nor is it a solicitation for acceptance of the exchange offer. KeyCorp is making the exchange offer only by, and pursuant to the terms of, the Prospectus and the related letter of transmittal. The Trust Preferred Exchange Offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of KeyCorp or its affiliates, the trustees of the capital trusts, the exchange agent, the information agent, the financial advisors or the capital advisor is making any recommendation as to whether or not holders should tender their Trust Preferred Securities in connection with the Trust Preferred Exchange Offer.

Copies of the Prospectus and letter of transmittal may also be obtained fromD.F. King & Co., Inc., the information agent at(800) 431-9633 or, for bankers and brokers, at(212) 269-5550 (Collect). The Exchange Agent for the Trust Preferred Exchange Offer is Computershare Trust Company, N.A., available at (781) 575-2332. KeyCorp has filed a registration statement (including the Prospectus) for this Trust Preferred Exchange Offer with the Securities and Exchange Commission (“SEC”). Before you invest you should read the Prospectus in the registration statement and other documents that KeyCorp has filed with the SEC for more complete information about KeyCorp and the Trust Preferred Exchange Offer. You may obtain these documents for free at the SEC’s website,www.sec.gov. You may also obtain these documents by contacting KeyCorp, Investor Relations, at (216) 689-4221 or by email atKeyCorp_Capital_Exchange@KeyBank.com.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

     Cleveland-based KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of $97.8 billion at June 30, 2009. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. The company’s businesses deliver their products and services through 993 branches and additional offices; a network of 1,485 ATMs; telephone banking centers (1.800.KEY2YOU); and a Web site,https://www.key.com/,^®that provides account access and financial products 24 hours a day.

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 athttps://www.key.com/irat 9:00 a.m. ET, on Wednesday, July 22, 2009. An audio replay of the call will be available through July 29.

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

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 16

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key’s financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Key’s control. Key’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.

Factors that may cause actual results to differ materially include, among other things: (1) adverse capital market conditions and the ability to raise equity and other funding required by the banking regulators or otherwise; (2) further downgrades in Key’s credit ratings; (3) unprecedented volatility in the stock markets, public debt markets and other capital markets, including continued disruption in the fixed income markets; (4) potential misinterpretation of the Supervisory Capital Assessment Program (“SCAP”) or Key’s efforts to raise the required capital could affect Key’s ability to attract and retain customers and compete for new business opportunities; (5) changes in interest rates; (6) changes in trade, monetary or fiscal policy; (7) changes in foreign exchange rates, equity markets and the financial soundness of other unrelated financial companies; (8) asset price deterioration. which has had (and may continue to have) a negative effect on the valuation of certain asset categories represented on Key’s balance sheet; (9) continuation of the recent deterioration in general economic conditions, or in the condition of the local economies or industries in which Key has significant operations or assets, which could, among other things, materially impact credit quality trends and Key’s ability to generate loans; (10) continued disruption in the housing markets and related conditions in the financial markets; (11) increased competitive pressure among financial services companies due to the consolidation of competing financial institutions and the conversion of certain investment banks to bank holding companies; (12) heightened legal standards and regulatory practices, requirements or expectations; (13) the inability to successfully execute strategic initiatives designed to grow revenues and/or manage expenses; (14) increased FDIC deposit insurance premiums; (15) difficulty in attracting and/or retaining executives and/or relationship managers; (16) consummation of significant business combinations or divestitures; (17) operational or risk management failures due to technological or other factors; (18) changes in accounting or tax practices or requirements; (19) new legal obligations or liabilities or unfavorable resolution of litigation; and (20) disruption in the economy and general business climate as a result of terrorist activities or military actions.

For additional information on KeyCorp and the factors that could cause actual results or financial condition to differ materially from those described in the forward-looking statements consult KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2008, and subsequent filings with the Securities and Exchange Commission available on the Securities and Exchange Commission’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Key does not assume any obligation to update these forward-looking statements.

###

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 17

Financial Highlights
(dollars in millions, except per share amounts)

	Three months ended
	6-30-09			3-31-09			6-30-08
Summary of operations
Net interest income (expense) (TE)	$	598		$	620		$	(100	)(a)
Noninterest income		715			485			547
Total revenue (TE)		1,313			1,105			447
Provision for loan losses		850			875			647
Noninterest expense		870			942			777
Loss from continuing operations attributable to Key		(236	)		(466	)		(1,128	)
Income (loss) from discontinued operations, net of taxes(b)		10			(22	)		2
Net loss attributable to Key		(226	)		(488	)(a)		(1,126	)(a)
Loss from continuing operations attributable to Key common shareholders	$	(400	)	$	(514	)	$	(1,128	)
Income (loss) from discontinued operations, net of taxes(b)		10			(22	)		2
Net loss attributable to Key common shareholders		(390	)		(536	)(a)		(1,126	)(a)
Per common share
Loss from continuing operations attributable to Key common shareholders	$	(.69	)	$	(1.04	)	$	(2.71	)
Income (loss) from discontinued operations, net of taxes(b)		.02			(.04	)		—
Net loss attributable to Key common shareholders		(.68	)		(1.09	)		(2.70	)
Loss from continuing operations attributable to Key common shareholders — assuming dilution		(.69	)		(1.04	)		(2.71	)
Income (loss) from discontinued operations, net of taxes — assuming dilution(b)		.02			(.04	)		—
Net loss attributable to Key common shareholders — assuming dilution		(.68	)		(1.09	)(a)		(2.70	)(a)
Cash dividends paid		.01			.0625			.375
Book value at period end		10.21			13.82			16.59
Tangible book value at period end		8.92			11.76			13.00
Market price at period end		5.24			7.87			10.98
Performance ratios — from continuing operations
Return on average total assets		(.94	)%		(1.82	)%		(4.39	)%
Return on average common equity		(15.87	)		(28.65	)		(53.44	)
Net interest margin (TE)		2.67			2.77			(.44	)
Performance ratios — from consolidated operations
Return on average total assets		(.90	)%		(1.91	)%(a)		(4.38	)%(a)
Return on average common equity		(15.32	)		(29.87	)(a)		(53.35	)(a)
Net interest margin (TE)		2.67			2.77			(.44	)(a)
Capital ratios at period end
Key shareholders’ equity to assets		11.10	%		10.19	%		8.57	%
Tangible Key shareholders’ equity to tangible assets		10.16			9.23			6.98
Tangible common equity to tangible assets		7.35			6.06			6.32
Tier 1 common equity(c)		7.27			5.62			5.60
Tier 1 risk-based capital (c)		12.42			11.22			8.53
Total risk-based capital(c)		16.47			15.18			12.41
Leverage (c)		12.24			11.19			9.34
Asset quality
Net loan charge-offs	$	539		$	492		$	524
Net loan charge-offs to average loans		2.99	%		2.65	%		2.75	%
Allowance for loan losses	$	2,499		$	2,186		$	1,421
Allowance for loan losses to period-end loans		3.53	%		2.97	%		1.87	%
Allowance for loan losses to nonperforming loans		114.21			125.78			174.57
Nonperforming loans at period end	$	2,188		$	1,738		$	814
Nonperforming assets at period end		2,551			1,997			1,210
Nonperforming loans to period-end portfolio loans		3.09	%		2.36	%		1.07	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		3.58			2.70			1.59
Trust and brokerage assets
Assets under management	$	63,382		$	60,164		$	80,998
Nonmanaged and brokerage assets		23,261			21,786			29,905
Other data
Average full-time equivalent employees		16,937			17,468			18,164
Branches		993			989			985
Taxable-equivalent adjustment	$	6		$	6		$	(458	)

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 18

Financial Highlights (continued)
(dollars in millions, except per share amounts)

	Six months ended
	6-30-09			6-30-08
Summary of operations
Net interest income (TE)	$	1,218		$	604	(a)
Noninterest income		1,200			1,071
Total revenue (TE)		2,418			1,675
Provision for loan losses		1,725			834
Noninterest expense		1,812			1,506
Loss from continuing operations attributable to Key		(702	)		(911	)
Income (loss) from discontinued operations, net of taxes(b)		(12	)		3
Net loss attributable to Key		(714	)(a)		(908	)(a)
Loss from continuing operations attributable to Key common shareholders	$	(914	)	$	(911	)
Income (loss) from discontinued operations, net of taxes(b)		(12	)		3
Net loss attributable to Key common shareholders		(926	)(a)		(908	)(a)
Per common share
Loss from continuing operations attributable to Key common shareholders	$	(1.71	)	$	(2.23	)
Income (loss) from discontinued operations, net of taxes (b)		(.02	)		.01
Net loss attributable to Key common shareholders		(1.73	)		(2.23	)
Loss from continuing operations attributable to Key common shareholders — assuming dilution		(1.71	)		(2.23	)
Income (loss) from discontinued operations, net of taxes — assuming dilution(b)		(.02	)		.01
Net loss attributable to Key common shareholders — assuming dilution		(1.73	)(a)		(2.23	)(a)
Cash dividends paid		.0725			.75
Performance ratios — from continuing operations
Return on average total assets		(1.38	)%		(1.77	)%
Return on average common equity		(22.25	)		(21.64	)
Net interest margin (TE)		2.72			1.35
Performance ratios — from consolidated operations
Return on average total assets		(1.41	)%(a)		(1.77	)%(a)
Return on average common equity		(22.58	)(a)		(21.57	)(a)
Net interest margin (TE)		2.72	(a)		1.35	(a)
Asset quality
Net loan charge-offs	$	1,031		$	645
Net loan charge-offs to average loans		2.81	%		1.74	%
Other data
Average full-time equivalent employees		17,201			18,295
Taxable-equivalent adjustment	$	12		$	(467	)

(a)	The following table entitled “GAAP to Non-GAAP Reconciliations” presents certain earnings data and performance ratios, excluding charges related to goodwill and other intangible assets impairment, and the tax treatment of certain leveraged lease financing transactions disallowed by the Internal Revenue Service. The table also shows the computations of certain financial measures related to “tangible common equity” and “Tier 1 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)	In April 2009, management made the strategic decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of this decision, Key has accounted for this business as a discontinued operation.
(c)	6-30-09 ratio is estimated.

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

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 19

GAAP to Non-GAAP Reconciliations
(dollars in millions, except per share amounts)

The table below presents certain earnings data and performance ratios, excluding charges related to intangible assets impairment, and the tax treatment of certain leveraged lease financing transactions disallowed by the Internal Revenue Service. Management believes that eliminating the effects of significant items that are generally nonrecurring facilitates the analysis of results by presenting them on a more comparable basis.

The table also shows the computations of certain financial measures related to “tangible common equity” and “Tier 1 common equity.” The tangible common equity ratio has become a focus of some investors and management believes that this ratio may assist investors in analyzing Key’s capital position absent the effects of intangible assets and preferred stock. Traditionally, the Federal Reserve and other banking regulators have assessed a bank’s capital adequacy based on Tier 1 capital, the calculation of which is codified in federal banking regulations. As a result of the Supervisory Capital Assessment Program, these same regulators began supplementing their assessment of the capital adequacy of a bank based on a variation of Tier 1 capital, known as Tier 1 common equity. While not codified, analysts and banking regulators have assessed Key’s capital adequacy using the tangible common equity and/or the Tier 1 common equity measure. Because tangible common equity and Tier 1 common equity are not formally defined by GAAP or codified in the federal banking regulations, these measures are considered to be non-GAAP financial measures. Since analysts and banking regulators may assess Key’s capital adequacy using tangible common equity and Tier 1 common equity, management believes it is useful to provide investors the ability to assess Key’s capital adequacy on these same bases. The table also reconciles the GAAP performance measures to the corresponding non-GAAP measures.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components and to ensure that Key’s performance is properly reflected to facilitate period-to-period comparisons. Although these non-GAAP financial measures are frequently used by investors in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.

	Three months ended									Six months ended
	6-30-09			3-31-09			6-30-08			6-30-09			6-30-08
Net (loss) income
Net loss attributable to Key (GAAP)	$	(226	)	$	(488	)	$	(1,126	)	$	(714	)	$	(908	)
Charges related to intangible assets impairment, after tax		—			164			—			164			—
Charges related to leveraged lease tax litigation, after tax		—			—			1,011			—			1,049
Net (loss) income attributable to Key, excluding charges related to intangible assets impairment and leveraged lease tax litigation (non-GAAP)	$	(226	)	$	(324	)	$	(115	)	$	(550	)	$	141
Noncash deemed dividend — common shares exchanged for Series A Preferred Stock	$	114			___			—		$	114			—
Other preferred dividends and amortization of discount on preferred stock		50		$	48			—			98			—
Net loss attributable to Key common shareholders (GAAP)	$	(390	)	$	(536	)	$	(1,126	)	$	(926	)	$	(908	)
Net (loss) income attributable to Key common shareholders, excluding charges related to intangible assets impairment and leveraged lease tax litigation (non-GAAP)		(390	)		(372	)		(115	)		(762	)		141
Per common share
Net loss attributable to Key common shareholders — assuming dilution (GAAP)	$	(.68	)	$	(1.09	)	$	(2.70	)	$	(1.73	)	$	(2.23	)
Net (loss) income attributable to Key common shareholders, excluding charges related to intangible assets impairment and leveraged lease tax litigation — assuming dilution (non-GAAP)		(.68	)		(.76	)		(.28	)		(1.42	)		.34
Performance ratios from consolidated operations
Return on average total assets: (a)
Average total assets	$	100,858		$	103,815		$	103,290		$	102,328		$	103,323
Return on average total assets (GAAP)		(.90	)%		(1.91	)%		(4.38	)%		(1.41	)%		(1.77	)%
Return on average total assets, excluding charges related to intangible assets impairment and leveraged lease tax litigation (non-GAAP)		(.90	)		(1.27	)		(.45	)		(1.08	)		.27
Return on average common equity: (a)
Average common equity	$	7,227		$	7,277		$	8,489		$	7,252		$	8,467
Return on average common equity (GAAP)		(15.32	)%		(29.87	)%		(53.35	)%		(22.58	)%		(21.57	)%
Return on average common equity, excluding charges related to intangible assets impairment and leveraged lease tax litigation (non-GAAP)		(15.32	)		(20.73	)		(5.45	)		(18.02	)		3.35
Net interest income and margin
Net interest income:
Net interest income (GAAP)	$	592		$	614		$	358		$	1,206		$	1,071
Charges related to leveraged lease tax litigation, pre-tax		—			—			359			—			362
Net interest income, excluding charges related to leveraged lease tax litigation (non-GAAP)	$	592		$	614		$	717		$	1,206		$	1,433
Net interest income/margin (TE):
Net interest income (expense) (TE) (as reported)	$	598		$	620		$	(100	)	$	1,218		$	604
Charges related to leveraged lease tax litigation, pre-tax (TE)		—			—			838			—			872
Net interest income, excluding charges related to leveraged lease tax litigation (TE) (adjusted basis)	$	598		$	620		$	738		$	1,218		$	1,476
Net interest margin (TE) (as reported)(a)		2.67	%		2.77	%		(.44	)%		2.72	%		1.35	%
Impact of charges related to leveraged lease tax litigation, pre-tax (TE)(a)		—			—			3.76			—			1.95
Net interest margin, excluding charges related to leveraged lease tax litigation (TE) (adjusted basis)(a)		2.67	%		2.77	%		3.32	%		2.72	%		3.30	%

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 20

GAAP to Non-GAAP Reconciliations (continued)
(dollars in millions, except per share amounts)

	Three months ended
	6-30-09			3-31-09			6-30-08
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP)	$	10,851		$	9,968		$	8,706
Less: Intangible assets		1,023			1,029			1,744
Preferred Stock, Series B		2,422			2,418			—
Preferred Stock, Series A		291			658			650
Tangible common equity (non-GAAP)	$	7,115		$	5,863		$	6,312
Total assets (GAAP)	$	97,792		$	97,834		$	101,544
Less: Intangible assets		1,023			1,029			1,744
Tangible assets (non-GAAP)	$	96,769		$	96,805		$	99,800
Tangible common equity to tangible assets ratio (non-GAAP)		7.35	%		6.06	%		6.32	%
Tier 1 common equity at period end
Key shareholders’ equity (GAAP)	$	10,851		$	9,968		$	8,706
Qualifying capital securities		2,290			2,582			2,582
Less: Goodwill		917			917			1,598
Accumulated other comprehensive (loss) income		(20	)		111			79
Other assets(b)		177			184			221
Total Tier 1 capital (regulatory)		12,067			11,338			9,390
Less: Qualifying capital securities		2,290			2,582			2,582
Preferred Stock, Series B		2,422			2,418			—
Preferred Stock, Series A		291			658			650
Total Tier 1 common equity (non-GAAP)	$	7,064		$	5,680		$	6,158
Net risk-weighted assets (regulatory)(b), (c)	$	97,198		$	101,077		$	110,027
Tier 1 common equity ratio (non-GAAP)(c)		7.27	%		5.62	%		5.60	%

(a)	Income statement amount has been annualized in calculation of percentage.
(b)	Other assets deducted from Tier 1 capital and net risk-weighted assets consist of intangible assets (excluding goodwill) recorded after February 19, 1992, and deductible portions of nonfinancial equity investments.
(c)	6-30-09 amount or ratio is estimated.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 21

Consolidated Balance Sheets
(dollars in millions)

	6-30-09			3-31-09			6-30-08
Assets
Loans	$	70,803		$	73,703		$	75,855
Loans held for sale		909			1,124			1,833
Securities available for sale		12,174			8,530			8,312
Held-to-maturity securities		25			25			25
Trading account assets		771			1,279			1,483
Short-term investments		3,487			2,917			826
Other investments		1,450			1,464			1,559
Total earning assets		89,619			89,042			89,893
Allowance for loan losses		(2,499	)		(2,186	)		(1,421	)
Cash and due from banks		723			637			1,912
Premises and equipment		858			847			748
Operating lease assets		842			889			1,089
Goodwill		917			917			1,598
Other intangible assets		106			112			146
Corporate-owned life insurance		3,016			2,994			2,917
Derivative assets		1,182			1,707			1,693
Accrued income and other assets		3,028			2,875			2,969
Total assets	$	97,792		$	97,834		$	101,544
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	23,939		$	23,599		$	27,278
Savings deposits		1,795			1,795			1,809
Certificates of deposit ($100,000 or more)		13,486			13,250			8,699
Other time deposits		15,055			14,791			12,541
Total interest-bearing deposits		54,275			53,435			50,327
Noninterest-bearing deposits		12,977			11,760			10,561
Deposits in foreign office — interest-bearing		632			801			3,508
Total deposits		67,884			65,996			64,396
Federal funds purchased and securities sold under repurchase agreements		1,530			1,565			2,088
Bank notes and other short-term borrowings		1,710			2,285			5,985
Derivative liabilities		530			932			637
Accrued expense and other liabilities		1,616			1,904			4,447
Long-term debt		13,462			14,978			15,106
Total liabilities		86,732			87,660			92,659
Equity
Preferred stock, Series A		291			658			650
Preferred stock, Series B		2,422			2,418			—
Common shares		865			584			577
Common stock warrant		87			87			—
Capital surplus		3,292			2,464			2,544
Retained earnings		5,878			6,160			7,461
Treasury stock, at cost		(1,984	)		(2,500	)		(2,675	)
Accumulated other comprehensive income		—			97			149
Key shareholders’ equity		10,851			9,968			8,706
Noncontrolling interests		209			206			179
Total equity		11,060			10,174			8,885
Total liabilities and equity	$	97,792		$	97,834		$	101,544
Common shares outstanding (000)		797,246			498,573			485,662

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 22

Consolidated Statements of Income
(dollars in millions, except per share amounts)

	Three months ended									Six months ended
	6-30-09			3-31-09			6-30-08			6-30-09			6-30-08
Interest income
Loans	$	857		$	883		$	717		$	1,740		$	1,840
Loans held for sale		9			12			20			21			107
Securities available for sale		99			108			111			207			220
Held-to-maturity securities		—			1			—			1			1
Trading account assets		13			13			10			26			23
Short-term investments		3			3			8			6			17
Other investments		13			12			14			25			26
Total interest income		994			1,032			880			2,026			2,234
Interest expense
Deposits		296			300			347			596			775
Federal funds purchased and securities sold under repurchase agreements		1			1			15			2			43
Bank notes and other short-term borrowings		4			6			27			10			66
Long-term debt		101			111			133			212			279
Total interest expense		402			418			522			820			1,163
Net interest income		592			614			358			1,206			1,071
Provision for loan losses		850			875			647			1,725			834
Net interest (expense) income after provision for loan losses		(258	)		(261	)		(289	)		(519	)		237
Noninterest income
Trust and investment services income		119			110			130			229			253
Service charges on deposit accounts		83			82			93			165			181
Operating lease income		59			61			68			120			137
Letter of credit and loan fees		45			38			51			83			88
Corporate-owned life insurance income		25			27			28			52			56
Electronic banking fees		27			24			27			51			51
Insurance income		16			18			20			34			35
Investment banking and capital markets income		17			18			80			35			88
Net securities gains (losses) (a)		125			(14	)		(1	)		111			2
Net losses from principal investing		(6	)		(72	)		(14	)		(78	)		(3	)
Net (losses) gains from loan securitizations and sales		(3	)		8			33			5			(68	)
Gain related to exchange of common shares for capital securities		95			—			—			95			—
Gain from sale/redemption of Visa Inc. shares		—			105			—			105			165
Other income		113			80			32			193			86
Total noninterest income		715			485			547			1,200			1,071
Noninterest expense
Personnel		377			361			402			738			809
Net occupancy		63			66			62			129			128
Operating lease expense		49			50			55			99			113
Computer processing		48			47			43			95			90
Professional fees		47			34			32			81			55
FDIC assessment		70			30			2			100			4
Equipment		25			22			23			47			47
Marketing		17			14			21			31			35
Intangible assets impairment		—			196			—			196			—
Other expense		174			122			137			296			225
Total noninterest expense		870			942			777			1,812			1,506
Loss from continuing operations before income taxes		(413	)		(718	)		(519	)		(1,131	)		(198	)
Income taxes		(180	)		(242	)		610			(422	)		713
Loss from continuing operations		(233	)		(476	)		(1,129	)		(709	)		(911	)
Income (loss) from discontinued operations, net of taxes		10			(22	)		2			(12	)		3
Net loss		(223	)		(498	)		(1,127	)		(721	)		(908	)
Less: Net income (loss) attributable to noncontrolling interests		3			(10	)		(1	)		(7	)		—
Net loss attributable to Key	$	(226	)	$	(488	)	$	(1,126	)	$	(714	)	$	(908	)
Loss from continuing operations attributable to Key common shareholders	$	(400	)	$	(514	)	$	(1,128	)	$	(914	)	$	(911	)
Net loss attributable to Key common shareholders		(390	)		(536	)		(1,126	)		(926	)		(908	)
Per common share
Loss from continuing operations attributable to Key common shareholders	$	(.69	)	$	(1.04	)	$	(2.71	)	$	(1.71	)	$	(2.23	)
Income (loss) from discontinued operations, net of taxes		.02			(.04	)		—			(.02	)		.01
Net loss attributable to Key common shareholders		(.68	)		(1.09	)		(2.70	)		(1.73	)		(2.23	)
Per common share — assuming dilution
Loss from continuing operations attributable to Key common shareholders	$	(.69	)	$	(1.04	)	$	(2.71	)	$	(1.71	)	$	(2.23	)
Income (loss) from discontinued operations, net of taxes		.02			(.04	)		—			(.02	)		.01
Net loss attributable to Key common shareholders		(.68	)		(1.09	)		(2.70	)		(1.73	)		(2.23	)
Cash dividends declared per common share	$	.01		$	.0625		$	.375		$	.0725		$	.375
Weighted-average common shares outstanding (000)		576,883			492,813			416,629			535,080			407,875
Weighted-average common shares and potential common shares outstanding (000)		576,883			492,813			416,629			535,080			407,875

(a) Subsequent to the April 1, 2009, adoption of FASB Staff Position No. 115-2 and 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments,” impairment losses incurred for the three months ended June 30, 2009, totaled $7 million, of which $1 million was recorded in equity as a component of accumulated other comprehensive income on the balance sheet.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 23

Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates
(dollars in millions)

	Second Quarter 2009								First Quarter 2009								Second Quarter 2008
	Average								Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate			Balance			Interest			Yield/Rate
Assets
Loans:(a), (b)
Commercial, financial and agricultural	$	24,468		$	273		4.48	%	$	26,427		$	278		4.26	%	$	26,057		$	352			5.42	%
Real estate — commercial mortgage		11,892			144		4.83			10,965	(c)		140		5.20			10,593			156			5.91
Real estate — construction		6,264			76		4.89			7,511	(c)		84		4.54			8,484			118			5.61
Commercial lease financing		8,432			90		4.26			8,790			94		4.28			9,798			(709	)		(28.94	)(d)
Total commercial loans		51,056			583		4.58			53,693			596		4.50			54,932			(83	)		(.58	)
Real estate — residential mortgage		1,750			26		5.96			1,776			27		6.00			1,918			30			6.12
Home equity:
Community Banking		10,289			112		4.36			10,273			114		4.49			9,765			140			5.78
National Banking		974			18		7.47			1,040			19		7.52			1,200			23			7.68
Total home equity loans		11,263			130		4.63			11,313			133		4.77			10,965			163			5.99
Consumer other — Community Banking		1,207			31		10.41			1,225			32		10.56			1,271			33			10.34
Consumer other — National Banking:
Marine		3,178			49		6.23			3,331			52		6.24			3,646			56			6.26
Education		3,671			38		4.18			3,717			43		4.59			3,595			53			5.88
Other		256			6		7.96			274			5		7.97			325			7			8.21
Total consumer other — National Banking		7,105			93		5.23			7,322			100		5.47			7,566			116			6.16
Total consumer loans		21,325			280		5.27			21,636			292		5.43			21,720			342			6.32
Total loans		72,381			863		4.78			75,329			888		4.77			76,652			259			1.37
Loans held for sale		1,080			9		3.42			1,197			12		4.07			1,356			20			5.94
Securities available for sale(a), (e)		8,535			99		4.72			8,310			109		5.33			8,315			111			5.40
Held-to-maturity securities(a)		25			—		9.75			25			1		9.84			25			—			11.47
Trading account assets		1,217			13		4.09			1,348			13		3.97			1,041			10			3.88
Short-term investments		5,195			3		.26			2,450			3		.47			773			8			3.83
Other investments(e)		1,463			13		3.19			1,523			12		2.80			1,580			14			3.09
Total earning assets		89,896			1,000		4.46			90,182			1,038		4.64			89,742			422			1.89
Allowance for loan losses		(2,375	)							(2,067	)							(1,338	)
Accrued income and other assets		13,337								15,700								14,886
Total assets	$	100,858							$	103,815							$	103,290
Liabilities
NOW and money market deposit accounts	$	24,058			32		.52		$	23,957			38		.65		$	27,158			102			1.51
Savings deposits		1,806			1		.07			1,744			—		.09			1,815			1			.27
Certificates of deposit ($100,000 or more) (f)		13,555			124		3.69			12,455			121		3.93			8,670			88			4.09
Other time deposits		14,908			139		3.74			14,737			140		3.85			12,751			135			4.27
Deposits in foreign office		579			—		.26			1,259			1		.21			4,121			21			1.95
Total interest-bearing deposits		54,906			296		2.15			54,152			300		2.24			54,515			347			2.56
Federal funds purchased and securities sold under repurchase agreements		1,627			1		.31			1,545			1		.31			3,267			15			1.86
Bank notes and other short-term borrowings		1,821			4		.79			4,405			6		.58			4,770			27			2.26
Long-term debt (f)		14,372			101		2.99			14,760			111		3.20			14,620			133			3.87
Total interest-bearing liabilities		72,726			402		2.24			74,862			418		2.29			77,172			522			2.75
Noninterest-bearing deposits		12,575								11,232								10,617
Accrued expense and other liabilities		5,152								7,163								6,706
Total liabilities		90,453								93,257								94,495
Equity
Key shareholders’ equity		10,201								10,352								8,617
Noncontrolling interests		204								206								178
Total equity		10,405								10,558								8,795
Total liabilities and equity	$	100,858							$	103,815							$	103,290
Interest rate spread (TE)							2.22	%							2.35	%								(.86)	%
Net interest income (expense) (TE) and net interest margin (TE)					598		2.67	%					620		2.77	%					(100	)(d)		(.44	)%(d)
TE adjustment(a)					6								6								(458	)
Net interest income, GAAP basis				$	592							$	614							$	358

Average balances have not been restated to reflect Key’s January 1, 2008, adoption of Financial Accounting Standards Board (“FASB”) Interpretation No. 39, “Offsetting of Amounts Related to Certain Contracts,” and FASB Staff Position FIN 39-1, “Amendment of FASB Interpretation 39.”

(a)	Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%.
(b)	For purposes of these computations, nonaccrual loans are included in average loan balances.
(c)	In late March 2009, Key transferred $1.5 billion of loans from the construction portfolio to the commercial mortgage portfolio in accordance with regulatory guidelines pertaining to the classification of loans that have reached a completed status.
(d)	During the second quarter of 2008, Key’s taxable-equivalent net interest income was reduced by $838 million following an adverse federal court decision on Key’s tax treatment of a leveraged sale-leaseback transaction. Excluding this reduction, the taxable-equivalent yield on Key’s commercial lease financing portfolio would have been 5.25% for the second quarter of 2008, and Key’s taxable-equivalent net interest margin would have been 3.32%.
(e)	Yield is calculated on the basis of amortized cost.
(f)	Rate calculation excludes basis adjustments related to fair value hedges.

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

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 24

Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates
(dollars in millions)

	Six months ended June 30, 2009								Six months ended June 30, 2008
	Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest			Yield/Rate
Assets
Loans: (a),(b)
Commercial, financial and agricultural	$	25,442		$	551		4.37	%	$	25,734		$	744			5.81	%
Real estate — commercial mortgage		11,431	(c)		284		5.01			10,438			331			6.37
Real estate — construction		6,884	(c)		160		4.70			8,476			252			5.98
Commercial lease financing		8,610			184		4.27			9,901			(611	)		(12.34	)(d)
Total commercial loans		52,367			1,179		4.54			54,549			716			2.65
Real estate — residential mortgage		1,763			53		5.98			1,917			60			6.20
Home equity:
Community Banking		10,281			226		4.42			9,729			294			6.08
National Banking		1,007			37		7.50			1,230			47			7.71
Total home equity loans		11,288			263		4.70			10,959			341			6.26
Consumer other — Community Banking		1,216			63		10.48			1,288			67			10.46
Consumer other — National Banking:
Marine		3,254			101		6.23			3,646			114			6.28
Education		3,694			81		4.39			1,979			60			6.07
Other		265			11		7.97			332			14			8.27
Total consumer other — National Banking		7,213			193		5.35			5,957			188			6.32
Total consumer loans		21,480			572		5.35			20,121			656			6.55
Total loans		73,847			1,751		4.77			74,670			1,372			3.70
Loans held for sale		1,138			21		3.76			3,170			107			6.78
Securities available for sale(a),(e)		8,423			208		5.02			8,367			221			5.34
Held-to-maturity securities(a)		25			1		9.79			27			1			11.23
Trading account assets		1,282			26		4.03			1,058			23			4.37
Short-term investments		3,830			6		.33			969			17			3.44
Other investments(e)		1,493			25		3.00			1,566			26			3.07
Total earning assets		90,038			2,038		4.55			89,827			1,767			3.95
Allowance for loan losses		(2,222	)							(1,287	)
Accrued income and other assets		14,512								14,783
Total assets	$	102,328							$	103,323
Liabilities
NOW and money market deposit accounts	$	24,008			70		.58		$	27,077			241			1.79
Savings deposits		1,775			1		.08			1,840			4			.45
Certificates of deposit ($100,000 or more)(f)		13,008			245		3.80			8,371			183			4.39
Other time deposits		14,823			279		3.79			12,755			281			4.43
Deposits in foreign office		917			1		.25			4,987			66			2.64
Total interest-bearing deposits		54,531			596		2.20			55,030			775			2.83
Federal funds purchased and securities sold under repurchase agreements		1,586			2		.31			3,565			43			2.43
Bank notes and other short-term borrowings		3,106			10		.64			4,852			66			2.75
Long-term debt (f)		14,565			212		3.10			13,929			279			4.27
Total interest-bearing liabilities		73,788			820		2.26			77,376			1,163			3.05
Noninterest-bearing deposits		11,907								10,679
Accrued expense and other liabilities		6,152								6,547
Total liabilities		91,847								94,602
Equity
Key shareholders’ equity		10,276								8,531
Noncontrolling interests		205								190
Total equity		10,481								8,721
Total liabilities and equity	$	102,328							$	103,323
Interest rate spread (TE)							2.29	%								.90	%
Net interest income (TE) and net interest margin (TE)					1,218		2.72	%					604	(d)		1.35	%(d)
TE adjustment(a)					12								(467	)
Net interest income, GAAP basis				$	1,206							$	1,071

Average balances have not been restated to reflect Key’s January 1, 2008, adoption of Financial Accounting Standards Board (“FASB”) Interpretation No. 39, “Offsetting of Amounts Related to Certain Contracts,” and FASB Staff Position FIN 39-1, “Amendment of FASB Interpretation 39.”

(a)	Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%.
(b)	For purposes of these computations, nonaccrual loans are included in average loan balances.
(c)	In late March 2009, Key transferred $1.5 billion of loans from the construction portfolio to the commercial mortgage portfolio in accordance with regulatory guidelines pertaining to the classification of loans that have reached a completed status.
(d)	During the second quarter of 2008, Key’s taxable-equivalent net interest income was reduced by $838 million following an adverse federal court decision on Key’s tax treatment of a leveraged sale-leaseback transaction. During the first quarter of 2008, Key increased its tax reserves for certain lease in, lease out transactions and recalculated its lease income in accordance with prescribed accounting standards. These actions reduced Key’s first quarter 2008 taxable-equivalent net interest income by $34 million. Excluding these reductions, the taxable-equivalent yield on Key’s commercial lease financing portfolio would have been 5.26% for the first six months of 2008, and Key’s taxable-equivalent net interest margin would have been 3.30%.
(e)	Yield is calculated on the basis of amortized cost.
(f)	Rate calculation excludes basis adjustments related to fair value hedges.

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

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 25

Noninterest Income
(in millions)

	Three months ended									Six months ended
	6-30-09			3-31-09			6-30-08			6-30-09			6-30-08
Trust and investment services income(a)	$	119		$	110		$	130		$	229		$	253
Service charges on deposit accounts		83			82			93			165			181
Operating lease income		59			61			68			120			137
Letter of credit and loan fees		45			38			51			83			88
Corporate-owned life insurance income		25			27			28			52			56
Electronic banking fees		27			24			27			51			51
Insurance income		16			18			20			34			35
Investment banking and capital markets income(a)		17			18			80			35			88
Net securities gains (losses)		125			(14	)		(1	)		111			2
Net losses from principal investing		(6	)		(72	)		(14	)		(78	)		(3	)
Net (losses) gains from loan securitizations and sales		(3	)		8			33			5			(68	)
Gain related to exchange of common shares for capital securities		95			—			—			95			—
Gain from sale/redemption of Visa Inc. shares		—			105			—			105			165
Other income:
Gain from sale of Key’s claim associated with Lehman Brothers’ bankruptcy		32			—			—			32			—
Gains on leased equipment		36			26			7			62			15
Loan securitization servicing fees		4			4			5			8			9
Credit card fees		3			3			3			6			7
Miscellaneous income		38			47			17			85			55
Total other income		113			80			32			193			86
Total noninterest income	$	715		$	485		$	547		$	1,200		$	1,071

(a) Additional detail provided in tables below.

Trust and Investment Services Income
(in millions)

	Three months ended						Six months ended
	6-30-09		3-31-09		6-30-08		6-30-09		6-30-08
Brokerage commissions and fee income	$	45	$	38	$	41	$	83	$	74
Personal asset management and custody fees		36		33		40		69		81
Institutional asset management and custody fees		38		39		49		77		98
Total trust and investment services income	$	119	$	110	$	130	$	229	$	253

Investment Banking and Capital Markets Income
(in millions)

	Three months ended								Six months ended
	6-30-09			3-31-09			6-30-08		6-30-09			6-30-08
Investment banking income	$	21		$	11		$	36	$	32		$	58
(Loss) income from other investments		(6	)		(8	)		1		(14	)		(5	)
Dealer trading and derivatives (loss) income		(11	)		2			28		(9	)		7
Foreign exchange income		13			13			15		26			28
Total investment banking and capital markets income	$	17		$	18		$	80	$	35		$	88

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 26

Noninterest Expense
(dollars in millions)

	Three months ended							Six months ended
	6-30-09		3-31-09		6-30-08			6-30-09		6-30-08
Personnel(a)	$	377	$	361	$	402		$	738	$	809
Net occupancy		63		66		62			129		128
Operating lease expense		49		50		55			99		113
Computer processing		48		47		43			95		90
Professional fees		47		34		32			81		55
FDIC assessment		70		30		2			100		4
Equipment		25		22		23			47		47
Marketing		17		14		21			31		35
Intangible assets impairment		—		196		—			196		—
Other expense:
Postage and delivery		8		8		12			16		23
Franchise and business taxes		9		9		8			18		16
Telecommunications		6		7		7			13		15
Provision (credit) for losses on lending-related commitments		11		—		(2	)		11		(29	)
Miscellaneous expense		140		98		112			238		200
Total other expense		174		122		137			296		225
Total noninterest expense	$	870	$	942	$	777		$	1,812	$	1,506
Average full-time equivalent employees(b)		16,937		17,468		18,164			17,201		18,295

(a)	Additional detail provided in table below.
(b)	The number of average full-time equivalent employees has not been adjusted for discontinued operations.

Personnel Expense
(in millions)

	Three months ended						Six months ended
	6-30-09		3-31-09		6-30-08		6-30-09		6-30-08
Salaries	$	226	$	224	$	234	$	450	$	472
Incentive compensation		52		37		78		89		151
Employee benefits		70		83		65		153		141
Stock-based compensation		15		9		17		24		31
Severance		14		8		8		22		14
Total personnel expense	$	377	$	361	$	402	$	738	$	809

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 27

Loan Composition
(dollars in millions)

								Percent change 6-30-09 vs.
	6-30-09		3-31-09			6-30-08		3-31-09			6-30-08
Commercial, financial and agricultural	$	23,542	$	25,405		$	25,929		(7.3)	%		(9.2)	%
Commercial real estate:
Commercial mortgage		11,761		12,057	(a)		10,737		(2.5	)		9.5
Construction		6,119		6,208	(a)		7,849		(1.4	)		(22.0	)
Total commercial real estate loans		17,880		18,265			18,586		(2.1	)		(3.8	)
Commercial lease financing		8,263		8,553			9,610		(3.4	)		(14.0	)
Total commercial loans		49,685		52,223			54,125		(4.9	)		(8.2	)
Real estate — residential mortgage		1,753		1,759			1,928		(.3	)		(9.1	)
Home equity:
Community Banking		10,256		10,290			9,851		(.3	)		4.1
National Banking		934		998			1,153		(6.4	)		(19.0	)
Total home equity loans		11,190		11,288			11,004		(.9	)		1.7
Consumer other — Community Banking		1,199		1,215			1,261		(1.3	)		(4.9	)
Consumer other — National Banking:
Marine		3,095		3,256			3,634		(4.9	)		(14.8	)
Education		3,636		3,700			3,584		(1.7	)		1.5
Other		245		262			319		(6.5	)		(23.2	)
Total consumer other — National Banking		6,976		7,218			7,537		(3.4	)		(7.4	)
Total consumer loans		21,118		21,480			21,730		(1.7	)		(2.8	)
Total loans	$	70,803	$	73,703		$	75,855		(3.9)	%		(6.7)	%

Loans Held for Sale Composition
(dollars in millions)

							Percent change 6-30-09 vs.
	6-30-09		3-31-09		6-30-08		3-31-09			6-30-08
Commercial, financial and agricultural	$	51	$	24	$	212		112.5	%		(75.9	)%
Real estate — commercial mortgage		288		301		994		(4.3	)		(71.0	)
Real estate — construction		146		151		398		(3.3	)		(63.3	)
Commercial lease financing		30		10		42		200.0			(28.6	)
Real estate — residential mortgage		245		183		79		33.9			210.1
Education		148		453		103		(67.3	)		43.7
Automobile		1		2		5		(50.0	)		(80.0	)
Total loans held for sale	$	909	$	1,124	$	1,833		(19.1	)%		(50.4	)%

(a) In late March 2009, Key transferred $1.5 billion of loans from the construction portfolio to the commercial mortgage portfolio in accordance with regulatory guidelines pertaining to the classification of loans that have reached a completed status.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 28

Summary of Loan Loss Experience
(dollars in millions)

	Three months ended									Six months ended
	6-30-09			3-31-09			6-30-08			6-30-09			6-30-08
Average loans outstanding	$	72,381		$	75,329		$	76,652		$	73,847		$	74,670
Allowance for loan losses at beginning of period	$	2,186		$	1,803		$	1,298		$	1,803		$	1,200
Loans charged off:
Commercial, financial and agricultural		182			244			75			426			125
Real estate — commercial mortgage		87			22			15			109			19
Real estate — construction		135			104			340			239			365
Total commercial real estate loans(a)		222			126			355			348			384
Commercial lease financing		29			22			18			51			33
Total commercial loans		433			392			448			825			542
Real estate — residential mortgage		4			3			2			7			6
Home equity:
Community Banking		25			18			9			43			18
National Banking		19			15			11			34			18
Total home equity loans		44			33			20			77			36
Consumer other — Community Banking		17			14			11			31			20
Consumer other — National Banking:
Marine		39			39			16			78			35
Education (b)		38			33			55			71			57
Other		3			6			2			9			6
Total consumer other — National Banking		80			78			73			158			98
Total consumer loans		145			128			106			273			160
Total loans charged off		578			520			554			1,098			702
Recoveries:
Commercial, financial and agricultural		14			12			14			26			28
Real estate — commercial mortgage		—			1			—			1			—
Real estate — construction		2			—			1			2			1
Total commercial real estate loans		2			1			1			3			1
Commercial lease financing		7			4			4			11			10
Total commercial loans		23			17			19			40			39
Real estate — residential mortgage		—			—			1			—			1
Home equity:
Community Banking		1			1			—			2			1
National Banking		1			—			1			1			1
Total home equity loans		2			1			1			3			2
Consumer other — Community Banking		2			1			1			3			3
Consumer other — National Banking:
Marine		10			7			6			17			9
Education		1			1			1			2			1
Other		1			1			1			2			2
Total consumer other — National Banking		12			9			8			21			12
Total consumer loans		16			11			11			27			18
Total recoveries		39			28			30			67			57
Net loan charge-offs		(539	)		(492	)		(524	)		(1,031	)		(645	)
Provision for loan losses		850			875			647			1,725			834
Allowance related to loans acquired, net		—			—			—			—			32
Foreign currency translation adjustment		2			—			—			2			—
Allowance for loan losses at end of period	$	2,499		$	2,186		$	1,421		$	2,499		$	1,421
Net loan charge-offs to average loans		2.99	%		2.65	%		2.75	%		2.81	%		1.74	%
Allowance for loan losses to period-end loans		3.53			2.97			1.87			3.53			1.87
Allowance for loan losses to nonperforming loans		114.21			125.78			174.57			114.21			174.57

(a)	During the second quarter of 2008, Key transferred $384 million of commercial real estate loans ($719 million of primarily construction loans, net of $335 million in net charge-offs) from the loan portfolio to held-for-sale status.
(b)	On March 31, 2008, Key transferred $3.3 billion of education loans from loans held for sale to the loan portfolio.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 29

Changes in Liability for Credit Losses on Lending-Related Commitments
(in millions)

	Three months ended							Six months ended
	6-30-09		3-31-09		6-30-08			6-30-09		6-30-08
Balance at beginning of period	$	54	$	54	$	53		$	54	$	80
Provision (credit) for losses on lending-related commitments		11		—		(2	)		11		(29	)
Balance at end of period(a)	$	65	$	54	$	51		$	65	$	51

(a) Included in “accrued expense and other liabilities” on the consolidated balance sheet.

Summary of Nonperforming Assets and Past Due Loans
(dollars in millions)

	6-30-09			3-31-09			12-31-08			9-30-08			6-30-08
Commercial, financial and agricultural	$	700		$	595		$	415		$	309		$	259
Real estate — commercial mortgage		454			310			128			119			107
Real estate — construction		716			546			436			334			256
Total commercial real estate loans		1,170			856			564			453			363	(b)
Commercial lease financing		122			109			81			55			57
Total commercial loans		1,992			1,560			1,060			817			679
Real estate — residential mortgage		46			39			39			35			32
Home equity:
Community Banking		101			91			76			70			61
National Banking		20			19			15			16			14
Total home equity loans		121			110			91			86			75
Consumer other — Community Banking		5			3			3			3			2
Consumer other — National Banking:
Marine		19			21			26			22			20
Education		3			3			4			3			4
Other		2			2			2			1			2
Total consumer other — National Banking		24			26			32			26			26
Total consumer loans		196			178			165			150			135
Total nonperforming loans		2,188			1,738			1,225			967			814
Nonperforming loans held for sale		145			72			90			169			342	(b)
OREO		182			147			110			64			26
Allowance for OREO losses		(11	)		(4	)		(3	)		(4	)		(2	)
OREO, net of allowance		171			143			107			60			24
Other nonperforming assets(a)		47			44			42			43			30
Total nonperforming assets	$	2,551		$	1,997		$	1,464		$	1,239		$	1,210
Accruing loans past due 90 days or more	$	581		$	458		$	433		$	328		$	367
Accruing loans past due 30 through 89 days		1,169			1,407			1,314			937			852
Nonperforming loans to period-end portfolio loans		3.09	%		2.36	%		1.60	%		1.26	%		1.07	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		3.58			2.70			1.91			1.61			1.59

Summary of Changes in Nonperforming Loans
(in millions)

	2Q09			1Q09			4Q08			3Q08			2Q08
Balance at beginning of period	$	1,738		$	1,225		$	967		$	814		$	1,054
Loans placed on nonaccrual status		1,218			1,175			734			530			789
Charge-offs		(578	)		(520	)		(369	)		(300	)		(547	)
Loans sold		(12	)		(15	)		(5	)		(1	)		(48	)
Payments		(110	)		(80	)		(77	)		(43	)		(86	)
Transfers to OREO		(30	)		(34	)		(22	)		—			—
Transfer to nonperforming loans held for sale		(30	)		—			—			(30	)		(342	)(b)
Loans returned to accrual status		(8	)		(13	)		(3	)		(3	)		(6	)
Balance at end of period	$	2,188		$	1,738		$	1,225		$	967		$	814

(a)	Primarily investments held by the Private Equity unit within Key’s Real Estate Capital and Corporate Banking Services line of business.
(b)	During the second quarter of 2008, Key transferred $384 million of commercial real estate loans ($719 million of primarily construction loans, net of $335 million in net charge-offs) from the loan portfolio to held-for-sale status.

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 30

Line of Business Results
(dollars in millions)

Community Banking

																Percent change 2Q09 vs.
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Summary of operations
Total revenue (TE)	$	592		$	599		$	640		$	651		$	654			(1.2)	%		(9.5	)%
Provision for loan losses		187			81			102			56			44			130.9			325.0
Noninterest expense		497			470			476			440			445			5.7			11.7
Net (loss) income attributable to Key		(57	)		30			39			97			103			N/M			N/M
Average loans and leases		28,237			28,940			29,164			28,874			28,470			(2.4	)		(.8	)
Average deposits		52,689			51,560			51,051			50,378			49,944			2.2			5.5
Net loan charge-offs		87			54			66			70			38			61.1			128.9
Net loan charge-offs to average loans		1.24	%		.76	%		.90	%		.96	%		.54	%		N/A			N/A
Nonperforming assets at period end	$	380		$	331		$	261		$	225		$	218			14.8			74.3
Return on average allocated equity		(6.81)	%		3.72	%		4.81	%		12.46	%		13.28	%		N/A			N/A
Average full-time equivalent employees		8,656			8,887			8,797			8,854			8,783			(2.6	)		(1.4	)
Supplementary information (lines of business)
Regional Banking
Total revenue (TE)	$	502		$	507		$	550		$	549		$	552			(1.0)	%		(9.1	)%
Provision for loan losses		165			69			80			39			25			139.1			560.0
Noninterest expense		447			419			429			394			397			6.7			12.6
Net (loss) income attributable to Key		(68	)		12			26			73			81			N/M			N/M
Average loans and leases		19,746			20,004			20,022			19,801			19,626			(1.3	)		.6
Average deposits		48,716			47,784			47,427			46,655			46,253			2.0			5.3
Net loan charge-offs		73			53			52			41			33			37.7			121.2
Net loan charge-offs to average loans		1.48	%		1.07	%		1.03	%		.82	%		.68	%		N/A			N/A
Nonperforming assets at period end	$	245		$	216		$	184		$	168		$	157			13.4			56.1
Return on average allocated equity		(11.71)	%		2.14	%		4.64	%		13.29	%		14.62	%		N/A			N/A
Average full-time equivalent employees		8,339			8,565			8,474			8,527			8,453			(2.6	)		(1.3	)
Commercial Banking
Total revenue (TE)	$	90		$	92		$	90		$	102		$	102			(2.2)	%		(11.8)	%
Provision for loan losses		22			12			22			17			19			83.3			15.8
Noninterest expense		50			51			47			46			48			(2.0	)		4.2
Net income attributable to Key		11			18			13			24			22			(38.9	)		(50.0	)
Average loans and leases		8,491			8,936			9,142			9,073			8,844			(5.0	)		(4.0	)
Average deposits		3,973			3,776			3,624			3,723			3,691			5.2			7.6
Net loan charge-offs		14			1			14			29			5			N/M			180.0
Net loan charge-offs to average loans		.66	%		.05	%		.61	%		1.27	%		.23	%		N/A			N/A
Nonperforming assets at period end	$	135		$	115		$	77		$	57		$	61			17.4			121.3
Return on average allocated equity		4.29	%		7.37	%		5.20	%		10.48	%		9.92	%		N/A			N/A
Average full-time equivalent employees		317			322			323			327			330			(1.6	)		(3.9	)

KeyCorp Reports Second Quarter 2009 Results
July 22, 2009
Page 31

Line of Business Results (continued)
(dollars in millions)

National Banking

																	Percent change 2Q09 vs.
	2Q09			1Q09			4Q08			3Q08				2Q08			1Q09			2Q08
Summary of operations
Total revenue (TE)	$	547		$	533		$	532		$	482			$	(133	)		2.6	%		N/M
Provision for loan losses		662			789			489			350				609			(16.1	)		8.7	%
Noninterest expense		358			506			820			337		��		335			(29.2	)		6.9
Loss from continuing operations attributable to Key		(294	)		(548	)		(660	)		(130	)			(674	)		46.4			56.4
Net loss attributable to Key		(284	)		(570	)		(659	)		(128	)			(672	)		50.2			57.7
Average loans and leases		43,943			46,197			47,468			47,069				47,872			(4.9	)		(8.2	)
Average loans held for sale		910			1,078			1,404			1,651				1,282			(15.6	)		(29.0	)
Average deposits		13,260			12,214			12,305			12,439				12,287			8.6			7.9
Net loan charge-offs		452			438			276			203				486			3.2			(7.0	)
Net loan charge-offs to average loans		4.13	%		3.85	%		2.31	%		1.72	%			4.08	%		N/A			N/A
Nonperforming assets at period end	$	2,149		$	1,646		$	1,190		$	1,014			$	992			30.6			116.6
Return on average allocated equity(a)		(21.41	)%		(40.77	)%		(49.23	)%		(9.97)	%			(51.37)	%		N/A			N/A
Return on average allocated equity		(20.68	)		(42.41	)		(49.16	)		(9.82	)			(51.22	)		N/A			N/A
Average full-time equivalent employees(b)		2,899			3,017			3,292			3,529				3,582			(3.9	)		(19.1	)
Supplementary information (lines of business)
Real Estate Capital and Corporate Banking Services
Total revenue (TE)	$	183		$	174		$	166		$	98			$	236			5.2	%		(22.5)	%
Provision for loan losses		462			470			153			99				366			(1.7	)		26.2
Noninterest expense		106			114			96			90				70			(7.0	)		51.4
Net loss attributable to Key		(239	)		(269	)		(52	)		(57	)			(125	)		11.2			(91.2	)
Average loans and leases		15,873			16,567			16,604			16,447				17,086			(4.2	)		(7.1	)
Average loans held for sale		231			269			511			792				616			(14.1	)		(62.5	)
Average deposits		10,582			9,987			10,390			10,446				10,460			6.0			1.2
Net loan charge-offs		274			218			81			100				376			25.7			(27.1	)
Net loan charge-offs to average loans		6.92	%		5.34	%		1.94	%		2.42	%			8.85	%		N/A			N/A
Nonperforming assets at period end	$	1,460		$	1,072		$	763		$	714			$	779			36.2			87.4
Return on average allocated equity		(35.84	)%		(44.75	)%		(9.64	)%		(11.04	)%			(23.04	)%		N/A			N/A
Average full-time equivalent employees		982			1,024			1,107			1,209				1,228			(4.1	)		(20.0	)
Equipment Finance
Total revenue (TE)	$	101		$	101		$	86		$	111			$	(696	)			%		N/M
Provision for loan losses		72			77			33			64				36			(6.5	)		100.0	%
Noninterest expense		88			85			347			89				90			3.5			(2.2	)
Net loss attributable to Key		(37	)		(38	)		(278	)		(26	)			(514	)		2.6			92.8
Average loans and leases		8,769			9,091			9,548			10,013				10,326			(3.5	)		(15.1	)
Average loans held for sale		40			28			29			49				51			42.9			(21.6	)
Average deposits		17			17			15			20				21			—			(19.0	)
Net loan charge-offs		46			44			51			32				28			4.5			64.3
Net loan charge-offs to average loans		2.10	%		1.96	%		2.12	%		1.27	%			1.09	%		N/A			N/A
Nonperforming assets at period end	$	270		$	215		$	158		$	115			$	105			25.6			157.1
Return on average allocated equity		(23.71	)%		(21.68	)%		(124.69	)%		(11.51	)%			(225.69	)%		N/A			N/A
Average full-time equivalent employees		732			741			811			849				867			(1.2	)		(15.6	)
Institutional and Capital Markets
Total revenue (TE)	$	185		$	171		$	194		$	177			$	223			8.2	%		(17.0)	%
Provision for loan losses		37			31			52			16				36			19.4			2.8
Noninterest expense		120			205			320			102				124			(41.5	)		(3.2	)
Income (loss) from continuing operations attributable to Key		18			(78	)		(191	)		37				39			N/M			(53.8	)
Net income (loss) attributable to Key		28			(100	)		(190	)		39				41			N/M			(31.7	)
Average loans and leases		8,388			8,948			9,352			8,363				7,898			(6.3	)		6.2
Average loans held for sale		193			267			545			649				494			(27.7	)		(60.9	)
Average deposits		2,332			1,773			1,442			1,479				1,384			31.5			68.5
Net loan charge-offs (recoveries)		11			45			38			(1	)			5			(75.6	)		120.0
Net loan charge-offs (recoveries) to average loans		.53	%		2.04	%		1.62	%		(.05	)%			.25	%		N/A			N/A
Nonperforming assets at period end	$	88		$	59		$	55		$	58			$	26			49.2			238.5
Return on average allocated equity(a)		6.33	%		(25.84	)%		(57.35	)%		11.39	%			12.52	%		N/A			N/A
Return on average allocated equity		9.85			(33.13	)		(57.05	)		12.01				13.16			N/A			N/A
Average full-time equivalent employees(b)		869			912			939			965				930			(4.7	)		(6.6	)
Consumer Finance
Total revenue (TE)	$	78		$	87		$	86		$	96			$	104			(10.3	)%		(25.0	)%
Provision for loan losses		91			211			251			171				171			(56.9	)		(46.8	)
Noninterest expense		44			102			57			56				51			(56.9	)		(13.7	)
Net loss attributable to Key		(36	)		(163	)		(139	)		(84	)			(74	)		77.9			51.4
Average loans and leases		10,913			11,591			11,964			12,246				12,562			(5.8	)		(13.1	)
Average loans held for sale		446			514			319			161				121			(13.2	)		268.6
Average deposits		329			437			458			494				422			(24.7	)		(22.0	)
Net loan charge-offs		121			131			106			72				77			(7.6	)		57.1
Net loan charge-offs to average loans		4.45	%		4.58	%		3.52	%		2.34	%			2.47	%		N/A			N/A
Nonperforming assets at period end	$	331		$	300		$	214		$	127			$	82			10.3			303.7
Return on average allocated equity		(13.53	)%		(61.32	)%		(56.66	)%		(35.51	)%			(32.14	)%		N/A			N/A
Average full-time equivalent employees		316			340			435			506				557			(7.1	)		(43.3	)

(a)	From continuing operations.
(b)	The number of average full-time equivalent employees has not been adjusted for discontinued operations.
TE =	Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful