KeyCorp (KEY) 8-K Keycorp Reports Fourth Quarter and 2004 Earnings

EXHIBIT 99.1

Analyst Contact:	Vernon L. Patterson	Media Contact:	Gary Cavano
	216.689.0520		216.689.0517
Investor Relations		Key Media
Information:	www.Key.com/ir	Newsroom: www.Key.com/newsroom

FOR IMMEDIATE RELEASE

KEYCORP REPORTS FOURTH QUARTER AND 2004 EARNINGS

• Strategic actions impact fourth quarter results and improve risk profile

• Acquisitions completed during fourth quarter strengthen market share positions

• Higher revenue

• Strong commercial loan growth

• Continued improvement in asset quality

CLEVELAND, January 21, 2005 — KeyCorp (NYSE: KEY) today announced fourth quarter net income of $213 million, or $0.51 per diluted common share. Excluding the effects of the sale of the broker-originated home equity loan portfolio and the reclassification of the indirect automobile loan portfolio to held-for-sale status, adjusted net income for the quarter was $290 million, or $0.70 per share. These results compare with net income of $252 million, or $0.61 per share, for the third quarter of 2004, and $234 million, or $0.55 per share, for the fourth quarter of 2003.

     On a reported basis, Key’s net income for 2004 was $954 million, or $2.30 per diluted common share, compared with $903 million, or $2.12 per share in 2003.

     The following table shows the extent to which the above actions contributed to the difference between Key’s reported and adjusted earnings for the fourth quarter of 2004.

Fourth Quarter 2004 Results

	Pre-tax		After-tax		EPS
dollars in millions, except per share data	Amount		Amount		Impacta
Fourth quarter earnings as reported (GAAP basis)b	$	354	$	213	$	.51
Actions resulting in significant nonrecurring charges:
Sale of broker-originated home equity loan portfolio		9		6		.01
Write-off of goodwill (nonprime indirect automobile loan business)		55		55		.13
Reclassification of indirect automobile loan portfolio to
held-for-sale status		14		16		.04
Adjusted earnings	$	432	$	290	$	.70

(a) Earnings per share (“EPS”) components may not foot due to rounding.

(b) GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 2

     “Key’s fourth quarter results reflect our continued focus on revenue growth and improved asset quality,” said Chairman and Chief Executive Officer Henry L. Meyer III. “Higher levels of both net interest income and adjusted noninterest income generated an increase of $71 million in adjusted total taxable-equivalent revenue relative to the prior quarter. This improvement reflected continued growth in commercial loan balances as well as strengthening financial markets. Also, asset quality continued to improve as nonperforming loans decreased for the ninth consecutive quarter, and core deposit growth was solid.

     “During the quarter, we improved our market share positions by completing the acquisitions of EverTrust Bank and American Express Business Finance Corporation. In addition, we improved our risk profile by selling our broker-originated home equity loan portfolio in December and moving our indirect automobile loan portfolio to held-for-sale status in anticipation of its sale. These actions will result in an improved business mix as we acquired $2.2 billion of loans in lending businesses that provide an opportunity to build customer relationships and moved ahead to sell $2.7 billion of loans in credit-only relationship businesses.

     “Looking ahead, Key is well positioned to benefit from an improving economy. We have successfully repositioned our balance sheet in anticipation of rising interest rates and significantly improved our risk profile. For the first quarter of 2005, we expect earnings to be in the range of $0.60 to $0.63 per share, and for the full year, our expectation is for earnings to be in the range of $2.55 to $2.65 per share.”

SUMMARY OF CONSOLIDATED RESULTS

     To facilitate comparisons between current and prior quarter results, the following Summary of Operations illustrates the financial impact of management’s decision to sell Key’s broker-originated home equity loan portfolio and its indirect automobile loan portfolio on the major components of Key’s income statement for the fourth quarter.

Summary of Operations

											Change 4Q04 adjusted basis
	4Q04						4Q04		3Q04		vs 3Q04 as reported
in millions, except per share amounts	As Reported			Adjustmentsa			Adjusted Basis		As Reported		Amount			Percent
Net interest income (TE)	$	708			—		$	708	$	680	$	28			4.1	%
Noninterest income		433		$	46			479		436		43			9.9
Total revenue (TE)		1,141			46			1,187		1,116		71			6.4
Provision for loan losses		(21	)		21			—		51		(51	)		(100.0	)
Noninterest expense		782			(53	)		729		690		39			5.7
Income before income taxes (TE)		380			78			458		375		83			22.1
Income taxes and TE adjustments		167			1			168		123		45			36.6
Net income	$	213		$	77		$	290	$	252	$	38			15.1
Diluted earnings per common share	$	.51		$	.19		$	.70	$	.61	$	.09			14.8	%

(a) Adjustments reflect the effects of Key’s fourth quarter 2004 sale of its broker-originated home equity loan portfolio held in the Key Home Equity Services division and the reclassification to held-for-sale status of its indirect automobile loan portfolio.

TE = Includes taxable-equivalent adjustment of $26 million in 4Q04 and $22 million in 3Q04.

     Taxable-equivalent net interest income rose to $708 million for the fourth quarter of 2004 from $680 million in the previous quarter. Key’s net interest margin improved 3 basis points to 3.64%, while average earning assets grew by $2.3 billion, due primarily to increases in all major components of the commercial loan portfolio. This growth was attributable in part to the acquisitions of EverTrust Bank and American Express Business Finance Corporation during the fourth quarter. Compared with the same period last year, taxable-equivalent net interest income grew by $15 million, as the positive effect of a 6% increase in average earning assets more than offset the effect of a lower net interest margin.

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 3

     Excluding the $46 million loss associated with the previously-mentioned decision to sell certain loan portfolios, Key’s noninterest income was $479 million for the fourth quarter of 2004, compared with $436 million for the third quarter. Stronger financial markets contributed to an $18 million increase in income from investment banking and capital markets activities, while income from trust and investment services grew by $8 million, reflecting an increase in brokerage activities. Noninterest income also benefited from increases of $14 million in letter of credit and loan fees and $8 million in income from corporate-owned life insurance. These positive results were offset in part by lower income from service charges on deposit accounts. Compared with the year-ago quarter, adjusted noninterest income grew by $13 million, due primarily to increases of $16 million in income from dealer trading and derivatives, and $13 million in letter of credit and loan fees. These improvements were partially offset by an $11 million decline in service charges on deposit accounts.

     Key’s adjusted noninterest expense of $729 million for the fourth quarter of 2004 was up from $690 million in the prior quarter. Personnel expense rose by $17 million, due primarily to an increase in incentive compensation accruals. Nonpersonnel expense increased by $22 million, reflecting higher costs associated with marketing, professional fees and a variety of other expense components. Compared with the fourth quarter of 2003, substantially all of the $31 million increase in adjusted noninterest expense was attributable to higher costs associated with personnel. Comparisons to results for the prior and year-ago quarters were also affected by a fourth quarter 2004 reclassification of $9 million of expense from “Franchise and business taxes” to “Income taxes.”

ASSET QUALITY

     Key’s provision for loan losses was a credit of $21 million for the fourth quarter of 2004, compared with expense of $51 million for the third quarter and $123 million for the year-ago quarter. The reduction from the prior quarter was due to two factors. The credit of $21 million resulted from the reversal of provision recorded in prior periods and was done in connection with management’s decision to sell Key’s indirect automobile loan portfolio. The amount reversed was equal to the remaining allowance allocated to this portfolio after it was marked to fair value and reclassified to held-for-sale status. In addition, as a result of continued improvement in asset quality, Key did not record any provision for loan losses during the fourth quarter of 2004. The following table summarizes the extent to which the above decision and other factors contributed to the change in certain asset quality indicators during the fourth quarter.

Selected Asset Quality Data

	Loans			Allowance for Loan Losses						Nonperforming
dollars in millions	Outstanding			Amount			% of Loans			Loans
Balance at September 30, 2004	$	64,981		$	1,251			1.93	%	$	390
Broker-originated home equity loan portfolio:
Sale of loan portfolio		(978	)		(17	)		N/M			(81	)
Net charge-offs recorded prior to sale		(3	)		(3	)		N/M			(3	)
Indirect automobile loan portfolio:
Reclassification to held-for-sale status		(84	)		(70	)		N/M			—
Net charge-offs recorded prior to reclassification		(15	)		(15	)		N/M			(15	)
Acquisition of American Express Business Finance		1,477			39			N/M			13
Acquisition of EverTrust Bank		690			9			N/M			—
Other activity (net)		2,396			(56	)		N/M			12
Balance at December 31, 2004	$	68,464		$	1,138			1.66	%	$	316

N/M = Not Meaningful

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 4

     Net loan charge-offs for the quarter totaled $140 million, or 0.83% of average loans, compared with $76 million, or 0.47%, for the previous quarter and $123 million, or 0.78%, for the same period last year. As shown in the following table, net loan charge-offs, excluding those recorded on the credit-only relationship consumer loan portfolios that Key is exiting, were $56 million, or 0.35% of adjusted average loans for the fourth quarter of 2004.

Net Loan Charge-offs

	Average Loans		Net Loan Charge-offs
dollars in millions	Outstanding		Amount		% of Loans
Fourth quarter 2004 results as reported	$	66,717	$	140		.83	%
Less: Broker-originated home equity loan portfolio		649		20		N/M
Indirect automobile loan portfolio		1,821		64		N/M
Continuing loan portfolioa	$	64,247	$	56		.35	%

(a) Excludes the above loan portfolios sold or moved to held-for-sale status during the fourth quarter in anticipation of their sale.

N/M = Not Meaningful

     During the fourth quarter of 2004, Key’s nonperforming loans decreased by $74 million to $316 million. As shown in the Selected Asset Quality Data table, this reduction was attributable primarily to the sale of our broker-originated home equity loan portfolio. Nonperforming loans represented 0.46% of loans outstanding at December 31, 2004, down from 0.60% at September 30, 2004, and 1.11% at December 31, 2003.

     Key’s allowance for loan losses stood at $1.138 billion, or 1.66% of loans outstanding at December 31, 2004, compared with $1.251 billion, or 1.93% at September 30, 2004, and $1.406 billion, or 2.24% at December 31, 2003. At December 31, 2004, the allowance for loan losses represented 360% of nonperforming loans, compared with 321% at September 30, 2004, and 203% a year ago.

CAPITAL

     Key’s capital ratios continued to exceed all “well-capitalized” regulatory benchmarks at December 31, 2004. Key’s tangible equity to tangible assets ratio was 6.35% at quarter end, compared with 6.57% at September 30, 2004, and 6.94% at December 31, 2003.

     Key’s capital position provides it with the flexibility to take advantage of future investment opportunities, to repurchase shares when appropriate and to pay dividends. During the fourth quarter of 2004, Key did not repurchase any of its common shares. At December 31, 2004, there were 29,461,248 shares remaining for repurchase under the current authorization. Share repurchases and other activities that caused the change in Key’s outstanding common shares over the past five quarters are summarized in the table below.

Summary of Changes in Common Shares Outstanding

in thousands	4Q04		3Q04			2Q04			1Q04			4Q03
Shares outstanding at beginning of period		405,723		407,243			412,153			416,494			419,266
Issuance of shares under employee benefit
and dividend reinvestment plans		1,847		980			1,128			3,659			1,228
Repurchase of common shares		—		(2,500	)		(6,038	)		(8,000	)		(4,000	)
Shares outstanding at end of period		407,570		405,723			407,243			412,153			416,494

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 5

LINE OF BUSINESS RESULTS

     The following table summarizes the contribution made by each major business group to Key’s taxable-equivalent revenue and net income 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 last three pages of this release.

Major Business Groups

										Percent change 4Q04 vs.
dollars in millions	4Q04			3Q04			4Q03			3Q04			4Q03
Revenue (taxable equivalent)
Consumer Banking	$	543		$	591		$	575			(8.1	)%		(5.6	)%
Corporate and Investment Banking		428			366			390			16.9			9.7
Investment Management Services		209			193			210			8.3			(.5	)
Other Segments		(2	)		(2	)		9			—			N/M
Total segments		1,178			1,148			1,184			2.6			(.5	)
Reconciling Items		(37	)		(32	)		(25	)		(15.6	)		(48.0	)
Total	$	1,141		$	1,116		$	1,159			2.2	%		(1.6	)%
Net income (loss)
Consumer Banking	$	47		$	118		$	97			(60.2	)%		(51.5	)%
Corporate and Investment Banking		162			113			100			43.4			62.0
Investment Management Services		30			27			27			11.1			11.1
Other Segments		7			3			12			133.3			(41.7	)
Total segments		246			261			236			(5.7	)		4.2
Reconciling Items		(33	)		(9	)		(2	)		(266.7	)		N/M
Total	$	213		$	252		$	234			(15.5	)%		(9.0	)%

N/M = Not Meaningful

Consumer Banking

										Percent change 4Q04 vs.
dollars in millions	4Q04			3Q04			4Q03			3Q04			4Q03
Summary of operations
Net interest income (TE)	$	459		$	452		$	452			1.5	%		1.5	%
Noninterest income		84			139			123			(39.6	)		(31.7	)
Total revenue (TE)		543			591			575			(8.1	)		(5.6	)
Provision for loan losses		9			51			68			(82.4	)		(86.8	)
Noninterest expense		427			351			352			21.7			21.3
Income before income taxes (TE)		107			189			155			(43.4	)		(31.0	)
Allocated income taxes and TE adjustments		60			71			58			(15.5	)		3.4
Net income	$	47		$	118		$	97			(60.2	)%		(51.5	)%
Percent of consolidated net income		22	%		47	%		41	%		N/A			N/A
Average balances
Loans	$	29,544		$	29,331		$	29,244			.7	%		1.0	%
Total assets		32,556			31,941			31,768			1.9			2.5
Deposits		36,190			35,574			35,008			1.7			3.4

TE = Taxable Equivalent, N/A = Not Applicable

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 6

Additional Consumer Banking Data										Percent change 4Q04 vs.
dollars in millions	4Q04			3Q04			4Q03			3Q04			4Q03
Average deposits outstanding
Noninterest-bearing	$	5,896		$	5,750		$	5,725			2.5	%		3.0	%
Money market deposit accounts and other savings		17,320			16,973			15,671			2.0			10.5
Time		12,974			12,851			13,612			1.0			(4.7	)
Total deposits	$	36,190		$	35,574		$	35,008			1.7	%		3.4	%
Home equity loans
Retail Banking and Small Business:
Average balance	$	9,003		$	8,810		$	8,340
Average loan-to-value ratio		72	%		72	%		72	%
Percent first lien positions		61			60			59
National Home Equity:
Average balance	$	4,153		$	4,502		$	5,193
Average loan-to-value ratio		67	%		71	%		74	%
Percent first lien positions		70			76			82
Other data
On-line households / household penetration		571,051/45	%		550,968/44	%		471,206/39	%
KeyCenters		935			921			906
Automated teller machines		2,194			2,187			2,167

     Net income for Consumer Banking was $47 million for the fourth quarter of 2004, compared with $97 million for the year-ago quarter. The reduction reflected the impact of the sale of the broker-originated home equity loan portfolio, and the reclassification of the indirect automobile loan portfolio to held-for-sale status. These actions resulted in significant decreases in noninterest income and the provision for loan losses, and a substantial increase in noninterest expense. Excluding the effects of the above actions, net income for Consumer Banking was $124 million for the fourth quarter of 2004.

     Noninterest income decreased by $39 million, or 32%, due to a $46 million loss recorded in connection with management’s decision to sell the loan portfolios mentioned above, and a decrease in service charges on deposit accounts. These adverse changes were offset in part by a decline in net losses from retained interests in previously securitized assets and associated trading activities, higher income from electronic banking activities and a decrease in net losses incurred on the residual values of leased vehicles.

     The provision for loan losses decreased by $59 million from the fourth quarter of 2003. The reduction was due largely to improved asset quality in the Consumer Finance and Small Business lines of business, but also reflected a $21 million reversal of provision that resulted from management’s decision to sell Key’s indirect automobile loan portfolio.

     Noninterest expense rose by $75 million, or 21%, due primarily to a $55 million write-off of goodwill recorded in connection with management’s decision to sell the nonprime indirect automobile loan business. Also contributing to the growth were increases in personnel expense and various indirect charges.

     In October 2004, we strengthened our market share position by completing the acquisition of EverTrust Bank, a state-chartered bank headquartered in Everett, Washington with assets of approximately $780 million and deposits of approximately $570 million at the date of acquisition.

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 7

Corporate and Investment Banking

										Percent change 4Q04 vs.
dollars in millions	4Q04			3Q04			4Q03			3Q04			4Q03
Summary of operations
Net interest income (TE)	$	259		$	235		$	243			10.2	%		6.6	%
Noninterest income		169			131			147			29.0			15.0
Total revenue (TE)		428			366			390			16.9			9.7
Provision for loan losses		(30	)		(1	)		49			N/M			N/M
Noninterest expense		199			187			182			6.4			9.3
Income before income taxes (TE)		259			180			159			43.9			62.9
Allocated income taxes and TE adjustments		97			67			59			44.8			64.4
Net income	$	162		$	113		$	100			43.4	%		62.0	%
Percent of consolidated net income		76	%		45	%		43	%		N/A			N/A
Average balances
Loans	$	31,194		$	29,078		$	27,418			7.3	%		13.8	%
Total assets		35,595			33,882			31,916			5.1			11.5
Deposits		5,618			5,146			4,780			9.2			17.5

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

Additional Corporate and Investment Banking Data

							Percent change 4Q04 vs.
dollars in millions	4Q04		3Q04		4Q03		3Q04			4Q03
Average lease financing receivables managed by
Key Equipment Financea
Receivables held in Key Equipment
Finance portfolio	$	7,449	$	6,739	$	6,153		10.5	%		21.1	%
Receivables assigned to other lines of business		2,081		2,069		2,019		.6			3.1
Total lease financing receivables managed	$	9,530	$	8,808	$	8,172		8.2	%		16.6	%

(a) Includes lease financing receivables held in portfolio and those assigned to other lines of business (primarily Corporate Banking) if those businesses are principally responsible for maintaining the relationship with the client.

     Net income for Corporate and Investment Banking was $162 million for the fourth quarter of 2004, up from $100 million for the same period last year. A significant reduction in the provision for loan losses and growth in both net interest income and noninterest income drove the improvement and more than offset an increase in noninterest expense.

     The provision for loan losses was a negative $30 million for the fourth quarter of 2004, compared with $49 million for the fourth quarter of 2003. The reduction was due largely to improved asset quality in the Corporate Banking and KeyBank Real Estate Capital lines of business.

     Taxable-equivalent net interest income increased by $16 million, or 7%, due to strong growth in average loans and deposits, and a more favorable interest rate spread on deposits and other funding sources.

     Noninterest income rose by $22 million, or 15%, due largely to increases in non-yield-related loan fees, and income from investment banking and capital markets activities.

     Noninterest expense increased by $17 million, or 9%, due primarily to an $8 million increase in personnel expense and increases in various indirect charges.

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 8

     All of Corporate and Investment Banking’s income statement components were affected in the fourth quarter by our December acquisition of American Express Business Finance Corporation, the equipment leasing unit of American Express’ small business division headquartered in Parsippany, New Jersey. American Express Business Finance provides capital for small and middle market businesses, mostly in the healthcare, information technology, office products, and commercial vehicle/construction industries, and has a leasing portfolio of approximately $1.5 billion. This acquisition added 75 offices to our network for small-ticket lease solutions.

Investment Management Services

										Percent change 4Q04 vs.
dollars in millions	4Q04			3Q04			4Q03			3Q04			4Q03
Summary of operations
Net interest income (TE)	$	63		$	60		$	61			5.0	%		3.3	%
Noninterest income		146			133			149			9.8			(2.0	)
Total revenue (TE)		209			193			210			8.3			(.5	)
Provision for loan losses		—			1			6			(100.0	)		(100.0	)
Noninterest expense		162			149			160			8.7			1.3
Income before income taxes (TE)		47			43			44			9.3			6.8
Allocated income taxes and TE adjustments		17			16			17			6.3			—
Net income	$	30		$	27		$	27			11.1	%		11.1	%
Percent of consolidated net income		14	%		11	%		12	%		N/A			N/A
Average balances
Loans	$	5,336		$	5,275		$	5,151			1.2	%		3.6	%
Total assets		6,649			6,631			6,157			.3			8.0
Deposits		7,911			7,114			6,779			11.2			16.7

TE = Taxable Equivalent, N/A = Not Applicable

Additional Investment Management Services Data

dollars in billions	4Q04		3Q04		4Q03
Assets under management	$	74.2	$	70.9	$	68.7
Nonmanaged and brokerage assets		72.7		67.6		66.4

     Net income for Investment Management Services was $30 million for the fourth quarter of 2004, up from $27 million for the fourth quarter of last year. The positive effects of an increase in net interest income and a reduction in the provision for loan losses more than offset a decline in noninterest income.

     Taxable-equivalent net interest income rose by $2 million, or 3%, due primarily to growth in average core deposits and higher loan volume.

     The provision for loan losses decreased by $6 million, reflecting improved asset quality in the McDonald Financial Group.

     Noninterest income decreased by $3 million, or 2%. Lower income from trust and investment services and a decrease in service charges on deposit accounts drove the decline.

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 9

Other Segments

     Other segments consist primarily of Corporate Treasury and Key’s Principal Investing unit. These segments generated net income of $7 million for the fourth quarter of 2004, compared with net income of $12 million for the same period last year. A decline in net gains from principal investing drove the decrease.

Line of Business Descriptions

Consumer Banking
Retail 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.

Small Businessprovides businesses that have annual sales revenues of $10 million or less with deposit, investment and credit products, and business advisory services.

Consumer Financeincludes Indirect Lending and National Home Equity.

Indirect Lending offers automobile and marine loans to consumers through dealers and finances inventory for automobile and marine dealers. This business unit also provides federal and private education loans to students and their parents and processes payments on loans from private schools to parents.

National Home Equity provides both prime and nonprime mortgage and home equity loan products to individuals. These products originate outside of Key’s retail branch system. This business unit also works with home improvement contractors to provide home equity and home improvement solutions.

Corporate and Investment Banking
Corporate Bankingprovides products and services to large corporations, middle-market companies, financial institutions and government organizations. These products and services include commercial lending, treasury management, investment banking, derivatives and foreign exchange, equity and debt underwriting and trading, and syndicated finance.

KeyBank Real Estate Capitalprovides construction and interim lending, permanent debt placements and servicing, and equity and investment banking services to developers, brokers and owner-investors. This line of business deals exclusively with nonowner-occupied properties (i.e., generally properties for which the owner occupies less than 60% of the premises).

Key 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 Corporate Banking) if those businesses are principally responsible for maintaining the relationship with the client.

Investment Management Services
Investment Management Servicesincludes Victory Capital Management and McDonald Financial Group.

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 10

Victory Capital Management manages or gives 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.

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

     Cleveland-based KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $91 billion. 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 935 KeyCenters and offices; a network of 2,194 ATMs; telephone banking centers (1.800.KEY2YOU); and a Web site, Key.com,^âthat 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 earnings and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section atwww.Key.com/irat 9:00 a.m. ET, on Friday, January 21, 2005. A tape of the call will be available through January 28.

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

This news release contains forward-looking statements about issues like anticipated earnings outlook, asset quality trends and anticipated improvement in profitability. Forward-looking statements by their nature are subject to assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such forward-looking statements for a variety of factors including: changes in interest rates; failure of the economy to continue to improve, which could materially impact credit quality trends and the ability to generate loans; declines or disruptions in the stock or bond markets; delay in or inability to execute strategic initiatives designed to grow revenues and/or manage expenses; inaccurate or erroneous assumptions made in connection with various modeling techniques; consummation of significant business combinations or divestitures; new legal obligations or restrictions or unfavorable resolution of litigation; disruption in the economy and the general business climate as a result of terrorist activities or military actions; and changes in accounting, tax or regulatory practices or requirements.

###

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 11

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

	Three months ended
	12-31-04			9-30-04			12-31-03
Summary of operations
Net interest income (TE)	$	708		$	680		$	693
Noninterest income		433			436			466
Total revenue (TE)		1,141			1,116			1,159
Provision for loan losses		(21	)		51			123
Noninterest expense		782			690			698
Net income		213			252			234
Per common share
Net income	$	.52		$	.62		$	.56
Net income — assuming dilution		.51			.61			.55
Cash dividends paid		.31			.31			.305
Book value at period end		17.46			17.12			16.73
Market price at period end		33.90			31.60			29.32
Performance ratios
Return on average total assets		.95	%		1.16	%		1.11	%
Return on average equity		11.99			14.62			13.37
Net interest margin (TE)		3.64			3.61			3.78
Capital ratios at period end
Equity to assets		7.84	%		7.85	%		8.25	%
Tangible equity to tangible assets		6.35			6.57			6.94
Tier 1 risk-based capital a		7.26			7.72			8.35
Total risk-based capitala		11.54			11.67			12.57
Leverage a		7.96			8.27			8.55
Asset quality
Net loan charge-offs	$	140		$	76		$	123
Net loan charge-offs to average loans		.83	%		.47	%		.78	%
Allowance for loan losses	$	1,138		$	1,251		$	1,406
Allowance for loan losses to period-end loans		1.66	%		1.93	%		2.24	%
Allowance for loan losses to nonperforming loans		360.13			320.77			202.59
Nonperforming loans at period end	$	316		$	390		$	694
Nonperforming assets at period end		379			460			753
Nonperforming loans to period-end loans		.46	%		.60	%		1.11	%
Nonperforming assets to period-end loans plus
OREO and other nonperforming assets		.55			.71			1.20
Other data
Average full-time equivalent employees		19,575			19,635			19,745
KeyCenters		935			921			906
Taxable-equivalent adjustment	$	26		$	22		$	22

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 12

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

	Twelve months ended
	12-31-04			12-31-03
Summary of operations
Net interest income (TE)	$	2,731		$	2,796
Noninterest income		1,746			1,760
Total revenue (TE)		4,477			4,556
Provision for loan losses		185			501
Noninterest expense		2,810			2,742
Net income		954			903
Per common share
Net income	$	2.32		$	2.13
Net income — assuming dilution		2.30			2.12
Cash dividends paid		1.24			1.22
Performance ratios
Return on average total assets		1.10	%		1.07	%
Return on average equity		13.75			13.08
Net interest margin (TE)		3.64			3.80
Asset quality
Net loan charge-offs	$	431		$	548
Net loan charge-offs to average loans		.67	%		.87	%
Other data
Average full-time equivalent employees		19,576			20,064
Taxable-equivalent adjustment	$	94		$	71

(a) 12-31-04 ratio is estimated.

TE = Taxable Equivalent

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 13

Consolidated Balance Sheets
(dollars in millions)

	12-31-04			9-30-04			12-31-03
Assets
Loans	$	68,464		$	64,981		$	62,711
Investment securities		71			78			98
Securities available for sale		7,451			7,182			7,638
Short-term investments		1,472			2,753			1,604
Other investments		1,421			1,341			1,092
Total earning assets		78,879			76,335			73,143
Allowance for loan losses		(1,138	)		(1,251	)		(1,406	)
Cash and due from banks		2,454			2,984			2,712
Premises and equipment		603			599			606
Goodwill		1,359			1,179			1,150
Other intangible assets		87			32			37
Corporate-owned life insurance		2,608			2,574			2,512
Accrued income and other assets		5,887			6,003			5,733
Total assets	$	90,739		$	88,455		$	84,487
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	21,748		$	21,165		$	18,947
Savings deposits		1,970			1,976			2,083
Certificates of deposit ($100,000 or more)		4,697			4,715			4,891
Other time deposits		10,435			10,212			11,008
Total interest-bearing		38,850			38,068			36,929
Noninterest-bearing		11,581			12,008			11,175
Deposits in foreign office — interest-bearing		7,411			5,767			2,754
Total deposits		57,842			55,843			50,858
Federal funds purchased and securities
sold under repurchase agreements		2,145			3,322			2,667
Bank notes and other short-term borrowings		2,515			2,853			2,947
Accrued expense and other liabilities		6,274			6,047			5,752
Long-term debt		14,846			13,444			15,294
Total liabilities		83,622			81,509			77,518
Shareholders’ equity
Preferred stock		—			—			—
Common shares		492			492			492
Capital surplus		1,491			1,477			1,448
Retained earnings		7,284			7,197			6,838
Treasury stock		(2,128	)		(2,172	)		(1,801	)
Accumulated other comprehensive loss		(22	)		(48	)		(8	)
Total shareholders’ equity		7,117			6,946			6,969
Total liabilities and shareholders’ equity	$	90,739		$	88,455		$	84,487
Common shares outstanding (000)		407,570			405,723			416,494

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 14

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

	Three months ended							Twelve months ended
	12-31-04			9-30-04		12-31-03		12-31-04		12-31-03
Interest income
Loans	$	913		$	847	$	856	$	3,409	$	3,550
Investment securities		1			2		2		5		7
Securities available for sale		81			84		82		331		356
Short-term investments		11			9		8		38		30
Other investments		9			10		8		35		27
Total interest income		1,015			952		956		3,818		3,970
Interest expense
Deposits		184			171		164		677		703
Federal funds purchased and securities sold
under repurchase agreements		23			17		9		60		50
Bank notes and other short-term borrowings		13			8		14		42		60
Long-term debt, including capital securities		113			98		98		402		432
Total interest expense		333			294		285		1,181		1,245
Net interest income		682			658		671		2,637		2,725
Provision for loan losses		(21	)		51		123		185		501
		703			607		548		2,452		2,224
Noninterest income
Trust and investment services income		143			135		146		564		545
Service charges on deposit accounts		77			84		88		331		364
Investment banking and capital markets income		70			52		52		233		194
Letter of credit and loan fees		56			42		43		175		142
Corporate-owned life insurance income		33			25		33		110		114
Net gains (losses) from loan securitizations and sales		(29	)		21		22		18		90
Electronic banking fees		23			22		19		85		80
Net securities gains (losses)		(3	)		—		2		4		11
Other income		63			55		61		226		220
Total noninterest income		433			436		466		1,746		1,760
Noninterest expense
Personnel		411			394		379		1,549		1,493
Net occupancy		60			57		57		236		228
Computer processing		50			49		47		191		178
Equipment		30			28		32		119		133
Marketing		32			26		32		111		120
Professional fees		32			27		32		113		119
Other expense		167			109		119		491		471
Total noninterest expense		782			690		698		2,810		2,742
Income before income taxes		354			353		316		1,388		1,242
Income taxes		141			101		82		434		339
Net income	$	213		$	252	$	234	$	954	$	903
Net income per common share	$	.52		$	.62	$	.56	$	2.32	$	2.13
Net income per common share — assuming dilution		.51			.61		.55		2.30		2.12
Weighted-average common shares outstanding (000)		408,243			407,187		420,043		410,585		422,776
Weighted-average common shares and potential common shares outstanding (000)		413,727			411,575		423,752		415,430		426,157

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 15

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

	Fourth Quarter 2004								Third Quarter 2004								Fourth Quarter 2003
	Average								Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate
Assets
Loans:a,b
Commercial, financial and agricultural	$	18,524		$	214		4.60	%	$	18,088		$	198		4.34	%	$	16,847		$	198		4.69	%
Real estate — commercial mortgage		7,361			99		5.38			6,448			81		4.99			5,812			76		5.21
Real estate — construction		5,291			74		5.53			4,825			62		5.15			5,138			68		5.22
Commercial lease financing		9,530			139		5.82			8,808			126		5.72			8,172			122		5.95
Total commercial loans		40,706			526		5.15			38,169			467		4.87			35,969			464		5.14
Real estate — residential		1,493			23		5.93			1,511			21		5.79			1,639			25		6.32
Home equity		14,696			219		5.94			14,844			212		5.67			14,999			209		5.54
Consumer — direct		2,007			38		7.62			2,059			38		7.35			2,138			38		7.12
Consumer — indirect lease financing		104			3		10.02			144			4		10.07			350			9		9.65
Consumer — indirect other		5,076			96		7.55			5,153			97		7.56			5,116			106		8.16
Total consumer loans		23,376			379		6.45			23,711			372		6.26			24,242			387		6.34
Loans held for sale		2,635			33		5.07			2,476			30		4.74			2,353			26		4.47
Total loans		66,717			938		5.60			64,356			869		5.38			62,564			877		5.58
Investment securitiesa		75			2		8.53			79			2		8.65			102			3		8.88
Securities available for salea, c		7,233			81		4.48			6,982			84		4.88			7,474			82		4.39
Short-term investments		2,100			11		2.00			2,527			9		1.50			1,855			8		1.73
Other investmentsc		1,417			9		2.56			1,328			10		2.98			1,118			8		2.70
Total earning assets		77,542			1,041		5.35			75,272			974		5.16			73,113			978		5.32
Allowance for loan losses		(1,251	)							(1,270	)							(1,398	)
Accrued income and other assets		12,950								12,522								12,285
Total assets	$	89,241							$	86,524							$	84,000
Liabilities
NOW and money market deposit accounts	$	21,591			46		.84		$	20,454			39		.77		$	18,760			31		.65
Savings deposits		1,951			1		.23			1,986			2		.22			2,069			2		.39
Certificates of deposit ($100,000 or more)d		4,871			44		3.66			4,852			44		3.60			4,886			45		3.77
Other time deposits		10,366			75		2.89			10,348			73		2.81			11,023			81		2.91
Deposits in foreign office		3,506			18		1.96			3,593			13		1.47			1,750			5		.96
Total interest-bearing deposits		42,285			184		1.73			41,233			171		1.65			38,488			164		1.69
Federal funds purchased and securities sold under repurchase agreements		5,085			23		1.81			5,032			17		1.35			3,953			9		.93
Bank notes and other short-term borrowings		2,793			13		1.79			2,614			8		1.33			2,698			14		1.92
Long-term debtd		14,119			113		3.36			13,415			98		3.01			15,214			98		2.64
Total interest-bearing liabilities		64,282			333		2.08			62,294			294		1.90			60,353			285		1.89
Noninterest-bearing deposits		11,804								11,285								10,904
Accrued expense and other liabilities		6,088								6,090								5,797
Total liabilities		82,174								79,669								77,054
Shareholders’ equity		7,067								6,855								6,946
Total liabilities and shareholders’ equity	$	89,241							$	86,524							$	84,000
Interest rate spread (TE)							3.27	%							3.26	%							3.43	%
Net interest income (TE) and net interest margin (TE)					708		3.64	%					680		3.61	%					693		3.78	%
TE adjustmenta					26								22								22
Net interest income, GAAP basis				$	682							$	658							$	671

(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)	Yield is calculated on the basis of amortized cost.
(d)	Rate calculation excludes basis adjustments related to fair value hedges.

TE = Taxable Equivalent

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 16

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

	Twelve months ended December 31, 2004								Twelve months ended December 31, 2003
	Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate
Assets
Loans:a,b
Commercial, financial and agricultural	$	17,763		$	791		4.45	%	$	17,161		$	824		4.80	%
Real estate — commercial mortgage		6,411			326		5.09			5,909			315		5.32
Real estate — construction		4,922			250		5.08			5,335			274		5.14
Commercial lease financing		8,902			519		5.83			7,961			482		6.05
Total commercial loans		37,998			1,886		4.96			36,366			1,895		5.21
Real estate — residential		1,540			93		6.01			1,762			115		6.50
Home equity		14,784			842		5.70			14,578			863		5.92
Consumer — direct		2,052			154		7.52			2,141			157		7.35
Consumer — indirect lease financing		178			18		9.86			545			52		9.51
Consumer — indirect other		5,188			393		7.58			5,040			423		8.38
Total consumer loans		23,742			1,500		6.32			24,066			1,610		6.69
Loans held for sale		2,510			114		4.55			2,447			112		4.60
Total loans		64,250			3,500		5.45			62,879			3,617		5.75
Investment securitiesa		85			8		8.69			112			11		9.03
Securities available for salea,c		7,215			331		4.60			7,865			356		4.55
Short-term investments		2,218			38		1.70			1,650			30		1.84
Other investmentsc		1,257			35		2.77			1,023			27		2.62
Total earning assets		75,025			3,912		5.21			73,529			4,041		5.49
Allowance for loan losses		(1,284	)							(1,410	)
Accrued income and other assets		12,668								12,229
Total assets	$	86,409							$	84,348
Liabilities
NOW and money market deposit accounts	$	20,175			147		.73		$	17,913			149		.83
Savings deposits		2,007			5		.23			2,072			10		.50
Certificates of deposit ($100,000 or more)d		4,834			178		3.71			4,796			186		3.93
Other time deposits		10,564			304		2.88			11,330			336		2.96
Deposits in foreign office		2,978			43		1.43			1,885			22		1.13
Total interest-bearing deposits		40,558			677		1.67			37,996			703		1.85
Federal funds purchased and securities sold under repurchase agreements		4,669			60		1.29			4,739			50		1.06
Bank notes and other short-term borrowings		2,631			42		1.59			2,612			60		2.29
Long-term debt, including capital securitiesd		14,304			402		2.93			16,049			432		2.79
Total interest-bearing liabilities		62,162			1,181		1.92			61,396			1,245		2.05
Noninterest-bearing deposits		11,192								10,347
Accrued expense and other liabilities		6,118								5,702
Total liabilities		79,472								77,445
Shareholders’ equity		6,937								6,903
Total liabilities and shareholders’ equity	$	86,409							$	84,348
Interest rate spread (TE)							3.29	%							3.44	%
Net interest income (TE) and net interest margin (TE)					2,731		3.64	%					2,796		3.80	%
TE adjustmenta					94								71
Net interest income, GAAP basis				$	2,637							$	2,725
Capital securities		—			—				$	629		$	36

(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)	Yield is calculated on the basis of amortized cost.
(d)	Rate calculation excludes basis adjustments related to fair value hedges.

TE = Taxable Equivalent

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 17

Noninterest Income
(in millions)

	Three months ended							Twelve months ended
	12-31-04			9-30-04		12-31-03		12-31-04		12-31-03
Trust and investment services incomea	$	143		$	135	$	146	$	564	$	545
Service charges on deposit accounts		77			84		88		331		364
Investment banking and capital markets incomea		70			52		52		233		194
Letter of credit and loan fees		56			42		43		175		142
Corporate-owned life insurance income		33			25		33		110		114
Net gains (losses) from loan securitizations and sales		(29	)		21		22		18		90
Electronic banking fees		23			22		19		85		80
Net securities gains (losses)		(3	)		—		2		4		11
Other income:
Insurance income		12			10		12		46		50
Loan securitization servicing fees		1			2		1		5		7
Credit card fees		4			3		3		13		11
Miscellaneous income		46			40		45		162		152
Total other income		63			55		61		226		220
Total noninterest income	$	433		$	436	$	466	$	1,746	$	1,760

(a) Additional detail provided in tables below.

Trust and Investment Services Income
(in millions)

	Three months ended						Twelve months ended
	12-31-04		9-30-04		12-31-03		12-31-04		12-31-03
Brokerage commissions and fee income	$	68	$	61	$	70	$	265	$	266
Personal asset management and custody fees		41		41		45		166		155
Institutional asset management and custody fees		9		9		9		37		39
All other fees		25		24		22		96		85
Total trust and investment services income	$	143	$	135	$	146	$	564	$	545

Investment Banking and Capital Markets Income
(in millions)

	Three months ended								Twelve months ended
	12-31-04		9-30-04			12-31-03			12-31-04		12-31-03
Investment banking income	$	41	$	36		$	40		$	133	$	110
Net gains from principal investing		5		10			8			44		40
Foreign exchange income		10		7			11			41		36
Income from other investments		5		1			—			6		—
Dealer trading and derivatives income (loss)		9		(2	)		(7	)		9		8
Total investment banking and capital markets income	$	70	$	52		$	52		$	233	$	194

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 18

Noninterest Expense
(dollars in millions)

	Three months ended							Twelve months ended
	12-31-04			9-30-04		12-31-03		12-31-04		12-31-03
Personnela	$	411		$	394	$	379	$	1,549	$	1,493
Net occupancy		60			57		57		236		228
Computer processing		50			49		47		191		178
Equipment		30			28		32		119		133
Marketing		32			26		32		111		120
Professional fees		32			27		32		113		119
Other expense:
Postage and delivery		13			13		14		52		57
Telecommunications		7			8		8		29		32
Franchise and business taxes		(1	)		9		10		16		45
OREO expense, net		3			3		6		17		16
Miscellaneous expense		145	b		76		81		377		321
Total other expense		167			109		119		491		471
Total noninterest expense	$	782		$	690	$	698	$	2,810	$	2,742
Average full-time equivalent employees		19,575			19,635		19,745		19,576		20,064

(a)	Additional detail provided in table below.
(b)	Includes goodwill write-off of $55 million as a result of management’s decision to sell Key’s nonprime indirect automobile loan portfolio.

Personnel Expense
(in millions)

	Three months ended						Twelve months ended
	12-31-04		9-30-04		12-31-03		12-31-04		12-31-03
Salaries	$	216	$	213	$	211	$	848	$	858
Incentive compensation		113		103		94		393		338
Employee benefits		65		63		57		258		255
Stock-based compensation		13		12		8		40		23
Severance		4		3		9		10		19
Total personnel expense	$	411	$	394	$	379	$	1,549	$	1,493

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 19

Loan Composition
(dollars in millions)

							Percent change 12-31-04 vs.
	12-31-04		9-30-04		12-31-03		9-30-04			12-31-03
Commercial, financial and agricultural	$	19,343	$	18,118	$	17,012		6.8	%		13.7	%
Commercial real estate:
Commercial mortgage		7,534		6,710		5,677		12.3			32.7
Construction		5,505		5,120		4,978		7.5			10.6
Total commercial real estate loans		13,039		11,830		10,655		10.2			22.4
Commercial lease financing		10,894		8,969		8,522		21.5			27.8
Total commercial loans		43,276		38,917		36,189		11.2			19.6
Real estate — residential mortgage		1,456		1,509		1,613		(3.5	)		(9.7	)
Home equity		14,062		14,950		15,038		(5.9	)		(6.5	)
Consumer — direct		1,987		2,017		2,119		(1.5	)		(6.2	)
Consumer — indirect:
Automobile lease financing		89		120		305		(25.8	)		(70.8	)
Automobile loans		—		1,862		2,025		(100.0	)		(100.0	)
Marine		2,624		2,648		2,506		(.9	)		4.7
Other		617		620		542		(.5	)		13.8
Total consumer — indirect loans		3,330		5,250		5,378		(36.6	)		(38.1	)
Total consumer loans		20,835		23,726		24,148		(12.2	)		(13.7	)
Loans held for sale:
Real estate — commercial mortgage		283		314		154		(9.9	)		83.8
Real estate — residential mortgage		26		24		18		8.3			44.4
Home equity		29		21		—		38.1			N/M
Education		2,278		1,979		2,202		15.1			3.5
Automobile		1,737		—		—		N/M			N/M
Total loans held for sale		4,353		2,338		2,374		86.2			83.4
Total loans	$	68,464	$	64,981	$	62,711		5.4	%		9.2	%

N/M = Not Meaningful

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 20

Summary of Loan Loss Experience
(dollars in millions)

	Three months ended									Twelve months ended
	12-31-04			9-30-04			12-31-03			12-31-04			12-31-03
Average loans outstanding during the period	$	66,717		$	64,356		$	62,564		$	64,250		$	62,879
Allowance for loan losses at beginning of period	$	1,251		$	1,276		$	1,405		$	1,406		$	1,452
Loans charged off:
Commercial, financial and agricultural		20			35			59			150			284
Real estate — commercial mortgage		9			6			3			33			39
Real estate — construction		—			—			2			5			7
Total commercial real estate loans		9			6			5			38			46
Commercial lease financing		18			9			15			52			60
Total commercial loans		47			50			79			240			390
Real estate — residential mortgage		2			6			5			14			10
Home equity		26			9			16			63			60
Consumer — direct		10			9			10			42			47
Consumer — indirect lease financing		2			1			3			8			15
Consumer — indirect other		86			38			37			216			156
Total consumer loans		126			63			71			343			288
		173			113			150			583			678
Recoveries:
Commercial, financial and agricultural		6			10			9			42			36
Real estate — commercial mortgage		4			1			1			7			11
Real estate — construction		—			—			—			4			3
Total commercial real estate loans		4			1			1			11			14
Commercial lease financing		4			3			2			14			13
Total commercial loans		14			14			12			67			63
Real estate — residential mortgage		—			—			—			1			1
Home equity		2			2			1			6			5
Consumer — direct		2			3			2			9			9
Consumer — indirect lease financing		—			1			1			3			6
Consumer — indirect other		15			17			11			66			46
Total consumer loans		19			23			15			85			67
		33			37			27			152			130
Net loans charged off		(140	)		(76	)		(123	)		(431	)		(548	)
Provision for loan losses		(21	)		51			123			185			501
Reclassification of allowance for credit losses on lending-related commitmentsa		—			—			—			(70	)		—
Allowance related to loans acquired		48			—			—			48			—
Foreign currency translation adjustment		—			—			1			—			1
Allowance for loan losses at end of period	$	1,138		$	1,251		$	1,406		$	1,138		$	1,406
Net loan charge-offs to average loans		.83	%		.47	%		.78	%		.67	%		.87	%
Allowance for loan losses to period-end loans		1.66			1.93			2.24			1.66			2.24
Allowance for loan losses to nonperforming loans		360.13			320.77			202.59			360.13			202.59

(a) Included in accrued expenses and other liabilities on the consolidated balance sheet.

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 21

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

	12-31-04			9-30-04			6-30-04			3-31-04			12-31-03
Commercial, financial and agricultural	$	43		$	61		$	114		$	191			$	252
Real estate — commercial mortgage		31			49			61			72				85
Real estate — construction		20			1			1			12				25
Total commercial real estate loans		51			50			62			84				110
Commercial lease financing		84			74			59			84				103
Total commercial loans		178			185			235			359				465
Real estate — residential mortgage		39			36			38			39				39
Home equity		80			149			151			161				153
Consumer — direct		3			4			13			10				14
Consumer — indirect lease financing		1			1			2			2				3
Consumer — indirect other		15			15			15			16				20
Total consumer loans		138			205			219			228				229
Total nonperforming loans		316			390			454			587				694
OREO		53			60			71			76				61
Allowance for OREO losses		(4	)		(5	)		(8	)		(5	)			(4	)
OREO, net of allowance		49			55			63			71				57
Other nonperforming assets		14			15			23			12				2
Total nonperforming assets	$	379		$	460		$	540		$	670			$	753
Accruing loans past due 90 days or more	$	122		$	139		$	114		$	127			$	152
Accruing loans past due 30 through 89 days		491			602			622			559				613
Nonperforming loans to period-end loans		.46	%		.60	%		.71	%		.94	%			1.11	%
Nonperforming assets to period-end loans plus OREO and other nonperforming assets		.55			.71			.84			1.07				1.20

Summary of Changes in Nonperforming Loans
(in millions)

	4Q04			3Q04			2Q04			1Q04			4Q03
Balance at beginning of period	$	390		$	454		$	587		$	694		$	795
Loans placed on nonaccrual status		95			94			68			145			111
Charge-offs		(91	)		(76	)		(104	)		(111	)		(123	)
Loans acquired (sold), net		(66	)		(35	)		(33	)		(58	)		(40	)
Payments		(11	)		(32	)		(62	)		(56	)		(46	)
Transfers to OREO		—			—			—			(11	)		—
Loans returned to accrual status		(1	)		(15	)		(2	)		(16	)		(3	)
Balance at end of period	$	316		$	390		$	454		$	587		$	694

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 22

Line of Business Results
(dollars in millions)

Consumer Banking

																Percent change 4Q04 vs.
	4Q04			3Q04			2Q04			1Q04			4Q03			3Q04			4Q03
Summary of operations
Total revenue (TE)	$	543		$	591		$	551		$	572		$	575			(8.1	)%		(5.6	)%
Provision for loan losses		9			51			46			59			68			(82.4	)		(86.8	)
Noninterest expense		427			351			345			336			352			21.7			21.3
Net income		47			118			99			111			97			(60.2	)		(51.5	)
Average loans		29,544			29,331			29,362			29,736			29,244			.7			1.0
Average deposits		36,190			35,574			35,025			34,742			35,008			1.7			3.4
Net loan charge-offs		117			52			61			71			68			125.0			72.1
Return on average allocated equity		8.73	%		23.18	%		19.60	%		21.55	%		18.65	%		N/A			N/A
Average full-time equivalent employees		8,114			8,227			8,130			8,129			8,129			(1.4	)		(.2	)
Supplementary information (lines of business)
Retail Banking
Total revenue (TE)	$	334		$	321		$	312		$	312		$	324			4.0	%		3.1	%
Provision for loan losses		14			15			10			15			14			(6.7	)		—
Noninterest expense		221			212			208			200			207			4.2			6.8
Net income		62			59			59			60			64			5.1			(3.1	)
Average loans		11,179			10,771			10,557			10,369			10,264			3.8			8.9
Average deposits		30,533			30,116			29,796			29,791			29,894			1.4			2.1
Net loan charge-offs		13			15			10			15			14			(13.3	)		(7.1	)
Return on average allocated equity		34.35	%		38.35	%		39.75	%		40.49	%		42.46	%		N/A			N/A
Average full-time equivalent employees		6,051			6,225			6,137			6,092			6,103			(2.8	)		(.9	)
Small Business
Total revenue (TE)	$	100		$	97		$	95		$	92		$	98			3.1	%		2.0	%
Provision for loan losses		7			12			12			13			16			(41.7	)		(56.3	)
Noninterest expense		58			55			52			51			52			5.5			11.5
Net income		22			18			20			17			19			22.2			15.8
Average loans		4,415			4,420			4,479			4,445			4,452			(.1	)		(.8	)
Average deposits		5,249			5,047			4,865			4,582			4,731			4.0			10.9
Net loan charge-offs		9			12			14			14			16			(25.0	)		(43.8	)
Return on average allocated equity		22.44	%		18.41	%		20.79	%		17.71	%		19.43	%		N/A			N/A
Average full-time equivalent employees		434			419			416			415			380			3.6			14.2
Consumer Finance
Total revenue (TE)	$	109		$	173		$	144		$	168		$	153			(37.0	)%		(28.8	)%
Provision for loan losses		(12	)		24			24			31			38			(150.0	)		(131.6	)
Noninterest expense		148			84			85			85			93			76.2			59.1
Net income (loss)		(37	)		41			20			34			14			(190.2	)		(364.3	)
Average loans		13,950			14,140			14,326			14,922			14,528			(1.3	)		(4.0	)
Average deposits		408			411			364			369			383			(.7	)		6.5
Net loan charge-offs		95			25			37			42			38			280.0			150.0
Return on average allocated equity		(14.24	)%		15.93	%		7.68	%		12.55	%		5.15	%		N/A			N/A
Average full-time equivalent employees		1,629			1,583			1,577			1,622			1,646			2.9			(1.0	)

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 23

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

Corporate and Investment Banking

																Percent change 4Q04 vs.
	4Q04			3Q04			2Q04			1Q04			4Q03			3Q04			4Q03
Summary of operations
Total revenue (TE)	$	428		$	366		$	364		$	354		$	390			16.9	%		9.7	%
Provision for loan losses		(30	)		(1	)		25			21			49			N/M			N/M
Noninterest expense		199			187			169			164			182			6.4			9.3
Net income		162			113			106			106			100			43.4			62.0
Average loans		31,194			29,078			27,854			27,221			27,418			7.3			13.8
Average deposits		5,618			5,146			4,958			4,756			4,780			9.2			17.5
Net loan charge-offs		22			23			40			39			49			(4.3	)		(55.1	)
Return on average allocated equity		21.08	%		15.05	%		14.30	%		14.22	%		13.13	%		N/A			N/A
Average full-time equivalent employees		2,667			2,487			2,434			2,412			2,429			7.2			9.8
Supplementary information (lines of business)
Corporate Banking
Total revenue (TE)	$	209		$	191		$	199		$	189		$	200			9.4	%		4.5	%
Provision for loan losses		(32	)		(7	)		25			15			37			N/M			N/M
Noninterest expense		121			110			102			104			113			10.0			7.1
Net income		75			55			45			44			32			36.4			134.4
Average loans		13,247			13,106			12,564			12,233			12,386			1.1			7.0
Average deposits		4,091			3,767			3,742			3,615			3,655			8.6			11.9
Net loan charge-offs		12			13			36			31			37			(7.7	)		(67.6	)
Return on average allocated equity		19.50	%		14.10	%		11.51	%		11.17	%		7.88	%		N/A			N/A
Average full-time equivalent employees		1,196			1,167			1,129			1,131			1,140			2.5			4.9
KeyBank Real Estate Capital
Total revenue (TE)	$	134		$	104		$	91		$	88		$	121			28.8	%		10.7	%
Provision for loan losses		(4	)		—			(4	)		1			4			N/M			N/M
Noninterest expense		50			45			42			37			43			11.1			16.3
Net income		55			37			33			31			46			48.6			19.6
Average loans		9,570			8,286			7,752			7,624			8,062			15.5			18.7
Average deposits		1,520			1,366			1,202			1,127			1,111			11.3			36.8
Net loan charge-offs (recoveries)		2			3			(1	)		2			4			(33.3	)		(50.0	)
Return on average allocated equity		21.60	%		15.84	%		14.55	%		13.48	%		19.44	%		N/A			N/A
Average full-time equivalent employees		702			678			673			668			674			3.5			4.2
Key Equipment Finance
Total revenue (TE)	$	85		$	71		$	74		$	77		$	69			19.7	%		23.2	%
Provision for loan losses		6			6			4			5			8			—			(25.0	)
Noninterest expense		28			32			25			23			26			(12.5	)		7.7
Net income		32			21			28			31			22			52.4			45.5
Average loans		8,377			7,686			7,538			7,364			6,970			9.0			20.2
Average deposits		7			13			14			14			14			(46.2	)		(50.0	)
Net loan charge-offs		8			7			5			6			8			14.3			—
Return on average allocated equity		24.77	%		16.51	%		22.66	%		25.45	%		18.53	%		N/A			N/A
Average full-time equivalent employees		769			642			632			613			615			19.8			25.0

KeyCorp Reports Fourth Quarter 2004 Earnings
January 21, 2005
Page 24

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

Investment Management Services

																Percent change 4Q04 vs.
	4Q04			3Q04			2Q04			1Q04			4Q03			3Q04			4Q03
Summary of operations
Total revenue (TE)	$	209		$	193		$	202		$	204		$	210			8.3	%		(.5	)%
Provision for loan losses		—			1			3			1			6			(100.0	)		(100.0	)
Noninterest expense		162			149			162			152			160			8.7			1.3
Net income		30			27			23			32			27			11.1			11.1
Average loans		5,336			5,275			5,226			5,140			5,151			1.2			3.6
Average deposits		7,911			7,114			7,188			6,908			6,779			11.2			16.7
Net loan charge-offs		1			1			3			1			6			—			(83.3	)
Return on average allocated equity		19.86	%		17.93	%		15.60	%		21.70	%		18.03	%		N/A			N/A
Average full-time equivalent employees		2,593			2,620			2,626			2,639			2,715			(1.0	)		(4.5	)

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