KeyCorp 8K Reports Third Quarter 2005 Earnings | KEY 18 Oct 05

KeyCorp (KEY) 8-KKeycorp Reports Third Quarter 2005 Earnings

Exhibit 99.1

FOR IMMEDIATE RELEASE

KEYCORP REPORTS THIRD QUARTER 2005 EARNINGS

•

Third quarter EPS of $0.67, up 10% from the year-ago quarter

•

Higher revenue

•

Average core deposits up 9% from the third quarter of 2004

•

Company enters into regulatory agreements

CLEVELAND, October 18, 2005 — KeyCorp (NYSE: KEY) today announced third quarter net income of $278 million, or $0.67 per diluted common share, compared with $252 million, or $0.61 per share, for the third quarter of 2004. For the second quarter of 2005, net income was $291 million, or $0.70 per diluted common share. For the first nine months of 2005, net income was $833 million, or $2.01 per diluted common share, compared with $741 million, or $1.78 per share, for the first nine months of 2004.

“Key’s third quarter performance reflects the company’s ability to produce solid financial results in a more challenging interest rate environment,” said Chairman and Chief Executive Officer Henry L. Meyer III. “Taxable-equivalent revenue, which increased $102 million from the year-ago period, benefited from growth in net interest income and a stronger performance from our fee-based businesses. The increase in net interest income was driven by a 7 basis point improvement in the net interest margin to 3.67%, higher earning assets resulting from solid commercial loan growth, and an increase in core deposits. The improvement in fee income was due primarily to increases in loan fees, and income from principal investing and capital markets activities.

“Both net loan charge-offs and nonperforming loans were down from the same period last year, but nonperforming loans increased relative to the second quarter of 2005. The increase was attributable to Key’s commercial passenger airline lease portfolio.”

The company expects earnings to be in the range of $0.65 to $0.69 per share for the fourth quarter of 2005.

Separately, the company said that it has entered into a memorandum of understanding with the Federal Reserve Bank of Cleveland (FRB), and KeyBank N.A. has entered into a consent order with the Comptroller of the Currency (OCC) concerning compliance-related matters, particularly the Bank Secrecy Act. The company said it does not expect these actions to have a material effect on its operating results, adding that neither the OCC nor the FRB imposed a fine or civil money penalty in the matter. As part of the consent order and memorandum of

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 2

understanding, Key has agreed to continue to strengthen its anti-money laundering and other compliance controls.

“Key takes its regulatory obligations with the utmost seriousness,” said Meyer, “and we are taking all necessary measures to meet the requirements of the consent order and memorandum of understanding.”

SUMMARY OF CONSOLIDATED RESULTS

Taxable-equivalent net interest income increased to $726 million for the third quarter of 2005 from $673 million for the same period last year. Average earning assets rose by 6%, due primarily to commercial loan growth, while the net interest margin increased 7 basis points to 3.67%. Compared with the second quarter of 2005, taxable-equivalent net interest income grew by $3 million. This growth was attributable to a $740 million increase in average earning assets, which more than offset the effect of a 4 basis point decline in the net interest margin. During the second quarter of 2005, Key’s net interest margin benefited from a principal investing distribution of $15 million received in the form of dividends and interest. This distribution added approximately 8 basis points to the second quarter margin.

Key’s noninterest income was $531 million for the third quarter of 2005, compared with $482 million for the year-ago quarter. Increases of $34 million in income from principal investing and capital markets activities, and $8 million from letter of credit and loan fees drove the improvement.

Compared with the second quarter of 2005, noninterest income grew by $45 million. The improvement reflected a $41 million increase in income from principal investing and capital markets activities. In addition, service charges on deposit accounts rose by $6 million from the prior quarter.

Key’s noninterest expense was $781 million for the third quarter of 2005, compared with $729 million for the same period last year. Personnel expense rose by $20 million and nonpersonnel expense increased by $32 million, reflecting higher costs associated with net occupancy, computer processing and a variety of other expense components.

Compared with the second quarter of 2005, noninterest expense rose by $28 million. Personnel expense accounted for virtually all of the increase, with the largest increases occurring in incentive and stock-based compensation. Nonpersonnel expense was essentially unchanged. Higher costs associated with net occupancy and computer processing were offset by reductions in both marketing and miscellaneous expense. During the second quarter, miscellaneous expense included an $11 million charge to establish a reserve to absorb potential noncredit-related losses from Key’s education lending business.

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 3

ASSET QUALITY

Key’s provision for loan losses was $43 million for the third quarter of 2005, compared with $51 million for the year-ago quarter and $20 million for the second quarter of 2005.

Net loan charge-offs for the quarter totaled $49 million, or 0.30% of average loans, compared with $76 million, or 0.49%, for the same period last year and $48 million, or 0.30%, for the previous quarter.

At September 30, 2005, Key’s nonperforming loans stood at $360 million and represented 0.55% of period-end loans, compared with 0.63% at September 30, 2004, and 0.45% at June 30, 2005. The increase in the third quarter from June 30, 2005, was attributable to several carriers within the commercial passenger airline industry for which Key has provided lease financing.

Key’s allowance for loan losses stood at $1.093 billion, or 1.67% of loans outstanding at September 30, 2005, compared with $1.251 billion, or 2.02% at September 30, 2004, and $1.100 billion, or 1.70% at June 30, 2005. At September 30, 2005, the allowance for loan losses represented 304% of nonperforming loans, compared with 322% a year ago and 377% at June 30, 2005.

CAPITAL

Key’s capital ratios continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2005. Key’s tangible equity to tangible assets ratio was 6.68% at quarter end, compared with 6.57% at September 30, 2004, and 6.60% at June 30, 2005. The ratio is currently within management’s targeted range of 6.25% to 6.75%.

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 third quarter of 2005, Key repurchased 1,250,000 of its common shares. At September 30, 2005, there were 25,711,248 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	3Q05			2Q05		1Q05			4Q04		3Q04

Shares outstanding at beginning of period		408,231			407,297		407,570			405,723		407,243
Issuance of shares under employee benefit and dividend reinvestment plans		1,561			934		2,227			1,847		980
Repurchase of common shares		(1,250	)		—		(2,500	)		—		(2,500	)

Shares outstanding at end of period		408,542			408,231		407,297			407,570		405,723

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 4

LINE OF BUSINESS RESULTS

The following table shows 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 two pages of this release.

Major Business Groups


										Percent change 3Q05 vs.
dollars in millions	3Q05			2Q05			3Q04			2Q05			3Q04

Revenue (taxable equivalent)
Consumer Banking	$	716		$	706		$	722			1.4	%		(.8	)%
Corporate and Investment Banking		542			523			456			3.6			18.9
Other Segments		24			8			(2	)		200.0			N/M

Total segments		1,282			1,237			1,176			3.6			9.0
Reconciling Items		(25	)		(28	)		(21	)		10.7			(19.0	)

Total	$	1,257		$	1,209		$	1,155			4.0	%		8.8	%


Net income (loss)											`
Consumer Banking	$	123		$	122		$	125			.8	%		(1.6	)%
Corporate and Investment Banking		147			157			124			(6.4	)		18.5
Other Segments		21			10			4			110.0			425.0

Total segments		291			289			253			.7			15.0
Reconciling Items		(13	)		2			(1	)		N/M			N/M

Total	$	278		$	291		$	252			(4.5	)%		10.3	%

N/M = Not Meaningful

Consumer Banking


										Percent change 3Q05 vs.
dollars in millions	3Q05			2Q05			3Q04			2Q05			3Q04

Summary of operations
Net interest income (TE)	$	483		$	474		$	492			1.9	%		(1.8	)%
Noninterest income		233			232			230			.4			1.3

Total revenue (TE)		716			706			722			1.4			(.8	)
Provision for loan losses		29			22			52			31.8			(44.2	)
Noninterest expense		490			490			470			—			4.3

Income before income taxes (TE)		197			194			200			1.5			(1.5	)
Allocated income taxes and TE adjustments		74			72			75			2.8			(1.3	)

Net income	$	123		$	122		$	125			.8	%		(1.6	)%


Percent of consolidated net income		44	%		42	%		50	%		N/A			N/A

Average balances
Loans	$	29,139		$	29,303		$	31,754			(.6	)%		(8.2	)%
Total assets		35,473			35,390			37,270			.2			(4.8	)
Deposits		42,359			41,567			40,034			1.9			5.8

TE = Taxable Equivalent, N/A = Not Applicable

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 5

Additional Consumer Banking Data


										Percent change 3Q05 vs.
*dollars in millions*	3Q05			2Q05			3Q04			2Q05			3Q04

Average deposits outstanding
Noninterest-bearing	$	7,122		$	6,816		$	6,544			4.5	%		8.8	%
Money market deposit accounts and other savings		20,785			20,323			19,766			2.3			5.2
Time		14,452			14,428			13,724			.2			5.3

Total deposits	$	42,359		$	41,567		$	40,034			1.9	%		5.8	%


Home equity loans
Community Banking:
Average balance	$	10,365		$	10,397		$	10,326
Average loan-to-value ratio		71	%		71	%		72	%
Percent first lien positions		61			61			60
National Home Equity:
Average balance	$	3,515		$	3,498		$	4,502
Average loan-to-value ratio		65	%		65	%		71	%
Percent first lien positions		66			67			76

Other data
On-line households / household penetration		607,127 / 49	%		595,411 / 47	%		550,968 / 44	%
KeyCenters		946			945			921
Automated teller machines		2,185			2,205			2,187

Net income for Consumer Banking was $123 million for the third quarter of 2005, compared with $125 million for the year-ago quarter. A decrease in net interest income and an increase in noninterest expense caused the decline and more than offset growth in noninterest income and a significant reduction in the provision for loan losses.

Taxable-equivalent net interest income decreased by $9 million, or 2%, from the third quarter of 2004, due to a less favorable interest rate spread on average earning assets and a reduction in loans which resulted from the sale of the higher-yielding broker-originated home equity and indirect automobile loan portfolios within the Consumer Finance line of business. The adverse effects of these factors were moderated by growth in average deposits.

Noninterest expense increased by $20 million, or 4%, due primarily to higher costs associated with marketing, loan servicing, recording and filing fees, and various indirect charges. The rise in these costs was partially offset by a decrease in fees for professional services.

Noninterest income rose by $3 million, or 1%, due largely to increases in securitization servicing, insurance and electronic banking fees. These increases were offset in part by a decrease in net gains from loan securitizations and sales, and a decline in service charges on deposit accounts.

The provision for loan losses decreased by $23 million, or 44%, as a result of improved asset quality.

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 6

Corporate and Investment Banking


										Percent change 3Q05 vs.
dollars in millions	3Q05			2Q05			3Q04			2Q05			3Q04

Summary of operations
Net interest income (TE)	$	297		$	292		$	236			1.7	%		25.8	%
Noninterest income		245			231			220			6.1			11.4

Total revenue (TE)		542			523			456			3.6			18.9
Provision for loan losses		14			(2	)		(1	)		N/M			N/M
Noninterest expense		293			274			259			6.9			13.1

Income before income taxes (TE)		235			251			198			(6.4	)		18.7
Allocated income taxes and TE adjustments		88			94			74			(6.4	)		18.9

Net income	$	147		$	157		$	124			(6.4)	%		18.5	%


Percent of consolidated net income		53	%		54	%		49	%		N/A			N/A

Average balances
Loans	$	35,064		$	34,577		$	28,827			1.4	%		21.6	%
Total assets		41,398			40,662			35,194			1.8			17.6
Deposits		10,136			9,691			7,800			4.6			29.9

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

Additional Corporate and Investment Banking Data


							Percent change 3Q05 vs.
dollars in millions	3Q05		2Q05		3Q04		2Q05			3Q04

Average lease financing receivables managed by
Key Equipment Finance^a
Receivables held in Key Equipment
Finance portfolio	$	8,150	$	7,950	$	6,301		2.5	%		29.3	%
Receivables assigned to other lines of business		2,011		2,034		1,881		(1.1	)		6.9

Total lease financing receivables managed	$	10,161	$	9,984	$	8,182		1.8	%		24.2	%

(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 $147 million for the third quarter of 2005, up from $124 million for the same period last year. Increases in both net interest income and noninterest income drove the improvement. These positive changes were offset, in part, by an increase in noninterest expense. In addition, Corporate and Investment Banking’s provision for loan losses was an expense in the third quarter of 2005, compared with a credit in the year-ago quarter.

Taxable-equivalent net interest income increased by $61 million, or 26%, from the third quarter of 2004, due primarily to strong growth in average loans and leases, as well as deposits. Average loans and leases rose by $6.2 billion, or 22%, reflecting improvements in each of the primary lines of business. The increase in lease financing receivables in the Key Equipment Finance line was bolstered by the acquisition of American Express Business Finance Corporation (“AEBF”) during the fourth quarter of 2004.

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 7

Noninterest income rose by $25 million, or 11%, due largely to increases in non-yield-related loan fees and income from capital markets activities.

Noninterest expense rose by $34 million, or 13%, as business expansion, including the acquisition of AEBF, and improved profitability led to increases in personnel and various other expense categories.

The provision for loan losses was an expense of $14 million for the third quarter of 2005, compared with a credit of $1 million for the year-ago quarter.

On July 1, 2005, we expanded our FHA financing and servicing capabilities by acquiring Malone Mortgage Company, based in Dallas, Texas. This is one in a series of acquisitions that we have made over the past several years to build upon our success in commercial mortgage origination and servicing.

Other Segments

Other segments consist primarily of Corporate Treasury and Key’s Principal Investing unit. These segments generated net income of $21 million for the third quarter of 2005, compared with $4 million for the same period last year. Increases in net gains from principal investing and net interest income drove the improvement.

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 8

Line of Business Descriptions

Consumer Banking
Community Bankingincludes Retail Banking, Small Business and McDonald Financial Group.

Retail Banking provides 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 Business provides businesses that typically have annual sales revenues of $10 million or less with deposit, investment and credit products, and business advisory services.

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.

Consumer Financeincludes Indirect Lending and National Home Equity.

Indirect Lending offers 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 that private schools make 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.

Through its Victory Capital Management unit, Corporate Banking also 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.

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.

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 9

Cleveland-based KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $92 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 946 KeyCenters and offices; a network of 2,185 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 Tuesday October 18, 2005. A tape of the call will be available through October 25.

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 such as anticipated earnings outlook, asset quality trends and anticipated improvement in the profitability of KeyCorp. 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: (1) changes in interest rates; (2) failure of the economy to continue to improve, which could materially impact credit quality trends and our ability to generate loans; (3) increased competitive pressure among financial services companies; (4) inability to successfully execute strategic initiatives designed to grow revenues and/or manage expenses; (5) consummation of significant business combinations or divestitures; (6) operational or risk management failures due to technological or other factors; (7) new legal obligations or restrictions or unfavorable resolution of litigation; (8) disruption in the economy and general business climate as a result of terrorist activities or military actions; and (9) changes in accounting, tax or regulatory practices or requirements. For further information regarding KeyCorp, please read the KeyCorp reports filed with the SEC that are available at www.sec.gov.

###

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 10

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


	Three months ended
	9-30-05			6-30-05			9-30-04
Summary of operations
Net interest income (TE)	$	726		$	723		$	673
Noninterest income		531			486			482

Total revenue (TE)		1,257			1,209			1,155
Provision for loan losses		43			20			51
Noninterest expense		781			753			729
Net income		278			291			252

Per common share
Net income	$	.68		$	.71		$	.62
Net income — assuming dilution		.67			.70			.61
Cash dividends paid		.325			.325			.31
Book value at period end		18.41			18.01			17.12
Market price at period end		32.25			33.15			31.60

Performance ratios
Return on average total assets		1.22	%		1.30	%		1.16	%
Return on average equity		14.84			16.15			14.62
Net interest margin (TE)		3.67			3.71			3.60

Capital ratios at period end
Equity to assets		8.15	%		8.08	%		7.85
Tangible equity to tangible assets		6.68			6.60			6.57
Tier 1 risk-based capital^a		7.75			7.68			7.72
Total risk-based capital^a		11.86			11.72			11.67
Leverage^a		8.60			8.49			8.27

Asset quality
Net loan charge-offs	$	49		$	48		$	76
Net loan charge-offs to average loans		.30	%		.30	%		.49
Allowance for loan losses	$	1,093		$	1,100		$	1,251
Allowance for loan losses to period-end loans		1.67	%		1.70	%		2.02
Allowance for loan losses to nonperforming loans		303.61			376.71			321.59
Nonperforming loans at period end	$	360		$	292		$	389
Nonperforming assets at period end		393			338			460
Nonperforming loans to period-end loans		.55	%		.45	%		.63	%
Nonperforming assets to period-end loans plus OREO and other nonperforming assets		.60			.52			.74

Trust and brokerage assets
Assets under management	$	76,341		$	76,807		$	71,233
Nonmanaged and brokerage assets		57,313			57,006			67,596

Other data
Average full-time equivalent employees		19,456			19,429			19,635
KeyCenters		946			945			921

Taxable-equivalent adjustment	$	33		$	30		$	22

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 11

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


	Nine months ended
	9-30-05			9-30-04
Summary of operations
Net interest income (TE)	$	2,163		$	2,001
Noninterest income		1,517			1,450

Total revenue (TE)		3,680			3,451
Provision for loan losses		107			206
Noninterest expense		2,303			2,143
Net income		833			741

Per common share
Net income	$	2.04		$	1.80
Net income — assuming dilution		2.01			1.78
Cash dividends paid		.975			.93

Performance ratios
Return on average total assets		1.23	%		1.16	%
Return on average equity		15.36			14.36
Net interest margin (TE)		3.68			3.63

Asset quality
Net loan charge-offs	$	151		$	291
Net loan charge-offs to average loans		.32	%		.64	%

Other data
Average full-time equivalent employees		19,508			19,577

Taxable-equivalent adjustment	$	91		$	68

(a) 9-30-05 ratio is estimated.
TE = Taxable Equivalent

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 12

Consolidated Balance Sheets
(dollars in millions)


	9-30-05			6-30-05			9-30-04
Assets
Loans	$	65,575		$	64,690		$	61,968
Loans held for sale		3,595			3,274			2,338
Investment securities		98			59			78
Securities available for sale		7,124			7,271			7,182
Short-term investments		2,394			1,845			2,753
Other investments		1,310			1,409			1,341

Total earning assets		80,096			78,548			75,660
Allowance for loan losses		(1,093	)		(1,100	)		(1,251	)
Cash and due from banks		2,660			2,968			2,984
Premises and equipment		593			576			599
Goodwill		1,344			1,342			1,179
Other intangible assets		109			101			32
Corporate-owned life insurance		2,658			2,639			2,574
Accrued income and other assets		5,956			5,941			6,686

Total assets	$	92,323		$	91,015		$	88,463


Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	23,541		$	22,071		$	21,165
Savings deposits		1,922			2,022			1,976
Certificates of deposit ($100,000 or more)		4,783			5,094			4,715
Other time deposits		10,804			10,794			10,212

Total interest-bearing		41,050			39,981			38,068
Noninterest-bearing		12,202			12,158			12,008
Deposits in foreign office — interest-bearing		4,819			5,924			5,767

Total deposits		58,071			58,063			55,843
Federal funds purchased and securities sold under repurchase agreements		3,444			2,824			3,322
Bank notes and other short-term borrowings		3,001			3,315			2,853
Accrued expense and other liabilities		6,248			5,873			6,055
Long-term debt		14,037			13,588			13,444

Total liabilities		84,801			83,663			81,517

Shareholders’ equity
Preferred stock		—			—			—
Common shares		492			492			492
Capital surplus		1,517			1,504			1,477
Retained earnings		7,719			7,574			7,197
Treasury stock		(2,133	)		(2,132	)		(2,172	)
Accumulated other comprehensive loss		(73	)		(86	)		(48	)

Total shareholders’ equity		7,522			7,352			6,946


Total liabilities and shareholders’ equity	$	92,323		$	91,015		$	88,463


Common shares outstanding (000)		408,542			408,231			405,723

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 13

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


	Three months ended						Nine months ended
	9-30-05		6-30-05		9-30-04		9-30-05			9-30-04
Interest income
Loans	$	1,006	$	946	$	810	$	2,837		$	2,393
Loans held for sale		56		53		30		190			81
Investment securities		1		1		2		3			4
Securities available for sale		84		80		84		244			250
Short-term investments		15		12		9		37			27
Other investments		12		24		10		44			26

Total interest income		1,174		1,116		945		3,355			2,781

Interest expense
Deposits		273		238		171		717			493
Federal funds purchased and securities sold under repurchase agreements		31		25		17		81			37
Bank notes and other short-term borrowings		22		19		8		58			29
Long-term debt		155		141		98		427			289

Total interest expense		481		423		294		1,283			848


Net interest income		693		693		651		2,072			1,933
Provision for loan losses		43		20		51		107			206

		650		673		600		1,965			1,727

Noninterest income
Trust and investment services income		135		135		135		408			421
Service charges on deposit accounts		82		76		84		228			254
Investment banking and capital markets income		93		52		59		212			178
Letter of credit and loan fees		46		47		38		133			108
Corporate-owned life insurance income		26		24		25		78			77
Electronic banking fees		24		24		22		70			62
Net gains from loan securitizations and sales		12		10		19		41			45
Net securities gains (losses)		3		1		—		(2	)		7
Other income		110		117		100		349			298

Total noninterest income		531		486		482		1,517			1,450

Noninterest expense
Personnel		414		386		394		1,190			1,138
Net occupancy		66		55		57		212			176
Computer processing		54		50		49		155			141
Equipment		28		28		28		84			89
Professional fees		29		30		27		87			81
Marketing		29		34		26		88			79
Other expense		161		170		148		487			439

Total noninterest expense		781		753		729		2,303			2,143


Income before income taxes		400		406		353		1,179			1,034
Income taxes		122		115		101		346			293

Net income	$	278	$	291	$	252	$	833		$	741


Net income per common share	$	.68	$	.71	$	.62	$	2.04		$	1.80
Net income per common share — assuming dilution		.67		.70		.61		2.01			1.78

Weighted-average common shares outstanding (000)		410,456		408,754		407,187		409,166			411,371
Weighted-average common shares and potential common shares outstanding (000)		415,441		414,309		411,575		414,510			416,002

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 14

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


	Third Quarter 2005								Second Quarter 2005								Third Quarter 2004
	Average								Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate
Assets
Loans:^a,b
Commercial, financial and agricultural	$	19,249		$	280		5.78	%	$	19,477		$	258		5.31	%	$	17,453		$	191		4.34	%
Real estate — commercial mortgage		8,467			136		6.42			8,373			129		6.13			7,061			88		4.94
Real estate — construction		6,388			110		6.81			6,117			98		6.45			4,831			62		5.14
Commercial lease financing		10,161			158		6.19			9,984			158		6.33			8,182			119		5.77

Total commercial loans		44,265			684		6.15			43,951			643		5.86			37,527			460		4.87
Real estate — residential		1,472			23		6.13			1,477			21		6.04			1,531			21		5.80
Home equity		13,888			236		6.72			13,904			225		6.49			14,844			212		5.67
Consumer — direct		1,794			40		8.96			1,831			36		7.93			2,055			38		7.35
Consumer — indirect lease financing		36			1		11.05			53			1		10.76			144			4		10.07
Consumer — indirect other		3,303			55		6.62			3,275			50		6.07			5,153			97		7.56

Total consumer loans		20,493			355		6.86			20,540			333		6.53			23,727			372		6.26

Total loans		64,758			1,039		6.37			64,491			976		6.07			61,254			832		5.41
Loans held for sale		3,521			56		6.43			3,169			53		6.61			2,476			30		4.74
Investment securities^a		76			1		7.00			65			1		8.42			79			2		8.65
Securities available for sale^c		7,131			84		4.65			7,081			80		4.54			6,982			84		4.88
Short-term investments		1,972			15		3.15			1,799			12		2.58			2,527			9		1.50
Other investments^c		1,342			12		3.25			1,455			24		6.42			1,328			10		2.98

Total earning assets		78,800			1,207		6.08			78,060			1,146		5.88			74,646			967		5.16
Allowance for loan losses		(1,095	)							(1,124	)							(1,270	)
Accrued income and other assets		12,918								12,979								13,156

Total assets	$	90,623							$	89,915							$	86,532


Liabilities
NOW and money market deposit accounts	$	22,886			101		1.75		$	22,301			77		1.39		$	20,454			39		.77
Savings deposits		1,952			2		.29			1,999			1		.26			1,986			2		.22
Certificates of deposit ($100,000 or more)^d		4,928			48		3.85			4,999			46		3.70			4,852			44		3.60
Other time deposits		10,805			87		3.21			10,806			82		3.05			10,348			73		2.81
Deposits in foreign office		4,048			35		3.46			4,314			32		2.96			3,593			13		1.47

Total interest-bearing deposits		44,619			273		2.43			44,419			238		2.16			41,233			171		1.65
Federal funds purchased and securities sold under repurchase agreements		3,674			31		3.28			3,830			25		2.67			5,032			17		1.35
Bank notes and other short-term borrowings		2,841			22		3.04			2,792			19		2.72			2,614			8		1.33
Long-term debt^d		13,814			155		4.50			13,929			141		4.11			13,415			98		3.01

Total interest-bearing liabilities		64,948			481		2.94			64,970			423		2.62			62,294			294		1.90

Noninterest-bearing deposits		12,215								11,717								11,285
Accrued expense and other liabilities		6,027								6,000								6,098

Total liabilities		83,190								82,687								79,677

Shareholders’ equity		7,433								7,228								6,855


Total liabilities and shareholders’ equity	$	90,623							$	89,915							$	86,532


Interest rate spread (TE)							3.14	%							3.26	%							3.26	%

Net interest income (TE) and net interest margin (TE)					726		3.67	%					723		3.71	%					673		3.60	%

TE adjustment^a					33								30								22

Net interest income, GAAP basis				$	693							$	693							$	651


(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 Third Quarter 2005 Earnings
October 18, 2005
Page 15

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


	Nine months ended September 30, 2005								Nine months ended September 30, 2004
	Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate
Assets
Loans:^a,b
Commercial, financial and agricultural	$	19,307		$	768		5.32	%	$	16,857		$	556		4.40	%
Real estate — commercial mortgage		8,344			380		6.09			6,717			247		4.90
Real estate — construction		6,050			289		6.38			4,803			176		4.91
Commercial lease financing		10,067			474		6.28			8,082			358		5.90

Total commercial loans		43,768			1,911		5.83			36,459			1,337		4.89
Real estate — residential		1,471			67		6.06			1,581			71		6.03
Home equity		13,926			674		6.47			14,813			623		5.61
Consumer — direct		1,850			114		8.25			2,063			116		7.49
Consumer — indirect lease financing		55			4		10.62			202			15		9.82
Consumer — indirect other		3,276			157		6.37			5,226			297		7.58

Total consumer loans		20,578			1,016		6.59			23,885			1,122		6.27

Total loans		64,346			2,927		6.08			60,344			2,459		5.44
Loans held for sale		3,654			190		6.96			2,468			81		4.37
Investment securities^a		70			4		8.00			88			6		8.73
Securities available for sale^c		7,146			244		4.54			7,209			250		4.65
Short-term investments		1,818			37		2.74			2,258			27		1.60
Other investments^c		1,406			44		4.00			1,203			26		2.86

Total earning assets		78,440			3,446		5.86			73,570			2,849		5.17
Allowance for loan losses		(1,117	)							(1,295	)
Accrued income and other assets		13,175								13,192

Total assets	$	90,498							$	85,467


Liabilities
NOW and money market deposit accounts	$	22,274			233		1.40		$	19,699			101		.69
Savings deposits		1,969			4		.26			2,026			4		.23
Certificates of deposit ($100,000 or more)^d		4,941			138		3.74			4,821			134		3.72
Other time deposits		10,734			245		3.06			10,631			229		2.88
Deposits in foreign office		4,438			97		2.93			2,801			25		1.21

Total interest-bearing deposits		44,356			717		2.16			39,978			493		1.65
Federal funds purchased and securities sold under repurchase agreements		3,990			81		2.70			4,529			37		1.09
Bank notes and other short-term borrowings		2,860			58		2.71			2,577			29		1.52
Long-term debt^d		14,172			427		4.12			14,366			289		2.79

Total interest-bearing liabilities		65,378			1,283		2.64			61,450			848		1.86

Noninterest-bearing deposits		11,825								10,986
Accrued expense and other liabilities		6,042								6,138

Total liabilities		83,245								78,574

Shareholders’ equity		7,253								6,893


Total liabilities and shareholders’ equity	$	90,498							$	85,467


Interest rate spread (TE)							3.22	%							3.31	%

Net interest income (TE) and net interest margin (TE)					2,163		3.68	%					2,001		3.63	%

TE adjustment^a					91								68

Net interest income, GAAP basis				$	2,072							$	1,933


(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 Third Quarter 2005 Earnings
October 18, 2005
Page 16

Noninterest Income
(in millions)


	Three months ended						Nine months ended
	9-30-05		6-30-05		9-30-04		9-30-05			9-30-04
Trust and investment services income^a	$	135	$	135	$	135	$	408		$	421
Service charges on deposit accounts		82		76		84		228			254
Investment banking and capital markets income^a		93		52		59		212			178
Letter of credit and loan fees		46		47		38		133			108
Corporate-owned life insurance income		26		24		25		78			77
Electronic banking fees		24		24		22		70			62
Net gains from loan securitizations and sales		12		10		19		41			45
Net securities gains (losses)		3		1		—		(2	)		7
Other income:
Operating lease income		47		48		46		141			137
Insurance income		16		10		11		37			36
Loan securitization servicing fees		5		5		2		15			4
Credit card fees		4		5		3		12			9
Miscellaneous income		38		49		38		144			112

Total other income		110		117		100		349			298

Total noninterest income	$	531	$	486	$	482	$	1,517		$	1,450


(a)		Additional detail provided in tables below.

Trust and Investment Services Income
(in millions)


	Three months ended						Nine months ended
	9-30-05		6-30-05		9-30-04		9-30-05		9-30-04
Brokerage commissions and fee income	$	61	$	62	$	61	$	186	$	197
Personal asset management and custody fees		39		38		38		115		117
Institutional asset management and custody fees		35		35		36		107		107

Total trust and investment services income	$	135	$	135	$	135	$	408	$	421

Investment Banking and Capital Markets Income
(in millions)


	Three months ended							Nine months ended
	9-30-05		6-30-05		9-30-04			9-30-05		9-30-04
Investment banking income	$	21	$	19	$	32		$	57	$	83
Net gains from principal investing		31		1		10			44		39
Foreign exchange income		11		9		7			29		31
Dealer trading and derivatives income (loss)		16		10		(2	)		45		—
Income from other investments		14		13		12			37		25

Total investment banking and capital markets income	$	93	$	52	$	59		$	212	$	178

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 17

Noninterest Expense
(dollars in millions)


	Three months ended						Nine months ended
	9-30-05		6-30-05		9-30-04		9-30-05			9-30-04
Personnel^a	$	414	$	386	$	394	$	1,190		$	1,138
Net occupancy		66		55		57		212			176
Computer processing		54		50		49		155			141
Equipment		28		28		28		84			89
Professional fees		29		30		27		87			81
Marketing		29		34		26		88			79
Other expense:
Operating lease expense		40		40		39		118			115
Postage and delivery		12		12		13		37			39
Telecommunications		8		8		8		23			22
Franchise and business taxes		8		9		9		25			17
OREO expense, net		2		2		3		6			14
Provision for losses on lending-related commitments		2		2		2		(7	)		(5	)
Miscellaneous expense		89		97		74		285			237

Total other expense		161		170		148		487			439

Total noninterest expense	$	781	$	753	$	729	$	2,303		$	2,143


Average full-time equivalent employees		19,456		19,429		19,635		19,508			19,577


(a)		Additional detail provided in table below.

Personnel Expense
(in millions)


	Three months ended						Nine months ended
	9-30-05		6-30-05		9-30-04		9-30-05		9-30-04
Salaries	$	222	$	218	$	213	$	658	$	632
Incentive compensation		104		92		103		276		280
Employee benefits		67		65		63		207		193
Stock-based compensation		17		9		12		37		27
Severance		4		2		3		12		6

Total personnel expense	$	414	$	386	$	394	$	1,190	$	1,138

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 18

Loan Composition
(dollars in millions)


							Percent change 9-30-05 vs.
	9-30-05		6-30-05		9-30-04		6-30-05			9-30-04
Commercial, financial and agricultural	$	19,451	$	19,331	$	17,492		.6	%		11.2	%
Commercial real estate:
Commercial mortgage		8,618		8,507		7,315		1.3			17.8
Construction		6,700		6,236		5,126		7.4			30.7

Total commercial real estate loans		15,318		14,743		12,441		3.9			23.1
Commercial lease financing		10,339		10,113		8,294		2.2			24.7

Total commercial loans		45,108		44,187		38,227		2.1			18.0
Real estate — residential mortgage		1,476		1,466		1,528		.7			(3.4	)
Home equity		13,872		13,921		14,950		(.4	)		(7.2	)
Consumer — direct		1,792		1,793		2,013		(.1	)		(11.0	)
Consumer — indirect:
Automobile lease financing		28		43		120		(34.9	)		(76.7	)
Automobile loans		—		—		1,862		—			(100.0	)
Marine		2,676		2,665		2,648		.4			1.1
Other		623		615		620		1.3			.5

Total consumer — indirect loans		3,327		3,323		5,250		.1			(36.6	)

Total consumer loans		20,467		20,503		23,741		(.2	)		(13.8	)

Total loans	$	65,575	$	64,690	$	61,968		1.4	%		5.8	%

Loans Held for Sale Composition
(dollars in millions)


							Percent change 9-30-05 vs.
	9-30-05		6-30-05		9-30-04		6-30-05			9-30-04
Real estate — commercial mortgage	$	416	$	519	$	314		(19.8	)%		32.5	%
Real estate — residential mortgage		21		23		24		(8.7	)		(12.5	)
Real estate — construction		5		—		—		N/M			N/M
Home equity		1		1		21		—			(95.2	)
Education		3,123		2,586		1,979		20.8			57.8
Automobile		29		145		—		(80.0	)		N/M

Total loans held for sale	$	3,595	$	3,274	$	2,338		9.8	%		53.8	%

N/M = Not Meaningful

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 19

Summary of Loan Loss Experience
(dollars in millions)


	Three months ended									Nine months ended
	9-30-05			6-30-05			9-30-04			9-30-05			9-30-04
Average loans outstanding during the period	$	64,758		$	64,491		$	61,254		$	64,346		$	60,344

Allowance for loan losses at beginning of period	$	1,100		$	1,128		$	1,276		$	1,138		$	1,406
Loans charged off:
Commercial, financial and agricultural		14			19			33			58			125

Real estate — commercial mortgage		4			9			8			16			26
Real estate — construction		—			—			—			5			5

Total commercial real estate loans		4			9			8			21			31
Commercial lease financing		18			13			9			43			34

Total commercial loans		36			41			50			122			190
Real estate — residential mortgage		1			2			6			5			15
Home equity		7			7			9			20			37
Consumer — direct		10			10			9			28			32
Consumer — indirect lease financing		1			1			1			3			6
Consumer — indirect other		14			14			38			44			130

Total consumer loans		33			34			63			100			220

		69			75			113			222			410
Recoveries:
Commercial, financial and agricultural		4			5			10			14			35

Real estate — commercial mortgage		1			—			1			2			4
Real estate — construction		—			2			—			2			4

Total commercial real estate loans		1			2			1			4			8
Commercial lease financing		7			10			3			27			10

Total commercial loans		12			17			14			45			53
Real estate — residential mortgage		—			1			—			1			1
Home equity		1			2			2			4			4
Consumer — direct		2			2			3			6			7
Consumer — indirect lease financing		1			—			1			2			3
Consumer — indirect other		4			5			17			13			51

Total consumer loans		8			10			23			26			66

		20			27			37			71			119

Net loans charged off		(49	)		(48	)		(76	)		(151	)		(291	)
Provision for loan losses		43			20			51			107			206
Foreign currency translation adjustment		(1	)		—			—			(1	)		—
Reclassification of allowance for credit losses on lending-related commitments^a		—			—			—			—			(70	)

Allowance for loan losses at end of period	$	1,093		$	1,100		$	1,251		$	1,093		$	1,251

Net loan charge-offs to average loans		.30	%		.30	%		.49	%		.32	%		.64	%
Allowance for loan losses to period-end loans		1.67			1.70			2.02			1.67			2.02
Allowance for loan losses to nonperforming loans		303.61			376.71			321.59			303.61			321.59


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

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 20

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


	Three months ended						Nine months ended
	9-30-05		6-30-05		9-30-04		9-30-05			9-30-04
Balance at beginning of period	$	57	$	55	$	63	$	66			—
Reclassification of allowance for credit losses		—		—		—		—		$	70
Provision for losses on lending-related commitments		2		2		2		(7	)		(5	)

Balance at end of period^a	$	59	$	57	$	65	$	59		$	65


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

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


	9-30-05			6-30-05			3-31-05			12-31-04			9-30-04
Commercial, financial and agricultural	$	50		$	58		$	46		$	37		$	55

Real estate — commercial mortgage		33			36			41			37			55
Real estate — construction		3			3			5			20			1

Total commercial real estate loans		36			39			46			57			56
Commercial lease financing		151			73			75			84			74

Total commercial loans		237			170			167			178			185
Real estate — residential mortgage		40			38			43			39			36
Home equity		75			74			76			80			149
Consumer — direct		3			4			3			3			4
Consumer — indirect lease financing		1			1			5			1			1
Consumer — indirect other		4			5			5			7			14

Total consumer loans		123			122			132			130			204

Total nonperforming loans		360			292			299			308			389

Nonperforming loans held for sale		2			1			6			8			1

OREO		29			33			58			53			60
Allowance for OREO losses		(3	)		(2	)		(4	)		(4	)		(5	)

OREO, net of allowance		26			31			54			49			55

Other nonperforming assets		5			14			12			14			15

Total nonperforming assets	$	393		$	338		$	371		$	379		$	460


Accruing loans past due 90 days or more	$	94		$	74		$	79		$	122		$	139
Accruing loans past due 30 through 89 days		550			475			495			491			602
Nonperforming loans to period-end loans		.55	%		.45	%		.47	%		.49	%		.63	%
Nonperforming assets to period-end loans plus OREO and other nonperforming assets		.60			.52			.58			.60			.74

Summary of Changes in Nonperforming Loans
(in millions)


	3Q05			2Q05			1Q05			4Q04			3Q04
Balance at beginning of period	$	292		$	299		$	308		$	389		$	428
Loans placed on nonaccrual status		126			58			71			88			119
Charge-offs		(49	)		(48	)		(54	)		(91	)		(76	)
Loans sold, net		(3	)		—			(5	)		(66	)		(35	)
Payments		(5	)		(13	)		(9	)		(11	)		(32	)
Transfers to OREO		—			(4	)		(12	)		—			—
Loans returned to accrual status		(1	)		—			—			(1	)		(15	)

Balance at end of period	$	360		$	292		$	299		$	308		$	389

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 21

Line of Business Results
(dollars in millions)

Consumer Banking


																Percent change 3Q05 vs.
	3Q05			2Q05			1Q05			4Q04			3Q04			2Q05			3Q04
Summary of operations
Total revenue (TE)	$	716		$	706		$	727		$	690		$	722			1.4	%		(.8	)%
Provision for loan losses		29			22			48			9			52			31.8			(44.2	)
Noninterest expense		490			490			476			554			470			—			4.3
Net income		123			122			127			59			125			.8			(1.6	)
Average loans		29,139			29,303			29,397			31,886			31,754			(.6	)		(8.2	)
Average deposits		42,359			41,567			41,063			40,925			40,034			1.9			5.8
Net loan charge-offs		37			32			39			118			53			15.6			(30.2	)
Return on average allocated equity		20.30	%		20.23	%		20.62	%		9.13	%		20.29	%		N/A			N/A
Average full-time equivalent employees		9,963			10,026			10,194			10,392			10,508			(.6	)		(5.2	)

Supplementary information (lines of business)
Community Banking
Total revenue (TE)	$	567		$	555		$	544		$	572		$	541			2.2	%		4.8	%
Provision for loan losses		22			18			20			21			27			22.2			(18.5	)
Noninterest expense		407			388			386			404			384			4.9			6.0
Net income		86			94			86			92			81			(8.5	)		6.2
Average loans		19,781			19,773			19,919			20,094			19,665			—			.6
Average deposits		41,670			40,920			40,475			40,365			39,485			1.8			5.5
Net loan charge-offs		24			21			25			23			28			14.3			(14.3	)
Return on average allocated equity		22.26	%		24.69	%		22.80	%		23.87	%		22.66	%		N/A			N/A
Average full-time equivalent employees		8,546			8,448			8,548			8,728			8,895			1.2			(3.9	)

Consumer Finance
Total revenue (TE)	$	149		$	151		$	183		$	118		$	181			(1.3	)%		(17.7	)%
Provision for loan losses		7			4			28			(12	)		25			75.0			(72.0	)
Noninterest expense		83			102			90			150			86			(18.6	)		(3.5	)
Net income		37			28			41			(33	)		44			32.1			(15.9	)
Average loans		9,358			9,530			9,478			11,792			12,089			(1.8	)		(22.6	)
Average deposits		689			647			588			560			549			6.5			25.5
Net loan charge-offs		13			11			14			95			25			18.2			(48.0	)
Return on average allocated equity		16.85	%		12.59	%		17.18	%		(12.66	)%		17.01	%		N/A			N/A
Average full-time equivalent employees		1,417			1,578			1,646			1,664			1,613			(10.2	)		(12.2	)

KeyCorp Reports Third Quarter 2005 Earnings
October 18, 2005
Page 22

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

Corporate and Investment Banking


																Percent change 3Q05 vs.
	3Q05			2Q05			1Q05			4Q04			3Q04			2Q05			3Q04
Summary of operations
Total revenue (TE)	$	542		$	523		$	489		$	516		$	456			3.6	%		18.9	%
Provision for loan losses		14			(2	)		(4	)		(30	)		(1	)		N/M			N/M
Noninterest expense		293			274			255			266			259			6.9			13.1
Net income		147			157			149			175			124			(6.4	)		18.5
Average loans		35,064			34,577			33,846			30,852			28,827			1.4			21.6
Average deposits		10,136			9,691			8,781			8,793			7,800			4.6			29.9
Net loan charge-offs		12			16			15			22			23			(25.0	)		(47.8	)
Return on average allocated equity		17.01	%		18.56	%		17.76	%		22.26	%		16.07	%		N/A			N/A
Average full-time equivalent employees		3,336			3,269			3,316			3,028			2,875			2.0			16.0

Supplementary information (lines of business)
Corporate Banking
Total revenue (TE)	$	270		$	259		$	259		$	274		$	255			4.2	%		5.9	%
Provision for loan losses		9			(6	)		(5	)		(32	)		(7	)		N/M			N/M
Noninterest expense		157			144			136			159			149			9.0			5.4
Net income		65			75			80			92			71			(13.3	)		(8.5	)
Average loans		14,666			15,089			15,101			13,877			13,705			(2.8	)		7.0
Average deposits		8,022			7,952			7,256			7,266			6,421			.9			24.9
Net loan charge-offs		1			11			10			12			13			(90.9	)		(92.3	)
Return on average allocated equity		15.42	%		17.80	%		19.04	%		21.37	%		16.36	%		N/A			N/A
Average full-time equivalent employees		1,558			1,532			1,541			1,558			1,555			1.7			.2

KeyBank Real Estate Capital
Total revenue (TE)	$	149		$	138		$	104		$	132		$	103			8.0	%		44.7	%
Provision for loan losses		2			(7	)		5			(4	)		—			N/M			N/M
Noninterest expense		64			55			46			49			45			16.4			42.2
Net income		52			57			33			54			36			(8.8	)		44.4
Average loans		11,265			10,596			9,794			9,109			7,874			6.3			43.1
Average deposits		2,100			1,728			1,514			1,520			1,366			21.5			53.7
Net loan charge-offs		—			3			4			2			3			(100.0	)		(100.0	)
Return on average allocated equity		20.71	%		24.19	%		14.16	%		24.00	%		17.23	%		N/A			N/A
Average full-time equivalent employees		812			774			758			702			678			4.9			19.8

Key Equipment Finance
Total revenue (TE)	$	123		$	126		$	126		$	110		$	98			(2.4	)%		25.5	%
Provision for loan losses		3			11			(4	)		6			6			(72.7	)		(50.0	)
Noninterest expense		72			75			73			58			65			(4.0	)		10.8
Net income		30			25			36			29			17			20.0			76.5
Average loans		9,133			8,892			8,951			7,866			7,248			2.7			26.0
Average deposits		14			11			11			7			13			27.3			7.7
Net loan charge-offs		11			2			1			8			7			450.0			57.1
Return on average allocated equity		15.66	%		13.23	%		19.36	%		22.19	%		13.21	%		N/A			N/A
Average full-time equivalent employees		966			963			1,017			768			642			.3			50.5

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

Analyst Contact:

Vernon L. Patterson

Media Contact:

Michael J. Monroe

216.689.0520

216.689.3509

Investor Relations

Key Media

Information:

www.Key.com/ir

Newsroom:

www.Key.com/newsroom