KeyCorp (KEY) 8-K Keycorp Reports Second Quarter 2006 Earnings

Exhibit 99.1

Analyst Contact:	Vernon L. Patterson 216.689.0520	Media Contact:	William C. Murschel 216.689.0457
Investor Relations Information:	www.Key.com/ir	Key Media Newsroom:	www.Key.com/newsroom

FOR IMMEDIATE RELEASE

KEYCORP REPORTS SECOND QUARTER 2006 EARNINGS

• Second quarter EPS of $0.75, up 7% from the year-ago quarter

• Higher revenue

• Solid growth in commercial loans and core deposits

• Nonperforming loans and net loan charge-offs down

CLEVELAND, July 18, 2006 – KeyCorp today announced second quarter net income of $308 million, or $0.75 per diluted common share, compared to $291 million, or $0.70 per share, for the second quarter of 2005. For the first quarter of 2006, net income was $289 million, or $0.70 per diluted common share. Return on average equity was 16.11% for the second quarter of 2006, compared to 16.15% for the same period last year and 15.48% for the first quarter of 2006.

     For the first six months of 2006, net income was $597 million, or $1.45 per diluted common share, compared to $555 million, or $1.34 per share, for the first six months of 2005. Return on average equity was 15.80%, compared to 15.63% for the first half of 2005.

     “Key’s improved performance in the second quarter was driven by revenue growth and solid asset quality,” said Chairman and Chief Executive Officer Henry L. Meyer III. “Relative to last year’s second quarter, Key’s taxable-equivalent revenue rose by $90 million. This increase was due largely to solid commercial loan growth, higher income from our fee-based businesses and growth in core deposits, which increased 10% from the second quarter of 2005. The growth in fee income was broad-based and included increases in trust and investment services income, investment banking fees, income from operating leases, and net gains from both principal investing and the initial public offering by MasterCard.

     “With regard to asset quality, both nonperforming loans and net loan charge-offs were down from both the prior and year-ago quarters. For the second quarter of 2006, net loan charge-offs represented 0.21% of Key’s average total loans.”

     The company expects earnings to be in the range of $0.70 to $0.74 per share for the third quarter of 2006 and $2.85 to $2.95 per share for the full year.

SUMMARY OF CONSOLIDATED RESULTS

     Taxable-equivalent net interest income increased to $752 million for the second quarter of 2006 from $723 million for the same period last year. The positive effect of a 4% increase in average earning assets, due primarily to commercial loan growth, more than offset the effect of a 2 basis point decline in the net interest margin to 3.69%. During the second quarter of 2005, the net interest margin benefited from a principal investing distribution of $15 million received in the

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form of dividends and interest. This distribution added approximately 8 basis points to the net interest margin for the year-ago quarter.

     Compared to the first quarter of 2006, taxable-equivalent net interest income decreased by $4 million. This reduction was attributable to an 8 basis point decline in the net interest margin, offset in part by a slight increase in average earning assets.

     Key’s noninterest income was $547 million for the second quarter of 2006, compared to $486 million for the year-ago quarter. The increase reflected net gains of $23 million from principal investing in the current year, compared to net losses of $1 million one year ago, and a $9 million gain recorded in miscellaneous income that resulted from the share redemption by MasterCard Incorporated as part of its initial public offering in May 2006. Also contributing to the improved performance were increases in income from trust and investment services, investment banking activities, insurance products and operating leases.

     Compared to the first quarter of 2006, noninterest income grew by $66 million, due to a $26 million increase in principal investing results and broad-based improvement in fee income resulting from increased business activities. Key’s noninterest income for the second quarter of 2006 included the $9 million gain associated with the MasterCard initial public offering, and results for the prior quarter included a $25 million gain recorded in investment banking and capital markets revenue that resulted from the initial public offering completed by the New York Stock Exchange in March.

     Key’s noninterest expense was $816 million for the second quarter of 2006, compared to $753 million for the same period last year. Personnel expense rose by $45 million, due to additional costs incurred in connection with business expansion, an increase in employee benefits expense and higher incentive compensation accruals. Nonpersonnel expense increased by $18 million. This increase included a $10 million rise in professional fees, due largely to additional expenses associated with Key’s efforts to strengthen its compliance controls.

     Compared to the first quarter of 2006, noninterest expense increased by $46 million. Personnel expense rose by $26 million, due primarily to higher incentive compensation accruals. Nonpersonnel expense grew by $20 million, reflecting increases in marketing expense and professional fees.

ASSET QUALITY

     Key’s provision for loan losses was $24 million for the second quarter of 2006, compared to $20 million for the year-ago quarter and $39 million for the first quarter of 2006.

     Net loan charge-offs for the quarter totaled $34 million, or 0.21% of average loans, compared to $48 million, or 0.30%, for the same period last year and $39 million, or 0.23%, for the previous quarter.

     At June 30, 2006, Key’s nonperforming loans totaled $279 million and represented 0.41% of period-end loans, compared to 0.45% at June 30, 2005, and 0.44% at March 31, 2006.

     Key’s allowance for loan losses stood at $956 million, or 1.42% of loans outstanding at June 30, 2006, compared to $1.100 billion, or 1.70%, at June 30, 2005, and $966 million, or 1.44%, at March 31, 2006. At June 30, 2006, the allowance for loan losses represented 343% of nonperforming loans, compared to 377% a year ago and 327% at March 31, 2006.

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CAPITAL

     Key’s capital ratios continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2006. Key’s tangible equity to tangible assets ratio was 6.68% at quarter end, compared to 6.60% at June 30, 2005, and 6.71% at March 31, 2006. 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 second quarter of 2006, Key repurchased 4,000,000 of its common shares. At June 30, 2006, there were 12,461,248 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	2Q06			1Q06			4Q05			3Q05			2Q05
Shares outstanding at beginning of period		405,273			406,624			408,542			408,231			407,297
Issuance of shares under employee benefit and dividend reinvestment plans		1,399			4,649			1,332			1,561			934
Repurchase of common shares		(4,000	)		(6,000	)		(3,250	)		(1,250	)		—
Shares outstanding at end of period		402,672			405,273			406,624			408,542			408,231

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 2Q06 vs.
dollars in millions	2Q06			1Q06			2Q05			1Q06			2Q05
Revenue (taxable equivalent)
Community Banking	$	662		$	642		$	645			3.1	%		2.6	%
National Banking		631			624			585			1.1			7.9
Other Segments		23			(6	)		9			N/M			155.6
Total segments		1,316			1,260			1,239			4.4			6.2
Reconciling Items		(17	)		(23	)		(30	)		26.1			43.3
Total	$	1,299		$	1,237		$	1,209			5.0	%		7.4	%
Net income
Community Banking	$	105		$	109		$	118			(3.7	)%		(11.0	)%
National Banking		175			175			160			—			9.4
Other Segments		20			1			10			N/M			100.0
Total segments		300			285			288			5.3			4.2
Reconciling Items		8			4			3			100.0			166.7
Total	$	308		$	289		$	291			6.6	%		5.8	%

N/M = Not Meaningful

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Community Banking

										Percent change 2Q06 vs.
dollars in millions	2Q06			1Q06			2Q05			1Q06			2Q05
Summary of operations
Net interest income (TE)	$	436		$	430		$	420			1.4	%		3.8	%
Noninterest income		226			212			225			6.6			.4
Total revenue (TE)		662			642			645			3.1			2.6
Provision for loan losses		19			29			18			(34.5	)		5.6
Noninterest expense		475			438			438			8.4			8.4
Income before income taxes (TE)		168			175			189			(4.0	)		(11.1	)
Allocated income taxes and TE adjustments		63			66			71			(4.5	)		(11.3	)
Net income	$	105		$	109		$	118			(3.7	)%		(11.0	)%
Percent of consolidated net income		34	%		38	%		41	%		N/A			N/A
Average balances
Loans and leases	$	26,804		$	26,739		$	27,038			.2	%		(.9	)%
Total assets		29,758			29,656			29,902			.3			(.5	)
Deposits		46,683			45,835			43,719			1.9			6.8

TE = Taxable Equivalent, N/A = Not Applicable

Additional Community Banking Data

										Percent change 2Q06 vs.
dollars in millions	2Q06			1Q06			2Q05			1Q06			2Q05
Average deposits outstanding
Noninterest-bearing	$	8,086		$	8,105		$	8,092			(.2	)%		(.1	)%
Money market deposit accounts and other savings		22,523			21,978			20,932			2.5			7.6
Time		16,074			15,752			14,695			2.0			9.4
Total deposits	$	46,683		$	45,835		$	43,719			1.9	%		6.8	%
Home equity loans
Average balance	$	10,107		$	10,151		$	10,398
Average loan-to-value ratio		70	%		70	%		71	%
Percent first lien positions		60			61			61
Other data
On-line households / household penetration		639,444/52	%		631,523/51	%		595,411/47	%
KeyCenters		946			945			945
Automated teller machines		2,120			2,169			2,205

     Net income for Community Banking was $105 million for the second quarter of 2006, down from $118 million for the year-ago quarter. An increase in noninterest expense drove the decline and more than offset growth in net interest income. Noninterest income and the provision for loan losses were essentially unchanged.

     Noninterest expense grew by $37 million, or 8%, from the second quarter of 2005, due primarily to a rise in personnel expense and increases in various indirect charges.

     Taxable-equivalent net interest income increased by $16 million, or 4%, due to growth in average core deposits, which also experienced a more favorable interest rate spread. The positive effect of these factors was offset in part by a tighter interest rate spread on average earning assets.

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National Banking

										Percent change 2Q06 vs.
dollars in millions	2Q06			1Q06			2Q05			1Q06			2Q05
Summary of operations
Net interest income (TE)	$	372		$	378		$	346			(1.6	)%		7.5	%
Noninterest income		259			246			239			5.3			8.4
Total revenue (TE)		631			624			585			1.1			7.9
Provision for loan losses		5			10			2			(50.0	)		150.0
Noninterest expense		346			334			327			3.6			5.8
Income before income taxes (TE)		280			280			256			—			9.4
Allocated income taxes and TE adjustments		105			105			96			—			9.4
Net income	$	175		$	175		$	160			—	%		9.4	%
Percent of consolidated net income		57	%		61	%		55	%		N/A			N/A
Average balances
Loans and leases	$	40,201		$	39,534		$	36,842			1.7	%		9.1	%
Total assets		50,470			49,618			46,101			1.7			9.5
Deposits		10,638			9,962			7,535			6.8			41.2

TE = Taxable Equivalent, N/A = Not Applicable

Additional National Banking Data

dollars in millions	2Q06			1Q06			2Q05
Home equity loans
Average balance	$	3,333		$	3,277		$	3,498
Average loan-to-value ratio		70	%		70	%		71	%
Percent first lien positions		61			62			67

     Net income for National Banking was $175 million for the second quarter of 2006, up from $160 million for the same period last year. Growth in both net interest income and noninterest income more than offset increases in noninterest expense and the provision for loan losses.

     Taxable-equivalent net interest income grew by $26 million, or 8%, from the second quarter of 2005, reflecting strong growth in average loans and leases, as well as deposits. Average loans and leases rose by $3.4 billion, or 9%, with most of the growth coming from the Real Estate Capital line of business. The positive effect of these factors was moderated by a tighter interest rate spread on average earning assets in the Consumer Finance line of business.

     Noninterest income rose by $20 million, or 8%. Contributing to the improved performance were increases in income from trust and investment services, investment banking activities and operating leases.

     Noninterest expense increased by $19 million, or 6%, reflecting higher costs associated with personnel and various indirect charges.

     Since the second quarter of 2005, we have completed two acquisitions that have helped us to build upon our success in commercial mortgage origination and servicing. In the fourth quarter of 2005, we continued the expansion of our commercial mortgage servicing business by acquiring the commercial mortgage-backed servicing business of ORIX Capital Markets, LLC, headquartered in Dallas, Texas. In the third quarter, we expanded our FHA financing and servicing capabilities by acquiring Malone Mortgage Company, also based in Dallas.

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     In addition, during the second quarter of 2006 we expanded our asset management product line by acquiring Austin Capital Management, Ltd., an investment firm headquartered in Austin, Texas.

Other Segments

     Other segments consist of Corporate Treasury and Key’s Principal Investing unit. These segments generated net income of $20 million for the second quarter of 2006, compared to $10 million for the same period last year.

Line of Business Descriptions

Community Banking

Regional Bankingprovides individuals with branch-based deposit and investment products, personal finance services and loans, including residential mortgages, home equity and various types of installment loans. This line of business also provides small businesses that typically have annual sales revenues of $5 million or less with deposit, investment and credit products, and business advisory services.

Through McDonald Financial Group, Regional Banking also 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.

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

National Banking

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 in which the owner occupies less than 60% of the premises).

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

Institutional and Capital Marketsprovides products and services to large corporations, middle-market companies, financial institutions, government entities and not-for-profit 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.

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Through its Victory Capital Management unit, Institutional and Capital Markets 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.

Consumer Financeincludes Indirect Lending, Commercial Floor Plan Lending and National Home Equity.

Indirect Lending offers loans to consumers through 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.

Commercial Floor Plan Lending finances inventory for automobile and marine dealers.

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.

     Cleveland-based KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $95 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 2,120 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, July 18, 2006. A tape of the call will be available through July 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.

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This news release contains forward-looking statements, including statements about our financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to assumptions, risks and uncertainties. Although management believes that the expectations and forecasts reflected in these forward-looking statements are reasonable, actual results could differ materially due to a variety of factors including: (1) changes in interest rates; (2) changes in trade, monetary or fiscal policy; (3) changes in general economic conditions, or in the condition of the local economies or industries in which we have significant operations or assets, which could, among other things, materially impact credit quality trends and our ability to generate loans; (4) increased competitive pressure among financial services companies; (5) the inability to successfully execute strategic initiatives designed to grow revenues and/or manage expenses; (6) consummation of significant business combinations or divestitures; (7) operational or risk management failures due to technological or other factors; (8) heightened regulatory practices, requirements or expectations; (9) new legal obligations or liabilities or unfavorable resolution of litigation; (10) adverse capital markets conditions; (11) disruption in the economy and general business climate as a result of terrorist activities or military actions; and (12) changes in accounting or tax practices or requirements. Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. We do not assume any obligation to update these forward-looking statements. For further information regarding KeyCorp, please read KeyCorp’s reports that are filed with the Securities and Exchange Commission and are available at www.sec.gov.

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July 18, 2006
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Financial Highlights
(dollars in millions, except per share amounts)

	Three months ended
	6-30-06			3-31-06			6-30-05
Summary of operations
Net interest income (TE)	$	752		$	756		$	723
Noninterest income		547			481			486
Total revenue (TE)		1,299			1,237			1,209
Provision for loan losses		24			39			20
Noninterest expense		816			770			753
Net income		308			289			291
Per common share
Net income	$	.76		$	.71		$	.71
Net income — assuming dilution		.75			.70			.70
Cash dividends paid		.345			.345			.325
Book value at period end		19.21			18.85			18.01
Market price at period end		35.68			36.80			33.15
Performance ratios
Return on average total assets		1.32	%		1.26	%		1.30	%
Return on average equity		16.11			15.48			16.15
Net interest margin (TE)		3.69			3.77			3.71
Capital ratios at period end
Equity to assets		8.16	%		8.18	%		8.08	%
Tangible equity to tangible assets		6.68			6.71			6.60
Tier 1 risk-based capital a		7.90			7.64			7.68
Total risk-based capitala		12.08			11.91			11.72
Leverage a		8.83			8.52			8.49
Asset quality
Net loan charge-offs	$	34		$	39		$	48
Net loan charge-offs to average loans		.21	%		.23	%		.30	%
Allowance for loan losses	$	956		$	966		$	1,100
Allowance for loan losses to period-end loans		1.42	%		1.44	%		1.70	%
Allowance for loan losses to nonperforming loans		342.65			327.46			376.71
Nonperforming loans at period end	$	279		$	295		$	292
Nonperforming assets at period end		308			320			338
Nonperforming loans to period-end loans		.41	%		.44	%		.45	%
Nonperforming assets to period-end loans plus
OREO and other nonperforming assets		.46			.48			.52
Trust and brokerage assets
Assets under management	$	80,349		$	79,558		$	76,807
Nonmanaged and brokerage assets		57,682			56,944			57,006
Other data
Average full-time equivalent employees		19,931			19,694			19,429
KeyCenters		946			945			945
Taxable-equivalent adjustment	$	22		$	28		$	30

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

	Six months ended
	6-30-06			6-30-05
Summary of operations
Net interest income (TE)	$	1,508		$	1,437
Noninterest income		1,028			986
Total revenue (TE)		2,536			2,423
Provision for loan losses		63			64
Noninterest expense		1,586			1,522
Net income		597			555
Per common share
Net income	$	1.47		$	1.36
Net income — assuming dilution		1.45			1.34
Cash dividends paid		.69			.65
Performance ratios
Return on average total assets		1.29	%		1.24	%
Return on average equity		15.80			15.63
Net interest margin (TE)		3.73			3.69
Asset quality
Net loan charge-offs	$	73		$	102
Net loan charge-offs to average loans		.22	%		.32	%
Other data
Average full-time equivalent employees		19,813			19,534
Taxable-equivalent adjustment	$	50		$	58

(a)	6-30-06 ratio is estimated.
TE = Taxable Equivalent

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Consolidated Balance Sheets
(dollars in millions)

	6-30-06			3-31-06			6-30-05
Assets
Loans	$	67,408		$	66,980		$	64,690
Loans held for sale		4,189			3,631			3,274
Investment securities		44			46			59
Securities available for sale		7,140			7,086			7,271
Short-term investments		1,577			1,974			1,845
Other investments		1,379			1,370			1,409
Total earning assets		81,737			81,087			78,548
Allowance for loan losses		(956	)		(966	)		(1,100	)
Cash and due from banks		2,814			2,486			2,968
Premises and equipment		557			564			576
Goodwill		1,372			1,355			1,342
Other intangible assets		132			120			101
Corporate-owned life insurance		2,732			2,711			2,639
Derivative assets		1,016			947			1,448
Accrued income and other assets		5,390			5,087			4,493
Total assets	$	94,794		$	93,391		$	91,015
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	25,291		$	25,271		$	22,071
Savings deposits		1,751			1,850			2,022
Certificates of deposit ($100,000 or more)		5,224			5,411			5,094
Other time deposits		11,542			11,364			10,794
Total interest-bearing		43,808			43,896			39,981
Noninterest-bearing		13,268			12,748			12,158
Deposits in foreign office — interest-bearing		3,762			2,758			5,924
Total deposits		60,838			59,402			58,063
Federal funds purchased and securities sold under repurchase agreements		3,654			3,511			2,824
Bank notes and other short-term borrowings		2,360			2,508			3,315
Derivative liabilities		1,156			1,048			1,241
Accrued expense and other liabilities		4,999			5,252			4,632
Long-term debt		14,050			14,032			13,588
Total liabilities		87,057			85,753			83,663
Shareholders’ equity
Preferred stock		—			—			—
Common shares		492			492			492
Capital surplus		1,577			1,535			1,504
Retained earnings		8,199			8,031			7,574
Treasury stock, at cost		(2,411	)		(2,299	)		(2,132	)
Accumulated other comprehensive loss		(120	)		(121	)		(86	)
Total shareholders’ equity		7,737			7,638			7,352
Total liabilities and shareholders’ equity	$	94,794		$	93,391		$	91,015
Common shares outstanding (000)		402,672			405,273			408,231

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

	Three months ended						Six months ended
	6-30-06		3-31-06		6-30-05		6-30-06		6-30-05
Interest income
Loans	$	1,190	$	1,114	$	946	$	2,304	$	1,831
Loans held for sale		73		68		53		141		134
Investment securities		1		—		1		1		2
Securities available for sale		84		83		80		167		160
Short-term investments		16		22		12		38		22
Other investments		17		25		24		42		32
Total interest income		1,381		1,312		1,116		2,693		2,181
Interest expense
Deposits		392		343		238		735		444
Federal funds purchased and securities sold under repurchase agreements		34		34		25		68		50
Bank notes and other short-term borrowings		27		24		19		51		36
Long-term debt		198		183		141		381		272
Total interest expense		651		584		423		1,235		802
Net interest income		730		728		693		1,458		1,379
Provision for loan losses		24		39		20		63		64
		706		689		673		1,395		1,315
Noninterest income
Trust and investment services income		139		135		135		274		273
Service charges on deposit accounts		77		72		76		149		146
Investment banking and capital markets income		59		60		51		119		106
Operating lease income		56		52		48		108		94
Letter of credit and loan fees		45		40		47		85		87
Corporate-owned life insurance income		26		25		24		51		52
Electronic banking fees		27		24		24		51		46
Net gains from loan securitizations and sales		10		10		10		20		29
Net securities gains (losses)		4		1		1		5		(5	)
Other income		104		62		70		166		158
Total noninterest income		547		481		486		1,028		986
Noninterest expense
Personnel		431		405		386		836		776
Net occupancy		61		63		55		124		146
Computer processing		49		56		50		105		101
Operating lease expense		45		41		40		86		78
Professional fees		40		33		30		73		58
Marketing		28		18		34		46		59
Equipment		26		26		28		52		56
Other expense		136		128		130		264		248
Total noninterest expense		816		770		753		1,586		1,522
Income before income taxes and cumulative effect of accounting change		437		400		406		837		779
Income taxes		129		116		115		245		224
Income before cumulative effect of accounting change		308		284		291		592		555
Cumulative effect of accounting change, net of tax		—		5		—		5		—
Net income	$	308	$	289	$	291	$	597	$	555
Per common share:
Income before cumulative effect of accounting change	$	.76	$	.70	$	.71	$	1.46	$	1.36
Net income		.76		.71		.71		1.47		1.36
Per common share — assuming dilution:
Income before cumulative effect of accounting change	$	.75	$	.69	$	.70	$	1.44	$	1.34
Net income		.75		.70		.70		1.45		1.34
Cash dividends declared per common share	$	.345	$	.345	$	.325	$	.69	$	.65
Weighted-average common shares outstanding (000)		404,528		407,386		408,754		405,949		408,510
Weighted-average common shares and potential common shares outstanding (000)		410,455		413,140		414,309		411,790		414,037

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 13

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

	Second Quarter 2006								First Quarter 2006								Second Quarter 2005
	Average								Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate
Assets
Loans:a,b
Commercial, financial and agriculturalc	$	21,970		$	390		7.12	%	$	21,720		$	357		6.66	%	$	19,477		$	258		5.31	%
Real estate — commercial mortgage		8,071			153		7.59			8,089			144		7.23			8,373			129		6.13
Real estate — construction		7,570			152		8.07			7,312			138		7.66			6,117			98		6.45
Commercial lease financingc		9,764			148		6.05			9,581			143		5.98			9,984			158		6.33
Total commercial loans		47,375			843		7.13			46,702			782		6.78			43,951			643		5.86
Real estate — residential		1,430			24		6.54			1,450			23		6.33			1,477			21		6.04
Home equity		13,449			247		7.36			13,433			238		7.19			13,904			225		6.49
Consumer — direct		1,685			41		9.64			1,730			41		9.66			1,831			36		7.93
Consumer — indirect		3,503			57		6.66			3,367			57		6.66			3,328			51		6.15
Total consumer loans		20,067			369		7.37			19,980			359		7.26			20,540			333		6.53
Total loans		67,442			1,212		7.20			66,682			1,141		6.92			64,491			976		6.07
Loans held for sale		3,844			73		7.64			3,692			68		7.44			3,169			53		6.61
Investment securitiesa		46			1		8.01			61			1		6.34			65			1		8.42
Securities available for saled		7,075			84		4.71			7,148			83		4.61			7,081			80		4.54
Short-term investments		1,678			16		3.89			1,753			22		5.10			1,799			12		2.58
Other investmentsd		1,398			17		4.60			1,336			25		7.13			1,455			24		6.42
Total earning assets		81,483			1,403		6.89			80,672			1,340		6.70			78,060			1,146		5.88
Allowance for loan losses		(963	)							(963	)							(1,124	)
Accrued income and other assets		13,341								13,206								12,979
Total assets	$	93,861							$	92,915							$	89,915
Liabilities
NOW and money market deposit accounts	$	25,347			173		2.75		$	24,452			145		2.40		$	22,301			77		1.39
Savings deposits		1,752			1		.20			1,812			1		.32			1,999			1		.26
Certificates of deposit ($100,000 or more)e		5,382			61		4.54			5,407			58		4.34			4,999			46		3.70
Other time deposits		11,456			115		4.02			11,282			104		3.73			10,806			82		3.05
Deposits in foreign office		3,429			42		4.88			3,354			35		4.29			4,314			32		2.96
Total interest-bearing deposits		47,366			392		3.32			46,307			343		3.00			44,419			238		2.16
Federal funds purchased and securities sold under repurchase agreements		3,005			34		4.60			3,349			34		4.06			3,830			25		2.67
Bank notes and other short-term borrowings		2,497			27		4.17			2,550			24		3.89			2,792			19		2.72
Long-term debte		14,088			198		5.59			13,991			183		5.27			13,929			141		4.11
Total interest-bearing liabilities		66,956			651		3.89			66,197			584		3.57			64,970			423		2.62
Noninterest-bearing deposits		13,027								12,707								11,717
Accrued expense and other liabilities		6,211								6,438								6,000
Total liabilities		86,194								85,342								82,687
Shareholders’ equity		7,667								7,573								7,228
Total liabilities and shareholders’ equity	$	93,861							$	92,915							$	89,915
Interest rate spread (TE)							3.00	%							3.13	%							3.26	%
Net interest income (TE) and net interest margin (TE)					752		3.69	%					756		3.77	%					723		3.71	%
TE adjustmenta					22								28								30
Net interest income, GAAP basis				$	730							$	728							$	693

(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)	During the first quarter of 2006, Key reclassified $760 million of average loans and related interest income from the commercial lease financing component of the commercial loan portfolio to the commercial, financial and agricultural component to more accurately reflect the nature of these receivables. Balances presented for prior periods were not reclassified as the historical data was not available.
(d)	Yield is calculated on the basis of amortized cost.
(e)	Rate calculation excludes basis adjustments related to fair value hedges.
TE = Taxable Equivalent
GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 14

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

	Six months ended June 30, 2006								Six months ended June 30, 2005
	Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate
Assets
Loans:a,b
Commercial, financial and agriculturalc	$	21,846		$	747		6.89	%	$	19,337		$	488		5.09	%
Real estate — commercial mortgage		8,080			297		7.41			8,281			244		5.92
Real estate — construction		7,442			290		7.87			5,878			179		6.15
Commercial lease financingc		9,672			291		6.02			10,019			316		6.32
Total commercial loans		47,040			1,625		6.96			43,515			1,227		5.67
Real estate — residential		1,440			47		6.43			1,471			44		6.02
Home equity		13,441			485		7.28			13,945			438		6.34
Consumer — direct		1,707			82		9.65			1,879			74		7.91
Consumer — indirect		3,436			114		6.66			3,326			105		6.33
Total consumer loans		20,024			728		7.31			20,621			661		6.46
Total loans		67,064			2,353		7.06			64,136			1,888		5.93
Loans held for sale		3,769			141		7.54			3,722			134		7.21
Investment securitiesa		54			2		7.11			67			3		8.61
Securities available for saled		7,111			167		4.66			7,153			160		4.49
Short-term investments		1,715			38		4.50			1,740			22		2.51
Other investmentsd		1,367			42		5.84			1,439			32		4.36
Total earning assets		81,080			2,743		6.80			78,257			2,239		5.75
Allowance for loan losses		(963	)							(1,129	)
Accrued income and other assets		13,273								13,306
Total assets	$	93,390							$	90,434
Liabilities
NOW and money market deposit accounts	$	24,902			318		2.58		$	21,962			132		1.21
Savings deposits		1,782			2		.26			1,978			2		.25
Certificates of deposit ($100,000 or more)e		5,395			119		4.44			4,947			90		3.68
Other time deposits		11,369			219		3.88			10,698			158		2.98
Deposits in foreign office		3,392			77		4.59			4,636			62		2.69
Total interest-bearing deposits		46,840			735		3.17			44,221			444		2.03
Federal funds purchased and securities sold under repurchase agreements		3,176			68		4.32			4,151			50		2.44
Bank notes and other short-term borrowings		2,524			51		4.03			2,869			36		2.55
Long-term debte		14,039			381		5.44			14,355			272		3.94
Total interest-bearing liabilities		66,579			1,235		3.73			65,596			802		2.48
Noninterest-bearing deposits		12,867								11,626
Accrued expense and other liabilities		6,324								6,051
Total liabilities		85,770								83,273
Shareholders’ equity		7,620								7,161
Total liabilities and shareholders’ equity	$	93,390							$	90,434
Interest rate spread (TE)							3.07	%							3.27	%
Net interest income (TE) and net interest margin (TE)					1,508		3.73	%					1,437		3.69	%
TE adjustmenta					50								58
Net interest income, GAAP basis				$	1,458							$	1,379

(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)	During the first quarter of 2006, Key reclassified $760 million of average loans and related interest income from the commercial lease financing component of the commercial loan portfolio to the commercial, financial and agricultural component to more accurately reflect the nature of these receivables. Balances presented for prior periods were not reclassified as the historical data was not available.
(d)	Yield is calculated on the basis of amortized cost.
(e)	Rate calculation excludes basis adjustments related to fair value hedges.
TE = Taxable Equivalent
GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 15

Noninterest Income
(in millions)

	Three months ended								Six months ended
	6-30-06		3-31-06			6-30-05			6-30-06		6-30-05
Trust and investment services incomea	$	139	$	135		$	135		$	274	$	273
Service charges on deposit accounts		77		72			76			149		146
Investment banking and capital markets incomea		59		60			51			119		106
Operating lease income		56		52			48			108		94
Letter of credit and loan fees		45		40			47			85		87
Corporate-owned life insurance income		26		25			24			51		52
Electronic banking fees		27		24			24			51		46
Net gains from loan securitizations and sales		10		10			10			20		29
Net securities gains (losses)		4		1			1			5		(5	)
Other income:
Insurance income		17		14			11			31		22
Loan securitization servicing fees		5		5			5			10		10
Credit card fees		3		3			5			6		8
Net gains (losses) from principal investing		23		(3	)		(1	)		20		11
Miscellaneous income		56		43			50			99		107
Total other income		104		62			70			166		158
Total noninterest income	$	547	$	481		$	486		$	1,028	$	986

(a) Additional detail provided in tables below.

Trust and Investment Services Income
(in millions)

	Three months ended						Six months ended
	6-30-06		3-31-06		6-30-05		6-30-06		6-30-05
Brokerage commissions and fee income	$	59	$	62	$	62	$	121	$	125
Personal asset management and custody fees		38		39		38		77		76
Institutional asset management and custody fees		42		34		35		76		72
Total trust and investment services income	$	139	$	135	$	135	$	274	$	273

Investment Banking and Capital Markets Income
(in millions)

	Three months ended						Six months ended
	6-30-06		3-31-06		6-30-05		6-30-06		6-30-05
Investment banking income	$	26	$	22	$	19	$	48	$	36
Dealer trading and derivatives income		11		7		10		18		29
Income from other investments		11		21		13		32		23
Foreign exchange income		11		10		9		21		18
Total investment banking and capital markets income	$	59	$	60	$	51	$	119	$	106

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 16

Noninterest Expense
(dollars in millions)

	Three months ended						Six months ended
	6-30-06		3-31-06		6-30-05		6-30-06		6-30-05
Personnela	$	431	$	405	$	386	$	836	$	776
Net occupancy		61		63		55		124		146	b
Computer processing		49		56		50		105		101
Operating lease expense		45		41		40		86		78
Professional fees		40		33		30		73		58
Marketing		28		18		34		46		59
Equipment		26		26		28		52		56
Other expense:
Postage and delivery		12		13		12		25		25
Franchise and business taxes		10		10		9		20		17
Telecommunications		7		7		8		14		15
OREO expense, net		1		1		2		2		4
Provision (credit) for losses on lending-related commitments		—		—		2		—		(9	)
Miscellaneous expense		106		97		97		203		196
Total other expense		136		128		130		264		248
Total noninterest expense	$	816	$	770	$	753	$	1,586	$	1,522
Average full-time equivalent employees		19,931		19,694		19,429		19,813		19,534

(a)	Additional detail provided in table below.
(b)	Includes a charge of $30 million recorded during the first quarter of 2005 to adjust the accounting for rental expense associated with operating leases from an escalating to a straight-line basis.

Personnel Expense
(in millions)

	Three months ended						Six months ended
	6-30-06		3-31-06		6-30-05		6-30-06		6-30-05
Salaries	$	235	$	231	$	218	$	466	$	435
Incentive compensation		100		79		88		179		163
Employee benefits		76		81		64		157		138
Stock-based compensation		18		14		14		32		32
Severance		2		—		2		2		8
Total personnel expense	$	431	$	405	$	386	$	836	$	776

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 17

Loan Composition
(dollars in millions)

							Percent change 6-30-06 vs.
	6-30-06		3-31-06		6-30-05		3-31-06			6-30-05
Commercial, financial and agriculturala	$	21,598	$	21,681	$	19,331		(.4	)%		11.7	%
Commercial real estate:
Commercial mortgage		7,994		8,145		8,507		(1.9	)		(6.0	)
Construction		7,767		7,507		6,236		3.5			24.6
Total commercial real estate loans		15,761		15,652		14,743		.7			6.9
Commercial lease financinga		9,909		9,668		10,113		2.5			(2.0	)
Total commercial loans		47,268		47,001		44,187		.6			7.0
Real estate — residential mortgage		1,418		1,435		1,466		(1.2	)		(3.3	)
Home equity		13,509		13,429		13,921		.6			(3.0	)
Consumer — direct		1,670		1,691		1,793		(1.2	)		(6.9	)
Consumer — indirect:
Marine		2,920		2,804		2,665		4.1			9.6
Other		623		620		658		.5			(5.3	)
Total consumer — indirect loans		3,543		3,424		3,323		3.5			6.6
Total consumer loans		20,140		19,979		20,503		.8			(1.8	)
Total loans	$	67,408	$	66,980	$	64,690		.6	%		4.2	%

(a) At March 31, 2006, Key reclassified $792 million of loans from the commercial lease financing component of the commercial loan portfolio to the commercial, financial and agricultural component to more accurately reflect the nature of these receivables. Balances presented for prior periods were not reclassified.

Loans Held for Sale Composition
(dollars in millions)

							Percent change 6-30-06 vs.
	6-30-06		3-31-06		6-30-05		3-31-06			6-30-05
Commercial, financial and agricultural	$	394	$	189		—		108.5	%		N/M
Real estate — commercial mortgage		784		411	$	519		90.8			51.1	%
Real estate — residential mortgage		27		14		23		92.9			17.4
Real estate — construction		36		62		—		(41.9	)		N/M
Commercial lease financing		—		4		—		(100.0	)		—
Home equity		1		1		1		—			—
Education		2,929		2,930		2,586		—			13.3
Automobile		18		20		145		(10.0	)		(87.6	)
Total loans held for sale	$	4,189	$	3,631	$	3,274		15.4	%		27.9	%

N/M = Not Meaningful

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 18

Summary of Loan Loss Experience
(dollars in millions)

	Three months ended									Six months ended
	6-30-06			3-31-06			6-30-05			6-30-06			6-30-05
Average loans outstanding during the period	$	67,442		$	66,682		$	64,491		$	67,064		$	64,136
Allowance for loan losses at beginning of period	$	966		$	966		$	1,128		$	966		$	1,138
Loans charged off:
Commercial, financial and agricultural		20			24			19			44			44
Real estate — commercial mortgage		3			3			9			6			12
Real estate — construction		—			2			—			2			5
Total commercial real estate loans		3			5			9			8			17
Commercial lease financing		8			6			13			14			25
Total commercial loans		31			35			41			66			86
Real estate — residential mortgage		2			1			2			3			4
Home equity		8			8			7			16			13
Consumer — direct		9			10			10			19			18
Consumer — indirect		9			11			15			20			32
Total consumer loans		28			30			34			58			67
		59			65			75			124			153
Recoveries:
Commercial, financial and agricultural		7			12			5			19			10
Real estate — commercial mortgage		—			1			—			1			1
Real estate — construction		—			—			2			—			2
Total commercial real estate loans		—			1			2			1			3
Commercial lease financing		9			5			10			14			20
Total commercial loans		16			18			17			34			33
Real estate — residential mortgage		1			—			1			1			1
Home equity		1			2			2			3			3
Consumer — direct		2			2			2			4			4
Consumer — indirect		5			4			5			9			10
Total consumer loans		9			8			10			17			18
		25			26			27			51			51
Net loans charged off		(34	)		(39	)		(48	)		(73	)		(102	)
Provision for loan losses		24			39			20			63			64
Allowance for loan losses at end of period	$	956		$	966		$	1,100		$	956		$	1,100
Net loan charge-offs to average loans		.21	%		.23	%		.30	%		.22	%		.32	%
Allowance for loan losses to period-end loans		1.42			1.44			1.70			1.42			1.70
Allowance for loan losses to nonperforming loans		342.65			327.46			376.71			342.65			376.71

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 19

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

	Three months ended						Six months ended
	6-30-06		3-31-06		6-30-05		6-30-06		6-30-05
Balance at beginning of period	$	59	$	59	$	55	$	59	$	66
Provision (credit) for losses on lending related commitments		—		—		2		—		(9	)
Balance at end of perioda	$	59	$	59	$	57	$	59	$	57

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

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

	6-30-06			3-31-06			12-31-05			9-30-05			6-30-05
Commercial, financial and agricultural	$	76		$	68		$	63		$	50		$	58
Real estate — commercial mortgage		40			42			43			33			36
Real estate — construction		4			4			2			3			3
Total commercial real estate loans		44			46			45			36			39
Commercial lease financing		29			29			39			151			73
Total commercial loans		149			143			147			237			170
Real estate — residential mortgage		31			43			41			40			38
Home equity		90			97			79			75			74
Consumer — direct		3			6			2			3			4
Consumer — indirect		6			6			8			5			6
Total consumer loans		130			152			130			123			122
Total nonperforming loans		279			295			277			360			292
Nonperforming loans held for sale		1			2			3			2			1
OREO		26			21			25			29			33
Allowance for OREO losses		(1	)		(1	)		(2	)		(3	)		(2	)
OREO, net of allowance		25			20			23			26			31
Other nonperforming assets		3			3			4			5			14
Total nonperforming assets	$	308		$	320		$	307		$	393		$	338
Accruing loans past due 90 days or more	$	119		$	107		$	90		$	94		$	74
Accruing loans past due 30 through 89 days		600			498			491			550			475
Nonperforming loans to period-end loans		.41	%		.44	%		.42	%		.55	%		.45	%
Nonperforming assets to period-end loans plus OREO and other nonperforming assets		.46			.48			.46			.60			.52

Summary of Changes in Nonperforming Loans
(in millions)

	2Q06			1Q06			4Q05
Balance at beginning of period	$	295		$	277		$	360
Loans placed on nonaccrual status		98			100			142
Charge-offs		(59	)		(65	)		(187	)
Loans sold		(6	)		(2	)		(2	)
Payments		(45	)		(15	)		(27	)
Transfers to OREO		(4	)		—			—
Loans returned to accrual status		—			—			(9	)
Balance at end of period	$	279		$	295		$	277

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 20

Line of Business Results
(dollars in millions)

Community Banking

																Percent change 2Q06 vs.
	2Q06			1Q06			4Q05			3Q05			2Q05			1Q06			2Q05
Summary of operations
Total revenue (TE)	$	662		$	642		$	665		$	659		$	645			3.1	%		2.6	%
Provision for loan losses		19			29			30			26			18			(34.5	)		5.6
Noninterest expense		475			438			483			454			438			8.4			8.4
Net income		105			109			95			112			118			(3.7	)		(11.0	)
Average loans and leases		26,804			26,739			27,267			27,131			27,038			.2			(.9	)
Average deposits		46,683			45,835			45,730			44,705			43,719			1.9			6.8
Net loan charge-offs		24			29			32			25			25			(17.2	)		(4.0	)
Return on average allocated equity		19.23	%		20.19	%		17.09	%		20.36	%		21.83	%		N/A			N/A
Average full-time equivalent employees		9,015			8,873			8,747			8,785			8,698			1.6			3.6
Supplementary information (lines of business)
Regional Banking
Total revenue (TE)	$	563		$	547		$	559		$	557		$	546			2.9	%		3.1	%
Provision for loan losses		14			26			22			20			19			(46.2	)		(26.3	)
Noninterest expense		423			391			428			404			388			8.2			9.0
Net income		79			81			68			83			87			(2.5	)		(9.2	)
Average loans and leases		18,771			18,776			19,010			19,093			19,114			—			(1.8	)
Average deposits		43,091			42,222			41,929			41,126			40,421			2.1			6.6
Net loan charge-offs		21			22			26			23			21			(4.5	)		—
Return on average allocated equity		21.37	%		22.09	%		18.00	%		22.26	%		23.64	%		N/A			N/A
Average full-time equivalent employees		8,642			8,519			8,386			8,419			8,316			1.4			3.9
Commercial Banking
Total revenue (TE)	$	99		$	95		$	106		$	102		$	99			4.2	%		—
Provision for loan losses		5			3			8			6			(1	)		66.7			N/M
Noninterest expense		52			47			55			50			50			10.6			4.0	%
Net income		26			28			27			29			31			(7.1	)		(16.1	)
Average loans and leases		8,033			7,963			8,257			8,038			7,924			.9			1.4
Average deposits		3,592			3,613			3,801			3,579			3,298			(.6	)		8.9
Net loan charge-offs		3			7			6			2			4			(57.1	)		(25.0	)
Return on average allocated equity		14.75	%		16.18	%		15.15	%		16.37	%		17.97	%		N/A			N/A
Average full-time equivalent employees		373			354			361			366			382			5.4			(2.4	)

KeyCorp Reports Second Quarter 2006 Earnings
July 18, 2006
Page 21

Line of Business Results (continued)

(dollars in millions)

National Banking

																Percent change 2Q06 vs.
	2Q06			1Q06			4Q05			3Q05			2Q05			1Q06			2Q05
Summary of operations
Total revenue (TE)	$	631		$	624		$	644		$	601		$	585			1.1	%		7.9	%
Provision for loan losses		5			10			6			17			2			(50.0	)		150.0
Noninterest expense		346			334			358			327			327			3.6			5.8
Net income		175			175			175			161			160			—			9.4
Average loans and leases		40,201			39,534			38,398			37,072			36,842			1.7			9.1
Average deposits		10,638			9,962			8,580			7,785			7,535			6.8			41.2
Net loan charge-offs		10			10			132			24			23			—			(56.5	)
Return on average allocated equity		18.31	%		18.53	%		18.43	%		17.47	%		17.61	%		N/A			N/A
Average full-time equivalent employees		4,466			4,455			4,403			4,419			4,502			.2			(.8	)
Supplementary information (lines of business)
Real Estate Capital
Total revenue (TE)	$	174		$	154		$	163		$	148		$	138			13.0	%		26.1	%
Provision for loan losses		3			1			2			1			(5	)		200.0			N/M
Noninterest expense		71			60			68			64			55			18.3			29.1
Net income		62			58			58			52			55			6.9			12.7
Average loans and leases		12,719			12,467			12,038			11,265			10,596			2.0			20.0
Average deposits		3,467			3,214			2,467			2,100			1,728			7.9			100.6
Net loan charge-offs		2			2			—			—			3			—			(33.3	)
Return on average allocated equity		22.84	%		21.90	%		22.41	%		20.73	%		23.32	%		N/A			N/A
Average full-time equivalent employees		955			981			873			812			774			(2.7	)		23.4
Equipment Finance
Total revenue (TE)	$	136		$	124		$	128		$	123		$	127			9.7	%		7.1	%
Provision for loan losses		8			8			(5	)		3			7			—			14.3
Noninterest expense		80			71			79			72			75			12.7			6.7
Net income		30			28			33			30			28			7.1			7.1
Average loans and leases		9,871			9,569			9,458			9,133			8,892			3.2			11.0
Average deposits		14			15			15			14			11			(6.7	)		27.3
Net loan charge-offs		3			3			132			11			2			—			50.0
Return on average allocated equity		14.73	%		14.07	%		16.59	%		15.66	%		14.82	%		N/A			N/A
Average full-time equivalent employees		915			935			971			966			963			(2.1	)		(5.0	)
Institutional and Capital Markets
Total revenue (TE)	$	187		$	204		$	189		$	179		$	168			(8.3	)%		11.3	%
Provision for loan losses		(13	)		—			6			—			1			N/M			N/M
Noninterest expense		110			125			112			108			97			(12.0	)		13.4
Net income		57			50			45			45			44			14.0			29.5
Average loans and leases		7,589			7,823			7,358			7,316			7,824			(3.0	)		(3.0	)
Average deposits		6,441			6,030			5,434			4,986			5,152			6.8			25.0
Net loan charge-offs (recoveries)		(1	)		(5	)		(4	)		—			7			(80.0	)		N/M
Return on average allocated equity		21.82	%		18.95	%		16.95	%		17.30	%		16.79	%		N/A			N/A
Average full-time equivalent employees		1,253			1,234			1,224			1,256			1,213			1.5			3.3
Consumer Finance
Total revenue (TE)	$	134		$	142		$	164		$	151		$	152			(5.6	)%		(11.8	)%
Provision for loan losses		7			1			3			13			(1	)		600.0			N/M
Noninterest expense		85			78			99			83			100			9.0			(15.0	)
Net income		26			39			39			34			33			(33.3	)		(21.2	)
Average loans and leases		10,022			9,675			9,544			9,358			9,530			3.6			5.2
Average deposits		716			703			664			685			644			1.8			11.2
Net loan charge-offs		6			10			4			13			11			(40.0	)		(45.5	)
Return on average allocated equity		11.86	%		17.97	%		17.23	%		15.52	%		14.87	%		N/A			N/A
Average full-time equivalent employees		1,343			1,305			1,335			1,385			1,552			2.9			(13.5	)

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