KeyCorp (KEY) 8-K Keycorp Reports First Quarter 2007 Earnings

Exhibit 99.1

CONTACTS:	Vernon L. Patterson	William C. Murschel
	Analyst	Media
	216.689.0520	216.828.7416
	Vernon_Patterson@KeyBank.com	William_C_Murschel@KeyBank.com
INVESTOR		KEY MEDIA
RELATIONS: www.Key.com/ir		NEWSROOM: www.Key.com/newsroom

FOR IMMEDIATE RELEASE

KEYCORP REPORTS FIRST QUARTER 2007 EARNINGS

w	McDonald Investments branch network sale completed
w	Securities portfolio repositioned

          CLEVELAND, April 17, 2007 – KeyCorp (NYSE: KEY) today announced first quarter income from continuing operations of $358 million, or $0.89 per diluted common share. This compares to income from continuing operations – before the cumulative effect of an accounting change – of $274 million, or $0.66 per share, for the first quarter of 2006 and income from continuing operations of $311 million, or $0.76 per share, for the fourth quarter of 2006.

          Net income totaled $350 million, or $0.87 per diluted common share, for the first quarter of 2007, compared to net income of $289 million, or $0.70 per share, for the first quarter of 2006 and $146 million, or $0.36 per share, for the fourth quarter of 2006.

          The following table shows Key’s continuing and discontinued operating results for the three-month periods ended March 31, 2007, December 31, 2006, and March 31, 2006.

Results of Operations

	Three months ended
in millions, except per share amounts	3-31-07			12-31-06			3-31-06
Summary of operations
Income from continuing operations before cumulative effect of accounting change	$	358		$	311		$	274
Income (loss) from discontinued operations, net of taxes		(8	)		(165	)a		10
Cumulative effect of accounting change, net of taxes		—			—			5
Net income	$	350		$	146		$	289
Per common share — assuming dilutionb
Income from continuing operations before cumulative effect of accounting change	$	.89		$	.76		$	.66
Income (loss) from discontinued operations		(.02	)		(.40	)a		.02
Cumulative effect of accounting change		—			—			.01
Net income	$	.87		$	.36		$	.70

(a)	Includes a net after-tax charge of $165 million, or $.40 per share, consisting of: (1) a $170 million, or $.42 per share, write-off of goodwill associated with Key’s 1997 acquisition of Champion and (2) a net after-tax credit of $5 million, or $.01 per share, from the net gain on sale of the Champion Mortgage loan portfolio and disposal transaction costs.
(b)	Earnings per share may not foot due to rounding.

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 2

     In February, Key sold the McDonald Investments branch network. First quarter results were also impacted by actions taken to reposition the securities portfolio. In March, Key sold $2.4 billion of shorter-maturity, agency-issued collateralized mortgage obligations and reinvested the proceeds in agency-issued securities with higher yields and longer expected average maturities. Key continues to maintain a relatively neutral exposure to changes in near-term interest rates. Neither funding nor capital levels were affected materially by this portfolio repositioning. In addition, as previously disclosed, Key recorded a gain from the settlement of the automobile residual value insurance litigation during the current quarter.

     The following Summary of Operations shows Key’s results for the first quarter of 2007 as reported and on an adjusted basis after excluding the McDonald Investments branch network, the loss resulting from the repositioning of the securities portfolio and the gain associated with the litigation settlement.

Summary of Operations

				McDonald
	1Q07			Investments			Other		1Q07
in millions, except per share amounts	As Reported			Branch Networka			Adjustmentsb		Adjusted Basis
Net interest income (TE)	$	700		$	(3	)		—	$	697
Noninterest income		654			(190	)	$	23		487
Total revenue (TE)		1,354			(193	)		23		1,184
Provision for loan losses		44			—			—		44
Personnel expense		428			(15	)		—		413
Nonpersonnel expense		356			(19	)		—		337
Income from continuing operations before income taxes (TE)		526			(159	)		23		390
Income taxes and TE adjustments		168			(60	)		9		117
Income from continuing operations		358			(99	)		14		273
Loss from discontinued operations, net of taxes		(8	)		—			—		(8	)
Net income	$	350		$	(99	)	$	14	$	265
Diluted earnings per common share
Income from continuing operations	$	.89		$	(.25	)	$	.04	$	.68
Net income		.87			(.25	)		.04		.66

(a)	Adjustments reflect the financial effect of the McDonald Investments branch network, including a $171 million gain resulting from the February 9 sale, on Key’s results for the first quarter of 2007.
(b)	Adjustments include a loss of $49 million ($31 million after tax, $.08 per diluted common share) from the repositioning of the securities portfolio and a gain of $26 million ($17 million after tax, $.04 per diluted common share) from the settlement of the automobile residual value insurance litigation.
TE = Taxable Equivalent

          “The first quarter sales of the McDonald Investments branch network and the Champion Mortgage loan origination platform improve our risk profile and focus on the company’s core relationship businesses,” said Chairman and Chief Executive Officer Henry L. Meyer III. “During the quarter, we also repositioned the securities portfolio to respond to changing market conditions. We expect this change to enhance the company’s future performance, particularly in the event of a decline in interest rates.

          “The current rate environment has continued to pressure Key’s net interest margin and, although asset quality has declined slightly from a year ago, it is still very good compared to historical measures. We also are pleased to have resolved the automobile residual value insurance litigation during the first quarter.”

          Based on adjusted earnings of $0.68 per share for the first quarter, the company expects earnings to be in the range of $2.80 to $2.95 per share for the full year.

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 3

SUMMARY OF CONTINUING OPERATIONS

          Taxable-equivalent net interest income was $700 million for the first quarter of 2007, compared to $722 million for the year-ago quarter. Key’s net interest margin for the current quarter declined to 3.50% from 3.72% for the first three months of 2006. The reductions in net interest income and the net interest margin were due to tighter interest rate spreads on deposits caused by a continuation of the inverted yield curve, and a continued shift in deposit mix from transaction accounts and money market deposit accounts to higher-cost certificates of deposit. Additionally, as part of the sale of the McDonald Investments branch network, Key transferred approximately $1.3 billion of money market deposit accounts to the buyer. Average earning assets were up 3% from the year-ago quarter, due primarily to an increase in commercial loans.

          Compared to the fourth quarter of 2006, taxable-equivalent net interest income decreased by $44 million and the net interest margin declined by 16 basis points. During the fourth quarter of 2006, Key’s net interest margin benefited from a $16 million lease accounting adjustment resulting from a change in effective state tax rates, and an $8 million principal investing distribution received in the form of a dividend. These two items added approximately 12 basis points to the taxable-equivalent net interest margin for the fourth quarter. The level of average earning assets decreased slightly due to the annual securitization of education loans completed in the fourth quarter of 2006.

          Excluding the $171 million gain associated with the sale of the McDonald Investments branch network, the $49 million loss recorded in connection with the repositioning of the securities portfolio and the $26 million gain from the settlement of the automobile residual value insurance litigation, Key’s noninterest income was $506 million for the first quarter of 2007, compared to $481 million for the year-ago quarter. A $32 million improvement in principal investing results accounted for the increase. Income from investment banking and capital markets activities was down due to a $25 million gain recorded in the first quarter of 2006 from the initial public offering completed by the New York Stock Exchange.

          Compared to the fourth quarter of 2006, adjusted noninterest income decreased by $52 million. Normal seasonal fluctuations and the McDonald sale caused reductions in several components of noninterest income. These reductions were moderated by higher net gains from principal investing. Additionally, results for the fourth quarter of 2006 included a $24 million charge to miscellaneous income recorded in connection with the redemption of certain trust preferred securities.

          Key’s noninterest expense for the first quarter of 2007 was $784 million, compared to $752 million for the same period last year. Personnel expense rose by $28 million, due to higher salaries expense and stock-based compensation. Nonpersonnel expense was up $4 million, due to additional costs incurred in connection with the sale of the McDonald Investments branch network. These additional costs were offset in part by an $8 million reduction in Key’s liability for credit losses on lending-related commitments recorded during the first quarter.

          Compared to the fourth quarter of 2006, noninterest expense decreased by $25 million. Reductions in personnel expense, marketing expense, professional fees and net occupancy expense were offset in part by higher franchise taxes. In the fourth quarter of 2006, Key’s franchise taxes were a credit of $7 million as a result of settlements reached with regard to disputed amounts.

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 4

ASSET QUALITY

          Key’s provision for loan losses from continuing operations was $44 million for the first quarter of 2007, compared to $39 million for the year-ago quarter and $53 million for the fourth quarter of 2006.

          Net loan charge-offs for the quarter totaled $44 million, or 0.27% of average loans from continuing operations, compared to $39 million, or 0.24%, for the same period last year and $54 million, or 0.33%, for the previous quarter.

          At March 31, 2007, Key’s nonperforming loans totaled $254 million and represented 0.39% of period-end portfolio loans, compared to 0.33% at December 31, 2006, and 0.44% at March 31, 2006. At March 31, 2007, nonperforming assets totaled $353 million and represented 0.54% of portfolio loans, other real estate owned and other nonperforming assets, compared to 0.41% at December 31, 2006, and 0.48% at March 31, 2006. The increase in nonperforming assets during the first quarter of 2007 reflected a higher level of nonperforming credits in the Equipment Finance line of business. In addition, Key placed a real estate-related investment in Key’s Private Equity unit within the Real Estate Capital line of business on nonperforming status.

          Key’s allowance for loan losses was $944 million, or 1.44% of loans outstanding, at March 31, 2007, compared to $944 million, or 1.43%, at December 31, 2006, and $966 million, or 1.44%, at March 31, 2006.

CAPITAL

     Key’s capital ratios continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2007. Key’s tangible equity to tangible assets ratio was 6.97% at quarter end, compared to 7.01% at December 31, 2006, and 6.71% at March 31, 2006.

     Key repurchased 8.0 million of its common shares and reissued 3.3 million shares under employee benefit and dividend reinvestment plans during the first quarter of 2007. At March 31, 2007, Key had 22.0 million common 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	1Q07			4Q06			3Q06			2Q06			1Q06
Shares outstanding at beginning of period		399,153			402,748			402,672			405,273			406,624
Issuance of shares under employee benefit and dividend reinvestment plans		3,330			1,405			2,576			1,399			4,649
Repurchase of common shares		(8,000	)		(5,000	)		(2,500	)		(4,000	)		(6,000	)
Shares outstanding at end of period		394,483			399,153			402,748			402,672			405,273

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 5

LINE OF BUSINESS RESULTS

          The following table shows the contribution made by each major business group to Key’s taxable-equivalent revenue and income from continuing operations 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. Key’s line of business results for all periods presented reflect a new organizational structure that took effect January 1, 2007.

Major Business Groups

										Percent change 1Q07 vs.
dollars in millions	1Q07			4Q06			1Q06			4Q06			1Q06
Revenue from continuing operations (TE)
Community Banking	$	800		$	670		$	650			19.4	%		23.1	%
National Banking		605			678			584			(10.8	)		3.6
Other Segments		(20	)		(11	)		(7	)		(81.8	)		(185.7	)
Total Segments		1,385			1,337			1,227			3.6			12.9
Reconciling Items		(31	)		(35	)		(24	)		11.4			(29.2	)
Total	$	1,354		$	1,302		$	1,203			4.0	%		12.6	%
Income (loss) from continuing operations											`
Community Banking	$	198		$	97		$	103			104.1	%		92.2	%
National Banking		163			199			171			(18.1	)		(4.7	)
Other Segments		(9	)		2			—			N/M			N/M
Total Segments		352			298			274			18.1			28.5
Reconciling Items		6			13			—			(53.8	)		N/M
Total	$	358		$	311		$	274			15.1	%		30.7	%

TE = Taxable Equivalent, N/M = Not Meaningful

Community Banking

										Percent change 1Q07 vs.
dollars in millions	1Q07			4Q06			1Q06			4Q06			1Q06
Summary of operations
Net interest income (TE)	$	418		$	438		$	429			(4.6)	%		(2.6)	%
Noninterest income		382			232			221			64.7			72.9
Total revenue (TE)		800			670			650			19.4			23.1
Provision for loan losses		14			23			29			(39.1	)		(51.7	)
Noninterest expense		469			492			456			(4.7	)		2.9
Income before income taxes (TE)		317			155			165			104.5			92.1
Allocated income taxes and TE adjustments		119			58			62			105.2			91.9
Net income	$	198		$	97		$	103			104.1	%		92.2	%
Percent of consolidated income from continuing operations		55	%		31	%		38	%		N/A			N/A
Average balances
Loans and leases	$	26,426		$	26,667		$	26,765			(.9)	%		(1.3)	%
Total assets		29,240			29,616			29,817			(1.3	)		(1.9	)
Deposits		46,581			47,383			45,830			(1.7	)		1.6

TE = Taxable Equivalent, N/A = Not Applicable

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 6

Additional Community Banking Data

										Percent change 1Q07 vs.
dollars in millions	1Q07			4Q06			1Q06			4Q06			1Q06
Average deposits outstanding
Noninterest-bearing	$	7,737		$	8,083		$	8,097			(4.3)	%		(4.4)	%
Money market deposit accounts and other savings		21,257			22,238			21,978			(4.4	)		(3.3	)
Time		17,587			17,062			15,755			3.1			11.6
Total deposits	$	46,581		$	47,383		$	45,830			(1.7)	%		1.6	%
Home equity loans
Average balance	$	9,677		$	9,881		$	10,151
Weighted-average loan-to-value ratio		70	%		70	%		70	%
Percent first lien positions		59			59			61
Other data
On-line households / household penetration		687,263/53	%		682,955/53	%		631,523/51	%
Branches		950			950			945
Automated teller machines		1,447			2,050			2,169

Community Banking Summary of Operations

          Net income for Community Banking was $198 million for the first quarter of 2007, up from $103 million for the year-ago quarter. The improvement was attributable primarily to growth in noninterest income resulting from the gain associated with the sale of the McDonald Investments branch network during the first quarter of 2007. In addition, Community Banking experienced a lower provision for loan losses. The positive effects of these items were offset in part by a decrease in net interest income and higher noninterest expense.

          Taxable-equivalent net interest income decreased by $11 million, or 3%, from the first quarter of 2006. The decrease was attributable to a reduction in, and a tighter interest rate spread on, average earning assets, along with a continued shift from transaction accounts and money market deposit accounts to higher-cost certificates of deposit.

          Excluding the $171 million gain associated with the sale of the McDonald Investments branch network, noninterest income decreased by $10 million, or 5%, from the year-ago quarter. A reduction in brokerage commissions caused by the McDonald sale was offset in part by an increase in service charges on deposit accounts.

          The provision for loan losses decreased by $15 million, or 52%, as a result of lower net loan charge-offs and an improved credit risk profile.

          Noninterest expense grew by $13 million, or 3%, reflecting additional costs incurred in connection with the McDonald sale. Personnel expense and net occupancy expense also contributed to the growth.

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 7

National Banking

										Percent change 1Q07 vs.
dollars in millions	1Q07			4Q06			1Q06			4Q06			1Q06
Summary of operations
Net interest income (TE)	$	341		$	366		$	347			(6.8)	%		(1.7)	%
Noninterest income		264			312			237			(15.4	)		11.4
Total revenue (TE)		605			678			584			(10.8	)		3.6
Provision for loan losses		30			30			10			—			200.0
Noninterest expense		314			330			300			(4.8	)		4.7
Income from continuing operations before income taxes (TE)		261			318			274			(17.9	)		(4.7	)
Allocated income taxes and TE adjustments		98			119			103			(17.6	)		(4.9	)
Income from continuing operations		163			199			171			(18.1	)		(4.7	)
Income (loss) from discontinued operations, net of taxes		(8	)		(165	)		10			95.2			N/M
Net income	$	155		$	34		$	181			355.9	%		(14.4)	%
Percent of consolidated income from continuing operations		46	%		64	%		62	%		N/A			N/A
Average balances from continuing operations
Loans and leases	$	38,869		$	38,498		$	37,046			1.0	%		4.9	%
Loans held for sale		3,917			4,521			3,683			(13.4	)		6.4
Total assets		48,480			49,135			46,786			(1.3	)		3.6
Deposits		11,231			11,839			9,952			(5.1	)		12.9

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

National Banking Summary of Continuing Operations

          Income from continuing operations for National Banking was $163 million for the first quarter of 2007, compared to $171 million for the same period last year. A decrease in net interest income, along with increases in the provision for loan losses and noninterest expense, accounted for the reduction and more than offset an increase in noninterest income.

          Taxable-equivalent net interest income decreased by $6 million, or 2%, from the first quarter of 2006, due primarily to a tighter interest rate spread on average earning assets.

          Noninterest income for the first quarter of 2007 included a $26 million gain from the settlement of the automobile residual value insurance litigation. In the first quarter of 2006, income from investment banking and capital markets activities included a $25 million gain from the initial public offering completed by the New York Stock Exchange. Excluding these gains, noninterest income increased by $26 million, or 12%, from the first quarter of 2006. Higher income from operating leases, trust and investment services, and investment banking and capital markets activities drove the improvement.

          The provision for loan losses rose by $20 million, reflecting a higher level of net loan charge-offs.

          Noninterest expense grew by $14 million, or 5%, due to increases in personnel expense and costs associated with operating leases. These increases were partially offset by decreases in a variety of other expense categories.

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 8

Other Segments

     Other segments consist of Corporate Treasury and Key’s Principal Investing unit. These segments generated a net loss of $9 million for the first quarter of 2007, compared to net income of less than $1 million for the same period last year. A $49 million loss recorded in the current quarter in connection with the repositioning of the securities portfolio was offset in part by a $32 million improvement in principal investing results.

Line of Business Descriptions

Community Banking

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

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

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

National Banking

Real Estate 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 at least 50% of the debt service is provided by rental income from nonaffiliated third parties).

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.

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, Home Equity Services and Business Services.

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
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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.

Home Equity Services works with home improvement contractors to provide home equity and home improvement financing solutions.

Business Services provides payroll processing solutions for businesses of all sizes.

          Cleveland-based KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $93 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 950 branches and additional offices; a network of 1,447 ATMs; telephone banking centers (1.800.KEY2YOU); and a Web site,https://www.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 athttps://www.Key.com/irat 9:00 a.m. ET, on Tuesday, April 17, 2007. An audio replay of the call will be available through April 24.

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

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.

###

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 10

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

	Three months ended
	3-31-07			12-31-06			3-31-06
Summary of operations
Net interest income (TE)	$	700		$	744		$	722
Noninterest income		654			558			481
Total revenue (TE)		1,354			1,302			1,203
Provision for loan losses		44			53			39
Noninterest expense		784			809			752
Income from continuing operations before cumulative effect of accounting change		358			311			274
Income (loss) from discontinued operations, net of taxes		(8	)		(165	)		10
Net income		350			146			289
Per common share
Income from continuing operations before cumulative effect of accounting change	$	.90		$	.77		$	.67
Income from continuing operations before cumulative effect of accounting change — assuming dilution		.89			.76			.66
Income (loss) from discontinued operations		(.02	)		(.41	)		.02
Income (loss) from discontinued operations — assuming dilution		(.02	)		(.40	)		.02
Net income		.88			.36			.71
Net income — assuming dilution		.87			.36			.70
Cash dividends declared		.365			.345			.345
Book value at period end		19.57			19.30			18.85
Market price at period end		37.47			38.03			36.80
Performance ratios — from continuing operations
Return on average total assets		1.58	%		1.33	%		1.23	%
Return on average equity		19.06			15.63			14.67
Net interest margin (TE)		3.50			3.66			3.72
Performance ratios — from consolidated operations
Return on average total assets		1.54	%		.61	%		1.26	%
Return on average equity		18.63			7.34			15.48
Net interest margin (TE)		3.51			3.69			3.77
Capital ratios at period end
Equity to assets		8.28	%		8.34	%		8.18	%
Tangible equity to tangible assets		6.97			7.01			6.71
Tier 1 risk-based capitala		8.14			8.24			7.64
Total risk-based capitala		12.29			12.43			11.91
Leveragea		9.20			8.98			8.52
Asset quality
Net loan charge-offs	$	44		$	54		$	39
Net loan charge-offs to average loans from continuing operations		.27	%		.33	%		.24	%
Allowance for loan losses	$	944		$	944		$	966
Allowance for loan losses to period-end loans		1.44	%		1.43	%		1.44	%
Allowance for loan losses to nonperforming loans		371.65			439.07			327.46
Nonperforming loans at period end	$	254		$	215		$	295
Nonperforming assets at period end		353			273			320
Nonperforming loans to period-end portfolio loans		.39	%		.33	%		.44	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.54			.41			.48
Trust and brokerage assets
Assets under management	$	82,388		$	84,699		$	79,558
Nonmanaged and brokerage assets b		32,838			56,292			56,944
Other data
Average full-time equivalent employees		19,801			20,100			19,694
Branches		950			950			945
Taxable-equivalent adjustment	$	21		$	32		$	28

(a)	3-31-07 ratio is estimated.
(b)	On February 9, 2007, Key sold the McDonald Investments branch network.
TE = Taxable Equivalent

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 11

Consolidated Balance Sheets
(dollars in millions)

	3-31-07			12-31-06			3-31-06
Assets
Loans	$	65,711		$	65,826		$	66,980
Loans held for sale		4,175			3,637			3,631
Investment securities		38			41			46
Securities available for sale		7,789			7,827			7,086
Short-term investments		2,084			1,407			1,974
Other investments		1,466			1,352			1,370
Total earning assets		81,263			80,090			81,087
Allowance for loan losses		(944	)		(944	)		(966	)
Cash and due from banks		2,052			2,264			2,486
Premises and equipment		590			595			564
Operating lease assets		1,074			1,124			969
Goodwill		1,202			1,202			1,355
Other intangible assets		115			120			120
Corporate-owned life insurance		2,805			2,782			2,711
Derivative assets		1,132			1,091			947
Accrued income and other assets		3,930			4,013			4,118
Total assets	$	93,219		$	92,337		$	93,391
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	23,317		$	24,340		$	25,271
Savings deposits		1,654			1,642			1,850
Certificates of deposit ($100,000 or more)		6,094			5,941			5,411
Other time deposits		12,086			11,956			11,364
Total interest-bearing		43,151			43,879			43,896
Noninterest-bearing		13,473			13,553			12,748
Deposits in foreign office — interest-bearing		3,149			1,684			2,758
Total deposits		59,773			59,116			59,402
Federal funds purchased and securities sold under repurchase agreements		5,770			3,643			3,511
Bank notes and other short-term borrowings		1,108			1,192			2,508
Derivative liabilities		870			922			1,048
Accrued expense and other liabilities		4,918			5,228			5,252
Long-term debt		13,061			14,533			14,032
Total liabilities		85,500			84,634			85,753
Shareholders’ equity
Preferred stock		—			—			—
Common shares		492			492			492
Capital surplus		1,614			1,602			1,535
Retained earnings		8,528			8,377			8,031
Treasury stock, at cost		(2,801	)		(2,584	)		(2,299	)
Accumulated other comprehensive loss		(114	)		(184	)		(121	)
Total shareholders’ equity		7,719			7,703			7,638
Total liabilities and shareholders’ equity	$	93,219		$	92,337		$	93,391
Common shares outstanding (000)		394,483			399,153			405,273

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 12

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

	Three months ended
	3-31-07			12-31-06			3-31-06
Interest income
Loans	$	1,161		$	1,187		$	1,060
Loans held for sale		75			90			68
Investment securities		1			—			—
Securities available for sale		100			96			83
Short-term investments		18			16			15
Other investments		13			24			25
Total interest income		1,368			1,413			1,251
Interest expense
Deposits		433			440			330
Federal funds purchased and securities sold under repurchase agreements		49			37			20
Bank notes and other short-term borrowings		11			19			24
Long-term debt		196			205			183
Total interest expense		689			701			557
Net interest income		679			712			694
Provision for loan losses		44			53			39
Net interest income after provision for loan losses		635			659			655
Noninterest income
Trust and investment services income		125			142			135
Service charges on deposit accounts		75			77			72
Investment banking and capital markets income		44			69			60
Operating lease income		64			63			52
Letter of credit and loan fees		38			55			40
Corporate-owned life insurance income		25			31			25
Electronic banking fees		24			27			24
Net gains from loan securitizations and sales		9			42			10
Net securities gains (losses)		(47	)		3			1
Gain on sale of McDonald Investments branch network		171			—			—
Other income		126			49			62
Total noninterest income		654			558			481
Noninterest expense
Personnel		428			447			400
Net occupancy		63			68			61
Computer processing		51			55			56
Operating lease expense		52			50			41
Professional fees		26			33			33
Equipment		25			24			26
Marketing		19			27			15
Other expense		120			105			120
Total noninterest expense		784			809			752
Income from continuing operations before income taxes and cumulative effect of accounting change		505			408			384
Income taxes		147			97			110
Income from continuing operations before cumulative effect of accounting change		358			311			274
Income (loss) from discontinued operations, net of taxes		(8	)		(165	)		10
Income before cumulative effect of accounting change		350			146			284
Cumulative effect of change in accounting for forfeited stock-based awards, net of taxes		—			—			5
Net income	$	350		$	146		$	289
Per common share:
Income from continuing operations before cumulative effect of accounting change	$	.90		$	.77		$	.67
Income before cumulative effect of accounting change		.88			.36			.70
Net income		.88			.36			.71
Per common share — assuming dilution:
Income from continuing operations before cumulative effect of accounting change	$	.89		$	.76		$	.66
Income before cumulative effect of accounting change		.87			.36			.69
Net income		.87			.36			.70
Cash dividends declared per common share	$	.365		$	.345		$	.345
Weighted-average common shares outstanding (000)		397,875			402,329			407,386
Weighted-average common shares and potential common shares outstanding (000)		403,478			407,828			413,140

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 13

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

	First Quarter 2007								Fourth Quarter 2006								First Quarter 2006
	Average								Average								Average
	Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate			Balance			Interest		Yield/Rate
Assets
Loans:a,b
Commercial, financial and agricultural	$	21,562		$	392		7.38	%	$	21,384		$	400		7.42	%	$	21,720		$	357		6.66	%
Real estate — commercial mortgage		8,426			163		7.83			8,399			167		7.86			8,089			144		7.23
Real estate — construction		8,227			166		8.20			8,347			174		8.25			7,312			138		7.66
Commercial lease financing		10,094			146		5.78			9,891			160		6.47			9,581			143		5.98
Total commercial loans		48,309			867		7.26			48,021			901		7.44			46,702			782		6.78
Real estate — residential		1,444			24		6.60			1,428			24		6.59			1,450			23		6.33
Home equity		10,706			191		7.22			10,896			197		7.22			10,971			184		6.82
Consumer — direct		1,450			36		10.15			1,557			34		8.63			1,730			41		9.66
Consumer — indirect		3,760			64		6.79			3,671			62		6.85			3,367			57		6.66
Total consumer loans		17,360			315		7.32			17,552			317		7.21			17,518			305		7.03
Total loans		65,669			1,182		7.28			65,573			1,218		7.38			64,220			1,087		6.85
Loans held for sale		3,940			75		7.70			4,547			90		7.86			3,692			68		7.44
Investment securitiesa		39			1		7.21			38			1		7.68			61			1		6.34
Securities available for sale c		7,548			100		5.27			7,765			96		4.88			7,148			83		4.61
Short-term investments		1,607			18		4.55			1,584			16		4.04			1,746			15		3.61
Other investments c		1,400			13		3.65			1,351			24		6.76			1,336			25		7.13
Total earning assets		80,203			1,389		6.99			80,858			1,445		7.09			78,203			1,279		6.60
Allowance for loan losses		(942	)							(941	)							(958	)
Accrued income and other assets		12,835								13,129								12,998
Total assets	$	92,096							$	93,046							$	90,243
Liabilities
NOW and money market deposit accounts	$	23,424			177		3.06		$	25,136			198		3.13		$	24,452			145		2.40
Savings deposits		1,629			1		.19			1,651			1		.19			1,812			1		.32
Certificates of deposit ($100,000 or more)d		6,151			76		5.03			6,013			75		4.93			5,407			58		4.34
Other time deposits		12,063			138		4.64			11,921			136		4.50			11,282			104		3.73
Deposits in foreign office e		3,258			41		5.12			2,245			30		5.55			2,030			22		4.40
Total interest-bearing deposits		46,525			433		3.77			46,966			440		3.72			44,983			330		2.97
Federal funds purchased and securities sold under repurchase agreements e		3,903			49		5.04			2,816			37		5.21			2,025			20		3.98
Bank notes and other short-term borrowings		1,113			11		3.98			1,814			19		4.17			2,550			24		3.89
Long-term debt d,e		13,617			196		5.90			14,092			205		5.80			13,991			183		5.27
Total interest-bearing liabilities		65,158			689		4.29			65,688			701		4.24			63,549			557		3.55
Noninterest-bearing deposits		13,237								13,424								12,692
Accrued expense and other liabilities		6,083								6,041								6,429
Total liabilities		84,478								85,153								82,670
Shareholders’ equity		7,618								7,893								7,573
Total liabilities and shareholders’ equity	$	92,096							$	93,046							$	90,243
Interest rate spread (TE)							2.70	%							2.85	%							3.05	%
Net interest income (TE) and net interest margin (TE)					700		3.50	%					744		3.66	%					722		3.72	%
TE adjustmenta					21								32								28
Net interest income, GAAP basis				$	679							$	712							$	694

(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.
(e)	Results from continuing operations exclude the dollar amount of liabilities assumed necessary to support interest-earning assets held by the discontinued Champion Mortgage finance business. The interest expense related to these liabilities, which also is excluded from continuing operations, was calculated using a matched funds transfer pricing methodology.
TE = Taxable Equivalent
GAAP = U.S. generally accepted accounting principles

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 14

Noninterest Income
(in millions)

	Three months ended
	3-31-07			12-31-06		3-31-06
Trust and investment services incomea	$	125		$	142	$	135
Service charges on deposit accounts		75			77		72
Investment banking and capital markets incomea		44			69		60
Operating lease income		64			63		52
Letter of credit and loan fees		38			55		40
Corporate-owned life insurance income		25			31		25
Electronic banking fees		24			27		24
Net gains from loan securitizations and sales		9			42		10
Net securities gains (losses)		(47	)		3		1
Gain on sale of McDonald Investments branch network		171			—		—
Other income:
Insurance income		14			15		14
Loan securitization servicing fees		5			5		5
Credit card fees		3			3		3
Net gains (losses) from principal investing		29			5		(3	)
Miscellaneous income		75			21		43
Total other income		126			49		62
Total noninterest income	$	654		$	558	$	481

(a) Additional detail provided in tables below.

Trust and Investment Services Income

(in millions)

	Three months ended
	3-31-07		12-31-06		3-31-06
Brokerage commissions and fee income	$	40	$	58	$	62
Personal asset management and custody fees		40		40		39
Institutional asset management and custody fees		45		44		34
Total trust and investment services income	$	125	$	142	$	135

Investment Banking and Capital Markets Income

(in millions)

	Three months ended
	3-31-07		12-31-06		3-31-06
Investment banking income	$	21	$	43	$	22
Dealer trading and derivatives income		8		10		7
Income from other investments		5		6		21
Foreign exchange income		10		10		10
Total investment banking and capital markets income	$	44	$	69	$	60

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 15

Noninterest Expense

(dollars in millions)

	Three months ended
	3-31-07			12-31-06			3-31-06
Personnela	$	428		$	447		$	400
Net occupancy		63			68			61
Computer processing		51			55			56
Operating lease expense		52			50			41
Professional fees		26			33			33
Equipment		25			24			26
Marketing		19			27			15
Other expense:
Postage and delivery		12			12			13
Franchise and business taxes		9			(7	)		10
Telecommunications		7			7			7
Credit for losses on lending-related commitments		(8	)		(6	)		—
Miscellaneous expense		100			99			90
Total other expense		120			105			120
Total noninterest expense	$	784		$	809		$	752
Average full-time equivalent employees		19,801			20,100			19,694

(a) Additional detail provided in table below.

Personnel Expense

(in millions)

	Three months ended
	3-31-07		12-31-06		3-31-06
Salaries	$	245	$	238	$	229
Incentive compensation		75		120		77
Employee benefits		82		64		80
Stock-based compensation		24		17		14
Severance		2		8		—
Total personnel expense	$	428	$	447	$	400

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 16

Loan Composition

(dollars in millions)

							Percent change 3-31-07 vs.
	3-31-07		12-31-06		3-31-06		12-31-06			3-31-06
Commercial, financial and agricultural	$	21,476	$	21,412	$	21,681		.3	%		(.9)	%
Commercial real estate:
Commercial mortgage		8,519		8,426		8,145		1.1			4.6
Construction		8,355		8,209		7,507		1.8			11.3
Total commercial real estate loans		16,874		16,635		15,652		1.4			7.8
Commercial lease financing		10,036		10,259		9,668		(2.2	)		3.8
Total commercial loans		48,386		48,306		47,001		.2			2.9
Real estate — residential mortgage		1,440		1,442		1,435		(.1	)		.3
Home equity a		10,669		10,826		13,429		(1.5	)		(20.6	)
Consumer — direct		1,375		1,536		1,691		(10.5	)		(18.7	)
Consumer — indirect:
Marine		3,203		3,077		2,804		4.1			14.2
Other		638		639		620		(.2	)		2.9
Total consumer — indirect loans		3,841		3,716		3,424		3.4			12.2
Total consumer loans		17,325		17,520		19,979		(1.1	)		(13.3	)
Total loans	$	65,711	$	65,826	$	66,980		(.2)	%		(1.9)	%

(a) On August 1, 2006, Key transferred $2.5 billion of home equity loans from the loan portfolio to loans held for sale in connection with the November 2006 sale of the Champion Mortgage loan portfolio.

Loans Held for Sale Composition

(dollars in millions)

							Percent change 3-31-07 vs.
	3-31-07		12-31-06		3-31-06		12-31-06			3-31-06
Commercial, financial and agricultural	$	68	$	47	$	189		44.7	%		(64.0)	%
Real estate — commercial mortgage		1,224		946		411		29.4			197.8
Real estate — construction		163		36		62		352.8			162.9
Commercial lease financing		1		3		4		(66.7	)		(75.0	)
Real estate — residential mortgage		26		21		14		23.8			85.7
Home equity		—		180		1		(100.0	)		(100.0	)
Education		2,681		2,390		2,930		12.2			(8.5	)
Automobile		12		14		20		(14.3	)		(40.0	)
Total loans held for sale	$	4,175	$	3,637	$	3,631		14.8	%		15.0	%

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 17

Summary of Loan Loss Experience

(dollars in millions)

	Three months ended
	3-31-07			12-31-06			3-31-06
Average loans outstanding from continuing operations	$	65,669		$	65,573		$	64,220
Allowance for loan losses at beginning of period	$	944		$	944		$	966
Loans charged off:
Commercial, financial and agricultural		17			18			24
Real estate — commercial mortgage		6			15			3
Real estate — construction		1			1			2
Total commercial real estate loans		7			16			5
Commercial lease financing		13			13			6
Total commercial loans		37			47			35
Real estate — residential mortgage		1			2			1
Home equity		8			8			8
Consumer — direct		7			7			10
Consumer — indirect		11			10			11
Total consumer loans		27			27			30
		64			74			65
Recoveries:
Commercial, financial and agricultural		7			7			12
Real estate — commercial mortgage		3			2			1
Commercial lease financing		3			4			5
Total commercial loans		13			13			18
Home equity		1			2			2
Consumer — direct		2			2			2
Consumer — indirect		4			3			4
Total consumer loans		7			7			8
		20			20			26
Net loan charge-offs		(44	)		(54	)		(39	)
Provision for loan losses from continuing operations		44			53			39
Foreign currency translation adjustment		—			1			—
Allowance for loan losses at end of period	$	944		$	944		$	966
Net loan charge-offs to average loans from continuing operations		.27	%		.33	%		.24	%
Allowance for loan losses to period-end loans		1.44			1.43			1.44
Allowance for loan losses to nonperforming loans		371.65			439.07			327.46

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 18

Changes in Liability for Credit Losses on Lending-Related Commitments

(in millions)

	Three months ended
	3-31-07			12-31-06			3-31-06
Balance at beginning of period	$	53		$	59		$	59
Credit for losses on lending- related commitments		(8	)		(6	)		—
Balance at end of perioda	$	45		$	53		$	59

Summary of Nonperforming Assets and Past Due Loans

(dollars in millions)

	3-31-07			12-31-06			9-30-06			6-30-06			3-31-06
Commercial, financial and agricultural	$	70		$	38		$	42		$	76		$	68
Real estate — commercial mortgage		44			48			36			35			37
Real estate — construction		10			10			37			4			4
Total commercial real estate loans		54			58			73			39			41
Commercial lease financing		31			22			20			29			29
Total commercial loans		155			118			135			144			138
Real estate — residential mortgage		32			34			34			36			48
Home equityb		52			50			46			90			97
Consumer — direct		2			2			2			3			6
Consumer — indirect		13			11			6			6			6
Total consumer loans		99			97			88			135			157
Total nonperforming loans		254			215			223			279			295
Nonperforming loans held for saleb		3			3			56			1			2
OREO		42			57			52			26			21
Allowance for OREO losses		(2	)		(3	)		(3	)		(1	)		(1	)
OREO, net of allowance		40			54			49			25			20
Other nonperforming assets		56	c		1			1			3			3
Total nonperforming assets	$	353		$	273		$	329		$	308		$	320
Accruing loans past due 90 days or more	$	146		$	120		$	125		$	119		$	107
Accruing loans past due 30 through 89 days		626			644			715			600			498
Nonperforming loans to period-end portfolio loans		.39	%		.33	%		.34	%		.41	%		.44	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.54			.41			.50			.46			.48

Summary of Changes in Nonperforming Loans

(in millions)

	1Q07			4Q06			3Q06			2Q06			1Q06
Balance at beginning of period	$	215		$	223		$	279		$	295		$	277
Loans placed on nonaccrual status		129			115			134			98			100
Charge-offs		(61	)		(74	)		(70	)		(59	)		(65	)
Loans sold		—			(5	)		(22	)		(6	)		(2	)
Payments		(7	)		(23	)		(43	)		(45	)		(15	)
Transfer to held-for-sale portfoliob		—			—			(55	)		—			—
Transfers to OREO		(9	)		(12	)		—			(4	)		—
Loans returned to accrual status		(13	)		(9	)		—			—			—
Balance at end of period	$	254		$	215		$	223		$	279		$	295

(a)	Included in “accrued expenses and other liabilities” on the consolidated balance sheet.
(b)	On August 1, 2006, Key transferred approximately $55 million of home equity loans from nonperforming loans to nonperforming loans held for sale in connection with an expected sale of the Champion Mortgage finance business.
(c)	Primarily a real estate-related investment in Key’s Private Equity unit within the Real Estate Capital line of business.

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 19

Line of Business Results
(dollars in millions)

Community Banking

																Percent change 1Q07 vs.
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
Summary of operations
Total revenue (TE)	$	800		$	670		$	679		$	672		$	650			19.4	%		23.1	%
Provision for loan losses		14			23			23			21			29			(39.1	)		(51.7	)
Noninterest expense		469			492			485			491			456			(4.7	)		2.9
Net income		198			97			107			100			103			104.1			92.2
Average loans and leases		26,426			26,667			26,767			26,830			26,765			(.9	)		(1.3	)
Average deposits		46,581			47,383			46,976			46,675			45,830			(1.7	)		1.6
Net loan charge-offs		19			24			23			22			28			(20.8	)		(32.1	)
Return on average allocated equity		32.66	%		15.41	%		16.93	%		16.10	%		16.67	%		N/A			N/A
Average full-time equivalent employees		8,619			8,805			8,915			8,782			8,628			(2.1	)		(.1	)
Supplementary information (lines of business)
Regional Banking
Total revenue (TE)	$	707		$	571		$	578		$	572		$	554			23.8	%		27.6	%
Provision for loan losses		18			19			19			19			22			(5.3	)		(18.2	)
Noninterest expense		420			444			436			438			407			(5.4	)		3.2
Net income		168			67			77			72			78			150.7			115.4
Average loans and leases		18,445			18,628			18,773			18,816			18,817			(1.0	)		(2.0	)
Average deposits		43,006			43,707			43,431			43,115			42,246			(1.6	)		1.8
Net loan charge-offs		18			19			19			21			22			(5.3	)		(18.2	)
Return on average allocated equity		39.29	%		15.03	%		17.24	%		16.49	%		17.90	%		N/A			N/A
Average full-time equivalent employees		8,296			8,484			8,595			8,454			8,318			(2.2	)		(.3	)
Commercial Banking
Total revenue (TE)	$	93		$	99		$	101		$	100		$	96			(6.1)	%		(3.1)	%
Provision for loan losses		(4	)		4			4			2			7			N/M			N/M
Noninterest expense		49			48			49			53			49			2.1			—
Net income		30			30			30			28			25			—			20.0
Average loans and leases		7,981			8,039			7,994			8,014			7,948			(.7	)		.4
Average deposits		3,575			3,676			3,545			3,560			3,584			(2.7	)		(.3	)
Net loan charge-offs		1			5			4			1			6			(80.0	)		(83.3	)
Return on average allocated equity		16.78	%		16.35	%		16.19	%		15.16	%		13.72	%		N/A			N/A
Average full-time equivalent employees		323			321			320			328			310			.6			4.2

KeyCorp Reports First Quarter 2007 Earnings
April 17, 2007
Page 20

Line of Business Results (continued)

(dollars in millions)

National Banking

																Percent change 1Q07 vs.
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
Summary of operations
Total revenue (TE)	$	605		$	678		$	596		$	596		$	584			(10.8)	%		3.6	%
Provision for loan losses		30			30			12			2			10			—			200.0
Noninterest expense		314			330			306			313			300			(4.8	)		4.7
Income from continuing operations		163			199			174			176			171			(18.1	)		(4.7	)
Net income		155			34			181			181			181			355.9			(14.4	)
Average loans and leasesa		38,869			38,498			37,898			37,730			37,046			1.0			4.9
Average loans held for salea		3,917			4,521			4,553			3,821			3,683			(13.4	)		6.4
Average depositsa		11,231			11,839			11,066			10,633			9,952			(5.1	)		12.9
Net loan charge-offsa		25			30			20			12			11			(16.7	)		127.3
Return on average allocated equitya		16.44	%		19.87	%		17.79	%		18.46	%		18.20	%		N/A			N/A
Return on average allocated equity		15.63			3.20			17.40			17.85			18.07			N/A			N/A
Average full-time equivalent employees		4,219			4,313			4,326			4,231			4,231			(2.2	)		(.3	)
Supplementary information (lines of business)
Real Estate Capital
Total revenue (TE)	$	167		$	189		$	170		$	176		$	156			(11.6)	%		7.1	%
Provision for loan losses		1			18			7			—			2			(94.4	)		(50.0	)
Noninterest expense		72			70			70			72			64			2.9			12.5
Net income		59			63			58			65			56			(6.3	)		5.4
Average loans and leases		12,755			12,931			12,854			12,719			12,467			(1.4	)		2.3
Average loans held for sale		1,145			1,125			1,022			692			577			1.8			98.4
Average deposits		4,297			4,096			3,598			3,467			3,214			4.9			33.7
Net loan charge-offs		1			8			—			2			2			(87.5	)		(50.0	)
Return on average allocated equity		19.28	%		20.40	%		19.05	%		21.80	%		19.33	%		N/A			N/A
Average full-time equivalent employees		971			957			970			980			981			1.5			(1.0	)
Equipment Finance
Total revenue (TE)	$	134		$	146		$	137		$	136		$	124			(8.2)	%		8.1	%
Provision for loan losses		13			7			11			2			3			85.7			333.3
Noninterest expense		86			77			81			76			73			11.7			17.8
Net income		22			39			28			36			30			(43.6	)		(26.7	)
Average loans and leases		10,479			10,222			10,100			9,871			9,569			2.5			9.5
Average loans held for sale		4			33			6			34			8			(87.9	)		(50.0	)
Average deposits		13			15			19			14			15			(13.3	)		(13.3	)
Net loan charge-offs		13			14			11			3			3			(7.1	)		333.3
Return on average allocated equity		10.09	%		17.72	%		12.78	%		17.13	%		14.57	%		N/A			N/A
Average full-time equivalent employees		952			938			927			915			935			1.5			1.8
Institutional and Capital Markets
Total revenue (TE)	$	183		$	223		$	191		$	191		$	209			(17.9)	%		(12.4)	%
Provision for loan losses		—			(5	)		3			(3	)		(5	)		100.0			100.0
Noninterest expense		115			136			112			117			117			(15.4	)		(1.7	)
Net income		42			57			48			48			60			(26.3	)		(30.0	)
Average loans and leases		7,436			7,521			7,390			7,601			7,832			(1.1	)		(5.1	)
Average loans held for sale		140			387			454			139			112			(63.8	)		25.0
Average deposits		6,491			7,285			6,933			6,676			6,249			(10.9	)		3.9
Net loan charge-offs (recoveries)		1			(2	)		3			—			(4	)		N/M			N/M
Return on average allocated equity		14.36	%		18.97	%		16.73	%		17.27	%		21.48	%		N/A			N/A
Average full-time equivalent employees		1,350			1,375			1,385			1,296			1,294			(1.8	)		4.3
Consumer Finance
Total revenue (TE)	$	121		$	120		$	98		$	93		$	95			.8	%		27.4	%
Provision for loan losses		16			10			(9	)		3			10			60.0			60.0
Noninterest expense		41			47			43			48			46			(12.8	)		(10.9	)
Income from continuing operations		40			40			40			27			25			—			60.0
Net income (loss)		32			(125	)		47			32			35			N/M			(8.6	)
Average loans and leasesa		8,199			7,824			7,554			7,539			7,178			4.8			14.2
Average loans held for salea		2,628			2,976			3,071			2,956			2,986			(11.7	)		(12.0	)
Average depositsa		430			443			516			476			474			(2.9	)		(9.3	)
Net loan charge-offsa		10			10			6			7			10			—			—
Return on average allocated equitya		22.82	%		23.20	%		23.83	%		16.14	%		15.20	%		N/A			N/A
Return on average allocated equity		18.25			(53.67	)		20.45			14.04			15.43			N/A			N/A
Average full-time equivalent employees		946			1,043			1,044			1,040			1,021			(9.3	)		(7.3	)

(a)	From continuing operations.
TE = Taxable Equivalent
N/A = Not Applicable
N/M = Not Meaningful