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

EXHIBIT 99.3 (1 of 2)

KeyCorp
January 22, 2008

Consolidated Balance Sheets
(dollars in millions)

	12-31-07			9-30-07			12-31-06
Assets
Loans	$	70,823		$	68,999		$	65,826
Loans held for sale		4,736			4,791			3,637
Securities available for sale		7,860			7,915			7,827
Held-to-maturity securities		28			36			41
Trading account assets		1,056			1,060			912
Short-term investments		800			663			495
Other investments		1,538			1,509			1,352
Total earning assets		86,841			84,973			80,090
Allowance for loan losses		(1,200	)		(955	)		(944	)
Cash and due from banks		1,814			2,016			2,264
Premises and equipment		681			631			595
Operating lease assets		1,128			1,135			1,124
Goodwill		1,252			1,202			1,202
Other intangible assets		123			105			120
Corporate-owned life insurance		2,872			2,845			2,782
Derivative assets		2,205			1,497			1,091
Accrued income and other assets		4,267			3,917			4,013
Total assets	$	99,983		$	97,366		$	92,337
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	27,635		$	24,198		$	24,340
Savings deposits		1,513			1,544			1,642
Certificates of deposit ($100,000 or more)		6,982			6,672			5,941
Other time deposits		11,615			11,403			11,956
Total interest-bearing deposits		47,745			43,817			43,879
Noninterest-bearing deposits		11,028			14,003			13,553
Deposits in foreign office — interest-bearing		4,326			5,894			1,684
Total deposits		63,099			63,714			59,116
Federal funds purchased and securities sold under repurchase agreements		3,927			5,398			3,643
Bank notes and other short-term borrowings		6,453			2,743			1,192
Derivative liabilities		1,340			1,063			922
Accrued expense and other liabilities		5,461			5,079			5,228
Long-term debt		11,957			11,549			14,533
Total liabilities		92,237			89,546			84,634
Shareholders’ equity
Preferred stock		—			—			—
Common shares		492			492			492
Capital surplus		1,623			1,617			1,602
Retained earnings		8,522			8,788			8,377
Treasury stock, at cost		(3,021	)		(3,023	)		(2,584	)
Accumulated other comprehensive income (loss)		130			(54	)		(184	)
Total shareholders’ equity		7,746			7,820			7,703
Total liabilities and shareholders’ equity	$	99,983		$	97,366		$	92,337
Common shares outstanding (000)		388,793			388,708			399,153

EXHIBIT 99.3 (2 of 2)

KeyCorp
January 22, 2008

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

	Three months ended									Twelve months ended
	12-31-07			9-30-07			12-31-06			12-31-07			12-31-06
Interest income
Loans	$	1,205		$	1,209		$	1,187		$	4,751		$	4,561
Loans held for sale		89			91			90			337			325
Securities available for sale		115			106			96			427			347
Held-to-maturity securities		1			—			—			2			2
Trading account assets		12			11			8			38			30
Short-term investments		13			5			8			37			33
Other investments		12			12			24			52			82
Total interest income		1,447			1,434			1,413			5,644			5,380
Interest expense
Deposits		483			482			440			1,845			1,576
Federal funds purchased and securities sold under repurchase agreements		45			55			37			208			107
Bank notes and other short-term borrowings		45			30			19			104			94
Long-term debt		164			173			205			718			788
Total interest expense		737			740			701			2,875			2,565
Net interest income		710			694			712			2,769			2,815
Provision for loan losses		363			69			53			529			150
Net interest income after provision for loan losses		347			625			659			2,240			2,665
Noninterest income
Trust and investment services income		131			119			142			490			553
Service charges on deposit accounts		90			88			77			337			304
Investment banking and capital markets income		12			9			69			117			230
Operating lease income		72			70			63			272			229
Letter of credit and loan fees		58			51			55			192			188
Corporate-owned life insurance income		37			27			31			121			105
Electronic banking fees		25			25			27			99			105
Net (losses) gains from loan securitizations and sales		(6	)		(53	)		42			(17	)		76
Net securities gains (losses)		6			4			3			(35	)		1
Net gains from principal investing		6			9			5			134			53
Gain from sale of McDonald Investments branch network		—			—			—			171			—
Other income		57			89			44			348			283
Total noninterest income		488			438			558			2,229			2,127
Noninterest expense
Personnel		399			383			447			1,621			1,692
Net occupancy		64			60			68			246			250
Computer processing		52			49			55			201			212
Operating lease expense		59			58			50			224			184
Professional fees		38			27			33			117			134
Equipment		25			22			24			96			102
Marketing		16			21			27			76			97
Other expense		243			133			105			667			478
Total noninterest expense		896			753			809			3,248			3,149
(Loss) income from continuing operations before income taxes and cumulative effect of accounting change		(61	)		310			408			1,221			1,643
Income taxes		(83	)		86			97			280			450
Income from continuing operations before cumulative effect of accounting change		22			224			311			941			1,193
Income (loss) from discontinued operations, net of taxes		3			(14	)		(165	)		(22	)		(143	)
Income before cumulative effect of accounting change		25			210			146			919			1,050
Cumulative effect of change in accounting for forfeited stock-based awards, net of taxes		—			—			—			—			5
Net income	$	25		$	210		$	146		$	919		$	1,055
Per common share:
Income from continuing operations before cumulative effect of accounting change	$	.06		$	.58		$	.77		$	2.40		$	2.95
Income before cumulative effect of accounting change		.06			.54			.36			2.35			2.60
Net income		.06			.54			.36			2.35			2.61
Per common share — assuming dilution:
Income from continuing operations before cumulative effect of accounting change	$	.06		$	.57		$	.76		$	2.38		$	2.91
Income before cumulative effect of accounting change		.06			.54			.36			2.32			2.56
Net income		.06			.54			.36			2.32			2.57
Cash dividends declared per common share	$	.74		$	.365		$	.345		$	1.835		$	1.38
Weighted-average common shares outstanding (000)		388,841			389,319			402,329			391,988			404,490
Weighted-average common shares and potential common shares outstanding (000)		389,911			393,164			407,828			395,823			410,222