 KeyCorp Third Quarter 2013 Earnings Review October 16, 2013 Beth E. Mooney Chairman and Chief Executive Officer Don Kimble Chief Financial Officer Exhibit 99.2 |
 2 FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION DISCLOSURE This presentation contains forward-looking statements, including statements about our financial condition, results of operations, asset quality trends, capital levels and profitability. Forward-looking statements can often be identified by words such as “outlook,” “goal,” “objective,” “plan,” “expect,” “anticipate,” “intend,” “project,” “believe,” or “estimate.” Forward-looking statements represent management’s current expectations and forecasts regarding future events. If underlying assumptions prove to be inaccurate or unknown risks or uncertainties arise, actual results could vary materially from these projections or expectations. Risks and uncertainties include but are not limited to: (1) continued strain on the global financial markets; (2) the slow progress of the U.S. economic recovery; changes in trade, monetary and fiscal policies; (3) our ability to anticipate interest rate changes correctly and manage interest rate risk; (4) changes in local, regional and international business, economic or political conditions; (5) regulatory initiatives in the U.S., including the Dodd-Frank Act, subjecting us to new and more stringent regulatory requirements; (6) the increase in unemployment or deterioration in real estate asset values or their failure to recover for an extended period of time; (7) adverse changes in credit quality trends; (8) our ability to determine accurate values of certain assets and liabilities; (9) adverse behaviors in securities, public debt, and capital markets ; (10) unanticipated changes in our liquidity position, including but not limited to, changes in the cost of liquidity, our ability to enter the financial markets and to secure alternative funding sources; (11) the soundness of other financial institutions; (12) our ability to satisfy new capital and liquidity standards such as those imposed by the Dodd-Frank Act and those adopted by the Basel Committee; (13) our ability to receive dividends from our subsidiary, KeyBank; (14) downgrades in our credit ratings and the credit ratings of KeyBank; (15) our ability to timely and effectively implement our strategic initiatives; (16) operational or risk management failures; breaches of security or failures of our technology systems due to technological or other factors and cybersecurity threats; (17) the occurrence of natural or man-made disasters or conflicts or terrorist attacks; (18) the adequacy of our risk management programs; (19) adverse judicial proceedings; (20) increased competitive pressure due to industry consolidation; (21) our ability to attract and retain talented executives and employees, to effectively sell additional products or services to new or existing customers, and to manage our reputational risks; and (22) unanticipated adverse effects of acquisitions and dispositions of assets or businesses. We provide greater detail regarding these factors in our 2012 Form 10-K and subsequent filings, which are available online at www.key.com/ir and www.sec.gov. Forward looking statements speak only as of the date they are made and Key does not undertake any obligation to update the forward- looking statements to reflect new information or future events. This presentation also includes certain Non-GAAP financial measures related to “tangible common equity,” “Tier 1 common equity,” “pre-provision net revenue,” “cash efficiency ratio,” and “adjusted cash efficiency ratio.” Management believes these ratios may assist investors, analysts and regulators in analyzing Key’s financials. Although Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of results under GAAP. For more information on these calculations and to view the reconciliations to the most comparable GAAP measures, please refer to the Appendix to this presentation or our most recent earnings press release, which is accessible at www.key.com/ir. |
 3 Grew average loans 5% from the prior year, driven by CF&A up 11% Linked quarter average total loans up 4.4% annualized Increased investment banking & debt placement fees; 4 quarter rolling average up 29% from prior year Completed CRE servicing acquisition (now #3 primary, #5 CMBS special servicer in the U.S.) Achieved expense target, with $207 million in annualized savings Incurred charges of $41 million during 3Q13 related to efficiency initiative (incl. pension settlement) Consolidated 8 branches in 3Q13; 65 total from launch of efficiency initiative Improve Efficiency Repurchased $198 million of common shares during 3Q13 Completed Victory divestiture on July 31; after-tax net gain of $92 million in discontinued operations Committed to capital priorities: organic growth, dividends, repurchases, opportunistic growth Optimize and Grow Revenue Investor Highlights – 3Q13 Execution of strategy and differentiated business model driving results Effectively Manage Capital |
 4 Financial Review |
 5 Financial Highlights TE = Taxable equivalent, EOP = End of Period (a) From continuing operations (b) Year-over-year average balance growth (c) From consolidated operations (d) 9-30-13 ratios are estimated (e) Non-GAAP measure: see Appendix for reconciliation (f) Efficiency initiative charges include pension settlement in 3Q13 Metrics 3Q13 2Q13 1Q13 4Q12 3Q12 EPS – assuming dilution $ .25 $ .21 $ .21 $ .20 $ .22 Cash efficiency ratio (e) 67.5 % 69.1 % 66.0 % 69.0 % 64.1 % Adj. cash efficiency ratio (ex. initiative charges ) 63.6 65.4 64.5 67.5 63.3 Net interest margin (TE) 3.11 3.13 3.24 3.37 3.23 Return on average total assets 1.12 .95 .99 .96 1.06 Total loans and leases 5 % 7 % 6 % 7 % 6 % CF&A loans 11 14 16 21 24 Deposits (excl. foreign deposits) 5 8 7 7 7 Tier 1 common equity (d), (e) 11.1 % 11.2 % 11.4 % 11.4 % 11.3 % Tier 1 risk-based capital (d) 11.9 11.9 12.2 12.2 12.1 Tangible common equity to tangible assets (e) 9.9 10.0 10.2 10.2 10.4 NCOs to average loans .28 % .34 % .38 % .44 % .86 % NPLs to EOP portfolio loans 1.01 1.23 1.24 1.28 1.27 Allowance for loan losses to EOP loans 1.62 1.65 1.70 1.68 1.73 Financial Performance (a) Balance Sheet Growth (a), (b) Capital (c) Asset Quality (a) (e) (f) |
 6 3Q13 Significant Items $ in millions, except per share amounts Pre-tax After-tax EPS (a) Continuing operations Leveraged lease terminations (b) $ 15 $ 15 $ .02 Net interest income: $(8) million; Net interest margin: (4) bps; Noninterest income: $23 million Efficiency initiative charges (incl. pension settlement) $ (41) $ (26) $ (.03) Total continuing operations $ (26) $ (11) $ (.01) Discontinued operations Victory divestiture $ 146 $ 92 $ .10 Education lending trust fair value adjustment $ (77) $ (48) $ (.05) Total discontinued operations $ 69 $ 44 $ .05 (a) EPS may not foot due to rounding (b) Excludes the total tax impact of leveraged lease terminations of $13 million, or $.01 per common share |
 7 Average loan growth from prior year driven by CF&A up 11% – Loan growth benefitted from distinctive business model and client expansion Average loans up 7% from prior year, excluding the exit portfolio High quality new loan originations: consistent with moderate risk profile Loan Growth $ in billions Highlights Average Commercial, Financial & Agricultural Loans CF&A loans Utilization rate Average Loans Exit Portfolios Home Equity & Other Total Commercial $ in billions |
 8 Improving Deposit Mix Highlights Funding Cost Overall funding cost continues to improve, with total deposit cost declining to 22 bps Transaction deposit balances up 10% from 3Q12 Total CD maturities and average cost – 2013 Q4: $1.6 billion at .78% – 2014: $3.4 billion at 1.37% – 2015 & beyond: $1.5 billion at 1.97% Average Deposits (a) $ in billions (a) Excludes deposits in foreign office (b) Transaction deposits include noninterest-bearing, and NOW and MMDA Cost of total deposits (a) Interest-bearing liability cost CDs and other time deposits Savings Noninterest-bearing NOW and MMDA |
 9 Net Interest Income and Margin TE = Taxable equivalent Continuing Operations Highlights Net Interest Income (TE) & Net Interest Margin (TE) Trend Net interest income increased 1% from prior year and down slightly from prior quarter – Early termination of leveraged leases reduced net interest income by $13 MM in 3Q12 and by $8 MM in 3Q13 – Excl. impact of leveraged leases, net interest income is up 4% from prior quarter annualized Net interest margin down 2 bps from prior quarter Maintaining moderate asset sensitive position – Naturally asset sensitive balance sheet: approximately 70% of loans variable rate – High quality investment portfolio with average life of 3.8 years – Flexibility to quickly adjust interest rate risk position through use of swaps NIM Change (bps): vs. 2Q13 Leveraged lease terminations (.04) Loan yield, mix and fees (.04) Interest rate risk management / swaps (.02) Liquidity / securities .02 Funding cost .06 Total Change (.02) Net interest income (TE) NIM (TE) $ in millions |
 10 Noninterest Income TE = Taxable equivalent Continuing Operations Highlights Noninterest Income Continued strength in core fee income categories – Excl. gains from TruPS and leveraged leases (a) , noninterest income is up 3% from prior year and up 7% from prior quarter annualized Investment banking and debt placement fees, up 29% from prior year on a rolling four quarter avg. Broad-based components of noninterest income strengthen revenue diversity Investment Banking & Debt Placement Fees 3Q13 Noninterest Income Components Rolling Four Quarter Average $ in millions $ in millions (a) Excludes gains from the redemption of trust preferred securities amounting to $54MM in 3Q12 and gains resulting from the early termination of leveraged leases amounting to $39 MM in 3Q12 and $23 MM in 3Q13 (b) Other includes corporate-owned life insurance, principal investing, mortgage servicing revenue, etc. Leveraged lease termination gains TruPS gains |
 $ in millions 11 Focused Expense Management Noninterest Expense $ in millions Highlights Noninterest Expense (a) Non-GAAP measures: see Appendix for reconciliation (b) Excludes one-time gains of $54 million related to the redemption of trust preferred securities (c) Efficiency initiative charges includes pension settlement in 3Q13 Efficiency Ratio (a) Adjusted cash efficiency ratio (ex. efficiency initiative charges ) Cash efficiency ratio Efficiency initiative charges (c) (c) Achieved expense target, with $207 million in savings – 3Q13 expense included $41 million related to efficiency initiative (c) Focused on further efficiency improvements Expenses excluding pension and efficiency charges: – Down 4% from prior year – Relatively flat to prior quarter due to increased marketing spend in 3Q13 |
 12 Nonperforming Assets Net Charge-offs & Provision for Loan and Lease Losses NPLs NPLs to period-end loans NCOs Provision for loan and lease losses NCOs to average loans $ in millions $ in millions NPLs held for sale, OREO & other NPAs Continued Improvement in Asset Quality Highlights Net loan charge-offs decreased 66% from 3Q12 to $37MM, or 28 bps of average loans (down 42% excluding impact of updated regulatory guidance) 3Q13 commercial loan net charge-offs were $5MM or 5 bps of average loans Gross recoveries up $12MM or 41% from 2Q13 Net charge-offs expected to be within or below targeted range Allowance for Loan and Lease Losses Allowance for loan and lease losses to NPLs Allowance for loan and lease losses $ in millions NCOs decreased by 66% Includes $45MM for updated regulatory guidance |
 13 Disciplined execution of capital plan Repurchased $198 million in common shares during 3Q13 Estimated Tier 1 common equity ratio under the Regulatory Capital Rules of 10.6% (a), (b) Tier 1 Common Equity (b), (c) Tangible Common Equity to Tangible Assets (b) Strong Capital Ratios Highlights Book Value per Share (a) Based upon September 30, 2013 pro forma analysis; see Appendix for further detail (b) Non-GAAP measure: see Appendix for reconciliations (c) 9-30-13 ratio is estimated |
 14 Outlook and Expectations Loans • Mid-single digit average balance growth NIM • Relatively stable to the 3Q13 level over the next few quarters • Potential downward pressure, dependent upon level of liquidity Revenue • Net interest income relatively stable in 2H13 • Continued strength in fee income businesses Expense • $680 - $700 million for 4Q13, including one-time charges Efficiency • 60% - 65% cash efficiency NCOs / Provision • Within or below targeted range of 40 – 60 bps of average loans • Provision near the level of net charge-offs Capital • Remaining share repurchase authority of $187 million over the next two quarters |
 15 Appendix |
 16 (a) Continuing operations, unless otherwise note (b) Represents period-end consolidated total loans and loans held for sale (excluding education loans in the securitization trusts) divided by period-end consolidated total deposits (excluding deposits in foreign office) (c) Excludes intangible asset amortization; Non-GAAP measure: see Appendix for reconciliation (d) Efficiency initiative charges include pension settlement Progress on Targets for Success KEY Business Model KEY Metrics (a) KEY 3Q13 KEY 2Q13 Targets Action Plans Efficient balance sheet Loan to deposit ratio (b) 84% 84% 90-100% Use integrated model to grow relationships and loans Improve deposit mix Maintaining moderate risk profile NCOs to average loans .28% .34% 40-60 bps Focus on relationship clients Exit noncore portfolios Limit concentrations Focus on risk-adjusted returns Provision to average loans .21% .21% Growing high quality, diverse revenue streams Net interest margin 3.11% 3.13% >3.50% Improve funding mix Focus on risk-adjusted returns Grow client relationships Capitalize on Key’s total client solutions and cross-selling capabilities Noninterest income to total revenue 44% 42% >40% Creating positive operating leverage Cash efficiency ratio (c) 68% 69% 60-65% Improve efficiency and effectiveness Better utilize technology Change cost base to more variable from fixed Adj. cash efficiency ratio (ex. efficiency initiative charges (d) ) (c) 64% 65% Executing our strategies Return on average assets 1.12% .95% 1.00-1.25% Execute our client insight-driven relationship model Focus on operating leverage Improved funding mix with lower cost core deposits |
 17 Average Total Investment Securities Highlights Average AFS securities $ in billions High Quality Investment Portfolio Portfolio composed of Agency or GSE backed CMOs: Fannie, Freddie & GNMA – No private label MBS or financial paper Average portfolio life at 9/30/13 of 3.8 years compared to 3.2 years at 6/30/13 Unrealized net gain of $3 million on available-for- sale securities portfolio at 9/30/13 Securities cash flows of $1.3 billion in 3Q13 and $1.5 billion in 2Q13 Yields on purchases were 67 bps lower than 3Q13 maturities Securities to Total Assets (b) (a) Yield is calculated on the basis of amortized cost (b) Includes end of period held-to-maturity and available-for-sale securities Average yield (a) Average HTM securities |
 18 Asset Quality Trends Quarterly Change in Criticized Outstandings (a) Delinquencies to Period-end Total Loans (a) Loan and lease outstandings (b) From continuing operations 30 – 89 days delinquent 90+ days delinquent Metric (b) 3Q13 2Q13 1Q13 4Q12 3Q12 Delinquencies to EOP total loans: 30-89 days .54 % .47 % .70 % .80 % .69 % Delinquencies to EOP total loans: 90+ days .17 .15 .16 .15 .17 NPLs to EOP portfolio loans 1.01 1.23 1.24 1.28 1.27 NPAs to EOP portfolio loans + OREO + Other NPAs 1.08 1.30 1.34 1.39 1.39 Allowance for loan losses to period-end loans 1.62 1.65 1.70 1.68 1.73 Allowance for loan losses to NPLs 160.4 134.4 137.4 131.8 136.0 Continuing Operations Continuing Operations |
 19 Period- end loans Average loans Net loan charge-offs Net loan charge-offs (b) / average loans (%) Nonperforming loans (c) Ending allowance (d) Allowance / period-end loans (d) (%) Allowance / NPLs (%) 9/30/13 3Q13 3Q13 2Q13 3Q13 2Q13 9/30/13 6/30/13 9/30/13 9/30/13 9/30/13 Commercial, financial and agricultural (a) $24,317 $23,864 $ 4 $ 8 .07 .14 $ 102 $ 146 $ 370 1.52 362.75 Commercial real estate: Commercial Mortgage 7,544 7,575 (8) (2) (.42) (.11) 58 106 172 2.28 296.55 Construction 1,058 1,073 (6) 1 (2.22) .38 17 26 36 3.40 211.76 Commercial lease financing 4,550 4,633 15 (2) 1.28 (.17) 22 14 64 1.41 290.91 Real estate – residential mortgage 2,198 2,193 2 4 .36 .74 98 94 35 1.59 35.71 Home equity: Key Community Bank 10,285 10,247 12 14 .46 .56 198 205 82 .80 41.41 Other 353 364 2 5 2.18 5.16 13 16 14 3.97 107.69 Consumer other – Key Community Bank 1,440 1,435 7 5 1.94 1.44 2 3 27 1.88 N/M Credit cards 698 700 8 6 4.53 3.45 4 11 34 4.87 850.00 Consumer other: Marine 1,083 1,120 1 5 .35 1.66 25 30 31 2.86 124.00 Other 71 67 - 1 - 5.42 2 1 3 4.23 150.00 Continuing total (e) $53,597 $53,271 $ 37 $ 45 .28 .34 $ 541 $ 652 $ 868 1.62 160.44 Discontinued operations 4,738 4,905 9 7 1.36 1.04 23 19 38 .80 165.22 Consolidated total $58,335 $58,176 $46 $ 52 .33 .38 $ 564 $ 671 $ 906 1.55 160.64 Credit Quality by Portfolio Credit Quality (a) 9-30-13 ending loan balances include $96 million of commercial credit card balances; 9-30-13 average loan balances include $96 million of assets from commercial credit cards (b) Net loan charge-off amounts are annualized in calculation. NCO ratios for discontinued operations and consolidated Key exclude education loans in the securitization trusts since valued at fair-market value (c) 9-30-13 and 6-30-13 NPL amounts exclude $18 million and $19 million respectively of purchased credit impaired loans acquired in July 2012. (d) 9-30-13 allowance by portfolio is estimated. Allowance/period loans ratios for discontinued operations and consolidated Key exclude education loans in the securitization trusts since valued at fair-market value (e) 9-30-13 ending loan balances include purchased loans of $176 million of which $18 million were purchased credit impaired $ in millions N/M = Not Meaningful |
 Vintage (% of Loans) Loan Balances Average Loan Size ($) Average FICO Average LTV (a) % of Loans LTV>90% 2012 and later 2011 2010 2009 2008 and prior Home equity loans and lines First lien $ 16 $ 23,209 744 35 % .4 % - - 1% 1% 98 % Second lien 337 23,003 729 82 32.5 - - - - 100 Total home equity loans and lines $ 353 23,013 729 80 31.0 - - - - 100 Nonaccrual loans First lien $ 1 $ 24,247 729 33 % - - - - - 100 % Second lien 12 24,712 702 82 35.1 % - - - - 100 Total home equity nonaccrual loans $ 13 24,685 703 80 33.0 - - - - 100 Exit Portfolio - Home Equity Third quarter net charge-offs $ 2 - - - - 100 % Net loan charge-offs to average loans 2.18 % Vintage (% of Loans) Loan Balances Average Loan Size ($) Average FICO Average LTV (a) % of Loans LTV>90% 2012 and later 2011 2010 2009 2008 and prior Home equity loans and lines First lien $ 5,932 $ 67,691 765 67 % .6 % 40 % 6% 4 % 4 % 46% Second lien 4,353 47,569 760 76 3.2 25 6 4 4 61 Total home equity loans and lines $ 10,285 57,525 763 71 1.8 33 6 4 4 53 Nonaccrual loans First lien $ 108 $ 58,708 713 73 % .4% 2 % 3% 3 % 5 % 87% Second lien 90 48,922 711 78 2.0 - 2 2 4 92 Total home equity nonaccrual loans $ 198 53,794 712 75 1.1 1 2 3 5 89 Community Bank - Home Equity Third quarter net charge-offs $ 12 - 3% - 4 % 93% Net loan charge-offs to average loans .46 % 20 (a) Average LTVs are at origination. Current average LTVs for Community Bank total home equity loans and lines is approximately 74%, which compares to 75% at the end of the second quarter 2013. Community Bank – Home Equity Exit Portfolio – Home Equity $ in millions, except average loan size Home Equity Loans – 9/30/13 $ in millions, except average loan size |
 Balance Outstanding Change Net Loan Charge-offs Balance on Nonperforming Status 9-30-13 6-30-13 9-30-13 vs. 6-30-13 3Q13 (c) 2Q13 (c) 9-30-13 6-30-13 Residential properties – homebuilder $ 26 $ 26 - - $ 1 $ 8 $ 8 Marine and RV floor plan 25 28 $ (3) - - 6 7 Commercial lease financing (a) 796 931 (135) $ (2) (2) 1 1 Total commercial loans 847 985 (138) (2) (1) 15 16 Home equity – Other 353 375 (22) 2 5 14 16 Marine 1,083 1,160 (77) 1 5 25 31 RV and other consumer 71 69 2 - 1 2 - Total consumer loans 1,507 1,604 (97) 3 11 41 47 Total exit loans in loan portfolio $ 2,354 $ 2,589 $ (235) $ 1 $ 10 $ 56 $ 63 Discontinued operations – education lending business (not included in exit loans above) (b) $ 4,738 $ 4,992 $ (254) $ 9 $ 7 $ 23 $ 19 21 $ in millions (a) Includes (1) the business aviation, commercial vehicle, office products, construction and industrial leases; (2) Canadian lease financing portfolios; and (3) all remaining balances related to lease in, lease out; sale in, lease out; service contract leases; and qualified technological equipment leases (b) Includes loans in Key’s consolidated education loan securitization trusts (c) Credit amounts indicate recoveries exceeded charge-offs $ in millions Exit Loan Portfolio Exit Loan Portfolio |
 Three months ended 9-30-13 6-30-13 9-30-12 Tangible common equity to tangible assets at period end Key shareholders’ equity (GAAP) $ 10,206 $ 10,229 $ 10,251 Less: Intangible assets (a) 1,017 1,021 1,031 Preferred Stock, Series A (b) 282 282 291 Tangible common equity (non-GAAP) $ 8,907 $ 8,926 $ 8,929 Total assets (GAAP) $ 90,708 $ 90,639 $ 86,950 Less: Intangible assets (a) 1,017 1,021 1,031 Tangible assets (non-GAAP) $ 89,691 $ 89,618 $ 85,919 Tangible common equity to tangible assets ratio (non-GAAP) 9.93 % 9.96 % 10.39 % Tier 1 common equity at period end Key shareholders' equity (GAAP) $ 10,206 $ 10,229 $ 10,251 Qualifying capital securities 339 339 339 Less: Goodwill 979 979 979 Accumulated other comprehensive income (loss) (c) (409) (359) (109) Other assets (d) 97 101 121 Total Tier 1 capital (regulatory) 9,878 9,847 9,599 Less: Qualifying capital securities 339 339 339 Preferred Stock, Series A (b) 282 282 291 Total Tier 1 common equity (non-GAAP) $ 9,257 $ 9,226 $ 8,969 Net risk-weighted assets (regulatory) (d), (e) $ 83,335 $ 82,528 $ 79,363 Tier 1 common equity ratio (non-GAAP) (e) 11.11 % 11.18 % 11.30 % Pre-provision net revenue Net interest income (GAAP) $ 578 $ 581 $ 572 Plus: Taxable-equivalent adjustment 6 5 6 Noninterest income (GAAP) 459 429 518 Less: Noninterest expense (GAAP) 716 711 712 Pre-provision net revenue from continuing operations (non-GAAP) $ 327 $ 304 $ 384 GAAP to Non-GAAP Reconciliation 22 $ in millions (a) Three months ended September 30, 2013, June 30, 2013, and September 30, 2012 exclude $99 million, $107 million, and $130 million, respectively, of period end purchased credit card receivable intangible assets (b) Net of capital surplus for the three months ended September 30, 2013 and June 30, 2013 (c) Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities), net gains or losses on cash flow hedges, and amounts resulting from the application of the applicable accounting guidance for defined benefit and other postretirement plans (d) Other assets deducted from Tier 1 capital and net risk-weighted assets consist of disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments. There were no disallowed deferred tax assets at 9-30-13, 6-30-13, and 9-30-12 (e) 9-30-13 amount is estimated |
 GAAP to Non-GAAP Reconciliation (continued) $ in millions 23 (a) Three months ended September 30, 2013, June 30, 2013, and September 30, 2012 exclude $103 million, $110 million and $86 million, respectively, of average ending purchased credit card receivable intangible assets Three months ended 9-30-13 6-30-13 9-30-12 Average tangible common equity Average Key shareholders' equity (GAAP) $ 10,237 $ 10,314 $ 10,222 Less: Intangible assets (average) (a) 1,019 1,023 1,026 Preferred Stock, Series A (average) 291 291 291 Average tangible common equity (non-GAAP) $ 8,927 $ 9,000 $ 8,905 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) $ 229 $ 193 $ 211 Average tangible common equity (non-GAAP) 8,927 9,000 8,905 Return on average tangible common equity from continuing operations (non-GAAP) 10.18 % 8.60 % 9.43 % Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) $ 266 $ 198 $ 214 Average tangible common equity (non-GAAP) 8,927 9,000 8,905 Return on average tangible common equity consolidated (non-GAAP) 11.82 % 8.82 % 9.56 % Cash efficiency ratio Noninterest expense (GAAP) $ 716 $ 711 $ 712 Less: Intangible asset amortization on credit cards (GAAP) 8 7 6 Other intangible asset amortization (GAAP) 4 3 3 Adjusted noninterest expense (non-GAAP) $ 704 $ 701 $ 703 Net interest income (GAAP) $ 578 $ 581 $ 572 Plus: Taxable-equivalent adjustment 6 5 6 Noninterest income (GAAP) 459 429 518 Total taxable-equivalent revenue (non-GAAP) $ 1,043 $ 1,015 $ 1,096 Cash efficiency ratio (non-GAAP) 67.5 % 69.1 % 64.1 % Adjusted cash efficiency ratio Adjusted noninterest expense (non-GAAP) $ 704 $ 701 $ 703 Less: Efficiency initiative and pension settlement charges (non-GAAP) 41 37 9 Net adjusted noninterest expense (non-GAAP) $ 663 $ 664 $ 694 Total taxable-equivalent revenue (non-GAAP) $ 1,043 $ 1,015 $ 1,096 Adjusted cash efficiency ratio (non-GAAP) 63.6 % 65.4 % 63.3 % |
 Tier 1 Common Equity Under the Regulatory Capital Rules, Incorporating Basel III Guidance (estimated) (a) KeyCorp & Subsidiaries 24 $ in billions Quarter ended Sept. 30, 2013 Tier 1 common equity under current regulatory rules $ 9.3 Adjustments from current regulatory rules to the Regulatory Capital Rules: Deferred tax assets and PCCRs (b) (.1) Tier 1 common equity anticipated under the Regulatory Capital Rules (c) $ 9.1 Total risk-weighted assets under current regulatory rules $ 83.3 Adjustments from current regulatory rules to the Regulatory Capital Rules: Loan commitments <1 year .5 Past Due Loans .2 Mortgage servicing assets (d) .6 Deferred tax assets (d) .2 Other 1.5 Total risk-weighted assets anticipated under the Regulatory Capital Rules $ 86.3 Tier 1 common equity ratio under the Regulatory Capital Rules 10.6 % (a) Tier 1 common equity is a non-generally accepted accounting principle (GAAP) financial measure that is used by investors, analysis and bank regulatory agencies to assess the capital position of financial services companies; management reviews Tier 1 common equity along with other measures of capital as part of its financial analyses (b) Includes the deferred tax asset subject to future taxable income for realization, primarily tax credit carryforwards as well as the deductible portion of purchased credit card receivables (c) The anticipated amount of regulatory capital and risk-weighted assets is based upon the federal banking agencies’ Regulatory Capital Rules (as fully phased-in on January 1, 2019); Key is subject to the Regulatory Capital Rules under the “standardized approach” (d) Item is included in the 10%/15% exceptions bucket calculation and is risk-weighted at 250% Table may not foot due to rounding |