Document

EX-99.1 2 a3q24earningsrelease.htm EX-99.1 Document

KEYCORP REPORTS THIRD QUARTER 2024 NET LOSS OF $(447) MILLION,

OR $(.47) PER DILUTED COMMON SHARE, AND ADJUSTED NET INCOME OF $290 MILLION, OR $.30 PER DILUTED COMMON SHARE(a)

Received initial $821 million tranche of strategic minority investment from Scotiabank; Common Equity Tier 1 ratio of 10.8% and Tangible Common Equity ratio of 6.2%(b)

Net interest income up 7% quarter-over-quarter, with average deposits up 2.5%; Client deposits were up 4% year-over-year

Continued strong fee momentum across investment banking, commercial mortgage servicing, commercial payments, and wealth management

Nonperforming assets and provision for credit losses were stable to improved quarter-over-quarter

CLEVELAND, October 17, 2024 - KeyCorp (NYSE: KEY) today announced net loss from continuing operations attributable to Key common shareholders of $(447) million, or $(.47) per diluted common share, or adjusted net income of $290 million or $.30 per diluted common share(a), for the third quarter of 2024. Included in the third quarter of 2024 are $(737) million, or $(.77) per diluted common share, after-tax, of charges related to the loss on the sale of securities(c). Net income from continuing operations attributable to Key common shareholders was $237 million, or $.25 per diluted common share, for the second quarter of 2024 and $266 million, or $.29 per diluted common share, for the third quarter of 2023.

Comments from Chairman and CEO, Chris Gorman

"Key performed well in the third quarter. EPS was impacted by a previously communicated securities portfolio repositioning that will enhance future earnings, capital, and liquidity starting in the fourth quarter. Underlying results were solid as relationship clients, deposits, and business-related fees all demonstrated

continued momentum. As anticipated, we saw a meaningful increase in net interest income, up 7% quarter-over-quarter, as substantial portions of low-yielding securities and swaps matured. Concurrently, both our credit risk profile and expenses remained stable.

We continue to make progress regarding our $2.8 billion capital raise from Scotiabank, completing the initial $821 million investment tranche this quarter. As a result of this initial investment and the meaningful decline in interest rates in the third quarter, our tangible common equity ratio improved by 100 basis points quarter-over-quarter, and our reported CET1 ratio further strengthened to 10.8%. We continue to expect to complete the final tranche of the equity financing in the first quarter of 2025, subject to Fed approval.

Our fee-based pipelines continue to build. Investment banking and debt placement pipelines remain near record levels. Wealth management and commercial payments continue to demonstrate momentum.

Given the combination of our strong pipelines, further expected net interest income tailwinds in the quarters ahead, and a stable-to-improved credit outlook, I remain optimistic with respect to the trajectory of our business and our ability to drive value for all of our stakeholders."

(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “adjusted earnings per share" and "adjusted net income.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b) September 30, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 2


Selected Financial Highlights

Dollars in millions, except per share data										Change 3Q24 vs.
	3Q24			2Q24			3Q23			2Q24		3Q23
Income (loss) from continuing operations attributable to Key common shareholders	$	(447)		$	237		$	266		(288.6)	%	(268.0)	%

Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution	(.47)			.25			.29			(288.0)		(262.1)

Return on average tangible common equity from continuing operations (a)	(16.98)		%	10.39		%	12.40		%	N/A		N/A

Return on average total assets from continuing operations	(.87)			.59			.62			N/A		N/A

Common Equity Tier 1 ratio (b)	10.8			10.5			9.8			N/A		N/A
Book value at period end	$	14.53		$	13.09		$	11.65		11.0		24.7
Net interest margin (TE) from continuing operations	2.17		%	2.04		%	2.01		%	N/A		N/A

(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b)September 30, 2024 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable


INCOME STATEMENT HIGHLIGHTS

Revenue

Dollars in millions							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Net interest income (TE)	$	964	$	899	$	923	7.2	%	4.4	%
Noninterest income	(269)		627		643		(142.9)		(141.8)
Total revenue (TE)	$	695	$	1,526	$	1,566	(54.5)	%	(55.6)	%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $964 million for the third quarter of 2024 and the net interest margin was 2.17%. Compared to the third quarter of 2023, net interest income increased by $41 million, and the net interest margin increased by 16 basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding investments, the maturity of lower-yielding interest rate swaps with negative carry, and a shift in funding mix from higher-cost wholesale borrowings to lower-cost interest-bearing deposits. In addition, during the third quarter of 2024, Key began the repositioning of the available-for-sale portfolio, which involved the sale of approximately $7.0 billion of lower-yielding mortgaged-backed securities and reinvestment of the proceeds into higher-yielding investments. These benefits were partially offset by a decline in loan balances and higher deposit costs relative to a year ago.

Compared to the second quarter of 2024, taxable-equivalent net interest income increased by $65 million, and the net interest margin increased by 13 basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding investments, continued amortization of low-yielding interest rate swaps that had been terminated in 2023, the repositioning of the available-for-sale portfolio, and an improved funding mix. Lower loan balances and higher interest-bearing deposit costs somewhat offset the increase.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 3


Noninterest Income

Dollars in millions							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Trust and investment services income	$	140	$	139	$	130	.7	%	7.7	%
Investment banking and debt placement fees	171		126		141		35.7		21.3
Cards and payments income	84		85		90		(1.2)		(6.7)
Service charges on deposit accounts	67		66		69		1.5		(2.9)
Corporate services income	69		68		73		1.5		(5.5)
Commercial mortgage servicing fees	73		61		46		19.7		58.7
Corporate-owned life insurance income	36		34		35		5.9		2.9
Consumer mortgage income	12		16		15		(25.0)		(20.0)
Operating lease income and other leasing gains	16		21		22		(23.8)		(27.3)
Other income	(937)		11		22		N/M		N/M
Total noninterest income	$	(269)	$	627	$	643	(142.9)	%	(141.8)	%

N/M = Not Meaningful

Compared to the third quarter of 2023, noninterest income decreased by $912 million. The decrease was driven primarily by a $918 million loss on the sale of securities as part of a strategic repositioning of the portfolio in the third quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. The decline was partly offset by a $30 million increase in investment banking and debt placement fees, reflective of stronger syndication, debt, and equity underwriting fees, as well as a $27 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances and overall growth of the servicing portfolio.

Compared to the second quarter of 2024, noninterest income decreased by $896 million. The decrease was driven primarily by the loss on the sale of securities referenced above. The decline was partly offset by a $45 million increase in investment banking and debt placement fees, reflective of stronger syndication and equity underwriting fees, as well as a $12 million increase in commercial mortgage servicing fees.


Noninterest Expense

Dollars in millions							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Personnel expense	$	670	$	636	$	663	5.3	%	1.1	%
Net occupancy	66		66		67		—		(1.5)
Computer processing	104		101		89		3.0		16.9
Business services and professional fees	41		37		38		10.8		7.9
Equipment	20		20		20		—		—
Operating lease expense	14		17		18		(17.6)		(22.2)
Marketing	21		21		28		—		(25.0)



Other expense	158		181		187		(12.7)		(15.5)
Total noninterest expense	$	1,094	$	1,079	$	1,110	1.4	%	(1.4)	%

Compared to the third quarter of 2023, noninterest expense decreased $16 million. The decline in noninterest expense was driven by a $7 million decrease in marketing expense, and a reduction in the estimated FDIC special assessment in the third quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. Partly offsetting the decline was an increase in computer processing expense of $15 million, due to technology investments, and a $7 million increase in personnel expense due to an increase in incentive and stock-based compensation related to strong capital markets activity and a higher stock price compared to the year-ago period.

Compared to the second quarter of 2024, noninterest expense increased by $15 million. The increase was driven by a $34 million increase in personnel expense, primarily from incentive and stock-based

compensation, reflecting stronger capital markets activity. The increase was partly offset by a decline in other expense of $23 million, related to a reduction of the estimated FDIC special assessment charge recognized in

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 4

the third quarter of 2024 when compared to the second quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information.


BALANCE SHEET HIGHLIGHTS

Average Loans

Dollars in millions							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Commercial and industrial (a)	$	53,121	$	54,599	$	59,187	(2.7)	%	(10.2)	%
Other commercial loans	19,929		20,500		22,371		(2.8)		(10.9)
Total consumer loans	33,194		33,862		36,069		(2.0)		(8.0)
Total loans	$	106,244	$	108,961	$	117,627	(2.5)	%	(9.7)	%

(a)Commercial and industrial average loan balances include $215 million, $218 million, and $202 million of assets from commercial credit cards at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

Average loans were $106.2 billion for the third quarter of 2024, a decrease of $11.4 billion compared to the third quarter of 2023, reflective of Key's planned balance sheet optimization efforts in 2023, and continued tepid client loan demand. The decline in average loans was mostly driven by a $8.5 billion decline in average commercial loans, due to lower commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined by $2.9 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the second quarter of 2024, average loans decreased by $2.7 billion. Average commercial loans declined by $2.0 billion, primarily driven by a decrease in commercial and industrial loans and commercial mortgage real estate loans. Average consumer loans declined $668 million, driven by broad-based declines across all consumer loan categories.


Average Deposits

Dollars in millions										Change 3Q24 vs.
	3Q24			2Q24			3Q23			2Q24		3Q23
Non-time deposits	$	129,901		$	128,161		$	129,743		1.4	%	0.1	%

Time deposits	17,870			16,019			15,082			11.6		18.5
Total deposits	$	147,771		$	144,180		$	144,825		2.5	%	2.0	%

Cost of total deposits	2.39		%	2.28		%	1.88		%	N/A		N/A

N/A = Not Applicable

Average deposits totaled $147.8 billion for the third quarter of 2024, an increase of $2.9 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.

Compared to the second quarter of 2024, average deposits increased by $3.6 billion, driven by an increase in both consumer and commercial deposit balances.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 5


ASSET QUALITY

Dollars in millions										Change 3Q24 vs.
	3Q24			2Q24			3Q23			2Q24		3Q23
Net loan charge-offs	$	154		$	91		$	71		69.2	%	116.9	%
Net loan charge-offs to average total loans	.58		%	.34		%	.24		%	N/A		N/A
Nonperforming loans at period end	$	728		$	710		$	455		2.5		60.0
Nonperforming assets at period end	741			727			471			1.9		57.3
Allowance for loan and lease losses	1,494			1,547			1,488			(3.4)		0.4
Allowance for credit losses	1,774			1,833			1,778			(3.2)		(0.2)
Provision for credit losses	95			100			81			(5.0)		17.3

Allowance for loan and lease losses to nonperforming loans	205		%	218		%	327		%	N/A		N/A
Allowance for credit losses to nonperforming loans	244			258			391			N/A		N/A

N/A = Not Applicable

Key's provision for credit losses was $95 million, compared to $81 million in the third quarter of 2023 and $100 million in the second quarter of 2024. The increase from the year-ago period reflects continued, but slowing, credit portfolio migration, higher net charge-offs, and changes in the economic outlook, partly offset by balance sheet optimization efforts.

Net loan charge-offs for the third quarter of 2024 totaled $154 million, or 0.58% of average total loans. These results compare to $71 million, or 0.24%, for the third quarter of 2023 and $91 million, or 0.34%, for the second quarter of 2024. Key’s allowance for credit losses was $1.8 billion, or 1.68% of total period-end loans at September 30, 2024, compared to 1.54% at September 30, 2023, and 1.71% at June 30, 2024.

At September 30, 2024, Key’s nonperforming loans totaled $728 million, which represented 0.69% of period-end portfolio loans. These results compare to 0.39% at September 30, 2023, and 0.66% at June 30, 2024. Nonperforming assets at September 30, 2024, totaled $741 million, and represented 0.70% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.41% at September 30, 2023, and 0.68% at June 30, 2024.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2024.


Capital Ratios

	9/30/2024		6/30/2024		9/30/2023
Common Equity Tier 1 (a)	10.8	%	10.5	%	9.8	%

Tier 1 risk-based capital (a)	12.6		12.2		11.4
Total risk-based capital (a)	15.1		14.7		13.8
Tangible common equity to tangible assets (b)	6.2		5.2		4.4
Leverage (a)	9.2		9.1		8.9

(a)September 30, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

(b)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

Key's regulatory capital position remained strong in the third quarter of 2024. As shown in the preceding table, at September 30, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 10.8% and 12.6%, respectively. Key's tangible common equity ratio was 6.2% at September 30, 2024.

Key elected the CECL phase-in option provided by regulatory guidance which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 6

Effective for the first quarter 2022, Key is now in the three-year transition period. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by five basis points.


Summary of Changes in Common Shares Outstanding

In thousands					Change 3Q24 vs.
		3Q24	2Q24	3Q23	2Q24		3Q23
Shares outstanding at beginning of period		943,200	942,776	935,733	—	%	.8	%

Shares issued under employee compensation plans (net of cancellations and returns)		222	424	428	(47.6)		(48.1)
Shares issued under Scotiabank investment agreement		47,829	—	—	N/M		N/M
	Shares outstanding at end of period	991,251	943,200	936,161	5.1	%	5.9	%

N/M = Not Meaningful

Key declared a dividend of $.205 per common share for the third quarter of 2024.

LINE OF BUSINESS RESULTS

The following table shows the contribution made by each major business segment to Key’s taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.


Major Business Segments

Dollars in millions								Change 3Q24 vs.
		3Q24		2Q24		3Q23		2Q24		3Q23
Revenue from continuing operations (TE)
Consumer Bank		$	814	$	769	$	775	5.9	%	5.0	%
Commercial Bank		868		770		809		12.7		7.3
Other (a)		(987)		(13)		(18)		N/M		N/M


	Total	$	695	$	1,526	$	1,566	(54.5)	%	(55.6)	%

Income (loss) from continuing operations attributable to Key
Consumer Bank		$	86	$	67	$	65	28.4	%	32.3	%
Commercial Bank		300		207		240		44.9		25.0
Other (a)		(797)		(1)		(3)		N/M		N/M


	Total	$	(411)	$	273	$	302	(250.5)	%	(236.1)	%

(a)Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

TE = Taxable Equivalent

N/M = Not Meaningful

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 7


Consumer Bank

Dollars in millions							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Summary of operations
Net interest income (TE)	$	584	$	535	$	534	9.2	%	9.4	%
Noninterest income	230		234		241		(1.7)		(4.6)
Total revenue (TE)	814		769		775		5.9		5.0
Provision for credit losses	52		33		14		57.6		271.4
Noninterest expense	649		648		676		.2		(4.0)
Income (loss) before income taxes (TE)	113		88		85		28.4		32.9
Allocated income taxes (benefit) and TE adjustments	27		21		20		28.6		35.0
Net income (loss) attributable to Key	$	86	$	67	$	65	28.4	%	32.3	%

Average balances
Loans and leases	$	38,332	$	39,174	$	41,610	(2.1)	%	(7.9)	%
Total assets	41,188		42,008		44,429		(2.0)		(7.3)
Deposits	86,431		85,397		82,683		1.2		4.5

Assets under management at period end	$	61,122	$	57,602	$	52,516	6.1	%	16.4	%

TE = Taxable Equivalent


Additional Consumer Bank Data

Dollars in millions							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Noninterest income
Trust and investment services income	$	114	$	112	$	105	1.8	%	8.6	%
Service charges on deposit accounts	34		34		39		—		(12.8)
Cards and payments income	60		61		65		(1.6)		(7.7)
Consumer mortgage income	12		16		15		(25.0)		(20.0)
Other noninterest income	10		11		17		(9.1)		(41.2)
Total noninterest income	$	230	$	234	$	241	(1.7)	%	(4.6)	%

Average deposit balances
Money market deposits	$	30,805	$	30,229	$	28,638	1.9	%	7.6	%
Demand deposits	22,310		22,292		22,526		.1		(1.0)
Savings deposits	4,553		4,791		5,676		(5.0)		(19.8)

Time deposits	13,927		13,038		8,752		6.8		59.1
Noninterest-bearing deposits	14,836		15,047		17,091		(1.4)		(13.2)
Total deposits	$	86,431	$	85,397	$	82,683	1.2	%	4.5	%






Other data
Branches	944		946		959
Automated teller machines	1,194		1,199		1,249

Consumer Bank Summary of Operations (3Q24 vs. 3Q23)

•Key's Consumer Bank recorded net income attributable to Key of $86 million for the third quarter of 2024, compared to $65 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $50 million, or 9.4%, compared to the third quarter of 2023

•Average loans and leases decreased $3.3 billion, or 7.9%, from the third quarter of 2023, driven by broad-based declines across all loan categories

•Average deposits increased $3.7 billion, or 4.5%, from the third quarter of 2023, driven by growth in retail deposits

•Provision for credit losses increased $38 million compared to the third quarter of 2023, driven by changes in economic outlook and higher net charge-offs, partly offset by planned balance sheet optimization efforts

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October 17, 2024

Page 8

•Noninterest income decreased $11 million from the year-ago quarter, driven by declines in service charges on deposit accounts and cards and payments income

•Noninterest expense decreased $27 million from the year-ago quarter, reflective of lower marketing expense


Commercial Bank

Dollars in millions							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Summary of operations
Net interest income (TE)	$	460	$	411	$	446	11.9	%	3.1	%
Noninterest income	408		359		363		13.6		12.4
Total revenue (TE)	868		770		809		12.7		7.3
Provision for credit losses	41		87		68		(52.9)		(39.7)
Noninterest expense	445		432		433		3.0		2.8
Income (loss) before income taxes (TE)	382		251		308		52.2		24.0
Allocated income taxes and TE adjustments	82		44		68		86.4		20.6


Net income (loss) attributable to Key	$	300	$	207	$	240	44.9	%	25.0	%

Average balances
Loans and leases	$	67,452	$	69,248	$	75,598	(2.6)	%	(10.8)	%
Loans held for sale	998		522		1,268		91.2		(21.3)
Total assets	76,395		78,328		85,930		(2.5)		(11.1)
Deposits	58,696		57,360		56,078		2.3	%	4.7	%

TE = Taxable Equivalent


Additional Commercial Bank Data

Dollars in millions							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Noninterest income
Trust and investment services income	$	26	$	26	$	25	—	%	4.0	%
Investment banking and debt placement fees	171		126		141		35.7		21.3
Cards and payments income	22		21		18		4.8		22.2
Service charges on deposit accounts	32		31		29		3.2		10.3
Corporate services income	62		61		64		1.6		(3.1)
Commercial mortgage servicing fees	73		61		45		19.7		62.2
Operating lease income and other leasing gains	16		21		22		(23.8)		(27.3)
Other noninterest income	6		12		19		(50.0)		(68.4)
Total noninterest income	$	408	$	359	$	363	13.6	%	12.4	%

Commercial Bank Summary of Operations (3Q24 vs. 3Q23)

•Key's Commercial Bank recorded net income attributable to Key of $300 million for the third quarter of 2024 compared to $240 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $14 million, or 3.1%, compared to the third quarter of 2023

•Average loan and lease balances decreased $8.1 billion, or 10.8%, compared to the third quarter of 2023, driven by a decline in commercial and industrial loans

•Average deposit balances increased $2.6 billion compared to the third quarter of 2023, driven by our focus on growing deposits across our commercial businesses

•Provision for credit losses decreased $27 million compared to the third quarter of 2023, driven by the impact of balance sheet optimization efforts, partly offset by slowing credit portfolio migration, changes in economic outlook, and higher net charge-offs

•Noninterest income increased $45 million compared to the third quarter of 2023, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees

•Noninterest expense increased $12 million compared to the third quarter of 2023, driven by higher incentive compensation related to stronger investment banking and debt placement fees

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 9

*******************************************

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $190 billion at September 30, 2024.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 10


CONTACTS:

ANALYSTS			MEDIA
Brian Mauney			Susan Donlan
216.689.0521			216.471.3133
Brian_Mauney@KeyBank.com			Susan_E_Donlan@KeyBank.com

Halle Nichols			Beth Strauss
216.689.5305			216.471.2787
Halle_A_Nichols@KeyBank.com			Beth_A_Strauss@KeyBank.com





INVESTOR RELATIONS:			KEY MEDIA NEWSROOM:
www.key.com/ir			www.key.com/newsroom


This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2023 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

Notes to Editors:

A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on October 17, 2024. A replay of the call will be available on our website through October 17, 2025.

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

*****

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 11

KeyCorp

Third Quarter 2024

Financial Supplement


Page
12			Basis of Presentation
13			Financial Highlights
15			GAAP to Non-GAAP Reconciliation
17			Consolidated Balance Sheets
18			Consolidated Statements of Income
19			Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
21			Noninterest Expense
21			Personnel Expense
22			Loan Composition
22			Loans Held for Sale Composition
22			Summary of Changes in Loans Held for Sale
23			Summary of Loan and Lease Loss Experience From Continuing Operations
24			Asset Quality Statistics From Continuing Operations
24			Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
24			Summary of Changes in Nonperforming Loans From Continuing Operations
25			Line of Business Results
25			Selected Items Impact on Earnings

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 12

Basis of Presentation

Use of Non-GAAP Financial Measures

This document contains GAAP financial measures and non-GAAP financial measures where management

believes it to be helpful in understanding Key’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key’s website (www.key.com/ir).

Annualized Data

Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized”

basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.

Taxable Equivalent

Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of peers.

Earnings Per Share Equivalent

Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 13


Financial Highlights
(Dollars in millions, except per share amounts)
			Three months ended
			9/30/2024			6/30/2024			9/30/2023
Summary of operations
	Net interest income (TE)		$	964		$	899		$	923
	Noninterest income		(269)			627			643
		Total revenue (TE)	695			1,526			1,566
	Provision for credit losses		95			100			81
	Noninterest expense		1,094			1,079			1,110
	Income (loss) from continuing operations attributable to Key		(411)			273			302
	Income (loss) from discontinued operations, net of taxes		1			1			1
	Net income (loss) attributable to Key		(410)			274			303

	Income (loss) from continuing operations attributable to Key common shareholders		(447)			237			266
	Income (loss) from discontinued operations, net of taxes		1			1			1
	Net income (loss) attributable to Key common shareholders		(446)			238			267

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	(.47)		$	.25		$	.29
	Income (loss) from discontinued operations, net of taxes		—			—			—
	Net income (loss) attributable to Key common shareholders (a)		(.47)			.25			.29

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		(.47)			.25			.29
	Income (loss) from discontinued operations, net of taxes — assuming dilution		—			—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)		(.47)			.25			.29

	Cash dividends declared		.205			.205			.205
	Book value at period end		14.53			13.09			11.65
	Tangible book value at period end		11.72			10.13			8.65
	Market price at period end		16.75			14.21			10.76

Performance ratios
	From continuing operations:
	Return on average total assets		(.87)		%	.59		%	.62		%
	Return on average common equity		(13.41)			7.96			9.31
	Return on average tangible common equity (b)		(16.98)			10.39			12.40
	Net interest margin (TE)		2.17			2.04			2.01
	Cash efficiency ratio (b)		156.4			70.2			70.3

	From consolidated operations:
	Return on average total assets		(.87)		%	.59		%	.62		%
	Return on average common equity		(13.38)			7.99			9.35
	Return on average tangible common equity (b)		(16.95)			10.43			12.45
	Net interest margin (TE)		2.17			2.04			2.01
	Loan to deposit (c)		71.0			74.0			80.8

Capital ratios at period end
	Key shareholders’ equity to assets		8.9		%	7.9		%	7.1		%
	Key common shareholders’ equity to assets		7.6			6.6			5.8
	Tangible common equity to tangible assets (b)		6.2			5.2			4.4
	Common Equity Tier 1 (d)		10.8			10.5			9.8
	Tier 1 risk-based capital (d)		12.6			12.2			11.4
	Total risk-based capital (d)		15.1			14.7			13.8
	Leverage (d)		9.2			9.1			8.9

Asset quality — from continuing operations
	Net loan charge-offs		$	154		$	91		$	71
	Net loan charge-offs to average loans		.58		%	.34		%	.24		%
	Allowance for loan and lease losses		$	1,494		$	1,547		$	1,488
	Allowance for credit losses		1,774			1,833			1,778
	Allowance for loan and lease losses to period-end loans		1.42		%	1.44		%	1.29		%
	Allowance for credit losses to period-end loans		1.68			1.71			1.54
	Allowance for loan and lease losses to nonperforming loans		205			218			327
	Allowance for credit losses to nonperforming loans		244			258			391
	Nonperforming loans at period-end		$	728		$	710		$	455
	Nonperforming assets at period-end		741			727			471
	Nonperforming loans to period-end portfolio loans		.69		%	.66		%	.39		%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.70			.68			.41

Trust assets
	Assets under management		$	61,122		$	57,602		$	52,516


Other data
	Average full-time equivalent employees		16,805			16,646			17,666
	Branches		944			946			959
	Taxable-equivalent adjustment		$	12		$	12		$	8

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 14



Financial Highlights (continued)
(Dollars in millions, except per share amounts)
		Nine months ended
		9/30/2024			9/30/2023
Summary of operations
	Net interest income (TE)	$	2,749		$	3,015
	Noninterest income	1,005			1,860
	Total revenue (TE)	3,754			4,875
	Provision for credit losses	296			387
	Noninterest expense	3,316			3,362
	Income (loss) from continuing operations attributable to Key	81			899
	Income (loss) from discontinued operations, net of taxes	2			3
	Net income (loss) attributable to Key	83			902

	Income (loss) from continuing operations attributable to Key common shareholders	(27)			791
	Income (loss) from discontinued operations, net of taxes	2			3
	Net income (loss) attributable to Key common shareholders	(25)			794

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders	$	(.03)		$	.85
	Income (loss) from discontinued operations, net of taxes	—			—
	Net income (loss) attributable to Key common shareholders (a)	(.03)			.86

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	(.03)			.85
	Income (loss) from discontinued operations, net of taxes — assuming dilution	—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)	(.03)			.85

	Cash dividends paid	.62			.62

Performance ratios
	From continuing operations:
	Return on average total assets	.06		%	.62		%
	Return on average common equity	(.29)			9.18
	Return on average tangible common equity (b)	(.37)			12.17
	Net interest margin (TE)	2.08			2.20
	Cash efficiency ratio (b)	87.7			68.4

	From consolidated operations:
	Return on average total assets	.06		%	.62		%
	Return on average common equity	(0.27)			9.22
	Return on average tangible common equity (b)	(0.35)			12.22
	Net interest margin (TE)	2.08			2.20

Asset quality — from continuing operations
	Net loan charge-offs	$	326		$	168
	Net loan charge-offs to average total loans	.40		%	.19		%

Other data
	Average full-time equivalent employees	16,734			17,880

Taxable-equivalent adjustment		35			23

(a)Earnings per share may not foot due to rounding.

(b)The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.

(d)September 30, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 15

GAAP to Non-GAAP Reconciliations

(Dollars in millions)

The table below presents certain non-GAAP financial measures related to “tangible common equity,” “return on average tangible common equity,” “pre-provision net revenue," “cash efficiency ratio," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."

The tangible common equity ratio and the return on average tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key’s capital position without regard to the effects of intangible assets and preferred stock.

The table also shows the computation for pre-provision net revenue, which is not formally defined by GAAP. Management believes that eliminating the effects of the provision for credit losses makes it easier to analyze the results by presenting them on a more comparable basis.

The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key’s intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key’s results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or “adjusted net income”) and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude securities portfolio repositioning, net of tax, that occurred in the third quarter of 2024. Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the significant losses related to the securities repositioning.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.


	Three months ended									Nine months ended
	9/30/2024			6/30/2024			9/30/2023			9/30/2024			9/30/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)	$	16,852		$	14,789		$	13,356
Less: Intangible assets (a)	2,786			2,793			2,816
Preferred Stock (b)	2,446			2,446			2,446
Tangible common equity (non-GAAP)	$	11,620		$	9,550		$	8,094
Total assets (GAAP)	$	189,763		$	187,450		$	187,851
Less: Intangible assets (a)	2,786			2,793			2,816
Tangible assets (non-GAAP)	$	186,977		$	184,657		$	185,035
Tangible common equity to tangible assets ratio (non-GAAP)	6.21		%	5.17		%	4.37		%




Pre-provision net revenue
Net interest income (GAAP)	$	952		$	887		$	915		$	2,714		$	2,992
Plus: Taxable-equivalent adjustment	12			12			8			35			23
Noninterest income	(269)			627			643			1,005			1,860
Less: Noninterest expense	1,094			1,079			1,110			3,316			3,362
Pre-provision net revenue from continuing operations (non-GAAP)	$	(399)		$	447		$	456		$	438		$	1,513
Average tangible common equity
Average Key shareholders' equity (GAAP)	$	15,759		$	14,474		$	13,831		$	14,963		$	14,020
Less: Intangible assets (average) (c)	2,789			2,796			2,821			2,796			2,831
Preferred stock (average)	2,500			2,500			2,500			2,500			2,500
Average tangible common equity (non-GAAP)	$	10,470		$	9,178		$	8,510		$	9,667		$	8,689
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	(447)		$	237		$	266		$	(27)		$	791


Average tangible common equity (non-GAAP)	10,470			9,178			8,510			9,667			8,689

Return on average tangible common equity from continuing operations (non-GAAP)	(16.98)		%	10.39		%	12.40		%	(0.37)		%	12.17		%

Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	(446)		$	238		$	267		$	(25)		$	794
Average tangible common equity (non-GAAP)	10,470			9,178			8,510			9,667			8,689

Return on average tangible common equity consolidated (non-GAAP)	(16.95)		%	10.43		%	12.45		%	(0.35)		%	12.22		%

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 16


GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
	Three months ended									Nine months ended
	9/30/2024			6/30/2024			9/30/2023			9/30/2024			9/30/2023













































Cash efficiency ratio
Noninterest expense (GAAP)	$	1,094		$	1,079		$	1,110		$	3,316		$	3,362
Less: Intangible asset amortization	7			7			9			22			29
Adjusted noninterest expense (non-GAAP)	$	1,087		$	1,072		$	1,101		$	3,294		$	3,333



Net interest income (GAAP)	$	952		$	887		$	915		$	2,714		$	2,992
Plus: Taxable-equivalent adjustment	12			12			8			35			23
Net interest income TE (non-GAAP)	964			899			923			2,749			3,015
Noninterest income (GAAP)	(269)			627			643			1,005			1,860
Total taxable-equivalent revenue (non-GAAP)	$	695		$	1,526		$	1,566		$	3,754		$	4,875



Cash efficiency ratio (non-GAAP)	156.4		%	70.2		%	70.3		%	87.7		%	68.4		%






Adjusted income (loss) available from continuing operations attributable to Key common shareholders
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	(447)		$	237		$	266
Plus: Loss on sale of securities (net of tax)	737			—			—
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)	$	290		$	237		$	266
Diluted earnings per common share (EPS) - adjusted
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)	$	(.47)		$	.25		$	.29
Plus: EPS impact of loss on sale of securities	.77			—			—
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)	$	.30		$	.25		$	.29

(a)For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of period-end purchased credit card receivables.

(b)Net of capital surplus.

(c)For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, average intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of average purchased credit card receivables.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 17


Consolidated Balance Sheets
(Dollars in millions)

			9/30/2024		6/30/2024		9/30/2023
Assets
	Loans		$	105,346	$	107,078	$	115,544
	Loans held for sale		1,058		517		730
	Securities available for sale		34,169		37,460		35,839
	Held-to-maturity securities		7,702		7,968		8,853
	Trading account assets		1,404		1,219		1,325
	Short-term investments		22,796		15,536		7,871
	Other investments		1,117		1,259		1,356
		Total earning assets	173,592		171,037		171,518
	Allowance for loan and lease losses		(1,494)		(1,547)		(1,488)
	Cash and due from banks		1,276		1,326		766
	Premises and equipment		624		631		649
	Goodwill		2,752		2,752		2,752
	Other intangible assets		34		41		65
	Corporate-owned life insurance		4,379		4,382		4,381
	Accrued income and other assets		8,323		8,532		8,843
	Discontinued assets		277		296		365
		Total assets	$	189,763	$	187,450	$	187,851

Liabilities
	Deposits in domestic offices:





		Interest-bearing deposits	$	119,995	$	117,570	$	112,581
		Noninterest-bearing deposits	30,358		28,150		31,710
		Total deposits	150,353		145,720		144,291
	Federal funds purchased and securities sold under repurchase agreements		44		25		43
	Bank notes and other short-term borrowings		2,359		5,292		3,470
	Accrued expense and other liabilities		4,478		4,755		5,388
	Long-term debt		15,677		16,869		21,303
		Total liabilities	172,911		172,661		174,495

Equity
	Preferred stock		2,500		2,500		2,500
	Common shares		1,257		1,257		1,257
	Capital surplus		6,149		6,185		6,254
	Retained earnings		15,066		15,706		15,835
	Treasury stock, at cost		(4,839)		(5,715)		(5,851)
	Accumulated other comprehensive income (loss)		(3,281)		(5,144)		(6,639)
		Key shareholders’ equity	16,852		14,789		13,356


Total liabilities and equity			$	189,763	$	187,450	$	187,851

Common shares outstanding (000)			991,251		943,200		936,161

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 18


Consolidated Statements of Income
(Dollars in millions, except per share amounts)
			Three months ended						Nine months ended
			9/30/2024		6/30/2024		9/30/2023		9/30/2024		9/30/2023
Interest income
	Loans		$	1,516	$	1,524	$	1,593	$	4,578	$	4,645
	Loans held for sale		18		8		19		40		49
	Securities available for sale		298		259		192		789		580
	Held-to-maturity securities		70		73		79		218		234
	Trading account assets		15		16		15		45		42
	Short-term investments		244		192		123		578		276
	Other investments		14		16		22		47		51
		Total interest income	2,175		2,088		2,043		6,295		5,877
Interest expense
	Deposits		887		817		687		2,486		1,568
	Federal funds purchased and securities sold under repurchase agreements		1		1		9		3		79
	Bank notes and other short-term borrowings		43		51		81		140		263
	Long-term debt		292		332		351		952		975
		Total interest expense	1,223		1,201		1,128		3,581		2,885
Net interest income			952		887		915		2,714		2,992
Provision for credit losses			95		100		81		296		387
Net interest income after provision for credit losses			857		787		834		2,418		2,605
Noninterest income
	Trust and investment services income		140		139		130		415		384
	Investment banking and debt placement fees		171		126		141		467		406
	Cards and payments income		84		85		90		246		256
	Service charges on deposit accounts		67		66		69		196		205
	Corporate services income		69		68		73		206		235
	Commercial mortgage servicing fees		73		61		46		190		142
	Corporate-owned life insurance income		36		34		35		102		96
	Consumer mortgage income		12		16		15		42		40
	Operating lease income and other leasing gains		16		21		22		61		70
	Other income(c)		(937)		11		22		(920)		26
		Total noninterest income	(269)		627		643		1,005		1,860
Noninterest expense
	Personnel		670		636		663		1,980		1,986
	Net occupancy		66		66		67		199		202
	Computer processing		104		101		89		307		276
	Business services and professional fees		41		37		38		119		124
	Equipment		20		20		20		60		64
	Operating lease expense		14		17		18		48		59
	Marketing		21		21		28		61		78



	Other expense		158		181		187		542		573
		Total noninterest expense	1,094		1,079		1,110		3,316		3,362
Income (loss) from continuing operations before income taxes			(506)		335		367		107		1,103
	Income taxes (benefit)		(95)		62		65		26		204
Income (loss) from continuing operations			(411)		273		302		81		899
	Income (loss) from discontinued operations, net of taxes		1		1		1		2		3
Net income (loss)			(410)		274		303		83		902

Net income (loss) attributable to Key			$	(410)	$	274	$	303	$	83	$	902

Income (loss) from continuing operations attributable to Key common shareholders			$	(447)	$	237	$	266	$	(27)	$	791
Net income (loss) attributable to Key common shareholders			(446)		238		267		(25)		794
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	(.47)	$	.25	$	.29	$	(.03)	$	.85
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			(.47)		.25		.29		(.03)		.86
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	(.47)	$	.25	$	.29	$	(.03)	$	.85
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			(.47)		.25		.29		(.03)		.85

Cash dividends declared per common share			$	.205	$	.205	$	.205	$	.615	$	.615

Weighted-average common shares outstanding (000)			948,979		931,726		927,131		936,962		927,019
	Effect of common share options and other stock awards		8,951		6,761		4,613		7,678		5,213
Weighted-average common shares and potential common shares outstanding (000) (b)			957,929		938,487		931,744		944,640		932,232

(a)Earnings per share may not foot due to rounding.

(b)Assumes conversion of common share options and other stock awards, as applicable.

(c)For the three months ended September 30, 2024, and June 30, 2024, we had $935 million and $13 million in net securities losses, respectively. For the three months ended September 30, 2023, we had no net securities gains or losses. For the nine months ended September 30, 2024, and September 30, 2023, we had $948 million and $7 million in net securities losses, respectively.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 19


Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		Third Quarter 2024						Second Quarter 2024						Third Quarter 2023
		Average				Yield/		Average				Yield/		Average				Yield/
		Balance		Interest (a)		Rate (a)		Balance		Interest (a)		Rate (a)		Balance		Interest (a)		Rate (a)
Assets
	Loans: (b), (c)
	Commercial and industrial (d)	$	53,121	$	847	6.34	%	$	54,599	$	860	6.34	%	$	59,187	$	886	5.94	%
	Real estate — commercial mortgage	13,864		225		6.46		14,287		217		6.10		15,844		238		5.97
	Real estate — construction	3,077		59		7.65		3,020		56		7.51		2,820		48		6.77
	Commercial lease financing	2,988		26		3.46		3,193		28		3.46		3,707		30		3.25
	Total commercial loans	73,050		1,157		6.30		75,099		1,161		6.22		81,558		1,202		5.85
	Real estate — residential mortgage	20,215		167		3.30		20,515		169		3.30		21,459		176		3.28
	Home equity loans	6,634		100		5.98		6,817		102		5.98		7,418		110		5.87
	Other consumer loans	5,426		69		5.08		5,597		70		5.00		6,201		78		4.96
	Credit cards	919		35		15.22		933		34		14.63		991		35		14.16

	Total consumer loans	33,194		371		4.46		33,862		375		4.44		36,069		399		4.40
	Total loans	106,244		1,528		5.73		108,961		1,536		5.66		117,627		1,601		5.41
	Loans held for sale	1,098		18		6.54		599		8		5.42		1,356		19		5.73
	Securities available for sale (b), (e)	36,700		298		2.87		36,764		259		2.42		37,271		192		1.76
	Held-to-maturity securities (b)	7,838		70		3.58		8,123		73		3.59		9,020		79		3.50
	Trading account assets	1,142		15		5.08		1,231		16		5.38		1,203		15		4.97
	Short-term investments	17,773		244		5.47		13,729		192		5.62		8,416		123		5.79
	Other investments (e)	1,193		14		4.77		1,234		16		5.19		1,395		22		6.35
	Total earning assets	171,988		2,187		4.93		170,641		2,100		4.77		176,288		2,051		4.47
	Allowance for loan and lease losses	(1,533)						(1,534)						(1,477)
	Accrued income and other assets	17,154						17,476						17,530
	Discontinued assets	284						305						374
	Total assets	$	187,893					$	186,888					$	192,715
Liabilities
	Money market deposits	$	40,379	$	309	3.04	%	$	39,364	$	290	2.97	%	$	35,243	$	213	2.40	%
	Demand deposits	56,087		365		2.59		54,629		340		2.50		55,837		315		2.24
	Savings deposits	4,967		3		.22		5,189		2		.19		5,966		1		.05

	Time deposits	17,870		210		4.68		16,019		185		4.64		15,082		158		4.16
	Total interest-bearing deposits	119,303		887		2.96		115,201		817		2.85		112,128		687		2.43
	Federal funds purchased and securities sold under repurchase agreements	98		1		4.48		124		1		4.76		710		9		5.04
	Bank notes and other short-term borrowings	3,172		43		5.44		3,617		51		5.57		5,819		81		5.54
	Long-term debt (f)	16,422		292		7.09		19,219		332		6.91		21,584		351		6.50
	Total interest-bearing liabilities	138,995		1,223		3.50		138,161		1,201		3.49		140,241		1,128		3.20
	Noninterest-bearing deposits	28,468						28,979						32,697
	Accrued expense and other liabilities	4,387						4,969						5,572
	Discontinued liabilities (f)	284						305						374
	Total liabilities	$	172,134					$	172,414					$	178,884
Equity
	Key shareholders’ equity	$	15,759					$	14,474					$	13,831
	Noncontrolling interests	—						—						—
	Total equity	15,759						14,474						13,831
	Total liabilities and equity	$	187,893					$	186,888					$	192,715
Interest rate spread (TE)						1.43	%					1.28	%					1.27	%
Net interest income (TE) and net interest margin (TE)				$	964	2.17	%			$	899	2.04	%			$	923	2.01	%
TE adjustment (b)				12						12						8
	Net interest income, GAAP basis			$	952					$	887					$	915

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.

(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023.

(c)For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)Commercial and industrial average balances include $215 million, $218 million, and $202 million of assets from commercial credit cards for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

(e)Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $41.6 billion, $42.8 billion, and $43.6 billion for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Yield based on the fair value of securities available for sale was 3.25%, 2.82%, and 2.06% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.

TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 20



Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		Nine months ended September 30, 2024						Nine months ended September 30, 2023
		Average				Yield/		Average				Yield/
		Balance		Interest (a)		Rate (a)		Balance		Interest (a)		Rate (a)
Assets
	Loans: (b), (c)
	Commercial and industrial (d)	$	54,309	$	2,561	6.30	%	$	60,294	$	2,574	5.71	%
	Real estate — commercial mortgage	14,328		671		6.25		16,178		697		5.76
	Real estate — construction	3,046		172		7.56		2,663		131		6.58
	Commercial lease financing	3,175		81		3.38		3,749		86		3.06
	Total commercial loans	74,858		3,485		6.22		82,884		3,488		5.63
	Real estate — residential mortgage	20,514		508		3.30		21,534		524		3.25
	Home equity loans	6,824		305		5.98		7,621		325		5.71
	Other consumer loans	5,607		211		5.02		6,346		230		4.84
	Credit cards	935		104		14.92		986		101		13.68

	Total consumer loans	33,880		1,128		4.44		36,487		1,180		4.32
	Total loans	108,738		4,613		5.67		119,371		4,668		5.23
	Loans held for sale	862		40		6.14		1,118		49		5.90
	Securities available for sale (b), (e)	36,850		789		2.48		38,440		580		1.74
	Held-to-maturity securities (b)	8,127		218		3.58		9,108		234		3.43
	Trading account assets	1,161		45		5.23		1,150		42		4.82
	Short-term investments	13,929		578		5.55		6,600		276		5.59
	Other investments (e)	1,221		47		5.12		1,423		51		4.78
	Total earning assets	170,888		6,330		4.79		177,210		5,900		4.30
	Allowance for loan and lease losses	(1,524)						(1,398)
	Accrued income and other assets	17,327						17,411
	Discontinued assets	306						395
	Total assets	$	186,997					$	193,618
Liabilities
	Money market deposits	$	39,139	$	863	2.94	%	$	33,829	$	414	1.64	%
	Other demand deposits	55,619		1,062		2.55		53,951		754		1.87
	Savings deposits	5,136		6		.16		6,630		2		.04

	Time deposits	16,113		555		4.60		13,615		398		3.90
	Total interest-bearing deposits	116,007		2,486		2.86		108,025		1,568		1.94
	Federal funds purchased and securities sold under repurchase agreements	109		3		4.44		2,183		79		4.84
	Bank notes and other short-term borrowings	3,371		140		5.55		6,797		263		5.17
	Long-term debt (f)	18,386		952		6.90		21,341		975		6.09
	Total interest-bearing liabilities	137,873		3,581		3.47		138,346		2,885		2.79
	Noninterest-bearing deposits	28,947						35,691
	Accrued expense and other liabilities	4,908						5,166
	Discontinued liabilities (f)	306						395
	Total liabilities	$	172,034					$	179,598
Equity
	Key shareholders’ equity	$	14,963					$	14,020
	Noncontrolling interests	—						—
	Total equity	14,963						14,020
	Total liabilities and equity	$	186,997					$	193,618
Interest rate spread (TE)						1.32	%					1.52	%
Net interest income (TE) and net interest margin (TE)				$	2,749	2.08	%			$	3,015	2.20	%
TE adjustment (b)				35						23
	Net interest income, GAAP basis			$	2,714					$	2,992

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.

(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the nine months ended September 30, 2024, and September 30, 2023, respectively.

(c)For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)Commercial and industrial average balances include $215 million and $192 million of assets from commercial credit cards for the nine months ended September 30, 2024, and September 30, 2023, respectively.

(e)Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $42.4 billion and $44.5 billion for the nine months ended September 30, 2024, and September 30, 2023, respectively. Yield based on the fair value of securities available for sale was 2.85% and 2.01% for the nine months ended September 30, 2024, and September 30, 2023, respectively.

TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 21


Noninterest Expense
(Dollars in millions)

	Three months ended						Nine months ended
	9/30/2024		6/30/2024		9/30/2023		9/30/2024		9/30/2023
Personnel (a)	$	670	$	636	$	663	$	1,980	$	1,986
Net occupancy	66		66		67		199		202
Computer processing	104		101		89		307		276
Business services and professional fees	41		37		38		119		124
Equipment	20		20		20		60		64
Operating lease expense	14		17		18		48		59
Marketing	21		21		28		61		78



Other expense	158		181		187		542		573
Total noninterest expense	$	1,094	$	1,079	$	1,110	$	3,316	$	3,362


Average full-time equivalent employees (b)	16,805		16,646		17,666		16,734		17,880

(a)Additional detail provided in Personnel Expense table below.

(b)The number of average full-time equivalent employees has not been adjusted for discontinued operations.


Personnel Expense
(Dollars in millions)

	Three months ended						Nine months ended
	9/30/2024		6/30/2024		9/30/2023		9/30/2024		9/30/2023
Salaries and contract labor	$	408	$	394	$	415	$	1,191	$	1,250
Incentive and stock-based compensation	162		143		141		464		386
Employee benefits	99		98		106		323		308
Severance	1		1		1		2		42
Total personnel expense	$	670	$	636	$	663	$	1,980	$	1,986

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 22


Loan Composition
(Dollars in millions)

							Change 9/30/2024 vs.
	9/30/2024		6/30/2024		9/30/2023		6/30/2024		9/30/2023
Commercial and industrial (a)(b)	$	52,774	$	53,129	$	57,606	(.7)	%	(8.4)	%
Commercial real estate:
Commercial mortgage	13,637		14,218		15,549		(4.1)		(12.3)
Construction	3,093		3,077		2,982		.5		3.7
Total commercial real estate loans	16,730		17,295		18,531		(3.3)		(9.7)
Commercial lease financing (b)	2,913		3,101		3,681		(6.1)		(20.9)
Total commercial loans	72,417		73,525		79,818		(1.5)		(9.3)
Residential — prime loans:
Real estate — residential mortgage	20,122		20,380		21,309		(1.3)		(5.6)
Home equity loans	6,555		6,729		7,324		(2.6)		(10.5)
Total residential — prime loans	26,677		27,109		28,633		(1.6)		(6.8)
Other consumer loans	5,338		5,514		6,105		(3.2)		(12.6)
Credit cards	914		930		988		(1.7)		(7.5)

Total consumer loans	32,929		33,553		35,726		(1.9)		(7.8)
Total loans (c), (d)	$	105,346	$	107,078	$	115,544	(1.6)	%	(8.8)	%

(a)Loan balances include $219 million, $217 million, and $207 million of commercial credit card balances at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $261 million at September 30, 2024, $285 million at June 30, 2024 and no amounts held as collateral for a secured borrowing at September 30, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $3 million, $5 million, and $4 million at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $272 million at September 30, 2024, $291 million at June 30, 2024, and $360 million at September 30, 2023, related to the discontinued operations of the education lending business.

(d)Accrued interest of $480 million, $487 million, and $522 million at September 30, 2024, June 30, 2024, and September 30, 2023, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.


Loans Held for Sale Composition
(Dollars in millions)

							Change 9/30/2024 vs.
	9/30/2024		6/30/2024		9/30/2023		6/30/2024		9/30/2023
Commercial and industrial	$	250	$	72	$	47	247.2	%	431.9	%
Real estate — commercial mortgage	747		354		571		111.0		30.8


Real estate — residential mortgage	61		91		112		(33.0)		(45.5)

Total loans held for sale	$	1,058	$	517	$	730	104.6	%	44.9	%


Summary of Changes in Loans Held for Sale
(Dollars in millions)

	3Q24		2Q24		1Q24		4Q23		3Q23
Balance at beginning of period	$	517	$	228	$	483	$	730	$	1,130
New originations	2,473		1,532		1,738		1,879		3,035
Transfers from (to) held to maturity, net	(16)		(1)		(105)		(31)		(94)
Loan sales	(1,889)		(1,234)		(1,893)		(2,095)		(3,312)
Loan draws (payments), net	(28)		(7)		4		—		(29)
Valuation and other adjustments	1		(1)		1		—		—
Balance at end of period	$	1,058	$	517	$	228	$	483	$	730

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 23


Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)

	Three months ended									Nine months ended
	9/30/2024			6/30/2024			9/30/2023			9/30/2024			9/30/2023
Average loans outstanding	$	106,244		$	108,961		$	117,627		$	108,738		$	119,371


Allowance for loan and lease losses at the beginning of the period	$	1,547		$	1,542		$	1,480		$	1,508		$	1,337
Loans charged off:
Commercial and industrial	131			86			62			279			139

Real estate — commercial mortgage	7			10			1			22			15
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	7			10			1			22			15
Commercial lease financing	—			6			—			6			—
Total commercial loans	138			102			63			307			154
Real estate — residential mortgage	—			1			—			2			1
Home equity loans	1			—			1			2			4
Other consumer loans	17			16			14			49			37
Credit cards	11			12			9			35			27

Total consumer loans	29			29			24			88			69
Total loans charged off	167			131			87			395			223
Recoveries:
Commercial and industrial	7			31			10			46			33

Real estate — commercial mortgage	1			1			—			2			1
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	1			1			—			2			1
Commercial lease financing	—			3			1			5			4
Total commercial loans	8			35			11			53			38
Real estate — residential mortgage	1			1			1			4			3
Home equity loans	1			—			1			2			3
Other consumer loans	2			2			2			6			7
Credit cards	1			2			1			4			4

Total consumer loans	5			5			5			16			17
Total recoveries	13			40			16			69			55
Net loan charge-offs	(154)			(91)			(71)			(326)			(168)
Provision (credit) for loan and lease losses	101			96			79			312			319

Allowance for loan and lease losses at end of period	$	1,494		$	1,547		$	1,488		$	1,494		$	1,488




Liability for credit losses on lending-related commitments at beginning of period	$	286		$	281		$	291		$	296		$	225
Provision (credit) for losses on lending-related commitments	(6)			4			2			(16)			68
Other	—			1			(3)			—			(3)
Liability for credit losses on lending-related commitments at end of period (a)	$	280		$	286		$	290		$	280		$	290

Total allowance for credit losses at end of period	$	1,774		$	1,833		$	1,778		$	1,774		$	1,778

Net loan charge-offs to average total loans	.58		%	.34		%	.24		%	.40		%	.19		%
Allowance for loan and lease losses to period-end loans	1.42			1.44			1.29			1.42			1.29
Allowance for credit losses to period-end loans	1.68			1.71			1.54			1.68			1.54
Allowance for loan and lease losses to nonperforming loans	205			218			327			205			327
Allowance for credit losses to nonperforming loans	244			258			391			244			391

Discontinued operations — education lending business:
Loans charged off	$	1		$	1		$	—		$	3		$	3
Recoveries	—			1			—			1			1
Net loan charge-offs	$	(1)		$	—		$	—		$	(2)		$	(2)

(a)Included in "Accrued expense and other liabilities" on the balance sheet.

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 24


Asset Quality Statistics From Continuing Operations
(Dollars in millions)
	3Q24			2Q24			1Q24			4Q23			3Q23
Net loan charge-offs	$	154		$	91		$	81		$	76		$	71
Net loan charge-offs to average total loans	.58		%	.34		%	.29		%	.26		%	.24		%
Allowance for loan and lease losses	$	1,494		$	1,547		$	1,542		$	1,508		$	1,488
Allowance for credit losses (a)	1,774			1,833			1,823			1,804			1,778
Allowance for loan and lease losses to period-end loans	1.42		%	1.44		%	1.40		%	1.34		%	1.29		%
Allowance for credit losses to period-end loans	1.68			1.71			1.66			1.60			1.54
Allowance for loan and lease losses to nonperforming loans	205			218			234			263			327
Allowance for credit losses to nonperforming loans	244			258			277			314			391
Nonperforming loans at period end	$	728		$	710		$	658		$	574		$	455
Nonperforming assets at period end	741			727			674			591			471
Nonperforming loans to period-end portfolio loans	.69		%	.66		%	.60		%	.51		%	.39		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.70			.68			.61			.52			.41

(a)Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.


Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Commercial and industrial	$	365		$	358		$	360		$	297		$	214

Real estate — commercial mortgage	176			173			113			100			63
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	176			173			113			100			63
Commercial lease financing	—			1			1			—			1
Total commercial loans	541			532			474			397			278
Real estate — residential mortgage	87			77			79			71			72
Home equity loans	90			91			95			97			97
Other Consumer loans	4			4			4			4			4
Credit cards	6			6			6			5			4

Total consumer loans	187			178			184			177			177
Total nonperforming loans (a)	728			710			658			574			455
OREO	13			17			16			17			16
Nonperforming loans held for sale	—			—			—			—			—
Other nonperforming assets	—			—			—			—			—
Total nonperforming assets	$	741		$	727		$	674		$	591		$	471
Accruing loans past due 90 days or more	$	166		$	137		$	119		$	107		$	52
Accruing loans past due 30 through 89 days	184			282			242			222			178
Nonperforming assets from discontinued operations — education lending business	2			3			2			3			2
Nonperforming loans to period-end portfolio loans	.69		%	.66		%	.60		%	.51		%	.39		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.70			.68			.61			.52			.41


Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
	3Q24		2Q24		1Q24		4Q23		3Q23
Balance at beginning of period	$	710	$	658	$	574	$	455	$	431
Loans placed on nonaccrual status	271		317		243		297		159

Charge-offs	(167)		(131)		(97)		(95)		(87)
Loans sold	(32)		(22)		(5)		(9)		(4)
Payments	(37)		(76)		(35)		(56)		(25)
Transfers to OREO	(1)		(1)		(2)		(2)		(3)


Loans returned to accrual status	(16)		(35)		(20)		(16)		(16)
Balance at end of period	$	728	$	710	$	658	$	574	$	455

KeyCorp Reports Third Quarter 2024 Results

October 17, 2024

Page 25


Line of Business Results
(Dollars in millions)

																Change 3Q24 vs.
	3Q24			2Q24			1Q24			4Q23			3Q23			2Q24		3Q23
Consumer Bank
Summary of operations
Total revenue (TE)	$	814		$	769		$	757		$	770		$	775		5.9	%	5.0	%
Provision for credit losses	52			33			(2)			5			14			57.6		271.4
Noninterest expense	649			648			704			779			676			.2		(4.0)
Net income (loss) attributable to Key	86			67			41			(11)			65			28.4		32.3
Average loans and leases	38,332			39,174			39,919			40,763			41,610			(2.1)		(7.9)
Average deposits	86,431			85,397			84,075			83,557			82,683			1.2		4.5
Net loan charge-offs	54			45			44			40			36			20.0		50.0
Net loan charge-offs to average total loans	.56		%	.46		%	.44		%	.39		%	.34		%	21.7		64.7
Nonperforming assets at period end	$	195		$	190		$	196		$	190		$	190		2.6		2.6
Return on average allocated equity	10.34		%	7.93		%	4.69		%	(1.28)		%	7.42		%	30.4		39.4


Commercial Bank
Summary of operations
Total revenue (TE)	$	868		$	770		$	798		$	804		$	809		12.7	%	7.3	%
Provision for credit losses	41			87			102			96			68			(52.9)		(39.7)
Noninterest expense	445			432			442			526			433			3.0		2.8
Net income (loss) attributable to Key	300			207			205			150			240			44.9		25.0
Average loans and leases	67,452			69,248			70,633			72,713			75,598			(2.6)		(10.8)
Average loans held for sale	998			522			840			635			1,268			91.2		(21.3)
Average deposits	58,696			57,360			56,331			58,196			56,078			2.3		4.7
Net loan charge-offs	99			64			37			35			35			54.7		182.9
Net loan charge-offs to average total loans	.58		%	.37		%	.21		%	.19		%	.18		%	56.8		222.2
Nonperforming assets at period end	$	546		$	537		$	478		$	401		$	281		1.7		94.3
Return on average allocated equity	11.98		%	8.31		%	8.24		%	5.88		%	9.11		%	44.2		31.5

TE = Taxable Equivalent


Selected Items Impact on Earnings(a)
(Dollars in millions, except per share amounts)
	Pretax(b)		After-tax at marginal rate(b)(c)
Quarter to date results	Amount		Net Income		EPS(d)
Three months ended September 30, 2024


Loss on sale of securities (other income)	$	(918)	$	(737)	$	(0.77)
FDIC special assessment (other expense)(d)	6		5		—


Three months ended June 30, 2024


FDIC special assessment (other expense)(e)	(5)		(4)		—

Three months ended March 31, 2024
FDIC special assessment (other expense)(e)	(29)		(22)		(0.02)
Three months ended December 31, 2023

Efficiency related expenses(f)	(67)		(51)		(0.05)
Pension settlement (other expense)	(18)		(14)		(0.02)
FDIC special assessment (other expense)(e)	(190)		(144)		(0.15)
Three months ended September 30, 2023
No items

(a)Includes items impacting results or trends during the period but are not considered non-GAAP adjustments.

(b)Favorable (unfavorable) impact.

(c)After-tax loss on sale of securities adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments to be required in the fourth quarter of 2024.

(d)Impact to EPS reflected on a fully diluted basis.

(e)In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024. Amounts reflected for both the three-months ended June 30, 2024, and September 30, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.

(f)Efficiency related expenses for the three-months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.