Document

EX-99.1 2 a1q25earningsrelease.htm EX-99.1 Document

KEYCORP REPORTS FIRST QUARTER 2025 NET INCOME OF $370 MILLION,

OR $.33 PER DILUTED COMMON SHARE

Revenue of $1.8 billion, up 16% year-over-year; noninterest expense down 1% year-over-year

Net interest income up 4% quarter-over-quarter

Improved credit metrics - nonperforming assets declined by 9% and net charge-offs by 4% quarter-over-quarter

Common equity tier 1 ratio of 11.8%, up ~150 basis points year-over-year

CLEVELAND, April 17, 2025 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $370 million, or $.33 per diluted common share for the first quarter of 2025. For the fourth quarter of 2024, KeyCorp reported a net loss from continuing operations attributable to Key common shareholders of $(279) million, or $(.28) per diluted common share, or adjusted net income of $378 million, or $.38 per diluted common share(a). Net income from continuing operations attributable to Key common shareholders was $183 million, or $.20 per diluted common share, or adjusted net income of $205 million or $.22 per diluted common share(a), for the first quarter of 2024. Included in the fourth quarter of 2024 are $657 million, or $.66 per diluted common share, after-tax, of charges related to the loss on the sale of securities(b). Included in the first quarter of 2024 are $22 million, or $.02 per diluted common share, after-tax, of charges related to the FDIC special assessment(b).

Comments from Chairman and CEO, Chris Gorman

"Our first quarter results marked a strong beginning to the year. Revenue was up 16% year-over-year while expenses were essentially flat. We achieved both absolute and fee-based positive operating leverage on a year-over-year basis. Sequentially, net interest income grew 4% and the net interest margin increased by 17 basis points to 2.58%. On an adjusted basis(a), pre-provision net revenue increased more than $90 million from the prior quarter. Credit quality remained strong, with credit migration trends improving for the fifth consecutive quarter.

Our strong financial results are a function of continued momentum with both clients and prospects. Client deposits were up 4% year-over-year while deposit betas continue to improve. Commercial loans grew $1.2 billion from year-end levels. We continued to demonstrate progress in each of our strategic, fee-based businesses – wealth management, commercial payments, and investment banking.

As we look to the future, we are confident in our ability to navigate the current environment from a position of strength. We ended the quarter with a strong capital position – a luxury that gives us both flexibility and resiliency. Our liquidity position is robust and our credit metrics continue to improve.

We enjoy strong earnings and business momentum and clearly defined net interest income tailwinds. I remain confident in our ability to perform well under a wide range of potential macroeconomic scenarios.”

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

(b) See table on page 23 for more information on Selected Items Impact on Earnings.

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 2


Selected Financial Highlights

Dollars in millions, except per share data										Change 1Q25 vs.
	1Q25			4Q24			1Q24			4Q24		1Q24
Income (loss) from continuing operations attributable to Key common shareholders	$	370		$	(279)		$	183		232.6	%	102.2	%

Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution	.33			(.28)			.20			217.9		65.0

Return on average tangible common equity from continuing operations (a)	11.24		%	(9.69)		%	7.87		%	N/A		N/A

Return on average total assets from continuing operations	.88			(.52)			.47			N/A		N/A

Common Equity Tier 1 ratio (b)	11.8			11.9			10.3			N/A		N/A
Book value at period end	$	14.89		$	14.21		$	12.84		4.8		16.0
Net interest margin (TE) from continuing operations	2.58		%	2.41		%	2.02		%	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)March 31, 2025 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable


INCOME STATEMENT HIGHLIGHTS

Revenue

Dollars in millions							Change 1Q25 vs.
	1Q25		4Q24		1Q24		4Q24		1Q24
Net interest income (TE)	$	1,105	$	1,061	$	886	4.1	%	24.7	%
Noninterest income	668		(196)		647		440.8		3.2
Total revenue (TE)	$	1,773	$	865	$	1,533	105.0	%	15.7	%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.1 billion for the first quarter of 2025 and the net interest margin was 2.58%. Compared to the first quarter of 2024, net interest income increased by $219 million, and the net interest margin increased by 56 basis points. These increases primarily reflect the impact of lower deposit costs, reinvestment of proceeds from maturing low-yielding investment securities, fixed rate loans and swaps into higher yielding investments, the repositioning of the available-for-sale portfolio during the third and fourth quarters of 2024, and an improved funding mix as lower-cost deposits increased while wholesale borrowings declined. These benefits were partially offset by the impact of lower interest rates on repricing earning assets and lower loan balances.

Compared to the fourth quarter of 2024, taxable-equivalent net interest income increased by $44 million, and the net interest margin increased by 17 basis points. These increases were driven by a decline in funding costs, including interest-bearing deposit costs, impact from the second tranche of the available-for-sale portfolio repositioning, which was completed during the fourth quarter of 2024, and from the redeployment of low yielding investments into higher yielding investment securities. These benefits more than offset the impact from lower interest rates on repricing earning assets, and two fewer days in the first quarter of 2025 compared to the fourth quarter of 2024.

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 3


Noninterest Income

Dollars in millions							Change 1Q25 vs.
	1Q25		4Q24		1Q24		4Q24		1Q24
Trust and investment services income	$	139	$	142	$	136	(2.1)	%	2.2	%
Investment banking and debt placement fees	175		221		170		(20.8)		2.9
Cards and payments income	82		85		77		(3.5)		6.5
Service charges on deposit accounts	69		65		63		6.2		9.5
Corporate services income	65		69		69		(5.8)		(5.8)
Commercial mortgage servicing fees	76		68		56		11.8		35.7
Corporate-owned life insurance income	33		36		32		(8.3)		3.1
Consumer mortgage income	13		16		14		(18.8)		(7.1)
Operating lease income and other leasing gains	9		15		24		(40.0)		(62.5)
Other income	7		(5)		9		240.0		(22.2)
Net securities gains (losses)	—		(908)		(3)		N/M		N/M
Total noninterest income	$	668	$	(196)	$	647	440.8	%	3.2	%

N/M = Not Meaningful

Compared to the first quarter of 2024, noninterest income increased by $21 million. The increase was driven by a $20 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances and overall growth of the servicing portfolio. We also continued to see momentum across investment banking, wealth management and commercial payments, which offset a $15 million decrease in operating lease income and other leasing gains.

Compared to the fourth quarter of 2024, noninterest income increased by $864 million. The increase was driven primarily by a $915 million loss on the sale of securities as part of a strategic repositioning of the available-for-sale portfolio that impacted earnings in the fourth quarter of 2024. The increase was partly offset by a $46 million decrease in investment banking and debt placement fees.


Noninterest Expense

Dollars in millions							Change 1Q25 vs.
	1Q25		4Q24		1Q24		4Q24		1Q24
Personnel expense	$	680	$	734	$	674	(7.4)	%	.9	%
Net occupancy	67		67		67		—		—
Computer processing	107		107		102		—		4.9
Business services and professional fees	40		55		41		(27.3)		(2.4)
Equipment	20		20		20		—		—
Operating lease expense	11		15		17		(26.7)		(35.3)
Marketing	21		33		19		(36.4)		10.5



Other expense	185		198		203		(6.6)		(8.9)
Total noninterest expense	$	1,131	$	1,229	$	1,143	(8.0)	%	(1.0)	%

Compared to the first quarter of 2024, noninterest expense decreased by $12 million. The decrease was driven by an $18 million decrease in other expense due to a FDIC special assessment charge in the first quarter of 2024, which more than offset increases in personnel and technology-related investments.

Compared to the fourth quarter of 2024, noninterest expense decreased by $98 million. The decrease was primarily driven by a $54 million decline in personnel expense, primarily related to lower incentive compensation, as well as lower employee benefits expense. Additionally, business services and professional fees, marketing and other expenses declined primarily due to seasonality and some elevated expenses in the fourth quarter of 2024.

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 4


BALANCE SHEET HIGHLIGHTS

Average Loans

Dollars in millions							Change 1Q25 vs.
	1Q25		4Q24		1Q24		4Q24		1Q24
Commercial and industrial (a)	$	53,746	$	52,887	$	55,220	1.6	%	(2.7)	%
Other commercial loans	18,619		19,202		21,222		(3.0)		(12.3)
Total consumer loans	31,989		32,622		34,592		(1.9)		(7.5)
Total loans	$	104,354	$	104,711	$	111,034	(.3)	%	(6.0)	%

(a)Commercial and industrial average loan balances include $213 million, $216 million, and $211 million of assets from commercial credit cards at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Average loans were $104.4 billion for the first quarter of 2025, a decrease of $6.7 billion compared to the first quarter of 2024, generally reflective of tepid client loan demand. Average commercial loans declined by $4.1 billion and average consumer loans declined by $2.6 billion, reflective of broad-based declines across all loan categories.

Compared to the fourth quarter of 2024, average loans decreased by $357 million. Average commercial loans increased $276 million, primarily driven by an increase in commercial and industrial loans, offset by continued paydown activity in commercial mortgage real estate. Average consumer loans declined by $633 million, reflective of the intentional run-off of low yielding loans.


Average Deposits

Dollars in millions										Change 1Q25 vs.
	1Q25			4Q24			1Q24			4Q24		1Q24
Non-time deposits	$	131,917		$	132,092		$	128,448		(.1)	%	2.7	%

Time deposits	16,625			17,641			14,430			(5.8)		15.2
Total deposits	$	148,542		$	149,733		$	142,878		(.8)	%	4.0	%

Cost of total deposits	2.06		%	2.18		%	2.20		%	N/A		N/A

N/A = Not Applicable

Average deposits totaled $148.5 billion for the first quarter of 2025, an increase of $5.7 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.

Compared to the fourth quarter of 2024, average deposits decreased by $1.2 billion, driven by a seasonal decrease in commercial deposit balances. The rate paid on interest-bearing deposits declined by 18 basis points, and the overall cost of deposits declined by 12 basis points.


ASSET QUALITY

Dollars in millions										Change 1Q25 vs.
	1Q25			4Q24			1Q24			4Q24		1Q24
Net loan charge-offs	$	110		$	114		$	81		(3.5)	%	35.8	%
Net loan charge-offs to average total loans	.43		%	.43		%	.29		%	N/A		N/A
Nonperforming loans at period end	$	686		$	758		$	658		(9.5)		4.3
Nonperforming assets at period end	700			772			674			(9.3)		3.9
Allowance for loan and lease losses	1,429			1,409			1,542			1.4		(7.3)
Allowance for credit losses	1,707			1,699			1,823			0.5		(6.4)
Provision for credit losses	118			39			101			202.6		16.8

Allowance for loan and lease losses to nonperforming loans	208		%	186		%	234		%	N/A		N/A
Allowance for credit losses to nonperforming loans	249			224			277			N/A		N/A

N/A = Not Applicable

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 5

Key's provision for credit losses was $118 million, compared to $101 million in the first quarter of 2024 and $39 million in the fourth quarter of 2024. The increase from the year-ago quarter is driven by higher net loan charge-offs. The increase from the prior quarter reflects a reserve build driven by uncertainty in the economic outlook, partly offset by a reserve release due to improved credit migration trends.

Net loan charge-offs for the first quarter of 2025 totaled $110 million, or 0.43% of average total loans. These results compare to $81 million, or 0.29%, for the first quarter of 2024 and $114 million, or 0.43%, for the fourth quarter of 2024. Key’s allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans at March 31, 2025, compared to 1.66% at March 31, 2024, and 1.63% at December 31, 2024.

At March 31, 2025, Key’s nonperforming loans totaled $686 million, which represented 0.65% of period-end portfolio loans. These results compare to 0.60% at March 31, 2024, and 0.73% at December 31, 2024. Nonperforming assets at March 31, 2025, totaled $700 million, and represented 0.67% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.61% at March 31, 2024, and 0.74% at December 31, 2024.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2025.


Capital Ratios

	3/31/2025		12/31/2024		3/31/2024
Common Equity Tier 1 (a)	11.8	%	11.9	%	10.3	%

Tier 1 risk-based capital (a)	13.5		13.7		12.0
Total risk-based capital (a)	15.9		16.2		14.5
Tangible common equity to tangible assets (b)	7.4		7.0		5.0
Leverage (a)	10.2		10.0		9.1

(a)March 31, 2025 ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect 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 first quarter of 2025. As shown in the preceding table, at March 31, 2025, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.8% and 13.5%, respectively.


Summary of Changes in Common Shares Outstanding

In thousands					Change 1Q25 vs.
		1Q25	4Q24	1Q24	4Q24		1Q24
Shares outstanding at beginning of period		1,106,786	991,251	936,564	11.7	%	18.2	%

Shares issued under employee compensation plans (net of cancellations and returns)		5,200	493	6,212	954.8		(16.3)
Shares issued under Scotiabank investment agreement		—	115,042	—	N/M		N/M
	Shares outstanding at end of period	1,111,986	1,106,786	942,776	.5	%	17.9	%

N/M = Not Meaningful

Key declared a dividend in January of 2025 of $.205 per common share, payable in the first quarter of 2025.

In March 2025, KeyCorp's Board of Directors authorized a new repurchase program pursuant to which KeyCorp may purchase up to $1 billion of KeyCorp common shares in the open market or in privately negotiated transactions.

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 6

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 1Q25 vs.
		1Q25		4Q24		1Q24		4Q24		1Q24
Revenue from continuing operations (TE)
Consumer Bank		$	874	$	872	$	757	.2	%	15.5	%
Commercial Bank		942		999		798		(5.7)		18.0
Other (a)		(43)		(1,006)		(22)		95.7		(95.5)


	Total	$	1,773	$	865	$	1,533	105.0	%	15.7	%

Income (loss) from continuing operations attributable to Key
Consumer Bank		$	118	$	88	$	41	34.1	%	187.8	%
Commercial Bank		321		379		205		(15.3)		56.6
Other (a)		(33)		(711)		(27)		95.4		(22.2)


	Total	$	406	$	(244)	$	219	266.4	%	85.4	%

(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


Consumer Bank

Dollars in millions							Change 1Q25 vs.
	1Q25		4Q24		1Q24		4Q24		1Q24
Summary of operations
Net interest income (TE)	$	648	$	637	$	532	1.7	%	21.8	%
Noninterest income	226		235		225		(3.8)		.4
Total revenue (TE)	874		872		757		.2		15.5
Provision for credit losses	43		43		(2)		—		N/M
Noninterest expense	676		713		704		(5.2)		(4.0)
Income (loss) before income taxes (TE)	155		116		55		33.6		181.8
Allocated income taxes (benefit) and TE adjustments	37		28		14		32.1		164.3
Net income (loss) attributable to Key	$	118	$	88	$	41	34.1	%	187.8	%

Average balances
Loans and leases	$	36,819	$	37,567	$	39,919	(2.0)	%	(7.8)	%
Total assets	39,806		40,563		42,710		(1.9)		(6.8)
Deposits	88,306		87,476		84,075		.9		5.0

Assets under management at period end	$	61,053	$	61,361	$	57,305	(.5)	%	6.5	%

TE = Taxable Equivalent; N/M = Not Meaningful

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 7


Additional Consumer Bank Data

Dollars in millions							Change 1Q25 vs.
	1Q25		4Q24		1Q24		4Q24		1Q24
Noninterest income
Trust and investment services income	$	113	$	115	$	110	(1.7)	%	2.7	%
Service charges on deposit accounts	33		32		33		3.1		—
Cards and payments income	57		64		57		(10.9)		—
Consumer mortgage income	13		17		14		(23.5)		(7.1)
Other noninterest income	10		7		11		42.9		(9.1)
Total noninterest income	$	226	$	235	$	225	(3.8)	%	.4	%

Average deposit balances
Money market deposits	$	33,533	$	31,968	$	29,875	4.9	%	12.2	%
Demand deposits	22,771		22,442		22,213		1.5		2.5
Savings deposits	4,392		4,391		4,986		—		(11.9)

Time deposits	13,320		13,979		11,808		(4.7)		12.8
Noninterest-bearing deposits	14,290		14,696		15,193		(2.8)		(5.9)
Total deposits	$	88,306	$	87,476	$	84,075	.9	%	5.0	%






Other data
Branches	945		944		957
Automated teller machines	1,176		1,182		1,214

Consumer Bank Summary of Operations (1Q25 vs. 1Q24)

•Key's Consumer Bank recorded net income attributable to Key of $118 million for the first quarter of 2025, compared to $41 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $116 million, or 21.8%, compared to the first quarter of 2024

•Average loans and leases decreased $3.1 billion, or 7.8%, from the first quarter of 2024, driven by broad-based declines across all loan categories

•Average deposits increased $4.2 billion, or 5.0%, from the first quarter of 2024, driven by growth in money market deposits and certificates of deposit

•Provision for credit losses increased $45 million compared to the first quarter of 2024, primarily driven by changes in reserve levels due to uncertainty in the economic outlook and higher net loan charge-offs

•Noninterest income increased $1 million from the year-ago quarter, driven by an increase in trust and investment services

•Noninterest expense decreased $28 million from the year-ago quarter, primarily driven by a FDIC special assessment charge in the first quarter of 2024

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 8


Commercial Bank

Dollars in millions							Change 1Q25 vs.
	1Q25		4Q24		1Q24		4Q24		1Q24
Summary of operations
Net interest income (TE)	$	534	$	537	$	397	(.6)	%	34.5	%
Noninterest income	408		462		401		(11.7)		1.7
Total revenue (TE)	942		999		798		(5.7)		18.0
Provision for credit losses	75		(3)		102		N/M		(26.5)
Noninterest expense	462		516		442		(10.5)		4.5
Income (loss) before income taxes (TE)	405		486		254		(16.7)		59.4
Allocated income taxes and TE adjustments	84		107		49		(21.5)		71.4


Net income (loss) attributable to Key	$	321	$	379	$	205	(15.3)	%	56.6	%

Average balances
Loans and leases	$	67,056	$	66,691	$	70,633	.5	%	(5.1)	%
Loans held for sale	754		1,247		840		(39.5)		(10.2)
Total assets	76,707		76,433		80,000		0.4		(4.1)
Deposits	57,436		59,687		56,331		(3.8)	%	2.0	%

TE = Taxable Equivalent; N/M = Not Meaningful


Additional Commercial Bank Data

Dollars in millions							Change 1Q25 vs.
	1Q25		4Q24		1Q24		4Q24		1Q24
Noninterest income
Trust and investment services income	$	27	$	26	$	27	3.8	%	—	%
Investment banking and debt placement fees	175		220		170		(20.5)		2.9
Cards and payments income	21		18		20		16.7		5.0
Service charges on deposit accounts	35		32		29		9.4		20.7
Corporate services income	60		67		63		(10.4)		(4.8)
Commercial mortgage servicing fees	76		67		56		13.4		35.7
Operating lease income and other leasing gains	8		15		24		(46.7)		(66.7)
Other noninterest income	6		17		12		(64.7)		(50.0)
Total noninterest income	$	408	$	462	$	401	(11.7)	%	1.7	%

Commercial Bank Summary of Operations (1Q25 vs. 1Q24)

•Key's Commercial Bank recorded net income attributable to Key of $321 million for the first quarter of 2025 compared to $205 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $137 million, or 34.5%, compared to the first quarter of 2024

•Average loan and lease balances decreased $3.6 billion, or 5.1%, compared to the first quarter of 2024, driven by a decline in commercial real estate loans and commercial and industrial loans

•Average deposit balances increased $1.1 billion compared to the first quarter of 2024, driven by our focus on growing deposits across our commercial businesses

•Provision for credit losses decreased $27 million compared to the first quarter of 2024, driven by a lower reserve build due to slowing asset quality migration, which was partly offset by the impact of uncertainty in the economic outlook and higher net loan charge-offs

•Noninterest income increased $7 million compared to the first quarter of 2024, primarily driven by an increase in commercial mortgage servicing fees and service charges on deposit accounts

•Noninterest expense increased $20 million compared to the first quarter of 2024, driven by higher personnel expense

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

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 $189 billion at March 31, 2025.

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 First Quarter 2025 Results

April 17, 2025

Page 10


CONTACTS:

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

Hannah Lewallen			Beth Strauss
216.689.4221			216.471.2787
Hannah_Lewallen@KeyBank.com			Beth_A_Strauss@KeyBank.com

Johnny Li
216.689.4221
Johnny_Li@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, 2024 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, 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.

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 8:00 a.m. ET, on April 17, 2025. A replay of the call will be available on our website through April 17, 2026.

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 First Quarter 2025 Results

April 17, 2025

Page 11

KeyCorp

First Quarter 2025

Financial Supplement


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

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

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).

Forward-Looking Non-GAAP Financial Measures

From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.

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

The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. 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 loans, and certain lease assets, on a common basis that facilitates comparison of results to 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 First Quarter 2025 Results

April 17, 2025

Page 13


Financial Highlights
(Dollars in millions, except per share amounts)
			Three months ended
			3/31/2025			12/31/2024			3/31/2024
Summary of operations
	Net interest income (TE)		$	1,105		$	1,061		$	886
	Noninterest income		668			(196)			647
		Total revenue (TE)	1,773			865			1,533
	Provision for credit losses		118			39			101
	Noninterest expense		1,131			1,229			1,143
	Income (loss) from continuing operations attributable to Key		406			(244)			219
	Income (loss) from discontinued operations, net of taxes		(1)			—			—
	Net income (loss) attributable to Key		405			(244)			219

	Income (loss) from continuing operations attributable to Key common shareholders		370			(279)			183
	Income (loss) from discontinued operations, net of taxes		(1)			—			—
	Net income (loss) attributable to Key common shareholders		369			(279)			183
Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	.34		$	(.28)		$	.20
	Income (loss) from discontinued operations, net of taxes		—			—			—
	Net income (loss) attributable to Key common shareholders (a)		.34			(.28)			.20

	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.33			(.28)			.20
	Income (loss) from discontinued operations, net of taxes — assuming dilution		—			—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)		.33			(.28)			.20

	Cash dividends declared		.205			.205			.205
	Book value at period end		14.89			14.21			12.84
	Tangible book value at period end		12.40			11.70			9.87
	Market price at period end		15.99			17.14			15.81
Performance ratios
	From continuing operations:
	Return on average total assets		.88		%	(.52)		%	.47		%
	Return on average common equity		9.30			(7.80)			6.06
	Return on average tangible common equity (b)		11.24			(9.69)			7.87
	Net interest margin (TE)		2.58			2.41			2.02
	Cash efficiency ratio (b)		63.5			141.3			74.0
	From consolidated operations:
	Return on average total assets		.88		%	(.52)		%	.47		%
	Return on average common equity		9.28			(7.80)			6.06
	Return on average tangible common equity (b)		11.21			(9.69)			7.87
	Net interest margin (TE)		2.58			2.41			2.02
	Loan to deposit (c)		70.2			70.3			76.6
Capital ratios at period end
	Key shareholders’ equity to assets		10.1		%	9.7		%	7.8		%
	Key common shareholders’ equity to assets		8.8			8.4			6.5
	Tangible common equity to tangible assets (b)		7.4			7.0			5.0
	Common Equity Tier 1 (d)		11.8			11.9			10.3
	Tier 1 risk-based capital (d)		13.5			13.7			12.0
	Total risk-based capital (d)		15.9			16.2			14.5
	Leverage (d)		10.2			10.0			9.1
Asset quality — from continuing operations
	Net loan charge-offs		$	110		$	114		$	81
	Net loan charge-offs to average loans		.43		%	.43		%	.29		%
	Allowance for loan and lease losses		$	1,429		$	1,409		$	1,542
	Allowance for credit losses		1,707			1,699			1,823
	Allowance for loan and lease losses to period-end loans		1.36		%	1.35		%	1.40		%
	Allowance for credit losses to period-end loans		1.63			1.63			1.66
	Allowance for loan and lease losses to nonperforming loans		208			186			234
	Allowance for credit losses to nonperforming loans		249			224			277
	Nonperforming loans at period-end		$	686		$	758		$	658
	Nonperforming assets at period-end		700			772			674
	Nonperforming loans to period-end portfolio loans		.65		%	.73		%	.60		%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.67			.74			.61
Trust assets
	Assets under management		$	61,053		$	61,361		$	57,305


Other data
	Average full-time equivalent employees		16,989			16,810			16,752
	Branches		945			944			957
	Taxable-equivalent adjustment		$	9		$	10		$	11

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

(b)The table entitled “GAAP to Non-GAAP Reconciliations” starting on page 14 of this supplement 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)March 31, 2025, ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision.

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 14

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," "adjusted pre-provision net revenue," “cash efficiency ratio," "adjusted taxable-equivalent revenue," "noninterest expense adjusted for selected items," "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 and adjusted pre-provision net revenue, which are 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. Further, management believes that adjusting pre-provision net revenue for significant or unusual items that management does not consider indicative of ongoing financial performance provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

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 taxable-equivalent revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and significant or unusual items that management does not consider indicative of ongoing financial performance. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.

Noninterest expense adjusted for selected items is a non-GAAP measure in that it excludes significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

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 significant or unusual items, net of tax, that management does not consider indicative of ongoing financial performance . 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.

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
	3/31/2025			12/31/2024			3/31/2024
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)	$	19,003		$	18,176		$	14,547
Less: Intangible assets	2,774			2,779			2,799
Preferred Stock (a)	2,446			2,446			2,446
Tangible common equity (non-GAAP)	$	13,783		$	12,951		$	9,302
Total assets (GAAP)	$	188,691		$	187,168		$	187,485
Less: Intangible assets	2,774			2,779			2,799
Tangible assets (non-GAAP)	$	185,917		$	184,389		$	184,686
Tangible common equity to tangible assets ratio (non-GAAP)	7.41		%	7.02		%	5.04		%




Average tangible common equity
Average Key shareholders' equity (GAAP)	$	18,632		$	16,732		$	14,649
Less: Intangible assets (average)	2,777			2,783			2,802
Preferred stock (average)	2,500			2,500			2,500
Average tangible common equity (non-GAAP)	$	13,355		$	11,449		$	9,347
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	370		$	(279)		$	183


Average tangible common equity (non-GAAP)	13,355			11,449			9,347

Return on average tangible common equity from continuing operations (non-GAAP)	11.24		%	(9.69)		%	7.87		%

Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	369		$	(279)		$	183
Average tangible common equity (non-GAAP)	13,355			11,449			9,347

Return on average tangible common equity consolidated (non-GAAP)	11.21		%	(9.69)		%	7.87		%
Pre-provision net revenue
Net interest income (GAAP)	$	1,096		$	1,051		$	875
Plus: Taxable-equivalent adjustment	9			10			11
Noninterest income (GAAP)	668			(196)			647
Less: Noninterest expense (GAAP)	1,131			1,229			1,143
Pre-provision net revenue from continuing operations (non-GAAP)	$	642		$	(364)		$	390
Adjusted pre-provision net revenue
Pre-provision net revenue from continuing operations (non-GAAP)	$	642		$	(364)		$	390
Plus: Selected items(b)	—			915			29
Adjusted pre-provision net revenue from continuing operations (non-GAAP)	$	642		$	551		$	419

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 15


GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
	Three months ended
	3/31/2025			12/31/2024			3/31/2024













































Cash efficiency ratio
Noninterest expense (GAAP)	$	1,131		$	1,229		$	1,143
Less: Intangible asset amortization	5			7			8
Adjusted noninterest expense (non-GAAP)	$	1,126		$	1,222		$	1,135



Net interest income (GAAP)	$	1,096		$	1,051		$	875
Plus: Taxable-equivalent adjustment	9			10			11
Net interest income TE (non-GAAP)	1,105			1,061			886
Noninterest income (GAAP)	668			(196)			647
Total taxable-equivalent revenue (non-GAAP)	$	1,773		$	865		$	1,533



Cash efficiency ratio (non-GAAP)	63.5		%	141.3		%	74.0		%






Adjusted taxable-equivalent revenue
Noninterest income (GAAP)	$	668		$	(196)		$	647
Plus: Selected items(b)	—			918			—
Adjusted noninterest income (non-GAAP)	$	668		$	722		$	647
Net interest income TE (non-GAAP)	1,105			1,061			886
Total adjusted taxable-equivalent revenue (non-GAAP)	$	1,773		$	1,783		$	1,533
Noninterest expense adjusted for selected items
Noninterest expense (GAAP)	$	1,131		$	1,229		$	1,143
Plus: Selected items(b)	—			3			(29)
Noninterest expense adjusted for selected items (non-GAAP)	$	1,131		$	1,232		$	1,114
Adjusted income (loss) available from continuing operations attributable to Key common shareholders
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	370		$	(279)		$	183
Plus: Selected items (net of tax)(b)	—			657			22
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)	$	370		$	378		$	205
Diluted earnings per common share (EPS) - adjusted
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)	$	.33		$	(.28)		$	.20
Plus: EPS impact of selected items(b)	—			.66			.02
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)	$	.33		$	.38		$	.22

(a)Net of capital surplus.

(b)Additional detail provided in Selected Items table on page 23.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 16


Consolidated Balance Sheets
(Dollars in millions)

			3/31/2025		12/31/2024		3/31/2024
Assets
	Loans		$	104,809	$	104,260	$	109,885
	Loans held for sale		811		797		228
	Securities available for sale		40,751		37,707		37,298
	Held-to-maturity securities		7,160		7,395		8,272
	Trading account assets		1,296		1,283		1,171
	Short-term investments		15,349		17,504		13,205
	Other investments		1,050		1,041		1,247
		Total earning assets	171,226		169,987		171,306
	Allowance for loan and lease losses		(1,429)		(1,409)		(1,542)
	Cash and due from banks		1,909		1,743		1,247
	Premises and equipment		602		614		650
	Goodwill		2,752		2,752		2,752
	Other intangible assets		22		27		48
	Corporate-owned life insurance		4,404		4,394		4,392
	Accrued income and other assets		8,958		8,797		8,314
	Discontinued assets		247		263		318
		Total assets	$	188,691	$	187,168	$	187,485

Liabilities
	Deposits in domestic offices:





		Interest-bearing deposits	$	122,283	$	120,132	$	114,593
		Noninterest-bearing deposits	28,454		29,628		29,638
		Total deposits	150,737		149,760		144,231
	Federal funds purchased and securities sold under repurchase agreements		22		14		27
	Bank notes and other short-term borrowings		2,328		2,130		2,896
	Accrued expense and other liabilities		4,209		4,983		5,008
	Long-term debt		12,392		12,105		20,776
		Total liabilities	169,688		168,992		172,938

Equity
	Preferred stock		2,500		2,500		2,500
	Common shares		1,257		1,257		1,257
	Capital surplus		5,946		6,038		6,164
	Retained earnings		14,724		14,584		15,662
	Treasury stock, at cost		(2,637)		(2,733)		(5,722)
	Accumulated other comprehensive income (loss)		(2,787)		(3,470)		(5,314)
		Key shareholders’ equity	19,003		18,176		14,547


Total liabilities and equity			$	188,691	$	187,168	$	187,485

Common shares outstanding (000)			1,111,986		1,106,786		942,776

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 17


Consolidated Statements of Income
(Dollars in millions, except per share amounts)
			Three months ended
			3/31/2025		12/31/2024		3/31/2024
Interest income
	Loans		$	1,401	$	1,448	$	1,538
	Loans held for sale		14		20		14
	Securities available for sale		392		353		232
	Held-to-maturity securities		63		66		75
	Trading account assets		17		16		14
	Short-term investments		174		214		142
	Other investments		9		15		17
		Total interest income	2,070		2,132		2,032
Interest expense
	Deposits		753		821		782
	Federal funds purchased and securities sold under repurchase agreements		1		1		1
	Bank notes and other short-term borrowings		27		24		46
	Long-term debt		193		235		328
		Total interest expense	974		1,081		1,157
Net interest income			1,096		1,051		875
Provision for credit losses			118		39		101
Net interest income after provision for credit losses			978		1,012		774
Noninterest income
	Trust and investment services income		139		142		136
	Investment banking and debt placement fees		175		221		170
	Cards and payments income		82		85		77
	Service charges on deposit accounts		69		65		63
	Corporate services income		65		69		69
	Commercial mortgage servicing fees		76		68		56
	Corporate-owned life insurance income		33		36		32
	Consumer mortgage income		13		16		14
	Operating lease income and other leasing gains		9		15		24
	Other income		7		(5)		9
	Net securities gains (losses)		—		(908)		(3)
		Total noninterest income	668		(196)		647
Noninterest expense
	Personnel		680		734		674
	Net occupancy		67		67		67
	Computer processing		107		107		102
	Business services and professional fees		40		55		41
	Equipment		20		20		20
	Operating lease expense		11		15		17
	Marketing		21		33		19



	Other expense		185		198		203
		Total noninterest expense	1,131		1,229		1,143
Income (loss) from continuing operations before income taxes			515		(413)		278
	Income taxes (benefit)		109		(169)		59
Income (loss) from continuing operations			406		(244)		219
	Income (loss) from discontinued operations, net of taxes		(1)		—		—
Net income (loss)			$	405	$	(244)	$	219



Income (loss) from continuing operations attributable to Key common shareholders			$	370	$	(279)	$	183
Net income (loss) attributable to Key common shareholders			369		(279)		183
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.34	$	(.28)	$	.20
Income (loss) from discontinued operations, net of taxes			—		—		—
Net income (loss) attributable to Key common shareholders (a)			.34		(.28)		.20
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.33	$	(.28)	$	.20
Income (loss) from discontinued operations, net of taxes			—		—		—
Net income (loss) attributable to Key common shareholders (a)			.33		(.28)		.20

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

Weighted-average common shares outstanding (000)			1,096,654		986,829		929,692
	Effect of common share options and other stock awards(b)		9,486		—		7,319
Weighted-average common shares and potential common shares outstanding (000) (c)			1,106,140		986,829		937,011

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

(b)For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.

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

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 18


Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		First Quarter 2025						Fourth Quarter 2024						First Quarter 2024
		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)	$	53,746	$	800	6.04	%	$	52,887	$	817	6.15	%	$	55,220	$	853	6.22	%
	Real estate — commercial mortgage	13,061		192		5.96		13,343		202		6.01		14,837		229		6.21
	Real estate — construction	2,905		49		6.87		3,033		55		7.23		3,039		57		7.50
	Commercial lease financing	2,653		23		3.52		2,826		24		3.51		3,346		27		3.23
	Total commercial loans	72,365		1,064		5.96		72,089		1,098		6.07		76,442		1,166		6.14
	Real estate — residential mortgage	19,737		165		3.33		19,990		166		3.32		20,814		171		3.29
	Home equity loans	6,248		86		5.60		6,445		93		5.75		7,024		104		5.97
	Other consumer loans	5,087		63		5.01		5,256		67		5.08		5,800		72		4.99
	Credit cards	917		32		14.04		931		34		14.36		954		36		14.93

	Total consumer loans	31,989		346		4.35		32,622		360		4.40		34,592		383		4.44
	Total loans	104,354		1,410		5.47		104,711		1,458		5.55		111,034		1,549		5.61
	Loans held for sale	815		14		6.70		1,327		20		6.05		888		14		6.15
	Securities available for sale (b), (e)	39,321		392		3.70		37,952		353		3.38		37,089		232		2.17
	Held-to-maturity securities (b)	7,274		63		3.46		7,541		66		3.50		8,423		75		3.57
	Trading account assets	1,296		17		5.20		1,215		16		4.98		1,110		14		5.21
	Short-term investments	15,211		174		4.63		17,575		214		4.83		10,243		142		5.59
	Other investments (e)	935		9		3.73		1,045		15		5.72		1,236		17		5.39
	Total earning assets	169,206		2,079		4.86		171,366		2,142		4.87		170,023		2,043		4.67
	Allowance for loan and lease losses	(1,401)						(1,486)						(1,505)
	Accrued income and other assets	18,285						17,308						17,350
	Discontinued assets	254						268						329
	Total assets	$	186,344					$	187,456					$	186,197
Liabilities
	Money market deposits	$	42,007	$	275	2.65	%	$	40,676	$	283	2.77	%	$	37,659	$	264	2.82	%
	Demand deposits	57,460		310		2.19		57,653		341		2.35		56,137		357		2.56
	Savings deposits	4,610		1		.06		4,635		1		.07		5,253		1		.07

	Time deposits	16,625		167		4.09		17,641		196		4.43		14,430		160		4.45
	Total interest-bearing deposits	120,702		753		2.53		120,605		821		2.71		113,479		782		2.77
	Federal funds purchased and securities sold under repurchase agreements	100		1		3.94		84		1		3.99		106		1		4.03
	Bank notes and other short-term borrowings	2,273		27		4.74		1,832		24		5.19		3,325		46		5.63
	Long-term debt (f)	11,779		193		6.61		13,984		235		6.70		19,537		328		6.72
	Total interest-bearing liabilities	134,854		974		2.92		136,505		1,081		3.15		136,447		1,157		3.41
	Noninterest-bearing deposits	27,840						29,128						29,399
	Accrued expense and other liabilities	4,764						4,823						5,373
	Discontinued liabilities (f)	254						268						329
	Total liabilities	$	167,712					$	170,724					$	171,548
Equity


	Total equity	$	18,632					$	16,732					$	14,649
	Total liabilities and equity	$	186,344					$	187,456					$	186,197
Interest rate spread (TE)						1.94	%					1.72	%					1.26	%
Net interest income (TE) and net interest margin (TE)				$	1,105	2.58	%			$	1,061	2.41	%			$	886	2.02	%
TE adjustment (b)				9						10						11
	Net interest income, GAAP basis			$	1,096					$	1,051					$	875

(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 March 31, 2025, December 31, 2024, and March 31, 2024.

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

(d)Commercial and industrial average balances include $213 million, $216 million, and $211 million of assets from commercial credit cards for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $42.7 billion, $41.8 billion, and $42.7 billion for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Yield based on the fair value of securities available for sale was 3.99%, 3.73%, and 2.50% for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, 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 First Quarter 2025 Results

April 17, 2025

Page 19


Noninterest Expense
(Dollars in millions)

	Three months ended
	3/31/2025		12/31/2024		3/31/2024
Personnel (a)	$	680	$	734	$	674
Net occupancy	67		67		67
Computer processing	107		107		102
Business services and professional fees	40		55		41
Equipment	20		20		20
Operating lease expense	11		15		17
Marketing	21		33		19



Other expense	185		198		203
Total noninterest expense	$	1,131	$	1,229	$	1,143


Average full-time equivalent employees (b)	16,989		16,810		16,752

(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
	3/31/2025		12/31/2024		3/31/2024
Salaries and contract labor	$	405	$	418	$	389
Incentive and stock-based compensation	158		197		159
Employee benefits	109		119		126
Severance	8		—		—
Total personnel expense	$	680	$	734	$	674

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 20


Loan Composition
(Dollars in millions)

							Change 3/31/2025 vs.
	3/31/2025		12/31/2024		3/31/2024		12/31/2024		3/31/2024
Commercial and industrial (a)(b)	$	54,378	$	52,909	$	54,793	2.8	%	(.8)	%
Commercial real estate:
Commercial mortgage	13,239		13,310		14,540		(.5)		(8.9)
Construction	2,929		2,936		3,013		(.2)		(2.8)
Total commercial real estate loans	16,168		16,246		17,553		(.5)		(7.9)
Commercial lease financing (b)	2,576		2,736		3,305		(5.8)		(22.1)
Total commercial loans	73,122		71,891		75,651		1.7		(3.3)
Residential — prime loans:
Real estate — residential mortgage	19,622		19,886		20,704		(1.3)		(5.2)
Home equity loans	6,154		6,358		6,905		(3.2)		(10.9)
Total residential — prime loans	25,776		26,244		27,609		(1.8)		(6.6)
Other consumer loans	5,000		5,167		5,690		(3.2)		(12.1)
Credit cards	911		958		935		(4.9)		(2.6)

Total consumer loans	31,687		32,369		34,234		(2.1)		(7.4)
Total loans (c), (d)	$	104,809	$	104,260	$	109,885	.5	%	(4.6)	%

(a)Loan balances include $218 million, $212 million, and $214 million of commercial credit card balances at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $192 million at March 31, 2025, $211 million at December 31, 2024 and $349 million at March 31, 2024. Commercial lease financing includes receivables held as collateral for a secured borrowing of $2 million, $3 million, and $6 million at March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $243 million at March 31, 2025, $257 million at December 31, 2024, and $313 million at March 31, 2024, related to the discontinued operations of the education lending business.

(d)Accrued interest of $448 million, $456 million, and $508 million at March 31, 2025, December 31, 2024, and March 31, 2024, 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 3/31/2025 vs.
	3/31/2025		12/31/2024		3/31/2024		12/31/2024		3/31/2024
Commercial and industrial	$	252	$	88	$	—	186.4	%	N/M
Real estate — commercial mortgage	473		616		155		(23.2)		205.2


Real estate — residential mortgage	86		93		73		(7.5)		17.8

Total loans held for sale	$	811	$	797	$	228	1.8	%	255.7	%


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

	1Q25		4Q24		3Q24		2Q24		1Q24
Balance at beginning of period	$	797	$	1,058	$	517	$	228	$	483
New originations	1,840		2,915		2,473		1,532		1,738
Transfers from (to) held to maturity, net	6		—		(16)		(1)		(105)
Loan sales	(1,695)		(3,039)		(1,889)		(1,234)		(1,893)
Loan draws (payments), net	(138)		(136)		(28)		(7)		4
Valuation and other adjustments	1		(1)		1		(1)		1
Balance at end of period	$	811	$	797	$	1,058	$	517	$	228

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 21


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

	Three months ended
	3/31/2025			12/31/2024			3/31/2024
Average loans outstanding	$	104,354		$	104,711		$	111,034


Allowance for loan and lease losses at the beginning of the period	$	1,409		$	1,494		$	1,508
Loans charged off:
Commercial and industrial	62			84			62

Real estate — commercial mortgage	36			18			5
Real estate — construction	—			—			—
Total commercial real estate loans	36			18			5
Commercial lease financing	—			1			—
Total commercial loans	98			103			67
Real estate — residential mortgage	1			1			1
Home equity loans	1			—			1
Other consumer loans	14			15			16
Credit cards	12			12			12

Total consumer loans	28			28			30
Total loans charged off	126			131			97
Recoveries:
Commercial and industrial	10			12			8

Real estate — commercial mortgage	—			—			—
Real estate — construction	—			—			—
Total commercial real estate loans	—			—			—
Commercial lease financing	—			—			2
Total commercial loans	10			12			10
Real estate — residential mortgage	1			1			2
Home equity loans	1			—			1
Other consumer loans	2			2			2
Credit cards	2			2			1

Total consumer loans	6			5			6
Total recoveries	16			17			16
Net loan charge-offs	(110)			(114)			(81)
Provision (credit) for loan and lease losses	130			29			115

Allowance for loan and lease losses at end of period	$	1,429		$	1,409		$	1,542




Liability for credit losses on lending-related commitments at beginning of period	$	290		$	280		$	296
Provision (credit) for losses on lending-related commitments	(12)			10			(14)
Other	—			—			(1)
Liability for credit losses on lending-related commitments at end of period (a)	$	278		$	290		$	281

Total allowance for credit losses at end of period	$	1,707		$	1,699		$	1,823

Net loan charge-offs to average total loans	.43		%	.43		%	.29		%
Allowance for loan and lease losses to period-end loans	1.36			1.35			1.40
Allowance for credit losses to period-end loans	1.63			1.63			1.66
Allowance for loan and lease losses to nonperforming loans	208			186			234
Allowance for credit losses to nonperforming loans	249			224			277

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

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

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 22


Asset Quality Statistics From Continuing Operations
(Dollars in millions)
	1Q25			4Q24			3Q24			2Q24			1Q24
Net loan charge-offs	$	110		$	114		$	154		$	91		$	81
Net loan charge-offs to average total loans	.43		%	.43		%	.58		%	.34		%	.29		%
Allowance for loan and lease losses	$	1,429		$	1,409		$	1,494		$	1,547		$	1,542
Allowance for credit losses (a)	1,707			1,699			1,774			1,833			1,823
Allowance for loan and lease losses to period-end loans	1.36		%	1.35		%	1.42		%	1.44		%	1.40		%
Allowance for credit losses to period-end loans	1.63			1.63			1.68			1.71			1.66
Allowance for loan and lease losses to nonperforming loans	208			186			205			218			234
Allowance for credit losses to nonperforming loans	249			224			244			258			277
Nonperforming loans at period end	$	686		$	758		$	728		$	710		$	658
Nonperforming assets at period end	700			772			741			727			674
Nonperforming loans to period-end portfolio loans	.65		%	.73		%	.69		%	.66		%	.60		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.67			.74			.70			.68			.61

(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)
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Commercial and industrial	$	288		$	322		$	365		$	358		$	360

Real estate — commercial mortgage	206			243			176			173			113
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	206			243			176			173			113
Commercial lease financing	—			—			—			1			1
Total commercial loans	494			565			541			532			474
Real estate — residential mortgage	94			92			87			77			79
Home equity loans	87			89			90			91			95
Other Consumer loans	4			5			4			4			4
Credit cards	7			7			6			6			6

Total consumer loans	192			193			187			178			184
Total nonperforming loans (a)	686			758			728			710			658
OREO	14			14			13			17			16


Total nonperforming assets	$	700		$	772		$	741		$	727		$	674
Accruing loans past due 90 days or more	$	86		$	90		$	166		$	137		$	119
Accruing loans past due 30 through 89 days	281			206			184			282			242
Nonperforming assets from discontinued operations — education lending business	1			2			2			3			2
Nonperforming loans to period-end portfolio loans	.65		%	.73		%	.69		%	.66		%	.60		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.67			.74			.70			.68			.61


Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
	1Q25		4Q24		3Q24		2Q24		1Q24
Balance at beginning of period	$	758	$	728	$	710	$	658	$	574
Loans placed on nonaccrual status	170		309		271		317		243

Charge-offs	(126)		(131)		(167)		(131)		(97)
Loans sold	—		(13)		(32)		(22)		(5)
Payments	(57)		(111)		(37)		(76)		(35)
Transfers to OREO	(2)		(2)		(1)		(1)		(2)


Loans returned to accrual status	(57)		(22)		(16)		(35)		(20)
Balance at end of period	$	686	$	758	$	728	$	710	$	658

KeyCorp Reports First Quarter 2025 Results

April 17, 2025

Page 23


Line of Business Results
(Dollars in millions)

																Change 1Q25 vs.
	1Q25			4Q24			3Q24			2Q24			1Q24			4Q24		1Q24
Consumer Bank
Summary of operations
Total revenue (TE)	$	874		$	872		$	814		$	769		$	757		.2	%	15.5	%
Provision for credit losses	43			43			52			33			(2)			—		N/M
Noninterest expense	676			713			649			648			704			(5.2)		(4.0)
Net income (loss) attributable to Key	118			88			86			67			41			34.1		187.8
Average loans and leases	36,819			37,567			38,332			39,174			39,919			(2.0)		(7.8)
Average deposits	88,306			87,476			86,431			85,397			84,075			.9		5.0
Net loan charge-offs	52			63			54			45			44			(17.5)		18.2
Net loan charge-offs to average total loans	.57		%	.67		%	.56		%	.46		%	.44		%	(14.9)		29.5
Nonperforming assets at period end	$	201		$	201		$	195		$	190		$	196		—		2.6
Return on average allocated equity	15.24		%	10.85		%	10.34		%	7.93		%	4.69		%	40.5		224.9


Commercial Bank
Summary of operations
Total revenue (TE)	$	942		$	999		$	868		$	769		$	798		(5.7)	%	18.0	%
Provision for credit losses	75			(3)			41			87			102			N/M		(26.5)
Noninterest expense	462			516			445			431			442			(10.5)		4.5
Net income (loss) attributable to Key	321			379			300			207			205			(15.3)		56.6
Average loans and leases	67,056			66,691			67,452			69,248			70,633			.5		(5.1)
Average loans held for sale	754			1,247			998			522			840			(39.5)		(10.2)
Average deposits	57,436			59,687			58,696			57,360			56,331			(3.8)		2.0
Net loan charge-offs	57			52			99			64			37			9.6		54.1
Net loan charge-offs to average total loans	.34		%	.31		%	.58		%	.37		%	.21		%	9.7		61.9
Nonperforming assets at period end	$	499		$	571		$	546		$	537		$	478		(12.6)		4.4
Return on average allocated equity	13.76		%	15.50		%	11.98		%	8.31		%	8.24		%	(11.2)		67.0

TE = Taxable Equivalent; N/M = Not Meaningful


Selected Items Impact on Earnings
(Dollars in millions, except per share amounts)
	Pretax(a)		After-tax at marginal rate(a)
Quarter to date results	Amount		Net Income		EPS(c)(e)
Three months ended March 31, 2025





No items	$	—	$	—	$	—

Three months ended December 31, 2024


Loss on sale of securities(b)	(915)		(657)		(0.66)
Scotiabank investment agreement valuation (other income)	(3)		(2)		—
FDIC special assessment (other expense)(d)	3		2		—

Three months ended September 30, 2024
Loss on sale of securities(b)	(918)		(737)		(0.77)
FDIC special assessment (other expense)(d)	6		5		—
Three months ended June 30, 2024



FDIC special assessment (other expense)(d)	(5)		(4)		—
Three months ended March 31, 2024



FDIC special assessment (other expense)(d)	(29)		(22)		(0.02)

(a)Favorable (unfavorable) impact.

(b)After-tax loss on sale of securities for the three months ended September 30, 2024 adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments recorded in the fourth quarter of 2024.

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

(d)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. Amounts reflected for the three-months ended March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.

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