Business Segment Reporting

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Business Segment Reporting

20. Business Segment Reporting

Consumer Bank

The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint and through our Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity,credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist non-profit, and high-net-worth clients with their banking, trust, portfolio management, life insurance, charitable giving, and related needs.

Commercial Bank

The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate bank focused principally on serving the needs of middle market clients in seven industry sectors: consumer, energy, healthcare, industrial, public sector, real estate, and technology. The Commercial operating segment is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS. The Institutional operating segment delivers a broad suite of banking and capital markets products to its clients, including syndicated finance, debt and equity capital markets, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance.

Other

Other includes various corporate treasury activities such as management of our investment securities portfolio, long-term debt, short-term liquidity and funding activities, and balance sheet risk management, 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. Reconciling items also include intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

The development and application of the methodologies that we use to allocate items among our business segments is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocations drivers, changes in the risk profile of a particular business, or changes in our organizational structure.

The table below shows selected financial data for our business segments for the three- and six-month periods ended June 30, 2021, and June 30, 2020. Capital is assigned to each business segment based on a combination of regulatory and economic equity.

Three months ended June 30,	Consumer Bank						Commercial Bank						Other						Total Key
dollars in millions	2021			2020			2021			2020			2021			2020			2021			2020
SUMMARY OF OPERATIONS
Net interest income (TE)	$	600		$	589		$	419		$	458		$	4		$	(22)		$	1,023		$	1,025
Noninterest income	254			246			455			421			41			25			750			692
Total revenue (TE) (a)	854			835			874			879			45			3			1,773			1,717
Provision for credit losses	(70)			155			(131)			326			(21)			1			(222)			482
Depreciation and amortization expense	22			20			33			37			35			34			90			91
Other noninterest expense	562			532			418			404			6			(14)			986			922
Income (loss) from continuing operations before income taxes (TE)	340			128			554			112			25			(18)			919			222
Allocated income taxes and TE adjustments	81			30			120			6			(6)			1			195			37
Income (loss) from continuing operations	259			98			434			106			31			(19)			724			185
Income (loss) from discontinued operations, net of taxes	—			—			—			—			5			2			5			2
Net income (loss)	259			98			434			106			36			(17)			729			187
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—			—			—			—
Net income (loss) attributable to Key	$	259		$	98		$	434		$	106		$	36		$	(17)		$	729		$	187
AVERAGE BALANCES (b)
Loans and leases	$	40,598		$	37,300		$	59,953		$	70,336		$	263		$	305		$	100,814		$	107,941
Total assets (a)	43,991			42,194			69,101			79,267			64,778			42,638			177,870			164,099
Deposits	88,412			79,235			54,814			47,954			1,096			788			144,322			127,977
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	34		$	39		$	9		$	57		$	(21)		$	—		$	22		$	96
Return on average allocated equity (b)	28.74		%	11.50		%	20.79		%	8.66		%	2.35		%	(.82)		%	16.81		%	4.21		%
Return on average allocated equity	28.74			11.50			20.79			8.66			2.73			(.73)			16.93			4.25
Average full-time equivalent employees (c)	7,929			8,046			2,483			2,293			6,745			6,307			17,157			16,646

(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.

(b)From continuing operations.

(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.

Six months ended June 30,	Consumer Bank						Commercial Bank						Other							Total Key
dollars in millions	2021			2020			2021			2020			2021				2020			2021			2020
SUMMARY OF OPERATIONS
Net interest income (TE)	$	1,210		$	1,172		$	832		$	881		$	(7)			$	(39)		$	2,035		$	2,014
Noninterest income	511			474			901			639			76				56			1,488			1,169
Total revenue (TE) (a)	1,721			1,646			1,733			1,520			69				17			3,523			3,183
Provision for credit losses	(94)			292			(198)			547			(23)				2			(315)			841
Depreciation and amortization expense	40			41			67			73			73				68			180			182
Other noninterest expense	1,146			1,048			827			732			(6)				(18)			1,967			1,762
Income (loss) from continuing operations before income taxes (TE)	629			265			1,037			168			25				(35)			1,691			398
Allocated income taxes and TE adjustments	150			61			218			(4)			(19)				11			349			68
Income (loss) from continuing operations	479			204			819			172			44				(46)			1,342			330
Income (loss) from discontinued operations, net of taxes	—			—			—			—			9				3			9			3
Net income (loss)	479			204			819			172			53				(43)			1,351			333
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—				—			—			—
Net income (loss) attributable to Key	$	479		$	204		$	819		$	172		$	53		(d)	$	(43)		$	1,351		$	333
AVERAGE BALANCES (b)
Loans and leases	$	39,927		$	35,242		$	60,584		$	66,430		$	266			$	386		$	100,777		$	102,058
Total assets (a)	43,237			39,310			69,771			75,547			62,063				40,307			175,071			155,164
Deposits	86,732			76,184			53,362			42,199			950				770			141,044			119,153
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	70		$	83		$	87		$	97		(21)				—			$	136		$	180
Return on average allocated equity (b)	27.46		%	12.07		%	19.10		%	7.13		%	1.66		%		(1.01)		%	15.45		%	3.80		%
Return on average allocated equity	27.46			12.07			19.10			7.13			2.00				(.94)			15.55			3.84
Average full-time equivalent employees (c)	8,106			8,095			2,371			2,277			6,645				6,215			17,122			16,587

(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.

(b)From continuing operations.

(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.