KEYCORP REPORTS FIRST QUARTER 2024 NET INCOME OF $183 MILLION,

OR $.20PER DILUTED COMMON SHARE, WITH $.02 IMPACT FROM THE FDIC SPECIAL ASSESSMENT(a)

Noninterest income up 6% year-over-year and linked quarter, driven by strength in investment banking and debt placement fees

Continued to strengthen the balance sheet by reducing reliance on wholesale funding and higher cost brokered deposits

Common Equity Tier 1 ratio increased 120 basis points year-over-year to 10.3%(b)

Credit costs remain low: net loan charge-offs to average loans of 29 basis points

    CLEVELAND, April 18, 2024 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $183 million, or $.20 per diluted common share, for the first quarter of 2024. Net income from continuing operations attributable to Key common shareholders was $30 million, or $.03 per diluted common share, for the fourth quarter of 2023 and $275 million, or $.30 per diluted common share, for the first quarter of 2023. 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(a). Included in the fourth quarter of 2023 are $209 million, or $.22 per diluted common share, after-tax, of charges related to the FDIC special assessment, efficiency related expenses, and a pension settlement charge(a).

Comments from Chairman and CEO, Chris Gorman

"We are off to a solid start in 2024. Investment Banking posted its best first quarter in our history, net interest income was within the range of guidance that we provided in January, and expenses remained well controlled. Customer deposits were up 2% year-over-year, while relationship households and commercial clients grew 2.5% and 6%, respectively. Net charge-offs and nonperforming loans remained low and below their historical averages.

Our Common Equity Tier 1 ratio rose to 10.3%, bringing our organic capital build to approximately 120 basis points over the past twelve months. Tangible common equity measures were steady to improved, despite the first quarter’s increase in interest rates, reflecting the work we have done over the past year to improve our asset liability positioning.

We continued to invest and make progress in our fee-based businesses where we have a differentiated value proposition. Last month, we announced a strategic partnership that will help us accelerate growth in our commercial platform, another example of how we are delivering best-in-class execution services for our clients while concurrently managing risk.

Key is back to playing offense. I remain excited for our future and believe our strong foundation positions us to deliver sound, profitable growth moving forward."

(a)See table on page 24 for more information on Selected Items Impact on Earnings, including information on the FDIC special assessment, efficiency related expenses, and the pension settlement charge.

(b)March 31, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 2

Selected Financial Highlights
Dollars in millions, except per share data										Change 1Q24 vs.
	1Q24			4Q23			1Q23			4Q23		1Q23
Income (loss) from continuing operations attributable to Key common shareholders	$	183		$	30		$	275		510.0	%	(33.5)	%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution	.20			.03			.30			566.7		(33.3)
Return on average tangible common equity from continuing operations (a)	7.87		%	1.46		%	13.16		%	N/A		N/A
Return on average total assets from continuing operations	.47			.14			.66			N/A		N/A
Common Equity Tier 1 ratio (b)	10.3			10.0			9.1			N/A		N/A
Book value at period end	$	12.84		$	13.02		$	12.70		(1.4)		1.1
Net interest margin (TE) from continuing operations	2.02		%	2.07		%	2.47		%	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, 2024 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millions							Change 1Q24 vs.
	1Q24		4Q23		1Q23		4Q23		1Q23
Net interest income (TE)	$	886	$	928	$	1,106	(4.5)	%	(19.9)	%
Noninterest income	647		610		608		6.1		6.4
Total revenue (TE)	$	1,533	$	1,538	$	1,714	(.3)	%	(10.6)	%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $886 million for the first quarter of 2024 and the net interest margin was 2.02%. Compared to the first quarter of 2023, net interest income decreased by $220 million, and the net interest margin decreased by 45 basis points. While both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing interest rate swaps, investments, and U.S. Treasury securities into higher-yielding cash and swaps, the decline in net interest income and the net interest margin reflects the higher interest rate environment and Key’s balance sheet optimization efforts, which resulted in planned reductions in loan balances. The higher interest rate environment drove earning asset yields higher, but were outpaced by the higher cost of deposits and borrowings. Additionally, the balance sheet experienced a shift in funding mix from noninterest-bearing deposits to higher-cost deposits and borrowings.

Compared to the fourth quarter of 2023, taxable-equivalent net interest income decreased by $42 million, and the net interest margin decreased by five basis points. Net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing interest rate swaps and U.S. Treasury securities into higher-yielding cash, investments, and swaps. The decline in net interest income and the net interest margin was driven by higher deposit costs, an unfavorable funding mix, and lower loan balances. Additionally, net interest income fell in part because of one less day to earn interest.

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 3

Noninterest Income
Dollars in millions							Change 1Q24 vs.
	1Q24		4Q23		1Q23		4Q23		1Q23
Trust and investment services income	$	136	$	132	$	128	3.0	%	6.3	%
Investment banking and debt placement fees	170		136		145		25.0		17.2
Cards and payments income	77		84		81		(8.3)		(4.9)
Service charges on deposit accounts	63		65		67		(3.1)		(6.0)
Corporate services income	69		67		76		3.0		(9.2)
Commercial mortgage servicing fees	56		48		46		16.7		21.7
Corporate-owned life insurance income	32		36		29		(11.1)		10.3
Consumer mortgage income	14		11		11		27.3		27.3
Operating lease income and other leasing gains	24		22		25		9.1		(4.0)
Other income	6		9		—		(33.3)		N/M
Total noninterest income	$	647	$	610	$	608	6.1	%	6.4	%

N/M = Not Meaningful

Compared to the first quarter of 2023, noninterest income increased by $39 million. The increase was driven by investment banking and debt placement fees, up $25 million, related to strong commercial mortgage and debt capital markets activity. Additionally, commercial mortgage servicing fees increased $10 million.

Compared to the fourth quarter of 2023, noninterest income increased by $37 million. The increase was driven by investment banking and debt placement fees, up $34 million, reflective of increased merger and acquisition advisory fees, syndication fees, and debt and equity capital markets activity. Commercial mortgage servicing fees increased $8 million, which was partly offset by a $7 million decline in cards and payments income.

Noninterest Expense
Dollars in millions							Change 1Q24 vs.
	1Q24		4Q23		1Q23		4Q23		1Q23
Personnel expense	$	674	$	674	$	701	.0	%	(3.9)	%
Net occupancy	67		65		70		3.1		(4.3)
Computer processing	102		92		92		10.9		10.9
Business services and professional fees	41		44		45		(6.8)		(8.9)
Equipment	20		24		22		(16.7)		(9.1)
Operating lease expense	17		18		20		(5.6)		(15.0)
Marketing	19		31		21		(38.7)		(9.5)
Other expense	203		424		205		(52.1)		(1.0)
Total noninterest expense	$	1,143	$	1,372	$	1,176	(16.7)	%	(2.8)	%

    Compared to the first quarter of 2023, noninterest expense decreased $33 million, reflective of lower personnel expense, which decreased $27 million this quarter, due to lower headcount from efficiency related actions taken last year. In the first quarter of 2024, other expense included $29 million from the FDIC special assessment. See the Selected Items Impact on Earnings table on page 24 for more information.

    Compared to the fourth quarter of 2023, noninterest expense decreased by $229 million. The decline was driven by selected items that impacted earnings in the fourth quarter, which included the FDIC special assessment, efficiency related expenses, and a pension settlement charge in the fourth quarter, which collectively totaled $275 million. The decline was partly offset by a $29 million charge related to the FDIC special assessment in the first quarter of 2024, as well as an increase in employee benefits. See the Selected Items Impact on Earnings table on page 24 for more information.

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 4

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millions							Change 1Q24 vs.
	1Q24		4Q23		1Q23		4Q23		1Q23
Commercial and industrial (a)	$	55,220	$	56,664	$	60,281	(2.5)	%	(8.4)	%
Other commercial loans	21,222		21,942		22,778		(3.3)		(6.8)
Total consumer loans	34,592		35,342		36,778		(2.1)		(5.9)
Total loans	$	111,034	$	113,948	$	119,837	(2.6)	%	(7.3)	%

(a)Commercial and industrial average loan balances include $211 million, $210 million, and $178 million of assets from commercial credit cards at March 31, 2024, December 31, 2023, and March 31, 2023, respectively.

Average loans were $111.0 billion for the first quarter of 2024, a decrease of $8.8 billion compared to the first quarter of 2023, reflective of Key's planned balance sheet optimization efforts. The decline in average loans was mostly driven by lower commercial and industrial loans, as well as a decline in commercial mortgage real estate loans. Additionally, average consumer loans decreased by $2.2 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the fourth quarter of 2023, average loans decreased by $2.9 billion. Average commercial loans declined by $2.2 billion, primarily driven by a decrease in commercial and industrial loans. Additionally, average consumer loans declined $750 million, driven by declines across all consumer loan categories.

Average Deposits
Dollars in millions										Change 1Q24 vs.
	1Q24			4Q23			1Q23			4Q23		1Q23
Non-time deposits	$	128,448		$	130,750		$	132,907		(1.8)	%	(3.4)	%
Time deposits	14,430			14,326			10,498			.7		37.5
Total deposits	$	142,878		$	145,076		$	143,405		(1.5)	%	(.4)	%
Cost of total deposits	2.20		%	2.06		%	.99		%	N/A		N/A

N/A = Not Applicable

Average deposits totaled $142.9 billion for the first quarter of 2024, a decrease of $527 million compared to the year-ago quarter. The decrease was driven by continued changing client behavior reflective of higher interest rates, as well as a decline in wholesale deposit balances.

Compared to the fourth quarter of 2023, average deposits decreased by $2.2 billion. The decline was driven by normal seasonal deposit outflows and a decrease in wholesale deposit balances.

ASSET QUALITY
Dollars in millions										Change 1Q24 vs.
	1Q24			4Q23			1Q23			4Q23		1Q23
Net loan charge-offs	$	81		$	76		$	45		6.6	%	80.0	%
Net loan charge-offs to average total loans	.29		%	.26		%	.15		%	N/A		N/A
Nonperforming loans at period end	$	658		$	574		$	416		14.6		58.2
Nonperforming assets at period end	674			591			447			14.0		50.8
Allowance for loan and lease losses	1,542			1,508			1,380			2.3		11.7
Allowance for credit losses	1,823			1,804			1,656			1.1		10.1
Provision for credit losses	101			102			139			(1.0)		(27.3)
Allowance for loan and lease losses to nonperforming loans	234		%	263		%	332		%	N/A		N/A
Allowance for credit losses to nonperforming loans	277			314			398			N/A		N/A

N/A = Not Applicable

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 5

    Key's provision for credit losses was $101 million, compared to $139 million in the first quarter of 2023 and $102 million in the fourth quarter of 2023. The decline from the year-ago period reflects a more stable economic outlook and the impact of balance sheet optimization efforts, partly offset by portfolio migration.

    Net loan charge-offs for the first quarter of 2024 totaled $81 million, or 0.29% of average total loans. These results compare to $45 million, or 0.15%, for the first quarter of 2023 and $76 million, or 0.26%, for the fourth quarter of 2023. Key’s allowance for credit losses was $1.8 billion, or 1.66% of total period-end loans at March 31, 2024, compared to 1.38% at March 31, 2023, and 1.60% at December 31, 2023.

At March 31, 2024, Key’s nonperforming loans totaled $658 million, which represented 0.60% of period-end portfolio loans. These results compare to 0.35% at March 31, 2023, and 0.51% at December 31, 2023. Nonperforming assets at March 31, 2024, totaled $674 million, and represented 0.61% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.37% at March 31, 2023, and 0.52% at December 31, 2023.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2024.

Capital Ratios
	3/31/2024		12/31/2023		3/31/2023
Common Equity Tier 1 (a)	10.3	%	10.0	%	9.1	%
Tier 1 risk-based capital (a)	12.0		11.7		10.6
Total risk-based capital (a)	14.5		14.1		12.8
Tangible common equity to tangible assets (b)	5.0		5.1		4.6
Leverage (a)	9.1		9.0		8.8

(a)March 31, 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 first quarter of 2024. As shown in the preceding table, at March 31, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 10.3% and 12.0%, respectively. Key's tangible common equity ratio was 5.0% at March 31, 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. 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 four basis points.

Summary of Changes in Common Shares Outstanding
In thousands					Change 1Q24 vs.
		1Q24	4Q23	1Q23	4Q23		1Q23
Shares outstanding at beginning of period		936,564	936,161	933,325	—	%	.3	%
Open market share repurchases		—	—	(2,550)	—		(100.0)
Shares issued under employee compensation plans (net of cancellations and returns)		6,212	403	4,454	1,441.4		39.5
	Shares outstanding at end of period	942,776	936,564	935,229	.7	%	.8	%

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

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

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 1Q24 vs.
		1Q24		4Q23		1Q23		4Q23		1Q23
Revenue from continuing operations (TE)
Consumer Bank		$	773	$	786	$	840	(1.7)	%	(8.0)	%
Commercial Bank		791		794		844		(.4)		(6.3)
Other (a)		(31)		(42)		30		26.2		(203.3)
	Total	$	1,533	$	1,538	$	1,714	(.3)	%	(10.6)	%
Income (loss) from continuing operations attributable to Key
Consumer Bank		$	55	$	1	$	89	N/M		(38.2)	%
Commercial Bank		200		143		255		39.9		(21.6)
Other (a)		(36)		(79)		(33)		54.4		(9.1)
	Total	$	219	$	65	$	311	236.9	%	(29.6)	%

(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. 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

Consumer Bank
Dollars in millions							Change 1Q24 vs.
	1Q24		4Q23		1Q23		4Q23		1Q23
Summary of operations
Net interest income (TE)	$	549	$	558	$	612	(1.6)	%	(10.3)	%
Noninterest income	224		228		228		(1.8)		(1.8)
Total revenue (TE)	773		786		840		(1.7)		(8.0)
Provision for credit losses	(2)		5		60		(140.0)		(103.3)
Noninterest expense	703		780		663		(9.9)		6.0
Income (loss) before income taxes (TE)	72		1		117		N/M		(38.5)
Allocated income taxes (benefit) and TE adjustments	17		—		28		N/M		(39.3)
Net income (loss) attributable to Key	$	55	$	1	$	89	N/M		(38.2)	%
Average balances
Loans and leases	$	40,446	$	41,381	$	43,086	(2.3)	%	(6.1)	%
Total assets	43,239		44,178		45,935		(2.1)		(5.9)
Deposits	84,317		84,856		84,637		(.6)		(.4)
Assets under management at period end	$	57,305	$	54,859	$	53,689	4.5	%	6.7	%

TE = Taxable Equivalent

N/M = Not Meaningful

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 7

Additional Consumer Bank Data
Dollars in millions							Change 1Q24 vs.
	1Q24		4Q23		1Q23		4Q23		1Q23
Noninterest income
Trust and investment services income	$	109	$	105	$	101	3.8	%	7.9	%
Service charges on deposit accounts	33		37		38		(10.8)		(13.2)
Cards and payments income	56		62		61		(9.7)		(8.2)
Consumer mortgage income	14		11		11		27.3		27.3
Other noninterest income	12		13		17		(7.7)		(29.4)
Total noninterest income	$	224	$	228	$	228	(1.8)	%	(1.8)	%
Average deposit balances
Money market deposits	$	29,918	$	29,752	$	28,128	.6	%	6.4	%
Demand deposits	22,353		23,072		24,849		(3.1)		(10.0)
Savings deposits	4,987		5,241		7,025		(4.8)		(29.0)
Time deposits	11,809		10,265		4,351		15.0		171.4
Noninterest-bearing deposits	15,250		16,526		20,284		(7.7)		(24.8)
Total deposits	$	84,317	$	84,856	$	84,637	(.6)	%	(.4)	%
Other data
Branches	957		959		971
Automated teller machines	1,214		1,217		1,263

Consumer Bank Summary of Operations (1Q24 vs. 1Q23)

•Key's Consumer Bank recorded net income attributable to Key of $55 million for the first quarter of 2024, compared to $89 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $63 million, or 10.3%, compared to the first quarter of 2023, reflective of a shift in funding mix from noninterest-bearing deposits to higher-cost deposits and borrowings, as well as Key’s balance sheet optimization efforts

•Average loans and leases decreased $2.6 billion, or 6.1%, from the first quarter of 2023, driven by broad-based declines across loan categories

•Average deposits decreased $320 million, or 0.4%, from the first quarter of 2023

•Provision for credit losses decreased $62 million compared to the first quarter of 2023, driven by planned balance sheet optimization efforts and an improving economic outlook, partly offset by higher net charge-offs

•Noninterest income decreased $4 million from the year-ago quarter, driven by declines in service charges on deposit accounts and cards and payments income

•Noninterest expense increased $40 million from the year-ago quarter, primarily reflective of the FDIC special assessment charge

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 8

Commercial Bank
Dollars in millions							Change 1Q24 vs.
	1Q24		4Q23		1Q23		4Q23		1Q23
Summary of operations
Net interest income (TE)	$	391	$	444	$	478	(11.9)	%	(18.2)	%
Noninterest income	400		350		366		14.3		9.3
Total revenue (TE)	791		794		844		(.4)		(6.3)
Provision for credit losses	102		96		80		6.3		27.5
Noninterest expense	442		525		442		(15.8)		—
Income (loss) before income taxes (TE)	247		173		322		42.8		(23.3)
Allocated income taxes and TE adjustments	47		30		67		56.7		(29.9)
Net income (loss) attributable to Key	$	200	$	143	$	255	39.9	%	(21.6)	%
Average balances
Loans and leases	$	70,099	$	72,088	$	76,306	(2.8)	%	(8.1)	%
Loans held for sale	840		635		876		32.3		(4.1)
Total assets	79,456		81,393		85,852		(2.4)		(7.5)
Deposits	56,090		56,897		52,219		(1.4)	%	7.4	%

TE = Taxable Equivalent

Additional Commercial Bank Data
Dollars in millions							Change 1Q24 vs.
	1Q24		4Q23		1Q23		4Q23		1Q23
Noninterest income
Trust and investment services income	$	27	$	27	$	27	—	%	—	%
Investment banking and debt placement fees	170		135		145		25.9		17.2
Cards and payments income	19		19		20		—		(5.0)
Service charges on deposit accounts	29		27		27		7.4		7.4
Corporate services income	63		61		69		3.3		(8.7)
Commercial mortgage servicing fees	56		49		46		14.3		21.7
Operating lease income and other leasing gains	24		21		24		14.3		—
Other noninterest income	12		11		8		9.1		50.0
Total noninterest income	$	400	$	350	$	366	14.3	%	9.3	%

Commercial Bank Summary of Operations (1Q24 vs. 1Q23)

•Key's Commercial Bank recorded net income attributable to Key of $200 million for the first quarter of 2024 compared to $255 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $87 million, or 18.2%, compared to the first quarter of 2023, primarily reflecting higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits, as well as Key’s balance sheet optimization efforts

•Average loan and lease balances decreased $6.2 billion, or 8.1%, compared to the first quarter of 2023, driven by a decline in commercial and industrial loans

•Average deposit balances increased $3.9 billion compared to the first quarter of 2023, driven by our focus on growing deposits across our commercial businesses

•Provision for credit losses increased $22 million compared to the first quarter of 2023, driven by a more stable economic outlook and the impact of balance sheet optimization efforts, partly offset by portfolio migration

•Noninterest income increased $34 million from the year-ago quarter, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees

•Noninterest expense remained unchanged compared to the first quarter of 2023

KeyCorp Reports First Quarter 2024 Profit     

April 18, 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 $187 billion at March 31, 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 First Quarter 2024 Profit     

April 18, 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/irat 9:00 a.m. ET, on April 18, 2024. A replay of the call will be available on our website through April 18, 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 First Quarter 2024 Profit     

April 18, 2024

Page 11

KeyCorp

First 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
20	Noninterest Expense
20	Personnel Expense
21	Loan Composition
21	Loans Held for Sale Composition
21	Summary of Changes in Loans Held for Sale
22	Summary of Loan and Lease Loss Experience From Continuing Operations
23	Asset Quality Statistics From Continuing Operations
23	Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
23	Summary of Changes in Nonperforming Loans From Continuing Operations
24	Line of Business Results
24	Selected Items Impact on Earnings

KeyCorp Reports First Quarter 2024 Profit     

April 18, 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, with this then being the amount used to calculate the earnings per share equivalent.

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 13

Financial Highlights
(Dollars in millions, except per share amounts)
			Three months ended
			3/31/2024			12/31/2023			3/31/2023
Summary of operations
	Net interest income (TE)		$	886		$	928		$	1,106
	Noninterest income		647			610			608
		Total revenue (TE)	1,533			1,538			1,714
	Provision for credit losses		101			102			139
	Noninterest expense		1,143			1,372			1,176
	Income (loss) from continuing operations attributable to Key		219			65			311
	Income (loss) from discontinued operations, net of taxes		—			—			1
	Net income (loss) attributable to Key		219			65			312
	Income (loss) from continuing operations attributable to Key common shareholders		183			30			275
	Income (loss) from discontinued operations, net of taxes		—			—			1
	Net income (loss) attributable to Key common shareholders		183			30			276
Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	.20		$	.03		$	.30
	Income (loss) from discontinued operations, net of taxes		—			—			—
	Net income (loss) attributable to Key common shareholders (a)		.20			.03			.30
	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.20			.03			.30
	Income (loss) from discontinued operations, net of taxes — assuming dilution		—			—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)		.20			.03			.30
	Cash dividends declared		.205			.205			.205
	Book value at period end		12.84			13.02			12.70
	Tangible book value at period end		9.87			10.02			9.67
	Market price at period end		15.81			14.40			12.52
Performance ratios
	From continuing operations:
	Return on average total assets		.47		%	.14		%	.66		%
	Return on average common equity		6.06			1.08			9.85
	Return on average tangible common equity (b)		7.87			1.46			13.16
	Net interest margin (TE)		2.02			2.07			2.47
	Cash efficiency ratio (b)		74.0			88.6			68.0
	From consolidated operations:
	Return on average total assets		.47		%	.14		%	.66		%
	Return on average common equity		6.06			1.08			9.89
	Return on average tangible common equity (b)		7.87			1.46			13.21
	Net interest margin (TE)		2.02			2.07			2.47
	Loan to deposit (c)		76.6			77.9			84.4
Capital ratios at period end
	Key shareholders’ equity to assets		7.8		%	7.8		%	7.3		%
	Key common shareholders’ equity to assets		6.5			6.5			6.0
	Tangible common equity to tangible assets (b)		5.0			5.1			4.6
	Common Equity Tier 1 (d)		10.3			10.0			9.1
	Tier 1 risk-based capital (d)		12.0			11.7			10.6
	Total risk-based capital (d)		14.5			14.1			12.8
	Leverage (d)		9.1			9.0			8.8
Asset quality — from continuing operations
	Net loan charge-offs		$	81		$	76		$	45
	Net loan charge-offs to average loans		.29		%	.26		%	.15		%
	Allowance for loan and lease losses		$	1,542		$	1,508		$	1,380
	Allowance for credit losses		1,823			1,804			1,656
	Allowance for loan and lease losses to period-end loans		1.40		%	1.34		%	1.15		%
	Allowance for credit losses to period-end loans		1.66			1.60			1.38
	Allowance for loan and lease losses to nonperforming loans		234			263			332
	Allowance for credit losses to nonperforming loans		277			314			398
	Nonperforming loans at period-end		$	658		$	574		$	416
	Nonperforming assets at period-end		674			591			447
	Nonperforming loans to period-end portfolio loans		.60		%	.51		%	.35		%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.61			.52			.37
Trust assets
	Assets under management		$	57,305		$	54,859		$	53,689
Other data
	Average full-time equivalent employees		16,752			17,129			18,220
	Branches		957			959			971
	Taxable-equivalent adjustment		$	11		$	7		$	7

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 14

(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)March 31, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports First Quarter 2024 Profit     

April 18, 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," and “cash efficiency ratio."

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.

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
	3/31/2024			12/31/2023			3/31/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)	$	14,547		$	14,637		$	14,322
Less: Intangible assets (a)	2,799			2,806			2,836
Preferred Stock (b)	2,446			2,446			2,446
Tangible common equity (non-GAAP)	$	9,302		$	9,385		$	9,040
Total assets (GAAP)	$	187,485		$	188,281		$	197,519
Less: Intangible assets (a)	2,799			2,806			2,836
Tangible assets (non-GAAP)	$	184,686		$	185,475		$	194,683
Tangible common equity to tangible assets ratio (non-GAAP)	5.04		%	5.06		%	4.64		%
Pre-provision net revenue
Net interest income (GAAP)	$	875		$	921		$	1,099
Plus: Taxable-equivalent adjustment	11			7			7
Noninterest income	647			610			608
Less: Noninterest expense	1,143			1,372			1,176
Pre-provision net revenue from continuing operations (non-GAAP)	$	390		$	166		$	538
Average tangible common equity
Average Key shareholders' equity (GAAP)	$	14,649		$	13,471		$	13,817
Less: Intangible assets (average) (c)	2,802			2,811			2,841
Preferred stock (average)	2,500			2,500			2,500
Average tangible common equity (non-GAAP)	$	9,347		$	8,160		$	8,476
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	183		$	30		$	275
Average tangible common equity (non-GAAP)	9,347			8,160			8,476
Return on average tangible common equity from continuing operations (non-GAAP)	7.87		%	1.46		%	13.16		%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	183		$	30		$	276
Average tangible common equity (non-GAAP)	9,347			8,160			8,476
Return on average tangible common equity consolidated (non-GAAP)	7.87		%	1.46		%	13.21		%

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 16

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
	Three months ended
	3/31/2024			12/31/2023			3/31/2023
Cash efficiency ratio
Noninterest expense (GAAP)	$	1,143		$	1,372		$	1,176
Less: Intangible asset amortization	8			10			10
Adjusted noninterest expense (non-GAAP)	$	1,135		$	1,362		$	1,166
Net interest income (GAAP)	$	875		$	921		$	1,099
Plus: Taxable-equivalent adjustment	11			7			7
Net interest income TE (non-GAAP)	886			928			1,106
Noninterest income (GAAP)	647			610			608
Total taxable-equivalent revenue (non-GAAP)	$	1,533		$	1,538		$	1,714
Cash efficiency ratio (non-GAAP)	74.0		%	88.6		%	68.0		%

(a)For the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, intangible assets exclude $1 million, $1 million, and $1 million, respectively, of period-end purchased credit card receivables.

(b)Net of capital surplus.

(c)For the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, average intangible assets exclude $1 million, $1 million, and $1 million, respectively, of average purchased credit card receivables.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 17

Consolidated Balance Sheets
(Dollars in millions)
			3/31/2024		12/31/2023		3/31/2023
Assets
	Loans		$	109,885	$	112,606	$	119,971
	Loans held for sale		228		483		1,211
	Securities available for sale		37,298		37,185		39,498
	Held-to-maturity securities		8,272		8,575		9,561
	Trading account assets		1,171		1,142		1,118
	Short-term investments		13,205		10,817		8,410
	Other investments		1,247		1,244		1,587
		Total earning assets	171,306		172,052		181,356
	Allowance for loan and lease losses		(1,542)		(1,508)		(1,380)
	Cash and due from banks		1,247		941		784
	Premises and equipment		650		661		628
	Goodwill		2,752		2,752		2,752
	Other intangible assets		48		55		85
	Corporate-owned life insurance		4,392		4,383		4,372
	Accrued income and other assets		8,314		8,601		8,512
	Discontinued assets		318		344		410
		Total assets	$	187,485	$	188,281	$	197,519
Liabilities
	Deposits in domestic offices:
		Interest-bearing deposits	$	114,593	$	114,859	$	106,841
		Noninterest-bearing deposits	29,638		30,728		37,307
		Total deposits	144,231		145,587		144,148
	Federal funds purchased and securities sold under repurchase agreements		27		38		1,374
	Bank notes and other short-term borrowings		2,896		3,053		10,061
	Accrued expense and other liabilities		5,008		5,412		4,861
	Long-term debt		20,776		19,554		22,753
		Total liabilities	172,938		173,644		183,197
Equity
	Preferred stock		2,500		2,500		2,500
	Common shares		1,257		1,257		1,257
	Capital surplus		6,164		6,281		6,207
	Retained earnings		15,662		15,672		15,700
	Treasury stock, at cost		(5,722)		(5,844)		(5,868)
	Accumulated other comprehensive income (loss)		(5,314)		(5,229)		(5,474)
		Key shareholders’ equity	14,547		14,637		14,322
Total liabilities and equity			$	187,485	$	188,281	$	197,519
Common shares outstanding (000)			942,776		936,564		935,229

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 18

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
			Three months ended
			3/31/2024		12/31/2023		3/31/2023
Interest income
	Loans		$	1,538	$	1,574	$	1,476
	Loans held for sale		14		12		13
	Securities available for sale		232		213		194
	Held-to-maturity securities		75		78		74
	Trading account assets		14		13		12
	Short-term investments		142		138		42
	Other investments		17		22		13
		Total interest income	2,032		2,050		1,824
Interest expense
	Deposits		782		754		350
	Federal funds purchased and securities sold under repurchase agreements		1		—		22
	Bank notes and other short-term borrowings		46		45		78
	Long-term debt		328		330		275
		Total interest expense	1,157		1,129		725
Net interest income			875		921		1,099
Provision for credit losses			101		102		139
Net interest income after provision for credit losses			774		819		960
Noninterest income
	Trust and investment services income		136		132		128
	Investment banking and debt placement fees		170		136		145
	Cards and payments income		77		84		81
	Service charges on deposit accounts		63		65		67
	Corporate services income		69		67		76
	Commercial mortgage servicing fees		56		48		46
	Corporate-owned life insurance income		32		36		29
	Consumer mortgage income		14		11		11
	Operating lease income and other leasing gains		24		22		25
	Other income		6		9		—
		Total noninterest income	647		610		608
Noninterest expense
	Personnel		674		674		701
	Net occupancy		67		65		70
	Computer processing		102		92		92
	Business services and professional fees		41		44		45
	Equipment		20		24		22
	Operating lease expense		17		18		20
	Marketing		19		31		21
	Other expense		203		424		205
		Total noninterest expense	1,143		1,372		1,176
Income (loss) from continuing operations before income taxes			278		57		392
	Income taxes		59		(8)		81
Income (loss) from continuing operations			219		65		311
	Income (loss) from discontinued operations, net of taxes		—		—		1
Net income (loss)			219		65		312
Net income (loss) attributable to Key			$	219	$	65	$	312
Income (loss) from continuing operations attributable to Key common shareholders			$	183	$	30	$	275
Net income (loss) attributable to Key common shareholders			183		30		276
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.20	$	.03	$	.30
Income (loss) from discontinued operations, net of taxes			—		—		—
Net income (loss) attributable to Key common shareholders (a)			.20		.03		.30
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.20	$	.03	$	.30
Income (loss) from discontinued operations, net of taxes			—		—		—
Net income (loss) attributable to Key common shareholders (a)			.20		.03		.30
Cash dividends declared per common share			$	.205	$	.205	$	.205
Weighted-average common shares outstanding (000)			929,692		927,517		926,490
	Effect of common share options and other stock awards		7,319		6,529		7,314
Weighted-average common shares and potential common shares outstanding (000) (b)			937,011		934,046		933,804

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

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

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		First Quarter 2024						Fourth Quarter 2023						First 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)	$	55,220	$	853	6.22	%	$	56,664	$	870	6.09	%	$	60,281	$	807	5.42	%
	Real estate — commercial mortgage	14,837		229		6.21		15,346		234		6.05		16,470		224		5.52
	Real estate — construction	3,039		57		7.50		3,028		54		7.05		2,525		39		6.30
	Commercial lease financing	3,346		27		3.23		3,568		30		3.34		3,783		27		2.87
	Total commercial loans	76,442		1,166		6.14		78,606		1,188		6.00		83,059		1,097		5.35
	Real estate — residential mortgage	20,814		171		3.29		21,113		174		3.30		21,436		172		3.21
	Home equity loans	7,024		104		5.97		7,227		108		5.93		7,879		106		5.47
	Other consumer loans	5,800		72		4.99		6,015		75		4.94		6,480		76		4.69
	Credit cards	954		36		14.93		987		36		14.47		983		32		13.37
	Total consumer loans	34,592		383		4.44		35,342		393		4.43		36,778		386		4.23
	Total loans	111,034		1,549		5.61		113,948		1,581		5.51		119,837		1,483		5.01
	Loans held for sale	888		14		6.15		695		12		6.85		907		13		5.86
	Securities available for sale (b), (e)	37,089		232		2.17		35,576		213		1.99		39,172		194		1.72
	Held-to-maturity securities (b)	8,423		75		3.57		8,714		78		3.56		8,931		74		3.32
	Trading account assets	1,110		14		5.21		1,104		13		4.93		1,001		12		4.86
	Short-term investments	10,243		142		5.59		9,571		138		5.72		3,532		42		4.80
	Other investments (e)	1,236		17		5.39		1,297		22		6.91		1,309		13		4.01
	Total earning assets	170,023		2,043		4.67		170,905		2,057		4.60		174,689		1,831		4.09
	Allowance for loan and lease losses	(1,505)						(1,484)						(1,336)
	Accrued income and other assets	17,350						17,471						17,498
	Discontinued assets	329						351						419
	Total assets	$	186,197					$	187,243					$	191,270
Liabilities
	Money market deposits	$	37,659	$	264	2.82	%	$	36,648	$	251	2.72	%	$	33,853	$	78	.94	%
	Demand deposits	56,137		357		2.56		56,963		348		2.42		52,365		183		1.42
	Savings deposits	5,253		1		.07		5,492		1		.05		7,346		1		.03
	Time deposits	14,430		160		4.45		14,326		154		4.26		10,498		88		3.39
	Total interest-bearing deposits	113,479		782		2.77		113,429		754		2.63		104,062		350		1.36
	Federal funds purchased and securities sold under repurchase agreements	106		1		4.03		56		—		2.29		2,087		22		4.34
	Bank notes and other short-term borrowings	3,325		46		5.63		3,199		45		5.62		6,597		78		4.80
	Long-term debt (f), (g)	19,537		328		6.72		19,921		330		6.64		20,141		275		5.47
	Total interest-bearing liabilities	136,447		1,157		3.41		136,605		1,129		3.29		132,887		725		2.20
	Noninterest-bearing deposits	29,399						31,647						39,343
	Accrued expense and other liabilities	5,373						5,169						4,804
	Discontinued liabilities (g)	329						351						419
	Total liabilities	$	171,548					$	173,772					$	177,453
Equity
	Key shareholders’ equity	$	14,649					$	13,471					$	13,817
	Noncontrolling interests	—						—						—
	Total equity	14,649						13,471						13,817
	Total liabilities and equity	$	186,197					$	187,243					$	191,270
Interest rate spread (TE)						1.26	%					1.31	%					1.89	%
Net interest income (TE) and net interest margin (TE)				$	886	2.02	%			$	928	2.07	%			$	1,106	2.47	%
TE adjustment (b)				11						7						7
	Net interest income, GAAP basis			$	875					$	921					$	1,099

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) 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, 2024, December 31, 2023, and March 31, 2023.

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

(d)Commercial and industrial average balances include $211 million, $210 million, and $178 million of assets from commercial credit cards for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.

(e)Yield is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $42.7 billion, $42.6 billion, and $45.3 billion for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.

(f)Rate calculation excludes basis adjustments related to fair value hedges.

(g)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 2024 Profit     

April 18, 2024

Page 20

Noninterest Expense
(Dollars in millions)
	Three months ended
	3/31/2024		12/31/2023		3/31/2023
Personnel (a)	$	674	$	674	$	701
Net occupancy	67		65		70
Computer processing	102		92		92
Business services and professional fees	41		44		45
Equipment	20		24		22
Operating lease expense	17		18		20
Marketing	19		31		21
Other expense	203		424		205
Total noninterest expense	$	1,143	$	1,372	$	1,176
Average full-time equivalent employees (b)	16,752		17,129		18,220

(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
	3/31/2024		12/31/2023		3/31/2023
Salaries and contract labor	$	389	$	399	$	419
Incentive and stock-based compensation	159		139		152
Employee benefits	126		97		99
Severance	—		39		31
Total personnel expense	$	674	$	674	$	701

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 21

Loan Composition
(Dollars in millions)
							Change 3/31/2024 vs.
	3/31/2024		12/31/2023		3/31/2023		12/31/2023		3/31/2023
Commercial and industrial (a)(b)	$	54,793	$	55,815	$	60,565	(1.8)	%	(9.5)	%
Commercial real estate:
Commercial mortgage	14,540		15,187		16,348		(4.3)		(11.1)
Construction	3,013		3,066		2,590		(1.7)		16.3
Total commercial real estate loans	17,553		18,253		18,938		(3.8)		(7.3)
Commercial lease financing (b)	3,305		3,523		3,763		(6.2)		(12.2)
Total commercial loans	75,651		77,591		83,266		(2.5)		(9.1)
Residential — prime loans:
Real estate — residential mortgage	20,704		20,958		21,632		(1.2)		(4.3)
Home equity loans	6,905		7,139		7,706		(3.3)		(10.4)
Total residential — prime loans	27,609		28,097		29,338		(1.7)		(5.9)
Other consumer loans	5,690		5,916		6,398		(3.8)		(11.1)
Credit cards	935		1,002		969		(6.7)		(3.5)
Total consumer loans	34,234		35,015		36,705		(2.2)		(6.7)
Total loans (c), (d)	$	109,885	$	112,606	$	119,971	(2.4)	%	(8.4)	%

(a)Loan balances include $214 million, $207 million, and $185 million of commercial credit card balances at March 31, 2024, December 31, 2023, and March 31, 2023, respectively.

(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $349 million at March 31, 2024, and no amounts held as collateral for a secured borrowing at December 31, 2023, and March 31, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $6 million, $7 million, and $6 million at March 31, 2024, December 31, 2023, and March 31, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $313 million at March 31, 2024, $339 million at December 31, 2023, and $407 million at March 31, 2023, related to the discontinued operations of the education lending business.

(d)Accrued interest of $508 million, $522 million, and $522 million at March 31, 2024, December 31, 2023, and March 31, 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 3/31/2024 vs.
	3/31/2024		12/31/2023		3/31/2023		12/31/2023		3/31/2023
Commercial and industrial	$	—	$	50	$	351	N/M		N/M
Real estate — commercial mortgage	155		382		815		(59.4)		(81.0)
Real estate — residential mortgage	73		51		45		43.1		62.2
Total loans held for sale	$	228	$	483	$	1,211	(52.8)	%	(81.2)	%

N/M = Not Meaningful

Summary of Changes in Loans Held for Sale
(Dollars in millions)
	1Q24		4Q23		3Q23		2Q23		1Q23
Balance at beginning of period	$	483	$	730	$	1,130	$	1,211	$	963
New originations	1,738		1,879		3,035		1,798		1,779
Transfers from (to) held to maturity, net	(105)		(31)		(94)		(52)		(13)
Loan sales	(1,893)		(2,095)		(3,312)		(1,798)		(1,518)
Loan draws (payments), net	4		—		(29)		(28)		—
Valuation and other adjustments	1		—		—		(1)		—
Balance at end of period	$	228	$	483	$	730	$	1,130	$	1,211

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 22

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
	Three months ended
	3/31/2024			12/31/2023			3/31/2023
Average loans outstanding	$	111,034		$	113,948		$	119,837
Allowance for loan and lease losses at the beginning of the period	$	1,508		$	1,488		$	1,337
Loans charged off:
Commercial and industrial	62			49			35
Real estate — commercial mortgage	5			24			5
Real estate — construction	—			—			—
Total commercial real estate loans	5			24			5
Commercial lease financing	—			—			(1)
Total commercial loans	67			73			39
Real estate — residential mortgage	1			—			—
Home equity loans	1			(2)			1
Other consumer loans	16			14			11
Credit cards	12			10			9
Total consumer loans	30			22			21
Total loans charged off	97			95			60
Recoveries:
Commercial and industrial	8			11			8
Real estate — commercial mortgage	—			1			—
Real estate — construction	—			1			—
Total commercial real estate loans	—			2			—
Commercial lease financing	2			1			1
Total commercial loans	10			14			9
Real estate — residential mortgage	2			1			1
Home equity loans	1			—			1
Other consumer loans	2			1			3
Credit cards	1			3			1
Total consumer loans	6			5			6
Total recoveries	16			19			15
Net loan charge-offs	(81)			(76)			(45)
Provision (credit) for loan and lease losses	115			96			88
Allowance for loan and lease losses at end of period	$	1,542		$	1,508		$	1,380
Liability for credit losses on lending-related commitments at beginning of period	$	296		$	290		$	225
Provision (credit) for losses on lending-related commitments	(14)			6			51
Other	(1)			—			—
Liability for credit losses on lending-related commitments at end of period (a)	$	281		$	296		$	276
Total allowance for credit losses at end of period	$	1,823		$	1,804		$	1,656
Net loan charge-offs to average total loans	.29		%	.26		%	.15		%
Allowance for loan and lease losses to period-end loans	1.40			1.34			1.15
Allowance for credit losses to period-end loans	1.66			1.60			1.38
Allowance for loan and lease losses to nonperforming loans	234			263			332
Allowance for credit losses to nonperforming loans	277			314			398
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 2024 Profit     

April 18, 2024

Page 23

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
	1Q24			4Q23			3Q23			2Q23			1Q23
Net loan charge-offs	$	81		$	76		$	71		$	52		$	45
Net loan charge-offs to average total loans	.29		%	.26		%	.24		%	.17		%	.15		%
Allowance for loan and lease losses	$	1,542		$	1,508		$	1,488		$	1,480		$	1,380
Allowance for credit losses (a)	1,823			1,804			1,778			1,771			1,656
Allowance for loan and lease losses to period-end loans	1.40		%	1.34		%	1.29		%	1.24		%	1.15		%
Allowance for credit losses to period-end loans	1.66			1.60			1.54			1.49			1.38
Allowance for loan and lease losses to nonperforming loans	234			263			327			343			332
Allowance for credit losses to nonperforming loans	277			314			391			411			398
Nonperforming loans at period end	$	658		$	574		$	455		$	431		$	416
Nonperforming assets at period end	674			591			471			462			447
Nonperforming loans to period-end portfolio loans	.60		%	.51		%	.39		%	.36		%	.35		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.61			.52			.41			.39			.37

(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)
	3/31/2024			12/31/2023			9/30/2023			6/30/2023			3/31/2023
Commercial and industrial	$	360		$	297		$	214		$	188		$	170
Real estate — commercial mortgage	113			100			63			65			59
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	113			100			63			65			59
Commercial lease financing	1			—			1			1			1
Total commercial loans	474			397			278			254			230
Real estate — residential mortgage	79			71			72			73			75
Home equity loans	95			97			97			97			104
Other Consumer loans	4			4			4			4			4
Credit cards	6			5			4			3			3
Total consumer loans	184			177			177			177			186
Total nonperforming loans (a)	658			574			455			431			416
OREO	16			17			16			15			13
Nonperforming loans held for sale	—			—			—			16			18
Other nonperforming assets	—			—			—			—			—
Total nonperforming assets	$	674		$	591		$	471		$	462		$	447
Accruing loans past due 90 days or more	$	119		$	107		$	52		$	73		$	55
Accruing loans past due 30 through 89 days	242			222			178			139			164
Nonperforming assets from discontinued operations — education lending business	2			3			2			2			3
Nonperforming loans to period-end portfolio loans	.60		%	.51		%	.39		%	.36		%	.35		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.61			.52			.41			.39			.37

Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
	1Q24		4Q23		3Q23		2Q23		1Q23
Balance at beginning of period	$	574	$	455	$	431	$	416	$	387
Loans placed on nonaccrual status	243		297		159		169		143
Charge-offs	(97)		(95)		(87)		(76)		(60)
Loans sold	(5)		(9)		(4)		(23)		(2)
Payments	(35)		(56)		(25)		(20)		(31)
Transfers to OREO	(2)		(2)		(3)		(2)		(2)
Loans returned to accrual status	(20)		(16)		(16)		(33)		(19)
Balance at end of period	$	658	$	574	$	455	$	431	$	416

KeyCorp Reports First Quarter 2024 Profit     

April 18, 2024

Page 24

Line of Business Results
(Dollars in millions)
																Change 1Q24 vs.
	1Q24			4Q23			3Q23			2Q23			1Q23			4Q23		1Q23
Consumer Bank
Summary of operations
Total revenue (TE)	$	773		$	786		$	791		$	803		$	840		(1.7)	%	(8.0)	%
Provision for credit losses	(2)			5			14			32			60			(140.0)		(103.3)
Noninterest expense	703			780			677			663			663			(9.9)		6.0
Net income (loss) attributable to Key	55			1			76			82			89			N/M		(38.2)
Average loans and leases	40,446			41,381			42,250			42,934			43,086			(2.3)		(6.1)
Average deposits	84,317			84,856			83,864			82,498			84,637			(.6)		(.4)
Net loan charge-offs	44			40			36			32			24			10.0		83.3
Net loan charge-offs to average total loans	.44		%	.38		%	.34		%	.30		%	.23		%	15.8		91.3
Nonperforming assets at period end	$	196		$	190		$	190		$	193		$	196		3.2		—
Return on average allocated equity	6.18		%	0.11		%	8.48		%	9.04		%	9.87		%	N/M		(37.4)
Commercial Bank
Summary of operations
Total revenue (TE)	$	791		$	794		$	790		$	805		$	844		(.4)	%	(6.3)	%
Provision for credit losses	102			96			68			134			80			6.3		27.5
Noninterest expense	442			525			431			405			442			(15.8)		—
Net income (loss) attributable to Key	200			143			226			214			255			39.9		(21.6)
Average loans and leases	70,099			72,088			74,951			77,277			76,306			(2.8)		(8.1)
Average loans held for sale	840			635			1,268			1,014			876			32.3		(4.1)
Average deposits	56,090			56,897			54,896			51,420			52,219			(1.4)		7.4
Net loan charge-offs	37			35			35			20			21			5.7		76.2
Net loan charge-offs to average total loans	.21		%	.19		%	.19		%	.10		%	.11		%	10.5		90.9
Nonperforming assets at period end	$	479		$	401		$	281		$	269		$	251		19.5		90.8
Return on average allocated equity	8.02		%	5.64		%	8.64		%	8.17		%	10.04		%	42.2		(20.1)

TE = Taxable Equivalent; N/M = Not Meaningful

Selected Items Impact on Earnings(a)
(Dollars in millions, except per share amounts)
	Pretax(b)		After-tax at marginal rate(b)
Quarter to date results	Amount		Net Income		EPS(c)
Three months ended March 31, 2024
FDIC special assessment (other expense)(d)	$	(29)	$	(22)	$	(0.02)
Three months ended December 31, 2023
Efficiency related expenses(e)	(67)		(51)		(0.05)
Pension settlement (other expense)	(18)		(14)		(0.02)
FDIC special assessment (other expense)(d)	(190)		(144)		(0.15)
Total selected items	(275)		(209)		(0.22)
Three months ended March 31, 2023
Efficiency related expenses(f)	(64)		(49)		(0.05)

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

(b)Favorable (unfavorable) impact.

(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. 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.

(e)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.

(f)Efficiency related expenses for the three months ended March 31, 2023, consist primarily of $31 million of severance recorded in personnel expense and $28 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.