8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 22, 2010

(Exact name of registrant as
specified in its charter)

Ohio	1-11302	34-6542451
(State or other jurisdiction of incorporation)	Commission File Number	(I.R.S. Employer Identification No.)
127 Public Square, Cleveland, Ohio		44114-1306
(Address of principal executive offices)		(Zip Code)

(216) 689-3000
Registrant’s telephone number, including area code:

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

8-K - FORM 8-K EARNINGS RELEASE

ITEM 2.02. Results of Operations and Financial Condition.
ITEM 7.01. Regulation FD Disclosure.
ITEM 9.01. Financial Statements and Exhibits.
SIGNATURE
INDEX TO EXHIBITS:
EX-99.1 (Press Release Dated October 22, 2010)
EX-99.2 (Supplemental Information Package in Connection With Financial Results)
EX-99.3 (Consolidated Balance Sheets and Consolidated Statements of Income)

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

          On October 22, 2010, KeyCorp issued a press release announcing its financial results for the three and nine-month periods ended September 30, 2010 (the “Press Release”). The Press Release is attached as Exhibit 99.1 to this report and incorporated by reference in this Item 2.02.

          The information in the preceding paragraph, as well as Exhibit 99.1 and Exhibit 99.2 referenced therein, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”).

          KeyCorp’s Consolidated Balance Sheets and Consolidated Statements of Income (the “Financial Statements”), included as part of the Press Release, are attached as Exhibit 99.3 to this report and incorporated by reference herein. Exhibit 99.3 is “filed” for purposes of Section 18 of the Exchange Act and, therefore, may be incorporated by reference in filings under the Securities Act.

Item 7.01 Regulation FD Disclosure.

          On October 22, 2010, KeyCorp held a conference call and webcast to facilitate a discussion of its financial condition at September 30, 2010, and its financial results for the three and nine-month periods ended September 30, 2010. The Supplemental Information Package reviewed by KeyCorp during the conference call and webcast is furnished herewith as Exhibit 99.2 and incorporated by reference in this Item 7.01. All information in the Supplemental Information Package is presented as of the particular dates or for the periods referenced therein, and KeyCorp does not undertake any obligation to, and disclaims any duty to, update any of the information provided.

          The information in the preceding paragraph, as well as Exhibit 99.2 referenced therein, is being furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that section. Furthermore, the information contained in Exhibit 99.2 shall not be deemed incorporated by reference in any filing of KeyCorp under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are furnished, or filed in the case of Exhibit 99.3, herewith:

99.1     KeyCorp’s Press Release, dated October 22, 2010, announcing KeyCorp’s financial results for the three and nine-month periods ended September 30, 2010.

99.2     KeyCorp’s Supplemental Information Package reviewed by KeyCorp during the conference call and webcast.

99.3     KeyCorp’s Financial Statements.

* * *

          Forward-Looking Statements This filing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key’s financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Key’s control. Key’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Key’s actual results to differ materially from those described in the forward-looking statements can be found in Key’s Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Reports on Form 10-Q for the periods ended March 31, 2010, and June 30, 2010, which have been filed with the Securities and Exchange Commission and are available on Key’s website (www.key.com) and on the Securities and Exchange Commission’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Key does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, KeyCorp has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	KEYCORP (Registrant)
Date: October 22, 2010	/s/	Robert L. Morris
	By:	Robert L. Morris
		Executive Vice President and Chief Accounting Officer

EX-99.1

Exhibit 99.1

News

KeyCorp
127 Public Square
Cleveland, OH 44114

CONTACTS: ANALYSTS	MEDIA
Vernon L. Patterson	William C. Murschel
216.689.0520	216.471.2885
Vernon_Patterson@KeyBank.com	William_C_Murschel@KeyBank.com
Christopher F. Sikora
216.689.3133
Chris_F_Sikora@KeyBank.com

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

FOR IMMEDIATE RELEASE

KEYCORP REPORTS THIRD QUARTER 2010
AND YEAR-TO-DATE PROFIT

• Net income from continuing operations of $163 million, or $.19 per common share, for the third quarter of 2010

• Year-to-date net income from continuing operations of $121 million, or $.14 per common share

• Net interest margin expanded 18 basis points from second quarter of 2010 to 3.35% for the third quarter of 2010

• Pre-provision net revenue from continuing operations (net interest income plus taxable-equivalent adjustment and noninterest income less noninterest expense) increased $51 million from second quarter of 2010 to $397 million for the third quarter of 2010

• Nonperforming loans decreased by $331 million from second quarter of 2010 to 2.67% of total period-end loans at September 30, 2010

• Loan loss reserve at 3.81% of total period-end loans and represented 143% coverage of nonperforming loans at September 30, 2010

• Net charge-offs declined to $357 million, or 2.69% of average loan balances, for the third quarter of 2010

• Tier 1 common equity and Tier 1 risk-based capital ratios estimated at 8.59% and 14.26%, respectively

CLEVELAND, October 22, 2010 – KeyCorp (NYSE: KEY) today announced third quarter net income from continuing operations attributable to Key common shareholders of $163 million, or $.19 per common share. These results compare to a net loss from continuing operations attributable to Key common shareholders of $422 million, or $.50 per common share, for the third quarter of 2009. The third quarter 2009 results were negatively impacted by a $733 million loan loss provision. Third quarter 2010 net income attributable to Key common shareholders was $178 million compared to a net loss attributable to Key common shareholders of $438 million for the same quarter one year ago. Net income attributable to Key common

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 2

shareholders for the nine-month period ended September 30, 2010 was $111 million compared to a net loss attributable to Key common shareholders of $1.364 billion for the same period one year ago.

Key’s third quarter earnings improvement resulted from improved pre-provision net revenue and a lower provision for loan losses when compared to the second quarter of 2010. Credit quality continued to improve across the majority of the loan portfolios in both Community Banking and National Banking. Net charge-offs declined by $78 million, and nonperforming loans decreased by $331 million from June 30, 2010.

“With the third quarter’s results, Key has returned to profitability on a year-to-date basis,” said Chief Executive Officer Henry L. Meyer III. “We are pleased with our progress and recognize the important contributions of employees across Key who have remained focused on serving our clients through what has been the most challenging economic period in decades. Our third quarter results reflect a higher net interest margin, continued credit quality improvement, well-controlled expenses, and improvements in several fee-based businesses.”

Meyer continued: “Our work to lower our risk profile and proactively address credit issues is resulting in asset quality improvements across a majority of our loan portfolios and the fourth consecutive quarterly decline in nonperforming assets.”

“Key’s core financial measures – strong capital, enhanced liquidity, adequate loan loss reserves – along with our selective exits from riskier lending categories, together provide a firm foundation for growth as the economy strengthens,” added Meyer.

At September 30, 2010, Key’s estimated Tier 1 common equity ratio was 8.59% compared to 8.07% at June 30, 2010, and estimated Tier 1 risk-based capital ratio was 14.26% up from 13.62% one quarter ago.

Key’s strong capital and liquidity positions provide the Company with the ability to serve the borrowing needs of our clients when the economy expands. The Company originated approximately $8.1 billion in new or renewed lending commitments to consumers and businesses during the quarter and approximately $21 billion for the nine-month period ended September 30, 2010.

Meyer also noted that Key opened 34 new branches during the first nine months of 2010 and expects to open an additional five new branches during the fourth quarter of 2010, increasing its market presence in selected markets of its 14-state branch network. In addition, Key’s online account application features were ranked second among the 16 largest U.S. banks in Corporate Insight’s September 2010 edition of Bank Monitor, a leading rating service for the online space. Key had previously been recognized by Bank Monitor for its capabilities in the areas of online application, account information, and alerts. The investment in new and modernized branches, coupled with the enhancements to online banking, reflect Key’s relationship strategy and efforts to provide clients with a breadth of options that meet their specific banking needs. The Company is positioning its branch and online capabilities to enhance growth as the economy turns.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 3

The following table shows Key’s continuing and discontinued operating results for the comparative quarters and for the nine-month periods ended September 30, 2010 and 2009.

Results of Operations

		Three months ended								Nine months ended
in millions, except per share amounts		9-30-10	6-30-10			9-30-09				9-30-10			9-30-09
Summary of operations
Income (loss) from continuing operations attributable to Key	$	204	$	97		$	(381	)	$	244		$	(1,070	)
Income (loss) from discontinued operations, net of taxes (a)		15		(27	)		(16	)		(10	)		(41	)
Net income (loss) attributable to Key	$	219	$	70		$	(397	)	$	234		$	(1,111	)
Income (loss) from continuing operations attributable to Key	$	204	$	97		$	(381	)	$	244		$	(1,070	)
Less:    Dividends on Series A Preferred Stock		6		6			7			17			34
Noncash deemed dividend — common shares exchanged for Series A Preferred Stock		—		—			—			—			114
Cash dividends on Series B Preferred Stock		31		31			31			94			94
Amortization of discount on Series B Preferred Stock		4		4			3			12			11
Income (loss) from continuing operations attributable to Key common shareholders		163		56			(422	)		121			(1,323	)
Income (loss) from discontinued operations, net of taxes (a)		15		(27	)		(16	)		(10	)		(41	)
Net income (loss) attributable to Key common shareholders	$	178	$	29		$	(438	)	$	111		$	(1,364	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.19	$	.06		$	(.50	)	$	.14		$	(2.07	)
Income (loss) from discontinued operations, net of taxes (a)		.02		(.03	)		(.02	)		(.01	)		(.06	)
Net income (loss) attributable to Key common shareholders (b)	$	.20	$	.03		$	(.52	)	$	.13		$	(2.14	)

(a)

In September 2009, management made the decision to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank National Association. In April 2009, management made the decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of these decisions, Key has accounted for these businesses as discontinued operations. The loss from discontinued operations for the nine-month period ended September 30, 2010 was primarily attributable to fair value adjustments related to the education lending securitization trusts. Included in the loss from discontinued operations for the nine-month period ended September 30, 2009, is a $23 million after-tax, or $.05 per common share, charge for intangible assets impairment related to Austin Capital Management.

(b)

Earnings per share may not foot due to rounding.

SUMMARY OF CONTINUING OPERATIONS

Taxable-equivalent net interest income was $647 million for the third quarter of 2010, and the net interest margin was 3.35%. These results compare to taxable-equivalent net interest income of $599 million and a net interest margin of 2.80% for the third quarter of 2009. The increase in the net interest margin is primarily attributable to lower funding costs. The Company continues to experience an improvement in the mix of deposits by reducing the level of higher costing certificates of deposit and increasing lower costing transaction accounts. Key expects this change in funding mix to continue although at a slower pace going forward. This reduced pace will result from a lower volume of higher costing maturing certificates of deposit. Additionally, Key experienced improved yields on loans due to lower levels of nonperforming loans.

Compared to the second quarter of 2010, taxable-equivalent net interest income increased by $24 million, and the net interest margin expanded by 18 basis points. Most of this improvement is attributable to the repricing of certificates of deposit and an overall improved mix of deposits. The Company’s third quarter net interest margin also benefitted from reducing amounts invested in overnight short-term investments and investing these funds in collateralized mortgage-backed securities with an average duration of 2.5-3.5 years issued by government-sponsored entities.

Key’s noninterest income was $486 million for the third quarter of 2010, compared to $382 million for the year-ago quarter. Fee-based income improved by $95 million from the third quarter of 2009, which included increases of $68 million in investment banking and

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 4

capital markets income and $15 million in letter of credit and loan fees. Also included in the third quarter of 2010 was a $12 million dividend from corporate-owned life insurance.

The major components of Key’s fee-based income for the past five quarters are shown in the following table.

Fee-based Income – Major Components

in millions	3Q10		2Q10		1Q10		4Q09		3Q09
Trust and investment services income	$	110	$	112	$	114	$	117	$	113
Service charges on deposit accounts		75		80		76		82		83
Operating lease income		41		43		47		52		55
Letter of credit and loan fees		61		42		40		52		46
Corporate-owned life insurance income		39		28		28		36		26
Electronic banking fees		30		29		27		27		27
Insurance income		15		19		18		16		18
Net gains (losses) from principal investing		18		17		37		80		(6)
Investment banking and capital markets income (loss)		42		31		9		(47)		(26)

Compared to the second quarter of 2010, noninterest income decreased by $6 million. This decrease in noninterest income resulted from declines in net gains from loan sales of $7 million, the anticipated decrease in service charges on deposit accounts of $5 million from the implementation of Regulation E, and various miscellaneous income components of $34 million. These decreases were partially offset by increases of $19 million in letter of credit and loan fees and $11 million in investment banking and capital market income. In addition, Key recognized a $12 million corporate-owned life insurance dividend in the third quarter of 2010.

Key’s noninterest expense was $736 million for the third quarter of 2010, compared to $901 million for the same period last year. Key recorded a credit of $10 million to the provision for losses on lending-related commitments during the third quarter of 2010, compared to a charge to the provision of $29 million in the year-ago quarter. Also contributing to the decrease was a decline in employee benefits expense of $31 million, which included a $12 million credit to pension expense. Additionally, in the third quarter of 2009, Key recognized a $45 million write-off of intangible assets and $51 million of other real estate owned (“OREO”) expense, compared to OREO expense of $4 million for the third quarter of 2010.

Compared to the second quarter of 2010, noninterest expense decreased by $33 million. This decline was primarily a result of a $26 million decrease in employee benefits expense, which included the pension expense item discussed above, and a decrease in OREO expense of $18 million. These declines were partially offset by increases in net occupancy costs of $6 million primarily related to reserves on vacant corporate facilities and operating lease expense of $5 million for impaired leases.

ASSET QUALITY

Key’s provision for loan losses was $94 million for the third quarter of 2010, compared to $733 million for the year-ago quarter and $228 million for the second quarter of 2010. Key’s allowance for loan losses was $2 billion, or 3.81% of total period-end loans, at September 30, 2010, compared to 4.16% at June 30, 2010, and 4.00% at September 30, 2009.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 5

          Selected asset quality statistics for Key for each of the past five quarters are presented in the following table.

Selected Asset Quality Statistics from Continuing Operations

dollars in millions	3Q10			2Q10			1Q10			4Q09			3Q09
Net loan charge-offs	$	357		$	435		$	522		$	708		$	587
Net loan charge-offs to average loans		2.69	%		3.18	%		3.67	%		4.64	%		3.59	%
Allowance for loan losses	$	1,957		$	2,219		$	2,425		$	2,534		$	2,485
Allowance for credit losses (a)		2,056			2,328			2,544			2,655			2,579
Allowance for loan losses to period-end loans		3.81	%		4.16	%		4.34	%		4.31	%		4.00	%
Allowance for credit losses to period-end loans		4.00			4.36			4.55			4.52			4.15
Allowance for loan losses to nonperforming loans		142.64			130.30			117.43			115.87			108.52
Allowance for credit losses to nonperforming loans		149.85			136.70			123.20			121.40			112.62
Nonperforming loans at period end	$	1,372		$	1,703		$	2,065		$	2,187		$	2,290
Nonperforming assets at period end		1,801			2,086			2,428			2,510			2,799
Nonperforming loans to period-end portfolio loans		2.67	%		3.19	%		3.69	%		3.72	%		3.68	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		3.48			3.88			4.31			4.25			4.46

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

          Net loan charge-offs for the quarter totaled $357 million, or 2.69%, of average loans. These results compare to $587 million, or 3.59%, for the same period last year and $435 million, or 3.18%, for the previous quarter.

          Key’s net loan charge-offs by loan type for each of the past five quarters are shown in the following table.

Net Loan Charge-offs from Continuing Operations

dollars in millions	3Q10			2Q10			1Q10			4Q09			3Q09
Commercial, financial and agricultural	$	136		$	136		$	126		$	218		$	168
Real estate — commercial mortgage		46			126			106			165			81
Real estate — construction		76			75			157			181			216
Commercial lease financing		16			14			21			39			27
Total commercial loans		274			351			410			603			492
Home equity — Community Banking		35			25			30			27			25
Home equity — Other		13			16			17			19			20
Marine		12			19			38			33			25
Other		23			24			27			26			25
Total consumer loans		83			84			112			105			95
Total net loan charge-offs	$	357		$	435		$	522		$	708		$	587
Net loan charge-offs to average loans from continuing operations		2.69	%		3.18	%		3.67	%		4.64	%		3.59	%
Net loan charge-offs from discontinued operations — education lending business	$	22		$	31		$	36		$	36		$	38

          Compared to the second quarter of 2010, net loan charge-offs in the commercial loan portfolio decreased by $77 million. The decrease was attributable to a decline in the real estate commercial mortgage loan portfolio. As shown in the table on page 6, Key’s exit loan portfolio accounted for $105 million, or 29.41%, of Key’s total net loan charge-offs for the third quarter of 2010. Net charge-offs in the exit loan portfolio decreased by $9 million from the second quarter of 2010, primarily driven by an improvement in the marine portfolio.

          At September 30, 2010, Key’s nonperforming loans totaled $1.4 billion and represented 2.67% of period-end portfolio loans, compared to 3.19% at June 30, 2010, and 3.68% at September 30, 2009. Nonperforming assets at September 30, 2010 totaled $1.8 billion and represented 3.48% of portfolio loans, OREO and other nonperforming assets, compared to

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 6

3.88% at June 30, 2010, and 4.46% at September 30, 2009. The following table illustrates the trend in Key’s nonperforming assets by loan type over the past five quarters.

Nonperforming Assets from Continuing Operations

dollars in millions	3Q10			2Q10			1Q10			4Q09			3Q09
Commercial, financial and agricultural	$	335		$	489		$	558		$	586		$	679
Real estate — commercial mortgage		362			404			579			614			566
Real estate — construction		333			473			607			641			702
Commercial lease financing		84			83			99			113			131
Total consumer loans		258			254			222			233			212
Total nonperforming loans		1,372			1,703			2,065			2,187			2,290
Nonperforming loans held for sale		230			221			195			116			304
OREO and other nonperforming assets		199			162			168			207			205
Total nonperforming assets	$	1,801		$	2,086		$	2,428		$	2,510		$	2,799
Restructured loans included in nonperforming loans (a)	$	228		$	213		$	226		$	364		$	65
Nonperforming assets from discontinued operations — education lending business		38			40			43			14			12
Nonperforming loans to period-end portfolio loans		2.67	%		3.19	%		3.69	%		3.72	%		3.68	%
Nonperforming assets to period-end portfolio loans, plus OREO and other nonperforming assets		3.48			3.88			4.31			4.25			4.46

(a) Restructured loans (i.e. troubled debt restructurings) are those for which Key, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.

          Nonperforming assets continued to decrease during the third quarter of 2010, representing the fourth consecutive quarterly decline. Most of the reduction came from nonperforming loans in the commercial, financial and agricultural and the real estate – construction portfolios. As shown in the following table, Key’s exit loan portfolio accounted for $290 million, or 16.10%, of Key’s total nonperforming assets at September 30, 2010, compared to $385 million, or 18.46%, at June 30, 2010.

          Shown in the following table are the composition of Key’s exit loan portfolio at September 30, 2010, and June 30, 2010, the net charge-offs recorded on this portfolio for the second and third quarters of 2010, and the nonperforming status of these loans at September 30, 2010, and June 30, 2010.

Exit Loan Portfolio from Continuing Operations

	Balance				Change			Net Loan				Balance on
	Outstanding				9-30-10 vs.			Charge-offs				Nonperforming Status
in millions	9-30-10		6-30-10		6-30-10			3Q10		2Q10		9-30-10		6-30-10
Residential properties — homebuilder	$	148	$	195	$	(47	)	$	23	$	20	$	94	$	109
Residential properties — held for sale		8		25		(17	)		—		—		8		25
Total residential properties		156		220		(64	)		23		20		102		134
Marine and RV floor plan		225		268		(43	)		7		14		42		59
Commercial lease financing (a)		2,231		2,437		(206	)		47		44		88		133
Total commercial loans		2,612		2,925		(313	)		77		78		232		326
Home equity — Other		707		753		(46	)		13		16		16		17
Marine		2,355		2,491		(136	)		12		19		41		41
RV and other consumer		172		188		(16	)		3		1		1		1
Total consumer loans		3,234		3,432		(198	)		28		36		58		59
Total exit loans in loan portfolio	$	5,846	$	6,357	$	(511	)	$	105	$	114	$	290	$	385
Discontinued operations — education lending business (not included in exit loans above) (b)	$	6,651	$	6,686	$	(35	)	$	22	$	31	$	38	$	40

(a)	Includes the business aviation, commercial vehicle, office products, construction and industrial leases, and Canadian lease financing portfolios; and all remaining balances related to lease in, lease out; sale in, sale out; service contract leases; and qualified technological equipment leases.
(b)	Includes loans in Key’s education loan securitization trusts consolidated upon the adoption of new consolidation accounting guidance on January 1, 2010.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 7

CAPITAL

          Key’s risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2010.

Capital Ratios

	9-30-10			6-30-10			3-31-10			12-31-09			9-30-09
Tier 1 common equity (a), (b)		8.59	%		8.07	%		7.51	%		7.50	%		7.64	%
Tier 1 risk-based capital (a)		14.26			13.62			12.92			12.75			12.61
Total risk-based capital (a)		18.18			17.80			17.07			16.95			16.65
Tangible common equity to tangible assets (b)		8.00			7.65			7.37			7.56			7.58

(a)	September 30, 2010 ratio is estimated.
(b)	The table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “Tier 1 common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

          As shown in the preceding table, at September 30, 2010, Key had an estimated Tier 1 common equity ratio of 8.59%, an estimated Tier 1 risk-based capital ratio of 14.26%, and a tangible common equity ratio of 8.00%.

          Transactions that caused the change in Key’s outstanding common shares over the past five quarters are summarized in the following table.

Summary of Changes in Common Shares Outstanding

in thousands	3Q10			2Q10		1Q10		4Q09			3Q09
Shares outstanding at beginning of period		880,515			879,052		878,535		878,559			797,246
Common shares exchanged for capital securities		—			—		—		—			81,278
Shares reissued (returned) under employee benefit plans		(187	)		1,463		517		(24	)		35
Shares outstanding at end of period		880,328			880,515		879,052		878,535			878,559

          During each of the first three quarters of 2010, Key made a $31 million cash dividend payment to the U.S. Treasury Department as a participant in the U.S. Treasury’s Capital Purchase Program. During 2009, Key made four quarterly dividend payments aggregating $125 million to the U.S. Treasury Department.

LINE OF BUSINESS RESULTS

          The following table shows the contribution made by each major business group to Key’s taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. The specific lines of business that comprise each of the major business groups are described under the heading “Line of Business Descriptions.” During the first quarter of 2010, Key realigned its reporting structure for its business groups. Prior to 2010, Consumer Finance consisted mainly of portfolios which were identified as exit or run-off portfolios and were included in Key’s National Banking segment. Effective for all periods presented, Key is reflecting the results of these exit portfolios in Other Segments. The automobile dealer floor plan business, previously included in Consumer Finance, has been realigned with the Commercial Banking line of business within the Community Banking segment. In addition, other previously identified exit portfolios included in the National Banking segment have been moved to Other Segments. For more detailed financial information pertaining to each business group and its respective lines of business, see the tables at the end of this release.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 8

Major Business Groups

									Percent change 3Q10 vs.
dollars in millions	3Q10			2Q10		3Q09			2Q10				3Q09
Revenue from continuing operations (TE)
Community Banking	$	601		$	608	$	630			(1.2	)	%		(4.6	)	%
National Banking (a)		430			409		381			5.1				12.9
Other Segments (b)		103			86		(23	)		19.8				N/M
Total Segments		1,134			1,103		988			2.8				14.8
Reconciling Items		(1	)		12		(7	)		N/M				85.7
Total	$	1,133		$	1,115	$	981			1.6		%		15.5		%
Income (loss) from continuing operations attributable to Key
Community Banking	$	57		$	35		—			62.9		%		N/M
National Banking (a)		130			34	$	(236	)		282.4				N/M
Other Segments (b)		19			28		(150	)		(32.1	)			N/M
Total Segments		206			97		(386	)		112.4				N/M
Reconciling Items		(2	)		—		5			N/M				N/M
Total	$	204		$	97	$	(381	)		110.3		%		N/M

(a)	National Banking’s results for the third quarter of 2009 include a $45 million ($28 million after-tax) write-off of intangible assets, other than goodwill, resulting from Key’s decision to cease lending in certain equipment leasing markets.
(b)	Other Segments’ results for the third quarter of 2009 include a $17 million ($11 million after-tax) loss related to the exchange of Key common shares for capital securities.

TE = Taxable Equivalent, N/M = Not Meaningful

Community Banking

								Percent change 3Q10 vs.
dollars in millions	3Q10		2Q10		3Q09			2Q10				3Q09
Summary of operations
Net interest income (TE)	$	404	$	408	$	435			(1.0	)	%		(7.1	)	%
Noninterest income		197		200		195			(1.5	)			1.0
Total revenue (TE)		601		608		630			(1.2	)			(4.6	)
Provision for loan losses		75		121		160			(38.0	)			(53.1	)
Noninterest expense		458		451		488			1.6				(6.1	)	%
Income (loss) before income taxes (TE)		68		36		(18	)		88.9				N/M
Allocated income taxes and TE adjustments		11		1		(18	)		N/M				N/M
Net income (loss) attributable to Key	$	57	$	35	$	—			62.9		%		N/M
Average balances
Loans and leases	$	26,779	$	27,218	$	29,126			(1.6	)	%		(8.1	)	%
Total assets		30,004		30,292		31,956			(1.0	)			(6.1	)
Deposits		48,703		50,421		53,068			(3.4	)			(8.2	)
Assets under management at period end	$	17,816	$	16,980	$	17,090			4.9		%		4.2		%

TE = Taxable Equivalent, N/M = Not Meaningful

Additional Community Banking Data										Percent change 3Q10 vs.
dollars in millions	3Q10			2Q10			3Q09			2Q10				3Q09
Average deposits outstanding
NOW and money market deposit accounts	$	20,124		$	19,418		$	17,382			3.6		%		15.8		%
Savings deposits		1,872			1,870			1,776			.1				5.4
Certificates of deposit ($100,000 or more)		5,449			6,597			8,884			(17.4	)			(38.7	)
Other time deposits		9,596			11,248			14,705			(14.7	)			(34.7	)
Deposits in foreign office		368			421			478			(12.6	)			(23.0	)
Noninterest-bearing deposits		11,294			10,867			9,843			3.9				14.7
Total deposits	$	48,703		$	50,421		$	53,068			(3.4	)	%		(8.2	)	%
Home equity loans
Average balance	$	9,709		$	9,837		$	10,191
Weighted-average loan-to-value ratio (at date of origination)		70	%		70	%		70	%
Percent first lien positions		52			52			53
Other data
Branches		1,029			1,019			1,003
Automated teller machines		1,522			1,511			1,492

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 9

Community Banking Summary of Operations

          Community Banking recorded net income attributable to Key of $57 million for the third quarter of 2010, compared to net income attributable to Key of less than $1 million for the year-ago quarter. Decreases in the provision for loan losses and noninterest expense contributed to the improvement in the third quarter of 2010.

          Taxable-equivalent net interest income declined by $31 million, or 7%, from the third quarter of 2009, due to declines in average earning assets and average deposits. Average earning assets decreased $2 billion, or 8%, from the year-ago quarter, reflecting reductions in the commercial loan and home equity loan portfolios. Average deposits declined by $4 billion, or 8%. The mix of deposits continues to change from the year-ago quarter as higher-costing certificates of deposit originated in prior years mature, partially offset by growth in noninterest-bearing deposits and NOW accounts.

          Noninterest income increased by $2 million, or 1%, from the year-ago quarter, due to higher income from trust and investment services, electronic banking fees, and a reduction in the provision for credit losses from client derivatives. The increase in trust and investment services income reflects increased performance in the Key Private Bank, as well as growth in Key’s branch-based investment services. These factors were partially offset by the anticipated lower service charges on deposits from the implementation of Regulation E.

          The provision for loan losses declined by $85 million, or 53%, compared to the third quarter of 2009 due to improving economic conditions from one year ago.

          Noninterest expense declined by $30 million, or 6%, from the year-ago quarter. The decrease was driven by reductions in FDIC deposit insurance premiums of $9 million from the third quarter of 2009, a credit of $5 million recorded to the provision for losses on lending-related commitments compared to a charge of $7 million recorded in the third quarter of 2009, and a reduction in corporate allocated costs. These improvements were partially offset by increases in personnel expense and professional fees.

National Banking

	Percent change 3Q10 vs.
dollars in millions	3Q10			2Q10		3Q09			2Q10				3Q09
Summary of operations
Net interest income (TE)	$	201		$	199	$	217			1.0		%		(7.4	)	%
Noninterest income		229			210		164			9.0				39.6
Total revenue (TE)		430			409		381			5.1				12.9
Provision for loan losses		(25	)		99		439			N/M				N/M
Noninterest expense (a)		249			259		325			(3.9	)			(23.4	)
Income (loss) before income taxes (TE)		206			51		(383	)		303.9				N/M
Allocated income taxes and TE adjustments		76			17		(146	)		347.1				N/M
Net income (loss)		130			34		(237	)		282.4				N/M
Less: Net income (loss) attributable to noncontrolling interests		—			—		(1	)		—				100.0		%
Net income (loss) attributable to Key	$	130		$	34	$	(236	)		282.4		%		N/M
Average balances
Loans and leases	$	19,534		$	20,948	$	26,716			(6.8	)	%		(26.9	)	%
Loans held for sale		380			381		368			(.3	)			3.3
Total assets		23,765			24,781		31,856			(4.1	)			(25.4	)
Deposits		11,779			12,474		13,305			(5.6	)	%		(11.5	)
Assets under management at period end	$	41,902		$	41,882	$	49,055			—				(14.6	)	%

TE = Taxable Equivalent, N/M = Not Meaningful

(a) National Banking’s results for the third quarter of 2009 include a $45 million ($28 million after-tax) write-off of intangible assets, other than goodwill, resulting from Key’s decision to cease lending in certain equipment leasing markets.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 10

National Banking Summary of Operations

          National Banking recorded net income attributable to Key of $130 million for the third quarter of 2010, compared to a net loss attributable to Key of $236 million for the same period one year ago. This improvement in the third quarter of 2010 was a result of a substantial decrease in the provision for loan losses.

          Taxable-equivalent net interest income decreased by $16 million, or 7%, compared to the third quarter of 2009, primarily due to lower earning assets, partially offset by improved earning asset yields. Average earning assets decreased by $7 billion, or 27%, from the year-ago quarter.

          Noninterest income increased $65 million from the third quarter of 2009. Investment banking and capital markets income increased $56 million, letter of credit and loan fees increased $18 million, and net gains from loan sales were $8 million, compared to net losses from loan sales of $9 million for the same period one year ago. These gains were offset by decreases in trust and investment services income of $8 million, operating lease revenue of $7 million, and various other miscellaneous income items from the third quarter of 2009.

          The provision for loan losses in the third quarter of 2010 was a $25 million credit compared to a $439 million charge for the same period one year ago. National Banking continued to experience improved asset quality for the fourth quarter in a row.

          Noninterest expense decreased by $76 million, or 23%, from the third quarter of 2009 as a result of a decrease in the write-off of intangible assets of $45 million and a credit of $4 million to the provision for losses on lending-related commitments compared to a charge of $20 million in the year-ago quarter. OREO expense, operating lease expense, and the provision for losses on LIHTC guaranteed funds also declined from the third quarter of 2009. These improvements were partially offset by an increase in personnel costs.

Other Segments

          Other Segments consist of Corporate Treasury, Key’s Principal Investing unit and various exit portfolios which were previously included within the National Banking segment. These exit portfolios were moved to Other Segments during the first quarter of 2010. Prior periods have been adjusted to conform with the current reporting of the financial information for each segment. Other Segments generated net income attributable to Key of $19 million for the third quarter of 2010, compared to a net loss attributable to Key of $150 million for the same period last year. These results reflect an increase in net interest income of $86 million from the third quarter of 2009 and a decrease in the provision for loan losses of $92 million.

Line of Business Descriptions

Community Banking

Regional Banking provides individuals with branch-based deposit and investment products, personal finance services and loans, including residential mortgages, home equity and various types of installment loans. This line of business also provides small businesses with deposit, investment and credit products, and business advisory services.

Regional Banking also offers financial, estate and retirement planning, and asset management services to assist high-net-worth clients with their banking, trust, portfolio management, insurance, charitable giving and related needs.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 11

Commercial Banking provides midsize businesses with products and services that include commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, derivatives and foreign exchange.

National Banking

Real Estate Capital and Corporate Banking Services consists of two business units, Real Estate Capital and Corporate Banking Services.

Real Estate Capital is a national business that provides construction and interim lending, permanent debt placements and servicing, equity and investment banking, and other commercial banking products and services to developers, brokers and owner-investors. This unit deals primarily with nonowner-occupied properties (i.e., generally properties in which at least 50% of the debt service is provided by rental income from nonaffiliated third parties). Real Estate Capital emphasizes providing clients with finance solutions through access to the capital markets.

Corporate Banking Services provides cash management, interest rate derivatives, and foreign exchange products and services to clients served by both the Community Banking and National Banking groups. Through its Public Sector and Financial Institutions businesses, Corporate Banking Services also provides a full array of commercial banking products and services to government and not-for-profit entities, and to community banks. A variety of cash management services are provided through the Global Treasury Management unit.

Equipment Finance meets the equipment leasing needs of companies worldwide and provides equipment manufacturers, distributors and resellers with financing options for their clients. Lease financing receivables and related revenues are assigned to other lines of business (primarily Institutional and Capital Markets and Commercial Banking) if those businesses are principally responsible for maintaining the relationship with the client.

Institutional and Capital Markets, through its KeyBanc Capital Markets unit, provides commercial lending, treasury management, investment banking, derivatives, foreign exchange, equity and debt underwriting and trading, and syndicated finance products and services to large corporations and middle-market companies.

Institutional and Capital Markets, through its Victory Capital Management unit, also manages or offers advice regarding investment portfolios for a national client base, including corporations, labor unions, not-for-profit organizations, governments and individuals. These portfolios may be managed in separate accounts, common funds or the Victory family of mutual funds.

          Cleveland-based KeyCorp (NYSE: KEY) is one of the nation’s largest bank-based financial services companies, with assets of approximately $94 billion at September 30, 2010. Key companies provide investment management, retail and commercial banking, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. In 2009, KeyBank was awarded its seventh consecutive “Outstanding” rating for economic development achievements under the Community Reinvestment Act, the only national bank among the 50 largest in the United States to achieve this distinction from the Office of the Comptroller of the Currency. Key has also been recognized for excellence in numerous areas of the multi-channel customer banking experience, including Corporate Insight’s 2009 and 2010 editions of Bank Monitor for online service. For more information about Key, visit https://www.key.com/.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 12

Notes to Editors:

A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on Friday, October 22, 2010. An audio replay of the call will be available through October 29, 2010.

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.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key’s financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Key’s control. Key’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Key’s actual results to differ materially from those described in the forward-looking statements can be found in Key’s Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Reports on Form 10-Q for the periods ended March 31, 2010, and June 30, 2010, which have been filed with the Securities and Exchange Commission and are available on Key’s website (www.key.com) and on the Securities and Exchange Commission’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Key does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

*****

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 13

Financial Highlights
(dollars in millions, except per share amounts)

	Three months ended
	9-30-10			6-30-10				9-30-09
Summary of operations
Net interest income (TE)	$	647		$	623			$	599
Noninterest income		486			492				382
Total revenue (TE)		1,133			1,115				981
Provision for loan losses		94			228				733
Noninterest expense		736			769				901
Income (loss) from continuing operations attributable to Key		204			97				(381	)
Income (loss) from discontinued operations, net of taxes (b)		15			(27	)			(16	)
Net income (loss) attributable to Key		219			70				(397	)
Income (loss) from continuing operations attributable to Key common shareholders	$	163		$	56			$	(422	)
Income (loss) from discontinued operations, net of taxes (b)		15			(27	)			(16	)
Net income (loss) attributable to Key common shareholders		178			29				(438	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.19		$	.06			$	(.50	)
Income (loss) from discontinued operations, net of taxes (b)		.02			(.03	)			(.02	)
Net income (loss) attributable to Key common shareholders		.20			.03				(.52	)
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.19			.06				(.50	)
Income (loss) from discontinued operations, net of taxes — assuming dilution (b)		.02			(.03	)			(.02	)
Net income (loss) attributable to Key common shareholders — assuming dilution		.20			.03				(.52	)
Cash dividends paid		.01			.01				.01
Book value at period end		9.54			9.19				9.39
Tangible book value at period end		8.46			8.10				8.29
Market price at period end		7.96			7.69				6.50
Performance ratios
From continuing operations:
Return on average total assets		.93	%		.44		%		(1.62	)	%
Return on average common equity		7.82			2.84				(20.30	)
Net interest margin (TE)		3.35			3.17				2.80
From consolidated operations:
Return on average total assets		.93	%		.30		%		(1.62	)	%
Return on average common equity		8.54			1.47				(21.07	)
Net interest margin (TE)		3.26			3.12				2.79
Loan to deposit		91.80			93.43				100.90
Capital ratios at period end
Key shareholders’ equity to assets		11.84	%		11.49		%		11.31		%
Tangible Key shareholders’ equity to tangible assets		10.93			10.58				10.41
Tangible common equity to tangible assets (a)		8.00			7.65				7.58
Tier 1 common equity (a), (c)		8.59			8.07				7.64
Tier 1 risk-based capital (c)		14.26			13.62				12.61
Total risk-based capital (c)		18.18			17.80				16.65
Leverage (c)		12.44			12.09				12.07
Asset quality — from continuing operations
Net loan charge-offs	$	357		$	435			$	587
Net loan charge-offs to average loans		2.69	%		3.18		%		3.59		%
Allowance for loan losses	$	1,957		$	2,219			$	2,485
Allowance for credit losses		2,056			2,328				2,579
Allowance for loan losses to period-end loans		3.81	%		4.16		%		4.00		%
Allowance for credit losses to period-end loans		4.00			4.36				4.15
Allowance for loan losses to nonperforming loans		142.64			130.30				108.52
Allowance for credit losses to nonperforming loans		149.85			136.70				112.62
Nonperforming loans at period end	$	1,372		$	1,703			$	2,290
Nonperforming assets at period end		1,801			2,086				2,799
Nonperforming loans to period-end portfolio loans		2.67	%		3.19		%		3.68		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		3.48			3.88				4.46
Trust and brokerage assets
Assets under management	$	59,718		$	58,862			$	66,145
Nonmanaged and brokerage assets		26,913			27,189				25,883
Other data
Average full-time equivalent employees		15,584			15,665				16,436
Branches		1,029			1,019				1,003
Taxable-equivalent adjustment	$	7		$	6			$	7

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 14

Financial Highlights (continued)
(dollars in millions, except per share amounts)

	Nine months ended
	9-30-10				9-30-09
Summary of operations
Net interest income (TE)	$	1,902			$	1,769
Noninterest income		1,428				1,566
Total revenue (TE)		3,330				3,335
Provision for loan losses		735				2,403
Noninterest expense		2,290				2,683
Income (loss) from continuing operations attributable to Key		244				(1,070	)
Income (loss) from discontinued operations, net of taxes (b)		(10	)			(41	)
Net income (loss) attributable to Key		234				(1,111	)
Income (loss) from continuing operations attributable to Key common shareholders	$	121			$	(1,323	)
Income (loss) from discontinued operations, net of taxes (b)		(10	)			(41	)
Net income (loss) attributable to Key common shareholders		111				(1,364	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.14			$	(2.07	)
Income (loss) from discontinued operations, net of taxes (b)		(.01	)			(.06	)
Net income (loss) attributable to Key common shareholders		.13				(2.14	)
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.14				(2.07	)
Income (loss) from discontinued operations, net of taxes — assuming dilution (b)		(.01	)			(.06	)
Net income (loss) attributable to Key common shareholders — assuming dilution		.13				(2.14	)
Cash dividends paid		.03				.0825
Performance ratios
From continuing operations:
Return on average total assets		.37		%		(1.49	)	%
Return on average common equity		2.00				(21.31	)
Net interest margin (TE)		3.24				2.77
From consolidated operations:
Return on average total assets		.33		%		(1.48	)	%
Return on average common equity		1.84				(22.03	)
Net interest margin (TE)		3.15				2.74
Asset quality — from continuing operations
Net loan charge-offs	$	1,314			$	1,549
Net loan charge-offs to average loans		3.19		%		3.03		%
Other data
Average full-time equivalent employees		15,673				16,943
Taxable-equivalent adjustment	$	20			$	19

(a)	The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “Tier 1 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)	In September 2009, management made the decision to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank National Association. In April 2009, management made the decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of these decisions, Key has accounted for these businesses as discontinued operations.
(c)	9-30-10 ratio is estimated.

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

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 15

GAAP to Non-GAAP Reconciliations
(dollars in millions, except per share amounts)

The table below presents the computations of certain financial measures related to “tangible common equity” and “Tier 1 common equity.” The tangible common equity ratio has become a focus of some investors, and management believes that this ratio may assist investors in analyzing Key’s capital position absent the effects of intangible assets and preferred stock. Traditionally, the banking regulators have assessed bank and bank holding company capital adequacy based on both the amount and composition of capital, the calculation of which is prescribed in federal banking regulations. As a result of the Supervisory Capital Assessment Program, the Federal Reserve has focused its assessment of capital adequacy on a component of Tier 1 capital, known as Tier 1 common equity. Because the Federal Reserve has long indicated that voting common shareholders’ equity (essentially Tier 1 capital less preferred stock, qualifying capital securities and noncontrolling interests in subsidiaries) generally should be the dominant element in Tier 1 capital, such a focus is consistent with existing capital adequacy guidelines and does not imply a new or ongoing capital standard.

Because the Tier 1 common equity is neither formally defined by GAAP nor prescribed in amount by federal banking regulations, this measure is considered to be a non-GAAP financial measure. Since analysts and banking regulators may assess Key’s capital adequacy using tangible common equity and Tier 1 common equity, management believes it is useful to provide investors the ability to assess Key’s capital adequacy on these same bases. The table also reconciles the GAAP performance measures to the corresponding non-GAAP measures.

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 provision for loan losses facilitates the analysis of results by presenting them on a more comparable basis.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components and to ensure that Key’s performance is properly reflected to facilitate period-to-period comparisons. Although these non-GAAP financial measures are frequently used by investors in the evaluation of 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
	9-30-10			6-30-10			9-30-09
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP)	$	11,134		$	10,820		$	10,970
Less:     Intangible assets		956			959			971
Preferred Stock, Series B		2,442			2,438			2,426
Preferred Stock, Series A		291			291			291
Tangible common equity (non-GAAP)	$	7,445		$	7,132		$	7,282
Total assets (GAAP)	$	94,043		$	94,167		$	96,989
Less:     Intangible assets		956			959			971
Tangible assets (non-GAAP)	$	93,087		$	93,208		$	96,018
Tangible common equity to tangible assets ratio (non-GAAP)		8.00	%		7.65	%		7.58	%
Tier 1 common equity at period end
Key shareholders’ equity (GAAP)	$	11,134		$	10,820		$	10,970
Qualifying capital securities		1,791			1,791			1,790
Less:     Goodwill		917			917			917
Accumulated other comprehensive income (loss) (a)		247			126			11
Other assets (b)		382			469			406
Total Tier 1 capital (regulatory)		11,379			11,099			11,426
Less:     Qualifying capital securities		1,791			1,791			1,790
Preferred Stock, Series B		2,442			2,438			2,426
Preferred Stock, Series A		291			291			291
Total Tier 1 common equity (non-GAAP)	$	6,855		$	6,579		$	6,919
Net risk-weighted assets (regulatory) (b), (c)	$	79,797		$	81,498		$	90,587
Tier 1 common equity ratio (non-GAAP) (c)		8.59	%		8.07	%		7.64	%
Pre-provision net revenue
Net interest income (GAAP)	$	640		$	617		$	592
Plus:     Taxable-equivalent adjustment		7			6			7
Noninterest income		486			492			382
Less:     Noninterest expense		736			769			901
Pre-provision net revenue from continuing operations (non-GAAP)	$	397		$	346		$	80

(a)	Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities), net gains or losses on cash flow hedges, and amounts resulting from the December 31, 2006, adoption and subsequent application of the applicable accounting guidance for defined benefit and other postretirement plans.
(b)	Other assets deducted from Tier 1 capital and net risk-weighted assets consist of disallowed deferred tax assets of $272 million at September 30, 2010, $354 million at June 30, 2010 and $285 million at September 30, 2009, disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments.
(c)	9-30-10 amount is estimated.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 16

Consolidated Balance Sheets
(dollars in millions)

	9-30-10			6-30-10			9-30-09
Assets
Loans	$	51,354		$	53,334		$	62,193
Loans held for sale		637			699			703
Securities available for sale		21,241			19,773			15,413
Held-to-maturity securities		18			19			24
Trading account assets		1,155			1,014			1,406
Short-term investments		1,871			1,984			2,986
Other investments		1,405			1,415			1,448
Total earning assets		77,681			78,238			84,173
Allowance for loan losses		(1,957	)		(2,219	)		(2,485	)
Cash and due from banks		823			591			725
Premises and equipment		888			872			863
Operating lease assets		563			589			775
Goodwill		917			917			917
Other intangible assets		39			42			54
Corporate-owned life insurance		3,145			3,109			3,041
Derivative assets		1,258			1,153			1,285
Accrued income and other assets		3,936			4,061			3,463
Discontinued assets		6,750			6,814			4,178
Total assets	$	94,043		$	94,167		$	96,989
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	26,350		$	25,526		$	24,635
Savings deposits		1,856			1,883			1,783
Certificates of deposit ($100,000 or more)		6,850			8,476			12,216
Other time deposits		9,014			10,430			14,211
Total interest-bearing deposits		44,070			46,315			52,845
Noninterest-bearing deposits		16,275			15,226			13,631
Deposits in foreign office — interest-bearing		1,073			834			783
Total deposits		61,418			62,375			67,259
Federal funds purchased and securities sold under repurchase agreements		2,793			2,836			1,664
Bank notes and other short-term borrowings		685			819			471
Derivative liabilities		1,330			1,321			1,185
Accrued expense and other liabilities		1,862			2,154			2,236
Long-term debt		11,443			10,451			12,865
Discontinued liabilities		3,124			3,139			121
Total liabilities		82,655			83,095			85,801
Equity
Preferred stock, Series A		291			291			291
Preferred stock, Series B		2,442			2,438			2,426
Common shares		946			946			946
Common stock warrant		87			87			87
Capital surplus		3,710			3,701			3,726
Retained earnings		5,287			5,118			5,431
Treasury stock, at cost		(1,914	)		(1,914	)		(1,983	)
Accumulated other comprehensive income (loss)		285			153			46
Key shareholders’ equity		11,134			10,820			10,970
Noncontrolling interests		254			252			218
Total equity		11,388			11,072			11,188
Total liabilities and equity	$	94,043		$	94,167		$	96,989
Common shares outstanding (000)		880,328			880,515			878,559

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 17

Consolidated Statements of Income
(dollars in millions, except per share amounts)

	Three months ended									Nine months ended
	9-30-10			6-30-10			9-30-09			9-30-10			9-30-09
Interest income
Loans	$	649		$	677		$	786		$	2,036		$	2,445
Loans held for sale		4			5			7			13			23
Securities available for sale		170			154			121			474			310
Held-to-maturity securities		1			—			1			2			2
Trading account assets		8			10			9			29			35
Short-term investments		1			2			3			5			9
Other investments		11			13			13			38			38
Total interest income		844			861			940			2,597			2,862
Interest expense
Deposits		147			188			277			547			873
Federal funds purchased and securities sold under repurchase agreements		1			2			2			4			4
Bank notes and other short-term borrowings		4			4			3			11			13
Long-term debt		52			50			66			153			222
Total interest expense		204			244			348			715			1,112
Net interest income		640			617			592			1,882			1,750
Provision for loan losses		94			228			733			735			2,403
Net interest income (expense) after provision for loan losses		546			389			(141	)		1,147			(653	)
Noninterest income
Trust and investment services income		110			112			113			336			342
Service charges on deposit accounts		75			80			83			231			248
Operating lease income		41			43			55			131			175
Letter of credit and loan fees		61			42			46			143			128
Corporate-owned life insurance income		39			28			26			95			78
Net securities gains (losses) (a)		1			(2	)		1			2			112
Electronic banking fees		30			29			27			86			78
Gains on leased equipment		4			2			22			14			84
Insurance income		15			19			18			52			52
Net gains (losses) from loan sales		18			25			—			47			4
Net gains (losses) from principal investing		18			17			(6	)		72			(84	)
Investment banking and capital markets income (loss)		42			31			(26	)		82			5
Gain from sale/redemption of Visa Inc. shares		—			—			—			—			105
Gain (loss) related to exchange of common shares for capital securities		—			—			(17	)		—			78
Other income		32			66			40			137			161
Total noninterest income		486			492			382			1,428			1,566
Noninterest expense
Personnel		359			385			380			1,106			1,114
Net occupancy		70			64			63			200			192
Operating lease expense		40			35			46			114			145
Computer processing		46			47			48			140			143
Professional fees		41			41			41			120			121
FDIC assessment		27			33			40			97			140
OREO expense, net		4			22			51			58			72
Equipment		24			26			24			74			71
Marketing		21			16			19			50			50
Provision (credit) for losses on lending-related commitments		(10	)		(10	)		29			(22	)		40
Intangible assets impairment		—			—			45			—			241
Other expense		114			110			115			353			354
Total noninterest expense		736			769			901			2,290			2,683
Income (loss) from continuing operations before income taxes		296			112			(660	)		285			(1,770	)
Income taxes		85			11			(274	)		14			(688	)
Income (loss) from continuing operations		211			101			(386	)		271			(1,082	)
Income (loss) from discontinued operations, net of taxes		15			(27	)		(16	)		(10	)		(41	)
Net income (loss)		226			74			(402	)		261			(1,123	)
Less: Net income (loss) attributable to noncontrolling interests		7			4			(5	)		27			(12	)
Net income (loss) attributable to Key	$	219		$	70		$	(397	)	$	234		$	(1,111	)
Income (loss) from continuing operations attributable to Key common shareholders	$	163		$	56		$	(422	)	$	121		$	(1,323	)
Net income (loss) attributable to Key common shareholders		178			29			(438	)		111			(1,364	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.19		$	.06		$	(.50	)	$	.14		$	(2.07	)
Income (loss) from discontinued operations, net of taxes		.02			(.03	)		(.02	)		(.01	)		(.06	)
Net income (loss) attributable to Key common shareholders		.20			.03			(.52	)		.13			(2.14	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.19		$	.06		$	(.50	)	$	.14		$	(2.07	)
Income (loss) from discontinued operations, net of taxes		.02			(.03	)		(.02	)		(.01	)		(.06	)
Net income (loss) attributable to Key common shareholders		.20			.03			(.52	)		.13			(2.14	)
Cash dividends declared per common share	$	.01		$	.01		$	.01		$	.03		$	.0825
Weighted-average common shares outstanding (000)		874,433			874,664			839,906			874,495			637,805
Weighted-average common shares and potential common shares outstanding (000)		874,433			874,664			839,906			874,495			637,805

(a) For the three months ended September 30, 2010, Key did not have any impairment losses related to securities. For the three months ended June 30, 2010, Key had $4 million in impairment losses related to securities. Impairment losses totaled $4 million for the three months ended September 30, 2009, of which $2 million was recognized in equity as a component of accumulated other comprehensive income.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 18

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations

(dollars in millions)

	Third Quarter 2010										Second Quarter 2010										Third Quarter 2009
	Average										Average										Average
	Balance			Interest		(a)	Yield/Rate		(a)		Balance			Interest		(a)	Yield/Rate		(a)		Balance			Interest		(a)	Yield/Rate		(a)
Assets
Loans: (b), (c)
Commercial, financial and agricultural	$	16,948		$	193			4.52		%	$	17,725		$	209			4.74		%		22,098		$	255			4.59		%
Real estate — commercial mortgage		9,822			122			4.94				10,354			124			4.78				11,529			141			4.84
Real estate — construction		3,165			37			4.58				3,773			41			4.31				5,834			72			4.86
Commercial lease financing		6,587			87			5.25				6,759			90			5.33				8,073			88			4.35
Total commercial loans		36,522			439			4.77				38,611			464			4.81				47,534			556			4.64
Real estate — residential mortgage		1,843			26			5.59				1,829			25			5.60				1,748			25			5.88
Home equity:
Community Banking		9,709			102			4.19				9,837			103			4.21				10,192			111			4.32
Other		732			14			7.61				773			15			7.62				912			17			7.54
Total home equity loans		10,441			116			4.43				10,610			118			4.45				11,104			128			4.58
Consumer other — Community Banking		1,156			33			11.20				1,145			33			11.57				1,189			32			10.48
Marine		2,423			38			6.25				2,563			39			6.21				3,017			48			6.26
Other		181			4			7.95				195			4			7.80				238			4			7.95
Total consumer other		2,604			42			6.37				2,758			43			6.32				3,255			52			6.38
Total consumer loans		16,044			217			5.37				16,342			219			5.40				17,296			237			5.46
Total loans		52,566			656			4.95				54,953			683			4.99				64,830			793			4.86
Loans held for sale		501			4			3.48				516			5			3.50				665			7			4.26
Securities available for sale (b), (e)		20,276			170			3.43				17,285			154			3.63				12,154			121			4.00
Held-to-maturity securities (b)		19			1			11.05				22			—			11.46				25			1			9.64
Trading account assets		1,074			8			3.03				1,048			10			3.71				1,074			9			3.49
Short-term investments		1,594			1			.23				3,830			2			.23				5,243			3			.25
Other investments (e)		1,426			11			3.00				1,445			13			3.11				1,459			13			3.26
Total earning assets		77,456			851			4.39				79,099			867			4.40				85,450			947			4.40
Allowance for loan losses		(2,092	)									(2,356	)									(2,462	)
Accrued income and other assets		11,363										11,133										10,142
Discontinued assets — education lending business		6,762										6,389										4,091
Total assets	$	93,489									$	94,265									$	97,221
Liabilities
NOW and money market deposit accounts	$	25,783			23			.35			$	25,270			24			.39			$	24,444			29			.49
Savings deposits		1,885			—			.06				1,883			1			.06				1,799			—			.07
Certificates of deposit ($100,000 or more) (f)		7,635			61			3.12				9,485			77			3.28				12,771			114			3.55
Other time deposits		9,648			63			2.59				11,309			85			3.01				14,749			133			3.57
Deposits in foreign office		958			—			.37				818			1			.36				665			1			.31
Total interest-bearing deposits		45,909			147			1.27				48,765			188			1.55				54,428			277			2.03
Federal funds purchased and securities sold under repurchase agreements		2,300			1			.31				1,841			2			.33				1,642			2			.30
Bank notes and other short-term borrowings		669			4			2.36				539			4			3.06				1,034			3			1.14
Long-term debt (f)		7,308			52			3.08				7,031			50			3.09				9,183			66			3.07
Total interest-bearing liabilities		56,186			204			1.46				58,176			244			1.70				66,287			348			2.10
Noninterest-bearing deposits		15,949										15,644										13,604
Accrued expense and other liabilities		3,344										3,151										2,055
Discontinued liabilities — education lending business (d)		6,762										6,389										4,091
Total liabilities		82,241										83,360										86,037
Equity
Key shareholders’ equity		10,999										10,646										10,961
Noncontrolling interests		249										259										223
Total equity		11,248										10,905										11,184
Total liabilities and equity	$	93,489									$	94,265									$	97,221
Interest rate spread (TE)								2.93		%								2.70		%								2.30		%
Net interest income (TE) and net interest margin (TE)					647			3.35		%					623			3.17		%					599			2.80		%
TE adjustment (b)					7										6										7
Net interest income, GAAP basis				$	640									$	617									$	592

(a)	Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (d) 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 35%.
(c)	For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)	Discontinued liabilities include the liabilities of the education lending business and the dollar amount of any additional liabilities assumed necessary to support the assets associated with this business.
(e)	Yield is calculated on the basis of amortized cost.
(f)	Rate calculation excludes basis adjustments related to fair value hedges.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations

(dollars in millions)

	Nine months ended September 30, 2010										Nine months ended September 30, 2009
	Average										Average
	Balance			Interest		(a)	Yield/Rate		(a)		Balance				Interest		(a)	Yield/ Rate		(a)
Assets
Loans: (b), (c)
Commercial, financial and agricultural	$	17,816		$	624			4.68		%	$	24,315			$	806			4.43		%
Real estate — commercial mortgage		10,200			374			4.90				11,464		(d)		425			4.95
Real estate — construction		3,820			123			4.29				6,530		(d)		232			4.75
Commercial lease financing		6,845			270			5.25				8,429				272			4.30
Total commercial loans		38,681			1,391			4.80				50,738				1,735			4.57
Real estate — residential mortgage		1,825			77			5.61				1,758				78			5.94
Home equity:
Community Banking		9,837			310			4.22				10,253				336			4.39
Other		773			44			7.59				973				55			7.50
Total home equity loans		10,610			354			4.46				11,226				391			4.66
Consumer other — Community Banking		1,154			102			11.80				1,207				95			10.48
Consumer other:
Marine		2,565			119			6.20				3,174				149			6.24
Other		195			12			7.84				256				15			7.96
Total consumer other		2,760			131			6.32				3,430				164			6.37
Total consumer loans		16,349			664			5.42				17,621				728			5.52
Total loans		55,030			2,055			4.99				68,359				2,463			4.81
Loans held for sale		470			13			3.75				662				23			4.69
Securities available for sale (b), (g)		17,972			475			3.58				9,561				311			4.40
Held-to-maturity securities (b)		21			2			10.17				25				2			9.74
Trading account assets		1,102			29			3.54				1,212				35			3.87
Short-term investments		2,739			5			.25				4,306				9			.30
Other investments (g)		1,456			38			3.15				1,482				38			3.08
Total earning assets		78,790			2,617			4.44				85,607				2,881			4.49
Allowance for loan losses		(2,348	)									(2,191	)
Accrued income and other assets		11,316										12,875
Discontinued assets — education lending business		6,678										4,316
	$	94,436									$	100,607
Liabilities
NOW and money market deposit accounts	$	25,262			70			.37			$	24,155				99			.55
Savings deposits		1,865			1			.06				1,783				1			.08
Certificates of deposit ($100,000 or more) (g)		9,209			226			3.28				12,928				359			3.72
Other time deposits		11,179			248			2.97				14,798				412			3.72
Deposits in foreign office		824			2			.34				832				2			.26
Total interest-bearing deposits		48,339			547			1.51				54,496				873			2.14
Federal funds purchased and securities sold under repurchase agreements		1,979			4			.32				1,605				4			.31
Bank notes and other short-term borrowings		567			11			2.59				2,408				13			.71
Long-term debt (g)		7,105			153			3.11				9,911				222			3.23
Total interest-bearing liabilities		57,990			715			1.67				68,420				1,112			2.20
Noninterest-bearing deposits		15,524										12,394
Accrued expense and other liabilities		3,187										4,759
Discontinued liabilities — education lending business (e)		6,678										4,316
		83,379										89,889
Equity
Key shareholders’ equity		10,798										10,507
Noncontrolling interests		259										211
Total equity		11,057										10,718
Total liabilities and equity	$	94,436									$	100,607
Interest rate spread (TE)								2.77		%									2.29		%
Net interest income (TE) and net interest margin (TE)					1,902			3.24		%						1,769			2.77		%
TE adjustment (b)					20											19
Net interest income, GAAP basis				$	1,882										$	1,750

(a)	Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (e) 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 35%.
(c)	For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)	In late March 2009, Key transferred $1.5 billion of loans from the construction portfolio to the commercial mortgage portfolio in accordance with regulatory guidelines pertaining to the classification of loans that have reached a completed status.
(e)	Discontinued liabilities include the liabilities of the education lending business and the dollar amount of any additional liabilities assumed necessary to support the assets associated with this business.
(f)	Yield is calculated on the basis of amortized cost.
(g)	Rate calculation excludes basis adjustments related to fair value hedges.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 20

Noninterest Income
(in millions)

	Three months ended									Nine months ended
	9-30-10			6-30-10			9-30-09			9-30-10			9-30-09
Trust and investment services income (a)	$	110		$	112		$	113		$	336		$	342
Service charges on deposit accounts		75			80			83			231			248
Operating lease income		41			43			55			131			175
Letter of credit and loan fees		61			42			46			143			128
Corporate-owned life insurance income		39			28			26			95			78
Net securities gains (losses)		1			(2	)		1			2			112
Electronic banking fees		30			29			27			86			78
Gains on leased equipment		4			2			22			14			84
Insurance income		15			19			18			52			52
Net gains (losses) from loan sales		18			25			—			47			4
Net gains (losses) from principal investing		18			17			(6	)		72			(84	)
Investment banking and capital markets income (loss) (a)		42			31			(26	)		82			5
Gain from sale/redemption of Visa Inc. shares		—			—			—			—			105
Gain (loss) related to exchange of common shares for capital securities		—			—			(17	)		—			78
Other income:
Gain from sale of Key’s claim associated with the Lehman Brothers’ Bankruptcy		—			—			—			—			32
Credit card fees		3			3			6			9			12
Miscellaneous income		29			63			34			128			117
Total other income		32			66			40			137			161
Total noninterest income	$	486		$	492		$	382		$	1,428		$	1,566
(a)   Additional detail provided in tables below.
Trust and Investment Services Income
(in millions)
	Three months ended									Nine months ended
	9-30-10			6-30-10			9-30-09			9-30-10			9-30-09
Brokerage commissions and fee income	$	33		$	35		$	37		$	102		$	120
Personal asset management and custody fees		37			37			35			111			104
Institutional asset management and custody fees		40			40			41			123			118
Total trust and investment services income	$	110		$	112		$	113		$	336		$	342
Investment Banking and Capital Markets Income (Loss)
(in millions)
	Three months ended									Nine months ended
	9-30-10			6-30-10			9-30-09			9-30-10			9-30-09
Investment banking income	$	38		$	25		$	22		$	79		$	54
Income (loss) from other investments		2			3			(23	)		6			(37	)
Dealer trading and derivatives income (loss)		(10	)		(8	)		(36	)		(34	)		(49	)
Foreign exchange income		12			11			11			31			37
Total investment banking and capital markets income (loss)	$	42		$	31		$	(26	)	$	82		$	5

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 21

Noninterest Expense
(dollars in millions)

	Three months ended								Nine months ended
	9-30-10			6-30-10			9-30-09		9-30-10			9-30-09
Personnel (a)	$	359		$	385		$	380	$	1,106		$	1,114
Net occupancy		70			64			63		200			192
Operating lease expense		40			35			46		114			145
Computer processing		46			47			48		140			143
Professional fees		41			41			41		120			121
FDIC assessment		27			33			40		97			140
OREO expense, net		4			22			51		58			72
Equipment		24			26			24		74			71
Marketing		21			16			19		50			50
Provision (credit) for losses on lending-related commitments		(10	)		(10	)		29		(22	)		40
Intangible assets impairment		—			—			45		—			241
Other expense:
Postage and delivery		9			8			9		24			25
Franchise and business taxes		5			6			8		18			26
Telecommunications		5			5			7		16			20
Provision for losses on LIHTC guaranteed funds		—			—			1		—			17
Miscellaneous expense		95			91			90		295			266
Total other expense		114			110			115		353			354
Total noninterest expense	$	736		$	769		$	901	$	2,290		$	2,683
Average full-time equivalent employees (b)		15,584			15,665			16,436		15,673			16,943
(a)   Additional detail provided in table below.
(b)   The number of average full-time equivalent employees has not been adjusted for discontinued operations.
Personnel Expense
(in millions)
	Three months ended								Nine months ended
	9-30-10			6-30-10			9-30-09		9-30-10			9-30-09
Salaries	$	230		$	229		$	228	$	681		$	676
Incentive compensation		69			65			58		181			146
Employee benefits		45			71			76		190			228
Stock-based compensation		12			15			12		41			36
Severance		3			5			6		13			28
Total personnel expense	$	359		$	385		$	380	$	1,106		$	1,114

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 22

Loan Composition
(dollars in millions)

							Percent change 9-30-10 vs.
	9-30-10		6-30-10		9-30-09		6-30-10				9-30-09
Commercial, financial and agricultural	$	16,451	$	17,113	$	20,600		(3.9	)	%		(20.1	)	%
Commercial real estate:
Commercial mortgage		9,673		9,971		11,169		(3.0	)			(13.4	)
Construction		2,731		3,430		5,473		(20.4	)			(50.1	)
Total commercial real estate loans		12,404		13,401		16,642		(7.4	)			(25.5	)
Commercial lease financing		6,583		6,620		7,787		(.6	)			(15.5	)
Total commercial loans		35,438		37,134		45,029		(4.6	)			(21.3	)
Real estate — residential mortgage		1,853		1,846		1,763		.4				5.1
Home equity:
Community Banking		9,655		9,775		10,154		(1.2	)			(4.9	)
Other		707		753		884		(6.1	)			(20.0	)
Total home equity loans		10,362		10,528		11,038		(1.6	)			(6.1	)
Consumer other — Community Banking		1,174		1,147		1,189		2.4				(1.3	)
Consumer other:
Marine		2,355		2,491		2,943		(5.5	)			(20.0	)
Other		172		188		231		(8.5	)			(25.5	)
Total consumer — indirect loans		2,527		2,679		3,174		(5.7	)			(20.4	)
Total consumer loans		15,916		16,200		17,164		(1.8	)			(7.3	)
Total loans (a)	$	51,354	$	53,334	$	62,193		(3.7	)	%		(17.4	)	%
Loans Held for Sale Composition
(dollars in millions)
							Percent change 9-30-10 vs.
	9-30-10		6-30-10		9-30-09		6-30-10				9-30-09
Commercial, financial and agricultural	$	128	$	255	$	128		(49.8	)	%		—
Real estate — commercial mortgage		327		235		302		39.1				8.3		%
Real estate — construction		77		112		133		(31.3	)			(42.1	)
Commercial lease financing		13		16		29		(18.8	)			(55.2	)
Real estate — residential mortgage		92		81		110		13.6				(16.4	)
Automobile		—		—		1		—				(100.0	)
Total loans held for sale (b),(c)	$	637	$	699	$	703		(8.9	)	%		(9.4	)	%

(a)	Excluded at September 30, 2010, June 30, 2010, and September 30, 2009, are loans in the amount of $6.6 billion, $6.6 billion and $3.6 billion, respectively, related to the discontinued operations of the education lending business.
(b)	Excluded at September 30, 2010, June 30, 2010, and September 30, 2009, are loans held for sale in the amount of $15 million, $92 million, and $341 million, respectively, related to the discontinued operations of the education lending business.
(c)	The beginning balance at June 30, 2010 of $699 million increased by new originations in the amount of $684 million and net transfers from held to maturity in the amount of $202 million, and decreased by loan sales of $835 million, transfers to OREO/valuation adjustments of $64 million and loan payments of $49 million, for an ending balance of $637 million at September 30, 2010.

N/M = Not Meaningful

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 23

Summary of Loan Loss Experience from Continuing Operations
(dollars in millions)

	Three months ended												Nine months ended
	9-30-10				6-30-10				9-30-09				9-30-10				9-30-09
Average loans outstanding	$	52,566			$	54,953			$	64,830			$	55,030			$	68,359
Allowance for loan losses at beginning of period	$	2,219			$	2,425			$	2,339			$	2,534			$	1,629
Loans charged off:
Commercial, financial and agricultural		170				152				180				461				606
Real estate — commercial mortgage		50				128				81				287				190
Real estate — construction		88				86				217				331				456
Total commercial real estate loans		138				214				298				618				646
Commercial lease financing		22				21				32				68				83
Total commercial loans		330				387				510				1,147				1,335
Real estate — residential mortgage		7				11				4				25				11
Home equity:
Community Banking		36				28				26				95				69
Other		14				17				20				49				54
Total home equity loans		50				45				46				144				123
Consumer other — Community Banking		15				15				19				48				50
Consumer other:
Marine		25				31				35				104				113
Other		3				3				5				11				14
Total consumer other		28				34				40				115				127
Total consumer loans		100				105				109				332				311
Total loans charged off		430				492				619				1,479				1,646
Recoveries:
Commercial, financial and agricultural		34				16				12				63				38
Real estate — commercial mortgage		4				2				—				9				1
Real estate — construction		12				11				1				23				3
Total commercial real estate loans		16				13				1				32				4
Commercial lease financing		6				7				5				17				16
Total commercial loans		56				36				18				112				58
Real estate — residential mortgage		1				1				—				2				—
Home equity:
Community Banking		1				3				1				5				3
Other		1				1				—				3				1
Total home equity loans		2				4				1				8				4
Consumer other — Community Banking		1				2				2				5				5
Consumer other:
Marine		13				12				10				35				27
Other		—				2				1				3				3
Total consumer other		13				14				11				38				30
Total consumer loans		17				21				14				53				39
Total recoveries		73				57				32				165				97
Net loan charge-offs		(357	)			(435	)			(587	)			(1,314	)			(1,549	)
Provision for loan losses		94				228				733				735				2,403
Foreign currency translation adjustment		1				1				—				2				2
Allowance for loan losses at end of period	$	1,957			$	2,219			$	2,485			$	1,957			$	2,485
Liability for credit losses on lending-related commitments at beginning of period	$	109			$	119			$	65			$	121			$	54
Provision (credit) for losses on lending-related commitments		(10	)			(10	)			29				(22	)			40
Liability for credit losses on lending-related commitments at end of period(a)	$	99			$	109			$	94			$	99			$	94
Total allowance for credit losses at end of period	$	2,056			$	2,328			$	2,579			$	2,056			$	2,579
Net loan charge-offs to average loans		2.69		%		3.18		%		3.59		%		3.19		%		3.03		%
Allowance for loan losses to period-end loans		3.81				4.16				4.00				3.81				4.00
Allowance for credit losses to period-end loans		4.00				4.36				4.15				4.00				4.15
Allowance for loan losses to nonperforming loans		142.64				130.30				108.52				142.64				108.52
Allowance for credit losses to nonperforming loans		149.85				136.70				112.62				149.85				112.62
Discontinued operations — education lending business:
Loans charged off	$	26			$	32			$	39			$	95			$	110
Recoveries		4				1				1				6				3
Net loan charge-offs	$	(22	)		$	(31	)		$	(38	)		$	(89	)		$	(107	)

(a) Included in “accrued expense and other liabilities” on the balance sheet.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 24

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(dollars in millions)

	9-30-10				6-30-10				3-31-10				12-31-09				9-30-09
Commercial, financial and agricultural	$	335			$	489			$	558			$	586			$	679
Real estate — commercial mortgage		362				404				579				614				566
Real estate — construction		333				473				607				641				702
Total commercial real estate loans		695				877				1,186				1,255				1,268
Commercial lease financing		84				83				99				113				131
Total commercial loans		1,114				1,449				1,843				1,954				2,078
Real estate — residential mortgage		90				77				72				73				68
Home equity:
Community Banking		106				112				111				107				103
Other		16				17				18				21				21
Total home equity loans		122				129				129				128				124
Consumer other — Community Banking		3				5				4				4				4
Consumer other:
Marine		41				41				16				26				15
Other		2				2				1				2				1
Total consumer other		43				43				17				28				16
Total consumer loans		258				254				222				233				212
Total nonperforming loans		1,372				1,703				2,065				2,187				2,290
Nonperforming loans held for sale		230				221				195				116				304
OREO		221				200				175				191				187
Allowance for OREO losses		(58	)			(64	)			(45	)			(23	)			(40	)
OREO, net of allowance		163				136				130				168				147
Other nonperforming assets		36				26				38				39				58
Total nonperforming assets	$	1,801			$	2,086			$	2,428			$	2,510			$	2,799
Accruing loans past due 90 days or more	$	152			$	240			$	434			$	331			$	375
Accruing loans past due 30 through 89 days		662				610				639				933				1,071
Restructured loans included in nonperforming loans (a)		228				213				226				364				65
Nonperforming assets from discontinued operations — education lending business		38				40				43				14				12
Nonperforming loans to period-end portfolio loans		2.67		%		3.19		%		3.69		%		3.72		%		3.68		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		3.48				3.88				4.31				4.25				4.46

(a) Restructured loans (i.e. troubled debt restructurings) are those for which Key, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 25

Summary of Changes in Nonperforming Loans From Continuing Operations

(in millions)

	3Q10			2Q10			1Q10			4Q09			3Q09
Balance at beginning of period	$	1,703		$	2,065		$	2,187		$	2,290		$	2,185
Loans placed on nonaccrual status		691			682			746			1,141			1,160
Charge-offs		(430	)		(492	)		(557	)		(750	)		(619	)
Loans sold		(92	)		(136	)		(15	)		(70	)		(4	)
Payments		(200	)		(185	)		(102	)		(237	)		(294	)
Transfers to OREO		(39	)		(66	)		(20	)		(98	)		(91	)
Transfers to nonperforming loans held for sale		(163	)		(82	)		(59	)		(23	)		(5	)
Transfers to other nonperforming assets		(7	)		(36	)		(3	)		(4	)		(29	)
Loans returned to accrual status		(91	)		(47	)		(112	)		(62	)		(13	)
Balance at end of period	$	1,372		$	1,703		$	2,065		$	2,187		$	2,290
Summary of Changes in Nonperforming Loans Held For Sale From Continuing Operations
(in millions)
	3Q10			2Q10			1Q10			4Q09			3Q09
Balance at beginning of period	$	221		$	195		$	116		$	304		$	145
Transfers in		162			86			129			71			216
Net advances / (payments)		(35	)		1			—			3			(3	)
Loans sold		(50	)		(53	)		(38	)		(228	)		(45	)
Transfers to OREO		(58	)		(6	)		(6	)		—			—
Valuation adjustments		(6	)		(2	)		(6	)		(18	)		(7	)
Loans returned to accrual status / other		(4	)		—			—			(16	)		(2	)
Balance at end of period	$	230		$	221		$	195		$	116		$	304
Summary of Changes in Other Real Estate Owned, Net of Allowance, From Continuing Operations
(in millions)
	3Q10			2Q10			1Q10			4Q09			3Q09
Balance at beginning of period	$	136		$	130		$	168		$	147		$	171
Properties acquired — nonperforming loans		97			72			26			98			91
Valuation adjustments		(7	)		(24	)		(28	)		(12	)		(36	)
Properties sold		(63	)		(42	)		(36	)		(65	)		(79	)
Balance at end of period	$	163		$	136		$	130		$	168		$	147

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 26

Line of Business Results

(dollars in millions)

Community Banking

																				Percent change 3Q10 vs.
	3Q10				2Q10			1Q10				4Q09				3Q09				2Q10				3Q09
Summary of operations
Total revenue (TE)	$	601			$	608		$	599			$	627			$	630				(1.2	)	%		(4.6	)	%
Provision for loan losses		75				121			142				230				160				(38.0	)			(53.1	)
Noninterest expense		458				451			465				489				488				1.6				(6.1	)
Net income (loss) attributable to Key		57				35			7				(40	)			—				62.9				N/M
Average loans and leases		26,779				27,218			27,769				28,321				29,126				(1.6	)			(8.1	)
Average deposits		48,703				50,421			51,459				52,640				53,068				(3.4	)			(8.2	)
Net loan charge-offs		129				148			116				148				103				(12.8	)			25.2
Net loan charge-offs to average loans		1.91		%		2.18	%		1.69		%		2.07		%		1.40		%		N/A				N/A
Nonperforming assets at period end	$	567				561			597				544				559				1.1				1.4
Return on average allocated equity		6.26		%		3.80	%		.76		%		(4.42	)	%		—		%		N/A				N/A
Average full-time equivalent employees		8,306				8,246			8,187				8,227				8,472				.7				(2.0	)
Supplementary information (lines of business)
Regional Banking
Total revenue (TE)	$	483			$	495		$	490			$	510			$	527				(2.4	)	%		(8.3	)	%
Provision for loan losses		105				57			115				139				93				84.2				12.9
Noninterest expense		415				408			420				429				430				1.7				(3.5	)
Net income (loss) attributable to Key		(9	)			31			(16	)			(19	)			14				N/M				N/M
Average loans and leases		18,079				18,405			18,753				19,076				19,347				(1.8	)			(6.6	)
Average deposits		43,348				45,234			46,197				47,569				48,551				(4.2	)			(10.7	)
Net loan charge-offs		89				82			96				82				78				8.5				14.1
Net loan charge-offs to average loans		1.95		%		1.79	%		2.08		%		1.71		%		1.60		%		N/A				N/A
Nonperforming assets at period end	$	350			$	339		$	327			$	319			$	289				3.2				21.1
Return on average allocated equity		(1.47	)	%		5.09	%		(2.66	)	%		(3.24	)	%		2.40		%		N/A				N/A
Average full-time equivalent employees		7,953				7,891			7,836				7,877				8,120				.8				(2.1	)
Commercial Banking
Total revenue (TE)	$	118			$	113		$	109			$	117			$	103				4.4		%		14.6		%
Provision for loan losses		(30	)			64			27				91				67				N/M				N/M
Noninterest expense		43				43			45				60				58				—				(25.9	)
Net income (loss) attributable to Key		66				4			23				(21	)			(14	)			N/M				N/M
Average loans and leases		8,700				8,813			9,016				9,245				9,779				(1.3	)			(11.0	)
Average deposits		5,355				5,187			5,262				5,071				4,517				3.2				18.6
Net loan charge-offs		40				66			20				66				25				(39.4	)			60.0
Net loan charge-offs to average loans		1.82		%		3.00	%		.90		%		2.83		%		1.01		%		N/A				N/A
Nonperforming assets at period end	$	217			$	222		$	270			$	225			$	270				(2.3	)			(19.6	)
Return on average allocated equity		22.04		%		1.28	%		7.30		%		(6.57	)	%		(4.24	)	%		N/A				N/A
Average full-time equivalent employees		353				355			351				350				352				(.6	)			.3

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 27

Line of Business Results (continued)

(dollars in millions)

National Banking

																					Percent change 3Q10 vs.
	3Q10				2Q10				1Q10				4Q09				3Q09				2Q10				3Q09
Summary of operations
Total revenue (TE)	$	430			$	409			$	376			$	340			$	381				5.1		%		12.9		%
Provision for loan losses		(25	)			99				161				382				439				N/M				N/M
Noninterest expense		249				259				268				300				325				(3.9	)			(23.4	)
Net income (loss) attributable to Key		130				34				(31	)			(213	)			(236	)			282.4				N/M
Average loans and leases		19,534				20,948				22,440				24,011				26,716				(6.8	)			(26.9	)
Average loans held for sale		380				381				240				431				368				(.3	)			3.3
Average deposits		11,779				12,474				12,416				13,257				13,305				(5.6	)			(11.5	)
Net loan charge-offs		122				173				251				411				357				(29.5	)			(65.8	)
Net loan charge-offs to average loans		2.48		%		3.31		%		4.54		%		6.79		%		5.30		%		N/A				N/A
Nonperforming assets at period end	$	886			$	1,089			$	1,285			$	1,326			$	1,510				(18.6	)			(41.3	)
Return on average allocated equity		16.65		%		4.02		%		(3.64	)	%		(22.83	)	%		(24.06	)	%		N/A				N/A
Average full-time equivalent employees		2,353				2,327				2,370				2,400				2,473				1.1				(4.9	)
Supplementary information (lines of business)
Real Estate Capital and Corporate Banking Services
Total revenue (TE)	$	175			$	176			$	144			$	92			$	135				(.6	)	%		29.6		%
Provision for loan losses		22				77				145				304				336				(71.4	)			(93.5	)
Noninterest expense		99				108				116				117				100				(8.3	)			(1.0	)
Net income (loss) attributable to Key		33				(5	)			(73	)			(206	)			(186	)			N/M				N/M
Average loans and leases		10,300				11,465				12,340				13,256				14,322				(10.2	)			(28.1	)
Average loans held for sale		202				194				115				228				201				4.1				.5
Average deposits		9,360				9,811				9,835				10,602				10,848				(4.6	)			(13.7	)
Net loan charge-offs		103				142				207				381				276				(27.5	)			(62.7	)
Net loan charge-offs to average loans		3.97		%		4.97		%		6.80		%		11.40		%		7.65		%		N/A				N/A
Nonperforming assets at period end	$	719			$	867			$	1,067			$	1,094			$	1,184				(17.1	)			(39.3	)
Return on average allocated equity		6.93		%		(.97	)	%		(14.25	)	%		(36.12	)	%		(30.95	)	%		N/A				N/A
Average full-time equivalent employees		1,039				1,052				1,078				1,093				1,110				(1.2	)			(6.4	)
Equipment Finance
Total revenue (TE)	$	63			$	61			$	61			$	66			$	59				3.3		%		6.8		%
Provision for loan losses		(12	)			10				4				65				75				N/M				N/M
Noninterest expense		53				48				45				57				85				10.4				(37.6	)
Net income (loss) attributable to Key		14				2				8				(35	)			(63	)			600.0				N/M
Average loans and leases		4,515				4,478				4,574				4,610				5,010				.8				(9.9	)
Average loans held for sale		2				16				1				—				20				(87.5	)			(90.0	)
Average deposits		5				5				6				7				6				—				(16.7	)
Net loan charge-offs		25				18				18				21				30				38.9				(16.7	)
Net loan charge-offs to average loans		2.20		%		1.61		%		1.60		%		1.81		%		2.38		%		N/A				N/A
Nonperforming assets at period end	$	86			$	106			$	111			$	122			$	118				(18.9	)			(27.1	)
Return on average allocated equity		16.73		%		2.25		%		8.67		%		(37.43	)	%		(64.25	)	%		N/A				N/A
Average full-time equivalent employees		536				549				563				586				619				(2.4	)			(13.4	)
Institutional and Capital Markets
Total revenue (TE)	$	192			$	172			$	171			$	182			$	187				11.6		%		2.7		%
Provision for loan losses		(35	)			12				12				13				28				N/M				N/M
Noninterest expense		97				103				107				126				140				(5.8	)			(30.7	)
Net income (loss) attributable to Key		83				37				34				28				13				124.3				538.5
Average loans and leases		4,719				5,005				5,526				6,145				7,384				(5.7	)			(36.1	)
Average loans held for sale		176				171				124				203				147				2.9				19.7
Average deposits		2,414				2,658				2,575				2,648				2,451				(9.2	)			(1.5	)
Net loan charge-offs		(6	)			13				26				9				51				N/M				N/M
Net loan charge-offs to average loans		(.50	)	%		1.04		%		1.91		%		.58		%		2.74		%		N/A				N/A
Nonperforming assets at period end	$	81			$	116			$	107			$	110			$	208				(30.2	)			(61.1	)
Return on average allocated equity		37.63		%		15.22		%		13.76		%		10.41		%		4.61		%		N/A				N/A
Average full-time equivalent employees		778				726				729				721				744				7.2				4.6

TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful

EX-99.2

Third Quarter 2010 Review October 22, 2010 Speakers: Henry Meyer Jeff Weeden Exhibit 99.2

2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key's financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management's current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Key's control. Key's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Key's actual results to differ materially from those described in the forward-looking statements can be found in Key's Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Reports on Form 10-Q for the periods ended March 31, 2010, and June 30, 2010, which have been filed with the Securities and Exchange Commission and are available on Key's website (www.key.com) and on the Securities and Exchange Commission's website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management's views as of any subsequent date. Key does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD-LOOKING STATEMENT DISCLOSURE

3 Profitable in the third quarter and year-to-date 2010 Credit quality continues to improve Capital and reserves remain strong Investing in core relationship businesses 3Q10 Strategic Update

4 Financial Summary - Third Quarter 2010 Capital (b) Asset Quality Financial Performance Metrics 3Q10 3Q10 TE = Taxable equivalent, EOP = End of Period (a) From continuing operations unless otherwise noted. (b) From consolidated operations. (c) 9-30-10 ratios are estimated. (a) $.19 3.35% .93 8.59% 14.26 18.18 8.00 3.81% 4.00 2.69 2.67 3.48

5 5 (a) Continuing operations, unless otherwise noted. (b) Ending balances; loans & loans HFS (excluding securitized loans) to deposits (excluding foreign branch). (c) Consolidated operations. Key's Targets for Success (a)

6 6 Average Loans and Deposits 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Commercial & Industrial 23.7 21.502 19.347 18.421 17.418 16.705 CRE - Comml Mtg 11.9 10.946 10.358 10.087 10.108 9.634 CRE - Construction 5.5 5.834 5.246 4.537 3.773 3.165 Leasing 4.6 4.505 4.484 4.41 4.2 4.226 Home Equity 10.3 10.192 10.101 9.967 9.838 9.711 Other Consumer 2.9 2.932 2.965 2.964 2.973 2.997 Exit Portfolios 9.8 8.92 8.033 7.243 6.7 6.129 Total Loans 68.7 64.83 60.533 57.628 54.953 52.566 Average Deposits Home equity Leasing CRE - construction CF&A CRE - Mortgage Average Loans $ in billions Other consumer 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Foreign Deposits DDA 12.4 13.604 14.655 14.941 15.644 15.949 NOW/Money Market 24.1 24.444 24.91 24.722 25.27 25.783 Savings 1.8 1.799 1.801 1.828 1.883 1.885 CD's < $100K 14.9 14.749 13.753 12.611 11.309 9.648 CD's > $100K 13.5 12.771 11.675 10.538 9.485 7.635 Total 66.8 67.367 66.794 64.64 63.591 60.9 CDs > $100K CDs < $100K Savings DDA NOW/MMDA $ in billions (a) Ending balances; loans & loans held for sale (excluding securitized loans) to deposits (excluding foreign branch). Exit portfolios Loan to Deposit Ratio (a) 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Loans / Deposits 1.01 0.95 0.91 0.88 0.88 0.862 Discontinued 0.06 0.06 0.07 0.05 0.05 0.056 Total Loans 1.07 1.01 0.98 0.93 0.93 0.918 Continuing operations Discontinued operations

7 7 Asset Quality Nonperforming Loans Net Charge-offs & Provision for Loan Losses $ in millions 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Nonperforming Loans 2185 2290 2187 2065 1703 1372 NPLs to Period-End Loans 0.0325 0.0368 0.0372 0.0369 0.0319 0.0267 Nonperforming loans NPLs to period-end loans $ in millions Allowance for Loan Losses Allowance to Nonperforming Loans 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Allowance for Loan Losses 2339 2485 2534 2425 2219 1957 ALL to period end loans 0.0348 0.04 0.0431 0.0434 0.0416 0.0381 Allowance for loan losses $ in millions ALLL to period-end loans 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 ALLL to nonperforming loans 1.07 1.0852 1.1587 1.1743 1.303 1.4264 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Net Loan Charge-offs 502 587 708 522 435 357 NCO to Avg Loans 0.0293 0.0359 0.0464 0.0367 0.0318 0.0269 Provision for Loan Losses 823 733 756 413 228 94 Net charge-offs Provision for loan losses NCOs to average loans

8 8 Net Interest Margin (TE) TE = Taxable equivalent (a) The information shown in this table has been adjusted to exclude the impact of certain leveraged lease terminations, which reduced taxable equivalent net interest income by $14 million in 3Q09. 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Net Interest Income 689 692 716 722 726 726 744 700 706 712 750 738 738 684 664 595 591 613 637 632 623 647 NII Adjustments 34 838 18 0 15 738.4 738 684 642 595 591 613 637 Net Interest Spread 0.0319 0.0309 0.0306 0.0305 0.0296 0.0285 0.0285 0.027 0.0262 0.0252 0.0275 0.0281 0.0288 0.027 0.0245 0.0238 0.023 0.0237 0.0253 0.0271 0.027 0.0293 Net Interest Margin 0.0367 0.0363 0.0368 0.0372 0.0368 0.0361 0.0366 0.035 0.0346 0.034 0.0348 0.0329 0.0332 0.0317 0.0287 0.0279 0.0277 0.0287 0.0304 0.0319 0.0317 0.0335 $ in millions Continuing Operations Net interest margin Net interest spread Net interest income (a) Highlights Net interest margin is up 18 bps compared to 2Q10 and up 48 bps from 3Q09. Benefited from improved funding mix as maturing CDs re-price, move into lower-cost transaction deposits or exited. During the 3rd quarter, approximately $2.8 billion in CDs originated prior to 2009 matured at an average cost of 4.51%. During the 4th quarter, approximately $800 million in CDs originated prior to 2009 are maturing at an average cost of 4.19%. Remaining higher costing CDs originated prior to 2009 mature as follows: 2011 $1.5 billion, average cost 4.75% 2012 2.4 billion, average cost 4.86% >2012 1.9 billion, average cost 5.04% Net Interest Margin Trend Average CD Balances and Cost $ in billions 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Total CDs 28.5 27.52 25.4 23.149 20.8 17.3 Rate on CDs 0.0372 0.0356 0.0344 0.033 0.0313 0.0282 Average rate on CDs Total average CDs

9 9 Noninterest Income Areas of Focus Targeting specific high opportunity client segments in National Banking - using the balance sheet strategically Letter of credit and loan fees increased $19 million compared to prior quarter Leverage investment banking and capital markets opportunities Investment banking and capital markets income increased by $11 million compared to prior quarter Continue to build out Private Banking platform and Key Investment Services Improve alignment of products and services across organization - business decisions based on highest value to Key Noninterest Income and % of Total Revenue 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Noninterest Income 706 382 469 450 492 486 Noninterest Income / Total Revenue 0.55 0.3894 0.424 0.4158 0.4413 0.4289 Noninterest income Noninterest Income to total revenue $ in millions

10 10 Noninterest Expense Noninterest Expense and Average FTEs 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Noninterest Expense 855 901 871 785 769 736 Average FTEs 16937 16436 15973 15772 15665 15584 Noninterest expense Average FTEs $ in millions Highlights Implemented $224 million of Keyvolution cost savings through 3Q10 Estimate $300 - $375 million in annual run rate savings by the end of 2012 once Keyvolution is complete OREO costs declined $18 million from 2Q10 and down $47 million from 3Q09 Personnel costs declined $26 million from 2Q10 and down $21 million from 3Q09

11 11 Pre-provision Net Revenue and ROAA (a) Pre-provision Net Revenue (b) Return on Average Assets 3Q09 4Q09 1Q10 2Q10 3Q10 ROAA -0.0162 -0.0094 -0.0026 0.0044 0.0093 3Q09 4Q09 1Q10 2Q10 3Q10 PPNR 142 235 297 346 397 $ in millions (c) (a) From continuing operations (b) Net interest income plus taxable-equivalent adjustment and noninterest income less noninterest expense (c) Adjusted to exclude the impact of a $45 million intangible asset impairment and a $17 million loss related to the exchange of common shares for capital securities. $ in millions

12 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Common 0.0583 0.056 0.0558 0.0562 0.0562 0.0736 0.0764 0.075 0.0751 0.0807 0.0859 Capital Raise Convertible 0.0059 0.006 0.0062 0.0065 0.003 0.0032 0.0034 0.0035 0.0036 0.0036 TARP 0.0226 0.0239 0.0252 0.0268 0.0282 0.0291 0.0299 0.0306 Qualifying Securities 0.025 0.0234 0.0237 0.0242 0.0256 0.0239 0.0197 0.0209 0.0215 0.022 0.0225 Tier 1 0.0833 0.0853 0.0855 0.1092 0.1122 0.1257 0.1261 0.1275 0.1292 0.1362 0.1426 Tarp Tier 1 - Peer Median 0.0764 0.0822 0.0835 0.106 0.1092 0.1109 0.116 0.1155 0.1141 0.1185 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Tangible Common Equity 0.0658 0.0685 0.0632 0.0629 0.0595 0.0606 0.0735 0.0758 0.0756 0.0737 0.0765 0.08 Capital Raise Total Tangible Common Equity - Peer Median 0.0559 0.0568 0.0575 0.0574 0.0487 0.0518 0.0632 0.0619 0.0608 0.0645 0.0681 0 Peer Median 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Common 0.0583 0.056 0.0558 0.0562 0.0562 0.0736 0.0764 0.075 0.0751 0.0807 0.0859 Convertible 0.0059 0.006 0.0062 0.0065 0.003 0.0032 0.0034 0.0035 0.0036 0.0036 TARP 0.0226 0.0239 0.0252 0.0268 0.0282 0.0291 0.0299 0.0306 Qualifying capital securities 0.025 0.0235 0.0237 0.0242 0.0256 0.0239 0.0197 0.0209 0.0215 0.022 0.0225 Allowance for Loan losses 0.0122 0.0126 0.0126 0.0126 0.0127 0.0129 0.0129 0.013 0.0129 0.0128 0.0127 Qualifying LTD 0.0279 0.0261 0.0259 0.0264 0.0269 0.0281 0.0275 0.029 0.0286 0.029 0.0265 Total RBC 0.1234 0.1241 0.124 0.1482 0.1518 0.1667 0.1665 0.1695 0.1707 0.178 0.1818 Total RBC - Peer Median 0.1136 0.1197 0.1215 0.1448 0.143 0.1508 0.1575 0.154 0.1468 0.1511 Qualifying common Convertible preferred Capital purchase program Capital securities Qualifying ALLL/unfunded comm. Qualifying LTD 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Common 0.0525 0.056 0.0558 0.0562 0.0562 0.0736 0.0764 0.075 0.0751 0.0807 0.0859 Capital Raise 0 0 Convertible 0.0066 0.0066 0.0063 0.0068 0.0057 TARP 0.0234 0.0249 0.025 Tangible Equity to Tangible Assets - Key 0.0685 0.056 0.0558 0.0562 0.0562 0.0736 Tarp Tangible Equity to Tangible Assets - Peer Median 0.0568 0.059 0.059 0.0774 0.0795 Tier 1 - Peer Median 0.0287 0.03 0.0327 0.0465 0.0578 0.0714 0.0725 0.071 0.0748 0.0778 Tier 1 Common Equity (a) Tangible Common Equity to Tangible Assets Total Risk-Based Capital (a) Tier 1 Risk-Based Capital (a) (a) 9-30-10 ratios are estimated. Capital Ratios

13 Appendix

14 Pre-provision Net Revenue Trend (a) TE = taxable equivalent (a) Adjusted to exclude the impact of a $45 million intangible asset impairment and a $17 million loss related to the exchange of common shares for capital securities. (b) Net interest income plus taxable-equivalent adjustment and noninterest income less noninterest expense $ in millions Continuing Operations Pre-provision net revenue (b) Net interest income (TE) Noninterest income Noninterest expense 3Q09 4Q09 1Q10 2Q10 3Q10

15 6/30 loans Exit port. runoff / paydown Net charge-offs Net decrease 9/30 loans 1 53.334 52.928 52.571 51.354 51.354 2 0.406 0 0 3 0.357 1.217 CF&A and Leasing Total Loans Total Consumer Total Commercial Real Estate 3Q10 Loan Activity $53.3 $51.4 $.4 $ in billions $.4 $1.1 6/30 loans Exit port. runoff / paydown Net charge-offs Net decrease 9/30 loans 1 23.733 23.538 23.386 23.034 23.034 2 0.195 0 0 3 0.152 0.352 $23.7 $23.0 $.2 $.2 $.3 6/30 loans Exit port. runoff / paydown Net charge-offs Net decrease 9/30 loans 1 13.4 13.359 13.237 12.4 12.4 2 0.041 0 0 3 0.122 0.837 $13.4 $12.4 $.1 $.0 $.8 6/30 loans Exit port. runoff / paydown Net charge-offs Net decrease 9/30 loans 1 16.2 16.03 15.947 15.916 15.916 2 0.17 0 0 3 0.083 0.031 $16.2 $15.9 $.1 $.2 $.0 (a) (a) (a) (a) Numbers may not cross foot due to rounding (a) Exit portfolio runoff / paydown excludes net charge-offs.

16 Investment Portfolio Highlights 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Avg. Securities Available for Sale 8.36 12.154 15.937 16.312 17.285 20.276 Average Yield 0.0437 0.04 0.0382 0.0373 0.0363 0.0343 Average AFS securities Growth in Available for Sale Securities Average yield $ in billions Until loan demand returns, excess liquidity will go into the investment portfolio Agency or GSE backed: GNMA, Fannie & Freddie New issuance CMOs, sequentials and PACs New purchase average duration 2.5 to 3.5 years Average portfolio maturity at September 30, 2010: 2.4 years Unrealized net gain of $791 million on available- for-sale securities portfolio at 9/30/10

17 N/M = Not Meaningful (a) Net charge-off amounts are annualized in calculation. (b) 9-30-10 allowance by portfolio is estimated. $ in millions Credit Quality by Portfolio

18 $ in millions Third Quarter 2010 Second Quarter 2010 Commercial Portfolio - Continuing Ops. Average Loans, NCOs and NPLs

19 $ in millions (a) Nonresidential land and development loans. N/M = Not Meaningful Commercial Real Estate Loans September 30, 2010 (a)

20 $ in millions (a) Nonresidential land and development loans. (a) Commercial Real Estate

21 $ in millions, except average loan size (a) Average LTVs are at origination. Current average LTVs for Community Banking total home equity loans and lines is approximately 75%, which compares to 76% at the end of the second quarter of 2010. Home Equity Loans September 30, 2010 (a)

22 $ in millions (a) Includes the business aviation, commercial vehicle, office products, construction and industrial leases, Canadian lease financing portfolios and all remaining balances related to lease in, lease out; sale in, sale out; service contract leases; and qualified technological equipment leases. (b) Includes loans in Key's education loan securitization trusts consolidated upon the adoption of new consolidation accounting guidance on January 1, 2010. Exit Loan Portfolio

23 Continuing Operations Net Charge-offs to Average Loans

24 Continuing Operations Nonperforming Loans to Period-end Loans

EX-99.3

Exhibit 99.3

Consolidated Balance Sheets

(dollars in millions)

	9-30-10			6-30-10			9-30-09
Assets
Loans	$	51,354		$	53,334		$	62,193
Loans held for sale		637			699			703
Securities available for sale		21,241			19,773			15,413
Held-to-maturity securities		18			19			24
Trading account assets		1,155			1,014			1,406
Short-term investments		1,871			1,984			2,986
Other investments		1,405			1,415			1,448
Total earning assets		77,681			78,238			84,173
Allowance for loan losses		(1,957	)		(2,219	)		(2,485	)
Cash and due from banks		823			591			725
Premises and equipment		888			872			863
Operating lease assets		563			589			775
Goodwill		917			917			917
Other intangible assets		39			42			54
Corporate-owned life insurance		3,145			3,109			3,041
Derivative assets		1,258			1,153			1,285
Accrued income and other assets		3,936			4,061			3,463
Discontinued assets		6,750			6,814			4,178
Total assets	$	94,043		$	94,167		$	96,989
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	26,350		$	25,526		$	24,635
Savings deposits		1,856			1,883			1,783
Certificates of deposit ($100,000 or more)		6,850			8,476			12,216
Other time deposits		9,014			10,430			14,211
Total interest-bearing deposits		44,070			46,315			52,845
Noninterest-bearing deposits		16,275			15,226			13,631
Deposits in foreign office — interest-bearing		1,073			834			783
Total deposits		61,418			62,375			67,259
Federal funds purchased and securities
sold under repurchase agreements		2,793			2,836			1,664
Bank notes and other short-term borrowings		685			819			471
Derivative liabilities		1,330			1,321			1,185
Accrued expense and other liabilities		1,862			2,154			2,236
Long-term debt		11,443			10,451			12,865
Discontinued liabilities		3,124			3,139			121
Total liabilities		82,655			83,095			85,801
Equity
Preferred stock, Series A		291			291			291
Preferred stock, Series B		2,442			2,438			2,426
Common shares		946			946			946
Common stock warrant		87			87			87
Capital surplus		3,710			3,701			3,726
Retained earnings		5,287			5,118			5,431
Treasury stock, at cost		(1,914	)		(1,914	)		(1,983	)
Accumulated other comprehensive income (loss)		285			153			46
Key shareholders’ equity		11,134			10,820			10,970
Noncontrolling interests		254			252			218
Total equity		11,388			11,072			11,188
Total liabilities and equity	$	94,043		$	94,167		$	96,989
Common shares outstanding (000)		880,328			880,515			878,559

Consolidated Statements of Income

(dollars in millions, except per share amounts)

	Three months ended									Nine months ended
	9-30-10			6-30-10			9-30-09			9-30-10			9-30-09
Interest income
Loans	$	649		$	677		$	786		$	2,036		$	2,445
Loans held for sale		4			5			7			13			23
Securities available for sale		170			154			121			474			310
Held-to-maturity securities		1			-			1			2			2
Trading account assets		8			10			9			29			35
Short-term investments		1			2			3			5			9
Other investments		11			13			13			38			38
Total interest income		844			861			940			2,597			2,862
Interest expense
Deposits		147			188			277			547			873
Federal funds purchased and securities sold under repurchase agreements		1			2			2			4			4
Bank notes and other short-term borrowings		4			4			3			11			13
Long-term debt		52			50			66			153			222
Total interest expense		204			244			348			715			1,112
Net interest income		640			617			592			1,882			1,750
Provision for loan losses		94			228			733			735			2,403
Net interest income (expense) after provision for loan losses		546			389			(141	)		1,147			(653	)
Noninterest income
Trust and investment services income		110			112			113			336			342
Service charges on deposit accounts		75			80			83			231			248
Operating lease income		41			43			55			131			175
Letter of credit and loan fees		61			42			46			143			128
Corporate-owned life insurance income		39			28			26			95			78
Net securities gains (losses) (a)		1			(2	)		1			2			112
Electronic banking fees		30			29			27			86			78
Gains on leased equipment		4			2			22			14			84
Insurance income		15			19			18			52			52
Net gains (losses) from loan sales		18			25			-			47			4
Net gains (losses) from principal investing		18			17			(6	)		72			(84	)
Investment banking and capital markets income (loss)		42			31			(26	)		82			5
Gain from sale/redemption of Visa Inc. shares		-			-			-			-			105
Gain (loss) related to exchange of common shares for capital securities		-			-			(17	)		-			78
Other income		32			66			40			137			161
Total noninterest income		486			492			382			1,428			1,566
Noninterest expense
Personnel		359			385			380			1,106			1,114
Net occupancy		70			64			63			200			192
Operating lease expense		40			35			46			114			145
Computer processing		46			47			48			140			143
Professional fees		41			41			41			120			121
FDIC assessment		27			33			40			97			140
OREO expense, net		4			22			51			58			72
Equipment		24			26			24			74			71
Marketing		21			16			19			50			50
Provision (credit) for losses on lending-related commitments		(10	)		(10	)		29			(22	)		40
Intangible assets impairment		-			-			45			-			241
Other expense		114			110			115			353			354
Total noninterest expense		736			769			901			2,290			2,683
Income (loss) from continuing operations before income taxes		296			112			(660	)		285			(1,770	)
Income taxes		85			11			(274	)		14			(688	)
Income (loss) from continuing operations		211			101			(386	)		271			(1,082	)
Income (loss) from discontinued operations, net of taxes		15			(27	)		(16	)		(10	)		(41	)
Net income (loss)		226			74			(402	)		261			(1,123	)
Less: Net income (loss) attributable to noncontrolling interests		7			4			(5	)		27			(12	)
Net income (loss) attributable to Key	$	219		$	70		$	(397	)	$	234		$	(1,111	)
Income (loss) from continuing operations attributable to Key common shareholders	$	163		$	56		$	(422	)	$	121		$	(1,323	)
Net income (loss) attributable to Key common shareholders		178			29			(438	)		111			(1,364	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.19		$	.06		$	(.50	)	$	.14		$	(2.07	)
Income (loss) from discontinued operations, net of taxes		.02			(.03	)		(.02	)		(.01	)		(.06	)
Net income (loss) attributable to Key common shareholders		.20			.03			(.52	)		.13			(2.14	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.19		$	.06		$	(.50	)	$	.14		$	(2.07	)
Income (loss) from discontinued operations, net of taxes		.02			(.03	)		(.02	)		(.01	)		(.06	)
Net income (loss) attributable to Key common shareholders		.20			.03			(.52	)		.13			(2.14	)
Cash dividends declared per common share	$	.01		$	.01		$	.01		$	.03		$	.0825
Weighted-average common shares outstanding (000)		874,433			874,664			839,906			874,495			637,805
Weighted-average common shares and potential common shares outstanding (000)		874,433			874,664			839,906			874,495			637,805

(a) For the three months ended September 30, 2010, Key did not have any impairment losses related to securities. For the three months ended June 30, 2010, Key had $4 million in impairment losses related to securities. Impairment losses totaled $4 million for the three months ended September 30, 2009, of which $2 million was recognized in equity as a component of accumulated other comprehensive income.