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): April 18, 2011

KeyCorp

(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):

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

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

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

o 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 April 18, 2011)
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 April 18, 2011, KeyCorp issued a press release announcing its financial results for the three-month period ended March 31, 2011 (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 April 18, 2011, KeyCorp held a conference call and webcast to facilitate a discussion of its financial condition at March 31, 2011, and its financial results for the three-month period ended March 31, 2011. 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	Press Release, dated April 18, 2011, announcing financial results for the three-month period ended March 31, 2011.
99.2	Supplemental Information Package reviewed during the conference call and webcast.
99.3	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 KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2010, which has been filed with the Securities and Exchange Commission and is available on Key’s website (www.key.com/ir) 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: April 18, 2011	/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 FIRST QUARTER 2011
NET INCOME OF $184 MILLION

• Net income from continuing operations of $184 million, or $.21 per common share, for the first quarter of 2011

• Net interest margin at 3.25% for the first quarter of 2011

• Nonperforming loans declined $183 million to 1.82% of period-end loans

• Nonperforming assets declined $249 million

• Loan loss reserve at 2.83% of total period-end loans

• Net charge-offs declined to $193 million, or 1.59% of average loan balances, for the first quarter of 2011

• Repurchased $2.5 billion of preferred stock related to participation in TARP

• Tier 1 common equity and Tier 1 risk-based capital ratios estimated at 10.70% and 13.44%, respectively, at March 31, 2011

     CLEVELAND, April 18, 2011 — KeyCorp (NYSE: KEY) today announced first quarter net income from continuing operations attributable to Key common shareholders of $184 million, or $.21 per common share. These results were after the accelerated amortization of the discount on the repurchased preferred shares from the U.S. Treasury (“deemed dividend”) of $49 million, or $.06 per diluted common share, during the first quarter. Key’s first quarter 2011 results compare to a net loss from continuing operations attributable to Key common shareholders of $98 million, or $.11 per common share, for the first quarter of 2010. The first quarter 2011 results reflect an improvement in noninterest expense and lower credit costs from the same period one-year ago. First quarter 2011 net income attributable to Key common shareholders was $173 million compared to a net loss attributable to Key common shareholders of $96 million for the same quarter one year ago.

     During the first quarter of 2011, the Company continued to benefit from improved asset quality in both Key Community Bank and Key Corporate Bank. Nonperforming assets declined $1.3 billion, and nonperforming loans decreased by $1.2 billion from the year-ago

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 2

quarter to $1.1 billion and $885 million, respectively. Net charge-offs declined $329 million from the first quarter of 2010 to $193 million, or 1.59%, of average loan balances for the first quarter of 2011.

     “Our first quarter results demonstrate continued improvement in asset quality and disciplined expense control, and underscore our successful emergence from the recession,” said Chairman and Chief Executive Officer Henry L. Meyer III. “Coupled with our successful capital actions during the quarter and TARP repayment, Key emerges in an excellent position to compete and grow under the leadership of CEO-elect Beth Mooney and her team.”

     Meyer added: “Our aggressive actions to exit riskier lending categories, which began over four years ago, have led to significant credit quality improvement again this quarter, placing our credit statistics at or near the top of our peer group. In addition, our concerted efforts to improve Key’s efficiency and effectiveness under Keyvolution have resulted in approximately $317 million in annualized cost savings through the first quarter of 2011.”

     “Key is well positioned for a range of opportunities based on our strong capital, balance sheet and liquidity,” said Mooney, who will become KeyCorp Chairman and CEO effective May 1. “We expect to continue to see decreasing levels of net charge-offs and nonperforming assets during 2011. Strong capital provides us the flexibility to make investments in our relationship businesses, look for opportunities to build market share in target markets, and meet our clients’ needs for credit and financial services as demand increases with an improving economy.”

     The Company expects to build 40 new branches in 2011, having opened eight new branches in the first quarter of 2011 and 77 others in the prior two calendar years. The Company continues its multi-year branch building and renovation project which has resulted in approximately one-third of Key’s 1,040 branches in its 14 state-branch network either being newly constructed or remodeled over the past four years. In addition, Key originated approximately $6.9 billion in new or renewed lending commitments to consumers and businesses during the first quarter, which is up from $5.3 billion from the same period one year ago.

     At March 31, 2011, Key’s estimated Tier 1 common equity and Tier 1 risk-based capital ratios were 10.70% and 13.44%, compared to 9.34% and 15.16%, respectively, at December 31, 2010. During the first quarter of 2011, Key completed the repurchase of the $2.5 billion of Fixed-Rate Perpetual Preferred Stock, Series B issued to the U.S. Treasury Department as a result of Key’s participation in the U.S. Treasury’s Capital Purchase Program of the Troubled Asset Relief Program (“TARP”). The transaction followed Key’s successful completion of a $625 million common equity offering and a $1 billion debt offering. The Board of Directors is expected to consider a dividend increase in the second quarter.

     As a result of the repurchase of the U.S. Treasury’s preferred stock investment in Key, the Company recorded a $49 million one-time deemed dividend related to the remaining difference between the repurchase price and the carrying value of the preferred shares at the time of repurchase. Beginning with the second quarter of 2011, the repurchase will result in the elimination of $31 million in dividends and $4 million of discount amortization, or $140 million on an annual basis, related to these preferred shares. The only remaining item related to TARP is the potential repurchase of the warrant granted to the U.S. Treasury for the purchase of 35,244,361 shares of Key common stock at a purchase price of $10.64 per share (the “Warrant”). Key has notified the U.S. Treasury of its intent to repurchase the Warrant.

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 3

     The following table shows Key’s continuing and discontinued operating results for the three-month periods ended March 31, 2011, December 31, 2010 and March 31, 2010.

Results of Operations

	Three months ended
in millions, except per share amounts	3-31-11			12-31-10			3-31-10
Summary of operations
Income (loss) from continuing operations attributable to Key	$	274		$	333		$	(57	)
Income (loss) from discontinued operations, net of taxes (a)		(11	)		(13	)		2
Net income (loss) attributable to Key	$	263		$	320		$	(55	)
Income (loss) from continuing operations attributable to Key	$	274		$	333		$	(57	)
Less: Dividends on Series A Preferred Stock		6			6			6
Cash dividends on Series B Preferred Stock		31			31			31
Amortization of discount on Series B Preferred Stock (b)		53			4			4
Income (loss) from continuing operations attributable to Key common shareholders		184			292			(98	)
Income (loss) from discontinued operations, net of taxes (a)		(11	)		(13	)		2
Net income (loss) attributable to Key common shareholders	$	173		$	279		$	(96	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.21		$	.33		$	(.11	)
Income (loss) from discontinued operations, net of taxes (a)		(.01	)		(.02	)		—
Net income (loss) attributable to Key common shareholders (c)	$	.19		$	.32		$	(.11	)

(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 three-month period ended March 31, 2011, was primarily attributable to fair value adjustments related to the education lending securitization trusts.
(b)	3-31-11 includes a $49 million deemed dividend.
(c)	Earnings per share may not foot due to rounding.

SUMMARY OF CONTINUING OPERATIONS

     Taxable-equivalent net interest income was $604 million for the first quarter of 2011, and the net interest margin was 3.25%. These results compare to taxable-equivalent net interest income of $632 million and a net interest margin of 3.19% for the first quarter of 2010. The increase in the net interest margin primarily reflects the Company’s efforts to lower funding costs by reducing the level of higher costing certificates of deposit and growing lower costing transaction accounts. This benefit to the net interest margin was offset by a lower level of average earning assets and a change in asset mix as loans paid down.

     Compared to the fourth quarter of 2010, taxable-equivalent net interest income decreased by $31 million, and the net interest margin declined six basis points. The decline in the net interest margin and net interest income reflects the combined effect of hedge maturities and the change in the mix and lower levels of earning assets as average loan balances declined.

     Key’s noninterest income was $457 million for the first quarter of 2011, compared to $450 million for the year-ago quarter. Investment banking and capital markets income increased $34 million compared to the same period one-year ago. A $10 million increase in investment banking income and a reduction in the customer derivative reserve in the first quarter of 2011 compared to an increase in this reserve one year ago contributed to this improvement. In addition, letter of credit and loan fees and net gains (losses) from loan sales both increased $15 million from the first quarter of 2010. These increases were partially offset by declines in other income of $22 million and operating lease income of $12 million. Also, service charges on deposit accounts decreased $8 million compared to the same period one-year

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 4

ago as a result of the changes associated with implementing Regulation E in the third quarter of 2010.

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

Noninterest Income — Major Components

in millions	1Q11		4Q10			3Q10		2Q10		1Q10
Trust and investment services income	$	110	$	108		$	110	$	112	$	114
Service charges on deposit accounts		68		70			75		80		76
Operating lease income		35		42			41		43		47
Letter of credit and loan fees		55		51			61		42		40
Corporate-owned life insurance income		27		42			39		28		28
Electronic banking fees		30		31			30		29		27
Insurance income		15		12			15		19		18
Net gains (losses) from loan sales		19		29			18		25		4
Net gains (losses) from principal investing		35		(6	)		18		17		37
Investment banking and capital markets income (loss)		43		63			42		31		9

     Compared to the fourth quarter of 2010, noninterest income decreased by $69 million. The decline was a result of lower investment banking and capital markets income of $20 million, corporate-owned life insurance income of $15 million, net securities gains (losses) of $13 million, and net gains (losses) from loan sales of $10 million. In addition, the Company realized a gain of $28 million from the sale of Tuition Management Systems in the fourth quarter of 2010. These decreases were partially offset by an increase of $41 million in net gains (losses) from principal investing (including results attributable to noncontrolling interests).

     Key’s noninterest expense was $701 million for the first quarter of 2011, compared to $785 million for the same period last year. Contributing to the decrease in noninterest expense were declines of $22 million in other real estate owned (“OREO”) expense, $11 million in operating lease expense, and $8 million in FDIC deposit insurance premiums. Key also experienced a decline of $43 million in various miscellaneous expenses.

     Compared to the fourth quarter of 2010, noninterest expense decreased by $43 million. Decreases in noninterest expense included $18 million in business services and professional fees, $12 million in marketing costs, and $35 million in various miscellaneous expenses. These decreases were partially offset by Key’s provision (credit) for losses on lending-related commitments which declined from a credit of $26 million in the fourth quarter of 2010 to a credit of $4 million in the current quarter.

ASSET QUALITY

     Key’s provision for loan and lease losses was a credit of $40 million for the first quarter of 2011, compared to a charge of $413 million for the year-ago quarter and a credit of $97 million for the fourth quarter of 2010. Key’s allowance for loan and lease losses was $1.4 billion, or 2.83% of total period-end loans, at March 31, 2011, compared to 3.20% at December 31, 2010, and 4.34% at March 31, 2010.

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
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     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	1Q11			4Q10			3Q10			2Q10			1Q10
Net loan charge-offs	$	193		$	256		$	357		$	435		$	522
Net loan charge-offs to average loans		1.59	%		2.00	%		2.69	%		3.18	%		3.67	%
Allowance for loan and lease losses	$	1,372		$	1,604		$	1,957		$	2,219		$	2,425
Allowance for credit losses (a)		1,441			1,677			2,056			2,328			2,544
Allowance for loan and lease losses to period-end loans		2.83	%		3.20	%		3.81	%		4.16	%		4.34	%
Allowance for credit losses to period-end loans		2.97			3.35			4.00			4.36			4.55
Allowance for loan and lease losses to nonperforming loans		155.03			150.19			142.64			130.30			117.43
Allowance for credit losses to nonperforming loans		162.82			157.02			149.85			136.70			123.20
Nonperforming loans at period end	$	885		$	1,068		$	1,372		$	1,703		$	2,065
Nonperforming assets at period end		1,089			1,338			1,801			2,086			2,428
Nonperforming loans to period-end portfolio loans		1.82	%		2.13	%		2.67	%		3.19	%		3.69	%
Nonperforming assets to period-end portfolio loans plus
OREO and other nonperforming assets		2.23			2.66			3.48			3.88			4.31

(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 $193 million, or 1.59%, of average loans. These results compare to $522 million, or 3.67%, for the same period last year and $256 million, or 2.00%, for the previous quarter. Net loan charge-offs have declined for the last five consecutive quarters.

     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	1Q11			4Q10			3Q10			2Q10			1Q10
Commercial, financial and agricultural	$	32		$	80		$	136		$	136		$	126
Real estate — commercial mortgage		43			52			46			126			106
Real estate — construction		30			28			76			75			157
Commercial lease financing		11			12			16			14			21
Total commercial loans		116			172			274			351			410
Home equity — Key Community Bank		24			26			35			25			30
Home equity — Other		14			13			13			16			17
Marine		19			17			12			19			38
Other		20			28			23			24			27
Total consumer loans		77			84			83			84			112
Total net loan charge-offs	$	193		$	256		$	357		$	435		$	522
Net loan charge-offs to average loans from continuing operations		1.59	%		2.00	%		2.69	%		3.18	%		3.67	%
Net loan charge-offs from discontinued operations — education lending business	$	35		$	32		$	22		$	31		$	36

     Compared to the fourth quarter of 2010, net loan charge-offs in the commercial loan portfolio decreased by $56 million. The decrease was primarily attributable to a decline in the commercial, financial and agricultural and the real estate — commercial mortgage loan portfolios. As shown in the table on page 6, Key’s exit loan portfolio accounted for $41 million, or 21.24%, of Key’s total net loan charge-offs for the first quarter of 2011. Net charge-offs in the exit loan portfolio decreased by $40 million from the fourth quarter of 2010, primarily driven by an improvement in the commercial loan portfolio.

     At March 31, 2011, Key’s nonperforming loans totaled $885 million and represented 1.82% of period-end portfolio loans, compared to 2.13% at December 31, 2010, and 3.69% at March 31, 2010. Nonperforming assets at March 31, 2011, totaled $1.1 billion and represented 2.23% of portfolio loans and OREO and other nonperforming assets, compared to 2.66% at

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
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December 31, 2010, and 4.31% at March 31, 2010. 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	1Q11			4Q10			3Q10			2Q10			1Q10
Commercial, financial and agricultural	$	221		$	242		$	335		$	489		$	558
Real estate — commercial mortgage		245			255			362			404			579
Real estate — construction		146			241			333			473			607
Commercial lease financing		42			64			84			83			99
Total consumer loans		231			266			258			254			222
Total nonperforming loans		885			1,068			1,372			1,703			2,065
Nonperforming loans held for sale		86			106			230			221			195
OREO and other nonperforming assets		118			164			199			162			168
Total nonperforming assets	$	1,089		$	1,338		$	1,801		$	2,086		$	2,428
Restructured loans — accruing and nonaccruing (a)	$	242		$	297		$	360		$	343		$	323
Restructured loans included in nonperforming loans (a)		136			202			228			213			226
Nonperforming assets from discontinued operations — education lending business		22			40			38			40			43
Nonperforming loans to period-end portfolio loans		1.82	%		2.13	%		2.67	%		3.19	%		3.69	%
Nonperforming assets to period-end portfolio loans, plus OREO and other nonperforming assets		2.23			2.66			3.48			3.88			4.31

(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 first quarter of 2011, representing the sixth consecutive quarterly decline. Each of the categories within nonperforming assets experienced reductions in the first quarter. As shown in the following table, Key’s exit loan portfolio accounted for $145 million, or 13.31%, of Key’s total nonperforming assets at March 31, 2011, compared to $210 million, or 15.70%, at December 31, 2010.

     The following table shows the composition of Key’s exit loan portfolio at March 31, 2011, and December 31, 2010, the net charge-offs recorded on this portfolio for the first quarter of 2011 and fourth quarter of 2010, and the nonperforming status of these loans at March 31, 2011, and December 31, 2010.

Exit Loan Portfolio from Continuing Operations

	Balance				Change			Net Loan				Balance on
	Outstanding				3-31-11 vs.			Charge-offs				Nonperforming Status
in millions	3-31-11		12-31-10		12-31-10			1Q11		4Q10		3-31-11		12-31-10
Residential properties — homebuilder	$	87	$	113	$	(26	)	$	2	$	16	$	44	$	66
Marine and RV floor plan		150		166		(16	)		3		12		35		37
Commercial lease financing (a)		1,922		2,047		(125	)		2		20		21		46
Total commercial loans		2,159		2,326		(167	)		7		48		100		149
Home equity — Other		627		666		(39	)		14		13		13		18
Marine		2,112		2,234		(122	)		19		17		31		42
RV and other consumer		150		162		(12	)		1		3		1		1
Total consumer loans		2,889		3,062		(173	)		34		33		45		61
Total exit loans in loan portfolio	$	5,048	$	5,388	$	(340	)	$	41	$	81	$	145	$	210
Discontinued operations — education lending business (not included in exit loans above) (b)	$	6,318	$	6,466	$	(148	)	$	35	$	32	$	22	$	39

(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 consolidated education loan securitization trusts.

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April 18, 2011
Page 7

CAPITAL

     Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2011.

Capital Ratios

	3-31-11			12-31-10			9-30-10			6-30-10			3-31-10
Tier 1 common equity (a), (b)		10.70	%		9.34	%		8.61	%		8.07	%		7.51	%
Tier 1 risk-based capital (a)		13.44			15.16			14.30			13.62			12.92
Total risk-based capital (a)		17.35			19.12			18.22			17.80			17.07
Tangible common equity to tangible assets (b)		9.16			8.19			8.00			7.65			7.37

(a)	3-31-11 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 March 31, 2011, Key’s estimated Tier 1 common equity ratio stood at 10.70%, placing it in the top quartile of its peer group for this ratio. In addition, Key’s estimated Tier 1 risk-based capital ratio stood at 13.44%, and its tangible common equity ratio was 9.16% at March 31, 2011. Since March 31, 2010, Key’s Tier 1 common equity ratio has increased 319 basis points as a result of four consecutive quarters of profitability, a lower level of risk-weighted assets, and the March 2011 $625 million common equity raise.

     The changes 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	1Q11		4Q10		3Q10			2Q10		1Q10
Shares outstanding at beginning of period		880,608		880,328		880,515			879,052		878,535
Common shares issued		70,621		—		—			—		—
Shares reissued (returned) under employee benefit plans		2,697		280		(187	)		1,463		517
Shares outstanding at end of period		953,926		880,608		880,328			880,515		879,052

     During the first quarter of 2011, Key completed the repurchase of the $2.5 billion of Fixed-Rate Perpetual Preferred Stock, Series B issued to the U.S. Treasury Department as a result of Key’s participation in the U.S. Treasury’s Capital Purchase Program. The transaction followed Key’s successful completion of a $625 million common equity offering and a $1 billion debt offering. The proceeds from the equity and debt offerings, along with other available funds, were used to repurchase the preferred shares.

LINE OF BUSINESS RESULTS

     The following table shows the contribution made by each major business segment to Key’s taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. The specific lines of business that comprise each of the major business segments are described under the heading “Line of Business Descriptions.” For more detailed financial information pertaining to each business segment and its respective lines of business, see the tables at the end of this release.

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 8

Major Business Segments

										Percent change 1Q11 vs.
dollars in millions	1Q11			4Q10			1Q10			4Q10			1Q10
Revenue from continuing operations (TE)
Key Community Bank	$	565		$	597		$	594			(5.4	)%		(4.9	)%
Key Corporate Bank		403			434			372			(7.1	)		8.3
Other Segments		96			112			104			(14.3	)		(7.7	)
Total Segments		1,064			1,143			1,070			(6.9	)		(.6	)
Reconciling Items		(3	)		18			12			(116.7	)		(125.0	)
Total	$	1,061		$	1,161		$	1,082			(8.6	)%		(1.9	)%
Income (loss) from continuing operations attributable to Key
Key Community Bank	$	81		$	58		$	13			39.7	%		523.1	%
Key Corporate Bank		125			289			(36	)		(56.7	)		N/M
Other Segments		58			3			(49	)		N/M			N/M
Total Segments		264			350			(72	)		(24.6	)		N/M
Reconciling Items		10			(17	)		15			N/M			(33.3	)%
Total	$	274		$	333		$	(57	)		(17.7	)%		N/M

TE = Taxable Equivalent, N/M = Not Meaningful

Key Community Bank

								Percent change 1Q11 vs.
dollars in millions	1Q11		4Q10		1Q10			4Q10			1Q10
Summary of operations
Net interest income (TE)	$	378	$	394	$	412			(4.1)	%		(8.3	)%
Noninterest income		187		203		182			(7.9	)		2.7
Total revenue (TE)		565		597		594			(5.4	)		(4.9	)
Provision (credit) for loan and lease losses		11		74		142			(85.1	)		(92.3	)
Noninterest expense		445		456		451			(2.4	)		(1.3	)
Income (loss) before income taxes (TE)		109		67		1			62.7			N/M
Allocated income taxes and TE adjustments		28		9		(12	)		211.1			N/M
Net income (loss) attributable to Key	$	81	$	58	$	13			39.7	%		523.1	%
Average balances
Loans and leases	$	26,312	$	26,436	$	27,769			(.5)	%		(5.2	)%
Total assets		29,739		29,830		30,886			(.3	)		(3.7	)
Deposits		48,108		48,124		51,444			—			(6.5	)
Assets under management at period end	$	20,057	$	18,788	$	18,248			6.8	%		9.9	%

TE = Taxable Equivalent, N/M = Not Meaningful

Additional Key Community Bank Data										Percent change 1Q11 vs.
dollars in millions	1Q11			4Q10			1Q10			4Q10			1Q10
Average deposits outstanding
NOW and money market deposit accounts	$	21,482		$	20,513		$	18,651			4.7	%		15.2	%
Savings deposits		1,901			1,863			1,814			2.0			4.8
Certificates of deposit ($100,000 or more)		4,513			4,885			7,362			(7.6	)		(38.7	)
Other time deposits		7,959			8,638			12,558			(7.9	)		(36.6	)
Deposits in foreign office		398			421			502			(5.5	)		(20.7	)
Noninterest-bearing deposits		11,855			11,804			10,557			.4	%		12.3
Total deposits	$	48,108		$	48,124		$	51,444			—			(6.5	)%
Home equity loans
Average balance	$	9,454		$	9,582		$	9,967
Weighted-average loan-to-value ratio (at date of origination)		70	%		70	%		70	%
Percent first lien positions		53			53			53
Other data
Branches		1,040			1,033			1,014
Automated teller machines		1,547			1,531			1,501

Key Community Bank Summary of Operations

     Key Community Bank recorded net income attributable to Key of $81 million for the first quarter of 2011, compared to net income attributable to Key of $13 million for the year-ago quarter. A substantial decrease in the provision for loan and lease losses drove the improvement in the first quarter of 2011.

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April 18, 2011
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     Taxable-equivalent net interest income declined by $34 million, or 8%, from the first quarter of 2010, due to declines in average earning assets and average deposits. Average earning assets decreased by $1 billion, or 5%, from the year-ago quarter, reflecting reductions in the commercial loan and home equity loan portfolios. Average deposits declined by $3 billion, or 6%, as higher-costing certificates of deposit mature, partially offset by growth in noninterest-bearing deposits and NOW and money market deposit accounts.

     Noninterest income increased by $5 million, or 3%, from the year-ago quarter, due to higher income from net gains from loan sales, electronic banking fees, trust and investment services, and a reduction in the provision for credit losses from client derivatives. These factors were partially offset by lower service charges on deposits from the implementation of Regulation E.

     The provision for loan and lease losses declined by $131 million, or 92%, compared to the first quarter of 2010 due to improving economic conditions resulting in lower net charge-offs and nonperforming loans from the same period one year ago.

     Noninterest expense declined by $6 million, or 1%, from the year-ago quarter. The decrease was driven by reductions in FDIC deposit insurance premiums and corporate allocated costs. These improvements were partially offset by increases in personnel expense and business services and professional fees, reflecting the cost of our third-party mortgage operations.

Key Corporate Bank

										Percent change 1Q11 vs.
dollars in millions	1Q11			4Q10			1Q10			4Q10			1Q10
Summary of operations
Net interest income (TE)	$	185		$	204		$	195			(9.3)	%		(5.1	)%
Noninterest income		218			230			177			(5.2	)		23.2
Total revenue (TE)		403			434			372			(7.1	)		8.3
Provision (credit) for loan and lease losses		(21	)		(263	)		161			N/M			(113.0	)
Noninterest expense		228			240			272			(5.0	)		(16.2	)%
Income (loss) before income taxes (TE)		196			457			(61	)		(57.1	)		N/M
Allocated income taxes and TE adjustments		72			168			(24	)		(57.1	)		N/M
Net income (loss)		124			289			(37	)		(57.1	)		N/M
Less: Net income (loss) attributable to noncontrolling interests		(1	)		—			(1	)		N/M			—
Net income (loss) attributable to Key	$	125		$	289		$	(36	)		(56.7)	%		N/M
Average balances
Loans and leases	$	17,677		$	18,602		$	22,440			(5.0)	%		(21.2	)%
Loans held for sale		275			253			240			8.7			14.6
Total assets		21,747			22,607			26,270			(3.8	)		(17.2	)
Deposits		11,282			12,766			12,220			(11.6	)		(7.7	)
Assets under management at period end	$	41,461		$	41,027		$	47,938			1.1	%		(13.5	)%

TE = Taxable Equivalent, N/M = Not Meaningful

Key Corporate Bank Summary of Operations

     Key Corporate Bank recorded net income attributable to Key of $125 million for the first quarter of 2011, compared to a net loss attributable to Key of $36 million for the same period one year ago. This improvement in the first quarter of 2011 was a result of a substantial decrease in the provision for loan and lease losses.

     Taxable-equivalent net interest income decreased by $10 million, or 5%, compared to the first quarter of 2010, primarily due to lower earning assets and deposits. Average earning assets decreased by $5 billion, or 21% from the year-ago quarter. Average deposits declined by $938 million, or 8%, from one year ago. During the first quarter of 2011, approximately $1.5 billion of escrow deposits associated with Key’s mortgage servicing operations were moved to

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April 18, 2011
Page 10

another financial institution as a result of the previously reported ratings downgrade of KeyBank National Association by Moody’s in November 2010.

     Noninterest income increased by $41 million, or 23%, from the first quarter of 2010. Investment banking and capital markets income increased $39 million. The first quarter of 2010 included a $21 million provision for losses on customer derivatives compared to a credit of $9 million in the first quarter of 2011. This improvement was partially offset by lower levels of fixed income and equity trading income. Investment banking income increased primarily due to increased levels of debt and equity financings. Also contributing to the improvement in noninterest income was a $16 million increase in letter of credit and loan fees related to an increase in syndication fees. These gains were partially offset by decreases in trust and investment services income of $7 million and operating lease revenue of $5 million.

     The provision for loan and lease losses in the first quarter of 2011 was a credit of $21 million compared to a charge of $161 million for the same period one year ago. Key Corporate Bank continued to experience improved asset quality for the sixth quarter in a row.

     Noninterest expense decreased by $44 million, or 16%, from the first quarter of 2010 due in part to a $24 million decline in OREO expense. Also contributing to the improvement was a $34 million decrease in various miscellaneous expenses and a $5 million decline in corporate overhead. These improvements were partially offset by an increase in personnel expense.

Other Segments

     Other Segments consist of Corporate Treasury, Key’s Principal Investing unit and various exit portfolios. Other Segments generated net income attributable to Key of $58 million for the first quarter of 2011, compared to a net loss attributable to Key of $49 million for the same period last year. These results are primarily attributable to a decrease in the provision for loan and lease losses and noninterest expense.

Line of Business Descriptions

Key Community Bank

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.

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.

Key Corporate Bank

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

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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 Key Community Bank and Key Corporate Bank 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 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 $90 billion at March 31, 2011. 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 2010, KeyBank scored significantly higher than its four largest competitor banks in a customer satisfaction survey conducted by the American Customer Satisfaction Index, scoring significantly better than bank industry scores across multiple dimensions, most notably Customer Loyalty. Key also has been recognized for excellence in numerous areas of the multi-channel customer banking experience, including Corporate Insight’s 2010 edition of Bank Monitor for online service. For more information about Key, visit https://www.key.com/.

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
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 Monday, April 18, 2011. An audio replay of the call will be available through April 25, 2011.

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 KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2010, which has been filed with the Securities and Exchange Commission and is available on Key’s website (www.key.com/ir) 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.

*****

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April 18, 2011
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Financial Highlights
(dollars in millions, except per share amounts)

	Three months ended
	3-31-11			12-31-10			3-31-10
Summary of operations
Net interest income (TE)	$	604		$	635		$	632
Noninterest income		457			526			450
Total revenue (TE)		1,061			1,161			1,082
Provision (credit) for loan and lease losses		(40	)		(97	)		413
Noninterest expense		701			744			785
Income (loss) from continuing operations attributable to Key		274			333			(57	)
Income (loss) from discontinued operations, net of taxes (b)		(11	)		(13	)		2
Net income (loss) attributable to Key		263			320			(55	)
Income (loss) from continuing operations attributable to Key common shareholders	$	184		$	292		$	(98	)
Income (loss) from discontinued operations, net of taxes (b)		(11	)		(13	)		2
Net income (loss) attributable to Key common shareholders		173			279			(96	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.21		$	.33		$	(.11	)
Income (loss) from discontinued operations, net of taxes (b)		(.01	)		(.02	)		—
Net income (loss) attributable to Key common shareholders		.20			.32			(.11	)
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.21			.33			(.11	)
Income (loss) from discontinued operations, net of taxes — assuming dilution (b)		(.01	)		(.02	)		—
Net income (loss) attributable to Key common shareholders — assuming dilution		.19			.32			(.11	)
Cash dividends paid		.01			.01			.01
Book value at period end		9.58			9.52			9.01
Tangible book value at period end		8.59			8.45			7.91
Market price at period end		8.88			8.85			7.75
Performance ratios
From continuing operations:
Return on average total assets		1.32	%		1.53	%		(.26)	%
Return on average common equity		8.75			13.71			(4.95	)
Net interest margin (TE)		3.25			3.31			3.19
From consolidated operations:
Return on average total assets		1.18	%		1.36	%		(.23)	%
Return on average common equity		8.23			13.10			(4.85	)
Net interest margin (TE)		3.16			3.22			3.13
Loan to deposit (d)		90.76			90.30			93.23
Capital ratios at period end
Key shareholders’ equity to assets		10.42	%		12.10	%		11.17	%
Tangible Key shareholders’ equity to tangible assets		9.48			11.20			10.26
Tangible common equity to tangible assets (a)		9.16			8.19			7.37
Tier 1 common equity (a), (c)		10.70			9.34			7.51
Tier 1 risk-based capital (c)		13.44			15.16			12.92
Total risk-based capital (c)		17.35			19.12			17.07
Leverage (c)		11.47			13.02			11.60
Asset quality — from continuing operations
Net loan charge-offs	$	193		$	256		$	522
Net loan charge-offs to average loans		1.59	%		2.00	%		3.67	%
Allowance for loan and lease losses	$	1,372		$	1,604		$	2,425
Allowance for credit losses		1,441			1,677			2,544
Allowance for loan and lease losses to period-end loans		2.83	%		3.20	%		4.34	%
Allowance for credit losses to period-end loans		2.97			3.35			4.55
Allowance for loan and lease losses to nonperforming loans		155.03			150.19			117.43
Allowance for credit losses to nonperforming loans		162.82			157.02			123.20
Nonperforming loans at period end	$	885		$	1,068		$	2,065
Nonperforming assets at period end		1,089			1,338			2,428
Nonperforming loans to period-end portfolio loans		1.82	%		2.13	%		3.69	%
Nonperforming assets to period-end portfolio loans plus
OREO and other nonperforming assets		2.23			2.66			4.31
Trust and brokerage assets
Assets under management	$	61,518		$	59,815		$	66,186
Nonmanaged and brokerage assets		29,024			28,069			27,809
Other data
Average full-time equivalent employees		15,301			15,424			15,772
Branches		1,040			1,033			1,014
Taxable-equivalent adjustment	$	7		$	6		$	7

(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)	3-31-11 ratio is estimated.
(d)	Represents period-end consolidated total loans and loans held for sale (excluding education loans in the securitization trusts) divided by period-end consolidated total deposits (excluding deposits in foreign office).

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

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 14

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,” “Tier 1 common equity” and “pre-provision net revenue.” 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 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 and lease 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
	3-31-11			12-31-10			3-31-10
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP)	$	9,425		$	11,117		$	10,641
Less: Intangible assets		937			938			963
Preferred Stock, Series B		—			2,446			2,434
Preferred Stock, Series A		291			291			291
Tangible common equity (non-GAAP)	$	8,197		$	7,442		$	6,953
Total assets (GAAP)	$	90,438		$	91,843		$	95,303
Less: Intangible assets		937			938			963
Tangible assets (non-GAAP)	$	89,501		$	90,905		$	94,340
Tangible common equity to tangible assets ratio (non-GAAP)		9.16	%		8.19	%		7.37	%
Tier 1 common equity at period end
Key shareholders’ equity (GAAP)	$	9,425		$	11,117		$	10,641
Qualifying capital securities		1,791			1,791			1,791
Less: Goodwill		917			917			917
Accumulated other comprehensive income (loss) (a)		(92	)		(66	)		(25	)
Other assets (b)		191			248			765
Total Tier 1 capital (regulatory)		10,200			11,809			10,775
Less: Qualifying capital securities		1,791			1,791			1,791
Preferred Stock, Series B		—			2,446			2,434
Preferred Stock, Series A		291			291			291
Total Tier 1 common equity (non-GAAP)	$	8,118		$	7,281		$	6,259
Net risk-weighted assets (regulatory) (b), (c)	$	75,878		$	77,921		$	83,362
Tier 1 common equity ratio (non-GAAP) (c)		10.70	%		9.34	%		7.51	%
Pre-provision net revenue
Net interest income (GAAP)	$	597		$	629		$	625
Plus: Taxable-equivalent adjustment		7			6			7
Noninterest income		457			526			450
Less: Noninterest expense		701			744			785
Pre-provision net revenue from continuing operations (non-GAAP)	$	360		$	417		$	297

(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 $102 million at March 31, 2011, $158 million at December 31, 2010 and $651 million at March 31, 2010, disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments.
(c)	3-31-11 amount is estimated.

GAAP = U.S. generally accepted accounting principles

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April 18, 2011
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Consolidated Balance Sheets
(dollars in millions)

	3-31-11			12-31-10			3-31-10
Assets
Loans	$	48,552		$	50,107		$	55,913
Loans held for sale		426			467			556
Securities available for sale		19,448			21,933			16,553
Held-to-maturity securities		19			17			22
Trading account assets		1,041			985			1,034
Short-term investments		3,705			1,344			4,345
Other investments		1,402			1,358			1,525
Total earning assets		74,593			76,211			79,948
Allowance for loan and lease losses		(1,372	)		(1,604	)		(2,425	)
Cash and due from banks		540			278			619
Premises and equipment		906			908			872
Operating lease assets		491			509			652
Goodwill		917			917			917
Other intangible assets		20			21			46
Corporate-owned life insurance		3,187			3,167			3,087
Derivative assets		1,005			1,006			1,063
Accrued income and other assets		3,758			3,876			4,150
Discontinued assets		6,393			6,554			6,374
Total assets	$	90,438		$	91,843		$	95,303
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	26,177		$	27,066		$	25,068
Savings deposits		1,964			1,879			1,873
Certificates of deposit ($100,000 or more)		5,314			5,862			10,188
Other time deposits		7,597			8,245			12,010
Total interest-bearing deposits		41,052			43,052			49,139
Noninterest-bearing deposits		16,495			16,653			15,364
Deposits in foreign office — interest-bearing		3,263			905			646
Total deposits		60,810			60,610			65,149
Federal funds purchased and securities sold under repurchase agreements		2,232			2,045			1,927
Bank notes and other short-term borrowings		685			1,151			446
Derivative liabilities		1,106			1,142			1,103
Accrued expense and other liabilities		1,931			1,931			2,089
Long-term debt		11,048			10,592			11,177
Discontinued liabilities		2,929			2,998			2,490
Total liabilities		80,741			80,469			84,381
Equity
Preferred stock, Series A		291			291			291
Preferred stock, Series B		—			2,446			2,434
Common shares		1,017			946			946
Common stock warrant		87			87			87
Capital surplus		4,167			3,711			3,724
Retained earnings		5,721			5,557			5,098
Treasury stock, at cost		(1,823	)		(1,904	)		(1,958	)
Accumulated other comprehensive income (loss)		(35	)		(17	)		19
Key shareholders’ equity		9,425			11,117			10,641
Noncontrolling interests		272			257			281
Total equity		9,697			11,374			10,922
Total liabilities and equity	$	90,438		$	91,843		$	95,303
Common shares outstanding (000)		953,926			880,608			879,052

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 16

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

	Three months ended
	3-31-11			12-31-10			3-31-10
Interest income
Loans	$	570		$	617		$	710
Loans held for sale		4			4			4
Securities available for sale		166			170			150
Held-to-maturity securities		—			—			1
Trading account assets		7			8			11
Short-term investments		1			1			2
Other investments		12			11			14
Total interest income		760			811			892
Interest expense
Deposits		110			124			212
Federal funds purchased and securities sold under repurchase agreements		1			2			1
Bank notes and other short-term borrowings		3			3			3
Long-term debt		49			53			51
Total interest expense		163			182			267
Net interest income		597			629			625
Provision (credit) for loan and lease losses		(40	)		(97	)		413
Net interest income (expense) after provision for loan and lease losses		637			726			212
Noninterest income
Trust and investment services income		110			108			114
Service charges on deposit accounts		68			70			76
Operating lease income		35			42			47
Letter of credit and loan fees		55			51			40
Corporate-owned life insurance income		27			42			28
Net securities gains (losses) (a)		(1	)		12			3
Electronic banking fees		30			31			27
Gains on leased equipment		4			6			8
Insurance income		15			12			18
Net gains (losses) from loan sales		19			29			4
Net gains (losses) from principal investing		35			(6	)		37
Investment banking and capital markets income (loss)		43			63			9
Other income		17			66			39
Total noninterest income		457			526			450
Noninterest expense
Personnel		371			365			362
Net occupancy		65			70			66
Operating lease expense		28			28			39
Computer processing		42			45			47
Business services and professional fees		38			56			38
FDIC assessment		29			27			37
OREO expense, net		10			10			32
Equipment		26			26			24
Marketing		10			22			13
Provision (credit) for losses on lending-related commitments		(4	)		(26	)		(2	)
Other expense		86			121			129
Total noninterest expense		701			744			785
Income (loss) from continuing operations before income taxes		393			508			(123	)
Income taxes		111			172			(82	)
Income (loss) from continuing operations		282			336			(41	)
Income (loss) from discontinued operations, net of taxes		(11	)		(13	)		2
Net income (loss)		271			323			(39	)
Less: Net income (loss) attributable to noncontrolling interests		8			3			16
Net income (loss) attributable to Key	$	263		$	320		$	(55	)
Income (loss) from continuing operations attributable to Key common shareholders	$	184		$	292		$	(98	)
Net income (loss) attributable to Key common shareholders		173			279			(96	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.21		$	.33		$	(.11	)
Income (loss) from discontinued operations, net of taxes		(.01	)		(.02	)		—
Net income (loss) attributable to Key common shareholders		.20			.32			(.11	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.21		$	.33		$	(.11	)
Income (loss) from discontinued operations, net of taxes		(.01	)		(.02	)		—
Net income (loss) attributable to Key common shareholders		.19			.32			(.11	)
Cash dividends declared per common share	$	.01		$	.01		$	.01
Weighted-average common shares outstanding (000)		881,894			875,501			874,386
Weighted-average common shares and potential
common shares outstanding (000) (b)		887,836			900,263			874,386

(a)	For the three months ended March 31, 2011, December 31, 2010, and March 31, 2010, Key did not have any impairment losses related to securities.
(b)	Assumes conversion of stock options and/or Preferred Series A shares, as applicable.

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 17

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)

	First Quarter 2011								Fourth Quarter 2010								First Quarter 2010
	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	$	16,311		$	174		4.33	%	$	16,562		$	189		4.51	%	$	18,796		$	222		4.78	%
Real estate — commercial mortgage		9,238			104		4.58			9,514			117		4.89			10,430			128		4.98
Real estate — construction		2,031			20		3.99			2,531			26		4.15			4,537			45		4.07
Commercial lease financing		6,335			80		5.03			6,484			82		5.08			7,195			93		5.19
Total commercial loans		33,915			378		4.51			35,091			414		4.69			40,958			488		4.82
Real estate — residential mortgage		1,810			24		5.32			1,837			25		5.43			1,803			26		5.65
Home equity:
Key Community Bank		9,453			97		4.14			9,583			101		4.16			9,967			105		4.26
Other		647			12		7.60			686			13		7.58			816			15		7.57
Total home equity loans		10,100			109		4.36			10,269			114		4.39			10,783			120		4.51
Consumer other — Key Community Bank		1,157			28		9.89			1,170			30		10.38			1,162			36		12.63
Consumer other:
Marine		2,174			34		6.26			2,295			36		6.30			2,713			42		6.15
Other		156			3		7.91			167			3		7.98			209			4		7.76
Total consumer other		2,330			37		6.37			2,462			39		6.41			2,922			46		6.27
Total consumer loans		15,397			198		5.20			15,738			208		5.27			16,670			228		5.51
Total loans		49,312			576		4.72			50,829			622		4.87			57,628			716		5.02
Loans held for sale		390			4		3.52			403			4		3.16			390			4		4.43
Securities available for sale (b), (e)		21,159			166		3.18			21,257			171		3.27			16,312			151		3.73
Held-to-maturity securities (b)		19			1		11.54			17			—		11.92			23			1		8.20
Trading account assets		1,018			7		2.75			967			8		3.22			1,186			11		3.86
Short-term investments		1,963			1		.24			2,521			1		.22			2,806			2		.28
Other investments (e)		1,360			12		3.33			1,400			11		2.86			1,498			14		3.32
Total earning assets		75,221			767		4.12			77,394			817		4.22			79,843			899		4.54
Allowance for loan and lease losses		(1,494	)							(1,789	)							(2,603	)
Accrued income and other assets		10,568								11,025								11,454
Discontinued assets — education lending business		6,479								6,674								6,884
Total assets	$	90,774							$	93,304							$	95,578
Liabilities
NOW and money market deposit accounts	$	27,004			19		.29		$	27,047			21		.30		$	24,722			23		.37
Savings deposits		1,907			—		.06			1,873			—		.06			1,828			—		.06
Certificates of deposit ($100,000 or more) (f)		5,628			43		3.05			6,341			49		3.05			10,538			88		3.39
Other time deposits		7,982			47		2.39			8,664			53		2.43			12,611			100		3.23
Deposits in foreign office		1,040			1		.31			1,228			1		.32			693			1		.30
Total interest-bearing deposits		43,561			110		1.02			45,153			124		1.09			50,392			212		1.71
Federal funds purchased and securities sold under repurchase agreements		2,375			1		.27			2,236			2		.31			1,790			1		.32
Bank notes and other short-term borrowings		738			3		1.71			480			3		2.77			490			3		2.41
Long-term debt (f)		6,792			49		3.09			7,525			53		3.02			7,001			51		3.16
Total interest-bearing liabilities		53,466			163		1.24			55,394			182		1.31			59,673			267		1.83
Noninterest-bearing deposits		16,479								16,841								14,941
Accrued expense and other liabilities		2,878								2,965								3,064
Discontinued liabilities — education lending business (d)		6,479								6,674								6,884
Total liabilities		79,302								81,874								84,562
Equity
Key shareholders’ equity		11,214								11,183								10,747
Noncontrolling interests		258								247								269
Total equity		11,472								11,430								11,016
Total liabilities and equity	$	90,774							$	93,304							$	95,578
Interest rate spread (TE)							2.88	%							2.91	%							2.71	%
Net interest income (TE) and net interest margin (TE)					604		3.25	%					635		3.31	%					632		3.19	%
TE adjustment (b)					7								6								7
Net interest income, GAAP basis				$	597							$	629							$	625

(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 First Quarter 2011 Profit
April 18, 2011
Page 18

Noninterest Income
(in millions)

	Three months ended
	3-31-11			12-31-10			3-31-10
Trust and investment services income (a)	$	110		$	108		$	114
Service charges on deposit accounts		68			70			76
Operating lease income		35			42			47
Letter of credit and loan fees		55			51			40
Corporate-owned life insurance income		27			42			28
Net securities gains (losses)		(1	)		12			3
Electronic banking fees		30			31			27
Gains on leased equipment		4			6			8
Insurance income		15			12			18
Net gains (losses) from loan sales		19			29			4
Net gains (losses) from principal investing		35			(6	)		37
Investment banking and capital markets income (loss) (a)		43			63			9
Other income		17			66			39
Total noninterest income	$	457		$	526		$	450

(a) Additional detail provided in tables below.

Trust and Investment Services Income
(in millions)

	Three months ended
	3-31-11		12-31-10		3-31-10
Brokerage commissions and fee income	$	32	$	32	$	33
Personal asset management and custody fees		38		38		37
Institutional asset management and custody fees		40		38		44
Total trust and investment services income	$	110	$	108	$	114

Investment Banking and Capital Markets Income (Loss)
(in millions)

	Three months ended
	3-31-11		12-31-10		3-31-10
Investment banking income	$	26	$	33	$	16
Income (loss) from other investments		2		—		1
Dealer trading and derivatives income (loss)		4		18		(16	)
Foreign exchange income		11		12		8
Total investment banking and capital markets income (loss)	$	43	$	63	$	9

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 19

Noninterest Expense
(dollars in millions)

	Three months ended
	3-31-11			12-31-10			3-31-10
Personnel (a)	$	371		$	365		$	362
Net occupancy		65			70			66
Operating lease expense		28			28			39
Computer processing		42			45			47
Business services and professional fees		38			56			38
FDIC assessment		29			27			37
OREO expense, net		10			10			32
Equipment		26			26			24
Marketing		10			22			13
Provision (credit) for losses on lending-related commitments		(4	)		(26	)		(2	)
Other expense		86			121			129
Total noninterest expense	$	701		$	744		$	785
Average full-time equivalent employees (b)		15,301			15,424			15,772

(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
	3-31-11		12-31-10		3-31-10
Salaries	$	224	$	232	$	222
Incentive compensation		73		85		47
Employee benefits		62		34		74
Stock-based compensation		5		11		14
Severance		7		3		5
Total personnel expense	$	371	$	365	$	362

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 20

Loan Composition
(dollars in millions)

							Percent change 3-31-11 vs.
	3-31-11		12-31-10		3-31-10		12-31-10			3-31-10
Commercial, financial and agricultural	$	16,440	$	16,441	$	18,015		—			(8.7	)%
Commercial real estate:
Commercial mortgage		8,806		9,502		10,467		(7.3)	%		(15.9	)
Construction		1,845		2,106		3,990		(12.4	)		(53.8	)
Total commercial real estate loans		10,651		11,608		14,457		(8.2	)		(26.3	)
Commercial lease financing		6,207		6,471		6,964		(4.1	)		(10.9	)
Total commercial loans		33,298		34,520		39,436		(3.5	)		(15.6	)
Real estate — residential mortgage		1,803		1,844		1,812		(2.2	)		(.5	)
Home equity:
Key Community Bank		9,421		9,514		9,892		(1.0	)		(4.8	)
Other		627		666		795		(5.9	)		(21.1	)
Total home equity loans		10,048		10,180		10,687		(1.3	)		(6.0	)
Consumer other — Key Community Bank		1,141		1,167		1,141		(2.2	)		—
Consumer other:
Marine		2,112		2,234		2,636		(5.5	)		(19.9	)
Other		150		162		201		(7.4	)		(25.4	)
Total consumer — indirect loans		2,262		2,396		2,837		(5.6	)		(20.3	)
Total consumer loans		15,254		15,587		16,477		(2.1	)		(7.4	)
Total loans (a)	$	48,552	$	50,107	$	55,913		(3.1)	%		(13.2	)%

Loans Held for Sale Composition
(dollars in millions)

							Percent change 3-31-11 vs.
	3-31-11		12-31-10		3-31-10		12-31-10			3-31-10
Commercial, financial and agricultural	$	19	$	196	$	25		(90.3)	%		(24.0	)%
Real estate — commercial mortgage		287		118		265		143.2			8.3
Real estate — construction		61		35		147		74.3			(58.5	)
Commercial lease financing		7		8		27		(12.5	)		(74.1	)
Real estate — residential mortgage		52		110		92		(52.7	)		(43.5	)
Total loans held for sale (b)	$	426	$	467	$	556		(8.8)	%		(23.4	)%

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

	1Q11			4Q10			3Q10			2Q10			1Q10
Balance at beginning of period	$	467		$	637		$	699		$	556		$	443
New originations		980			1,053			684			812			509
Transfers from held to maturity, net		32			—			202			65			109
Loan sales		(991	)		(1,174	)		(835	)		(712	)		(488	)
Loan payments		(62	)		(49	)		(49	)		(16	)		(6	)
Transfers to OREO / valuation adjustments		—			—			(64	)		(6	)		(11	)
Balance at end of period	$	426		$	467		$	637		$	699		$	556

(a)	Excluded at March 31, 2011, December 31, 2010, and March 31, 2010, are loans in the amount of $6.3 billion, $6.5 billion, and $6 billion, respectively, related to the discontinued operations of the education lending business.
(b)	Excluded at March 31, 2011, December 31, 2010, and March 31, 2010, are loans held for sale in the amount of $14 million, $15 million, and $246 million, respectively, related to the discontinued operations of the education lending business.

N/M = Not Meaningful

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 21

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

	Three months ended
	3-31-11			12-31-10			3-31-10
Average loans outstanding	$	49,312		$	50,829		$	57,628
Allowance for loan and lease losses at beginning of period	$	1,604		$	1,957		$	2,534
Loans charged off:
Commercial, financial and agricultural		42			104			139
Real estate — commercial mortgage		46			73			109
Real estate — construction		35			49			157
Total commercial real estate loans		81			122			266
Commercial lease financing		17			20			25
Total commercial loans		140			246			430
Real estate — residential mortgage		10			11			7
Home equity:
Key Community Bank		25			28			31
Other		15			13			18
Total home equity loans		40			41			49
Consumer other — Key Community Bank		12			16			18
Consumer other:
Marine		27			25			48
Other		3			4			5
Total consumer other		30			29			53
Total consumer loans		92			97			127
Total loans charged off		232			343			557
Recoveries:
Commercial, financial and agricultural		10			24			13
Real estate — commercial mortgage		3			21			3
Real estate — construction		5			21			—
Total commercial real estate loans		8			42			3
Commercial lease financing		6			8			4
Total commercial loans		24			74			20
Real estate — residential mortgage		1			—			—
Home equity:
Key Community Bank		1			2			1
Other		1			—			1
Total home equity loans		2			2			2
Consumer other — Key Community Bank		2			2			2
Consumer other:
Marine		8			8			10
Other		2			1			1
Total consumer other		10			9			11
Total consumer loans		15			13			15
Total recoveries		39			87			35
Net loan charge-offs		(193	)		(256	)		(522	)
Provision (credit) for loan and lease losses		(40	)		(97	)		413
Foreign currency translation adjustment		1			—			—
Allowance for loan and lease losses at end of period	$	1,372		$	1,604		$	2,425
Liability for credit losses on lending-related commitments at beginning of period	$	73		$	99		$	121
Provision (credit) for losses on lending-related commitments		(4	)		(26	)		(2	)
Liability for credit losses on lending-related commitments at end of period (a)	$	69		$	73		$	119
Total allowance for credit losses at end of period	$	1,441		$	1,677		$	2,544
Net loan charge-offs to average loans		1.59	%		2.00	%		3.67	%
Allowance for loan and lease losses to period-end loans		2.83			3.20			4.34
Allowance for credit losses to period-end loans		2.97			3.35			4.55
Allowance for loan and lease losses to nonperforming loans		155.03			150.19			117.43
Allowance for credit losses to nonperforming loans		162.82			157.02			123.20
Discontinued operations — education lending business:
Loans charged off	$	38		$	34		$	37
Recoveries		3			2			1
Net loan charge-offs	$	(35	)	$	(32	)	$	(36	)

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

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 22

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

	3-31-11			12-31-10			9-30-10			6-30-10			3-31-10
Commercial, financial and agricultural	$	221		$	242		$	335		$	489		$	558
Real estate — commercial mortgage		245			255			362			404			579
Real estate — construction		146			241			333			473			607
Total commercial real estate loans		391			496			695			877			1,186
Commercial lease financing		42			64			84			83			99
Total commercial loans		654			802			1,114			1,449			1,843
Real estate — residential mortgage		84			98			90			77			72
Home equity:
Key Community Bank		99			102			106			112			111
Other		13			18			16			17			18
Total home equity loans		112			120			122			129			129
Consumer other — Key Community Bank		3			4			3			5			4
Consumer other:
Marine		31			42			41			41			16
Other		1			2			2			2			1
Total consumer other		32			44			43			43			17
Total consumer loans		231			266			258			254			222
Total nonperforming loans		885			1,068			1,372			1,703			2,065
Nonperforming loans held for sale		86			106			230			221			195
OREO		97			129			163			136			130
Other nonperforming assets		21			35			36			26			38
Total nonperforming assets	$	1,089		$	1,338		$	1,801		$	2,086		$	2,428
Accruing loans past due 90 days or more	$	153		$	239		$	152		$	240		$	434
Accruing loans past due 30 through 89 days		474			476			662			610			639
Restructured loans — accruing and nonaccruing (a)		242			297			360			343			323
Restructured loans included in nonperforming loans (a)		136			202			228			213			226
Nonperforming assets from discontinued operations —
education lending business		22			40			38			40			43
Nonperforming loans to period-end portfolio loans		1.82	%		2.13	%		2.67	%		3.19	%		3.69	%
Nonperforming assets to period-end portfolio loans
plus OREO and other nonperforming assets		2.23			2.66			3.48			3.88			4.31

(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 First Quarter 2011 Profit
April 18, 2011
Page 23

Summary of Changes in Nonperforming Loans From Continuing Operations
(in millions)

	1Q11			4Q10			3Q10			2Q10			1Q10
Balance at beginning of period	$	1,068		$	1,372		$	1,703		$	2,065		$	2,187
Loans placed on nonaccrual status		335			544			691			682			746
Charge-offs		(232	)		(343	)		(430	)		(492	)		(557	)
Loans sold		(74	)		(162	)		(92	)		(136	)		(15	)
Payments		(114	)		(250	)		(200	)		(185	)		(102	)
Transfers to OREO		(12	)		(14	)		(39	)		(66	)		(20	)
Transfers to nonperforming loans held for sale		(39	)		(41	)		(163	)		(82	)		(59	)
Transfers to other nonperforming assets		(2	)		(3	)		(7	)		(36	)		(3	)
Loans returned to accrual status		(45	)		(35	)		(91	)		(47	)		(112	)
Balance at end of period	$	885		$	1,068		$	1,372		$	1,703		$	2,065

Summary of Changes in Nonperforming Loans Held For Sale From Continuing Operations
(in millions)

	1Q11			4Q10			3Q10			2Q10			1Q10
Balance at beginning of period	$	106		$	230		$	221		$	195		$	116
Transfers in		39			41			162			86			129
Net advances / (payments)		(20	)		(26	)		(35	)		1			—
Loans sold		(38	)		(139	)		(50	)		(53	)		(38	)
Transfers to OREO		—			—			(58	)		(6	)		(6	)
Valuation adjustments		(1	)		—			(6	)		(2	)		(6	)
Loans returned to accrual status / other		—			—			(4	)		—			—
Balance at end of period	$	86		$	106		$	230		$	221		$	195

Summary of Changes in Other Real Estate Owned, Net of Allowance, From Continuing Operations
(in millions)

	1Q11			4Q10			3Q10			2Q10			1Q10
Balance at beginning of period	$	129		$	163		$	136		$	130		$	168
Properties acquired — nonperforming loans		12			14			97			72			26
Valuation adjustments		(11	)		(9	)		(7	)		(24	)		(28	)
Properties sold		(33	)		(39	)		(63	)		(42	)		(36	)
Balance at end of period	$	97		$	129		$	163		$	136		$	130

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 24

Line of Business Results
(dollars in millions)

Key Community Bank

																Percent change 1Q11 vs.
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
Summary of operations
Total revenue (TE)	$	565		$	597		$	596		$	602		$	594			(5.4)	%		(4.9	)%
Provision (credit) for loan and lease losses		11			74			75			121			142			(85.1	)		(92.3	)
Noninterest expense		445			456			458			452			451			(2.4	)		(1.3	)
Net income (loss) attributable to Key		81			58			53			31			13			39.7			523.1
Average loans and leases		26,312			26,436			26,772			27,217			27,769			(.5	)		(5.2	)
Average deposits		48,108			48,124			48,682			50,406			51,444			—			(6.5	)
Net loan charge-offs		76			115			129			148			116			(33.9	)		(34.5	)
Net loan charge-offs to average loans		1.17	%		1.73	%		1.91	%		2.18	%		1.69	%		N/A			N/A
Nonperforming assets at period end	$	475		$	497		$	567		$	561		$	597			(4.4	)		(20.4	)
Return on average allocated equity		10.03	%		6.79	%		6.04	%		3.49	%		1.47	%		N/A			N/A
Average full-time equivalent employees		8,378			8,291			8,303			8,241			8,182			1.0			2.4
Supplementary information (lines of business)
Regional Banking
Total revenue (TE)	$	448		$	470		$	478		$	489		$	485			(4.7)	%		(7.6	)%
Provision (credit) for loan and lease losses		17			77			105			57			115			(77.9	)		(85.2	)
Noninterest expense		400			412			415			409			406			(2.9	)		(1.5	)
Net income (loss) attributable to Key		32			4			(13	)		27			(10	)		700.0			N/M
Average loans and leases		17,597			17,810			18,072			18,404			18,753			(1.2	)		(6.2	)
Average deposits		42,189			42,371			43,327			45,219			46,182			(.4	)		(8.6	)
Net loan charge-offs		62			77			89			82			96			(19.5	)		(35.4	)
Net loan charge-offs to average loans		1.43	%		1.72	%		1.95	%		1.79	%		2.08	%		N/A			N/A
Nonperforming assets at period end	$	294		$	326		$	350		$	339		$	327			(9.8	)		(10.1	)
Return on average allocated equity		5.76	%		.69	%		(2.23)	%		4.65	%		(1.74)	%		N/A			N/A
Average full-time equivalent employees		8,009			7,930			7,950			7,886			7,831			1.0			2.3
Commercial Banking
Total revenue (TE)	$	117		$	127		$	118		$	113		$	109			(7.9)	%		7.3	%
Provision (credit) for loan and lease losses		(6	)		(3	)		(30	)		64			27			N/M			(122.2	)
Noninterest expense		45			44			43			43			45			2.3			—
Net income (loss) attributable to Key		49			54			66			4			23			(9.3	)		113.0
Average loans and leases		8,715			8,626			8,700			8,813			9,016			1.0			(3.3	)
Average deposits		5,919			5,753			5,355			5,187			5,262			2.9			12.5
Net loan charge-offs		14			38			40			66			20			(63.2	)		(30.0	)
Net loan charge-offs to average loans		.65	%		1.75	%		1.82	%		3.00	%		.90	%		N/A			N/A
Nonperforming assets at period end	$	181		$	171		$	217		$	222		$	270			5.8			(33.0	)
Return on average allocated equity		19.41	%		19.64	%		22.51	%		1.30	%		7.43	%		N/A			N/A
Average full-time equivalent employees		369			361			353			355			351			2.2			5.1

KeyCorp Reports First Quarter 2011 Profit
April 18, 2011
Page 25

Line of Business Results (continued)
(dollars in millions)

Key Corporate Bank

																Percent change 1Q11 vs.
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
Summary of operations
Total revenue (TE)	$	403		$	434		$	424		$	406		$	372			(7.1)	%		8.3	%
Provision (credit) for loan and lease losses		(21	)		(263	)		(25	)		99			161			N/M			(113.0	)
Noninterest expense		228			240			237			249			272			(5.0	)		(16.2	)
Net income (loss) attributable to Key		125			289			134			38			(36	)		(56.7	)		N/M
Average loans and leases		17,677			18,602			19,540			20,949			22,440			(5.0	)		(21.2	)
Average loans held for sale		275			253			380			381			240			8.7			14.6
Average deposits		11,282			12,766			11,565			12,391			12,220			(11.6	)		(7.7	)
Net loan charge-offs		75			61			122			173			251			23.0			(70.1	)
Net loan charge-offs to average loans		1.72	%		1.30	%		2.48	%		3.31	%		4.54	%		N/A			N/A
Nonperforming assets at period end	$	427		$	575		$	886		$	1,089		$	1,285			(25.7	)		(66.8	)
Return on average allocated equity		19.65	%		40.70	%		17.56	%		4.58	%		(4.32)	%		N/A			N/A
Average full-time equivalent employees		2,155			2,169			2,210			2,175			2,213			(.6	)		(2.6	)
Supplementary information (lines of business)
Real Estate Capital and Corporate Banking Services
Total revenue (TE)	$	165		$	177		$	169		$	173		$	141			(6.8)	%		17.0	%
Provision (credit) for loan and lease losses		9			(211	)		22			77			145			N/M			(93.8	)
Noninterest expense		69			83			87			97			120			(16.9	)		(42.5	)
Net income (loss) attributable to Key		56			192			38			—			(77	)		(70.8	)		N/M
Average loans and leases		8,583			9,381			10,306			11,466			12,341			(8.5	)		(30.5	)
Average loans held for sale		140			199			202			194			115			(29.6	)		21.7
Average deposits		8,611			10,409			9,146			9,728			9,639			(17.3	)		(10.7	)
Net loan charge-offs		65			57			103			142			207			14.0			(68.6	)
Net loan charge-offs to average loans		3.07	%		2.41	%		3.97	%		4.97	%		6.80	%		N/A			N/A
Nonperforming assets at period end	$	334		$	442		$	719		$	867		$	1,067			(24.4	)		(68.7	)
Return on average allocated equity		15.22	%		45.53	%		8.18	%		—			(15.39)	%		N/A			N/A
Average full-time equivalent employees		882			889			895			901			921			(.8	)		(4.2	)
Equipment Finance
Total revenue (TE)	$	63		$	66		$	63		$	61		$	61			(4.5)	%		3.3	%
Provision (credit) for loan and lease losses		(26	)		(16	)		(12	)		10			4			N/M			(750.0	)
Noninterest expense		51			51			53			49			45			—			13.3
Net income (loss) attributable to Key		24			19			14			1			8			26.3			200.0
Average loans and leases		4,621			4,656			4,515			4,478			4,574			(.8	)		1.0
Average loans held for sale		4			—			2			16			1			N/M			300.0
Average deposits		6			2			5			5			6			200.0			—
Net loan charge-offs		10			7			25			18			18			42.9			(44.4	)
Net loan charge-offs to average loans		.88	%		.60	%		2.20	%		1.61	%		1.60	%		N/A			N/A
Nonperforming assets at period end	$	44		$	68		$	86		$	106		$	111			(35.3	)		(60.4	)
Return on average allocated equity		31.30	%		22.98	%		17.14	%		1.15	%		8.86	%		N/A			N/A
Average full-time equivalent employees		521			529			536			549			563			(1.5	)		(7.5	)
Institutional and Capital Markets
Total revenue (TE)	$	175		$	191		$	192		$	172		$	170			(8.4)	%		2.9	%
Provision (credit) for loan and lease losses		(4	)		(36	)		(35	)		12			12			N/M			(133.3	)
Noninterest expense		108			106			97			103			107			1.9			.9
Net income (loss) attributable to Key		45			78			82			37			33			(42.3	)		36.4
Average loans and leases		4,473			4,565			4,719			5,005			5,525			(2.0	)		(19.0	)
Average loans held for sale		131			54			176			171			124			142.6			5.6
Average deposits		2,665			2,355			2,414			2,658			2,575			13.2			3.5
Net loan charge-offs		—			(3	)		(6	)		13			26			N/M			(100.0	)
Net loan charge-offs to average loans		—			(.26)	%		(.50)	%		1.04	%		1.91	%		N/A			N/A
Nonperforming assets at period end	$	49		$	65		$	81		$	116		$	107			(24.6	)		(54.2	)
Return on average allocated equity		23.49	%		37.92	%		37.83	%		15.46	%		13.56	%		N/A			N/A
Average full-time equivalent employees		752			751			779			725			729			.1			3.2

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

EX-99.2

Exhibit 99.2

First Quarter 2011 Review April 18, 2011 Speakers: Henry Meyer Beth Mooney Jeff Weeden

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 KeyCorp's Annual Report on Form 10-K for the year ended December 31, 2010, which has been filed with the Securities and Exchange Commission and is available on Key's website (www.key.com/ir) 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

Capital Actions - First Quarter 2011 Repurchased TARP Capital (CPP Preferred): $2.5 billion Eliminates $125 million of annual preferred dividends Successful completion of capital issuance $625 million common equity (25% of CPP Preferred) $1.0 billion senior unsecured debt offering Notified U.S. Treasury of intent to repurchase warrants Dividend increase to be considered by Board of Directors at May meeting

Savings through 1Q11 Savings Goal PPNR Net interest Income 317 300 360 Noninterest Income 75 Significant Progress on Keyvolution Keyvolution Cost Savings (a) Highlights Keyvolution focused on business simplification, process improvement & demand management From 4Q08 to 1Q11, $317 million in annual run rate savings were achieved Personnel costs were reduced by $205 million related to headcount reductions of over 2,300 Non-personnel expense declined by $112 million, including occupancy, communications & travel Continued focus on disciplined expense management will drive further cost saves (a) Before one-time costs and investments. $317 $ in millions $300 - $375

Improved credit quality (1Q11 vs. 4Q10) NPLs down $183 million (1.82% of period-end loans) NPAs down $249 million (61% decrease from peak level in 3Q09) NCOs declined to $193 million (decreased 5 consecutive quarters) Asset sales continue near Key's carrying values Risk management Capital remains strong -Tier 1 common equity: 10.70% Superior reserve coverage: 2.83% allowance to period-end loans Core funded institution: Loan to deposit ratio of 91% 1Q11 EPS (continuing operations): $.21 Lower expense levels through Keyvolution and other cost initiatives Financial performance Strong balance sheet Investor Highlights - First Quarter 2011 Refocused business model - stronger alignment between Community Bank and Corporate Bank Momentum in the business - new client acquisition and growth Leveraging strong balance sheet - continuing to invest in businesses Delivering on growth initiatives Key remains focused on what it does best: Serving customers and small/midsize businesses through its relationship-based banking model

Financial Summary - First Quarter 2011 Capital (b) Asset Quality (a) Financial Performance (a) Metrics Income (loss) from continuing operations attributable to Key common shareholders $.21 $.33 $(.11) Net interest margin (TE) 3.25% 3.31% 3.19% Return on average total assets 1.32 1.53 (.26) TE = Taxable equivalent, EOP = End of Period (a) From continuing operations. (b) From consolidated operations. (c) 3-31-11 ratios are estimated. 1Q11 4Q10 1Q10 Tier 1 common equity (c) 10.70% 9.34% 7.51% Tier 1 risk-based capital (c) 13.44 15.16 12.92 Tangible common equity to tangible assets 9.16 8.19 7.37 Book value per common share $9.58 $9.52 $9.01 Net loan charge-offs to average loans 1.59% 2.00% 3.67% NPLs to EOP portfolio loans 1.82 2.13 3.69 NPAs to EOP portfolio loans + OREO + Other NPAs 2.23 2.66 4.31 Allowance for loan losses to period-end loans 2.83 3.20 4.34 Allowance for loan losses to NPLs 155.03 150.19 117.43

(a) Continuing operations, unless otherwise noted. (b) Ending balances; loans & loans held for sale (excluding education loans in the securitization trusts) to deposits (excluding deposits in foreign office). (c) Consolidated operations. Key's Targets for Success (a) KEY Business Model KEY Metrics KEY 1Q11 Targets Action Plans Core funded Loan to deposit ratio (b) (c) 91% 90-100% Improve risk profile of loan portfolio and grow relationships Improve deposit mix and grow deposit base Returning to a moderate risk profile NCOs to average loans 1.59% 40-50 bps Focus on relationship clients Exit noncore portfolios Limit concentrations Focus on risk-adjusted returns Growing high quality, diverse revenue streams Net interest margin 3.25% >3.50% Improve funding mix Focus on risk-adjusted returns Grow client relationships Leverage Key's total client solutions and cross-selling capabilities Growing high quality, diverse revenue streams Noninterest income to total revenue 43% >40% Improve funding mix Focus on risk-adjusted returns Grow client relationships Leverage Key's total client solutions and cross-selling capabilities Creating positive operating leverage Keyvolution cost savings $317 million implemented $300-$375 million Improve efficiency and effectiveness Leverage technology Change cost base to more variable from fixed Executing our strategies Return on average assets 1.32% 1.00-1.25% Execute our client insight-driven relationship model Lower credit costs Improved funding mix with lower cost core deposits Keyvolution savings

2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Foreign Deposits DDA 12.4 13.604 14.655 14.941 15.644 15.949 16.841 16.479 NOW/Money Market 24.1 24.444 24.91 24.722 25.27 25.783 27.047 27.004 Savings 1.8 1.799 1.801 1.828 1.883 1.885 1.873 1.907 CD's < $100K 14.9 14.749 13.753 12.611 11.309 9.648 8.664 7.982 CD's > $100K 13.5 12.771 11.675 10.538 9.485 7.635 6.341 5.628 Total 66.8 67.367 66.794 64.64 63.591 60.9 60.766 59 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Loans / Deposits 1.01 0.95 0.91 0.88 0.88 0.862 0.8473 0.8511 Discontinued 0.06 0.06 0.07 0.05 0.05 0.056 0.056 0.057 Total Loans 1.07 1.01 0.98 0.93 0.93 0.918 0.903 0.9076 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Commercial & Industrial 23.7 21.502 19.347 18.421 17.418 16.705 16.354 16.151 CRE - Comml Mtg 11.9 10.946 10.358 10.087 10.108 9.634 9.38 9.13 CRE - Construction 5.5 5.834 5.246 4.537 3.773 3.165 2.531 2.031 Leasing 4.6 4.505 4.484 4.41 4.2 4.226 4.314 4.359 Home Equity 10.3 10.192 10.101 9.967 9.838 9.711 9.582 9.453 Other Consumer 2.9 2.932 2.965 2.964 2.973 2.997 3.006 2.967 Exit Portfolios 9.8 8.92 8.033 7.243 6.7 6.129 5.662 5.22 Total Loans 68.7 64.83 60.533 57.628 54.953 52.566 50.829 49.312 Average Deposits Home equity Leasing CRE - construction CF&A CRE - Mortgage Average Loans $ in billions Other consumer CDs > $100K CDs < $100K Savings DDA NOW/MMDA $ in billions Exit portfolios Continuing operations Discontinued operations (a) Ending balances; loans & loans held for sale (excluding education loans in the securitization trusts) to deposits (excluding deposits in foreign office). 90% 93% 93% 92% Loan to Deposit Ratio (a) $57.6 $55.0 $64.6 $60.9 $63.6 $60.8 $59.0 91% Core Funded and Focused on Relationship Businesses

CF&A CRE - mtg CRE - const Leasing Home equity Other consumer Exit Exit Portfolios 126 106 157 21 47 65 29.5 CF&A 24% CRE - mortgage 20% CRE - construction 30% Other consumer 13% Home equity 9% Net Charge-offs by Loan Type Net Charge-offs 1Q10 = $522 million Net Charge-offs 1Q11 = $193 million Substantial Reduction in Net Charge-offs $ in millions CF&A CRE - mtg CRE - const Leasing Home equity Other consumer Exit Exit Portfolios 32 43 30 11 38 39 21 Leasing 4% CF&A 17% CRE - mortgage 22% CRE - construction 15% Other consumer 20% Home equity 20% Leasing 6% (a) Exit portfolio NCOs are included in the individual loan types listed above

Nonperforming Assets Net Charge-offs & Provision for Loan Losses NPLs NPLs to period-end loans 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Net Loan Charge-offs 502 587 708 522 435 357 256.2 193 NCO to Avg Loans 0.0293 0.0359 0.0464 0.0367 0.0318 0.0269 0.02 0.0159 Provision for Loan Losses 823 733 756 413 228 94 -97 -40 NCOs Provision for loan losses NCOs to average loans Allowance for Loan Losses Allowance to Nonperforming Loans CONTINUING 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Allowance for Loan Losses 2339 2485 2534 2425 2219 1957 1604 1372 ALL to period end loans 0.0348 0.04 0.0431 0.0434 0.0416 0.0381 0.032 0.0283 Allowance for loan losses ALLL to period-end loans CONTINUING 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 ALLL to nonperforming loans 1.07 1.0852 1.1587 1.1743 1.303 1.4264 1.502 1.5503 $ in millions $ in millions $ in millions NPLs held for sale, OREO & other NPAs Key expects NCOs and NPAs to continue to decline in 2011 NCOs decreased by 63% NPAs decreased by 55% ALLL decreased by 43% 1Q10 2Q10 3Q10 4Q10 1Q11 NPLs 2065 1703 1372 1068 885 NPLs/PE Loans 0.0369 0.0319 0.0267 0.0213 0.0182 NPLs HFS, OREO, Other 363 383 429 270 204 Total 2428 2086 1801 1338 1089 $2,428 $2,086 Significant Improvement in Asset Quality

Net Interest Margin (TE) TE = Taxable equivalent (a) Average balances, excludes time deposits and deposits in foreign office. 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Net Interest Income 689 692 716 722 726 726 744 700 706 712 750 738 738 684 664 595 591 613 637 632 623 647 635 604 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 0.0291 0.0288 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 0.0331 0.0325 $ in millions Continuing Operations Net interest margin Net interest spread Net interest income Highlights Net Interest Margin (TE) Trend Average CD Balances and Cost $ in billions 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Total CDs 28.5 27.52 25.4 23.149 20.8 17.3 15.005 13.61 Rate on CDs 0.0372 0.0356 0.0344 0.033 0.0313 0.0282 0.0269 0.0266 Average rate on CDs Total average CDs Net interest margin up 6 bps compared to 1Q10 Improved funding mix has reduced cost of deposits Positioned to benefit from rising rates Approximately 3.4% increase in net interest income from a 200 bps increase in rates CDs decreased by 41% Non-time Deposits (a) & Cost of Interest-bearing Deposits 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Nontime deposits 37 39 40 41 41.5 42.8 43.6 45.8 45.4 Rate on CDs 0.022 0.022 0.02 0.018 0.017 0.016 0.013 0.011 0.0102 Cost of interest-bearing deposits Non-time deposits Non-time deposits increased by 9% $ in billions

Enhancing Noninterest Income Areas of Focus Noninterest Income and % of Total Revenue 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Noninterest Income 706 382 469 450 492 486 526 457 Noninterest Income / Total Revenue 0.55 0.3894 0.424 0.4158 0.4413 0.4289 0.453 0.431 Noninterest income Noninterest Income to total revenue $ in millions Diverse Noninterest Income - 1Q11 Regional Commercial REC & Corp Bank Institional & Capital Markets Equipment Finance Other Noninterest Income 35 5.9 13.3 27.6 6.8 11 Regional Banking 35% Commercial Banking 6% Real Estate Capital and Corporate Banking Services 13% Equipment Finance 7% Institutional and Capital Markets 28% Targeting specific high-opportunity client segments in our Corporate Bank - using the balance sheet strategically Leveraging investment banking and capital markets opportunities Continuing to build out Private Banking platform and Key Investment Services Improving alignment of products and services across organization - business decisions based on highest value to clients and Key Evaluating response to Dodd-Frank for potential offsets to lost revenue Other 11%

Focused Expense Management Noninterest Expense and Average FTEs 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Noninterest Expense 855 901 871 785 769 736 744 701 Average FTEs 16937 16436 15973 15772 15665 15584 15424 15301 Noninterest expense Average FTEs $ in millions Highlights Implemented $317 million run rate of Keyvolution cost savings through 1Q11 FDIC assessment expense expected to decline by $30 - $60 million in 2011 Key expects quarterly noninterest expense to be in the range $700 - $725 in 2011 Lowering Noninterest Expense Base (a) (a) Noninterest expense excludes provision (credit) for losses on lending-related commitments and intangible asset impairment. $ in millions

1Q11 Pre-Provision Net Revenue Pre-Provision Net Revenue Trend Pre-Provision Net Revenue (a) and ROAA (b) (a) Net interest income plus taxable-equivalent adjustment and noninterest income less noninterest expense. (b) From continuing operations. 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 ROA -0.0162 -0.0094 -0.0026 0.0044 0.0093 0.0153 0.0132 Return on Average Assets 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 PPNR 142 235 297 346 397 417 360 $ in millions $ in millions Total revenue Noninterest expense PPNR Net interest Income 604 330 360 Noninterest Income 457 371 Net interest income 57% Noninterest income 43% Personnel expense 53% Non-personnel expense 47%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 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 0.0819 0.0916 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 0.0711 0.0736 Peer Median 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Common 0.0583 0.056 0.0558 0.0562 0.0562 0.0736 0.0764 0.075 0.0751 0.0807 0.0861 0.0934 0.107 Convertible 0.0059 0.006 0.0062 0.0065 0.003 0.0032 0.0034 0.0035 0.0036 0.0037 0.0037 0.0038 TARP 0.0226 0.0239 0.0252 0.0268 0.0282 0.0291 0.0299 0.0307 0.0314 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 0.0231 0.0236 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 0.0127 0.0126 Qualifying LTD 0.0279 0.0261 0.0259 0.0264 0.0269 0.0281 0.0275 0.029 0.0286 0.029 0.0265 0.0269 0.0265 Total RBC 0.1234 0.1241 0.124 0.1482 0.1518 0.1667 0.1665 0.1695 0.1707 0.178 0.1822 0.1912 0.1735 Total RBC - Peer Median 0.1136 0.1197 0.1215 0.1448 0.143 0.1508 0.1575 0.154 0.1468 0.1514 0.1561 0.1555 Qualifying common Convertible preferred Capital purchase program Capital securities Qualifying ALLL/unfunded comm. Qualifying LTD Tier 1 Common Equity (a) Tangible Common Equity to Tangible Assets Total Risk-Based Capital (a) Tier 1 Risk-Based Capital (a) (a) 3-31-11 ratio is estimated. 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Common 0.0583 0.056 0.0558 0.0562 0.0562 0.0736 0.0764 0.075 0.0751 0.0807 0.0861 0.0934 0.107 Capital Raise Convertible 0.0059 0.006 0.0062 0.0065 0.003 0.0032 0.0034 0.0035 0.0036 0.0037 0.0037 0.0038 TARP 0.0226 0.0239 0.0252 0.0268 0.0282 0.0291 0.0299 0.0307 0.0314 0 Qualifying Securities 0.025 0.0234 0.0237 0.0242 0.0256 0.0239 0.0197 0.0209 0.0215 0.022 0.0225 0.0231 0.0236 Tier 1 0.0833 0.0853 0.0855 0.1092 0.1122 0.1257 0.1261 0.1275 0.1292 0.1362 0.143 0.1516 0.1344 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 0.1198 0.1195 Strong Capital Ratios 1Q10 2Q10 3Q10 4Q10 1Q11 Tier I common 0.0751 0.0807 0.0861 0.0934 0.107 Capital Raise Total Tangible Common Equity - Peer Median 0.0748 0.0778 0.0802 0.0873

Appendix

Available for Sale Securities Highlights 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Avg. Securities Available for Sale 8.36 12.154 15.937 16.312 17.285 20.276 21.257 21.159 Average Yield 0.0437 0.04 0.0382 0.0373 0.0363 0.0343 0.0327 0.0318 Average AFS securities Average yield $ in billions High Quality Investment Portfolio Portfolio composed of Agency or GSE backed: GNMA, Fannie & Freddie No private label MBS or financial paper Average portfolio maturity at March 31, 2011: 3.2 years Unrealized net gain of $366 million on available-for-sale securities portfolio at 3/31/11 March CMO sale of $1.5 billion in connection with loss of CRE escrow deposits (brings quarter-end total down to $19.4 billion)

N/M = Not Meaningful (a) Net charge-off amounts are annualized in calculation. NCO ratios for discontinued operations and consolidated Key exclude education loans in the securitization trusts since valued at fair-market value. (b) 3-31-11 allowance by portfolio is estimated. Allowance/period loans ratios for discontinued operations and consolidated Key exclude education loans in the securitization trusts since valued at fair-market value. Credit Quality Credit Quality by Portfolio $ in millions

12/31 loans Exit port. runoff / paydown Loans charged off Net decrease 3/31 loans 1 50.107 49.808 49.509 48.552 48.552 2 0.299 0 0 3 0.232 0.95 CF&A and Leasing Total Loans Total Consumer Total Commercial Real Estate 1Q11 Loan Activity $50.1 $48.6 $(.2) $(.3) $(1.0) 12/31 loans Exit port. runoff / paydown Loans charged off Net decrease 3/31 loans 1 22.9 22.8 22.7 22.6 22.6 2 0.1 0 0 3 0.1 0.1 $22.9 $22.6 $(.1) $(.1) $(.1) 12/31 loans Exit port. runoff / paydown Loans charged off Net decrease 3/31 loans 1 11.6 11.5 11.35 10.6 10.6 2 0.1 0 0 3 0.15 0.7 $11.6 $10.6 $(.1) $.0 $(.9) 12/31 loans Exit port. runoff / paydown Loans charged off Net decrease 3/31 loans 1 15.6 15.5 15.4 15.3 15.3 2 0.1 0 0 3 0.1 0.1 $15.6 $15.3 $(.1) $(.1) $(.1) (a) (a) (a) (a) Numbers may not cross foot due to rounding. (a) Exit portfolio runoff / paydown excludes net charge-offs. Decline in loan balances primarily due to reducing Commercial Real Estate exposure $ in billions $ in billions $ in billions $ in billions

Commercial Real Estate by Property Type and Geography (a) Nonresidential land and development loans. N/M = Not Meaningful Commercial Real Estate Loans - 3/31/11 $ in millions (a)

NOO Cons NOO Mort OO Real Estate 8154 4311 5267 NOO Cons NOO Mort OO Real Estate 1581 5559 3511 Owner-occupied 30% Nonowner-occupied construction 46% Total Outstanding Balances at 3/31/11 = $10.7 billion Total Outstanding Balances at 12/31/07 = $17.7 billion Commercial Real Estate loan balances decreased by 40% since 2007 Commercial Real Estate Transformation Nonowner-occupied commercial mortgage 24% Owner-occupied 33% Nonowner-occupied construction 15% Nonowner-occupied commercial mortgage 52%

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

(a) Average LTVs are at origination. Current average LTVs for Community Bank total home equity loans and lines is approximately 79%, which compares to 76% at the end of the fourth quarter of 2010. Community Bank - Home Equity Exit Portfolio - Home Equity $ in millions, except average loan size $ in millions, except average loan size (a) (a) Home Equity Loans - 3/31/11

Exit Loan Portfolio Trend (Excluding Discontinued Operations) Exit Loan Portfolio $ 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 consolidated education loan securitization trusts. 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Exit loan portfolio 9473 8449 7574 6965 6357 5846 5388 5048 $ in millions Exit Loan Portfolio

Credit Quality Trends Quarterly Change in Criticized Outstandings (a) Delinquencies to Period-end Total Loans 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 30 - 89 Day % 0.014927407 0.010743022 0.011673193 0.016884342 0.018746125 0.016097161 0.017222806 0.015882968 0.011420314 0.011435595 0.012900417 0.009505319 0.009763 90+ Day % 0.003611772 0.004734788 0.004222169 0.005671193 0.006220191 0.008224649 0.006032238 0.005637825 0.007767317 0.004505662 0.002961795 0.004768096 0.003151 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 % Change 0.4166 -0.0836 0.1711 0.4151 0.3512 0.0283 -0.0204 -0.0808 -0.0095 -0.1276 -0.1429 -0.1668 -0.1124 30 - 89 days delinquent 90+ days delinquent (a) Loans and leases outstanding 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

EX-99.3

Exhibit 99.3

Consolidated Balance Sheets

(dollars in millions)

	3-31-11			12-31-10			3-31-10
Assets
Loans	$	48,552		$	50,107		$	55,913
Loans held for sale		426			467			556
Securities available for sale		19,448			21,933			16,553
Held-to-maturity securities		19			17			22
Trading account assets		1,041			985			1,034
Short-term investments		3,705			1,344			4,345
Other investments		1,402			1,358			1,525
Total earning assets		74,593			76,211			79,948
Allowance for loan and lease losses		(1,372	)		(1,604	)		(2,425	)
Cash and due from banks		540			278			619
Premises and equipment		906			908			872
Operating lease assets		491			509			652
Goodwill		917			917			917
Other intangible assets		20			21			46
Corporate-owned life insurance		3,187			3,167			3,087
Derivative assets		1,005			1,006			1,063
Accrued income and other assets		3,758			3,876			4,150
Discontinued assets		6,393			6,554			6,374
Total assets	$	90,438		$	91,843		$	95,303
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	26,177		$	27,066		$	25,068
Savings deposits		1,964			1,879			1,873
Certificates of deposit ($100,000 or more)		5,314			5,862			10,188
Other time deposits		7,597			8,245			12,010
Total interest-bearing deposits		41,052			43,052			49,139
Noninterest-bearing deposits		16,495			16,653			15,364
Deposits in foreign office — interest-bearing		3,263			905			646
Total deposits		60,810			60,610			65,149
Federal funds purchased and securities sold under repurchase agreements		2,232			2,045			1,927
Bank notes and other short-term borrowings		685			1,151			446
Derivative liabilities		1,106			1,142			1,103
Accrued expense and other liabilities		1,931			1,931			2,089
Long-term debt		11,048			10,592			11,177
Discontinued liabilities		2,929			2,998			2,490
Total liabilities		80,741			80,469			84,381
Equity
Preferred stock, Series A		291			291			291
Preferred stock, Series B		—			2,446			2,434
Common shares		1,017			946			946
Common stock warrant		87			87			87
Capital surplus		4,167			3,711			3,724
Retained earnings		5,721			5,557			5,098
Treasury stock, at cost		(1,823	)		(1,904	)		(1,958	)
Accumulated other comprehensive income (loss)		(35	)		(17	)		19
Key shareholders’ equity		9,425			11,117			10,641
Noncontrolling interests		272			257			281
Total equity		9,697			11,374			10,922
Total liabilities and equity	$	90,438		$	91,843		$	95,303
Common shares outstanding (000)		953,926			880,608			879,052

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

	Three months ended
	3-31-11			12-31-10			3-31-10
Interest income
Loans	$	570		$	617		$	710
Loans held for sale		4			4			4
Securities available for sale		166			170			150
Held-to-maturity securities		—			—			1
Trading account assets		7			8			11
Short-term investments		1			1			2
Other investments		12			11			14
Total interest income		760			811			892
Interest expense
Deposits		110			124			212
Federal funds purchased and securities sold under repurchase agreements		1			2			1
Bank notes and other short-term borrowings		3			3			3
Long-term debt		49			53			51
Total interest expense		163			182			267
Net interest income		597			629			625
Provision (credit) for loan and lease losses		(40	)		(97	)		413
Net interest income (expense) after provision for loan and lease losses		637			726			212
Noninterest income
Trust and investment services income		110			108			114
Service charges on deposit accounts		68			70			76
Operating lease income		35			42			47
Letter of credit and loan fees		55			51			40
Corporate-owned life insurance income		27			42			28
Net securities gains (losses) (a)		(1	)		12			3
Electronic banking fees		30			31			27
Gains on leased equipment		4			6			8
Insurance income		15			12			18
Net gains (losses) from loan sales		19			29			4
Net gains (losses) from principal investing		35			(6	)		37
Investment banking and capital markets income (loss)		43			63			9
Other income		17			66			39
Total noninterest income		457			526			450
Noninterest expense
Personnel		371			365			362
Net occupancy		65			70			66
Operating lease expense		28			28			39
Computer processing		42			45			47
Business services and professional fees		38			56			38
FDIC assessment		29			27			37
OREO expense, net		10			10			32
Equipment		26			26			24
Marketing		10			22			13
Provision (credit) for losses on lending-related commitments		(4	)		(26	)		(2	)
Other expense		86			121			129
Total noninterest expense		701			744			785
Income (loss) from continuing operations before income taxes		393			508			(123	)
Income taxes		111			172			(82	)
Income (loss) from continuing operations		282			336			(41	)
Income (loss) from discontinued operations, net of taxes		(11	)		(13	)		2
Net income (loss)		271			323			(39	)
Less: Net income (loss) attributable to noncontrolling interests		8			3			16
Net income (loss) attributable to Key	$	263		$	320		$	(55	)
Income (loss) from continuing operations attributable to Key common shareholders	$	184		$	292		$	(98	)
Net income (loss) attributable to Key common shareholders		173			279			(96	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.21		$	.33		$	(.11	)
Income (loss) from discontinued operations, net of taxes		(.01	)		(.02	)		—
Net income (loss) attributable to Key common shareholders		.20			.32			(.11	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.21		$	.33		$	(.11	)
Income (loss) from discontinued operations, net of taxes		(.01	)		(.02	)		—
Net income (loss) attributable to Key common shareholders		.19			.32			(.11	)
Cash dividends declared per common share	$	.01		$	.01		$	.01
Weighted-average common shares outstanding (000)		881,894			875,501			874,386
Weighted-average common shares and potential common shares outstanding (000) (b)		887,836			900,263			874,386

(a)	For the three months ended March 31, 2011, December 31, 2010 and March 31, 2010, Key did not have any impairment losses related to securities.
(b)	Assumes conversion of stock options and/or Preferred Series A shares, as applicable.