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): July 19, 2011

(Exact name of registrant as specified in its charter)

Ohio	1-11302	34-6542451
(State or other jurisdiction of incorporation)	Commission File Number	(I.R.S. Employer Identification No.)

127 Public Square, Cleveland, Ohio	44114-1306
(Address of principal executive offices)	(Zip Code)

(216) 689-3000

Registrant’s telephone number, including area code:

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

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

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

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

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

TABLE OF CONTENTS

8-K - FORM 8-K EARNINGS RELEASE

INDEX TO EXHIBITS:

EX-99.2 (Supplemental Information Package in Connection With Financial Results)

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

On July 19, 2011, KeyCorp issued a press release announcing its financial results for the three and six-month periods ended June 30, 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 July 19, 2011, KeyCorp held a conference call and webcast to facilitate a discussion of its financial condition at June 30, 2011, and its financial results for the three and six-month periods ended June 30, 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 July 19, 2011, announcing financial results for the three and six-month periods ended June 30, 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, and its Quarterly Report on Form 10-Q for the period ended March 31, 2011, which have been filed with the Securities and Exchange Commission and are 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: July 19, 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	David Reavis
	216.689.0520	216.471.2886
	Vernon_Patterson@KeyBank.com	David_Reavis@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 SECOND QUARTER AND FIRST HALF 2011

NET INCOME OF $243 MILLION AND $427 MILLION

• Net income from continuing operations of $243 million, or $.26 per common share, for the second quarter of 2011

• Net income from continuing operations of $427 million, or $.46 per common share, for the first half of 2011

• Net interest margin at 3.19% for the second quarter of 2011

• Nonperforming loans declined to $842 million, or 1.76% of period-end loans

• Nonperforming assets declined to $950 million

• Loan loss reserve at 2.57% of total period-end loans and 146% of nonperforming loans at June 30, 2011

• Net charge-offs declined $59 million from the first quarter of 2011 to $134 million, or 1.11% of average loan balances

• Tier 1 common equity and Tier 1 risk-based capital ratios estimated at 11.01% and 13.76%, respectively, at June 30, 2011

CLEVELAND, July 19, 2011 – KeyCorp (NYSE: KEY) today announced second quarter net income from continuing operations attributable to Key common shareholders of $243 million, or $.26 per common share. Key’s second quarter 2011 results compare to net income from continuing operations attributable to Key common shareholders of $56 million, or $.06 per common share, for the second quarter of 2010. The results for second quarter 2011 reflect an improvement in noninterest expense and lower credit costs from the same period one year ago. Second quarter 2011 net income attributable to Key common shareholders was $234 million compared to net income attributable to Key common shareholders of $29 million for the same quarter one year ago.

For the six-month period ended June 30, 2011, net income from continuing operations attributable to Key common shareholders was $427 million, or $.46 per common share, compared to a net loss from continuing operations attributable to Key common shareholders of $42 million, or $.05 per common share, for the same period one year ago. Net income attributable to Key common shareholders for the six-month period ended June 30, 2011, was

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 2

$407 million compared to a net loss attributable to Key common shareholders of $67 million for the same period one year ago.

During the second quarter of 2011, the Company continued to benefit from improved asset quality. Nonperforming assets declined $1.1 billion, and nonperforming loans decreased by $861 million from the year-ago quarter to $950 million and $842 million, respectively. Net charge-offs declined $301 million from the second quarter of 2010 to $134 million, or 1.11%, of average loan balances for the second quarter of 2011.

“Key’s second quarter results represent another step forward for our company,” said Chairman and Chief Executive Officer Beth Mooney. “Our results reflected continued improvement in credit quality, disciplined expense management and continued execution of our business plan. We were also encouraged by the growth in our commercial, financial and agricultural loan portfolio, which benefited from the strategic alignment between our relationship-focused Community Bank and the deep industry expertise and advisory capabilities of our Corporate Bank.”

Mooney continued: “We believe Key is well positioned for growth based on our strong capital, balance sheet and liquidity. By continuing to focus on meeting our clients’ borrowing needs, Key originated approximately $9.5 billion in new or renewed loans and commitments to consumers and businesses during the second quarter of 2011.”

At June 30, 2011, Key’s estimated Tier 1 common equity and Tier 1 risk-based capital ratios were 11.01% and 13.76%, compared to 10.74% and 13.48%, respectively, at March 31, 2011. The Board of Directors approved a quarterly dividend increase to $0.03 per common share for the second quarter of 2011.

As previously reported, Key completed the repurchase of the $2.5 billion of Fixed-Rate Perpetual Preferred Stock, Series B and corresponding warrant issued to the U.S. Treasury Department. As a result of the repurchase, the Company recorded a $49 million one-time deemed dividend in the first quarter of 2011 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 resulted in the elimination of quarterly dividends of $31 million and discount amortization of $4 million, or $140 million on an annual basis, related to these preferred shares. In total, Key paid $2.867 billion to the U.S. Treasury during the investment period in the form of dividends, principal and repurchase of the warrant, resulting in a return to the U.S. Treasury of $367 million above the initial investment of $2.5 billion on November 14, 2008.

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 3

The following table shows Key’s continuing and discontinued operating results for the comparative quarters and for the six-month periods ended June 30, 2011 and 2010.

Results of Operations

	Three months ended									Six months ended
in millions, except per share amounts	6-30-11			3-31-11			6-30-10			6-30-11			6-30-10
Summary of operations
Income (loss) from continuing operations attributable to Key	$	249		$	274		$	97		$	523		$	40
Income (loss) from discontinued operations, net of taxes (a)		(9	)		(11	)		(27	)		(20	)		(25	)
Net income (loss) attributable to Key	$	240		$	263		$	70		$	503		$	15
Income (loss) from continuing operations attributable to Key	$	249		$	274		$	97		$	523		$	40
Less: Dividends on Series A Preferred Stock		6			6			6			12			12
Cash dividends on Series B Preferred Stock		—			31			31			31			62
Amortization of discount on Series B Preferred Stock (b)		—			53			4			53			8
Income (loss) from continuing operations attributable to Key common shareholders		243			184			56			427			(42	)
Income (loss) from discontinued operations, net of taxes (a)		(9	)		(11	)		(27	)		(20	)		(25	)
Net income (loss) attributable to Key common shareholders	$	234		$	173		$	29		$	407		$	(67	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.21		$	.06		$	.46		$	(.05	)
Income (loss) from discontinued operations, net of taxes (a)		(.01	)		(.01	)		(.03	)		(.02	)		(.03	)
Net income (loss) attributable to Key common shareholders (c)	$	.25		$	.19		$	.03		$	.44		$	(.08	)

(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 six-month period ended June 30, 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 $570 million for the second quarter of 2011, and the net interest margin was 3.19%. These results compare to taxable-equivalent net interest income of $623 million and a net interest margin of 3.17% for the second quarter of 2010. The decrease in net interest income is attributable to a decline in earning assets, partially offset by lower funding costs resulting from continued improvement in the mix of deposits. This improved mix of deposits results from a reduction in the level of higher costing certificates of deposit.

Compared to the first quarter of 2011, taxable-equivalent net interest income decreased by $34 million, and the net interest margin declined six basis points. The decline in the net interest margin and net interest income reflects the impact of a $3.2 billion decline in average earning assets resulting from the repayment of the TARP preferred stock at the end of the first quarter and the movement of approximately $1.5 billion of escrow deposits during the first quarter of 2011. These escrow deposits were moved as a result of a change in the short-term ratings of KeyBank National Association by Moody’s in November 2010.

Key’s noninterest income was $454 million for the second quarter of 2011, compared to $492 million for the year-ago quarter. Net gains (losses) from loan sales decreased $14 million from the second quarter of 2010. In addition, operating lease income and service charges on deposit accounts both declined $11 million compared to the same period one year ago. Consistent with Key’s expectations, the reduction in service charges on deposit accounts is a result of the changes associated with implementing Regulation E in the third quarter of

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

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2010. Partially offsetting this decline in noninterest income from the second quarter of 2010 were increases in investment banking and capital markets income of $11 million and letter of credit and loan fees of $5 million.

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	2Q11		1Q11		4Q10			3Q10		2Q10
Trust and investment services income	$	113	$	110	$	108		$	110	$	112
Service charges on deposit accounts		69		68		70			75		80
Operating lease income		32		35		42			41		43
Letter of credit and loan fees		47		55		51			61		42
Corporate-owned life insurance income		28		27		42			39		28
Electronic banking fees		33		30		31			30		29
Insurance income		14		15		12			15		19
Net gains (losses) from loan sales		11		19		29			18		25
Net gains (losses) from principal investing		17		35		(6	)		18		17
Investment banking and capital markets income (loss)		42		43		63			42		31

Compared to the first quarter of 2011, noninterest income decreased by $3 million. The decline was a result of lower net gains (losses) from principal investing (including results attributable to noncontrolling interests) of $18 million, letter of credit and loan fees of $8 million, and net gains (losses) from loan sales of $8 million. These decreases were partially offset by increases in various other income components.

Key’s noninterest expense was $680 million for the second quarter of 2011, compared to $769 million for the same period last year. Gains on sales of other real estate owned (“OREO”) properties resulted in a credit of $3 million in OREO expense compared to expense of $22 million one year ago. Also contributing to the decline in noninterest expense from the second quarter of 2010 were decreases of $24 million in FDIC deposit insurance premiums, $10 million in operating lease expense, and $13 million in various miscellaneous expenses.

Compared to the first quarter of 2011, noninterest expense decreased by $21 million. Decreases in noninterest expense included $20 million in FDIC deposit insurance premiums, $13 million in OREO expense and $8 million in provision (credit) for losses on lending-related commitments. These decreases were partially offset by increases in personnel expense of $9 million and various miscellaneous expenses of $11 million.

ASSET QUALITY

Key’s provision for loan and lease losses was a credit of $8 million for the second quarter of 2011, compared to a charge of $228 million for the year-ago quarter and a credit of $40 million for the first quarter of 2011. Key’s allowance for loan and lease losses was $1.2 billion, or 2.57% of total period-end loans, at June 30, 2011, compared to 2.83% at March 31, 2011, and 4.16% at June 30, 2010.

KeyCorp Reports Second Quarter 2011 Results

July 19, 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	2Q11			1Q11			4Q10			3Q10			2Q10
Net loan charge-offs	$	134		$	193		$	256		$	357		$	435
Net loan charge-offs to average loans		1.11	%		1.59	%		2.00	%		2.69	%		3.18	%
Allowance for loan and lease losses	$	1,230		$	1,372		$	1,604		$	1,957		$	2,219
Allowance for credit losses (a)		1,287			1,441			1,677			2,056			2,328
Allowance for loan and lease losses to period-end loans		2.57	%		2.83	%		3.20	%		3.81	%		4.16	%
Allowance for credit losses to period-end loans		2.69			2.97			3.35			4.00			4.36
Allowance for loan and lease losses to nonperforming loans		146.08			155.03			150.19			142.64			130.30
Allowance for credit losses to nonperforming loans		152.85			162.82			157.02			149.85			136.70
Nonperforming loans at period end	$	842		$	885		$	1,068		$	1,372		$	1,703
Nonperforming assets at period end		950			1,089			1,338			1,801			2,086
Nonperforming loans to period-end portfolio loans		1.76	%		1.82	%		2.13	%		2.67	%		3.19	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		1.98			2.23			2.66			3.48			3.88

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

Net loan charge-offs for the quarter totaled $134 million, or 1.11%, of average loans. These results compare to $435 million, or 3.18%, for the same period last year and $193 million, or 1.59%, for the previous quarter. Net loan charge-offs have declined for the last six 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	2Q11			1Q11			4Q10			3Q10			2Q10
Commercial, financial and agricultural	$	36		$	32		$	80		$	136		$	136
Real estate — commercial mortgage		12			43			52			46			126
Real estate — construction		24			30			28			76			75
Commercial lease financing		4			11			12			16			14
Total commercial loans		76			116			172			274			351
Home equity — Key Community Bank		27			24			26			35			25
Home equity — Other		10			14			13			13			16
Marine		4			19			17			12			19
Other		17			20			28			23			24
Total consumer loans		58			77			84			83			84
Total net loan charge-offs	$	134		$	193		$	256		$	357		$	435
Net loan charge-offs to average loans from continuing operations		1.11	%		1.59	%		2.00	%		2.69	%		3.18	%
Net loan charge-offs from discontinued operations — education lending business	$	32		$	35		$	32		$	22		$	31

Compared to the first quarter of 2011, net loan charge-offs in the commercial loan portfolio decreased by $40 million which was primarily attributable to a decline in the real estate – commercial mortgage category. As shown in the table on page 6, Key’s exit loan portfolio accounted for $25 million, or 18.7%, of Key’s total net loan charge-offs for the second quarter of 2011. Net charge-offs in the exit loan portfolio decreased by $16 million from the first quarter of 2011, primarily driven by an improvement in the marine loan portfolio.

At June 30, 2011, Key’s nonperforming loans totaled $842 million and represented 1.76% of period-end portfolio loans, compared to 1.82% at March 31, 2011, and 3.19% at June 30, 2010. Nonperforming assets at June 30, 2011, totaled $950 million and represented 1.98% of portfolio loans and OREO and other nonperforming assets, compared to 2.23% at March 31,

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

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2011, and 3.88% at June 30, 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	2Q11			1Q11			4Q10			3Q10			2Q10
Commercial, financial and agricultural	$	213		$	221		$	242		$	335		$	489
Real estate — commercial mortgage		230			245			255			362			404
Real estate — construction		131			146			241			333			473
Commercial lease financing		41			42			64			84			83
Total consumer loans		227			231			266			258			254
Total nonperforming loans		842			885			1,068			1,372			1,703
Nonperforming loans held for sale		42			86			106			230			221
OREO and other nonperforming assets		66			118			164			199			162
Total nonperforming assets	$	950		$	1,089		$	1,338		$	1,801		$	2,086
Restructured loans — accruing and nonaccruing (a)	$	252		$	242		$	297		$	360		$	343
Restructured loans included in nonperforming loans (a)		144			136			202			228			213
Nonperforming assets from discontinued operations — education lending business		21			22			40			38			40
Nonperforming loans to period-end portfolio loans		1.76	%		1.82	%		2.13	%		2.67	%		3.19	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		1.98			2.23			2.66			3.48			3.88

(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 second quarter of 2011, representing the seventh consecutive quarterly decline. As shown in the following table, Key’s exit loan portfolio accounted for $126 million, or 13.3%, of Key’s total nonperforming assets at June 30, 2011.

The following table shows the composition of Key’s exit loan portfolio at June 30, 2011, and March 31, 2011, the net charge-offs recorded on this portfolio for the first and second quarters of 2011, and the nonperforming status of these loans at June 30, 2011, and March 31, 2011.

Exit Loan Portfolio from Continuing Operations

	Balance Outstanding				Change 6-30-11 vs.			Net Loan Charge-offs				Balance on Nonperforming Status
in millions	6-30-11		3-31-11		3-31-11			2Q11		1Q11		6-30-11		3-31-11
Residential properties — homebuilder	$	62	$	87	$	(25	)	$	1	$	2	$	33	$	44
Marine and RV floor plan		122		150		(28	)		1		3		31		35
Commercial lease financing (a)		1,826		1,922		(96	)		7		2		19		21
Total commercial loans		2,010		2,159		(149	)		9		7		83		100
Home equity — Other		595		627		(32	)		10		14		11		13
Marine		1,989		2,112		(123	)		4		19		32		31
RV and other consumer		142		150		(8	)		2		1		—		1
Total consumer loans		2,726		2,889		(163	)		16		34		43		45
Total exit loans in loan portfolio	$	4,736	$	5,048	$	(312	)	$	25	$	41	$	126	$	145
Discontinued operations — education lending business (not included in exit loans above) (b)	$	6,261	$	6,318	$	(57	)	$	32	$	35	$	21	$	22

(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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July 19, 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 June 30, 2011.

Capital Ratios

	6-30-11			3-31-11			12-31-10			9-30-10			6-30-10
Tier 1 common equity (a), (b)		11.01	%		10.74	%		9.34	%		8.61	%		8.07	%
Tier 1 risk-based capital (a)		13.76			13.48			15.16			14.30			13.62
Total risk-based capital (a)		17.68			17.38			19.12			18.22			17.80
Tangible common equity to tangible assets (b)		9.67			9.16			8.19			8.00			7.65

(a) 6-30-11 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 June 30, 2011, Key’s estimated Tier 1 common equity and Tier 1 risk-based capital ratios stood at 11.01% and 13.76%, respectively. In addition, the tangible common equity ratio was 9.67% at June 30, 2011.

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	2Q11			1Q11		4Q10		3Q10			2Q10
Shares outstanding at beginning of period		953,926			880,608		880,328		880,515			879,052
Common shares issued		—			70,621		—		—			—
Shares reissued (returned) under employee benefit plans		(104	)		2,697		280		(187	)		1,463
Shares outstanding at end of period		953,822			953,926		880,608		880,328			880,515

During the first quarter of 2011, Key successfully completed 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 $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.

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 Second Quarter 2011 Results

July 19, 2011

Page 8

Major Business Segments

								Percent change 2Q11 vs.
dollars in millions	2Q11		1Q11			2Q10		1Q11			2Q10
Revenue from continuing operations (TE)
Key Community Bank	$	559	$	565		$	602		(1.1	)%		(7.1	)%
Key Corporate Bank		389		403			406		(3.5	)		(4.2	)
Other Segments		70		96			94		(27.1	)		(25.5	)
Total Segments		1,018		1,064			1,102		(4.3	)		(7.6	)
Reconciling Items		6		(3	)		13		N/M			(53.8	)
Total	$	1,024	$	1,061		$	1,115		(3.5	)%		(8.2	)%
Income (loss) from continuing operations attributable to Key
Key Community Bank	$	34	$	81		$	31		(58.0	)%		9.7	%
Key Corporate Bank		163		125			38		30.4			328.9
Other Segments		43		58			28		(25.9	)		53.6
Total Segments		240		264			97		(9.1	)		147.4
Reconciling Items		9		10			—		(10.0	)		N/M
Total	$	249	$	274		$	97		(9.1	)%		156.7	%

TE = Taxable Equivalent, N/M = Not Meaningful

Key Community Bank

									Percent change 2Q11 vs.
dollars in millions	2Q11			1Q11		2Q10			1Q11			2Q10
Summary of operations
Net interest income (TE)	$	374		$	378	$	408			(1.1	)%		(8.3	)%
Noninterest income		185			187		194			(1.1	)		(4.6	)
Total revenue (TE)		559			565		602			(1.1	)		(7.1	)
Provision (credit) for loan and lease losses		79			11		121			618.2			(34.7	)
Noninterest expense		448			445		452			.7			(.9	)
Income (loss) before income taxes (TE)		32			109		29			(70.6	)		10.3
Allocated income taxes and TE adjustments		(2	)		28		(2	)		(107.1	)		—
Net income (loss) attributable to Key	$	34		$	81	$	31			(58.0	)%		9.7	%
Average balances
Loans and leases	$	26,242		$	26,312	$	27,217			(.3	)%		(3.6	)%
Total assets		29,688			29,739		30,303			(.2	)		(2.0	)
Deposits		47,719			48,108		50,406			(.8	)		(5.3	)
Assets under management at period end	$	19,787		$	20,057	$	16,980			(1.3	)%		16.5	%

TE = Taxable Equivalent, N/M = Not Meaningful

Additional Key Community Bank Data										Percent change 2Q11 vs.
dollars in millions	2Q11			1Q11			2Q10			1Q11			2Q10
Average deposit balances
NOW and money market deposit accounts	$	21,864		$	21,482		$	19,418			1.8	%		12.6	%
Savings deposits		1,976			1,901			1,870			3.9			5.7
Certificates of deposit ($100,000 or more)		4,080			4,513			6,597			(9.6	)		(38.2	)
Other time deposits		7,315			7,959			11,248			(8.1	)		(35.0	)
Deposits in foreign office		411			398			421			3.3			(2.4	)
Noninterest-bearing deposits		12,073			11,855			10,852			1.8			11.3
Total deposits	$	47,719		$	48,108		$	50,406			(.8	)%		(5.3	)%
Home equity loans
Average balance	$	9,439		$	9,454		$	9,837
Weighted-average loan-to-value ratio (at date of origination)		70	%		70	%		70	%
Percent first lien positions		53			53			52
Other data
Branches		1,048			1,040			1,019
Automated teller machines		1,564			1,547			1,511

Key Community Bank Summary of Operations

Key Community Bank recorded net income attributable to Key of $34 million for the second quarter of 2011, compared to net income attributable to Key of $31 million for the year-ago quarter. Decreases in the provision for loan and lease losses and noninterest expenses were offset by lower net interest income and noninterest income in the second quarter of 2011.

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 9

Taxable-equivalent net interest income declined by $34 million, or 8%, from the second quarter of 2010, due to declines in average earning assets and average deposits. Average earning assets decreased by $1 billion, or 4%, from the year-ago quarter, reflecting reductions in the commercial and home equity loan portfolios. Average deposits declined by $3 billion, or 5%, as higher-costing certificates of deposit mature, partially offset by growth in noninterest-bearing deposits and NOW and money market deposit accounts.

Noninterest income decreased by $9 million, or 5%, from the year-ago quarter, primarily due to lower service charges on deposits of $8 million from the implementation of Regulation E.

The provision for loan and lease losses declined by $42 million, or 35%, compared to the second 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 $4 million, or 1%, from the year-ago quarter. The decrease was driven by reductions in FDIC deposit insurance premiums of $20 million, offset by increases in personnel expense resulting from additional staffing for new branches and commercial lenders and various other operating costs.

Key Corporate Bank

									Percent change 2Q11 vs.
dollars in millions	2Q11			1Q11			2Q10		1Q11			2Q10
Summary of operations
Net interest income (TE)	$	174		$	185		$	198		(5.9	)%		(12.1	)%
Noninterest income		215			218			208		(1.4	)		3.4
Total revenue (TE)		389			403			406		(3.5	)		(4.2	)
Provision (credit) for loan and lease losses		(76	)		(21	)		99		N/M			(176.8	)
Noninterest expense		206			228			249		(9.6	)		(17.3	)
Income (loss) before income taxes (TE)		259			196			58		32.1			346.6
Allocated income taxes and TE adjustments		95			72			20		31.9			375.0
Net income (loss)		164			124			38		32.3			331.6
Less: Net income (loss) attributable to noncontrolling interests		1			(1	)		—		N/M			N/M
Net income (loss) attributable to Key	$	163		$	125		$	38		30.4	%		328.9	%
Average balances
Loans and leases	$	17,168		$	17,677		$	20,949		(2.9	)%		(18.0	)%
Loans held for sale		302			275			381		9.8			(20.7	)
Total assets		21,468			21,747			24,789		(1.3	)		(13.4	)
Deposits		10,195			11,282			12,391		(9.6	)		(17.7	)
Assets under management at period end	$	39,466		$	41,461		$	41,882		(4.8	)%		(5.8	)%

TE = Taxable Equivalent, N/M = Not Meaningful

Key Corporate Bank Summary of Operations

Key Corporate Bank recorded net income attributable to Key of $163 million for the second quarter of 2011, compared to net income attributable to Key of $38 million for the same period one year ago. This improvement in the second quarter of 2011 was a result of a substantial decrease in the provision for loan and lease losses as net charge-offs significantly declined between periods. Noninterest expense also decreased from the second quarter of 2010.

Taxable-equivalent net interest income decreased by $24 million, or 12%, compared to the second quarter of 2010, due to lower average earning assets and average deposits. Average earning assets decreased by $3.9 billion, or 18%, from the year-ago quarter. Of this decrease, $3.7 billion was in the Real Estate Capital line of business as liquidity returned to the market for commercial real estate assets. Average deposits declined by $2.2 billion, or 18%, from one year ago primarily as a result of the movement of $1.5 billion in escrow balances within the Real Estate Capital line of business in the first quarter of 2011.

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 10

Noninterest income increased by $7 million, or 3%, from the second quarter of 2010. Contributing to the growth in noninterest income were increases in letter of credit and loan fees of $7 million and mortgage banking fees of $6 million. This improvement was partially offset by declines in operating lease revenue of $5 million and service charges on deposit accounts of $3 million.

The provision for loan and lease losses in the second quarter of 2011 was a credit of $76 million compared to a charge of $99 million for the same period one year ago. Key Corporate Bank continued to experience improved asset quality for the seventh quarter in a row.

Noninterest expense decreased by $43 million, or 17%, from the second quarter of 2010 due in part to a $25 million decline in OREO expense. Also contributing to the improvement were decreases of $7 million in the provision for losses on lending-related commitments, $9 million in corporate support costs, and $4 million in operating lease expense. These improvements were partially offset by an increase in personnel expense of $6 million.

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 $43 million for the second quarter of 2011, compared to net income attributable to Key of $28 million for the same period last year. These results are primarily attributable to a decrease in the provision for loan and lease losses of $17 million.

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 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.

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 11

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 $89 billion at June 30, 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 and 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 Second Quarter 2011 Results

July 19, 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 Tuesday, July 19, 2011. An audio replay of the call will be available through July 26, 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, and its Quarterly Report on Form 10-Q for the period ended March 31, 2011, which have been filed with the Securities and Exchange Commission and are 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.

*****

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 13

Financial Highlights

(dollars in millions, except per share amounts)

	Three months ended
	6-30-11			3-31-11			6-30-10
Summary of operations
Net interest income (TE)	$	570		$	604		$	623
Noninterest income		454			457			492
Total revenue (TE)		1,024			1,061			1,115
Provision (credit) for loan and lease losses		(8	)		(40	)		228
Noninterest expense		680			701			769
Income (loss) from continuing operations attributable to Key		249			274			97
Income (loss) from discontinued operations, net of taxes (b)		(9	)		(11	)		(27	)
Net income (loss) attributable to Key		240			263			70
Income (loss) from continuing operations attributable to Key common shareholders	$	243		$	184		$	56
Income (loss) from discontinued operations, net of taxes (b)		(9	)		(11	)		(27	)
Net income (loss) attributable to Key common shareholders		234			173			29
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.21		$	.06
Income (loss) from discontinued operations, net of taxes (b)		(.01	)		(.01	)		(.03	)
Net income (loss) attributable to Key common shareholders		.25			.20			.03
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.26			.21			.06
Income (loss) from discontinued operations, net of taxes — assuming dilution (b)		(.01	)		(.01	)		(.03	)
Net income (loss) attributable to Key common shareholders — assuming dilution		.25			.19			.03
Cash dividends paid		.03			.01			.01
Book value at period end		9.88			9.58			9.19
Tangible book value at period end		8.90			8.59			8.10
Market price at period end		8.33			8.88			7.69
Performance ratios
From continuing operations:
Return on average total assets		1.23	%		1.32	%		.44	%
Return on average common equity		10.51			8.75			2.84
Net interest margin (TE)		3.19			3.25			3.17
From consolidated operations:
Return on average total assets		1.10	%		1.18	%		.30	%
Return on average common equity		10.12			8.23			1.47
Net interest margin (TE)		3.11			3.16			3.12
Loan to deposit (d)		86.10			90.76			93.43
Capital ratios at period end
Key shareholders’ equity to assets		10.95	%		10.42	%		11.49	%
Tangible Key shareholders’ equity to tangible assets		10.00			9.48			10.58
Tangible common equity to tangible assets (a)		9.67			9.16			7.65
Tier 1 common equity (a), (c)		11.01			10.74			8.07
Tier 1 risk-based capital (c)		13.76			13.48			13.62
Total risk-based capital (c)		17.68			17.38			17.80
Leverage (c)		12.06			11.56			12.09
Asset quality — from continuing operations
Net loan charge-offs	$	134		$	193		$	435
Net loan charge-offs to average loans		1.11	%		1.59	%		3.18	%
Allowance for loan and lease losses	$	1,230		$	1,372		$	2,219
Allowance for credit losses		1,287			1,441			2,328
Allowance for loan and lease losses to period-end loans		2.57	%		2.83	%		4.16	%
Allowance for credit losses to period-end loans		2.69			2.97			4.36
Allowance for loan and lease losses to nonperforming loans		146.08			155.03			130.30
Allowance for credit losses to nonperforming loans		152.85			162.82			136.70
Nonperforming loans at period end	$	842		$	885		$	1,703
Nonperforming assets at period end		950			1,089			2,086
Nonperforming loans to period-end portfolio loans		1.76	%		1.82	%		3.19	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		1.98			2.23			3.88
Trust and brokerage assets
Assets under management	$	59,253		$	61,518		$	58,862
Nonmanaged and brokerage assets		29,472			29,024			27,189
Other data
Average full-time equivalent employees		15,349			15,301			15,665
Branches		1,048			1,040			1,019
Taxable-equivalent adjustment	$	6		$	7		$	6

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 14

Financial Highlights (continued)

(dollars in millions, except per share amounts)

	Six months ended
	6-30-11			6-30-10
Summary of operations
Net interest income (TE)	$	1,174		$	1,255
Noninterest income		911			942
Total revenue (TE)		2,085			2,197
Provision (credit) for loan and lease losses		(48	)		641
Noninterest expense		1,381			1,554
Income (loss) from continuing operations attributable to Key		523			40
Income (loss) from discontinued operations, net of taxes (b)		(20	)		(25	)
Net income (loss) attributable to Key		503			15
Income (loss) from continuing operations attributable to Key common shareholders	$	427		$	(42	)
Income (loss) from discontinued operations, net of taxes (b)		(20	)		(25	)
Net income (loss) attributable to Key common shareholders		407			(67	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.47		$	(.05	)
Income (loss) from discontinued operations, net of taxes (b)		(.02	)		(.03	)
Net income (loss) attributable to Key common shareholders		.44			(.08	)
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.46			(.05	)
Income (loss) from discontinued operations, net of taxes — assuming dilution (b)		(.02	)		(.03	)
Net income (loss) attributable to Key common shareholders — assuming dilution		.44			(.08	)
Cash dividends paid		.04			.02
Performance ratios
From continuing operations:
Return on average total assets		1.27	%		.09	%
Return on average common equity		9.67			(1.06	)
Net interest margin (TE)		3.22			3.18
From consolidated operations:
Return on average total assets		1.14	%		.03	%
Return on average common equity		9.22			(1.70	)
Net interest margin (TE)		3.14			3.13
Asset quality — from continuing operations
Net loan charge-offs	$	327		$	957
Net loan charge-offs to average loans		1.35	%		3.43	%
Other data
Average full-time equivalent employees		15,326			15,718
Taxable-equivalent adjustment	$	13		$	13

(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) 6-30-11 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 Second Quarter 2011 Results

July 19, 2011

Page 15

GAAP to Non-GAAP Reconciliations

(dollars in millions, except per share amounts)

The table below presents the computations of certain financial measures related to “tangible common equity,” “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
	6-30-11			3-31-11			6-30-10
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP)	$	9,719		$	9,425		$	10,820
Less:    Intangible assets		936			937			959
Preferred Stock, Series B		—			—			2,438
Preferred Stock, Series A		291			291			291
Tangible common equity (non-GAAP)	$	8,492		$	8,197		$	7,132
Total assets (GAAP)	$	88,782		$	90,438		$	94,167
Less:    Intangible assets		936			937			959
Tangible assets (non-GAAP)	$	87,846		$	89,501		$	93,208
Tangible common equity to tangible assets ratio (non-GAAP)		9.67	%		9.16	%		7.65	%
Tier 1 common equity at period end
Key shareholders’ equity (GAAP)	$	9,719		$	9,425		$	10,820
Qualifying capital securities		1,791			1,791			1,791
Less:    Goodwill		917			917			917
Accumulated other comprehensive income (loss) (a)		47			(93	)		126
Other assets (b)		157			130			469
Total Tier 1 capital (regulatory)		10,389			10,262			11,099
Less:    Qualifying capital securities		1,791			1,791			1,791
Preferred Stock, Series B		—			—			2,438
Preferred Stock, Series A		291			291			291
Total Tier 1 common equity (non-GAAP)	$	8,307		$	8,180		$	6,579
Net risk-weighted assets (regulatory) (b), (c)	$	75,476		$	76,129		$	81,498
Tier 1 common equity ratio (non-GAAP) (c)		11.01	%		10.74	%		8.07	%
Pre-provision net revenue
Net interest income (GAAP)	$	564		$	597		$	617
Plus:     Taxable-equivalent adjustment		6			7			6
Noninterest income		454			457			492
Less:    Noninterest expense		680			701			769
Pre-provision net revenue from continuing operations (non-GAAP)	$	344		$	360		$	346

(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 $75 million at June 30, 2011, $47 million at March 31, 2011 and $354 million at June 30, 2010, disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments.

(c) 6-30-11 amount is estimated.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 16

Consolidated Balance Sheets

(dollars in millions)

	6-30-11			3-31-11			6-30-10
Assets
Loans	$	47,840		$	48,552		$	53,334
Loans held for sale		381			426			699
Securities available for sale		18,680			19,448			19,773
Held-to-maturity securities		19			19			19
Trading account assets		769			1,041			1,014
Short-term investments		4,563			3,705			1,984
Other investments		1,195			1,402			1,415
Total earning assets		73,447			74,593			78,238
Allowance for loan and lease losses		(1,230	)		(1,372	)		(2,219	)
Cash and due from banks		853			540			591
Premises and equipment		919			906			872
Operating lease assets		453			491			589
Goodwill		917			917			917
Other intangible assets		19			20			42
Corporate-owned life insurance		3,208			3,187			3,109
Derivative assets		900			1,005			1,153
Accrued income and other assets		2,968			3,758			4,061
Discontinued assets		6,328			6,393			6,814
Total assets	$	88,782		$	90,438		$	94,167
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	26,277		$	26,177		$	25,526
Savings deposits		1,973			1,964			1,883
Certificates of deposit ($100,000 or more)		4,939			5,314			8,476
Other time deposits		7,167			7,597			10,430
Total interest-bearing deposits		40,356			41,052			46,315
Noninterest-bearing deposits		19,318			16,495			15,226
Deposits in foreign office — interest-bearing		736			3,263			834
Total deposits		60,410			60,810			62,375
Federal funds purchased and securities sold under repurchase agreements		1,668			2,232			2,836
Bank notes and other short-term borrowings		511			685			819
Derivative liabilities		991			1,106			1,321
Accrued expense and other liabilities		1,518			1,931			2,154
Long-term debt		10,997			11,048			10,451
Discontinued liabilities		2,950			2,929			3,139
Total liabilities		79,045			80,741			83,095
Equity
Preferred stock, Series A		291			291			291
Preferred stock, Series B		—			—			2,438
Common shares		1,017			1,017			946
Common stock warrant		—			87			87
Capital surplus		4,191			4,167			3,701
Retained earnings		5,926			5,721			5,118
Treasury stock, at cost		(1,815	)		(1,823	)		(1,914	)
Accumulated other comprehensive income (loss)		109			(35	)		153
Key shareholders’ equity		9,719			9,425			10,820
Noncontrolling interests		18			272			252
Total equity		9,737			9,697			11,072
Total liabilities and equity	$	88,782		$	90,438		$	94,167
Common shares outstanding (000)		953,822			953,926			880,515

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 17

Consolidated Statements of Income

(dollars in millions, except per share amounts)

	Three months ended									Six months ended
	6-30-11			3-31-11			6-30-10			6-30-11			6-30-10
Interest income
Loans	$	551		$	570		$	677		$	1,121		$	1,387
Loans held for sale		3			4			5			7			9
Securities available for sale		149			166			154			315			304
Held-to-maturity securities		1			—			—			1			1
Trading account assets		9			7			10			16			21
Short-term investments		1			1			2			2			4
Other investments		12			12			13			24			27
Total interest income		726			760			861			1,486			1,753
Interest expense
Deposits		100			110			188			210			400
Federal funds purchased and securities sold under repurchase agreements		2			1			2			3			3
Bank notes and other short-term borrowings		3			3			4			6			7
Long-term debt		57			49			50			106			101
Total interest expense		162			163			244			325			511
Net interest income		564			597			617			1,161			1,242
Provision (credit) for loan and lease losses		(8	)		(40	)		228			(48	)		641
Net interest income (expense) after provision for loan and lease losses		572			637			389			1,209			601
Noninterest income
Trust and investment services income		113			110			112			223			226
Service charges on deposit accounts		69			68			80			137			156
Operating lease income		32			35			43			67			90
Letter of credit and loan fees		47			55			42			102			82
Corporate-owned life insurance income		28			27			28			55			56
Net securities gains (losses) (a)		2			(1	)		(2	)		1			1
Electronic banking fees		33			30			29			63			56
Gains on leased equipment		5			4			2			9			10
Insurance income		14			15			19			29			37
Net gains (losses) from loan sales		11			19			25			30			29
Net gains (losses) from principal investing		17			35			17			52			54
Investment banking and capital markets income (loss)		42			43			31			85			40
Other income		41			17			66			58			105
Total noninterest income		454			457			492			911			942
Noninterest expense
Personnel		380			371			385			751			747
Net occupancy		62			65			64			127			130
Operating lease expense		25			28			35			53			74
Computer processing		42			42			47			84			94
Business services and professional fees		44			38			41			82			79
FDIC assessment		9			29			33			38			70
OREO expense, net		(3	)		10			22			7			54
Equipment		26			26			26			52			50
Marketing		10			10			16			20			29
Provision (credit) for losses on lending-related commitments		(12	)		(4	)		(10	)		(16	)		(12	)
Other expense		97			86			110			183			239
Total noninterest expense		680			701			769			1,381			1,554
Income (loss) from continuing operations before income taxes		346			393			112			739			(11	)
Income taxes		94			111			11			205			(71	)
Income (loss) from continuing operations		252			282			101			534			60
Income (loss) from discontinued operations, net of taxes		(9	)		(11	)		(27	)		(20	)		(25	)
Net income (loss)		243			271			74			514			35
Less: Net income (loss) attributable to noncontrolling interests		3			8			4			11			20
Net income (loss) attributable to Key	$	240		$	263		$	70		$	503		$	15
Income (loss) from continuing operations attributable to Key common shareholders	$	243		$	184		$	56		$	427		$	(42	)
Net income (loss) attributable to Key common shareholders		234			173			29			407			(67	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.21		$	.06		$	.47		$	(.05	)
Income (loss) from discontinued operations, net of taxes		(.01	)		(.01	)		(.03	)		(.02	)		(.03	)
Net income (loss) attributable to Key common shareholders		.25			.20			.03			.44			(.08	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.21		$	.06		$	.46		$	(.05	)
Income (loss) from discontinued operations, net of taxes		(.01	)		(.01	)		(.03	)		(.02	)		(.03	)
Net income (loss) attributable to Key common shareholders		.25			.19			.03			.44			(.08	)
Cash dividends declared per common share	$	.03		$	.01		$	.01		$	.04		$	.02
Weighted-average common shares outstanding (000)		947,565			881,894			874,664			914,911			874,526
Weighted-average common shares and potential common shares outstanding (000) (b)		951,747			887,836			874,664			919,968			874,526

(a) For the three months ended June 30, 2011 and March 31, 2011, Key did not have any impairment losses related to securities. For the three months ended June 30, 2010, Key had $4 million in impairment losses related to securities.

(b) Assumes conversion of stock options and/or Preferred Series A shares, as applicable.

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 18

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

(dollars in millions)

	Second Quarter 2011								First Quarter 2011								Second Quarter 2010
	Average Balance			Interest (a)		Yield/ Rate (a)			Average Balance			Interest (a)		Yield/ Rate (a)			Average Balance			Interest (a)		Yield/ Rate (a)
Assets
Loans: (b), (c)
Commercial, financial and agricultural	$	16,922		$	174		4.13	%	$	16,311		$	174		4.33	%	$	17,725		$	209		4.74	%
Real estate — commercial mortgage		8,460			95		4.47			9,238			104		4.58			10,354			124		4.78
Real estate — construction		1,760			19		4.44			2,031			20		3.99			3,773			41		4.31
Commercial lease financing		6,094			75		4.93			6,335			80		5.03			6,759			90		5.33
Total commercial loans		33,236			363		4.38			33,915			378		4.51			38,611			464		4.81
Real estate — residential mortgage		1,818			24		5.33			1,810			24		5.32			1,829			25		5.60
Home equity:
Key Community Bank		9,441			97		4.13			9,453			97		4.14			9,837			103		4.21
Other		611			12		7.66			647			12		7.60			773			15		7.62
Total home equity loans		10,052			109		4.35			10,100			109		4.36			10,610			118		4.45
Consumer other — Key Community Bank		1,151			27		9.39			1,157			28		9.89			1,145			33		11.57
Consumer other:
Marine		2,051			32		6.20			2,174			34		6.26			2,563			39		6.21
Other		146			3		7.81			156			3		7.91			195			4		7.80
Total consumer other		2,197			35		6.31			2,330			37		6.37			2,758			43		6.32
Total consumer loans		15,218			195		5.13			15,397			198		5.20			16,342			219		5.40
Total loans		48,454			558		4.61			49,312			576		4.72			54,953			683		4.99
Loans held for sale		376			3		3.72			390			4		3.52			516			5		3.50
Securities available for sale (b), (e)		19,005			149		3.19			21,159			166		3.18			17,285			154		3.63
Held-to-maturity securities (b)		19			—		10.72			19			1		11.54			22			—		11.46
Trading account assets		893			9		3.96			1,018			7		2.75			1,048			10		3.71
Short-term investments		1,913			1		.23			1,963			1		.24			3,830			2		.23
Other investments (e)		1,328			12		3.24			1,360			12		3.33			1,445			13		3.11
Total earning assets		71,988			732		4.09			75,221			767		4.12			79,099			867		4.40
Allowance for loan and lease losses		(1,279	)							(1,494	)							(2,356	)
Accrued income and other assets		10,677								10,568								11,133
Discontinued assets — education lending business		6,350								6,479								6,389
Total assets	$	87,736							$	90,774							$	94,265
Liabilities
NOW and money market deposit accounts	$	26,354			19		.29		$	27,004			19		.29		$	25,270			24		.39
Savings deposits		1,981			1		.06			1,907			—		.06			1,883			1		.06
Certificates of deposit ($100,000 or more) (f)		5,075			38		3.02			5,628			43		3.05			9,485			77		3.28
Other time deposits		7,330			42		2.31			7,982			47		2.39			11,309			85		3.01
Deposits in foreign office		869			—		.34			1,040			1		.31			818			1		.36
Total interest-bearing deposits		41,609			100		.97			43,561			110		1.02			48,765			188		1.55
Federal funds purchased and securities sold under repurchase agreements		2,089			2		.27			2,375			1		.27			1,841			2		.33
Bank notes and other short-term borrowings		672			3		1.96			738			3		1.71			539			4		3.06
Long-term debt (f)		7,576			57		3.26			6,792			49		3.09			7,031			50		3.09
Total interest-bearing liabilities		51,946			162		1.27			53,466			163		1.24			58,176			244		1.70
Noninterest-bearing deposits		16,932								16,479								15,644
Accrued expense and other liabilities		2,767								2,878								3,151
Discontinued liabilities — education lending business (d)		6,350								6,479								6,389
Total liabilities		77,995								79,302								83,360
Equity
Key shareholders’ equity		9,561								11,214								10,646
Noncontrolling interests		180								258								259
Total equity		9,741								11,472								10,905
Total liabilities and equity	$	87,736							$	90,774							$	94,265
Interest rate spread (TE)							2.82	%							2.88	%							2.70	%
Net interest income (TE) and net interest margin (TE)					570		3.19	%					604		3.25	%					623		3.17	%
TE adjustment (b)					6								7								6
Net interest income, GAAP basis				$	564							$	597							$	617

(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 Second Quarter 2011 Results

July 19, 2011

Page 19

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

(dollars in millions)

	Six months ended June 30, 2011								Six months ended June 30, 2010
	Average Balance			Interest  (a)		Yield/ Rate  (a)			Average Balance			Interest  (a)		Yield/ Rate  (a)
Assets
Loans: (b), (c)
Commercial, financial and agricultural	$	16,618		$	348		4.23	%	$	18,257		$	431		4.76	%
Real estate — commercial mortgage		8,847			199		4.52			10,392			252		4.88
Real estate — construction		1,895			39		4.20			4,153			86		4.18
Commercial lease financing		6,214			155		4.98			6,976			183		5.25
Total commercial loans		33,574			741		4.44			39,778			952		4.82
Real estate — residential mortgage		1,814			48		5.32			1,816			51		5.62
Home equity:
Key Community Bank		9,447			194		4.14			9,902			208		4.23
Other		629			24		7.63			794			30		7.58
Total home equity loans		10,076			218		4.36			10,696			238		4.48
Consumer other — Key Community Bank		1,154			55		9.64			1,153			69		12.10
Consumer other:
Marine		2,112			66		6.23			2,637			81		6.18
Other		151			6		7.86			202			8		7.78
Total consumer other		2,263			72		6.34			2,839			89		6.29
Total consumer loans		15,307			393		5.16			16,504			447		5.45
Total loans		48,881			1,134		4.67			56,282			1,399		5.00
Loans held for sale		383			7		3.62			454			9		3.90
Securities available for sale (b), (e)		20,076			315		3.19			16,801			305		3.68
Held-to-maturity securities (b)		19			1		11.12			22			1		9.79
Trading account assets		955			16		3.31			1,117			21		3.79
Short-term investments		1,938			2		.24			3,321			4		.25
Other investments (e)		1,344			24		3.29			1,471			27		3.22
Total earning assets		73,596			1,499		4.10			79,468			1,766		4.47
Allowance for loan and lease losses		(1,386	)							(2,478	)
Accrued income and other assets		10,622								11,293
Discontinued assets — education lending business		6,414								6,635
	$	89,246							$	94,918
Liabilities
NOW and money market deposit accounts	$	26,677			38		.29		$	24,997			47		.38
Savings deposits		1,944			1		.06			1,855			1		.06
Certificates of deposit ($100,000 or more) (f)		5,350			81		3.04			10,009			165		3.34
Other time deposits		7,654			89		2.35			11,957			185		3.12
Deposits in foreign office		954			1		.33			756			2		.33
Total interest-bearing deposits		42,579			210		.99			49,574			400		1.63
Federal funds purchased and securities sold under repurchase agreements		2,231			3		.27			1,816			3		.32
Bank notes and other short-term borrowings		705			6		1.83			515			7		2.75
Long-term debt (f)		7,186			106		3.18			7,002			101		3.13
Total interest-bearing liabilities		52,701			325		1.26			58,907			511		1.76
Noninterest-bearing deposits		16,707								15,308
Accrued expense and other liabilities		2,822								3,108
Discontinued liabilities — education lending business (d)		6,414								6,635
		78,644								83,958
Equity
Key shareholders’ equity		10,383								10,696
Noncontrolling interests		219								264
Total equity		10,602								10,960
Total liabilities and equity	$	89,246							$	94,918
Interest rate spread (TE)							2.84	%							2.71	%
Net interest income (TE) and net interest margin (TE)					1,174		3.22	%					1,255		3.18	%
TE adjustment (b)					13								13
Net interest income, GAAP basis				$	1,161							$	1,242

(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 Second Quarter 2011 Results

July 19, 2011

Page 20

Noninterest Income

(in millions)

	Three months ended								Six months ended
	6-30-11		3-31-11			6-30-10			6-30-11		6-30-10
Trust and investment services income (a)	$	113	$	110		$	112		$	223	$	226
Service charges on deposit accounts		69		68			80			137		156
Operating lease income		32		35			43			67		90
Letter of credit and loan fees		47		55			42			102		82
Corporate-owned life insurance income		28		27			28			55		56
Net securities gains (losses)		2		(1	)		(2	)		1		1
Electronic banking fees		33		30			29			63		56
Gains on leased equipment		5		4			2			9		10
Insurance income		14		15			19			29		37
Net gains (losses) from loan sales		11		19			25			30		29
Net gains (losses) from principal investing		17		35			17			52		54
Investment banking and capital markets income (loss) (a)		42		43			31			85		40
Other income		41		17			66			58		105
Total noninterest income	$	454	$	457		$	492		$	911	$	942

(a) Additional detail provided in tables below.

Trust and Investment Services Income

(in millions)

	Three months ended						Six months ended
	6-30-11		3-31-11		6-30-10		6-30-11		6-30-10
Brokerage commissions and fee income	$	33	$	32	$	35	$	65	$	68
Personal asset management and custody fees		40		38		37		78		74
Institutional asset management and custody fees		40		40		40		80		84
Total trust and investment services income	$	113	$	110	$	112	$	223	$	226

Investment Banking and Capital Markets Income (Loss)

(in millions)

	Three months ended								Six months ended
	6-30-11			3-31-11		6-30-10			6-30-11		6-30-10
Investment banking income	$	25		$	26	$	25		$	51	$	41
Income (loss) from other investments		10			2		3			12		4
Dealer trading and derivatives income (loss)		(3	)		4		(8	)		1		(24	)
Foreign exchange income		10			11		11			21		19
Total investment banking and capital markets income (loss)	$	42		$	43	$	31		$	85	$	40

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 21

Noninterest Expense

(dollars in millions)

	Three months ended									Six months ended
	6-30-11			3-31-11			6-30-10			6-30-11			6-30-10
Personnel (a)	$	380		$	371		$	385		$	751		$	747
Net occupancy		62			65			64			127			130
Operating lease expense		25			28			35			53			74
Computer processing		42			42			47			84			94
Business services and professional fees		44			38			41			82			79
FDIC assessment		9			29			33			38			70
OREO expense, net		(3	)		10			22			7			54
Equipment		26			26			26			52			50
Marketing		10			10			16			20			29
Provision (credit) for losses on lending-related commitments		(12	)		(4	)		(10	)		(16	)		(12	)
Other expense		97			86			110			183			239
Total noninterest expense	$	680		$	701		$	769		$	1,381		$	1,554
Average full-time equivalent employees (b)		15,349			15,301			15,665			15,326			15,718

(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						Six months ended
	6-30-11		3-31-11		6-30-10		6-30-11		6-30-10
Salaries	$	228	$	224	$	229	$	452	$	451
Incentive compensation		73		73		65		146		112
Employee benefits		58		62		71		120		145
Stock-based compensation		16		5		15		21		29
Severance		5		7		5		12		10
Total personnel expense	$	380	$	371	$	385	$	751	$	747

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 22

Loan Composition

(dollars in millions)

							Percent change 6-30-11 vs.
	6-30-11		3-31-11		6-30-10		3-31-11			6-30-10
Commercial, financial and agricultural	$	16,883	$	16,440	$	17,113		2.7	%		(1.3	)%
Commercial real estate:
Commercial mortgage		8,069		8,806		9,971		(8.4	)		(19.1	)
Construction		1,631		1,845		3,430		(11.6	)		(52.4	)
Total commercial real estate loans		9,700		10,651		13,401		(8.9	)		(27.6	)
Commercial lease financing		6,105		6,207		6,620		(1.6	)		(7.8	)
Total commercial loans		32,688		33,298		37,134		(1.8	)		(12.0	)
Residential — prime loans:
Real estate — residential mortgage		1,838		1,803		1,846		1.9			(.4	)
Home equity:
Key Community Bank		9,431		9,421		9,775		.1			(3.5	)
Other		595		627		753		(5.1	)		(21.0	)
Total home equity loans		10,026		10,048		10,528		(.2	)		(4.8	)
Total residential — prime loans		11,864		11,851		12,374		.1			(4.1	)
Consumer other — Key Community Bank		1,157		1,141		1,147		1.4			.9
Consumer other:
Marine		1,989		2,112		2,491		(5.8	)		(20.2	)
Other		142		150		188		(5.3	)		(24.5	)
Total consumer — indirect loans		2,131		2,262		2,679		(5.8	)		(20.5	)
Total consumer loans		15,152		15,254		16,200		(.7	)		(6.5	)
Total loans (a)	$	47,840	$	48,552	$	53,334		(1.5	)%		(10.3	)%

Loans Held for Sale Composition

(dollars in millions)

							Percent change 6-30-11 vs.
	6-30-11		3-31-11		6-30-10		3-31-11			6-30-10
Commercial, financial and agricultural	$	80	$	19	$	255		321.1	%		(68.6	)%
Real estate — commercial mortgage		198		287		235		(31.0	)		(15.7	)
Real estate — construction		39		61		112		(36.1	)		(65.2	)
Commercial lease financing		6		7		16		(14.3	)		(62.5	)
Real estate — residential mortgage		58		52		81		11.5			(28.4	)
Total loans held for sale (b)	$	381	$	426	$	699		(10.6	)%		(45.5	)%

Summary of Changes in Loans Held for Sale

(dollars in millions)

	2Q11			1Q11			4Q10			3Q10			2Q10
Balance at beginning of period	$	426		$	467		$	637		$	699		$	556
New originations		914			980			1,053			684			812
Transfers from held to maturity, net		16			32			—			202			65
Loan sales		(1,039	)		(991	)		(1,174	)		(835	)		(712	)
Loan draws (payments), net		73			(62	)		(49	)		(49	)		(16	)
Transfers to OREO / valuation adjustments		(9	)		—			—			(64	)		(6	)
Balance at end of period	$	381		$	426		$	467		$	637		$	699

(a) Excluded at June 30, 2011, March 31, 2011 and June 30, 2010, are loans in the amount of $6.3 billion, $6.3 billion, and $6.6 billion, respectively, related to the discontinued operations of the education lending business.

(b) Excluded at March 31, 2011 and June 30, 2010, are loans held for sale in the amount of $14 million and $92 million, respectively, related to the discontinued operations of the education lending business.

N/M = Not Meaningful

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 23

Summary of Loan and Lease Loss Experience from Continuing Operations

(dollars in millions)

	Three months ended									Six months ended
	6-30-11			3-31-11			6-30-10			6-30-11			6-30-10
Average loans outstanding	$	48,454		$	49,312		$	54,953		$	48,881		$	56,282
Allowance for loan and lease losses at beginning of period	$	1,372		$	1,604		$	2,425		$	1,604		$	2,534
Loans charged off:
Commercial, financial and agricultural		51			42			152			93			291
Real estate — commercial mortgage		16			46			128			62			237
Real estate — construction		27			35			86			62			243
Total commercial real estate loans		43			81			214			124			480
Commercial lease financing		9			17			21			26			46
Total commercial loans		103			140			387			243			817
Real estate — residential mortgage		7			10			11			17			18
Home equity:
Key Community Bank		28			25			28			53			59
Other		11			15			17			26			35
Total home equity loans		39			40			45			79			94
Consumer other — Key Community Bank		11			12			15			23			33
Consumer other:
Marine		15			27			31			42			79
Other		2			3			3			5			8
Total consumer other		17			30			34			47			87
Total consumer loans		74			92			105			166			232
Total loans charged off		177			232			492			409			1,049
Recoveries:
Commercial, financial and agricultural		15			10			16			25			29
Real estate — commercial mortgage		4			3			2			7			5
Real estate — construction		3			5			11			8			11
Total commercial real estate loans		7			8			13			15			16
Commercial lease financing		5			6			7			11			11
Total commercial loans		27			24			36			51			56
Real estate — residential mortgage		1			1			1			2			1
Home equity:
Key Community Bank		1			1			3			2			4
Other		1			1			1			2			2
Total home equity loans		2			2			4			4			6
Consumer other — Key Community Bank		2			2			2			4			4
Consumer other:
Marine		11			8			12			19			22
Other		—			2			2			2			3
Total consumer other		11			10			14			21			25
Total consumer loans		16			15			21			31			36
Total recoveries		43			39			57			82			92
Net loan charge-offs		(134	)		(193	)		(435	)		(327	)		(957	)
Provision (credit) for loan and lease losses		(8	)		(40	)		228			(48	)		641
Foreign currency translation adjustment		—			1			1			1			1
Allowance for loan and lease losses at end of period	$	1,230		$	1,372		$	2,219		$	1,230		$	2,219
Liability for credit losses on lending-related commitments at beginning of period	$	69		$	73		$	119		$	73		$	121
Provision (credit) for losses on lending-related commitments		(12	)		(4	)		(10	)		(16	)		(12	)
Liability for credit losses on lending-related commitments at end of period (a)	$	57		$	69		$	109		$	57		$	109
Total allowance for credit losses at end of period	$	1,287		$	1,441		$	2,328		$	1,287		$	2,328
Net loan charge-offs to average loans		1.11	%		1.59	%		3.18	%		1.35	%		3.43	%
Allowance for loan and lease losses to period-end loans		2.57			2.83			4.16			2.57			4.16
Allowance for credit losses to period-end loans		2.69			2.97			4.36			2.69			4.36
Allowance for loan and lease losses to nonperforming loans		146.08			155.03			130.30			146.08			130.30
Allowance for credit losses to nonperforming loans		152.85			162.82			136.70			152.85			136.70
Discontinued operations — education lending business:
Loans charged off	$	35		$	38		$	32		$	73		$	69
Recoveries		3			3			1			6			2
Net loan charge-offs	$	(32	)	$	(35	)	$	(31	)	$	(67	)	$	(67	)

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

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 24

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

(dollars in millions)

	6-30-11			3-31-11			12-31-10			9-30-10			6-30-10
Commercial, financial and agricultural	$	213		$	221		$	242		$	335		$	489
Real estate — commercial mortgage		230			245			255			362			404
Real estate — construction		131			146			241			333			473
Total commercial real estate loans		361			391			496			695			877
Commercial lease financing		41			42			64			84			83
Total commercial loans		615			654			802			1,114			1,449
Real estate — residential mortgage		79			84			98			90			77
Home equity:
Key Community Bank		101			99			102			106			112
Other		11			13			18			16			17
Total home equity loans		112			112			120			122			129
Consumer other — Key Community Bank		3			3			4			3			5
Consumer other:
Marine		32			31			42			41			41
Other		1			1			2			2			2
Total consumer other		33			32			44			43			43
Total consumer loans		227			231			266			258			254
Total nonperforming loans		842			885			1,068			1,372			1,703
Nonperforming loans held for sale		42			86			106			230			221
OREO		52			97			129			163			136
Other nonperforming assets		14			21			35			36			26
Total nonperforming assets	$	950		$	1,089		$	1,338		$	1,801		$	2,086
Accruing loans past due 90 days or more	$	118		$	153		$	239		$	152		$	240
Accruing loans past due 30 through 89 days		465			474			476			662			610
Restructured loans — accruing and nonaccruing (a)		252			242			297			360			343
Restructured loans included in nonperforming loans (a)		144			136			202			228			213
Nonperforming assets from discontinued operations — education lending business		21			22			40			38			40
Nonperforming loans to period-end portfolio loans		1.76	%		1.82	%		2.13	%		2.67	%		3.19	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		1.98			2.23			2.66			3.48			3.88

(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 Second Quarter 2011 Results

July 19, 2011

Page 25

Summary of Changes in Nonperforming Loans From Continuing Operations

(in millions)

	2Q11			1Q11			4Q10			3Q10			2Q10
Balance at beginning of period	$	885		$	1,068		$	1,372		$	1,703		$	2,065
Loans placed on nonaccrual status		410			335			544			691			682
Charge-offs		(177	)		(232	)		(343	)		(430	)		(492	)
Loans sold		(11	)		(74	)		(162	)		(92	)		(136	)
Payments		(156	)		(114	)		(250	)		(200	)		(185	)
Transfers to OREO		(6	)		(12	)		(14	)		(39	)		(66	)
Transfers to nonperforming loans held for sale		(15	)		(39	)		(41	)		(163	)		(82	)
Transfers to other nonperforming assets		—			(2	)		(3	)		(7	)		(36	)
Loans returned to accrual status		(88	)		(45	)		(35	)		(91	)		(47	)
Balance at end of period	$	842		$	885		$	1,068		$	1,372		$	1,703

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

(in millions)

	2Q11			1Q11			4Q10			3Q10			2Q10
Balance at beginning of period	$	86		$	106		$	230		$	221		$	195
Transfers in		15			39			41			162			86
Net advances / (payments)		(13	)		(20	)		(26	)		(35	)		1
Loans sold		(37	)		(38	)		(139	)		(50	)		(53	)
Transfers to OREO		(5	)		—			—			(58	)		(6	)
Valuation adjustments		(4	)		(1	)		—			(6	)		(2	)
Loans returned to accrual status / other		—			—			—			(4	)		—
Balance at end of period	$	42		$	86		$	106		$	230		$	221

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

(in millions)

	2Q11			1Q11			4Q10			3Q10			2Q10
Balance at beginning of period	$	97		$	129		$	163		$	136		$	130
Properties acquired — nonperforming loans		11			12			14			97			72
Valuation adjustments		(7	)		(11	)		(9	)		(7	)		(24	)
Properties sold		(49	)		(33	)		(39	)		(63	)		(42	)
Balance at end of period	$	52		$	97		$	129		$	163		$	136

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 26

Line of Business Results

(dollars in millions)

Key Community Bank

																Percent change 2Q11 vs.
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10
Summary of operations
Total revenue (TE)	$	559		$	565		$	597		$	596		$	602			(1.1	)%		(7.1	)%
Provision (credit) for loan and lease losses		79			11			74			75			121			618.2			(34.7	)
Noninterest expense		448			445			456			458			452			.7			(.9	)
Net income (loss) attributable to Key		34			81			58			53			31			(58.0	)		9.7
Average loans and leases		26,242			26,312			26,436			26,772			27,217			(.3	)		(3.6	)
Average deposits		47,719			48,108			48,124			48,682			50,406			(.8	)		(5.3	)
Net loan charge-offs		79			76			115			129			148			3.9			(46.6	)
Net loan charge-offs to average loans		1.21	%		1.17	%		1.73	%		1.91	%		2.18	%		N/A			N/A
Nonperforming assets at period end	$	455		$	475		$	497		$	567		$	561			(4.2	)		(18.9	)
Return on average allocated equity		4.26	%		10.03	%		6.79	%		6.04	%		3.49	%		N/A			N/A
Average full-time equivalent employees		8,504			8,378			8,291			8,303			8,241			1.5			3.2
Supplementary information (lines of business)
Regional Banking
Total revenue (TE)	$	450		$	448		$	470		$	478		$	489			.4	%		(8.0	)%
Provision (credit) for loan and lease losses		63			17			77			105			57			270.6			10.5
Noninterest expense		400			400			412			415			409			—			(2.2	)
Net income (loss) attributable to Key		6			32			4			(13	)		27			(81.3	)		(77.8	)
Average loans and leases		17,495			17,597			17,810			18,072			18,404			(.6	)		(4.9	)
Average deposits		41,710			42,189			42,371			43,327			45,219			(1.1	)		(7.8	)
Net loan charge-offs		65			62			77			89			82			4.8			(20.7	)
Net loan charge-offs to average loans		1.49	%		1.43	%		1.72	%		1.95	%		1.79	%		N/A			N/A
Nonperforming assets at period end	$	302		$	294		$	326		$	350		$	339			2.7			(10.9	)
Return on average allocated equity		1.08	%		5.76	%		.69	%		(2.23	)%		4.65	%		N/A			N/A
Average full-time equivalent employees		8,138			8,009			7,930			7,950			7,886			1.6			3.2
Commercial Banking
Total revenue (TE)	$	109		$	117		$	127		$	118		$	113			(6.8	)%		(3.5	)%
Provision (credit) for loan and lease losses		16			(6	)		(3	)		(30	)		64			N/M			(75.0	)
Noninterest expense		48			45			44			43			43			6.7			11.6
Net income (loss) attributable to Key		28			49			54			66			4			(42.9	)		600.0
Average loans and leases		8,747			8,715			8,626			8,700			8,813			.4			(.7	)
Average deposits		6,009			5,919			5,753			5,355			5,187			1.5			15.8
Net loan charge-offs		14			14			38			40			66			—			(78.8	)
Net loan charge-offs to average loans		.64	%		.65	%		1.75	%		1.82	%		3.00	%		N/A			N/A
Nonperforming assets at period end	$	153		$	181		$	171		$	217		$	222			(15.5	)		(31.1	)
Return on average allocated equity		11.59	%		19.41	%		19.64	%		22.51	%		1.30	%		N/A			N/A
Average full-time equivalent employees		366			369			361			353			355			(.8	)		3.1

KeyCorp Reports Second Quarter 2011 Results

July 19, 2011

Page 27

Line of Business Results (continued)

(dollars in millions)

Key Corporate Bank

																Percent change 2Q11 vs.
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10
Summary of operations
Total revenue (TE)	$	389		$	403		$	434		$	424		$	406			(3.5	)%		(4.2	)%
Provision (credit) for loan and lease losses		(76	)		(21	)		(263	)		(25	)		99			261.9			N/M
Noninterest expense		206			228			240			237			249			(9.6	)		(17.3	)
Net income (loss) attributable to Key		163			125			289			134			38			30.4			328.9
Average loans and leases		17,168			17,677			18,602			19,540			20,949			(2.9	)		(18.0	)
Average loans held for sale		302			275			253			380			381			9.8			(20.7	)
Average deposits		10,195			11,282			12,766			11,565			12,391			(9.6	)		(17.7	)
Net loan charge-offs		29			75			61			122			173			(61.3	)		(83.2	)
Net loan charge-offs to average loans		.68	%		1.72	%		1.30	%		2.48	%		3.31	%		N/A			N/A
Nonperforming assets at period end	$	339		$	427		$	575		$	886		$	1,089			(20.6	)		(68.9	)
Return on average allocated equity		28.11	%		19.65	%		40.70	%		17.56	%		4.58	%		N/A			N/A
Average full-time equivalent employees		2,191			2,155			2,169			2,210			2,175			1.7			.7
Supplementary information (lines of business)
Real Estate Capital and Corporate Banking Services
Total revenue (TE)	$	154		$	165		$	177		$	169		$	173			(6.7	)%		(11.0	)%
Provision (credit) for loan and lease losses		(49	)		9			(211	)		22			77			N/M			N/M
Noninterest expense		50			69			83			87			97			(27.5	)		(48.5	)
Net income (loss) attributable to Key		95			56			192			38			—			69.6			N/M
Average loans and leases		7,713			8,583			9,381			10,306			11,466			(10.1	)		(32.7	)
Average loans held for sale		229			140			199			202			194			63.6			18.0
Average deposits		7,371			8,611			10,409			9,146			9,728			(14.4	)		(24.2	)
Net loan charge-offs		26			65			57			103			142			(60.0	)		(81.7	)
Net loan charge-offs to average loans		1.35	%		3.07	%		2.41	%		3.97	%		4.97	%		N/A			N/A
Nonperforming assets at period end	$	245		$	334		$	442		$	719		$	867			(26.6	)		(71.7	)
Return on average allocated equity		30.66	%		15.22	%		45.53	%		8.18	%		—			N/A			N/A
Average full-time equivalent employees		902			882			889			895			901			2.3			.1
Equipment Finance
Total revenue (TE)	$	63		$	63		$	66		$	63		$	61			—			3.3	%
Provision (credit) for loan and lease losses		(30	)		(26	)		(16	)		(12	)		10			N/M			N/M
Noninterest expense		45			51			51			53			49			(11.8	)%		(8.2	)
Net income (loss) attributable to Key		30			24			19			14			1			25.0			N/M
Average loans and leases		4,545			4,621			4,656			4,515			4,478			(1.6	)		1.5
Average loans held for sale		—			4			—			2			16			(100.0	)		(100.0	)
Average deposits		12			6			2			5			5			100.0			140.0
Net loan charge-offs		2			10			7			25			18			(80.0	)		(88.9	)
Net loan charge-offs to average loans		.18	%		.88	%		.60	%		2.20	%		1.61	%		N/A			N/A
Nonperforming assets at period end	$	39		$	44		$	68		$	86		$	106			(11.4	)		(63.2	)
Return on average allocated equity		37.02	%		31.30	%		22.98	%		17.14	%		1.15	%		N/A			N/A
Average full-time equivalent employees		511			521			529			536			549			(1.9	)		(6.9	)
Institutional and Capital Markets
Total revenue (TE)	$	172		$	175		$	191		$	192		$	172			(1.7	)%		—
Provision (credit) for loan and lease losses		3			(4	)		(36	)		(35	)		12			N/M			(75.0	)%
Noninterest expense		111			108			106			97			103			2.8			7.8
Net income (loss) attributable to Key		38			45			78			82			37			(15.6	)		2.7
Average loans and leases		4,910			4,473			4,565			4,719			5,005			9.8			(1.9	)
Average loans held for sale		73			131			54			176			171			(44.3	)		(57.3	)
Average deposits		2,812			2,665			2,355			2,414			2,658			5.5			5.8
Net loan charge-offs		1			—			(3	)		(6	)		13			N/M			(92.3	)
Net loan charge-offs to average loans		.08	%		—			(.26	)%		(.50	)%		1.04	%		N/A			N/A
Nonperforming assets at period end	$	55		$	49		$	65		$	81		$	116			12.2			(52.6	)
Return on average allocated equity		20.11	%		23.49	%		37.92	%		37.83	%		15.46	%		N/A			N/A
Average full-time equivalent employees		778			752			751			779			725			3.5			7.3

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

EX-99.2

Second Quarter 2011 Review

July 19, 2011

Speakers: 

Beth Mooney

Jeff Weeden

Exhibit 99.2

2

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act

of 1995, including statements about Key’s financial condition, results of operations, earnings outlook, asset quality trends

and profitability.  Forward-looking statements are not historical facts but instead represent only management’s current

expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside

of Key’s control.  Key’s actual results and financial condition may differ, possibly materially, from the anticipated results

and financial condition indicated in these forward-looking statements.  Factors that could cause Key’s actual results to

differ materially from those described in the forward-looking statements can be found in KeyCorp’s Annual Report on

Form

10-K

for

the

year

ended

December

31,

2010,

and

its

Quarterly

Report

on

Form

10-Q

for

the

period

ended

March

31,

2011,

which

have

been

filed

with

the

Securities

and

Exchange

Commission

and

are

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

3

Momentum

in

the

business

–

new

client

acquisition

and

growth

Leveraging strong balance sheet; growth in C&I loans

Investing in the business

Growing the

Franchise

Increased quarterly dividend to $.03 per common share

Repurchased warrant issued to U.S. Treasury under TARP

Positioned to meet Basel III requirements

Leadership team in place

Continued improvement in credit quality

Well

controlled

expenses

-

driving

to

create

positive

operating

leverage

Execution of

Business Plan

Investor

Highlights

–

Second

Quarter

2011

Strategic statement:  Key grows by building enduring relationships

through client-focused solutions and extraordinary service

Disciplined

Capital

Management

4

(a) 

Continuing operations, unless otherwise noted

(b) 

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)

Executing Business Plan: Progress on Targets for Success

Improve funding mix

Focus on risk-adjusted returns

Grow client relationships

Leverage Key’s total client solutions and cross-

selling capabilities

>3.50%

3.19%

Net interest margin

Growing high

quality, diverse

revenue streams

>40%

44%

Noninterest income

to total revenue

Improve efficiency and effectiveness

Leverage technology

Change cost base to more variable from fixed

$300-$375

million

$320 million

implemented

Keyvolution cost savings

Creating positive

operating

leverage

Execute our client insight-driven relationship model

Lower credit costs

Improved funding mix with lower cost core deposits

Keyvolution savings

1.00-1.25%

1.23%

Return on average assets

Executing our

strategies

Focus on relationship clients

Exit noncore portfolios

Limit concentrations

Focus on risk-adjusted returns

40-50 bps

1.11%

NCOs to average loans

Returning to a

moderate risk

profile

Improve risk profile of loan portfolio and grow

relationships

Improve deposit mix and grow deposit base

90-100%

86%

Loan to deposit ratio

(b)

Core funded

Action Plans

Targets

KEY

2Q11

KEY Metrics

(a)

KEY Business

Model

5

Financial Summary –

Second Quarter 2011

Capital

(b)

Asset Quality

(a)

Financial

Performance

(a)

Metrics

TE = Taxable equivalent, EOP = End of Period

(a)  From continuing operations

(b)  From consolidated operations

(c)  6-30-11 ratios are estimated

2Q11

1Q11

2Q10

Income from continuing operations attributable to Key

$.26

$.21

$.06

common shareholders

Net interest margin (TE)

3.19%

3.25%

3.17%

Return on average total assets

1.23

1.32

.44

Tier 1 common equity

(c)

11.01%

10.74%

8.07%

Tier 1 risk-based capital

(c)

13.76

13.48

13.62

Tangible common equity to tangible assets

9.67

9.16

7.65

Book value per common share

$9.88

$9.58

$9.19

Net loan charge-offs to average loans

1.11%

1.59%

3.18%

NPLs to EOP portfolio loans

1.76

1.82

3.19

NPAs to EOP portfolio loans + OREO + Other NPAs

1.98

2.23

3.88

Allowance for loan losses to period-end loans

2.57

2.83

4.16

Allowance for loan losses to NPLs

146.08

155.03

130.30

6

Stabilizing Loan Portfolio

$16.9

$16.3

$16.6

$16.9

$17.7

43.4%

43.2%

42.9%

42.7%

42.9%

$0

$5

$10

$15

$20

2Q10

3Q10

4Q10

1Q11

2Q11

30%

40%

50%

60%

$ in billions

Highlights

Average Commercial, Financial & Agricultural Loans

Commercial, Financial and Agricultural loans

increased by 3.7% in 2Q11 compared to 1Q11

–

Modest growth in Commercial Banking and

industrial vertical of Corporate Bank

Commercial Real Estate loans continued to

decline, but at a slower pace

Slower run-off in exit portfolio and focus on

targeted segments positions Key for future

loan growth

CF&A loans

Utilization rate

(4.4)%

3.7%

(1.5)%

(2.3)%

(5.7)%

(5.2)%

(10.3)%

(9.7)%

(7.4)%

-15%

-10%

-5%

0%

5%

10%

15%

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

Quarterly % Change in Average CF&A Loans

Average Loans

$0

$10

$20

$30

$40

$50

$60

2Q10

3Q10

4Q10

1Q11

2Q11

Exit Portfolios

Home Equity & Other

CF&A & Leasing

Commercial Real Estate

$55.0

$ in billions

$52.6

$50.8

$49.3

$48.5

7

Improving Deposit Mix

Highlights

Average Non-time Deposits

(a)

Higher cost CDs continue to decline, while

lower cost deposits have remained strong

Improved funding mix has reduced the cost

of deposits

Total CD maturities and average cost

–

2011: $4.3 billion at 1.51%

–

2012: $5.1 billion at 2.69%

–

2013 & beyond: $2.7 billion at 4.08%

Average

CD Balances

$42.8

$43.6

$45.8

$45.4

$45.3

.17%

.18%

.23%

.18%

.21%

$20

$30

$40

$50

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

$ in billions

$ in billions

$12.4

$13.6

$15.0

$17.3

$20.8

2.82%

2.69%

3.13%

2.66%

2.60%

$0

$5

$10

$15

$20

$25

2Q10

3Q10

4Q10

1Q11

2Q11

0.00%

2.00%

4.00%

6.00%

(a)  Excludes time deposits and deposits in foreign office

(b)  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)

Loan to Deposit Ratio

(b)

88%

86%

85%

85%

81%

0%

25%

50%

75%

100%

125%

2Q10

3Q10

4Q10

1Q11

2Q11

Continuing operations

Discontinued operations

90%

93%

92%

91%

Cost of non-time deposits

Non-time deposits

Average rate on CDs

Total average CDs

86%

8

$950

$1,089

$1,338

$1,801

1.76%

1.82%

2.13%

2.67%

3.19%

$0

$1,000

$2,000

$3,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

$2,086

Nonperforming Assets

Net Charge-offs & Provision for Loan Losses

NPLs

NPLs to period-end loans

$435

$357

$256

$193

$134

$228

$94

$(97)

$(40)

$(8)

3.18%

2.69%

1.59%

1.11%

2.00%

-$200

$0

$200

$400

$600

2Q10

3Q10

4Q10

1Q11

2Q11

-2.00%

.00%

2.00%

4.00%

6.00%

8.00%

NCOs

Provision for loan losses

NCOs to average loans

Allowance for Loan Losses

Allowance to Nonperforming Loans

$1,230

$1,372

$1,604

$1,957

$2,219

3.81%

3.20%

4.16%

2.83%

2.57%

$0

$1,000

$2,000

$3,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.00%

2.00%

4.00%

6.00%

Allowance for loan losses

ALLL to period-end loans

146.1%

155.0%

150.2%

142.6%

130.3%

0%

50%

100%

150%

200%

2Q10

3Q10

4Q10

1Q11

2Q11

$ in millions

$ in millions

$ in millions

NPLs held for sale,

OREO & other NPAs

Key expects NCOs and NPAs to continue to decline in 2011

Continued Improvement in Asset Quality

9

Total Revenue

TE = Taxable equivalent

$570

$604

$635

$647

$623

3.35%

3.31%

3.17%

3.25%

3.19%

$0

$200

$400

$600

$800

2Q10

3Q10

4Q10

1Q11

2Q11

0.00%

2.00%

4.00%

6.00%

$ in millions

Continuing Operations

Net interest margin

Net interest income

Highlights

Net Interest Margin (TE) Trend

Net interest income and NIM impacted by:

–

Decline in earnings assets related to TARP

–

Movement of escrow deposits

–

Hedge maturities

Excess liquidity and low-rate environment

pressuring net interest margin

New client acquisition and execution of

relationship-based model provide opportunities

to grow noninterest income

Noninterest Income and % of Total Revenue

$492

$486

$526

$457

$454

44.3%

43.1%

44.1%

45.3%

42.9%

$0

$200

$400

$600

2Q10

3Q10

4Q10

1Q11

2Q11

30.0%

40.0%

50.0%

60.0%

Noninterest income

Noninterest income to

total revenue

$ in millions

10

Focused Expense Management

Noninterest Expense

Personnel expense

$ in millions

Highlights

Noninterest expense declined by $21 million

compared to 1Q11

–

Sales of OREO properties resulted in net gains

–

Reduction in FDIC assessment expense

Continuing to seek additional cost savings,

having achieved Keyvolution target

Average FTEs

16,436

15,301

15,973

16,937

15,772

15,665

15,584

15,424

15,349

$14,000

$15,000

$16,000

$17,000

$18,000

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

$385

$359

$365

$371

$380

$384

$377

$379

$330

$300

$0

$250

$500

$750

$1,000

2Q10

3Q10

4Q10

1Q11

2Q11

Non-personnel expense

$680

$701

$744

$736

$769

11

2Q11 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

1.23%

1.32%

1.53%

.93%

.44%

.0%

.5%

1.0%

1.5%

2.0%

2Q10

3Q10

4Q10

1Q11

2Q11

Return on Average Assets

$346

$397

$417

$360

$344

$0

$100

$200

$300

$400

$500

2Q10

3Q10

4Q10

1Q11

2Q11

$ in millions

$1,024

$680

$344

Total revenue

Noninterest

expense

PPNR

$ in millions

Net interest

income

56%

Noninterest 

income

44%

Personnel

expense

56%

Non-personnel

expense

44%

12

9.67%

9.16%

7.65%

8.00%

8.19%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2Q10

3Q10

4Q10

1Q11

2Q11

Tier 1 Common Equity

Tangible Common Equity to Tangible Assets

Strong Capital Ratios

11.01%

10.74%

8.07%

8.61%

9.34%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2Q10

3Q10

4Q10

1Q11

2Q11

Peer leading capital position supports growth

Positioned for successful transition to Basel III

Continued capital generation through

execution of strategy

Increased quarterly common stock dividend

Highlights

$9.88

$9.58

$9.19

$9.54

$9.52

$8.00

$8.50

$9.00

$9.50

$10.00

2Q10

3Q10

4Q10

1Q11

2Q11

Book Value per Share

13

Appendix

14

Available for Sale Securities

Highlights

$17.3

$20.3

$21.3

$21.2

$19.0

3.19%

3.18%

3.63%

3.27%

3.43%

$0

$5

$10

$15

$20

$25

2Q10

3Q10

4Q10

1Q11

2Q11

2.00%

3.00%

4.00%

5.00%

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 June 30, 2011:        

3.0 years

Unrealized net gain of $563 million on

available-for-sale securities portfolio at 6/30/11

Mortgage

paydowns

in

2Q11

were

$942

million vs. $1,462 million in 1Q11

Securities to Total Assets

(a)

21.1%

21.6%

21.0%

22.6%

23.9%

0%

5%

10%

15%

20%

25%

30%

2Q10

3Q10

4Q10

1Q11

2Q11

(a) Includes end of period held-to-maturity and available-for-sale securities

15

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)

6-30-11 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

Period-end

loans

Average

loans

6/30/11

2Q11

2Q11

1Q11

2Q11

1Q11

6/30/11

3/31/11

6/30/11

6/30/11

6/30/11

Commercial, financial and agricultural

$16,883

$16,922

$36

$32

.85

%

.80

%

$213

$221

$395

2.34

%

185.45

%

Commercial real estate:

Commercial mortgage

8,069

8,460

12

43

.57

1.89

230

245

343

4.25

149.13

Construction

1,631

1,760

24

30

5.47

5.99

131

146

106

6.50

80.92

Commercial lease financing

6,105

6,094

4

11

.26

.70

41

42

107

1.75

260.98

Real

estate

-

residential

mortgage

1,838

1,818

6

9

1.32

2.02

79

84

41

2.23

51.90

Home equity:

Key Community Bank

9,431

9,441

27

24

1.15

1.03

101

99

99

1.05

98.02

Other

595

611

10

14

6.56

8.78

11

13

37

6.22

336.36

Consumer

—

Key

Community

Bank

1,157

1,151

9

10

3.14

3.51

3

3

47

4.06

N/M

Consumer other:

Marine

1,989

2,051

4

19

.78

3.54

32

31

52

2.61

162.50

Other

142

146

2

1

5.49

2.60

1

1

3

2.11

300.00

Continuing total

$47,840

$48,454

$134

$193

1.11

%

1.59

%

$842

$885

$1,230

2.57

%

146.08

%

Discontinued operations -

education

lending business

6,261

6,240

32

35

4.02

4.33

21

22

109

3.45

N/M

Consolidated total

$54,101

$54,694

$166

$228

1.29

%

1.76

%

$863

$907

$1,339

2.63

%

155.16

%

Allowance /

period-end

loans

(b)

Allowance /

NPLs

Net loan         

charge-offs

Net loan               

charge-offs

(a)

/

average loans

Nonperforming

loans

Ending

allowance

(b)

16

Commercial Real Estate by Property Type and Geography

(a)   Nonresidential land and development loans

N/M = Not Meaningful

Commercial

Real

Estate

Loans

–

6/30/11

$ in millions

(a)

Geographic Region

% of

Commercial

West

Southwest

Central

Midwest

Southeast

Northeast

Total

Total CRE

Mortgage

Construction

Nonowner-occupied:

Retail properties

$330

$169

$215

$241

$393

$230

$1,578

16.3

%

$1,262

$316

Multifamily properties

146

143

263

220

289

260

1,321

13.6

950

371

Health facilities

194

6

149

217

202

199

967

10.0

916

51

Office buildings

142

74

109

115

51

265

756

7.8

617

139

Warehouses

229

-

43

78

74

87

511

5.3

483

28

Residential properties

85

20

56

80

67

80

388

4.0

104

284

Hotels/motels

59

-

24

5

146

33

267

2.8

225

42

Land and development

21

13

36

7

54

67

198

2.0

14

184

Manufacturing facilities

2

-

5

8

-

6

21

.2

20

1

Other

68

2

12

45

86

101

314

3.2

300

14

Total nonowner-occupied

1,276

427

912

1,016

1,362

1,328

6,321

65.2

4,891

1,430

Owner-occupied

1,398

37

315

732

139

758

3,379

34.8

3,178

201

     Total

$2,674

$464

$1,227

$1,748

$1,501

$2,086

$9,700

100.0

%

$8,069

$1,631

Nonowner-occupied: June 30, 2011

Nonperforming loans

$53

$56

$6

$50

$51

$54

$270

N/M

$149

$121

90+ days past due

22

-

-

2

-

12

36

N/M

8

28

30-89 days past due

15

4

1

16

36

26

98

N/M

65

33

Nonowner-occupied: March 31, 2011

Nonperforming loans

$68

$27

$49

$40

$64

$54

$302

N/M

$166

$136

90+ days past due

6

-

10

2

-

29

47

N/M

24

23

30-89 days past due

30

-

28

9

18

11

96

N/M

53

43

17

(a)  Nonresidential land and development loans

Commercial Real Estate

Commercial Real Estate Credit Quality

$ in millions

(a)

Period-end

loans

6-30-11

3-31-11

6-30-11

3-31-11

2Q11

1Q11

Retail properties

$1,578

$1,907

$66

$69

$6

$24

Multifamily properties

1,321

1,518

47

21

(1)

11

Health facilities

967

1,056

11

35

3

-

Office builldings

756

865

25

30

4

8

Warehouses

511

498

10

12

-

-

Residential properties

388

425

69

100

9

14

Hotels/motels

267

307

5

1

-

-

Land and development

198

209

18

12

6

10

Other CRE

335

355

19

22

4

4

Total nonowner-occupied

6,321

7,140

270

302

31

71

Owner-occupied

3,379

3,511

91

89

5

2

Total

$9,700

$10,651

$361

$391

$36

$73

Nonperforming

loans

charge-offs

Net loan

18

(a) 

Average LTVs are at origination.  Current average LTVs for Community Bank total home equity loans and lines is approximately 79%,

which compares to 79% at the end of the first quarter of 2011

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 –

6/30/11

Vintage (% of Loans)

Loan

Balances

Average Loan

Size ($)

Average

FICO

Average

LTV

% of Loans

LTV>90%

2010 and

2011

2009

2008

2007

2006 and

prior

Home equity loans and lines

First lien

4,968

$ 

58,019

$    

751

66

%

.6

%

17

11

11

8

53

%

Second lie

4,463

44,671

750

75

3.4

13

8

18

17

44

Total home equity loans and lines

9,431

$ 

50,831

$    

750

70

1.9

15

9

15

12

49

Nonaccrual loans

First lien

56

$      

72,987

$    

716

73

%

.6

%

1

%

3

%

6

%

15

%

75

%

Second lie

46

55,757

706

77

3.3

-

4

11

26

59

Total home equity nonaccrual loans

102

$    

64,053

$    

712

75

1.7

1

4

8

19

68

Second quarter net charge-offs

27

$      

-

1

%

23

%

28

%

48

%

Net loan charge-offs to average loans

1.15

%

Vintage (% of Loans)

Loan

Balances

Average Loan

Size ($)

Average

FICO

Average

LTV

% of Loans

LTV>90%

2010 and

2011

2009

2008

2007

2006 and

prior

Home equity loans

First lien

26

$      

23,056

$    

747

32

%

.4

%

-

-

1

%

24

%

75

%

Second lie

569

25,404

731

82

32.6

-

-

2

40

58

Total home equity loans

595

$    

25,292

$    

731

80

31.2

-

-

1

40

59

Nonaccrual loans

First lien

1

$        

20,612

$    

724

31

%

-

-

-

-

9

%

91

%

Second lie

10

28,655

705

83

33.2

%

-

-

2

%

36

62

Total home equity nonaccrual loans

11

$      

27,969

$    

706

81

31.1

-

-

2

34

64

Second quarter net charge-offs

10

$      

-

-

1

%

50

%

49

%

Net loan charge-offs to average loans

6.56

%

19

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

$4,736

$5,048

$6,357

$5,846

$5,388

$0

$2,000

$4,000

$6,000

$8,000

2Q10

3Q10

4Q10

1Q11

2Q11

$ in millions

Exit Loan Portfolio

Change

6-30-11 vs.

6-30-11

3-31-11

3-31-11

2Q11

1Q11

6-30-11

3-31-11

Residential

properties

–

homebuilder

$62

$87

$(25)

$1

$2

$33

$44

Marine and RV floor plan

122

150

(28)

1

3

31

35

Commercial lease financing

(a)

1,826

1,922

(96)

7

2

19

21

Total commercial loans

2,010

2,159

(149)

9

7

83

100

Home

equity

–

Other

595

627

(32)

10

14

11

13

Marine

1,989

2,112

(123)

4

19

32

31

RV and other consumer

142

150

(8)

2

1

-

1

Total consumer loans

2,726

2,889

(163)

16

34

43

45

Total exit loans in loan portfolio

$4,736

$5,048

$(312)

$25

$41

$126

$145

Discontinued

operations

-

education

lending business (not included in exit loans above)

(b)

$6,261

$6,318

$(57)

$32

$35

$21

$22

Balance on

Nonperforming

Status

Balance

Outstanding

Charge-offs

Net Loan

20

Credit Quality Trends

Quarterly Change in Criticized Outstandings

(a)

Delinquencies to Period-end Total Loans

(12.3)%

(11.2)%

(16.7)%

(14.3)%

(12.8)%

(1.0)%

(8.1)%

(2.0)%

2.8%

35.1%

41.5%

17.1%

(8.4)%

41.7%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

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

2Q11

.97%

.98%

.95%

1.29%

1.14%

1.14%

1.59%

1.72%

1.61%

1.87%

1.69%

1.17%

1.07%

1.49%

.25%

.32%

.48%

.30%

.45%

.78%

.56%

.60%

.82%

.62%

.57%

.42%

.47%

.36%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

EX-99.3

Exhibit 99.3

Consolidated Balance Sheets

(dollars in millions)

	6-30-11			3-31-11			6-30-10
Assets
Loans	$	47,840		$	48,552		$	53,334
Loans held for sale		381			426			699
Securities available for sale		18,680			19,448			19,773
Held-to-maturity securities		19			19			19
Trading account assets		769			1,041			1,014
Short-term investments		4,563			3,705			1,984
Other investments		1,195			1,402			1,415
Total earning assets		73,447			74,593			78,238
Allowance for loan and lease losses		(1,230	)		(1,372	)		(2,219	)
Cash and due from banks		853			540			591
Premises and equipment		919			906			872
Operating lease assets		453			491			589
Goodwill		917			917			917
Other intangible assets		19			20			42
Corporate-owned life insurance		3,208			3,187			3,109
Derivative assets		900			1,005			1,153
Accrued income and other assets		2,968			3,758			4,061
Discontinued assets		6,328			6,393			6,814
Total assets	$	88,782		$	90,438		$	94,167
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	26,277		$	26,177		$	25,526
Savings deposits		1,973			1,964			1,883
Certificates of deposit ($100,000 or more)		4,939			5,314			8,476
Other time deposits		7,167			7,597			10,430
Total interest-bearing deposits		40,356			41,052			46,315
Noninterest-bearing deposits		19,318			16,495			15,226
Deposits in foreign office — interest-bearing		736			3,263			834
Total deposits		60,410			60,810			62,375
Federal funds purchased and securities sold under repurchase agreements		1,668			2,232			2,836
Bank notes and other short-term borrowings		511			685			819
Derivative liabilities		991			1,106			1,321
Accrued expense and other liabilities		1,518			1,931			2,154
Long-term debt		10,997			11,048			10,451
Discontinued liabilities		2,950			2,929			3,139
Total liabilities		79,045			80,741			83,095
Equity
Preferred stock, Series A		291			291			291
Preferred stock, Series B		—			—			2,438
Common shares		1,017			1,017			946
Common stock warrant		—			87			87
Capital surplus		4,191			4,167			3,701
Retained earnings		5,926			5,721			5,118
Treasury stock, at cost		(1,815	)		(1,823	)		(1,914	)
Accumulated other comprehensive income (loss)		109			(35	)		153
Key shareholders’ equity		9,719			9,425			10,820
Noncontrolling interests		18			272			252
Total equity		9,737			9,697			11,072
Total liabilities and equity	$	88,782		$	90,438		$	94,167
Common shares outstanding (000)		953,822			953,926			880,515

Consolidated Statements of Income

(dollars in millions, except per share amounts)

	Three months ended									Six months ended
	6-30-11			3-31-11			6-30-10			6-30-11			6-30-10
Interest income
Loans	$	551		$	570		$	677		$	1,121		$	1,387
Loans held for sale		3			4			5			7			9
Securities available for sale		149			166			154			315			304
Held-to-maturity securities		1			—			—			1			1
Trading account assets		9			7			10			16			21
Short-term investments		1			1			2			2			4
Other investments		12			12			13			24			27
Total interest income		726			760			861			1,486			1,753
Interest expense
Deposits		100			110			188			210			400
Federal funds purchased and securities sold under repurchase agreements		2			1			2			3			3
Bank notes and other short-term borrowings		3			3			4			6			7
Long-term debt		57			49			50			106			101
Total interest expense		162			163			244			325			511
Net interest income		564			597			617			1,161			1,242
Provision (credit) for loan and lease losses		(8	)		(40	)		228			(48	)		641
Net interest income (expense) after provision for loan and lease losses		572			637			389			1,209			601
Noninterest income
Trust and investment services income		113			110			112			223			226
Service charges on deposit accounts		69			68			80			137			156
Operating lease income		32			35			43			67			90
Letter of credit and loan fees		47			55			42			102			82
Corporate-owned life insurance income		28			27			28			55			56
Net securities gains (losses) (a)		2			(1	)		(2	)		1			1
Electronic banking fees		33			30			29			63			56
Gains on leased equipment		5			4			2			9			10
Insurance income		14			15			19			29			37
Net gains (losses) from loan sales		11			19			25			30			29
Net gains (losses) from principal investing		17			35			17			52			54
Investment banking and capital markets income (loss)		42			43			31			85			40
Other income		41			17			66			58			105
Total noninterest income		454			457			492			911			942
Noninterest expense
Personnel		380			371			385			751			747
Net occupancy		62			65			64			127			130
Operating lease expense		25			28			35			53			74
Computer processing		42			42			47			84			94
Business services and professional fees		44			38			41			82			79
FDIC assessment		9			29			33			38			70
OREO expense, net		(3	)		10			22			7			54
Equipment		26			26			26			52			50
Marketing		10			10			16			20			29
Provision (credit) for losses on lending-related commitments		(12	)		(4	)		(10	)		(16	)		(12	)
Other expense		97			86			110			183			239
Total noninterest expense		680			701			769			1,381			1,554
Income (loss) from continuing operations before income taxes		346			393			112			739			(11	)
Income taxes		94			111			11			205			(71	)
Income (loss) from continuing operations		252			282			101			534			60
Income (loss) from discontinued operations, net of taxes		(9	)		(11	)		(27	)		(20	)		(25	)
Net income (loss)		243			271			74			514			35
Less: Net income (loss) attributable to noncontrolling interests		3			8			4			11			20
Net income (loss) attributable to Key	$	240		$	263		$	70		$	503		$	15
Income (loss) from continuing operations attributable to Key common shareholders	$	243		$	184		$	56		$	427		$	(42	)
Net income (loss) attributable to Key common shareholders		234			173			29			407			(67	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.21		$	.06		$	.47		$	(.05	)
Income (loss) from discontinued operations, net of taxes		(.01	)		(.01	)		(.03	)		(.02	)		(.03	)
Net income (loss) attributable to Key common shareholders		.25			.20			.03			.44			(.08	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.21		$	.06		$	.46		$	(.05	)
Income (loss) from discontinued operations, net of taxes		(.01	)		(.01	)		(.03	)		(.02	)		(.03	)
Net income (loss) attributable to Key common shareholders		.25			.19			.03			.44			(.08	)
Cash dividends declared per common share	$	.03		$	.01		$	.01		$	.04		$	.0925
Weighted-average common shares outstanding (000)		947,565			881,894			874,664			914,911			874,526
Weighted-average common shares and potential common shares outstanding (000) (b)		951,747			887,836			874,664			919,968			874,526

(a) For the three months ended June 30, 2011 and March 31, 2011, Key did not have any impairment losses related to securities. For the three months ended June 30, 2010, Key had $4 million in impairment losses related to securities.

(b) Assumes conversion of stock options and/or Preferred Series A shares, as applicable.