EX-99.12a4q24earningsrelease.htmEX-99.1 Document
KEYCORP REPORTS FOURTH QUARTER 2024 NET LOSS OF $(279) MILLION,
OR $(.28) PER DILUTED COMMON SHARE, AND ADJUSTED NET INCOME OF $378 MILLION, OR $.38 PER DILUTED COMMON SHARE(a)
Revenue of $865 million; Adjusted for selected items(a), revenue up 16% year-over-year
Net interest income up 10% linked quarter
Momentum across investment banking, payments, and wealth management fees up 27% year-over-year
Common Equity Tier 1 ratio increased 120 basis points quarter-over-quarter to 12%(b)
CLEVELAND, January 21, 2025 - KeyCorp (NYSE: KEY) today announced a net loss from continuing operations attributable to Key common shareholders of $(279) million, or $(.28) per diluted common share, or adjusted net income of $378 million or $.38 per diluted common share(a), for the fourth quarter of 2024. Included in the fourth quarter of 2024 are $(657) million, or $(.66) per diluted common share, after-tax, of charges related to the loss on the sale of securities(c). For the third quarter of 2024, KeyCorp reported a net loss from continuing operations attributable to Key common shareholders of $(447) million, or $(.47) per diluted common share, or adjusted net income of $285 million or $.30 per diluted common share(a).
Net income from continuing operations attributable to Key common shareholders was $30 million, or $.03 per diluted common share, or adjusted net income of $239 million or $.25 per diluted common share(a), for the fourth quarter of 2023. During the quarter, Key and Scotiabank received regulatory approval to complete Scotiabank's minority investment in Key as announced on August 12, 2024.
Comments from Chairman and CEO, Chris Gorman
"Our fourth quarter results marked a strong finish to the year. EPS and revenue were impacted by the previously communicated completion of our securities portfolio repositioning. On an adjusted basis(a), revenues were up 16% year-over-year and 11% sequentially. Net interest income was up 10% quarter-over-quarter and fees (as adjusted(a)), were up meaningfully versus comparable periods. We achieved year-over-year positive operating leverage for a second consecutive quarter. On a linked quarter basis, net charge-offs were down 26% and criticized loans down 7%.
Our strong financial results are a function of continued client momentum. Relationship households were up 3%, client deposits were up 4%, and AUM increased to a record level of $61 billion in 2024. We continued to drive significant progress in each of our strategic, fee-based businesses – wealth management, commercial payments, and investment banking.
I am very proud of all that our team accomplished in 2024. As we turn the page to 2025, we celebrate KeyBank’s 200th anniversary, a remarkable milestone that reflects the hard work of our teammates over the past two centuries, and their collective dedication to our clients. With strong performance momentum and a leading capital position, we are well positioned for sound, profitable growth in 2025 and beyond.”
(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “adjusted earnings per share", "adjusted taxable-equivalent revenues", "adjusted noninterest income", and "adjusted net income.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b) December 31, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(c) See table on page 25 for more information on Selected Items Impact on Earnings.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 2
Selected Financial Highlights
Dollars in millions, except per share data
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Income (loss) from continuing operations attributable to Key common shareholders
$
(279)
$
(447)
$
30
37.6
%
N/M
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
(.28)
(.47)
.03
40.4
N/M
Return on average tangible common equity from continuing operations (a)
(9.69)
%
(16.98)
%
1.46
%
N/A
N/A
Return on average total assets from continuing operations
(.52)
(.87)
.14
N/A
N/A
Common Equity Tier 1 ratio (b)
12.0
10.8
10.0
N/A
N/A
Book value at period end
$
14.21
$
14.53
$
13.02
(2.2)
9.1
Net interest margin (TE) from continuing operations
2.41
%
2.17
%
2.07
%
N/A
N/A
(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)December 31, 2024 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful
INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Net interest income (TE)
$
1,061
$
964
$
928
10.1
%
14.3
%
Noninterest income
(196)
(269)
610
27.1
(132.1)
Total revenue (TE)
$
865
$
695
$
1,538
24.5
%
(43.8)
%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $1.1 billion for the fourth quarter of 2024 and the net interest margin was 2.41%. Compared to the fourth quarter of 2023, net interest income increased by $133 million, and the net interest margin increased by 34 basis points. The increase in net interest income and the net interest margin reflect the reinvestment of proceeds from maturing investment securities into higher yielding investments, the maturity of lower-yielding interest rate swaps with negative carry that were terminated in 2023, and the first tranche of the repositioning of the available-for-sale portfolio of $7.0 billion during the third quarter of 2024. In addition, during the fourth quarter of 2024, Key completed the second tranche of the available-for-sale portfolio repositioning, which involved the sale and reinvestment of approximately $3.0 billion of lower-yielding mortgaged-backed securities into higher-yielding investments.
Net interest income and the net interest margin also benefited from an increase in lower-cost deposits, which contributed to the decline in wholesale borrowings. These benefits were partially offset by a decline in loan balances and the impact of lower interest rates on repricing earning assets.
Compared to the third quarter of 2024, taxable-equivalent net interest income increased by $97 million, and the net interest margin increased by 24 basis points. Net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher-yielding investments, the repositioning of the available-for-sale portfolio, the maturity of amortizing interest rate swaps with negative carry, and an improved funding mix.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 3
Noninterest Income
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Trust and investment services income
$
142
$
140
$
132
1.4
%
7.6
%
Investment banking and debt placement fees
221
171
136
29.2
62.5
Cards and payments income
85
84
84
1.2
1.2
Service charges on deposit accounts
65
67
65
(3.0)
—
Corporate services income
69
69
67
—
3.0
Commercial mortgage servicing fees
68
73
48
(6.8)
41.7
Corporate-owned life insurance income
36
36
36
—
—
Consumer mortgage income
16
12
11
33.3
45.5
Operating lease income and other leasing gains
15
16
22
(6.3)
(31.8)
Other income
(5)
(2)
13
150.0
(138.5)
Net securities gains (losses)
(908)
(935)
(4)
2.9
N/M
Total noninterest income
$
(196)
$
(269)
$
610
27.1
%
(132.1)
%
N/M = Not Meaningful
Compared to the fourth quarter of 2023, noninterest income decreased by $806 million. The decrease was driven by a $915 million loss on the sale of securities as part of a strategic repositioning of the portfolio, as well as a $3 million loss related to the Scotiabank investment agreement valuation in the fourth quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. The decline was partly offset by an $85 million increase in investment banking and debt placement fees, reflective of stronger syndication fees, underwriting fees, and merger and acquisition fees, as well as a $20 million increase in commercial mortgage servicing fees.
Compared to the third quarter of 2024, noninterest income increased by $73 million, primarily driven by a $50 million increase in investment banking and debt placement fees, reflective of stronger syndication fees and merger and acquisition advisory fees. Additionally, net securities losses declined relative to the prior quarter, reflecting gains from other investment activity in the fourth quarter.
Noninterest Expense
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Personnel expense
$
734
$
670
$
674
9.6
%
8.9
%
Net occupancy
67
66
65
1.5
3.1
Computer processing
107
104
92
2.9
16.3
Business services and professional fees
55
41
44
34.1
25.0
Equipment
20
20
24
—
(16.7)
Operating lease expense
15
14
18
7.1
(16.7)
Marketing
33
21
31
57.1
6.5
Other expense
198
158
424
25.3
(53.3)
Total noninterest expense
$
1,229
$
1,094
$
1,372
12.3
%
(10.4)
%
Compared to the fourth quarter of 2023, noninterest expense decreased $143 million. The decline was driven by selected items that impacted earnings in the fourth quarter of 2023, which included the FDIC special assessment, efficiency related expenses, and a pension settlement charge in the fourth quarter of 2023, which collectively totaled $275 million. See the Selected Items Impact on Earnings table on page 25 for more information. Partly offsetting the decline was an increase in personnel expense of $60 million due to an increase in incentive and stock-based compensation related to strong capital markets activity, as well as an increase in technology investments.
Compared to the third quarter of 2024, noninterest expense increased by $135 million. The increase was driven by a $64 million increase in personnel expense, primarily related to incentive and stock-based
compensation, reflective of stronger capital markets activity, as well as an increase in employee benefits. Additionally, there was a $40 million increase in other expense, largely related to seasonal miscellaneous expenses such as charitable donations.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 4
BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Commercial and industrial (a)
$
52,887
$
53,121
$
56,664
(.4)
%
(6.7)
%
Other commercial loans
19,202
19,929
21,942
(3.6)
(12.5)
Total consumer loans
32,622
33,194
35,342
(1.7)
(7.7)
Total loans
$
104,711
$
106,244
$
113,948
(1.4)
%
(8.1)
%
(a)Commercial and industrial average loan balances include $216 million, $215 million, and $210 million of assets from commercial credit cards at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
Average loans were $104.7 billion for the fourth quarter of 2024, a decrease of $9.2 billion compared to the fourth quarter of 2023, reflective of continued tepid client loan demand. The decline in average loans was mostly driven by a $6.5 billion decline in average commercial loans, due to lower commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined by $2.7 billion, reflective of broad-based declines across all consumer loan categories.
Compared to the third quarter of 2024, average loans decreased by $1.5 billion. Average commercial loans declined by $961 million, primarily driven by a decrease in commercial mortgage real estate loans and commercial and industrial loans. Average consumer loans declined $572 million, driven by lower consumer mortgage and home equity loan balances.
Average Deposits
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Non-time deposits
$
132,092
$
129,901
$
130,750
1.7
%
1.0
%
Time deposits
17,641
17,870
14,326
(1.3)
23.1
Total deposits
$
149,733
$
147,771
$
145,076
1.3
%
3.2
%
Cost of total deposits
2.18
%
2.39
%
2.06
%
N/A
N/A
N/A = Not Applicable
Average deposits totaled $149.7 billion for the fourth quarter of 2024, an increase of $4.7 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.
Compared to the third quarter of 2024, average deposits increased by $2.0 billion, driven by an increase in both consumer and commercial deposit balances.
ASSET QUALITY
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Net loan charge-offs
$
114
$
154
$
76
(26.0)
%
50.0
%
Net loan charge-offs to average total loans
.43
%
.58
%
.26
%
N/A
N/A
Nonperforming loans at period end
$
758
$
728
$
574
4.1
32.1
Nonperforming assets at period end
772
741
591
4.2
30.6
Allowance for loan and lease losses
1,409
1,494
1,508
(5.7)
(6.6)
Allowance for credit losses
1,699
1,774
1,804
(4.2)
(5.8)
Provision for credit losses
39
95
102
(58.9)
(61.8)
Allowance for loan and lease losses to nonperforming loans
186
%
205
%
263
%
N/A
N/A
Allowance for credit losses to nonperforming loans
224
244
314
N/A
N/A
N/A = Not Applicable
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 5
Key's provision for credit losses was $39 million, compared to $102 million in the fourth quarter of 2023 and $95 million in the third quarter of 2024. The decrease from prior periods primarily reflects lower loan balances, slowing asset quality migration, and changes in net charge-off levels.
Net loan charge-offs for the fourth quarter of 2024 totaled $114 million, or 0.43% of average total loans. These results compare to $76 million, or 0.26%, for the fourth quarter of 2023 and $154 million, or 0.58%, for the third quarter of 2024. Key’s allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans at December 31, 2024, compared to 1.60% at December 31, 2023, and 1.68% at September 30, 2024.
At December 31, 2024, Key’s nonperforming loans totaled $758 million, which represented 0.73% of period-end portfolio loans. These results compare to 0.51% at December 31, 2023, and 0.69% at September 30, 2024. Nonperforming assets at December 31, 2024, totaled $772 million, and represented 0.74% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.52% at December 31, 2023, and 0.70% at September 30, 2024.
CAPITAL
Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at December 31, 2024.
Capital Ratios
12/31/2024
9/30/2024
12/31/2023
Common Equity Tier 1 (a)
12.0
%
10.8
%
10.0
%
Tier 1 risk-based capital (a)
13.7
12.6
11.7
Total risk-based capital (a)
16.2
15.1
14.2
Tangible common equity to tangible assets (b)
7.0
6.2
5.1
Leverage (a)
10.1
9.2
9.0
(a)December 31, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(b)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
Key's regulatory capital position remained strong in the fourth quarter of 2024. As shown in the preceding table, at December 31, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 12.0% and 13.7%, respectively. Key's tangible common equity ratio was 7.0% at December 31, 2024.
Key elected the CECL phase-in option provided by regulatory guidance which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022. Effective for the first quarter 2022, Key entered a three-year transition period, and the full impact of the CECL standard was phased-in to regulatory capital through December 31, 2024. In the first quarter of 2025, CECL will be fully reflected in regulatory capital. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by five basis points.
Summary of Changes in Common Shares Outstanding
In thousands
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Shares outstanding at beginning of period
991,251
943,200
936,161
5.1
%
5.9
%
Shares issued under employee compensation plans (net of cancellations and returns)
493
222
403
122.1
22.3
Shares issued under Scotiabank investment agreement
115,042
47,829
—
N/M
N/M
Shares outstanding at end of period
1,106,786
991,251
936,564
11.7
%
18.2
%
N/M = Not Meaningful
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 6
Key declared a dividend in January of 2025 of $.205 per common share, payable in the first quarter of 2025.
LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major business segment to Key’s taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.
Major Business Segments
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Revenue from continuing operations (TE)
Consumer Bank
$
872
$
814
$
770
7.1
%
13.2
%
Commercial Bank
999
868
804
15.1
24.3
Other (a)
(1,006)
(987)
(36)
(1.9)
N/M
Total
$
865
$
695
$
1,538
24.5
%
(43.8)
%
Income (loss) from continuing operations attributable to Key
Consumer Bank
$
88
$
86
$
(11)
2.3
%
900.0
%
Commercial Bank
379
300
150
26.3
152.7
Other (a)
(711)
(797)
(74)
10.8
N/M
Total
$
(244)
$
(411)
$
65
40.6
%
(475.4)
%
(a)Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent
N/M = Not Meaningful
Consumer Bank
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Summary of operations
Net interest income (TE)
$
637
$
584
$
544
9.1
%
17.1
%
Noninterest income
235
230
226
2.2
4.0
Total revenue (TE)
872
814
770
7.1
13.2
Provision for credit losses
43
52
5
(17.3)
760.0
Noninterest expense
713
649
779
9.9
(8.5)
Income (loss) before income taxes (TE)
116
113
(14)
2.7
928.6
Allocated income taxes (benefit) and TE adjustments
28
27
(3)
3.7
N/M
Net income (loss) attributable to Key
$
88
$
86
$
(11)
2.3
%
900.0
%
Average balances
Loans and leases
$
37,567
$
38,332
$
40,763
(2.0)
%
(7.8)
%
Total assets
40,563
41,188
43,551
(1.5)
(6.9)
Deposits
87,476
86,431
83,557
1.2
4.7
Assets under management at period end
$
61,361
$
61,122
$
54,859
.4
%
11.9
%
TE = Taxable Equivalent, N/M = Not Meaningful
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 7
Additional Consumer Bank Data
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Noninterest income
Trust and investment services income
$
115
$
114
$
105
.9
%
9.5
%
Service charges on deposit accounts
32
34
37
(5.9)
(13.5)
Cards and payments income
64
60
62
6.7
3.2
Consumer mortgage income
16
12
11
33.3
45.5
Other noninterest income
8
10
11
(20.0)
(27.3)
Total noninterest income
$
235
$
230
$
226
2.2
%
4.0
%
Average deposit balances
Money market deposits
$
31,968
$
30,805
$
29,546
3.8
%
8.2
%
Demand deposits
22,442
22,310
22,323
.6
.5
Savings deposits
4,391
4,553
5,238
(3.6)
(16.2)
Time deposits
13,979
13,927
10,261
.4
36.2
Noninterest-bearing deposits
14,696
14,836
16,189
(.9)
(9.2)
Total deposits
$
87,476
$
86,431
$
83,557
1.2
%
4.7
%
Other data
Branches
944
944
959
Automated teller machines
1,182
1,194
1,217
Consumer Bank Summary of Operations (4Q24 vs. 4Q23)
•Key's Consumer Bank recorded net income attributable to Key of $88 million for the fourth quarter of 2024, compared to a loss of $11 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $93 million, or 17.1%, compared to the fourth quarter of 2023
•Average loans and leases decreased $3.2 billion, or 7.8%, from the fourth quarter of 2023, driven by broad-based declines across all loan categories
•Average deposits increased $3.9 billion, or 4.7%, from the fourth quarter of 2023, driven by growth in money market deposits and certificates of deposit
•Provision for credit losses increased $38 million compared to the fourth quarter of 2023, largely driven by higher net charge-offs
•Noninterest income increased $9 million from the year-ago quarter, driven by increases in trust and investment services, consumer mortgage, and cards and payments income
•Noninterest expense decreased $66 million from the year-ago quarter, primarily driven by a FDIC special assessment charge in the fourth quarter of 2023
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 8
Commercial Bank
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Summary of operations
Net interest income (TE)
$
537
$
460
$
452
16.7
%
18.8
%
Noninterest income
462
408
352
13.2
31.3
Total revenue (TE)
999
868
804
15.1
24.3
Provision for credit losses
(3)
41
96
(107.3)
(103.1)
Noninterest expense
516
445
526
16.0
(1.9)
Income (loss) before income taxes (TE)
486
382
182
27.2
167.0
Allocated income taxes and TE adjustments
107
82
32
30.5
234.4
Net income (loss) attributable to Key
$
379
$
300
$
150
26.3
%
152.7
%
Average balances
Loans and leases
$
66,691
$
67,452
$
72,713
(1.1)
%
(8.3)
%
Loans held for sale
1,247
998
635
24.9
96.4
Total assets
76,433
76,395
82,026
—
(6.8)
Deposits
59,687
58,696
58,196
1.7
%
2.6
%
TE = Taxable Equivalent
Additional Commercial Bank Data
Dollars in millions
Change 4Q24 vs.
4Q24
3Q24
4Q23
3Q24
4Q23
Noninterest income
Trust and investment services income
$
27
$
25
$
27
8.0
%
—
%
Investment banking and debt placement fees
220
171
135
28.7
63.0
Cards and payments income
18
22
20
(18.2)
(10.0)
Service charges on deposit accounts
32
32
28
—
14.3
Corporate services income
67
62
61
8.1
9.8
Commercial mortgage servicing fees
67
73
49
(8.2)
36.7
Operating lease income and other leasing gains
15
16
21
(6.3)
(28.6)
Other noninterest income
16
7
11
128.6
45.5
Total noninterest income
$
462
$
408
$
352
13.2
%
31.3
%
Commercial Bank Summary of Operations (4Q24 vs. 4Q23)
•Key's Commercial Bank recorded net income attributable to Key of $379 million for the fourth quarter of 2024 compared to $150 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $85 million, or 18.8%, compared to the fourth quarter of 2023
•Average loan and lease balances decreased $6.0 billion, or 8.3%, compared to the fourth quarter of 2023, driven by a decline in commercial and industrial loans and commercial real estate loans
•Average deposit balances increased $1.5 billion compared to the fourth quarter of 2023, driven by our focus on growing deposits across our commercial businesses
•Provision for credit losses decreased $99 million compared to the fourth quarter of 2023, driven by lower loan balances, slowing asset quality migration, and changes in the economic outlook
•Noninterest income increased $110 million compared to the fourth quarter of 2023, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
•Noninterest expense decreased $10 million compared to the fourth quarter of 2023, driven by a FDIC special assessment charge in the fourth quarter of 2023, partly offset by higher incentive compensation from an increase in investment banking activity
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 9
*******************************************
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $187 billion at December 31, 2024.
Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 10
CONTACTS:
ANALYSTS
MEDIA
Brian Mauney
Susan Donlan
216.689.0521
216.471.3133
Brian_Mauney@KeyBank.com
Susan_E_Donlan@KeyBank.com
Halle Nichols
Beth Strauss
216.689.5305
216.471.2787
Halle_A_Nichols@KeyBank.com
Beth_A_Strauss@KeyBank.com
INVESTOR RELATIONS:
KEY MEDIA NEWSROOM:
www.key.com/ir
www.key.com/newsroom
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete.
Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions and the impact of changes in the interest rate environment.
Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.
Notes to Editors:
A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 8:00 a.m. ET, on January 21, 2025. A replay of the call will be available on our website through January 21, 2026.
For up-to-date company information, media contacts, and facts and figures about Key’s lines of business, visit our Media Newsroom at https://www.key.com/newsroom.
*****
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 11
KeyCorp
Fourth Quarter 2024
Financial Supplement
Page
12
Basis of Presentation
13
Financial Highlights
15
GAAP to Non-GAAP Reconciliation
17
Consolidated Balance Sheets
18
Consolidated Statements of Income
19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
21
Noninterest Expense
21
Personnel Expense
22
Loan Composition
22
Loans Held for Sale Composition
22
Summary of Changes in Loans Held for Sale
23
Summary of Loan and Lease Loss Experience From Continuing Operations
24
Asset Quality Statistics From Continuing Operations
24
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
24
Summary of Changes in Nonperforming Loans From Continuing Operations
25
Line of Business Results
25
Selected Items Impact on Earnings
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 12
Basis of Presentation
Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management
believes it to be helpful in understanding Key’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key’s website (www.key.com/ir).
Forward-Looking Non-GAAP Financial Measures
From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.
Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized”
basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.
Taxable Equivalent
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt loans, and certain lease assets, on a common basis that facilitates comparison of results to peers.
Earnings Per Share Equivalent
Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 13
Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
12/31/2024
9/30/2024
12/31/2023
Summary of operations
Net interest income (TE)
$
1,061
$
964
$
928
Noninterest income
(196)
(269)
610
Total revenue (TE)
865
695
1,538
Provision for credit losses
39
95
102
Noninterest expense
1,229
1,094
1,372
Income (loss) from continuing operations attributable to Key
(244)
(411)
65
Income (loss) from discontinued operations, net of taxes
—
1
—
Net income (loss) attributable to Key
(244)
(410)
65
Income (loss) from continuing operations attributable to Key common shareholders
(279)
(447)
30
Income (loss) from discontinued operations, net of taxes
—
1
—
Net income (loss) attributable to Key common shareholders
(279)
(446)
30
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
(.28)
$
(.47)
$
.03
Income (loss) from discontinued operations, net of taxes
—
—
—
Net income (loss) attributable to Key common shareholders (a)
(.28)
(.47)
.03
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
(.28)
(.47)
.03
Income (loss) from discontinued operations, net of taxes — assuming dilution
—
—
—
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
(.28)
(.47)
.03
Cash dividends declared
.205
.205
.205
Book value at period end
14.21
14.53
13.02
Tangible book value at period end
11.70
11.72
10.02
Market price at period end
17.14
16.75
14.40
Performance ratios
From continuing operations:
Return on average total assets
(.52)
%
(.87)
%
.14
%
Return on average common equity
(7.80)
(13.41)
1.08
Return on average tangible common equity (b)
(9.69)
(16.98)
1.46
Net interest margin (TE)
2.41
2.17
2.07
Cash efficiency ratio (b)
141.3
156.4
88.6
From consolidated operations:
Return on average total assets
(.52)
%
(.87)
%
.14
%
Return on average common equity
(7.80)
(13.38)
1.08
Return on average tangible common equity (b)
(9.69)
(16.95)
1.46
Net interest margin (TE)
2.41
2.17
2.07
Loan to deposit (c)
70.3
71.0
77.9
Capital ratios at period end
Key shareholders’ equity to assets
9.7
%
8.9
%
7.8
%
Key common shareholders’ equity to assets
8.4
7.6
6.5
Tangible common equity to tangible assets (b)
7.0
6.2
5.1
Common Equity Tier 1 (d)
12.0
10.8
10.0
Tier 1 risk-based capital (d)
13.7
12.6
11.7
Total risk-based capital (d)
16.2
15.1
14.2
Leverage (d)
10.1
9.2
9.0
Asset quality — from continuing operations
Net loan charge-offs
$
114
$
154
$
76
Net loan charge-offs to average loans
.43
%
.58
%
.26
%
Allowance for loan and lease losses
$
1,409
$
1,494
$
1,508
Allowance for credit losses
1,699
1,774
1,804
Allowance for loan and lease losses to period-end loans
1.35
%
1.42
%
1.34
%
Allowance for credit losses to period-end loans
1.63
1.68
1.60
Allowance for loan and lease losses to nonperforming loans
186
205
263
Allowance for credit losses to nonperforming loans
224
244
314
Nonperforming loans at period-end
$
758
$
728
$
574
Nonperforming assets at period-end
772
741
591
Nonperforming loans to period-end portfolio loans
.73
%
.69
%
.51
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.74
.70
.52
Trust assets
Assets under management
$
61,361
$
61,122
$
54,859
Other data
Average full-time equivalent employees
16,810
16,805
17,129
Branches
944
944
959
Taxable-equivalent adjustment
$
10
$
12
$
7
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 14
Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Twelve months ended
12/31/2024
12/31/2023
Summary of operations
Net interest income (TE)
$
3,810
$
3,943
Noninterest income
809
2,470
Total revenue (TE)
4,619
6,413
Provision for credit losses
335
489
Noninterest expense
4,545
4,734
Income (loss) from continuing operations attributable to Key
(163)
964
Income (loss) from discontinued operations, net of taxes
2
3
Net income (loss) attributable to Key
(161)
967
Income (loss) from continuing operations attributable to Key common shareholders
(306)
821
Income (loss) from discontinued operations, net of taxes
2
3
Net income (loss) attributable to Key common shareholders
(304)
824
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
(.32)
$
.88
Income (loss) from discontinued operations, net of taxes
—
—
Net income (loss) attributable to Key common shareholders (a)
(.32)
.89
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
(.32)
.88
Income (loss) from discontinued operations, net of taxes — assuming dilution
—
—
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
(.32)
.88
Cash dividends paid
.82
.82
Performance ratios
From continuing operations:
Return on average total assets
(.09)
%
.50
%
Return on average common equity
(2.37)
7.21
Return on average tangible common equity (b)
(3.03)
9.60
Net interest margin (TE)
2.16
2.17
Cash efficiency ratio (b)
97.8
73.2
From consolidated operations:
Return on average total assets
(.09)
%
.50
%
Return on average common equity
(2.36)
7.24
Return on average tangible common equity (b)
(3.01)
9.63
Net interest margin (TE)
2.16
2.17
Asset quality — from continuing operations
Net loan charge-offs
$
440
$
244
Net loan charge-offs to average total loans
.41
%
.21
%
Other data
Average full-time equivalent employees
16,753
17,692
Taxable-equivalent adjustment
45
30
(a)Earnings per share may not foot due to rounding.
(b)The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.
(d)December 31, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 15
GAAP to Non-GAAP Reconciliations
(Dollars in millions)
The table below presents certain non-GAAP financial measures related to “tangible common equity,” “return on average tangible common equity,” “pre-provision net revenue," “cash efficiency ratio," "adjusted taxable-equivalent revenue," "noninterest expense adjusted for selected items," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."
The tangible common equity ratio and the return on average tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key’s capital position without regard to the effects of intangible assets and preferred stock.
The table also shows the computation for pre-provision net revenue, which is not formally defined by GAAP. Management believes that eliminating the effects of the provision for credit losses makes it easier to analyze the results by presenting them on a more comparable basis.
The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key’s intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key’s results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.
Adjusted taxable-equivalent revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and selected items. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to those selected items.
Noninterest expense adjusted for selected items is a non-GAAP measure in that it excludes selected items. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects on noninterest expense related to those selected items.
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or “adjusted net income”) and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude selected items, net of tax. Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to the selected items.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
Three months ended
Twelve months ended
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)
$
18,176
$
16,852
$
14,637
Less: Intangible assets (a)
2,779
2,786
2,806
Preferred Stock (b)
2,446
2,446
2,446
Tangible common equity (non-GAAP)
$
12,951
$
11,620
$
9,385
Total assets (GAAP)
$
187,168
$
189,763
$
188,281
Less: Intangible assets (a)
2,779
2,786
2,806
Tangible assets (non-GAAP)
$
184,389
$
186,977
$
185,475
Tangible common equity to tangible assets ratio (non-GAAP)
7.02
%
6.21
%
5.06
%
Pre-provision net revenue
Net interest income (GAAP)
$
1,051
$
952
$
921
$
3,765
$
3,913
Plus: Taxable-equivalent adjustment
10
12
7
45
30
Noninterest income
(196)
(269)
610
809
2,470
Less: Noninterest expense
1,229
1,094
1,372
4,545
4,734
Pre-provision net revenue from continuing operations (non-GAAP)
$
(364)
$
(399)
$
166
$
74
$
1,513
Average tangible common equity
Average Key shareholders' equity (GAAP)
$
16,732
$
15,759
$
13,471
$
15,408
$
13,881
Less: Intangible assets (average) (c)
2,783
2,789
2,811
2,793
2,831
Preferred stock (average)
2,500
2,500
2,500
2,500
2,500
Average tangible common equity (non-GAAP)
$
11,449
$
10,470
$
8,160
$
10,115
$
8,689
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)
$
(279)
$
(447)
$
30
$
(306)
$
821
Average tangible common equity (non-GAAP)
11,449
10,470
8,160
10,115
8,689
Return on average tangible common equity from continuing operations (non-GAAP)
(9.69)
%
(16.98)
%
1.46
%
(3.03)
%
9.60
%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)
$
(279)
$
(446)
$
30
$
(304)
$
824
Average tangible common equity (non-GAAP)
11,449
10,470
8,160
10,115
8,689
Return on average tangible common equity consolidated (non-GAAP)
(9.69)
%
(16.95)
%
1.46
%
(3.01)
%
9.63
%
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 16
GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months ended
Twelve months ended
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Cash efficiency ratio
Noninterest expense (GAAP)
$
1,229
$
1,094
$
1,372
$
4,545
$
4,734
Less: Intangible asset amortization
7
7
10
29
39
Adjusted noninterest expense (non-GAAP)
$
1,222
$
1,087
$
1,362
$
4,516
$
4,695
Net interest income (GAAP)
$
1,051
$
952
$
921
$
3,765
$
3,913
Plus: Taxable-equivalent adjustment
10
12
7
45
30
Net interest income TE (non-GAAP)
1,061
964
928
3,810
3,943
Noninterest income (GAAP)
(196)
(269)
610
809
2,470
Total taxable-equivalent revenue (non-GAAP)
$
865
$
695
$
1,538
$
4,619
$
6,413
Cash efficiency ratio (non-GAAP)
141.3
%
156.4
%
88.6
%
97.8
%
73.2
%
Adjusted taxable-equivalent revenue
Noninterest income (GAAP)
$
(196)
$
(269)
$
610
$
809
$
2,470
Plus: Selected items(d)
918
918
—
1,836
—
Adjusted noninterest income (non-GAAP)
$
722
$
649
$
610
$
2,645
$
2,470
Net interest income TE (non-GAAP)
1,061
964
928
3,810
3,943
Total adjusted taxable-equivalent revenue (non-GAAP)
$
1,783
$
1,613
$
1,538
$
6,455
$
6,413
Noninterest expense adjusted for selected items
Noninterest expense (GAAP)
$
1,229
$
1,094
$
1,372
$
4,545
$
4,734
Plus: Selected items(d)
3
6
(275)
(25)
(339)
Noninterest expense adjusted for selected items (non-GAAP)
$
1,232
$
1,100
$
1,097
$
4,520
$
4,395
Adjusted income (loss) available from continuing operations attributable to Key common shareholders
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)
$
(279)
$
(447)
$
30
$
(306)
$
821
Plus: Selected items (net of tax)(d)
657
732
209
1,415
258
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)
$
378
$
285
$
239
$
1,109
$
1,079
Diluted earnings per common share (EPS) - adjusted
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)
$
(.28)
$
(.47)
$
.03
$
(.32)
$
.88
Plus: EPS impact of selected items(d)
.66
.77
.22
1.48
.27
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)
$
.38
$
.30
$
.25
$
1.16
$
1.15
(a)For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, average intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of average purchased credit card receivables.
(d)Additional detail provided in Selected Items table on page 25
GAAP = U.S. generally accepted accounting principles
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 17
Consolidated Balance Sheets
(Dollars in millions)
12/31/2024
9/30/2024
12/31/2023
Assets
Loans
$
104,260
$
105,346
$
112,606
Loans held for sale
797
1,058
483
Securities available for sale
37,707
34,169
37,185
Held-to-maturity securities
7,395
7,702
8,575
Trading account assets
1,283
1,404
1,142
Short-term investments
17,504
22,796
10,817
Other investments
1,041
1,117
1,244
Total earning assets
169,987
173,592
172,052
Allowance for loan and lease losses
(1,409)
(1,494)
(1,508)
Cash and due from banks
1,743
1,276
941
Premises and equipment
614
624
661
Goodwill
2,752
2,752
2,752
Other intangible assets
27
34
55
Corporate-owned life insurance
4,394
4,379
4,383
Accrued income and other assets
8,797
8,323
8,601
Discontinued assets
263
277
344
Total assets
$
187,168
$
189,763
$
188,281
Liabilities
Deposits in domestic offices:
Interest-bearing deposits
$
120,132
$
119,995
$
114,859
Noninterest-bearing deposits
29,628
30,358
30,728
Total deposits
149,760
150,353
145,587
Federal funds purchased and securities sold under repurchase agreements
14
44
38
Bank notes and other short-term borrowings
2,130
2,359
3,053
Accrued expense and other liabilities
4,983
4,478
5,412
Long-term debt
12,105
15,677
19,554
Total liabilities
168,992
172,911
173,644
Equity
Preferred stock
2,500
2,500
2,500
Common shares
1,257
1,257
1,257
Capital surplus
6,038
6,149
6,281
Retained earnings
14,584
15,066
15,672
Treasury stock, at cost
(2,733)
(4,839)
(5,844)
Accumulated other comprehensive income (loss)
(3,470)
(3,281)
(5,229)
Key shareholders’ equity
18,176
16,852
14,637
Total liabilities and equity
$
187,168
$
189,763
$
188,281
Common shares outstanding (000)
1,106,786
991,251
936,564
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 18
Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Twelve months ended
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Interest income
Loans
$
1,448
$
1,516
$
1,574
$
6,026
$
6,219
Loans held for sale
20
18
12
60
61
Securities available for sale
353
298
213
1,142
793
Held-to-maturity securities
66
70
78
284
312
Trading account assets
16
15
13
61
55
Short-term investments
214
244
138
792
414
Other investments
15
14
22
62
73
Total interest income
2,132
2,175
2,050
8,427
7,927
Interest expense
Deposits
821
887
754
3,307
2,322
Federal funds purchased and securities sold under repurchase agreements
1
1
—
4
79
Bank notes and other short-term borrowings
24
43
45
164
308
Long-term debt
235
292
330
1,187
1,305
Total interest expense
1,081
1,223
1,129
4,662
4,014
Net interest income
1,051
952
921
3,765
3,913
Provision for credit losses
39
95
102
335
489
Net interest income after provision for credit losses
1,012
857
819
3,430
3,424
Noninterest income
Trust and investment services income
142
140
132
557
516
Investment banking and debt placement fees
221
171
136
688
542
Cards and payments income
85
84
84
331
340
Service charges on deposit accounts
65
67
65
261
270
Corporate services income
69
69
67
275
302
Commercial mortgage servicing fees
68
73
48
258
190
Corporate-owned life insurance income
36
36
36
138
132
Consumer mortgage income
16
12
11
58
51
Operating lease income and other leasing gains
15
16
22
76
92
Other income
(5)
(2)
13
23
46
Net securities gains (losses)
(908)
(935)
(4)
(1,856)
(11)
Total noninterest income
(196)
(269)
610
809
2,470
Noninterest expense
Personnel
734
670
674
2,714
2,660
Net occupancy
67
66
65
266
267
Computer processing
107
104
92
414
368
Business services and professional fees
55
41
44
174
168
Equipment
20
20
24
80
88
Operating lease expense
15
14
18
63
77
Marketing
33
21
31
94
109
Other expense
198
158
424
740
997
Total noninterest expense
1,229
1,094
1,372
4,545
4,734
Income (loss) from continuing operations before income taxes
(413)
(506)
57
(306)
1,160
Income taxes (benefit)
(169)
(95)
(8)
(143)
196
Income (loss) from continuing operations
(244)
(411)
65
(163)
964
Income (loss) from discontinued operations, net of taxes
—
1
—
2
3
Net income (loss)
$
(244)
$
(410)
$
65
$
(161)
$
967
Income (loss) from continuing operations attributable to Key common shareholders
$
(279)
$
(447)
$
30
$
(306)
$
821
Net income (loss) attributable to Key common shareholders
(279)
(446)
30
(304)
824
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
(.28)
$
(.47)
$
.03
$
(.32)
$
.88
Income (loss) from discontinued operations, net of taxes
—
—
—
—
—
Net income (loss) attributable to Key common shareholders (a)
(.28)
(.47)
.03
(.32)
.89
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders
$
(.28)
$
(.47)
$
.03
$
(.32)
$
.88
Income (loss) from discontinued operations, net of taxes
—
—
—
—
—
Net income (loss) attributable to Key common shareholders (a)
(.28)
(.47)
.03
(.32)
.88
Cash dividends declared per common share
$
.205
$
.205
$
.205
$
.820
$
.820
Weighted-average common shares outstanding (000)
986,829
948,979
927,517
949,561
927,217
Effect of common share options and other stock awards(b)
—
—
6,529
—
5,542
Weighted-average common shares and potential common shares outstanding (000) (c)
986,829
948,979
934,046
949,561
932,759
(a)Earnings per share may not foot due to rounding.
(b)For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.
(c)Assumes conversion of common share options and other stock awards, as applicable.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Fourth Quarter 2024
Third Quarter 2024
Fourth Quarter 2023
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$
52,887
$
817
6.15
%
$
53,121
$
847
6.34
%
$
56,664
$
870
6.09
%
Real estate — commercial mortgage
13,343
202
6.01
13,864
225
6.46
15,346
234
6.05
Real estate — construction
3,033
55
7.23
3,077
59
7.65
3,028
54
7.05
Commercial lease financing
2,826
24
3.51
2,988
26
3.46
3,568
30
3.34
Total commercial loans
72,089
1,098
6.07
73,050
1,157
6.30
78,606
1,188
6.00
Real estate — residential mortgage
19,990
166
3.32
20,215
167
3.30
21,113
174
3.30
Home equity loans
6,445
93
5.75
6,634
100
5.98
7,227
108
5.93
Other consumer loans
5,256
67
5.08
5,426
69
5.08
6,015
75
4.94
Credit cards
931
34
14.36
919
35
15.22
987
36
14.47
Total consumer loans
32,622
360
4.40
33,194
371
4.46
35,342
393
4.43
Total loans
104,711
1,458
5.55
106,244
1,528
5.73
113,948
1,581
5.51
Loans held for sale
1,327
20
6.05
1,098
18
6.54
695
12
6.85
Securities available for sale (b), (e)
37,952
353
3.38
36,700
298
2.87
35,576
213
1.99
Held-to-maturity securities (b)
7,541
66
3.50
7,838
70
3.58
8,714
78
3.56
Trading account assets
1,215
16
4.98
1,142
15
5.08
1,104
13
4.93
Short-term investments
17,575
214
4.83
17,773
244
5.47
9,571
138
5.72
Other investments (e)
1,045
15
5.72
1,193
14
4.77
1,297
22
6.91
Total earning assets
171,366
2,142
4.87
171,988
2,187
4.93
170,905
2,057
4.60
Allowance for loan and lease losses
(1,486)
(1,533)
(1,484)
Accrued income and other assets
17,308
17,154
17,471
Discontinued assets
268
284
351
Total assets
$
187,456
$
187,893
$
187,243
Liabilities
Money market deposits
$
40,676
$
283
2.77
%
$
40,379
$
309
3.04
%
$
36,648
$
251
2.72
%
Demand deposits
57,653
341
2.35
56,087
365
2.59
56,963
348
2.42
Savings deposits
4,635
1
.07
4,967
3
.22
5,492
1
.05
Time deposits
17,641
196
4.43
17,870
210
4.68
14,326
154
4.26
Total interest-bearing deposits
120,605
821
2.71
119,303
887
2.96
113,429
754
2.63
Federal funds purchased and securities sold under repurchase agreements
84
1
3.99
98
1
4.48
56
—
2.29
Bank notes and other short-term borrowings
1,832
24
5.19
3,172
43
5.44
3,199
45
5.62
Long-term debt (f)
13,984
235
6.70
16,422
292
7.09
19,921
330
6.64
Total interest-bearing liabilities
136,505
1,081
3.15
138,995
1,223
3.50
136,605
1,129
3.29
Noninterest-bearing deposits
29,128
28,468
31,647
Accrued expense and other liabilities
4,823
4,387
5,169
Discontinued liabilities (f)
268
284
351
Total liabilities
$
170,724
$
172,134
$
173,772
Equity
Total equity
$
16,732
$
15,759
$
13,471
Total liabilities and equity
$
187,456
$
187,893
$
187,243
Interest rate spread (TE)
1.72
%
1.43
%
1.31
%
Net interest income (TE) and net interest margin (TE)
$
1,061
2.41
%
$
964
2.17
%
$
928
2.07
%
TE adjustment (b)
10
12
7
Net interest income, GAAP basis
$
1,051
$
952
$
921
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $216 million, $215 million, and $210 million of assets from commercial credit cards for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.8 billion, $41.6 billion, and $42.6 billion for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Yield based on the fair value of securities available for sale was 3.73%, 3.25%, and 2.39% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 20
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Twelve months ended December 31, 2024
Twelve months ended December 31, 2023
Average
Yield/
Average
Yield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$
53,951
$
3,378
6.26
%
$
59,379
$
3,444
5.80
%
Real estate — commercial mortgage
14,080
873
6.20
15,968
931
5.83
Real estate — construction
3,042
227
7.48
2,755
185
6.71
Commercial lease financing
3,087
105
3.41
3,703
116
3.13
Total commercial loans
74,160
4,583
6.18
81,805
4,676
5.72
Real estate — residential mortgage
20,382
674
3.31
21,428
699
3.26
Home equity loans
6,729
398
5.92
7,522
433
5.76
Other consumer loans
5,519
278
5.04
6,263
305
4.86
Credit cards
934
138
14.78
986
136
13.88
Total consumer loans
33,564
1,488
4.43
36,199
1,573
4.35
Total loans
107,724
6,071
5.64
118,004
6,249
5.30
Loans held for sale
979
60
6.11
1,012
61
6.06
Securities available for sale (b), (e)
37,127
1,142
2.71
37,718
793
1.80
Held-to-maturity securities (b)
7,980
284
3.56
9,008
312
3.46
Trading account assets
1,175
61
5.16
1,138
55
4.85
Short-term investments
14,846
792
5.33
7,349
414
5.63
Other investments (e)
1,177
62
5.25
1,392
73
5.28
Total earning assets
171,008
8,472
4.81
175,621
7,957
4.37
Allowance for loan and lease losses
(1,515)
(1,419)
Accrued income and other assets
17,322
17,425
Discontinued assets
296
384
Total assets
$
187,111
$
192,011
Liabilities
Money market deposits
$
39,525
$
1,146
2.90
%
$
34,539
$
666
1.93
%
Other demand deposits
56,130
1,402
2.50
54,711
1,102
2.01
Savings deposits
5,010
7
.14
6,343
3
.04
Time deposits
16,497
752
4.56
13,794
551
4.00
Total interest-bearing deposits
117,162
3,307
2.82
109,387
2,322
2.12
Federal funds purchased and securities sold under repurchase agreements
103
4
4.35
1,647
79
4.81
Bank notes and other short-term borrowings
2,984
164
5.49
5,890
308
5.24
Long-term debt (f)
17,279
1,187
6.87
20,983
1,305
6.22
Total interest-bearing liabilities
137,528
4,662
3.39
137,907
4,014
2.91
Noninterest-bearing deposits
28,993
34,672
Accrued expense and other liabilities
4,886
5,167
Discontinued liabilities (f)
296
384
Total liabilities
$
171,703
$
178,130
Equity
Total equity
$
15,408
$
13,881
Total liabilities and equity
$
187,111
$
192,011
Interest rate spread (TE)
1.42
%
1.46
%
Net interest income (TE) and net interest margin (TE)
$
3,810
2.16
%
$
3,943
2.17
%
TE adjustment (b)
45
30
Net interest income, GAAP basis
$
3,765
$
3,913
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the twelve months ended December 31, 2024, and December 31, 2023, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $215 million and $196 million of assets from commercial credit cards for the twelve months ended December 31, 2024, and December 31, 2023, respectively.
(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $42.2 billion and $44.0 billion for the twelve months ended December 31, 2024, and December 31, 2023, respectively. Yield based on the fair value of securities available for sale was 3.08% and 2.10% for the twelve months ended December 31, 2024, and December 31, 2023, respectively.
(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 21
Noninterest Expense
(Dollars in millions)
Three months ended
Twelve months ended
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Personnel (a)
$
734
$
670
$
674
$
2,714
$
2,660
Net occupancy
67
66
65
266
267
Computer processing
107
104
92
414
368
Business services and professional fees
55
41
44
174
168
Equipment
20
20
24
80
88
Operating lease expense
15
14
18
63
77
Marketing
33
21
31
94
109
Other expense
198
158
424
740
997
Total noninterest expense
$
1,229
$
1,094
$
1,372
$
4,545
$
4,734
Average full-time equivalent employees (b)
16,810
16,805
17,129
16,753
17,692
(a)Additional detail provided in Personnel Expense table below.
(b)The number of average full-time equivalent employees has not been adjusted for discontinued operations.
Personnel Expense
(Dollars in millions)
Three months ended
Twelve months ended
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Salaries and contract labor
$
418
$
408
$
399
$
1,609
$
1,649
Incentive and stock-based compensation
197
162
139
661
525
Employee benefits
119
99
97
442
405
Severance
—
1
39
2
81
Total personnel expense
$
734
$
670
$
674
$
2,714
$
2,660
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 22
Loan Composition
(Dollars in millions)
Change 12/31/2024 vs.
12/31/2024
9/30/2024
12/31/2023
9/30/2024
12/31/2023
Commercial and industrial (a)(b)
$
52,909
$
52,774
$
55,815
.3
%
(5.2)
%
Commercial real estate:
Commercial mortgage
13,310
13,637
15,187
(2.4)
(12.4)
Construction
2,936
3,093
3,066
(5.1)
(4.2)
Total commercial real estate loans
16,246
16,730
18,253
(2.9)
(11.0)
Commercial lease financing (b)
2,736
2,913
3,523
(6.1)
(22.3)
Total commercial loans
71,891
72,417
77,591
(.7)
(7.3)
Residential — prime loans:
Real estate — residential mortgage
19,886
20,122
20,958
(1.2)
(5.1)
Home equity loans
6,358
6,555
7,139
(3.0)
(10.9)
Total residential — prime loans
26,244
26,677
28,097
(1.6)
(6.6)
Other consumer loans
5,167
5,338
5,916
(3.2)
(12.7)
Credit cards
958
914
1,002
4.8
(4.4)
Total consumer loans
32,369
32,929
35,015
(1.7)
(7.6)
Total loans (c), (d)
$
104,260
$
105,346
$
112,606
(1.0)
%
(7.4)
%
(a)Loan balances include $212 million, $219 million, and $207 million of commercial credit card balances at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $211 million at December 31, 2024, $261 million at September 30, 2024 and no amounts held as collateral for a secured borrowing at December 31, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $3 million, $3 million, and $7 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $257 million at December 31, 2024, $272 million at September 30, 2024, and $339 million at December 31, 2023, related to the discontinued operations of the education lending business.
(d)Accrued interest of $456 million, $480 million, and $522 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.
Loans Held for Sale Composition
(Dollars in millions)
Change 12/31/2024 vs.
12/31/2024
9/30/2024
12/31/2023
9/30/2024
12/31/2023
Commercial and industrial
$
88
$
250
$
50
(64.8)
%
76.0
%
Real estate — commercial mortgage
616
747
382
(17.5)
61.3
Real estate — residential mortgage
93
61
51
52.5
82.4
Total loans held for sale
$
797
$
1,058
$
483
(24.7)
%
65.0
%
Summary of Changes in Loans Held for Sale
(Dollars in millions)
4Q24
3Q24
2Q24
1Q24
4Q23
Balance at beginning of period
$
1,058
$
517
$
228
$
483
$
730
New originations
2,915
2,473
1,532
1,738
1,879
Transfers from (to) held to maturity, net
—
(16)
(1)
(105)
(31)
Loan sales
(3,039)
(1,889)
(1,234)
(1,893)
(2,095)
Loan draws (payments), net
(136)
(28)
(7)
4
—
Valuation and other adjustments
(1)
1
(1)
1
—
Balance at end of period
$
797
$
1,058
$
517
$
228
$
483
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 23
Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months ended
Twelve months ended
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Average loans outstanding
$
104,711
$
106,244
$
113,948
$
107,724
$
118,004
Allowance for loan and lease losses at the beginning of the period
$
1,494
$
1,547
$
1,488
$
1,508
$
1,337
Loans charged off:
Commercial and industrial
84
131
49
363
188
Real estate — commercial mortgage
18
7
24
40
39
Real estate — construction
—
—
—
—
—
Total commercial real estate loans
18
7
24
40
39
Commercial lease financing
1
—
—
7
—
Total commercial loans
103
138
73
410
227
Real estate — residential mortgage
1
—
—
3
1
Home equity loans
—
1
(2)
2
2
Other consumer loans
15
17
14
64
51
Credit cards
12
11
10
47
37
Total consumer loans
28
29
22
116
91
Total loans charged off
131
167
95
526
318
Recoveries:
Commercial and industrial
12
7
11
58
44
Real estate — commercial mortgage
—
1
1
2
2
Real estate — construction
—
—
1
—
1
Total commercial real estate loans
—
1
2
2
3
Commercial lease financing
—
—
1
5
5
Total commercial loans
12
8
14
65
52
Real estate — residential mortgage
1
1
1
5
4
Home equity loans
—
1
—
2
3
Other consumer loans
2
2
1
8
8
Credit cards
2
1
3
6
7
Total consumer loans
5
5
5
21
22
Total recoveries
17
13
19
86
74
Net loan charge-offs
(114)
(154)
(76)
(440)
(244)
Provision (credit) for loan and lease losses
29
101
96
341
415
Allowance for loan and lease losses at end of period
$
1,409
$
1,494
$
1,508
$
1,409
$
1,508
Liability for credit losses on lending-related commitments at beginning of period
$
280
$
286
$
290
$
296
$
225
Provision (credit) for losses on lending-related commitments
10
(6)
6
(6)
74
Other
—
—
—
—
(3)
Liability for credit losses on lending-related commitments at end of period (a)
$
290
$
280
$
296
$
290
$
296
Total allowance for credit losses at end of period
$
1,699
$
1,774
$
1,804
$
1,699
$
1,804
Net loan charge-offs to average total loans
.43
%
.58
%
.26
%
.41
%
.21
%
Allowance for loan and lease losses to period-end loans
1.35
1.42
1.34
1.35
1.34
Allowance for credit losses to period-end loans
1.63
1.68
1.60
1.63
1.60
Allowance for loan and lease losses to nonperforming loans
186
205
263
186
263
Allowance for credit losses to nonperforming loans
224
244
314
224
314
Discontinued operations — education lending business:
Loans charged off
$
1
$
1
$
1
$
4
$
4
Recoveries
—
—
—
1
1
Net loan charge-offs
$
(1)
$
(1)
$
(1)
$
(3)
$
(3)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 24
Asset Quality Statistics From Continuing Operations
(Dollars in millions)
4Q24
3Q24
2Q24
1Q24
4Q23
Net loan charge-offs
$
114
$
154
$
91
$
81
$
76
Net loan charge-offs to average total loans
.43
%
.58
%
.34
%
.29
%
.26
%
Allowance for loan and lease losses
$
1,409
$
1,494
$
1,547
$
1,542
$
1,508
Allowance for credit losses (a)
1,699
1,774
1,833
1,823
1,804
Allowance for loan and lease losses to period-end loans
1.35
%
1.42
%
1.44
%
1.40
%
1.34
%
Allowance for credit losses to period-end loans
1.63
1.68
1.71
1.66
1.60
Allowance for loan and lease losses to nonperforming loans
186
205
218
234
263
Allowance for credit losses to nonperforming loans
224
244
258
277
314
Nonperforming loans at period end
$
758
$
728
$
710
$
658
$
574
Nonperforming assets at period end
772
741
727
674
591
Nonperforming loans to period-end portfolio loans
.73
%
.69
%
.66
%
.60
%
.51
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.74
.70
.68
.61
.52
(a)Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Commercial and industrial
$
322
$
365
$
358
$
360
$
297
Real estate — commercial mortgage
243
176
173
113
100
Real estate — construction
—
—
—
—
—
Total commercial real estate loans
243
176
173
113
100
Commercial lease financing
—
—
1
1
—
Total commercial loans
565
541
532
474
397
Real estate — residential mortgage
92
87
77
79
71
Home equity loans
89
90
91
95
97
Other Consumer loans
5
4
4
4
4
Credit cards
7
6
6
6
5
Total consumer loans
193
187
178
184
177
Total nonperforming loans (a)
758
728
710
658
574
OREO
14
13
17
16
17
Nonperforming loans held for sale
—
—
—
—
—
Other nonperforming assets
—
—
—
—
—
Total nonperforming assets
$
772
$
741
$
727
$
674
$
591
Accruing loans past due 90 days or more
$
90
$
166
$
137
$
119
$
107
Accruing loans past due 30 through 89 days
206
184
282
242
222
Nonperforming assets from discontinued operations — education lending business
2
2
3
2
3
Nonperforming loans to period-end portfolio loans
.73
%
.69
%
.66
%
.60
%
.51
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.74
.70
.68
.61
.52
Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
4Q24
3Q24
2Q24
1Q24
4Q23
Balance at beginning of period
$
728
$
710
$
658
$
574
$
455
Loans placed on nonaccrual status
309
271
317
243
297
Charge-offs
(131)
(167)
(131)
(97)
(95)
Loans sold
(13)
(32)
(22)
(5)
(9)
Payments
(111)
(37)
(76)
(35)
(56)
Transfers to OREO
(2)
(1)
(1)
(2)
(2)
Loans returned to accrual status
(22)
(16)
(35)
(20)
(16)
Balance at end of period
$
758
$
728
$
710
$
658
$
574
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 25
Line of Business Results
(Dollars in millions)
Change 4Q24 vs.
4Q24
3Q24
2Q24
1Q24
4Q23
3Q24
4Q23
Consumer Bank
Summary of operations
Total revenue (TE)
$
872
$
814
$
769
$
757
$
770
7.1
%
13.2
%
Provision for credit losses
43
52
33
(2)
5
(17.3)
760.0
Noninterest expense
713
649
648
704
779
9.9
(8.5)
Net income (loss) attributable to Key
88
86
67
41
(11)
2.3
900.0
Average loans and leases
37,567
38,332
39,174
39,919
40,763
(2.0)
(7.8)
Average deposits
87,476
86,431
85,397
84,075
83,557
1.2
4.7
Net loan charge-offs
63
54
45
44
40
16.7
57.5
Net loan charge-offs to average total loans
.67
%
.56
%
.46
%
.44
%
.39
%
19.6
71.8
Nonperforming assets at period end
$
201
$
195
$
190
$
196
$
190
3.1
5.8
Return on average allocated equity
10.85
%
10.34
%
7.93
%
4.69
%
(1.28)
%
4.9
947.7
Commercial Bank
Summary of operations
Total revenue (TE)
$
999
$
868
$
769
$
798
$
804
15.1
%
24.3
%
Provision for credit losses
(3)
41
87
102
96
(107.3)
(103.1)
Noninterest expense
516
445
431
442
526
16.0
(1.9)
Net income (loss) attributable to Key
379
300
207
205
150
26.3
152.7
Average loans and leases
66,691
67,452
69,248
70,633
72,713
(1.1)
(8.3)
Average loans held for sale
1,247
998
522
840
635
24.9
96.4
Average deposits
59,687
58,696
57,360
56,331
58,196
1.7
2.6
Net loan charge-offs
52
99
64
37
35
(47.5)
48.6
Net loan charge-offs to average total loans
.31
%
.58
%
.37
%
.21
%
.19
%
(46.6)
63.2
Nonperforming assets at period end
$
571
$
546
$
537
$
478
$
401
4.6
42.4
Return on average allocated equity
15.50
%
11.98
%
8.31
%
8.24
%
5.88
%
29.4
163.6
TE = Taxable Equivalent
Selected Items Impact on Earnings
(Dollars in millions, except per share amounts)
Pretax(a)
After-tax at marginal rate(a)
Quarter to date results
Amount
Net Income
EPS(c)(f)
Three months ended December 31, 2024
Loss on sale of securities(b)
$
(915)
$
(657)
$
(0.66)
Scotiabank investment agreement valuation (other income)
(3)
(2)
—
FDIC special assessment (other expense)(d)
3
2
—
Three months ended September 30, 2024
Loss on sale of securities(b)
(918)
(737)
(0.77)
FDIC special assessment (other expense)(d)
6
5
—
Three months ended June 30, 2024
FDIC special assessment (other expense)(d)
(5)
(4)
—
Three months ended March 31, 2024
FDIC special assessment (other expense)(d)
(29)
(22)
(0.02)
Three months ended December 31, 2023
Efficiency related expenses(e)
(67)
(51)
(0.05)
Pension settlement (other expense)
(18)
(14)
(0.02)
FDIC special assessment (other expense)(d)
(190)
(144)
(0.15)
Year to date results
Twelve months ended December 31, 2024
Loss on sale of securities
(1,833)
(1,394)
(1.45)
Scotiabank investment agreement valuation (other income)
(3)
(2)
—
FDIC special assessment (other expense)(d)
(25)
(19)
(0.02)
Total selected items(f)
$
(1,861)
$
(1,415)
$
(1.48)
Twelve months ended December 31, 2023
Efficiency related expenses(e)
(131)
(100)
(0.10)
Pension settlement (other expense)
(18)
(14)
(0.02)
FDIC special assessment (other expense)(d)
(190)
(144)
(0.15)
Total selected items(f)
$
(339)
$
(258)
$
(0.27)
KeyCorp Reports Fourth Quarter 2024 Results
January 21, 2025
Page 26
(a)Favorable (unfavorable) impact.
(b)After-tax loss on sale of securities for the three months ended September 30, 2024 adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments recorded in the fourth quarter of 2024.
(c)Impact to EPS reflected on a fully diluted basis.
(d)In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024. Amounts reflected for the three-months ended June 30, 2024, September 30, 2024, and December 31, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.
(e)Efficiency related expenses for the three-months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense. Efficiency related expenses for the twelve-months ended December 31, 2023, consist primarily of $70 million of severance recorded in personnel expense and $52 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.
(f)Earnings per share may not foot due to rounding.
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor