KeyCorp · Earnings release

KEYCORP REPORTS FIRST QUARTER 2025 NET INCOME OF $370 MILLION,

OR $.33 PER DILUTED COMMON SHARE

Revenue of $1.8 billion, up 16% year-over-year; noninterest expense down 1% year-over-year

Net interest income up 4% quarter-over-quarter

Improved credit metrics - nonperforming assets declined by 9% and net charge-offs by 4% quarter-over-quarter

Common equity tier 1 ratio of 11.8%, up ~150 basis points year-over-year

CLEVELAND, April 17, 2025 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $370 million, or $.33 per diluted common share for the first quarter of 2025. For the fourth quarter of 2024, KeyCorp reported 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). Net income from continuing operations attributable to Key common shareholders was $183 million, or $.20 per diluted common share, or adjusted net income of $205 million or $.22 per diluted common share(a), for the first 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(b). Included in the first quarter of 2024 are $22 million, or $.02 per diluted common share, after-tax, of charges related to the FDIC special assessment(b).

Comments from Chairman and CEO, Chris Gorman

"Our first quarter results marked a strong beginning to the year. Revenue was up 16% year-over-year while expenses were essentially flat. We achieved both absolute and fee-based positive operating leverage on a year-over-year basis. Sequentially, net interest income grew 4% and the net interest margin increased by 17 basis points to 2.58%. On an adjusted basis(a), pre-provision net revenue increased more than $90 million from the prior quarter. Credit quality remained strong, with credit migration trends improving for the fifth consecutive quarter.

Our strong financial results are a function of continued momentum with both clients and prospects. Client deposits were up 4% year-over-year while deposit betas continue to improve. Commercial loans grew $1.2 billion from year-end levels. We continued to demonstrate progress in each of our strategic, fee-based businesses – wealth management, commercial payments, and investment banking.

As we look to the future, we are confident in our ability to navigate the current environment from a position of strength. We ended the quarter with a strong capital position – a luxury that gives us both flexibility and resiliency. Our liquidity position is robust and our credit metrics continue to improve.

We enjoy strong earnings and business momentum and clearly defined net interest income tailwinds. I remain confident in our ability to perform well under a wide range of potential macroeconomic scenarios.”

(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to "adjusted noninterest expense", "adjusted net income”, “adjusted earnings per share", and "adjusted pre-provision net revenue." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b) See table on page 23 for more information on Selected Items Impact on Earnings.

KeyCorp Reports First Quarter 2025 Results

Page 2

Selected Financial Highlights

Dollars in millions, except per share data

Income (loss) from continuing operations attributable to Key common shareholders

$

$

$

%

%

Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution

Return on average tangible common equity from continuing operations (a)

%

%

%

N/A

N/A

Return on average total assets from continuing operations

N/A

N/A

Common Equity Tier 1 ratio (b)

N/A

N/A

Book value at period end

$

$

$

Net interest margin (TE) from continuing operations

%

%

%

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.

TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS

Revenue

Dollars in millions

Net interest income (TE)

$

$

$

%

%

Noninterest income

Total revenue (TE)

$

$

$

%

%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.1 billion for the first quarter of 2025 and the net interest margin was 2.58%. Compared to the first quarter of 2024, net interest income increased by $219 million, and the net interest margin increased by 56 basis points. These increases primarily reflect the impact of lower deposit costs, reinvestment of proceeds from maturing low-yielding investment securities, fixed rate loans and swaps into higher yielding investments, the repositioning of the available-for-sale portfolio during the third and fourth quarters of 2024, and an improved funding mix as lower-cost deposits increased while wholesale borrowings declined. These benefits were partially offset by the impact of lower interest rates on repricing earning assets and lower loan balances.

Compared to the fourth quarter of 2024, taxable-equivalent net interest income increased by $44 million, and the net interest margin increased by 17 basis points. These increases were driven by a decline in funding costs, including interest-bearing deposit costs, impact from the second tranche of the available-for-sale portfolio repositioning, which was completed during the fourth quarter of 2024, and from the redeployment of low yielding investments into higher yielding investment securities. These benefits more than offset the impact from lower interest rates on repricing earning assets, and two fewer days in the first quarter of 2025 compared to the fourth quarter of 2024.

KeyCorp Reports First Quarter 2025 Results

Page 3

Noninterest Income

Dollars in millions

Trust and investment services income

$

$

$

%

%

Investment banking and debt placement fees

Cards and payments income

Service charges on deposit accounts

Corporate services income

Commercial mortgage servicing fees

Corporate-owned life insurance income

Consumer mortgage income

Operating lease income and other leasing gains

9

Other income

7

(5)

9

Net securities gains (losses)

—

(3)

N/M

N/M

Total noninterest income

$

$

$

%

%

N/M = Not Meaningful

Compared to the first quarter of 2024, noninterest income increased by $21 million. The increase was driven by a $20 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances and overall growth of the servicing portfolio. We also continued to see momentum across investment banking, wealth management and commercial payments, which offset a $15 million decrease in operating lease income and other leasing gains.

Compared to the fourth quarter of 2024, noninterest income increased by $864 million. The increase was driven primarily by a $915 million loss on the sale of securities as part of a strategic repositioning of the available-for-sale portfolio that impacted earnings in the fourth quarter of 2024. The increase was partly offset by a $46 million decrease in investment banking and debt placement fees.

Noninterest Expense

Dollars in millions

Personnel expense

$

$

$

%

.9

%

Net occupancy

—

—

Computer processing

—

Business services and professional fees

Equipment

—

—

Operating lease expense

Marketing

Other expense

Total noninterest expense

$

$

$

%

%

Compared to the first quarter of 2024, noninterest expense decreased by $12 million. The decrease was driven by an $18 million decrease in other expense due to a FDIC special assessment charge in the first quarter of 2024, which more than offset increases in personnel and technology-related investments.

Compared to the fourth quarter of 2024, noninterest expense decreased by $98 million. The decrease was primarily driven by a $54 million decline in personnel expense, primarily related to lower incentive compensation, as well as lower employee benefits expense. Additionally, business services and professional fees, marketing and other expenses declined primarily due to seasonality and some elevated expenses in the fourth quarter of 2024.

KeyCorp Reports First Quarter 2025 Results

Page 4

BALANCE SHEET HIGHLIGHTS

Average Loans

Dollars in millions

Commercial and industrial (a)

$

$

$

%

%

Other commercial loans

Total consumer loans

Total loans

$

$

$

(.3)

%

%

(a)Commercial and industrial average loan balances include $213 million, $216 million, and $211 million of assets from commercial credit cards at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Average loans were $104.4 billion for the first quarter of 2025, a decrease of $6.7 billion compared to the first quarter of 2024, generally reflective of tepid client loan demand. Average commercial loans declined by $4.1 billion and average consumer loans declined by $2.6 billion, reflective of broad-based declines across all loan categories.

Compared to the fourth quarter of 2024, average loans decreased by $357 million. Average commercial loans increased $276 million, primarily driven by an increase in commercial and industrial loans, offset by continued paydown activity in commercial mortgage real estate. Average consumer loans declined by $633 million, reflective of the intentional run-off of low yielding loans.

Average Deposits

Dollars in millions

Non-time deposits

$

$

$

(.1)

%

%

Time deposits

Total deposits

$

$

$

(.8)

%

%

Cost of total deposits

%

%

%

N/A

N/A

N/A = Not Applicable

Average deposits totaled $148.5 billion for the first quarter of 2025, an increase of $5.7 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.

Compared to the fourth quarter of 2024, average deposits decreased by $1.2 billion, driven by a seasonal decrease in commercial deposit balances. The rate paid on interest-bearing deposits declined by 18 basis points, and the overall cost of deposits declined by 12 basis points.

ASSET QUALITY

Dollars in millions

Net loan charge-offs

$

$

$

%

%

Net loan charge-offs to average total loans

%

%

%

N/A

N/A

Nonperforming loans at period end

$

$

$

Nonperforming assets at period end

Allowance for loan and lease losses

Allowance for credit losses

Provision for credit losses

Allowance for loan and lease losses to nonperforming loans

%

%

%

N/A

N/A

Allowance for credit losses to nonperforming loans

N/A

N/A

N/A = Not Applicable

KeyCorp Reports First Quarter 2025 Results

Page 5

Key's provision for credit losses was $118 million, compared to $101 million in the first quarter of 2024 and $39 million in the fourth quarter of 2024. The increase from the year-ago quarter is driven by higher net loan charge-offs. The increase from the prior quarter reflects a reserve build driven by uncertainty in the economic outlook, partly offset by a reserve release due to improved credit migration trends.

Net loan charge-offs for the first quarter of 2025 totaled $110 million, or 0.43% of average total loans. These results compare to $81 million, or 0.29%, for the first quarter of 2024 and $114 million, or 0.43%, for the fourth quarter of 2024. Key’s allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans at March 31, 2025, compared to 1.66% at March 31, 2024, and 1.63% at December 31, 2024.

At March 31, 2025, Key’s nonperforming loans totaled $686 million, which represented 0.65% of period-end portfolio loans. These results compare to 0.60% at March 31, 2024, and 0.73% at December 31, 2024. Nonperforming assets at March 31, 2025, totaled $700 million, and represented 0.67% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.61% at March 31, 2024, and 0.74% at December 31, 2024.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2025.

Capital Ratios

Common Equity Tier 1 (a)

%

%

%

Tier 1 risk-based capital (a)

Total risk-based capital (a)

Tangible common equity to tangible assets (b)

Leverage (a)

(a)March 31, 2025 ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision.

(b)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

Key's regulatory capital position remained strong in the first quarter of 2025. As shown in the preceding table, at March 31, 2025, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.8% and 13.5%, respectively.

Summary of Changes in Common Shares Outstanding

In thousands

Shares outstanding at beginning of period

%

%

Shares issued under employee compensation plans (net of cancellations and returns)

Shares issued under Scotiabank investment agreement

—

—

N/M

N/M

Shares outstanding at end of period

.5

%

%

N/M = Not Meaningful

Key declared a dividend in January of 2025 of $.205 per common share, payable in the first quarter of 2025.

In March 2025, KeyCorp's Board of Directors authorized a new repurchase program pursuant to which KeyCorp may purchase up to $1 billion of KeyCorp common shares in the open market or in privately negotiated transactions.

KeyCorp Reports First Quarter 2025 Results

Page 6

LINE OF BUSINESS RESULTS

The following table shows the contribution made by each major business segment to Key’s taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.

Major Business Segments

Dollars in millions

Revenue from continuing operations (TE)

Consumer Bank

$

$

$

.2

%

%

Commercial Bank

Other (a)

Total

$

$

$

%

%

Income (loss) from continuing operations attributable to Key

Consumer Bank

$

$

$

%

%

Commercial Bank

Other (a)

Total

$

$

$

%

%

(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

Consumer Bank

Dollars in millions

Summary of operations

Net interest income (TE)

$

$

$

%

%

Noninterest income

.4

Total revenue (TE)

.2

Provision for credit losses

(2)

—

N/M

Noninterest expense

Income (loss) before income taxes (TE)

Allocated income taxes (benefit) and TE adjustments

Net income (loss) attributable to Key

$

$

$

%

%

Average balances

Loans and leases

$

$

$

%

%

Total assets

Deposits

.9

Assets under management at period end

$

$

$

(.5)

%

%

TE = Taxable Equivalent; N/M = Not Meaningful

KeyCorp Reports First Quarter 2025 Results

Page 7

Additional Consumer Bank Data

Dollars in millions

Noninterest income

Trust and investment services income

$

$

$

%

%

Service charges on deposit accounts

—

Cards and payments income

—

Consumer mortgage income

Other noninterest income

7

Total noninterest income

$

$

$

%

.4

%

Average deposit balances

Money market deposits

$

$

$

%

%

Demand deposits

Savings deposits

—

Time deposits

Noninterest-bearing deposits

Total deposits

$

$

$

.9

%

%

Other data

Branches

Automated teller machines

Consumer Bank Summary of Operations (1Q25 vs. 1Q24)

•Key's Consumer Bank recorded net income attributable to Key of $118 million for the first quarter of 2025, compared to $41 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $116 million, or 21.8%, compared to the first quarter of 2024

•Average loans and leases decreased $3.1 billion, or 7.8%, from the first quarter of 2024, driven by broad-based declines across all loan categories

•Average deposits increased $4.2 billion, or 5.0%, from the first quarter of 2024, driven by growth in money market deposits and certificates of deposit

•Provision for credit losses increased $45 million compared to the first quarter of 2024, primarily driven by changes in reserve levels due to uncertainty in the economic outlook and higher net loan charge-offs

•Noninterest income increased $1 million from the year-ago quarter, driven by an increase in trust and investment services

•Noninterest expense decreased $28 million from the year-ago quarter, primarily driven by a FDIC special assessment charge in the first quarter of 2024

KeyCorp Reports First Quarter 2025 Results

Page 8

Commercial Bank

Dollars in millions

Summary of operations

Net interest income (TE)

$

$

$

(.6)

%

%

Noninterest income

Total revenue (TE)

Provision for credit losses

(3)

N/M

Noninterest expense

Income (loss) before income taxes (TE)

Allocated income taxes and TE adjustments

Net income (loss) attributable to Key

$

$

$

%

%

Average balances

Loans and leases

$

$

$

.5

%

%

Loans held for sale

Total assets

Deposits

%

%

TE = Taxable Equivalent; N/M = Not Meaningful

Additional Commercial Bank Data

Dollars in millions

Noninterest income

Trust and investment services income

$

$

$

%

—

%

Investment banking and debt placement fees

Cards and payments income

Service charges on deposit accounts

Corporate services income

Commercial mortgage servicing fees

Operating lease income and other leasing gains

8

Other noninterest income

6

Total noninterest income

$

$

$

%

%

Commercial Bank Summary of Operations (1Q25 vs. 1Q24)

•Key's Commercial Bank recorded net income attributable to Key of $321 million for the first quarter of 2025 compared to $205 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $137 million, or 34.5%, compared to the first quarter of 2024

•Average loan and lease balances decreased $3.6 billion, or 5.1%, compared to the first quarter of 2024, driven by a decline in commercial real estate loans and commercial and industrial loans

•Average deposit balances increased $1.1 billion compared to the first quarter of 2024, driven by our focus on growing deposits across our commercial businesses

•Provision for credit losses decreased $27 million compared to the first quarter of 2024, driven by a lower reserve build due to slowing asset quality migration, which was partly offset by the impact of uncertainty in the economic outlook and higher net loan charge-offs

•Noninterest income increased $7 million compared to the first quarter of 2024, primarily driven by an increase in commercial mortgage servicing fees and service charges on deposit accounts

•Noninterest expense increased $20 million compared to the first quarter of 2024, driven by higher personnel expense

KeyCorp Reports First Quarter 2025 Results

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 $189 billion at March 31, 2025.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

KeyCorp Reports First Quarter 2025 Results

CONTACTS:

ANALYSTS

MEDIA

Brian Mauney

Susan Donlan

Brian_Mauney@KeyBank.com

Susan_E_Donlan@KeyBank.com

Hannah Lewallen

Beth Strauss

Hannah_Lewallen@KeyBank.com

Beth_A_Strauss@KeyBank.com

Johnny Li

Johnny_Li@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, 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, 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.

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 April 17, 2025. A replay of the call will be available on our website through April 17, 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 First Quarter 2025 Results

KeyCorp

Financial Supplement

Page

Basis of Presentation

Financial Highlights

GAAP to Non-GAAP Reconciliation

Consolidated Balance Sheets

Consolidated Statements of Income

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

Noninterest Expense

Personnel Expense

Loan Composition

Loans Held for Sale Composition

Summary of Changes in Loans Held for Sale

Summary of Loan and Lease Loss Experience From Continuing Operations

Asset Quality Statistics From Continuing Operations

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

Summary of Changes in Nonperforming Loans From Continuing Operations

Line of Business Results

Selected Items Impact on Earnings

KeyCorp Reports First Quarter 2025 Results

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 First Quarter 2025 Results

Financial Highlights

(Dollars in millions, except per share amounts)

Three months ended

Summary of operations

Net interest income (TE)

$

$

$

Noninterest income

Total revenue (TE)

Provision for credit losses

Noninterest expense

Income (loss) from continuing operations attributable to Key

Income (loss) from discontinued operations, net of taxes

(1)

—

—

Net income (loss) attributable to Key

Income (loss) from continuing operations attributable to Key common shareholders

Income (loss) from discontinued operations, net of taxes

(1)

—

—

Net income (loss) attributable to Key common shareholders

Per common share

Income (loss) from continuing operations attributable to Key common shareholders

$

$

$

Income (loss) from discontinued operations, net of taxes

—

—

—

Net income (loss) attributable to Key common shareholders (a)

Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution

Income (loss) from discontinued operations, net of taxes — assuming dilution

—

—

—

Net income (loss) attributable to Key common shareholders — assuming dilution (a)

Cash dividends declared

Book value at period end

Tangible book value at period end

Market price at period end

Performance ratios

From continuing operations:

Return on average total assets

%

%

%

Return on average common equity

Return on average tangible common equity (b)

Net interest margin (TE)

Cash efficiency ratio (b)

From consolidated operations:

Return on average total assets

%

%

%

Return on average common equity

Return on average tangible common equity (b)

Net interest margin (TE)

Loan to deposit (c)

Capital ratios at period end

Key shareholders’ equity to assets

%

%

%

Key common shareholders’ equity to assets

Tangible common equity to tangible assets (b)

Common Equity Tier 1 (d)

Tier 1 risk-based capital (d)

Total risk-based capital (d)

Leverage (d)

Asset quality — from continuing operations

Net loan charge-offs

$

$

$

Net loan charge-offs to average loans

%

%

%

Allowance for loan and lease losses

$

$

$

Allowance for credit losses

Allowance for loan and lease losses to period-end loans

%

%

%

Allowance for credit losses to period-end loans

Allowance for loan and lease losses to nonperforming loans

Allowance for credit losses to nonperforming loans

Nonperforming loans at period-end

$

$

$

Nonperforming assets at period-end

Nonperforming loans to period-end portfolio loans

%

%

%

Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

Trust assets

Assets under management

$

$

$

Other data

Average full-time equivalent employees

Branches

Taxable-equivalent adjustment

$

9

$

$

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

(b)The table entitled “GAAP to Non-GAAP Reconciliations” starting on page 14 of this supplement presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.

(d)March 31, 2025, ratio is estimated. As of January 1, 2025, the CECL optional transition provision had been fully phased-in. Amounts prior to January 1, 2025, reflect Key's election to adopt the CECL optional transition provision.

KeyCorp Reports First Quarter 2025 Results

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," "adjusted 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 and adjusted pre-provision net revenue, which are 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. Further, management believes that adjusting pre-provision net revenue for significant or unusual items that management does not consider indicative of ongoing financial performance provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

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 significant or unusual items that management does not consider indicative of ongoing financial performance. 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.

Noninterest expense adjusted for selected items is a non-GAAP measure in that it excludes significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

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 significant or unusual items, net of tax, that management does not consider indicative of ongoing financial performance . 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.

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

Tangible common equity to tangible assets at period-end

Key shareholders’ equity (GAAP)

$

$

$

Less: Intangible assets

Preferred Stock (a)

Tangible common equity (non-GAAP)

$

$

$

Total assets (GAAP)

$

$

$

Less: Intangible assets

Tangible assets (non-GAAP)

$

$

$

Tangible common equity to tangible assets ratio (non-GAAP)

%

%

%

Average tangible common equity

Average Key shareholders' equity (GAAP)

$

$

$

Less: Intangible assets (average)

Preferred stock (average)

Average tangible common equity (non-GAAP)

$

$

$

Return on average tangible common equity from continuing operations

Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)

$

$

$

Average tangible common equity (non-GAAP)

Return on average tangible common equity from continuing operations (non-GAAP)

%

%

%

Return on average tangible common equity consolidated

Net income (loss) attributable to Key common shareholders (GAAP)

$

$

$

Average tangible common equity (non-GAAP)

Return on average tangible common equity consolidated (non-GAAP)

%

%

%

Pre-provision net revenue

Net interest income (GAAP)

$

$

$

Plus: Taxable-equivalent adjustment

9

Noninterest income (GAAP)

Less: Noninterest expense (GAAP)

Pre-provision net revenue from continuing operations (non-GAAP)

$

$

$

Adjusted pre-provision net revenue

Pre-provision net revenue from continuing operations (non-GAAP)

$

$

$

Plus: Selected items(b)

—

Adjusted pre-provision net revenue from continuing operations (non-GAAP)

$

$

$

KeyCorp Reports First Quarter 2025 Results

GAAP to Non-GAAP Reconciliations (continued)

(Dollars in millions)

Three months ended

Cash efficiency ratio

Noninterest expense (GAAP)

$

$

$

Less: Intangible asset amortization

5

7

8

Adjusted noninterest expense (non-GAAP)

$

$

$

Net interest income (GAAP)

$

$

$

Plus: Taxable-equivalent adjustment

9

Net interest income TE (non-GAAP)

Noninterest income (GAAP)

Total taxable-equivalent revenue (non-GAAP)

$

$

$

Cash efficiency ratio (non-GAAP)

%

%

%

Adjusted taxable-equivalent revenue

Noninterest income (GAAP)

$

$

$

Plus: Selected items(b)

—

—

Adjusted noninterest income (non-GAAP)

$

$

$

Net interest income TE (non-GAAP)

Total adjusted taxable-equivalent revenue (non-GAAP)

$

$

$

Noninterest expense adjusted for selected items

Noninterest expense (GAAP)

$

$

$

Plus: Selected items(b)

—

3

Noninterest expense adjusted for selected items (non-GAAP)

$

$

$

Adjusted income (loss) available from continuing operations attributable to Key common shareholders

Income (loss) from continuing operations attributable to Key common shareholders (GAAP)

$

$

$

Plus: Selected items (net of tax)(b)

—

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)

$

$

$

Diluted earnings per common share (EPS) - adjusted

Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)

$

$

$

Plus: EPS impact of selected items(b)

—

Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)

$

$

$

(a)Net of capital surplus.

(b)Additional detail provided in Selected Items table on page 23.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports First Quarter 2025 Results

Consolidated Balance Sheets

(Dollars in millions)

Assets

Loans

$

$

$

Loans held for sale

Securities available for sale

Held-to-maturity securities

Trading account assets

Short-term investments

Other investments

Total earning assets

Allowance for loan and lease losses

Cash and due from banks

Premises and equipment

Goodwill

Other intangible assets

Corporate-owned life insurance

Accrued income and other assets

Discontinued assets

Total assets

$

$

$

Liabilities

Deposits in domestic offices:

Interest-bearing deposits

$

$

$

Noninterest-bearing deposits

Total deposits

Federal funds purchased and securities sold under repurchase agreements

Bank notes and other short-term borrowings

Accrued expense and other liabilities

Long-term debt

Total liabilities

Equity

Preferred stock

Common shares

Capital surplus

Retained earnings

Treasury stock, at cost

Accumulated other comprehensive income (loss)

Key shareholders’ equity

Total liabilities and equity

$

$

$

Common shares outstanding (000)

KeyCorp Reports First Quarter 2025 Results

Consolidated Statements of Income

(Dollars in millions, except per share amounts)

Three months ended

Interest income

Loans

$

$

$

Loans held for sale

Securities available for sale

Held-to-maturity securities

Trading account assets

Short-term investments

Other investments

9

Total interest income

Interest expense

Deposits

Federal funds purchased and securities sold under repurchase agreements

1

1

1

Bank notes and other short-term borrowings

Long-term debt

Total interest expense

Net interest income

Provision for credit losses

Net interest income after provision for credit losses

Noninterest income

Trust and investment services income

Investment banking and debt placement fees

Cards and payments income

Service charges on deposit accounts

Corporate services income

Commercial mortgage servicing fees