STOCK TITAN
  1. Home
  2. Sec-filings
  3. KEY
  4. [8-K] KEYCORP /NEW/ Reports Material Event

KeyCorp (NYSE: KEY) grows Q2 2026 earnings as revenue rises 7%

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

KeyCorp reported second quarter 2026 net income from continuing operations attributable to common shareholders of $472 million, or $0.44 per diluted share, up from $387 million, or $0.35, in the prior-year quarter.

Total revenue on a taxable-equivalent basis was $1.96 billion, a 6.7% year-over-year increase, driven by 9.4% growth in net interest income to $1.26 billion and a net interest margin of 2.89%. Noninterest income rose 2.3% to $706 million, with higher trust and investment services and cards and payments income partially offset by lower commercial mortgage servicing fees.

Noninterest expense increased 5.5% year-over-year to $1.22 billion, mainly from higher personnel costs. Net loan charge-offs were $115 million, or 0.42% of average loans, and the allowance for credit losses was $1.72 billion, or 1.56% of period-end loans. The Common Equity Tier 1 capital ratio was 11.2%, and KeyCorp repurchased $341 million of common shares while declaring a $0.205 quarterly common dividend.

Positive

  • Net income from continuing operations rose 22.0% year-over-year to $472 million, with diluted EPS from continuing operations increasing 25.7% to $0.44.
  • Capital and shareholder returns remained robust, with an estimated Common Equity Tier 1 ratio of 11.2% and $341 million of common share repurchases in the quarter.

Negative

  • None.

Filing Explained

As of June 30, the reported common-share count was 1,072,035 thousand after repurchases; the filing reports a $3 billion authorization, not full use.

The July 21 Form 8-K reports KeyCorp’s second-quarter results and furnishes a press release and supplemental package; the financial statements in Exhibit 99.3 are deemed filed, while the other results materials are furnished.

At June 30, 2026, reported common shares outstanding were 1,072,035 thousand, down from 1,087,293 thousand at March 31, 2026, while the board had authorized $3 billion of common-share repurchases.

The filing attributes the reduction primarily to $341 million of repurchases and reports 15,531 thousand shares repurchased.

Credit indicators moved in different directions during the quarter: net charge-offs rose to $115 million, while nonperforming loans rose to $809 million at June 30, 2026.

The allowance for credit losses declined to $1.7 billion, or 1.56% of period-end loans, from 1.60% at the prior quarter-end.

The earnings materials describe $1.3 billion of planned 2026 repurchases and a $3 billion board authorization; later filings would establish how much additional capacity is used.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income from continuing operations attributable to Key common shareholders $472 million Second quarter 2026; up 22.0% vs 2Q25
Diluted EPS from continuing operations attributable to Key common shareholders $0.44 Second quarter 2026; up from $0.35 in 2Q25
Total revenue (taxable-equivalent) $1.964 billion Second quarter 2026; 6.7% year-over-year increase
Net interest margin (TE) 2.89% From continuing operations in Q2 2026; up 23 bps vs 2Q25
Net loan charge-offs to average total loans 0.42% Second quarter 2026 asset quality metric
Common Equity Tier 1 ratio 11.2% Estimated regulatory capital ratio at June 30, 2026
Allowance for credit losses to period-end loans 1.56% Coverage ratio at June 30, 2026
Common share repurchases in Q2 2026 $341 million Drove 1.4% sequential reduction in common shares outstanding
taxable-equivalent financial
"Taxable-equivalent net interest income was $1.26 billion for the second quarter"
An adjustment that converts income from a tax-advantaged investment into the equivalent yield it would need to produce if it were fully taxable, so different investments can be compared on the same after-tax footing. For investors this matters because it shows the true, comparable return after accounting for tax differences—like converting prices that include sales tax so you can directly compare what you actually pay and receive.
Common Equity Tier 1 financial
"Common Equity Tier 1 ratio of 11.2% (a); repurchased $341 million"
Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.
net interest margin financial
"net interest margin of 2.89% increased 2 bps sequentially"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
nonperforming loans financial
"Nonperforming loans at period end were $809 million, or 0.73%"
Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.
allowance for credit losses financial
"Allowance for credit losses to period-end loans was 1.56%"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Net income from continuing operations attributable to Key common shareholders $472 million 22.0% year-over-year increase vs 2Q25
Diluted EPS from continuing operations attributable to Key common shareholders $0.44 up from $0.35 in 2Q25, a 25.7% increase
Total revenue (taxable-equivalent) $1.964 billion 6.7% year-over-year increase vs 2Q25
Net interest margin (TE) from continuing operations 2.89% up from 2.66% in 2Q25, a 23 basis point increase
Return on average tangible common equity from continuing operations 12.89% up from 11.09% in 2Q25, a 180 basis point increase

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

How did KeyCorp (KEY) perform financially in Q2 2026?
KeyCorp reported net income from continuing operations of $472 million, or $0.44 per diluted share, for Q2 2026. This compares with $387 million, or $0.35 per diluted share, in Q2 2025, reflecting solid year-over-year earnings growth.

What were KeyCorp (KEY) revenues and net interest margin in Q2 2026?
Total revenue on a taxable-equivalent basis was $1.964 billion in Q2 2026, up 6.7% year-over-year. Taxable-equivalent net interest income reached $1.258 billion, and the net interest margin was 2.89%, increasing 23 basis points from 2.66% a year earlier.

How did credit quality at KeyCorp (KEY) trend in Q2 2026?
Net loan charge-offs were $115 million, or 0.42% of average total loans, compared with 0.39% a year earlier. The allowance for credit losses totaled $1.72 billion, representing 1.56% of period-end loans, down from 1.64% at June 30, 2025.

What was KeyCorp (KEY)’s capital position at June 30, 2026?
At June 30, 2026, KeyCorp reported an estimated Common Equity Tier 1 ratio of 11.2%, Tier 1 risk-based capital ratio of 12.8%, total risk-based capital ratio of 14.8%, and a tangible common equity to tangible assets ratio of 7.7%.

How much stock did KeyCorp (KEY) repurchase in Q2 2026 and what was the dividend?
KeyCorp repurchased $341 million of common shares in Q2 2026, reducing period-end shares outstanding to about 1.07 billion. The company also declared a $0.205 cash dividend per common share during the quarter.

How did KeyCorp’s (KEY) loans and deposits change in Q2 2026?
Average loans were $110.1 billion, up 4.1% year-over-year, driven by commercial and industrial growth. Average deposits totaled $147.6 billion, essentially flat year-over-year, with higher non-time deposits offset by lower time deposits.
false000009157600000915762026-07-212026-07-210000091576us-gaap:CommonStockMember2026-07-212026-07-210000091576us-gaap:SeriesEPreferredStockMember2026-07-212026-07-210000091576us-gaap:SeriesFPreferredStockMember2026-07-212026-07-210000091576us-gaap:SeriesGPreferredStockMember2026-07-212026-07-210000091576us-gaap:SeriesHPreferredStockMember2026-07-212026-07-21

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d)
 of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 21, 2026
 
KeyCorp
keylogoa11.jpg
(Exact name of registrant as specified in its charter)
 
Ohio
001-11302
34-6542451
State or other jurisdiction of incorporation or organization:Commission File NumberI.R.S. Employer Identification Number:
127 Public Square,
Cleveland,
Ohio
44114-1306
Address of principal executive offices:Zip Code:

(216) 689-3000
Registrant’s telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:


Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $1 par value
KEY
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E)
KEY PrI
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F)
KEY PrJ
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G)
KEY PrK
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Reset Perpetual Non-Cumulative Preferred Stock, Series H)KEY PrL
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

    Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02     Results of Operations and Financial Condition.

    On July 21, 2026, KeyCorp issued a press release announcing its financial results for the three- and six-month periods ended June 30, 2026 (the “Press Release”), and posted on its website its second quarter 2026 Supplemental Information Package (the “Supplemental Information Package”). The Press Release and Supplemental Information Package are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

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

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



Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

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

99.1    Press Release, dated July 21, 2026, announcing financial results for the three- and six-month period ended June 30, 2026

99.2    Supplemental Information Package reviewed during the conference call and webcast.

99.3    Financial Statements.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KEYCORP
(Registrant)
Date: July 21, 2026/s/ Stacy L. Gilbert
By: Stacy L. Gilbert
Chief Accounting Officer



keylogoicononlyrgba01.jpg

KEYCORP REPORTS SECOND QUARTER 2026 NET INCOME OF $472 MILLION,
OR $0.44 PER DILUTED COMMON SHARE INCREASING 26% YEAR-OVER-YEAR


Revenue of $1.96 billion, up 7% year-over-year

Net interest income up 9% year-over-year and 2% sequentially; net interest margin of 2.89% increased 2 bps sequentially

Period-end loans up $1.2 billion sequentially, with commercial and industrial loans up $2.1 billion or 3%

Net charge-offs of 42 bps; allowance coverage ratio declined 4 bps sequentially to 1.56%

Common Equity Tier 1 ratio of 11.2%(a); repurchased $341 million of common shares during the quarter


    CLEVELAND, July 21, 2026 - KeyCorp (NYSE: KEY) announced net income from continuing operations attributable to Key common shareholders of $472 million, or $0.44 per diluted common share, for the second quarter of 2026. For the first quarter of 2026, net income from continuing operations attributable to Key common shareholders was $486 million, or $0.44 per diluted common share. For the second quarter of 2025, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $387 million, or $0.35 per diluted common share.

Comments from Chairman and CEO, Chris Gorman
"Our second quarter results reflect the strength of our franchise, disciplined execution, and sustained momentum across our businesses. We delivered 7% revenue growth and generated approximately 130 basis points of operating leverage(b) on a year-over-year basis. We expanded net interest margin and grew net interest income both sequentially and year-over-year.

We continue to deepen client relationships while attracting new clients across our markets. Our priority growth businesses - investment banking, commercial payments, and wealth management - are performing exceptionally well. Investment banking pipelines grew 9% sequentially. Commercial payments continued to deliver strong, double digit fee growth year-over-year. Assets under management grew to a record $74 billion. These results reinforce the value of our relationship-driven model and the differentiated capabilities we have scaled across multiple businesses.

I remain confident in our ability to generate a return on tangible common equity exceeding 15% by year-end 2027. We remain committed to delivering attractive returns to shareholders through both the return on and the return of capital. During the quarter, we repurchased more than $340 million of common shares, reflecting our confidence in the business and our commitment to creating long-term shareholder value.

We are operating from a position of strength, supported by a resilient balance sheet, a diversified business model, and strong capital generation. While the operating environment remains dynamic, our performance in the first half of the year demonstrates the power of our strategy, the depth of our client relationships, and the agility of our teammates.

Looking ahead, we remain focused on the significant organic growth opportunities in front of us, investing in the capabilities that will further differentiate our franchise, and delivering value for all of our stakeholders."

(a) June 30, 2026 ratio is estimated.
(b) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 2
Selected Financial Highlights
Dollars in millions, except per share dataChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Income (loss) from continuing operations attributable to Key common shareholders$472 $486 $387 (2.9)%22.0%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
0.44 0.44 0.35 — 25.7
Book value at period end16.19 16.13 15.32 0.4 5.7 
Return on average tangible common equity from continuing operations (a)
12.89 %13.02 %11.09 %(13) bps180 bps
Return on average total assets from continuing operations1.08 1.14 .91 (6)17
Common Equity Tier 1 ratio (b)
11.2 11.4 11.7 (20)(50)
Net interest margin (TE) from continuing operations2.89 2.87 2.66 2 23 
(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)June 30, 2026 ratio is estimated.
TE = Taxable Equivalent

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millionsChange 2Q26 vs.
 2Q261Q262Q251Q262Q25
Net interest income (TE) (a)
$1,258 $1,230 $1,150 2.3 %9.4 %
Noninterest income706 723 690 (2.4)2.3
Total revenue (TE)$1,964 $1,953 $1,840 0.6 %6.7 %
(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures. 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

Taxable-equivalent net interest income was $1.26 billion for the second quarter of 2026 and the net interest margin was 2.89%. Compared to the second quarter of 2025, net interest income increased by $108 million, and the net interest margin increased by 23 basis points. These increases were driven by a reduction in deposit costs as a result of declining interest rates and proactive deposit beta management, the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher yielding investments, and a shift in the balance sheet composition to a more favorable mix of higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on repricing earning assets.

Compared to the first quarter of 2026, taxable-equivalent net interest income increased by $28 million, and the net interest margin increased by 2 basis points. These increases reflect growth in commercial and industrial loans and the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher-yielding investments. Additionally, net interest income benefited from one additional day in the second quarter of 2026 compared to the first quarter of 2026.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 3
Noninterest Income
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Trust and investment services income$159 $157 $146 1.3 %8.9 %
Investment banking and debt placement fees169 197 178 (14.2)(5.1)
Cards and payments income94 86 85 9.3 10.6 
Service charges on deposit accounts77 77 73 — 5.5 
Corporate services income80 71 76 12.7 5.3 
Commercial mortgage servicing fees49 62 70 (21.0)(30.0)
Corporate-owned life insurance income33 34 32 (2.9)3.1 
Consumer mortgage income17 13 15 30.8 13.3 
Operating lease income and other leasing gains10 8 14 25.0 (28.6)
Other income15 18 1 (16.7)N/M
Net securities gains (losses)3 — — N/MN/M
Total noninterest income$706 $723 $690 (2.4)%2.3%
N/M = Not Meaningful

Compared to the second quarter of 2025, noninterest income increased by $16 million. The increase was driven by a $13 million increase in trust and investment services income, as well as a $14 million increase in other income. These were partially offset by a $21 million decrease in commercial mortgage servicing fees.

Compared to the first quarter of 2026, noninterest income decreased by $17 million. The decrease was driven by a $28 million decrease in investment banking and debt placement fees, and a $13 million decrease in commercial mortgage servicing fees. These were partially offset by a $9 million increase in corporate services income and an $8 million increase in cards and payments income.

Noninterest Expense
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Personnel expense$786 $743 $705 5.8 %11.5 %
Net occupancy68 68 69 — (1.4)
Computer processing108 111 107 (2.7)0.9 
Business services and professional fees46 36 48 27.8 (4.2)
Equipment22 19 21 15.8 4.8 
Operating lease expense7 7 10 — (30.0)
Marketing22 18 24 22.2 (8.3)
Other expense158 179 170 (11.7)(7.1)
Total noninterest expense$1,217 $1,181 $1,154 3.0 %5.5 %
    
Compared to the second quarter of 2025, noninterest expense increased by $63 million. The increase was predominantly driven by an $81 million increase in personnel expense primarily related to employee benefits, incentive compensation associated with noninterest income growth, and continued investments in people.

    Compared to the first quarter of 2026, noninterest expense increased by $36 million. The increase was predominantly driven by a $43 million increase in personnel expense, primarily related to incentive compensation, as well as a $10 million increase in business services and professional fees. These were partially offset by a $21 million decrease in other expense primarily related to lower charitable contributions.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 4

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Commercial and industrial (a)
$62,134 $59,149 $55,604 5.0 %11.7 %
Other commercial loans18,844 18,918 18,708 (0.4)0.7 
Total consumer loans29,094 29,670 31,403 (1.9)(7.4)
Total loans$110,072 $107,737 $105,715 2.2 %4.1 %
(a)Commercial and industrial average loan balances include $209 million, $205 million, and $218 million of assets from commercial credit cards at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Average loans were $110.1 billion for the second quarter of 2026, an increase of $4.4 billion compared to the second quarter of 2025. Average commercial loans increased by $6.7 billion, primarily driven by a $6.5 billion increase in commercial and industrial loans. Average consumer loans declined by $2.3 billion, reflective of the intentional run-off of low-yielding loans.

Compared to the first quarter of 2026, average loans increased by $2.3 billion. Average commercial loans increased $2.9 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $576 million, reflective of broad-based declines across all consumer loan categories.

Average Deposits
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Non-time deposits$135,828 $135,522 $131,845 0.2 %3.0 %
Time deposits11,749 11,777 15,601 (0.2)(24.7)
Total deposits$147,577 $147,299 $147,446 0.2 %0.1 %
Cost of total deposits1.63 %1.65 %1.99 %(2) bps(36) bps


    Average deposits totaled $147.6 billion for the second quarter of 2026, an increase of $131 million compared to the year-ago quarter, reflecting growth in demand deposits, partially offset by a decline in time deposits.

Compared to the first quarter of 2026, average deposits increased by $278 million. The increase was driven by growth in noninterest bearing deposits, partially offset by lower demand deposits. The rate paid on interest-bearing deposits was flat sequentially, and the overall cost of deposits declined by 2 basis points to 1.63%.





KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 5
ASSET QUALITY
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Net loan charge-offs$115 $101 $102 13.9 %12.7 %
Net loan charge-offs to average total loans0.42 %0.38 %0.39 %4 bps3 bps
Nonperforming loans at period end$809 $682 $696 18.6 %16.2 %
Nonperforming loans to period-end portfolio loans0.73 %0.62 %0.65 %11 bps8 bps
Nonperforming assets at period end$818 $692 $707 18.2 %15.7 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets0.74 %0.63 %0.66 %11 bps8 bps
Allowance for loan and lease losses$1,445 $1,449 $1,446 (0.3)%(0.1)%
Allowance for credit losses1,722 1,745 1,743 (1.3)%(1.2)%
Allowance for credit losses to period-end loans1.56 %1.60 %1.64 %(4) bps(8) bps
Provision for credit losses$92 $106 $138 (13.2)%(33.3)%
Allowance for loan and lease losses to nonperforming loans179 %212 %208 %N/MN/M
Allowance for credit losses to nonperforming loans213 256 250 N/MN/M
N/M = Not Meaningful

    Net loan charge-offs for the second quarter of 2026 totaled $115 million, or 0.42% of average total loans. These results compare to $102 million, or 0.39%, for the second quarter of 2025 and $101 million, or 0.38%, for the first quarter of 2026.

Key’s allowance for credit losses was $1.7 billion, or 1.56% of total period-end loans at June 30, 2026, compared to 1.64% at June 30, 2025, and 1.60% at March 31, 2026. A reserve release of $23 million during the second quarter of 2026 was the result of resilient economic scenario assumptions and the improving mix shift of commercial loans.

    At June 30, 2026, Key’s nonperforming loans totaled $809 million, which represented 0.73% of period-end portfolio loans. These results compare to 0.65% at June 30, 2025, and 0.62% at March 31, 2026. Nonperforming assets at June 30, 2026, totaled $818 million, and represented 0.74% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.66% at June 30, 2025, and 0.63% at March 31, 2026.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2026.
Capital Ratios
6/30/20263/31/20266/30/2025
Common Equity Tier 1 (a)
11.2 %11.4 %11.7 %
Tier 1 risk-based capital (a)
12.8 13.0 13.4 
Total risk-based capital (a)
14.8 15.2 15.7 
Tangible common equity to tangible assets (b)
7.7 8.0 7.8 
Leverage (a)
10.3 10.5 10.3 
(a)June 30, 2026 ratio is estimated.
(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 second quarter of 2026. As shown in the preceding table, at June 30, 2026, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.2% and 12.8%, respectively.



KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 6
Summary of Changes in Common Shares Outstanding
In thousandsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Shares outstanding at beginning of period1,087,293 1,102,401 1,111,986 (1.4)%(2.2)%
Share repurchases(15,531)(17,969)— (13.6)N/M
Shares issued under employee compensation plans (net of cancellations and returns)273 2,861 467 (90.5)(41.5)
Shares outstanding at end of period1,072,035 1,087,293 1,112,453 (1.4)%(3.6)%
N/M = Not Meaningful

    During the second quarter of 2026, Key declared a dividend of $.205 per common share. The reduction in share count was driven by $341 million of common shares repurchased.

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 millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Revenue from continuing operations (TE)
Consumer Bank$1,010 $977 $966 3.4 %4.6 %
Commercial Bank1,108 1,119 1,074 (1.0)3.2 
Other (a)
(154)(143)(200)(7.7)23.0
Total$1,964 $1,953 $1,840 0.6 %6.7 %
Income (loss) from continuing operations attributable to Key
Consumer Bank$203 $174 $165 16.7 %23.0 %
Commercial Bank423 452 423 (6.4)— 
Other (a)
(118)(104)(165)(13.5)28.5
Total$508 $522 $423 (2.7)%20.1 %
(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 represent the unallocated portion of nonearning assets of corporate support functions. Other also includes the residual net impact of our internal funds transfer pricing methodology, which arise from centrally managed interest rate activities and asset-liability repricing differences. 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


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 7
Consumer Bank
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Summary of operations
Net interest income (TE)$757 $738 $731 2.6 %3.6 %
Noninterest income253 239 235 5.9 7.7 
Total revenue (TE)1,010 977 966 3.4 4.6 
Provision for credit losses26 40 55 (35.0)(52.7)
Noninterest expense716 708 693 1.1 3.3 
Income (loss) before income taxes (TE)268 229 218 17.0 22.9 
Allocated income taxes (benefit) and TE adjustments65 55 53 18.2 22.6 
Net income (loss) attributable to Key$203 $174 $165 16.7 %23.0 %
Average balances
Loans and leases$33,263 $33,997 $36,138 (2.2)%(8.0)%
Total assets36,630 37,341 39,156 (1.9)(6.5)
Deposits87,399 87,796 88,002 (0.5)(0.7)
Assets under management at period end$74,204 $69,756 $64,244 6.4 %15.5 %
TE = Taxable Equivalent
Additional Consumer Bank Data
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Noninterest income
Trust and investment services income$135 $130 $119 3.8 %13.4 %
Service charges on deposit accounts33 34 35 (2.9)(5.7)
Cards and payments income60 54 60 11.1 — 
Consumer mortgage income16 13 14 23.1 14.3 
Other noninterest income9 8 7 12.5 28.6 
Total noninterest income$253 $239 $235 5.9 %7.7 %
Average deposit balances
Money market deposits$36,116 $35,920 $34,524 0.5 %4.6 %
Demand deposits22,861 23,214 22,784 (1.5)0.3 
Savings deposits4,238 4,199 4,406 0.9 (3.8)
Time deposits10,102 10,610 11,907 (4.8)(15.2)
Noninterest-bearing deposits14,082 13,853 14,381 1.7 (2.1)
Total deposits$87,399 $87,796 $88,002 (0.5)%(0.7)%
Other data
Branches939 940 943 
Automated teller machines1,107 1,112 1,166 

Consumer Bank Summary of Operations (2Q26 vs. 2Q25)
•Key's Consumer Bank recorded net income attributable to Key of $203 million for the second quarter of 2026, compared to $165 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $26 million, or 3.6%, compared to the second quarter of 2025
•Average loans and leases decreased $2.9 billion, or 8.0%, from the second quarter of 2025, reflective of the intentional run-off of low-yielding loans
•Average deposits decreased $603 million, or 0.7%, from the second quarter of 2025, driven by lower time deposits, partially offset by an increase in money market deposits
•Provision for credit losses decreased $29 million compared to the second quarter of 2025, primarily driven by favorable economic assumptions and portfolio credit trends
•Noninterest income increased $18 million from the year-ago quarter, primarily driven by higher trust and investment services income
•Noninterest expense increased $23 million from the year-ago quarter, primarily driven by higher personnel expense


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 8

Commercial Bank
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Summary of operations
Net interest income (TE)$697 $674 $649 3.4 %7.4 %
Noninterest income411 445 425 (7.6)(3.3)
Total revenue (TE)1,108 1,119 1,074 (1.0)3.2 
Provision for credit losses67 70 84 (4.3)(20.2)
Noninterest expense503 474 451 6.1 11.5 
Income (loss) before income taxes (TE)538 575 539 (6.4)(0.2)
Allocated income taxes and TE adjustments115 123 116 (6.5)(0.9)
Net income (loss) attributable to Key$423 $452 $423 (6.4)%— %
Average balances
Loans and leases$76,238 $73,146 $69,089 4.2 %10.3 %
Loans held for sale936 958 707 (2.3)32.4 
Total assets85,793 82,455 78,624 4.0 9.1 
Deposits58,895 58,929 55,927 (0.1)5.3 
TE = Taxable Equivalent


Additional Commercial Bank Data
Dollars in millionsChange 2Q26 vs.
2Q261Q262Q251Q262Q25
Noninterest income
Trust and investment services income$24 $27 $26 (11.1)%(7.7)
Investment banking and debt placement fees169 198 179 (14.6)(5.6)%
Cards and payments income29 27 21 7.4 38.1 
Service charges on deposit accounts44 43 39 2.3 12.8 
Corporate services income78 70 75 11.4 4.0 
Commercial mortgage servicing fees49 62 70 (21.0)(30.0)
Operating lease income and other leasing gains10 8 15 25.0 (33.3)
Other noninterest income8 10 — (20.0)N/M
Total noninterest income$411 $445 $425 (7.6)%(3.3)%
N/M = Not Meaningful

Commercial Bank Summary of Operations (2Q26 vs. 2Q25)
•Key's Commercial Bank recorded net income attributable to Key of $423 million for the second quarter of 2026, compared to $423 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $48 million, or 7.4%, compared to the second quarter of 2025
•Average loan and lease balances increased $7.1 billion, or 10.3%, compared to the second quarter of 2025, driven by an increase in commercial and industrial loans
•Average deposit balances increased $3.0 billion compared to the second quarter of 2025, driven by higher client deposits
•Provision for credit losses decreased $17 million compared to the second quarter of 2025, driven by the impact to reserves due to improved economic assumptions
•Noninterest income decreased $14 million compared to the second quarter of 2025, primarily driven by a decrease in commercial mortgage servicing fees
•Noninterest expense increased $52 million compared to the second quarter of 2025, driven by an increase in personnel expense and support and overhead expense


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 9

*******************************************

KeyCorp's roots trace back more than 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 $191 billion at June 30, 2026.

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 950 branches and approximately 1,100 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 Member FDIC.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 10
CONTACTS:
ANALYSTSMEDIA
Troy GatesSusan Donlan
216.689.3244216.471.3133
Troy_Gates@KeyBank.comSusan_E_Donlan@KeyBank.com
Hannah LewallenBeth Strauss
216.471.4856216.471.2787
Hannah_Lewallen@KeyBank.comBeth_A_Strauss@KeyBank.com
Johnny Li
646.551.8917
Johnny_Li@KeyBank.com
INVESTOR RELATIONS:KEY MEDIA NEWSROOM:
www.key.com/irwww.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, 2025 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 9:00 a.m. ET, on July 21, 2026. A replay of the call will be available on our website through July 21, 2027.
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 Second Quarter 2026 Results     
July 21, 2026
Page 11



KeyCorp
Second Quarter 2026
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
21
Loan Composition
21
Loans Held for Sale Composition
22
Summary of Changes in Loans Held for Sale
22
Summary of Loan and Lease Loss Experience From Continuing Operations
23
Asset Quality Statistics From Continuing Operations
23
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
23
Summary of Changes in Nonperforming Loans From Continuing Operations
24
Line of Business Results
24
Selected Items Impact on Earnings



KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
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 Second Quarter 2026 Results     
July 21, 2026
Page 13
Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
6/30/20263/31/20266/30/2025
Summary of operations
Net interest income (TE)$1,258 $1,230 $1,150 
Noninterest income706 723 690 
Total revenue (TE)
1,964 1,953 1,840 
Provision for credit losses92 106 138 
Noninterest expense1,217 1,181 1,154 
Income (loss) from continuing operations attributable to Key508 522 423 
Income (loss) from discontinued operations, net of taxes1 — 2 
Net income (loss) attributable to Key509 522 425 
Income (loss) from continuing operations attributable to Key common shareholders472 486 387 
Income (loss) from discontinued operations, net of taxes1 — 2 
Net income (loss) attributable to Key common shareholders473 486 389 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$0.44 $0.45 $0.35 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
0.44 0.45 0.35 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution0.44 0.44 0.35 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
0.44 0.44 0.35 
Cash dividends declared0.205 0.205 0.205 
Book value at period end16.19 16.13 15.32 
Tangible book value at period end13.62 13.60 12.83 
Market price at period end23.05 20.05 17.42 
Performance ratios
From continuing operations:
Return on average total assets1.08 %1.14 %0.91 %
Return on average common equity10.85 11.02 9.26 
Return on average tangible common equity (b)
12.89 13.02 11.09 
Net interest margin (TE)2.89 2.87 2.66 
Cash efficiency ratio (b)
61.9 60.4 62.4 
From consolidated operations:
Return on average total assets1.08 %1.14 %0.91 %
Return on average common equity10.87 11.02 9.31 
Return on average tangible common equity (b)
12.91 13.02 11.15 
Net interest margin (TE)2.89 2.87 2.66 
Loan to deposit (c)
73.0 74.6 72.9 
Capital ratios at period end
Key shareholders’ equity to assets10.3 %10.6 %10.5 %
Key common shareholders’ equity to assets9.1 9.3 9.2 
Tangible common equity to tangible assets (b)
7.7 8.0 7.8 
Common Equity Tier 1 (d)
11.2 11.4 11.7 
Tier 1 risk-based capital (d)
12.8 13.0 13.4 
Total risk-based capital (d)
14.8 15.2 15.7 
Leverage (d)
10.3 10.5 10.3 
Asset quality — from continuing operations
Net loan charge-offs
$115 $101 $102 
Net loan charge-offs to average loans
0.42 %0.38 %0.39 %
Allowance for loan and lease losses
$1,445 $1,449 $1,446 
Allowance for credit losses
1,722 1,745 1,743 
Allowance for loan and lease losses to period-end loans
1.31 %1.33 %1.36 %
Allowance for credit losses to period-end loans
1.56 1.60 1.64 
Allowance for loan and lease losses to nonperforming loans179 212 208 
Allowance for credit losses to nonperforming loans213 256 250 
Nonperforming loans at period-end$809 $682 $696 
Nonperforming assets at period-end818 692 707 
Nonperforming loans to period-end portfolio loans0.73 %0.62 %0.65 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets0.74 0.63 0.66 
Trust assets
Assets under management$74,204 $69,756 $64,244 
Other data
Average full-time equivalent employees
17,517 17,469 17,105 
Branches
939 940 943 
Taxable-equivalent adjustment
$8 $8 $9 
(a)Earnings per share may not foot due to rounding.
(b)The table entitled “GAAP to Non-GAAP Reconciliations” starting on page 15 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)June 30, 2026, ratio is estimated.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 14
Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Six months ended
6/30/20266/30/2025
Summary of operations
Net interest income (TE)$2,488 $2,255 
Noninterest income1,429 1,358 
Total revenue (TE)3,917 3,613 
Provision for credit losses198 256 
Noninterest expense2,398 2,285 
Income (loss) from continuing operations attributable to Key1,030 829 
Income (loss) from discontinued operations, net of taxes1 1 
Net income (loss) attributable to Key1,031 830 
Income (loss) from continuing operations attributable to Key common shareholders958 757 
Income (loss) from discontinued operations, net of taxes1 1 
Net income (loss) attributable to Key common shareholders959 758 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$0.89 $0.69 
Income (loss) from discontinued operations, net of taxes— — 
Net income (loss) attributable to Key common shareholders (a)
0.89 0.69 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution0.88 0.69 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
0.88 0.69 
Cash dividends paid0.41 0.41 
Performance ratios
From continuing operations:
Return on average total assets1.11 %0.90 %
Return on average common equity10.93 9.28 
Return on average tangible common equity (b)
12.96 11.16 
Net interest margin (TE)2.88 2.62 
Cash efficiency ratio (b)
61.1 63.0 
From consolidated operations:
Return on average total assets1.11 %0.90 %
Return on average common equity10.95 9.29 
Return on average tangible common equity (b)
12.97 11.18 
Net interest margin (TE)2.88 2.62 
Asset quality — from continuing operations
Net loan charge-offs$216 $212 
Net loan charge-offs to average total loans0.40 %0.41 %
Other data
Average full-time equivalent employees17,493 17,047 
Taxable-equivalent adjustment16 18 
(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.



KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 15
GAAP to Non-GAAP Reconciliations
(Dollars in millions)
The table below presents certain non-GAAP financial measures defined and described below.

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. Adjusted return on average tangible common equity 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.

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. The adjusted cash efficiency ratio excludes significant or unusual items that management does not consider indicative of ongoing financial performance

Adjusted taxable-equivalent revenue or adjusted 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.

Adjusted noninterest income and adjusted noninterest expense are non-GAAP measures in that they exclude significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes these measures 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.

Adjusted operating leverage and fee-based adjusted operating leverage are non-GAAP performance measures that utilize revenue on a tax-equivalent basis and adjust revenue and expense for significant and unusual items. Management utilizes these measurements in analyzing performance and believes that adjusting for significant and unusual items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.

Marked CET1 ratio is a non-GAAP measure and is calculated based on Common Equity Tier 1 capital, inclusive of the AOCI impact from securities and pension. The marked CET1 ratio differs from the defined CET1 regulatory capital ratio by including the impact of AFS and pension accumulated other comprehensive income (loss) (AOCI) amounts in the calculation of the capital ratio. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed may be considered non-GAAP financial measures. Management believes this measure provides useful information in light of the potential for change in the regulatory capital framework.

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 endedSix months ended
6/30/20263/31/20266/30/20256/30/20266/30/2025
Net interest income (GAAP)$1,250 $1,222 $1,141 $2,472 $2,237 
Add: Taxable-equivalent adjustment8 8 9 16 18 
Net interest income TE (non-GAAP) (A)$1,258 $1,230 $1,150 $2,488 $2,255 
Net income (loss) attributable to Key common shareholders (GAAP) (B)$473 $486 $389 $959 $758 
Average Key shareholders' equity (GAAP)$19,947 $20,392 $19,268 $20,169 $18,952 
Less: Average intangible assets2,756 2,758 2,772 2,757 2,774 
          Average preferred stock2,500 2,500 2,500 2,500 2,500 
 Average tangible common equity (non-GAAP) (C)$14,691 $15,134 $13,996 $14,912 $13,678 
Key shareholders' equity (GAAP)$19,798 $19,987 $19,484 
Less: Intangible assets2,755 2,757 2,770 
             Preferred stock (a)
2,446 2,446 2,446 
Tangible common equity (non-GAAP) (D)$14,597 $14,784 $14,268 
Total assets (GAAP)$191,317 $188,663 $185,499 
Less: Intangible assets2,755 2,757 2,770 
 Tangible assets (non-GAAP) (E)$188,562 $185,906 $182,729 
Tangible common equity to tangible assets ratio (non-GAAP) (D/E)7.74 %7.95 %7.81 %
Return on average tangible common equity consolidated (non-GAAP) (B/C)12.91 %13.02 %11.15 %12.97 %11.18 %
Common equity tier 1 (F)$17,016 $17,038 $16,775 
Add: AFS and Pension AOCI (loss)(2,154)(2,152)(2,476)
Marked common equity tier 1 (non-GAAP) (G) (b)
$14,862 $14,886 $14,299 
Risk-weighted assets (H) (c)
$152,317 $149,338 $143,427 
Common equity tier 1 ratio (F/H) (c)
11.2 %11.4 %11.7 %
Marked CET1 ratio (non-GAAP) (G/H) (b)(c)
9.8 10.0 10.0 



KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 16
GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months endedSix months ended
6/30/20263/31/20266/30/20256/30/20266/30/2025
Income (loss) from continuing operations attributable to Key common shareholders (GAAP) (I)$472 $486 $387 $958 $757 
Plus: Selected items (net of tax) (d)
— — — — — 
Net income (loss) from continuing operations attributable to Key common shareholders, excluding selected items (non-GAAP) (J)$472 $486 $387 $958 $757 
Return on average tangible common equity from continuing operations (non-GAAP) (I/C)12.89 %13.02 %11.09 %12.96 %11.16 %
Adjusted return on average tangible common equity from continuing operations excluding selected items (non-GAAP) (J/C)12.89 13.02 11.09 12.96 11.16 
Noninterest income (GAAP) (K)$706 $723 $690 $1,429 $1,358 
Plus: Selected items (d)
— — — — — 
Adjusted noninterest income (non-GAAP) (L)$706 $723 $690 $1,429 $1,358 
Noninterest expense (GAAP) (M)$1,217 $1,181 $1,154 $2,398 $2,285 
Less: Intangible asset amortization2 2 5 4 10 
Noninterest expense less intangible asset amortization (non-GAAP) (N)$1,215 $1,179 $1,149 $2,394 $2,275 
Plus: Selected items (d) (O)
— — — — — 
Adjusted noninterest expense less intangible asset amortization (non-GAAP) (P)$1,215 $1,179 $1,149 $2,394 $2,275 
Adjusted noninterest expense (non-GAAP) (M+O)$1,217 $1,181 $1,154 $2,398 $2,285 
Total taxable-equivalent revenue (non-GAAP) (A+K) = (Q)$1,964 $1,953 $1,840 $3,917 $3,613 
Total adjusted taxable-equivalent revenue (non-GAAP) (A+L)1,964 1,953 1,840 3,917 3,613 
Cash efficiency ratio (non-GAAP) (N/Q)61.86 %60.37 %62.45 %61.12 %62.97 %
Adjusted cash efficiency ratio (non-GAAP) (P/Q)61.86 60.37 62.45 61.12 62.97 
Pre-provision net revenue from continuing operations (non-GAAP) (A+K-M)$747 $772 $686 $1,519 $1,328 
Plus: Selected items (d)
— — — — — 
Adjusted pre-provison net revenue from continuing operations (non-GAAP)$747 $772 $686 $1,519 $1,328 
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)$0.44 $0.44 $0.35 $0.88 $0.69 
Plus: EPS impact of selected items (d)
— — — — — 
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP) (e)
$0.44 $0.44 $0.35 $0.88 $0.69 
Adjusted operating leverage and fee based adjusted operating leverage
Adjusted noninterest income YoY Growth (R)2.32 %8.23 %10.05 %76.64 %(36.50)%
Adjusted taxable-equivalent revenue YoY Growth (S)6.74 10.15 20.58 8.41 18.11 
Adjusted noninterest expense YoY Growth (T)5.46 4.42 44.79 4.95 4.43 
Adjusted operating leverage (S - T)1.28 5.73 (24.22)3.47 13.68 
Adjusted fee-based operating leverage (R - T)(3.14)3.81 (34.75)71.69 (40.93)
(a)Net of capital surplus.
(b)Under the current applicable regulatory capital rules, Key has made the AOCI opt out election, which enables us to exclude components of AOCI from regulatory capital, notably the AOCI relative to securities and pension.
(c)Amounts and ratios as of June 30, 2026 are estimated.
(d)Additional detail provided in Selected Items table on page 24.
(e)Earnings per share may not foot due to rounding.
GAAP = U.S. generally accepted accounting principles; TE = Taxable Equivalent




KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 17
Consolidated Balance Sheets
(Dollars in millions)
6/30/20263/31/20266/30/2025
Assets
Loans$110,430 $109,190 $106,389 
Loans held for sale1,198 876 530 
Securities available for sale38,459 38,918 40,669 
Held-to-maturity securities9,515 9,116 6,914 
Trading account assets936 783 1,374 
Short-term investments12,416 11,782 11,564 
Other investments1,230 1,204 1,058 
Total earning assets174,184 171,869 168,498 
Allowance for loan and lease losses(1,445)(1,449)(1,446)
Cash and due from banks1,711 1,130 1,766 
Premises and equipment620 618 599 
Goodwill2,752 2,752 2,752 
Other intangible assets3 5 18 
Corporate-owned life insurance4,456 4,439 4,423 
Accrued income and other assets8,848 9,100 8,654 
Discontinued assets188 199 235 
Total assets$191,317 $188,663 $185,499 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits$122,196 $120,220 $119,230 
Noninterest-bearing deposits30,893 27,595 27,675 
Total deposits153,089 147,815 146,905 
Federal funds purchased and securities sold under repurchase agreements 5 34 20 
Bank notes and other short-term borrowings3,680 6,149 2,754 
Accrued expense and other liabilities3,778 3,801 4,273 
Long-term debt10,967 10,877 12,063 
Total liabilities171,519 168,676 166,015 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,014 5,981 5,971 
Retained earnings15,873 15,622 14,886 
Treasury stock, at cost(3,492)(3,152)(2,629)
Accumulated other comprehensive income (loss)(2,354)(2,221)(2,501)
Key shareholders’ equity19,798 19,987 19,484 
Total liabilities and equity$191,317 $188,663 $185,499 
Common shares outstanding (000)1,072,035 1,087,293 1,112,453 
    





KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 18
Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Six months ended
6/30/20263/31/20266/30/20256/30/20266/30/2025
Interest income
Loans$1,463 $1,416 $1,443 $2,879 $2,844 
Loans held for sale15 14 11 29 25 
Securities available for sale367 370 411 737 803 
Held-to-maturity securities95 86 61 181 124 
Trading account assets10 11 16 21 33 
Short-term investments101 103 157 204 331 
Other investments8 5 8 13 17 
Total interest income2,059 2,005 2,107 4,064 4,177 
Interest expense
Deposits600 598 730 1,198 1,483 
Federal funds purchased and securities sold under repurchase agreements19 14 4 33 5 
Bank notes and other short-term borrowings35 20 34 55 61 
Long-term debt155 151 198 306 391 
Total interest expense809 783 966 1,592 1,940 
Net interest income1,250 1,222 1,141 2,472 2,237 
Provision for credit losses92 106 138 198 256 
Net interest income after provision for credit losses1,158 1,116 1,003 2,274 1,981 
Noninterest income
Trust and investment services income159 157 146 316 285 
Investment banking and debt placement fees169 197 178 366 353 
Cards and payments income94 86 85 180 167 
Service charges on deposit accounts77 77 73 154 142 
Corporate services income80 71 76 151 141 
Commercial mortgage servicing fees49 62 70 111 146 
Corporate-owned life insurance income33 34 32 67 65 
Consumer mortgage income17 13 15 30 28 
Operating lease income and other leasing gains10 8 14 18 23 
Other income15 18 1 33 8 
Net securities gains (losses)3 — — 3 — 
Total noninterest income706 723 690 1,429 1,358 
Noninterest expense
Personnel786 743 705 1,529 1,385 
Net occupancy68 68 69 136 136 
Computer processing108 111 107 219 214 
Business services and professional fees46 36 48 82 88 
Equipment22 19 21 41 41 
Operating lease expense7 7 10 14 21 
Marketing22 18 24 40 45 
Other expense158 179 170 337 355 
Total noninterest expense1,217 1,181 1,154 2,398 2,285 
Income (loss) from continuing operations before income taxes647 658 539 1,305 1,054 
Income taxes (benefit)139 136 116 275 225 
Income (loss) from continuing operations508 522 423 1,030 829 
Income (loss) from discontinued operations, net of taxes1 — 2 1 1 
Net income (loss)$509 $522 $425 $1,031 $830 
Income (loss) from continuing operations attributable to Key common shareholders$472 $486 $387 $958 $757 
Net income (loss) attributable to Key common shareholders473 486 389 959 758 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$0.44 $0.45 $0.35 $0.89 $0.69 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
0.44 0.45 0.35 0.89 0.69 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$0.44 $0.44 $0.35 $0.88 $0.69 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
0.44 0.44 0.35 0.88 0.69 
Cash dividends declared per common share$0.205 $0.205 $0.205 $0.410 $0.410 
Weighted-average common shares outstanding (000)1,071,229 1,084,277 1,100,033 1,077,977 1,098,453 
Effect of common share options and other stock awards(b)
8,779 10,091 7,177 9,435 8,331 
Weighted-average common shares and potential common shares outstanding (000) (c)
1,080,008 1,094,368 1,107,210 1,087,412 1,106,784 
(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 Second Quarter 2026 Results     
July 21, 2026
Page 19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Second Quarter 2026First Quarter 2026Second Quarter 2025
AverageYield/AverageYield/AverageYield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$62,134 $896 5.78 %$59,149 $843 5.76 %$55,604 $838 6.04 %
Real estate — commercial mortgage13,911 197 5.68 13,902 198 5.76 13,311 200 6.02 
Real estate — construction2,816 46 6.53 2,803 45 6.50 2,873 50 6.95 
Commercial lease financing2,117 20 3.77 2,213 21 3.81 2,524 22 3.59 
Total commercial loans80,978 1,159 5.73 78,067 1,107 5.73 74,312 1,110 5.99 
Real estate — residential mortgage18,305 153 3.35 18,593 155 3.34 19,446 162 3.34 
Home equity loans5,470 73 5.33 5,609 74 5.35 6,091 86 5.63 
Other consumer loans4,410 57 5.18 4,558 58 5.16 4,946 63 5.09 
Credit cards909 29 12.67 910 30 13.24 920 31 13.44 
Total consumer loans29,094 312 4.29 29,670 317 4.30 31,403 342 4.36 
Total loans110,072 1,471 5.35 107,737 1,424 5.35 105,715 1,452 5.51 
Loans held for sale1,085 15 5.68 1,092 14 4.99 770 11 5.72 
Securities available for sale (b), (e)
38,518 367 3.58 39,403 370 3.59 40,714 411 3.76 
Held-to-maturity securities (b)
9,425 95 4.05 8,795 86 3.91 7,038 61 3.46 
Trading account assets797 10 5.30 865 11 4.96 1,259 16 5.32 
Short-term investments10,705 101 3.79 11,134 103 3.74 13,489 157 4.67 
Other investments (e)
1,214 8 2.66 1,075 5 1.97 1,015 8 3.41 
Total earning assets171,816 2,067 4.75 170,101 2,013 4.71 170,000 2,116 4.90 
Allowance for loan and lease losses(1,442)(1,419)(1,424)
Accrued income and other assets17,926 17,567 18,224 
Discontinued assets192 204 239 
Total assets$188,492 $186,453 $187,039 
Liabilities
Money market deposits$42,843 $225 2.11 %$42,732 $223 2.12 %$42,586 $276 2.60 %
Demand deposits61,013 280 1.84 61,478 279 1.84 57,155 309 2.17 
Savings deposits4,406 1 0.04 4,378 1 0.04 4,631 1 0.06 
Time deposits11,749 94 3.21 11,777 95 3.26 15,601 144 3.70 
Total interest-bearing deposits120,011 600 2.01 120,365 598 2.01 119,973 730 2.44 
Federal funds purchased and securities sold under repurchase agreements2,002 19 3.71 1,539 14 3.69 415 4 4.28 
Bank notes and other short-term borrowings4,179 35 3.33 2,585 20 3.20 3,288 34 4.27 
Long-term debt (f)
10,694 155 5.84 10,186 151 5.96 12,088 198 6.55 
Total interest-bearing liabilities136,886 809 2.37 134,675 783 2.35 135,764 966 2.86 
Noninterest-bearing deposits27,566 26,934 27,473 
Accrued expense and other liabilities3,901 4,248 4,295 
Discontinued liabilities (f)
192 204 239 
Total liabilities$168,545 $166,061 $167,771 
Equity
Total equity$19,947 $20,392 $19,268 
Total liabilities and equity$188,492 $186,453 $187,039 
Interest rate spread (TE)2.38 %2.36 %2.04 %
Net interest income (TE) and net interest margin (TE)$1,258 2.89 %$1,230 2.87 %$1,150 2.66 %
TE adjustment (b)
889
Net interest income, GAAP basis$1,250 $1,222 $1,141 
(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 June 30, 2026, March 31, 2026, and June 30, 2025.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $209 million, $205 million, and $218 million of assets from commercial credit cards for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, 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 $41.0 billion, $41.5 billion, and $43.8 billion for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.81%, 3.75%, and 4.03% for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, 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 Second Quarter 2026 Results     
July 21, 2026
Page 20
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Six months ended June 30, 2026Six months ended June 30, 2025
AverageYield/AverageYield/
BalanceInterest (a)Rate (a)BalanceInterest (a)Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$60,650 $1,739 5.77 %$54,680 $1,638 6.04 %
Real estate — commercial mortgage13,906 3955.72 13,187 3925.99 
Real estate — construction2,810 91 6.52 2,889 99 6.91 
Commercial lease financing2,165 41 3.79 2,588 46 3.55 
Total commercial loans79,531 2,266 5.73 73,344 2,175 5.98 
Real estate — residential mortgage18,448 308 3.35 19,591 327 3.34 
Home equity loans5,539 147 5.34 6,169 172 5.62 
Other consumer loans4,483 115 5.17 5,016 126 5.05 
Credit cards910 59 12.95 919 62 13.74 
Total consumer loans29,380 629 4.30 31,695 687 4.35 
Total loans108,911 2,895 5.34 105,039 2,862 5.49 
Loans held for sale1,088 29 5.33 792 25 6.23 
Securities available for sale (b), (e)
38,958 737 3.58 40,021 803 3.73 
Held-to-maturity securities (b)
9,112 181 3.98 7,156 124 3.46 
Trading account assets831 21 5.13 1,277 33 5.26 
Short-term investments10,918 204 3.77 14,345 331 4.65 
Other investments (e)
1,145 13 2.33 975 17 3.57 
Total earning assets170,963 4,080 4.73 169,605 4,195 4.88 
Allowance for loan and lease losses(1,431)(1,413)
Accrued income and other assets17,748 18,254 
Discontinued assets198 246 
Total assets$187,478 $186,692 
Liabilities
Money market deposits$42,788 $448 2.12 %$42,298 $551 2.63 %
Other demand deposits61,244 559 1.84 57,307 619 2.18 
Savings deposits4,392 2 0.04 4,620 2 0.06 
Time deposits11,763 189 3.23 16,110 311 3.90 
Total interest-bearing deposits120,187 1,198 2.01 120,335 1,483 2.49 
Federal funds purchased and securities sold under repurchase agreements1,772 33 3.70 258 5 4.22 
Bank notes and other short-term borrowings3,386 55 3.28 2,784 61 4.47 
Long-term debt (f)
10,442 306 5.90 11,934 391 6.58 
Total interest-bearing liabilities135,787 1,592 2.36 135,311 1,940 2.89 
Noninterest-bearing deposits27,251 27,655 
Accrued expense and other liabilities4,073 4,528 
Discontinued liabilities (f)
198 246 
Total liabilities$167,309 $167,740 
Equity
Total equity$20,169 $18,952 
Total liabilities and equity$187,478 $186,692 
Interest rate spread (TE)2.37 %1.99 %
Net interest income (TE) and net interest margin (TE)$2,488 2.88 %$2,255 2.62 %
TE adjustment (b)
1618 
Net interest income, GAAP basis$2,472 $2,237 
(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 six months ended June 30, 2026, and June 30, 2025, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $207 million and $216 million of assets from commercial credit cards for the six months ended June 30, 2026, and June 30, 2025, 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 $41.3 billion and $43.2 billion for the six months ended June 30, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.78% and 4.01% for the six months ended June 30, 2026, and June 30, 2025, 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 Second Quarter 2026 Results     
July 21, 2026
Page 21
Noninterest Expense
(Dollars in millions)
Three months endedSix months ended
6/30/20263/31/20266/30/20256/30/20266/30/2025
Personnel (a)
$786 $743 $705 $1,529 $1,385 
Net occupancy68 68 69 136 136 
Computer processing108 111 107 219 214 
Business services and professional fees46 36 48 82 88 
Equipment22 19 21 41 41 
Operating lease expense7 7 10 14 21 
Marketing22 18 24 40 45 
Other expense158 179 170 337 355 
Total noninterest expense$1,217 $1,181 $1,154 $2,398 $2,285 
Average full-time equivalent employees (b)
17,517 17,469 17,105 17,493 17,047 
(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 endedSix months ended
6/30/20263/31/20266/30/20256/30/20266/30/2025
Salaries and contract labor$448 $439 $427 $887 $832 
Incentive and stock-based compensation194 172 168 366 326 
Employee benefits140 127 108 267 217 
Severance4 5 2 9 10 
Total personnel expense$786 $743 $705 $1,529 $1,385 

Loan Composition
(Dollars in millions)
Change 6/30/2026 vs.
6/30/20263/31/20266/30/20253/31/20266/30/2025
Commercial and industrial (a)
$62,734 $60,651 $56,058 3.4 %11.9 %
Commercial real estate:
Commercial mortgage13,941 14,144 13,862 (1.4)0.6 
Construction2,896 2,801 2,830 3.4 2.3 
Total commercial real estate loans16,837 16,945 16,692 (0.6)0.9 
Commercial lease financing1,997 2,200 2,472 (9.2)(19.2)
Total commercial loans81,568 79,796 75,222 2.2 8.4 
Real estate — residential mortgage18,178 18,483 19,330 (1.7)(6.0)
Home equity loans5,408 5,528 6,023 (2.2)(10.2)
Other consumer loans4,349 4,477 4,881 (2.9)(10.9)
Credit cards927 906 933 2.3 (0.6)
Total consumer loans28,862 29,394 31,167 (1.8)(7.4)
Total loans (b), (c)
$110,430 $109,190 $106,389 1.1 %3.8 %
(a)Loan balances include $208 million, $207 million, and $220 million of commercial credit card balances at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
(b)Total loans exclude loans of $182 million at June 30, 2026, $194 million at March 31, 2026, and $230 million at June 30, 2025, related to the discontinued operations of the education lending business.
(c)Accrued interest of $453 million, $443 million, and $465 million at June 30, 2026, March 31, 2026, and June 30, 2025, 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 6/30/2026 vs.
6/30/20263/31/20266/30/20253/31/20266/30/2025
Commercial and industrial$559 $139 $158 302.2 %253.8 %
Real estate — commercial mortgage435 637 290 (31.7)50.0 
Real estate — residential mortgage204 100 82 104.0 148.8 
Total loans held for sale$1,198 $876 $530 36.8 %126.0 %


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 22
Summary of Changes in Loans Held for Sale
(Dollars in millions)
2Q261Q264Q253Q252Q25
Balance at beginning of period$876 $1,077 $998 $530 $811 
New originations2,099 2,034 3,356 3,471 1,806 
Transfers from (to) held to maturity, net34 (13)(35)— (71)
Loan sales(1,721)(2,201)(3,232)(2,956)(2,012)
Loan draws (payments), net(89)(25)(10)(42)(1)
Valuation and other adjustments(1)4 — (5)(3)
Balance at end of period$1,198 $876 $1,077 $998 $530 

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months endedSix months ended
6/30/20263/31/20266/30/20256/30/20266/30/2025
Average loans outstanding$110,072 $107,737 $105,715 $108,911 $105,039 
Allowance for loan and lease losses at the beginning of the period$1,449 $1,427 $1,429 $1,427 $1,409 
Loans charged off:
Commercial and industrial84 90 94 174 156 
Real estate — commercial mortgage20 1 6 21 42 
Real estate — construction— — — — — 
Total commercial real estate loans20 1 6 21 42 
Commercial lease financing1 — 2 1 2 
Total commercial loans105 91 102 196 200 
Real estate — residential mortgage1 — — 1 1 
Home equity loans— 1 — 1 1 
Other consumer loans14 15 13 29 27 
Credit cards11 10 12 21 24 
Total consumer loans26 26 25 52 53 
Total loans charged off131 117 127 248 253 
Recoveries:
Commercial and industrial9 10 19 19 29 
Real estate — commercial mortgage1 — 1 1 1 
Real estate — construction— — — — — 
Total commercial real estate loans1 — 1 1 1 
Commercial lease financing— — — — — 
Total commercial loans10 10 20 20 30 
Real estate — residential mortgage1 1 1 2 2 
Home equity loans— 1 1 1 2 
Other consumer loans3 2 2 5 4 
Credit cards2 2 1 4 3 
Total consumer loans6 6 5 12 11 
Total recoveries16 16 25 32 41 
Net loan charge-offs(115)(101)(102)(216)(212)
Provision (credit) for loan and lease losses111 123 119 234 249 
Allowance for loan and lease losses at end of period$1,445 $1,449 $1,446 $1,445 $1,446 
Liability for credit losses on lending-related commitments at beginning of period$296 $313 $278 $313 $290 
Provision (credit) for losses on lending-related commitments(19)(17)19 (36)7 
Liability for credit losses on lending-related commitments at end of period (a)
$277 $296 $297 $277 $297 
Total allowance for credit losses at end of period$1,722 $1,745 $1,743 $1,722 $1,743 
Net loan charge-offs to average total loans0.42 %0.38 %0.39 %0.40 %0.41 %
Allowance for loan and lease losses to period-end loans1.31 1.33 1.36 1.31 1.36 
Allowance for credit losses to period-end loans1.56 1.60 1.64 1.56 1.64 
Allowance for loan and lease losses to nonperforming loans179 212 208 179 208 
Allowance for credit losses to nonperforming loans213 256 250 213 250 
Discontinued operations — education lending business:
Loans charged off$— $1 $1 $1 $1 
Recoveries— — — — — 
Net loan charge-offs$— $(1)$(1)$(1)$(1)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 23
Asset Quality Statistics From Continuing Operations
(Dollars in millions)
2Q261Q264Q253Q252Q25
Net loan charge-offs$115 $101 $104 $114 $102 
Net loan charge-offs to average total loans0.42 %0.38 %0.39 %0.42 %0.39 %
Allowance for loan and lease losses$1,445 $1,449 $1,427 $1,444 $1,446 
Allowance for credit losses (a)
1,722 1,745 1,740 1,736 1,743 
Allowance for loan and lease losses to period-end loans1.31 %1.33 %1.34 %1.36 %1.36 %
Allowance for credit losses to period-end loans1.56 1.60 1.63 1.64 1.64 
Allowance for loan and lease losses to nonperforming loans179 212 232 219 208 
Allowance for credit losses to nonperforming loans213 256 283 264 250 
Nonperforming loans at period end$809 $682 $615 $658 $696 
Nonperforming assets at period end818 692 627 668 707 
Nonperforming loans to period-end portfolio loans0.73 %0.62 %0.58 %0.62 %0.65 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
0.74 0.63 0.59 0.63 0.66 
(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)
6/30/20263/31/202612/31/20259/30/20256/30/2025
Commercial and industrial$358 $284 $256 $253 $280 
Real estate — commercial mortgage256 190 157 214 226 
Real estate — construction— — — — — 
Total commercial real estate loans256 190 157 214 226 
Commercial lease financing6 6 7 — — 
Total commercial loans620 480 420 467 506 
Real estate — residential mortgage100 115 104 98 95 
Home equity loans79 76 80 82 84 
Other consumer loans4 4 4 4 4 
Credit cards6 7 7 7 7 
Total consumer loans189 202 195 191 190 
Total nonperforming loans (a)
809 682 615 658 696 
OREO9 10 9 10 11 
Nonperforming loans held for sale— — 3 — — 
Total nonperforming assets$818 $692 $627 $668 $707 
Accruing loans past due 90 days or more$85 $153 $99 $110 $74 
Accruing loans past due 30 through 89 days138 137 220 254 266 
Nonperforming assets from discontinued operations — education lending business 1 2 2 2 2 
Nonperforming loans to period-end portfolio loans0.73 %0.62 %0.58 %0.62 %0.65 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
0.74 0.63 0.59 0.63 0.66 

Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
2Q261Q264Q253Q252Q25
Balance at beginning of period$682 $615 $658 $696 $686 
Loans placed on nonaccrual status365 253 248 210 233 
Charge-offs(131)(117)(124)(140)(127)
Loans sold(33)(2)(7)(13)— 
Payments(38)(37)(124)(68)(74)
Transfers to OREO(1)(1)(1)(1)(1)
Loans returned to accrual status(35)(29)(35)(26)(21)
Balance at end of period$809 $682 $615 $658 $696 


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 24
Line of Business Results
(Dollars in millions)
Change 2Q26 vs.
2Q261Q264Q253Q252Q251Q262Q25
Consumer Bank
Summary of operations
Total revenue (TE)$1,010 $977 $998 $992 $966 3.4 %4.6 %
Provision for credit losses26 40 32 40 55 (35.0)(52.7)
Noninterest expense716 708 734 693 693 1.1 3.3 
Net income (loss) attributable to Key203 174 176 196 165 16.7 23.0 
Average loans and leases33,263 33,997 34,683 35,363 36,138 (2.2)(8.0)
Average deposits87,399 87,796 87,738 87,692 88,002 (0.5)(0.7)
Net loan charge-offs45 40 49 49 40 12.5 12.5 
Net loan charge-offs to average total loans0.54 %0.48 %0.56 %0.55 %0.44 %12.5 22.7 
Nonperforming assets at period end$253 $270 $262 $266 $269 (6.3)(5.9)
Return on average allocated equity29.52 %24.90 %24.24 %26.03 %21.91 %18.6 34.7 
Commercial Bank
Summary of operations
Total revenue (TE)$1,108 $1,119 $1,194 $1114 $1074 (1.0)%3.2 %
Provision for credit losses67 70 73 68 84 (4.3)(20.2)
Noninterest expense503 474 515 485 451 6.1 11.5 
Net income (loss) attributable to Key423 452 472 440 423 (6.4)— 
Average loans and leases76,238 73,146 71,107 70,328 69,089 4.2 10.3 
Average loans held for sale936 958 1,140 1,224 707 (2.3)32.4 
Average deposits58,895 58,929 60,485 58,523 55,927 (0.1)5.3 
Net loan charge-offs71 64 53 64 62 10.9 14.5 
Net loan charge-offs to average total loans0.37 %0.35 %0.30 %0.36 %0.36 %5.7 2.8 
Nonperforming assets at period end$565 $422 $365 $402 $438 33.9 29.0 
Return on average allocated equity16.40 %18.14 %18.80 %17.87 %17.55 %(9.6)(6.6)
TE = Taxable Equivalent
Selected Items Impact on Earnings
(Dollars in millions, except per share amounts)
Pretax(a)
After-tax at marginal rate(a)
Quarter to date resultsAmountNet Income
EPS(b), (d)
Three months ended June 30, 2026
No items$— $— $— 
Three months ended March 31, 2026
No items— — — 
Three Months Ended December 31, 2025
FDIC special assessment (other expense)(c)
21 16 0.01 
Three months ended September 30, 2025
FDIC special assessment (other expense)(c)
5 4 — 
Three months ended June 30, 2025
No items— — — 
Year to date results
Six months ended June 30, 2026
No items$— $— $— 
Six months ended June 30, 2025
No items— — — 
(a)Favorable (unfavorable) impact.
(b)Impact to EPS reflected on a fully diluted basis.
(c)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. Amounts reflected in this table represent adjustments from initial estimates based on quarterly invoices received from the FDIC.
(d)Earnings per share may not foot due to rounding.

KeyCorp Second Quarter 2026 Earnings Review July 21, 2026 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer

 

2Q26 Results +8% Collective growth of priority fee-based businesses 1H26 vs. 1H25(1) $74Bn Record assets under management(2) +3% Relationship household growth YoY 42 bps NCOs / average loans 9.8% Marked CET1 ratio(3),(4) (1) Priority fee-based businesses include Wealth, Investment Banking, and Commercial Payments; (2) As of 6/30/2026; (3) 6/30/2026 ratio is estimated; (4) Non-GAAP measure: see appendix for reconciliation +3% Period-end C&I loan growth QoQ 1.56% Allowance for credit losses / period-end loans $1.3Bn 2026 planned share repurchases ($341MM repurchased in 2Q26) Client and Prospect Momentum Strong Capital PositionRisk Management Excellence Differentiated Fee Businesses 2

 

Financial Review

 

• EPS of $0.44, up 26% YoY • Revenue(1),(2) up 7% YoY ◦ Net interest income(1),(2) up 9% YoY and 2% QoQ ◦ NIM(1) of 2.89%, up 2 bps QoQ ◦ Noninterest income up 2% YoY, driven by continued momentum across priority fee-based businesses • Noninterest expenses up 5% YoY • NCOs of 42 bps, up 3 bps YoY and 4 bps QoQ ◦ Loan loss provision of $92MM; reserve release of $23MM • CET1 ratio at 11.2%(3) ◦ Marked CET1 ratio of 9.8%(2),(3), down ~20 bps QoQ • ROTCE(2) of 12.9%, up 180 bps YoY • Tangible book value per common share increased 6% YoY • Repurchased $341MM of common stock ◦ Board of Directors authorized $3Bn of common share repurchases $ in millions, excluding per share metrics From continuing operations, unless otherwise noted Reported QoQ Δ YoY Δ EPS $0.44 — 26 % Net interest income(1),(2) $1,258 2 % 9 % Noninterest income $706 (2) % 2 % Revenue(1),(2) $1,964 1 % 7 % Noninterest expense $1,217 3 % 5 % Provision for credit losses $92 (13) % (33) % CET1(3) 11.2% ~(20) bps ~(50) bps Cash efficiency ratio(2) 61.9% 149 bps (58) bps ROTCE(2) 12.9% (13) bps 180 bps Tangible book value per common share $13.62 — 6 % (1) Taxable equivalent basis; (2) Non-GAAP measure: see appendix for reconciliation; (3) 6/30/2026 ratio is estimated 2Q26 Highlights 4

 

• Average loans up $2.3Bn (+2.2%), driven by: ◦ Higher average commercial loans (+3.7%), driven by an increase in C&I(1) loans (+5.0%) ◦ Partially offset by a decline in total consumer loans (-1.9%), reflective of the intentional run-off of low-yielding loans Sequential Change in Ending Balances by Type • ~70% variable rate, or 33% after adjusting for loans swapped to a fixed rate; loan yields would have been 5.45% excluding the impact from hedges(5) • ~91% of commercial loans are made to clients who do additional business with Key(6) • ~57% of the C&I portfolio is investment grade; Consumer book has a 766 weighted average FICO at origination • C&I line utilization: 31.1% (down ~50 bps from 1Q26, due to higher commitments) $109.2 $2.1 $(0.1) $(0.2) $(0.3) $(0.2) $110.4 3/31/26 C&I CRE Comm'l lease Residential mortgage Other consumer 6/30/26 Note: Graphs may not foot due to rounding (1) Commercial and industrial average balances include $209 million of assets from commercial credit cards; (2) Loan balances include $208 million of commercial credit card balances at 6/30/2026; (3) CRE includes real estate – commercial mortgage and real estate – construction; (4) Other Consumer includes home equity loans, credit cards, and other consumer loans; (5) Non-GAAP measure: see appendix for reconciliation; (6) Defined as capital markets, payments or deposits $ in billions $105.7 $106.2 $106.3 $107.7 $110.1 $74.3 $75.4 $76.0 $78.1 $81.0 $31.4 $30.8 $30.3 $29.7 $29.1 5.51% 5.51% 5.41% 5.35% 5.35% Commercial Consumer Loan Yield 2Q25 3Q25 4Q25 1Q26 2Q26 Versus Prior Quarter Portfolio Highlights Loans Average Loans (4) (3)(2) 5

 

• Average deposits up $278MM (+0.2%), driven by: ◦ Higher average noninterest-bearing deposits (+2.3%) ◦ Partially offset by a decline in demand deposits (-0.8%) • Total deposit costs declined by 2 bps, with total interest-bearing deposit costs stable at 2.01% ◦ Cumulative down interest-bearing deposit beta: ~56%(3) Treasury / other • Client deposits up 1.4% year-over-year • Noninterest-bearing deposits were 19% of total deposits, or 24% including hybrids • Commercial deposit balances driven by relationship clients ◦ 82% of balances within an operating account ◦ 96% from clients with an operating account • Loan-to-deposit ratio: 73%(4) 2Q26 Interest-Bearing Mix 38% 17%7% 30% 8% 1% 41% 29% 19% 8% 3% Time deposits Savings Noninterest- bearing IB demand Consumer ex term products MMDA Managed commercial Indexed commercial Wealth Consumer term products(2) 24% including hybrid accounts $147.4 $150.4 $150.7 $147.3 $147.6 $88.0 $87.7 $87.7 $87.8 $87.4 $55.9 $58.5 $60.5 $58.9 $58.9 1.99% 1.97% 1.81% 1.65% 1.63% Consumer Commercial Other Total Deposit Cost 2Q25 3Q25 4Q25 1Q26 2Q26 2Q26 Product Mix 6Deposits Note: Graphs may not foot due to rounding (1) Other includes treasury brokered deposits and other deposits; (2) Includes MMDA promos and retail CDs; (3) Cumulative beta indexed to 3Q24; (4) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits Average Deposits $ in billions (1) Versus Prior Quarter Deposit Franchise Highlights 6

 

$1,150 $1,193 $1,223 $1,230 $1,258 2.66% 2.75% 2.82% 2.87% 2.89% Net interest income Net interest margin 2Q25 3Q25 4Q25 1Q26 2Q26 $1,230 $13 $11 $8 $(3) $1,258 Loan growth & balance sheet mix Securities & swaps Day count Rate impacts & beta management 2.87% 3 bps (1) bp 0 bps 2.89% Securities & swaps Rate impacts & beta management Loan growth & balance sheet mix 1Q26 2Q26 1Q26 2Q26 (1))(1) Net Interest Income / Net Interest Margin +9% NIM Walk(1) NII Walk(1) +2% Note: NII and NIM walks may not foot due to rounding (1) Net interest income and net interest margin on a taxable equivalent basis, and non-GAAP measure: see appendix for reconciliation $ in millions 7

 

$690 $702 $782 $723 $706 2Q25 3Q25 4Q25 1Q26 2Q26 2Q26 QoQ Δ YoY Δ Trust and investment services $159 1 % 9 % Investment banking and debt placement $169 (14) % (5) % Cards and payments $94 9 % 11 % Service charges on deposits $77 — 5 % Corporate services $80 13 % 5 % Commercial mortgage servicing $49 (21) % (30) % Other(1) $78 7 % 26 % Total noninterest income $706 (2) % 2 % (1) Other includes Corporate-owned life insurance income, Consumer mortgage income, Operating lease income and other leasing gains, Net securities gains (losses), and Other income +2% Noninterest Income • Noninterest income down $17MM (-2%) vs prior quarter driven by: ◦ Lower investment banking and debt placement fees, and a decrease in commercial mortgage servicing fees • Noninterest income up $16MM (+2%) vs prior year driven by: ◦ Higher trust and investment services, reflecting higher market levels ◦ Continued momentum in commercial payments Highlights Noninterest Income Trend $ in millions 8

 

$1,154 $1,177 $1,241 $1,181 $1,217 $705 $742 $790 $743 $786 $449 $440 $472 $438 $431 Personnel Non-personnel Selected Items 2Q25 3Q25 4Q25 1Q26 2Q26 Noninterest Expense (2) (1) See slide 18 for breakout of "Selected Items Impact on Earnings" $(21)(1) 1Q26 Notable Expenses ▪ Pull forward of $25MM charitable contribution originally planned in back half of the year 1Q26 Notable Expenses: $25MM charitable contribution pulled forward, originally planned in back half of the year 2Q26 QoQ Δ YoY Δ Personnel expense $786 6 % 11 % Net occupancy $68 — (1) % Computer processing $108 (3) % 1 % Business services and professional fees $46 28 % (4) % Equipment $22 16 % 5 % Operating lease expense $7 — (30) % Marketing $22 22 % (8) % Other expense $158 (12) % (7) % Total noninterest expense $1,217 3 % 5 % $(5)(1) • Noninterest expense up $36MM (+3%) vs prior quarter driven by: ◦ Higher personnel expense due to incentive compensation, as well as higher professional and marketing expenses and an additional day in the quarter • Noninterest expense up $63MM (+5%) vs prior year driven by: ◦ Higher personnel expense related to investments in front-line bankers and incentive compensation Highlights Noninterest Expense Trend $ in millions 9

 

0.25% 0.24% 0.21% 0.13% 0.12% 0.07% 0.10% 0.09% 0.14% 0.08% 30-89 days delinquent 90+ days delinquent 2Q25 3Q25 4Q25 1Q26 2Q26 $6,062 $5,871 $5,373 $5,370 $5,398 5.7% 5.5% 5.0% 4.9% 4.9% Criticized assets Criticized assets ratio 2Q25 3Q25 4Q25 1Q26 2Q26 $707 $668 $627 $692 $818 0.66% 0.63% 0.59% 0.63% 0.74% NPAs NPA ratio 2Q25 3Q25 4Q25 1Q26 2Q26 (1) Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets; (2) Criticized loan and lease outstandings to period-end total loans $102 $114 $104 $101 $115$138 $107 $108 $106 $92 0.39% 0.42% 0.39% 0.38% 0.42% NCOs Provision for credit losses NCOs to average loans 2Q25 3Q25 4Q25 1Q26 2Q26 (1) Net Charge-Offs (NCOs) & Provision for Credit Losses $ in millions Nonperforming Assets (NPAs) Ratio(1) $ in millions Delinquencies to Period-End Total Loans From continuing operations Criticized Assets Ratio(2) $ in millions; from continuing operations Credit Quality (2) 10

 

• Repurchased $341MM of common shares at an average price of $21.95 per share in the second quarter • Expect to repurchase at least $1.3Bn in 2026 7.8% 8.1% 8.4% 8.0% 7.7% 2Q25 3Q25 4Q25 1Q26 2Q26 Common Equity Tier 1 Ratio Tangible Common Equity Ratio(2) Capital (1) 6/30/2026 ratio is estimated; (2) Non-GAAP measure: see appendix for reconciliation 11.7% 11.8% 11.8% 11.4% 11.2%10.0% 10.3% 10.4% 10.0% 9.8% Common Equity Tier 1 Ratio Marked Common Equity Tier 1 Ratio 2Q25 3Q25 4Q25 1Q26 2Q26 (1) (1),(2) 11.4% 31 bps (22) bps (20) bps (15) bps 2 bps 11.2% 1Q26 Net income available to common RWA Share repurchases Dividends Other 2Q261 6 2 6 Common Equity Tier 1 Walk(1) Share Repurchase Activity 11

 

$ in millions, unless otherwise stated FY2026 (vs. FY2025) On an operating basis Revenue(1),(2) (FY25 baseline: $7,513) up 7 – 8% (previously ~7%) Net interest income(1),(2) (FY25 baseline: $4,671) up 9 – 11% (previously up 9 – 10%) Net interest margin(2) 4Q exit rate: 3.00 – 3.05% (previously ~3.05%) Average earning assets growing $1Bn – $2Bn from 2Q26 Noninterest income (FY25 baseline: $2,842) up 3 – 4% Noninterest income on an adjusted basis(1) (FY25 baseline: $2,495)(3) up 5 – 6%(3) Adjusted noninterest expense(1) (FY25 baseline: $4,729)(4) up 3 – 4% Average loans (FY25 baseline: $105.7Bn) up 4 – 5% (previously up 2 – 4%) Average commercial loans (FY25 baseline: $74.5Bn) up 8 – 10% (previously up 6 – 8%) NCOs to average loans 40 – 45 bps Tax rate GAAP tax rate: ~22% Tax-equivalent effective rate(5): ~23% 16 – 19% ROTCE 9.5 – 10% Marked CET1 3.25%+ / 15%+ NIM and ROTCE (1) Represents a forward-looking non-GAAP measure: refer to slide 19, "Forward-Looking Statements and Additional Information", for more information; (2) Taxable equivalent basis; (3) Excluding Commercial mortgage servicing fees, Operating lease income, Other leasing gains, Other income and net securities gains (losses); (4) Non-GAAP measure: adjusted noninterest expense for 2025 excludes a $26MM benefit from the FDIC special assessment. See slide 18 for breakout of "Selected Items Impact on Earnings"; (5) Reflects the estimated full year taxable-equivalent adjustment 2026 Outlook Long-Term Targets(1) 4Q27 Targets(1) 12

 

Appendix

 

Loan Composition(2) $47.8 $47.5 $47.8 $48.2 $47.9 $7.0 $7.2 $8.1 $8.8 $9.4 $40.7 $40.3 $39.8 $39.4 $38.5 3.71% 3.75% 3.69% 3.64% 3.67% Average HTM securities Average AFS securities Average yield 2Q25 3Q25 4Q25 1Q26 2Q26 $ in billions 3Q26 4Q26 2H26 1Q27 2Q27 3Q27 4Q27 2027 Projected receive-fixed swaps maturities $2.2 $1.9 $4.1 $2.0 $2.7 $2.6 $3.4 $10.7 Weighted-average rate received (%) 2.82% 2.73% 2.78% 2.89% 2.62% 2.63% 3.67% 3.01% Projected fixed-rate loans cash flows / maturities $1.7 $1.6 $3.2 $1.5 $1.6 $1.7 $1.7 $6.5 Weighted-average rate received (%) 4.28% 4.46% 4.36% 4.68% 4.76% 4.89% 5.00% 4.84% Memo: Projected residential mortgages $0.4 $0.4 $0.8 $0.3 $0.4 $0.4 $0.4 $1.5 Memo: Weighted-average rate received (%) 3.46% 3.49% 3.48% 3.51% 3.54% 3.57% 3.61% 3.56% Projected fixed-rate investment securities cash flows / maturities $2.2 $2.0 $4.3 $2.1 $2.2 $2.3 $1.9 $8.6 Weighted-average rate received (%) 4.14% 4.18% 4.16% 3.92% 4.04% 4.03% 4.20% 4.04% Memo: Projected fixed-rate MBS cash flows / maturities $1.5 $1.3 $2.8 $1.4 $1.5 $1.6 $1.2 $5.6 Memo: Weighted-average rate received (%) 3.87% 3.99% 3.92% 3.91% 3.91% 3.90% 4.00% 3.88% 27% 23% 12% 7% 30% 1% (1) Fixed-Rate Asset Repricing Tailwinds – 3Q26 to 2027 Average Total Investment Securities $ in billions Balance Sheet Management Detail Fixed Prime O/N SOFR 1M SOFR 3M SOFR Other (1) Yield is calculated on an amortized cost basis; (2) Based on 6/30/2026 period-end balances; chart may not foot due to rounding 14

 

• Executed $3.0Bn of spot-starting receive-fixed swaps and $3.3Bn of forward-starting receive-fixed swaps in 2Q26 with W.A. receive-fixed rates of 3.8% and 4.0%, respectively • Forward starting cash flow hedges of $3.3Bn - W.A. receive-fixed rate: 4.0% ◦ $2.5Bn starting in 3Q27 (4.0% W.A. receive- fixed rate) ◦ $0.8Bn starting in 4Q27 (3.9% W.A. receive- fixed rate)3.4% 3.5% 3.5% 3.5% 3.5% 3.6% 3.7% 3.7% 3.7% 3Q26 4Q26 YE26 1Q27 2Q27 3Q27 4Q27 YE27 $2.2 $1.9 $4.1 $2.0 $2.7 $2.6 $3.4 $10.7 2.8% 2.7% 2.8% 2.9% 2.6% 2.6% 3.7% 3.0% W.A. receive- fixed rate Maturing swaps W.A. receive-fixed rate (1) Portfolio as of 6/30/2026; (2) AFS securities swapped to floating rate Other Hedge Positions 6/30/2026 Debt hedges $8.9 Securities hedges(2) $10.3 Hedging Strategy Opportunity 2Q26 ALM Hedge ActionsReceive-fixed asset swaps(1) $ in billions, ending balances $43.5 $41.4 $39.5 $39.5 $37.5 $34.8 $32.2 $28.8 $28.8 2Q26 3Q26 4Q26 YE26 1Q27 2Q27 3Q27 4Q27 YE27 Forward-Starting Swaps as of 06/30 15

 

Allowance to Non-Performing Loans (NPLs)(2) 225% 109% —% 67% 61% —% —% C&I CRE Comm'l lease Resi mtg Home equity Credit cards Other consumer $1,743 $1,736 $1,740 $1,745 $1,722 1.64% 1.64% 1.63% 1.60% 1.56% ACL ACL to period-end loans 2Q25 3Q25 4Q25 1Q26 2Q26 5.71% 9.05% 3.28% 0.62% 1.52% 1.71% 0.30% C&I CRE Comm'l lease Resi mtg Home equity Credit cards Other consumer 0.48% 0.46% 0.05% — 3.98% 1.02% (0.01)% C&I CRE Comm'l lease Resi mtg Home equity Credit cards Other consumer (3) (5) N/M = Not Meaningful Note: All metrics are as of 6/30/2026 unless otherwise noted; (1) Net loan charge-off amounts are annualized in calculation; (2) Ratios calculated using unrounded figures and therefore may not foot to calculation using rounded figures presented in chart; (3) Commercial and industrial average balances include $209 million of assets from commercial credit cards; (4) Criticized loan and lease outstandings to period-end total loans; (5) Loan balances include $208 million of commercial credit card balances at 6/30/2026 N/M N/MN/M N/M NCOs to Average Loans(1),(2) Criticized Asset Ratio(2),(4) Allowance for Credit Losses (ACL) $ in millions Credit Quality by Portfolio 16

 

$ in millions 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Net interest income (GAAP) $ 1,250 $ 1,222 $ 1,215 $ 1,184 $ 1,141 Add: Taxable-equivalent adjustment 8 8 8 9 9 Net interest income TE (non-GAAP) (A) $ 1,258 $ 1,230 $ 1,223 $ 1,193 $ 1,150 Net income (loss) attributable to Key common shareholders (GAAP) (B) $ 473 $ 486 $ 475 $ 453 $ 389 Average Key shareholders' equity (GAAP) $ 19,947 $ 20,392 $ 20,388 $ 19,664 $ 19,268 Less: Average intangible assets 2,756 2,758 2,762 2,767 2,772 Average preferred stock 2,500 2,500 2,500 2,500 2,500 Average tangible common equity (non-GAAP) (C) $ 14,691 $ 15,134 $ 15,126 $ 14,397 $ 13,996 Key shareholders' equity (GAAP) $ 19,798 $ 19,987 $ 20,381 $ 20,102 $ 19,484 Less: Intangible assets 2,755 2,757 2,760 2,765 2,770 Preferred stock (1) 2,446 2,446 2,446 2,446 2,446 Tangible common equity (non-GAAP) (D) $ 14,597 $ 14,784 $ 15,175 $ 14,891 $ 14,268 Total assets (GAAP) $ 191,317 $ 188,663 $ 184,381 $ 187,409 $ 185,499 Less: Intangible assets 2,755 2,757 2,760 2,765 2,770 Tangible assets (non-GAAP) (E) $ 188,562 $ 185,906 $ 181,621 $ 184,644 $ 182,729 Tangible common equity to tangible assets ratio (non-GAAP) (D/E) 7.74 % 7.95 % 8.36 % 8.06 % 7.81 % Return on average tangible common equity consolidated (non-GAAP) (B/C) 12.91 % 13.02 % 12.46 % 12.48 % 11.15 % Common equity tier 1 (F) $ 17,016 $ 17,038 $ 17,195 $ 17,050 $ 16,775 Add: AFS and Pension AOCI (loss) (2,154) (2,152) (2,028) (2,176) (2,476) Marked common equity tier 1 (non-GAAP) (G) (2) $ 14,862 $ 14,886 $ 15,167 $ 14,875 $ 14,299 Risk-weighted assets (H) (3) $152,317 $149,338 $145,933 $144,428 $143,427 Common equity tier 1 ratio (F/H) (3) 11.2 % 11.4 % 11.8 % 11.8 % 11.7 % Marked CET1 ratio (non-GAAP) (G/H) (2),(3) 9.8 % 10.0 % 10.4 % 10.3 % 10.0 % Income (loss) from continuing operations attributable to Key common shareholders (GAAP) (I) $ 472 $ 486 $ 474 $ 454 $ 387 Plus: Selected items (net of tax)(4) — — (16) (4) — Net income (loss) from continuing operations attributable to Key common shareholders, excluding selected items (non-GAAP) (J) $ 472 $ 486 $ 458 $ 450 $ 387 Return on average tangible common equity from continuing operations (non-GAAP) (I/C) 12.89 % 13.02 % 12.43 % 12.51 % 11.09 % Adjusted return on average tangible common equity from continuing operations excluding selected items (non-GAAP) (J/C) 12.89 % 13.02 % 12.01 % 12.40 % 11.09 % Noninterest income (GAAP) (K) $ 706 $ 723 $ 782 $ 702 $ 690 Plus: Selected items(4) — — — — — Adjusted noninterest income (non-GAAP) (L) $ 706 $ 723 $ 782 $ 702 $ 690 Noninterest expense (GAAP) (M) $ 1,217 $ 1,181 $ 1,241 $ 1,177 $ 1,154 Less: Intangible asset amortization 2 2 5 5 5 Noninterest expense less intangible asset amortization (non-GAAP) (N) $ 1,215 $ 1,179 $ 1,236 $ 1,172 $ 1,149 Plus: Selected items(4) (O) — — 21 5 — Adjusted noninterest expense less intangible asset amortization (non-GAAP) (P) $ 1,215 $ 1,179 $ 1,257 $ 1,177 $ 1,149 Adjusted noninterest expense (non-GAAP) (M+O) $ 1,217 $ 1,181 $ 1,262 $ 1,182 $ 1,154 Total taxable-equivalent revenue (non-GAAP) (A+K) = (Q) $ 1,964 $ 1,953 $ 2,005 $ 1,895 $ 1,840 Total adjusted taxable-equivalent revenue (non-GAAP) (A+L) 1,964 1,953 2,005 1,895 1,840 Cash efficiency ratio (non-GAAP) (N/Q) 61.86 % 60.37 % 61.65 % 61.85 % 62.45 % Adjusted cash efficiency ratio (non-GAAP) (P/Q) 61.86 % 60.37 % 62.69 % 62.11 % 62.45 % Pre-provision net revenue from continuing operations (non-GAAP) (A+K-M) $ 747 $ 772 $ 764 $ 718 $ 686 Plus: Selected items(4) — — (21) (5) — Adjusted pre-provison net revenue from continuing operations (non-GAAP) $ 747 $ 772 $ 743 $ 713 $ 686 Diluted EPS from continuing operations attributable to Key common shareholders (GAAP) $0.44 $0.44 $0.43 $0.41 $0.35 Plus: EPS impact of selected items (4) — — (0.01) — — Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP) (5) $ 0.44 $ 0.44 $ 0.41 $ 0.41 $ 0.35 Adjusted operating leverage and fee based adjusted operating leverage Adjusted noninterest income YoY Growth (R) 2.32 % 8.23 % 8.31 % 8.17 % 10.05 % Adjusted taxable-equivalent revenue YoY Growth (S) 6.74 % 10.15 % 12.45 % 17.48 % 20.58 % Adjusted noninterest expense YoY Growth (T) 5.46 % 4.42 % 3.27 % 8.74 % 44.79 % Adjusted operating leverage (S - T) 1.28 % 5.73 % 9.18 % 8.74 % (24.22) % Adjusted fee-based operating leverage (R - T) (3.14) % 3.81 % 5.04 % (0.57) % (34.75) % Loan yields excluding impact from hedges(5) Loan yield 5.35 % 5.35 % 5.41 % 5.51 % 5.51 % Less: Loan yield impact of realized hedge gains/(losses) (0.10) % (0.15) % (0.28) % (0.36) % (0.34) % Loan yield excluding impact from hedges 5.45 % 5.50 % 5.69 % 5.87 % 5.85 % (1) Net of capital surplus; (2) Under the current applicable regulatory capital rules, Key has made the AOCI opt out election, which enables us to exclude components of AOCI from regulatory capital, notably the AOCI relative to securities and pension. Marked CET1 ratio is a non-GAAP measure and is calculated based on Common Equity Tier 1 capital, inclusive of the AOCI impact from securities and pension, divided by risk weighted assets; (3) Amounts and ratios as of June 30, 2026 are estimated; (4) See slide 20 for breakout of "Selected Items Impact on Earnings"; (5) Earnings per share may not foot due to rounding; (5) Loan Yields Excluding Impact from Hedges is a non-GAAP metric and is calculated by excluding losses realized on derivatives which hedge the interest rate risk of our loans. We believe this metric is meaningful as it provides information on loan yields excluding the impacts of hedge-related interest rate risk management programs GAAP to Non-GAAP Reconciliation 17

 

(1) Favorable (unfavorable) impact; (2) Impact to EPS reflected on a fully diluted basis; (3) 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. Amounts reflected in this table represent adjustments from initial estimates based on quarterly invoices received from the FDIC; (4) Earnings per share may not foot due to rounding Selected Items Impact on Earnings $ in millions, except per share amounts After-tax at marginal rate(1) Quarter to date results Pretax(1) Amount Net Income EPS(2)(4) Three months ended June 30, 2026 No items $ — $ — $ — Three months ended March 31, 2026 No items — — — Three months ended December 31, 2025 FDIC special assessment (other expense)(3) 21 16 0.01 Three months ended September 30, 2025 FDIC special assessment (other expense)(3) 5 4 — Three months ended June 30, 2025 No items — — — Year to date results Six months ended June 30, 2026 No items $ — $ — $ — Six months ended June 30, 2025 No items — — — Selected Items Impact on Earnings 18

 

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “seek,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible,” “potential,” “strategy,” “opportunities,” or “trends,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp’s control). Actual results may differ materially from current projections. Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward-looking Statements” and “Risk Factors” in KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent filings of KeyCorp with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir. Non-GAAP Measures. This presentation 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 the appendix to this presentation, the financial supplement, or the press release related to this presentation, all of which can be found on Key’s website (www.key.com/ir). Forward-Looking Non-GAAP Measures. From time to time we may discuss forward-looking non-GAAP financial measures. We are unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because we are 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. 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 municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of 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. GAAP: Generally Accepted Accounting Principles Forward-looking Statements and Additional Information 19

 

Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
6/30/20263/31/20266/30/2025
Assets
Loans$110,430 $109,190 $106,389 
Loans held for sale 1,198 876 530 
Securities available for sale38,459 38,918 40,669 
Held-to-maturity securities9,515 9,116 6,914 
Trading account assets936 783 1,374 
Short-term investments12,416 11,782 11,564 
Other investments1,230 1,204 1,058 
Total earning assets174,184 171,869 168,498 
Allowance for loan and lease losses(1,445)(1,449)(1,446)
Cash and due from banks1,711 1,130 1,766 
Premises and equipment620 618 599 
Goodwill2,752 2,752 2,752 
Other intangible assets3 5 18 
Corporate-owned life insurance4,456 4,439 4,423 
Accrued income and other assets8,848 9,100 8,654 
Discontinued assets188 199 235 
Total assets$191,317 $188,663 $185,499 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits122,196 120,220 119,230 
Noninterest-bearing deposits30,893 27,595 27,675 
Total deposits153,089 147,815 146,905 
Federal funds purchased and securities sold under repurchase agreements 5 34 20 
Bank notes and other short-term borrowings3,680 6,149 2,754 
Accrued expense and other liabilities3,778 3,801 4,273 
Long-term debt10,967 10,877 12,063 
Total liabilities171,519 168,676 166,015 
Equity
Preferred stock2,500 2,500 2,500 
Common shares1,257 1,257 1,257 
Capital surplus6,014 5,981 5,971 
Retained earnings15,873 15,622 14,886 
Treasury stock, at cost(3,492)(3,152)(2,629)
Accumulated other comprehensive income (loss)(2,354)(2,221)(2,501)
Total equity19,798 19,987 19,484 
Total liabilities and equity$191,317 $188,663 $185,499 
Common shares outstanding (000)1,072,035 1,087,293 1,112,453 



Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months endedSix months ended
6/30/20263/31/20266/30/20256/30/20266/30/2025
Interest income
Loans$1,463 $1,416 $1,443 $2,879 $2,844 
Loans held for sale15 14 11 29 25 
Securities available for sale367 370 411 737 803 
Held-to-maturity securities95 86 61 181 124 
Trading account assets10 11 16 21 33 
Short-term investments101 103 157 204 331 
Other investments8 5 8 13 17 
Total interest income2,059 2,005 2,107 4,064 4,177 
Interest expense
Deposits600 598 730 1,198 1,483 
Federal funds purchased and securities sold under repurchase agreements19 14 4 33 5 
Bank notes and other short-term borrowings35 20 34 55 61 
Long-term debt155 151 198 306 391 
Total interest expense809 783 966 1,592 1,940 
Net interest income1,250 1,222 1,141 2,472 2,237 
Provision for credit losses92 106 138 198 256 
Net interest income after provision for credit losses1,158 1,116 1,003 2,274 1,981 
Noninterest income
Trust and investment services income159 157 146 316 285 
Investment banking and debt placement fees169 197 178 366 353 
Service charges on deposit accounts77 77 73 154 142 
Operating lease income and other leasing gains10 8 14 18 23 
Corporate services income80 71 76 151 141 
Cards and payments income94 86 85 180 167 
Corporate-owned life insurance income33 34 32 67 65 
Consumer mortgage income17 13 15 30 28 
Commercial mortgage servicing fees49 62 70 111 146 
Other income15 18 1 33 8 
Net securities gains (losses)3 — — 3 — 
Total noninterest income706 723 690 1,429 1,358 
Noninterest expense
Personnel786 743 705 1,529 1,385 
Net occupancy68 68 69 136 136 
Computer processing108 111 107 219 214 
Business services and professional fees46 36 48 82 88 
Equipment22 19 21 41 41 
Operating lease expense7 7 10 14 21 
Marketing22 18 24 40 45 
Other expense158 179 170 337 355 
Total noninterest expense1,217 1,181 1,154 2,398 2,285 
Income (loss) from continuing operations before income taxes647 658 539 1,305 1,054 
Income taxes139 136 116 275 225 
Income (loss) from continuing operations508 522 423 1,030 829 
Income (loss) from discontinued operations, net of taxes1 — 2 1 1 
Net income (loss)509 522 425 1,031 830 
Less: Net income (loss) attributable to noncontrolling interests— — — — — 
Net income (loss) attributable to Key$509 $522 $425 $1,031 $830 
Income (loss) from continuing operations attributable to Key common shareholders$472 $486 $387 $958 $757 
Net income (loss) attributable to Key common shareholders473 486 389 959 758 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.44 $.45 $.35 $.89 $.69 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
.44 .45 .35 .89 .69 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.44 $.44 $.35 $.88 $.69 
Income (loss) from discontinued operations, net of taxes— — — — — 
Net income (loss) attributable to Key common shareholders (a)
.44 .44 $.35 .88 .69 
Cash dividends declared per common share$.205 $.205 $.205 $.41 $.41 
Weighted-average common shares outstanding (000)1,071,229 1,084,277 1,100,033 1,077,977 1,098,453 
Effect of common share options and other stock awards (b)
8,779 10,091 7,177 9,435 8,331 
Weighted-average common shares and potential common shares outstanding (000) (c)
1,080,008 1,094,368 1,107,210 1,087,412 1,106,784 
(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 and/or convertible preferred stock, as applicable.


Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

7 documents

Press Releases

Other Documents