EX-99.1 2 d803929dex991.htm EX-99.1

Exhibit 99.1

|  |  |  | NEWS
|  | FOR IMMEDIATE RELEASE

KEYCORP REPORTS THIRD QUARTER 2014

NET INCOME OF $197 MILLION, OR $.23 PER COMMON SHARE

Average loans up 5% from prior year, driven by an

11% increase in commercial, financial and agricultural loans

Credit quality remains strong, with net loan charge-offs to average loans of .22%

Disciplined capital management with common share repurchases of $119 million

CLEVELAND, October 15, 2014 – KeyCorp (NYSE: KEY) today announced third quarter net income from continuing operations attributable to Key common shareholders of $197 million, or $.23 per common share, compared to $242 million, or $.27 per common share, for the second quarter of 2014, and $229 million, or $.25 per common share, for the third quarter of 2013. During the third quarter of 2014, Key incurred $35 million, or $.03 per common share, of costs related to both its efficiency initiative and a pension settlement charge, compared to $41 million, or $.03 per common share, during the third quarter of 2013.

For the nine months ended September 30, 2014, net income from continuing operations attributable to Key common shareholders was $671 million, or $.76 per common share, compared to $618 million, or $.67 per common share, for the same period one year ago. During the nine months ended September 30, 2014, Key incurred $69 million, or $.05 per common share, of costs related to both its efficiency initiative and a pension settlement charge, compared to $93 million, or $.06 per common share, during the nine months ended September 30, 2013.

“Key’s third quarter reflects solid results in our core businesses as we continue to execute on our relationship strategy, while remaining disciplined in managing risk and our strong capital position,” said Chairman and Chief Executive Officer Beth Mooney. “Compared with the same period last year, average loans increased 5%, driven by growth in commercial, financial and agricultural loans. We saw positive trends in several of our fee-based businesses, while we realized lower gains from principal investing and leveraged lease terminations. In the third quarter, the number of retail clients grew and we improved sales productivity across both the Community Bank and Corporate Bank. We also closed the acquisition of Pacific Crest Securities during the quarter, adding an important new industry vertical and underscoring our commitment to be the leading corporate and investment bank serving middle market clients.”

“Core expenses remained well-controlled and, excluding pension-related charges, were down from both the prior year and last quarter,” added Mooney. “Third quarter expenses also included efficiency-related charges, costs from the Pacific Crest Securities acquisition, and ongoing investments that we are making in our businesses.”

“Our focus on risk management continues to be reflected in our strong credit quality trends, as well as the quality of loans that we are generating,” continued Mooney. “Year-to-date net charge-offs are at historically low levels. Capital also remains a strength of our company. In the third quarter, our Tier 1 common equity ratio remained above 11%, while we continued to execute on our commitment to return capital to our shareholders through dividends and share repurchases. During the third quarter, we repurchased $119 million in common shares.”

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 2

THIRD QUARTER 2014 FINANCIAL RESULTS, from continuing operations

Compared to Third Quarter of 2013

| • |  | Average loans up 4.7%, driven by a 10.9% growth in commercial, financial and agricultural loans

| • |  | Average deposits up 3.6% due to commercial mortgage servicing acquisitions and growth in commercial deposits offsetting declines in certificates of deposit

| • |  | Net interest income (taxable-equivalent) down $3 million, primarily due to lower earning asset yields

| • |  | Noninterest income down $42 million, due to $27 million in lower operating lease income and other leasing gains mostly due to an early termination of a leveraged lease in the prior year, $8 million in lower principal investing gains, and a decline of $6 million in mortgage servicing fees due to lower special servicing fees, slightly offset by increases in noninterest income related to the recently-acquired Pacific Crest Securities

| • |  | Noninterest expense down $12 million, reflecting $6 million in lower efficiency and pension-related charges, and a decrease in the provision for losses on lending-related commitments, slightly offset by expenses related to the recently-acquired Pacific Crest Securities

| • |  | Asset quality improved, with net loan charge-offs to average loans declining from .28% to .22%

| • |  | Disciplined capital management, repurchasing $119 million of common shares during the third quarter of 2014 and maintaining a top tier capital position with Tier 1 common equity of 11.26%

Compared to Second Quarter of 2014

| • |  | Average loans up .3%, primarily driven by increases in real estate commercial mortgage loans

| • |  | Average deposits up 1.9% due to the growth in commercial mortgage servicing and commercial client inflows offsetting declines in certificates of deposit

| • |  | Net interest income (taxable-equivalent) up $2 million due to an increase in earning asset levels, higher loan fees, and more days in the quarter, which offset lower asset yields

| • |  | Noninterest income down $38 million, primarily due to $18 million in lower principal investing gains, a decrease of $18 million in operating lease income and other leasing gains mostly due to the early termination of a leveraged lease in the prior quarter, and an $11 million reduction in investment banking and debt placement fees, slightly offset by increases in noninterest income related to the recently-acquired Pacific Crest Securities

| • |  | Noninterest expense up $15 million, primarily due to $11 million in higher efficiency and pension-related charges, and expenses related to the recently-acquired Pacific Crest Securities

| • |  | Asset quality remains strong, with net loan charge-offs to average loans flat to prior quarter and remaining well below the targeted range

Selected Financial Highlights

dollars in millions, except per share data |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Income (loss) from continuing operations attributable to Key common shareholders |  | $ | 197 |  |  | $ | 242 |  |  | $ | 229 |  |  |  | (18.6 | )% |  |  | (14.0 | )%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution |  |  | .23 |  |  |  | .27 |  |  |  | .25 |  |  |  | (14.8 | ) |  |  | (8.0 | )
Return on average total assets from continuing operations |  |  | .92 | % |  |  | 1.14 | % |  |  | 1.12 | % |  |  | N/A |  |  |  | N/A |
Tier 1 common equity (a) |  |  | 11.26 |  |  |  | 11.25 |  |  |  | 11.17 |  |  |  | N/A |  |  |  | N/A |
Book value at period end |  | $ | 11.77 |  |  | $ | 11.65 |  |  | $ | 11.05 |  |  |  | 1.0 | % |  |  | 6.5 | %
Net interest margin (TE) from continuing operations |  |  | 2.96 | % |  |  | 2.98 | % |  |  | 3.11 | % |  |  | N/A |  |  |  | N/A |

(a) | The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “Tier 1 common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

TE = Taxable Equivalent, N/A = Not Applicable

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 3

INCOME STATEMENT HIGHLIGHTS

Revenue

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Net interest income (TE) |  | $ | 581 |  |  | $ | 579 |  |  | $ | 584 |  |  |  | .3 | % |  |  | (.5 | )%
Noninterest income |  |  | 417 |  |  |  | 455 |  |  |  | 459 |  |  |  | (8.4 | ) |  |  | (9.2 | )
Total revenue |  | $ | 998 |  |  | $ | 1,034 |  |  | $ | 1,043 |  |  |  | (3.5 | )% |  |  | (4.3 | )%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $581 million for the third quarter of 2014, and the net interest margin was 2.96%. These results compare to taxable-equivalent net interest income of $584 million and a net interest margin of 3.11% for the third quarter of 2013. The decreases in net interest income and net interest margin were largely attributable to lower earning asset yields. The net interest margin was additionally impacted by higher levels of excess liquidity driven by commercial deposit growth. The decrease in net interest income was partially offset by higher loan levels, a more favorable mix of lower-cost deposits, and higher loan fees as the prior year had an early termination of a leveraged lease.

Compared to the second quarter of 2014, taxable-equivalent net interest income increased by $2 million, and the net interest margin declined by two basis points. The increase in net interest income was primarily due to higher asset levels and loan fees, a lower cost of funds as higher-rate certificates of deposit matured, and more days in the third quarter. The net interest margin was negatively impacted by higher levels of excess liquidity, and lower earning asset yields.

Noninterest Income

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Trust and investment services income |  | $ | 99 |  |  | $ | 94 |  |  | $ | 100 |  |  |  | 5.3 | % |  |  | (1.0 | )%
Investment banking and debt placement fees |  |  | 88 |  |  |  | 99 |  |  |  | 86 |  |  |  | (11.1 | ) |  |  | 2.3 |
Service charges on deposit accounts |  |  | 68 |  |  |  | 66 |  |  |  | 73 |  |  |  | 3.0 |  |  |  | (6.8 | )
Operating lease income and other leasing gains |  |  | 17 |  |  |  | 35 |  |  |  | 44 |  |  |  | (51.4 | ) |  |  | (61.4 | )
Corporate services income |  |  | 42 |  |  |  | 41 |  |  |  | 44 |  |  |  | 2.4 |  |  |  | (4.5 | )
Cards and payments income |  |  | 42 |  |  |  | 43 |  |  |  | 43 |  |  |  | (2.3 | ) |  |  | (2.3 | )
Corporate-owned life insurance income |  |  | 26 |  |  |  | 28 |  |  |  | 26 |  |  |  | (7.1 | ) |  |  | — |
Consumer mortgage income |  |  | 3 |  |  |  | 2 |  |  |  | 3 |  |  |  | 50.0 |  |  |  | — |
Mortgage servicing fees |  |  | 9 |  |  |  | 11 |  |  |  | 15 |  |  |  | (18.2 | ) |  |  | (40.0 | )
Net gains (losses) from principal investing |  |  | 9 |  |  |  | 27 |  |  |  | 17 |  |  |  | (66.7 | ) |  |  | (47.1 | )
Other income |  |  | 14 |  |  |  | 9 |  |  |  | 8 |  |  |  | 55.6 |  |  |  | 75.0 |
Total noninterest income |  | $ | 417 |  |  | $ | 455 |  |  | $ | 459 |  |  |  | (8.4 | )% |  |  | (9.2 | )%

Key’s noninterest income was $417 million for the third quarter of 2014, compared to $459 million for the year-ago quarter. Operating lease income and other leasing gains decreased $27 million as the prior year included the benefit of an early termination of a leveraged lease. Net gains from principal investing declined $8 million. Mortgage servicing fees decreased $6 million due to lower special servicing fees. These decreases were partially offset by an increase of $6 million in fee income related to the recently-acquired Pacific Crest Securities.

Compared to the second quarter of 2014, noninterest income decreased by $38 million. Operating lease income and other leasing gains declined $18 million, primarily due to a gain from the early termination of a leveraged lease in the second quarter. Net gains from principal investing decreased $18 million. Investment banking and debt placement fees decreased $11 million from the strong performance in the prior quarter. These decreases were partially offset by increases in trust and investment services income and in

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 4

other income of $5 million each. The current period included $6 million in fee income related to the recently-acquired Pacific Crest Securities.

Noninterest Expense

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Personnel expense |  | $ | 405 |  |  | $ | 389 |  |  | $ | 414 |  |  |  | 4.1 | % |  |  | (2.2 | )%
Nonpersonnel expense |  |  | 299 |  |  |  | 300 |  |  |  | 302 |  |  |  | (.3 | ) |  |  | (1.0 | )
Total noninterest expense |  | $ | 704 |  |  | $ | 689 |  |  | $ | 716 |  |  |  | 2.2 | % |  |  | (1.7 | )%

Key’s noninterest expense was $704 million for the third quarter of 2014, compared to $716 million for the same period last year. This decline reflects lower efficiency- and pension-related charges of $6 million. This decrease was slightly offset by $6 million of costs associated with the recently-acquired Pacific Crest Securities.

Compared to the second quarter of 2014, noninterest expense increased by $15 million. The increase in expenses reflected $11 million in higher efficiency- and pension-related charges. Other expense increased $4 million due to expenses related to low-income housing tax credit investments. The third quarter of 2014 included $6 million of expenses related to the recently-acquired Pacific Crest Securities.

BALANCE SHEET HIGHLIGHTS

As of September 30, 2014, Key had total assets of $89.8 billion compared to $91.8 billion at June 30, 2014, and $90.7 billion at September 30, 2013.

Average Loans

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 9-30-14 vs. |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |  |  | 6-30-14 |  |  | 9-30-13 |
Commercial, financial and agricultural (a) |  | $ | 26,456 |  |  | $ | 26,444 |  |  | $ | 23,864 |  |  |  | — |  |  |  | 10.9 | %
Other commercial loans |  |  | 13,317 |  |  |  | 13,186 |  |  |  | 13,281 |  |  |  | 1.0 | % |  |  | .3 |
Total home equity loans |  |  | 10,658 |  |  |  | 10,627 |  |  |  | 10,611 |  |  |  | .3 |  |  |  | .4 |
Other consumer loans |  |  | 5,365 |  |  |  | 5,354 |  |  |  | 5,515 |  |  |  | .2 |  |  |  | (2.7 | )
Total loans |  | $ | 55,796 |  |  | $ | 55,611 |  |  | $ | 53,271 |  |  |  | .3 | % |  |  | 4.7 | %

(a) | Commercial, financial and agricultural average loan balances include $92 million, $95 million, and $96 million of assets from commercial credit cards at September 30, 2014, June 30, 2014, and September 30, 2013, respectively.

Average loans were $55.8 billion for the third quarter of 2014, an increase of $2.5 billion compared to the third quarter of 2013. The loan growth occurred primarily in the commercial, financial and agricultural portfolio, which increased $2.6 billion and was broad-based across Key’s commercial lines of business. Consumer loans remained relatively stable, as modest increases across Key’s core consumer loan portfolio, primarily home equity loans and direct term loans, were more than offset by run-off in Key’s designated consumer exit portfolio.

Compared to the second quarter of 2014, average loans increased by $185 million. Commercial loans increased $143 million with growth in real estate commercial mortgage loans offsetting decreases in commercial lease financing. Commercial, financial and agricultural loans were relatively flat to the linked quarter as most of the balance growth occurred towards the latter part of the third quarter, resulting in a larger increase in period-end loans. Modest consumer loan growth reflects growth in the core consumer loan portfolio during the third quarter, which offset a decrease in Key’s consumer exit portfolio.

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 5

Average Deposits

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 9-30-14 vs. |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |  |  | 6-30-14 |  |  | 9-30-13 |
Non-time deposits (a) |  | $ | 61,699 |  |  | $ | 60,066 |  |  | $ | 58,620 |  |  |  | 2.7 | % |  |  | 5.3 | %
Certificates of deposit ($100,000 or more) |  |  | 2,629 |  |  |  | 2,808 |  |  |  | 2,785 |  |  |  | (6.4 | ) |  |  | (5.6 | )
Other time deposits |  |  | 3,413 |  |  |  | 3,587 |  |  |  | 3,957 |  |  |  | (4.9 | ) |  |  | (13.7 | )
Total deposits |  | $ | 67,741 |  |  | $ | 66,461 |  |  | $ | 65,362 |  |  |  | 1.9 | % |  |  | 3.6 | %
Cost of total deposits (a) |  |  | .16 | % |  |  | .18 | % |  |  | .22 | % |  |  | N/A |  |  |  | N/A |

(a) | Excludes deposits in foreign office.

N/A = Not Applicable

Average deposits, excluding deposits in foreign office, totaled $67.7 billion for the third quarter of 2014, an increase of $2.4 billion compared to the year-ago quarter. Demand deposits increased by $1.9 billion, and NOW and money market deposit accounts increased $1.2 billion, mostly due to growth related to commercial client inflows as well as increases related to the commercial mortgage servicing business. These increases were partially offset by run-off in certificates of deposit.

Compared to the second quarter of 2014, average deposits, excluding deposits in foreign office, increased by $1.3 billion. Demand deposits were up $2.0 billion, driven by increases in escrow deposits in the commercial mortgage servicing business and inflows related to commercial clients. Interest-bearing deposits decreased $732 million from lower NOW and money market deposit accounts as a result of a decline in public deposits, and run-off in certificates of deposit.

ASSET QUALITY

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Net loan charge-offs |  | $ | 31 |  |  | $ | 30 |  |  | $ | 37 |  |  |  | 3.3 | % |  |  | (16.2 | )%
Net loan charge-offs to average total loans |  |  | .22 | % |  |  | .22 | % |  |  | .28 | % |  |  | N/A |  |  |  | N/A |
Nonperforming loans at period end (a) |  | $ | 401 |  |  | $ | 396 |  |  | $ | 541 |  |  |  | 1.3 |  |  |  | (25.9 | )
Nonperforming assets at period end |  |  | 418 |  |  |  | 410 |  |  |  | 579 |  |  |  | 2.0 |  |  |  | (27.8 | )
Allowance for loan and lease losses |  |  | 804 |  |  |  | 814 |  |  |  | 868 |  |  |  | (1.2 | ) |  |  | (7.4 | )
Allowance for loan and lease losses to nonperforming loans |  |  | 200.5 | % |  |  | 205.6 | % |  |  | 160.4 | % |  |  | N/A |  |  |  | N/A |
Provision (credit) for loan and lease losses |  | $ | 21 |  |  | $ | 10 |  |  | $ | 28 |  |  |  | 110.0 | % |  |  | (25.0 | )%

(a) | Loan balances exclude $14 million, $15 million, and $18 million of purchased credit impaired loans at September 30, 2014, June 30, 2014, and September 30, 2013, respectively.

N/A = Not Applicable

Key’s provision for loan and lease losses was $21 million for the third quarter of 2014, compared to $10 million for the second quarter of 2014 and $28 million for the year-ago quarter. Key’s allowance for loan and lease losses was $804 million, or 1.43%, of total period-end loans at September 30, 2014, compared to 1.46% at June 30, 2014, and 1.62% at September 30, 2013.

Net loan charge-offs for the third quarter of 2014 totaled $31 million, or .22%, of average total loans. These results compare to $30 million, or .22%, for the second quarter of 2014, and $37 million, or .28%, for the same period last year.

At September 30, 2014, Key’s nonperforming loans totaled $401 million and represented .71% of period-end portfolio loans, compared to .71% at June 30, 2014, and 1.01% at September 30, 2013. Nonperforming assets at September 30, 2014, totaled $418 million and represented .74% of period-end portfolio loans and OREO and other nonperforming assets, compared to .74% at June 30, 2014, and 1.08% at September 30, 2013.

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 6

CAPITAL

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2014.

Capital Ratios

|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |
Tier 1 common equity (a), (b) |  |  | 11.26 | % |  |  | 11.25 | % |  |  | 11.17 | %
Tier 1 risk-based capital (a) |  |  | 12.00 |  |  |  | 11.99 |  |  |  | 11.92 |
Total risk based capital (a) |  |  | 14.09 |  |  |  | 14.14 |  |  |  | 14.37 |
Tangible common equity to tangible assets (b) |  |  | 10.29 |  |  |  | 10.15 |  |  |  | 9.93 |
Leverage (a) |  |  | 11.18 |  |  |  | 11.24 |  |  |  | 11.33 |

(a) | 9-30-14 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” and “Tier 1 common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

As shown in the preceding table, at September 30, 2014, Key’s estimated Tier 1 common equity and Tier 1 risk-based capital ratios stood at 11.26% and 12.00%, respectively. In addition, the tangible common equity ratio was 10.29% at September 30, 2014.

In October 2013, federal banking regulators published the final Basel III capital framework for U.S. banking organizations (the “Regulatory Capital Rules”). While the Regulatory Capital Rules became effective January 1, 2014, the mandatory compliance date for Key as a “standardized approach” banking organization begins on January 1, 2015, subject to transitional provisions extending to January 1, 2019. Key’s estimated Common Equity Tier 1 as calculated under the Regulatory Capital Rules was 10.71% at September 30, 2014. This estimate exceeds the fully phased-in required minimum Common Equity Tier 1 and Capital Conservation Buffer of 7.00%.

Summary of Changes in Common Shares Outstanding

in thousands |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Shares outstanding at beginning of period |  |  | 876,823 |  |  |  | 884,869 |  |  |  | 912,883 |  |  |  | (.9 | )% |  |  | (4.0 | )%
Common shares repurchased |  |  | (8,830 | ) |  |  | (7,824 | ) |  |  | (16,364 | ) |  |  | 12.9 |  |  |  | (46.0 | )
Shares reissued (returned) under employee benefit plans |  |  | 484 |  |  |  | (222 | ) |  |  | 1,302 |  |  |  | N/M |  |  |  | (62.8 | )
Shares outstanding at end of period |  |  | 868,477 |  |  |  | 876,823 |  |  |  | 897,821 |  |  |  | (1.0 | )% |  |  | (3.3 | )%

As previously reported, Key’s 2014 CCAR capital plan includes common share repurchases of up to $542 million, which are expected to be executed through the first quarter of 2015. During the third quarter of 2014, Key completed $119 million of common share repurchases.

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 7

LINE OF BUSINESS RESULTS

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

Major Business Segments

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Revenue from continuing operations (TE) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Community Bank |  | $ | 559 |  |  | $ | 554 |  |  | $ | 584 |  |  |  | .9 | % |  |  | (4.3 | )%
Key Corporate Bank |  |  | 395 |  |  |  | 390 |  |  |  | 379 |  |  |  | 1.3 |  |  |  | 4.2 |
Other Segments |  |  | 47 |  |  |  | 91 |  |  |  | 80 |  |  |  | (48.4 | ) |  |  | (41.3 | )
Total segments |  |  | 1,001 |  |  |  | 1,035 |  |  |  | 1,043 |  |  |  | (3.3 | ) |  |  | (4.0 | )
Reconciling Items |  |  | (3 | ) |  |  | (1 | ) |  |  | — |  |  |  | N/M |  |  |  | N/M |
Total |  | $ | 998 |  |  | $ | 1,034 |  |  | $ | 1,043 |  |  |  | (3.5 | )% |  |  | (4.3 | )%
Income (loss) from continuing operations attributable to Key |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Community Bank |  | $ | 57 |  |  | $ | 54 |  |  | $ | 67 |  |  |  | 5.6 | % |  |  | (14.9 | )%
Key Corporate Bank |  |  | 119 |  |  |  | 119 |  |  |  | 106 |  |  |  | — |  |  |  | 12.3 |
Other Segments |  |  | 48 |  |  |  | 72 |  |  |  | 65 |  |  |  | (33.3 | ) |  |  | (26.2 | )
Total segments |  |  | 224 |  |  |  | 245 |  |  |  | 238 |  |  |  | (8.6 | ) |  |  | (5.9 | )
Reconciling Items |  |  | (21 | ) |  |  | 2 |  |  |  | (3 | ) |  |  | N/M |  |  |  | N/M |
Total |  | $ | 203 |  |  | $ | 247 |  |  | $ | 235 |  |  |  | (17.8 | )% |  |  | (13.6 | )%

TE = Taxable equivalent, N/M = Not Meaningful

Key Community Bank

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Summary of operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income (TE) |  | $ | 360 |  |  | $ | 362 |  |  | $ | 385 |  |  |  | (.6 | )% |  |  | (6.5 | )%
Noninterest income |  |  | 199 |  |  |  | 192 |  |  |  | 199 |  |  |  | 3.6 |  |  |  | — |
Total revenue (TE) |  |  | 559 |  |  |  | 554 |  |  |  | 584 |  |  |  | .9 |  |  |  | (4.3 | )
Provision (credit) for loan and lease losses |  |  | 31 |  |  |  | 23 |  |  |  | 24 |  |  |  | 34.8 |  |  |  | 29.2 |
Noninterest expense |  |  | 437 |  |  |  | 445 |  |  |  | 453 |  |  |  | (1.8 | ) |  |  | (3.5 | )
Income (loss) before income taxes (TE) |  |  | 91 |  |  |  | 86 |  |  |  | 107 |  |  |  | 5.8 |  |  |  | (15.0 | )
Allocated income taxes (benefit) and TE adjustments |  |  | 34 |  |  |  | 32 |  |  |  | 40 |  |  |  | 6.3 |  |  |  | (15.0 | )
Net income (loss) attributable to Key |  | $ | 57 |  |  | $ | 54 |  |  | $ | 67 |  |  |  | 5.6 | % |  |  | (14.9 | )%
Average balances |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases |  | $ | 30,103 |  |  | $ | 30,034 |  |  | $ | 29,498 |  |  |  | .2 | % |  |  | 2.1 | %
Total assets |  |  | 32,209 |  |  |  | 32,157 |  |  |  | 31,685 |  |  |  | .2 |  |  |  | 1.7 |
Deposits |  |  | 50,302 |  |  |  | 50,230 |  |  |  | 49,732 |  |  |  | .1 |  |  |  | 1.1 |
Assets under management at period end |  | $ | 39,249 |  |  | $ | 39,632 |  |  | $ | 35,982 |  |  |  | (1.0 | )% |  |  | 9.1 | %

TE = Taxable Equivalent

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 8

Additional Key Community Bank Data

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Noninterest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust and investment services income |  | $ | 74 |  |  | $ | 70 |  |  | $ | 74 |  |  |  | 5.7 | % |  |  | — |
Service charges on deposit accounts |  |  | 57 |  |  |  | 55 |  |  |  | 62 |  |  |  | 3.6 |  |  |  | (8.1 | )%
Cards and payments income |  |  | 38 |  |  |  | 38 |  |  |  | 36 |  |  |  | — |  |  |  | 5.6 |
Other noninterest income |  |  | 30 |  |  |  | 29 |  |  |  | 27 |  |  |  | 3.4 |  |  |  | 11.1 | %
Total noninterest income |  | $ | 199 |  |  | $ | 192 |  |  | $ | 199 |  |  |  | 3.6 | % |  |  | — |
Average deposit balances |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NOW and money market deposit accounts |  | $ | 27,403 |  |  | $ | 27,577 |  |  | $ | 26,568 |  |  |  | (.6 | )% |  |  | 3.1 | %
Savings deposits |  |  | 2,418 |  |  |  | 2,483 |  |  |  | 2,509 |  |  |  | (2.6 | ) |  |  | (3.6 | )
Certificates of deposit ($100,000 or more) |  |  | 2,072 |  |  |  | 2,169 |  |  |  | 2,264 |  |  |  | (4.5 | ) |  |  | (8.5 | )
Other time deposits |  |  | 3,406 |  |  |  | 3,580 |  |  |  | 3,950 |  |  |  | (4.9 | ) |  |  | (13.8 | )
Deposits in foreign office |  |  | 320 |  |  |  | 294 |  |  |  | 278 |  |  |  | 8.8 |  |  |  | 15.1 |
Noninterest-bearing deposits |  |  | 14,683 |  |  |  | 14,127 |  |  |  | 14,163 |  |  |  | 3.9 |  |  |  | 3.7 |
Total deposits |  | $ | 50,302 |  |  | $ | 50,230 |  |  | $ | 49,732 |  |  |  | .1 | % |  |  | 1.1 | %
Home equity loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average balance |  | $ | 10,368 |  |  | $ | 10,321 |  |  | $ | 10,247 |  |  |  |  |  |  |  |  |
Weighted-average loan-to-value ratio (at date of origination) |  |  | 71 | % |  |  | 71 | % |  |  | 71 | % |  |  |  |  |  |  |  |
Percent first lien positions |  |  | 59 |  |  |  | 59 |  |  |  | 58 |  |  |  |  |  |  |  |  |
Other data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Branches |  |  | 997 |  |  |  | 1,009 |  |  |  | 1,044 |  |  |  |  |  |  |  |  |
Automated teller machines |  |  | 1,290 |  |  |  | 1,311 |  |  |  | 1,350 |  |  |  |  |  |  |  |  |

Key Community Bank Summary of Operations

| • |  | Average loan and lease balances up 2.1% from prior year

| • |  | Average core deposits up 1.5% from prior year

| • |  | Net income attributable to Key Community Bank down 14.9% from the prior year

Key Community Bank recorded net income attributable to Key of $57 million for the third quarter of 2014, compared to net income attributable to Key of $67 million for the year-ago quarter.

Taxable-equivalent net interest income decreased by $25 million, or 6.5%, from the third quarter of 2013. Average loans and leases grew 2.1% while average core deposits increased 1.5% from one year ago. However, these volume-related increases were offset by declines in the deposit spread as a result of the continued low-rate environment.

Noninterest income was flat at $199 million from the year-ago quarter. Service charges on deposit accounts declined $5 million due to lower maintenance fees and overdraft charges. This decrease was offset by increases of $2 million in cards and payments income and $3 million in other noninterest income.

The provision for loan and lease losses increased by $7 million, or 29.2%, from the third quarter of 2013. Net loan charge-offs increased $1 million from the same period one year ago.

Noninterest expense declined by $16 million, or 3.5%, from the year-ago quarter as a result of Key’s efficiency initiative. Personnel expense remained flat compared to the third quarter of 2013. Nonpersonnel expense decreased $16 million primarily due to a credit to the provision for unfunded commitments and declines in outside loan servicing and internally-allocated costs.

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 9

Key Corporate Bank

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Summary of operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income (TE) |  | $ | 212 |  |  | $ | 207 |  |  | $ | 196 |  |  |  | 2.4 | % |  |  | 8.2 | %
Noninterest income |  |  | 183 |  |  |  | 183 |  |  |  | 183 |  |  |  | — |  |  |  | — |
Total revenue (TE) |  |  | 395 |  |  |  | 390 |  |  |  | 379 |  |  |  | 1.3 |  |  |  | 4.2 |
Provision (credit) for loan and lease losses |  |  | (5 | ) |  |  | — |  |  |  | 12 |  |  |  | N/M |  |  |  | N/M |
Noninterest expense |  |  | 212 |  |  |  | 203 |  |  |  | 203 |  |  |  | 4.4 |  |  |  | 4.4 |
Income (loss) before income taxes (TE) |  |  | 188 |  |  |  | 187 |  |  |  | 164 |  |  |  | .5 |  |  |  | 14.6 |
Allocated income taxes and TE adjustments |  |  | 69 |  |  |  | 66 |  |  |  | 58 |  |  |  | 4.5 |  |  |  | 19.0 |
Net income (loss) |  |  | 119 |  |  |  | 121 |  |  |  | 106 |  |  |  | (1.7 | )% |  |  | 12.3 |
Less: Net income (loss) attributable to noncontrolling interests |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | N/M |  |  |  | N/M |
Net income (loss) attributable to Key |  | $ | 119 |  |  | $ | 119 |  |  | $ | 106 |  |  |  | — |  |  |  | 12.3 | %
Average balances |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases |  | $ | 22,700 |  |  | $ | 22,353 |  |  | $ | 19,946 |  |  |  | 1.6 | % |  |  | 13.8 | %
Loans held for sale |  |  | 481 |  |  |  | 429 |  |  |  | 422 |  |  |  | 12.1 |  |  |  | 14.0 |
Total assets |  |  | 26,460 |  |  |  | 26,182 |  |  |  | 23,739 |  |  |  | 1.1 |  |  |  | 11.5 |
Deposits |  |  | 17,310 |  |  |  | 16,042 |  |  |  | 16,044 |  |  |  | 7.9 |  |  |  | 7.9 |
Assets under management at period end |  | $ | 34 |  |  | $ | 37 |  |  | $ | 128 |  |  |  | (8.1 | )% |  |  | (73.4 | )%

TE = Taxable Equivalent, N/M = Not Meaningful

Additional Key Corporate Bank Data

dollars in millions |  |  |  |  |  |  |  |  |  |  | Change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Noninterest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust and investment services income |  | $ | 25 |  |  | $ | 24 |  |  | $ | 26 |  |  |  | 4.2 | % |  |  | (3.8 | )%
Investment banking and debt placement fees |  |  | 86 |  |  |  | 97 |  |  |  | 85 |  |  |  | (11.3 | ) |  |  | 1.2 |
Operating lease income and other leasing gains |  |  | 14 |  |  |  | 11 |  |  |  | 13 |  |  |  | 27.3 |  |  |  | 7.7 |
Corporate services income |  |  | 30 |  |  |  | 30 |  |  |  | 32 |  |  |  | — |  |  |  | (6.3 | )
Service charges on deposit accounts |  |  | 11 |  |  |  | 11 |  |  |  | 11 |  |  |  | — |  |  |  | — |
Cards and payments income |  |  | 4 |  |  |  | 5 |  |  |  | 7 |  |  |  | (20.0 | ) |  |  | (42.9 | )
Payments and services income |  |  | 45 |  |  |  | 46 |  |  |  | 50 |  |  |  | (2.2 | ) |  |  | (10.0 | )
Mortgage servicing fees |  |  | 9 |  |  |  | 11 |  |  |  | 15 |  |  |  | (18.2 | )% |  |  | (40.0 | )%
Other noninterest income |  |  | 4 |  |  |  | (6 | ) |  |  | (6 | ) |  |  | N/M |  |  |  | N/M |
Total noninterest income |  | $ | 183 |  |  | $ | 183 |  |  | $ | 183 |  |  |  | — |  |  |  | — |

N/M = Not Meaningful

Key Corporate Bank Summary of Operations

| • |  | Completed the acquisition of Pacific Crest Securities, adding an important new industry vertical

| • |  | Average loan and lease balances up 13.8% from the prior year

| • |  | Average deposits up 7.9% from the prior year

Key Corporate Bank recorded net income attributable to Key of $119 million for the third quarter of 2014, compared to $106 million for the same period one year ago.

Taxable-equivalent net interest income increased by $16 million, or 8.2%, compared to the third quarter of 2013. Average earning assets increased $3.0 billion, or 13.8%, from the year-ago quarter, primarily driven by loan growth in commercial, financial and agricultural and real estate commercial mortgage. This growth in earning assets drove an increase of $9 million in earning asset spread. Average deposit balances increased $1.3 billion, or 7.9%, from the year-ago quarter, driven by commercial mortgage servicing acquisitions and other

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 10

commercial client inflows. This growth in deposit balances drove an increase of $3 million in deposit and borrowing spread.

Noninterest income was flat from the prior year. The recently-acquired Pacific Crest Securities added $6 million. Other noninterest income increased $10 million due to higher trading income and miscellaneous gains on sale. Offsetting these increases were declines in mortgage servicing fees due to lower special servicing fees, and decreases in cards and payments income, corporate services income, and other noninterest income items.

The provision for loan and lease losses decreased $17 million compared to the third quarter of 2013. Net loan recoveries were less than $1 million for the third quarter of 2014 compared to net loan charge-offs of $6 million for the same period one year ago.

Noninterest expense increased by $9 million, or 4.4%, from the third quarter of 2013. There were $6 million in costs related to the recently-acquired Pacific Crest Securities, and higher expenses related to low-income housing tax credit investments.

Other Segments

Other Segments consist of Corporate Treasury, Community Development, Key’s Principal Investing unit, and various exit portfolios. Other Segments generated net income attributable to Key of $48 million for the third quarter of 2014, compared to net income attributable to Key of $65 million for the same period last year. These results were primarily attributable to a decrease of $27 million in operating lease income and other leasing gains due to the early termination of a leveraged lease in the prior year. Net gains (losses) from principal investing also decreased $8 million from the prior year.

Discontinued Operations

Discontinued Operations consists of Education Lending, Victory Capital Management and Victory Capital Advisors, and Austin Capital Management, Ltd. During the third quarter of 2014, Key sold the residual interests in its nine education loan securitization trusts to a third party and retained the servicing for the loans associated with these securitization trusts. For the three months ended September 30, 2014, net income from discontinued operations for Education Lending was $4 million, which included the impact of the sale of the residual interests.

*****

KeyCorp was organized more than 160 years ago and is headquartered in Cleveland, Ohio. One of the nation’s largest bank-based financial services companies, Key had assets of approximately $89.8 billion at September 30, 2014.

Key provides deposit, lending, cash management and investment services to individuals and small and mid-sized businesses in 12 states under the name KeyBank National Association. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 11

CONTACTS: |  |  |  |
ANALYSTS |  |  |  | MEDIA
Vernon L. Patterson |  |  |  | Jack Sparks
216.689.0520 |  |  |  | 720.904.4554
Vernon_Patterson@KeyBank.com |  |  |  | Jack_Sparks@KeyBank.com
|  |  |  | Twitter: @keybank_news
Kelly L. Dillon |  |  |  |
216.689.3133 |  |  |  |
Kelly_L_Dillon@KeyBank.com |  |  |  |
Matt Gardner |  |  |  |
216.689.8334 |  |  |  |
Matt_Gardner@KeyBank.com |  |  |  |
INVESTOR |  |  |  | KEY MEDIA
RELATIONS: www.key.com/ir |  |  |  | NEWSROOM: www.key.com/newsroom

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key’s financial condition, results of operations, and profitability. Forward-looking statements can be identified by words such as “outlook,” “goal,” “objective,” “plan,” “expect,” “anticipate,” “intend,” “project,” “believe,” or “estimate.” Forward-looking statements represent management’s current expectations and forecasts regarding future events. If underlying assumptions prove to be inaccurate or unknown risks or uncertainties arise, actual results could vary materially from these projections or expectations. 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, 2013, which has been filed with the Securities and Exchange Commission and is available on Key’s website (www.key.com/ir) and on the Securities and Exchange Commission’s website (www.sec.gov). These factors may include, among others: deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, changes in local, regional and international business, economic or political conditions, and the extensive and increasing regulation of the U.S. financial services industry. Forward looking statements speak only as of the date they are made and Key does not undertake any obligation to update the forward-looking statements to reflect new information or future events.

Notes to Editors:

A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on Wednesday, October 15, 2014. An audio replay of the call will be available through October 22, 2014.

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 Third Quarter 2014 Profit

October 15, 2014

Page 12

KeyCorp

Third Quarter 2014

Financial Supplement

Page |  |
13 |  | Financial Highlights
15 |  | GAAP to Non-GAAP Reconciliation
18 |  | Consolidated Balance Sheets
19 |  | Consolidated Statements of Income
20 |  | Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
22 |  | Noninterest Expense
22 |  | Personnel Expense
23 |  | Loan Composition
23 |  | Loans Held for Sale Composition
23 |  | Summary of Changes in Loans Held for Sale
24 |  | Exit Loan Portfolio From Continuing Operations
24 |  | Asset Quality Statistics From Continuing Operations
25 |  | Summary of Loan and Lease Loss Experience From Continuing Operations
26 |  | Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
27 |  | Summary of Changes in Nonperforming Loans From Continuing Operations
27 |  | Summary of Changes in Nonperforming Loans Held for Sale From Continuing Operations
27 |  | Summary of Changes in Other Real Estate Owned, Net of Allowance, From Continuing Operations
28 |  | Line of Business Results

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 13

Financial Highlights

(dollars in millions, except per share amounts)

|  | Three months ended |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |
Summary of operations |  |  |  |  |  |  |  |  |  |  |  |
Net interest income (TE) |  | $ | 581 |  |  | $ | 579 |  |  | $ | 584 |
Noninterest income |  |  | 417 |  |  |  | 455 |  |  |  | 459 |
Total revenue (TE) |  |  | 998 |  |  |  | 1,034 |  |  |  | 1,043 |
Provision (credit) for loan and lease losses |  |  | 21 |  |  |  | 10 |  |  |  | 28 |
Noninterest expense |  |  | 704 |  |  |  | 689 |  |  |  | 716 |
Income (loss) from continuing operations attributable to Key |  |  | 203 |  |  |  | 247 |  |  |  | 235 |
Income (loss) from discontinued operations, net of taxes (a) |  |  | 7 |  |  |  | (28 | ) |  |  | 37 |
Net income (loss) attributable to Key |  |  | 210 |  |  |  | 219 |  |  |  | 272 |
Income (loss) from continuing operations attributable to Key common shareholders |  | $ | 197 |  |  | $ | 242 |  |  | $ | 229 |
Income (loss) from discontinued operations, net of taxes (a) |  |  | 7 |  |  |  | (28 | ) |  |  | 37 |
Net income (loss) attributable to Key common shareholders |  |  | 204 |  |  |  | 214 |  |  |  | 266 |
Per common share |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations attributable to Key common shareholders |  | $ | .23 |  |  | $ | .28 |  |  | $ | .25 |
Income (loss) from discontinued operations, net of taxes (a) |  |  | .01 |  |  |  | (.03 | ) |  |  | .04 |
Net income (loss) attributable to Key common shareholders (b) |  |  | .24 |  |  |  | .24 |  |  |  | .29 |
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution |  |  | .23 |  |  |  | .27 |  |  |  | .25 |
Income (loss) from discontinued operations, net of taxes — assuming dilution (a) |  |  | .01 |  |  |  | (.03 | ) |  |  | .04 |
Net income (loss) attributable to Key common shareholders — assuming dilution (b) |  |  | .23 |  |  |  | .24 |  |  |  | .29 |
Cash dividends paid |  |  | .065 |  |  |  | .065 |  |  |  | .055 |
Book value at period end |  |  | 11.77 |  |  |  | 11.65 |  |  |  | 11.05 |
Tangible book value at period end |  |  | 10.49 |  |  |  | 10.50 |  |  |  | 9.92 |
Market price at period end |  |  | 13.33 |  |  |  | 14.33 |  |  |  | 11.40 |
Performance ratios |  |  |  |  |  |  |  |  |  |  |  |
From continuing operations: |  |  |  |  |  |  |  |  |  |  |  |
Return on average total assets |  |  | .92 | % |  |  | 1.14 | % |  |  | 1.12 | %
Return on average common equity |  |  | 7.68 |  |  |  | 9.55 |  |  |  | 9.13 |
Return on average tangible common equity (c) |  |  | 8.55 |  |  |  | 10.60 |  |  |  | 10.18 |
Net interest margin (TE) |  |  | 2.96 |  |  |  | 2.98 |  |  |  | 3.11 |
Cash efficiency ratio (c) |  |  | 69.5 |  |  |  | 65.8 |  |  |  | 67.5 |
From consolidated operations: |  |  |  |  |  |  |  |  |  |  |  |
Return on average total assets |  |  | .91 | % |  |  | .96 | % |  |  | 1.22 | %
Return on average common equity |  |  | 7.95 |  |  |  | 8.44 |  |  |  | 10.61 |
Return on average tangible common equity (c) |  |  | 8.85 |  |  |  | 9.37 |  |  |  | 11.82 |
Net interest margin (TE) |  |  | 2.94 |  |  |  | 2.94 |  |  |  | 3.06 |
Loan to deposit (d) |  |  | 87.4 |  |  |  | 87.1 |  |  |  | 83.8 |
Capital ratios at period end |  |  |  |  |  |  |  |  |  |  |  |
Key shareholders’ equity to assets |  |  | 11.71 | % |  |  | 11.44 | % |  |  | 11.25 | %
Key common shareholders’ equity to assets |  |  | 11.38 |  |  |  | 11.13 |  |  |  | 10.94 |
Tangible common equity to tangible assets (c) |  |  | 10.29 |  |  |  | 10.15 |  |  |  | 9.93 |
Tier 1 common equity (c), (e) |  |  | 11.26 |  |  |  | 11.25 |  |  |  | 11.17 |
Tier 1 risk-based capital (e) |  |  | 12.00 |  |  |  | 11.99 |  |  |  | 11.92 |
Total risk-based capital (e) |  |  | 14.09 |  |  |  | 14.14 |  |  |  | 14.37 |
Leverage (e) |  |  | 11.18 |  |  |  | 11.24 |  |  |  | 11.33 |
Asset quality — from continuing operations |  |  |  |  |  |  |  |  |  |  |  |
Net loan charge-offs |  | $ | 31 |  |  | $ | 30 |  |  | $ | 37 |
Net loan charge-offs to average loans |  |  | .22 | % |  |  | .22 | % |  |  | .28 | %
Allowance for loan and lease losses |  | $ | 804 |  |  | $ | 814 |  |  | $ | 868 |
Allowance for credit losses |  |  | 839 |  |  |  | 851 |  |  |  | 908 |
Allowance for loan and lease losses to period-end loans |  |  | 1.43 | % |  |  | 1.46 | % |  |  | 1.62 | %
Allowance for credit losses to period-end loans |  |  | 1.49 |  |  |  | 1.53 |  |  |  | 1.69 |
Allowance for loan and lease losses to nonperforming loans |  |  | 200.5 |  |  |  | 205.6 |  |  |  | 160.4 |
Allowance for credit losses to nonperforming loans |  |  | 209.2 |  |  |  | 214.9 |  |  |  | 167.8 |
Nonperforming loans at period end (f) |  | $ | 401 |  |  | $ | 396 |  |  | $ | 541 |
Nonperforming assets at period end |  |  | 418 |  |  |  | 410 |  |  |  | 579 |
Nonperforming loans to period-end portfolio loans |  |  | .71 | % |  |  | .71 | % |  |  | 1.01 | %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets |  |  | .74 |  |  |  | .74 |  |  |  | 1.08 |
Trust and brokerage assets |  |  |  |  |  |  |  |  |  |  |  |
Assets under management |  | $ | 39,283 |  |  | $ | 39,669 |  |  | $ | 36,110 |
Nonmanaged and brokerage assets |  |  | 48,273 |  |  |  | 48,728 |  |  |  | 38,525 |
Other data |  |  |  |  |  |  |  |  |  |  |  |
Average full-time equivalent employees |  |  | 13,905 |  |  |  | 13,867 |  |  |  | 14,555 |
Branches |  |  | 997 |  |  |  | 1,009 |  |  |  | 1,044 |
Taxable-equivalent adjustment |  | $ | 6 |  |  | $ | 6 |  |  | $ | 6 |

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 14

Financial Highlights (continued)

(dollars in millions, except per share amounts)

|  | Nine months ended |
|  | 9-30-14 |  |  | 9-30-13 |
Summary of operations |
Net interest income (TE) |  | $ | 1,729 |  |  | $ | 1,759 |
Noninterest income |  |  | 1,307 |  |  |  | 1,313 |
Total revenue (TE) |  |  | 3,036 |  |  |  | 3,072 |
Provision (credit) for loan and lease losses |  |  | 37 |  |  |  | 111 |
Noninterest expense |  |  | 2,055 |  |  |  | 2,108 |
Income (loss) from continuing operations attributable to Key |  |  | 688 |  |  |  | 635 |
Income (loss) from discontinued operations, net of taxes (a) |  |  | (17 | ) |  |  | 45 |
Net income (loss) attributable to Key |  |  | 671 |  |  |  | 680 |
Income (loss) from continuing operations attributable to Key common shareholders |  | $ | 671 |  |  | $ | 618 |
Income (loss) from discontinued operations, net of taxes (a) |  |  | (17 | ) |  |  | 45 |
Net income (loss) attributable to Key common shareholders |  |  | 654 |  |  |  | 663 |
Per common share |  |  |  |  |  |  |  |
Income (loss) from continuing operations attributable to Key common shareholders |  | $ | .77 |  |  | $ | .68 |
Income (loss) from discontinued operations, net of taxes (a) |  |  | (.02 | ) |  |  | .05 |
Net income (loss) attributable to Key common shareholders (b) |  |  | .75 |  |  |  | .73 |
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution |  |  | .76 |  |  |  | .67 |
Income (loss) from discontinued operations, net of taxes — assuming dilution (a) |  |  | (.02 | ) |  |  | .05 |
Net income (loss) attributable to Key common shareholders — assuming dilution (b) |  |  | .74 |  |  |  | .72 |
Cash dividends paid |  |  | .185 |  |  |  | .16 |
Performance ratios |  |  |  |  |  |  |  |
From continuing operations: |  |  |  |  |  |  |  |
Return on average total assets |  |  | 1.06 | % |  |  | 1.02 | %
Return on average common equity |  |  | 8.84 |  |  |  | 8.27 |
Return on average tangible common equity (c) |  |  | 9.83 |  |  |  | 9.22 |
Net interest margin (TE) |  |  | 2.98 |  |  |  | 3.16 |
Cash efficiency ratio (c) |  |  | 66.7 |  |  |  | 67.5 |
From consolidated operations: |  |  |  |  |  |  |  |
Return on average total assets |  |  | .99 | % |  |  | 1.03 | %
Return on average common equity |  |  | 8.62 |  |  |  | 8.88 |
Return on average tangible common equity (c) |  |  | 9.58 |  |  |  | 9.89 |
Net interest margin (TE) |  |  | 2.94 |  |  |  | 3.10 |
Asset quality — from continuing operations |  |  |  |  |  |  |  |
Net loan charge-offs |  | $ | 81 |  |  | $ | 131 |
Net loan charge-offs to average total loans |  |  | .20 | % |  |  | .33 | %
Other data |  |  |  |  |  |  |  |
Average full-time equivalent employees |  |  | 13,942 |  |  |  | 14,980 |
Taxable-equivalent adjustment |  | $ | 18 |  |  | $ | 17 |

(a) | In April 2009, management decided to wind down the operations of Austin Capital Management, Ltd., a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, management decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank National Association. In February 2013, Key decided to sell its investment subsidiary, Victory Capital Management, and its broker-dealer affiliate, Victory Capital Advisors, to a private equity fund. As a result of these decisions, Key has accounted for these businesses as discontinued operations.

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

(c) | The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity,” “Tier 1 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.

(d) | Represents period-end consolidated total loans and loans held for sale (excluding education loans in the securitization trusts for periods prior to September 30, 2014) divided by period-end consolidated total deposits (excluding deposits in foreign office).

(e) | 9-30-14 ratio is estimated.

(f) | Loan balances exclude $14 million, $15 million, and $18 million of purchased credit impaired loans at September 30, 2014, June 30, 2014, and September 30, 2013, respectively.

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

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 15

GAAP to Non-GAAP Reconciliations

(dollars in millions)

The table below presents certain non-GAAP financial measures related to “tangible common equity,” “return on tangible common equity,” “Tier 1 common equity,” “pre-provision net revenue,” and “cash efficiency ratio.”

The tangible common equity ratio and the return on 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. Traditionally, the banking regulators have assessed bank and bank holding company capital adequacy based on both the amount and the composition of capital, the calculation of which is prescribed in federal banking regulations. Since the commencement of the Comprehensive Capital Analysis and Review process in early 2009, the Federal Reserve has focused its assessment of capital adequacy on a component of Tier 1 risk-based capital known as Tier 1 common equity, a non-GAAP financial measure. Because the Federal Reserve has long indicated that voting common shareholders’ equity (essentially Tier 1 risk-based capital less preferred stock, qualifying capital securities, and noncontrolling interests in subsidiaries) generally should be the dominant element in Tier 1 risk-based capital, this focus on Tier 1 common equity is consistent with existing capital adequacy categories.

Tier 1 common equity is neither formally defined by GAAP nor prescribed in amount by federal banking regulations; this measure is considered to be a non-GAAP financial measure. Since analysts and banking regulators may assess Key’s capital adequacy using tangible common equity and Tier 1 common equity, management believes it is useful to enable investors to assess Key’s capital adequacy on these same bases. The table also reconciles the GAAP performance measures to the corresponding non-GAAP measures.

The table also shows the computation for pre-provision net revenue, which is not formally defined by GAAP. Management believes that eliminating the effects of the provision for loan and lease losses makes it easier to analyze the results by presenting them on a more comparable basis.

The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key’s intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key’s results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.

|  |  |  |  |  | Three months ended |
|  |  |  |  |  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |
Tangible common equity to tangible assets at period end |  |  |  |  |  |  |  |  |  |  |  |
|  | Key shareholders’ equity (GAAP) |  | $ | 10,509 |  |  | $ | 10,504 |  |  | $ | 10,206 |
|  | Less: |  | Intangible assets (a) |  |  | 1,105 |  |  |  | 1,008 |  |  |  | 1,017 |
|  |  |  | Preferred Stock, Series A (b) |  |  | 282 |  |  |  | 282 |  |  |  | 282 |
|  |  |  | Tangible common equity (non-GAAP) |  | $ | 9,122 |  |  | $ | 9,214 |  |  | $ | 8,907 |
|  | Total assets (GAAP) |  | $ | 89,770 |  |  | $ | 91,798 |  |  | $ | 90,708 |
|  | Less: |  | Intangible assets (a) |  |  | 1,105 |  |  |  | 1,008 |  |  |  | 1,017 |
|  |  |  | Tangible assets (non-GAAP) |  | $ | 88,665 |  |  | $ | 90,790 |  |  | $ | 89,691 |
|  | Tangible common equity to tangible assets ratio (non-GAAP) |  |  | 10.29 | % |  |  | 10.15 | % |  |  | 9.93 | %
Tier 1 common equity at period end |  |  |  |  |  |  |  |  |  |  |  |
|  | Key shareholders’ equity (GAAP) |  | $ | 10,509 |  |  | $ | 10,504 |  |  | $ | 10,206 |
|  | Qualifying capital securities |  |  | 340 |  |  |  | 339 |  |  |  | 340 |
|  | Less: |  | Goodwill |  |  | 1,051 |  |  |  | 979 |  |  |  | 979 |
|  |  |  | Accumulated other comprehensive income (loss) (c) |  |  | (366 | ) |  |  | (328 | ) |  |  | (409 | )
|  |  |  | Other assets (d) |  |  | 110 |  |  |  | 86 |  |  |  | 96 |
|  |  |  | Total Tier 1 capital (regulatory) |  |  | 10,054 |  |  |  | 10,106 |  |  |  | 9,880 |
|  | Less: |  | Qualifying capital securities |  |  | 340 |  |  |  | 339 |  |  |  | 340 |
|  |  |  | Preferred Stock, Series A (b) |  |  | 282 |  |  |  | 282 |  |  |  | 282 |
|  |  |  | Total Tier 1 common equity (non-GAAP) |  | $ | 9,432 |  |  | $ | 9,485 |  |  | $ | 9,258 |
|  | Net risk-weighted assets (regulatory) (e) |  | $ | 83,787 |  |  | $ | 84,287 |  |  | $ | 82,913 |
|  | Tier 1 common equity ratio (non-GAAP) (e) |  |  | 11.26 | % |  |  | 11.25 | % |  |  | 11.17 | %
Pre-provision net revenue |  |  |  |  |  |  |  |  |  |  |  |
|  | Net interest income (GAAP) |  | $ | 575 |  |  | $ | 573 |  |  | $ | 578 |
|  | Plus: |  | Taxable-equivalent adjustment |  |  | 6 |  |  |  | 6 |  |  |  | 6 |
|  |  |  | Noninterest income (GAAP) |  |  | 417 |  |  |  | 455 |  |  |  | 459 |
|  | Less: |  | Noninterest expense (GAAP) |  |  | 704 |  |  |  | 689 |  |  |  | 716 |
|  | Pre-provision net revenue from continuing operations (non-GAAP) |  | $ | 294 |  |  | $ | 345 |  |  | $ | 327 |

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 16

GAAP to Non-GAAP Reconciliations (continued)

(dollars in millions)

|  |  |  |  |  | Three months ended |
|  |  |  |  |  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |
Average tangible common equity |  |  |  |  |  |  |  |  |  |  |  |
|  | Average Key shareholders’ equity (GAAP) |  | $ | 10,473 |  |  | $ | 10,459 |  |  | $ | 10,237 |
|  | Less: |  | Intangible assets (average) (f) |  |  | 1,037 |  |  |  | 1,010 |  |  |  | 1,019 |
|  |  |  | Preferred Stock, Series A (average) |  |  | 291 |  |  |  | 291 |  |  |  | 291 |
|  |  |  | Average tangible common equity (non-GAAP) |  | $ | 9,145 |  |  | $ | 9,158 |  |  | $ | 8,927 |
Return on average tangible common equity from continuing operations |  |  |  |  |  |  |  |  |  |  |  |
|  | Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) |  | $ | 197 |  |  | $ | 242 |  |  | $ | 229 |
|  | Average tangible common equity (non-GAAP) |  |  | 9,145 |  |  |  | 9,158 |  |  |  | 8,927 |
|  | Return on average tangible common equity from continuing operations (non-GAAP) |  |  | 8.55 | % |  |  | 10.60 | % |  |  | 10.18 | %
Return on average tangible common equity consolidated |  |  |  |  |  |  |  |  |  |  |  |
|  | Net income (loss) attributable to Key common shareholders (GAAP) |  | $ | 204 |  |  | $ | 214 |  |  | $ | 266 |
|  | Average tangible common equity (non-GAAP) |  |  | 9,145 |  |  |  | 9,158 |  |  |  | 8,927 |
|  | Return on average tangible common equity consolidated (non-GAAP) |  |  | 8.85 | % |  |  | 9.37 | % |  |  | 11.82 | %
Cash efficiency ratio |  |  |  |  |  |  |  |  |  |  |  |
|  | Noninterest expense (GAAP) |  | $ | 704 |  |  | $ | 689 |  |  | $ | 716 |
|  | Less: |  | Intangible asset amortization (GAAP) |  |  | 10 |  |  |  | 9 |  |  |  | 12 |
|  |  |  | Adjusted noninterest expense (non-GAAP) |  | $ | 694 |  |  | $ | 680 |  |  | $ | 704 |
|  | Net interest income (GAAP) |  | $ | 575 |  |  | $ | 573 |  |  | $ | 578 |
|  | Plus: |  | Taxable-equivalent adjustment |  |  | 6 |  |  |  | 6 |  |  |  | 6 |
|  |  |  | Noninterest income (GAAP) |  |  | 417 |  |  |  | 455 |  |  |  | 459 |
|  |  |  | Total taxable-equivalent revenue (non-GAAP) |  | $ | 998 |  |  | $ | 1,034 |  |  | $ | 1,043 |
|  | Cash efficiency ratio (non-GAAP) |  |  | 69.5 | % |  |  | 65.8 | % |  |  | 67.5 | %
|  |  |  |  |  | Three months ended |  |  |  |
|  |  |  |  |  | 9-30-14 |  |  | 6-30-14 |  |  |  |
Common Equity Tier 1 under the Regulatory Capital Rules (estimates) |  |  |  |  |  |  |  |  |  |  |  |
|  | Tier 1 common equity under current regulatory rules |  | $ | 9,432 |  |  | $ | 9,485 |  |  |  |  |
|  | Adjustments from current regulatory rules to the Regulatory Capital Rules: |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Deferred tax assets and other (g) |  |  | (99 | ) |  |  | (108 | ) |  |  |  |
|  |  |  | Common Equity Tier 1 anticipated under the Regulatory Capital Rules (h) |  | $ | 9,333 |  |  | $ | 9,377 |  |  |  |  |
|  | Net risk-weighted assets under current regulatory rules |  | $ | 83,787 |  |  | $ | 84,287 |  |  |  |  |
|  | Adjustments from current regulatory rules to the Regulatory Capital Rules: |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Loan commitments less than one year |  |  | 1,018 |  |  |  | 1,004 |  |  |  |  |
|  |  |  | Past due loans |  |  | 128 |  |  |  | 128 |  |  |  |  |
|  |  |  | Mortgage servicing assets (i) |  |  | 470 |  |  |  | 484 |  |  |  |  |
|  |  |  | Deferred tax assets (i) |  |  | 252 |  |  |  | 177 |  |  |  |  |
|  |  |  | Other |  |  | 1,519 |  |  |  | 1,519 |  |  |  |  |
|  |  |  | Total risk-weighted assets anticipated under the Regulatory Capital Rules (h) |  | $ | 87,174 |  |  | $ | 87,599 |  |  |  |  |
|  | Common Equity Tier 1 ratio under the Regulatory Capital Rules |  |  | 10.71 | % |  |  | 10.70 | % |  |  |  |

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 17

GAAP to Non-GAAP Reconciliations (continued)

(dollars in millions)

|  |  |  |  |  | Nine months ended |
|  |  |  |  |  | 9-30-14 |  |  | 9-30-13 |
Pre-provision net revenue |  |  |  |  |  |  |  |
|  | Net interest income (GAAP) |  | $ | 1,711 |  |  | $ | 1,742 |
|  | Plus: |  | Taxable-equivalent adjustment |  |  | 18 |  |  |  | 17 |
|  |  |  | Noninterest income (GAAP) |  |  | 1,307 |  |  |  | 1,313 |
|  | Less: |  | Noninterest expense (GAAP) |  |  | 2,055 |  |  |  | 2,108 |
|  | Pre-provision net revenue from continuing operations (non-GAAP) |  | $ | 981 |  |  | $ | 964 |
Average tangible common equity |  |  |  |  |  |  |  |
|  | Average Key shareholders’ equity (GAAP) |  | $ | 10,435 |  |  | $ | 10,277 |
|  | Less: |  | Intangible assets (average) (j) |  |  | 1,020 |  |  |  | 1,023 |
|  |  |  | Preferred Stock, Series A (average) |  |  | 291 |  |  |  | 291 |
|  |  |  | Average tangible common equity (non-GAAP) |  | $ | 9,124 |  |  | $ | 8,963 |
Return on average tangible common equity from continuing operations |  |  |  |  |  |  |  |
|  | Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) |  | $ | 671 |  |  | $ | 618 |
|  | Average tangible common equity (non-GAAP) |  |  | 9,124 |  |  |  | 8,963 |
|  | Return on average tangible common equity from continuing operations (non-GAAP) |  |  | 9.83 | % |  |  | 9.22 | %
Return on average tangible common equity consolidated |  |  |  |  |  |  |  |
|  | Net income (loss) attributable to Key common shareholders (GAAP) |  | $ | 654 |  |  | $ | 663 |
|  | Average tangible common equity (non-GAAP) |  |  | 9,124 |  |  |  | 8,963 |
|  | Return on average tangible common equity consolidated (non-GAAP) |  |  | 9.58 | % |  |  | 9.89 | %
Cash efficiency ratio |  |  |  |  |  |  |  |
|  | Noninterest expense (GAAP) |  | $ | 2,055 |  |  | $ | 2,108 |
|  | Less: |  | Intangible asset amortization (GAAP) |  |  | 29 |  |  |  | 34 |
|  |  |  | Adjusted noninterest expense (non-GAAP) |  | $ | 2,026 |  |  | $ | 2,074 |
|  | Net interest income (GAAP) |  | $ | 1,711 |  |  | $ | 1,742 |
|  | Plus: |  | Taxable-equivalent adjustment |  |  | 18 |  |  |  | 17 |
|  |  |  | Noninterest income (GAAP) |  |  | 1,307 |  |  |  | 1,313 |
|  |  |  | Total taxable-equivalent revenue (non-GAAP) |  | $ | 3,036 |  |  | $ | 3,072 |
|  | Cash efficiency ratio (non-GAAP) |  |  | 66.7 | % |  |  | 67.5 | %

(a) | For the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, intangible assets exclude $72 million, $79 million, and $99 million, respectively, of period-end purchased credit card receivables.

(b) | Net of capital surplus.

(c) | Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities), net gains or losses on cash flow hedges, and amounts resulting from the application of the applicable accounting guidance for defined benefit and other postretirement plans.

(d) | Other assets deducted from Tier 1 capital and net risk-weighted assets consist of disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments. There were no disallowed deferred tax assets at September 30, 2014, June 30, 2014, and September 30, 2013.

(e) | 9-30-14 amount is estimated.

(f) | For the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, average intangible assets exclude $76 million, $82 million, and $103 million, respectively, of average purchased credit card receivables.

(g) | Includes the deferred tax asset subject to future taxable income for realization, primarily tax credit carryforwards, as well as the deductible portion of purchased credit card receivables.

(h) | The anticipated amount of regulatory capital and risk-weighted assets is based upon the federal banking agencies’ Regulatory Capital Rules (as fully phased-in on January 1, 2019); Key is subject to the Regulatory Capital Rules under the “standardized approach.”

(i) | Item is included in the 10%/15% exceptions bucket calculation and is risk-weighted at 250%.

(j) | For the nine months ended September 30, 2014, and September 30, 2013, average intangible assets exclude $82 million and $110 million, respectively, of average purchased credit card receivables.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 18

Consolidated Balance Sheets

(dollars in millions)

|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |
Assets |  |  |  |  |
Loans |  | $ | 56,155 |  |  | $ | 55,600 |  |  | $ | 53,597 |
Loans held for sale |  |  | 784 |  |  |  | 435 |  |  |  | 699 |
Securities available for sale |  |  | 12,245 |  |  |  | 12,224 |  |  |  | 12,606 |
Held-to-maturity securities |  |  | 4,997 |  |  |  | 5,233 |  |  |  | 4,835 |
Trading account assets |  |  | 965 |  |  |  | 890 |  |  |  | 806 |
Short-term investments |  |  | 2,342 |  |  |  | 3,176 |  |  |  | 3,535 |
Other investments |  |  | 822 |  |  |  | 899 |  |  |  | 1,007 |
Total earning assets |  |  | 78,310 |  |  |  | 78,457 |  |  |  | 77,085 |
Allowance for loan and lease losses |  |  | (804 | ) |  |  | (814 | ) |  |  | (868 | )
Cash and due from banks |  |  | 651 |  |  |  | 604 |  |  |  | 748 |
Premises and equipment |  |  | 832 |  |  |  | 844 |  |  |  | 890 |
Operating lease assets |  |  | 304 |  |  |  | 306 |  |  |  | 293 |
Goodwill |  |  | 1,051 |  |  |  | 979 |  |  |  | 979 |
Other intangible assets |  |  | 126 |  |  |  | 108 |  |  |  | 137 |
Corporate-owned life insurance |  |  | 3,456 |  |  |  | 3,438 |  |  |  | 3,384 |
Derivative assets |  |  | 413 |  |  |  | 549 |  |  |  | 475 |
Accrued income and other assets |  |  | 3,010 |  |  |  | 3,090 |  |  |  | 2,747 |
Discontinued assets |  |  | 2,421 |  |  |  | 4,237 |  |  |  | 4,838 |
Total assets |  | $ | 89,770 |  |  | $ | 91,798 |  |  | $ | 90,708 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Deposits in domestic offices: |  |  |  |  |  |  |  |  |  |  |  |
NOW and money market deposit accounts |  | $ | 33,941 |  |  | $ | 33,637 |  |  | $ | 33,132 |
Savings deposits |  |  | 2,390 |  |  |  | 2,450 |  |  |  | 2,489 |
Certificates of deposit ($100,000 or more) |  |  | 2,533 |  |  |  | 2,743 |  |  |  | 2,698 |
Other time deposits |  |  | 3,338 |  |  |  | 3,505 |  |  |  | 3,833 |
Total interest-bearing deposits |  |  | 42,202 |  |  |  | 42,335 |  |  |  | 42,152 |
Noninterest-bearing deposits |  |  | 25,697 |  |  |  | 24,781 |  |  |  | 25,778 |
Deposits in foreign office — interest-bearing |  |  | 557 |  |  |  | 683 |  |  |  | 605 |
Total deposits |  |  | 68,456 |  |  |  | 67,799 |  |  |  | 68,535 |
Federal funds purchased and securities sold under repurchase agreements |  |  | 657 |  |  |  | 1,213 |  |  |  | 1,455 |
Bank notes and other short-term borrowings |  |  | 996 |  |  |  | 521 |  |  |  | 466 |
Derivative liabilities |  |  | 384 |  |  |  | 451 |  |  |  | 450 |
Accrued expense and other liabilities |  |  | 1,537 |  |  |  | 1,400 |  |  |  | 1,375 |
Long-term debt |  |  | 7,172 |  |  |  | 8,213 |  |  |  | 6,154 |
Discontinued liabilities |  |  | 42 |  |  |  | 1,680 |  |  |  | 2,037 |
Total liabilities |  |  | 79,244 |  |  |  | 81,277 |  |  |  | 80,472 |
Equity |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, Series A |  |  | 291 |  |  |  | 291 |  |  |  | 291 |
Common shares |  |  | 1,017 |  |  |  | 1,017 |  |  |  | 1,017 |
Capital surplus |  |  | 3,984 |  |  |  | 3,987 |  |  |  | 4,029 |
Retained earnings |  |  | 8,105 |  |  |  | 7,950 |  |  |  | 7,431 |
Treasury stock, at cost |  |  | (2,563 | ) |  |  | (2,452 | ) |  |  | (2,193 | )
Accumulated other comprehensive income (loss) |  |  | (325 | ) |  |  | (289 | ) |  |  | (369 | )
Key shareholders’ equity |  |  | 10,509 |  |  |  | 10,504 |  |  |  | 10,206 |
Noncontrolling interests |  |  | 17 |  |  |  | 17 |  |  |  | 30 |
Total equity |  |  | 10,526 |  |  |  | 10,521 |  |  |  | 10,236 |
Total liabilities and equity |  | $ | 89,770 |  |  | $ | 91,798 |  |  | $ | 90,708 |
Common shares outstanding (000) |  |  | 868,477 |  |  |  | 876,823 |  |  |  | 897,821 |

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 19

Consolidated Statements of Income

(dollars in millions, except per share amounts)

|  | Three months ended |  |  | Nine months ended |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |  |  | 9-30-14 |  |  | 9-30-13 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 531 |  |  | $ | 526 |  |  | $ | 532 |  |  | $ | 1,576 |  |  | $ | 1,619 |
Loans held for sale |  |  | 4 |  |  |  | 5 |  |  |  | 5 |  |  |  | 13 |  |  |  | 14 |
Securities available for sale |  |  | 67 |  |  |  | 71 |  |  |  | 76 |  |  |  | 210 |  |  |  | 236 |
Held-to-maturity securities |  |  | 25 |  |  |  | 23 |  |  |  | 22 |  |  |  | 70 |  |  |  | 60 |
Trading account assets |  |  | 6 |  |  |  | 7 |  |  |  | 5 |  |  |  | 19 |  |  |  | 15 |
Short-term investments |  |  | 2 |  |  |  | 1 |  |  |  | 1 |  |  |  | 4 |  |  |  | 4 |
Other investments |  |  | 4 |  |  |  | 6 |  |  |  | 6 |  |  |  | 16 |  |  |  | 23 |
Total interest income |  |  | 639 |  |  |  | 639 |  |  |  | 647 |  |  |  | 1,908 |  |  |  | 1,971 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 28 |  |  |  | 31 |  |  |  | 37 |  |  |  | 91 |  |  |  | 124 |
Federal funds purchased and securities sold under repurchase agreements |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  | 2 |  |  |  | 2 |
Bank notes and other short-term borrowings |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | 6 |  |  |  | 5 |
Long-term debt |  |  | 33 |  |  |  | 33 |  |  |  | 29 |  |  |  | 98 |  |  |  | 98 |
Total interest expense |  |  | 64 |  |  |  | 66 |  |  |  | 69 |  |  |  | 197 |  |  |  | 229 |
Net interest income |  |  | 575 |  |  |  | 573 |  |  |  | 578 |  |  |  | 1,711 |  |  |  | 1,742 |
Provision (credit) for loan and lease losses |  |  | 21 |  |  |  | 10 |  |  |  | 28 |  |  |  | 37 |  |  |  | 111 |
Net interest income (expense) after provision for loan and lease losses |  |  | 554 |  |  |  | 563 |  |  |  | 550 |  |  |  | 1,674 |  |  |  | 1,631 |
Noninterest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust and investment services income |  |  | 99 |  |  |  | 94 |  |  |  | 100 |  |  |  | 291 |  |  |  | 295 |
Investment banking and debt placement fees |  |  | 88 |  |  |  | 99 |  |  |  | 86 |  |  |  | 271 |  |  |  | 249 |
Service charges on deposit accounts |  |  | 68 |  |  |  | 66 |  |  |  | 73 |  |  |  | 197 |  |  |  | 213 |
Operating lease income and other leasing gains |  |  | 17 |  |  |  | 35 |  |  |  | 44 |  |  |  | 81 |  |  |  | 91 |
Corporate services income |  |  | 42 |  |  |  | 41 |  |  |  | 44 |  |  |  | 125 |  |  |  | 132 |
Cards and payments income |  |  | 42 |  |  |  | 43 |  |  |  | 43 |  |  |  | 123 |  |  |  | 122 |
Corporate-owned life insurance income |  |  | 26 |  |  |  | 28 |  |  |  | 26 |  |  |  | 80 |  |  |  | 87 |
Consumer mortgage income |  |  | 3 |  |  |  | 2 |  |  |  | 3 |  |  |  | 7 |  |  |  | 16 |
Mortgage servicing fees |  |  | 9 |  |  |  | 11 |  |  |  | 15 |  |  |  | 35 |  |  |  | 36 |
Net gains (losses) from principal investing |  |  | 9 |  |  |  | 27 |  |  |  | 17 |  |  |  | 60 |  |  |  | 32 |
Other income (a) |  |  | 14 |  |  |  | 9 |  |  |  | 8 |  |  |  | 37 |  |  |  | 40 |
Total noninterest income |  |  | 417 |  |  |  | 455 |  |  |  | 459 |  |  |  | 1,307 |  |  |  | 1,313 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel |  |  | 405 |  |  |  | 389 |  |  |  | 414 |  |  |  | 1,182 |  |  |  | 1,211 |
Net occupancy |  |  | 66 |  |  |  | 68 |  |  |  | 66 |  |  |  | 198 |  |  |  | 202 |
Computer processing |  |  | 39 |  |  |  | 41 |  |  |  | 38 |  |  |  | 118 |  |  |  | 116 |
Business services and professional fees |  |  | 36 |  |  |  | 41 |  |  |  | 37 |  |  |  | 118 |  |  |  | 109 |
Equipment |  |  | 25 |  |  |  | 24 |  |  |  | 25 |  |  |  | 73 |  |  |  | 78 |
Operating lease expense |  |  | 11 |  |  |  | 10 |  |  |  | 14 |  |  |  | 31 |  |  |  | 37 |
Marketing |  |  | 15 |  |  |  | 13 |  |  |  | 16 |  |  |  | 33 |  |  |  | 33 |
FDIC assessment |  |  | 9 |  |  |  | 6 |  |  |  | 7 |  |  |  | 21 |  |  |  | 23 |
Intangible asset amortization |  |  | 10 |  |  |  | 9 |  |  |  | 12 |  |  |  | 29 |  |  |  | 34 |
Provision (credit) for losses on lending-related commitments |  |  | (2 | ) |  |  | 2 |  |  |  | 3 |  |  |  | (2 | ) |  |  | 11 |
OREO expense, net |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 3 |  |  |  | 5 |
Other expense |  |  | 89 |  |  |  | 85 |  |  |  | 83 |  |  |  | 251 |  |  |  | 249 |
Total noninterest expense |  |  | 704 |  |  |  | 689 |  |  |  | 716 |  |  |  | 2,055 |  |  |  | 2,108 |
Income (loss) from continuing operations before income taxes |  |  | 267 |  |  |  | 329 |  |  |  | 293 |  |  |  | 926 |  |  |  | 836 |
Income taxes |  |  | 64 |  |  |  | 76 |  |  |  | 59 |  |  |  | 232 |  |  |  | 201 |
Income (loss) from continuing operations |  |  | 203 |  |  |  | 253 |  |  |  | 234 |  |  |  | 694 |  |  |  | 635 |
Income (loss) from discontinued operations, net of taxes |  |  | 7 |  |  |  | (28 | ) |  |  | 37 |  |  |  | (17 | ) |  |  | 45 |
Net income (loss) |  |  | 210 |  |  |  | 225 |  |  |  | 271 |  |  |  | 677 |  |  |  | 680 |
Less: Net income (loss) attributable to noncontrolling interests |  |  | — |  |  |  | 6 |  |  |  | (1 | ) |  |  | 6 |  |  |  | — |
Net income (loss) attributable to Key |  | $ | 210 |  |  | $ | 219 |  |  | $ | 272 |  |  | $ | 671 |  |  | $ | 680 |
Income (loss) from continuing operations attributable to Key common shareholders |  | $ | 197 |  |  | $ | 242 |  |  | $ | 229 |  |  | $ | 671 |  |  | $ | 618 |
Net income (loss) attributable to Key common shareholders |  |  | 204 |  |  |  | 214 |  |  |  | 266 |  |  |  | 654 |  |  |  | 663 |
Per common share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations attributable to Key common shareholders |  | $ | .23 |  |  | $ | .28 |  |  | $ | .25 |  |  | $ | .77 |  |  | $ | .68 |
Income (loss) from discontinued operations, net of taxes |  |  | .01 |  |  |  | (.03 | ) |  |  | .04 |  |  |  | (.02 | ) |  |  | .05 |
Net income (loss) attributable to Key common shareholders (b) |  |  | .24 |  |  |  | .24 |  |  |  | .29 |  |  |  | .75 |  |  |  | .73 |
Per common share — assuming dilution |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations attributable to Key common shareholders |  | $ | .23 |  |  | $ | .27 |  |  | $ | .25 |  |  | $ | .76 |  |  | $ | .67 |
Income (loss) from discontinued operations, net of taxes |  |  | .01 |  |  |  | (.03 | ) |  |  | .04 |  |  |  | (.02 | ) |  |  | .05 |
Net income (loss) attributable to Key common shareholders (b) |  |  | .23 |  |  |  | .24 |  |  |  | .29 |  |  |  | .74 |  |  |  | .72 |
Cash dividends declared per common share |  | $ | .065 |  |  | $ | .065 |  |  | $ | .055 |  |  | $ | .185 |  |  | $ | .16 |
Weighted-average common shares outstanding (000) |  |  | 867,350 |  |  |  | 875,298 |  |  |  | 901,904 |  |  |  | 875,728 |  |  |  | 911,918 |
Effect of convertible preferred stock |  |  | — |  |  |  | 20,602 |  |  |  | — |  |  |  | — |  |  |  | — |
Effect of common share options and other stock awards |  |  | 6,772 |  |  |  | 6,237 |  |  |  | 6,349 |  |  |  | 6,723 |  |  |  | 5,661 |
Weighted-average common shares and potential common shares outstanding (000) (c) |  |  | 874,122 |  |  |  | 902,137 |  |  |  | 908,253 |  |  |  | 882,451 |  |  |  | 917,579 |

(a) | For each of the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, Key did not have any impairment losses related to securities.

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

(c) | Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 20

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

(dollars in millions)

|  | Third Quarter 2014 |  |  | Second Quarter 2014 |  |  | Third Quarter 2013 |
|  | Average Balance |  |  | Interest (a) |  |  | Yield/Rate (a) |  |  | Average Balance |  |  | Interest (a) |  |  | Yield/Rate (a) |  |  | Average Balance |  |  | Interest (a) |  |  | Yield/Rate (a) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans: (b), (c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial and agricultural (d) |  | $ | 26,456 |  |  | $ | 218 |  |  |  | 3.28 | % |  | $ | 26,444 |  |  | $ | 219 |  |  |  | 3.31 | % |  | $ | 23,864 |  |  | $ | 213 |  |  |  | 3.54 | %
Real estate — commercial mortgage |  |  | 8,142 |  |  |  | 78 |  |  |  | 3.79 |  |  |  | 7,880 |  |  |  | 74 |  |  |  | 3.79 |  |  |  | 7,575 |  |  |  | 77 |  |  |  | 4.06 |
Real estate — construction |  |  | 1,030 |  |  |  | 10 |  |  |  | 3.78 |  |  |  | 1,049 |  |  |  | 11 |  |  |  | 4.03 |  |  |  | 1,073 |  |  |  | 12 |  |  |  | 4.24 |
Commercial lease financing |  |  | 4,145 |  |  |  | 38 |  |  |  | 3.66 |  |  |  | 4,257 |  |  |  | 38 |  |  |  | 3.54 |  |  |  | 4,633 |  |  |  | 36 |  |  |  | 3.14 |
Total commercial loans |  |  | 39,773 |  |  |  | 344 |  |  |  | 3.44 |  |  |  | 39,630 |  |  |  | 342 |  |  |  | 3.45 |  |  |  | 37,145 |  |  |  | 338 |  |  |  | 3.61 |
Real estate — residential mortgage |  |  | 2,204 |  |  |  | 24 |  |  |  | 4.35 |  |  |  | 2,189 |  |  |  | 24 |  |  |  | 4.41 |  |  |  | 2,193 |  |  |  | 25 |  |  |  | 4.43 |
Home equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Community Bank |  |  | 10,368 |  |  |  | 102 |  |  |  | 3.91 |  |  |  | 10,321 |  |  |  | 100 |  |  |  | 3.92 |  |  |  | 10,247 |  |  |  | 101 |  |  |  | 3.92 |
Other |  |  | 290 |  |  |  | 6 |  |  |  | 7.80 |  |  |  | 306 |  |  |  | 6 |  |  |  | 7.80 |  |  |  | 364 |  |  |  | 7 |  |  |  | 7.72 |
Total home equity loans |  |  | 10,658 |  |  |  | 108 |  |  |  | 4.01 |  |  |  | 10,627 |  |  |  | 106 |  |  |  | 4.03 |  |  |  | 10,611 |  |  |  | 108 |  |  |  | 4.05 |
Consumer other — Key Community Bank |  |  | 1,534 |  |  |  | 26 |  |  |  | 6.87 |  |  |  | 1,479 |  |  |  | 26 |  |  |  | 6.97 |  |  |  | 1,435 |  |  |  | 26 |  |  |  | 7.24 |
Credit cards |  |  | 716 |  |  |  | 20 |  |  |  | 11.12 |  |  |  | 702 |  |  |  | 18 |  |  |  | 10.39 |  |  |  | 700 |  |  |  | 21 |  |  |  | 11.77 |
Consumer other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marine |  |  | 856 |  |  |  | 13 |  |  |  | 6.23 |  |  |  | 926 |  |  |  | 15 |  |  |  | 6.18 |  |  |  | 1,120 |  |  |  | 17 |  |  |  | 6.26 |
Other |  |  | 55 |  |  |  | 2 |  |  |  | 7.63 |  |  |  | 58 |  |  |  | 1 |  |  |  | 8.09 |  |  |  | 67 |  |  |  | 2 |  |  |  | 8.72 |
Total consumer other |  |  | 911 |  |  |  | 15 |  |  |  | 6.32 |  |  |  | 984 |  |  |  | 16 |  |  |  | 6.29 |  |  |  | 1,187 |  |  |  | 19 |  |  |  | 6.40 |
Total consumer loans |  |  | 16,023 |  |  |  | 193 |  |  |  | 4.78 |  |  |  | 15,981 |  |  |  | 190 |  |  |  | 4.77 |  |  |  | 16,126 |  |  |  | 199 |  |  |  | 4.93 |
Total loans |  |  | 55,796 |  |  |  | 537 |  |  |  | 3.82 |  |  |  | 55,611 |  |  |  | 532 |  |  |  | 3.83 |  |  |  | 53,271 |  |  |  | 537 |  |  |  | 4.00 |
Loans held for sale |  |  | 502 |  |  |  | 4 |  |  |  | 3.87 |  |  |  | 458 |  |  |  | 5 |  |  |  | 4.14 |  |  |  | 456 |  |  |  | 5 |  |  |  | 4.06 |
Securities available for sale (b), (e) |  |  | 11,939 |  |  |  | 67 |  |  |  | 2.25 |  |  |  | 12,408 |  |  |  | 71 |  |  |  | 2.30 |  |  |  | 12,926 |  |  |  | 77 |  |  |  | 2.37 |
Held-to-maturity securities (b) |  |  | 5,108 |  |  |  | 25 |  |  |  | 1.90 |  |  |  | 4,973 |  |  |  | 23 |  |  |  | 1.87 |  |  |  | 4,796 |  |  |  | 22 |  |  |  | 1.84 |
Trading account assets |  |  | 893 |  |  |  | 6 |  |  |  | 2.68 |  |  |  | 985 |  |  |  | 7 |  |  |  | 2.80 |  |  |  | 747 |  |  |  | 5 |  |  |  | 2.52 |
Short-term investments |  |  | 3,048 |  |  |  | 2 |  |  |  | .19 |  |  |  | 2,475 |  |  |  | 1 |  |  |  | .17 |  |  |  | 1,615 |  |  |  | 1 |  |  |  | .20 |
Other investments (e) |  |  | 847 |  |  |  | 4 |  |  |  | 2.12 |  |  |  | 888 |  |  |  | 6 |  |  |  | 2.64 |  |  |  | 1,022 |  |  |  | 6 |  |  |  | 2.67 |
Total earning assets |  |  | 78,133 |  |  |  | 645 |  |  |  | 3.30 |  |  |  | 77,798 |  |  |  | 645 |  |  |  | 3.31 |  |  |  | 74,833 |  |  |  | 653 |  |  |  | 3.49 |
Allowance for loan and lease losses |  |  | (809 | ) |  |  |  |  |  |  |  |  |  |  | (824 | ) |  |  |  |  |  |  |  |  |  |  | (873 | ) |  |  |  |  |  |  |  |
Accrued income and other assets |  |  | 9,799 |  |  |  |  |  |  |  |  |  |  |  | 9,767 |  |  |  |  |  |  |  |  |  |  |  | 9,549 |  |  |  |  |  |  |  |  |
Discontinued assets |  |  | 4,138 |  |  |  |  |  |  |  |  |  |  |  | 4,341 |  |  |  |  |  |  |  |  |  |  |  | 5,061 |  |  |  |  |  |  |  |  |
Total assets |  | $ | 91,261 |  |  |  |  |  |  |  |  |  |  | $ | 91,082 |  |  |  |  |  |  |  |  |  |  | $ | 88,570 |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NOW and money market deposit accounts |  | $ | 33,969 |  |  |  | 12 |  |  |  | .14 |  |  | $ | 34,283 |  |  |  | 11 |  |  |  | .14 |  |  | $ | 32,736 |  |  |  | 13 |  |  |  | .15 |
Savings deposits |  |  | 2,428 |  |  |  | 1 |  |  |  | .02 |  |  |  | 2,493 |  |  |  | — |  |  |  | .03 |  |  |  | 2,520 |  |  |  | — |  |  |  | .04 |
Certificates of deposit ($100,000 or more) (f) |  |  | 2,629 |  |  |  | 8 |  |  |  | 1.23 |  |  |  | 2,808 |  |  |  | 10 |  |  |  | 1.39 |  |  |  | 2,785 |  |  |  | 12 |  |  |  | 1.67 |
Other time deposits |  |  | 3,413 |  |  |  | 7 |  |  |  | .83 |  |  |  | 3,587 |  |  |  | 9 |  |  |  | .98 |  |  |  | 3,957 |  |  |  | 12 |  |  |  | 1.24 |
Deposits in foreign office |  |  | 595 |  |  |  | — |  |  |  | .23 |  |  |  | 662 |  |  |  | 1 |  |  |  | .23 |  |  |  | 621 |  |  |  | — |  |  |  | .20 |
Total interest-bearing deposits |  |  | 43,034 |  |  |  | 28 |  |  |  | .26 |  |  |  | 43,833 |  |  |  | 31 |  |  |  | .28 |  |  |  | 42,619 |  |  |  | 37 |  |  |  | .35 |
Federal funds purchased and securities sold under repurchase agreements |  |  | 1,176 |  |  |  | 1 |  |  |  | .19 |  |  |  | 1,470 |  |  |  | — |  |  |  | .19 |  |  |  | 1,837 |  |  |  | 1 |  |  |  | .08 |
Bank notes and other short-term borrowings |  |  | 484 |  |  |  | 2 |  |  |  | 1.79 |  |  |  | 545 |  |  |  | 2 |  |  |  | 1.54 |  |  |  | 383 |  |  |  | 2 |  |  |  | 1.98 |
Long-term debt (f), (g) |  |  | 4,868 |  |  |  | 33 |  |  |  | 2.88 |  |  |  | 5,476 |  |  |  | 33 |  |  |  | 2.51 |  |  |  | 3,504 |  |  |  | 29 |  |  |  | 3.41 |
Total interest-bearing liabilities |  |  | 49,562 |  |  |  | 64 |  |  |  | .52 |  |  |  | 51,324 |  |  |  | 66 |  |  |  | .52 |  |  |  | 48,343 |  |  |  | 69 |  |  |  | .56 |
Noninterest-bearing deposits |  |  | 25,302 |  |  |  |  |  |  |  |  |  |  |  | 23,290 |  |  |  |  |  |  |  |  |  |  |  | 23,364 |  |  |  |  |  |  |  |  |
Accrued expense and other liabilities |  |  | 1,768 |  |  |  |  |  |  |  |  |  |  |  | 1,654 |  |  |  |  |  |  |  |  |  |  |  | 1,626 |  |  |  |  |  |  |  |  |
Discontinued liabilities (g) |  |  | 4,138 |  |  |  |  |  |  |  |  |  |  |  | 4,341 |  |  |  |  |  |  |  |  |  |  |  | 4,968 |  |  |  |  |  |  |  |  |
Total liabilities |  |  | 80,770 |  |  |  |  |  |  |  |  |  |  |  | 80,609 |  |  |  |  |  |  |  |  |  |  |  | 78,301 |  |  |  |  |  |  |  |  |
Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key shareholders’ equity |  |  | 10,473 |  |  |  |  |  |  |  |  |  |  |  | 10,459 |  |  |  |  |  |  |  |  |  |  |  | 10,237 |  |  |  |  |  |  |  |  |
Noncontrolling interests |  |  | 18 |  |  |  |  |  |  |  |  |  |  |  | 14 |  |  |  |  |  |  |  |  |  |  |  | 32 |  |  |  |  |  |  |  |  |
Total equity |  |  | 10,491 |  |  |  |  |  |  |  |  |  |  |  | 10,473 |  |  |  |  |  |  |  |  |  |  |  | 10,269 |  |  |  |  |  |  |  |  |
Total liabilities and equity |  | $ | 91,261 |  |  |  |  |  |  |  |  |  |  | $ | 91,082 |  |  |  |  |  |  |  |  |  |  | $ | 88,570 |  |  |  |  |  |  |  |  |
Interest rate spread (TE) |  |  |  |  |  |  |  |  |  |  | 2.78 | % |  |  |  |  |  |  |  |  |  |  | 2.79 | % |  |  |  |  |  |  |  |  |  |  | 2.93 | %
Net interest income (TE) and net interest margin (TE) |  |  |  |  |  |  | 581 |  |  |  | 2.96 | % |  |  |  |  |  |  | 579 |  |  |  | 2.98 | % |  |  |  |  |  |  | 584 |  |  |  | 3.11 | %
TE adjustment (b) |  |  |  |  |  |  | 6 |  |  |  |  |  |  |  |  |  |  |  | 6 |  |  |  |  |  |  |  |  |  |  |  | 6 |  |  |  |  |
Net interest income, GAAP basis |  |  |  |  |  | $ | 575 |  |  |  |  |  |  |  |  |  |  | $ | 573 |  |  |  |  |  |  |  |  |  |  | $ | 578 |  |  |  |  |

(a) | Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.

(b) | Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%.

(c) | For purposes of these computations, nonaccrual loans are included in average loan balances.

(d) | Commercial, financial and agricultural average balances include $92 million, $95 million, and $96 million of assets from commercial credit cards for the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, respectively.

(e) | Yield is calculated on the basis of amortized cost.

(f) | Rate calculation excludes basis adjustments related to fair value hedges.

(g) | A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying our matched funds transfer pricing methodology to discontinued operations.

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

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 21

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

(dollars in millions)

|  | Nine months ended September 30, 2014 |  |  | Nine months ended September 30, 2013 |
|  | Average Balance |  |  | Interest (a) |  |  | Yield/Rate (a) |  |  | Average Balance |  |  | Interest (a) |  |  | Yield/Rate (a) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans: (b), (c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial and agricultural (d) |  | $ | 26,100 |  |  | $ | 643 |  |  |  | 3.29 | % |  | $ | 23,556 |  |  | $ | 643 |  |  |  | 3.65 | %
Real estate — commercial mortgage |  |  | 7,944 |  |  |  | 226 |  |  |  | 3.81 |  |  |  | 7,561 |  |  |  | 234 |  |  |  | 4.15 |
Real estate — construction |  |  | 1,056 |  |  |  | 33 |  |  |  | 4.13 |  |  |  | 1,053 |  |  |  | 34 |  |  |  | 4.27 |
Commercial lease financing |  |  | 4,280 |  |  |  | 118 |  |  |  | 3.67 |  |  |  | 4,740 |  |  |  | 131 |  |  |  | 3.68 |
Total commercial loans |  |  | 39,380 |  |  |  | 1,020 |  |  |  | 3.46 |  |  |  | 36,910 |  |  |  | 1,042 |  |  |  | 3.77 |
Real estate — residential mortgage |  |  | 2,193 |  |  |  | 72 |  |  |  | 4.40 |  |  |  | 2,181 |  |  |  | 74 |  |  |  | 4.51 |
Home equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Community Bank |  |  | 10,332 |  |  |  | 302 |  |  |  | 3.92 |  |  |  | 10,011 |  |  |  | 295 |  |  |  | 3.94 |
Other |  |  | 307 |  |  |  | 18 |  |  |  | 7.79 |  |  |  | 388 |  |  |  | 22 |  |  |  | 7.69 |
Total home equity loans |  |  | 10,639 |  |  |  | 320 |  |  |  | 4.03 |  |  |  | 10,399 |  |  |  | 317 |  |  |  | 4.08 |
Consumer other — Key Community Bank |  |  | 1,484 |  |  |  | 77 |  |  |  | 6.96 |  |  |  | 1,390 |  |  |  | 77 |  |  |  | 7.38 |
Credit cards |  |  | 706 |  |  |  | 58 |  |  |  | 10.93 |  |  |  | 700 |  |  |  | 63 |  |  |  | 12.10 |
Consumer other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marine |  |  | 926 |  |  |  | 43 |  |  |  | 6.20 |  |  |  | 1,212 |  |  |  | 57 |  |  |  | 6.27 |
Other |  |  | 60 |  |  |  | 4 |  |  |  | 7.75 |  |  |  | 75 |  |  |  | 5 |  |  |  | 8.40 |
Total consumer other |  |  | 986 |  |  |  | 47 |  |  |  | 6.29 |  |  |  | 1,287 |  |  |  | 62 |  |  |  | 6.39 |
Total consumer loans |  |  | 16,008 |  |  |  | 574 |  |  |  | 4.79 |  |  |  | 15,957 |  |  |  | 593 |  |  |  | 4.95 |
Total loans |  |  | 55,388 |  |  |  | 1,594 |  |  |  | 3.85 |  |  |  | 52,867 |  |  |  | 1,635 |  |  |  | 4.14 |
Loans held for sale |  |  | 469 |  |  |  | 13 |  |  |  | 3.79 |  |  |  | 479 |  |  |  | 14 |  |  |  | 3.75 |
Securities available for sale (b), (e) |  |  | 12,229 |  |  |  | 210 |  |  |  | 2.29 |  |  |  | 12,766 |  |  |  | 237 |  |  |  | 2.52 |
Held-to-maturity securities (b) |  |  | 4,950 |  |  |  | 70 |  |  |  | 1.87 |  |  |  | 4,256 |  |  |  | 60 |  |  |  | 1.88 |
Trading account assets |  |  | 953 |  |  |  | 19 |  |  |  | 2.66 |  |  |  | 735 |  |  |  | 15 |  |  |  | 2.74 |
Short-term investments |  |  | 2,672 |  |  |  | 4 |  |  |  | .18 |  |  |  | 2,440 |  |  |  | 4 |  |  |  | .22 |
Other investments (e) |  |  | 890 |  |  |  | 16 |  |  |  | 2.45 |  |  |  | 1,043 |  |  |  | 23 |  |  |  | 2.96 |
Total earning assets |  |  | 77,551 |  |  |  | 1,926 |  |  |  | 3.31 |  |  |  | 74,586 |  |  |  | 1,988 |  |  |  | 3.56 |
Allowance for loan and lease losses |  |  | (825 | ) |  |  |  |  |  |  |  |  |  |  | (886 | ) |  |  |  |  |  |  |  |
Accrued income and other assets |  |  | 9,786 |  |  |  |  |  |  |  |  |  |  |  | 9,727 |  |  |  |  |  |  |  |  |
Discontinued assets |  |  | 4,323 |  |  |  |  |  |  |  |  |  |  |  | 5,124 |  |  |  |  |  |  |  |  |
Total assets |  | $ | 90,835 |  |  |  |  |  |  |  |  |  |  | $ | 88,551 |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NOW and money market deposit accounts |  | $ | 34,105 |  |  |  | 35 |  |  |  | .14 |  |  | $ | 32,513 |  |  |  | 41 |  |  |  | .17 |
Savings deposits |  |  | 2,466 |  |  |  | 1 |  |  |  | .03 |  |  |  | 2,513 |  |  |  | 1 |  |  |  | .05 |
Certificates of deposit ($100,000 or more) (f) |  |  | 2,731 |  |  |  | 28 |  |  |  | 1.38 |  |  |  | 2,890 |  |  |  | 39 |  |  |  | 1.82 |
Other time deposits |  |  | 3,558 |  |  |  | 26 |  |  |  | .96 |  |  |  | 4,202 |  |  |  | 42 |  |  |  | 1.34 |
Deposits in foreign office |  |  | 639 |  |  |  | 1 |  |  |  | .23 |  |  |  | 550 |  |  |  | 1 |  |  |  | .23 |
Total interest-bearing deposits |  |  | 43,499 |  |  |  | 91 |  |  |  | .28 |  |  |  | 42,668 |  |  |  | 124 |  |  |  | .39 |
Federal funds purchased and securities sold under repurchase agreements |  |  | 1,371 |  |  |  | 2 |  |  |  | .18 |  |  |  | 1,865 |  |  |  | 2 |  |  |  | .12 |
Bank notes and other short-term borrowings |  |  | 538 |  |  |  | 6 |  |  |  | 1.65 |  |  |  | 379 |  |  |  | 5 |  |  |  | 1.86 |
Long-term debt (f), (g) |  |  | 5,169 |  |  |  | 98 |  |  |  | 2.65 |  |  |  | 4,187 |  |  |  | 98 |  |  |  | 3.39 |
Total interest-bearing liabilities |  |  | 50,577 |  |  |  | 197 |  |  |  | .52 |  |  |  | 49,099 |  |  |  | 229 |  |  |  | .63 |
Noninterest-bearing deposits |  |  | 23,760 |  |  |  |  |  |  |  |  |  |  |  | 22,361 |  |  |  |  |  |  |  |  |
Accrued expense and other liabilities |  |  | 1,724 |  |  |  |  |  |  |  |  |  |  |  | 1,692 |  |  |  |  |  |  |  |  |
Discontinued liabilities (g) |  |  | 4,323 |  |  |  |  |  |  |  |  |  |  |  | 5,089 |  |  |  |  |  |  |  |  |
Total liabilities |  |  | 80,384 |  |  |  |  |  |  |  |  |  |  |  | 78,241 |  |  |  |  |  |  |  |  |
Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key shareholders’ equity |  |  | 10,435 |  |  |  |  |  |  |  |  |  |  |  | 10,277 |  |  |  |  |  |  |  |  |
Noncontrolling interests |  |  | 16 |  |  |  |  |  |  |  |  |  |  |  | 33 |  |  |  |  |  |  |  |  |
Total equity |  |  | 10,451 |  |  |  |  |  |  |  |  |  |  |  | 10,310 |  |  |  |  |  |  |  |  |
Total liabilities and equity |  | $ | 90,835 |  |  |  |  |  |  |  |  |  |  | $ | 88,551 |  |  |  |  |  |  |  |  |
Interest rate spread (TE) |  |  |  |  |  |  |  |  |  |  | 2.79 | % |  |  |  |  |  |  |  |  |  |  | 2.93 | %
Net interest income (TE) and net interest margin (TE) |  |  |  |  |  |  | 1,729 |  |  |  | 2.98 | % |  |  |  |  |  |  | 1,759 |  |  |  | 3.16 | %
TE adjustment (b) |  |  |  |  |  |  | 18 |  |  |  |  |  |  |  |  |  |  |  | 17 |  |  |  |  |
Net interest income, GAAP basis |  |  |  |  |  | $ | 1,711 |  |  |  |  |  |  |  |  |  |  | $ | 1,742 |  |  |  |  |

(a) | Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.

(b) | Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%.

(c) | For purposes of these computations, nonaccrual loans are included in average loan balances.

(d) | Commercial, financial and agricultural average balances include $94 million and $95 million of assets from commercial credit cards for the nine months ended September 30, 2014, and September 30, 2013, respectively.

(e) | Yield is calculated on the basis of amortized cost.

(f) | Rate calculation excludes basis adjustments related to fair value hedges.

(g) | A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying our matched funds transfer pricing methodology to discontinued operations.

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

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 22

Noninterest Expense

(dollars in millions)

|  | Three months ended |  |  | Nine months ended |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |  |  | 9-30-14 |  |  | 9-30-13 |
Personnel (a) |  | $ | 405 |  |  | $ | 389 |  |  | $ | 414 |  |  | $ | 1,182 |  |  | $ | 1,211 |
Net occupancy |  |  | 66 |  |  |  | 68 |  |  |  | 66 |  |  |  | 198 |  |  |  | 202 |
Computer processing |  |  | 39 |  |  |  | 41 |  |  |  | 38 |  |  |  | 118 |  |  |  | 116 |
Business services and professional fees |  |  | 36 |  |  |  | 41 |  |  |  | 37 |  |  |  | 118 |  |  |  | 109 |
Equipment |  |  | 25 |  |  |  | 24 |  |  |  | 25 |  |  |  | 73 |  |  |  | 78 |
Operating lease expense |  |  | 11 |  |  |  | 10 |  |  |  | 14 |  |  |  | 31 |  |  |  | 37 |
Marketing |  |  | 15 |  |  |  | 13 |  |  |  | 16 |  |  |  | 33 |  |  |  | 33 |
FDIC assessment |  |  | 9 |  |  |  | 6 |  |  |  | 7 |  |  |  | 21 |  |  |  | 23 |
Intangible asset amortization |  |  | 10 |  |  |  | 9 |  |  |  | 12 |  |  |  | 29 |  |  |  | 34 |
Provision (credit) for losses on lending-related commitments |  |  | (2 | ) |  |  | 2 |  |  |  | 3 |  |  |  | (2 | ) |  |  | 11 |
OREO expense, net |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 3 |  |  |  | 5 |
Other expense |  |  | 89 |  |  |  | 85 |  |  |  | 83 |  |  |  | 251 |  |  |  | 249 |
Total noninterest expense |  | $ | 704 |  |  | $ | 689 |  |  | $ | 716 |  |  | $ | 2,055 |  |  | $ | 2,108 |
Average full-time equivalent employees (b) |  |  | 13,905 |  |  |  | 13,867 |  |  |  | 14,555 |  |  |  | 13,942 |  |  |  | 14,980 |

(a) | Additional detail provided in table below.

(b) | The number of average full-time equivalent employees has not been adjusted for discontinued operations.

Personnel Expense

(in millions)

|  | Three months ended |  |  | Nine months ended |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |  |  | 9-30-14 |  |  | 9-30-13 |
Salaries |  | $ | 226 |  |  | $ | 224 |  |  | $ | 222 |  |  | $ | 670 |  |  | $ | 671 |
Technology contract labor, net |  |  | 12 |  |  |  | 14 |  |  |  | 19 |  |  |  | 43 |  |  |  | 56 |
Incentive compensation |  |  | 79 |  |  |  | 81 |  |  |  | 81 |  |  |  | 232 |  |  |  | 231 |
Employee benefits |  |  | 71 |  |  |  | 50 |  |  |  | 78 |  |  |  | 184 |  |  |  | 193 |
Stock-based compensation |  |  | 10 |  |  |  | 10 |  |  |  | 8 |  |  |  | 31 |  |  |  | 27 |
Severance |  |  | 7 |  |  |  | 10 |  |  |  | 6 |  |  |  | 22 |  |  |  | 33 |
Total personnel expense |  | $ | 405 |  |  | $ | 389 |  |  | $ | 414 |  |  | $ | 1,182 |  |  | $ | 1,211 |

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 23

Loan Composition

(dollars in millions)

|  |  |  |  |  |  |  |  |  |  | Percent change 9-30-14 vs. |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |  |  | 6-30-14 |  |  | 9-30-13 |
Commercial, financial and agricultural (a) |  | $ | 26,683 |  |  | $ | 26,327 |  |  | $ | 24,317 |  |  |  | 1.4 | % |  |  | 9.7 | %
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage |  |  | 8,276 |  |  |  | 7,946 |  |  |  | 7,544 |  |  |  | 4.2 |  |  |  | 9.7 |
Construction |  |  | 1,036 |  |  |  | 1,047 |  |  |  | 1,058 |  |  |  | (1.1 | ) |  |  | (2.1 | )
Total commercial real estate loans |  |  | 9,312 |  |  |  | 8,993 |  |  |  | 8,602 |  |  |  | 3.5 |  |  |  | 8.3 |
Commercial lease financing (b) |  |  | 4,135 |  |  |  | 4,241 |  |  |  | 4,550 |  |  |  | (2.5 | ) |  |  | (9.1 | )
Total commercial loans |  |  | 40,130 |  |  |  | 39,561 |  |  |  | 37,469 |  |  |  | 1.4 |  |  |  | 7.1 |
Residential — prime loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate — residential mortgage |  |  | 2,213 |  |  |  | 2,189 |  |  |  | 2,198 |  |  |  | 1.1 |  |  |  | .7 |
Home equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Community Bank |  |  | 10,380 |  |  |  | 10,379 |  |  |  | 10,285 |  |  |  | — |  |  |  | .9 |
Other |  |  | 283 |  |  |  | 300 |  |  |  | 353 |  |  |  | (5.7 | ) |  |  | (19.8 | )
Total home equity loans |  |  | 10,663 |  |  |  | 10,679 |  |  |  | 10,638 |  |  |  | (.1 | ) |  |  | .2 |
Total residential — prime loans |  |  | 12,876 |  |  |  | 12,868 |  |  |  | 12,836 |  |  |  | .1 |  |  |  | .3 |
Consumer other — Key Community Bank |  |  | 1,546 |  |  |  | 1,514 |  |  |  | 1,440 |  |  |  | 2.1 |  |  |  | 7.4 |
Credit cards |  |  | 724 |  |  |  | 718 |  |  |  | 698 |  |  |  | .8 |  |  |  | 3.7 |
Consumer other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marine |  |  | 828 |  |  |  | 888 |  |  |  | 1,083 |  |  |  | (6.8 | ) |  |  | (23.5 | )
Other |  |  | 51 |  |  |  | 51 |  |  |  | 71 |  |  |  | — |  |  |  | (28.2 | )
Total consumer other |  |  | 879 |  |  |  | 939 |  |  |  | 1,154 |  |  |  | (6.4 | ) |  |  | (23.8 | )
Total consumer loans |  |  | 16,025 |  |  |  | 16,039 |  |  |  | 16,128 |  |  |  | (.1 | ) |  |  | (.6 | )
Total loans (c), (d) |  | $ | 56,155 |  |  | $ | 55,600 |  |  | $ | 53,597 |  |  |  | 1.0 | % |  |  | 4.8 | %

Loans Held for Sale Composition

(dollars in millions)

|  |  |  |  |  |  |  |  |  |  | Percent change 9-30-14 vs. |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |  |  | 6-30-14 |  |  | 9-30-13 |
Commercial, financial and agricultural |  | $ | 30 |  |  | $ | 181 |  |  | $ | 68 |  |  |  | (83.4 | )% |  |  | (55.9 | )%
Real estate — commercial mortgage |  |  | 725 |  |  |  | 221 |  |  |  | 608 |  |  |  | 228.1 |  |  |  | 19.2 |
Commercial lease financing |  |  | 10 |  |  |  | 10 |  |  |  | — |  |  |  | — |  |  |  | N/M |
Real estate — residential mortgage |  |  | 19 |  |  |  | 23 |  |  |  | 23 |  |  |  | (17.4 | ) |  |  | (17.4 | )
Total loans held for sale |  | $ | 784 |  |  | $ | 435 |  |  | $ | 699 |  |  |  | 80.2 | % |  |  | 12.2 | %

Summary of Changes in Loans Held for Sale

(in millions)

|  | 3Q14 |  |  | 2Q14 |  |  | 1Q14 |  |  | 4Q13 |  |  | 3Q13 |
Balance at beginning of period |  | $ | 435 |  |  | $ | 401 |  |  | $ | 611 |  |  | $ | 699 |  |  | $ | 402 |
New originations |  |  | 1,593 |  |  |  | 978 |  |  |  | 645 |  |  |  | 1,669 |  |  |  | 1,467 |
Transfers from (to) held to maturity, net |  |  | — |  |  |  | (8 | ) |  |  | 3 |  |  |  | 1 |  |  |  | 15 |
Loan sales |  |  | (1,243 | ) |  |  | (934 | ) |  |  | (596 | ) |  |  | (1,750 | ) |  |  | (1,181 | )
Loan draws (payments), net |  |  | (1 | ) |  |  | (2 | ) |  |  | (262 | ) |  |  | (8 | ) |  |  | (4 | )
Balance at end of period |  | $ | 784 |  |  | $ | 435 |  |  | $ | 401 |  |  | $ | 611 |  |  | $ | 699 |

(a) | Loan balances include $90 million, $94 million, and $96 million of commercial credit card balances at September 30, 2014, June 30, 2014, and September 30, 2013, respectively.

(b) | Commercial lease financing includes receivables of $367 million and $375 million held as collateral for a secured borrowing at September 30, 2014, and June 30, 2014, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c) | At September 30, 2014, total loans include purchased loans of $143 million, of which $14 million were purchased credit impaired. At June 30, 2014, total loans include purchased loans of $151 million, of which $15 million were purchased credit impaired. At September 30, 2013, total loans include purchased loans of $176 million, of which $18 million were purchased credit impaired.

(d) | Total loans exclude loans of $2.4 billion at September 30, 2014, $4.2 billion at June 30, 2014, and $4.7 billion at September 30, 2013, related to the discontinued operations of the education lending business.

N/M = Not Meaningful

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 24

Exit Loan Portfolio From Continuing Operations

(in millions)

|  | Balance Outstanding |  |  | Change 9-30-14 vs. 6-30-14 |  |  | Net Loan Charge-offs |  |  | Balance on Nonperforming Status |
|  | 9-30-14 |  |  | 6-30-14 |  |  |  | 3Q14(c) |  |  | 2Q14(c) |  |  | 9-30-14 |  |  | 6-30-14 |
Residential properties — homebuilder |  | $ | 11 |  |  | $ | 19 |  |  | $ | (8 | ) |  | $ | 1 |  |  |  | — |  |  | $ | 10 |  |  | $ | 7 |
Marine and RV floor plan |  |  | 7 |  |  |  | 23 |  |  |  | (16 | ) |  |  | — |  |  |  | — |  |  |  | 5 |  |  |  | 6 |
Commercial lease financing (a) |  |  | 1,046 |  |  |  | 1,154 |  |  |  | (108 | ) |  |  | (1 | ) |  | $ | (5 | ) |  |  | 1 |  |  |  | 3 |
Total commercial loans |  |  | 1,064 |  |  |  | 1,196 |  |  |  | (132 | ) |  |  | — |  |  |  | (5 | ) |  |  | 16 |  |  |  | 16 |
Home equity — Other |  |  | 283 |  |  |  | 300 |  |  |  | (17 | ) |  |  | 1 |  |  |  | 1 |  |  |  | 10 |  |  |  | 11 |
Marine |  |  | 828 |  |  |  | 888 |  |  |  | (60 | ) |  |  | 2 |  |  |  | 5 |  |  |  | 16 |  |  |  | 15 |
RV and other consumer |  |  | 57 |  |  |  | 61 |  |  |  | (4 | ) |  |  | 1 |  |  |  | (1 | ) |  |  | 1 |  |  |  | 1 |
Total consumer loans |  |  | 1,168 |  |  |  | 1,249 |  |  |  | (81 | ) |  |  | 4 |  |  |  | 5 |  |  |  | 27 |  |  |  | 27 |
Total exit loans in loan portfolio |  | $ | 2,232 |  |  | $ | 2,445 |  |  | $ | (213 | ) |  | $ | 4 |  |  | $ | — |  |  | $ | 43 |  |  | $ | 43 |
Discontinued operations — education lending business (not included in exit loans above) (b) |  | $ | 2,375 |  |  | $ | 4,162 |  |  | $ | (1,787 | ) |  | $ | 7 |  |  | $ | 7 |  |  | $ | 9 |  |  | $ | 19 |

(a) | Includes (1) the business aviation, commercial vehicle, office products, construction, and industrial leases; (2) Canadian lease financing portfolios; (3) European lease financing portfolios; and (4) all remaining balances related to lease in, lease out; sale in, lease out; service contract leases; and qualified technological equipment leases.

(b) | June 30, 2014, balance includes loans in Key’s consolidated education loan securitization trusts.

(c) | Credit amounts indicate recoveries exceeded charge-offs.

Asset Quality Statistics From Continuing Operations

(dollars in millions)

|  | 3Q14 |  |  | 2Q14 |  |  | 1Q14 |  |  | 4Q13 |  |  | 3Q13 |
Net loan charge-offs |  | $ | 31 |  |  | $ | 30 |  |  | $ | 20 |  |  | $ | 37 |  |  | $ | 37 |
Net loan charge-offs to average total loans |  |  | .22 | % |  |  | .22 | % |  |  | .15 | % |  |  | .27 | % |  |  | .28 | %
Allowance for loan and lease losses |  | $ | 804 |  |  | $ | 814 |  |  | $ | 834 |  |  | $ | 848 |  |  | $ | 868 |
Allowance for credit losses (a) |  |  | 839 |  |  |  | 851 |  |  |  | 869 |  |  |  | 885 |  |  |  | 908 |
Allowance for loan and lease losses to period-end loans |  |  | 1.43 | % |  |  | 1.46 | % |  |  | 1.50 | % |  |  | 1.56 | % |  |  | 1.62 | %
Allowance for credit losses to period-end loans |  |  | 1.49 |  |  |  | 1.53 |  |  |  | 1.57 |  |  |  | 1.63 |  |  |  | 1.69 |
Allowance for loan and lease losses to nonperforming loans |  |  | 200.5 |  |  |  | 205.6 |  |  |  | 185.7 |  |  |  | 166.9 |  |  |  | 160.4 |
Allowance for credit losses to nonperforming loans |  |  | 209.2 |  |  |  | 214.9 |  |  |  | 193.5 |  |  |  | 174.2 |  |  |  | 167.8 |
Nonperforming loans at period end (b) |  | $ | 401 |  |  | $ | 396 |  |  | $ | 449 |  |  | $ | 508 |  |  | $ | 541 |
Nonperforming assets at period end |  |  | 418 |  |  |  | 410 |  |  |  | 469 |  |  |  | 531 |  |  |  | 579 |
Nonperforming loans to period-end portfolio loans |  |  | .71 | % |  |  | .71 | % |  |  | .81 | % |  |  | .93 | % |  |  | 1.01 | %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets |  |  | .74 |  |  |  | .74 |  |  |  | .85 |  |  |  | .97 |  |  |  | 1.08 |

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

(b) | Loan balances exclude $14 million, $15 million, $16 million, $16 million, and $18 million of purchased credit impaired loans at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013, respectively.

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 25

Summary of Loan and Lease Loss Experience From Continuing Operations

(dollars in millions)

|  | Three months ended |  |  | Nine months ended |
|  | 9-30-14 |  |  | 6-30-14 |  |  | 9-30-13 |  |  | 9-30-14 |  |  | 9-30-13 |
Average loans outstanding |  | $ | 55,796 |  |  | $ | 55,611 |  |  | $ | 53,271 |  |  | $ | 55,388 |  |  | $ | 52,867 |
Allowance for loan and lease losses at beginning of period |  | $ | 814 |  |  | $ | 834 |  |  | $ | 876 |  |  | $ | 848 |  |  | $ | 888 |
Loans charged off: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  |  | 12 |  |  |  | 11 |  |  |  | 15 |  |  |  | 35 |  |  |  | 44 |
Real estate — commercial mortgage |  |  | — |  |  |  | 1 |  |  |  | 2 |  |  |  | 3 |  |  |  | 18 |
Real estate — construction |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | 2 |
Total commercial real estate loans |  |  | 2 |  |  |  | 1 |  |  |  | 2 |  |  |  | 7 |  |  |  | 20 |
Commercial lease financing |  |  | 1 |  |  |  | 2 |  |  |  | 17 |  |  |  | 6 |  |  |  | 25 |
Total commercial loans |  |  | 15 |  |  |  | 14 |  |  |  | 34 |  |  |  | 48 |  |  |  | 89 |
Real estate — residential mortgage |  |  | 2 |  |  |  | 2 |  |  |  | 3 |  |  |  | 7 |  |  |  | 13 |
Home equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Community Bank |  |  | 9 |  |  |  | 10 |  |  |  | 14 |  |  |  | 29 |  |  |  | 50 |
Other |  |  | 2 |  |  |  | 3 |  |  |  | 4 |  |  |  | 8 |  |  |  | 16 |
Total home equity loans |  |  | 11 |  |  |  | 13 |  |  |  | 18 |  |  |  | 37 |  |  |  | 66 |
Consumer other — Key Community Bank |  |  | 7 |  |  |  | 8 |  |  |  | 8 |  |  |  | 23 |  |  |  | 24 |
Credit cards |  |  | 9 |  |  |  | 12 |  |  |  | 9 |  |  |  | 27 |  |  |  | 25 |
Consumer other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marine |  |  | 4 |  |  |  | 7 |  |  |  | 5 |  |  |  | 18 |  |  |  | 22 |
Other |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  | 2 |  |  |  | 3 |
Total consumer other |  |  | 5 |  |  |  | 7 |  |  |  | 6 |  |  |  | 20 |  |  |  | 25 |
Total consumer loans |  |  | 34 |  |  |  | 42 |  |  |  | 44 |  |  |  | 114 |  |  |  | 153 |
Total loans charged off |  |  | 49 |  |  |  | 56 |  |  |  | 78 |  |  |  | 162 |  |  |  | 242 |
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  |  | 6 |  |  |  | 11 |  |  |  | 11 |  |  |  | 27 |  |  |  | 30 |
Real estate — commercial mortgage |  |  | 2 |  |  |  | 1 |  |  |  | 10 |  |  |  | 4 |  |  |  | 20 |
Real estate — construction |  |  | 1 |  |  |  | 1 |  |  |  | 6 |  |  |  | 16 |  |  |  | 14 |
Total commercial real estate loans |  |  | 3 |  |  |  | 2 |  |  |  | 16 |  |  |  | 20 |  |  |  | 34 |
Commercial lease financing |  |  | 2 |  |  |  | 4 |  |  |  | 2 |  |  |  | 8 |  |  |  | 10 |
Total commercial loans |  |  | 11 |  |  |  | 17 |  |  |  | 29 |  |  |  | 55 |  |  |  | 74 |
Real estate — residential mortgage |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | 2 |  |  |  | 1 |
Home equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Community Bank |  |  | 3 |  |  |  | 1 |  |  |  | 2 |  |  |  | 7 |  |  |  | 8 |
Other |  |  | 1 |  |  |  | 2 |  |  |  | 2 |  |  |  | 4 |  |  |  | 5 |
Total home equity loans |  |  | 4 |  |  |  | 3 |  |  |  | 4 |  |  |  | 11 |  |  |  | 13 |
Consumer other — Key Community Bank |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 4 |  |  |  | 5 |
Credit cards |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 3 |
Consumer other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marine |  |  | 2 |  |  |  | 2 |  |  |  | 4 |  |  |  | 7 |  |  |  | 13 |
Other |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 2 |
Total consumer other |  |  | 2 |  |  |  | 3 |  |  |  | 5 |  |  |  | 8 |  |  |  | 15 |
Total consumer loans |  |  | 7 |  |  |  | 9 |  |  |  | 12 |  |  |  | 26 |  |  |  | 37 |
Total recoveries |  |  | 18 |  |  |  | 26 |  |  |  | 41 |  |  |  | 81 |  |  |  | 111 |
Net loan charge-offs |  |  | (31 | ) |  |  | (30 | ) |  |  | (37 | ) |  |  | (81 | ) |  |  | (131 | )
Provision (credit) for loan and lease losses |  |  | 21 |  |  |  | 10 |  |  |  | 28 |  |  |  | 37 |  |  |  | 111 |
Foreign currency translation adjustment |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |
Allowance for loan and lease losses at end of period |  | $ | 804 |  |  | $ | 814 |  |  | $ | 868 |  |  | $ | 804 |  |  | $ | 868 |
Liability for credit losses on lending-related commitments at beginning of period |  | $ | 37 |  |  | $ | 35 |  |  | $ | 37 |  |  | $ | 37 |  |  | $ | 29 |
Provision (credit) for losses on lending-related commitments |  |  | (2 | ) |  |  | 2 |  |  |  | 3 |  |  |  | (2 | ) |  |  | 11 |
Liability for credit losses on lending-related commitments at end of period (a) |  | $ | 35 |  |  | $ | 37 |  |  | $ | 40 |  |  | $ | 35 |  |  | $ | 40 |
Total allowance for credit losses at end of period |  | $ | 839 |  |  | $ | 851 |  |  | $ | 908 |  |  | $ | 839 |  |  | $ | 908 |
Net loan charge-offs to average total loans |  |  | .22 | % |  |  | .22 | % |  |  | .28 | % |  |  | .20 | % |  |  | .33 | %
Allowance for loan and lease losses to period-end loans |  |  | 1.43 |  |  |  | 1.46 |  |  |  | 1.62 |  |  |  | 1.43 |  |  |  | 1.62 |
Allowance for credit losses to period-end loans |  |  | 1.49 |  |  |  | 1.53 |  |  |  | 1.69 |  |  |  | 1.49 |  |  |  | 1.69 |
Allowance for loan and lease losses to nonperforming loans |  |  | 200.5 |  |  |  | 205.6 |  |  |  | 160.4 |  |  |  | 200.5 |  |  |  | 160.4 |
Allowance for credit losses to nonperforming loans |  |  | 209.2 |  |  |  | 214.9 |  |  |  | 167.8 |  |  |  | 209.2 |  |  |  | 167.8 |
Discontinued operations — education lending business: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans charged off |  | $ | 10 |  |  | $ | 11 |  |  | $ | 14 |  |  | $ | 34 |  |  | $ | 42 |
Recoveries |  |  | 3 |  |  |  | 4 |  |  |  | 5 |  |  |  | 11 |  |  |  | 14 |
Net loan charge-offs |  | $ | (7 | ) |  | $ | (7 | ) |  | $ | (9 | ) |  | $ | (23 | ) |  | $ | (28 | )

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

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 26

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

(dollars in millions)

|  | 9-30-14 |  |  | 6-30-14 |  |  | 3-31-14 |  |  | 12-31-13 |  |  | 9-30-13 |
Commercial, financial and agricultural |  | $ | 47 |  |  | $ | 37 |  |  | $ | 60 |  |  | $ | 77 |  |  | $ | 102 |
Real estate — commercial mortgage |  |  | 41 |  |  |  | 38 |  |  |  | 37 |  |  |  | 37 |  |  |  | 58 |
Real estate — construction |  |  | 14 |  |  |  | 9 |  |  |  | 11 |  |  |  | 14 |  |  |  | 17 |
Total commercial real estate loans |  |  | 55 |  |  |  | 47 |  |  |  | 48 |  |  |  | 51 |  |  |  | 75 |
Commercial lease financing |  |  | 14 |  |  |  | 15 |  |  |  | 18 |  |  |  | 19 |  |  |  | 22 |
Total commercial loans |  |  | 116 |  |  |  | 99 |  |  |  | 126 |  |  |  | 147 |  |  |  | 199 |
Real estate — residential mortgage |  |  | 81 |  |  |  | 89 |  |  |  | 105 |  |  |  | 107 |  |  |  | 98 |
Home equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Key Community Bank |  |  | 174 |  |  |  | 178 |  |  |  | 188 |  |  |  | 205 |  |  |  | 198 |
Other |  |  | 10 |  |  |  | 11 |  |  |  | 11 |  |  |  | 15 |  |  |  | 13 |
Total home equity loans |  |  | 184 |  |  |  | 189 |  |  |  | 199 |  |  |  | 220 |  |  |  | 211 |
Consumer other — Key Community Bank |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | 3 |  |  |  | 2 |
Credit cards |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 4 |  |  |  | 4 |
Consumer other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marine |  |  | 16 |  |  |  | 15 |  |  |  | 15 |  |  |  | 26 |  |  |  | 25 |
Other |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 2 |
Total consumer other |  |  | 17 |  |  |  | 16 |  |  |  | 16 |  |  |  | 27 |  |  |  | 27 |
Total consumer loans |  |  | 285 |  |  |  | 297 |  |  |  | 323 |  |  |  | 361 |  |  |  | 342 |
Total nonperforming loans (a) |  |  | 401 |  |  |  | 396 |  |  |  | 449 |  |  |  | 508 |  |  |  | 541 |
Nonperforming loans held for sale |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 13 |
OREO |  |  | 16 |  |  |  | 12 |  |  |  | 12 |  |  |  | 15 |  |  |  | 15 |
Other nonperforming assets |  |  | 1 |  |  |  | 1 |  |  |  | 7 |  |  |  | 7 |  |  |  | 10 |
Total nonperforming assets |  | $ | 418 |  |  | $ | 410 |  |  | $ | 469 |  |  | $ | 531 |  |  | $ | 579 |
Accruing loans past due 90 days or more |  | $ | 71 |  |  | $ | 83 |  |  | $ | 89 |  |  | $ | 71 |  |  | $ | 90 |
Accruing loans past due 30 through 89 days |  |  | 340 |  |  |  | 274 |  |  |  | 267 |  |  |  | 318 |  |  |  | 288 |
Restructured loans — accruing and nonaccruing (b) |  |  | 264 |  |  |  | 266 |  |  |  | 294 |  |  |  | 338 |  |  |  | 349 |
Restructured loans included in nonperforming loans (b) |  |  | 136 |  |  |  | 142 |  |  |  | 178 |  |  |  | 214 |  |  |  | 228 |
Nonperforming assets from discontinued operations — education lending business |  |  | 9 |  |  |  | 19 |  |  |  | 20 |  |  |  | 25 |  |  |  | 23 |
Nonperforming loans to period-end portfolio loans |  |  | .71 | % |  |  | .71 | % |  |  | .81 | % |  |  | .93 | % |  |  | 1.01 | %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets |  |  | .74 |  |  |  | .74 |  |  |  | .85 |  |  |  | .97 |  |  |  | 1.08 |

(a) | Loan balances exclude $14 million, $15 million, $16 million, $16 million, and $18 million of purchased credit impaired loans at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013, respectively.

(b) | Restructured loans (i.e., troubled debt restructurings) are those for which Key, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 27

Summary of Changes in Nonperforming Loans From Continuing Operations

(in millions)

|  | 3Q14 |  |  | 2Q14 |  |  | 1Q14 |  |  | 4Q13 |  |  | 3Q13 |
Balance at beginning of period |  | $ | 396 |  |  | $ | 449 |  |  | $ | 508 |  |  | $ | 541 |  |  | $ | 652 |
Loans placed on nonaccrual status |  |  | 109 |  |  |  | 79 |  |  |  | 98 |  |  |  | 129 |  |  |  | 161 |
Charge-offs |  |  | (49 | ) |  |  | (56 | ) |  |  | (57 | ) |  |  | (66 | ) |  |  | (78 | )
Loans sold |  |  | — |  |  |  | (21 | ) |  |  | (3 | ) |  |  | (19 | ) |  |  | (61 | )
Payments |  |  | (13 | ) |  |  | (17 | ) |  |  | (21 | ) |  |  | (46 | ) |  |  | (43 | )
Transfers to OREO |  |  | (7 | ) |  |  | (4 | ) |  |  | (3 | ) |  |  | (5 | ) |  |  | (2 | )
Loans returned to accrual status |  |  | (35 | ) |  |  | (34 | ) |  |  | (73 | ) |  |  | (26 | ) |  |  | (88 | )
Balance at end of period (a) |  | $ | 401 |  |  | $ | 396 |  |  | $ | 449 |  |  | $ | 508 |  |  | $ | 541 |

(a) | Loan balances exclude $14 million, $15 million, $16 million, $16 million, and $18 million of purchased credit impaired loans at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013, respectively.

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

(in millions)

|  | 3Q14 |  |  | 2Q14 |  |  | 1Q14 |  |  | 4Q13 |  |  | 3Q13 |
Balance at beginning of period |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 13 |  |  | $ | 14 |
Net advances / (payments) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | (1 | )
Loans sold |  |  | (2 | ) |  |  | — |  |  |  | — |  |  |  | (11 | ) |  |  | — |
Valuation adjustments |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Balance at end of period |  |  | — |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 13 |

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

(in millions)

|  | 3Q14 |  |  | 2Q14 |  |  | 1Q14 |  |  | 4Q13 |  |  | 3Q13 |
Balance at beginning of period |  | $ | 12 |  |  | $ | 12 |  |  | $ | 15 |  |  | $ | 15 |  |  | $ | 18 |
Properties acquired — nonperforming loans |  |  | 7 |  |  |  | 4 |  |  |  | 3 |  |  |  | 5 |  |  |  | 2 |
Valuation adjustments |  |  | (1 | ) |  |  | (1 | ) |  |  | (1 | ) |  |  | — |  |  |  | (1 | )
Properties sold |  |  | (2 | ) |  |  | (3 | ) |  |  | (5 | ) |  |  | (5 | ) |  |  | (4 | )
Balance at end of period |  | $ | 16 |  |  | $ | 12 |  |  | $ | 12 |  |  | $ | 15 |  |  | $ | 15 |

KeyCorp Reports Third Quarter 2014 Profit

October 15, 2014

Page 28

Line of Business Results

(dollars in millions)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Percent change 3Q14 vs. |
|  | 3Q14 |  |  | 2Q14 |  |  | 1Q14 |  |  | 4Q13 |  |  | 3Q13 |  |  | 2Q14 |  |  | 3Q13 |
Key Community Bank |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Summary of operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue (TE) |  | $ | 559 |  |  | $ | 554 |  |  | $ | 546 |  |  | $ | 567 |  |  | $ | 584 |  |  |  | .9 | % |  |  | (4.3 | )%
Provision (credit) for loan and lease losses |  |  | 31 |  |  |  | 23 |  |  |  | 9 |  |  |  | 32 |  |  |  | 24 |  |  |  | 34.8 |  |  |  | 29.2 |
Noninterest expense |  |  | 437 |  |  |  | 445 |  |  |  | 440 |  |  |  | 468 |  |  |  | 453 |  |  |  | (1.8 | ) |  |  | (3.5 | )
Net income (loss) attributable to Key |  |  | 57 |  |  |  | 54 |  |  |  | 61 |  |  |  | 42 |  |  |  | 67 |  |  |  | 5.6 |  |  |  | (14.9 | )
Average loans and leases |  |  | 30,103 |  |  |  | 30,034 |  |  |  | 29,797 |  |  |  | 29,597 |  |  |  | 29,498 |  |  |  | .2 |  |  |  | 2.1 |
Average deposits |  |  | 50,302 |  |  |  | 50,230 |  |  |  | 49,910 |  |  |  | 50,493 |  |  |  | 49,732 |  |  |  | .1 |  |  |  | 1.1 |
Net loan charge-offs |  |  | 28 |  |  |  | 33 |  |  |  | 28 |  |  |  | 31 |  |  |  | 27 |  |  |  | (15.2 | ) |  |  | 3.7 |
Net loan charge-offs to average total loans |  |  | .37 | % |  |  | .44 | % |  |  | .38 | % |  |  | .42 | % |  |  | .36 | % |  |  | N/A |  |  |  | N/A |
Nonperforming assets at period end |  | $ | 338 |  |  | $ | 331 |  |  | $ | 357 |  |  | $ | 396 |  |  | $ | 383 |  |  |  | 2.1 |  |  |  | (11.7 | )
Return on average allocated equity |  |  | 8.45 | % |  |  | 7.97 | % |  |  | 8.83 | % |  |  | 5.78 | % |  |  | 9.02 | % |  |  | N/A |  |  |  | N/A |
Average full-time equivalent employees |  |  | 7,573 |  |  |  | 7,569 |  |  |  | 7,698 |  |  |  | 7,845 |  |  |  | 8,029 |  |  |  | .1 |  |  |  | (5.7 | )
Key Corporate Bank |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Summary of operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue (TE) |  | $ | 395 |  |  | $ | 390 |  |  | $ | 386 |  |  | $ | 405 |  |  | $ | 379 |  |  |  | 1.3 | % |  |  | 4.2 | %
Provision (credit) for loan and lease losses |  |  | (5 | ) |  |  | — |  |  |  | (1 | ) |  |  | (10 | ) |  |  | 12 |  |  |  | N/M |  |  |  | N/M |
Noninterest expense |  |  | 212 |  |  |  | 203 |  |  |  | 194 |  |  |  | 210 |  |  |  | 203 |  |  |  | 4.4 |  |  |  | 4.4 |
Net income (loss) attributable to Key |  |  | 119 |  |  |  | 119 |  |  |  | 122 |  |  |  | 133 |  |  |  | 106 |  |  |  | — |  |  |  | 12.3 |
Average loans and leases |  |  | 22,700 |  |  |  | 22,353 |  |  |  | 21,440 |  |  |  | 20,334 |  |  |  | 19,946 |  |  |  | 1.6 |  |  |  | 13.8 |
Average loans held for sale |  |  | 481 |  |  |  | 429 |  |  |  | 429 |  |  |  | 668 |  |  |  | 422 |  |  |  | 12.1 |  |  |  | 14.0 |
Average deposits |  |  | 17,310 |  |  |  | 16,042 |  |  |  | 15,714 |  |  |  | 17,286 |  |  |  | 16,044 |  |  |  | 7.9 |  |  |  | 7.9 |
Net loan charge-offs |  |  | — |  |  |  | (2 | ) |  |  | (14 | ) |  |  | 2 |  |  |  | 6 |  |  |  | N/M |  |  |  | N/M |
Net loan charge-offs to average total loans |  |  | — |  |  |  | (.04 | )% |  |  | (.26 | )% |  |  | .04 | % |  |  | .12 | % |  |  | N/A |  |  |  | N/A |
Nonperforming assets at period end |  | $ | 20 |  |  | $ | 22 |  |  | $ | 53 |  |  | $ | 55 |  |  | $ | 111 |  |  |  | (9.1 | ) |  |  | (82.0 | )
Return on average allocated equity |  |  | 29.71 | % |  |  | 33.45 | % |  |  | 34.12 | % |  |  | 34.15 | % |  |  | 26.89 | % |  |  | N/A |  |  |  | N/A |
Average full-time equivalent employees |  |  | 1,945 |  |  |  | 1,888 |  |  |  | 1,866 |  |  |  | 1,842 |  |  |  | 1,891 |  |  |  | 3.0 |  |  |  | 2.9 |

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