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Business Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segment Reporting
25. Business Segment Reporting

The following is a description of the segments and their primary businesses at December 31, 2023.

Consumer Bank

The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint as well as healthcare professionals nationally through our Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, mortgage and home equity, student loan refinancing, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist institutional, non-profit, and high-net-worth clients with their banking, trust, portfolio management, charitable giving, and related needs.

Commercial Bank

The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate bank focused principally on serving the borrowing, cash management, and capital markets needs of middle market clients within Key’s 15-state branch footprint. It is also a significant, national, commercial real estate lender and third-party servicer of commercial mortgage loans and a special servicer of CMBS. The Institutional operating segment operates nationally in providing lending, equipment financing, and banking products and services to large corporate and institutional clients. The industry coverage and product teams have established expertise in the following sectors: Consumer, Energy, Healthcare, Industrial, Public Sector, Real Estate, and Technology. The operating segment includes the KBCM platform which provides a broad suite of capital markets products and services including syndicated finance, debt and equity capital markets, derivatives, foreign exchange, financial advisory, and public finance. Additionally, KBCM provides fixed income and equity sales and trading services to investor clients.

Other

Other includes various corporate treasury activities such as management of our investment securities portfolio, long-term debt, short-term liquidity and funding activities, and balance sheet risk management, our principal investing unit, and various exit portfolios as well as reconciling items, which primarily represent the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also include intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

The table on the following page shows selected financial data for our major business segments for the years ended December 31, 2023, 2022, and 2021.

The information was derived from the internal financial reporting system that we use to monitor and manage our financial performance. GAAP guides financial accounting, but there is no authoritative guidance for “management accounting” — the way we use our judgment and experience to make reporting decisions. Consequently, the line of business results we report may not be comparable to line of business results presented by other companies.

The selected financial data is based on internal accounting policies designed to compile results on a consistent basis and in a manner that reflects the underlying economics of the businesses. In accordance with our policies:
 
•Net interest income is determined by assigning a standard cost for funds used or a standard credit for funds provided based on their assumed maturity, prepayment, and/or repricing characteristics.
•Indirect expenses, such as computer servicing costs and corporate overhead, are allocated based on assumptions regarding the extent that each line of business actually uses the services.
•The consolidated provision for credit losses is allocated among the lines of business primarily based on their actual net loan charge-offs, adjusted periodically for loan growth and changes in risk profile. The amount of the consolidated provision is based on the methodology that we use to estimate our consolidated ALLL. This methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses.”
•Capital is assigned to each line of business based on economic equity.
 
Developing and applying the methodologies that we use to allocate items among our lines of business is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocation drivers, changes in the risk profile of a particular business, or changes in our organizational structure.
Year ended December 31,
Consumer BankCommercial Bank
Dollars in millions202320222021202320222021
SUMMARY OF OPERATIONS
Net interest income (TE)
$2,276 $2,409 $2,361 $1,811 $1,863 $1,650 
Noninterest income
944 995 1,068 1,422 1,600 1,990 
Total revenue (TE) (a)
3,220 3,404 3,429 3,233 3,463 3,640 
Provision for credit losses
111 193 (118)379 317 (279)
Depreciation and amortization expense
106 87 84 99 113 134 
Other noninterest expense
2,677 2,644 2,321 1,703 1,620 1,732 
Income (loss) from continuing operations before income taxes (TE)
326 480 1,142 1,052 1,413 2,053 
Allocated income taxes (benefit) and TE adjustments
78 115 274 213 269 412 
Income (loss) from continuing operations
248 365 868 839 1,144 1,641 
Income (loss) from discontinued operations, net of taxes
— — — — — — 
Net income (loss)
248 365 868 839 1,144 1,641 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — 
Net income (loss) attributable to Key
$248 $365 $868 $839 $1,144 $1,641 
AVERAGE BALANCES (b)
     
Loans and leases
$42,408 $41,315 $39,422 $75,143 $69,549 $60,486 
Total assets (a)
45,232 44,414 42,656 84,895 80,068 70,051 
Deposits
83,964 90,132 88,474 53,874 54,672 55,598 
OTHER FINANCIAL DATA
Expenditures for additions to long-lived assets (a), (b)
$72 $52 $39 $3 $4 $12 
Net loan charge-offs (b)
133 83 126 111 84 81 
Return on average allocated equity (b)
6.92 %10.36 %24.31 %8.14 %12.57 %19.21 %
Return on average allocated equity
6.92 10.36 24.31 8.14 12.57 19.21 
Average full-time equivalent employees (c)
7,773 8,101 8,043 2,484 2,466 2,384 
Year ended December 31,OtherKey
Dollars in millions202320222021202320222021
SUMMARY OF OPERATIONS
Net interest income (TE)$(144)$282 $87 $3,943 $4,554 $4,098 
Noninterest income104 123 136 2,470 2,718 3,194 
Total revenue (TE) (a)
(40)405 223 6,413 7,272 7,292 
Provision for credit losses(1)(8)(21)489 502 (418)
Depreciation and amortization expense27 71 80 232 271 298 
Other noninterest expense122 (125)78 4,502 4,139 4,131 
Income (loss) from continuing operations before income taxes (TE)(188)467 86 1,190 2,360 3,281 
Allocated income taxes (benefit) and TE adjustments(65)65 (17)226 449 669 
Income (loss) from continuing operations(123)402 103 964 1,911 2,612 
Income (loss) from discontinued operations, net of taxes3 6 13 3 6 13 
Net income (loss)(120)408 116 967 1,917 2,625 
Less: Net income (loss) attributable to noncontrolling interests— — — — — — 
Net income (loss) attributable to Key$(120)$408 $116 $967 $1,917 $2,625 
AVERAGE BALANCES (b)
Loans and leases$453 $438 $361 $118,004 $111,302 $100,269 
Total assets (a)
61,500 61,404 66,212 191,627 185,886 178,919 
Deposits6,221 2,058 963 144,059 146,862 145,035 
OTHER FINANCIAL DATA
Expenditures for additions to long-lived assets (a), (b)
$118 $198 $63 $193 $254 $114 
Net loan charge-offs (b)
— (6)(23)244 161 184 
Return on average allocated equity (b)
1,025.00 %19.12 %1.85 %6.94 %12.97 %14.79 %
Return on average allocated equity1,000.00 19.40 2.09 6.97 13.01 14.86 
Average full-time equivalent employees (c)
7,435 7,094 6,547 17,692 17,661 16,974 
(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.
(b)From continuing operations.
(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.