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

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

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

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


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

    Emerging growth company ☐

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



Item 2.02     Results of Operations and Financial Condition.

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

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

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



Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

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

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

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

99.3    Financial Statements.

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


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


EX-99.1 2 a2q26earningsrelease.htm EX-99.1 Document

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


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

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

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

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

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


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

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

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

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

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

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

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


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 2
Selected Financial Highlights
Dollars in millions, except per share data Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Income (loss) from continuing operations attributable to Key common shareholders $ 472  $ 486  $ 387  (2.9) % 22.0%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
 0.44  0.44  0.35  —  25.7
Book value at period end 16.19  16.13  15.32  0.4  5.7 
Return on average tangible common equity from continuing operations (a)
12.89  % 13.02  % 11.09  % (13) bps 180 bps
Return on average total assets from continuing operations 1.08  1.14  .91  (6) 17
Common Equity Tier 1 ratio (b)
11.2  11.4  11.7  (20) (50)
Net interest margin (TE) from continuing operations 2.89  2.87  2.66  2  23 
(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)June 30, 2026 ratio is estimated.
TE = Taxable Equivalent

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millions Change 2Q26 vs.
  2Q26 1Q26 2Q25 1Q26 2Q25
Net interest income (TE) (a)
$ 1,258  $ 1,230  $ 1,150  2.3  % 9.4  %
Noninterest income 706  723  690  (2.4) 2.3
Total revenue (TE) $ 1,964  $ 1,953  $ 1,840  0.6  % 6.7  %
(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
TE = Taxable Equivalent

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

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


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 3
Noninterest Income
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Trust and investment services income $ 159  $ 157  $ 146  1.3  % 8.9  %
Investment banking and debt placement fees 169  197  178  (14.2) (5.1)
Cards and payments income 94  86  85  9.3  10.6 
Service charges on deposit accounts 77  77  73  —  5.5 
Corporate services income 80  71  76  12.7  5.3 
Commercial mortgage servicing fees 49  62  70  (21.0) (30.0)
Corporate-owned life insurance income 33  34  32  (2.9) 3.1 
Consumer mortgage income 17  13  15  30.8  13.3 
Operating lease income and other leasing gains 10  8  14  25.0  (28.6)
Other income 15  18  1  (16.7) N/M
Net securities gains (losses) 3  —  —  N/M N/M
Total noninterest income $ 706  $ 723  $ 690  (2.4) % 2.3%
N/M = Not Meaningful

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

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

Noninterest Expense
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Personnel expense $ 786  $ 743  $ 705  5.8  % 11.5  %
Net occupancy 68  68  69  —  (1.4)
Computer processing 108  111  107  (2.7) 0.9 
Business services and professional fees 46  36  48  27.8  (4.2)
Equipment 22  19  21  15.8  4.8 
Operating lease expense 7  7  10  —  (30.0)
Marketing 22  18  24  22.2  (8.3)
Other expense 158  179  170  (11.7) (7.1)
Total noninterest expense $ 1,217  $ 1,181  $ 1,154  3.0  % 5.5  %
    
Compared to the second quarter of 2025, noninterest expense increased by $63 million. The increase was predominantly driven by an $81 million increase in personnel expense primarily related to employee benefits, incentive compensation associated with noninterest income growth, and continued investments in people.

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


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

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Commercial and industrial (a)
$ 62,134  $ 59,149  $ 55,604  5.0  % 11.7  %
Other commercial loans 18,844  18,918  18,708  (0.4) 0.7 
Total consumer loans 29,094  29,670  31,403  (1.9) (7.4)
Total loans $ 110,072  $ 107,737  $ 105,715  2.2  % 4.1  %
(a)Commercial and industrial average loan balances include $209 million, $205 million, and $218 million of assets from commercial credit cards at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

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

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

Average Deposits
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Non-time deposits $ 135,828  $ 135,522  $ 131,845  0.2  % 3.0  %
Time deposits 11,749  11,777  15,601  (0.2) (24.7)
Total deposits $ 147,577  $ 147,299  $ 147,446  0.2  % 0.1  %
Cost of total deposits 1.63  % 1.65  % 1.99  % (2) bps (36) bps


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

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





KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 5
ASSET QUALITY
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Net loan charge-offs $ 115  $ 101  $ 102  13.9  % 12.7  %
Net loan charge-offs to average total loans 0.42  % 0.38  % 0.39  % 4 bps 3 bps
Nonperforming loans at period end $ 809  $ 682  $ 696  18.6  % 16.2  %
Nonperforming loans to period-end portfolio loans 0.73  % 0.62  % 0.65  % 11 bps 8 bps
Nonperforming assets at period end $ 818  $ 692  $ 707  18.2  % 15.7  %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets 0.74  % 0.63  % 0.66  % 11 bps 8 bps
Allowance for loan and lease losses $ 1,445  $ 1,449  $ 1,446  (0.3) % (0.1) %
Allowance for credit losses 1,722  1,745  1,743  (1.3) % (1.2) %
Allowance for credit losses to period-end loans 1.56  % 1.60  % 1.64  % (4) bps (8) bps
Provision for credit losses $ 92  $ 106  $ 138  (13.2) % (33.3) %
Allowance for loan and lease losses to nonperforming loans 179  % 212  % 208  % N/M N/M
Allowance for credit losses to nonperforming loans 213  256  250  N/M N/M
N/M = Not Meaningful

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

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

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

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2026.
Capital Ratios
6/30/2026 3/31/2026 6/30/2025
Common Equity Tier 1 (a)
11.2  % 11.4  % 11.7  %
Tier 1 risk-based capital (a)
12.8  13.0  13.4 
Total risk-based capital (a)
14.8  15.2  15.7 
Tangible common equity to tangible assets (b)
7.7  8.0  7.8 
Leverage (a)
10.3  10.5  10.3 
(a)June 30, 2026 ratio is estimated.
(b)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

Key's regulatory capital position remained strong in the second quarter of 2026. As shown in the preceding table, at June 30, 2026, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.2% and 12.8%, respectively.



KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 6
Summary of Changes in Common Shares Outstanding
In thousands Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Shares outstanding at beginning of period 1,087,293  1,102,401  1,111,986  (1.4) % (2.2) %
Share repurchases (15,531) (17,969) —  (13.6) N/M
Shares issued under employee compensation plans (net of cancellations and returns) 273  2,861  467  (90.5) (41.5)
Shares outstanding at end of period 1,072,035  1,087,293  1,112,453  (1.4) % (3.6) %
N/M = Not Meaningful

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

LINE OF BUSINESS RESULTS

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

Major Business Segments
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Revenue from continuing operations (TE)
Consumer Bank $ 1,010  $ 977  $ 966  3.4  % 4.6  %
Commercial Bank 1,108  1,119  1,074  (1.0) 3.2 
Other (a)
(154) (143) (200) (7.7) 23.0
Total $ 1,964  $ 1,953  $ 1,840  0.6  % 6.7  %
Income (loss) from continuing operations attributable to Key
Consumer Bank $ 203  $ 174  $ 165  16.7  % 23.0  %
Commercial Bank 423  452  423  (6.4) — 
Other (a)
(118) (104) (165) (13.5) 28.5
Total $ 508  $ 522  $ 423  (2.7) % 20.1  %
(a)Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represent the unallocated portion of nonearning assets of corporate support functions. Other also includes the residual net impact of our internal funds transfer pricing methodology, which arise from centrally managed interest rate activities and asset-liability repricing differences. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 7
Consumer Bank
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Summary of operations
Net interest income (TE) $ 757  $ 738  $ 731  2.6  % 3.6  %
Noninterest income 253  239  235  5.9  7.7 
Total revenue (TE) 1,010  977  966  3.4  4.6 
Provision for credit losses 26  40  55  (35.0) (52.7)
Noninterest expense 716  708  693  1.1  3.3 
Income (loss) before income taxes (TE) 268  229  218  17.0  22.9 
Allocated income taxes (benefit) and TE adjustments 65  55  53  18.2  22.6 
Net income (loss) attributable to Key $ 203  $ 174  $ 165  16.7  % 23.0  %
Average balances
Loans and leases $ 33,263  $ 33,997  $ 36,138  (2.2) % (8.0) %
Total assets 36,630  37,341  39,156  (1.9) (6.5)
Deposits 87,399  87,796  88,002  (0.5) (0.7)
Assets under management at period end $ 74,204  $ 69,756  $ 64,244  6.4  % 15.5  %
TE = Taxable Equivalent
Additional Consumer Bank Data
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Noninterest income
Trust and investment services income $ 135  $ 130  $ 119  3.8  % 13.4  %
Service charges on deposit accounts 33  34  35  (2.9) (5.7)
Cards and payments income 60  54  60  11.1  — 
Consumer mortgage income 16  13  14  23.1  14.3 
Other noninterest income 9  8  7  12.5  28.6 
Total noninterest income $ 253  $ 239  $ 235  5.9  % 7.7  %
Average deposit balances
Money market deposits $ 36,116  $ 35,920  $ 34,524  0.5  % 4.6  %
Demand deposits 22,861  23,214  22,784  (1.5) 0.3 
Savings deposits 4,238  4,199  4,406  0.9  (3.8)
Time deposits 10,102  10,610  11,907  (4.8) (15.2)
Noninterest-bearing deposits 14,082  13,853  14,381  1.7  (2.1)
Total deposits $ 87,399  $ 87,796  $ 88,002  (0.5) % (0.7) %
Other data
Branches 939  940  943 
Automated teller machines 1,107  1,112  1,166 

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


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

Commercial Bank
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Summary of operations
Net interest income (TE) $ 697  $ 674  $ 649  3.4  % 7.4  %
Noninterest income 411  445  425  (7.6) (3.3)
Total revenue (TE) 1,108  1,119  1,074  (1.0) 3.2 
Provision for credit losses 67  70  84  (4.3) (20.2)
Noninterest expense 503  474  451  6.1  11.5 
Income (loss) before income taxes (TE) 538  575  539  (6.4) (0.2)
Allocated income taxes and TE adjustments 115  123  116  (6.5) (0.9)
Net income (loss) attributable to Key $ 423  $ 452  $ 423  (6.4) % —  %
Average balances
Loans and leases $ 76,238  $ 73,146  $ 69,089  4.2  % 10.3  %
Loans held for sale 936  958  707  (2.3) 32.4 
Total assets 85,793  82,455  78,624  4.0  9.1 
Deposits 58,895  58,929  55,927  (0.1) 5.3 
TE = Taxable Equivalent


Additional Commercial Bank Data
Dollars in millions Change 2Q26 vs.
2Q26 1Q26 2Q25 1Q26 2Q25
Noninterest income
Trust and investment services income $ 24  $ 27  $ 26  (11.1) % (7.7)
Investment banking and debt placement fees 169  198  179  (14.6) (5.6) %
Cards and payments income 29  27  21  7.4  38.1 
Service charges on deposit accounts 44  43  39  2.3  12.8 
Corporate services income 78  70  75  11.4  4.0 
Commercial mortgage servicing fees 49  62  70  (21.0) (30.0)
Operating lease income and other leasing gains 10  8  15  25.0  (33.3)
Other noninterest income 8  10  —  (20.0) N/M
Total noninterest income $ 411  $ 445  $ 425  (7.6) % (3.3) %
N/M = Not Meaningful

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


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

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

KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $191 billion at June 30, 2026.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 10
CONTACTS:
ANALYSTS MEDIA
Troy Gates Susan Donlan
216.689.3244 216.471.3133
Troy_Gates@KeyBank.com Susan_E_Donlan@KeyBank.com
Hannah Lewallen Beth Strauss
216.471.4856 216.471.2787
Hannah_Lewallen@KeyBank.com Beth_A_Strauss@KeyBank.com
Johnny Li
646.551.8917
Johnny_Li@KeyBank.com
INVESTOR RELATIONS: KEY MEDIA NEWSROOM:
www.key.com/ir www.key.com/newsroom
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results, or aspirations. Forward-looking statements, by their nature, are subject to assumptions, risks and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2025 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions, and the impact of changes in the interest rate environment. Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.

A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on July 21, 2026. A replay of the call will be available on our website through July 21, 2027.
For up-to-date company information, media contacts, and facts and figures about Key’s lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****



KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 11



KeyCorp
Second Quarter 2026
Financial Supplement


    



KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 12
Basis of Presentation

Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management
believes it to be helpful in understanding Key’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key’s website (www.key.com/ir).

Forward-Looking Non-GAAP Financial Measures
From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.

Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized”
basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.

Taxable Equivalent
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt loans, and certain lease assets, on a common basis that facilitates comparison of results to peers.

Earnings Per Share Equivalent
Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.




KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 13
Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
6/30/2026 3/31/2026 6/30/2025
Summary of operations
Net interest income (TE) $ 1,258  $ 1,230  $ 1,150 
Noninterest income 706  723  690 
Total revenue (TE)
 1,964  1,953  1,840 
Provision for credit losses 92  106  138 
Noninterest expense 1,217  1,181  1,154 
Income (loss) from continuing operations attributable to Key 508  522  423 
Income (loss) from discontinued operations, net of taxes 1  —  2 
Net income (loss) attributable to Key 509  522  425 
Income (loss) from continuing operations attributable to Key common shareholders 472  486  387 
Income (loss) from discontinued operations, net of taxes 1  —  2 
Net income (loss) attributable to Key common shareholders 473  486  389 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders $ 0.44  $ 0.45  $ 0.35 
Income (loss) from discontinued operations, net of taxes —  —  — 
Net income (loss) attributable to Key common shareholders (a)
0.44  0.45  0.35 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution 0.44  0.44  0.35 
Income (loss) from discontinued operations, net of taxes — assuming dilution —  —  — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
0.44  0.44  0.35 
Cash dividends declared 0.205  0.205  0.205 
Book value at period end 16.19  16.13  15.32 
Tangible book value at period end 13.62  13.60  12.83 
Market price at period end 23.05  20.05  17.42 
Performance ratios
From continuing operations:
Return on average total assets 1.08  % 1.14  % 0.91  %
Return on average common equity 10.85  11.02  9.26 
Return on average tangible common equity (b)
12.89  13.02  11.09 
Net interest margin (TE) 2.89  2.87  2.66 
Cash efficiency ratio (b)
61.9  60.4  62.4 
From consolidated operations:
Return on average total assets 1.08  % 1.14  % 0.91  %
Return on average common equity 10.87  11.02  9.31 
Return on average tangible common equity (b)
12.91  13.02  11.15 
Net interest margin (TE) 2.89  2.87  2.66 
Loan to deposit (c)
73.0  74.6  72.9 
Capital ratios at period end
Key shareholders’ equity to assets 10.3  % 10.6  % 10.5  %
Key common shareholders’ equity to assets 9.1  9.3  9.2 
Tangible common equity to tangible assets (b)
7.7  8.0  7.8 
Common Equity Tier 1 (d)
11.2  11.4  11.7 
Tier 1 risk-based capital (d)
12.8  13.0  13.4 
Total risk-based capital (d)
14.8  15.2  15.7 
Leverage (d)
10.3  10.5  10.3 
Asset quality — from continuing operations
Net loan charge-offs
 $ 115  $ 101  $ 102 
Net loan charge-offs to average loans
 0.42  % 0.38  % 0.39  %
Allowance for loan and lease losses
 $ 1,445  $ 1,449  $ 1,446 
Allowance for credit losses
 1,722  1,745  1,743 
Allowance for loan and lease losses to period-end loans
 1.31  % 1.33  % 1.36  %
Allowance for credit losses to period-end loans
 1.56  1.60  1.64 
Allowance for loan and lease losses to nonperforming loans 179  212  208 
Allowance for credit losses to nonperforming loans 213  256  250 
Nonperforming loans at period-end $ 809  $ 682  $ 696 
Nonperforming assets at period-end 818  692  707 
Nonperforming loans to period-end portfolio loans 0.73  % 0.62  % 0.65  %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets 0.74  0.63  0.66 
Trust assets
Assets under management $ 74,204  $ 69,756  $ 64,244 
Other data
Average full-time equivalent employees
 17,517  17,469  17,105 
Branches
 939  940  943 
Taxable-equivalent adjustment
 $ 8  $ 8  $ 9 
(a)Earnings per share may not foot due to rounding.
(b)The table entitled “GAAP to Non-GAAP Reconciliations” starting on page 15 of this supplement presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.
(d)June 30, 2026, ratio is estimated.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 14
Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Six months ended
6/30/2026 6/30/2025
Summary of operations
Net interest income (TE) $ 2,488  $ 2,255 
Noninterest income 1,429  1,358 
Total revenue (TE) 3,917  3,613 
Provision for credit losses 198  256 
Noninterest expense 2,398  2,285 
Income (loss) from continuing operations attributable to Key 1,030  829 
Income (loss) from discontinued operations, net of taxes 1  1 
Net income (loss) attributable to Key 1,031  830 
Income (loss) from continuing operations attributable to Key common shareholders 958  757 
Income (loss) from discontinued operations, net of taxes 1  1 
Net income (loss) attributable to Key common shareholders 959  758 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders $ 0.89  $ 0.69 
Income (loss) from discontinued operations, net of taxes —  — 
Net income (loss) attributable to Key common shareholders (a)
0.89  0.69 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution 0.88  0.69 
Income (loss) from discontinued operations, net of taxes — assuming dilution —  — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
0.88  0.69 
Cash dividends paid 0.41  0.41 
Performance ratios
From continuing operations:
Return on average total assets 1.11  % 0.90  %
Return on average common equity 10.93  9.28 
Return on average tangible common equity (b)
12.96  11.16 
Net interest margin (TE) 2.88  2.62 
Cash efficiency ratio (b)
61.1  63.0 
From consolidated operations:
Return on average total assets 1.11  % 0.90  %
Return on average common equity 10.95  9.29 
Return on average tangible common equity (b)
12.97  11.18 
Net interest margin (TE) 2.88  2.62 
Asset quality — from continuing operations
Net loan charge-offs $ 216  $ 212 
Net loan charge-offs to average total loans 0.40  % 0.41  %
Other data
Average full-time equivalent employees 17,493  17,047 
Taxable-equivalent adjustment 16  18 
(a)Earnings per share may not foot due to rounding.
(b)The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.



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

The tangible common equity ratio and the return on average tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key’s capital position without regard to the effects of intangible assets and preferred stock. Adjusted return on average tangible common equity excludes significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

The table also shows the computation for pre-provision net revenue and adjusted pre-provision net revenue, which are not formally defined by GAAP. Management believes that eliminating the effects of the provision for credit losses makes it easier to analyze the results by presenting them on a more comparable basis. Further, management believes that adjusting pre-provision net revenue for significant or unusual items that management does not consider indicative of ongoing financial performance provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key’s intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key’s results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis. The adjusted cash efficiency ratio excludes significant or unusual items that management does not consider indicative of ongoing financial performance

Adjusted taxable-equivalent revenue or adjusted revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and selected items. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to those selected items.

Adjusted noninterest income and adjusted noninterest expense are non-GAAP measures in that they exclude significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes these measures provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or “adjusted net income”) and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude significant or unusual items, net of tax, that management does not consider indicative of ongoing financial performance . Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.

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

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

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
Three months ended Six months ended
6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
Net interest income (GAAP) $ 1,250  $ 1,222  $ 1,141  $ 2,472  $ 2,237 
Add: Taxable-equivalent adjustment 8  8  9  16  18 
Net interest income TE (non-GAAP) (A) $ 1,258  $ 1,230  $ 1,150  $ 2,488  $ 2,255 
Net income (loss) attributable to Key common shareholders (GAAP) (B) $ 473  $ 486  $ 389  $ 959  $ 758 
Average Key shareholders' equity (GAAP) $ 19,947  $ 20,392  $ 19,268  $ 20,169  $ 18,952 
Less: Average intangible assets 2,756  2,758  2,772  2,757  2,774 
          Average preferred stock 2,500  2,500  2,500  2,500  2,500 
 Average tangible common equity (non-GAAP) (C) $ 14,691  $ 15,134  $ 13,996  $ 14,912  $ 13,678 
Key shareholders' equity (GAAP) $ 19,798  $ 19,987  $ 19,484 
Less: Intangible assets 2,755  2,757  2,770 
             Preferred stock (a)
2,446  2,446  2,446 
Tangible common equity (non-GAAP) (D) $ 14,597  $ 14,784  $ 14,268 
Total assets (GAAP) $ 191,317  $ 188,663  $ 185,499 
Less: Intangible assets 2,755  2,757  2,770 
 Tangible assets (non-GAAP) (E) $ 188,562  $ 185,906  $ 182,729 
Tangible common equity to tangible assets ratio (non-GAAP) (D/E) 7.74  % 7.95  % 7.81  %
Return on average tangible common equity consolidated (non-GAAP) (B/C) 12.91  % 13.02  % 11.15  % 12.97  % 11.18  %
Common equity tier 1 (F) $ 17,016  $ 17,038  $ 16,775 
Add: AFS and Pension AOCI (loss) (2,154) (2,152) (2,476)
Marked common equity tier 1 (non-GAAP) (G) (b)
$ 14,862  $ 14,886  $ 14,299 
Risk-weighted assets (H) (c)
$ 152,317  $ 149,338  $ 143,427 
Common equity tier 1 ratio (F/H) (c)
11.2  % 11.4  % 11.7  %
Marked CET1 ratio (non-GAAP) (G/H) (b)(c)
9.8  10.0  10.0 



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




KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 17
Consolidated Balance Sheets
(Dollars in millions)
6/30/2026 3/31/2026 6/30/2025
Assets
Loans $ 110,430  $ 109,190  $ 106,389 
Loans held for sale 1,198  876  530 
Securities available for sale 38,459  38,918  40,669 
Held-to-maturity securities 9,515  9,116  6,914 
Trading account assets 936  783  1,374 
Short-term investments 12,416  11,782  11,564 
Other investments 1,230  1,204  1,058 
Total earning assets 174,184  171,869  168,498 
Allowance for loan and lease losses (1,445) (1,449) (1,446)
Cash and due from banks 1,711  1,130  1,766 
Premises and equipment 620  618  599 
Goodwill 2,752  2,752  2,752 
Other intangible assets 3  5  18 
Corporate-owned life insurance 4,456  4,439  4,423 
Accrued income and other assets 8,848  9,100  8,654 
Discontinued assets 188  199  235 
Total assets $ 191,317  $ 188,663  $ 185,499 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits $ 122,196  $ 120,220  $ 119,230 
Noninterest-bearing deposits 30,893  27,595  27,675 
Total deposits 153,089  147,815  146,905 
Federal funds purchased and securities sold under repurchase agreements  5  34  20 
Bank notes and other short-term borrowings 3,680  6,149  2,754 
Accrued expense and other liabilities 3,778  3,801  4,273 
Long-term debt 10,967  10,877  12,063 
Total liabilities 171,519  168,676  166,015 
Equity
Preferred stock 2,500  2,500  2,500 
Common shares 1,257  1,257  1,257 
Capital surplus 6,014  5,981  5,971 
Retained earnings 15,873  15,622  14,886 
Treasury stock, at cost (3,492) (3,152) (2,629)
Accumulated other comprehensive income (loss) (2,354) (2,221) (2,501)
Key shareholders’ equity 19,798  19,987  19,484 
Total liabilities and equity $ 191,317  $ 188,663  $ 185,499 
Common shares outstanding (000) 1,072,035  1,087,293  1,112,453 
    





KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 18
Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
 Six months ended
6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
Interest income
Loans $ 1,463  $ 1,416  $ 1,443  $ 2,879  $ 2,844 
Loans held for sale 15  14  11  29  25 
Securities available for sale 367  370  411  737  803 
Held-to-maturity securities 95  86  61  181  124 
Trading account assets 10  11  16  21  33 
Short-term investments 101  103  157  204  331 
Other investments 8  5  8  13  17 
Total interest income 2,059  2,005  2,107  4,064  4,177 
Interest expense
Deposits 600  598  730  1,198  1,483 
Federal funds purchased and securities sold under repurchase agreements 19  14  4  33  5 
Bank notes and other short-term borrowings 35  20  34  55  61 
Long-term debt 155  151  198  306  391 
Total interest expense 809  783  966  1,592  1,940 
Net interest income 1,250  1,222  1,141  2,472  2,237 
Provision for credit losses 92  106  138  198  256 
Net interest income after provision for credit losses 1,158  1,116  1,003  2,274  1,981 
Noninterest income
Trust and investment services income 159  157  146  316  285 
Investment banking and debt placement fees 169  197  178  366  353 
Cards and payments income 94  86  85  180  167 
Service charges on deposit accounts 77  77  73  154  142 
Corporate services income 80  71  76  151  141 
Commercial mortgage servicing fees 49  62  70  111  146 
Corporate-owned life insurance income 33  34  32  67  65 
Consumer mortgage income 17  13  15  30  28 
Operating lease income and other leasing gains 10  8  14  18  23 
Other income 15  18  1  33  8 
Net securities gains (losses) 3  —  —  3  — 
Total noninterest income 706  723  690  1,429  1,358 
Noninterest expense
Personnel 786  743  705  1,529  1,385 
Net occupancy 68  68  69  136  136 
Computer processing 108  111  107  219  214 
Business services and professional fees 46  36  48  82  88 
Equipment 22  19  21  41  41 
Operating lease expense 7  7  10  14  21 
Marketing 22  18  24  40  45 
Other expense 158  179  170  337  355 
Total noninterest expense 1,217  1,181  1,154  2,398  2,285 
Income (loss) from continuing operations before income taxes 647  658  539  1,305  1,054 
Income taxes (benefit) 139  136  116  275  225 
Income (loss) from continuing operations 508  522  423  1,030  829 
Income (loss) from discontinued operations, net of taxes 1  —  2  1  1 
Net income (loss) $ 509  $ 522  $ 425  $ 1,031  $ 830 
Income (loss) from continuing operations attributable to Key common shareholders $ 472  $ 486  $ 387  $ 958  $ 757 
Net income (loss) attributable to Key common shareholders 473  486  389  959  758 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders $ 0.44  $ 0.45  $ 0.35  $ 0.89  $ 0.69 
Income (loss) from discontinued operations, net of taxes —  —  —  —  — 
Net income (loss) attributable to Key common shareholders (a)
0.44  0.45  0.35  0.89  0.69 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders $ 0.44  $ 0.44  $ 0.35  $ 0.88  $ 0.69 
Income (loss) from discontinued operations, net of taxes —  —  —  —  — 
Net income (loss) attributable to Key common shareholders (a)
0.44  0.44  0.35  0.88  0.69 
Cash dividends declared per common share $ 0.205  $ 0.205  $ 0.205  $ 0.410  $ 0.410 
Weighted-average common shares outstanding (000) 1,071,229  1,084,277  1,100,033  1,077,977  1,098,453 
Effect of common share options and other stock awards(b)
8,779  10,091  7,177  9,435  8,331 
Weighted-average common shares and potential common shares outstanding (000) (c)
1,080,008  1,094,368  1,107,210  1,087,412  1,106,784 
(a)Earnings per share may not foot due to rounding.
(b)For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.
(c)Assumes conversion of common share options and other stock awards, as applicable.



KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Second Quarter 2026 First Quarter 2026 Second Quarter 2025
Average Yield/ Average Yield/ Average Yield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$ 62,134  $ 896  5.78  % $ 59,149  $ 843  5.76  % $ 55,604  $ 838  6.04  %
Real estate — commercial mortgage 13,911  197  5.68  13,902  198  5.76  13,311  200  6.02 
Real estate — construction 2,816  46  6.53  2,803  45  6.50  2,873  50  6.95 
Commercial lease financing 2,117  20  3.77  2,213  21  3.81  2,524  22  3.59 
Total commercial loans 80,978  1,159  5.73  78,067  1,107  5.73  74,312  1,110  5.99 
Real estate — residential mortgage 18,305  153  3.35  18,593  155  3.34  19,446  162  3.34 
Home equity loans 5,470  73  5.33  5,609  74  5.35  6,091  86  5.63 
Other consumer loans 4,410  57  5.18  4,558  58  5.16  4,946  63  5.09 
Credit cards 909  29  12.67  910  30  13.24  920  31  13.44 
Total consumer loans 29,094  312  4.29  29,670  317  4.30  31,403  342  4.36 
Total loans 110,072  1,471  5.35  107,737  1,424  5.35  105,715  1,452  5.51 
Loans held for sale 1,085  15  5.68  1,092  14  4.99  770  11  5.72 
Securities available for sale (b), (e)
38,518  367  3.58  39,403  370  3.59  40,714  411  3.76 
Held-to-maturity securities (b)
9,425  95  4.05  8,795  86  3.91  7,038  61  3.46 
Trading account assets 797  10  5.30  865  11  4.96  1,259  16  5.32 
Short-term investments 10,705  101  3.79  11,134  103  3.74  13,489  157  4.67 
Other investments (e)
1,214  8  2.66  1,075  5  1.97  1,015  8  3.41 
Total earning assets 171,816  2,067  4.75  170,101  2,013  4.71  170,000  2,116  4.90 
Allowance for loan and lease losses (1,442) (1,419) (1,424)
Accrued income and other assets 17,926  17,567  18,224 
Discontinued assets 192  204  239 
Total assets $ 188,492  $ 186,453  $ 187,039 
Liabilities
Money market deposits $ 42,843  $ 225  2.11  % $ 42,732  $ 223  2.12  % $ 42,586  $ 276  2.60  %
Demand deposits 61,013  280  1.84  61,478  279  1.84  57,155  309  2.17 
Savings deposits 4,406  1  0.04  4,378  1  0.04  4,631  1  0.06 
Time deposits 11,749  94  3.21  11,777  95  3.26  15,601  144  3.70 
Total interest-bearing deposits 120,011  600  2.01  120,365  598  2.01  119,973  730  2.44 
Federal funds purchased and securities sold under repurchase agreements 2,002  19  3.71  1,539  14  3.69  415  4  4.28 
Bank notes and other short-term borrowings 4,179  35  3.33  2,585  20  3.20  3,288  34  4.27 
Long-term debt (f)
10,694  155  5.84  10,186  151  5.96  12,088  198  6.55 
Total interest-bearing liabilities 136,886  809  2.37  134,675  783  2.35  135,764  966  2.86 
Noninterest-bearing deposits 27,566  26,934  27,473 
Accrued expense and other liabilities 3,901  4,248  4,295 
Discontinued liabilities (f)
192  204  239 
Total liabilities $ 168,545  $ 166,061  $ 167,771 
Equity
Total equity $ 19,947  $ 20,392  $ 19,268 
Total liabilities and equity $ 188,492  $ 186,453  $ 187,039 
Interest rate spread (TE) 2.38  % 2.36  % 2.04  %
Net interest income (TE) and net interest margin (TE) $ 1,258  2.89  % $ 1,230  2.87  % $ 1,150  2.66  %
TE adjustment (b)
8 8 9
Net interest income, GAAP basis $ 1,250  $ 1,222  $ 1,141 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $209 million, $205 million, and $218 million of assets from commercial credit cards for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.0 billion, $41.5 billion, and $43.8 billion for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.81%, 3.75%, and 4.03% for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 20
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Six months ended June 30, 2026 Six months ended June 30, 2025
Average Yield/ Average Yield/
Balance Interest (a) Rate (a) Balance Interest (a) Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$ 60,650  $ 1,739  5.77  % $ 54,680  $ 1,638  6.04  %
Real estate — commercial mortgage 13,906  395 5.72  13,187  392 5.99 
Real estate — construction 2,810  91  6.52  2,889  99  6.91 
Commercial lease financing 2,165  41  3.79  2,588  46  3.55 
Total commercial loans 79,531  2,266  5.73  73,344  2,175  5.98 
Real estate — residential mortgage 18,448  308  3.35  19,591  327  3.34 
Home equity loans 5,539  147  5.34  6,169  172  5.62 
Other consumer loans 4,483  115  5.17  5,016  126  5.05 
Credit cards 910  59  12.95  919  62  13.74 
Total consumer loans 29,380  629  4.30  31,695  687  4.35 
Total loans 108,911  2,895  5.34  105,039  2,862  5.49 
Loans held for sale 1,088  29  5.33  792  25  6.23 
Securities available for sale (b), (e)
38,958  737  3.58  40,021  803  3.73 
Held-to-maturity securities (b)
9,112  181  3.98  7,156  124  3.46 
Trading account assets 831  21  5.13  1,277  33  5.26 
Short-term investments 10,918  204  3.77  14,345  331  4.65 
Other investments (e)
1,145  13  2.33  975  17  3.57 
Total earning assets 170,963  4,080  4.73  169,605  4,195  4.88 
Allowance for loan and lease losses (1,431) (1,413)
Accrued income and other assets 17,748  18,254 
Discontinued assets 198  246 
Total assets $ 187,478  $ 186,692 
Liabilities
Money market deposits $ 42,788  $ 448  2.12  % $ 42,298  $ 551  2.63  %
Other demand deposits 61,244  559  1.84  57,307  619  2.18 
Savings deposits 4,392  2  0.04  4,620  2  0.06 
Time deposits 11,763  189  3.23  16,110  311  3.90 
Total interest-bearing deposits 120,187  1,198  2.01  120,335  1,483  2.49 
Federal funds purchased and securities sold under repurchase agreements 1,772  33  3.70  258  5  4.22 
Bank notes and other short-term borrowings 3,386  55  3.28  2,784  61  4.47 
Long-term debt (f)
10,442  306  5.90  11,934  391  6.58 
Total interest-bearing liabilities 135,787  1,592  2.36  135,311  1,940  2.89 
Noninterest-bearing deposits 27,251  27,655 
Accrued expense and other liabilities 4,073  4,528 
Discontinued liabilities (f)
198  246 
Total liabilities $ 167,309  $ 167,740 
Equity
Total equity $ 20,169  $ 18,952 
Total liabilities and equity $ 187,478  $ 186,692 
Interest rate spread (TE) 2.37  % 1.99  %
Net interest income (TE) and net interest margin (TE) $ 2,488  2.88  % $ 2,255  2.62  %
TE adjustment (b)
16 18 
Net interest income, GAAP basis $ 2,472  $ 2,237 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the six months ended June 30, 2026, and June 30, 2025, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $207 million and $216 million of assets from commercial credit cards for the six months ended June 30, 2026, and June 30, 2025, respectively.
(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.3 billion and $43.2 billion for the six months ended June 30, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.78% and 4.01% for the six months ended June 30, 2026, and June 30, 2025, respectively.
(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 21
Noninterest Expense
(Dollars in millions)
Three months ended Six months ended
6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
Personnel (a)
$ 786  $ 743  $ 705  $ 1,529  $ 1,385 
Net occupancy 68  68  69  136  136 
Computer processing 108  111  107  219  214 
Business services and professional fees 46  36  48  82  88 
Equipment 22  19  21  41  41 
Operating lease expense 7  7  10  14  21 
Marketing 22  18  24  40  45 
Other expense 158  179  170  337  355 
Total noninterest expense $ 1,217  $ 1,181  $ 1,154  $ 2,398  $ 2,285 
Average full-time equivalent employees (b)
17,517  17,469  17,105  17,493  17,047 
(a)Additional detail provided in Personnel Expense table below.
(b)The number of average full-time equivalent employees has not been adjusted for discontinued operations.

Personnel Expense
(Dollars in millions)
Three months ended Six months ended
6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
Salaries and contract labor $ 448  $ 439  $ 427  $ 887  $ 832 
Incentive and stock-based compensation 194  172  168  366  326 
Employee benefits 140  127  108  267  217 
Severance 4  5  2  9  10 
Total personnel expense $ 786  $ 743  $ 705  $ 1,529  $ 1,385 

Loan Composition
(Dollars in millions)
Change 6/30/2026 vs.
6/30/2026 3/31/2026 6/30/2025 3/31/2026 6/30/2025
Commercial and industrial (a)
$ 62,734  $ 60,651  $ 56,058  3.4  % 11.9  %
Commercial real estate:
Commercial mortgage 13,941  14,144  13,862  (1.4) 0.6 
Construction 2,896  2,801  2,830  3.4  2.3 
Total commercial real estate loans 16,837  16,945  16,692  (0.6) 0.9 
Commercial lease financing 1,997  2,200  2,472  (9.2) (19.2)
Total commercial loans 81,568  79,796  75,222  2.2  8.4 
Real estate — residential mortgage 18,178  18,483  19,330  (1.7) (6.0)
Home equity loans 5,408  5,528  6,023  (2.2) (10.2)
Other consumer loans 4,349  4,477  4,881  (2.9) (10.9)
Credit cards 927  906  933  2.3  (0.6)
Total consumer loans 28,862  29,394  31,167  (1.8) (7.4)
Total loans (b), (c)
$ 110,430  $ 109,190  $ 106,389  1.1  % 3.8  %
(a)Loan balances include $208 million, $207 million, and $220 million of commercial credit card balances at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
(b)Total loans exclude loans of $182 million at June 30, 2026, $194 million at March 31, 2026, and $230 million at June 30, 2025, related to the discontinued operations of the education lending business.
(c)Accrued interest of $453 million, $443 million, and $465 million at June 30, 2026, March 31, 2026, and June 30, 2025, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

Loans Held for Sale Composition
(Dollars in millions)
Change 6/30/2026 vs.
6/30/2026 3/31/2026 6/30/2025 3/31/2026 6/30/2025
Commercial and industrial $ 559  $ 139  $ 158  302.2  % 253.8  %
Real estate — commercial mortgage 435  637  290  (31.7) 50.0 
Real estate — residential mortgage 204  100  82  104.0  148.8 
Total loans held for sale $ 1,198  $ 876  $ 530  36.8  % 126.0  %


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 22
Summary of Changes in Loans Held for Sale
(Dollars in millions)
2Q26 1Q26 4Q25 3Q25 2Q25
Balance at beginning of period $ 876  $ 1,077  $ 998  $ 530  $ 811 
New originations 2,099  2,034  3,356  3,471  1,806 
Transfers from (to) held to maturity, net 34  (13) (35) —  (71)
Loan sales (1,721) (2,201) (3,232) (2,956) (2,012)
Loan draws (payments), net (89) (25) (10) (42) (1)
Valuation and other adjustments (1) 4  —  (5) (3)
Balance at end of period $ 1,198  $ 876  $ 1,077  $ 998  $ 530 

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months ended Six months ended
6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
Average loans outstanding $ 110,072  $ 107,737  $ 105,715  $ 108,911  $ 105,039 
Allowance for loan and lease losses at the beginning of the period $ 1,449  $ 1,427  $ 1,429  $ 1,427  $ 1,409 
Loans charged off:
Commercial and industrial 84  90  94  174  156 
Real estate — commercial mortgage 20  1  6  21  42 
Real estate — construction —  —  —  —  — 
Total commercial real estate loans 20  1  6  21  42 
Commercial lease financing 1  —  2  1  2 
Total commercial loans 105  91  102  196  200 
Real estate — residential mortgage 1  —  —  1  1 
Home equity loans —  1  —  1  1 
Other consumer loans 14  15  13  29  27 
Credit cards 11  10  12  21  24 
Total consumer loans 26  26  25  52  53 
Total loans charged off 131  117  127  248  253 
Recoveries:
Commercial and industrial 9  10  19  19  29 
Real estate — commercial mortgage 1  —  1  1  1 
Real estate — construction —  —  —  —  — 
Total commercial real estate loans 1  —  1  1  1 
Commercial lease financing —  —  —  —  — 
Total commercial loans 10  10  20  20  30 
Real estate — residential mortgage 1  1  1  2  2 
Home equity loans —  1  1  1  2 
Other consumer loans 3  2  2  5  4 
Credit cards 2  2  1  4  3 
Total consumer loans 6  6  5  12  11 
Total recoveries 16  16  25  32  41 
Net loan charge-offs (115) (101) (102) (216) (212)
Provision (credit) for loan and lease losses 111  123  119  234  249 
Allowance for loan and lease losses at end of period $ 1,445  $ 1,449  $ 1,446  $ 1,445  $ 1,446 
Liability for credit losses on lending-related commitments at beginning of period $ 296  $ 313  $ 278  $ 313  $ 290 
Provision (credit) for losses on lending-related commitments (19) (17) 19  (36) 7 
Liability for credit losses on lending-related commitments at end of period (a)
$ 277  $ 296  $ 297  $ 277  $ 297 
Total allowance for credit losses at end of period $ 1,722  $ 1,745  $ 1,743  $ 1,722  $ 1,743 
Net loan charge-offs to average total loans 0.42  % 0.38  % 0.39  % 0.40  % 0.41  %
Allowance for loan and lease losses to period-end loans 1.31  1.33  1.36  1.31  1.36 
Allowance for credit losses to period-end loans 1.56  1.60  1.64  1.56  1.64 
Allowance for loan and lease losses to nonperforming loans 179  212  208  179  208 
Allowance for credit losses to nonperforming loans 213  256  250  213  250 
Discontinued operations — education lending business:
Loans charged off $ —  $ 1  $ 1  $ 1  $ 1 
Recoveries —  —  —  —  — 
Net loan charge-offs $ —  $ (1) $ (1) $ (1) $ (1)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 23
Asset Quality Statistics From Continuing Operations
(Dollars in millions)
2Q26 1Q26 4Q25 3Q25 2Q25
Net loan charge-offs $ 115  $ 101  $ 104  $ 114  $ 102 
Net loan charge-offs to average total loans 0.42  % 0.38  % 0.39  % 0.42  % 0.39  %
Allowance for loan and lease losses $ 1,445  $ 1,449  $ 1,427  $ 1,444  $ 1,446 
Allowance for credit losses (a)
1,722  1,745  1,740  1,736  1,743 
Allowance for loan and lease losses to period-end loans 1.31  % 1.33  % 1.34  % 1.36  % 1.36  %
Allowance for credit losses to period-end loans 1.56  1.60  1.63  1.64  1.64 
Allowance for loan and lease losses to nonperforming loans 179  212  232  219  208 
Allowance for credit losses to nonperforming loans 213  256  283  264  250 
Nonperforming loans at period end $ 809  $ 682  $ 615  $ 658  $ 696 
Nonperforming assets at period end 818  692  627  668  707 
Nonperforming loans to period-end portfolio loans 0.73  % 0.62  % 0.58  % 0.62  % 0.65  %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
 0.74  0.63  0.59  0.63  0.66 
(a)Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025
Commercial and industrial $ 358  $ 284  $ 256  $ 253  $ 280 
Real estate — commercial mortgage 256  190  157  214  226 
Real estate — construction —  —  —  —  — 
Total commercial real estate loans 256  190  157  214  226 
Commercial lease financing 6  6  7  —  — 
Total commercial loans 620  480  420  467  506 
Real estate — residential mortgage 100  115  104  98  95 
Home equity loans 79  76  80  82  84 
Other consumer loans 4  4  4  4  4 
Credit cards 6  7  7  7  7 
Total consumer loans 189  202  195  191  190 
Total nonperforming loans (a)
809  682  615  658  696 
OREO 9  10  9  10  11 
Nonperforming loans held for sale —  —  3  —  — 
Total nonperforming assets $ 818  $ 692  $ 627  $ 668  $ 707 
Accruing loans past due 90 days or more $ 85  $ 153  $ 99  $ 110  $ 74 
Accruing loans past due 30 through 89 days 138  137  220  254  266 
Nonperforming assets from discontinued operations — education lending business  1  2  2  2  2 
Nonperforming loans to period-end portfolio loans 0.73  % 0.62  % 0.58  % 0.62  % 0.65  %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
 0.74  0.63  0.59  0.63  0.66 

Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
2Q26 1Q26 4Q25 3Q25 2Q25
Balance at beginning of period $ 682  $ 615  $ 658  $ 696  $ 686 
Loans placed on nonaccrual status 365  253  248  210  233 
Charge-offs (131) (117) (124) (140) (127)
Loans sold (33) (2) (7) (13) — 
Payments (38) (37) (124) (68) (74)
Transfers to OREO (1) (1) (1) (1) (1)
Loans returned to accrual status (35) (29) (35) (26) (21)
Balance at end of period $ 809  $ 682  $ 615  $ 658  $ 696 


KeyCorp Reports Second Quarter 2026 Results     
July 21, 2026
Page 24
Line of Business Results
(Dollars in millions)
Change 2Q26 vs.
2Q26 1Q26 4Q25 3Q25 2Q25 1Q26 2Q25
Consumer Bank
Summary of operations
Total revenue (TE) $ 1,010  $ 977  $ 998  $ 992  $ 966  3.4  % 4.6  %
Provision for credit losses 26  40  32  40  55  (35.0) (52.7)
Noninterest expense 716  708  734  693  693  1.1  3.3 
Net income (loss) attributable to Key 203  174  176  196  165  16.7  23.0 
Average loans and leases 33,263  33,997  34,683  35,363  36,138  (2.2) (8.0)
Average deposits 87,399  87,796  87,738  87,692  88,002  (0.5) (0.7)
Net loan charge-offs 45  40  49  49  40  12.5  12.5 
Net loan charge-offs to average total loans 0.54  % 0.48  % 0.56  % 0.55  % 0.44  % 12.5  22.7 
Nonperforming assets at period end $ 253  $ 270  $ 262  $ 266  $ 269  (6.3) (5.9)
Return on average allocated equity 29.52  % 24.90  % 24.24  % 26.03  % 21.91  % 18.6  34.7 
Commercial Bank
Summary of operations
Total revenue (TE) $ 1,108  $ 1,119  $ 1,194  $ 1114  $ 1074  (1.0) % 3.2  %
Provision for credit losses 67  70  73  68  84  (4.3) (20.2)
Noninterest expense 503  474  515  485  451  6.1  11.5 
Net income (loss) attributable to Key 423  452  472  440  423  (6.4) — 
Average loans and leases 76,238  73,146  71,107  70,328  69,089  4.2  10.3 
Average loans held for sale 936  958  1,140  1,224  707  (2.3) 32.4 
Average deposits 58,895  58,929  60,485  58,523  55,927  (0.1) 5.3 
Net loan charge-offs 71  64  53  64  62  10.9  14.5 
Net loan charge-offs to average total loans 0.37  % 0.35  % 0.30  % 0.36  % 0.36  % 5.7  2.8 
Nonperforming assets at period end $ 565  $ 422  $ 365  $ 402  $ 438  33.9  29.0 
Return on average allocated equity 16.40  % 18.14  % 18.80  % 17.87  % 17.55  % (9.6) (6.6)
TE = Taxable Equivalent
Selected Items Impact on Earnings
(Dollars in millions, except per share amounts)
Pretax(a)
After-tax at marginal rate(a)
Quarter to date results Amount Net Income
EPS(b), (d)
Three months ended June 30, 2026
No items $ —  $ —  $ — 
Three months ended March 31, 2026
No items —  —  — 
Three Months Ended December 31, 2025
FDIC special assessment (other expense)(c)
21  16  0.01 
Three months ended September 30, 2025
FDIC special assessment (other expense)(c)
5  4  — 
Three months ended June 30, 2025
No items —  —  — 
Year to date results
Six months ended June 30, 2026
No items $ —  $ —  $ — 
Six months ended June 30, 2025
No items —  —  — 
(a)Favorable (unfavorable) impact.
(b)Impact to EPS reflected on a fully diluted basis.
(c)In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. Amounts reflected in this table represent adjustments from initial estimates based on quarterly invoices received from the FDIC.
(d)Earnings per share may not foot due to rounding.

EX-99.2 3 a2q26earningspresentatio.htm EX-99.2 a2q26earningspresentatio
KeyCorp Second Quarter 2026 Earnings Review July 21, 2026 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer

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

 
Financial Review

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

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

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

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

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

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

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

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

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

 
Appendix

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

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

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

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

 
(1) Favorable (unfavorable) impact; (2) Impact to EPS reflected on a fully diluted basis; (3) In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. Amounts reflected in this table represent adjustments from initial estimates based on quarterly invoices received from the FDIC; (4) Earnings per share may not foot due to rounding Selected Items Impact on Earnings $ in millions, except per share amounts After-tax at marginal rate(1) Quarter to date results Pretax(1) Amount Net Income EPS(2)(4) Three months ended June 30, 2026 No items $ — $ — $ — Three months ended March 31, 2026 No items — — — Three months ended December 31, 2025 FDIC special assessment (other expense)(3) 21 16 0.01 Three months ended September 30, 2025 FDIC special assessment (other expense)(3) 5 4 — Three months ended June 30, 2025 No items — — — Year to date results Six months ended June 30, 2026 No items $ — $ — $ — Six months ended June 30, 2025 No items — — — Selected Items Impact on Earnings 18

 
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “seek,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible,” “potential,” “strategy,” “opportunities,” or “trends,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp’s control). Actual results may differ materially from current projections. Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward-looking Statements” and “Risk Factors” in KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent filings of KeyCorp with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir. Non-GAAP Measures. This presentation contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Key’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the appendix to this presentation, the financial supplement, or the press release related to this presentation, all of which can be found on Key’s website (www.key.com/ir). Forward-Looking Non-GAAP Measures. From time to time we may discuss forward-looking non-GAAP financial measures. We are unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because we are unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results. Annualized Data. Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Taxable Equivalent. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of peers. Earnings Per Share Equivalent. Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent. GAAP: Generally Accepted Accounting Principles Forward-looking Statements and Additional Information 19

 
EX-99.3 4 a2q26erex993.htm EX-99.3 Document
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
6/30/2026 3/31/2026 6/30/2025
Assets
Loans $ 110,430  $ 109,190  $ 106,389 
Loans held for sale 1,198  876  530 
Securities available for sale 38,459  38,918  40,669 
Held-to-maturity securities 9,515  9,116  6,914 
Trading account assets 936  783  1,374 
Short-term investments 12,416  11,782  11,564 
Other investments 1,230  1,204  1,058 
Total earning assets 174,184  171,869  168,498 
Allowance for loan and lease losses (1,445) (1,449) (1,446)
Cash and due from banks 1,711  1,130  1,766 
Premises and equipment 620  618  599 
Goodwill 2,752  2,752  2,752 
Other intangible assets 3  5  18 
Corporate-owned life insurance 4,456  4,439  4,423 
Accrued income and other assets 8,848  9,100  8,654 
Discontinued assets 188  199  235 
Total assets $ 191,317  $ 188,663  $ 185,499 
Liabilities
Deposits in domestic offices:
Interest-bearing deposits 122,196  120,220  119,230 
Noninterest-bearing deposits 30,893  27,595  27,675 
Total deposits 153,089  147,815  146,905 
Federal funds purchased and securities sold under repurchase agreements  5  34  20 
Bank notes and other short-term borrowings 3,680  6,149  2,754 
Accrued expense and other liabilities 3,778  3,801  4,273 
Long-term debt 10,967  10,877  12,063 
Total liabilities 171,519  168,676  166,015 
Equity
Preferred stock 2,500  2,500  2,500 
Common shares 1,257  1,257  1,257 
Capital surplus 6,014  5,981  5,971 
Retained earnings 15,873  15,622  14,886 
Treasury stock, at cost (3,492) (3,152) (2,629)
Accumulated other comprehensive income (loss) (2,354) (2,221) (2,501)
Total equity 19,798  19,987  19,484 
Total liabilities and equity $ 191,317  $ 188,663  $ 185,499 
Common shares outstanding (000) 1,072,035  1,087,293  1,112,453 



Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months ended Six months ended
6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
Interest income
Loans $ 1,463  $ 1,416  $ 1,443  $ 2,879  $ 2,844 
Loans held for sale 15  14  11  29  25 
Securities available for sale 367  370  411  737  803 
Held-to-maturity securities 95  86  61  181  124 
Trading account assets 10  11  16  21  33 
Short-term investments 101  103  157  204  331 
Other investments 8  5  8  13  17 
Total interest income 2,059  2,005  2,107  4,064  4,177 
Interest expense
Deposits 600  598  730  1,198  1,483 
Federal funds purchased and securities sold under repurchase agreements 19  14  4  33  5 
Bank notes and other short-term borrowings 35  20  34  55  61 
Long-term debt 155  151  198  306  391 
Total interest expense 809  783  966  1,592  1,940 
Net interest income 1,250  1,222  1,141  2,472  2,237 
Provision for credit losses 92  106  138  198  256 
Net interest income after provision for credit losses 1,158  1,116  1,003  2,274  1,981 
Noninterest income
Trust and investment services income 159  157  146  316  285 
Investment banking and debt placement fees 169  197  178  366  353 
Service charges on deposit accounts 77  77  73  154  142 
Operating lease income and other leasing gains 10  8  14  18  23 
Corporate services income 80  71  76  151  141 
Cards and payments income 94  86  85  180  167 
Corporate-owned life insurance income 33  34  32  67  65 
Consumer mortgage income 17  13  15  30  28 
Commercial mortgage servicing fees 49  62  70  111  146 
Other income 15  18  1  33  8 
Net securities gains (losses) 3  —  —  3  — 
Total noninterest income 706  723  690  1,429  1,358 
Noninterest expense
Personnel 786  743  705  1,529  1,385 
Net occupancy 68  68  69  136  136 
Computer processing 108  111  107  219  214 
Business services and professional fees 46  36  48  82  88 
Equipment 22  19  21  41  41 
Operating lease expense 7  7  10  14  21 
Marketing 22  18  24  40  45 
Other expense 158  179  170  337  355 
Total noninterest expense 1,217  1,181  1,154  2,398  2,285 
Income (loss) from continuing operations before income taxes 647  658  539  1,305  1,054 
Income taxes 139  136  116  275  225 
Income (loss) from continuing operations 508  522  423  1,030  829 
Income (loss) from discontinued operations, net of taxes 1  —  2  1  1 
Net income (loss) 509  522  425  1,031  830 
Less: Net income (loss) attributable to noncontrolling interests —  —  —  —  — 
Net income (loss) attributable to Key $ 509  $ 522  $ 425  $ 1,031  $ 830 
Income (loss) from continuing operations attributable to Key common shareholders $ 472  $ 486  $ 387  $ 958  $ 757 
Net income (loss) attributable to Key common shareholders 473  486  389  959  758 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders $ .44  $ .45  $ .35  $ .89  $ .69 
Income (loss) from discontinued operations, net of taxes —  —  —  —  — 
Net income (loss) attributable to Key common shareholders (a)
.44  .45  .35  .89  .69 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders $ .44  $ .44  $ .35  $ .88  $ .69 
Income (loss) from discontinued operations, net of taxes —  —  —  —  — 
Net income (loss) attributable to Key common shareholders (a)
.44  .44  $ .35  .88  .69 
Cash dividends declared per common share $ .205  $ .205  $ .205  $ .41  $ .41 
Weighted-average common shares outstanding (000) 1,071,229  1,084,277  1,100,033  1,077,977  1,098,453 
Effect of common share options and other stock awards (b)
8,779  10,091  7,177  9,435  8,331 
Weighted-average common shares and potential common shares outstanding (000) (c)
1,080,008  1,094,368  1,107,210  1,087,412  1,106,784 
(a)Earnings per share may not foot due to rounding.
(b)For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.
(c)Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.