Slide 1: Third Quarter 2010 Review
Third Quarter 2010 Review October 22, 2010 Speakers: Henry Meyer Jeff Weeden Exhibit 99.2
Slide 2: Private Securities Litigation Reform Act of 1995 Forward-Looking Statement Disclosure
2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key's financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements are no
Slide 3: 3Q10 Strategic Update
3 Profitable in the third quarter and year-to-date 2010 Credit quality continues to improve Capital and reserves remain strong Investing in core relationship businesses 3Q10 Strategic Update
Slide 4: Financial Summary - Third Quarter 2010
4 Financial Summary - Third Quarter 2010 Capital (b) Asset Quality Financial Performance Metrics 3Q10 3Q10 TE = Taxable equivalent, EOP = End of Period (a) From continuing operations unless otherwise noted. (b) From consolidated operations. (c) 9-30-10 ratios are estimated. (a) $.19 3.35% .93 8.59%
Slide 5: Key's Targets for Success
5 5 (a) Continuing operations, unless otherwise noted. (b) Ending balances; loans & loans HFS (excluding securitized loans) to deposits (excluding foreign branch). (c) Consolidated operations. Key's Targets for Success (a)
Slide 6: Average Loans and Deposits
6 6 Average Loans and Deposits 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Commercial & Industrial 23.7 21.502 19.347 18.421 17.418 16.705 CRE - Comml Mtg 11.9 10.946 10.358 10.087 10.108 9.634 CRE - Construction 5.5 5.834 5.246 4.537 3.773 3.165 Leasing 4.6 4.505 4.484 4.41 4.2 4.226 Home Equity 10.3 10.192 10.1
Slide 7: Asset Quality
7 7 Asset Quality Nonperforming Loans Net Charge-offs & Provision for Loan Losses $ in millions 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Nonperforming Loans 2185 2290 2187 2065 1703 1372 NPLs to Period-End Loans 0.0325 0.0368 0.0372 0.0369 0.0319 0.0267 Nonperforming loans NPLs to period-end loans $ in million
Slide 8: Net Interest Margin (TE)
8 8 Net Interest Margin (TE) TE = Taxable equivalent (a) The information shown in this table has been adjusted to exclude the impact of certain leveraged lease terminations, which reduced taxable equivalent net interest income by $14 million in 3Q09. 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Slide 9: Noninterest Income
9 9 Noninterest Income Areas of Focus Targeting specific high opportunity client segments in National Banking - using the balance sheet strategically Letter of credit and loan fees increased $19 million compared to prior quarter Leverage investment banking and capital markets opportunities Investmen
Slide 10: Noninterest Expense
10 10 Noninterest Expense Noninterest Expense and Average FTEs 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Noninterest Expense 855 901 871 785 769 736 Average FTEs 16937 16436 15973 15772 15665 15584 Noninterest expense Average FTEs $ in millions Highlights Implemented $224 million of Keyvolution cost savings thr
Slide 11: Pre-provision Net Revenue and ROAA
11 11 Pre-provision Net Revenue and ROAA (a) Pre-provision Net Revenue (b) Return on Average Assets 3Q09 4Q09 1Q10 2Q10 3Q10 ROAA -0.0162 -0.0094 -0.0026 0.0044 0.0093 3Q09 4Q09 1Q10 2Q10 3Q10 PPNR 142 235 297 346 397 $ in millions (c) (a) From continuing operations (b) Net interest income plus taxa
Slide 12: Capital ratios: Tier 1 and Tangible Common Equity
12 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Common 0.0583 0.056 0.0558 0.0562 0.0562 0.0736 0.0764 0.075 0.0751 0.0807 0.0859 Capital Raise Convertible 0.0059 0.006 0.0062 0.0065 0.003 0.0032 0.0034 0.0035 0.0036 0.0036 TARP 0.0226 0.0239 0.0252 0.0268 0.0282 0.0291 0.0299 0.0306 Quali
Slide 13: Appendix
13 Appendix
Slide 14: Pre-provision Net Revenue Trend
14 Pre-provision Net Revenue Trend (a) TE = taxable equivalent (a) Adjusted to exclude the impact of a $45 million intangible asset impairment and a $17 million loss related to the exchange of common shares for capital securities. (b) Net interest income plus taxable-equivalent adjustment and nonint
Slide 15: 3Q10 Loan Activity
15 6/30 loans Exit port. runoff / paydown Net charge-offs Net decrease 9/30 loans 1 53.334 52.928 52.571 51.354 51.354 2 0.406 0 0 3 0.357 1.217 CF&A and Leasing Total Loans Total Consumer Total Commercial Real Estate 3Q10 Loan Activity $53.3 $51.4 $.4 $ in billions $.4 $1.1 6/30 loans Exit port. ru
Slide 16: Investment Portfolio Highlights
16 Investment Portfolio Highlights 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Avg. Securities Available for Sale 8.36 12.154 15.937 16.312 17.285 20.276 Average Yield 0.0437 0.04 0.0382 0.0373 0.0363 0.0343 Average AFS securities Growth in Available for Sale Securities Average yield $ in billions Until loan dema
Slide 17: Credit Quality by Portfolio
17 N/M = Not Meaningful (a) Net charge-off amounts are annualized in calculation. (b) 9-30-10 allowance by portfolio is estimated. $ in millions Credit Quality by Portfolio
Slide 18: Commercial Portfolio - Continuing Ops. Average Loans, NCOs and NPLs
18 $ in millions Third Quarter 2010 Second Quarter 2010 Commercial Portfolio - Continuing Ops. Average Loans, NCOs and NPLs
Slide 19: Commercial Real Estate Loans
19 $ in millions (a) Nonresidential land and development loans. N/M = Not Meaningful Commercial Real Estate Loans September 30, 2010 (a)
Slide 20: Commercial Real Estate
20 $ in millions (a) Nonresidential land and development loans. (a) Commercial Real Estate
Slide 21: Home Equity Loans
21 $ in millions, except average loan size (a) Average LTVs are at origination. Current average LTVs for Community Banking total home equity loans and lines is approximately 75%, which compares to 76% at the end of the second quarter of 2010. Home Equity Loans September 30, 2010 (a)
Slide 22: Exit Loan Portfolio
22 $ in millions (a) Includes the business aviation, commercial vehicle, office products, construction and industrial leases, Canadian lease financing portfolios and all remaining balances related to lease in, lease out; sale in, sale out; service contract leases; and qualified technological equipme
Slide 23: Net Charge-offs to Average Loans
23 Continuing Operations Net Charge-offs to Average Loans
Slide 24: Nonperforming Loans to Period-end Loans
24 Continuing Operations Nonperforming Loans to Period-end Loans