Slide 1: KeyCorp First Quarter 2025 Earnings Review
KeyCorp First Quarter 2025 Earnings Review April 17, 2025 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer
Slide 2: 1Q25 Results
1Q25 Results Growth rates are year-over-year, unless otherwise noted Differentiated Fee Driving New Businesses Focused Relationships Focused Risk Management Strengthening the on Targeted Scale on Primacy Excellence Balance Sheet +6% +4% 9% 11.8% Noninterest Income Growth(1) Client Deposit Growth Imp
Slide 3: Financial Review
Financial Review
Slide 4: 1Q25 Highlights
1Q25 Highlights $ in millions, excluding per share metrics From continuing operations, unless otherwise noted Reported QoQ YoY Reported EPS of $0.33 EPS $ 0.33 NM 65.0 % Net interest income up 4% QoQ and 25% YoY − NIM of 2.58% up 17 basis points QoQ Net Interest Income (TE) (1) $ 1,105 4.1 % 24.
Slide 5: Average Loans
Average Loans $ in billions vs. Prior Quarter $111.0 $109.0 $106.2 $104.7 $104.4 Average loans relatively flat from 4Q24 Consumer $34.6 $33.9 $33.2 − Increase in average commercial loans (+0.4%) $32.6 32.0 primarily driven by an increase in commercial and Commercial $76.4 industrial loans, offset
Slide 6: Average Deposits
Average Deposits vs. Prior Quarter $ in billions $144.2 $147.8 $149.7 $148.5 $142.9 Average deposits down 0.8% from 4Q24 Other(1) − Growth in consumer deposits offset by a seasonal decline $57.4 $58.7 $59.7 $57.4 Commercial $56.3 in commercial balances 2.39% − Includes $300mm decrease in brokered
Slide 7: Net Interest Income and Margin (TE)
Net Interest Income and Margin (TE)(1) 1200 From continuing operations, $ in millions 4.00% $1,105 NII Walk (TE) 1100 $1,061 $20 $11 $42 $1,105 +25% 3.50% $1,061 $(16) $(9) $(5) 1000 $964 +4% $899 3.00% 900 $886 2.58% 800 2.50% 2.41% 4Q24 Securities Swap Fixed Rate Day Count Balance Other 1Q25 repos
Slide 8: Noninterest Income
Noninterest Income $ in millions; Illustrative, not drawn to scale +3% YoY $722(1) $668 vs. Prior Year $647 Noninterest income up $21MM (+3%), or As reported: 6% excluding operating lease income $(196) − Commercial mortgage servicing fees (+$20MM), reflects higher active special servicing balances
Slide 9: Noninterest Expense
Noninterest Expense % change $ in millions YoY QoQ vs. Prior Year Total Noninterest Noninterest expense down $12MM Expense $1,143 $1,229 $1,131 (1)% (8)% − Driven by ~$18MM reduction in other expense due to a $29M pre-tax charge from the FDIC $(3)(1) special assessment(1) in 1Q24 $29(1) − Partly o
Slide 10: Credit Quality
Credit Quality Net Charge-offs & Provision for Credit Losses Delinquencies to Period-end Total Loans $ in millions Continuing Operations 0.26% 0.27% 0.58% 0.43% 0.43% 0.22% 0.34% 0.20% 0.29% 0.17% $154 $101 $114 $110 $118 $81 $91 $100 $95 0.16% 0.13% $39 0.11% 0.09% 0.08% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q
Slide 11: Capital
Capital Common Equity Tier 1(1) Marked Common Equity Tier 1(2) ~150bps 11.9% 11.8% ~280bps 10.3% 10.5% 10.8% 9.9% 9.7% 8.6% 7.1% 7.3% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Tangible Common Equity Ratio(2) Projected AOCI Impacts (Forward Curve) $ in billions AOCI Position Forward Rates(3)
Slide 12: 2025 Outlook Remains Unchanged
2025 Outlook Remains Unchanged FY2025 (vs. FY2024) $ in millions, unless otherwise stated 2024 Baseline Ranges are shown on an operating basis Average Loans $107.7Bn down (2 – 5%) Ending Loans $104.3Bn Flat vs. YE 2024 PE Commercial Loans $71.9Bn up 2 – 4% Net Interest Income (TE) (1) $3,810 up ~20%
Slide 13: Appendix
Appendix
Slide 14: Balance Sheet Management Detail
Balance Sheet Management Detail Fixed-rate Asset Repricing Tailwinds – 2Q25 to 2026 Loan Composition(1) $ in billions 2Q25 3Q25 4Q25 2025 2026 Other 1% Projected receive-fixed swaps maturities $1.3 $0.4 $1.3 $3.0 $9.1 1M Weighted-average rate received (%) 2.17% 2.19% 1.96% 2.08% 2.78% SOFR Fixed 20%
Slide 15: Hedging Strategy Opportunity
Hedging Strategy Opportunity $ in billions; ending balances 1Q25 ALM Hedge Actions $33.1 Executed $2.5B of forward-starting receive-fixed swaps – WA receive rate: 4.0% that begin accruing from 3Q25 to $28.2 $26.2 1Q26 $23.5 $18.1 $16.5 Forward Starting Swaps as of 3/31 Receive-fixed Forward star
Slide 16: Credit Quality by Portfolio
Credit Quality by Portfolio Allowance for Credit Losses (ACL) Net Loan Charge-offs(1) to Average Loans (%)(2) $ in millions $1,823 $1,833 $1,774 $1,699 $1,707 4.70% 1.71% 1.66% 1.68% 1.63% 1.63% 0.40% 0.90% 0.99% 1Q24 2Q24 3Q24 4Q24 1Q25 -0.01% 0.00% -0.02% (3), (4) Allowance for Credit Losses Allow
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions 1Q25 4Q24 1Q24 Tangible common equity to tangible assets at period end Key shareholders’ equity (GAAP) $ 19,003 $ 18,176 $ 14,574 Less: Intangible assets 2,774 2,779 2,799 Preferred stock(1) 2,446 2,446 2,446 Tangible common equity (non-GAAP) $ 13,783 $
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions 1Q25 4Q24 1Q24 Pre-provision net revenue Net interest income (GAAP) $ 1,096 $ 1,051 $ 875 Plus: Taxable-equivalent adjustment 9 10 11 Noninterest income 668 (196) 647 Less: Noninterest expense 1,131 1,229 1,143 Pre-provision net revenue from continuing o
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in millions 1Q25 4Q24 1Q24 Adjusted taxable-equivalent revenue Noninterest income (GAAP) $ 668 $ (196) $ 647 Plus: Selected Items(1) - 918 - Adjusted noninterest income (non-GAAP) $ 668 $ 722 $ 647 Net interest income TE (non-GAAP) 1,105 1,061 886 Total adjusted tax
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation CET1 – AOCI Impact(1) ($ in millions) 1Q24 2Q24 3Q24 4Q24 1Q25 Common Equity Tier 1 (A) $ 14,821 $ 14,893 $ 15,043 $ 16,488 $ 16,549 Add: AFS and Pension accumulated other Comprehensive income (loss) (4,608) (4,530) (3,118) (3,032) (2,601) Adjusted Common Equity Tier
Slide 21: Selected Items Impact on Earnings
Selected Items Impact on Earnings Selected Items Impact on Earnings $ in millions, except per share amounts Pretax(1) After-tax at marginal rate(1) Quarter to date results Amount Net Income EPS(3)(5) Three months ended March 31, 2025 No items $ - $ - $ - Three months ended December 31, 2024 Loss on
Slide 22: Forward-looking Statements and Additional Information
Forward-looking Statements and Additional Information This communication 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