Business Segment Reporting

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business Segment Reporting

20. Business Segment Reporting

Consumer Bank

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

Commercial Bank

The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate bank focused principally on serving the needs of middle market clients in seven industry sectors: consumer, energy, healthcare, industrial, public sector, real estate, and technology. The Commercial operating segment is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS. The Institutional operating segment delivers a broad suite of banking and capital markets products to its clients, including syndicated finance, debt and equity capital markets, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance.

Other

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

The development and application of the methodologies that we use to allocate items among our business segments is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocations drivers, changes in the risk profile of a particular business, or changes in our organizational structure.

The table below shows selected financial data for our business segments for the three- and nine-month periods ended September 30, 2020, and September 30, 2019.

Three months ended September 30,	Consumer Bank						Commercial Bank						Other						Total Key
dollars in millions	2020			2019			2020			2019			2020			2019			2020			2019
SUMMARY OF OPERATIONS
Net interest income (TE)	$	604		$	595		$	421		$	399		$	(19)		$	(14)		$	1,006		$	980
Noninterest income	267			238			383			381			31			31			681			650
Total revenue (TE) (a)	871			833			804			780			12			17			1,687			1,630
Provision for credit losses	(16)			48			163			32			13			120			160			200
Depreciation and amortization expense	19			25			35			35			35			38			89			98
Other noninterest expense	552			504			408			343			(12)			(6)			948			841
Income (loss) from continuing operations before income taxes (TE)	316			256			198			370			(24)			(135)			490			491
Allocated income taxes and TE adjustments	75			60			38			69			(47)			(51)			66			78
Income (loss) from continuing operations	241			196			160			301			23			(84)			424			413
Income (loss) from discontinued operations, net of taxes	—			—			—			—			4			3			4			3
Net income (loss)	241			196			160			301			27			(81)			428			416
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—			—			—			—
Net income (loss) attributable to Key	$	241		$	196		$	160		$	301		$	27		$	(81)		$	428		$	416
AVERAGE BALANCES (b)
Loans and leases	$	41,471		$	32,760		$	62,925		$	58,215		$	523		$	981		$	104,919		$	91,956
Total assets (a)	44,888			36,397			72,613			66,549			51,310			41,212			168,811			144,158
Deposits	83,175			72,995			51,238			36,204			531			1,080			134,944			110,279
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	23		$	40		$	104		$	35		$	—		$	122		$	127		$	197
Return on average allocated equity (b)	27.03		%	23.22		%	12.57		%	26.18		%	1.00		%	(3.62)		%	9.51		%	9.57		%
Return on average allocated equity	27.03			23.22			12.57			26.18			1.18			(3.49)			9.60			9.64
Average full-time equivalent employees (c)	8,350			8,458			2,112			2,226			6,635			6,214			17,097			16,898

(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.

(b)From continuing operations.

(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.

Nine months ended September 30,	Consumer Bank						Commercial Bank						Other							Total Key
dollars in millions	2020			2019			2020			2019			2020				2019			2020			2019
SUMMARY OF OPERATIONS
Net interest income (TE)	$	1,788		$	1,780		$	1,285		$	1,206		$	(53)			$	(32)		$	3,020		$	2,954
Noninterest income	745			683			1,007			1,035			98				90			1,850			1,808
Total revenue (TE) (a)	2,533			2,463			2,292			2,241			45				58			4,870			4,762
Provision for credit losses	291			133			696			80			14				123			1,001			336
Depreciation and amortization expense	59			71			108			100			105				112			272			283
Other noninterest expense	1,610			1,547			1,131			1,051			(32)				40			2,709			2,638
Income (loss) from continuing operations before income taxes (TE)	573			712			357			1,010			(42)				(217)			888			1,505
Allocated income taxes and TE adjustments	136			169			32			190			(34)				(96)			134			263
Income (loss) from continuing operations	437			543			325			820			(8)				(121)			754			1,242
Income (loss) from discontinued operations, net of taxes	—			—			—			—			7				6			7			6
Net income (loss)	437			543			325			820			(1)				(115)			761			1,248
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—				—			—			—
Net income (loss) attributable to Key	$	437		$	543		$	325		$	820		$	(1)		(d)	$	(115)		$	761		$	1,248
AVERAGE BALANCES (b)
Loans and leases	$	38,632		$	31,993		$	63,679		$	57,803		$	707			$	1,009		$	103,018		$	90,805
Total assets (a)	42,481			35,524			72,988			65,781			44,277				41,014			159,746			142,319
Deposits	78,682			72,201			45,082			35,534			691				1,427			124,455			109,162
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	106		$	114		$	201		$	88		1				124			$	308		$	326
Return on average allocated equity (b)	16.69		%	22.24		%	8.93		%	24.15		%	(.12)		%		(1.87)		%	5.74		%	10.09		%
Return on average allocated equity	16.69			22.24			8.93			24.15			(.01)				(1.78)			5.79			10.14
Average full-time equivalent employees (c)	8,198			8,682			2,092			2,285			6,468				6,250			16,758			17,217

(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.

(b)From continuing operations.

(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.