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Business Segment Reporting
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Business Segment Reporting
25. Business Segment Reporting

The following is a description of the segments and their primary businesses at December 31, 2021.

Consumer Bank

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

Commercial Bank

The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate bank focused principally on serving the 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 represent the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also include intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

The table on the following page shows selected financial data for our major business segments for the years ended December 31, 2021, 2020, and 2019.

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

The selected financial data is based on internal accounting policies designed to compile results on a consistent basis and in a manner that reflects the underlying economics of the businesses. In accordance with our policies:
 
•Net interest income is determined by assigning a standard cost for funds used or a standard credit for funds provided based on their assumed maturity, prepayment, and/or repricing characteristics.
•Indirect expenses, such as computer servicing costs and corporate overhead, are allocated based on assumptions regarding the extent that each line of business actually uses the services.
•The consolidated provision for credit losses is allocated among the lines of business primarily based on their actual net loan charge-offs, adjusted periodically for loan growth and changes in risk profile. The amount of the consolidated provision is based on the methodology that we use to estimate our consolidated ALLL. This methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses.”
•Capital is assigned to each line of business based on economic equity.
 
Developing and applying the methodologies that we use to allocate items among our lines of business is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocation drivers, changes in the risk profile of a particular business, or changes in our organizational structure.
Year ended December 31,
Consumer BankCommercial Bank
Dollars in millions202120202019202120202019
SUMMARY OF OPERATIONS
Net interest income (TE)
$2,357 $2,403 $2,335 $1,655 $1,725 $1,651 
Noninterest income
1,068 999 917 1,989 1,524 1,395 
Total revenue (TE) (a)
3,425 3,402 3,252 3,644 3,249 3,046 
Provision for credit losses
(118)284 186 (279)741 120 
Depreciation and amortization expense
84 77 91 134 144 135 
Other noninterest expense
2,306 2,185 2,062 1,731 1,606 1,424 
Income (loss) from continuing operations before income taxes (TE)
1,153 856 913 2,058 758 1,367 
Allocated income taxes (benefit) and TE adjustments
277 203 216 413 107 223 
Income (loss) from continuing operations
876 653 697 1,645 651 1,144 
Income (loss) from discontinued operations, net of taxes
— — — — — — 
Net income (loss)
876 653 697 1,645 651 1,144 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — 
Net income (loss) attributable to Key
$876 $653 $697 $1,645 $651 $1,144 
AVERAGE BALANCES (b)
     
Loans and leases
$39,356 $37,842 $30,571 $60,552 $64,543 $60,417 
Total assets (a)
42,572 41,152 34,111 70,117 74,225 68,562 
Deposits
88,235 79,528 72,384 55,715 47,145 36,372 
OTHER FINANCIAL DATA
Expenditures for additions to long-lived assets (a), (b)
$39 $40 $150 $12 $1 $(8)
Net loan charge-offs (b)
126 135 157 81 308 128 
Return on average allocated equity (b)
24.54 %18.97 %21.59 %19.52 %12.99 %24.54 %
Return on average allocated equity
24.54 18.97 21.59 19.52 12.99 24.54 
Average full-time equivalent employees (c)
8,000 8,186 8,540 2,370 2,291 2,438 
Year ended December 31,OtherKey
Dollars in millions202120202019202120202019
SUMMARY OF OPERATIONS
Net interest income (TE)$86 $(65)$(45)$4,098 $4,063 $3,941 
Noninterest income137 129 147 3,194 2,652 2,459 
Total revenue (TE) (a)
223 64 102 7,292 6,715 6,400 
Provision for credit losses(21)(4)139 (418)1,021 445 
Depreciation and amortization expense80 82 87 298 303 313 
Other noninterest expense94 15 102 4,131 3,806 3,588 
Income (loss) from continuing operations before income taxes (TE)70 (29)(226)3,281 1,585 2,054 
Allocated income taxes (benefit) and TE adjustments(21)(54)(93)669 256 346 
Income (loss) from continuing operations91 25 (133)2,612 1,329 1,708 
Income (loss) from discontinued operations, net of taxes13 14 9 13 14 9 
Net income (loss)104 39 (124)2,625 1,343 1,717 
Less: Net income (loss) attributable to noncontrolling interests— — — — — — 
Net income (loss) attributable to Key$104 $39 $(124)
 (d)
$2,625 $1,343 $1,717 
AVERAGE BALANCES (b)
Loans and leases$361 $304 $523 $100,269 $102,689 $91,511 
Total assets (a)
66,230 46,678 40,506 178,919 162,055 143,179 
Deposits1,085 613 1,274 145,035 127,286 110,030 
OTHER FINANCIAL DATA
Expenditures for additions to long-lived assets (a), (b)
$63 $120 $103 $114 $161 $245 
Net loan charge-offs (b)
(22)1 147 185 444 432 
Return on average allocated equity (b)
1.61 %.27 %(1.52)%14.79 %7.54 %10.27 %
Return on average allocated equity1.84 .42 (1.42)14.86 7.62 10.32 
Average full-time equivalent employees (c)
6,604 6,349 6,067 16,974 16,826 17,045 
(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.
(d)Other segments included $106 million provision for credit loss, net of tax, related to a previously disclosed fraud incident.