8-K

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 20, 2023

KeyCorp

(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 20, 2023, KeyCorp issued a press release announcing its financial results for the three- and six-month period ended June 30, 2023 (the “Press Release”), and posted on its website its second quarter 2023 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 20, 2023, announcing financial results for the three- and six-month period ended June 30, 2023

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 20, 2023	/s/ Douglas M. Schosser
	By: Douglas M. Schosser
	Chief Accounting Officer

EX-99.1

KEYCORP REPORTS SECOND QUARTER 2023 NET INCOME OF $250 MILLION,

OR $.27PER DILUTED COMMON SHARE

Strong, core funded balance sheet: period-end deposits up $1.0 billion compared to the prior quarter

Solid credit quality: net charge-offs to average loans of 17 basis points

Built capital: Common Equity Tier 1 of 9.2%(a)

Disciplined expense management: expenses down 9% from prior quarter and relatively stable versus the year-ago period

Net income includes $87 million, or $.09 per share from allowance build

    CLEVELAND, July 20, 2023 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $250 million, or $.27 per diluted common share for the second quarter of 2023. This compared to $275 million, or $.30 per diluted common share, for the first quarter of 2023 and $504 million, or $.54 per diluted common share, for the second quarter of 2022.

Comments from Chairman and CEO, Chris Gorman

"Key’s second quarter results reflect our durable relationship-based business model, sound risk management, and strong balance sheet. Our longstanding commitment to primacy continues to serve us well, resulting in period-end deposit growth of $1 billion from the prior quarter.

Additionally, our results demonstrate our ongoing commitment to expense discipline. Expenses were down nearly 9% from the prior quarter, and stable compared to last year. We remain focused on improving productivity and efficiency across our businesses.

Credit quality continues to be a strength for Key, with net charge-offs to average loans of 17 basis points. In the second quarter, we added to our allowance, which represents over 7 years of annualized net charge-offs.

We continue to manage capital consistent with our capital priorities, which include supporting our relationship clients and dividends. At the end of the second quarter, Key’s Common Equity Tier 1 ratio was 9.2%, up over 10 basis points from the prior quarter.

I am confident in the long-term outlook for Key and in our ability to deliver value to all of our stakeholders.”

(a)June 30, 2023 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 2

Selected Financial Highlights
Dollars in millions, except per share data										Change 2Q23 vs.
	2Q23			1Q23			2Q22			1Q23		2Q22
Income (loss) from continuing operations attributable to Key common shareholders	$	250		$	275		$	504		(9.1)	%	(50.4)	%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution	.27			.30			.54			(10.0)		(50.0)
Return on average tangible common equity from continuing operations (a)	11.04		%	13.16		%	20.90		%	N/A		N/A
Return on average total assets from continuing operations	.58			.66			1.16			N/A		N/A
Common Equity Tier 1 ratio (b)	9.2			9.1			9.2			N/A		N/A
Book value at period end	$	12.18		$	12.70		$	13.48		(4.1)		(9.6)
Net interest margin (TE) from continuing operations	2.12		%	2.47		%	2.61		%	N/A		N/A

(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “Return on average tangible common equity from continuing operations.” 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, 2023 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millions							Change 2Q23 vs.
	2Q23		1Q23		2Q22		1Q23		2Q22
Net interest income (TE)	$	986	$	1,106	$	1,104	(10.8)	%	(10.7)	%
Noninterest income	609		608		688		.2		(11.5)
Total revenue	$	1,595	$	1,714	$	1,792	(6.9)	%	(11.0)	%

TE = Taxable Equivalent

Taxable-equivalent net interest income was $986 million for the second quarter of 2023 and the net interest margin was 2.12%. Compared to the second quarter of 2022, net interest income decreased $118 million, and the net interest margin decreased by 49 basis points. The decline in net interest income and the net interest margin reflects higher interest-bearing deposit costs and a shift in funding mix to higher cost deposits and borrowings.

Compared to the first quarter of 2023, taxable-equivalent net interest income decreased by $120 million, and the net interest margin decreased by 35 basis points. The decline in net interest income and the net interest margin reflects higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits and borrowings.

Noninterest Income
Dollars in millions							Change 2Q23 vs.
	2Q23		1Q23		2Q22		1Q23		2Q22
Trust and investment services income	$	126	$	128	$	137	(1.6)	%	(8.0)	%
Investment banking and debt placement fees	120		145		149		(17.2)		(19.5)
Cards and payments income	85		81		85		4.9		—
Service charges on deposit accounts	69		67		96		3.0		(28.1)
Corporate services income	86		76		96		13.2		(10.4)
Commercial mortgage servicing fees	50		46		45		8.7		11.1
Corporate-owned life insurance income	32		29		35		10.3		(8.6)
Consumer mortgage income	14		11		14		27.3		—
Operating lease income and other leasing gains	23		25		28		(8.0)		(17.9)
Other income	4		—		3		N/M		(33.3)
Total noninterest income	$	609	$	608	$	688	.2	%	(11.5)	%

Compared to the second quarter of 2022, noninterest income decreased by $79 million. The decrease was driven by a $29 million decline in investment banking and debt placement fees, reflecting lower merger

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 3

and acquisition advisory fees and lower syndication fees. Service charges on deposit accounts decreased $27 million, reflecting a reduction in overdraft and non-sufficient funds fees and lower account analysis fees related to the interest rate environment. Additionally, trust and investment services declined $11 million, reflecting a decline in fixed income and equity trading, and corporate services income decreased $10 million.

Compared to the first quarter of 2023, noninterest income increased by $1 million. The increase was driven by broad-based growth across most fee categories, including a $10 million increase in corporate services income, reflecting an increase in income associated with customer derivatives trading. These increases were mostly offset by a $25 million decline in investment banking and debt placement fees due to lower merger and acquisition advisory fees and lower syndication fees.

Noninterest Expense
Dollars in millions							Change 2Q23 vs.
	2Q23		1Q23		2Q22		1Q23		2Q22
Personnel expense	$	622	$	701	$	607	(11.3)	%	2.5	%
Net occupancy	65		70		78		(7.1)		(16.7)
Computer processing	95		92		78		3.3		21.8
Business services and professional fees	41		45		52		(8.9)		(21.2)
Equipment	22		22		26		—		(15.4)
Operating lease expense	21		20		27		5.0		(22.2)
Marketing	29		21		34		38.1		(14.7)
Other expense	181		205		176		(11.7)		2.8
Total noninterest expense	$	1,076	$	1,176	$	1,078	(8.5)	%	(.2)	%

Compared to the second quarter of 2022, noninterest expense decreased by $2 million. The decline was driven by a $13 million decrease in net occupancy expense as we exit corporate facilities and a $11 million decline in business services and professional fees. Partly offsetting the decline was an increase in computer processing expense of $17 million, due to technology investments, and a $15 million increase in personnel expense, due to an increase in salaries as a result of higher merit increases and employee benefits.

    Compared to the first quarter of 2023, noninterest expense decreased $100 million. The decline was primarily driven by a $79 million decrease in personnel expense, reflective of lower incentive and stock-based compensation and a decline in severance expense. Additionally, other expense declined by $24 million, reflecting higher expenses related to corporate real estate rationalization in the prior quarter.

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millions							Change 2Q23 vs.
	2Q23		1Q23		2Q22		1Q23		2Q22
Commercial and industrial (a)	$	61,426	$	60,281	$	53,858	1.9	%	14.1	%
Other commercial loans	22,623		22,778		21,173		(.7)		6.8
Total consumer loans	36,623		36,778		34,107		(.4)		7.4
Total loans	$	120,672	$	119,837	$	109,138	.7	%	10.6	%

(a)Commercial and industrial average loan balances include $194 million, $178 million, and $153 million of assets from commercial credit cards at June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

Average loans were $120.7 billion for the second quarter of 2023, an increase of $11.5 billion compared to the second quarter of 2022. Commercial loans increased by $9.0 billion, largely reflecting growth in commercial and industrial loans of $7.6 billion, as well as an increase in commercial mortgage real estate loans of $1.5 billion. Consumer loans increased $2.5 billion, largely driven by Key's residential mortgage business.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 4

Compared to the first quarter of 2023, average loans increased by $835 million. The increase was driven by commercial loans, reflecting growth in commercial and industrial loans.

Average Deposits
Dollars in millions										Change 2Q23 vs.
	2Q23			1Q23			2Q22			1Q23		2Q22
Non-time deposits	$	127,687		$	132,907		$	144,012		(3.9)	%	(11.3)	%
Certificates of deposit ($100,000 or more)	3,851			2,392			1,487			61.0		159.0
Other time deposits	11,365			8,106			1,972			40.2		476.3
Total deposits	$	142,903		$	143,405		$	147,471		(.4)	%	(3.1)	%
Cost of total deposits	1.49		%	.99		%	.06		%	N/A		N/A

N/A = Not Applicable

Average deposits totaled $142.9 billion for the second quarter of 2023, a decrease of $4.6 billion compared to the year-ago quarter. The decline reflects elevated inflation-related spend, changing client behavior due to higher interest rates, and a normalization of pandemic-related deposits.

Compared to the first quarter of 2023, average deposits decreased by $502 million. The decline was driven by changing client behavior due to higher interest rates and normal seasonal deposit outflows in commercial deposits.

ASSET QUALITY
Dollars in millions										Change 2Q23 vs.
	2Q23			1Q23			2Q22			1Q23		2Q22
Net loan charge-offs	$	52		$	45		$	44		15.6	%	18.2	%
Net loan charge-offs to average total loans	.17		%	.15		%	.16		%	N/A		N/A
Nonperforming loans at period end	$	431		$	416		$	429		3.6		0.5
Nonperforming assets at period end	462			447			463			3.4		(0.2)
Allowance for loan and lease losses	1,480			1,380			1,099			7.2		34.7
Allowance for credit losses	1,771			1,656			1,272			6.9		39.2
Provision for credit losses	167			139			45			20.1		271.1
Allowance for loan and lease losses to nonperforming loans	343		%	332		%	256		%	N/A		N/A
Allowance for credit losses to nonperforming loans	411			398			297			N/A		N/A

N/A = Not Applicable

    Key's provision for credit losses was $167 million, compared to $45 million in the second quarter of 2022 and $139 million in the first quarter of 2023. The increase from the year-ago period and prior quarter reflects changes in the economic outlook and portfolio activity.

    Net loan charge-offs for the second quarter of 2023 totaled $52 million, or 0.17% of average total loans. These results compare to $44 million, or 0.16%, for the second quarter of 2022 and $45 million, or 0.15%, for the first quarter of 2023. Key’s allowance for credit losses was $1.8 billion, or 1.49% of total period-end loans at June 30, 2023, compared to 1.13% at June 30, 2022, and 1.38% at March 31, 2023.

At June 30, 2023, Key’s nonperforming loans totaled $431 million, which represented 0.36% of period-end portfolio loans. These results compare to 0.38% at June 30, 2022, and 0.35% at March 31, 2023. Nonperforming assets at June 30, 2023, totaled $462 million, and represented 0.39% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.41% at June 30, 2022, and 0.37% at March 31, 2023.

CAPITAL

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2023.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

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Capital Ratios
	6/30/2023		3/31/2023		6/30/2022
Common Equity Tier 1 (a)	9.2	%	9.1	%	9.2	%
Tier 1 risk-based capital (a)	10.7		10.6		10.4
Total risk-based capital (a)	13.0		12.8		12.0
Tangible common equity to tangible assets (b)	4.5		4.6		5.3
Leverage (a)	8.7		8.8		8.6

(a)June 30, 2023 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

(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 capital position remained strong in the second quarter of 2023. As shown in the preceding table, at June 30, 2023, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.2% and 10.7%, respectively. Key's tangible common equity ratio was 4.5% at June 30, 2023.

Key elected the CECL phase-in option provided by regulatory guidance which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022. Effective for the first quarter 2022, Key is now in the three-year transition period. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by eight basis points.

Summary of Changes in Common Shares Outstanding
In thousands					Change 2Q23 vs.
		2Q23	1Q23	2Q22	1Q23		2Q22
Shares outstanding at beginning of period		935,229	933,325	932,398	.2	%	.3	%
Open market repurchases and return of shares under employee compensation plans		(38)	(4,333)	(24)	(99.1)		58.3
Shares issued under employee compensation plans (net of cancellations)		542	6,237	269	(91.3)		101.5
	Shares outstanding at end of period	935,733	935,229	932,643	.1	%	.3	%

N/M = Not Meaningful

    During the second quarter of 2023, Key declared a dividend of $.205 per common share. Additionally, we have $752 million remaining in our share repurchase authorization through the third quarter of 2023.

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.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 6

Major Business Segments
Dollars in millions								Change 2Q23 vs.
		2Q23		1Q23		2Q22		1Q23		2Q22
Revenue from continuing operations (TE)
Consumer Bank		$	803	$	840	$	858	(4.4)	%	(6.4)	%
Commercial Bank		805		844		874		(4.6)		(7.9)
Other (a)		(13)		30		60		(143.3)		(121.7)
	Total	$	1,595	$	1,714	$	1,792	(6.9)	%	(11.0)	%
Income (loss) from continuing operations attributable to Key
Consumer Bank		$	82	$	89	$	128	(7.9)	%	(35.9)	%
Commercial Bank		214		255		340		(16.1)		(37.1)
Other (a)		(10)		(33)		62		69.7		(116.1)
	Total	$	286	$	311	$	530	(8.0)	%	(46.0)	%

(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 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 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

Consumer Bank
Dollars in millions							Change 2Q23 vs.
	2Q23		1Q23		2Q22		1Q23		2Q22
Summary of operations
Net interest income (TE)	$	558	$	612	$	604	(8.8)	%	(7.6)	%
Noninterest income	245		228		254		7.5		(3.5)
Total revenue (TE)	803		840		858		(4.4)		(6.4)
Provision for credit losses	32		60		8		(46.7)		300.0
Noninterest expense	663		663		681		—		(2.6)
Income (loss) before income taxes (TE)	108		117		169		(7.7)		(36.1)
Allocated income taxes (benefit) and TE adjustments	26		28		41		(7.1)		(36.6)
Net income (loss) attributable to Key	$	82	$	89	$	128	(7.9)	%	(35.9)	%
Average balances
Loans and leases	$	42,934	$	43,086	$	40,827	(.4)	%	5.2	%
Total assets	45,761		45,935		43,897		(.4)		4.2
Deposits	82,498		84,637		91,394		(2.5)		(9.7)
Assets under management at period end	$	53,952	$	53,689	$	49,003	.5	%	10.1	%

TE = Taxable Equivalent

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

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Additional Consumer Bank Data
Dollars in millions							Change 2Q23 vs.
	2Q23		1Q23		2Q22		1Q23		2Q22
Noninterest income
Trust and investment services income	$	101	$	101	$	104	—	%	(2.9)	%
Service charges on deposit accounts	41		38		59		7.9		(30.5)
Cards and payments income	66		61		62		8.2		6.5
Consumer mortgage income	14		11		14		27.3		—
Other noninterest income	23		17		15		35.3		53.3
Total noninterest income	$	245	$	228	$	254	7.5	%	(3.5)	%
Average deposit balances
Money market deposits	$	27,340	$	28,128	$	31,986	(2.8)	%	(14.5)	%
Demand deposits	23,845		24,849		25,905		(4.0)		(8.0)
Savings deposits	6,298		7,025		7,515		(10.3)		(16.2)
Certificates of deposit ($100,000 or more)	3,550		2,182		1,375		62.7		158.2
Other time deposits	2,864		2,169		1,966		32.0		45.7
Noninterest-bearing deposits	18,601		20,284		22,647		(8.3)		(17.9)
Total deposits	$	82,498	$	84,637	$	91,394	(2.5)	%	(9.7)	%
Other data
Branches	965		972		993
Automated teller machines	1,255		1,265		1,308

Consumer Bank Summary of Operations (2Q23 vs. 2Q22)

•Key's Consumer Bank recorded net income attributable to Key of $82 million for the second quarter of 2023, compared to $128 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $46 million, or 7.6%, compared to the second quarter of 2022, driven by higher interest-bearing deposit costs and a shift in funding mix

•Average loans and leases increased $2.1 billion, or 5.2%, from the second quarter of 2022, driven by growth in consumer mortgage loans

•Average deposits decreased $8.9 billion, or 9.7%, from the second quarter of 2022, reflecting elevated inflation-related spend, changing client behavior due to higher interest rates, and a normalization of pandemic-related deposits

•Provision for credit losses increased $24 million compared to the second quarter of 2022, driven by increases in both the allowance for credit losses and net loan charge-offs

•Noninterest income decreased $9 million from the year-ago quarter, driven by lower service charges on deposit accounts due to a planned reduction in overdraft and non-sufficient funds fees

•Noninterest expense decreased $18 million from the year-ago quarter, reflecting lower incentive compensation and employee benefits from the prior period, partly offset by an increase in salaries

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

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Commercial Bank
Dollars in millions							Change 2Q23 vs.
	2Q23		1Q23		2Q22		1Q23		2Q22
Summary of operations
Net interest income (TE)	$	459	$	478	$	470	(4.0)	%	(2.3)	%
Noninterest income	346		366		404		(5.5)		(14.4)
Total revenue (TE)	805		844		874		(4.6)		(7.9)
Provision for credit losses	134		80		37		67.5		262.2
Noninterest expense	405		442		411		(8.4)		(1.5)
Income (loss) before income taxes (TE)	266		322		426		(17.4)		(37.6)
Allocated income taxes and TE adjustments	52		67		86		(22.4)		(39.5)
Net income (loss) attributable to Key	$	214	$	255	$	340	(16.1)	%	(37.1)	%
Average balances
Loans and leases	$	77,277	$	76,306	$	67,825	1.3	%	13.9	%
Loans held for sale	1,014		876		1,016		15.8		(0.2)
Total assets	87,106		85,852		78,816		1.5		10.5
Deposits	51,420		52,219		54,846		(1.5)	%	(6.2)	%

TE = Taxable Equivalent

Additional Commercial Bank Data
Dollars in millions							Change 2Q23 vs.
	2Q23		1Q23		2Q22		1Q23		2Q22
Noninterest income
Trust and investment services income	$	25	$	27	$	33	(7.4)	%	(24.2)	%
Investment banking and debt placement fees	120		145		150		(17.2)		(20.0)
Cards and payments income	22		20		23		10.0		(4.3)
Service charges on deposit accounts	27		27		36		—		(25.0)
Corporate services income	77		69		87		11.6		(11.5)
Commercial mortgage servicing fees	50		46		45		8.7		11.1
Operating lease income and other leasing gains	24		24		27		—		(11.1)
Other noninterest income	1		8		3		(87.5)		(66.7)
Total noninterest income	$	346	$	366	$	404	(5.5)	%	(14.4)	%

Commercial Bank Summary of Operations (2Q23 vs. 2Q22)

•Key's Commercial Bank recorded net income attributable to Key of $214 million for the second quarter of 2023 compared to $340 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $11 million, or 2.3%, compared to the second quarter of 2022, primarily reflecting higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits

•Average loan and lease balances increased $9.5 billion, or 13.9%, compared to the second quarter of 2022, reflecting growth in commercial and industrial loans and an increase in commercial mortgage real estate loans

•Average deposit balances decreased $3.4 billion compared to the second quarter of 2022, reflecting changing client behavior due to higher interest rates

•Provision for credit losses increased $97 million compared to the second quarter of 2022, driven by higher allowance for credit losses due to changes in the economic outlook and portfolio activity

•Noninterest income decreased $58 million from the year-ago quarter, primarily driven by lower investment banking and debt placement fees reflecting lower merger and acquisition advisory fees and lower syndication fees, as well as a decrease in corporate services income

•Noninterest expense decreased $6 million from the second quarter of 2022, primarily driven by a decline in incentive compensation

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 9

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

KeyCorp's roots trace back nearly 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 $195 billion at June 30, 2023.

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 1,000 branches and approximately 1,300 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 is Member FDIC.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 10

CONTACTS:
ANALYSTS	MEDIA
Vernon L. Patterson	Susan Donlan
216.689.0520	216.471.3133
Vernon_Patterson@KeyBank.com	Susan_E_Donlan@KeyBank.com
Adrienne Atkinson	Beth Strauss
216.689.4030	216.471.2787
Adrienne.Atkinson@key.com	Beth_A_Strauss@KeyBank.com
Halle A. Nichols	Twitter: @keybank
216.471.2184
Halle_A_Nichols@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, 2022, Form 10-Q for the quarter ended March 31, 2023, as well as 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, deterioration of commercial real estate market fundamentals, 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.

Notes to Editors:

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/irat 10:00 a.m. ET, on July 20, 2023. A replay of the call will be available through July 29, 2023.

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 2023 Profit     

July 20, 2023

Page 11

KeyCorp

Second Quarter 2023

Financial Supplement

Page
12	Basis of Presentation
13	Financial Highlights
15	GAAP to Non-GAAP Reconciliation
17	Consolidated Balance Sheets
18	Consolidated Statements of Income
19	Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
21	Noninterest Expense
21	Personnel Expense
22	Loan Composition
22	Loans Held for Sale Composition
22	Summary of Changes in Loans Held for Sale
23	Summary of Loan and Lease Loss Experience From Continuing Operations
24	Asset Quality Statistics From Continuing Operations
24	Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
24	Summary of Changes in Nonperforming Loans From Continuing Operations
25	Line of Business Results

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

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).

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, with this then being the amount used to calculate the earnings per share equivalent.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 13

Financial Highlights
(Dollars in millions, except per share amounts)
			Three months ended
			6/30/2023			3/31/2023			6/30/2022
Summary of operations
	Net interest income (TE)		$	986		$	1,106		$	1,104
	Noninterest income		609			608			688
		Total revenue (TE)	1,595			1,714			1,792
	Provision for credit losses		167			139			45
	Noninterest expense		1,076			1,176			1,078
	Income (loss) from continuing operations attributable to Key		286			311			530
	Income (loss) from discontinued operations, net of taxes		1			1			3
	Net income (loss) attributable to Key		287			312			533
	Income (loss) from continuing operations attributable to Key common shareholders		250			275			504
	Income (loss) from discontinued operations, net of taxes		1			1			3
	Net income (loss) attributable to Key common shareholders		251			276			507
Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	.27		$	.30		$	.54
	Income (loss) from discontinued operations, net of taxes		—			—			—
	Net income (loss) attributable to Key common shareholders (a)		.27			.30			.55
	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution		.27			.30			.54
	Income (loss) from discontinued operations, net of taxes — assuming dilution		—			—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)		.27			.30			.54
	Cash dividends declared		.205			.205			.195
	Book value at period end		12.18			12.70			13.48
	Tangible book value at period end		9.16			9.67			10.40
	Market price at period end		9.24			12.52			17.23
Performance ratios
	From continuing operations:
	Return on average total assets		.58		%	.66		%	1.16		%
	Return on average common equity		8.42			9.85			16.17
	Return on average tangible common equity (b)		11.04			13.16			20.90
	Net interest margin (TE)		2.12			2.47			2.61
	Cash efficiency ratio (b)		66.8			68.0			59.5
	From consolidated operations:
	Return on average total assets		.58		%	.66		%	1.16		%
	Return on average common equity		8.45			9.89			16.27
	Return on average tangible common equity (b)		11.09			13.21			21.03
	Net interest margin (TE)		2.12			2.47			2.60
	Loan to deposit (c)		83.0			84.4			78.3
Capital ratios at period end
	Key shareholders’ equity to assets		7.1		%	7.3		%	7.7		%
	Key common shareholders’ equity to assets		5.8			6.0			6.7
	Tangible common equity to tangible assets (b)		4.5			4.6			5.3
	Common Equity Tier 1 (d)		9.2			9.1			9.2
	Tier 1 risk-based capital (d)		10.7			10.6			10.4
	Total risk-based capital (d)		13.0			12.8			12.0
	Leverage (d)		8.7			8.8			8.6
Asset quality — from continuing operations
	Net loan charge-offs		$	52		$	45		$	44
	Net loan charge-offs to average loans		.17		%	.15		%	.16		%
	Allowance for loan and lease losses		$	1,480		$	1,380		$	1,099
	Allowance for credit losses		1,771			1,656			1,272
	Allowance for loan and lease losses to period-end loans		1.24		%	1.15		%	.98		%
	Allowance for credit losses to period-end loans		1.49			1.38			1.13
	Allowance for loan and lease losses to nonperforming loans		343			332			256
	Allowance for credit losses to nonperforming loans		411			398			297
	Nonperforming loans at period-end		$	431		$	416		$	429
	Nonperforming assets at period-end		462			447			463
	Nonperforming loans to period-end portfolio loans		.36		%	.35		%	.38		%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.39			.37			.41
Trust assets
	Assets under management		$	53,952		$	53,689		$	49,003
Other data
	Average full-time equivalent employees		17,754			18,220			17,414
	Branches		965			971			978
	Taxable-equivalent adjustment		$	8		$	7		$	7

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 14

Financial Highlights (continued)
(Dollars in millions, except per share amounts)
		Six months ended
		6/30/2023			6/30/2022
Summary of operations
	Net interest income (TE)	$	2,092		$	2,124
	Noninterest income	1,217			1,364
	Total revenue (TE)	3,309			3,488
	Provision for credit losses	306			128
	Noninterest expense	2,252			2,148
	Income (loss) from continuing operations attributable to Key	597			977
	Income (loss) from discontinued operations, net of taxes	2			4
	Net income (loss) attributable to Key	599			981
	Income (loss) from continuing operations attributable to Key common shareholders	525			924
	Income (loss) from discontinued operations, net of taxes	2			4
	Net income (loss) attributable to Key common shareholders	527			928
Per common share
	Income (loss) from continuing operations attributable to Key common shareholders	$	.57		$	1.00
	Income (loss) from discontinued operations, net of taxes	—			—
	Net income (loss) attributable to Key common shareholders (a)	.57			1.00
	Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	.56			.99
	Income (loss) from discontinued operations, net of taxes — assuming dilution	—			—
	Net income (loss) attributable to Key common shareholders — assuming dilution (a)	.57			1.00
	Cash dividends paid	.41			.39
Performance ratios
	From continuing operations:
	Return on average total assets	.62		%	1.08		%
	Return on average common equity	9.11			13.62
	Return on average tangible common equity (b)	12.06			17.15
	Net interest margin (TE)	2.29			2.53
	Cash efficiency ratio (b)	67.5			60.9
	From consolidated operations:
	Return on average total assets	.62		%	1.08		%
	Return on average common equity	9.15			13.68
	Return on average tangible common equity (b)	12.10			17.23
	Net interest margin (TE)	2.29			2.53
Asset quality — from continuing operations
	Net loan charge-offs	$	97		$	77
	Net loan charge-offs to average total loans	.16		%	.15		%
Other data
	Average full-time equivalent employees	17,987			17,262
Taxable-equivalent adjustment		15			13

(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.

(c)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.

(d)June 30, 2023, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 15

GAAP to Non-GAAP Reconciliations

(Dollars in millions)

The table below presents certain non-GAAP financial measures related to “tangible common equity,” “return on average tangible common equity,” “pre-provision net revenue," and “cash efficiency ratio."

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.

The table also shows the computation for pre-provision net revenue, which is 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.

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.

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
	6/30/2023			3/31/2023			6/30/2022			6/30/2023			6/30/2022
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)	$	13,844		$	14,322		$	14,427
Less: Intangible assets (a)	2,826			2,836			2,868
Preferred Stock (b)	2,446			2,446			1,856
Tangible common equity (non-GAAP)	$	8,572		$	9,040		$	9,703
Total assets (GAAP)	$	195,037		$	197,519		$	187,008
Less: Intangible assets (a)	2,826			2,836			2,868
Tangible assets (non-GAAP)	$	192,211		$	194,683		$	184,140
Tangible common equity to tangible assets ratio (non-GAAP)	4.46		%	4.64		%	5.27		%
Pre-provision net revenue
Net interest income (GAAP)	$	978		$	1,099		$	1,097		$	2,077		$	2,111
Plus: Taxable-equivalent adjustment	8			7			7			15			13
Noninterest income	609			608			688			1,217			1,364
Less: Noninterest expense	1,076			1,176			1,078			2,252			2,148
Pre-provision net revenue from continuing operations (non-GAAP)	$	519		$	538		$	714		$	1,057		$	1,340
Average tangible common equity
Average Key shareholders' equity (GAAP)	$	14,412		$	13,817		$	14,398		$	14,116		$	15,583
Less: Intangible assets (average) (c)	2,831			2,841			2,827			2,836			2,821
Preferred stock (average)	2,500			2,500			1,900			2,500			1,900
Average tangible common equity (non-GAAP)	$	9,081		$	8,476		$	9,671		$	8,780		$	10,862
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	250		$	275		$	504		$	525		$	924
Average tangible common equity (non-GAAP)	9,081			8,476			9,671			8,780			10,862
Return on average tangible common equity from continuing operations (non-GAAP)	11.04		%	13.16		%	20.90		%	12.06		%	17.15		%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	251		$	276		$	507		$	527		$	928
Average tangible common equity (non-GAAP)	9,081			8,476			9,671			8,780			10,862
Return on average tangible common equity consolidated (non-GAAP)	11.09		%	13.21		%	21.03		%	12.10		%	17.23		%

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 16

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
	Three months ended									Six months ended
	6/30/2023			3/31/2023			6/30/2022			6/30/2023			6/30/2022
Cash efficiency ratio
Noninterest expense (GAAP)	$	1,076		$	1,176		$	1,078		$	2,252		$	2,148
Less: Intangible asset amortization	10			10			12			20			23
Adjusted noninterest expense (non-GAAP)	$	1,066		$	1,166		$	1,066		$	2,232		$	2,125
Net interest income (GAAP)	$	978		$	1,099		$	1,097		$	2,077		$	2,111
Plus: Taxable-equivalent adjustment	8			7			7			15			13
Noninterest income	609			608			688			1,217			1,364
Total taxable-equivalent revenue (non-GAAP)	$	1,595		$	1,714		$	1,792		$	3,309		$	3,488
Cash efficiency ratio (non-GAAP)	66.8		%	68.0		%	59.5		%	67.5		%	60.9		%

(a)For the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, intangible assets exclude $1 million, $1 million, and $2 million, respectively, of period-end purchased credit card receivables.

(b)Net of capital surplus.

(c)For the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, average intangible assets exclude $1 million, $1 million, and $2 million, respectively, of average purchased credit card receivables.

GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 17

Consolidated Balance Sheets
(Dollars in millions)
			6/30/2023		3/31/2023		6/30/2022
Assets
	Loans		$	119,011	$	119,971	$	112,390
	Loans held for sale		1,130		1,211		1,306
	Securities available for sale		37,908		39,498		42,437
	Held-to-maturity securities		9,189		9,561		8,186
	Trading account assets		1,177		1,118		809
	Short-term investments		8,959		8,410		2,456
	Other investments		1,474		1,587		969
		Total earning assets	178,848		181,356		168,553
	Allowance for loan and lease losses		(1,480)		(1,380)		(1,099)
	Cash and due from banks		758		784		678
	Premises and equipment		652		628		638
	Goodwill		2,752		2,752		2,752
	Other intangible assets		75		85		118
	Corporate-owned life insurance		4,378		4,372		4,343
	Accrued income and other assets		8,668		8,512		10,529
	Discontinued assets		386		410		496
		Total assets	$	195,037	$	197,519	$	187,008
Liabilities
	Deposits in domestic offices:
		Interest-bearing deposits	111,766		106,841		94,892
		Noninterest-bearing deposits	33,366		37,307		50,973
		Total deposits	145,132		144,148		145,865
	Federal funds purchased and securities sold under repurchase agreements		1,702		1,374		3,234
	Bank notes and other short-term borrowings		6,949		10,061		2,809
	Accrued expense and other liabilities		5,339		4,861		4,056
	Long-term debt		22,071		22,753		16,617
		Total liabilities	181,193		183,197		172,581
Equity
	Preferred stock		2,500		2,500		1,900
	Common shares		1,257		1,257		1,257
	Capital surplus		6,231		6,207		6,241
	Retained earnings		15,759		15,700		15,118
	Treasury stock, at cost		(5,859)		(5,868)		(5,923)
	Accumulated other comprehensive income (loss)		(6,044)		(5,474)		(4,166)
		Key shareholders’ equity	13,844		14,322		14,427
Total liabilities and equity			$	195,037	$	197,519	$	187,008
Common shares outstanding (000)			935,733		935,229		932,643

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 18

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
			Three months ended						Six months ended
			6/30/2023		3/31/2023		6/30/2022		6/30/2023		6/30/2022
Interest income
	Loans		$	1,576	$	1,476	$	923	$	3,052	$	1,760
	Loans held for sale		17		13		10		30		22
	Securities available for sale		194		194		188		388		361
	Held-to-maturity securities		81		74		48		155		94
	Trading account assets		15		12		7		27		13
	Short-term investments		111		42		13		153		17
	Other investments		16		13		4		29		6
		Total interest income	2,010		1,824		1,193		3,834		2,273
Interest expense
	Deposits		531		350		20		881		34
	Federal funds purchased and securities sold under repurchase agreements		48		22		6		70		6
	Bank notes and other short-term borrowings		104		78		9		182		12
	Long-term debt		349		275		61		624		110
		Total interest expense	1,032		725		96		1,757		162
Net interest income			978		1,099		1,097		2,077		2,111
Provision for credit losses			167		139		45		306		128
Net interest income after provision for credit losses			811		960		1,052		1,771		1,983
Noninterest income
	Trust and investment services income		126		128		137		254		273
	Investment banking and debt placement fees		120		145		149		265		312
	Cards and payments income		85		81		85		166		165
	Service charges on deposit accounts		69		67		96		136		187
	Corporate services income		86		76		96		162		187
	Commercial mortgage servicing fees		50		46		45		96		81
	Corporate-owned life insurance income		32		29		35		61		66
	Consumer mortgage income		14		11		14		25		35
	Operating lease income and other leasing gains		23		25		28		48		60
	Other income		4		—		3		4		(2)
		Total noninterest income	609		608		688		1,217		1,364
Noninterest expense
	Personnel		622		701		607		1,323		1,237
	Net occupancy		65		70		78		135		151
	Computer processing		95		92		78		187		155
	Business services and professional fees		41		45		52		86		105
	Equipment		22		22		26		44		49
	Operating lease expense		21		20		27		41		55
	Marketing		29		21		34		50		62
	Other expense		181		205		176		386		334
		Total noninterest expense	1,076		1,176		1,078		2,252		2,148
Income (loss) from continuing operations before income taxes			344		392		662		736		1,199
	Income taxes		58		81		132		139		222
Income (loss) from continuing operations			286		311		530		597		977
	Income (loss) from discontinued operations, net of taxes		1		1		3		2		4
Net income (loss)			287		312		533		599		981
Net income (loss) attributable to Key			$	287	$	312	$	533	$	599	981
Income (loss) from continuing operations attributable to Key common shareholders			$	250	$	275	$	504	$	525	$	924
Net income (loss) attributable to Key common shareholders			251		276		507		527		928
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.27	$	.30	$	.54	$	.57	$	1.00
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			.27		.30		.55		.57		1.00
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.27	$	.30	$	.54	$	.56	$	.99
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			.27		.30		.54		.57		1.00
Cash dividends declared per common share			$	.205	$	.205	$	.195	$	.410	$	.390
Weighted-average common shares outstanding (000)			926,741		926,490		924,302		926,807		923,717
	Effect of common share options and other stock awards		3,713		7,314		7,506		5,513		9,087
Weighted-average common shares and potential common shares outstanding (000) (b)			930,454		933,804		931,808		932,320		932,805

(a)Earnings per share may not foot due to rounding.

(b)Assumes conversion of common share options and other stock awards, as applicable.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		Second Quarter 2023						First Quarter 2023						Second Quarter 2022
		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)	$	61,426	$	881	5.76	%	$	60,281	$	807	5.42	%	$	53,858	$	449	3.34	%
	Real estate — commercial mortgage	16,226		235		5.80		16,470		224		5.52		15,231		136		3.58
	Real estate — construction	2,641		44		6.64		2,525		39		6.30		2,125		20		3.81
	Commercial lease financing	3,756		29		3.07		3,783		27		2.87		3,817		24		2.47
	Total commercial loans	84,049		1,189		5.67		83,059		1,097		5.35		75,031		629		3.36
	Real estate — residential mortgage	21,659		176		3.25		21,436		172		3.21		18,383		131		2.85
	Home equity loans	7,620		109		5.75		7,879		106		5.47		8,208		78		3.83
	Consumer direct loans	6,323		77		4.89		6,439		75		4.71		6,514		68		4.19
	Credit cards	984		33		13.49		983		32		13.37		943		24		10.20
	Consumer indirect loans	37		—		—		41		1		1.24		59		—		—
	Total consumer loans	36,623		395		4.33		36,778		386		4.23		34,107		301		3.53
	Total loans	120,672		1,584		5.26		119,837		1,483		5.01		109,138		930		3.41
	Loans held for sale	1,087		17		6.16		907		13		5.86		1,107		10		3.49
	Securities available for sale (b), (e)	38,899		194		1.74		39,172		194		1.72		43,023		188		1.60
	Held-to-maturity securities (b)	9,371		81		3.47		8,931		74		3.32		7,291		48		2.65
	Trading account assets	1,244		15		4.64		1,001		12		4.86		854		7		3.45
	Short-term investments	7,798		111		5.73		3,532		42		4.80		3,591		13		1.45
	Other investments (e)	1,566		16		4.03		1,309		13		4.01		800		4		2.27
	Total earning assets	180,637		2,018		4.34		174,689		1,831		4.09		165,804		1,200		2.83
	Allowance for loan and lease losses	(1,379)						(1,336)						(1,103)
	Accrued income and other assets	17,202						17,498						18,826
	Discontinued assets	394						419						505
	Total assets	$	196,854					$	191,270					$	184,032
Liabilities
	Money market deposits	$	32,419	$	123	1.53	%	$	33,853	$	78	.94	%	$	36,362	$	5	.05	%
	Demand deposits	53,569		256		1.91		52,365		183		1.42		49,027		13		.11
	Savings deposits	6,592		1		.04		7,346		1		.03		7,891		—		.01
	Certificates of deposit ($100,000 or more)	3,851		33		3.48		2,392		16		2.64		1,487		1		.44
	Other time deposits	11,365		118		4.17		8,106		72		3.61		1,972		1		.13
	Total interest-bearing deposits	107,796		531		1.98		104,062		350		1.36		96,739		20		.08
	Federal funds purchased and securities sold under repurchase agreements	3,767		48		5.07		2,087		22		4.34		2,792		6		.88
	Bank notes and other short-term borrowings	7,982		104		5.22		6,597		78		4.80		1,943		9		1.77
	Long-term debt (f), (g)	22,284		349		6.26		20,141		275		5.47		12,662		61		1.92
	Total interest-bearing liabilities	141,829		1,032		2.91		132,887		725		2.20		114,136		96		.34
	Noninterest-bearing deposits	35,107						39,343						50,732
	Accrued expense and other liabilities	5,112						4,804						4,261
	Discontinued liabilities (g)	394						419						505
	Total liabilities	$	182,442					$	177,453					$	169,634
Equity
	Key shareholders’ equity	$	14,412					$	13,817					$	14,398
	Noncontrolling interests	—						—						—
	Total equity	14,412						13,817						14,398
	Total liabilities and equity	$	196,854					$	191,270					$	184,032
Interest rate spread (TE)						1.43	%					1.89	%					2.50	%
Net interest income (TE) and net interest margin (TE)				$	986	2.12	%			$	1,106	2.47	%			$	1,104	2.61	%
TE adjustment (b)				8						7						7
	Net interest income, GAAP basis			$	978					$	1,099					$	1,097

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) 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, 2023, March 31, 2023, and June 30, 2022.

(c)For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)Commercial and industrial average balances include $194 million, $178 million, and $153 million of assets from commercial credit cards for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

(e)Yield is calculated on the basis of amortized cost.

(f)Rate calculation excludes basis adjustments related to fair value hedges.

(g)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 2023 Profit     

July 20, 2023

Page 20

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
		Six months ended June 30, 2023						Six months ended June 30, 2022
		Average				Yield/		Average				Yield/
		Balance		Interest (a)		Rate (a)		Balance		Interest (a)		Rate (a)
Assets
	Loans: (b), (c)
	Commercial and industrial (d)	$	60,857	$	1,688	5.59	%	$	52,723	$	858	3.28	%
	Real estate — commercial mortgage	16,347		459		5.66		14,910		257		3.48
	Real estate — construction	2,583		83		6.47		2,076		37		3.60
	Commercial lease financing	3,770		56		2.97		3,879		48		2.44
	Total commercial loans	83,557		2,286		5.51		73,588		1,200		3.28
	Real estate — residential mortgage	21,548		348		3.23		17,352		243		2.80
	Home equity loans	7,749		215		5.61		8,276		153		3.72
	Consumer direct loans	6,380		152		4.80		6,236		129		4.18
	Credit cards	984		65		13.43		938		48		10.28
	Consumer indirect loans	39		1		0.60		75		—		—
	Total consumer loans	36,700		781		4.28		32,877		573		3.49
	Total loans	120,257		3,067		5.14		106,465		1,773		3.35
	Loans held for sale	997		30		6.02		1,295		22		3.40
	Securities available for sale (b), (e)	39,034		388		1.73		43,968		361		1.55
	Held-to-maturity securities (b)	9,152		155		3.40		7,239		94		2.59
	Trading account assets	1123		27		4.74		848		13		3.10
	Short-term investments	5,677		153		5.44		5,447		17		.65
	Other investments (e)	1,438		29		4.02		726		6		1.82
	Total earning assets	177,678		3,849		4.22		165,988		2,286		2.72
	Allowance for loan and lease losses	(1,357)						(1,080)
	Accrued income and other assets	17,351						18,152
	Discontinued assets	406						522
	Total assets	$	194,078					$	183,582
Liabilities
	Money market deposits	$	33,110	$	201	1.23		36,795		$	9	.05
	Other demand deposits	52,993		440		1.67		50,148		20		.08
	Savings deposits	6,967		1		.04		7,746		1		.01
	Certificates of deposit ($100,000 or more)	3,125		49		3.16		1,562		3		.44
	Other time deposits	9,745		190		3.94		2,035		1		.14
	Total interest-bearing deposits	105,940		881		1.68		98,286		34		.07
	Federal funds purchased and securities sold under repurchase agreements	2,932		70		4.81		1,547		6		.81
	Bank notes and other short-term borrowings	7,293		182		5.03		1,327		12		1.82
	Long-term debt (f), (g)	21,218		624		5.88		11,751		110		1.86
	Total interest-bearing liabilities	137,383		1,757		2.57		112,911		162		.29
	Noninterest-bearing deposits	37,213						50,523
	Accrued expense and other liabilities	4,960						4,043
	Discontinued liabilities (g)	406						522
	Total liabilities	$	179,962					$	167,999
Equity
	Key shareholders’ equity	$	14,116					$	15,583
	Noncontrolling interests	—						—
	Total equity	14,116						15,583
	Total liabilities and equity	$	194,078					$	183,582
Interest rate spread (TE)						1.65	%					2.44	%
Net interest income (TE) and net interest margin (TE)				$	2,092	2.29	%			$	2,124	2.53	%
TE adjustment (b)				15						13
	Net interest income, GAAP basis			$	2,077					$	2,111

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) 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, 2023, and June 30, 2022, respectively.

(c)For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)Commercial and industrial average balances include $186 million and $147 million of assets from commercial credit cards for the six months ended June 30, 2023, and June 30, 2022, respectively.

(e)Yield is calculated on the basis of amortized cost.

(f)Rate calculation excludes basis adjustments related to fair value hedges.

(g)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 2023 Profit     

July 20, 2023

Page 21

Noninterest Expense
(Dollars in millions)
	Three months ended						Six months ended
	6/30/2023		3/31/2023		6/30/2022		6/30/2023		6/30/2022
Personnel (a)	$	622	$	701	$	607	$	1,323	$	1,237
Net occupancy	65		70		78		135		151
Computer processing	95		92		78		187		155
Business services and professional fees	41		45		52		86		105
Equipment	22		22		26		44		49
Operating lease expense	21		20		27		41		55
Marketing	29		21		34		50		62
Other expense	181		205		176		386		334
Total noninterest expense	$	1,076	$	1,176	$	1,078	$	2,252	$	2,148
Average full-time equivalent employees (b)	17,754		18,220		17,414		17,987		17,262

(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
	6/30/2023		3/31/2023		6/30/2022		6/30/2023		6/30/2022
Salaries and contract labor	$	416	$	419	$	357	$	835	$	705
Incentive and stock-based compensation	93		152		163		245		346
Employee benefits	103		99		83		202		180
Severance	10		31		4		41		6
Total personnel expense	$	622	$	701	$	607	$	1,323	$	1,237

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 22

Loan Composition
(Dollars in millions)
							Change 6/30/2023 vs.
	6/30/2023		3/31/2023		6/30/2022		3/31/2023		6/30/2022
Commercial and industrial (a)	$	60,059	$	60,565	$	55,245	(.8)	%	8.7	%
Commercial real estate:
Commercial mortgage	16,048		16,348		15,636		(1.8)		2.6
Construction	2,646		2,590		2,144		2.2		23.4
Total commercial real estate loans	18,694		18,938		17,780		(1.3)		5.1
Commercial lease financing (b)	3,801		3,763		3,956		1.0		(3.9)
Total commercial loans	82,554		83,266		76,981		(.9)		7.2
Residential — prime loans:
Real estate — residential mortgage	21,637		21,632		19,588		—		10.5
Home equity loans	7,529		7,706		8,134		(2.3)		(7.4)
Total residential — prime loans	29,166		29,338		27,722		(.6)		5.2
Consumer direct loans	6,257		6,359		6,665		(1.6)		(6.1)
Credit cards	1,001		969		967		3.3		3.5
Consumer indirect loans	33		39		55		(15.4)		(40.0)
Total consumer loans	36,457		36,705		35,409		(.7)		3.0
Total loans (c), (d)	$	119,011	$	119,971	$	112,390	(.8)	%	5.9	%

(a)Loan balances include $200 million, $185 million, and $161 million of commercial credit card balances at June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

(b)Commercial lease financing includes receivables held as collateral for a secured borrowing of $5 million, $6 million, and $12 million at June 30, 2023, March 31, 2023, and June 30, 2022, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $381 million at June 30, 2023, $407 million at March 31, 2023, and $498 million at June 30, 2022, related to the discontinued operations of the education lending business.

(d)Accrued interest of $500 million, $487 million, and $233 million at June 30, 2023, March 31, 2023, and June 30, 2022, 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 6/30/2023 vs.
	6/30/2023		3/31/2023		6/30/2022		3/31/2023		6/30/2022
Commercial and industrial	$	221	$	351	$	213	(37.0)	%	3.8	%
Real estate — commercial mortgage	829		815		1,004		1.7		(17.4)
Real estate — construction	—		—		6		—		(100.0)
Commercial lease financing	13		—		—		N/M		N/M
Real estate — residential mortgage	67		45		83		48.9		(19.3)
Total loans held for sale	$	1,130	$	1,211	$	1,306	(6.7)	%	(13.5)	%

N/M = Not Meaningful

Summary of Changes in Loans Held for Sale
(Dollars in millions)
	2Q23		1Q23		4Q22		3Q22		2Q22
Balance at beginning of period	$	1,211	$	963	$	1,048	$	1,306	$	1,170
New originations	1,798		1,779		3,158		2,157		2,837
Transfers from (to) held to maturity, net	(52)		(13)		(48)		—		(57)
Loan sales	(1,798)		(1,518)		(3,124)		(2,446)		(2,506)
Loan draws (payments), net	(28)		—		(71)		26		(133)
Valuation and other adjustments	(1)		—		—		5		(5)
Balance at end of period	$	1,130	$	1,211	$	963	$	1,048	$	1,306

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 23

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
	Three months ended									Six months ended
	6/30/2023			3/31/2023			6/30/2022			6/30/2023			6/30/2022
Average loans outstanding	$	120,672		$	119,837		$	109,138		$	120,257		$	106,465
Allowance for loan and lease losses at the beginning of the period	1,380			1,337			1,105			1,337			1,061
Loans charged off:
Commercial and industrial	42			35			39			77			69
Real estate — commercial mortgage	9			5			3			14			7
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	9			5			3			14			7
Commercial lease financing	1			(1)			—			—			2
Total commercial loans	52			39			42			91			78
Real estate — residential mortgage	1			—			(2)			1			(3)
Home equity loans	2			1			—			3			1
Consumer direct loans	11			11			10			22			17
Credit cards	9			9			8			18			15
Consumer indirect loans	1			—			1			1			2
Total consumer loans	24			21			17			45			32
Total loans charged off	76			60			59			136			110
Recoveries:
Commercial and industrial	15			8			8			23			19
Real estate — commercial mortgage	1			—			1			1			2
Real estate — construction	—			—			1			—			1
Total commercial real estate loans	1			—			2			1			3
Commercial lease financing	2			1			1			3			1
Total commercial loans	18			9			11			27			23
Real estate — residential mortgage	1			1			1			2			1
Home equity loans	1			1			1			2			2
Consumer direct loans	2			2			1			4			3
Credit cards	2			1			1			3			3
Consumer indirect loans	—			1			—			1			1
Total consumer loans	6			6			4			12			10
Total recoveries	24			15			15			39			33
Net loan charge-offs	(52)			(45)			(44)			(97)			(77)
Provision (credit) for loan and lease losses	152			88			38			240			115
Allowance for loan and lease losses at end of period	$	1,480		$	1,380		$	1,099		$	1,480		$	1,099
Liability for credit losses on lending-related commitments at beginning of period	276			225			166			225			160
Provision (credit) for losses on lending-related commitments	15			51			7			66			13
Liability for credit losses on lending-related commitments at end of period (a)	$	291		$	276		$	173		$	291		$	173
Total allowance for credit losses at end of period	$	1,771		$	1,656		$	1,272		$	1,771		$	1,272
Net loan charge-offs to average total loans	.17		%	.15		%	.16		%	.16		%	.15		%
Allowance for loan and lease losses to period-end loans	1.24			1.15			.98			1.24			.98
Allowance for credit losses to period-end loans	1.49			1.38			1.13			1.49			1.13
Allowance for loan and lease losses to nonperforming loans	343			332			256			343			256
Allowance for credit losses to nonperforming loans	411			398			297			411			297
Discontinued operations — education lending business:
Loans charged off	$	2		$	1		$	1		$	3		$	3
Recoveries	1			—			1			1			1
Net loan charge-offs	$	(1)		$	(1)		$	—		$	(2)		$	(2)

(a)Included in "Accrued expense and other liabilities" on the balance sheet.

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 24

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
	2Q23			1Q23			4Q22			3Q22			2Q22
Net loan charge-offs	$	52		$	45		$	41		$	43		$	44
Net loan charge-offs to average total loans	.17		%	.15		%	.14		%	.15		%	.16		%
Allowance for loan and lease losses	$	1,480		$	1,380		$	1,337		$	1,144		$	1,099
Allowance for credit losses (a)	1,771			1,656			1,562			1,338			1,272
Allowance for loan and lease losses to period-end loans	1.24		%	1.15		%	1.12		%	.98		%	.98		%
Allowance for credit losses to period-end loans	1.49			1.38			1.31			1.15			1.13
Allowance for loan and lease losses to nonperforming loans	343			332			346			293			256
Allowance for credit losses to nonperforming loans	411			398			404			343			297
Nonperforming loans at period end	$	431		$	416		$	387		$	390		$	429
Nonperforming assets at period end	462			447			420			419			463
Nonperforming loans to period-end portfolio loans	.36		%	.35		%	.32		%	.34		%	.38		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.39			.37			.35			.36			.41

(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)
	6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022
Commercial and industrial	$	188		$	170		$	174		$	169		$	197
Real estate — commercial mortgage	65			59			21			34			35
Real estate — construction	—			—			—			—			—
Total commercial real estate loans	65			59			21			34			35
Commercial lease financing	1			1			1			2			2
Total commercial loans	254			230			196			205			234
Real estate — residential mortgage	73			75			77			66			67
Home equity loans	97			104			107			112			120
Consumer direct loans	3			3			3			3			3
Credit cards	3			3			3			3			3
Consumer indirect loans	1			1			1			1			2
Total consumer loans	177			186			191			185			195
Total nonperforming loans (a)	431			416			387			390			429
OREO	15			13			13			12			9
Nonperforming loans held for sale	16			18			20			17			25
Other nonperforming assets	—			—			—			—			—
Total nonperforming assets	$	462		$	447		$	420		$	419		$	463
Accruing loans past due 90 days or more	73			55			60			47			41
Accruing loans past due 30 through 89 days	139			164			180			187			137
Nonperforming assets from discontinued operations — education lending business	2			3			3			3			3
Nonperforming loans to period-end portfolio loans	.36		%	.35		%	.32		%	.34		%	.38		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.39			.37			.35			.36			.41

(a)On January 1, 2023, Key adopted ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. In connection with the adoption of this guidance, nonperforming loans for periods after January 1, 2023, include certain loans which were modified for borrowers experiencing financial difficulty. Amounts prior to January 1, 2023, include nonperforming troubled debt restructurings (TDRs), for which accounting guidance was eliminated upon adoption of ASU 2022-02.

Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
	2Q23		1Q23		4Q22		3Q22		2Q22
Balance at beginning of period	$	416	$	387	$	390	$	429	$	439
Loans placed on nonaccrual status	169		143		113		80		118
Charge-offs	(76)		(60)		(67)		(68)		(59)
Loans sold	(23)		(2)		(4)		(3)		(8)
Payments	(20)		(31)		(22)		(29)		(35)
Transfers to OREO	(2)		(2)		(1)		(1)		(2)
Loans returned to accrual status	(33)		(19)		(22)		(18)		(24)
Balance at end of period	$	431	$	416	$	387	$	390	$	429

KeyCorp Reports Second Quarter 2023 Profit     

July 20, 2023

Page 25

Line of Business Results
(Dollars in millions)
																Change 2Q23 vs.
	2Q23			1Q23			4Q22			3Q22			2Q22			1Q23		2Q22
Consumer Bank
Summary of operations
Total revenue (TE)	$	803		$	840		$	860		$	877		$	858		(4.4)	%	(6.4)	%
Provision for credit losses	32			60			105			37			8			(46.7)		300.0
Noninterest expense	663			663			705			675			681			—		(2.6)
Net income (loss) attributable to Key	82			89			38			125			128			(7.9)		(35.9)
Average loans and leases	42,934			43,086			43,149			42,568			40,827			(.4)		5.2
Average deposits	82,498			84,637			87,370			90,170			91,394			(2.5)		(9.7)
Net loan charge-offs	32			24			21			17			23			33.3		39.1
Net loan charge-offs to average total loans	.30		%	.23		%	.19		%	.16		%	.23		%	30.4		30.4
Nonperforming assets at period end	$	193		$	196		$	202		$	195		$	203		(1.5)		(4.9)
Return on average allocated equity	9.04		%	9.87		%	4.51		%	14.26		%	13.94		%	(8.4)		(35.2)
Commercial Bank
Summary of operations
Total revenue (TE)	$	805		$	844		$	894		$	878		$	874		(4.6)	%	(7.9)	%
Provision for credit losses	134			80			165			74			37			67.5		262.2
Noninterest expense	405			442			459			451			411			(8.4)		(1.5)
Net income (loss) attributable to Key	214			255			225			287			340			(16.1)		(37.1)
Average loans and leases	77,277			76,306			74,100			71,464			67,825			1.3		13.9
Average loans held for sale	1,014			876			1,377			1,036			1,016			15.8		(.2)
Average deposits	51,420			52,219			54,385			52,272			54,846			(1.5)		(6.2)
Net loan charge-offs	20			21			25			27			21			(4.8)		(4.8)
Net loan charge-offs to average total loans	.10		%	.11		%	.13		%	.15		%	.12		%	(9.1)		(16.7)
Nonperforming assets at period end	$	269		$	251		$	218		$	224		$	260		7.2		3.5
Return on average allocated equity	8.17		%	10.04		%	9.36		%	12.29		%	15.29		%	(18.6)		(46.6)

TE = Taxable Equivalent

EX-99.2

KeyCorp Second Quarter 2023 Earnings Review July 20, 2023 Chris Gorman Chairman and Chief Executive Officer Clark Khayat Chief Financial Officer

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 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, 2022, Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and in other 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. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. This presentation also includes certain non-GAAP financial measures related to “tangible common equity” and “cash efficiency ratio.” Although Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of results under GAAP. For more information on these calculations and to view the reconciliations to the most comparable GAAP measures, please refer to the appendix of this presentation, or page 47 of our Form 10-Q dated March 31, 2023. 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 items is disclosed separately, the after-tax amount is computed using the marginal tax rate, with this then being the amount used to calculate the earnings per share equivalent. GAAP: Generally Accepted Accounting Principles 2

3 ▪ EPS of $.27 per diluted common share ‒ Includes $87MM(1) or $.09 per diluted common share, related to allowance build ▪ Strong, core funded balance sheet ‒ Quality and diverse core deposits: period-end deposits up $1Bn ▪ NII declined from prior quarter and year-ago period ‒ Reflects higher deposit costs ▪ Well-managed expenses ‒ Expenses down 9% QoQ and stable YoY ‒ Actions taken in 1Q represent $200MM, or ~4%, annualized cost savings ▪ Robust capital and credit profile ‒ NCOs to average loans: 17 bps ‒ CET1: 9.2%(2) 2Q23 Highlights ▪ Balance sheet optimization: reducing risk-weighted asset (RWAs) ‒ Period-end RWAs down >$1.3Bn(3) ‒ Growing high quality deposits with relationship clients ‒ Reduction in loan balances; period-end loans down $1Bn ‒ Evaluating other nonstrategic assets ‒ Strong fee-based businesses - well positioned as clients move from balance sheet to capital markets ▪ Building capital: consistent with capital priorities ‒ Retained earnings support capital growth ‒ ~44% of AOCI burns off over the next 6 quarters ▪ Maintaining strong credit quality ‒ Positioned to perform through the business cycle (1) After tax; (2) 6/30/2023 figures are estimated and reflect Key's election to adopt the CECL optional transition provision; (3) 6/30/2023 figures are estimated 2Q23 Financial Results Strategic Highlights & Outlook

Financial Review

EOP = End of Period; (1) Non-GAAP measure: see appendix for reconciliation; (2) 6/30/2023 ratios are estimated and reflect Key's election to adopt the CECL optional transition provision 5 EPS – assuming dilution $.27 $.30 $ .54 (10.0) % (50.0) % Cash efficiency ratio(1) 66.8 % 68.0 % 59.5 % (120) bps 730 bps Return on average tangible common equity(1) 11.0 13.2 20.9 (220) (990) Return on average total assets .58 .66 1.16 (8) (58) Net interest margin 2.12 2.47 2.61 (35) (49) Common Equity Tier 1(2) 9.2 % 9.1 % 9.2 % 10 bps - Tier 1 risk-based capital(2) 10.7 10.6 10.4 10 30 bps Tangible common equity to tangible assets(1) 4.5 4.6 5.3 (10) (80) NCOs to average loans .17 % .15 % .16 % 2 bps 1 bps NPLs to EOP portfolio loans .36 .35 .38 1 (2) Allowance for credit losses to EOP loans 1.49 1.38 1.13 11 36 Profitability Capital Asset Quality 2Q23 1Q23 2Q22 LQ Δ Y/Y Δ Continuing operations, unless otherwise noted Financial Highlights

6 $75.0 $78.4 $81.0 $83.1 $84.0 $82.6 $34.1 $36.1 $36.7 $36.8 $36.6 $36.5 3.41% 3.97% 4.57% 5.01% 5.26% 1.00% 2Q22 3Q22 4Q22 1Q23 2Q23 Loan Yield Average Consumer Average Commercial $ in billions ▪ Average loans up 11% from 2Q22 − Growth in C&I and commercial mortgage real estate loans − Growth in consumer mortgage loans ▪ Average loans up 1% from 1Q23 − Growth in C&I loans vs. Prior Year vs. Prior Quarter $109.1 $114.4 $117.7 $119.8 Loans Growth driven by relationship-based strategy across commercial and consumer Total Average Loans Highlights $120.7 $119.0 Period-End Consumer Period-End Commercial 6/30/23 Period-end loans down $1Bn vs. 3/31/23

(1) Cumulative beta indexed to 4Q21 7 $ in billions Average Consumer Average Commercial $143.4 Total deposit cost (bp) $147.5 $144.2 $145.7 Deposits Deposit balances remained relatively stable; period-end deposits up $1Bn from prior quarter ▪ Average deposits down 3% from 2Q22 − Decline in retail balances, reflecting inflation-related spend, normalization, and changing client behavior − Commercial balances reflected higher average brokered deposits ($9Bn in 2Q23), partially offset by normalization of pandemic-related deposits ▪ Average deposit balances relatively stable from 1Q23 − Decline in retail balances, reflecting inflation-related spend, normalization, and changing client behavior − Commercial balances reflected higher average brokered deposits ($9Bn in 2Q23), partially offset by normal seasonal outflows ▪ Period-end deposit balances up $1Bn from 1Q23 vs. Prior Year vs. Prior Quarter Period-End Consumer Period-End Commercial ▪ Cumulative total interest-bearing deposit beta: 39%(1) $91.3 $90.0 $87.2 $84.5 $82.2 $82.8 $56.2 $54.2 $58.4 $58.9 $60.7 $62.4 6 16 51 99 149 2Q22 3Q22 4Q22 1Q23 2Q23 $142.9 Deposits Highlights 6/30/23 $145.1 Period-end deposits up $1Bn vs. 3/31/23

$ in millions, continuing operations vs. Prior Quarter TE = Taxable equivalent $1,140 $1,203 $1,227 $1,106 $986 2.61% 2.74% 2.73% 2.47% 2.12% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 2Q22 3Q22 4Q22 1Q23 2Q23 ▪ Net interest income down $118MM (-11%), net interest margin decreased 49 basis point from 2Q22 − Reflects higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits and borrowings − Partially offset by benefits from higher yields on loans and investments ▪ Net interest income down $120MM (-11%), net interest margin decreased 35 basis points from 1Q23 − Reflects higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits and borrowings − Partially offset by benefits from higher yields on loans and investments 8 vs. Prior Year Net Interest Income (TE) Net Interest Margin (TE) Benefit of higher interest rates and earning assets offset by interest-bearing deposit costs and funding mix shift Net Interest Income and Margin Net Interest Margin Walk (TE) Interest-bearing Deposit Costs Funding Mix & Liquidity Earnings Asset Yields 2Q231Q23 Net Interest Income & Net Interest Margin Trend (TE) Highlights

9 Expecting significant benefit from swap and Treasury maturities Net Interest Income Opportunities Illustrative, $ in millions $39 $67 $95 $107 $125 $141 $7 $13 $20 $36 $62 $88 $31 $46 $80 $115 $143 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 ~$900MM annualized NII benefit by 1Q25 (1) Assumes the forward curve and maturities to occur on the last day of each quarter Treasuries Swaps NII Pickup from Short-dated Maturities(1) $186 $230

10 ▪ Noninterest income down $79MM (-11%) from 2Q22 − Lower service charges on deposit accounts (-$27MM) driven by new client friendly fee structure for NSF/OD fees and lower account analysis fees − Lower investment banking and debt placement fees (-$29MM) reflecting lower M&A advisory and syndication fees vs. Prior Quarter ▪ Noninterest income up $1MM from 1Q23 − Lower investment banking and debt placement fees (-$25MM) reflecting lower M&A advisory and syndication fees − Higher corporate services income (+$10MM) reflecting an increase in derivatives income vs. Prior Year $ in millions - up / (down) 2Q23 vs. 2Q22 vs. 1Q23 Trust and investment services income $ 126 $ (11) $ (2) Investment banking and debt placement fees 120 (29) (25) Cards and payments income 85 - 4 Service charges on deposit accounts 69 (27) 2 Corporate services income 86 (10) 10 Commercial mortgage servicing fees 50 5 4 Corporate-owned life insurance 32 (3) 3 Consumer mortgage income 14 - 3 Operating lease income and other leasing gains 23 (5) (2) Other income 4 1 4 Total noninterest income $ 609 $ (79) $ 1 Continued challenging environment for investment banking and debt placement outweighs broad-based QoQ fee growth Noninterest Income Noninterest Income Highlights

11 vs. Prior Quarter vs. Prior Year ▪ Noninterest expense down $2MM from 2Q22 − Lower net occupancy expense (-$13MM) from downsizing corporate facilities and lower business services and professional fees (-$11MM) − Higher computer processing expense (+$17MM) related to technology investments and higher personnel expense (+$15MM) reflecting higher merit increases and employee benefits costs ▪ Noninterest expense down $100MM (-9%) from 1Q23 − Lower personnel expense (-$79MM) reflecting lower incentive and stock-based compensation and severance expense − Lower other expense (-$24MM) due to higher expenses related to corporate real estate rationalization in 1Q23 Benefitting from broad expense discipline and actions taken in 1Q23 to reduce run-rate Noninterest Expense $ in millions - favorable / (unfavorable) 2Q23 vs. 2Q22 vs. 1Q23 Personnel $ 622 $ (15) $ 79 Net occupancy 65 13 5 Computer processing 95 (17) (3) Business services and professional fees 41 11 4 Equipment 22 4 - Operating lease expense 21 6 (1) Marketing 29 5 (8) Other expense 181 (5) 24 Total noninterest expense $ 1,076 $2 $ 100 Noninterest Expense Highlights

$1,272 $1,338 $1,562 $1,656 $1,771 297% 343% 404% 398% 411% 2Q22 3Q22 4Q22 1Q23 2Q23 Allowance for credit losses to NPLsAllowance for credit losses 2Q23 allowance for credit losses to period-end loans of 1.49%$ in millions NCO = Net charge-off NPL = Nonperforming Loans 12 $44 $43 $41 $45 $52$45 $109 $265 $139 $167 0.16% 0.15% 0.14% 0.15% 0.17% 2Q22 3Q22 4Q22 1Q23 2Q23 $ in millions NCOs Provision for credit losses NCOs to avg. loans 2.3% 2.5% 2.5% 2.8% 3.3% 2Q22 3Q22 4Q22 1Q23 2Q23 Continuing Operations Disciplined underwriting with net charge-offs remaining near historically low levels Credit Quality 0.12% 0.16% 0.15% 0.14% 0.12% 0.04% 0.04% 0.05% 0.05% 0.06% 2Q22 3Q22 4Q22 1Q23 2Q23 30 – 89 days delinquent 90+ days delinquent Net Charge-offs & Provision for Credit Losses Continuing Operations Delinquencies to Period-end Total Loans Criticized Outstandings (1) to Period-end Total Loans Allowance for Credit Losses (ACL)

$6.0 $4.9 $3.4 $2.8 6/30/2023 12/31/2023 12/31/2024 12/31/2025 9.2% 9.1% 9.1% 9.1% 9.2% 2Q22 3Q22 4Q22 1Q23 2Q23 (1) 6/30/23 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (2) Assumes market forwards as of July 1, 2023 13 Strong, stable position within targeted range, with significant AOCI accretion expected over time Capital Illustrative, $ in billionsTarget operating range: 9% - 9.5% ▪ Priorities remain unchanged: focused on supporting relationship clients and dividends ▪ Declared 3Q23 dividend of $.205 per common share ~44% AOCI burn down by the end of 2024 Common Equity Tier 1(1) Projected AOCI Accretion(2) ~55% AOCI burn down by the end of 2025

14 Average Balance Sheet • Loans: down 1% - 3% • Deposits: relatively stable • Loans: down 1% - 3% • Deposits: relatively stable Net Interest Income (TE) • Net interest income: down 4% - 6% • Net interest income: flat to down 2% Noninterest Income • Noninterest income: up 2% - 4% • Noninterest income: up 4% - 6% Noninterest Expense • Noninterest expense: relatively stable • Noninterest expense: relatively stable(1) Credit Quality • Net charge-offs to average loans: 20 – 25 bps (3Q23) • Net charge-offs to average loans: 25 – 35 bps (4Q23) Taxes • GAAP tax rate: 18% - 19% (3Q23) • GAAP tax rate: 18% - 19% (4Q23) Long-term Targets Positive operating leverage Moderate risk profile: Net charge-offs to avg. loans targeted range of 40-60 bps ROTCE: 16% - 19% Cash efficiency ratio: 54% - 56% Note: Guidance range: relatively stable: +/- 2% Note: Assumes market forwards as of July 1, 2023 (1) Non-GAAP measure; excludes FDIC special assessment Quarterly Outlook Guidance as of 7/20/2023 3Q23 (vs. 2Q23) 4Q23 (vs. 3Q23)

Appendix

16 $ in billions, as of 6/30/2023 ▪ $9Bn of deposits are from low-cost, stable escrow balances ▪ $13.6Bn of uninsured deposits are collateralized by government-backed securities ▪ 80% of commercial segment deposit balances are from core operating accounts ▪ Loan-to-deposit ratio: 83%(2) 2Q23 Mix by Insurance Coverage 59% 32% 5% Deposits: A Diverse Core Base Key’s deposit base is made up of over three and a half million retail, small business, private banking, and commercial clients, with two-thirds of balances covered by FDIC insurance or collateralized 45% 27% 12% 8% 8% Middle Market Business Banking Retail Large Corporate Public Sector Uninsured and Uncollateralized Insured Collateralized 58% 33% 9% $145.1 67% of balances insured or collateralized 57% of balances from retail and business banking clients (1) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries; (2) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits (1) 2Q23 Mix by Client Highlights $ in billions CDs and other time deposits Savings Noninterest-bearing Demand and MMDA 2Q23 Average Deposit Mix 60% 25% 11% 4% $142.9

Portfolio Highlights ▪ Target specific client segments focused in seven industry verticals ▪ Experienced bankers with deep industry expertise ▪ Focused on high quality clients ▪ Small, stable leveraged portfolio: ~2% of total loans ▪ Credit quality metrics remain solid − Disciplined, consistent underwriting − Active surveillance with ongoing portfolio reviews − Dynamic assessment of ratings migration ~80% commercial bank credit exposure from relationship(1) clients Targeted Industry Verticals Consumer Energy Industrial TechnologyHealthcare (1) Relationship client is defined as having two or more of the following: credit, capital markets, or payments ▪ Solid middle market portfolio, high-quality borrowers ▪ Aligning bankers to areas of market opportunity and growth - investing in strategic hires with industry vertical expertise ▪ C&I loan utilization: 32% in 2Q23 ▪ Strengthened credit risk profile with strategic exits and growth in targeted client segments to focus on relationships ▪ Significantly scaled back construction portfolio from pre-global financial crisis (42% in 2008  14% at 6/30/23) ▪ Focused on relationships with select owners and operators ▪ Strategic focus in multifamily, primarily affordable housing Real Estate Public Sector 17 $ in millions 6/30/23 % of total loans Commercial and industrial $ 60,059 50% Commercial real estate 18,694 16 Commercial lease financing 3,801 3 Total Commercial $ 82,554 69% >50% of C&I portfolio is investment grade Total Commercial Loans Commercial & Industrial (C&I) Commercial Real Estate (CRE) Commercial Loan Portfolio Detail

Key has limited exposure to riskier asset classes like office, lodging, and retail 18 $ in millions, non-owner occupied 6/30/23 % of total loans Multifamily $ 9,028 7.6% Industrial 807 <1% Retail 1,221 1% Senior Housing 887 <1% Office 884 <1% B and C Class Office in Central Business Districts 121 N/A Lodging 207 <1% Other 2,007 1.7% Total Non-owner Occupied Commercial Real Estate $ 15,041 13% Office Loans as a Portion of Total Loans(1) (1) Source: 10-Q filing data as of 3/31/2023 – peers include BAC, CFG, JPM, MTB, PNC, TFC, WFC, and ZION, as others do not report data on office balances Portfolio by Asset Class Office Loan Detail Commercial Real Estate Loan Portfolio Detail ▪ 19% to mature in 2023 ($168MM) ▪ $0 non-owner-occupied construction ▪ Nonperforming loans: 2.3% ▪ Delinquencies: ‒ 30 – 89 Day: 0.00% ‒ 90+ day: 0.01% Office Highlights 0.8% 3.2% Key Peer Median

Period-end loans Average loans Net loan charge-offs Net loan charge- offs(3) / average loans (%)(4) Nonperforming loans Ending allowance Allowance / period-end loans (%)(4) Allowance / NPLs (%)(4) 6/30/23 2Q23 2Q23 2Q23 6/30/23 6/30/23 6/30/23 6/30/23 Commercial and industrial(1) $ 60,059 $ 61,426 $ 27 .18% $ 188 $ 599 1.00% 318.82% Commercial real estate: Commercial Mortgage 16,048 16,226 8 .20 65 315 1.96 484.57 Construction 2,646 2,641 - - - 39 1.47 - Commercial lease financing(2) 3,801 3,756 (1) (.11) 1 33 .86 N/M Real estate – residential mortgage 21,637 21,659 - - 73 200 .92 274.04 Home equity 7,529 7,620 1 .05 97 96 1.28 98.97 Consumer direct loans 6,257 6,323 9 .57 3 125 1.99 N/M Credit cards 1,001 984 7 2.85 3 72 7.24 N/M Consumer indirect loans 33 37 1 10.97 1 1 3.79 127.45 Continuing total $ 119,011 $ 120,672 $ 52 .17% $ 431 $ 1,480 1.24% 343.41% Discontinued operations 381 392 1 1.02 2 18 4.70 895.67 Consolidated total $ 119,392 $ 121,064 $ 53 .18% $ 433 $ 1,498 1.25% 345.96% 19 $ in millions (1) Loan balance includes $200 million of commercial credit card balances at June 30, 2023; (2) Commercial lease financing includes receivables held as collateral for a secured borrowing of $5 million at June 30, 2023. Principal reductions are based on the cash payments received from these related receivables; (3) Net loan charge-off amounts are annualized in calculation; (4) Ratios calculated using unrounded figures and therefore may not foot to calculation using rounded figures presented in table Credit Quality Credit Quality by Portfolio

(1) Loan statistics based on 6/30/2023 ending balances; (2) Deposit statistics based on 6/30/2023 average balances; (3) Yield is calculated on the basis of amortized cost Loan Composition(1) Deposit Mix(2) ▪ Attractive business model with relationship-oriented lending franchise − Distinctive commercial capabilities drive C&I growth and ~64% floating-rate loan mix − Laurel Road and consumer mortgage enhance fixed rate loan volumes with attractive client profile ▪ Investment portfolio positioned to provide liquidity and enhance returns while benefiting from higher reinvestment rates − Objectives include investing in mortgage-backed securities with lower prepayment risks and limited exposure to unamortized premiums ▪ Average balances reflects portfolio runoff in 2Q23 ▪ HTM utilized to reduce OCI volatility beginning in 2Q22 ‒ Current portfolio consists of ~20% HTM (+5% year over year) 20 Noninterest- bearing 25% Interest- bearing 75% $7.3 $7.9 $8.3 $8.9 $9.4 $43.0 $42.3 $39.2 $39.2 $38.9 1.75% 1.85% 1.91% 1.98% 2.04% 2Q22 3Q22 4Q22 1Q23 2Q23 Average AFS securities Average yield(3)Average HTM securities $ in billions Average Total Investment Securities Balance Sheet Management Detail 2Q23 Balance Sheet Highlights Highlights $50.3 $50.2 $47.5 $48.1 Prime 8% 1M LIBOR 2% 3M LIBOR 2%Other 8% SOFR 44% Fixed 36% $48.3

(1) Chart excludes $26.7Bn of short-dated LIBOR and SOFR swaps created as a result of the industry’s operational transition from LIBOR to SOFR; (2) Chart includes forward-starting swaps and floor spreads since 4Q22 and excludes $2.3Bn of forward-starting SOFR swaps created as a result of the industry’s operational transition from LIBOR to SOFR; (3) Excludes $0.8Bn of short-dated LIBOR and SOFR swaps and $2.8Bn of forward starting SOFR swaps created as a result of the industry's operational transition from LIBOR to SOFR; (4) $5.2Bn of swaps set to mature in 2025 and $9.1Bn in 2026; Chart excludes $26.7Bn of short-dated LIBOR and SOFR swap maturities created as a result of the industry’s operational transition from LIBOR to SOFR 21 WA Receive fixed rate (3Q23-4Q24): 0.47% Hedging Strategy Opportunistically locking in future benefit while managing downside risk Hedge Portfolio Recent ALM Hedge Actions(2) $0.6 $2.3 $2.4 $1.3 $1.9 $1.9 0.27% 0.41% 0.34% 0.65% 0.57% 0.53% $0.0 $1.0 $2.0 $3.0 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Total Cash Flow Hedges WA Receive Rate on Maturities $2.0 $3.3 $3.5 $3.5 $2.9 $1.2 $3.3 $3.3 $2.5 ($1.0) $1.0 $3.0 $5.0 $7.0 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2025 2026 Forward-Starting Swaps Floor Spreads • Added $3Bn of forward-starting receive fixed swaps - WA receive rate: 3.4% • Executed $3.3Bn of forward-starting floor spreads - WA buy strike: 3.4%, WA sold strike: 2.3% YTD Interest Rate Swap Maturities(4) $ in billions $ in billions $ in billions 6/30/23 A/LM Hedges (1) $ 25.4 A/LM Forward Hedges (2) 7.3 Debt Swaps (3) 10.5 Securities Hedges 1.4 Non-zero Loan Floors 7.9 ▪ Recent actions position Key to benefit from higher rates while maintaining significant upside potential ▪ Balancing desire to lock in potential benefit in the midst of macroeconomic uncertainty and an inverted yield curve − Sensitive to the level of expected tightening while preparing for potential economic weakness − Mindful towards increased levels of current and expected volatility ▪ Continually evaluating opportunities to protect and enhance NII and capital while taking a measured approach to swap replacement

22 Projected Cash Flows & Maturities (under implied forward rates) Floating Rate (including hedges) Existing Portfolio Repricing Characteristics Highlights (1) 2023 Projected cashflows does not include realized cashflows from 1Q23 and 2Q23 Investment Portfolio $ in billions ▪ Portfolio used for funding and liquidity management ‒ Portfolio composed primarily of fixed-rate GNMA and GSE-backed MBS and CMOs ‒ Portfolio yield excluding short-term Treasury/Agency securities: 2.4% ▪ Portfolio constructed to enhance current returns on excess liquidity, while preserving the opportunity to capitalize on higher interest rates in the future ‒ Agency MBS/CMO investments constructed to limit extension risk and provide continued cash flows as rates rise (~$1.1Bn per quarter in the near-term) ‒ Short-term Treasury/Agency portfolio provides near-term upside to higher rates and consists of a laddered maturity profile with runoff beginning in second half of 2023 ▪ Available for sale portfolio duration of 5.3 years at 6/30/2023 (duration including securities hedges) $6.3 $15.1 $7.2 2023** 2024 20252023(1) $0.5 $0.4 $0.7 $1.5 $2.6 $2.9 $0.3 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 WA yield on portfolio 0.43% $ in billions .48%.44%.45%.29% .17%.28% Short-term Treasury Maturities WA Maturity Yield Short-term Treasury Maturities .63%

23 Remaining maturity, as of June 30, 2023 $ in millions Agency Residential Collateralized Mortgage Obligations Agency Residential Mortgage- backed Securities Agency Commercial Mortgage- backed Securities Asset- backed Securities Other Total One year or less $ 7 $ - $ 5 $ 1 $ 5 $ 18 After 1 through 5 years 2,064 112 1,967 1,032 10 5,185 After 5 through 10 years 2,194 14 525 4 - 2,737 After 10 years 1,166 47 36 - - 1,249 Amortized Cost 5,431 173 2,533 1,037 15 9,189 Fair Value 5,114 158 2,305 984 14 8,575 Remaining maturity, as of June 30, 2023 $ in millions U.S. Treasury, Agencies, and Corporations Agency Residential Collateralized Mortgage Obligations Agency Residential Mortgage- backed Securities Agency Commercial Mortgage- backed Securities Total One year or less $ 3,218 $ 53 $ 1 $ 18 $ 3,290 After 1 through 5 years 6,050 1,695 2,382 2,177 12,304 After 5 through 10 years 114 8,912 898 5,743 15,667 After 10 years 107 4,955 468 1,117 6,647 Fair Value 9,489 15,615 3,749 9,055 37,908 Available for Sale (AFS) Held-to-Maturity (HTM) Securities Maturity Schedule

6/30/2023 3/31/2023 6/30/2022 Tangible common equity to tangible assets at period end Key shareholders' equity (GAAP) 13,844$ 14,322$ 14,427$ Less: Intangible assets (1) 2,826 2,836 2,868 Preferred Stock (2) 2,446 2,446 1,856 Tangible common equity (non-GAAP) 8,572$ 9,040$ 9,703$ Total assets (GAAP) 195,037$ 197,519$ 187,008$ Less: Intangible assets (1) 2,826 2,836 2,868 Tangible assets (non-GAAP) 192,211$ 194,683$ 184,140$ Tangible common equity to tangible assets ratio (non-GAAP) 4.46% 4.64% 5.27% Average tangible common equity Average Key shareholders' equity (GAAP) 14,412$ 13,817$ 14,398$ Less: Intangible assets (average) (3) 2,831 2,841 2,827 Preferred Stock (average) 2,500 2,500 1,900 Average tangible common equity (non-GAAP) 9,081$ 8,476$ 9,671$ Three months ended 24 $ in millions (1) For the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, intangible assets exclude $1 million, $1 million, and $2 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus; (3) For the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, average intangible assets exclude $1 million, $1 million, and $2 million, respectively, of average purchased credit card receivables GAAP to Non-GAAP Reconciliation

6/30/2023 3/31/2023 6/30/2022 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) 250$ 275$ 504$ Average tangible common equity (non-GAAP) 9,081 8,476 9,671 Return on average tangible common equity from continuing operations (non-GAAP) 11.04% 13.16% 20.90% Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) 251$ 276$ 507$ Average tangible common equity (non-GAAP) 9,081 8,476 9,671 Return on average tangible common equity consolidation (non-GAAP) 11.09% 13.21% 21.03% Cash efficiency ratio Noninterest expense (GAAP) 1,076$ 1,176$ 1,078$ Less: Intangible asset amortization 10 10 12 Adjusted noninterest expense (non-GAAP) 1,066$ 1,166$ 1,066$ Net interest income (GAAP) 978$ 1,099$ 1,097$ Plus: Taxable-equivalent adjustment 8 7 7 Noninterest income 609 608 688 Total taxable-equivalent revenue (non-GAAP) 1,595$ 1,714$ 1,792$ Cash efficiency ratio (non-GAAP) 66.8% 68.0% 59.5% Three months ended 25 $ in millions GAAP to Non-GAAP Reconciliation

EX-99.3

Exhibit 99.3

Consolidated Balance Sheets
(dollars in millions)
			6/30/2023		3/31/2023		6/30/2022
Assets
	Loans		$	119,011	$	119,971	$	112,390
	Loans held for sale		1,130		1,211		1,306
	Securities available for sale		37,908		39,498		42,437
	Held-to-maturity securities		9,189		9,561		8,186
	Trading account assets		1,177		1,118		809
	Short-term investments		8,959		8,410		2,456
	Other investments		1,474		1,587		969
		Total earning assets	178,848		181,356		168,553
	Allowance for loan and lease losses		(1,480)		(1,380)		(1,099)
	Cash and due from banks		758		784		678
	Premises and equipment		652		628		638
	Goodwill		2,752		2,752		2,752
	Other intangible assets		75		85		118
	Corporate-owned life insurance		4,378		4,372		4,343
	Accrued income and other assets		8,668		8,512		10,529
	Discontinued assets		386		410		496
		Total assets	$	195,037	$	197,519	$	187,008
Liabilities
	Deposits in domestic offices:
		Interest-bearing deposits	111,766		106,841		94,892
		Noninterest-bearing deposits	33,366		37,307		50,973
		Total deposits	145,132		144,148		145,865
	Federal funds purchased and securities sold under repurchase agreements		1,702		1,374		3,234
	Bank notes and other short-term borrowings		6,949		10,061		2,809
	Accrued expense and other liabilities		5,339		4,861		4,056
	Long-term debt		22,071		22,753		16,617
		Total liabilities	181,193		183,197		172,581
Equity
	Preferred stock		2,500		2,500		1,900
	Common shares		1,257		1,257		1,257
	Capital surplus		6,231		6,207		6,241
	Retained earnings		15,759		15,700		15,118
	Treasury stock, at cost		(5,859)		(5,868)		(5,923)
	Accumulated other comprehensive income (loss)		(6,044)		(5,474)		(4,166)
		Key shareholders’ equity	13,844		14,322		14,427
	Noncontrolling interests		—		—		—
		Total equity	13,844		14,322		14,427
Total liabilities and equity			$	195,037	$	197,519	$	187,008
Common shares outstanding (000)			935,733		935,229		932,643

Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended						Six months ended
			6/30/2023		3/31/2023		6/30/2022		6/30/2023		6/30/2022
Interest income
	Loans		$	1,576	$	1,476	$	923	$	3,052	$	1,760
	Loans held for sale		17		13		10		30		22
	Securities available for sale		194		194		188		388		361
	Held-to-maturity securities		81		74		48		155		94
	Trading account assets		15		12		7		27		13
	Short-term investments		111		42		13		153		17
	Other investments		16		13		4		29		6
		Total interest income	2,010		1,824		1,193		3,834		2,273
Interest expense
	Deposits		531		350		20		881		34
	Federal funds purchased and securities sold under repurchase agreements		48		22		6		70		6
	Bank notes and other short-term borrowings		104		78		9		182		12
	Long-term debt		349		275		61		624		110
		Total interest expense	1,032		725		96		1,757		162
Net interest income			978		1,099		1,097		2,077		2,111
Provision for credit losses			167		139		45		306		128
Net interest income after provision for credit losses			811		960		1,052		1,771		1,983
Noninterest income
	Trust and investment services income		126		128		137		254		273
	Investment banking and debt placement fees		120		145		149		265		312
	Service charges on deposit accounts		69		67		96		136		187
	Operating lease income and other leasing gains		23		25		28		48		60
	Corporate services income		86		76		96		162		187
	Cards and payments income		85		81		85		166		165
	Corporate-owned life insurance income		32		29		35		61		66
	Consumer mortgage income		14		11		14		25		35
	Commercial mortgage servicing fees		50		46		45		96		81
	Other income		4		—		3		4		(2)
		Total noninterest income	609		608		688		1,217		1,364
Noninterest expense
	Personnel		622		701		607		1,323		1,237
	Net occupancy		65		70		78		135		151
	Computer processing		95		92		78		187		155
	Business services and professional fees		41		45		52		86		105
	Equipment		22		22		26		44		49
	Operating lease expense		21		20		27		41		55
	Marketing		29		21		34		50		62
	Intangible asset amortization		—		—		—		—		—
	Other expense		181		205		176		386		334
		Total noninterest expense	1,076		1,176		1,078		2,252		2,148
Income (loss) from continuing operations before income taxes			344		392		662		736		1,199
	Income taxes		58		81		132		139		222
Income (loss) from continuing operations			286		311		530		597		977
	Income (loss) from discontinued operations, net of taxes		1		1		3		2		4
Net income (loss)			287		312		533		599		981
	Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income (loss) attributable to Key			$	287	$	312	$	533	$	599	$	981
Income (loss) from continuing operations attributable to Key common shareholders			$	250	$	275	$	504	$	525	$	924
Net income (loss) attributable to Key common shareholders			251		276		507		527		928
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.27	$	.30	$	.54	$	.57	$	1
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			.27		.30		.55		.57		1
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.27	$	.30	$	.54	$	.56	$	.99
Income (loss) from discontinued operations, net of taxes			—		—		—		—		—
Net income (loss) attributable to Key common shareholders (a)			.27		.30		$	.54	.57		1.00
Cash dividends declared per common share			$	.205	$	.205	$	.195	$	.41	$	.39
Weighted-average common shares outstanding (000)			926,741		926,490		924,302		926,807		923,717
	Effect of common share options and other stock awards		3,713		7,314		7,506		5,513		9,087
Weighted-average common shares and potential common shares outstanding (000) (b)			930,454		933,804		931,808		932,320		932,805

(a)Earnings per share may not foot due to rounding.

(b)Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

XML

Cover Page	Jul. 20, 2023
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 20, 2023
Entity Registrant Name	KeyCorp
Entity Incorporation, State or Country Code	OH
Entity File Number	001-11302
Entity Tax Identification Number	34-6542451
Entity Address, Address Line One	127 Public Square,
Entity Address, City or Town	Cleveland,
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44114-1306
City Area Code	216
Local Phone Number	689-3000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000091576
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Shares, $1 par value
Trading Symbol	KEY
Security Exchange Name	NYSE
Series E Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E)
Trading Symbol	KEY PrI
Security Exchange Name	NYSE
Series F Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F)
Trading Symbol	KEY PrJ
Security Exchange Name	NYSE
Series G Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G)
Trading Symbol	KEY PrK
Security Exchange Name	NYSE
Series H Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Reset Perpetual Non-Cumulative Preferred Stock, Series H)
Trading Symbol	KEY PrL
Security Exchange Name	NYSE