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Business Segment Reporting
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Business Segment Reporting
20. Business Segment Reporting

The following is description of the segments and their primary businesses at June 30, 2023.

Consumer Bank

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

The Commercial Bank consists of the Commercial and Institutional operating segments. The Commercial operating segment is a full-service, commercial banking platform that focuses primarily on serving the borrowing, cash management, and capital markets needs of middle market clients within Key’s 15-state branch footprint. It is also a significant, national, commercial real estate lender and third-party servicer of commercial mortgage loans and special servicer of CMBS. The Institutional operating segment operates nationally in providing lending, equipment financing, and banking products and services to large corporate and institutional clients. The industry coverage and product teams have proven expertise in the following sectors: Consumer, Energy, Healthcare, Industrial, Public Sector, Real Estate, and Technology. The operating segment includes the KBCM platform which provides a broad suite of capital markets products and services including syndicated finance, debt and equity underwriting, derivatives, foreign exchange, debt and M&A advisory, public finance, and fixed income and equity sales and trading services.

Other

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

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

The table below shows selected financial data for our business segments for the three- and six-month periods ended June 30, 2023, and June 30, 2022. Capital is assigned to each business segment based on a combination of regulatory and economic equity.
Three months ended June 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20232022202320222023202220232022
SUMMARY OF OPERATIONS
Net interest income (TE)$558 $604 $459 $470 $(31)$30 $986 $1,104 
Noninterest income245 254 346 404 18 30 609 688 
Total revenue (TE) (a)
803 858 805 874 (13)60 1,595 1,792 
Provision for credit losses32 8 134 37 1 — 167 45 
Depreciation and amortization expense21 22 22 30 17 17 60 69 
Other noninterest expense642 659 383 381 (9)(31)1,016 1,009 
Income (loss) from continuing operations before income taxes (TE)
108 169 266 426 (22)74 352 669 
Allocated income taxes and TE adjustments
26 41 52 86 (12)12 66 139 
Income (loss) from continuing operations82 128 214 340 (10)62 286 530 
Income (loss) from discontinued operations, net of taxes
— — — — 1 3 1 3 
Net income (loss)82 128 214 340 (9)65 287 533 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$82 $128 $214 $340 $(9)$65 $287 $533 
AVERAGE BALANCES (b)
Loans and leases$42,934 $40,827 $77,277 $67,825 $461 $486 $120,672 $109,138 
Total assets (a)
45,761 43,897 87,106 78,816 63,593 60,814 196,460 183,527 
Deposits82,498 91,394 51,420 54,846 8,985 1,231 142,903 147,471 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$32 $23 $20 $21 $— $— $52 $44 
Return on average allocated equity (b)
9.04 %13.94 %8.17 %15.29 %(14.75)%13.84 %7.96 %14.76 %
Return on average allocated equity9.04 13.94 8.17 15.29 (13.27)14.51 7.99 14.85 
Average full-time equivalent employees (c)
7,829 8,074 2,487 2,408 7,438 6,932 17,754 17,414 
(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.
(b)From continuing operations.
(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.
Six months ended June 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20232022202320222023202220232022
SUMMARY OF OPERATIONS
Net interest income (TE)$1,170 $1,157 $937 $893 $(15)$74 $2,092 $2,124 
Noninterest income473 511 712 798 32 55 1,217 1,364 
Total revenue (TE) (a)
1,643 1,668 1,649 1,691 17 129 3,309 3,488 
Provision for credit losses92 51 215 78 (1)(1)306 128 
Depreciation and amortization expense42 43 46 61 33 35 121 139 
Other noninterest expense1,284 1,308 801 763 46 (62)2,131 2,009 
Income (loss) from continuing operations before income taxes (TE)
225 266 587 789 (61)157 751 1,212 
Allocated income taxes and TE adjustments
54 64 118 157 (18)14 154 235 
Income (loss) from continuing operations171 202 469 632 (43)143 597 977 
Income (loss) from discontinued operations, net of taxes
— — — — 2 4 2 4 
Net income (loss)171 202 469 632 (41)147 599 981 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$171 $202 $469 $632 $(41)(d)$147 $599 $981 
AVERAGE BALANCES (b)
Loans and leases$43,009 $39,746 $76,794 $66,263 $454 $456 $120,257 $106,465 
Total assets (a)
45,847 42,856 86,483 76,827 61,342 63,377 193,672 183,060 
Deposits83,561 91,517 51,818 56,037 7,774 1,255 143,153 148,809 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$57 $45 $40 $32 — — $97 $77 
Return on average allocated equity (b)
9.46 %11.20 %9.09 %14.48 %(133.40)%9.18 %8.53 %12.64 %
Return on average allocated equity9.46 11.20 9.09 14.48 (127.20)9.43 8.56 12.69 
Average full-time equivalent employees (c)
7,962 8,012 2,502 2,412 7,523 6,838 17,987 17,262 
(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.
(b)From continuing operations.
(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.