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Business Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Business Segment Reporting
20. Business Segment Reporting

The following is description of the segments and their primary businesses at September 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 nine-month periods ended September 30, 2023, and September 30, 2022. Capital is assigned to each business segment based on a combination of regulatory and economic equity.
Three months ended September 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20232022202320222023202220232022
SUMMARY OF OPERATIONS
Net interest income (TE)$548 $618 $430 $484 $(55)$101 $923 $1,203 
Noninterest income243 259 360 394 40 30 643 683 
Total revenue (TE) (a)
791 877 790 878 (15)131 1,566 1,886 
Provision for credit losses14 37 68 74 (1)(2)81 109 
Depreciation and amortization expense21 22 21 28 13 18 55 68 
Other noninterest expense656 653 410 423 (11)(38)1,055 1,038 
Income (loss) from continuing operations before income taxes (TE)
100 165 291 353 (16)153 375 671 
Allocated income taxes and TE adjustments
24 40 65 66 (16)25 73 131 
Income (loss) from continuing operations76 125 226 287 — 128 302 540 
Income (loss) from discontinued operations, net of taxes
— — — — 1 2 1 2 
Net income (loss)76 125 226 287 1 130 303 542 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$76 $125 $226 $287 $1 $130 $303 $542 
AVERAGE BALANCES (b)
Loans and leases$42,250 $42,568 $74,951 $71,464 $426 $386 $117,627 $114,418 
Total assets (a)
45,078 45,659 85,274 81,899 61,989 60,634 192,341 188,192 
Deposits83,863 90,170 54,896 52,272 6,066 1,787 144,825 144,229 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$36 $17 $35 $27 $— $(1)$71 $43 
Return on average allocated equity (b)
8.48 %14.26 %8.64 %12.29 %(3.97)%27.13 %8.69 %14.66 %
Return on average allocated equity8.48 14.26 8.64 12.29 (7.93)27.55 8.72 14.71 
Average full-time equivalent employees (c)
7,684 8,182 2,531 2,535 7,451 7,190 17,666 17,907 
(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.
(b)From continuing operations.
(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.

Nine months ended September 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20232022202320222023202220232022
SUMMARY OF OPERATIONS
Net interest income (TE)$1,718 $1,775 $1,367 $1,377 $(70)$175 $3,015 $3,327 
Noninterest income716 769 1,072 1,192 72 86 1,860 2,047 
Total revenue (TE) (a)
2,434 2,544 2,439 2,569 2 261 4,875 5,374 
Provision for credit losses106 88 283 152 (2)(3)387 237 
Depreciation and amortization expense63 65 67 89 46 53 176 207 
Other noninterest expense1,940 1,960 1,210 1,186 36 (99)3,186 3,047 
Income (loss) from continuing operations before income taxes (TE)
325 431 879 1,142 (78)310 1,126 1,883 
Allocated income taxes and TE adjustments
78 104 184 224 (35)38 227 366 
Income (loss) from continuing operations247 327 695 918 (43)272 899 1,517 
Income (loss) from discontinued operations, net of taxes
— — — — 3 6 3 6 
Net income (loss)247 327 695 918 (40)278 902 1,523 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$247 $327 $695 $918 $(40)(d)$278 $902 $1,523 
AVERAGE BALANCES (b)
Loans and leases$42,754 $40,697 $76,173 $68,016 $444 $431 $119,371 $109,144 
Total assets (a)
45,588 43,801 86,075 78,536 61,560 62,452 193,223 184,789 
Deposits83,663 91,063 52,855 54,768 7,198 1,435 143,716 147,266 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$93 $62 $76 $59 (1)(1)$168 $120 
Return on average allocated equity (b)
9.13 %12.20 %8.94 %13.70 %(623.93)%13.40 %8.58 %13.29 %
Return on average allocated equity9.13 12.20 8.94 13.70 (579.37)13.70 8.61 13.35 
Average full-time equivalent employees (c)
7,868 8,069 2,512 2,453 7,500 6,955 17,880 17,477 
(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.