<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0609</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2026-03-17</periodOfReport>

    <issuer>
        <issuerCik>0000091576</issuerCik>
        <issuerName>KEYCORP /NEW/</issuerName>
        <issuerTradingSymbol>KEY</issuerTradingSymbol>
        <issuerForeignTradingSymbol></issuerForeignTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000009631</rptOwnerCik>
            <rptOwnerName>BANK OF NOVA SCOTIA</rptOwnerName>
        </reportingOwnerId>
    <reportingOwnerAddress>
      <rptOwnerNonUSAddressFlag>true</rptOwnerNonUSAddressFlag>
      <rptOwnerStreet1>40 TEMPERANCE STREET</rptOwnerStreet1>
      <rptOwnerCity>TORONTO</rptOwnerCity>
      <rptOwnerCountry>A6</rptOwnerCountry>
      <rptOwnerZipCode>M5H 0B4</rptOwnerZipCode>
    </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>true</isDirector>
            <isTenPercentOwner>true</isTenPercentOwner>
        </reportingOwnerRelationship>
    </reportingOwner>

    <aff10b5One>false</aff10b5One>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Shares</value>
            </securityTitle>
            <transactionDate>
                <value>2026-03-17</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>183268</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>19.43</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>159876052</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Disposition pursuant to the Investment Agreement by and between the Reporting Person and the Issuer, dated August 12, 2024 (the &quot;Investment Agreement&quot;), and related arrangements between the Reporting Person and the Issuer, pursuant to which the Reporting Person participates (in certain circumstances, automatically), on a pro rata basis, in any repurchase by the Issuer of its common shares.</footnote>
    </footnotes>

    <remarks>Solely for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, the Reporting Person may be deemed to be a director-by-deputization by virtue of the Reporting Person's contractual right to nominate directors to the board of directors of the Issuer pursuant to the Investment Agreement.</remarks>

    <ownerSignature>
        <signatureName>/s/ Raj Sachdeva, Vice President, Head of GBM&amp;T Compliance Canada</signatureName>
        <signatureDate>2026-03-18</signatureDate>
    </ownerSignature>
</ownershipDocument>
