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Business Segment Reporting
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Business Segment Reporting
20. Business Segment Reporting

The following is description of the segments and their primary businesses at June 30, 2024.

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, mortgage and home equity, student loan refinancing, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist institutional, non-profit, and high-net-worth clients with their banking, trust, portfolio management, charitable giving, and related needs.
Commercial Bank

The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate bank focused principally on serving the borrowing, cash management, and capital markets needs of middle market clients within Key’s 15-state branch footprint. 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 established expertise in the following sectors: Consumer, Energy, Healthcare, Industrial, Public Sector, Real Estate, and Technology. It is also a significant, national, commercial real estate lender and third-party servicer of commercial mortgage loans and a special servicer of CMBS. The Institutional operating segment is also a significant, national, commercial real estate lender and third-party servicer of commercial mortgage loans and a special servicer of CMBS. The operating segment also includes the KBCM platform which provides a broad suite of capital markets products and services including syndicated finance, debt and equity underwriting, fixed income and equity sales and trading, derivatives, foreign exchange, mergers & acquisition and other advisory, and public finance.

Other

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

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

The table below shows selected financial data for our business segments for the three- and six-month periods ended June 30, 2024, and June 30, 2023. 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 millions20242023202420232024202320242023
SUMMARY OF OPERATIONS
Net interest income (TE)$535 $544 $411 $475 $(47)$(33)$899 $986 
Noninterest income234 243 358 348 35 18 627 609 
Total revenue (TE) (a)
769 787 769 823 (12)(15)1,526 1,595 
Provision for credit losses33 32 87 134 (20)1 100 167 
Depreciation and amortization expense18 21 19 22 17 17 54 60 
Other noninterest expense630 641 412 384 (17)(9)1,025 1,016 
Income (loss) from continuing operations before income taxes (TE)
88 93 251 283 8 (24)347 352 
Allocated income taxes and TE adjustments
21 22 44 56 9 (12)74 66 
Income (loss) from continuing operations67 71 207 227 (1)(12)273 286 
Income (loss) from discontinued operations, net of taxes
— — — — 1 1 1 1 
Net income (loss)67 71 207 227 — (11)274 287 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$67 $71 $207 $227 $— $(11)$274 $287 
AVERAGE BALANCES (b)
Loans and leases$39,174 $42,297 $69,248 $77,922 $539 $453 $108,961 $120,672 
Total assets (a)
42,008 45,116 78,328 87,759 66,247 63,585 186,583 196,460 
Deposits85,397 81,406 57,360 52,512 1,423 8,985 144,180 142,903 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$45 $32 $64 $20 $(18)$— $91 $52 
Return on average allocated equity (b)
7.93 %8.00 %8.31 %8.61 %(.37)%(17.70)%7.57 %7.96 %
Return on average allocated equity7.93 8.00 8.31 8.61 — (16.22)7.59 7.99 
Average full-time equivalent employees (c)
7,337 7,811 2,320 2,505 6,989 7,438 16,646 17,754 
(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 millions20242023202420232024202320242023
SUMMARY OF OPERATIONS
Net interest income (TE)$1,067 $1,143 $808 $968 $(90)$(19)$1,785 $2,092 
Noninterest income458 468 759 717 57 32 1,274 1,217 
Total revenue (TE) (a)
1,525 1,611 1,567 1,685 (33)13 3,059 3,309 
Provision for credit losses31 92 189 215 (19)(1)201 306 
Depreciation and amortization expense41 42 42 46 25 33 108 121 
Other noninterest expense1,310 1,282 831 803 (27)46 2,114 2,131 
Income (loss) from continuing operations before income taxes (TE)
143 195 505 621 (12)(65)636 751 
Allocated income taxes and TE adjustments
34 46 93 126 17 (18)144 154 
Income (loss) from continuing operations109 149 412 495 (29)(47)492 597 
Income (loss) from discontinued operations, net of taxes
— — — — 1 2 1 2 
Net income (loss)109 149 412 495 (28)(45)493 599 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$109 $149 $412 $495 $(28)(d)$(45)$493 $599 
AVERAGE BALANCES (b)
Loans and leases$39,547 $42,377 $69,940 $77,435 $510 $445 $109,997 $120,257 
Total assets (a)
42,359 45,206 79,164 87,132 64,702 61,334 186,225 193,672 
Deposits84,736 82,460 56,846 52,918 1,948 7,775 143,530 143,153 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$89 $57 $102 $40 (19)— $172 $97 
Return on average allocated equity (b)
6.34 %8.41 %8.27 %9.52 %(5.17)%(145.81)%6.78 %8.53 %
Return on average allocated equity6.34 8.41 8.27 9.52 (4.99)(139.61)6.79 8.56 
Average full-time equivalent employees (c)
7,347 7,944 2,327 2,520 7,025 7,523 16,699 17,987 
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.