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KEYCORP REPORTS THIRD QUARTER 2024 NET LOSS OF $(447) MILLION, OR $(.47) PER DILUTED COMMON SHARE, AND ADJUSTED NET INCOME OF $290 MILLION, OR $.30 PER DILUTED COMMON SHARE(a)

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KeyCorp reported a net loss of $(447) million, or $(0.47) per diluted share, for Q3 2024. Adjusted net income was $290 million or $0.30 per share. Results included a $(737) million after-tax charge related to securities sales. Key received an $821 million investment from Scotiabank, boosting its CET1 ratio to 10.8%.

Net interest income rose 7% quarter-over-quarter to $964 million, with average deposits up 2.5%. Fee income showed strength in investment banking, commercial mortgage servicing, and wealth management. Credit quality remained stable. The company continues to expect completion of the final Scotiabank investment tranche in Q1 2025, subject to approval.

CEO Chris Gorman expressed optimism about Key's business trajectory, citing strong fee pipelines, expected net interest income tailwinds, and a stable-to-improved credit outlook.

Positive
  • Received $821 million investment from Scotiabank, boosting CET1 ratio to 10.8%
  • Net interest income increased 7% quarter-over-quarter to $964 million
  • Average deposits grew 2.5% quarter-over-quarter and 4% year-over-year
  • Strong fee momentum in investment banking, commercial mortgage servicing, and wealth management
  • Nonperforming assets and provision for credit losses stable to improved quarter-over-quarter
Negative
  • Reported net loss of $(447) million or $(0.47) per diluted share
  • Incurred $(737) million after-tax charge related to securities sales
  • Average loans decreased 2.5% quarter-over-quarter and 9.7% year-over-year
  • Net loan charge-offs increased to $154 million or 0.58% of average total loans
  • Nonperforming loans increased to 0.69% of period-end portfolio loans, up from 0.39% a year ago

Insights

KeyCorp's Q3 2024 results show mixed performance. The headline $447 million net loss ($0.47 per share) was primarily due to a $918 million loss on securities sales as part of a strategic portfolio repositioning. Adjusted net income was $290 million ($0.30 per share).

Key positives include:

  • Net interest income up 7% quarter-over-quarter
  • Average deposits up 2.5% quarter-over-quarter and 4% year-over-year
  • Strong fee income growth in investment banking, commercial mortgage servicing and wealth management
  • Improved capital ratios with CET1 at 10.8%

However, challenges remain with average loans down 9.7% year-over-year and net charge-offs increasing to 0.58% of average loans. The strategic repositioning should enhance future earnings and capital, but near-term profitability has been impacted.

KeyCorp's Q3 results reflect ongoing industry challenges but also show progress on key strategic initiatives. The $821 million initial investment from Scotiabank strengthens Key's capital position, with more to come in Q1 2025. This should provide a buffer against potential credit deterioration and support future growth.

The 7% quarter-over-quarter increase in net interest income is encouraging, driven by higher yields on reinvested securities and maturing swaps. However, the 9.7% year-over-year decline in average loans indicates continued weak loan demand and deliberate balance sheet optimization.

Fee income growth in capital markets and wealth management is a bright spot, suggesting Key's diversified business model is providing some resilience. The increase in net charge-offs and nonperforming loans bears watching, though overall credit quality remains manageable.

Key's strategic actions should improve its competitive positioning, but execution risks remain in a challenging operating environment.

Received initial $821 million tranche of strategic minority investment from Scotiabank; Common Equity Tier 1 ratio of 10.8% and Tangible Common Equity ratio of 6.2%(b)

Net interest income up 7% quarter-over-quarter, with average deposits up 2.5%; Client deposits were up 4% year-over-year

Continued strong fee momentum across investment banking, commercial mortgage servicing, commercial payments, and wealth management

Nonperforming assets and provision for credit losses were stable to improved quarter-over-quarter

CLEVELAND, Oct. 17, 2024 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced net loss from continuing operations attributable to Key common shareholders of $(447) million, or $(.47) per diluted common share, or adjusted net income of $290 million or $.30 per diluted common share(a), for the third quarter of 2024. Included in the third quarter of 2024 are $(737) million, or $(.77) per diluted common share, after-tax, of charges related to the loss on the sale of securities(c). Net income from continuing operations attributable to Key common shareholders was $237 million, or $.25 per diluted common share, for the second quarter of 2024 and $266 million, or $.29 per diluted common share, for the third quarter of 2023.

Comments from Chairman and CEO, Chris Gorman

"Key performed well in the third quarter. EPS was impacted by a previously communicated securities portfolio repositioning that will enhance future earnings, capital, and liquidity starting in the fourth quarter. Underlying results were solid as relationship clients, deposits, and business-related fees all demonstrated continued momentum. As anticipated, we saw a meaningful increase in net interest income, up 7% quarter-over-quarter, as substantial portions of low-yielding securities and swaps matured. Concurrently, both our credit risk profile and expenses remained stable.

We continue to make progress regarding our $2.8 billion capital raise from Scotiabank, completing the initial $821 million investment tranche this quarter. As a result of this initial investment and the meaningful decline in interest rates in the third quarter, our tangible common equity ratio improved by 100 basis points quarter-over-quarter, and our reported CET1 ratio further strengthened to 10.8%. We continue to expect to complete the final tranche of the equity financing in the first quarter of 2025, subject to Fed approval.

Our fee-based pipelines continue to build. Investment banking and debt placement pipelines remain near record levels. Wealth management and commercial payments continue to demonstrate momentum.

Given the combination of our strong pipelines, further expected net interest income tailwinds in the quarters ahead, and a stable-to-improved credit outlook, I remain optimistic with respect to the trajectory of our business and our ability to drive value for all of our stakeholders."

(a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "adjusted earnings per share" and "adjusted net income." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(b) September 30, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

(c) See table on page 25 for more information on Selected Items Impact on Earnings.

 

Selected Financial Highlights















Dollars in millions, except per share data





Change 3Q24 vs.



3Q24

2Q24

3Q23


2Q24

3Q23

Income (loss) from continuing operations attributable to Key common shareholders

$    (447)

$      237

$      266


(288.6) %

(268.0) %

Income (loss) from continuing operations attributable to Key common shareholders per
    common share — assuming dilution

(.47)

.25

.29


(288.0)

(262.1)

Return on average tangible common equity from continuing operations (a)

(16.98) %

10.39 %

12.40 %


N/A

N/A

Return on average total assets from continuing operations

(.87)

.59

.62


N/A

N/A

Common Equity Tier 1 ratio (b)

10.8

10.5

9.8


N/A

N/A

Book value at period end

$   14.53

$   13.09

$   11.65


11.0

24.7

Net interest margin (TE) from continuing operations

2.17 %

2.04 %

2.01 %


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 "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.

(b)

September 30, 2024 ratio is estimated.

TE = Taxable Equivalent, N/A = Not Applicable

 

INCOME STATEMENT HIGHLIGHTS














Revenue














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Net interest income (TE)

$        964

$        899

$        923


7.2 %

4.4 %

Noninterest income

(269)

627

643


(142.9)

(141.8)

Total revenue (TE)

$        695

$      1,526

$      1,566


(54.5) %

(55.6) %








TE = Taxable Equivalent

 

Taxable-equivalent net interest income was $964 million for the third quarter of 2024 and the net interest margin was 2.17%. Compared to the third quarter of 2023, net interest income increased by $41 million, and the net interest margin increased by 16 basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding investments, the maturity of lower-yielding interest rate swaps with negative carry, and a shift in funding mix from higher-cost wholesale borrowings to lower-cost interest-bearing deposits. In addition, during the third quarter of 2024, Key began the repositioning of the available-for-sale portfolio, which involved the sale of approximately $7.0 billion of lower-yielding mortgaged-backed securities and reinvestment of the proceeds into higher-yielding investments. These benefits were partially offset by a decline in loan balances and higher deposit costs relative to a year ago.

Compared to the second quarter of 2024, taxable-equivalent net interest income increased by $65 million, and the net interest margin increased by 13 basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding investments, continued amortization of low-yielding interest rate swaps that had been terminated in 2023, the repositioning of the available-for-sale portfolio, and an improved funding mix. Lower loan balances and higher interest-bearing deposit costs somewhat offset the increase.

Noninterest Income














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Trust and investment services income

$        140

$        139

$        130


.7 %

7.7 %

Investment banking and debt placement fees

171

126

141


35.7

21.3

Cards and payments income

84

85

90


(1.2)

(6.7)

Service charges on deposit accounts

67

66

69


1.5

(2.9)

Corporate services income

69

68

73


1.5

(5.5)

Commercial mortgage servicing fees

73

61

46


19.7

58.7

Corporate-owned life insurance income

36

34

35


5.9

2.9

Consumer mortgage income

12

16

15


(25.0)

(20.0)

Operating lease income and other leasing gains

16

21

22


(23.8)

(27.3)

Other income

(937)

11

22


N/M

N/M

Total noninterest income

$       (269)

$        627

$        643


(142.9) %

(141.8) %








N/M = Not Meaningful

 

Compared to the third quarter of 2023, noninterest income decreased by $912 million. The decrease was driven primarily by a $918 million loss on the sale of securities as part of a strategic repositioning of the portfolio in the third quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. The decline was partly offset by a $30 million increase in investment banking and debt placement fees, reflective of stronger syndication, debt, and equity underwriting fees, as well as a $27 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances and overall growth of the servicing portfolio.

Compared to the second quarter of 2024, noninterest income decreased by $896 million. The decrease was driven primarily by the loss on the sale of securities referenced above. The decline was partly offset by a $45 million increase in investment banking and debt placement fees, reflective of stronger syndication and equity underwriting fees, as well as a $12 million increase in commercial mortgage servicing fees.

Noninterest Expense














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Personnel expense

$        670

$        636

$        663


5.3 %

1.1 %

Net occupancy

66

66

67


—

(1.5)

Computer processing

104

101

89


3.0

16.9

Business services and professional fees

41

37

38


10.8

7.9

Equipment

20

20

20


—

—

Operating lease expense

14

17

18


(17.6)

(22.2)

Marketing

21

21

28


—

(25.0)

Other expense

158

181

187


(12.7)

(15.5)

Total noninterest expense

$      1,094

$      1,079

$      1,110


1.4 %

(1.4) %








 

Compared to the third quarter of 2023, noninterest expense decreased $16 million. The decline in noninterest expense was driven by a $7 million decrease in marketing expense, and a reduction in the estimated FDIC special assessment in the third quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. Partly offsetting the decline was an increase in computer processing expense of $15 million, due to technology investments, and a $7 million increase in personnel expense due to an increase in incentive and stock-based compensation related to strong capital markets activity and a higher stock price compared to the year-ago period.

Compared to the second quarter of 2024, noninterest expense increased by $15 million. The increase was driven by a $34 million increase in personnel expense, primarily from incentive and stock-based compensation, reflecting stronger capital markets activity. The increase was partly offset by a decline in other expense of $23 million, related to a reduction of the estimated FDIC special assessment charge recognized in the third quarter of 2024 when compared to the second quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information.

BALANCE SHEET HIGHLIGHTS














Average Loans














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Commercial and industrial (a)

$    53,121

$    54,599

$    59,187


(2.7) %

(10.2) %

Other commercial loans

19,929

20,500

22,371


(2.8)

(10.9)

Total consumer loans

33,194

33,862

36,069


(2.0)

(8.0)

Total loans

$  106,244

$  108,961

$  117,627


(2.5) %

(9.7) %








(a)

Commercial and industrial average loan balances include $215 million, $218 million, and $202 million of assets from commercial credit cards at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

 

Average loans were $106.2 billion for the third quarter of 2024, a decrease of $11.4 billion compared to the third quarter of 2023, reflective of Key's planned balance sheet optimization efforts in 2023, and continued tepid client loan demand. The decline in average loans was mostly driven by a $8.5 billion decline in average commercial loans, due to lower commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined by $2.9 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the second quarter of 2024, average loans decreased by $2.7 billion. Average commercial loans declined by $2.0 billion, primarily driven by a decrease in commercial and industrial loans and commercial mortgage real estate loans. Average consumer loans declined $668 million, driven by broad-based declines across all consumer loan categories.

Average Deposits














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Non-time deposits

$  129,901

$  128,161

$  129,743


1.4 %

0.1 %

Time deposits

17,870

16,019

15,082


11.6

18.5

Total deposits

$  147,771

$  144,180

$  144,825


2.5 %

2.0 %








Cost of total deposits

2.39 %

2.28 %

1.88 %


N/A

N/A








N/A = Not Applicable

 

Average deposits totaled $147.8 billion for the third quarter of 2024, an increase of $2.9 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.

Compared to the second quarter of 2024, average deposits increased by $3.6 billion, driven by an increase in both consumer and commercial deposit balances.

ASSET QUALITY














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Net loan charge-offs

$      154

$       91

$       71


69.2 %

116.9 %

Net loan charge-offs to average total loans

.58 %

.34 %

.24 %


N/A

N/A

Nonperforming loans at period end

$      728

$      710

$      455


2.5

60.0

Nonperforming assets at period end

741

727

471


1.9

57.3

Allowance for loan and lease losses

1,494

1,547

1,488


(3.4)

0.4

Allowance for credit losses

1,774

1,833

1,778


(3.2)

(0.2)

Provision for credit losses

95

100

81


(5.0)

17.3








Allowance for loan and lease losses to nonperforming loans

205 %

218 %

327 %


N/A

N/A

Allowance for credit losses to nonperforming loans

244

258

391


N/A

N/A








N/A = Not Applicable

 

Key's provision for credit losses was $95 million, compared to $81 million in the third quarter of 2023 and $100 million in the second quarter of 2024. The increase from the year-ago period reflects continued, but slowing, credit portfolio migration, higher net charge-offs, and changes in the economic outlook, partly offset by balance sheet optimization efforts.

Net loan charge-offs for the third quarter of 2024 totaled $154 million, or 0.58% of average total loans. These results compare to $71 million, or 0.24%, for the third quarter of 2023 and $91 million, or 0.34%, for the second quarter of 2024. Key's allowance for credit losses was $1.8 billion, or 1.68% of total period-end loans at September 30, 2024, compared to 1.54% at September 30, 2023, and 1.71% at June 30, 2024.

At September 30, 2024, Key's nonperforming loans totaled $728 million, which represented 0.69% of period-end portfolio loans. These results compare to 0.39% at September 30, 2023, and 0.66% at June 30, 2024. Nonperforming assets at September 30, 2024, totaled $741 million, and represented 0.70% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.41% at September 30, 2023, and 0.68% at June 30, 2024.

CAPITAL

Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at September 30, 2024.

Capital Ratios









9/30/2024

6/30/2024

9/30/2023

Common Equity Tier 1 (a)

10.8 %

10.5 %

9.8 %

Tier 1 risk-based capital (a)

12.6

12.2

11.4

Total risk-based capital (a)

15.1

14.7

13.8

Tangible common equity to tangible assets (b)

6.2

5.2

4.4

Leverage (a)

9.2

9.1

8.9





(a)

September 30, 2024 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 regulatory capital position remained strong in the third quarter of 2024. As shown in the preceding table, at September 30, 2024, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 10.8% and 12.6%, respectively. Key's tangible common equity ratio was 6.2% at September 30, 2024.

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 five basis points.

Summary of Changes in Common Shares Outstanding













In thousands





Change 3Q24 vs.



3Q24

2Q24

3Q23


2Q24

3Q23

Shares outstanding at beginning of period

943,200

942,776

935,733


— %

.8 %

Shares issued under employee compensation plans (net of cancellations and returns)

222

424

428


(47.6)

(48.1)

Shares issued under Scotiabank investment agreement

47,829

—

—


N/M

N/M


Shares outstanding at end of period

991,251

943,200

936,161


5.1 %

5.9 %








N/M = Not Meaningful

 

Key declared a dividend of $.205 per common share for the third quarter of 2024.

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.

Major Business Segments















Dollars in millions





Change 3Q24 vs.



3Q24

2Q24

3Q23


2Q24

3Q23

Revenue from continuing operations (TE)







Consumer Bank

$         814

$         769

$         775


5.9 %

5.0 %

Commercial Bank

868

770

809


12.7

7.3

Other (a)

(987)

(13)

(18)


N/M

N/M


Total

$         695

$       1,526

$       1,566


(54.5) %

(55.6) %









Income (loss) from continuing operations attributable to Key







Consumer Bank

$           86

$           67

$           65


28.4 %

32.3 %

Commercial Bank

300

207

240


44.9

25.0

Other (a)

(797)

(1)

(3)


N/M

N/M


Total

$        (411)

$         273

$         302


(250.5) %

(236.1) %









(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. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. 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

N/M = Not Meaningful

 

Consumer Bank














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Summary of operations







Net interest income (TE)

$         584

$         535

$         534


9.2 %

9.4 %

Noninterest income

230

234

241


(1.7)

(4.6)

Total revenue (TE)

814

769

775


5.9

5.0

Provision for credit losses

52

33

14


57.6

271.4

Noninterest expense

649

648

676


.2

(4.0)

Income (loss) before income taxes (TE)

113

88

85


28.4

32.9

Allocated income taxes (benefit) and TE adjustments

27

21

20


28.6

35.0

Net income (loss) attributable to Key

$           86

$           67

$           65


28.4 %

32.3 %








Average balances







Loans and leases

$     38,332

$     39,174

$     41,610


(2.1) %

(7.9) %

Total assets

41,188

42,008

44,429


(2.0)

(7.3)

Deposits

86,431

85,397

82,683


1.2

4.5








Assets under management at period end

$     61,122

$     57,602

$     52,516


6.1 %

16.4 %








TE = Taxable Equivalent

 

Additional Consumer Bank Data














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Noninterest income







Trust and investment services income

$       114

$       112

$       105


1.8 %

8.6 %

Service charges on deposit accounts

34

34

39


—

(12.8)

Cards and payments income

60

61

65


(1.6)

(7.7)

Consumer mortgage income

12

16

15


(25.0)

(20.0)

Other noninterest income

10

11

17


(9.1)

(41.2)

Total noninterest income

$       230

$       234

$       241


(1.7) %

(4.6) %








Average deposit balances







Money market deposits

$  30,805

$  30,229

$  28,638


1.9 %

7.6 %

Demand deposits

22,310

22,292

22,526


.1

(1.0)

Savings deposits

4,553

4,791

5,676


(5.0)

(19.8)

Time deposits

13,927

13,038

8,752


6.8

59.1

Noninterest-bearing deposits

14,836

15,047

17,091


(1.4)

(13.2)

Total deposits

$  86,431

$  85,397

$  82,683


1.2 %

4.5 %








Other data







Branches

944

946

959




Automated teller machines

1,194

1,199

1,249











 

Consumer Bank Summary of Operations (3Q24 vs. 3Q23)

  • Key's Consumer Bank recorded net income attributable to Key of $86 million for the third quarter of 2024, compared to $65 million for the year-ago quarter
  • Taxable-equivalent net interest income increased by $50 million, or 9.4%, compared to the third quarter of 2023
  • Average loans and leases decreased $3.3 billion, or 7.9%, from the third quarter of 2023, driven by broad-based declines across all loan categories
  • Average deposits increased $3.7 billion, or 4.5%, from the third quarter of 2023, driven by growth in retail deposits
  • Provision for credit losses increased $38 million compared to the third quarter of 2023, driven by changes in economic outlook and higher net charge-offs, partly offset by planned balance sheet optimization efforts
  • Noninterest income decreased $11 million from the year-ago quarter, driven by declines in service charges on deposit accounts and cards and payments income
  • Noninterest expense decreased $27 million from the year-ago quarter, reflective of lower marketing expense

 

Commercial Bank














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Summary of operations







Net interest income (TE)

$         460

$         411

$         446


11.9 %

3.1 %

Noninterest income

408

359

363


13.6

12.4

Total revenue (TE)

868

770

809


12.7

7.3

Provision for credit losses

41

87

68


(52.9)

(39.7)

Noninterest expense

445

432

433


3.0

2.8

Income (loss) before income taxes (TE)

382

251

308


52.2

24.0

Allocated income taxes and TE adjustments

82

44

68


86.4

20.6

Net income (loss) attributable to Key

$         300

$         207

$         240


44.9 %

25.0 %








Average balances







Loans and leases

$     67,452

$     69,248

$     75,598


(2.6) %

(10.8) %

Loans held for sale

998

522

1,268


91.2

(21.3)

Total assets

76,395

78,328

85,930


(2.5)

(11.1)

Deposits

58,696

57,360

56,078


2.3 %

4.7 %








TE = Taxable Equivalent

 

Additional Commercial Bank Data














Dollars in millions





Change 3Q24 vs.


3Q24

2Q24

3Q23


2Q24

3Q23

Noninterest income







Trust and investment services income

$           26

$           26

$           25


— %

4.0 %

Investment banking and debt placement fees

171

126

141


35.7

21.3

Cards and payments income

22

21

18


4.8

22.2

Service charges on deposit accounts

32

31

29


3.2

10.3

Corporate services income

62

61

64


1.6

(3.1)

Commercial mortgage servicing fees

73

61

45


19.7

62.2

Operating lease income and other leasing gains

16

21

22


(23.8)

(27.3)

Other noninterest income

6

12

19


(50.0)

(68.4)

Total noninterest income

$         408

$         359

$         363


13.6 %

12.4 %








 

Commercial Bank Summary of Operations (3Q24 vs. 3Q23)

  • Key's Commercial Bank recorded net income attributable to Key of $300 million for the third quarter of 2024 compared to $240 million for the year-ago quarter
  • Taxable-equivalent net interest income increased by $14 million, or 3.1%, compared to the third quarter of 2023
  • Average loan and lease balances decreased $8.1 billion, or 10.8%, compared to the third quarter of 2023, driven by a decline in commercial and industrial loans
  • Average deposit balances increased $2.6 billion compared to the third quarter of 2023, driven by our focus on growing deposits across our commercial businesses
  • Provision for credit losses decreased $27 million compared to the third quarter of 2023, driven by the impact of balance sheet optimization efforts, partly offset by slowing credit portfolio migration, changes in economic outlook, and higher net charge-offs
  • Noninterest income increased $45 million compared to the third quarter of 2023, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
  • Noninterest expense increased $12 million compared to the third quarter of 2023, driven by higher incentive compensation related to stronger investment banking and debt placement fees

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

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 $190 billion at September 30, 2024.

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 1,200 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.

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, 2023 and 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/ir at 9:00 a.m. ET, on October 17, 2024. A replay of the call will be available on our website through October 17, 2025.

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
Third Quarter 2024
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

22

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

25

Selected Items Impact on Earnings

 

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

 

Financial Highlights

(Dollars in millions, except per share amounts)




Three months ended




9/30/2024

6/30/2024

9/30/2023

Summary of operations





Net interest income (TE)

$           964

$           899

$           923


Noninterest income

(269)

627

643



Total revenue (TE)

695

1,526

1,566


Provision for credit losses

95

100

81


Noninterest expense

1,094

1,079

1,110


Income (loss) from continuing operations attributable to Key

(411)

273

302


Income (loss) from discontinued operations, net of taxes

1

1

1


Net income (loss) attributable to Key

(410)

274

303








Income (loss) from continuing operations attributable to Key common shareholders

(447)

237

266


Income (loss) from discontinued operations, net of taxes

1

1

1


Net income (loss) attributable to Key common shareholders

(446)

238

267







Per common share





Income (loss) from continuing operations attributable to Key common shareholders

$           (.47)

$            .25

$            .29


Income (loss) from discontinued operations, net of taxes

—

—

—


Net income (loss) attributable to Key common shareholders (a)

(.47)

.25

.29








Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution

(.47)

.25

.29


Income (loss) from discontinued operations, net of taxes — assuming dilution

—

—

—


Net income (loss) attributable to Key common shareholders — assuming dilution (a)

(.47)

.25

.29








Cash dividends declared

.205

.205

.205


Book value at period end

14.53

13.09

11.65


Tangible book value at period end

11.72

10.13

8.65


Market price at period end

16.75

14.21

10.76







Performance ratios





From continuing operations:





Return on average total assets

(.87) %

.59 %

.62 %


Return on average common equity

(13.41)

7.96

9.31


Return on average tangible common equity (b)

(16.98)

10.39

12.40


Net interest margin (TE)

2.17

2.04

2.01


Cash efficiency ratio (b)

156.4

70.2

70.3








From consolidated operations:





Return on average total assets

(.87) %

.59 %

.62 %


Return on average common equity

(13.38)

7.99

9.35


Return on average tangible common equity (b)

(16.95)

10.43

12.45


Net interest margin (TE)

2.17

2.04

2.01


Loan to deposit (c)

71.0

74.0

80.8







Capital ratios at period end





Key shareholders' equity to assets

8.9 %

7.9 %

7.1 %


Key common shareholders' equity to assets

7.6

6.6

5.8


Tangible common equity to tangible assets (b)

6.2

5.2

4.4


Common Equity Tier 1 (d)

10.8

10.5

9.8


Tier 1 risk-based capital (d)

12.6

12.2

11.4


Total risk-based capital (d)

15.1

14.7

13.8


Leverage (d)

9.2

9.1

8.9







Asset quality — from continuing operations





Net loan charge-offs

$           154

$             91

$             71


Net loan charge-offs to average loans

.58 %

.34 %

.24 %


Allowance for loan and lease losses

$         1,494

$         1,547

$         1,488


Allowance for credit losses

1,774

1,833

1,778


Allowance for loan and lease losses to period-end loans

1.42 %

1.44 %

1.29 %


Allowance for credit losses to period-end loans

1.68

1.71

1.54


Allowance for loan and lease losses to nonperforming loans

205

218

327


Allowance for credit losses to nonperforming loans

244

258

391


Nonperforming loans at period-end

$           728

$           710

$           455


Nonperforming assets at period-end

741

727

471


Nonperforming loans to period-end portfolio loans

.69 %

.66 %

.39 %


Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

.70

.68

.41







Trust assets





Assets under management

$       61,122

$       57,602

$       52,516

Other data





Average full-time equivalent employees

16,805

16,646

17,666


Branches

944

946

959


Taxable-equivalent adjustment

$             12

$             12

$              8

 





Financial Highlights (continued)

(Dollars in millions, except per share amounts)



Nine months ended



9/30/2024

9/30/2023

Summary of operations




Net interest income (TE)

$                  2,749

$                  3,015


Noninterest income

1,005

1,860


Total revenue (TE)

3,754

4,875


Provision for credit losses

296

387


Noninterest expense

3,316

3,362


Income (loss) from continuing operations attributable to Key

81

899


Income (loss) from discontinued operations, net of taxes

2

3


Net income (loss) attributable to Key

83

902






Income (loss) from continuing operations attributable to Key common shareholders

(27)

791


Income (loss) from discontinued operations, net of taxes

2

3


Net income (loss) attributable to Key common shareholders

(25)

794





Per common share




Income (loss) from continuing operations attributable to Key common shareholders

$                    (.03)

$                     .85


Income (loss) from discontinued operations, net of taxes

—

—


Net income (loss) attributable to Key common shareholders (a)

(.03)

.86






Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution

(.03)

.85


Income (loss) from discontinued operations, net of taxes — assuming dilution

—

—


Net income (loss) attributable to Key common shareholders — assuming dilution (a)

(.03)

.85






Cash dividends paid

.62

.62





Performance ratios




From continuing operations:




Return on average total assets

.06 %

.62 %


Return on average common equity

(.29)

9.18


Return on average tangible common equity (b)

(.37)

12.17


Net interest margin (TE)

2.08

2.20


Cash efficiency ratio (b)

87.7

68.4






From consolidated operations:




Return on average total assets

.06 %

.62 %


Return on average common equity

(0.27)

9.22


Return on average tangible common equity (b)

(0.35)

12.22


Net interest margin (TE)

2.08

2.20





Asset quality — from continuing operations




Net loan charge-offs

$                     326

$                     168


Net loan charge-offs to average total loans

.40 %

.19 %





Other data




Average full-time equivalent employees

16,734

17,880





Taxable-equivalent adjustment

35

23

 

(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)

September 30, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.

 

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," "cash efficiency ratio," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."

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.

Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or "adjusted net income") and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude securities portfolio repositioning, net of tax, that occurred in the third quarter of 2024. Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the significant losses related to the securities repositioning.

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


Nine months ended


9/30/2024

6/30/2024

9/30/2023


9/30/2024

9/30/2023

Tangible common equity to tangible assets at period-end







Key shareholders' equity (GAAP)

$   16,852

$   14,789

$   13,356




Less: Intangible assets (a)

2,786

2,793

2,816




Preferred Stock (b)

2,446

2,446

2,446




Tangible common equity (non-GAAP)

$   11,620

$     9,550

$     8,094




Total assets (GAAP)

$ 189,763

$ 187,450

$ 187,851




Less: Intangible assets (a)

2,786

2,793

2,816




Tangible assets (non-GAAP)

$ 186,977

$ 184,657

$ 185,035




Tangible common equity to tangible assets ratio (non-GAAP)

6.21 %

5.17 %

4.37 %




Pre-provision net revenue







Net interest income (GAAP)

$        952

$        887

$        915


$    2,714

$    2,992

Plus: Taxable-equivalent adjustment

12

12

8


35

23

Noninterest income

(269)

627

643


1,005

1,860

Less: Noninterest expense

1,094

1,079

1,110


3,316

3,362

Pre-provision net revenue from continuing operations (non-GAAP)

$      (399)

$        447

$        456


$       438

$    1,513

Average tangible common equity







Average Key shareholders' equity (GAAP)

$   15,759

$   14,474

$   13,831


$  14,963

$  14,020

Less: Intangible assets (average) (c)

2,789

2,796

2,821


2,796

2,831

Preferred stock (average)

2,500

2,500

2,500


2,500

2,500

Average tangible common equity (non-GAAP)

$   10,470

$     9,178

$     8,510


$    9,667

$    8,689

Return on average tangible common equity from continuing operations







Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)

$      (447)

$        237

$        266


$       (27)

$       791

Average tangible common equity (non-GAAP)

10,470

9,178

8,510


9,667

8,689








Return on average tangible common equity from continuing operations (non-GAAP)

(16.98) %

10.39 %

12.40 %


(0.37) %

12.17 %

Return on average tangible common equity consolidated







Net income (loss) attributable to Key common shareholders (GAAP)

$      (446)

$        238

$        267


$       (25)

$       794

Average tangible common equity (non-GAAP)

10,470

9,178

8,510


9,667

8,689








Return on average tangible common equity consolidated (non-GAAP)

(16.95) %

10.43 %

12.45 %


(0.35) %

12.22 %

 

GAAP to Non-GAAP Reconciliations (continued)

(Dollars in millions)


Three months ended


Nine months ended


9/30/2024

6/30/2024

9/30/2023


9/30/2024

9/30/2023

Cash efficiency ratio







Noninterest expense (GAAP)

$     1,094

$     1,079

$     1,110


$    3,316

$    3,362

Less: Intangible asset amortization

7

7

9


22

29

Adjusted noninterest expense (non-GAAP)

$     1,087

$     1,072

$     1,101


$    3,294

$    3,333








Net interest income (GAAP)

$       952

$       887

$       915


$    2,714

$    2,992

Plus: Taxable-equivalent adjustment

12

12

8


35

23

Net interest income TE (non-GAAP)

964

899

923


2,749

3,015

Noninterest income (GAAP)

(269)

627

643


1,005

1,860

Total taxable-equivalent revenue (non-GAAP)

$       695

$     1,526

$     1,566


$    3,754

$    4,875








Cash efficiency ratio (non-GAAP)

156.4 %

70.2 %

70.3 %


87.7 %

68.4 %








Adjusted income (loss) available from continuing operations attributable to Key common shareholders







Income (loss) from continuing operations attributable to Key common shareholders (GAAP)

$      (447)

$       237

$       266




Plus: Loss on sale of securities (net of tax)

737

—

—




Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)

$       290

$       237

$       266




Diluted earnings per common share (EPS) - adjusted







Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)

$       (.47)

$        .25

$        .29




Plus: EPS impact of loss on sale of securities

.77

—

—




Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)

$        .30

$        .25

$        .29




(a)

For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of period-end purchased credit card receivables. 

(b)

Net of capital surplus.

(c)

For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, average intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of average purchased credit card receivables.

GAAP = U.S. generally accepted accounting principles

 

Consolidated Balance Sheets

(Dollars in millions)










9/30/2024

6/30/2024

9/30/2023

Assets





Loans

$       105,346

$       107,078

$       115,544


Loans held for sale

1,058

517

730


Securities available for sale

34,169

37,460

35,839


Held-to-maturity securities

7,702

7,968

8,853


Trading account assets

1,404

1,219

1,325


Short-term investments

22,796

15,536

7,871


Other investments

1,117

1,259

1,356



Total earning assets

173,592

171,037

171,518


Allowance for loan and lease losses

(1,494)

(1,547)

(1,488)


Cash and due from banks

1,276

1,326

766


Premises and equipment

624

631

649


Goodwill

2,752

2,752

2,752


Other intangible assets

34

41

65


Corporate-owned life insurance

4,379

4,382

4,381


Accrued income and other assets

8,323

8,532

8,843


Discontinued assets

277

296

365



Total assets

$       189,763

$       187,450

$       187,851







Liabilities





Deposits in domestic offices:






Interest-bearing deposits

$       119,995

$       117,570

$       112,581



Noninterest-bearing deposits

30,358

28,150

31,710



Total deposits

150,353

145,720

144,291


Federal funds purchased and securities sold under repurchase agreements 

44

25

43


Bank notes and other short-term borrowings

2,359

5,292

3,470


Accrued expense and other liabilities

4,478

4,755

5,388


Long-term debt

15,677

16,869

21,303



Total liabilities

172,911

172,661

174,495







Equity





Preferred stock

2,500

2,500

2,500


Common shares

1,257

1,257

1,257


Capital surplus

6,149

6,185

6,254


Retained earnings

15,066

15,706

15,835


Treasury stock, at cost

(4,839)

(5,715)

(5,851)


Accumulated other comprehensive income (loss)

(3,281)

(5,144)

(6,639)



Key shareholders' equity

16,852

14,789

13,356

Total liabilities and equity

$       189,763

$       187,450

$       187,851







Common shares outstanding (000)

991,251

943,200

936,161

 

Consolidated Statements of Income

(Dollars in millions, except per share amounts)




Three months ended


Nine months ended




9/30/2024

6/30/2024

9/30/2023


9/30/2024

9/30/2023

Interest income








Loans

$             1,516

$             1,524

$             1,593


$             4,578

$             4,645


Loans held for sale

18

8

19


40

49


Securities available for sale

298

259

192


789

580


Held-to-maturity securities

70

73

79


218

234


Trading account assets

15

16

15


45

42


Short-term investments

244

192

123


578

276


Other investments

14

16

22


47

51



Total interest income

2,175

2,088

2,043


6,295

5,877

Interest expense








Deposits

887

817

687


2,486

1,568


Federal funds purchased and securities sold under repurchase agreements

1

1

9


3

79


Bank notes and other short-term borrowings

43

51

81


140

263


Long-term debt

292

332

351


952

975



Total interest expense

1,223

1,201

1,128


3,581

2,885

Net interest income

952

887

915


2,714

2,992

Provision for credit losses

95

100

81


296

387

Net interest income after provision for credit losses

857

787

834


2,418

2,605

Noninterest income








Trust and investment services income

140

139

130


415

384


Investment banking and debt placement fees

171

126

141


467

406


Cards and payments income

84

85

90


246

256


Service charges on deposit accounts

67

66

69


196

205


Corporate services income

69

68

73


206

235


Commercial mortgage servicing fees

73

61

46


190

142


Corporate-owned life insurance income

36

34

35


102

96


Consumer mortgage income

12

16

15


42

40


Operating lease income and other leasing gains

16

21

22


61

70


Other income(c)

(937)

11

22


(920)

26



Total noninterest income

(269)

627

643


1,005

1,860

Noninterest expense








Personnel

670

636

663


1,980

1,986


Net occupancy

66

66

67


199

202


Computer processing

104

101

89


307

276


Business services and professional fees

41

37

38


119

124


Equipment

20

20

20


60

64


Operating lease expense

14

17

18


48

59


Marketing

21

21

28


61

78


Other expense

158

181

187


542

573



Total noninterest expense

1,094

1,079

1,110


3,316

3,362

Income (loss) from continuing operations before income taxes

(506)

335

367


107

1,103


Income taxes (benefit)

(95)

62

65


26

204

Income (loss) from continuing operations

(411)

273

302


81

899


Income (loss) from discontinued operations, net of taxes

1

1

1


2

3

Net income (loss)

(410)

274

303


83

902

Net income (loss) attributable to Key

$              (410)

$                274

$                303


$                  83

$                902










Income (loss) from continuing operations attributable to Key common shareholders

$              (447)

$                237

$                266


$                (27)

$                791

Net income (loss) attributable to Key common shareholders

(446)

238

267


(25)

794

Per common share







Income (loss) from continuing operations attributable to Key common shareholders

$               (.47)

$                 .25

$                 .29


$               (.03)

$                 .85

Income (loss) from discontinued operations, net of taxes

—

—

—


—

—

Net income (loss) attributable to Key common shareholders (a)

(.47)

.25

.29


(.03)

.86

Per common share — assuming dilution







Income (loss) from continuing operations attributable to Key common shareholders

$               (.47)

$                 .25

$                 .29


$               (.03)

$                 .85

Income (loss) from discontinued operations, net of taxes

—

—

—


—

—

Net income (loss) attributable to Key common shareholders (a)

(.47)

.25

.29


(.03)

.85










Cash dividends declared per common share

$               .205

$               .205

$               .205


$               .615

$               .615










Weighted-average common shares outstanding (000)

948,979

931,726

927,131


936,962

927,019


Effect of common share options and other stock awards

8,951

6,761

4,613


7,678

5,213

Weighted-average common shares and potential common shares outstanding (000) (b)

957,929

938,487

931,744


944,640

932,232

(a)

Earnings per share may not foot due to rounding.

(b)

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

(c)

For the three months ended September 30, 2024, and June 30, 2024, we had $935 million and $13 million in net securities losses, respectively. For the three months ended September 30, 2023, we had no net securities gains or losses. For the nine months ended September 30, 2024, and September 30, 2023,  we had $948 million and $7 million in net securities losses, respectively.

 

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations

(Dollars in millions)



Third Quarter 2024


Second Quarter 2024


Third Quarter 2023



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)

$       53,121

$              847

6.34 %


$       54,599

$              860

6.34 %


$       59,187

$              886

5.94 %


Real estate — commercial mortgage

13,864

225

6.46


14,287

217

6.10


15,844

238

5.97


Real estate — construction

3,077

59

7.65


3,020

56

7.51


2,820

48

6.77


Commercial lease financing

2,988

26

3.46


3,193

28

3.46


3,707

30

3.25


Total commercial loans

73,050

1,157

6.30


75,099

1,161

6.22


81,558

1,202

5.85


Real estate — residential mortgage

20,215

167

3.30


20,515

169

3.30


21,459

176

3.28


Home equity loans

6,634

100

5.98


6,817

102

5.98


7,418

110

5.87


Other consumer loans

5,426

69

5.08


5,597

70

5.00


6,201

78

4.96


Credit cards

919

35

15.22


933

34

14.63


991

35

14.16


Total consumer loans

33,194

371

4.46


33,862

375

4.44


36,069

399

4.40


Total loans

106,244

1,528

5.73


108,961

1,536

5.66


117,627

1,601

5.41


Loans held for sale

1,098

18

6.54


599

8

5.42


1,356

19

5.73


Securities available for sale (b), (e)

36,700

298

2.87


36,764

259

2.42


37,271

192

1.76


Held-to-maturity securities (b)

7,838

70

3.58


8,123

73

3.59


9,020

79

3.50


Trading account assets

1,142

15

5.08


1,231

16

5.38


1,203

15

4.97


Short-term investments

17,773

244

5.47


13,729

192

5.62


8,416

123

5.79


Other investments (e)

1,193

14

4.77


1,234

16

5.19


1,395

22

6.35


Total earning assets

171,988

2,187

4.93


170,641

2,100

4.77


176,288

2,051

4.47


Allowance for loan and lease losses

(1,533)




(1,534)




(1,477)




Accrued income and other assets

17,154




17,476




17,530




Discontinued assets

284




305




374




Total assets

$    187,893




$    186,888




$    192,715



Liabilities













Money market deposits

$       40,379

$              309

3.04 %


$       39,364

$              290

2.97 %


$       35,243

$              213

2.40 %


Demand deposits

56,087

365

2.59


54,629

340

2.50


55,837

315

2.24


Savings deposits

4,967

3

.22


5,189

2

.19


5,966

1

.05


Time deposits

17,870

210

4.68


16,019

185

4.64


15,082

158

4.16


Total interest-bearing deposits

119,303

887

2.96


115,201

817

2.85


112,128

687

2.43


Federal funds purchased and securities sold
   under repurchase agreements

98

1

4.48


124

1

4.76


710

9

5.04


Bank notes and other short-term borrowings

3,172

43

5.44


3,617

51

5.57


5,819

81

5.54


Long-term debt (f)

16,422

292

7.09


19,219

332

6.91


21,584

351

6.50


Total interest-bearing liabilities

138,995

1,223

3.50


138,161

1,201

3.49


140,241

1,128

3.20


Noninterest-bearing deposits

28,468




28,979




32,697




Accrued expense and other liabilities

4,387




4,969




5,572




Discontinued liabilities (f)

284




305




374




Total liabilities

$    172,134




$    172,414




$    178,884



Equity













Key shareholders' equity

$       15,759




$       14,474




$       13,831




Noncontrolling interests

—




—




—




Total equity

15,759




14,474




13,831




Total liabilities and equity

$    187,893




$    186,888




$    192,715



Interest rate spread (TE)



1.43 %




1.28 %




1.27 %

Net interest income (TE) and net interest margin (TE)


$              964

2.17 %



$              899

2.04 %



$              923

2.01 %

TE adjustment (b)


12




12




8



Net interest income, GAAP basis


$              952




$              887




$              915


(a)

Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) 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 September 30, 2024, June 30, 2024, and September 30, 2023.   

(c)

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

(d)

Commercial and industrial average balances include $215 million, $218 million, and $202 million of assets from commercial credit cards for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

(e)

Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $41.6 billion, $42.8 billion, and $43.6 billion for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Yield based on the fair value of securities available for sale was 3.25%, 2.82%, and 2.06% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

(f)

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.

 

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates  From Continuing Operations

(Dollars in millions)



Nine months ended September 30, 2024


Nine months ended September 30, 2023



Average


Yield/


Average


Yield/



Balance

Interest (a)

Rate (a)


Balance

Interest (a)

Rate (a)

Assets









Loans: (b), (c)









Commercial and industrial (d)

$        54,309

$          2,561

6.30 %


$         60,294

$           2,574

5.71 %


Real estate — commercial mortgage

14,328

671

6.25


16,178

697

5.76


Real estate — construction

3,046

172

7.56


2,663

131

6.58


Commercial lease financing

3,175

81

3.38


3,749

86

3.06


Total commercial loans

74,858

3,485

6.22


82,884

3,488

5.63


Real estate — residential mortgage

20,514

508

3.30


21,534

524

3.25


Home equity loans

6,824

305

5.98


7,621

325

5.71


Other consumer loans

5,607

211

5.02


6,346

230

4.84


Credit cards

935

104

14.92


986

101

13.68


Total consumer loans

33,880

1,128

4.44


36,487

1,180

4.32


  Total loans

108,738

4,613

5.67


119,371

4,668

5.23


Loans held for sale

862

40

6.14


1,118

49

5.90


Securities available for sale (b), (e)

36,850

789

2.48


38,440

580

1.74


Held-to-maturity securities (b)

8,127

218

3.58


9,108

234

3.43


Trading account assets

1,161

45

5.23


1,150

42

4.82


Short-term investments

13,929

578

5.55


6,600

276

5.59


Other investments (e)

1,221

47

5.12


1,423

51

4.78


Total earning assets

170,888

6,330

4.79


177,210

5,900

4.30


Allowance for loan and lease losses

(1,524)




(1,398)




Accrued income and other assets

17,327




17,411




Discontinued assets

306




395




Total assets

$      186,997




$       193,618



Liabilities









Money market deposits

$        39,139

$              863

2.94 %


$         33,829

$               414

1.64 %


Other demand deposits

55,619

1,062

2.55


53,951

754

1.87


Savings deposits

5,136

6

.16


6,630

2

.04


Time deposits

16,113

555

4.60


13,615

398

3.90


Total interest-bearing deposits

116,007

2,486

2.86


108,025

1,568

1.94


Federal funds purchased and securities sold under repurchase agreements

109

3

4.44


2,183

79

4.84


Bank notes and other short-term borrowings

3,371

140

5.55


6,797

263

5.17


Long-term debt (f)

18,386

952

6.90


21,341

975

6.09


Total interest-bearing liabilities

137,873

3,581

3.47


138,346

2,885

2.79


Noninterest-bearing deposits

28,947




35,691




Accrued expense and other liabilities

4,908




5,166




Discontinued liabilities (f)

306




395




Total liabilities

$      172,034




$       179,598



Equity









Key shareholders' equity

$        14,963




$         14,020




Noncontrolling interests

—




—




Total equity

14,963




14,020




Total liabilities and equity

$      186,997




$       193,618



Interest rate spread (TE)



1.32 %




1.52 %

Net interest income (TE) and net interest margin (TE)


$          2,749

2.08 %



$           3,015

2.20 %

TE adjustment (b)


35




23



Net interest income, GAAP basis


$          2,714




$           2,992











(a)

Results are from continuing operations.  Interest excludes the interest associated with the liabilities referred to in (f) 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 nine months ended September 30, 2024, and September 30, 2023, respectively.  

(c)

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

(d)

Commercial and industrial average balances include $215 million and $192 million of assets from commercial credit cards for the nine months ended September 30, 2024, and September 30, 2023, respectively.

(e)

Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $42.4 billion and $44.5 billion for the nine months ended September 30, 2024, and September 30, 2023, respectively. Yield based on the fair value of securities available for sale was 2.85% and 2.01% for the nine months ended September 30, 2024, and September 30, 2023, respectively.

(f)

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

 

Noninterest Expense

(Dollars in millions)









Three months ended


Nine months ended


9/30/2024

6/30/2024

9/30/2023


9/30/2024

9/30/2023

Personnel (a)

$            670

$            636

$            663


$         1,980

$         1,986

Net occupancy

66

66

67


199

202

Computer processing

104

101

89


307

276

Business services and professional fees

41

37

38


119

124

Equipment

20

20

20


60

64

Operating lease expense

14

17

18


48

59

Marketing

21

21

28


61

78

Other expense

158

181

187


542

573

Total noninterest expense

$         1,094

$         1,079

$         1,110


$         3,316

$         3,362

Average full-time equivalent employees (b)

16,805

16,646

17,666


16,734

17,880

(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


Nine months ended


9/30/2024

6/30/2024

9/30/2023


9/30/2024

9/30/2023

Salaries and contract labor

$            408

$            394

$           415


$         1,191

$         1,250

Incentive and stock-based compensation

162

143

141


464

386

Employee benefits

99

98

106


323

308

Severance

1

1

1


2

42

Total personnel expense

$            670

$            636

$           663


$         1,980

$         1,986

 

Loan Composition

(Dollars in millions)











Change 9/30/2024 vs.


9/30/2024

6/30/2024

9/30/2023


6/30/2024

9/30/2023

Commercial and industrial (a)(b)

$        52,774

$        53,129

$        57,606


(.7) %

(8.4) %

Commercial real estate:







Commercial mortgage

13,637

14,218

15,549


(4.1)

(12.3)

Construction

3,093

3,077

2,982


.5

3.7

  Total commercial real estate loans

16,730

17,295

18,531


(3.3)

(9.7)

Commercial lease financing (b)

2,913

3,101

3,681


(6.1)

(20.9)

  Total commercial loans

72,417

73,525

79,818


(1.5)

(9.3)

Residential — prime loans:







Real estate — residential mortgage

20,122

20,380

21,309


(1.3)

(5.6)

Home equity loans

6,555

6,729

7,324


(2.6)

(10.5)

  Total residential — prime loans

26,677

27,109

28,633


(1.6)

(6.8)

Other consumer loans

5,338

5,514

6,105


(3.2)

(12.6)

Credit cards

914

930

988


(1.7)

(7.5)

Total consumer loans

32,929

33,553

35,726


(1.9)

(7.8)

Total loans (c), (d)

$      105,346

$      107,078

$      115,544


(1.6) %

(8.8) %

(a)

Loan balances include $219 million, $217 million, and $207 million of commercial credit card balances at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

(b)

Commercial and industrial includes receivables held as collateral for a secured borrowing of $261 million at September 30, 2024, $285 million at June 30, 2024 and no amounts held as collateral for a secured borrowing at September 30, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $3 million, $5 million, and $4 million at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.

(c)

Total loans exclude loans of $272 million at September 30, 2024, $291 million at June 30, 2024, and $360 million at September 30, 2023, related to the discontinued operations of the education lending business.

(d)

Accrued interest of $480 million, $487 million, and $522 million at September 30, 2024, June 30, 2024, and September 30, 2023, 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 9/30/2024 vs.


9/30/2024

6/30/2024

9/30/2023


6/30/2024

9/30/2023

Commercial and industrial

$            250

$              72

$              47


247.2 %

431.9 %

Real estate — commercial mortgage

747

354

571


111.0

30.8

Real estate — residential mortgage

61

91

112


(33.0)

(45.5)

Total loans held for sale

$         1,058

$            517

$            730


104.6 %

44.9 %

 

Summary of Changes in Loans Held for Sale

(Dollars in millions)








3Q24

2Q24

1Q24

4Q23

3Q23

Balance at beginning of period

$            517

$            228

$            483

$            730

$         1,130

New originations

2,473

1,532

1,738

1,879

3,035

Transfers from (to) held to maturity, net

(16)

(1)

(105)

(31)

(94)

Loan sales

(1,889)

(1,234)

(1,893)

(2,095)

(3,312)

Loan draws (payments), net

(28)

(7)

4

—

(29)

Valuation and other adjustments

1

(1)

1

—

—

Balance at end of period

$          1,058

$            517

$            228

$            483

$            730

 

Summary of Loan and Lease Loss Experience From Continuing Operations

(Dollars in millions)









Three months ended


Nine months ended


9/30/2024

6/30/2024

9/30/2023


9/30/2024

9/30/2023

Average loans outstanding

$ 106,244

$ 108,961

$ 117,627


$ 108,738

$ 119,371

Allowance for loan and lease losses at the beginning of the period

$     1,547

$     1,542

$     1,480


$    1,508

$    1,337

Loans charged off:







Commercial and industrial

131

86

62


279

139








Real estate — commercial mortgage

7

10

1


22

15

Real estate — construction

—

—

—


—

—

  Total commercial real estate loans

7

10

1


22

15

Commercial lease financing

—

6

—


6

—

  Total commercial loans

138

102

63


307

154

Real estate — residential mortgage

—

1

—


2

1

Home equity loans

1

—

1


2

4

Other consumer loans

17

16

14


49

37

Credit cards

11

12

9


35

27

  Total consumer loans

29

29

24


88

69

  Total loans charged off

167

131

87


395

223

Recoveries:







Commercial and industrial

7

31

10


46

33








Real estate — commercial mortgage

1

1

—


2

1

Real estate — construction

—

—

—


—

—

  Total commercial real estate loans

1

1

—


2

1

Commercial lease financing

—

3

1


5

4

  Total commercial loans

8

35

11


53

38

Real estate — residential mortgage

1

1

1


4

3

Home equity loans

1

—

1


2

3

Other consumer loans

2

2

2


6

7

Credit cards

1

2

1


4

4

  Total consumer loans

5

5

5


16

17

  Total recoveries

13

40

16


69

55

Net loan charge-offs

(154)

(91)

(71)


(326)

(168)

Provision (credit) for loan and lease losses

101

96

79


312

319

Allowance for loan and lease losses at end of period

$     1,494

$     1,547

$     1,488


$    1,494

$    1,488








Liability for credit losses on lending-related commitments at beginning of period

$       286

$       281

$       291


$       296

$       225

Provision (credit) for losses on lending-related commitments

(6)

4

2


(16)

68

Other

—

1

(3)


—

(3)

Liability for credit losses on lending-related commitments at end of period (a)

$       280

$       286

$       290


$       280

$       290








Total allowance for credit losses at end of period

$     1,774

$     1,833

$     1,778


$    1,774

$    1,778








Net loan charge-offs to average total loans

.58 %

.34 %

.24 %


.40 %

.19 %

Allowance for loan and lease losses to period-end loans

1.42

1.44

1.29


1.42

1.29

Allowance for credit losses to period-end loans

1.68

1.71

1.54


1.68

1.54

Allowance for loan and lease losses to nonperforming loans

205

218

327


205

327

Allowance for credit losses to nonperforming loans

244

258

391


244

391








Discontinued operations — education lending business:







Loans charged off

$           1

$           1

$         —


$          3

$          3

Recoveries

—

1

—


1

1

  Net loan charge-offs

$         (1)

$         —

$         —


$         (2)

$         (2)

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

 

Asset Quality Statistics From Continuing Operations

(Dollars in millions)


3Q24

2Q24

1Q24

4Q23

3Q23

Net loan charge-offs

$       154

$         91

$         81

$         76

$         71

Net loan charge-offs to average total loans

.58 %

.34 %

.29 %

.26 %

.24 %

Allowance for loan and lease losses

$    1,494

$    1,547

$    1,542

$    1,508

$    1,488

Allowance for credit losses (a)

1,774

1,833

1,823

1,804

1,778

Allowance for loan and lease losses to period-end loans

1.42 %

1.44 %

1.40 %

1.34 %

1.29 %

Allowance for credit losses to period-end loans

1.68

1.71

1.66

1.60

1.54

Allowance for loan and lease losses to nonperforming loans

205

218

234

263

327

Allowance for credit losses to nonperforming loans

244

258

277

314

391

Nonperforming loans at period end

$       728

$       710

$       658

$       574

$       455

Nonperforming assets at period end

741

727

674

591

471

Nonperforming loans to period-end portfolio loans

.69 %

.66 %

.60 %

.51 %

.39 %

Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

.70

.68

.61

.52

.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)


9/30/2024

6/30/2024

3/31/2024

12/31/2023

9/30/2023

Commercial and industrial

$       365

$       358

$       360

$       297

$       214







Real estate — commercial mortgage

176

173

113

100

63

Real estate — construction

—

—

—

—

—

Total commercial real estate loans

176

173

113

100

63

Commercial lease financing

—

1

1

—

1

Total commercial loans

541

532

474

397

278

Real estate — residential mortgage

87

77

79

71

72

Home equity loans

90

91

95

97

97

Other Consumer loans

4

4

4

4

4

Credit cards

6

6

6

5

4

Total consumer loans

187

178

184

177

177

  Total nonperforming loans (a)

728

710

658

574

455

OREO

13

17

16

17

16

Nonperforming loans held for sale

—

—

—

—

—

Other nonperforming assets

—

—

—

—

—

Total nonperforming assets

$       741

$       727

$       674

$       591

$       471

Accruing loans past due 90 days or more

$       166

$       137

$       119

$       107

$         52

Accruing loans past due 30 through 89 days

184

282

242

222

178

Nonperforming assets from discontinued operations — education lending business 

2

3

2

3

2

Nonperforming loans to period-end portfolio loans

.69 %

.66 %

.60 %

.51 %

.39 %

Nonperforming assets to period-end portfolio loans plus OREO and other
   nonperforming assets

.70

.68

.61

.52

.41

 

Summary of Changes in Nonperforming Loans From Continuing Operations

(Dollars in millions)


3Q24

2Q24

1Q24

4Q23

3Q23

Balance at beginning of period

$          710

$          658

$          574

$          455

$          431

Loans placed on nonaccrual status

271

317

243

297

159

Charge-offs

(167)

(131)

(97)

(95)

(87)

Loans sold

(32)

(22)

(5)

(9)

(4)

Payments

(37)

(76)

(35)

(56)

(25)

Transfers to OREO

(1)

(1)

(2)

(2)

(3)

Loans returned to accrual status

(16)

(35)

(20)

(16)

(16)

Balance at end of period

$          728

$          710

$          658

$          574

$          455

 

Line of Business Results

(Dollars in millions)

















Change 3Q24 vs.


3Q24

2Q24

1Q24

4Q23

3Q23


2Q24

3Q23

Consumer Bank









Summary of operations









Total revenue (TE)

$             814

$             769

$             757

$             770

$             775


5.9 %

5.0 %

Provision for credit losses

52

33

(2)

5

14


57.6

271.4

Noninterest expense

649

648

704

779

676


.2

(4.0)

Net income (loss) attributable to Key

86

67

41

(11)

65


28.4

32.3

Average loans and leases

38,332

39,174

39,919

40,763

41,610


(2.1)

(7.9)

Average deposits

86,431

85,397

84,075

83,557

82,683


1.2

4.5

Net loan charge-offs

54

45

44

40

36


20.0

50.0

Net loan charge-offs to average total loans

.56 %

.46 %

.44 %

.39 %

.34 %


21.7

64.7

Nonperforming assets at period end

$             195

$             190

$             196

$             190

$             190


2.6

2.6

Return on average allocated equity

10.34 %

7.93 %

4.69 %

(1.28) %

7.42 %


30.4

39.4










Commercial Bank









Summary of operations









Total revenue (TE)

$             868

$             770

$             798

$             804

$             809


12.7 %

7.3 %

Provision for credit losses

41

87

102

96

68


(52.9)

(39.7)

Noninterest expense

445

432

442

526

433


3.0

2.8

Net income (loss) attributable to Key

300

207

205

150

240


44.9

25.0

Average loans and leases

67,452

69,248

70,633

72,713

75,598


(2.6)

(10.8)

Average loans held for sale

998

522

840

635

1,268


91.2

(21.3)

Average deposits

58,696

57,360

56,331

58,196

56,078


2.3

4.7

Net loan charge-offs

99

64

37

35

35


54.7

182.9

Net loan charge-offs to average total loans

.58 %

.37 %

.21 %

.19 %

.18 %


56.8

222.2

Nonperforming assets at period end

$             546

$             537

$             478

$             401

$             281


1.7

94.3

Return on average allocated equity

11.98 %

8.31 %

8.24 %

5.88 %

9.11 %


44.2

31.5

TE = Taxable Equivalent

 

Selected Items Impact on Earnings(a)

(Dollars in millions, except per share amounts)


Pretax(b)


After-tax at marginal rate(b)(c)

Quarter to date results

Amount


Net Income

EPS(d)

Three months ended September 30, 2024





Loss on sale of securities (other income)

$              (918)


$              (737)

$             (0.77)

FDIC special assessment (other expense)(d)

6


5

—

Three months ended June 30, 2024





FDIC special assessment (other expense)(e)

(5)


(4)

—

Three months ended March 31, 2024





FDIC special assessment (other expense)(e)

(29)


(22)

(0.02)

Three months ended December 31, 2023





Efficiency related expenses(f)

(67)


(51)

(0.05)

Pension settlement (other expense)

(18)


(14)

(0.02)

FDIC special assessment (other expense)(e)

(190)


(144)

(0.15)

Three months ended September 30, 2023





No items










(a)

Includes items impacting results or trends during the period but are not considered non-GAAP adjustments.

(b)

Favorable (unfavorable) impact.

(c)

After-tax loss on sale of securities adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments to be required in the fourth quarter of 2024.

(d)

Impact to EPS reflected on a fully diluted basis.

(e)

In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC's deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024. Amounts reflected for both the three-months ended June 30, 2024, and September 30, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.

(f)

Efficiency related expenses for the three-months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.

 

(PRNewsfoto/KeyCorp)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/keycorp-reports-third-quarter-2024-net-loss-of-447-million-or-47-per-diluted-common-share-and-adjusted-net-income-of-290-million-or-30-per-diluted-common-sharea-302279144.html

SOURCE KeyCorp

FAQ

What was KeyCorp's (KEY) net income for Q3 2024?

KeyCorp reported a net loss of $(447) million, or $(0.47) per diluted share, for Q3 2024. On an adjusted basis, net income was $290 million or $0.30 per diluted share.

How much did KeyCorp (KEY) receive from Scotiabank's investment in Q3 2024?

KeyCorp received an initial $821 million tranche of strategic minority investment from Scotiabank in Q3 2024.

What was KeyCorp's (KEY) net interest income growth in Q3 2024?

KeyCorp's net interest income increased by 7% quarter-over-quarter in Q3 2024.

How did KeyCorp's (KEY) deposit growth perform in Q3 2024?

KeyCorp's average deposits grew 2.5% quarter-over-quarter and 4% year-over-year in Q3 2024.

What was KeyCorp's (KEY) Common Equity Tier 1 (CET1) ratio in Q3 2024?

KeyCorp's Common Equity Tier 1 (CET1) ratio was 10.8% in Q3 2024.

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