Keycorp: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 16 April 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Key takeaways

Earnings per diluted share rose 33%: Common shareholder income was $486 million, or $0.44 per diluted share, up 33.3% per share from a year earlier and 2.3% from the fourth quarter. Source
Return on tangible equity above 13%: Return on average tangible common equity was 13.02%, up 59 bps from the fourth quarter and 178 bps from a year earlier. Source
Net interest margin rose to 2.87%: Taxable-equivalent net interest income was $1.23 billion, up 1% from the fourth quarter and 11% from a year earlier; net interest margin rose 5 bps sequentially. Source
Deposit costs fell 16 bps: Cost of total deposits fell to 1.65%, and the rate on interest-bearing deposits declined 22 bps, which management linked to lower rates and deposit beta management. Source
Period-end loans rose $2.6 billion: Period-end loans were $109.2 billion, up $2.6 billion from year-end; commercial loans rose $3.3 billion, or 4%, while consumer loans fell from year-end. Source
Nonperforming assets rose to 63 bps: Nonperforming assets were $692 million, up from $627 million at year-end; nonperforming loans rose $67 million, mainly in commercial and industrial and commercial mortgage. Source
Repurchased $389 million of shares: Share repurchases of $389 million reduced shares outstanding to 1,087.3 million from 1,102.4 million; a $0.205 per share dividend was declared. Source
CET1 ratio eased to 11.4%: The estimated CET1 ratio was 11.4% at March 31, 2026, down from 11.8% at year-end and 11.6% a year earlier; the marked CET1 ratio was 9.96%. Source

“In addition to driving a greater return on capital, we remain committed to the return of capital.”
Chris Gorman, Chairman and CEO

Guidance

Area	Period	Figure	Against last quarter
Return on tangible common equity Source	by year-end 2027	15%+
Basel III CET1 benefit Source	if the updated Basel III proposal is implemented as proposed	more than 100 basis point benefit	New

What changed from last quarter

New: Management referred to a recently updated Basel III proposal and said it is encouraged by it. Source
New: A quantified goal of 15%+ return on tangible common equity by year-end 2027 is stated. The prior release used the wording mid-to-high teens. Source

Results and growth drivers

Earnings per diluted share rose 33%: Common shareholder income was $486 million, or $0.44 per diluted share, up 33.3% per share from a year earlier and 2.3% from the fourth quarter. Source
Revenue rose 10% year-over-year: Total taxable-equivalent revenue was $1.95 billion, down 2.6% from the fourth quarter and up 10.2% from a year earlier, with noninterest income up 8% year-over-year. Source
Fee-based businesses grew 12%: Investment banking, commercial payments and wealth management were described as priority fee-based businesses, collectively up 12% year-over-year. Source
Return on tangible equity above 13%: Return on average tangible common equity was 13.02%, up 59 bps from the fourth quarter and 178 bps from a year earlier. Source

Net interest income and margin

Net interest margin rose to 2.87%: Taxable-equivalent net interest income was $1.23 billion, up 1% from the fourth quarter and 11% from a year earlier; net interest margin rose 5 bps sequentially. Source
Deposit costs fell 16 bps: Cost of total deposits fell to 1.65%, and the rate on interest-bearing deposits declined 22 bps, which management linked to lower rates and deposit beta management. Source
Seasonal outflows and fewer days: Management cited lower rates on variable-rate earning assets, seasonal outflows of low-cost deposits, and two fewer days as offsets to net interest income versus the fourth quarter. Source
Year-over-year margin gain drivers: Versus a year earlier, management attributed the margin increase to lower deposit costs, reinvestment of securities and swap proceeds, and a richer commercial and industrial loan mix. Source

“We are also encouraged by the recently updated Basel III proposal which, if implemented as currently proposed, would imply more than 100 basis point benefit to our marked CET1 ratio.”
Chris Gorman, Chairman and CEO

Noninterest income and fee businesses

Investment banking fees fell from Q4: Investment banking and debt placement fees were $197 million, down 18.9% from the fourth quarter but up 12.6% from a year earlier; total noninterest income was $723 million. Source
Year-over-year fee gains led by M&A: Noninterest income rose $55 million from a year earlier, led by higher M&A advisory, commercial debt placement and equity underwriting fees, plus higher trust income. Source
Commercial mortgage servicing fees fell: Commercial mortgage servicing fees were $62 million, down $14 million from a year earlier, while trust and investment services income was $157 million. Source

Costs and efficiency

Noninterest expense fell from Q4: Noninterest expense was $1,181 million, down 4.8% from the fourth quarter and up 4.4% from a year earlier; the cash efficiency ratio was 60.4%. Source
Personnel costs rose with fee growth: Personnel expense was $743 million, up $63 million from a year earlier, reflecting investment in people, benefits and incentive pay tied to fee income growth. Source

“We are successfully navigating the dynamic macroeconomic environment and are prepared to manage through a broad range of potential scenarios.”
Chris Gorman, Chairman and CEO

Segment results

Commercial Bank net income rose 13%: Commercial Bank net income was $451 million, down 4.4% from the fourth quarter and up 13.0% from a year earlier, on total revenue of $1,117 million. Source
Consumer Bank earnings edged higher: Consumer Bank net income was $173 million, down 1.7% from the fourth quarter and up 6.1% from a year earlier; Consumer Bank average loans and leases fell 7.6% year-over-year. Source
Commercial Bank loan growth: Commercial Bank average loans and leases were $73.1 billion, up 9.1% from a year earlier, and average deposits rose $1.4 billion year-over-year. Source

Loans, deposits and balances

Period-end loans rose $2.6 billion: Period-end loans were $109.2 billion, up $2.6 billion from year-end; commercial loans rose $3.3 billion, or 4%, while consumer loans fell from year-end. Source
Average consumer loans kept running off: Average consumer loans declined $608 million from the fourth quarter, reflecting the intentional run-off of low-yielding loans, while average commercial loans rose $2.0 billion. Source
Average deposits fell $3.4 billion: Average deposits were $147.3 billion, down $3.4 billion from the fourth quarter, with seasonally lower balances and the intentional runoff of brokered CDs. Source

Credit quality and reserves

Net charge-offs eased to 38 bps: Net loan charge-offs were $101 million, or 0.38% of average total loans, down from 0.39% in the fourth quarter and 0.43% a year earlier. Source
Nonperforming assets rose to 63 bps: Nonperforming assets were $692 million, up from $627 million at year-end; nonperforming loans rose $67 million, mainly in commercial and industrial and commercial mortgage. Source
Reserve build on economic uncertainty: The allowance for credit losses was $1.7 billion, or 1.60% of loans; provision was $106 million, including a $5 million reserve build from higher qualitative reserves. Source

Capital and shareholder returns

Repurchased $389 million of shares: Share repurchases of $389 million reduced shares outstanding to 1,087.3 million from 1,102.4 million; a $0.205 per share dividend was declared. Source
CET1 ratio eased to 11.4%: The estimated CET1 ratio was 11.4% at March 31, 2026, down from 11.8% at year-end and 11.6% a year earlier; the marked CET1 ratio was 9.96%. Source
Well-capitalized ratios maintained: Estimated risk-based capital ratios continued to exceed all well-capitalized benchmarks at March 31, 2026; tangible common equity to tangible assets was 8.0%. Source

Strategy and investment

Investing in bankers and technology: Management said it is investing across the franchise in frontline bankers and technology, expected to drive additional organic growth and efficiency. Source
Client, loan and pipeline growth: Management said it is growing clients, loans and pipelines and gaining marketplace momentum. Source
Navigating a dynamic macroeconomic environment: Management said it is navigating the dynamic macroeconomic environment and is prepared to manage through a broad range of potential scenarios. Source

Coming up, as management said on 16 April 2026

Return target set for year-end 2027: Management stated a goal of 15%+ return on tangible common equity by year-end 2027. Source
Growth from bankers and technology investment: Management said investment in bankers and technology is expected to add organic growth and efficiency. Source

Risks management discussed

External: Management tied the $5 million reserve build to higher qualitative reserves reflecting elevated economic uncertainty. Source
Financial: Lower interest rates on variable-rate earning assets partly offset the gains in net interest income, according to management. Source
Financial: Nonperforming assets rose $65 million from year-end to $692 million, equal to 0.63% of loans plus OREO and other nonperforming assets. Source
Demand: Average deposits fell $3.4 billion from the fourth quarter on seasonal declines and the intentional runoff of brokered CDs. Source

Earlier plans management reported on

Not stated: Management said its results reflect disciplined execution as it continues to deliver on its commitments. Source
Not stated: Management said it remains committed to returning capital, with $389 million of common shares repurchased in the quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

KEYCORP REPORTS FIRST QUARTER 2026 NET INCOME OF $486 MILLION,

OR $0.44 PER DILUTED COMMON SHARE INCREASING 33% YEAR-OVER-YEAR

Revenue of $1.95 billion, up 10% year-over-year, with noninterest income up 8%

Net interest income up 11% year-over-year and 1% quarter-over-quarter despite seasonality impact; net interest margin of 2.87% increased 5 bps sequentially

Period-end loans up $2.6 billion quarter-over-quarter, with commercial loans up $3.3 billion or 4%

Credit quality remains strong - nonperforming assets were 63 bps and net charge-offs were 38 bps

Common Equity Tier 1 ratio of 11.4%; repurchased $389 million of common shares during the quarter

CLEVELAND, April 16, 2026 - KeyCorp (NYSE: KEY) announced net income from continuing operations attributable to Key common shareholders of $486 million, or $0.44 per diluted common share, for the first quarter of 2026. For the fourth quarter of 2025, net income from continuing operations attributable to Key common shareholders was $474 million, or $0.43 per diluted common share, or adjusted net income of $458 million, or $0.41 per diluted common share. The fourth quarter of 2025 included a $16 million after-tax benefit related to the updated FDIC special assessment. For the first quarter of 2025, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $370 million, or $0.33 per diluted common share.

Comments from Chairman and CEO, Chris Gorman

"Our strong first quarter performance demonstrates disciplined execution and significant momentum as we continue to deliver on our commitments. Revenue grew 10% year-over-year, growing at more than double the rate of expenses. We grew net interest income and net interest margin sequentially and year-over-year. Our priority fee-based businesses - investment banking, commercial payments, and wealth management - collectively grew 12% year-over-year. Return on tangible common equity exceeded 13%, reflecting significant progress toward achieving our goal of 15%+ return on tangible common equity by year-end 2027.

In addition to driving a greater return on capital, we remain committed to the return of capital. We repurchased almost $400 million of common shares in the first quarter. We are also encouraged by the recently updated Basel III proposal which, if implemented as currently proposed, would imply more than 100 basis point benefit to our marked CET1 ratio.

We are successfully navigating the dynamic macroeconomic environment and are prepared to manage through a broad range of potential scenarios. We are growing clients, loans, and pipelines. We continue to gain momentum in the marketplace, and are investing across the franchise in frontline bankers and technology that will drive additional organic growth and efficiency. We remain well positioned to drive strong revenue and earnings growth in 2026 through the continued delivery of our differentiated capabilities and exceptional service to our clients."

(a) March 31, 2026 ratio is estimated.

(b) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

Selected Financial Highlights
Dollars in millions, except per share data				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25		1Q25
Income (loss) from continuing operations attributable to Key common shareholders	$486	$474	$370	2.5%			31.4%
Income (loss) from continuing operations attributable to Key common shareholders per common share - assuming dilution	0.44	0.43	0.33	2.3			33.3
Book value at period end	16.13	16.27	14.89	(0.9)		8.3
Return on average tangible common equity from continuing operations	13.02%	12.43%	11.24%		59 bps		178 bps
Return on average total assets from continuing operations	1.14	1.08	.88	6			26
Common Equity Tier 1 ratio	11.4	11.8	11.6	(40)		(20)
Net interest margin (TE) from continuing operations	2.87	2.82	2.58	5		29

(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)March 31, 2026 ratio is estimated.

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25	1Q25
Net interest income (TE)	$1,230	$1,223	$1,105	0.6%	11.3%
Noninterest income	723	782	668	(7.5)		8.2
Total revenue (TE)	$1,953	$2,005	$1,773	(2.6)%	10.2%

Taxable-equivalent net interest income was $1.23 billion for the first quarter of 2026 and the net interest margin was 2.87%. Compared to the first quarter of 2025, net interest income increased by $125 million, and the net interest margin increased by 29 basis points. These increases were driven by a reduction in deposit costs as a result of declining interest rates and proactive deposit beta management, the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher-yielding investments, and a shift in the balance sheet composition to a more favorable mix of higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on variable-rate earning assets.

Compared to the fourth quarter of 2025, taxable-equivalent net interest income increased by $7 million, and the net interest margin increased by 5 basis points. These increases reflect lower deposit costs and a shift in the balance sheet composition to a more favorable mix of higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on variable-rate earning assets, a decline in low-cost deposit balances from seasonal outflows, and two fewer days in the first quarter of 2026 compared to the fourth quarter of 2025.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

Noninterest Income
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25		1Q25
Trust and investment services income	$157	$156	$139	0.6%		12.9%
Investment banking and debt placement fees	197	243	175	(18.9)		12.6
Cards and payments income	86	84	82	2.4		4.9
Service charges on deposit accounts	77	78	69	(1.3)		11.6
Corporate services income	71	81	65	(12.3)		9.2
Commercial mortgage servicing fees	62	68	76	(8.8)		(18.4)
Corporate-owned life insurance income	34	40	33	(15.0)		3.0
Consumer mortgage income	13	16	13	(18.8)		-
Operating lease income and other leasing gains	8	9	9	(11.1)		(11.1)
Other income	18	7	7		157.1		157.1
Total noninterest income	$723	$782	$668	(7.5)%			8.2%

Compared to the first quarter of 2025, noninterest income increased by $55 million. The increase was primarily driven by a $22 million increase in investment banking and debt placement fees reflecting higher merger and acquisition advisory fees, commercial mortgage debt placement activity, and equity underwriting activity, as well as an $18 million increase in trust and investment services income. These were partially offset by a $14 million decrease in commercial mortgage servicing fees.

Compared to the fourth quarter of 2025, noninterest income decreased by $59 million. The decrease was driven by a $46 million decrease in investment banking and debt placement fees, a $10 million decrease in corporate services income, and a $6 million decrease in commercial mortgage servicing fees.

Noninterest Expense
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25	1Q25
Personnel expense	$743	$790	$680	(5.9)%	9.3%
Net occupancy	68	69	67	(1.4)	1.5
Computer processing	111	106	107	4.7	3.7
Business services and professional fees	36	61	40	(41.0)	(10.0)
Equipment	19	22	20	(13.6)	(5.0)
Operating lease expense	7	8	11	(12.5)	(36.4)
Marketing	18	28	21	(35.7)	(14.3)
Other expense	179	157	185	14.0	(3.2)
Total noninterest expense	$1,181	$1,241	$1,131	(4.8)%	4.4%

Compared to the first quarter of 2025, noninterest expense increased by $50 million. The increase was predominantly driven by a $63 million increase in personnel expense primarily related to continued investments in people, employee benefits, and incentive compensation associated with noninterest income growth.

Compared to the fourth quarter of 2025, noninterest expense decreased by $60 million. The decrease was predominantly driven by a $47 million decline in personnel expense, primarily related to incentive compensation. Business services and professional fees decreased by $25 million and marketing expense decreased by $10 million largely due to seasonality. These were partially offset by an increase in other expense related to a $21 million benefit associated with the updated FDIC special assessment in the prior quarter.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25	1Q25
Commercial and industrial	$59,149	$57,541	$53,746	2.8%	10.1%
Other commercial loans	18,918	18,497	18,619	2.3	1.6
Total consumer loans	29,670	30,278	31,989	(2.0)	(7.2)
Total loans	$107,737	$106,316	$104,354	1.3%	3.2%

(a)Commercial and industrial average loan balances include $205 million, $211 million, and $213 million of assets from commercial credit cards at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

Average loans were $107.7 billion for the first quarter of 2026, an increase of $3.4 billion compared to the first quarter of 2025. Average commercial loans increased by $5.7 billion, primarily driven by a $5.4 billion increase in commercial and industrial loans. Average consumer loans declined by $2.3 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the fourth quarter of 2025, average loans increased by $1.4 billion. Average commercial loans increased $2.0 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $608 million, reflective of the intentional run-off of low-yielding loans.

Average Deposits
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25		1Q25
Non-time deposits	$135,522	$136,853	$131,917	(1.0)%		2.7%
Time deposits	11,777	13,857	16,625	(15.0)		(29.2)
Total deposits	$147,299	$150,710	$148,542	(2.3)%		(0.8)%
Cost of total deposits	1.65%	1.81%	2.06%		(16) bps		(41) bps

Average deposits totaled $147.3 billion for the first quarter of 2026, a decrease of $1.2 billion compared to the year-ago quarter, driven by the intentional runoff of brokered CDs.

Compared to the fourth quarter of 2025, average deposits decreased by $3.4 billion. The decline was driven by seasonally lower deposit balances, as well as the intentional runoff of brokered CDs. The rate paid on interest-bearing deposits declined by 22 basis points, and the overall cost of deposits declined by 16 basis points to 1.65%.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

ASSET QUALITY
Dollars in millions							Change 1Q26 vs.
	1Q26		4Q25		1Q25		4Q25		1Q25
Net loan charge-offs	$101		$104		$110		(2.9)%		(8.2)%
Net loan charge-offs to average total loans	.38	%	.39	%	.43	%		(1) bps		(5) bps
Nonperforming loans at period end	$682		$615		$686		10.9%		(0.6)%
Nonperforming loans to period-end portfolio loans	.62	%	.58	%	.65	%		4 bps		(3) bps
Nonperforming assets at period end	$692		$627		$700		10.4%		(1.1)%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.63	%	.59	%	.67	%		4 bps		(4) bps
Allowance for loan and lease losses	$1,449		$1,427		$1,429		1.5%		1.4%
Allowance for credit losses	1,745		1,740		1,707		0.3%		2.2%
Allowance for credit losses to period-end loans	1.60%		1.63%		1.63%			(3) bps		(3) bps
Provision for credit losses	$106		$108		$118		(1.9)%		(10.2)%
Allowance for loan and lease losses to nonperforming loans	212%		232%		208%			N/M		N/M
Allowance for credit losses to nonperforming loans	256		283		249			N/M		N/M

N/M = Not Meaningful

Net loan charge-offs for the first quarter of 2026 totaled $101 million, or 0.38% of average total loans. These results compare to $110 million, or 0.43%, for the first quarter of 2025 and $104 million, or 0.39%, for the fourth quarter of 2025.

Key’s allowance for credit losses was $1.7 billion, or 1.60% of total period-end loans at March 31, 2026, compared to 1.63% at March 31, 2025, and 1.63% at December 31, 2025. A reserve build of $5 million during the first quarter of 2026 was driven by increases in qualitative reserves due to elevated economic uncertainty, partially offset by continued improvement in the portfolio mix.

At March 31, 2026, Key’s nonperforming loans totaled $682 million, which represented 0.62% of period-end portfolio loans. These results compare to 0.65% at March 31, 2025, and 0.58% at December 31, 2025. Nonperforming assets at March 31, 2026, totaled $692 million, and represented 0.63% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.67% at March 31, 2025, and 0.59% at December 31, 2025.

CAPITAL

Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2026.

	3/31/2026	12/31/2025	3/31/2025
Capital Ratios
Common Equity Tier 1	11.4%	11.8%	11.6%
Tier 1 risk-based capital	13.0	13.5	13.3
Total risk-based capital	15.2	15.7	15.7
Tangible common equity to tangible assets	8.0	8.4	7.4
Leverage	10.5	10.5	10.2

(a)March 31, 2026 ratio is estimated.

(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 first quarter of 2026. As shown in the preceding table, at March 31, 2026, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.4% and 13.0%, respectively.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

Summary of Changes in Common Shares Outstanding
In thousands					Change 1Q26 vs.
		1Q26	4Q25	1Q25	4Q25		1Q25
Shares outstanding at beginning of period		1,102,401	1,112,952	1,106,786	(0.9)%		(0.4)%
Share repurchases		(17,969)	(11,109)	-		61.8		N/M
Shares issued under employee compensation plans (net of cancellations and returns)		2,861	558	5,200		N/M	(45.0)
	Shares outstanding at end of period	1,087,293	1,102,401	1,111,986	(1.4)%		(2.2)%

N/M = Not Meaningful

During the first quarter of 2026, Key declared a dividend of $.205 per common share. The reduction in share count was driven by $389 million of common shares repurchased.

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 1Q26 vs.
		1Q26	4Q25	1Q25	4Q25		1Q25
Revenue from continuing operations (TE)
Consumer Bank		$978	$998	$932	(2.0)%		4.9%
Commercial Bank		1,117	1,194	1,047	(6.4)		6.7
Other		(142)	(187)	(206)		24.1		31.1
	Total	$1,953	$2,005	$1,773	(2.6)%		10.2%
Income (loss) from continuing operations attributable to Key
Consumer Bank		$173	$176	$163	(1.7)%		6.1%
Commercial Bank		451	472	399	(4.4)		13.0
Other		(102)	(139)	(156)		26.6		34.6
	Total	$522	$509	$406	2.6%		28.6%

(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 represent the unallocated portion of nonearning assets of corporate support functions. Other also includes the residual net impact of our internal funds transfer pricing methodology, which arise from centrally managed interest rate activities and asset-liability repricing difference. 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.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

Consumer Bank
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25	1Q25
Summary of operations
Net interest income (TE)	$738	$747	$706	(1.2)%	4.5%
Noninterest income	240	251	226	(4.4)	6.2
Total revenue (TE)	978	998	932	(2.0)	4.9
Provision for credit losses	40	32	43	25.0	(7.0)
Noninterest expense	709	734	675	(3.4)	5.0
Income (loss) before income taxes (TE)	229	232	214	(1.3)	7.0
Allocated income taxes (benefit) and TE adjustments	56	56	51	-	9.8
Net income (loss) attributable to Key	$173	$176	$163	(1.7)%	6.1%
Average balances
Loans and leases	$34,005	$34,683	$36,819	(2.0)%	(7.6)%
Total assets	37,341	37,731	39,806	(1.0)	(6.2)
Deposits	87,796	87,738	88,306	0.1	(0.6)
Assets under management at period end	$69,756	$69,964	$61,053	(0.3)%	14.3%

Additional Consumer Bank Data
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25	1Q25
Noninterest income
Trust and investment services income	$130	$128	$113	1.6%	15.0%
Service charges on deposit accounts	34	38	33	(10.5)	3.0
Cards and payments income	55	60	57	(8.3)	(3.5)
Consumer mortgage income	13	16	13	(18.8)	-
Other noninterest income	8	9	10	(11.1)	(20.0)
Total noninterest income	$240	$251	$226	(4.4)%	6.2%
Average deposit balances
Money market deposits	$35,920	$35,390	$33,533	1.5%	7.1%
Demand deposits	23,214	22,879	22,772	1.5	1.9
Savings deposits	4,199	4,177	4,392	0.5	(4.4)
Time deposits	10,610	11,059	13,318	(4.1)	(20.3)
Noninterest-bearing deposits	13,853	14,233	14,291	(2.7)	(3.1)
Total deposits	$87,796	$87,738	$88,306	0.1%	(0.6)%
Other data
Branches	940	940	945
Automated teller machines	1,112	1,120	1,176

Consumer Bank Summary of Operations (1Q26 vs. 1Q25)

Key's Consumer Bank recorded net income attributable to Key of $173 million for the first quarter of 2026, compared to $163 million for the year-ago quarter
Taxable-equivalent net interest income increased by $32 million, or 4.5%, compared to the first quarter of 2025
Average loans and leases decreased $2.8 billion, or 7.6%, from the first quarter of 2025, reflective of broad-based declines across all loan categories
Average deposits decreased $510 million, or 0.6%, from the first quarter of 2025, driven by lower time deposits, partially offset by an increase in money market deposits
Provision for credit losses decreased $3 million compared to the first quarter of 2025 driven by lower charge-offs
Noninterest income increased $14 million from the year-ago quarter, primarily driven by higher trust and investment services income
Noninterest expense increased $34 million from the year-ago quarter, primarily driven by higher support and overhead expense

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

Commercial Bank
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25	1Q25
Summary of operations
Net interest income (TE)	$672	$696	$636	(3.4)%	5.7%
Noninterest income	445	498	411	(10.6)	8.3
Total revenue (TE)	1,117	1,194	1047	(6.4)	6.7
Provision for credit losses	70	73	75	(4.1)		(6.7)
Noninterest expense	474	515	464	(8.0)	2.2
Income (loss) before income taxes (TE)	573	606	508	(5.4)	12.8
Allocated income taxes and TE adjustments	122	134	109	(9.0)	11.9
Net income (loss) attributable to Key	$451	$472	$399	(4.4)%	13.0%
Average balances
Loans and leases	$73,146	$71,107	$67,058	2.9%	9.1%
Loans held for sale	958	1,140	754	(16.0)	27.1
Total assets	82,585	80,689	76,946	2.3	7.3
Deposits	58,929	60,485	57,481	(2.6)	2.5

Additional Commercial Bank Data
Dollars in millions				Change 1Q26 vs.
	1Q26	4Q25	1Q25	4Q25	1Q25
Noninterest income
Trust and investment services income	$27	$28	$27	(3.6)%	-
Investment banking and debt placement fees	198	244	175	(18.9)	13.1%
Cards and payments income	27	22	21	22.7	28.6
Service charges on deposit accounts	43	40	36	7.5	19.4
Corporate services income	70	79	64	(11.4)	9.4
Commercial mortgage servicing fees	62	67	76	(7.5)	(18.4)
Operating lease income and other leasing gains	8	9	8	(11.1)	-
Other noninterest income	10	9	4	11.1	150.0
Total noninterest income	$445	$498	$411	(10.6)%	8.3%

Commercial Bank Summary of Operations (1Q26 vs. 1Q25)

Key's Commercial Bank recorded net income attributable to Key of $451 million for the first quarter of 2026, compared to $399 million for the year-ago quarter
Taxable-equivalent net interest income increased by $36 million, or 5.7%, compared to the first quarter of 2025
Average loan and lease balances increased $6.1 billion, or 9.1%, compared to the first quarter of 2025, driven by an increase in commercial and industrial loans
Average deposit balances increased $1.4 billion compared to the first quarter of 2025, driven by higher client deposits
Provision for credit losses decreased $5 million compared to the first quarter of 2025, driven by more stable reserves, partially offset by higher net charge-offs
Noninterest income increased $34 million compared to the first quarter of 2025, primarily driven by an increase in investment banking and debt placement fees and service charges on deposit accounts
Noninterest expense increased $10 million compared to the first quarter of 2025, primarily driven by an increase in support and overhead expense

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

KeyCorp's roots trace back more than 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 $189 billion at March 31, 2026.

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 950 branches and approximately 1,100 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 Member FDIC.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

CONTACTS:
ANALYSTS	MEDIA
Brian Mauney	Susan Donlan
216.689.0521	216.471.3133
Brian_Mauney@KeyBank.com	Susan_E_Donlan@KeyBank.com
Hannah Lewallen	Beth Strauss
216.471.4856	216.471.2787
Hannah_Lewallen@KeyBank.com	Beth_A_Strauss@KeyBank.com
Johnny Li
216.689.4221
Johnny_Li@KeyBank.com
INVESTOR RELATIONS:	KEY MEDIA NEWSROOM:
www.key.com/ir	www.key.com/newsroom

Forward-looking statements notice

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, 2025 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, 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.

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 10:00 a.m. ET, on April 16, 2026. A replay of the call will be available on our website through April 16, 2027.

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 Reports First Quarter 2026 Results

April 16, 2026

KeyCorp

First Quarter 2026

Financial Supplement

Page

Basis of Presentation

Financial Highlights

GAAP to Non-GAAP Reconciliation

Consolidated Balance Sheets

Consolidated Statements of Income

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

Noninterest Expense

Personnel Expense

Loan Composition

Loans Held for Sale Composition

Summary of Changes in Loans Held for Sale

Summary of Loan and Lease Loss Experience From Continuing Operations

Asset Quality Statistics From Continuing Operations

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

Summary of Changes in Nonperforming Loans From Continuing Operations

Line of Business Results

Selected Items Impact on Earnings

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

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).

Forward-Looking Non-GAAP Financial Measures

From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.

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

The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. 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 loans, and certain lease assets, on a common basis that facilitates comparison of results to 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.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

			Three months ended
			3/31/2026		12/31/2025		3/31/2025
	Net interest income (TE)		$1,230		$1,223		$1,105
	Noninterest income		723		782		668
		Total revenue (TE)	1,953		2,005		1,773
	Provision for credit losses		106		108		118
	Noninterest expense		1,181		1,241		1,131
	Income (loss) from continuing operations attributable to Key		522		509		406
	Income (loss) from discontinued operations, net of taxes		-		1		(1)
	Net income (loss) attributable to Key		522		510		405
	Income (loss) from continuing operations attributable to Key common shareholders		486		474		370
	Income (loss) from discontinued operations, net of taxes		-		1		(1)
	Net income (loss) attributable to Key common shareholders		486		475		369
	Income (loss) from continuing operations attributable to Key common shareholders		$0.45		$0.43		$0.34
	Income (loss) from discontinued operations, net of taxes		-		-		-
	Net income (loss) attributable to Key common shareholders		0.45		0.43		0.34
	Income (loss) from continuing operations attributable to Key common shareholders - assuming dilution		0.44		0.43		0.33
	Income (loss) from discontinued operations, net of taxes - assuming dilution		-		-		-
	Net income (loss) attributable to Key common shareholders - assuming dilution		0.44		0.43		0.33
	Cash dividends declared		0.205		0.205		0.205
	Book value at period end		16.13		16.27		14.89
	Tangible book value at period end		13.60		13.77		12.40
	Market price at period end		20.05		20.64		15.99
	From continuing operations:
	Return on average total assets		1.14%		1.08%		.88	%
	Return on average common equity		11.02		10.51		9.30
	Return on average tangible common equity		13.02		12.43		11.24
	Net interest margin (TE)		2.87		2.82		2.58
	Cash efficiency ratio		60.4		61.6		63.5
	From consolidated operations:
	Return on average total assets		1.14%		1.08%		.88	%
	Return on average common equity		11.02		10.54		9.28
	Return on average tangible common equity		13.02		12.46		11.21
	Net interest margin (TE)		2.87		2.81		2.58
	Loan to deposit		74.6		72.5		70.2
	Key shareholders’ equity to assets		10.6%		11.1%		10.1%
	Key common shareholders’ equity to assets		9.3		9.7		8.8
	Tangible common equity to tangible assets		8.0		8.4		7.4
	Common Equity Tier 1		11.4		11.8		11.6
	Tier 1 risk-based capital		13.0		13.5		13.3
	Total risk-based capital		15.2		15.7		15.7
	Leverage		10.5		10.5		10.2
	Net loan charge-offs		$101		$104		$110
	Net loan charge-offs to average loans		.38	%	.39	%	.43	%
	Allowance for loan and lease losses		$1,449		$1,427		$1,429
	Allowance for credit losses		1,745		1,740		1,707
	Allowance for loan and lease losses to period-end loans		1.33%		1.34%		1.36%
	Allowance for credit losses to period-end loans		1.60		1.63		1.63
	Allowance for loan and lease losses to nonperforming loans		212		232		208
	Allowance for credit losses to nonperforming loans		256		283		249
	Nonperforming loans at period-end		$682		$615		$686
	Nonperforming assets at period-end		692		627		700
	Nonperforming loans to period-end portfolio loans		.62	%	.58	%	.65	%
	Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.63		.59		.67
	Assets under management		$69,756		$69,964		$61,053
	Average full-time equivalent employees		17,469		17,396		16,989
	Branches		940		940		945
	Taxable-equivalent adjustment		$8		$8		$9
Financial Highlights
(Dollars in millions, except per share amounts)
Summary of operations
Per common share
Performance ratios
Capital ratios at period end
Asset quality - from continuing operations
Trust assets
Other data

(a)Earnings per share may not foot due to rounding.

(b)The table entitled “GAAP to Non-GAAP Reconciliations” starting on page 14 of this supplement 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)March 31, 2026, ratio is estimated.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

GAAP to Non-GAAP Reconciliations

(Dollars in millions)

The table below presents certain non-GAAP financial measures defined and described below.

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. Adjusted return on average tangible common equity excludes significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

The table also shows the computation for pre-provision net revenue and adjusted pre-provision net revenue, which are 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. Further, management believes that adjusting pre-provision net revenue for significant or unusual items that management does not consider indicative of ongoing financial performance provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

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. The adjusted cash efficiency ratio excludes significant or unusual items that management does not consider indicative of ongoing financial performance

Adjusted taxable-equivalent revenue or adjusted revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and selected items. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items 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 financial impacts related to those selected items.

Adjusted noninterest income and adjusted noninterest expense are non-GAAP measures in that they exclude significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes these measures provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.

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 significant or unusual items, net of tax, that management does not consider indicative of ongoing financial performance . 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.

Adjusted operating leverage and fee-based adjusted operating leverage are non-GAAP performance measures that utilize revenue on a tax-equivalent basis and adjust revenue and expense for significant and unusual items. Management utilizes these measurements in analyzing performance and believes that adjusting for significant and unusual items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods.

Marked CET1 ratio is a non-GAAP measure and is calculated based on Common Equity Tier 1 capital, inclusive of the AOCI impact from securities and pension. The marked CET1 ratio differs from the defined CET1 regulatory capital ratio by including the impact of AFS and pension accumulated other comprehensive income (loss) (AOCI) amounts in the calculation of the capital ratio. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed may be considered non-GAAP financial measures.

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
	3/31/2026	12/31/2025	3/31/2025
Net interest income (GAAP)	$1,222	$1,215	$1,096
Add: Taxable-equivalent adjustment	8	8	9
Net interest income TE (non-GAAP) (A)	$1,230	$1,223	$1,105
Net income (loss) attributable to Key common shareholders (GAAP) (B)	$486	$475	$369
Average Key shareholders' equity (GAAP)	$20,392	$20,388	$18,632
Less: Average intangible assets	2,758	2,762	2,777
Average preferred stock	2,500	2,500	2,500
Average tangible common equity (non-GAAP) (C)	$15,134	$15,126	$13,355
Key shareholders' equity (GAAP)	$19,987	$20,381	$19,003
Less: Intangible assets	2,757	2,760	2,774
Preferred stock	2,446	2,446	2,446
Tangible common equity (non-GAAP) (D)	$14,784	$15,175	$13,783
Total assets (GAAP)	$188,663	$184,381	$188,691
Less: Intangible assets	2,757	2,760	2,774
Tangible assets (non-GAAP) (E)	$185,906	$181,621	$185,917
Tangible common equity to tangible assets ratio (non-GAAP) (D/E)	7.95%	8.36%	7.41%
Return on average tangible common equity consolidated (non-GAAP) (B/C)	13.02%	12.46%	11.21%
Common equity tier 1 (F)	$17,038	$17,195	$16,549
Add: AFS and Pension AOCI (loss)	(2,152)	(2,028)	(2,601)
Marked common equity tier 1 (non-GAAP) (G)	$14,886	$15,167	$13,948
Risk-weighted assets (H)	$149,465	$145,933	$142,478
Common equity tier 1 ratio (F/H)	11.40%	11.78%	11.62%
Marked CET1 ratio (non-GAAP) (G/H) (b)(c)	9.96%	10.39%	9.79%

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

	Three months ended
	3/31/2026	12/31/2025	3/31/2025
GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Income (loss) from continuing operations attributable to Key common shareholders (GAAP) (I)	$486	$474	$370
Plus: Selected items (net of tax)	-	(16)	-
Net income (loss) from continuing operations attributable to Key common shareholders, excluding selected items (non-GAAP) (J)	$486	$458	$370
Return on average tangible common equity from continuing operations (non-GAAP) (I/C)	13.02%	12.43%	11.24%
Adjusted return on average tangible common equity from continuing operations excluding selected items (non-GAAP) (J/C)	13.02%	12.01%	11.24%
Noninterest income (GAAP) (K)	$723	$782	$668
Plus: Selected items	-	-	-
Adjusted noninterest income (non-GAAP) (L)	$723	$782	$668
Noninterest expense (GAAP) (M)	$1,181	$1,241	$1,131
Less: Intangible asset amortization	2	5	5
Noninterest expense less intangible asset amortization (non-GAAP) (N)	$1,179	$1,236	$1,126
Plus: Selected items (O)	-	21	-
Adjusted noninterest expense less intangible asset amortization (non-GAAP) (P)	$1,179	$1,257	$1,126
Adjusted noninterest expense (non-GAAP) (M+O)	$1,181	$1,262	$1,131
Total taxable-equivalent revenue (non-GAAP) (A+K) = (Q)	$1,953	$2,005	$1,773
Total adjusted taxable-equivalent revenue (non-GAAP) (A+L)	1,953	2,005	1,773
Cash efficiency ratio (non-GAAP) (N/Q)	60.37%	61.65%	63.51%
Adjusted cash efficiency ratio (non-GAAP) (P/Q)	60.37%	62.69%	63.51%
Pre-provision net revenue from continuing operations (non-GAAP) (A+K-M)	$772	$764	$642
Plus: Selected items	-	(21)	-
Adjusted pre-provison net revenue from continuing operations (non-GAAP)	$772	$743	$642
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)	$0.44	$0.43	$0.33
Plus: EPS impact of selected items	-	(0.01)	-
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)	$0.44	$0.41	$0.33
Adjusted operating leverage and fee based adjusted operating leverage
Adjusted noninterest income YoY Growth (R)	8.23%	8.31%	3.25%
Adjusted taxable-equivalent revenue YoY Growth (S)	10.15%	12.45%	15.66%
Adjusted noninterest expense YoY Growth (T)	4.42%	3.27%	31.51%
Adjusted operating leverage (S - T)	5.73%	9.18%	(15.86)%
Adjusted fee-based operating leverage (R - T)	3.81%	5.04%	(28.27)%

(a)Net of capital surplus.

(b)Under the current applicable regulatory capital rules, Key has made the AOCI opt out election, which enables us to exclude components of AOCI from regulatory capital, notably the AOCI relative to securities and pension.

(c)Amounts and ratios as of March 31, 2026 are estimated.

(d)Additional detail provided in Selected Items table on page 22.

(e)Earnings per share may not foot due to rounding.

GAAP = U.S. generally accepted accounting principles; TE = Taxable Equivalent

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

			3/31/2026	12/31/2025	3/31/2025
	Loans		$109,190	$106,541	$104,809
	Loans held for sale		876	1,077	811
	Securities available for sale		38,918	39,596	40,751
	Held-to-maturity securities		9,116	8,622	7,160
	Trading account assets		783	1,061	1,296
	Short-term investments		11,782	10,163	15,349
	Other investments		1,204	949	1,050
		Total earning assets	171,869	168,009	171,226
	Allowance for loan and lease losses		(1,449)	(1,427)	(1,429)
	Cash and due from banks		1,130	1,287	1,909
	Premises and equipment		618	628	602
	Goodwill		2,752	2,752	2,752
	Other intangible assets		5	8	22
	Corporate-owned life insurance		4,439	4,432	4,404
	Accrued income and other assets		9,100	8,481	8,958
	Discontinued assets		199	211	247
		Total assets	$188,663	$184,381	$188,691
	Deposits in domestic offices:
		Interest-bearing deposits	$120,220	$121,100	$122,283
		Noninterest-bearing deposits	27,595	27,613	28,454
		Total deposits	147,815	148,713	150,737
	Federal funds purchased and securities sold under repurchase agreements		34	13	22
	Bank notes and other short-term borrowings		6,149	1,071	2,328
	Accrued expense and other liabilities		3,801	4,286	4,209
	Long-term debt		10,877	9,917	12,392
		Total liabilities	168,676	164,000	169,688
	Preferred stock		2,500	2,500	2,500
	Common shares		1,257	1,257	1,257
	Capital surplus		5,981	6,035	5,946
	Retained earnings		15,622	15,359	14,724
	Treasury stock, at cost		(3,152)	(2,810)	(2,637)
	Accumulated other comprehensive income (loss)		(2,221)	(1,960)	(2,787)
		Key shareholders’ equity	19,987	20,381	19,003
Consolidated Balance Sheets
(Dollars in millions)
Assets
Liabilities
Equity
Total liabilities and equity			$188,663	$184,381	$188,691
Common shares outstanding (000)			1,087,293	1,102,401	1,111,986

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

			Three months ended
			3/31/2026	12/31/2025	3/31/2025
	Loans		$1,416	$1,439	$1,401
	Loans held for sale		14	18	14
	Securities available for sale		370	388	392
	Held-to-maturity securities		86	76	63
	Trading account assets		11	12	17
	Short-term investments		103	137	174
	Other investments		5	8	9
		Total interest income	2,005	2,078	2,070
	Deposits		598	688	753
	Federal funds purchased and securities sold under repurchase agreements		14	4	1
	Bank notes and other short-term borrowings		20	9	27
	Long-term debt		151	162	193
		Total interest expense	783	863	974
Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Interest income
Interest expense
Net interest income			1,222	1,215	1,096
Provision for credit losses			106	108	118
Net interest income after provision for credit losses			1,116	1,107	978
Noninterest income
	Trust and investment services income		157	156	139
	Investment banking and debt placement fees		197	243	175
	Cards and payments income		86	84	82
	Service charges on deposit accounts		77	78	69
	Corporate services income		71	81	65
	Commercial mortgage servicing fees		62	68	76
	Corporate-owned life insurance income		34	40	33
	Consumer mortgage income		13	16	13
	Operating lease income and other leasing gains		8	9	9
	Other income		18	7	7
		Total noninterest income	723	782	668
Noninterest expense
	Personnel		743	790	680
	Net occupancy		68	69	67
	Computer processing		111	106	107
	Business services and professional fees		36	61	40
	Equipment		19	22	20
	Operating lease expense		7	8	11
	Marketing		18	28	21
	Other expense		179	157	185
		Total noninterest expense	1,181	1,241	1,131
Income (loss) from continuing operations before income taxes			658	648	515
	Income taxes (benefit)		136	139	109
Income (loss) from continuing operations			522	509	406
	Income (loss) from discontinued operations, net of taxes		-	1	(1)
Net income (loss)			$522	$510	$405
Income (loss) from continuing operations attributable to Key common shareholders			$486	$474	$370
Net income (loss) attributable to Key common shareholders			486	475	369
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$0.45	$0.43	$0.34
Income (loss) from discontinued operations, net of taxes			-	-	-
Net income (loss) attributable to Key common shareholders			0.45	0.43	0.34
Per common share - assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$0.44	$0.43	$0.33
Income (loss) from discontinued operations, net of taxes			-	-	-
Net income (loss) attributable to Key common shareholders			0.44	0.43	0.33
Cash dividends declared per common share			$0.205	$0.205	$0.205
Weighted-average common shares outstanding (000)			1,084,277	1,095,171	1,096,654
	Effect of common share options and other stock awards		10,091	11,152	9,486
Weighted-average common shares and potential common shares outstanding (000)			1,094,368	1,106,323	1,106,140

(a)Earnings per share may not foot due to rounding.

(b)For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share.

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

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

		First Quarter 2026				Fourth Quarter 2025				First Quarter 2025
		Average			Yield/	Average			Yield/	Average			Yield/
		Balance	Interest		Rate	Balance	Interest		Rate	Balance	Interest		Rate
	Loans: (b), (c)
	Commercial and industrial	$59,149	$843		5.76%	$57,541	$851		5.88%	$53,746	$800		6.04%
	Real estate - commercial mortgage	13,902	198		5.76	13,356	198		5.91	13,061	192		5.96
	Real estate - construction	2,803	45		6.50	2,839	48		6.71	2,905	49		6.87
	Commercial lease financing	2,213	21		3.81	2,302	21		3.73	2,653	23		3.52
	Total commercial loans	78,067	1,107		5.73	76,038	1,118		5.84	72,365	1,064		5.96
	Real estate - residential mortgage	18,593	155		3.34	18,853	157		3.33	19,737	165		3.33
	Home equity loans	5,609	74		5.35	5,780	80		5.47	6,248	86		5.60
	Other consumer loans	4,558	58		5.16	4,715	61		5.15	5,087	63		5.01
	Credit cards	910	30		13.24	930	31		13.24	917	32		14.04
	Total consumer loans	29,670	317		4.30	30,278	329		4.33	31,989	346		4.35
	Total loans	107,737	1,424		5.35	106,316	1,447		5.41	104,354	1,410		5.47
	Loans held for sale	1,092	14		4.99	1,234	18		5.84	815	14		6.70
	Securities available for sale (b), (e)	39,403	370		3.59	39,785	388		3.67	39,321	392		3.70
	Held-to-maturity securities	8,795	86		3.91	8,056	76		3.78	7,274	63		3.46
	Trading account assets	865	11		4.96	961	12		4.79	1,296	17		5.20
	Short-term investments	11,134	103		3.74	13,603	137		4.01	15,211	174		4.63
	Other investments	1,075	5		1.97	935	8		3.09	935	9		3.73
	Total earning assets	170,101	2,013		4.71	170,890	2,086		4.79	169,206	2,079		4.86
	Allowance for loan and lease losses	(1,419)				(1,435)				(1,401)
	Accrued income and other assets	17,567				17,562				18,285
	Discontinued assets	204				215				254
	Total assets	$186,453				$187,232				$186,344
	Money market deposits	$42,732	$223		2.12%	$42,442	$246		2.30%	$42,007	$275		2.65%
	Demand deposits	61,478	279		1.84	61,541	319		2.06	57,460	310		2.19
	Savings deposits	4,378	1		.04	4,358	1		.05	4,610	1		.06
	Time deposits	11,777	95		3.26	13,857	122		3.48	16,625	167		4.09
	Total interest-bearing deposits	120,365	598		2.01	122,198	688		2.23	120,702	753		2.53
	Federal funds purchased and securities sold under repurchase agreements	1,539	14		3.69	413	4		3.80	100	1		3.94
	Bank notes and other short-term borrowings	2,585	20		3.20	1,072	9		3.23	2,273	27		4.74
	Long-term debt	10,186	151		5.96	10,274	162		6.27	11,779	193		6.61
	Total interest-bearing liabilities	134,675	783		2.35	133,957	863		2.56	134,854	974		2.92
	Noninterest-bearing deposits	26,934				28,512				27,840
	Accrued expense and other liabilities	4,248				4,160				4,764
	Discontinued liabilities	204				215				254
	Total liabilities	$166,061				$166,844				$167,712
	Total equity	$20,392				$20,388				$18,632
	Total liabilities and equity	$186,453				$187,232				$186,344
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Assets
Liabilities
Equity
Interest rate spread (TE)					2.36%				2.23%				1.94%
Net interest income (TE) and net interest margin (TE)			$1,230		2.87%		$1,223		2.82%		$1,105		2.58%
TE adjustment				8				8				9
	Net interest income, GAAP basis		$1,222				$1,215				$1,096

(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 March 31, 2026, December 31, 2025, and March 31, 2025.

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

(d)Commercial and industrial average balances include $205 million, $211 million, and $213 million of assets from commercial credit cards for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

(e)Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.5 billion, $42.1 billion, and $42.7 billion for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Yield based on the fair value of securities available for sale was 3.75%, 3.90%, and 3.99% for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, 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.

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

	Three months ended
	3/31/2026	12/31/2025	3/31/2025
Noninterest Expense
(Dollars in millions)
Personnel	$743	$790	$680
Net occupancy	68	69	67
Computer processing	111	106	107
Business services and professional fees	36	61	40
Equipment	19	22	20
Operating lease expense	7	8	11
Marketing	18	28	21
Other expense	179	157	185
Total noninterest expense	$1,181	$1,241	$1,131
Average full-time equivalent employees	17,469	17,396	16,989

(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.

	Three months ended
	3/31/2026	12/31/2025	3/31/2025
Personnel Expense
(Dollars in millions)
Salaries and contract labor	$439	$446	$405
Incentive and stock-based compensation	172	205	158
Employee benefits	127	131	109
Severance	5	8	8
Total personnel expense	$743	$790	$680

				Change 3/31/2026 vs.
	3/31/2026	12/31/2025	3/31/2025	12/31/2025	3/31/2025
Loan Composition
(Dollars in millions)
Commercial and industrial (a), (b)	$60,651	$57,688	$54,378	5.1%	11.5%
Commercial real estate:
Commercial mortgage	14,144	13,707	13,239	3.2	6.8
Construction	2,801	2,844	2,929	(1.5)	(4.4)
Total commercial real estate loans	16,945	16,551	16,168	2.4	4.8
Commercial lease financing	2,200	2,270	2,576	(3.1)	(14.6)
Total commercial loans	79,796	76,509	73,122	4.3	9.1
Real estate - residential mortgage	18,483	18,732	19,622	(1.3)	(5.8)
Home equity loans	5,528	5,703	6,154	(3.1)	(10.2)
Other consumer loans	4,477	4,644	5,000	(3.6)	(10.5)
Credit cards	906	953	911	(4.9)	(.5)
Total consumer loans	29,394	30,032	31,687	(2.1)	(7.2)
Total loans (c), (d)	$109,190	$106,541	$104,809	2.5%	4.2%

(a)Loan balances include $207 million, $205 million, and $218 million of commercial credit card balances at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $192 million at March 31, 2025. Principal reductions are based on the cash payments received from these related receivables.

(c)Total loans exclude loans of $194 million at March 31, 2026, $205 million at December 31, 2025, and $243 million at March 31, 2025, related to the discontinued operations of the education lending business.

(d)Accrued interest of $443 million, $459 million, and $448 million at March 31, 2026, December 31, 2025, and March 31, 2025, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

				Change 3/31/2026 vs.
	3/31/2026	12/31/2025	3/31/2025	12/31/2025	3/31/2025
Loans Held for Sale Composition
(Dollars in millions)
Commercial and industrial	$139	$167	$252	(16.8)%	(44.8)%
Real estate - commercial mortgage	637	761	473	(16.3)	34.7
Real estate - residential mortgage	100	149	86	(32.9)	16.3
Total loans held for sale	$876	$1,077	$811	(18.7)%	8.0%

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

	1Q26	4Q25	3Q25	2Q25	1Q25
Summary of Changes in Loans Held for Sale
(Dollars in millions)
Balance at beginning of period	$1,077	$998	$530	$811	$797
New originations	2,034	3,356	3,471	1,806	1,840
Transfers from (to) held to maturity, net	(13)	(35)	-	(71)	6
Loan sales	(2,201)	(3,232)	(2,956)	(2,012)	(1,695)
Loan draws (payments), net	(25)	(10)	(42)	(1)	(138)
Valuation and other adjustments	4	-	(5)	(3)	1
Balance at end of period	$876	$1,077	$998	$530	$811

	Three months ended
	3/31/2026		12/31/2025		3/31/2025
Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Average loans outstanding	$107,737		$106,316		$104,354
Allowance for loan and lease losses at the beginning of the period	$1,427		$1,444		$1,409
Loans charged off:
Commercial and industrial	90		69		62
Real estate - commercial mortgage	1		25		36
Real estate - construction	-		-		-
Total commercial real estate loans	1		25		36
Commercial lease financing	-		4		-
Total commercial loans	91		98		98
Real estate - residential mortgage	-		1		1
Home equity loans	1		1		1
Other consumer loans	15		14		14
Credit cards	10		10		12
Total consumer loans	26		26		28
Total loans charged off	117		124		126
Recoveries:
Commercial and industrial	10		7		10
Real estate - commercial mortgage	-		6		-
Real estate - construction	-		-		-
Total commercial real estate loans	-		6		-
Commercial lease financing	-		-		-
Total commercial loans	10		13		10
Real estate - residential mortgage	1		1		1
Home equity loans	1		1		1
Other consumer loans	2		2		2
Credit cards	2		3		2
Total consumer loans	6		7		6
Total recoveries	16		20		16
Net loan charge-offs	(101)		(104)		(110)
Provision (credit) for loan and lease losses	123		87		130
Allowance for loan and lease losses at end of period	$1,449		$1,427		$1,429
Liability for credit losses on lending-related commitments at beginning of period	$313		$292		$290
Provision (credit) for losses on lending-related commitments	(17)		21		(12)
Liability for credit losses on lending-related commitments at end of period	$296		$313		$278
Total allowance for credit losses at end of period	$1,745		$1,740		$1,707
Net loan charge-offs to average total loans	.38	%	.39	%	.43	%
Allowance for loan and lease losses to period-end loans	1.33		1.34		1.36
Allowance for credit losses to period-end loans	1.60		1.63		1.63
Allowance for loan and lease losses to nonperforming loans	212		232		208
Allowance for credit losses to nonperforming loans	256		283		249
Discontinued operations - education lending business:
Loans charged off	$1		$1		$1
Recoveries	-		-		-
Net loan charge-offs	$(1)		$(1)		$(1)

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

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

	1Q26		4Q25		3Q25		2Q25		1Q25
Asset Quality Statistics From Continuing Operations
(Dollars in millions)
Net loan charge-offs	$101		$104		$114		$102		$110
Net loan charge-offs to average total loans	.38	%	.39	%	.42	%	.39	%	.43	%
Allowance for loan and lease losses	$1,449		$1,427		$1,444		$1,446		$1,429
Allowance for credit losses	1,745		1,740		1,736		1,743		1,707
Allowance for loan and lease losses to period-end loans	1.33%		1.34%		1.36%		1.36%		1.36%
Allowance for credit losses to period-end loans	1.60		1.63		1.64		1.64		1.63
Allowance for loan and lease losses to nonperforming loans	212		232		219		208		208
Allowance for credit losses to nonperforming loans	256		283		264		250		249
Nonperforming loans at period end	$682		$615		$658		$696		$686
Nonperforming assets at period end	692		627		668		707		700
Nonperforming loans to period-end portfolio loans	.62	%	.58	%	.62	%	.65	%	.65	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.63		.59		.63		.66		.67

(a)Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.

	3/31/2026		12/31/2025		9/30/2025		6/30/2025		3/31/2025
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(Dollars in millions)
Commercial and industrial	$284		$256		$253		$280		$288
Real estate - commercial mortgage	190		157		214		226		206
Real estate - construction	-		-		-		-		-
Total commercial real estate loans	190		157		214		226		206
Commercial lease financing	6		7		-		-		-
Total commercial loans	480		420		467		506		494
Real estate - residential mortgage	115		104		98		95		94
Home equity loans	76		80		82		84		87
Other Consumer loans	4		4		4		4		4
Credit cards	7		7		7		7		7
Total consumer loans	202		195		191		190		192
Total nonperforming loans	682		615		658		696		686
OREO	10		9		10		11		14
Nonperforming loans held for sale	-		3		-		-		-
Total nonperforming assets	$692		$627		$668		$707		$700
Accruing loans past due 90 days or more	$153		$99		$110		$74		$86
Accruing loans past due 30 through 89 days	137		220		254		266		281
Nonperforming assets from discontinued operations - education lending business	2		2		2		2		1
Nonperforming loans to period-end portfolio loans	.62	%	.58	%	.62	%	.65	%	.65	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.63		.59		.63		.66		.67

	1Q26	4Q25	3Q25	2Q25	1Q25
Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
Balance at beginning of period	$615	$658	$696	$686	$758
Loans placed on nonaccrual status	253	248	210	233	170
Charge-offs	(117)	(124)	(140)	(127)	(126)
Loans sold	(2)	(7)	(13)	-	-
Payments	(37)	(124)	(68)	(74)	(57)
Transfers to OREO	(1)	(1)	(1)	(1)	(2)
Loans returned to accrual status	(29)	(35)	(26)	(21)	(57)
Balance at end of period	$682	$615	$658	$696	$686

KeyCorp Reports First Quarter 2026 Results

April 16, 2026

											Change 1Q26 vs.
	1Q26		4Q25		3Q25		2Q25		1Q25		4Q25	1Q25
Line of Business Results
(Dollars in millions)
Consumer Bank
Summary of operations
Total revenue (TE)	$978		$998		$992		$967		$932		(2.0)%	4.9%
Provision for credit losses	40		32		40		55		43		25.0	(7.0)
Noninterest expense	709		734		693		694		675		(3.4)	5.0
Net income (loss) attributable to Key	173		176		196		165		163		(1.7)	6.1
Average loans and leases	34,005		34,683		35,363		36,137		36,819		(2.0)	(7.6)
Average deposits	87,796		87,738		87,692		88,002		88,306		.1	(.6)
Net loan charge-offs	40		49		49		40		52		(18.4)	(23.1)
Net loan charge-offs to average total loans	.48	%	.56	%	.55	%	.44	%	.57	%	(14.3)	(15.8)
Nonperforming assets at period end	$270		$262		$266		$269		$278		3.1	(2.9)
Return on average allocated equity	24.76%		24.24%		26.03%		21.91%		21.28%		2.1	16.4
Commercial Bank
Summary of operations
Total revenue (TE)	$1,117		$1,194		$1,114		$1074		$1047		(6.4)%	6.7%
Provision for credit losses	70		73		68		84		75		(4.1)		N/M
Noninterest expense	474		515		485		451		464		(8.0)	2.2
Net income (loss) attributable to Key	451		472		440		423		399		(4.4)	13.0
Average loans and leases	73,146		71,107		70,328		69,089		67,058		2.9	9.1
Average loans held for sale	958		1,140		1,224		707		754		(16.0)	27.1
Average deposits	58,929		60,485		58,523		55,927		57,481		(2.6)	2.5
Net loan charge-offs	64		53		64		62		57		20.8	12.3
Net loan charge-offs to average total loans	.35	%	.30	%	.36	%	.36	%	.34	%	16.7	2.9
Nonperforming assets at period end	$422		$365		$402		$438		$422		15.6	-
Return on average allocated equity	18.10%		18.80%		17.83%		17.55%		17.16%		(3.7)	5.5

TE = Taxable Equivalent; N/M = Not Meaningful

	Pretax	After-tax at marginal rate
Selected Items Impact on Earnings
(Dollars in millions, except per share amounts)
Quarter to date results	Amount	Net Income	EPS(b), (d)
Three months ended March 31, 2026
No items	$ -	$ -	$ -
Three months ended December 31, 2025
FDIC special assessment (other expense)	21	16	0.01
Three months ended September 30, 2025
FDIC special assessment (other expense)	5	4	-
Three months ended June 30, 2025
No items	-	-	-
Three months ended March 31, 2025
No items	-	-	-

(a)Favorable (unfavorable) impact.

(b)Impact to EPS reflected on a fully diluted basis.

(c)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. Amounts reflected in this table represent adjustments from initial estimates based on quarterly invoices received from the FDIC.

(d)Earnings per share may not foot due to rounding.