KEYCORP REPORTS SECOND QUARTER 2026 NET INCOME OF $472 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 26% YEAR-OVER-YEAR

KEYCORP REPORTS SECOND QUARTER 2026 NET INCOME OF $472 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 26% YEAR-OVER-YEAR Revenue of $1.96 billion, up 7% year-over-year

Net interest income up 9% year-over-year and 2% sequentially; net interest margin of 2.89% increased 2 bps sequentially

Period-end loans up $1.2 billion sequentially, with commercial and industrial loans up $2.1 billion or 3%

Net charge-offs of 42 bps; allowance coverage ratio declined 4 bps sequentially to 1.56%

Common Equity Tier 1 ratio of 11.2% (a); repurchased $341 million of common shares during the quarter

CLEVELAND, July 21, 2026 /PRNewswire/ -- KeyCorp (NYSE: KEY) announced net income from continuing operations attributable to Key common shareholders of $472 million, or $0.44 per diluted common share,for the second quarter of 2026. For the first quarter of 2026, net income from continuing operations attributable to Key common shareholders was $486 million, or $0.44 per diluted common share. For the second quarter of 2025, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $387 million, or $0.35 per diluted common share.

Comments from Chairman and CEO, Chris Gorman

"Our second quarter results reflect the strength of our franchise, disciplined execution, and sustained momentum across our businesses. We delivered 7% revenue growth and generated approximately 130 basis points of operating leverage (b) on a year-over-year basis. We expanded net interest margin and grew net interest income both sequentially and year-over-year.

We continue to deepen client relationships while attracting new clients across our markets. Our priority growth businesses - investment banking, commercial payments, and wealth management - are performing exceptionally well. Investment banking pipelines grew 9% sequentially. Commercial payments continued to deliver strong, double digit fee growth year-over-year. Assets under management grew to a record $74 billion. These results reinforce the value of our relationship-driven model and the differentiated capabilities we have scaled across multiple businesses.

I remain confident in our ability to generate a return on tangible common equity exceeding 15% by year-end 2027. We remain committed to delivering attractive returns to shareholders through both the return on and the return of capital. During the quarter, we repurchased more than $340 million of common shares, reflecting our confidence in the business and our commitment to creating long-term shareholder value.

We are operating from a position of strength, supported by a resilient balance sheet, a diversified business model, and strong capital generation. While the operating environment remains dynamic, our performance in the first half of the year demonstrates the power of our strategy, the depth of our client relationships, and the agility of our teammates.

Looking ahead, we remain focused on the significant organic growth opportunities in front of us, investing in the capabilities that will further differentiate our franchise, and delivering value for all of our stakeholders."

(a) June 30, 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.

Selected Financial Highlights

Dollars in millions, except per share data

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

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

$ 472

$ 486

$ 387

(2.9) %

22.0 %

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

common share — assuming dilution

0.44

0.35

—

25.7

Book value at period end

16.19

16.13

15.32

0.4

5.7

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

12.89 %

13.02 %

11.09 %

(13) bps

180 bps

Return on average total assets from continuing operations

1.08

1.14

.91

(6)

Common Equity Tier 1 ratio (b)

11.2

11.4

11.7

(20)

(50)

Net interest margin (TE) from continuing operations

2.89

2.87

2.66

(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)

June 30, 2026 ratio is estimated.

TE = Taxable Equivalent

INCOME STATEMENT HIGHLIGHTS

Revenue

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Net interest income (TE) (a)

$ 1,258

$ 1,230

$ 1,150

2.3 %

9.4 %

Noninterest income

706

723

690

(2.4)

2.3

Total revenue (TE)

$ 1,964

$ 1,953

$ 1,840

0.6 %

6.7 %

(a)

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.

TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.26 billion for the second quarter of 2026 and the net interest margin was 2.89%. Compared to the second quarter of 2025, net interest income increased by $108 million, and the net interest margin increased by 23 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 repricing earning assets.

Compared to the first quarter of 2026, taxable-equivalent net interest income increased by $28 million, and the net interest margin increased by 2 basis points. These increases reflect growth in commercial and industrial loans and the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher-yielding investments. Additionally, net interest income benefited from one additional day in the second quarter of 2026 compared to the first quarter of 2026.

Noninterest Income

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Trust and investment services income

$ 159

$ 157

$ 146

1.3 %

8.9 %

Investment banking and debt placement fees

169

197

178

(14.2)

(5.1)

Cards and payments income

9.3

10.6

Service charges on deposit accounts

—

5.5

Corporate services income

12.7

5.3

Commercial mortgage servicing fees

(21.0)

(30.0)

Corporate-owned life insurance income

(2.9)

3.1

Consumer mortgage income

30.8

13.3

Operating lease income and other leasing gains

25.0

(28.6)

Other income

(16.7)

N/M

Net securities gains (losses)

—

N/M

Total noninterest income

$ 706

$ 723

$ 690

(2.4) %

2.3 %

N/M = Not Meaningful

Compared to the second quarter of 2025, noninterest income increased by $16 million. The increase was driven by a $13 million increase in trust and investment services income, as well as a $14 million increase in other income. These were partially offset by a $21 million decrease in commercial mortgage servicing fees.

Compared to the first quarter of 2026, noninterest income decreased by $17 million. The decrease was driven by a $28 million decrease in investment banking and debt placement fees, and a $13 million decrease in commercial mortgage servicing fees. These were partially offset by a $9 million increase in corporate services income and an $8 million increase in cards and payments income.

Noninterest Expense

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Personnel expense

$ 786

$ 743

$ 705

5.8 %

11.5 %

Net occupancy

—

(1.4)

Computer processing

108

111

107

(2.7)

0.9

Business services and professional fees

27.8

(4.2)

Equipment

15.8

4.8

Operating lease expense

—

(30.0)

Marketing

22.2

(8.3)

Other expense

158

179

170

(11.7)

(7.1)

Total noninterest expense

$ 1,217

$ 1,181

$ 1,154

3.0 %

5.5 %

Compared to the second quarter of 2025, noninterest expense increased by $63 million. The increase was predominantly driven by an $81 million increase in personnel expense primarily related to employee benefits, incentive compensation associated with noninterest income growth, and continued investments in people.

Compared to the first quarter of 2026, noninterest expense increased by $36 million. The increase was predominantly driven by a $43 million increase in personnel expense, primarily related to incentive compensation, as well as a $10 million increase in business services and professional fees. These were partially offset by a $21 million decrease in other expense primarily related to lower charitable contributions.

BALANCE SHEET HIGHLIGHTS

Average Loans

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Commercial and industrial (a)

$ 62,134

$ 59,149

$ 55,604

5.0 %

11.7 %

Other commercial loans

18,844

18,918

18,708

(0.4)

0.7

Total consumer loans

29,094

29,670

31,403

(1.9)

(7.4)

Total loans

$ 110,072

$ 107,737

$ 105,715

2.2 %

4.1 %

(a)

Commercial and industrial average loan balances include $209 million, $205 million, and $218 million of assets from commercial credit cards at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Average loans were $110.1 billion for the second quarter of 2026, an increase of $4.4 billion compared to the second quarter of 2025. Average commercial loans increased by $6.7 billion, primarily driven by a $6.5 billion increase in commercial and industrial loans. Average consumer loans declined by $2.3 billion, reflective of the intentional run-off of low-yielding loans.

Compared to the first quarter of 2026, average loans increased by $2.3 billion. Average commercial loans increased $2.9 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $576 million, reflective of broad-based declines across all consumer loan categories.

Average Deposits

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Non-time deposits

$ 135,828

$ 135,522

$ 131,845

0.2 %

3.0 %

Time deposits

11,749

11,777

15,601

(0.2)

(24.7)

Total deposits

$ 147,577

$ 147,299

$ 147,446

0.2 %

0.1 %

Cost of total deposits

1.63 %

1.65 %

1.99 %

(2) bps

(36) bps

Average deposits totaled $147.6 billion for the second quarter of 2026, an increase of $131 million compared to the year-ago quarter, reflecting growth in demand deposits, partially offset by a decline in time deposits.

Compared to the first quarter of 2026, average deposits increased by $278 million. The increase was driven by growth in noninterest bearing deposits, partially offset by lower demand deposits. The rate paid on interest-bearing deposits was flat sequentially, and the overall cost of deposits declined by 2 basis points to 1.63%.

ASSET QUALITY

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Net loan charge-offs

$ 115

$ 101

$ 102

13.9 %

12.7 %

Net loan charge-offs to average total loans

0.42 %

0.38 %

0.39 %

4 bps

3 bps

Nonperforming loans at period end

$ 809

$ 682

$ 696

18.6 %

16.2 %

Nonperforming loans to period-end portfolio loans

0.73 %

0.62 %

0.65 %

11 bps

8 bps

Nonperforming assets at period end

$ 818

$ 692

$ 707

18.2 %

15.7 %

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

nonperforming assets

0.74 %

0.63 %

0.66 %

11 bps

8 bps

Allowance for loan and lease losses

$ 1,445

$ 1,449

$ 1,446

(0.3) %

(0.1) %

Allowance for credit losses

1,722

1,745

1,743

(1.3) %

(1.2) %

Allowance for credit losses to period-end loans

1.56 %

1.60 %

1.64 %

(4) bps

(8) bps

Provision for credit losses

$ 92

$ 106

$ 138

(13.2) %

(33.3) %

Allowance for loan and lease losses to nonperforming loans

179 %

212 %

208 %

N/M

Allowance for credit losses to nonperforming loans

213

256

250

N/M

N/M = Not Meaningful

Net loan charge-offs for the second quarter of 2026 totaled $115 million, or 0.42% of average total loans. These results compare to $102 million, or 0.39%, for the second quarter of 2025 and $101 million, or 0.38%, for the first quarter of 2026.

Key's allowance for credit losses was $1.7 billion, or 1.56% of total period-end loans at June 30, 2026, compared to 1.64% at June 30, 2025, and 1.60% at March 31, 2026. A reserve release of $23 million during the second quarter of 2026 was the result of resilient economic scenario assumptions and the improving mix shift of commercial loans.

At June 30, 2026, Key's nonperforming loans totaled $809 million, which represented 0.73% of period-end portfolio loans. These results compare to 0.65% at June 30, 2025, and 0.62% at March 31, 2026. Nonperforming assets at June 30, 2026, totaled $818 million, and represented 0.74% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.66% at June 30, 2025, and 0.63% at March 31, 2026.

CAPITAL

Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at June 30, 2026.

Capital Ratios

6/30/2026

3/31/2026

6/30/2025

Common Equity Tier 1 (a)

11.2 %

11.4 %

11.7 %

Tier 1 risk-based capital (a)

12.8

13.0

13.4

Total risk-based capital (a)

14.8

15.2

15.7

Tangible common equity to tangible assets (b)

7.7

8.0

7.8

Leverage (a)

10.3

10.5

10.3

(a)

June 30, 2026 ratio is estimated.

(b)

Key's regulatory capital position remained strong in the second quarter of 2026. As shown in the preceding table, at June 30, 2026, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.2% and 12.8%, respectively.

Summary of Changes in Common Shares Outstanding

In thousands

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Shares outstanding at beginning of period

1,087,293

1,102,401

1,111,986

(1.4) %

(2.2) %

Share repurchases

(15,531)

(17,969)

—

(13.6)

N/M

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

273

2,861

467

(90.5)

(41.5)

Shares outstanding at end of period

1,072,035

1,087,293

1,112,453

(1.4) %

(3.6) %

N/M = Not Meaningful

During the second quarter of 2026, Key declared a dividend of $.205 per common share. The reduction in share count was driven by $341 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 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Revenue from continuing operations (TE)

Consumer Bank

$ 1,010

$ 977

$ 966

3.4 %

4.6 %

Commercial Bank

1,108

1,119

1,074

(1.0)

3.2

Other (a)

(154)

(143)

(200)

(7.7)

23.0

Total

$ 1,964

$ 1,953

$ 1,840

0.6 %

6.7 %

Income (loss) from continuing operations attributable to Key

Consumer Bank

$ 203

$ 174

$ 165

16.7 %

23.0 %

Commercial Bank

423

452

423

(6.4)

—

Other (a)

(118)

(104)

(165)

(13.5)

28.5

Total

$ 508

$ 522

$ 423

(2.7) %

20.1 %

(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 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 differences. 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

Consumer Bank

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Summary of operations

Net interest income (TE)

$ 757

$ 738

$ 731

2.6 %

3.6 %

Noninterest income

253

239

235

5.9

7.7

Total revenue (TE)

1,010

977

966

3.4

4.6

Provision for credit losses

(35.0)

(52.7)

Noninterest expense

716

708

693

1.1

3.3

Income (loss) before income taxes (TE)

268

229

218

17.0

22.9

Allocated income taxes (benefit) and TE adjustments

18.2

22.6

Net income (loss) attributable to Key

$ 203

$ 174

$ 165

16.7 %

23.0 %

Average balances

Loans and leases

$ 33,263

$ 33,997

$ 36,138

(2.2) %

(8.0) %

Total assets

36,630

37,341

39,156

(1.9)

(6.5)

Deposits

87,399

87,796

88,002

(0.5)

(0.7)

Assets under management at period end

$ 74,204

$ 69,756

$ 64,244

6.4 %

15.5 %

TE = Taxable Equivalent

Additional Consumer Bank Data

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Noninterest income

Trust and investment services income

$ 135

$ 130

$ 119

3.8 %

13.4 %

Service charges on deposit accounts

(2.9)

(5.7)

Cards and payments income

11.1

—

Consumer mortgage income

23.1

14.3

Other noninterest income

12.5

28.6

Total noninterest income

$ 253

$ 239

$ 235

5.9 %

7.7 %

Average deposit balances

Money market deposits

$ 36,116

$ 35,920

$ 34,524

0.5 %

4.6 %

Demand deposits

22,861

23,214

22,784

(1.5)

0.3

Savings deposits

4,238

4,199

4,406

0.9

(3.8)

Time deposits

10,102

10,610

11,907

(4.8)

(15.2)

Noninterest-bearing deposits

14,082

13,853

14,381

1.7

(2.1)

Total deposits

$ 87,399

$ 87,796

$ 88,002

(0.5) %

(0.7) %

Other data

Branches

939

940

943

Automated teller machines

1,107

1,112

1,166

Consumer Bank Summary of Operations (2Q26 vs. 2Q25)

Commercial Bank

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Summary of operations

Net interest income (TE)

$ 697

$ 674

$ 649

3.4 %

7.4 %

Noninterest income

411

445

425

(7.6)

(3.3)

Total revenue (TE)

1,108

1,119

1,074

(1.0)

3.2

Provision for credit losses

(4.3)

(20.2)

Noninterest expense

503

474

451

6.1

11.5

Income (loss) before income taxes (TE)

538

575

539

(6.4)

(0.2)

Allocated income taxes and TE adjustments

115

123

116

(6.5)

(0.9)

Net income (loss) attributable to Key

$ 423

$ 452

$ 423

(6.4) %

— %

Average balances

Loans and leases

$ 76,238

$ 73,146

$ 69,089

4.2 %

10.3 %

Loans held for sale

936

958

707

(2.3)

32.4

Total assets

85,793

82,455

78,624

4.0

9.1

Deposits

58,895

58,929

55,927

(0.1)

5.3

TE = Taxable Equivalent

Additional Commercial Bank Data

Dollars in millions

Change 2Q26 vs.

2Q26

1Q26

2Q25

1Q26

2Q25

Noninterest income

Trust and investment services income

$ 24

$ 27

$ 26

(11.1) %

(7.7)

Investment banking and debt placement fees

169

198

179

(14.6)

(5.6) %

Cards and payments income

7.4

38.1

Service charges on deposit accounts

2.3

12.8

Corporate services income

11.4

4.0

Commercial mortgage servicing fees

(21.0)

(30.0)

Operating lease income and other leasing gains

25.0

(33.3)

Other noninterest income

—

(20.0)

N/M

Total noninterest income

$ 411

$ 445

$ 425

(7.6) %

(3.3) %

N/M = Not Meaningful

Commercial Bank Summary of Operations (2Q26 vs. 2Q25)

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 $191 billion at June 30, 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.

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 9:00 a.m. ET, on July 21, 2026. A replay of the call will be available on our website through July 21, 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

Second 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

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.

Financial Highlights

(Dollars in millions, except per share amounts)

Three months ended

6/30/2026

3/31/2026

6/30/2025

Summary of operations

Net interest income (TE)

$ 1,258

$ 1,230

$ 1,150

Noninterest income

706

723

690

Total revenue (TE)

1,964

1,953

1,840

Provision for credit losses

106

138

Noninterest expense

1,217

1,181

1,154

Income (loss) from continuing operations attributable to Key

508

522

423

Income (loss) from discontinued operations, net of taxes

—

Net income (loss) attributable to Key

509

522

425

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

472

486

387

Income (loss) from discontinued operations, net of taxes

—

Net income (loss) attributable to Key common shareholders

473

486

389

Per common share

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

$ 0.44

$ 0.45

$ 0.35

Income (loss) from discontinued operations, net of taxes

—

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

0.44

0.45

0.35

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

0.44

0.35

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

—

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

0.44

0.35

Cash dividends declared

0.205

Book value at period end

16.19

16.13

15.32

Tangible book value at period end

13.62

13.60

12.83

Market price at period end

23.05

20.05

17.42

Performance ratios

From continuing operations:

Return on average total assets

1.08 %

1.14 %

0.91 %

Return on average common equity

10.85

11.02

9.26

Return on average tangible common equity (b)

12.89

13.02

11.09

Net interest margin (TE)

2.89

2.87

2.66

Cash efficiency ratio (b)

61.9

60.4

62.4

From consolidated operations:

Return on average total assets

1.08 %

1.14 %

0.91 %

Return on average common equity

10.87

11.02

9.31

Return on average tangible common equity (b)

12.91

13.02

11.15

Net interest margin (TE)

2.89

2.87

2.66

Loan to deposit (c)

73.0

74.6

72.9

Capital ratios at period end

Key shareholders' equity to assets

10.3 %

10.6 %

10.5 %

Key common shareholders' equity to assets

9.1

9.3

9.2

Tangible common equity to tangible assets (b)

7.7

8.0

7.8

Common Equity Tier 1 (d)

11.2

11.4

11.7

Tier 1 risk-based capital (d)

12.8

13.0

13.4

Total risk-based capital (d)

14.8

15.2

15.7

Leverage (d)

10.3

10.5

10.3

Asset quality — from continuing operations

Net loan charge-offs

$ 115

$ 101

$ 102

Net loan charge-offs to average loans

0.42 %

0.38 %

0.39 %

Allowance for loan and lease losses

$ 1,445

$ 1,449

$ 1,446

Allowance for credit losses

1,722

1,745

1,743

Allowance for loan and lease losses to period-end loans

1.31 %

1.33 %

1.36 %

Allowance for credit losses to period-end loans

1.56

1.60

1.64

Allowance for loan and lease losses to nonperforming loans

179

212

208

Allowance for credit losses to nonperforming loans

213

256

250

Nonperforming loans at period-end

$ 809

$ 682

$ 696

Nonperforming assets at period-end

818

692

707

Nonperforming loans to period-end portfolio loans

0.73 %

0.62 %

0.65 %

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

0.74

0.63

0.66

Trust assets

Assets under management

$ 74,204

$ 69,756

$ 64,244

Other data

Average full-time equivalent employees

17,517

17,469

17,105

Branches

939

940

943

Taxable-equivalent adjustment

$ 8

$ 9

(a)

Earnings per share may not foot due to rounding.

(b)

The table entitled "GAAP to Non-GAAP Reconciliations" starting on page 15 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)

June 30, 2026, ratio is estimated.

Financial Highlights (continued)

(Dollars in millions, except per share amounts)

Six months ended

6/30/2026

6/30/2025

Summary of operations

Net interest income (TE)

$ 2,488

$ 2,255

Noninterest income

1,429

1,358

Total revenue (TE)

3,917

3,613

Provision for credit losses

198

256

Noninterest expense

2,398

2,285

Income (loss) from continuing operations attributable to Key

1,030

829

Income (loss) from discontinued operations, net of taxes

Net income (loss) attributable to Key

1,031

830

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

958

757

Income (loss) from discontinued operations, net of taxes

Net income (loss) attributable to Key common shareholders

959

758

Per common share

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

$ 0.89

$ 0.69

Income (loss) from discontinued operations, net of taxes

—

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

0.89

0.69

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

0.88

0.69

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

—

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

0.88

0.69

Cash dividends paid

0.41

Performance ratios

From continuing operations:

Return on average total assets

1.11 %

0.90 %

Return on average common equity

10.93

9.28

Return on average tangible common equity (b)

12.96

11.16

Net interest margin (TE)

2.88

2.62

Cash efficiency ratio (b)

61.1

63.0

From consolidated operations:

Return on average total assets

1.11 %

0.90 %

Return on average common equity

10.95

9.29

Return on average tangible common equity (b)

12.97

11.18

Net interest margin (TE)

2.88

2.62

Asset quality — from continuing operations

Net loan charge-offs

$ 216

$ 212

Net loan charge-offs to average total loans

0.40 %

0.41 %

Other data

Average full-time equivalent employees

17,493

17,047

Taxable-equivalent adjustment

(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.

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. Management believes this measure provides useful information in light of the potential for change in the regulatory capital framework.

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

Six months ended

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Net interest income (GAAP)

$ 1,250

$ 1,222

$ 1,141

$ 2,472

$ 2,237

Add: Taxable-equivalent adjustment

Net interest income TE (non-GAAP) (A)

$ 1,258

$ 1,230

$ 1,150

$ 2,488

$ 2,255

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

$ 473

$ 486

$ 389

$ 959

$ 758

Average Key shareholders' equity (GAAP)

$ 19,947

$ 20,392

$ 19,268

$ 20,169

$ 18,952

Less: Average intangible assets

2,756

2,758

2,772

2,757

2,774

Average preferred stock

2,500

Average tangible common equity (non-GAAP) (C)

$ 14,691

$ 15,134

$ 13,996

$ 14,912

$ 13,678

Key shareholders' equity (GAAP)

$ 19,798

$ 19,987

$ 19,484

Less: Intangible assets

2,755

2,757

2,770

Preferred stock (a)

2,446

Tangible common equity (non-GAAP) (D)

$ 14,597

$ 14,784

$ 14,268

Total assets (GAAP)

$ 191,317

$ 188,663

$ 185,499

Less: Intangible assets

2,755

2,757

2,770

Tangible assets (non-GAAP) (E)

$ 188,562

$ 185,906

$ 182,729

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

7.74 %

7.95 %

7.81 %

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

12.91 %

13.02 %

11.15 %

12.97 %

11.18 %

Common equity tier 1 (F)

$ 17,016

$ 17,038

$ 16,775

Add: AFS and Pension AOCI (loss)

(2,154)

(2,152)

(2,476)

Marked common equity tier 1 (non-GAAP) (G) (b)

$ 14,862

$ 14,886

$ 14,299

Risk-weighted assets (H) (c)

$ 152,317

$ 149,338

$ 143,427

Common equity tier 1 ratio (F/H) (c)

11.2 %

11.4 %

11.7 %

Marked CET1 ratio (non-GAAP) (G/H) (b)(c)

9.8

10.0

GAAP to Non-GAAP Reconciliations (continued)

(Dollars in millions)

Three months ended

Six months ended

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

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

$ 472

$ 486

$ 387

$ 958

$ 757

Plus: Selected items (net of tax) (d)

—

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

selected items (non-GAAP) (J)

$ 472

$ 486

$ 387

$ 958

$ 757

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

12.89 %

13.02 %

11.09 %

12.96 %

11.16 %

Adjusted return on average tangible common equity from continuing operations excluding selected

items (non-GAAP) (J/C)

12.89

13.02

11.09

12.96

11.16

Noninterest income (GAAP) (K)

$ 706

$ 723

$ 690

$ 1,429

$ 1,358

Plus: Selected items (d)

—

Adjusted noninterest income (non-GAAP) (L)

$ 706

$ 723

$ 690

$ 1,429

$ 1,358

Noninterest expense (GAAP) (M)

$ 1,217

$ 1,181

$ 1,154

$ 2,398

$ 2,285

Less: Intangible asset amortization

Noninterest expense less intangible asset amortization (non-GAAP) (N)

$ 1,215

$ 1,179

$ 1,149

$ 2,394

$ 2,275

Plus: Selected items (d) (O)

—

Adjusted noninterest expense less intangible asset amortization (non-GAAP) (P)

$ 1,215

$ 1,179

$ 1,149

$ 2,394

$ 2,275

Adjusted noninterest expense (non-GAAP) (M+O)

$ 1,217

$ 1,181

$ 1,154

$ 2,398

$ 2,285

Total taxable-equivalent revenue (non-GAAP) (A+K) = (Q)

$ 1,964

$ 1,953

$ 1,840

$ 3,917

$ 3,613

Total adjusted taxable-equivalent revenue (non-GAAP) (A+L)

1,964

1,953

1,840

3,917

3,613

Cash efficiency ratio (non-GAAP) (N/Q)

61.86 %

60.37 %

62.45 %

61.12 %

62.97 %

Adjusted cash efficiency ratio (non-GAAP) (P/Q)

61.86

60.37

62.45

61.12

62.97

Pre-provision net revenue from continuing operations (non-GAAP) (A+K-M)

$ 747

$ 772

$ 686

$ 1,519

$ 1,328

Plus: Selected items (d)

—

Adjusted pre-provison net revenue from continuing operations (non-GAAP)

$ 747

$ 772

$ 686

$ 1,519

$ 1,328

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

$ 0.44

$ 0.35

$ 0.88

$ 0.69

Plus: EPS impact of selected items (d)

—

Diluted EPS from continuing operations attributable to Key common shareholders - adjusted

(non-GAAP) (e)

$ 0.44

$ 0.35

$ 0.88

$ 0.69

Adjusted operating leverage and fee based adjusted operating leverage

Adjusted noninterest income YoY Growth (R)

2.32 %

8.23 %

10.05 %

76.64 %

(36.50) %

Adjusted taxable-equivalent revenue YoY Growth (S)

6.74

10.15

20.58

8.41

18.11

Adjusted noninterest expense YoY Growth (T)

5.46

4.42

44.79

4.95

4.43

Adjusted operating leverage (S - T)

1.28

5.73

(24.22)

3.47

13.68

Adjusted fee-based operating leverage (R - T)

(3.14)

3.81

(34.75)

71.69

(40.93)

(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 June 30, 2026 are estimated.

(d)

Additional detail provided in Selected Items table on page 24.

(e)

Earnings per share may not foot due to rounding.

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

Consolidated Balance Sheets

(Dollars in millions)

6/30/2026

3/31/2026

6/30/2025

Assets

Loans

$ 110,430

$ 109,190

$ 106,389

Loans held for sale

1,198

876

530

Securities available for sale

38,459

38,918

40,669

Held-to-maturity securities

9,515

9,116

6,914

Trading account assets

936

783

1,374

Short-term investments

12,416

11,782

11,564

Other investments

1,230

1,204

1,058

Total earning assets

174,184

171,869

168,498

Allowance for loan and lease losses

(1,445)

(1,449)

(1,446)

Cash and due from banks

1,711

1,130

1,766

Premises and equipment

620

618

599

Goodwill

2,752

Other intangible assets

Corporate-owned life insurance

4,456

4,439

4,423

Accrued income and other assets

8,848

9,100

8,654

Discontinued assets

188

199

235

Total assets

$ 191,317

$ 188,663

$ 185,499

Liabilities

Deposits in domestic offices:

Interest-bearing deposits

$ 122,196

$ 120,220

$ 119,230

Noninterest-bearing deposits

30,893

27,595

27,675

Total deposits

153,089

147,815

146,905

Federal funds purchased and securities sold under repurchase agreements

Bank notes and other short-term borrowings

3,680

6,149

2,754

Accrued expense and other liabilities

3,778

3,801

4,273

Long-term debt

10,967

10,877

12,063

Total liabilities

171,519

168,676

166,015

Equity

Preferred stock

2,500

Common shares

1,257

Capital surplus

6,014

5,981

5,971

Retained earnings

15,873

15,622

14,886

Treasury stock, at cost

(3,492)

(3,152)

(2,629)

Accumulated other comprehensive income (loss)

(2,354)

(2,221)

(2,501)

Key shareholders' equity

19,798

19,987

19,484

Total liabilities and equity

$ 191,317

$ 188,663

$ 185,499

Common shares outstanding (000)

1,072,035

1,087,293

1,112,453

Consolidated Statements of Income

(Dollars in millions, except per share amounts)

Three months ended

Six months ended

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Interest income

Loans

$ 1,463

$ 1,416

$ 1,443

$ 2,879

$ 2,844

Loans held for sale

Securities available for sale

367

370

411

737

803

Held-to-maturity securities

181

124

Trading account assets

Short-term investments

101

103

157

204

331

Other investments

Total interest income

2,059

2,005

2,107

4,064

4,177

Interest expense

Deposits

600

598

730

1,198

1,483

Federal funds purchased and securities sold under repurchase agreements

Bank notes and other short-term borrowings

Long-term debt

155

151

198

306

391

Total interest expense

809

783

966

1,592

1,940

Net interest income

1,250

1,222

1,141

2,472

2,237

Provision for credit losses

106

138

198

256

Net interest income after provision for credit losses

1,158

1,116

1,003

2,274

1,981

Noninterest income

Trust and investment services income

159

157

146

316

285

Investment banking and debt placement fees

169

197

178

366

353

Cards and payments income

180

167

Service charges on deposit accounts

154

142

Corporate services income

151

141

Commercial mortgage servicing fees

111

146

Corporate-owned life insurance income

Consumer mortgage income

Operating lease income and other leasing gains

Other income

Net securities gains (losses)

—

Total noninterest income

706

723

690

1,429

1,358

Noninterest expense

Personnel

786

743

705

1,529

1,385

Net occupancy

136

Computer processing

108

111

107

219

214

Business services and professional fees

Equipment

Operating lease expense

Marketing

Other expense

158

179

170

337

355

Total noninterest expense

1,217

1,181

1,154

2,398

2,285

Income (loss) from continuing operations before income taxes

647

658

539

1,305

1,054

Income taxes (benefit)

139

136

116

275

225

Income (loss) from continuing operations

508

522

423

1,030

829

Income (loss) from discontinued operations, net of taxes

—

Net income (loss)

$ 509

$ 522

$ 425

$ 1,031

$ 830

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

$ 472

$ 486

$ 387

$ 958

$ 757

Net income (loss) attributable to Key common shareholders

473

486

389

959

758

Per common share

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

$ 0.44

$ 0.45

$ 0.35

$ 0.89

$ 0.69

Income (loss) from discontinued operations, net of taxes

—

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

0.44

0.45

0.35

0.89

0.69

Per common share — assuming dilution

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

$ 0.44

$ 0.35

$ 0.88

$ 0.69

Income (loss) from discontinued operations, net of taxes

—

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

0.44

0.35

0.88

0.69

Cash dividends declared per common share

$ 0.205

$ 0.410

Weighted-average common shares outstanding (000)

1,071,229

1,084,277

1,100,033

1,077,977

1,098,453

Effect of common share options and other stock awards (b)

8,779

10,091

7,177

9,435

8,331

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

1,080,008

1,094,368

1,107,210

1,087,412

1,106,784

(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.

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

(Dollars in millions)

Second Quarter 2026

First Quarter 2026

Second Quarter 2025

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)

$ 62,134

$ 896

5.78 %

$ 59,149

$ 843

5.76 %

$ 55,604

$ 838

6.04 %

Real estate — commercial mortgage

13,911

197

5.68

13,902

198

5.76

13,311

200

6.02

Real estate — construction

2,816

6.53

2,803

6.50

2,873

6.95

Commercial lease financing

2,117

3.77

2,213

3.81

2,524

3.59

Total commercial loans

80,978

1,159

5.73

78,067

1,107

5.73

74,312

1,110

5.99

Real estate — residential mortgage

18,305

153

3.35

18,593

155

3.34

19,446

162

3.34

Home equity loans

5,470

5.33

5,609

5.35

6,091

5.63

Other consumer loans

4,410

5.18

4,558

5.16

4,946

5.09

Credit cards

909

12.67

910

13.24

920

13.44

Total consumer loans

29,094

312

4.29

29,670

317

4.30

31,403

342

4.36

Total loans

110,072

1,471

5.35

107,737

1,424

5.35

105,715

1,452

5.51

Loans held for sale

1,085

5.68

1,092

4.99

770

5.72

Securities available for sale (b), (e)

38,518

367

3.58

39,403

370

3.59

40,714

411

3.76

Held-to-maturity securities (b)

9,425

4.05

8,795

3.91

7,038

3.46

Trading account assets

797

5.30

865

4.96

1,259

5.32

Short-term investments

10,705

101

3.79

11,134

103

3.74

13,489

157

4.67

Other investments (e)

1,214

2.66

1,075

1.97

1,015

3.41

Total earning assets

171,816

2,067

4.75

170,101

2,013

4.71

170,000

2,116

4.90

Allowance for loan and lease losses

(1,442)

(1,419)

(1,424)

Accrued income and other assets

17,926

17,567

18,224

Discontinued assets

192

204

239

Total assets

$ 188,492

$ 186,453

$ 187,039

Liabilities

Money market deposits

$ 42,843

$ 225

2.11 %

$ 42,732

$ 223

2.12 %

$ 42,586

$ 276

2.60 %

Demand deposits

61,013

280

1.84

61,478

279

1.84

57,155

309

2.17

Savings deposits

4,406

0.04

4,378

0.04

4,631

0.06

Time deposits

11,749

3.21

11,777

3.26

15,601

144

3.70

Total interest-bearing deposits

120,011

600

2.01

120,365

598

2.01

119,973

730

2.44

Federal funds purchased and securities sold under repurchase agreements

2,002

3.71

1,539

3.69

415

4.28

Bank notes and other short-term borrowings

4,179

3.33

2,585

3.20

3,288

4.27

Long-term debt (f)

10,694

155

5.84

10,186

151

5.96

12,088

198

6.55

Total interest-bearing liabilities

136,886

809

2.37

134,675

783

2.35

135,764

966

2.86

Noninterest-bearing deposits

27,566

26,934

27,473

Accrued expense and other liabilities

3,901

4,248

4,295

Discontinued liabilities (f)

192

204

239

Total liabilities

$ 168,545

$ 166,061

$ 167,771

Equity

Total equity

$ 19,947

$ 20,392

$ 19,268

Total liabilities and equity

$ 188,492

$ 186,453

$ 187,039

Interest rate spread (TE)

2.38 %

2.36 %

2.04 %

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

$ 1,258

2.89 %

$ 1,230

2.87 %

$ 1,150

2.66 %

TE adjustment (b)

Net interest income, GAAP basis

$ 1,250

$ 1,222

$ 1,141

(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 June 30, 2026, March 31, 2026, and June 30, 2025.

(c)

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

(d)

Commercial and industrial average balances include $209 million, $205 million, and $218 million of assets from commercial credit cards for the three months ended June 30, 2026, March 31, 2026, and June 30, 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 $41.0 billion, $41.5 billion, and $43.8 billion for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.81%, 3.75%, and 4.03% for the three months ended June 30, 2026, March 31, 2026, and June 30, 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.

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

(Dollars in millions)

Six months ended June 30, 2026

Six months ended June 30, 2025

Average

Yield/

Average

Yield/

Balance

Interest (a)

Rate (a)

Balance

Interest (a)

Rate (a)

Assets

Loans: (b), (c)

Commercial and industrial (d)

$ 60,650

$ 1,739

5.77 %

$ 54,680

$ 1,638

6.04 %

Real estate — commercial mortgage

13,906

395

5.72

13,187

392

5.99

Real estate — construction

2,810

6.52

2,889

6.91

Commercial lease financing

2,165

3.79

2,588

3.55

Total commercial loans

79,531

2,266

5.73

73,344

2,175

5.98

Real estate — residential mortgage

18,448

308

3.35

19,591

327

3.34

Home equity loans

5,539

147

5.34

6,169

172

5.62

Other consumer loans

4,483

115

5.17

5,016

126

5.05

Credit cards

910

12.95

919

13.74

Total consumer loans

29,380

629

4.30

31,695

687

4.35

Total loans

108,911

2,895

5.34

105,039

2,862

5.49

Loans held for sale

1,088

5.33

792

6.23

Securities available for sale (b), (e)

38,958

737

3.58

40,021

803

3.73

Held-to-maturity securities (b)

9,112

181

3.98

7,156

124

3.46

Trading account assets

831

5.13

1,277

5.26

Short-term investments

10,918

204

3.77

14,345

331

4.65

Other investments (e)

1,145

2.33

975

3.57

Total earning assets

170,963

4,080

4.73

169,605

4,195

4.88

Allowance for loan and lease losses

(1,431)

(1,413)

Accrued income and other assets

17,748

18,254

Discontinued assets

198

246

Total assets

$ 187,478

$ 186,692

Liabilities

Money market deposits

$ 42,788

$ 448

2.12 %

$ 42,298

$ 551

2.63 %

Other demand deposits

61,244

559

1.84

57,307

619

2.18

Savings deposits

4,392

0.04

4,620

0.06

Time deposits

11,763

189

3.23

16,110

311

3.90

Total interest-bearing deposits

120,187

1,198

2.01

120,335

1,483

2.49

Federal funds purchased and securities sold under repurchase agreements

1,772

3.70

258

4.22

Bank notes and other short-term borrowings

3,386

3.28

2,784

4.47

Long-term debt (f)

10,442

306

5.90

11,934

391

6.58

Total interest-bearing liabilities

135,787

1,592

2.36

135,311

1,940

2.89

Noninterest-bearing deposits

27,251

27,655

Accrued expense and other liabilities

4,073

4,528

Discontinued liabilities (f)

198

246

Total liabilities

$ 167,309

$ 167,740

Equity

Total equity

$ 20,169

$ 18,952

Total liabilities and equity

$ 187,478

$ 186,692

Interest rate spread (TE)

2.37 %

1.99 %

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

$ 2,488

2.88 %

$ 2,255

2.62 %

TE adjustment (b)

Net interest income, GAAP basis

$ 2,472

$ 2,237

(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 six months ended June 30, 2026, and June 30, 2025, respectively.

(c)

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

(d)

Commercial and industrial average balances include $207 million and $216 million of assets from commercial credit cards for the six months ended June 30, 2026, and June 30, 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 $41.3 billion and $43.2 billion for the six months ended June 30, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.78% and 4.01% for the six months ended June 30, 2026, and June 30, 2025, respectively.

(f)

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

Noninterest Expense

(Dollars in millions)

Three months ended

Six months ended

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Personnel (a)

$ 786

$ 743

$ 705

$ 1,529

$ 1,385

Net occupancy

136

Computer processing

108

111

107

219

214

Business services and professional fees

Equipment

Operating lease expense

Marketing

Other expense

158

179

170

337

355

Total noninterest expense

$ 1,217

$ 1,181

$ 1,154

$ 2,398

$ 2,285

Average full-time equivalent employees (b)

17,517

17,469

17,105

17,493

17,047

(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

Six months ended

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Salaries and contract labor

$ 448

$ 439

$ 427

$ 887

$ 832

Incentive and stock-based compensation

194

172

168

366

326

Employee benefits

140

127

108

267

217

Severance

Total personnel expense

$ 786

$ 743

$ 705

$ 1,529

$ 1,385

Loan Composition

(Dollars in millions)

Change 6/30/2026 vs.

6/30/2026

3/31/2026

6/30/2025

3/31/2026

6/30/2025

Commercial and industrial (a)

$ 62,734

$ 60,651

$ 56,058

3.4 %

11.9 %

Commercial real estate:

Commercial mortgage

13,941

14,144

13,862

(1.4)

0.6

Construction

2,896

2,801

2,830

3.4

2.3

Total commercial real estate loans

16,837

16,945

16,692

(0.6)

0.9

Commercial lease financing

1,997

2,200

2,472

(9.2)

(19.2)

Total commercial loans

81,568

79,796

75,222

2.2

8.4

Real estate — residential mortgage

18,178

18,483

19,330

(1.7)

(6.0)

Home equity loans

5,408

5,528

6,023

(2.2)

(10.2)

Other consumer loans

4,349

4,477

4,881

(2.9)

(10.9)

Credit cards

927

906

933

2.3

(0.6)

Total consumer loans

28,862

29,394

31,167

(1.8)

(7.4)

Total loans (b), (c)

$ 110,430

$ 109,190

$ 106,389

1.1 %

3.8 %

(a)

Loan balances include $208 million, $207 million, and $220 million of commercial credit card balances at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

(b)

Total loans exclude loans of $182 million at June 30, 2026, $194 million at March 31, 2026, and $230 million at June 30, 2025, related to the discontinued operations of the education lending business.

(c)

Accrued interest of $453 million, $443 million, and $465 million at June 30, 2026, March 31, 2026, and June 30, 2025, 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 6/30/2026 vs.

6/30/2026

3/31/2026

6/30/2025

3/31/2026

6/30/2025

Commercial and industrial

$ 559

$ 139

$ 158

302.2 %

253.8 %

Real estate — commercial mortgage

435

637

290

(31.7)

50.0

Real estate — residential mortgage

204

100

104.0

148.8

Total loans held for sale

$ 1,198

$ 876

$ 530

36.8 %

126.0 %

Summary of Changes in Loans Held for Sale

(Dollars in millions)

2Q26

1Q26

4Q25

3Q25

2Q25

Balance at beginning of period

$ 876

$ 1,077

$ 998

$ 530

$ 811

New originations

2,099

2,034

3,356

3,471

1,806

Transfers from (to) held to maturity, net

(13)

(35)

—

(71)

Loan sales

(1,721)

(2,201)

(3,232)

(2,956)

(2,012)

Loan draws (payments), net

(89)

(25)

(10)

(42)

(1)

Valuation and other adjustments

(1)

—

(5)

(3)

Balance at end of period

$ 1,198

$ 876

$ 1,077

$ 998

$ 530

Summary of Loan and Lease Loss Experience From Continuing Operations

(Dollars in millions)

Three months ended

Six months ended

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Average loans outstanding

$ 110,072

$ 107,737

$ 105,715

$ 108,911

$ 105,039

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

$ 1,449

$ 1,427

$ 1,429

$ 1,427

$ 1,409

Loans charged off:

Commercial and industrial

174

156

Real estate — commercial mortgage

Real estate — construction

—

Total commercial real estate loans

Commercial lease financing

—

Total commercial loans

105

102

196

200

Real estate — residential mortgage

—

Home equity loans

—

Other consumer loans

Credit cards

Total consumer loans

Total loans charged off

131

117

127

248

253

Recoveries:

Commercial and industrial

Real estate — commercial mortgage

—

Real estate — construction

—

Total commercial real estate loans

—

Commercial lease financing

—

Total commercial loans

Real estate — residential mortgage

Home equity loans

—

Other consumer loans

Credit cards

Total consumer loans

Total recoveries

Net loan charge-offs

(115)

(101)

(102)

(216)

(212)

Provision (credit) for loan and lease losses

111

123

119

234

249

Allowance for loan and lease losses at end of period

$ 1,445

$ 1,449

$ 1,446

$ 1,445

$ 1,446

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

$ 296

$ 313

$ 278

$ 313

$ 290

Provision (credit) for losses on lending-related commitments

(19)

(17)

(36)

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

$ 277

$ 296

$ 297

$ 277

$ 297

Total allowance for credit losses at end of period

$ 1,722

$ 1,745

$ 1,743

$ 1,722

$ 1,743

Net loan charge-offs to average total loans

0.42 %

0.38 %

0.39 %

0.40 %

0.41 %

Allowance for loan and lease losses to period-end loans

1.31

1.33

1.36

1.31

1.36

Allowance for credit losses to period-end loans

1.56

1.60

1.64

1.56

1.64

Allowance for loan and lease losses to nonperforming loans

179

212

208

179

208

Allowance for credit losses to nonperforming loans

213

256

250

213

250

Discontinued operations — education lending business:

Loans charged off

$ —

$ 1

Recoveries

—

Net loan charge-offs

$ —

$ (1)

(a)

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

Asset Quality Statistics From Continuing Operations

(Dollars in millions)

2Q26

1Q26

4Q25

3Q25

2Q25

Net loan charge-offs

$ 115

$ 101

$ 104

$ 114

$ 102

Net loan charge-offs to average total loans

0.42 %

0.38 %

0.39 %

0.42 %

0.39 %

Allowance for loan and lease losses

$ 1,445

$ 1,449

$ 1,427

$ 1,444

$ 1,446

Allowance for credit losses (a)

1,722

1,745

1,740

1,736

1,743

Allowance for loan and lease losses to period-end loans

1.31 %

1.33 %

1.34 %

1.36 %

Allowance for credit losses to period-end loans

1.56

1.60

1.63

1.64

Allowance for loan and lease losses to nonperforming loans

179

212

232

219

208

Allowance for credit losses to nonperforming loans

213

256

283

264

250

Nonperforming loans at period end

$ 809

$ 682

$ 615

$ 658

$ 696

Nonperforming assets at period end

818

692

627

668

707

Nonperforming loans to period-end portfolio loans

0.73 %

0.62 %

0.58 %

0.62 %

0.65 %

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

0.74

0.63

0.59

0.63

0.66

(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)

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

Commercial and industrial

$ 358

$ 284

$ 256

$ 253

$ 280

Real estate — commercial mortgage

256

190

157

214

226

Real estate — construction

—

Total commercial real estate loans

256

190

157

214

226

Commercial lease financing

—

Total commercial loans

620

480

420

467

506

Real estate — residential mortgage

100

115

104

Home equity loans

Other consumer loans

Credit cards

Total consumer loans

189

202

195

191

190

Total nonperforming loans (a)

809

682

615

658

696

OREO

Nonperforming loans held for sale

—

Total nonperforming assets

$ 818

$ 692

$ 627

$ 668

$ 707

Accruing loans past due 90 days or more

$ 85

$ 153

$ 99

$ 110

$ 74

Accruing loans past due 30 through 89 days

138

137

220

254

266

Nonperforming assets from discontinued operations — education lending business

Nonperforming loans to period-end portfolio loans

0.73 %

0.62 %

0.58 %

0.62 %

0.65 %

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

0.74

0.63

0.59

0.63

0.66

Summary of Changes in Nonperforming Loans From Continuing Operations

(Dollars in millions)

2Q26

1Q26

4Q25

3Q25

2Q25

Balance at beginning of period

$ 682

$ 615

$ 658

$ 696

$ 686

Loans placed on nonaccrual status

365

253

248

210

233

Charge-offs

(131)

(117)

(124)

(140)

(127)

Loans sold

(33)

(2)

(7)

(13)

—

Payments

(38)

(37)

(124)

(68)

(74)

Transfers to OREO

(1)

Loans returned to accrual status

(35)

(29)

(35)

(26)

(21)

Balance at end of period

$ 809

$ 682

$ 615

$ 658

$ 696

Line of Business Results

(Dollars in millions)

Change 2Q26 vs.

2Q26

1Q26

4Q25

3Q25

2Q25

1Q26

2Q25

Consumer Bank

Summary of operations

Total revenue (TE)

$ 1,010

$ 977

$ 998

$ 992

$ 966

3.4 %

4.6 %

Provision for credit losses

(35.0)

(52.7)

Noninterest expense

716

708

734

693

1.1

3.3

Net income (loss) attributable to Key

203

174

176

196

165

16.7

23.0

Average loans and leases

33,263

33,997

34,683

35,363

36,138

(2.2)

(8.0)

Average deposits

87,399

87,796

87,738

87,692

88,002

(0.5)

(0.7)

Net loan charge-offs

12.5

Net loan charge-offs to average total loans

0.54 %

0.48 %

0.56 %

0.55 %

0.44 %

12.5

22.7

Nonperforming assets at period end

$ 253

$ 270

$ 262

$ 266

$ 269

(6.3)

(5.9)

Return on average allocated equity

29.52 %

24.90 %

24.24 %

26.03 %

21.91 %

18.6

34.7

Commercial Bank

Summary of operations

Total revenue (TE)

$ 1,108

$ 1,119

$ 1,194

$ 1114

$ 1074

(1.0) %

3.2 %

Provision for credit losses

(4.3)

(20.2)

Noninterest expense

503

474

515

485

451

6.1

11.5

Net income (loss) attributable to Key

423

452

472

440

423

(6.4)

—

Average loans and leases

76,238

73,146

71,107

70,328

69,089

4.2

10.3

Average loans held for sale

936

958

1,140

1,224

707

(2.3)

32.4

Average deposits

58,895

58,929

60,485

58,523

55,927

(0.1)

5.3

Net loan charge-offs

10.9

14.5

Net loan charge-offs to average total loans

0.37 %

0.35 %

0.30 %

0.36 %

5.7

2.8

Nonperforming assets at period end

$ 565

$ 422

$ 365

$ 402

$ 438

33.9

29.0

Return on average allocated equity

16.40 %

18.14 %

18.80 %

17.87 %

17.55 %

(9.6)

(6.6)

TE = Taxable Equivalent

Selected Items Impact on Earnings

(Dollars in millions, except per share amounts)

Pretax (a)

After-tax at marginal rate (a)

Quarter to date results

Amount

Net Income

EPS (b), (d)

Three months ended June 30, 2026

No items

$ —

Three months ended March 31, 2026

No items

—

Three Months Ended December 31, 2025

FDIC special assessment (other expense) (c)

0.01

Three months ended September 30, 2025

FDIC special assessment (other expense) (c)

—

Three months ended June 30, 2025

No items

—

Year to date results

Six months ended June 30, 2026

No items

$ —

Six months ended June 30, 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.

SOURCE KeyCorp