Item 1. Financial Statements

Consolidated Balance Sheets

Dollars in millions, except per share data			March 31, 2025			December 31, 2024
			(Unaudited)
ASSETS
Cash and due from banks			$	1,909		$	1,743
Short-term investments			15,349			17,504
Trading account assets			1,296			1,283
Securities available for sale			40,751			37,707
Held-to-maturity securities (fair value: $6,730 and $6,837)			7,160			7,395
Other investments			1,050			1,041
Loans, net of unearned income of $298 and $311			104,809			104,260
Less: Allowance for loan and lease losses			(1,429)			(1,409)
Net loans			103,380			102,851
Loans held for sale (a)			811			797
Premises and equipment			602			614
Goodwill			2,752			2,752
Other intangible assets			22			27
Corporate-owned life insurance			4,404			4,394
Accrued income and other assets			8,958			8,797
Discontinued assets			247			263
Total assets			$	188,691		$	187,168
LIABILITIES
Deposits in domestic offices:
Interest-bearing deposits			$	122,283		$	120,132
Noninterest-bearing deposits			28,454			29,628
Total deposits			150,737			149,760
Federal funds purchased and securities sold under repurchase agreements			22			14
Bank notes and other short-term borrowings			2,328			2,130
Accrued expense and other liabilities			4,209			4,983
Long-term debt			12,392			12,105
Total liabilities			169,688			168,992
EQUITY
Preferred stock			2,500			2,500
Common Shares, $1 par value; authorized 2,100,000,000 shares; issued 1,256,702,081 shares			1,257			1,257
Capital surplus			5,946			6,038
Retained earnings			14,724			14,584
Treasury stock, at cost (144,716,525 and 149,915,630 shares)			(2,637)			(2,733)
Accumulated other comprehensive income (loss)			(2,787)			(3,470)
Total equity			19,003			18,176
Total liabilities and equity			$	188,691		$	187,168

(a)Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $86 million at March 31, 2025, and $93 million at December 31, 2024.

See Notes to Consolidated Financial Statements (Unaudited).

Consolidated Statements of Income

Dollars in millions, except per share amounts			Three months ended March 31,
(Unaudited)			2025			2024
INTEREST INCOME
Loans			$	1,401		$	1,538
Loans held for sale			14			14
Securities available for sale			392			232
Held-to-maturity securities			63			75
Trading account assets			17			14
Short-term investments			174			142
Other investments			9			17
Total interest income			2,070			2,032
INTEREST EXPENSE
Deposits			753			782
Federal funds purchased and securities sold under repurchase agreements			1			1
Bank notes and other short-term borrowings			27			46
Long-term debt			193			328
Total interest expense			974			1,157
NET INTEREST INCOME			1,096			875
Provision for credit losses			118			101
Net interest income after provision for credit losses			978			774
NONINTEREST INCOME
Trust and investment services income			139			136
Investment banking and debt placement fees			175			170
Cards and payments income			82			77
Service charges on deposit accounts			69			63
Corporate services income			65			69
Commercial mortgage servicing fees			76			56
Corporate-owned life insurance income			33			32
Consumer mortgage income			13			14
Operating lease income and other leasing gains			9			24
Other income			7			9
Net securities gains (losses)			—			(3)
Total noninterest income			668			647
NONINTEREST EXPENSE
Personnel			680			674
Net occupancy			67			67
Computer processing			107			102
Business services and professional fees			40			41
Equipment			20			20
Operating lease expense			11			17
Marketing			21			19
Other expense			185			203
Total noninterest expense			1,131			1,143
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			515			278
Income taxes			109			59
INCOME (LOSS) FROM CONTINUING OPERATIONS			406			219
Income (loss) from discontinued operations			(1)			—
NET INCOME (LOSS)			$	405		$	219
Income (loss) from continuing operations attributable to Key common shareholders			$	370		$	183
Net income (loss) attributable to Key common shareholders			369			183
Per Common Share:
Income (loss) from continuing operations attributable to Key common shareholders			$	.34		$	.20
Income (loss) from discontinued operations, net of taxes			—			—
Net income (loss) attributable to Key common shareholders (a)			.34			.20
Per Common Share — assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders			$	.33		$	.20
Income (loss) from discontinued operations, net of taxes			—			—
Net income (loss) attributable to Key common shareholders (a)			.33			.20
Weighted-average Common Shares outstanding (000)			1,096,654			929,692
Effect of Common Share options and other stock awards			9,486			7,319
Weighted-average Common Shares and potential Common Shares outstanding (000) (b)			1,106,140			937,011

(a)EPS may not foot due to rounding.

(b)Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable.

See Notes to Consolidated Financial Statements (Unaudited).

Consolidated Statements of Comprehensive Income

Dollars in millions			Three months ended March 31,
(Unaudited)			2025			2024
Net income (loss)			$	405		$	219
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale, net of income taxes of $(136) and $47			424			(151)
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $(62) and $(20)			193			65
Net pension and postretirement benefit costs, net of income taxes of $(21) and $0			66			1
Total other comprehensive income (loss), net of tax			683			(85)
Comprehensive income (loss) attributable to Key			$	1,088		$	134

See Notes to Consolidated Financial Statements (Unaudited).

Consolidated Statements of Changes in Equity

			Key Shareholders’ Equity
Dollars in millions, except per share amounts (Unaudited)			Preferred Shares Outstanding (000)			Common Shares Outstanding (000)			Preferred Stock			Common Shares			Capital Surplus			Retained Earnings			Treasury Stock, at Cost			Accumulated Other Comprehensive Income (Loss)						Total Shareholders’ Equity
BALANCE AT DECEMBER 31, 2024			1,996			1,106,786			$	2,500		$	1,257		$	6,038		$	14,584		$	(2,733)		$	(3,470)					$	18,176
Net income (loss)																		405												405
Other comprehensive income (loss)																								683						683
Deferred compensation															(1)															(1)
Cash dividends declared
Common Shares ($.205 per share)																		(229)												(229)
Series D Preferred Stock ($12.50 per depositary share)																		(7)												(7)
Series E Preferred Stock ($.382813 per depositary share)																		(8)												(8)
Series F Preferred Stock ($.353125 per depositary share)																		(6)												(6)
Series G Preferred Stock ($.351563 per depositary share)																		(6)												(6)
Series H Preferred Stock ($.387500 per depositary share)																		(9)												(9)
Employee equity compensation program Common Share repurchases						(1,958)									—						(35)									(35)
Common Shares reissued (returned) for stock options and other employee benefit plans						7,158									(91)						131									40
BALANCE AT MARCH 31, 2025			1,996			1,111,986			$	2,500		$	1,257		$	5,946		$	14,724		$	(2,637)		$	(2,787)					$	19,003
BALANCE AT DECEMBER 31, 2023			1,996			936,564			$	2,500		$	1,257		$	6,281		$	15,672		$	(5,844)		$	(5,229)					$	14,637
Net income (loss)																		219												219
Other comprehensive income (loss)																								(85)						(85)
Deferred compensation															(4)															(4)
Cash dividends declared
Common Shares ($.205 per share)																		(193)												(193)
Series D Preferred Stock ($12.50 per depositary share)																		(7)												(7)
Series E Preferred Stock ($.382813 per depositary share)																		(8)												(8)
Series F Preferred Stock ($.353125 per depositary share)																		(6)												(6)
Series G Preferred Stock ($.351563 per depositary share)																		(6)												(6)
Series H Preferred Stock ($.387500 per depositary share)																		(9)												(9)
Employee equity compensation program Common Share repurchases						(1,859)									—						(26)									(26)
Common Shares reissued (returned) for stock options and other employee benefit plans						8,071									(113)						148									35
BALANCE AT MARCH 31, 2024			1,996			942,776			$	2,500		$	1,257		$	6,164		$	15,662		$	(5,722)		$	(5,314)					$	14,547

See Notes to Consolidated Financial Statements (Unaudited).

Consolidated Statements of Cash Flows

Dollars in millions			Three months ended March 31,
(Unaudited)			2025			2024
OPERATING ACTIVITIES
Net income (loss)			$	405		$	219
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses			118			101
Depreciation, amortization, and accretion, net			3			24
Increase in cash surrender value of corporate-owned life insurance			(29)			(28)
Stock-based compensation expense			30			26
Deferred income taxes (benefit)			30			3
Proceeds from sales of loans held for sale			1,725			1,920
Originations of loans held for sale, net of repayments			(1,702)			(1,742)
Net losses (gains) on sales of loans held for sale			(30)			(28)
Net losses (gains) on leased equipment			4			(6)
Net securities and other investments losses (gains)			—			3
Net change in:
Trading account assets			(13)			(29)
Accrued income and other assets			(189)			287
Accrued expense and other liabilities			(792)			(404)
Other operating activities, net			300			13
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			(140)			359
INVESTING ACTIVITIES
Net decrease (increase) in short-term investments, excluding acquisitions			2,155			(2,388)
Purchases of securities available for sale			(3,970)			(1,465)
Proceeds from sales of securities available for sale			—			637
Proceeds from prepayments and maturities of securities available for sale			1,509			515
Proceeds from prepayments and maturities of held-to-maturity securities			236			306
Net decrease (increase) in other investments			(7)			(4)
Net decrease (increase) in loans, excluding acquisitions, sales and transfers			(679)			2,613
Proceeds from sales of portfolio loans			36			151
Proceeds from corporate-owned life insurance			19			20
Purchases of premises, equipment, and software			(10)			(12)
Proceeds from sales of premises and equipment			—			1
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES			(711)			374
FINANCING ACTIVITIES
Net increase (decrease) in deposits			977			(1,356)
Net increase (decrease) in short-term borrowings			206			(168)
Net proceeds from issuance of long-term debt			833			1,350
Payments on long-term debt			(701)			(1)
Employee equity compensation program Common Share repurchases			(35)			(26)
Net proceeds from reissuance of Common Shares			2			3
Cash dividends paid			(265)			(229)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			1,017			(427)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS			166			306
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD			1,743			941
CASH AND DUE FROM BANKS AT END OF PERIOD			$	1,909		$	1,247
Additional disclosures relative to cash flows:
Interest paid			$	938		$	990
Income taxes paid (refunded)			(1)			20
Noncash items:
Reduction of secured borrowing and related collateral			$	1		$	1
Loans transferred to portfolio from held for sale			—			105
Loans transferred to held for sale from portfolio			6			—
Loans transferred to OREO			2			2

See Notes to Consolidated Financial Statements (Unaudited).

Notes to Consolidated Financial Statements (Unaudited)

1. Basis of Presentation and Accounting Policies

The consolidated financial statements include the accounts of KeyCorp and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Some previously reported amounts have been reclassified in the statements of income from “other income” to “net securities gains (losses).”

The consolidated financial statements include any voting rights entities in which we have a controlling financial interest. In accordance with the applicable accounting guidance for consolidations, we consolidate a VIE if we have: (i) a variable interest in the entity; (ii) the power to direct activities of the VIE that most significantly affect the entity’s economic performance; and (iii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE (i.e., we are considered to be the primary beneficiary). Variable interests can include equity interests, subordinated debt, derivative contracts, leases, service agreements, guarantees, standby letters of credit, loan commitments, and other contracts, agreements, and financial instruments. See Note 11 (“Variable Interest Entities”) for information on our involvement with VIEs.

We use the equity method to account for unconsolidated investments in voting rights entities or VIEs if we have significant influence over the entity’s operating and financing decisions (usually defined as a voting or economic interest of 20% to 50%, but not controlling). Unconsolidated investments in voting rights entities or VIEs in which we have a voting or economic interest of less than 20% or for which we do not have significant influence are carried at the cost measurement alternative or at fair value. Investments held by our registered broker-dealer and investment company subsidiaries (principal investing entities and Real Estate Capital line of business) are carried at fair value.

The unaudited consolidated interim financial statements reflect all adjustments of a normal recurring nature and disclosures that are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. The interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our 2024 Form 10-K.

In preparing these financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all shareholders and other financial statement users or filed with the SEC.

Accounting Guidance Adopted in 2025

Standard			Date of Adoption			Description			Effect on Financial Statements or Other Significant Matters
ASU 2023-09 Income Taxes (Topic 740)			Annual periods beginning January 1, 2025 Early adoption is permitted.			This guidance requires certain annual tax disclosures related to rate reconciliation and income taxes paid. The guidance should be applied on a prospective or retrospective basis.			The guidance is not expected to have a material impact and will be incorporated into Key’s annual tax disclosures within the Form 10-K.

2. Earnings Per Common Share

Basic earnings per share is the amount of earnings (losses), adjusted for dividends declared on our preferred stock, available to each Common Share outstanding during the reporting periods. Diluted earnings per share is the amount of earnings (losses) available to each Common Share outstanding during the reporting periods adjusted to include the effects of potentially dilutive Common Shares. Potentially dilutive Common Shares include stock options and other stock-based awards. Potentially dilutive Common Shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive.

Our basic and diluted earnings per Common Share are calculated as follows:

			Three months ended March 31,
Dollars in millions, except per share amounts			2025			2024
EARNINGS
Income (loss) from continuing operations			$	406		$	219
Less: Dividends on Preferred Stock			36			36
Income (loss) from continuing operations attributable to Key common shareholders			370			183
Income (loss) from discontinued operations, net of taxes			(1)			—
Net income (loss) attributable to Key common shareholders			$	369		$	183
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average Common Shares outstanding (000)			1,096,654			929,692
Effect of Common Share options and other stock awards			9,486			7,319
Weighted-average Common Shares and potential Common Shares outstanding (000)(a)			1,106,140			937,011
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders			$	.34		$	.20
Income (loss) from discontinued operations, net of taxes			—			—
Net income (loss) attributable to Key common shareholders (b)			.34			.20
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution			$	.33		$	.20
Income (loss) from discontinued operations, net of taxes — assuming dilution			—			—
Net income (loss) attributable to Key common shareholders—assuming dilution(b)			.33			.20

(a)Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable.

(b)EPS may not foot due to rounding.

3. Loan Portfolio

Loan Portfolio by Portfolio Segment and Class of Financing Receivable (a)

Dollars in millions			March 31, 2025			December 31, 2024
Commercial and industrial (b)(c)			$	54,378		$	52,909
Commercial real estate:
Commercial mortgage			13,239			13,310
Construction			2,929			2,936
Total commercial real estate loans			16,168			16,246
Commercial lease financing (c)			2,576			2,736
Total commercial loans			73,122			71,891
Residential — prime loans:
Real estate — residential mortgage			19,622			19,886
Home equity loans			6,154			6,358
Total residential — prime loans			25,776			26,244
Other consumer loans			5,000			5,167
Credit cards			911			958
Total consumer loans			31,687			32,369
Total loans (d)			$	104,809		$	104,260

(a)Accrued interest of $448 million and $456 million at March 31, 2025, and December 31, 2024, respectively, presented in "Accrued income and other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

(b)Loan balances include $218 million and $212 million of commercial credit card balances at March 31, 2025, and December 31, 2024, respectively.

(c)Commercial and industrial includes receivables held as collateral for a secured borrowing of $192 million and $211 million at March 31, 2025, and December 31, 2024, respectively. Commercial lease financing includes receivables of $2 million and $3 million held as collateral for a secured borrowing at March 31, 2025, and December 31, 2024, respectively. Principal reductions are based on the cash payments received from these related receivables. Additional information pertaining to these secured borrowings is included in Note 20 (“Long-Term Debt”) beginning on page 170 of our 2024 Form 10-K.

(d)Total loans exclude loans of $243 million at March 31, 2025, and $257 million at December 31, 2024, related to the discontinued operations of the education lending business. These amounts are included within “Discontinued assets” on the Consolidated Balance Sheet.

4. Asset Quality

ALLL

We estimate the appropriate level of the ALLL on at least a quarterly basis. The methodology is described in Note 1 ("Summary of Significant Accounting Policies") under the heading "Allowance for Loan and Lease Losses" beginning on page 112 of our 2024 Form 10-K.

The ALLL at March 31, 2025, represents our current estimate of lifetime credit losses inherent in the loan portfolio at that date. The changes in the ALLL by loan category for the periods indicated are as follows:

Three months ended March 31, 2025:

Dollars in millions			December 31, 2024			Provision						Charge-offs			Recoveries			March 31, 2025
Commercial and Industrial			$	639		$	82					$	(62)		$	10		$	669
Commercial real estate:
Real estate — commercial mortgage			320			13						(36)			—			297
Real estate — construction			51			6						—			—			57
Total commercial real estate loans			371			19						(36)			—			354
Commercial lease financing			27			7						—			—			34
Total commercial loans			1,037			108						(98)			10			1,057
Real estate — residential mortgage			90			(19)						(1)			1			71
Home equity loans			70			5						(1)			1			75
Other consumer loans			136			19						(14)			2			143
Credit cards			76			17						(12)			2			83
Total consumer loans			372			22						(28)			6			372
Total ALLL — continuing operations			1,409			130			(a)			(126)			16			1,429
Discontinued operations			13			1						(1)			—			13
Total ALLL — including discontinued operations			$	1,422		$	131					$	(127)		$	16		$	1,442

(a)Excludes a credit related to reserves on lending-related commitments of $12 million.

Three months ended March 31, 2024:

Dollars in millions			December 31, 2023			Provision						Charge-offs			Recoveries			March 31, 2024
Commercial and Industrial			$	556		$	151					$	(62)		$	8		$	653
Commercial real estate:
Real estate — commercial mortgage			419			(25)						(5)			—			389
Real estate — construction			52			9						—			—			61
Total commercial real estate loans			471			(16)						(5)			—			450
Commercial lease financing			33			(7)						—			2			28
Total commercial loans			1,060			128						(67)			10			1,131
Real estate — residential mortgage			162			(42)						(1)			2			121
Home equity loans			86			(7)						(1)			1			79
Other consumer loans			122			25						(16)			2			133
Credit cards			78			11						(12)			1			78
Total consumer loans			448			(13)						(30)			6			411
Total ALLL — continuing operations			1,508			115			(a)			(97)			16			1,542
Discontinued operations			16			—						(1)			—			15
Total ALLL — including discontinued operations			$	1,524		$	115					$	(98)		$	16		$	1,557

(a)Excludes a credit related to reserves on lending-related commitments of $14 million.

As described in Note 1 ("Summary of Significant Accounting Policies"), under the heading “Allowance for Loan and Lease Losses” beginning on page 112 of our 2024 Form 10-K, we estimate the ALLL using relevant available information, from internal and external sources, relating to past events, current economic and portfolio conditions, and reasonable and supportable forecasts. In our estimation of expected credit losses, we use a two year reasonable and supportable period across all products. Following this two year period in which supportable forecasts can be generated, for all modeled loan portfolios, we revert expected credit losses to a level that is consistent with our historical information by reverting the macroeconomic variables (model inputs) to their long run average. We revert to historical loss rates for less complex estimation methods for smaller portfolios. A 20-year fixed length look back period is used to calculate the long run average of the macroeconomic variables. A four quarter reversion period is used where the macroeconomic variables linearly revert to their long run average following the two year reasonable and supportable period.

We develop our reasonable and supportable forecasts using relevant data including, but not limited to, changes in economic output, unemployment rates, property values, and other factors associated with the credit losses on financial assets. Some macroeconomic variables apply to all portfolio segments, while others are more portfolio specific. The following table discloses key macroeconomic variables for each loan portfolio.

Segment			Portfolio			Key Macroeconomic Variables (a)
Commercial			Commercial and industrial			BBB corporate bond rate (spread), fixed investment, business bankruptcies, GDP, industrial production, unemployment rate, and Producer Price Index
Commercial real estate			Property & real estate price indices, unemployment rate, business bankruptcies, GDP, and SOFR
Commercial lease financing			BBB corporate bond rate (spread), GDP, and unemployment rate
Consumer			Real estate — residential mortgage			GDP, home price index, unemployment rate, 30 year mortgage rate and U.S. household income
Home equity			Home price index, unemployment rate, and 30 year mortgage rate
Other consumer			Unemployment rate, prime rate and U.S. household income
Credit cards			Unemployment rate and U.S. household income
Discontinued operations			Unemployment rate

(a)Variables include all transformations and interactions with other risk drivers. Additionally, variables may have varying impacts at different points in the economic cycle.

In addition to macroeconomic drivers, portfolio attributes such as remaining term, outstanding balance, risk ratings, utilization, FICO, LTV, and delinquency also drive ALLL changes. Our ALLL models were designed to capture the correlation between economic and portfolio changes. As such, evaluating shifts in individual portfolio attributes and macroeconomic variables in isolation may not be indicative of past or future performance.

Economic Outlook

As of March 31, 2025, there is continued economic resiliency, but also unprecedented geopolitical uncertainty as a result of the recent changes to trade and other policies, which could add stress to the existing economic pressures.

We utilized the Moody’s February 2025 Consensus forecast as the baseline forecast to estimate our expected credit losses as of March 31, 2025. This baseline scenario reflects slowing growth over the next two years. U.S. GDP is expected to grow at an annual rate of approximately 2% for 2025 and 2026. The expected National Unemployment Rate is forecasted to remain close to 4% over the next two years. The U.S. Consumer Price Index is forecasted at 2.6% for 2025.

Current market conditions may not be fully captured in the baseline forecast as of the quarter-end. The geopolitical environment remains both uncertain and complex as a result of policy changes that could substantially impact global economies, including product and country specific tariffs, funding freezes and cuts to different government programs, federal layoffs, increased deportations and changes to immigration policy. These actions pose potential downside-risks to the economic outlook, although to what extent remains highly uncertain. These economic uncertainties were addressed through a qualitative reserve increase, which leveraged downside economic assumptions.

As a result of the current economic uncertainty, our future loss estimates may vary considerably from our March 31, 2025 assumptions.

Commercial Loan Portfolio

The ALLL from continuing operations for the commercial segment increased by $20 million, or 1.9%, from December 31, 2024. The change in the reserve levels is reflective of a reserve build due to economic uncertainty as a result of the ongoing U.S. policy changes, which impact all portfolio segments. These reserve increases are partly offset by ongoing favorable portfolio credit migration, largely concentrated in the commercial real estate portfolio.

Consumer Loan Portfolio

The ALLL from continuing operations for the consumer segment was unchanged from December 31, 2024. The overall stable levels in the consumer allowance are driven by reserve increases due to economic uncertainty, which are offset by reserve decreases due to continued loan runoff.

Credit Risk Profile

The prevalent risk characteristic for both commercial and consumer loans is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Evaluation of this risk is stratified and monitored by the loan risk rating grades assigned for the commercial loan portfolios and the refreshed FICO score assigned for the consumer loan portfolios. The internal risk grades assigned to loans follow our definitions of Pass and Criticized, which are consistent with published definitions of regulatory risk classifications. Loans with a pass rating represent those loans not classified on our rating scale for credits, as minimal credit risk has been identified. Criticized loans are those loans that either have a potential weakness deserving management's close attention or have a well-defined weakness that may put full collection of contractual cash flows at risk. Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the tables below at the dates indicated.

Most extensions of credit are subject to loan grading or scoring. Loan grades are assigned at the time of origination, verified by credit risk management, and periodically re-evaluated thereafter. This risk rating methodology blends our judgment with quantitative modeling. Commercial loans generally are assigned two internal risk ratings. The first rating reflects the probability that the borrower will default on an obligation; the second rating reflects expected recovery rates on the credit facility. Default probability is determined based on, among other factors, the financial strength of the borrower, an assessment of the borrower’s management, the borrower’s competitive position within its industry sector, and our view of industry risk in the context of the general economic outlook. Types of exposure, transaction structure, and collateral, including credit risk mitigants, affect the expected recovery assessment.

Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category and Vintage (a)(b)

As of March 31, 2025			Term Loans																		Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term Loans Amortized Cost Basis
			Amortized Cost Basis by Origination Year and Internal Risk Rating
Dollars in millions			2025			2024			2023			2022			2021			Prior			Total
Commercial and Industrial
Risk Rating:
Pass			$	1,866		$	6,429		$	2,770		$	6,599		$	3,685		$	5,108		$	23,732		$	181		$	50,370
Criticized (Accruing)			15			178			287			683			285			570			1,667			35			3,720
Criticized (Nonaccruing)			—			24			7			53			30			10			162			2			288
Total commercial and industrial			1,881			6,631			3,064			7,335			4,000			5,688			25,561			218			54,378
Current year gross write-offs			—			—			2			5			3			10			42			—			62
Real estate — commercial mortgage
Risk Rating:
Pass			602			1,118			675			2,631			1,965			3,588			1,050			38			11,667
Criticized (Accruing)			15			7			98			555			272			379			29			11			1,366
Criticized (Nonaccruing)			—			—			—			135			32			39			—			—			206
Total real estate — commercial mortgage			617			1,125			773			3,321			2,269			4,006			1,079			49			13,239
Current year gross write-offs			—			—			—			6			21			9			—			—			36
Real estate — construction
Risk Rating:
Pass			43			255			880			895			309			148			45			2			2,577
Criticized (Accruing)			—			—			18			125			56			153			—			—			352
Criticized (Nonaccruing)			—			—			—			—			—			—			—			—			—
Total real estate — construction			43			255			898			1,020			365			301			45			2			2,929
Current year gross write-offs			—			—			—			—			—			—			—			—			—
Commercial lease financing
Risk Rating:
Pass			28			286			410			590			341			809			—			—			2,464
Criticized (Accruing)			—			3			32			27			6			44			—			—			112
Criticized (Nonaccruing)			—			—			—			—			—			—			—			—			—
Total commercial lease financing			28			289			442			617			347			853						—			2,576
Current year gross write-offs			—			—			—			—			—			—			—			—			—
Total commercial loans			$	2,569		$	8,300		$	5,177		$	12,293		$	6,981		$	10,848		$	26,685		$	269		$	73,122
Total commercial loan current year gross write-offs			$	—		$	—		$	2		$	11		$	24		$	19		$	42		$	—		$	98

As of December 31, 2024			Term Loans																		Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term Loans Amortized Cost Basis
			Amortized Cost Basis by Origination Year and Internal Risk Rating
Dollars in millions			2024			2023			2022			2021			2020			Prior			Total
Commercial and Industrial
Risk Rating:
Pass			$	6,345		$	3,097		$	7,119		$	3,934		$	1,617		$	3,969		$	22,709		$	115		$	48,905
Criticized (Accruing)			172			219			597			419			208			476			1,550			41			3,682
Criticized (Nonaccruing)			23			13			68			30			2			31			153			2			322
Total commercial and industrial			6,540			3,329			7,784			4,383			1,827			4,476			24,412			158			52,909
Current year gross write-offs			1			12			65			106			4			31			144			—			363
Real estate — commercial mortgage
Risk Rating:
Pass			1,052			748			2,818			2,202			594			3,194			1,001			41			11,650
Criticized (Accruing)			31			85			571			281			93			316			30			9			1,416
Criticized (Nonaccruing)			—			—			123			52			3			66			—			—			244
Total real estate — commercial mortgage			1,083			833			3,512			2,535			690			3,576			1,031			50			13,310
Current year gross write-offs			—			—			1			6			—			32			1			—			40
Real estate — construction
Risk Rating:
Pass			199			846			1,021			340			87			67			42			2			2,604
Criticized (Accruing)			—			17			112			58			68			77			—			—			332
Criticized (Nonaccruing)			—			—			—			—			—			—			—			—			—
Total real estate — construction			199			863			1,133			398			155			144			42			2			2,936
Current year gross write-offs			—			—			—			—			—			—			—			—			—
Commercial lease financing
Risk Rating:
Pass			301			430			626			368			217			679			—			—			2,621
Criticized (Accruing)			2			34			33			9			16			21			—			—			115
Criticized (Nonaccruing)			—			—			—			—			—			—			—			—			—
Total commercial lease financing			303			464			659			377			233			700			—			—			2,736
Current year gross write-offs			$	—		$	—		$	—		$	—		$	—		$	7		$	—		$	—		$	7
Total commercial loans			$	8,125		$	5,489		$	13,088		$	7,693		$	2,905		$	8,896		$	25,485		$	210		$	71,891
Total commercial loan current year gross write-offs			$	1		$	12		$	66		$	112		$	4		$	70		$	145		$	—		$	410

(a)Accrued interest of $313 million and $322 million as of March 31, 2025, and December 31, 2024, respectively, presented in “Accrued income and other assets” on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in these tables.

(b)Gross write-off information is presented on a year-to-date basis for the three months ended March 31, 2025 and the twelve months ended December 31, 2024.

Consumer Credit Exposure

Credit Risk Profile by FICO Score and Vintage (a)(b)

As of March 31, 2025			Term Loans																		Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term Loans Amortized Cost Basis
			Amortized Cost Basis by Origination Year and FICO Score
Dollars in millions			2025			2024			2023			2022			2021			Prior			Total
Real estate — residential mortgage
FICO Score:
750 and above			$	29		$	273		$	655		$	5,630		$	7,107		$	3,696		$	—		$	—		$	17,390
660 to 749			12			67			114			587			646			470			—			—			1,896
Less than 660			—			5			13			79			62			154			—			—			313
No Score			1			3			2			1			—			15			1			—			23
Total real estate — residential mortgage			42			348			784			6,297			7,815			4,335			1			—			19,622
Current period gross write-offs			—			—			—			—			—			1			—			—			1
Home equity loans
FICO Score:
750 and above			8			32			28			134			755			1,293			1,825			230			4,305
660 to 749			3			17			17			47			169			297			745			70			1,365
Less than 660			—			2			6			16			43			118			266			26			477
No Score			—			—			—			—			—			1			6			—			7
Total home equity loans			11			51			51			197			967			1,709			2,842			326			6,154
Current period gross write-offs			—			—			—			—			—			—			1			—			1
Other consumer loans
FICO Score:
750 and above			42			100			134			1,114			1,165			729			82			—			3,366
660 to 749			26			64			96			250			251			214			175			—			1,076
Less than 660			2			11			23			60			59			51			55			—			261
No Score			5			28			12			16			16			18			202			—			297
Total consumer direct loans			75			203			265			1,440			1,491			1,012			514			—			5,000
Current period gross write-offs			—			1			2			3			2			2			4			—			14
Credit cards
FICO Score:
750 and above			—			—			—			—			—			—			439			—			439
660 to 749			—			—			—			—			—			—			362			—			362
Less than 660			—			—			—			—			—			—			109			—			109
No Score			—			—			—			—			—			—			1			—			1
Total credit cards			—			—			—			—			—			—			911			—			911
Current period gross write-offs			—			—			—			—			—			—			12			—			12
Total consumer loans			$	128		$	602		$	1,100		$	7,934		$	10,273		$	7,056		$	4,268		$	326		$	31,687
Total consumer loan current period gross write-offs			$	—		$	1		$	2		$	3		$	2		$	3		$	17		$	—		$	28

As of December 31, 2024			Term Loans																		Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term Loans Amortized Cost Basis
			Amortized Cost Basis by Origination Year and FICO Score
Dollars in millions			2024			2023			2022			2021			2020			Prior			Total
Real estate — residential mortgage
FICO Score:
750 and above			$	281		$	669		$	5,720		$	7,203		$	2,247		$	1,510		$	—		$	—		$	17,630
660 to 749			67			116			597			655			199			280			—			—			1,914
Less than 660			4			13			81			63			24			134			—			—			319
No Score			3			2			1			—			1			15			1			—			23
Total real estate — residential mortgage			355			800			6,399			7,921			2,471			1,939			1			—			19,886
Current period gross write-offs			1			—			1			—			—			1			—			—			3
Home equity loans
FICO Score:
750 and above			33			31			139			775			612			731			1,886			251			4,458
660 to 749			17			17			50			181			129			186			772			80			1,432
Less than 660			2			5			15			40			31			82			263			25			463
No Score			—			—			—			—			—			1			4			—			5
Total home equity loans			52			53			204			996			772			1,000			2,925			356			6,358
Current period gross write-offs			—			—			—			—			—			1			1			—			2
Other consumer loans
FICO Score:
750 and above			107			143			1,149			1,210			527			245			88			—			3,469
660 to 749			70			109			275			268			128			108			184			—			1,142
Less than 660			9			23			59			59			29			24			56			—			259
No Score			35			12			18			17			7			12			196			—			297
Total consumer direct loans			221			287			1,501			1,554			691			389			524			—			5,167
Current period gross write-offs			—			7			17			12			7			6			15			—			64
Credit cards
FICO Score:
750 and above			—			—			—			—			—			—			476			—			476
660 to 749			—			—			—			—			—			—			372			—			372
Less than 660			—			—			—			—			—			—			109			—			109
No Score			—			—			—			—			—			—			1			—			1
Total credit cards			—			—			—			—			—			—			958			—			958
Current period gross write-offs			—			—			—			—			—			—			47			—			47
Total consumer loans			$	628		$	1,140		$	8,104		$	10,471		$	3,934		$	3,328		$	4,408		$	356		$	32,369
Total consumer current period gross write-offs			$	1		$	7		$	18		$	12		$	7		$	8		$	63		$	—		$	116

(a)Accrued interest of $135 million and $134 million as of March 31, 2025, and December 31, 2024, respectively, presented in “Accrued income and other assets” on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table.

(b)Gross write-off information is presented on a year-to-date basis for the three months ended March 31, 2025 and the twelve months ended December 31, 2024.

Nonperforming and Past Due Loans

Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest for our commercial and consumer loan portfolios are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 111 of our 2024 Form 10-K.

The following aging analysis of past due and current loans as of March 31, 2025, and December 31, 2024, provides further information regarding Key’s credit exposure.

Aging Analysis of Loan Portfolio(a)

As of March 31, 2025			Current (b)(c)			30-59 Days Past Due (b)			60-89 Days Past Due (b)			90 and Greater Days Past Due (b)			Non-performing Loans			Total Past Due and Non-performing Loans (b)			Total Loans (d)
Dollars in millions
LOAN TYPE
Commercial and industrial			$	53,917		$	89		$	29		$	55		$	288		$	461		$	54,378
Commercial real estate:
Commercial mortgage			12,943			37			48			5			206			296			13,239
Construction			2,926			—			—			3			—			3			2,929
Total commercial real estate loans			15,869			37			48			8			206			299			16,168
Commercial lease financing			2,572			3			1			—			—			4			2,576
Total commercial loans			$	72,358		$	129		$	78		$	63		$	494		$	764		$	73,122
Real estate — residential mortgage			$	19,513		$	10		$	5		$	—		$	94		$	109		$	19,622
Home equity loans			6,037			21			6			3			87			117			6,154
Other consumer loans			4,965			14			8			9			4			35			5,000
Credit cards			883			6			4			11			7			28			911
Total consumer loans			$	31,398		$	51		$	23		$	23		$	192		$	289		$	31,687
Total loans			$	103,756		$	180		$	101		$	86		$	686		$	1,053		$	104,809

(a)Amounts in table represent amortized cost and exclude loans held for sale.

(b)Accrued interest of $448 million presented in “Accrued income and other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

(c)Includes balances of $74 million in Commercial mortgage and $7 million in Real estate - residential mortgage associated with loans sold to GNMA that are 90 days or more past due where Key has the right but not the obligation to repurchase and whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veteran Affairs.

(d)Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums.

As of December 31, 2024			Current (b)(c)			30-59 Days Past Due (b)			60-89 Days Past Due (b)			90 and Greater Days Past Due (b)			Non-performing Loans			Total Past Due and Non-performing Loans (b)						Total Loans (d)
Dollars in millions
LOAN TYPE
Commercial and industrial			$	52,473		$	48		$	21		$	45		$	322		$	436					$	52,909
Commercial real estate:
Commercial mortgage			13,018			4			29			16			243			292						13,310
Construction			2,932			—			—			4			—			4						2,936
Total commercial real estate loans			15,950			4			29			20			243			296						16,246
Commercial lease financing			2,728			1			6			1			—			8						2,736
Total commercial loans			$	71,151		$	53		$	56		$	66		$	565		$	740					$	71,891
Real estate — residential mortgage			$	19,766		$	20		$	8		$	—		$	92		$	120					$	19,886
Home equity loans			6,232			26			8			3			89			126						6,358
Other consumer loans			5,129			15			9			9			5			38						5,167
Credit cards			928			6			5			12			7			30						958
Total consumer loans			$	32,055		$	67		$	30		$	24		$	193		$	314					$	32,369
Total loans			$	103,206		$	120		$	86		$	90		$	758		$	1,054					$	104,260

(a)Amounts in table represent amortized cost and exclude loans held for sale.

(b)Accrued interest of $456 million presented in “Accrued income and other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.

(c)Includes balances of $75 million in Commercial mortgage and $7 million in Real estate - residential mortgage associated with loans sold to GNMA that are 90 days or more past due where Key has the right but not the obligation to repurchase and whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veteran Affairs.

(d)Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums.

At March 31, 2025, the carrying amount of our commercial nonperforming loans outstanding represented 69% of their original contractual amount owed, total nonperforming loans outstanding represented 75% of their original contractual amount owed, and nonperforming assets in total were carried at 78% of their original contractual amount owed.

Nonperforming loans reduced expected interest income by $13 million for the three months ended March 31, 2025, and $13 million for the three months ended March 31, 2024.

The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $423 million at March 31, 2025 and $381 million at December 31, 2024.

As of March 31, 2025, 39% of our nonperforming loans were contractually current versus 43% as of December 31, 2024.

Collateral-dependent Financial Assets

We classify financial assets as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of the collateral. Our commercial loans have collateral that includes cash, accounts receivable, inventory, commercial machinery, commercial properties, commercial real estate construction projects, enterprise value, and stock or ownership interests in the borrowing entity. When appropriate we also consider the enterprise value of the borrower as a repayment source for collateral-dependent loans. Our consumer loans have collateral that includes residential real estate, automobiles, boats, and RVs.

At March 31, 2025 and March 31, 2024, the recorded investment of consumer residential mortgage and home equity loans in the process of foreclosure was approximately $68 million and $133 million, respectively.

There were no significant changes in the extent to which collateral secures our collateral-dependent financial assets during the three months ended March 31, 2025.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The ALLL for loans modified for borrowers experiencing financial difficulty is determined based on Key’s ALLL policy as described within Note 1 (“Summary of Significant Accounting Policies”) of our 2024 Form 10-K.

Modifications for Borrowers Experiencing Financial Difficulty

Our strategy in working with commercial borrowers is to allow them time to improve their financial position through loan modification. Commercial borrowers that are rated substandard or worse in accordance with the regulatory definition, or that cannot otherwise restructure at market terms and conditions, are considered to be experiencing financial difficulty. A modification of a loan is subject to the normal underwriting standards and processes for other similar credit extensions, both new and existing. The modified loan is evaluated to determine if it is a new loan or a continuation of the prior loan.

Consumer loans in which a borrower requires a modification as a result of negative changes to their financial condition or to avoid default, generally indicate the borrower is experiencing financial difficulty. The primary modifications made to consumer loans are amortization, maturity date and interest rate changes. Consumer borrowers identified as experiencing financial difficulty are generally unable to refinance their loans through our normal origination channel or through other independent sources.

The following tables show the amortized cost basis at the end of the noted reporting periods of the loans modified to borrowers experiencing financial difficulty within the past 12 months of the noted periods. The tables do not include those modifications that only resulted in an insignificant payment delay. The tables do not include consumer loans that are still within a trial modification period. Trial modifications may be done for consumer borrowers where a trial payment plan period is offered in advance of a permanent loan modification. As of March 31, 2025, there were 98 loans totaling $15 million in a trial modification period. As of March 31, 2024, there were 79 loans totaling $11 million in a trial modification period.

Commitments outstanding to lend additional funds to borrowers experiencing financial difficulty whose loans were modified were $77 million and $48 million at March 31, 2025 and March 31, 2024, respectively.

As of March 31, 2025			Interest Rate Reduction			Term Extension			Other			Combination (a)			Total
Dollars in millions			Amortized Cost Basis						Amortized Cost Basis						Amortized Cost Basis						Amortized Cost Basis						Amortized Cost Basis			% of Total Loan Type
LOAN TYPE
Commercial and Industrial			$	—					$	150					$	60					$	17					$	227		0.42		%
Commercial real estate:
Commercial mortgage			—						306						21						—						327			2.47
Construction			—						49						—						—						49			1.67
Total commercial real estate loans			—						355						21						—						376			2.33
Commercial lease financing			—						—						—						—						—			—
Total commercial loans			$	—					$	505					$	81					$	17					$	603		0.82		%
Real estate — residential mortgage			1						—						—						13						14			0.07
Home equity loans			4						1						1						6						12			0.19
Other consumer loans			—						3						—						2						5			0.10
Credit cards			—						—						—						4						4			0.44
Total consumer loans			5						4						1						25						35			0.11
Total loans			$	5					$	509					$	82					$	42					$	638		0.61		%

As of March 31, 2024			Interest Rate Reduction			Term Extension			Other			Combination (a)			Total
Dollars in millions			Amortized Cost Basis						Amortized Cost Basis						Amortized Cost Basis						Amortized Cost Basis						Amortized Cost Basis			% of Total Loan Type
LOAN TYPE
Commercial and Industrial			$	—					$	173					$	48					$	33					$	254		0.46		%
Commercial real estate:
Commercial mortgage			28						22						1						—						51			0.35
Construction			—						19						—						—						19			0.63
Total commercial real estate loans			28						41						1						—						70			0.40
Commercial lease financing			—						—						—						—						—			—
Total commercial loans			$	28					$	214					$	49					$	33					$	324		0.43		%
Real estate — residential mortgage			1						—						—						12						13			0.06
Home equity loans			2						1						1						7						11			0.16
Other consumer loans			—						1						—						2						3			0.05
Credit cards			—						—						—						4						4			0.43
Total consumer loans			3						2						1						25						31			0.09
Total loans			$	31					$	216					$	50					$	58					$	355		0.32		%

(a)Combination modifications consist primarily of loans modified with both an interest rate reduction and a term extension.

Financial Effects of Modifications to Borrowers Experiencing Financial Difficulty

The following table summarizes the financial impacts of loan modifications made to specific loans for the noted periods.

Three months ended March 31, 2025			Weighted-average Interest Rate Change			Weighted-average Term Extension (in years)
LOAN TYPE
Commercial and Industrial			(22.20)		%	0.47
Commercial mortgage			—		%	0.52
Real estate — residential mortgage			(1.45)		%	5.24
Home equity loans			(1.83)		%	6.05
Other consumer loans			(3.22)		%	0.40
Credit cards			(2.22)		%	0.25

Three months ended March 31, 2024			Weighted-average Interest Rate Change			Weighted-average Term Extension (in years)
LOAN TYPE
Commercial and Industrial			(6.40)		%	0.33
Commercial mortgage			(1.91)		%	0.39
Construction			—		%	1.00
Real estate — residential mortgage			(1.53)		%	7.62
Home equity loans			(2.78)		%	5.74
Other consumer loans			(1.43)		%	0.70
Credit cards			(14.11)		%	0.25

Amortized Cost Basis of Modified Loans That Subsequently Defaulted

Key considers modifications to borrowers experiencing financial difficulty that subsequently become 90 days or more past due under modified terms as subsequently defaulted. The following table presents the amortized cost of modified loans to borrowers experiencing financial difficulty that were within 12 months of their modification and subsequently defaulted during the three months ended March 31, 2025.

Three months ended March 31, 2025
Dollars in millions			Interest Rate Reduction			Term Extension			Other			Combination			Total
LOAN TYPE
Commercial real estate
Commercial mortgage			$	—		$	19		$	—		$	—		$	19
Total commercial real estate loans			—			19			—			—			19
Total commercial loans			—			19			—			—			19
Credit cards			—			—			—			1			1
Total consumer loans			$	—		$	—		$	—		$	1		$	1
Total loans			$	—		$	19		$	—		$	1		$	20

The following table presents the amortized cost of modified loans to borrowers experiencing financial difficulty that were within 12 months of their modification and subsequently defaulted during the three months ended March 31, 2024.

Three months ended March 31, 2024
Dollars in millions			Interest Rate Reduction			Term Extension			Other			Combination			Total
LOAN TYPE
Commercial and Industrial			$	—		$	50		$	1		$	—		$	51
Total commercial loans			—			50			1			—			51
Total loans			$	—		$	50		$	1		$	—		$	51

Key closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the amortized cost as of March 31, 2025, of loans modified during the 12 months then ended, by aging.

As of March 31, 2025			Current			30-89 Days Past Due						90 and Greater Days Past Due			Total
Dollars in millions
LOAN TYPE
Commercial and Industrial			$	207		$	8					$	12		$	227
Commercial real estate
Commercial mortgage			256			50						21			327
Construction			49			—						—			49
Total commercial real estate loans			305			50						21			376
Commercial lease financing			—			—						—			—
Total commercial loans			512			58						33			603
Real estate — residential mortgage			14			—						—			14
Home equity loans			10			1						1			12
Other consumer loans			5			—						—			5
Credit cards			4			—						—			4
Total consumer loans			$	33		$	1					$	1		$	35
Total loans			$	545		$	59					$	34		$	638

The following table presents the amortized cost as of March 31, 2024, of loans modified during the 12 months then ended, by aging.

As of March 31, 2024			Current			30-89 Days Past Due						90 and Greater Days Past Due			Total
Dollars in millions
LOAN TYPE
Commercial and Industrial			$	184		$	16					$	54		$	254
Commercial real estate
Commercial mortgage			29			22						—			51
Construction			19			—						—			19
Total commercial real estate loans			232			38						54			324
Commercial lease financing			—			—						—			—
Total commercial loans			232			38						54			324
Real estate — residential mortgage			11			2						—			13
Home equity loans			9			1						1			11
Other consumer loans			3			—						—			3
Credit cards			4			—						—			4
Total consumer loans			$	27		$	3					$	1		$	31
Total loans			$	259		$	41					$	55		$	355

Liability for Credit Losses on Lending-related Commitments

The liability for credit losses on lending-related commitments is included in “accrued expense and other liabilities” on the balance sheet. This includes credit risk for recourse associated with loans sold under the Fannie Mae Delegated Underwriting and Servicing program and credit losses inherent in unfunded lending-related commitments, such as letters of credit and unfunded loan commitments, and certain financial guarantees.

Changes in the liability for credit losses on lending-related commitments are summarized as follows:

			Three months ended March 31,
Dollars in millions			2025			2024
Balance at beginning of period			$	290		$	296
Provision (credit) for losses on lending-related commitments			(12)			(14)
Other			—			(1)
Balance at end of period			$	278		$	281

5. Fair Value Measurements

In accordance with GAAP, Key measures certain assets and liabilities at fair value. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants in the principal market of the asset or liability. Additional information regarding our accounting policies for determining fair value is provided in Note 6 (“Fair Value Measurements”) and Note 1 (“Summary of Significant Accounting Policies”) under the heading “Fair Value Measurements” of our 2024 Form 10-K.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. For more information on the valuation techniques used to measure classes of assets and liabilities reported at fair value on a recurring basis as well as the classification of each in the valuation hierarchy, refer to Note 6 (“Fair Value Measurements”) in our 2024 Form 10-K. The following tables present these assets and liabilities at March 31, 2025, and December 31, 2024.

			March 31, 2025												December 31, 2024
			Level 1			Level 2			Level 3			Total			Level 1			Level 2			Level 3			Total
Dollars in millions
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations			$	—		$	824		$	—		$	824		$	—		$	930		$	—		$	930
States and political subdivisions			—			136			—			136			—			127			—			127
Other mortgage-backed securities			—			311			—			311			—			183			—			183
Other securities			—			19			—			19			—			25			—			25
Total trading account securities			—			1,290			—			1,290			—			1,265			—			1,265
Commercial loans			—			6			—			6			—			18			—			18
Total trading account assets			—			1,296			—			1,296			—			1,283			—			1,283
Securities available for sale:
U.S. Treasury, agencies and corporations			—			8,362			—			8,362			—			8,904			—			8,904
Agency residential collateralized mortgage obligations			—			9,131			—			9,131			—			9,224			—			9,224
Agency residential mortgage-backed securities			—			18,977			—			18,977			—			15,169			—			15,169
Agency commercial mortgage-backed securities			—			4,281			—			4,281			—			4,410			—			4,410
Other securities			—			—			—			—			—			—			—			—
Total securities available for sale			—			40,751			—			40,751			—			37,707			—			37,707
Other investments:
Principal investments:
Indirect (measured at NAV) (a)			—			—			—			13			—			—			—			14
Total principal investments			—			—			—			13			—			—			—			14
Equity investments:
Direct			—			—			3			3			—			—			2			2
Direct (measured at NAV) (a)			—			—			—			61			—			—			—			54
Indirect (measured at NAV) (a)			—			—			—			4			—			—			—			3
Total equity investments			—			—			3			68			—			—			2			59
Total other investments			—			—			3			81			—			—			2			73
Loans, net of unearned income (residential)			—			—			10			10			—			—			10			10
Loans held for sale (residential)			—			86			—			86			—			93			—			93
Derivative assets:
Interest rate			—			113			4			117			—			114			(4)			110
Foreign exchange			72			15			—			87			93			31			—			124
Commodity			—			483			—			483			—			363			—			363
Credit			—			—			—			—			—			—			—			—
Other			—			11			1			12			—			15			—			15
Derivative assets			72			622			5			699			93			523			(4)			612
Netting adjustments (b)			—			—			—			(279)			—			—			—			(363)
Total derivative assets			72			622			5			420			93			523			(4)			249
Total assets on a recurring basis at fair value			$	72		$	42,755		$	18		$	42,644		$	93		$	39,606		$	8		$	39,415
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions			$	245		$	833		$	—		$	1,078		$	107		$	773		$	—		$	880
Derivative liabilities:
Interest rate			—			744			—			744			—			965			—			965
Foreign exchange			64			15			—			79			85			32			—			117
Commodity			—			466			—			466			—			343			—			343
Credit			—			1			6			7			—			—			—			—
Other			—			7			—			7			—			14			—			14
Derivative liabilities			64			1,233			6			1,303			85			1,354			—			1,439
Netting adjustments (b)			—			—			—			(528)			—			—			—			(411)
Total derivative liabilities			64			1,233			6			775			85			1,354			—			1,028
Total liabilities on a recurring basis at fair value			$	309		$	2,066		$	6		$	1,853		$	192		$	2,127		$	—		$	1,908

(a)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

(b)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

The following table presents the fair value of our indirect principal investments and related unfunded commitments at March 31, 2025, as well as financial support provided for the three months ended March 31, 2025, and March 31, 2024.

												Financial support provided
												Three months ended March 31,
			March 31, 2025									2025									2024
Dollars in millions			Fair Value			Unfunded Commitments						Funded Commitments			Funded Other						Funded Commitments			Funded Other
INVESTMENT TYPE
Indirect investments (measured at NAV) (a)			$	13		$	1					$	—		$	—					$	—		$	—
Total			$	13		$	1					$	—		$	—					$	—		$	—

(a) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. At March 31, 2025, no significant liquidation of the underlying investments has been communicated to Key. The purpose of funding our capital commitments to these investments is to allow the funds to make additional follow-on investments and pay fund expenses until the fund dissolves. We, and all other investors in the fund, are obligated to fund the full amount of our respective capital commitments to the fund based on our and their respective ownership percentages, as noted in the applicable Limited Partnership Agreement.

Changes in Level 3 Fair Value Measurements

The following table shows the components of the change in the fair values of our Level 3 financial instruments measured at fair value on a recurring basis for the three months ended March 31, 2025, and March 31, 2024.

Dollars in millions			Beginning of Period Balance			Gains (Losses) Included in Other Comprehensive Income			Gains (Losses) Included in Earnings						Purchases			Sales			Settlements			Transfers Other			Transfers into Level 3						Transfers out of Level 3						End of Period Balance			Unrealized Gains (Losses) Included in Earnings
Three months ended March 31, 2025
Other investments
Equity investments
Direct			$	2		$	—		$	1		(c)			$	—		$	—		$	—		$	—		$	—					$	—					$	3		$	—
Loans, net of unearned income (residential)			10			—			—						—			—			—			—			—						—						10			—
Derivative instruments (a)
Interest rate			(4)			—			7			(d)			5			—			—			—			(4)			(e)			—						4			—
Credit			—			—			(6)						—			—			—			—			—						—						(6)			—
Other (b)			—			—			—						—			—			—			1			—						—						1			—

Dollars in millions			Beginning of Period Balance			Gains (Losses) Included in Other Comprehensive Income			Gains (Losses) Included in Earnings						Purchases			Sales			Settlements			Transfers Other			Transfers into Level 3						Transfers out of Level 3						End of Period Balance			Unrealized Gains (Losses) Included in Earnings
Three months ended March 31, 2024
Other investments
Equity investments
Direct			$	2		$	—		$	—		(c)			$	—		$	—		$	—		$	—		$	—					$	—					$	2		$	—
Loans, net of unearned income (residential)			9			—			—						—			—			—			—			—						—						9			—
Derivative instruments (a)
Interest rate			(2)			—			(4)			(c)			1			—			—			—			2			(e)			3			(e)			—			—
Other (b)			2			—			—						—			—			—			(1)			—						—						1			—

(a)Amounts represent Level 3 derivative assets less Level 3 derivative liabilities.

(b)Amounts represent Level 3 interest rate lock commitments.

(c)Realized and unrealized gains and losses on principal investments are reported in “other income” on the income statement.

(d)Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement.

(e)Certain derivatives previously classified as Level 2 were transferred to Level 3 and vice versa based upon changes in the significance of unobservable inputs.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance with GAAP. The adjustments to fair value generally result from the application of accounting guidance that requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. For more information on the valuation techniques used to measure classes of assets and liabilities measured at fair value on a nonrecurring basis, refer to Note 6 (“Fair Value Measurements”) in our 2024 Form 10-K. There were no liabilities measured at fair value on a nonrecurring basis at March 31, 2025, and December 31, 2024.

The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2025, and December 31, 2024:

			March 31, 2025															December 31, 2024
Dollars in millions			Level 1			Level 2			Level 3			Total						Level 1			Level 2			Level 3			Total
ASSETS MEASURED ON A NONRECURRING BASIS
Collateral-dependent loans			$	—		$	—		$	69		$	69					$	—		$	—		$	152		$	152
Accrued income and other assets			—			—			16			16						—			—			14			14
Total assets on a nonrecurring basis at fair value			$	—		$	—		$	85		$	85					$	—		$	—		$	166		$	166

We have other investments in equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share. We have elected to measure these securities at cost less impairment plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative. At March 31, 2025, and December 31, 2024, the carrying amount of equity investments under this method was $419 million and $394 million, respectively. We recorded less than $1 million of adjustments or impairments for the three months ended March 31, 2025.

Quantitative Information about Level 3 Fair Value Measurements

The range and weighted-average of the significant unobservable inputs used to measure the fair value of our material Level 3 recurring and nonrecurring assets at March 31, 2025, and December 31, 2024, along with the valuation techniques used, are shown in the following table:

			Level 3 Asset (Liability)						Valuation Technique			Significant Unobservable Input			Range (Weighted-Average) (a), (b)
Dollars in millions			March 31, 2025			December 31, 2024			March 31, 2025			December 31, 2024
Recurring
Loans, net of unearned income (residential)			$	10		$	10		Market comparable pricing			Comparability factor			68.00 - 95.00% (77.36%)			68.00-95.00% (77.48%)
Derivative instruments:
Interest rate			4			(4)			Discounted cash flows			Probability of default			.02 - 100% (4.50%)			.02 - 100% (5.00%)
												Loss given default			0 - 1 (.496)			0 - 1 (.500)
Insignificant level 3 assets, net of liabilities(c)			(2)			2
Nonrecurring
Collateral-dependent loans			69			152			Fair value of collateral			Credit and liquidity discount			0 - 100.00% (38.00%)			0 - 100.00% (33.00%)
Accrued income and other assets:
OREO and other Level 3 assets			16			14			Appraised value			Appraised value			N/M			N/M

(a)The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value.

(b)For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used.

(c)Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain equity investments and certain financial derivative assets and liabilities.

Fair Value Disclosures of Financial Instruments

The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at March 31, 2025, and December 31, 2024, are shown in the following tables. Assets and liabilities are further arranged by measurement category.

			March 31, 2025
						Fair Value
Dollars in millions			Carrying Amount			Level 1			Level 2			Level 3			Measured at NAV			Netting Adjustment						Total
ASSETS (by measurement category)
Fair value - net income
Trading account assets (b)			$	1,296		$	—		$	1,296		$	—		$	—		$	—					$	1,296
Other investments (b)			1,050			—			—			972			78			—						1,050
Loans, net of unearned income (residential) (d)			10			—			—			10			—			—						10
Loans held for sale (residential) (b)			86			—			86			—			—			—						86
Derivative assets - trading (b)			418			72			617			6			—			(277)			(f)			418
Fair value - OCI
Securities available for sale (b)			40,751			—			40,751			—			—			—						40,751
Derivative assets - hedging (b)(g)			2			—			4			—			—			(2)			(f)			2
Amortized cost
Held-to-maturity securities (c)			7,160			—			6,730			—			—			—						6,730
Loans, net of unearned income (d)			103,370			—			—			99,542			—			—						99,542
Loans held for sale (b)			725			—			—			725			—			—						725
Other
Cash and other short-term investments (a)			17,258			17,258			—			—			—			—						17,258
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)			$	773		$	64		$	1,230		$	6		$	—		$	(527)		(f)			$	773
Fair value - OCI
Derivative liabilities - hedging (b)(g)			2			—			3			—			—			(1)			(f)			2
Amortized cost
Time deposits (e)			16,175			—			16,253			—			—			—						16,253
Short-term borrowings (a)			2,350			245			2,105			—			—			—						2,350
Long-term debt (e)			12,392			11,837			457			—			—			—						12,294
Other
Deposits with no stated maturity (a)			134,562			—			134,562			—			—			—						134,562

			December 31, 2024
						Fair Value
Dollars in millions			Carrying Amount			Level 1			Level 2			Level 3			Measured at NAV			Netting Adjustment						Total
ASSETS (by measurement category)
Fair value - net income
Trading account assets (b)			$	1,283		$	—		$	1,283		$	—		$	—		$	—					$	1,283
Other investments (b)			1,041			—			—			969			72			—						1,041
Loans, net of unearned income (residential) (d)			10			—			—			10			—			—						10
Loans held for sale (residential) (b)			93			—			93			—			—			—						93
Derivative assets - trading (b)			255			$	93		527			(4)			—			(361)			(f)			255
Fair value - OCI
Securities available for sale (b)			37,707			—			37,707			—			—			—						37,707
Derivative assets - hedging (b)(g)			(6)			—			(4)			—			—			(2)			(f)			(6)
Amortized cost
Held-to-maturity securities (c)			7,395			—			6,837			—			—			—						6,837
Loans, net of unearned income (d)			102,841			—			—			99,105			—			—						99,105
Loans held for sale (b)			704			—			—			704			—			—						704
Other
Cash and other short-term investments (a)			19,247			19,247			—			—			—			—						19,247
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)			$	1,028		$	85		$	1,351		$	—		$	—		$	(408)		(f)			$	1,028
Fair value - OCI
Derivative liabilities - hedging (b)(g)			—			—			3			—			—			(3)			(f)			—
Amortized cost
Time deposits (e)			16,952			—			17,068			—			—			—						17,068
Short-term borrowings (a)			2,144			107			2,037			—			—			—						2,144
Long-term debt (e)			12,105			11,430			477			—			—			—						11,907
Other
Deposits with no stated maturity (a)			132,808			—			132,808			—			—			—						132,808

Valuation Methods and Assumptions

(a)Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles.

(b)Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” within our 2024 Form 10-K Note 6 (“Fair Value Measurements”). Investments accounted for under the cost method (or cost less impairment adjusted for observable price changes for certain equity investments) are classified as Level 3 assets. These investments are not actively traded in an open market as sales for these types of investments are rare. The carrying amount of the investments carried at cost are adjusted for declines in value if they are considered to be other-than-temporary (or due to observable orderly transactions of the same issuer for equity investments eligible for the cost less impairment measurement alternative). These adjustments are included in “other income” on the income statement.

(c)Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure that they are reasonable and consistent with the values placed on similar securities traded in the secondary markets.

(d)The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value.

(e)Fair values of time deposits and long-term debt are based on discounted cash flows utilizing relevant market inputs.

(f)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

(g)Derivative assets-hedging and derivative liabilities-hedging includes both cash flow and fair value hedges. Additional information regarding our accounting policies for cash flow and fair value hedges is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 115 of our 2024 Form 10-K.

Discontinued assets — education lending business**.** Our discontinued assets include government-guaranteed and private education loans originated through our education lending business that was discontinued in September 2009. This portfolio consists of loans recorded at carrying value with appropriate valuation reserves. All of these loans were excluded from the table above as follows:

• Loans at carrying value, net of allowance, of $243 million ($181 million at fair value) at March 31, 2025, and $257 million ($192 million at fair value) at December 31, 2024.

These loans and securities are classified as Level 3 because we rely on unobservable inputs when determining fair value since observable market data is not available.

6. Securities

The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change.

			March 31, 2025															December 31, 2024
Dollars in millions			Amortized Cost (a)(b)			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value						Amortized Cost (a)(b)			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
SECURITIES AVAILABLE FOR SALE
U.S. Treasury, agencies, and corporations			$	8,347		$	47		$	32		$	8,362					$	8,928		$	20		$	44		$	8,904
Agency residential collateralized mortgage obligations			11,135			6			2,010			9,131						11,409			8			2,193			9,224
Agency residential mortgage-backed securities			19,597			58			678			18,977						16,038			3			872			15,169
Agency commercial mortgage-backed securities			4,707			—			426			4,281						4,927			—			517			4,410
Total securities available for sale			$	43,786		$	111		$	3,146		$	40,751					$	41,302		$	31		$	3,626		$	37,707
HELD-TO-MATURITY SECURITIES
Agency residential collateralized mortgage obligations			$	4,452		$	7		$	246		$	4,213					$	4,577		$	3		$	332		$	4,248
Agency residential mortgage-backed securities			148			—			15			133						151			—			17			134
Agency commercial mortgage-backed securities			2,300			1			171			2,130						2,333			—			203			2,130
Asset-backed securities (c)			236			—			5			231						308			—			8			300
Other securities			24			—			1			23						26			—			1			25
Total held-to-maturity securities			$	7,160		$	8		438			$	6,730					$	7,395		$	3		$	561		$	6,837

(a)Amortized cost amounts exclude accrued interest receivable which is recorded within “other assets” on the balance sheet. At March 31, 2025, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $127 million and $20 million, respectively. At December 31, 2024, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $109 million and $21 million, respectively.

(b)Excluded from the amortized cost of securities available for sale are basis adjustments for securities designated in active fair value hedges. Basis adjustments totaled $71 million and $(6) million as of March 31, 2025 and December 31, 2024, respectively. The securities being hedged are primarily U.S Treasuries, Agency RMBS, and Agency CMBS.

(c)Amortized cost includes $231 million of securities as of March 31, 2025, and $303 million of securities as of December 31, 2024, related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans.

The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2025, and December 31, 2024.

			Duration of Unrealized Loss Position
			Less than 12 Months									12 Months or Longer									Total
Dollars in millions			Fair Value			Gross Unrealized Losses						Fair Value			Gross Unrealized Losses						Fair Value			Gross Unrealized Losses
March 31, 2025
Securities available for sale:
U.S Treasury, agencies, and corporations			$	2,646		$	4					$	516		$	28					$	3,162		$	32
Agency residential collateralized mortgage obligations			98			—						8,161			2,010						8,259			2,010
Agency residential mortgage-backed securities			8,138			137						3,120			541						11,258			678
Agency commercial mortgage-backed securities			48			—						4,233			426						4,281			426
Held-to-maturity securities:
Agency residential collateralized mortgage obligations			184			3						3,482			243						3,666			246
Agency residential mortgage-backed securities			—			—						133			15						133			15
Agency commercial mortgage-backed securities			—			—						2,059			171						2,059			171
Asset-backed securities			—			—						231			5						231			5
Other securities			2			—						6			1						8			1
Total securities in an unrealized loss position			$	11,116		$	144					$	21,941		$	3,440					$	33,057		$	3,584
December 31, 2024
Securities available for sale:
U.S. Treasury, agencies, and corporations			$	3,647		$	8					$	508		$	36					$	4,155		$	44
Agency residential collateralized mortgage obligations			91			—						8,108			2,193						8,199			2,193
Agency residential mortgage-backed securities			11,364			254						3,145			618						14,509			872
Agency commercial mortgage-backed securities			50			1						4,360			516						4,410			517
Held-to-maturity securities:
Agency residential collateralized mortgage obligations			569			18						3,387			314						3,956			332
Agency residential mortgage-backed securities			—			—						134			17						134			17
Agency commercial mortgage-backed securities			—			—						2,060			203						2,060			203
Asset-backed securities			—			—						300			8						300			8
Other securities			7			—						8			1						15			1
Total securities in an unrealized loss position			$	15,728		$	281					$	22,010		$	3,906					$	37,738		$	4,187

Based on our evaluation at March 31, 2025, an allowance for credit losses has not been recorded nor have unrealized losses been recognized into income. The issuers of the securities are of high credit quality and have a history of no credit losses, management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The security issuers continue to make timely principal and interest payments.

For the three months ended March 31, 2025, we had no gross realized gains or losses from the sale of securities available for sale. For the three months ended March 31, 2024, we recognized no gross realized gains and $3 million in gross realized losses from the sale of securities available for sale.

At March 31, 2025 and December 31, 2024, securities available for sale and held-to-maturity securities totaling $20.4 billion and $19.1 billion, respectively, were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law.

The following table shows our securities by remaining maturity at March 31, 2025. CMOs, other mortgage-backed securities, and asset-backed securities in the available for sale portfolio and held-to-maturity portfolio are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties.

March 31, 2025			Securities Available for Sale									Held to Maturity Securities
Dollars in millions			Amortized Cost			Fair Value						Amortized Cost			Fair Value
Due in one year or less			$	2,995		$	2,988					$	77		$	76
Due after one through five years			10,639			10,305						2,599			2,505
Due after five through ten years			20,811			19,092						2,640			2,487
Due after ten years			9,341			8,366						1,844			1,662
Total			$	43,786		$	40,751					$	7,160		$	6,730

7. Derivatives and Hedging Activities

We are a party to various derivative instruments, mainly through our subsidiary, KeyBank. The primary derivatives that we use are interest rate swaps, caps, floors, forwards, and futures; foreign exchange contracts; commodity derivatives; and credit derivatives. Generally, these instruments help us manage exposure to interest rate risk, mitigate the credit risk inherent in our loan portfolio, hedge against changes in foreign currency exchange rates, and facilitate client financing and hedging needs.

Additional information regarding our accounting policies for derivatives is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 115 of our 2024 Form 10-K. Our derivative strategies and related risk management objectives are described in Note 8 (“Derivatives and Hedging Activities”) beginning on page 144 of our 2024 Form 10-K.

Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments

The following table summarizes the fair values of our derivative instruments on a gross and net basis as of March 31, 2025, and December 31, 2024. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “accrued income and other assets” or “accrued expenses and other liabilities” on the Consolidated Balance Sheets, as follows:

			March 31, 2025												December 31, 2024
						Fair Value**(a)**												Fair Value**(a)**
Dollars in millions			Notional Amount			Derivative Assets			Derivative Liabilities						Notional Amount			Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate			$	65,784		$	4		$	3					$	64,701		$	(4)		$	3
Derivatives not designated as hedging instruments:
Interest rate			68,737			113			741						72,215			114			962
Foreign exchange			6,554			87			79						6,516			124			117
Commodity			8,921			483			466						8,778			363			343
Credit			84			—			7						60			—			—
Other (b)			3,746			12			7						3,145			15			14
Total derivatives not designated as hedging instruments:			88,042			695			1,300						90,714			616			1,436
Netting adjustments (c)			—			(279)			(528)						—			(363)			(411)
Net derivatives in the balance sheet			153,826			420			775						155,415			249			1,028
Other collateral (d)			—			(1)			(30)						—			—			(1)
Net derivative amounts			$	153,826		$	419		$	745					$	155,415		$	249		$	1,027

(a)We take into account bilateral collateral and master netting agreements that allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related cash collateral when recognizing derivative assets and liabilities. As a result, we could have derivative contracts with negative fair values included in derivative assets and contracts with positive fair values included in derivative liabilities.

(b)Other derivatives include interest rate lock commitments related to our residential and commercial banking activities, forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts.

(c)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. As of March 31, 2025, excess collateral that has not been offset against net derivative instrument positions totaled $187 million of cash collateral and $276 million of securities collateral posted as well as $4 million of cash collateral and $4 million of securities collateral held. As of December 31, 2024, excess collateral that has not been offset against net derivative instrument positions totaled $168 million of cash collateral and $215 million of securities collateral posted as well as $13 million of cash collateral and $32 million of securities collateral held.

(d)Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Fair value hedges. During the three months ended March 31, 2025, we did not exclude any portion of fair value hedging instruments from the assessment of hedge effectiveness.

The following tables summarize the amounts that were recorded on the balance sheet as of March 31, 2025, and December 31, 2024, related to cumulative basis adjustments for fair value hedges.

			March 31, 2025
Dollars in millions			Balance sheet line item in which the hedge item is included			Carrying amount of hedged item (a)			Hedge accounting basis adjustment - active hedges			Hedge accounting basis adjustment - discontinued hedges
Interest rate contracts			Long-term debt			$	11,112		$	(341)		$	(4)
Interest rate contracts			Securities Available for Sale**(c)**			11,909			(72)			16
			December 31, 2024
			Balance sheet line item in which the hedge item is included			Carrying amount of hedged item (a)			Hedge accounting basis adjustment - active hedges			Hedge accounting basis adjustment - discontinued hedges
Interest rate contracts			Long-term debt			$	10,249		$	(490)		$	(4)
Interest rate contracts			Securities Available for Sale**(c)**			12,097			5			17

(a)The carrying amount represents the portion of the asset or liability designated as the hedged item.

(b)Certain amounts are designed as fair value hedges under the portfolio layer method. The carrying amount represents the amortized costs basis of the prepayable financial assets used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the relationship. At March 31, 2025, and December 31, 2024, the amortized costs of the closed portfolios in these hedging relationships was $5.4 billion and $5 billion, respectively, of which $4.0 billion was designated in a portfolio layer hedging relationship for both period ends. At March 31, 2025, and December 31, 2024, the cumulative basis adjustments associated with these amounts totaled $9 million and $41 million, respectively, which is comprised of $(25) million and $24 million in active hedging relationships and $16 million and $17 million for discontinued hedging relationships.

Cash flow hedges. During the three-month period ended March 31, 2025, we did not exclude any portion of cash flow hedging instruments from the assessment of hedge effectiveness.

Considering the interest rates, yield curves, and notional amounts as of March 31, 2025, we expect to reclassify an estimated $187 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI to income during the next 12 months. In addition, we expect to reclassify approximately $3 million of net losses related to terminated cash flow hedges from AOCI to income during the next 12 months. These reclassified amounts could differ from actual amounts recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to March 31, 2025. As of March 31, 2025, the maximum length of time over which we hedge forecasted transactions is 4.43 years.

The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three-month periods ended March 31, 2025, and March 31, 2024.

			Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships
Dollars in millions			Interest expense – long-term debt			Interest income – loans						Interest Income - securities			Investment banking and debt placement fees
Three months ended March 31, 2025
Total amounts presented in the consolidated statement of income			$	(193)		$	1,401					$	392		$	175
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items			$	(153)		$	—					$	78		$	—
Recognized on derivatives designated as hedging instruments			108			—						(71)			—
Net income (expense) recognized on fair value hedges			$	(45)		$	—					$	7		$	—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income			$	(1)		$	(93)					$	—		$	—
Net income (expense) recognized on cash flow hedges			$	(1)		$	(93)					$	—		$	—
Three months ended March 31, 2024
Total amounts presented in the consolidated statement of income			$	(328)		$	1,538					$	232		$	170
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items			$	128		$	—					$	(151)		$	—
Recognized on derivatives designated as hedging instruments			(200)			—						182			—
Net income (expense) recognized on fair value hedges			$	(72)		$	—					$	31		$	—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income			$	—		$	(216)					$	—		$	1
Net income (expense) recognized on cash flow hedges			$	—		$	(216)					$	—		$	1

The following table summarizes the pre-tax net gains (losses) on our cash flow hedges for the three-month periods ended March 31, 2025, and March 31, 2024, and where they are recorded on the income statement. The table includes net gains (losses) recognized in AOCI during the period and net gains (losses) reclassified from AOCI into income during the current period.

Dollars in millions			Net Gains (Losses) Recognized in OCI			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income			Net Gains (Losses) Reclassified From OCI Into Income
Three months ended March 31, 2025
Cash Flow Hedges
Interest rate			$	241		Interest income — Loans			$	(93)
Interest rate			(1)			Interest expense — Long-term debt			(1)
Interest rate			—			Investment banking and debt placement fees			—
Total			$	240					$	(94)
Three months ended March 31, 2024
Cash Flow Hedges
Interest rate			$	(283)		Interest income — Loans			$	(216)
Interest rate			1			Interest expense — Long-term debt			—
Interest rate			1			Investment banking and debt placement fees			1
Total			$	(281)					$	(215)

Nonhedging instruments. The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three-month periods ended March 31, 2025, and March 31, 2024, and where they are recorded on the income statement.

			Three months ended March 31, 2025															Three months ended March 31, 2024
Dollars in millions			Corporate services income			Consumer mortgage income			Other income						Total						Corporate services income			Consumer mortgage income			Other income						Total
NET GAINS (LOSSES)
Interest rate			$	8		$	—		$	6					$	14					$	10		$	—		$	—					$	10
Foreign exchange			12			—			—						12						12			—			—						12
Commodity			2			—			—						2						3			—			—						3
Credit			—			—			(12)						(12)						—			—			(11)						(11)
Other			—			—			5						5						—			3			3						6
Total net gains (losses)			$	22		$	—		$	(1)					$	21					$	25		$	3		$	(8)					$	20

Counterparty Credit Risk

We hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. Cash collateral of $38 million was netted against derivative assets on the balance sheet at March 31, 2025, compared to $75 million of cash collateral netted against derivative assets at December 31, 2024. The cash collateral netted against derivative liabilities totaled $287 million at March 31, 2025, and $124 million at December 31, 2024. Our means of mitigating and managing exposure to credit risk on derivative contracts is described in Note 8 (“Derivatives and Hedging Activities”) beginning on page 144 of our 2024 Form 10-K under the heading “Counterparty Credit Risk.”

The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our net exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk.

Dollars in millions			March 31, 2025			December 31, 2024
Interest rate			$	75		$	58
Foreign exchange			57			81
Commodity			314			170
Credit			—			—
Other			12			15
Derivative assets before collateral			458			324
Plus(Less): Related collateral			(38)			(75)
Total derivative assets			$	420		$	249

We enter into derivative transactions with two primary groups: broker-dealers and banks, and clients. Given that these groups have different economic characteristics, we have different methods for managing counterparty credit exposure and credit risk.

We enter into transactions with broker-dealers and banks for various risk management purposes. These types of

transactions are primarily high dollar volume. We enter into bilateral collateral and master netting agreements with

these counterparties. We clear certain types of derivative transactions with these counterparties, whereby central

clearing organizations become the counterparties to our derivative contracts. In addition, we enter into derivative

contracts through swap execution facilities. Swap clearing and swap execution facilities reduce our exposure to

counterparty credit risk. At March 31, 2025, we had gross exposure of $103 million to broker-dealers and banks and a net exposure of $23 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $22 million after considering $1 million of additional collateral held in the form of securities. At December 31, 2024, we had gross exposure of $247 million to broker-dealers and banks, a net exposure of $42 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist, and held no additional collateral in the form of securities against this net exposure.

We enter into transactions using master netting agreements with clients to accommodate their business needs. In

most cases, we mitigate our credit exposure by cross-collateralizing these transactions to the underlying loan collateral. For transactions that are not clearable, we mitigate our market risk by buying and selling U.S. Treasuries and SOFR futures or entering into offsetting positions. Due to the cross-collateralization to the underlying loan, we typically do not exchange cash or marketable securities collateral in connection with these transactions. To address the risk of default associated with these contracts, we have established a CVA reserve (included in “accrued income and other assets”). At March 31, 2025, and December 31, 2024, our CVA reserve was $6 million and $4 million, respectively. The CVA is calculated from potential future exposures, expected recovery rates, and market-implied probabilities of default. At March 31, 2025, we had gross exposure of $458 million to client counterparties and other entities that are not broker-dealers or banks for derivatives that have associated master netting agreements. We had net exposure of $398 million on our derivatives with these counterparties after the application of master netting agreements, collateral, and the related reserve. At December 31, 2024, we had gross exposure of $239 million to client counterparties and other entities that are not broker-dealers or banks for derivatives that have associated master netting agreements and had net exposure of $207 million on our derivatives with these counterparties after the application of master netting agreements, collateral, and the related reserve.

Credit Derivatives

We are a buyer and, under limited circumstances, may be a seller of credit protection through the credit derivative market. We purchase credit derivatives to manage the credit risk associated with specific commercial lending and swap obligations as well as exposures to debt securities. Our credit derivative portfolio was in a nominal net liability position as of March 31, 2025 and December 31, 2024. Our credit derivative portfolio consists of traded credit default swap indices and risk participation agreements. Additional descriptions of our credit derivatives are provided in Note 8 (“Derivatives and Hedging Activities”) beginning on page 144 of our 2024 Form 10-K under the heading “Credit Derivatives.”

The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at March 31, 2025, and December 31, 2024. The notional amount represents the amount that the seller could

be required to pay. The payment/performance risk shown in the table represents a weighted average of the default

probabilities for all reference entities in the respective portfolios. These default probabilities are implied from

observed credit indices in the credit default swap market, which are mapped to reference entities based on Key’s

internal risk rating.

			March 31, 2025												December 31, 2024
Dollars in millions			Notional Amount			Average Term (Years)			Payment / Performance Risk						Notional Amount			Average Term (Years)			Payment / Performance Risk
Other			$	5		5.79			2.22		%				$	2		7.64			2.03		%
Total credit derivatives sold			$	5		—			—						$	2		—			—

Credit Risk Contingent Features

We have entered into certain derivative contracts that require us to post collateral to the counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to our long-term senior unsecured credit ratings with Moody’s and S&P. Collateral requirements also are based on minimum transfer amounts, which are specific to each Credit Support

Annex (a component of the ISDA Master Agreement) that we have signed with the counterparties. In a limited number of instances, counterparties have the right to terminate their ISDA Master Agreements with us if our ratings fall below a certain level, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At March 31, 2025, KeyBank’s rating was “Baa1” with Moody’s and “BBB+” with S&P, and KeyCorp’s rating was “Baa2” with Moody’s and “BBB” with S&P. Refer to the table below for the aggregate fair value of all derivative contracts with credit risk contingent features held by KeyBank that were in a net liability position.

Dollars in millions			March 31, 2025						December 31, 2024
Net derivative liabilities with credit-risk contingent features			$	(303)					$	(83)
Collateral posted			264						80

As of March 31, 2025, and December 31, 2024, the fair value of additional collateral that could be required to be posted as a result of the credit risk related contingent features being triggered was immaterial to Key’s consolidated financial statements. At March 31, 2025, and December 31, 2024, only KeyBank held derivative contracts with credit risk contingent features.

8. Mortgage Servicing Assets

We originate and periodically sell commercial and residential mortgage loans but continue to service those loans for the buyers. We also may purchase the right to service commercial mortgage loans from other lenders. We record a servicing asset if we purchase or retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Additional information pertaining to the accounting for mortgage and other servicing assets is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Servicing Assets” beginning on page 117 of our 2024 Form 10-K.

Commercial

Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows:

			Three months ended March 31,
Dollars in millions			2025			2024
Balance at beginning of period			$	609		$	638
Servicing retained from loan sales			15			18
Purchases			4			6
Amortization			(31)			(31)
Balance at end of period			$	597		$	631
Fair value at end of period			$	805		$	846

The fair value of commercial mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The range and weighted average of the significant unobservable inputs used to determine the fair value of our commercial mortgage servicing assets at March 31, 2025, and March 31, 2024, along with the valuation techniques, are shown in the following table:

						March 31, 2025												March 31, 2024
Valuation Technique			Significant Unobservable Input			Range						Weighted Average						Range						Weighted Average
Discounted cash flow			Expected defaults			1.00		%	2.00		%	1.01		%				1.00		%	2.00		%	1.01		%
			Residual cash flows discount rate			6.97		%	10.65		%	10.35		%				7.41		%	10.65		%	10.28		%
			Escrow earn rate			4.60		%	4.75		%	4.74		%				5.00		%	5.09		%	5.00		%
			Loan assumption rate			—		%	2.53		%	2.00		%				—		%	2.16		%	1.97		%

If these economic assumptions change or prove incorrect, the fair value of commercial mortgage servicing assets may also change. Expected credit losses, escrow earn rates, and discount rates are critical to the valuation of commercial mortgage servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates and reflect historical data associated with the commercial mortgage loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. A decrease in the value assigned to the escrow earn rates would cause a decrease in the fair value of our commercial mortgage servicing assets. An increase in the assumed default rates of commercial mortgage loans or an increase in the assigned discount rates would cause a decrease in the fair value of our commercial mortgage servicing assets. Prepayment activity on commercial serviced loans does not significantly

impact the valuation of our commercial mortgage servicing assets. Unlike residential mortgages, commercial mortgages experience significantly lower prepayments due to certain contractual restrictions affecting the borrower’s ability to prepay the mortgage.

The amortization of commercial servicing assets is determined in proportion to, and over the period of, the estimated net servicing income. The amortization of commercial servicing assets for each period, as shown in the table at the beginning of this note, is recorded as a reduction to contractual fee income. The contractual fee income from servicing commercial mortgage loans totaled $107 million for the three-month period ended March 31, 2025, and $87 million for the three-month period ended March 31, 2024. This fee income was offset by $31 million of amortization for the three-month period ended March 31, 2025, and $31 million for the three-month period ended March 31, 2024. Both the contractual fee income and the amortization are recorded, net, in “commercial mortgage servicing fees” on the income statement.

Residential

Changes in the carrying amount of residential mortgage servicing assets are summarized as follows:

			Three months ended March 31,
Dollars in millions			2025			2024
Balance at beginning of period			$	111		$	108
Servicing retained from loan sales			3			2
Amortization			(3)			(2)
Balance at end of period			$	111		$	108
Fair value at end of period			$	138		$	133

The fair value of mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at March 31, 2025, and March 31, 2024, along with the valuation techniques, are shown in the following table:

						March 31, 2025												March 31, 2024
Valuation Technique			Significant Unobservable Input			Range						Weighted Average						Range						Weighted Average
Discounted cash flow			Prepayment speed			5.54		%	29.62		%	7.77		%				6.29		%	43.74		%	7.68		%
			Discount rate			6.50		%	8.75		%	6.61		%				6.50		%	8.75		%	6.59		%
			Servicing cost			$	70.00		$	4,332		$	76.54					$	70.00		$	3,582		$	74.91

If these economic assumptions change or prove incorrect, the fair value of residential mortgage servicing assets may also change. Prepayment speed, discount rates, and servicing cost are critical to the valuation of residential mortgage servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates and reflect historical data associated with the residential mortgage loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. An

increase in the prepayment speed would cause a decrease in the fair value of our residential mortgage servicing

assets. An increase in the assigned discount rates and servicing cost assumptions would cause a decrease in the

fair value of our residential mortgage servicing assets.

The amortization of residential servicing assets for March 31, 2025, as shown in the table above, is recorded as a reduction to contractual fee income. The contractual fee income from servicing residential mortgage loans totaled $9 million for the three-month period ended March 31, 2025, and $9 million for the three-month period ended March 31, 2024. This fee income was offset by $3 million of amortization for the three-month period ended March 31, 2025, and $2 million for the three-month period ended March 31, 2024. Both the contractual fee income and the amortization are recorded, net, in “consumer mortgage income” on the income statement.

9. Leases

As a lessee, we enter into leases of land, buildings, and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 152 of our 2024 Form 10-K.

Lessor Equipment Leasing

Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset.

Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the Consolidated Statements of Income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the Consolidated Statements of Income. The components of equipment leasing income are summarized in the table below:

			Three months ended March 31,
Dollars in millions			2025			2024
Sales-type and direct financing leases
Interest income on lease receivable			$	15		$	18
Interest income related to accretion of unguaranteed residual asset			2			3
Interest income on deferred fees and costs			5			5
Total sales-type and direct financing lease income			$	22		$	26
Operating leases
Operating lease income related to lease payments			$	12		$	18
Other operating leasing gains (losses)			(3)			6
Total operating lease income and other leasing gains			9			24
Total lease income			$	31		$	50

10. Goodwill

Our annual goodwill impairment testing is performed as of October 1 each year, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. A quantitative or qualitative testing approach may be used. Additional information pertaining to our accounting policy for goodwill and other intangible assets is summarized in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Goodwill and Other Intangible Assets” beginning on page 117 of our 2024 Form 10-K. There were no changes to goodwill balances in the first quarter of 2025.

The carrying amount of goodwill by reporting segment is presented in the following table:

Dollars in millions			Consumer Bank			Commercial Bank			Total
BALANCE AT MARCH 31, 2024			$	1,819		$	933		$	2,752
BALANCE AT DECEMBER 31, 2024			$	1,819		$	933		$	2,752
BALANCE AT MARCH 31, 2025			$	1,819		$	933		$	2,752

11. Variable Interest Entities

Our significant VIEs are summarized below. Additional information pertaining to the criteria used in determining if an entity is a VIE is included in Note 13 (“Variable Interest Entities”) beginning on page 156 of our 2024 Form 10-K.

LIHTC and NMTC investments. We had $2.4 billion and $2.5 billion of investments in LIHTC operating partnerships at March 31, 2025, and December 31, 2024, respectively. These investments are recorded in “accrued income and other assets” on our Consolidated Balance Sheets. We do not have any loss reserves recorded related to these investments because we believe the likelihood of any loss to be remote. For all legally binding, unfunded equity commitments, we increase our recognized investment and recognize a liability. As of March 31, 2025, and December 31, 2024, we had liabilities of $1.3 billion and $1.4 billion, respectively, related to investments in qualified affordable housing projects, which are recorded in “accrued expenses and other liabilities” on our Consolidated Balance Sheets. We continue to invest in these LIHTC operating partnerships.

The assets and liabilities presented in the table below convey the size of KCDC’s direct and indirect investments at March 31, 2025, and December 31, 2024. As these investments represent unconsolidated VIEs, the assets and liabilities of the investments themselves are not recorded on our Consolidated Balance Sheets. Additional

information pertaining to our LIHTC investments is included in Note 13 (“Variable Interest Entities”) beginning on page 156 of our 2024 Form 10-K.

			Unconsolidated VIEs
Dollars in millions			Total Assets			Total Liabilities			Maximum Exposure to Loss
March 31, 2025
LIHTC investments			$	9,959		$	4,584		$	2,877
December 31, 2024
LIHTC investments			$	9,901		$	4,468		$	2,996

We had $29 million and $29 million in NMTC investments at March 31, 2025 and December 31, 2024, respectively. These investments are recorded in “accrued income and other assets” on our Consolidated Balance Sheets.

We amortize our LIHTC and NMTC investments over the period that we expect to receive the tax benefits. During the three months ended March 31, 2025, we recognized $68 million of amortization, $66 million of tax credits and $17 million of other tax benefits associated with these investments within “income taxes” on our income statement. During the three months ended March 31, 2024, we recognized $55 million of amortization, $54 million of tax credits and $13 million of other tax benefits associated with these investments within “income taxes” on our income statement.

Principal investments. Our maximum exposure to loss associated with indirect principal investments consists of the investments’ fair value plus any unfunded equity commitments. The fair value of our indirect principal investments totaled $13 million and $14 million at March 31, 2025 and December 31, 2024, respectively. These investments are recorded in “other investments” on our Consolidated Balance Sheets. The table below reflects the size of the private equity funds in which we were invested as well as our maximum exposure to loss in connection with these investments at March 31, 2025, and December 31, 2024.

			Unconsolidated VIEs
Dollars in millions			Total Assets			Total Liabilities			Maximum Exposure to Loss
March 31, 2025
Indirect investments			$	2,210		$	3		$	14
December 31, 2024
Indirect investments			$	2,352		$	3		$	15

Through our principal investing entities, we have formed and funded operating entities that provide management and other related services to our investment company funds, which directly invest in portfolio companies. These entities had no assets at March 31, 2025, and December 31, 2024, that can be used to settle the entities’ obligations. The entities had no liabilities at March 31, 2025, and December 31, 2024, and other equity investors have no recourse to our general credit.

Additional information on our indirect and direct principal investments is provided in Note 6 (“Fair Value Measurements”) beginning on page 133 and in Note 13 (“Variable Interest Entities “) beginning on page 156 of our 2024 Form 10-K.

Other unconsolidated VIEs. We are involved with other various entities in the normal course of business which we have determined to be VIEs. We have determined that we are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact their economic performance or hold a variable interest that could potentially be significant. The table below shows our assets and liabilities associated with these unconsolidated VIEs at March 31, 2025, and December 31, 2024. These assets are recorded in “accrued income and other assets,” “other investments,” “securities available for sale,” “held-to-maturity securities,” and “loans, net of unearned income” on our Consolidated Balance Sheets. Of the total balance as of March 31, 2025, $231 million related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans. Additional information pertaining to our other unconsolidated VIEs is included in Note 13 (“Variable Interest Entities“) under the heading “Other unconsolidated VIEs” on page 158 of our 2024 Form 10-K.

			Other unconsolidated VIEs
Dollars in millions			Total Assets			Total Liabilities
March 31, 2025
Other unconsolidated VIEs			$	668		$	1
December 31, 2024
Other unconsolidated VIEs			$	733		$	1

12. Income Taxes

Income Tax Provision

In accordance with the applicable accounting guidance, the principal method established for computing the provision for income taxes in interim periods requires us to make our best estimate of the effective tax rate expected to be applicable for the full year. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes.

The effective tax rate, which is the provision for income taxes as a percentage of income before income taxes, was 21.2% for the first quarter of 2025 and 21.3% for the first quarter of 2024. The effective tax rates were less than our combined federal and state statutory tax rate of 24.2%, primarily due to income from investments in tax-advantaged assets such as corporate-owned life insurance, tax credits associated with low-income housing investments, and periodic adjustments to our tax reserves.

Deferred Taxes

At March 31, 2025, we had a net deferred tax asset of $1.4 billion, compared to a net deferred tax asset of $1.6 billion at December 31, 2024, which are included in “accrued income and other assets” on the balance sheet. The deferred tax asset is primarily related to market fluctuations in the investment security portfolio accounted for in other comprehensive income.

To determine the amount of deferred tax assets that are more likely than not to be realized, and therefore recorded, we conduct a quarterly assessment of all available evidence. This evidence includes, but is not limited to, taxable income in prior periods, projected future taxable income, and projected future reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo change. Based on these criteria, we had a valuation allowance of $15 million at March 31, 2025, and $15 million at December 31, 2024. The valuation allowance is associated with federal and state capital loss carryforwards.

Unrecognized Tax Benefits

At March 31, 2025, Key’s unrecognized tax benefits were $40 million. As permitted under the applicable accounting guidance for income taxes, it is our policy to recognize interest and penalties related to unrecognized tax benefits in “income tax expense.”

Pre-1988 Bank Reserves Acquired in a Business Combination

Retained earnings of KeyBank included approximately $92 million of allocated bad debt deductions for which no income taxes have been recorded. Under current federal law, these reserves are subject to recapture into taxable income if KeyBank, or any successor, fails to maintain its bank status under the Internal Revenue Code or makes non-dividend distributions or distributions greater than its accumulated earnings and profits. No deferred tax liability has been established as these events are not expected to occur in the foreseeable future.

13. Discontinued Operations

Discontinued operations primarily includes our government-guaranteed and private education lending business. At March 31, 2025, and December 31, 2024, approximately $243 million and $257 million, respectively, of education loans are included in discontinued assets on the Consolidated Balance Sheets. Net interest income after provision for credit losses for this business is not material and is included in income (loss) from discontinued operations, net of taxes on the Consolidated Statements of Income.

14. Employee Benefits

Pension Plans

The components of net pension cost (benefit) for all funded and unfunded plans are recorded in Other expense and are summarized in the following table. For more information on our Pension Plans and Other Postretirement Benefit Plans, see Note 18 (“Employee Benefits”) beginning on page 164 of our 2024 Form 10-K.

			Three months ended March 31,
Dollars in millions			2025			2024
Interest cost on PBO			$	11		$	10
Expected return on plan assets			(11)			(10)
Amortization of losses			2			3
Settlement loss			—			—
Net pension cost			$	2		$	3

15. Trust Preferred Securities Issued by Unconsolidated Subsidiaries

We own the outstanding common stock of business trusts formed by us that issued corporation-obligated, mandatorily redeemable, trust preferred securities. The trusts used the proceeds from the issuance of their trust preferred securities and common stock to buy debentures issued by KeyCorp. These debentures are the trusts’ only assets; the interest payments from the debentures finance the distributions paid on the mandatorily redeemable trust preferred securities. The outstanding common stock of these business trusts is recorded in Other investments on the Consolidated Balance Sheets. We unconditionally guarantee the following payments or distributions on behalf of the trusts:

• required distributions on the trust preferred securities;

• the redemption price when a capital security is redeemed; and

• the amounts due if a trust is liquidated or terminated.

The Regulatory Capital Rules require us to treat our mandatorily redeemable trust preferred securities as Tier 2 capital.

The trust preferred securities, common stock, and related debentures are summarized as follows:

Dollars in millions			Trust Preferred Securities, Net of Discount (a)			Common Stock			Principal Amount of Debentures, Net of Discount (b)			Interest Rate of Trust Preferred Securities and Debentures (c)			Maturity of Trust Preferred Securities and Debentures
March 31, 2025
KeyCorp Capital I			$	156		$	6		$	162		5.312		%	2028
KeyCorp Capital II			86			4			90			6.875			2029
KeyCorp Capital III			111			4			115			7.750			2029
HNC Statutory Trust III			21			1			22			5.990			2035
HNC Statutory Trust IV			18			1			19			5.829			2037
Willow Grove Statutory Trust I			21			1			22			5.871			2036
Westbank Capital Trust II			8			—			8			6.756			2034
Westbank Capital Trust III			8			—			8			6.756			2034
Total			$	429		$	17		$	446		6.392		%	—
December 31, 2024			$	427		$	17		$	444		6.519		%	—

(a)The trust preferred securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of trust preferred securities carries an interest rate identical to that of the related debenture. The principal amount of certain debentures include debt issuance costs and basis adjustments related to fair value hedges totaling $16 million and $14 million at March 31, 2025, and December 31, 2024, respectively. See Note 7 (“Derivatives and Hedging Activities”) for an explanation of fair value hedges.

(b)We have the right to redeem these debentures. If the debentures purchased by KeyCorp Capital I, HNC Statutory Trust III, Willow Grove Statutory Trust I, HNC Statutory Trust IV, Westbank Capital Trust II, or Westbank Capital Trust III are redeemed before they mature, the redemption price will be the principal amount, plus any accrued but unpaid interest. If the debentures purchased by KeyCorp Capital II or KeyCorp Capital III are redeemed before they mature, the redemption price will be the greater of: (i) the principal amount, plus any accrued but unpaid interest, or (ii) the sum of the present values of principal and interest payments discounted at the Treasury Rate (as defined in the applicable indenture), plus 20 basis points for KeyCorp Capital II or 25 basis points for KeyCorp Capital III, or 50 basis points in the case of redemption upon either a tax or a capital treatment event for either KeyCorp Capital II or KeyCorp Capital III, plus any accrued but unpaid interest.

(c)The interest rates for the trust preferred securities issued by KeyCorp Capital II and KeyCorp Capital III are fixed. The trust preferred securities issued by KeyCorp Capital I, HNC Statutory Trust III, HNC Statutory Trust IV, Willow Grove Statutory Trust I, Westbank Capital Trust II, and Westbank Capital Trust III have a floating interest rate, based on three-month CME term SOFR plus 26.161 basis points, that reprices quarterly. The total interest rates are weighted-average rates.

16. Contingent Liabilities and Guarantees

Legal Proceedings

Litigation. From time to time, in the ordinary course of business, we and our subsidiaries are subject to various litigation, investigations, and administrative proceedings. Private, civil litigation may range from individual actions involving a single plaintiff to putative class action lawsuits with potentially thousands of class members, as well as arbitrations and mass arbitrations. Investigations may involve both formal and informal proceedings, by both government agencies and self-regulatory bodies. These matters may involve claims for substantial monetary relief. At times, these matters may present novel claims or legal theories. Due to the complex nature of these various other matters, it may be years before some matters are resolved. While it is impossible to ascertain the ultimate resolution or range of financial liability, based on information presently known to us, we do not believe there is any matter to which we are a party, or involving any of our properties, that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on our financial condition. We continually monitor and reassess the potential materiality of these litigation matters. We note, however, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution will not exceed established reserves. As a result, the outcome of a particular matter, or a combination of matters, may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period.

Guarantees

We are a guarantor in various agreements with third parties. The following table shows the types of guarantees that we had outstanding at March 31, 2025. Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Contingencies and Guarantees” beginning on page 118 of our 2024 Form 10-K.

March 31, 2025			Maximum Potential Undiscounted Future Payments			Liability Recorded
Dollars in millions
Financial guarantees:
Standby letters of credit			$	4,403		$	71
Recourse agreement with FNMA			7,817			60
Residential mortgage reserve			3,398			8
Written put options (a)			1,839			47
Total			$	17,457		$	186

(a)The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees.

We determine the payment/performance risk associated with each type of guarantee described below based on the probability that we could be required to make the maximum potential undiscounted future payments shown in the preceding table. We use a scale of low (0% to 30% probability of payment), moderate (greater than 30% to 70% probability of payment), or high (greater than 70% probability of payment) to assess the payment/performance risk, and have determined that the payment/performance risk associated with each type of guarantee outstanding at March 31, 2025, is low. Information pertaining to the nature of each of the guarantees listed below is included in Note 22 (“Commitments, Contingent Liabilities, and Guarantees”) under the heading “Guarantees” beginning on page 172 of our 2024 Form 10-K.

Standby letters of credit. At March 31, 2025, our standby letters of credit had a remaining weighted-average life of 1.4 years, with remaining actual lives ranging from less than 1 year to 9.7 years.

Recourse agreement with FNMA. At March 31, 2025, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 6.2 years, and the unpaid principal balance outstanding of loans sold by us as a participant was $24.7 billion. The maximum potential amount of undiscounted future payments that we could be required to make under this program, as shown in the preceding table, is equal to approximately 31.6% of the principal balance of loans outstanding at March 31, 2025. FNMA delegates responsibility for originating, underwriting, and servicing mortgages, and we assume a limited portion of the risk of loss during the remaining term on each commercial mortgage loan that we sell to FNMA. We maintain a reserve for such potential losses of $60 million that we believe approximates the fair value of our liability for the guarantee as described in Note 4 (“Asset Quality”).

Residential Mortgage Banking. At March 31, 2025, the unpaid principal balance outstanding of loans sold by us in this program was $11.3 billion. The maximum potential amount of undiscounted future payments that we could be required to make under this program, as shown in the preceding table, is equal to approximately 30% of the principal balance of loans outstanding at March 31, 2025.

Our liability for estimated repurchase obligations on loans sold, which is included in “accrued expenses and other liabilities” on the Consolidated Balance Sheets, was $8 million at March 31, 2025. For more information on our residential mortgages, see Note 8 (“Mortgage Servicing Assets”).

Written put options. In the ordinary course of business, we “write” put options for clients that wish to mitigate their exposure to changes in interest rates and commodity prices. At March 31, 2025, our written put options had an average life of 1.3 years. These written put options are accounted for as derivatives at fair value, as further discussed in Note 7 (“Derivatives and Hedging Activities”).

Written put options where the counterparty is a broker-dealer or bank are accounted for as derivatives at fair value but are not considered guarantees since these counterparties typically do not hold the underlying instruments. In addition, we are a purchaser and seller of credit derivatives, which are further discussed in Note 7 (“Derivatives and Hedging Activities”).

Other Off-Balance Sheet Risk

Other off-balance sheet risk stems from financial instruments that do not meet the definition of a guarantee as specified in the applicable accounting guidance, and from other relationships. Additional information pertaining to types of other off-balance sheet risk is included in Note 22 (“Commitments, Contingent Liabilities, and Guarantees”) under the heading “Other Off-Balance Sheet Risk” on page 174 of our 2024 Form 10-K.

17. Accumulated Other Comprehensive Income

Our changes in AOCI for the three months ended March 31, 2025, and March 31, 2024, are as follows:

Dollars in millions			Unrealized gains (losses) on securities available for sale			Unrealized gains (losses) on derivative financial instruments						Net pension and postretirement benefit costs			Total
Balance at December 31, 2024			$	(2,734)		$	(434)					$	(302)		$	(3,470)
Other comprehensive income before reclassification, net of income taxes			424			122						64			610
Amounts reclassified from AOCI, net of income taxes (a)			—			71						2			73
Net current-period other comprehensive income, net of income taxes			424			193						66			683
Balance at March 31, 2025			$	(2,310)		$	(241)					$	(236)		$	(2,787)

Balance at December 31, 2023			$	(4,190)		$	(763)					$	(276)		$	(5,229)
Other comprehensive income before reclassification, net of income taxes			(153)			(99)						(1)			(253)
Amounts reclassified from AOCI, net of income taxes (a)			2			164						2			168
Net current-period other comprehensive income, net of income taxes			(151)			65						1			(85)
Balance at March 31, 2024			$	(4,341)		$	(698)					$	(275)		$	(5,314)

(a)See table below for details about these reclassifications.

Our reclassifications out of AOCI for the three months ended March 31, 2025, and March 31, 2024, are as follows:

			Three months ended March 31,						Affected Line Item in the Consolidated Statement of Income
Dollars in millions			2025			2024
Unrealized gains (losses) on securities available for sale
Realized gains			$	—		$	—		Net securities gains (losses)
Realized losses			—			(3)			Net securities gains (losses)
			—			(3)			Income (loss) from continuing operations before income taxes
			—			(1)			Income taxes
			$	—		$	(2)		Income (loss) from continuing operations
Unrealized gains (losses) on derivative financial instruments
Interest rate			$	(93)		$	(216)		Interest income — Loans
Interest rate			(1)			—			Interest expense — Long-term debt
Interest rate			—			1			Investment banking and debt placement fees
			(94)			(215)			Income (loss) from continuing operations before income taxes
			(23)			(51)			Income taxes
			$	(71)		$	(164)		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses			$	(2)		$	(3)		Other expense
Settlement loss			—			—			Other expense
Amortization of unrecognized prior service credit			—			—			Other expense
			(2)			(3)			Income (loss) from continuing operations before income taxes
			—			(1)			Income taxes
			$	(2)		$	(2)		Income (loss) from continuing operations

18. Shareholders' Equity

Comprehensive Capital Plan

On March 13, 2025, Key announced that its Board of Directors has authorized a share repurchase program pursuant to which we may purchase up to $1.0 billion of KeyCorp Common Shares, in the open market or in privately negotiated transactions.

During the first quarter of 2025, Key did not complete any open market share repurchases. We repurchased $35 million of shares related to equity compensation programs in the first quarter of 2025.

Consistent with our capital plan, the Board declared a quarterly dividend of $.205 per Common Share for the first quarter of 2025.

Preferred Stock

The following table summarizes our preferred stock at March 31, 2025.

Preferred stock series			Amount outstanding (in millions)			Book value (net of capital surplus)			Shares authorized and outstanding			Par value			Liquidation preference			Ownership interest per depositary share			Liquidation preference per depositary share			First quarter 2025 dividends paid per depositary share
5.000% Fixed-to-Floating Rate Perpetual Noncumulative Series D			$	525		$	519		21,000			$	1		$	25,000		1/25th			$	1,000		$	12.50
6.125% Fixed-to-Floating Rate Perpetual Noncumulative Series E			500			490			500,000			1			1,000			1/40th			25			.382813
5.650% Fixed Rate Perpetual Noncumulative Series F			425			412			425,000			1			1,000			1/40th			25			.353125
5.625% Fixed Rate Perpetual Non-Cumulative Series G			450			435			450,000			1			1,000			1/40th			25			.351563
6.200% Fixed Rate Reset Perpetual Non-Cumulative Series H			600			590			600,000			1			1,000			1/40th			25			.387500

19. Business Segment Reporting

The following is a description of the segments and their primary businesses at March 31, 2025.

Consumer Bank

The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint as well as healthcare professionals nationally through our Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, mortgage and home equity, student loan refinancing, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist institutional, non-profit, and high-net-worth clients with their banking, trust, portfolio management, charitable giving, and related needs.

Commercial Bank

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

Other

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

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

The table below shows selected financial data for our business segments for the three-month periods ended March 31, 2025, and March 31, 2024. Capital is assigned to each business segment based on a combination of regulatory and economic equity.

Three months ended March 31,			Consumer Bank									Commercial Bank									Other									Total Key
Dollars in millions			2025			2024						2025			2024						2025			2024						2025			2024
SUMMARY OF OPERATIONS
Net interest income (TE)			$	648		$	532					$	534		$	397					$	(77)		$	(43)					$	1,105		$	886
Noninterest income			226			225						408			401						34			21						668			647
Total revenue (TE) (a)			874			757						942			798						(43)			(22)						1,773			1,533
Provision for credit losses			43			(2)						75			102						—			1						118			101
Personnel expense			219			210						187			160						274			304						680			674
Other direct noninterest expense			141			161						77			95						233			210						451			466
Support and overhead			316			333						198			187						(514)			(517)						—			3
Income (loss) from continuing operations before income taxes (TE)			155			55						405			254						(36)			(20)						524			289
Allocated income taxes and TE adjustments			37			14						84			49						(3)			7						118			70
Income (loss) from continuing operations			118			41						321			205						(33)			(27)						406			219
Income (loss) from discontinued operations, net of taxes			—			—						—			—						(1)			—						(1)			—
Net income (loss)			$	118		$	41					$	321		$	205					$	(34)		$	(27)					$	405		$	219
AVERAGE BALANCES (b)
Loans and leases			$	36,819		$	39,919					$	67,056		$	70,633					$	479		$	482					$	104,354		$	111,034
Total assets (a)			39,806			42,710						76,707			80,000						69,577			63,158						186,090			185,868
Deposits			88,306			84,075						57,436			56,331						2,800			2,472						148,542			142,878

(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.

(b)From continuing operations.

20. Revenue from Contracts with Customers

The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three-month periods ended March 31, 2025, and March 31, 2024. The development and application of the methodologies that we use to allocate items among our business segments is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocations drivers, changes in the risk profile of a particular business, or changes in our organizational structure.

			Three months ended March 31, 2025												Three months ended March 31, 2024
Dollars in millions			Consumer Bank			Commercial Bank			Total Contract Revenue						Consumer Bank			Commercial Bank			Total Contract Revenue
NONINTEREST INCOME
Trust and investment services income			$	113		$	19		$	132					$	109		$	17		$	126
Investment banking and debt placement fees			—			127			127						—			130			130
Services charges on deposit accounts			33			35			68						34			29			63
Cards and payments income			42			40			82						43			34			77
Other noninterest income			2			—			2						3			—			3
Total revenue from contracts with customers			$	190		$	221		$	411					$	189		$	210		$	399
Other noninterest income (a)									$	223											$	227
Noninterest income from other segments(b)									34												21
Total noninterest income									$	668											$	647

(a)Noninterest income considered earned outside the scope of contracts with customers.

(b)Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 19 (“Business Segment Reporting”) for more information.

We had no material contract assets or contract liabilities as of March 31, 2025, and March 31, 2024.

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of KeyCorp

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of KeyCorp as of March 31, 2025, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2025 and 2024, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of KeyCorp as of December 31, 2024, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated February 21, 2025, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of KeyCorp's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to KeyCorp in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Cleveland, Ohio
May 6, 2025