Item 2. Management’s Discussion & Analysis of Financial Condition & Results of Operations

Introduction

This section reviews the financial condition and results of operations of KeyCorp and its subsidiaries for the quarterly periods ended March 31, 2026, and March 31, 2025. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends in greater depth. When you read this discussion, you should also refer to the consolidated financial statements and related notes in this report. The page locations of specific sections and notes that we refer to are presented in the Table of Contents.

References to our “2025 Form 10-K” refer to our Form 10-K for the year ended December 31, 2025, which has been filed with the SEC and is available on its website (www.sec.gov) and on our website (www.key.com/ir).

Terminology

Throughout this discussion, references to “Key,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of KeyCorp and its subsidiaries. “KeyCorp” refers solely to the parent holding company, and “KeyBank” refers solely to KeyCorp’s subsidiary bank, KeyBank National Association. “KeyBank (consolidated)” refers to the consolidated entity consisting of KeyBank and its subsidiaries.

We want to explain some industry-specific terms at the outset so you can better understand the discussion that follows.

• We use the phrase continuing operations in this document to mean all of our businesses other than our government-guaranteed and private education lending business, which are accounted for as discontinued operations.

• We engage in capital markets activities primarily through business conducted by our Commercial Bank segment*.* These activities encompass a variety of products and services. Among other things, we trade securities as a dealer, enter into derivative contracts (both to accommodate clients’ financing needs and to mitigate certain risks), and conduct transactions in foreign currencies (to accommodate clients’ needs).

• For regulatory purposes, capital is divided into two classes. Federal regulations currently prescribe that at least one-half of a bank or BHC’s total risk-based capital must qualify as Tier 1 capital. Both total and Tier 1 capital serve as bases for several measures of capital adequacy, which is an important indicator of financial stability and condition. Banking regulators evaluate a component of Tier 1 capital, known as Common Equity Tier 1, under the Regulatory Capital Rules. The “Capital” section of this report under the heading “Capital adequacy” provides more information on total capital, Tier 1 capital, and the Regulatory Capital Rules, including Common Equity Tier 1, and describes how these measures are calculated.

The acronyms and abbreviations identified below are used in the Management’s Discussion & Analysis of Financial Condition & Results of Operations as well as in the Notes to Consolidated Financial Statements (Unaudited). You may find it helpful to refer back to this page as you read this report.

ABO: Accumulated benefit obligation. ALCO: Asset/Liability Management Committee. ALLL: Allowance for loan and lease losses. A/LM: Asset/liability management. AML: Anti-money laundering. AOCI: Accumulated other comprehensive income (loss). ASC: Accounting Standards Codification. ASU: Accounting Standards Update. ATMs: Automated teller machines. BSA: Bank Secrecy Act. BHCA: Bank Holding Company Act of 1956, as amended. BHCs: Bank holding companies. Board: KeyCorp Board of Directors. CAPM: Capital Asset Pricing Model. CCAR: Comprehensive Capital Analysis and Review. CECL: Current Expected Credit Losses. CFPB: Consumer Financial Protection Bureau, also known as the Bureau of Consumer Financial Protection. CFTC: Commodities Futures Trading Commission. CMBS: Commercial mortgage-backed securities. CMO: Collateralized mortgage obligation. Common Shares: KeyCorp common shares, $1 par value. DCF: Discounted cash flow. DIF: Deposit Insurance Fund of the FDIC. Dodd-Frank Act: Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. EAD: Exposure at default. EBITDA: Earnings before interest, taxes, depreciation, and amortization. EPS: Earnings per share. ERBA: Expanded risk-based approach. ERISA: Employee Retirement Income Security Act of 1974. ERM: Enterprise risk management. EVE: Economic value of equity. FASB: Financial Accounting Standards Board. FDIA: Federal Deposit Insurance Act, as amended. FDIC: Federal Deposit Insurance Corporation. Federal Reserve: Board of Governors of the Federal Reserve System. FHLB: Federal Home Loan Bank of Cincinnati. FHLMC: Federal Home Loan Mortgage Corporation. FICO: Fair Isaac Corporation. FINRA: Financial Industry Regulatory Authority. FNMA: Federal National Mortgage Association. FSOC: Financial Stability Oversight Council. FTP: Funds transfer pricing.			FVA: Fair value of employee benefit plan assets. GAAP: U.S. generally accepted accounting principles. GNMA: Government National Mortgage Association. IDI: Insured depository institution. IRS: Internal Revenue Service. ISDA: International Swaps and Derivatives Association. KBCM: KeyBanc Capital Markets, Inc. KCC: Key Capital Corporation. KCDC: Key Community Development Corporation. KCIC: Key Community Investment Capital LLC. LCR: Liquidity coverage ratio. LGD: Loss given default. LIHTC: Low-income housing tax credit. LTV: Loan-to-value. Moody’s: Moody’s Investor Services, Inc. MTRM: Market & Treasury Risk Management. N/A: Not applicable. NAV: Net asset value. NFA: National Futures Association. N/M: Not meaningful. NMTC: New market tax credit. NYSE: New York Stock Exchange. OBBBA: One Big Beautiful Bill Act. OCC: Office of the Comptroller of the Currency. OCI: Other comprehensive income (loss). OREO: Other real estate owned. PBO: Projected benefit obligation. PCCR: Purchased credit card relationship. PCD: Purchased credit deteriorated. PD: Probability of default. RMBS: Residential mortgage-backed securities. S&P: Standard and Poor’s Ratings Services, a Division of The McGraw-Hill Companies, Inc. SEC: U.S. Securities & Exchange Commission. Scotiabank: The Bank of Nova Scotia SIFIs: Systemically important financial institutions, including large, interconnected BHCs and nonbank financial companies designated by FSOC for supervision by the Federal Reserve. SOFR: Secured Overnight Financing Rate. TE: Taxable-equivalent. TROC: Treasury Risk Oversight Committee. U.S. Treasury: United States Department of the Treasury. VaR: Value at risk. VEBA: Voluntary Employee Beneficiary Association. VIE: Variable interest entity.

Forward-looking Statements

From time to time, we have made or will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” “will,” “would,” “should,” “could,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations. Our disclosures in this report contain forward-looking statements. We may also make forward-looking statements in other documents filed with or furnished to the SEC. In addition, we may make forward-looking statements orally to analysts, investors, representatives of the media and others.

Forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this report can or will be achieved. Factors that could cause our actual results to differ from those described in forward-looking statements include, but are not limited to:

• the extensive regulation of the U.S. financial services industry;

• complex and evolving laws and regulations regarding privacy and cybersecurity;

• operational or risk management failures by us or critical third parties;

• breaches of security or failures of our technology systems due to technological or other factors and cybersecurity threats;

• an ineffective risk management framework;

• negative outcomes from claims, litigation, arbitration, investigations, or governmental proceedings;

• failure or circumvention of our controls and procedures;

• our exposure to a wide range of climate-related physical risks across different geographical areas;

• evolving capital and liquidity standards under applicable regulatory rules;

• disruption of the U.S. and global financial system and markets, including the impact of inflation, tariffs or other trade policies, political instability, a prolonged shutdown of the U.S. government, a potential global economic downturn or recession, and extended military conflicts;

• unanticipated changes in our liquidity position, including but not limited to, changes in our access to or the cost of funding and our ability to secure alternative funding sources;

• our ability to receive dividends from our subsidiaries, including KeyBank;

• downgrades in our credit ratings or those of KeyBank;

• a worsening of the U.S. economy due to financial, political or other shocks;

• our ability to anticipate interest rate changes and manage interest rate risk;

• deterioration of economic conditions in the geographic regions where we operate;

• the soundness of other financial institutions, including instability in the financial industry;

• our concentrated credit exposure in commercial and industrial loans;

• deterioration of commercial real estate market fundamentals;

• defaults by our loan clients or counterparties;

• adverse changes in credit quality trends;

• declining asset prices;

• deterioration of asset quality and an increase in credit losses;

• geopolitical destabilization, including ongoing military conflicts;

• labor shortages, increases in unemployment rates, and supply chain constraints;

• our ability to develop and effectively use the quantitative models we rely upon in our business planning;

• our ability to timely and effectively implement our strategic initiatives;

• damage to our reputation;

• increased competitive pressure;

• our ability to adapt our products and services to industry standards and consumer preferences;

• our ability to attract and retain talented executives and employees;

• unanticipated adverse effects of strategic partnerships or acquisitions and dispositions of assets or businesses;

• the potential impact of Scotiabank’s significant equity interest in our business;

• inaccurate assumptions or estimates underlying our consolidated financial statements;

• changes in accounting policies, standards, and interpretations; and

• impairment of goodwill.

Any forward-looking statements made by us or on our behalf speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances, except as required by applicable securities laws. Before making an investment decision, you should carefully consider all risks and uncertainties disclosed in our 2025 Form 10-K, in Part II, Item 1A. "Risk Factors" of this report, and in any subsequent reports filed with the SEC by Key, as well as our registration statements under the Securities Act of 1933, as amended, all of which are or will upon filing be accessible on the SEC’s website at www.sec.gov and on our website at www.key.com/ir.

Executive Overview

Key reported $486 million in net income from continuing operations attributable to Key common shareholders, or diluted earnings per share of $0.44, in the first quarter of 2026.

Our actions and results during the first quarter of 2026 support our corporate strategy described in the “Introduction” section under the “Corporate strategy” heading on page 51 of our 2025 Form 10-K.

• Commercial client growth and net new relationship households increased approximately 3% and 2%, respectively, year-over-year, reflecting strong client growth and relationship depth.

• Our noninterest income strength continues to be driven by differentiated fee businesses strategically focused on targeted scale. Our priority fee-based businesses — investment banking, commercial payments, and wealth management – collectively grew 12% year-over-year.

• Our Assets Under Management were $69.8 billion for the first quarter of 2026, up 14.3% year-over-year, driven by net positive cash inflows and market impacts on portfolios.

• Our continuous focus on maintaining our risk discipline has and should continue to position us to perform well through all business cycles. Net charge-offs are tracking in line with our current outlook for the year.

• We ended the quarter with a Common Equity Tier 1 ratio of 11.4%(a), which positions us to continue to support existing and prospective clients.

(a) March 31, 2026 capital ratios are estimates

Business outlook

Consistent with the forward guidance we provided on April 16, 2026, we expect these current year results, that is, full year 2026 vs. full year 2025:

Category						2025 Baseline												FY2026 (vs FY 2025)****(a)
Revenue (TE)(b)						$7,513 Million												up ~7%
Net interest income (TE) (b)						$4,671 Million												up 9 to 10%
Net interest margin																		4Q exit rate: ~3.05%(c)
Noninterest income						$2,842 Million												up 3 - 4%
Noninterest income on an adjusted basis(b)(d)						$2,495 Million												up 5 - 6%
Adjusted noninterest expense(b)						$4,729 Million												up 3 to 4%
Average loans						$105.7 Billion												up 2 - 4%
Average Commercial Loans						$74.5 Billion												up 6 - 8%
Net charge-offs to average loans																		40 to 45 basis points
Effective tax rate																		~22%
Tax-equivalent Effective Rate(e)																		~23%

(a) Ranges are shown on an operating basis.

(b) Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly related GAAP financial measures due to the difficulty in forecasting when future amounts may occur. Such unavailable information could be significant for future results.

(c) Average earning assets stable to 1Q26.

(d) Excluding commercial mortgage servicing fees, operating lease income and other leasing gains, other income, and net securities gains (losses).

(e) Reflects the estimated full year taxable-equivalent adjustment.

We have established the following medium-term targets reflecting expected run rates by the end of 2027:

Return on tangible common equity(a)			15.0%+			Net Interest Margin			3.25%+

(a) Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly related GAAP financial measures due to the difficulty in forecasting when future amounts may occur. Such unavailable information could be significant for future results.

Demographics

Our management structure and basis of presentation is divided into two business segments, Consumer Bank and Commercial Bank. Note 17 (“Business Segment Reporting”) describes the products and services offered by each of these business segments and provides more detailed financial information pertaining to the segments.

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

The Commercial Bank consists of the Commercial and Institutional operating segments. The Commercial operating segment is a full-service, commercial banking platform that focuses primarily 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 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.

Supervision and regulation

The following discussion provides a summary of recent regulatory developments and should be read in conjunction with the disclosure included in our 2025 Form 10-K under the heading “Supervision and Regulation” in Item 1. Business and under the heading “V. Compliance Risk” in Item 1A. Risk Factors as well as the disclosure included in Part II, Item 1A. "Risk Factors" of this report.

Regulatory capital requirements

KeyCorp and KeyBank are subject to regulatory capital requirements that are based largely on the Basel III international capital framework (“Basel III”). The Basel III capital framework and the U.S. implementation of the Basel III capital framework (“Regulatory Capital Rules”) are discussed in more detail in Item 1. Business of our 2025 Form 10-K under the heading “Supervision and Regulation — Regulatory Capital and Liquidity Requirements.”

Under the Regulatory Capital Rules, standardized approach banking organizations, such as KeyCorp and KeyBank, are required to meet the minimum capital and leverage ratios set forth in Figure 1 below. At March 31, 2026, KeyCorp’s ratios under the fully phased-in Regulatory Capital Rules were as set forth in Figure 1.

Figure 1. Minimum Capital Ratios and KeyCorp Ratios Under the Regulatory Capital Rules

Ratios (including stress capital buffer)			Regulatory Minimum Requirement			Stress Capital Buffer (b)			Regulatory Minimum Stress Capital Buffer			KeyCorp March 31, 2026 (c)
Common Equity Tier 1			4.50		%	3.20		%	7.70		%	11.40		%
Tier 1 Capital			6.00			3.20			9.20			13.03
Total Capital			8.00			3.20			11.20			15.18
Leverage (a)			4.00			N/A			4.00			10.47

(a)As a standardized approach banking organization, KeyCorp is not subject to the 3% supplementary leverage ratio requirement.

(b)Stress capital buffer must consist of Common Equity Tier 1 capital. As a standardized approach banking organization, KeyCorp is not subject to the countercyclical capital buffer of up to 2.5% imposed upon an advanced approaches banking organization under the Regulatory Capital Rules. KeyCorp’s stress capital buffer is 3.20% as of October 1, 2025.

(c)March 31, 2026 capital ratios are estimates.

Revised prompt corrective action framework

The federal Prompt Corrective Action (“PCA”) framework under the FDIA groups FDIC-insured depository institutions into one of five prompt corrective action capital categories: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized.” In addition to implementing the Basel III capital framework in the United States, the Regulatory Capital Rules also revised the PCA capital category threshold ratios applicable to FDIC-insured depository institutions such as KeyBank. The revised PCA framework

table in Figure 2 identifies the capital category threshold ratios for a “well capitalized” and an “adequately capitalized” institution under the PCA framework.

Figure 2. "Well Capitalized" and "Adequately Capitalized" Capital Category Ratios under Revised Prompt Corrective Action Framework

Prompt Corrective Action						Capital Category
Ratio						Well Capitalized (a)			Adequately Capitalized
Common Equity Tier 1 Risk-Based						6.50		%	4.50		%
Tier 1 Risk-Based						8.00			6.00
Total Risk-Based						10.00			8.00
Tier 1 Leverage (b)						5.00			4.00

(a)A “well capitalized” institution also must not be subject to any written agreement, order, or directive to meet and maintain a specific capital level for any capital measure.

(b)As a “standardized approach” banking organization, KeyBank is not subject to the 3% supplementary leverage ratio requirement, which became effective January 1, 2018.

As of March 31, 2026, KeyBank (consolidated) satisfied the risk-based and leverage capital requirements necessary to be considered “well capitalized” for purposes of the revised PCA framework. However, investors should not regard this determination as a representation of the overall financial condition or prospects of KeyBank because the PCA framework is intended to serve a limited supervisory function. Moreover, it is important to note that the PCA framework does not apply to BHCs, like KeyCorp.

Recent regulatory capital-related developments

On March 19, 2026, the federal banking agencies issued three proposals that would make significant changes to the Regulatory Capital Rules. The agencies said that these proposals would streamline capital requirements and would better align regulatory capital with risk. One proposal would implement the final elements of the Basel III capital framework (the “Basel III Proposal”). The Basel III Proposal would establish a new approach for calculating risk-based capital ratios, “expanded risk-based approach (“ERBA”)”, that would include requirements for credit risk, equity risk, and operational risk and would increase risk sensitivity by varying capital requirements according to various risk factors. The Basel III Proposal would also establish a new framework for determining market risk capital requirements. The Basel III Proposal would apply to Category I and II banking organizations, and the market risk component of this proposal would also apply to other banking organizations with significant trading activity. All other banking organizations (including Category IV banking organizations such as KeyCorp and KeyBank) would have the option to have their capital requirements determined under the ERBA contained in this proposal.

A second proposal issued by the federal banking agencies on March 19, 2026 would revise the standardized approach for calculating risk-based capital ratios used by most banking organizations, including Category IV banking organizations such as KeyCorp and KeyBank (the “Standardized Approach Proposal”). The Standardized Approach Proposal would increase the calibration and risk sensitivity of risk weights for certain traditional lending activities. Among other things, the proposal would reduce the risk weight applicable to corporate exposures and would introduce a broader range of risk weights for residential mortgages based on more granular risk factors. Also, the Standardized Approach Proposal and the Basel III Proposal would modify the definition of capital by removing the threshold-based deduction for mortgage servicing assets, and the Standardized Approach Proposal would require Category III and IV banking organizations to include most components of AOCI, including net unrealized gains and losses on available-for-sale securities, in regulatory capital subject to a five-year transition.

A third capital-related proposal issued on March 19, 2026 was a proposal from the Federal Reserve to (1) modify the Global Systemically Important Bank (“GSIB”) capital surcharge, which applies to U.S. global systemically important BHCs (not including KeyCorp) and (2) amend the Systemic Risk Report (FR Y-15), which is used to collect systemic risk data from BHCs with total consolidated assets of $100 billion or more (including KeyCorp). The agencies indicated that the capital-related proposals they issued on March 19, 2026 replace the capital-related proposal they issued in July of 2023. Comments on the new proposals are due by June 18, 2026.

Capital planning, stress testing, and stress capital buffer

On June 27, 2025, the Federal Reserve announced the results of the supervisory stress test that it conducted of 22 large BHCs (not including KeyCorp). As a Category IV banking organization subject to a supervisory stress test every other year, KeyCorp was not required to participate in the Federal Reserve’s supervisory stress test in 2025. On August 29, 2025, the Federal Reserve published the updated stress capital buffer requirements for large BHCs, including BHCs like KeyCorp that did not participate in the supervisory stress test in 2025. KeyCorp’s updated stress capital buffer is 3.2% (based on the results of KeyCorp’s 2024 supervisory stress test and adjusted for

KeyCorp’s planned common stock dividends as set forth in KeyCorp’s 2025 capital plan). This stress capital buffer became effective on October 1, 2025. On February 4, 2026, the Federal Reserve announced that it would maintain the current stress capital buffer requirements until 2027 for the BHCs that are subject to its supervisory stress tests (rather than updating the requirements in 2026) so that the Federal Reserve will be able to consider public feedback on its stress test models before setting the new requirements.

See Item 1. Business of our 2025 Form 10-K under the heading “Supervision and Regulation - Regulatory Capital and Liquidity Requirements - Capital planning, stress testing, and stress capital buffer” for a discussion of other developments concerning capital planning, stress testing, and stress capital buffer requirements.

Recovery plans

On March 31, 2026, the OCC issued a final rule to rescind its recovery planning guidelines that applied to banks with average total consolidated assets of at least $100 billion (including KeyBank). In rescinding these guidelines, the OCC stated that the guidelines were overly prescriptive and imposed an unnecessary regulatory burden on the covered institutions. The OCC said that it would still expect all institutions that it regulates to have appropriate risk management processes in place to address all material risks in their operating environment and to maintain a formal contingency funding plan that considers a range of possible stress scenarios, assesses the stability of funding during periods of stress, and provides for a broad range of funding sources under adverse conditions.

Results of Operations

Earnings overview

The following chart provides a reconciliation of net income (loss) from continuing operations attributable to Key common shareholders for the three months ended March 31, 2025, to the three months ended March 31, 2026 (dollars in millions):

Net interest income

One of our principal sources of revenue is net interest income. Net interest income is the difference between interest income received on earning assets (such as loans and securities) and loan-related fee income, and interest expense paid on deposits and borrowings. There are several factors that affect net interest income, including:

• the volume, pricing, mix, and maturity of earning assets and interest-bearing liabilities;

• the volume and value of net free funds, such as noninterest-bearing deposits and equity capital;

• the use of derivative instruments to manage interest rate risk;

• interest rate fluctuations and competitive conditions within the marketplace;

• asset quality; and

• fair value accounting of acquired earning assets and interest-bearing liabilities.

To make it easier to compare both the results across several periods and the yields on various types of earning assets (some taxable, some not), we present net interest income in this discussion on a “TE basis” (i.e., as if all income were taxable and at the same rate). For example, $100 of tax-exempt income would be presented as $126, an amount that, if taxed at the statutory federal income tax rate of 21%, would yield $100.

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

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

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

Figure 3 shows the various components of our balance sheet that affect interest income and expense and their respective yields or rates for the current period and comparative year-ago period. This figure also presents a reconciliation of TE net interest income to net interest income reported in accordance with GAAP for each of those quarters. The net interest margin, which is an indicator of the profitability of the earning assets portfolio less the cost of funding, is calculated by dividing annualized TE net interest income by average earning assets.

Figure 3. Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates and Components of Net Interest Income Changes from Continuing Operations**(g)**

			Three months ended March 31, 2026												Three months ended March 31, 2025												Change in Net interest income due to
Dollars in millions			Average Balance			Interest (a)			Yield/ Rate (a)						Average Balance			Interest (a)			Yield/ Rate (a)						Volume			Yield/Rate			Total
ASSETS
Loans (b), (c)
Commercial and industrial (d)			$	59,149		$	843		5.76		%				$	53,746		$	800		6.04		%				$	78		$	(35)		$	43
Real estate — commercial mortgage			13,902			198			5.76						13,061			192			5.96						12			(6)			6
Real estate — construction			2,803			45			6.50						2,905			49			6.87						(2)			(2)			(4)
Commercial lease financing			2,213			21			3.81						2,653			23			3.52						(4)			2			(2)
Total commercial loans			78,067			1,107			5.73						72,365			1,064			5.96						84			(41)			43
Real estate — residential mortgage			18,593			155			3.34						19,737			165			3.33						(10)			—			(10)
Home equity loans			5,609			74			5.35						6,248			86			5.60						(9)			(3)			(12)
Other consumer loans			4,558			58			5.16						5,087			63			5.01						(7)			2			(5)
Credit cards			910			30			13.24						917			32			14.04						—			(2)			(2)
Total consumer loans			29,670			317			4.30						31,989			346			4.35						(26)			(3)			(29)
Total loans			107,737			1,424			5.35						104,354			1,410			5.47						58			(44)			14
Loans held for sale			1,092			14			4.99						815			14			6.70						4			(4)			—
Securities available for sale (b), (e)			39,403			370			3.59						39,321			392			3.70						1			(23)			(22)
Held-to-maturity securities (b)			8,795			86			3.91						7,274			63			3.46						14			9			23
Trading account assets			865			11			4.96						1,296			17			5.20						(5)			(1)			(6)
Short-term investments			11,134			103			3.74						15,211			174			4.63						(41)			(30)			(71)
Other investments			1,075			5			1.97						935			9			3.73						1			(5)			(4)
Total earning assets			170,101			2,013			4.71						169,206			2,079			4.86						32			(98)			(66)
Allowance for loan and lease losses			(1,419)												(1,401)
Accrued income and other assets			17,567												18,285
Discontinued assets			204												254
Total assets			$	186,453											$	186,344
LIABILITIES
Money market deposits			$	42,732		$	223		2.12		%				$	42,007		$	275		2.65		%				$	5		$	(57)		$	(52)
Demand deposits			61,478			279			1.84						57,460			310			2.19						21			(52)			(31)
Savings deposits			4,378			1			0.04						4,610			1			0.06						—			—			—
Time deposits			11,777			95			3.26						16,625			167			4.09						(43)			(29)			(72)
Total interest-bearing deposits			120,365			598			2.01						120,702			753			2.53						(17)			(138)			(155)
Federal funds purchased and securities sold under repurchase agreements			1,539			14			3.69						100			1			3.94						13			—			13
Bank notes and other short-term borrowings			2,585			20			3.20						2,273			27			4.74						3			(10)			(7)
Long-term debt (f)			10,186			151			5.96						11,779			193			6.61						(25)			(17)			(42)
Total interest-bearing liabilities			134,675			783			2.35						134,854			974			2.92						(26)			(165)			(191)
Noninterest-bearing deposits			26,934												27,840
Accrued expense and other liabilities			4,248												4,764
Discontinued liabilities (f)			204												254
Total liabilities			166,061												167,712
EQUITY
Key shareholders’ equity			20,392												18,632
Total liabilities and equity			$	186,453											$	186,344
Interest rate spread (TE)									2.36		%										1.94		%
Net interest income (TE) and net interest margin (TE)						$	1,230		2.87		%							$	1,105		2.58		%				$	58		$	67		125
TE adjustment (b)						8												9
Net interest income, GAAP basis						$	1,222											$	1,096

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.

(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended March 31, 2026, and March 31, 2025.

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

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

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

(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying our matched funds transfer pricing methodology to discontinued operations.

(g)Average balances presented are based on daily average balances over the respective stated period.

Provision for credit losses

Key’s provision for credit losses was $106 million for the three months ended March 31, 2026, compared to $118 million for the three months ended March 31, 2025. The decrease from the year-ago period reflects both lower net-charge-offs and more stable reserve levels.

Noninterest income

As shown in Figure 4, noninterest income was $723 million for the first quarter of 2026, compared to $668 million for the year-ago quarter.

The following discussion explains the composition of certain elements of our noninterest income and the factors that caused those elements to change.

Figure 4. Noninterest Income

			Three Months Ended March 31,						Percent Change
Dollars in millions			2026			2025
Trust and investment services income			$	157		$	139		12.9		%
Investment banking and debt placement fees			197			175			12.6
Cards and payments income			86			82			4.9
Service charges on deposit accounts			77			69			11.6
Corporate services income			71			65			9.2
Commercial mortgage servicing fees			62			76			(18.4)
Corporate-owned life insurance income			34			33			3.0
Consumer mortgage income			13			13			—
Operating lease income and other leasing gains			8			9			(11.1)
Other income			18			7			157.1
Total noninterest income			$	723		$	668		8.2		%

Trust and investment services income

Trust and investment services income consists of brokerage commissions, trust and asset management fees, and insurance income. The assets under management or administration that primarily generate certain trust and asset management fees are shown in Figure 5. For the three months ended March 31, 2026, trust and investment services income was up $18 million, or 12.9%, compared to the same period one year ago. This was primarily due to an increase in investment management income and other fees associated with higher assets under management.

A significant portion of our trust and investment services income depends on the value and mix of assets under management. As shown in Figure 5, at March 31, 2026, our bank, trust, and registered investment advisory subsidiaries had assets under management of $69.8 billion, up 14.3% compared to March 31, 2025. The increase was driven by continued net positive cash in-flows and market impacts on portfolios.

Figure 5. Assets Under Management or Administration

Dollars in millions			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Discretionary assets under management by investment type:
Equity			$	37,071		$	37,433		$	37,919		$	35,987		$	33,478
Fixed income			16,100			15,500			15,183			14,591			14,290
Money market			7,180			8,144			6,595			6,420			6,851
Total discretionary assets under management			60,351			61,077			59,697			56,998			54,619
Non-discretionary assets under administration			9,405			8,887			8,158			7,246			6,434
Total			$	69,756		$	69,964		$	67,855		$	64,244		$	61,053

Investment banking and debt placement fees

Investment banking and debt placement fees consist of syndication fees, debt and equity securities underwriting fees, merger and acquisition and financial advisory fees, gains on sales of commercial mortgages, and agency origination fees. For the three months ended March 31, 2026, investment banking and debt placement fees were up $22 million, or 12.6%, compared to the same period a year ago. The increase reflects higher investment banking fees and related activity in our mergers and acquisitions and equity new issue underwriting businesses.

Cards and payments income

Cards and payments income, which consists of debit card, prepaid card, consumer and commercial credit card, and merchant services income, increased $4 million or 4.9% for the three months ended March 31, 2026, compared to the same period one year ago. The increase was primarily a result of higher merchant services income and higher credit card spend volume slightly offset by higher credit card reward costs.

Service charges on deposit accounts

Service charges on deposit accounts increased $8 million, or 11.6%, for the three months ended March 31, 2026, compared to the same period one year ago. The increase was driven by account analysis fees.

Other noninterest income

Other noninterest income includes operating lease income and other leasing gains, corporate services income,

corporate-owned life insurance income, consumer mortgage income, commercial mortgage servicing fees, net securities gains(losses), and other income. Net other noninterest income for the three months ended March 31, 2026, increased $3 million, or 1.5%, from the year-ago quarter. This net change resulted from higher corporate services income reflective of growth in loan commitment fees, foreign exchange trading gains, and non-yield loan fees, coupled with higher other noninterest income from increases in deposit network fees and lower realized losses on non-customer derivatives activity. Offsetting this net increase were lower commercial mortgage servicing fees reflective of lower special servicing and other miscellaneous ancillary fees.

Noninterest expense

As shown in Figure 6, noninterest expense was $1.2 billion for the first quarter of 2026, compared to $1.1 billion for the first quarter of 2025.

The following discussion explains the composition of certain elements of our noninterest expense and the factors that caused those elements to change.

Figure 6. Noninterest Expense

			Three Months Ended March 31,						Percent Change
Dollars in millions			2026			2025
Personnel			$	743		$	680		9.3		%
Net occupancy			68			67			1.5
Computer processing			111			107			3.7
Business services and professional fees			36			40			(10.0)
Equipment			19			20			(5.0)
Operating lease expense			7			11			(36.4)
Marketing			18			21			(14.3)
Other expense			179			185			(3.2)
Total noninterest income			$	1,181		$	1,131		4.4		%

Personnel

Personnel expense, the largest category of our noninterest expense, increased by $63 million, or 9.3%, for the three months ended March 31, 2026, compared to the same period one year ago. The increase was primarily related to continued investments in people, employee benefits, and incentive compensation associated with noninterest income growth.

Figure 7. Personnel Expense

Dollars in millions			Three Months Ended March 31,						Percent Change
2026			2025
Salaries and contract labor			$	439		$	405		8.4		%
Incentive and stock-based compensation (a)			172			158			8.9
Employee benefits			127			109			16.5
Severance			5			8			(37.5)
Total personnel expense			$	743		$	680		9.3		%

(a)Excludes directors’ stock-based compensation of $1 million and $1 million for the three months ended March 31, 2026, and March 31, 2025, respectively, reported as “other expense” in Figure 6.

Nonpersonnel expense

Other nonpersonnel expense includes net occupancy, computer processing, business services and professional fees, equipment, operating lease expense, marketing, and other miscellaneous expense categories. Other nonpersonnel expense for the three months ended March 31, 2026, decreased $13 million, or 2.9%, from the year-ago quarter, primarily due to declines in technology consulting and legal expenditures, operating lease costs, and marketing spend.

Income taxes

We recorded tax expense of $136 million for the first quarter of 2026 and tax expense of $109 million for the first quarter of 2025.

Our federal tax expense and effective tax rate differs from the amount that would be calculated using the federal statutory tax rate, primarily due to 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.

Additional information pertaining to how our tax expense (benefit) and the resulting effective tax rates were derived is included in Note 13 (“Income Taxes”) beginning on page 153 of our 2025 Form 10-K.

Business Segment Results

This section summarizes the financial performance of our two major business segments (operating segments): Consumer Bank and Commercial Bank. Note 17 (“Business Segment Reporting”) describes the products and services offered by each of these business segments and provides more detailed financial information pertaining to the segments. For more information on the segment imperatives and market and business overview, see “Business Segment Results” beginning on page 59 of our 2025 Form 10-K. Dollars in the charts are presented in millions.

Consumer Bank

Summary of operations

			Three Months Ended March 31,									Percent
Dollars in millions			2026			2025						Change
Summary of operations
Net interest income (TE)			$	738		$	706					4.5		%
Noninterest income			240			226						6.2
Total revenue (TE)			978			932						4.9
Provision for credit losses			40			43						(7.0)
Noninterest expense			709			675						5.0
Income (loss) before income taxes (TE)			229			214						7.0
Allocated income taxes (benefit) and TE adjustments			56			51						9.8
Net income (loss) attributable to Key			$	173		$	163					6.1		%
Average loans and leases
Real estate — residential mortgage			$	18,589		$	19,728					(5.8)		%
Home equity loans			5,564			6,214						(10.5)
Other consumer loans			4,569			5,078						(10.0)
Credit cards			910			917						(.8)
Commercial loans			4,373			4,882						(10.4)
Total loans and leases			$	34,005		$	36,819					(7.6)		%
Average deposits
Money market deposits			$	35,920		$	33,533					7.1		%
Demand deposits			23,214			22,772						1.9
Savings deposits			4,199			4,392						(4.4)
Time deposits			10,610			13,318						(20.3)
Noninterest-bearing deposits			13,853			14,291						(3.1)
Total deposits			$	87,796		$	88,306					(.6)		%
Credit-related statistics
Nonperforming assets at period end			$	270		$	278
Net loan charge-offs			40			52
Net loan charge-offs to average total loans			0.48		%	0.57		%

• Net income attributable to Key of $173 million for the first quarter of 2026, compared to $163 million for the year-ago quarter

• Taxable-equivalent net interest income attributable to the Consumer Bank increased $32 million, or 4.5%, compared to the first quarter of 2025

• Average loans and leases decreased $2.8 billion, or 7.6%, from the first quarter of 2025, reflective of broad-based declines across all loan categories

• Average deposits decreased $510 million, or 0.6%, from the first quarter of 2025, driven by lower time deposits, partially offset by an increase in money market deposits

• Provision for credit losses decreased $3 million compared to the first quarter of 2025, driven by lower charge-offs

• Noninterest income increased $14 million, or 6.2%, from the first quarter of 2025, primarily driven by higher trust and investment services income

• Noninterest expense increased $34 million, or 5.0%, from the first quarter of 2025, primarily driven by higher support and overhead expense

Commercial Bank

Summary of operations

			Three Months Ended March 31,									Percent
Dollars in millions			2026			2025						Change
Summary of operations
Net interest income (TE)			$	672		$	636					5.7		%
Noninterest income			445			411						8.3
Total revenue (TE)			1,117			1,047						6.7
Provision for credit losses			70			75						(6.7)
Noninterest expense			474			464						2.2
Income (loss) before income taxes (TE)			573			508						12.8
Allocated income taxes (benefit) and TE adjustments			122			109						11.9
Net income (loss) attributable to Key			$	451		$	399					13.0		%
Average loans and leases
Commercial and industrial			$	55,540		$	49,944					11.2		%
Real estate — commercial mortgage			12,692			11,679						8.7
Real estate — construction			2,704			2,789						(3.0)
Commercial lease financing			2,204			2,634						(16.3)
Other loans			6			12						(50.0)
Total loans and leases			$	73,146		$	67,058					9.1		%
Average deposits
Money market deposits			$	6,811		$	8,368					(18.6)		%
Demand deposits			39,072			35,379						10.4
Other deposits			429			568						(24.5)
Noninterest-bearing deposits			12,615			13,166						(4.2)
Total deposits			$	58,929		$	57,481					2.5		%
Credit-related statistics
Nonperforming assets at period end			$	422		$	422
Net loan charge-offs			64			57
Net loan charge-offs to average total loans			0.35		%	0.34		%

• Net income attributable to Key of $451 million for the first quarter of 2026, compared to $399 million for the year-ago quarter

• Taxable-equivalent net interest income attributable to the Commercial Bank increased $36 million or 5.7%, compared to the first quarter of 2025

• Average loan and lease balances increased $6.1 billion, or 9.1%, compared to the first quarter of 2025, driven by an increase in commercial and industrial loans

• Average deposit balances increased $1.4 billion, or 2.5%, compared to the first quarter of 2025, driven by higher client deposits

• Provision for credit losses decreased $5 million compared to the first quarter of 2025, driven by more stable reserves, partially offset by higher net charge-offs

• Noninterest income increased $34 million, or 8.3%, from the first quarter of 2025, primarily driven by an increase in investment banking and debt placement fees and service charges on deposit accounts

• Noninterest expense increased $10 million, or 2.2%, compared to the first quarter of 2025, primarily driven by an increase in support and overhead expense

Financial Condition

Loans and loans held for sale

Figure 8. Composition of Loans at March 31, 2026

						March 31, 2026												December 31, 2025
Dollars in millions						Amount						Percent of Total						Amount						Percent of Total
COMMERCIAL
Commercial and industrial (a)						$	60,651					55.5		%				$	57,688					54.1		%
Commercial real estate:
Commercial mortgage						14,144						12.9						13,707						12.9
Construction						2,801						2.6						2,844						2.7
Total commercial real estate loans						16,945						15.5						16,551						15.6
Commercial lease financing						2,200						2.0						2,270						2.1
Total commercial loans						79,796						73.0						76,509						71.8
CONSUMER
Real estate — residential mortgage						18,483						16.9						18,732						17.6
Home equity loans						5,528						5.1						5,703						5.3
Other consumer loans						4,477						4.1						4,644						4.4
Credit cards						906						0.9						953						0.9
Total consumer loans						29,394						27.0						30,032						28.2
Total loans (b)						$	109,190					100.0		%				$	106,541					100.0		%

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

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

At March 31, 2026, total loans outstanding from continuing operations were $109.2 billion, compared to $106.5 billion at December 31, 2025. For more information on balance sheet carrying value, see Note 1 (“Summary of Significant Accounting Policies”) under the headings “Loans” and “Loans Held for Sale” starting on page 108 of our 2025 Form 10-K.

Commercial loan portfolio

Commercial loans outstanding were $79.8 billion at March 31, 2026, an increase of $3.3 billion, or 4.3%, compared to December 31, 2025, primarily driven by growth in the commercial and industrial loan portfolios.

Figure 9 provides our commercial loan portfolios by industry classification at March 31, 2026, and December 31, 2025.

Figure 9. Commercial Loans by Industry

March 31, 2026			Commercial and industrial						Commercial real estate						Commercial lease financing						Total commercial loans						Percent of total
Dollars in millions
Industry classification:
Agriculture			$	947					$	121					$	75					$	1,143					1.4		%
Automotive			2,384						644						—						3,028						3.8
Business services			3,236						247						110						3,593						4.5
Commercial real estate			8,551						12,147						1						20,699						25.9
Construction materials and contractors			2,244						274						136						2,654						3.3
Consumer goods			3,872						584						211						4,667						5.8
Consumer services			4,309						795						242						5,346						6.7
Equipment			1,674						148						40						1,862						2.3
Finance			13,460						99						166						13,725						17.3
Healthcare			2,474						1,431						112						4,017						5.0
Materials and extraction			2,190						217						99						2,506						3.1
Oil and gas			2,015						55						12						2,082						2.6
Public exposure			1,740						7						286						2,033						2.5
Technology			1,173						16						75						1,264						1.7
Transportation			990						132						288						1,410						1.8
Utilities			9,056						—						340						9,396						11.8
Other			336						28						7						371						0.5
Total			$	60,651					$	16,945					$	2,200					$	79,796					100.0		%
December 31, 2025			Commercial and industrial						Commercial real estate						Commercial lease financing						Total commercial loans						Percent of total
Dollars in millions
Industry classification:
Agriculture			$	908					$	110					$	76					$	1,094					1.4		%
Automotive			2,475						610						—						3,085						4.0
Business services			3,228						227						85						3,540						4.6
Commercial real estate			8,124						12,045						1						20,170						26.4
Construction materials and contractors			1,978						238						153						2,369						3.1
Consumer goods			3,541						547						213						4,301						5.6
Consumer services			4,081						799						251						5,131						6.7
Equipment			1,586						153						45						1,784						2.3
Finance			12,165						96						167						12,428						16.3
Healthcare			2,714						1,334						133						4,181						5.5
Materials and extraction			2,105						177						104						2,386						3.1
Oil and gas			2,051						28						13						2,092						2.7
Public exposure			1,654						7						306						1,967						2.6
Technology			1,009						17						82						1,108						1.5
Transportation			1,022						121						276						1,419						1.9
Utilities			8,686						—						358						9,044						11.8
Other			361						42						7						410						0.5
Total			$	57,688					$	16,551					$	2,270					$	76,509					100.0		%

Commercial and industrial. Commercial and industrial loans are the largest component of our loan portfolio, representing 56% of our total loan portfolio at March 31, 2026, and 54% at December 31, 2025. This portfolio is approximately 92% variable rate and consists of loans originated primarily to large corporate, middle market, and small business clients.

Commercial and industrial loans totaled $60.7 billion at March 31, 2026, an increase of $3.0 billion, or 5.1%, compared to December 31, 2025. The increase was driven by loans to the Finance industry, which primarily includes finance, insurance, and leasing companies.

Commercial real estate loans. Our commercial real estate portfolio includes project loans primarily focused in market-rate and affordable multi-family housing loans, owner-occupied commercial and industrial operating company buildings, and community center grocer-anchored retail centers. These three commercial real estate segments make up 70% of our commercial real estate portfolio. Our non-owner-occupied portfolio is focused on operators of commercial real estate who not only utilize our loan products, but also utilize our broader industry-focused products and services and provide consistent pipelines into our agency, CMBS, and other long-term market take out products. This focus ensures our relationship clients foster and build portfolios with stable, recurring cash flows, with adequate, balanced cash reserves to support our balance sheet exposures through the economic cycle.

At March 31, 2026, commercial real estate loans totaled $16.9 billion, which includes $14.1 billion of mortgage loans and $2.8 billion of construction loans. Compared to December 31, 2025, this portfolio increased $394 million, or 2.4%. Nonowner-occupied properties, generally properties for which at least 50% of the debt service is provided by

rental income from nonaffiliated third parties, represented 81% of total commercial real estate loans outstanding at March 31, 2026.

Our overall construction loans constitute 17% of commercial real estate loans as of March 31, 2026 and December 31, 2025, respectively. Construction loans provide a stream of funding for properties not fully leased at origination to support debt service payments over the term of the contract or project. As of March 31, 2026, 75% of our construction portfolio are multi-family project loans. Our office exposure only represents 4% of commercial real estate loans at period end.

As shown in Figure 10, our commercial real estate loan portfolio includes various property types and geographic locations of the underlying collateral. These loans include commercial mortgage and construction loans in both Consumer Bank and Commercial Bank.

Figure 10. Commercial Real Estate Loans

			Geographic Region																					Total			Percent of Total			Construction			Commercial Mortgage
Dollars in millions			West			Southwest			Central			Midwest			Southeast			Northeast			National
March 31, 2026
Nonowner-occupied:
Data Center			$	—		$	—		$	18		$	—		$	34		$	—		$	618		$	670		4.0		%	$	296		$	375
Diversified			1			—			—			29			—			8			190			228			1.3			—			228
Industrial			38			1			85			154			223			163			255			919			5.4			67			852
Land & Residential			9			5			10			4			6			19			—			53			0.3			35			18
Lodging			1			—			8			4			19			65			66			163			1.0			—			163
Medical Office			35			—			30			1			20			66			43			195			1.2			11			184
Multifamily			1,202			288			1,389			1,263			1,721			1,250			478			7,591			44.8			2,107			5,484
Office			78			—			82			70			84			200			115			629			3.7			—			629
Retail			68			40			117			217			94			183			252			971			5.7			18			953
Self Storage			27			—			15			6			37			16			157			258			1.5			7			251
Senior Housing			96			95			35			102			181			80			187			776			4.6			94			682
Skilled Nursing			—			—			—			—			159			224			363			746			4.4			—			746
Student Housing			62			6			13			47			—			—			—			128			0.8			—			128
Other			5			9			99			28			52			28			130			351			2.1			—			350
Total nonowner-occupied			1,622			444			1,901			1,925			2,630			2,302			2,854			13,678			80.7			2,635			11,043
Owner-occupied			1,032			—			352			549			164			988			182			3,267			19.3			166			3,101
Total			$	2,654		$	444		$	2,253		$	2,474		$	2,794		$	3,290		$	3,036		$	16,945		100.0		%	$	2,801		$	14,144
Nonperforming loans			$	7		$	—		$	25		$	103		$	47		$	7		$	1		$	190		N/M			$	—		$	190
Accruing loans past due 90 days or more			—			—			1			—			83			5			—			89			N/M			1			88
Accruing loans past due 30 through 89 days			2			—			—			2			—			1			—			5			N/M			—			5

			Geographic Region																					Total			Percent of Total			Construction			Commercial Mortgage
Dollars in millions			West			Southwest			Central			Midwest			Southeast			Northeast			National
December 31, 2025
Nonowner-occupied:
Data Center			$	—		$	—		$	—		$	—		$	24		$	—		$	671		$	695		4.2		%	$	272		$	423
Diversified			1			—			—			29			—			10			176			216			1.3			—			216
Industrial			37			1			77			154			262			166			211			908			5.5			72			836
Land & Residential			9			6			13			3			6			19			—			56			0.3			38			18
Lodging			1			—			8			4			33			40			60			146			0.9			—			146
Medical Office			35			—			31			1			20			63			43			193			1.2			9			184
Multifamily			1,303			356			1,328			1,201			1,762			1,228			404			7,582			45.8			2,150			5,432
Office			79			1			90			70			84			200			114			638			3.9			—			638
Retail			90			40			91			226			87			185			230			949			5.7			20			929
Self Storage			36			—			15			6			50			16			157			280			1.7			20			260
Senior Housing			90			95			35			103			181			81			192			777			4.7			94			683
Skilled Nursing			—			—			—			—			181			220			242			643			3.9			—			643
Student Housing			73			6			13			46			—			—			—			138			0.8			—			138
Other			5			8			12			27			47			31			129			259			1.6			—			259
Total nonowner-occupied			1,759			513			1,713			1,870			2,737			2,259			2,629			13,480			81.4			2,675			10,805
Owner-occupied			1,026			—			316			519			124			929			157			3,071			18.6			169			2,902
Total			$	2,785		$	513		$	2,029		$	2,389		$	2,861		$	3,188		$	2,786		$	16,551		100.0		%	$	2,844		$	13,707
Nonperforming loans			$	8		$	—		$	25		$	68		$	48		$	7		$	1		$	157		N/M			$	—		$	157
Accruing loans past due 90 days or more			—			—			2			1			26			5			—			34			N/M			1			33
Accruing loans past due 30 through 89 days			1			—			1			1			56			8			—			67			N/M			—			67

West –			Alaska, California, Hawaii, Idaho, Montana, Oregon, Washington, and Wyoming
Southwest –			Arizona, Nevada, and New Mexico
Central –			Arkansas, Colorado, Oklahoma, Texas, and Utah
Midwest –			Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin
Southeast –			Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington D.C., and West Virginia
Northeast –			Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont
National –			Accounts in three or more regions

N/M = not meaningful

Consumer loan portfolio

Consumer loans outstanding as of March 31, 2026, totaled $29.4 billion, a decrease of $638 million, or 2.1%, from December 31, 2025. The decrease was driven by declines across all consumer loan categories reflective of the intentional run-off of low-yielding loans.

The residential mortgage portfolio is comprised of loans originated by our Consumer Bank and is the largest segment of our consumer loan portfolio as of March 31, 2026, representing 63% of consumer loans outstanding. This is followed by our home equity portfolio representing 19% of consumer loans outstanding at March 31, 2026.

We held the first lien position for approximately 63% of the home equity portfolio at March 31, 2026 and December 31, 2025, respectively. For loans with real estate collateral, we track borrower performance monthly. Regardless of the lien position, credit metrics are refreshed quarterly, including recent FICO scores as well as updated loan-to-value ratios. This information is used in establishing the ALLL. Our methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” of our 2025 Form 10-K.

Figure 11 presents our consumer loans by geography.

Figure 11. Consumer Loans by State

Dollars in millions			Real estate — residential mortgage			Home equity loans			Other consumer loans			Credit cards			Total
March 31, 2026
Washington			$	3,952		$	822		$	195		$	82		$	5,051
Ohio			2,617			723			63			181			3,584
New York			598			1,549			686			309			3,142
Colorado			2,750			231			112			29			3,122
California			2,047			13			383			3			2,446
Oregon			1,120			474			82			40			1,716
Pennsylvania			370			382			287			60			1,099
Florida			664			36			327			12			1,039
Utah			745			205			50			16			1,016
Connecticut			607			193			97			28			925
Other			3,013			900			2,195			146			6,254
Total			$	18,483		$	5,528		$	4,477		$	906		$	29,394
December 31, 2025
Washington			$	4,030		$	844		$	202		$	85		$	5,161
Ohio			2,613			758			66			195			3,632
New York			626			1,587			702			326			3,241
Colorado			2,769			236			118			29			3,152
California			2,056			13			399			3			2,471
Oregon			1,145			487			85			41			1,758
Pennsylvania			378			395			296			62			1,131
Florida			675			36			343			13			1,067
Utah			759			215			53			17			1,044
Connecticut			618			200			100			29			947
Other			3,063			932			2,280			153			6,428
Total			$	18,732		$	5,703		$	4,644		$	953		$	30,032

Figure 12 summarizes our loan sales for the three months ended March 31, 2026, and all of 2025.

Figure 12. Loans Sold (Including Loans Held for Sale)

Dollars in millions			Commercial			Commercial Real Estate			Commercial Lease Financing			Residential Real Estate									Total
2026
First quarter			$	36		$	1,667		$	122		$	411								$	2,236
Total			$	36		$	1,667		$	122		$	411								$	2,236
2025
Fourth quarter			$	81		$	2,804		$	50		$	331								$	3,266
Third quarter			79			2,513			61			359									3,012
Second quarter			239			1,465			—			338									2,042
First quarter			89			1,355			27			260									1,731
Total			$	488		$	8,137		$	138		$	1,288								$	10,051

Figure 13 shows loans that are either administered or serviced by us, but not recorded on the balance sheet; this includes loans that were sold.

Figure 13. Loans Administered or Serviced

Dollars in millions			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Commercial real estate loans			$	580,860		$	566,567		$	569,430		$	576,703		$	572,449
Residential mortgage			11,488			11,419			11,440			11,383			11,352
Education loans			143			152			161			170			179
Commercial lease financing			1,639			1,719			1,815			1,815			1,868
Commercial loans			572			576			585			589			596
Consumer direct			242			258			273			290			307
Consumer indirect			53			83			122			174			239
Total			$	594,997		$	580,774		$	583,826		$	591,124		$	586,990

In the event of default by a borrower, we are subject to recourse with respect to approximately $8.2 billion of the $595.0 billion of loans administered or serviced at March 31, 2026. These are primarily associated with commercial real estate loans administered or serviced. Additional information about this recourse arrangement is included in Note 14 (“Contingent Liabilities and Guarantees”) under the heading “Recourse agreement with FNMA.”

We derive income from several sources when retaining the right to administer or service loans that are sold. We earn noninterest income (recorded as “Consumer mortgage income” and “Commercial mortgage servicing fees”) from fees for servicing or administering loans. This fee income is reduced by the amortization of related servicing assets. In addition, we earn interest income from investing funds generated by escrow deposits collected in connection with the servicing loans. Additional information about our mortgage servicing assets is included in Note 8 (“Mortgage Servicing Assets”).

Securities

We manage our securities portfolio according to the following priorities: 1) store of liquidity, 2) interest rate risk management tool, and 3) source of earnings. In keeping with the first priority, the portfolio provides securities to meet our pledging requirements. Our securities portfolio totaled $48.0 billion at March 31, 2026, compared to $48.2 billion at December 31, 2025. Available-for-sale securities were $38.9 billion at March 31, 2026, compared to $39.6 billion at December 31, 2025. Held-to-maturity securities were $9.1 billion at March 31, 2026, and $8.6 billion at December 31, 2025.

Securities available for sale

The majority of our securities available-for-sale portfolio consists of federal agency mortgage-backed securities and CMOs. CMOs are debt securities secured by a pool of mortgages or mortgage-backed securities.

Figure 14 shows the composition, yields, and remaining maturities of our securities available for sale. For more information about these securities, including gross unrealized gains and losses by type of security and securities pledged, see Note 6 (“Securities”).

Figure 14. Securities Available for Sale

Dollars in millions			U.S. Treasury, Agencies, and Corporations						Agency Residential Collateralized Mortgage Obligations**(a)**			Agency Residential Mortgage-backed Securities**(a)**			Agency Commercial Mortgage-backed Securities**(a)**						Total			Weighted-Average Yield**(c)**
March 31, 2026
Remaining maturity:
One year or less			$	3,246					$	2		$	44		$	128					$	3,420		4.32		%
After one through five years			4,488						990			3,237			1,168						9,883			3.44
After five through ten years			41						6,749			11,173			2,203						20,166			3.55
After ten years			69						508			4,479			393						5,449			4.13
Fair value			$	7,844					$	8,249		$	18,933		$	3,892					$	38,918
Amortized cost(b)			$	7,842					$	10,003		$	19,308		$	4,243					$	41,396		3.67		%
Weighted-average yield(c)			4.15		%				1.89		%	4.57		%	2.89		%				3.67		%	—
Weighted-average maturity			1.5 years						7.9 years			10.6 years			6.7 years						7.8 years			—
December 31, 2025
Fair value			$	7,886					$	8,565		$	19,195		$	3,950					$	39,596
Amortized cost			7,842						10,269			19,451			4,284						41,846			3.67		%

(a)Maturity is based upon expected average lives rather than contractual terms.

(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 $38 million and $99 million as of March 31, 2026 and December 31, 2025, respectively. The securities being hedged are primarily U.S. Treasuries, Agency RMBS, and Agency CMBS.

(c)Weighted-average yields are calculated based on amortized cost. Such yields have been adjusted to a TE basis using the statutory federal income tax rate in effect that calendar year.

Held-to-maturity securities

The majority of our held-to-maturity portfolio consists of Federal agency CMOs and mortgage-backed securities. This portfolio is also comprised of asset-backed securities and foreign bonds. Figure 15 shows the composition, yields, and remaining maturities of these securities.

Figure 15. Held-to-Maturity Securities

Dollars in millions			Agency Residential Collateralized Mortgage Obligations (a)			Agency Residential Mortgage-backed Securities**(a)**			Agency Commercial Mortgage-backed Securities**(a)**			Asset-backed securities			Other Securities			Total			Weighted-Average Yield**(b)**
March 31, 2026
Remaining maturity:
One year or less			$	33		$	—		$	233		$	42		$	8		$	316		2.68		%
After one through five years			1,178			358			744			2			12			2,294			3.53
After five through ten years			2,642			2,744			200			—			—			5,586			4.36
After ten years			50			63			807			—			—			920			3.35
Amortized cost			$	3,903		$	3,165		$	1,984		$	44		$	20		$	9,116		3.99		%
Fair value			$	3,703		$	3,136		$	1,840		$	43		$	20		$	8,742
Weighted-average yield(b)			3.78		%	4.90		%	3.00		%	2.01		%	4.49		%	3.99		%	—
Weighted-average maturity			6.4 years			6.3 years			8.6 years			0.3 years			1.5 years			6.8 years			—
December 31, 2025
Amortized cost			$	4,026		$	2,374		$	2,121		$	77		$	24		$	8,622		3.87		%
Fair value			3,858			2,373			1,983			75			24			8,313

(a)Maturity is based upon expected average lives rather than contractual terms.

(b)Weighted-average yields are calculated based on amortized cost. Such yields have been adjusted to a TE basis using the statutory federal income tax rate in effect that calendar year.

Deposits and other sources of funds

Figure 16. Breakdown of Deposits at March 31, 2026

The following table presents the breakdown of our deposits by product for the noted periods.

Dollars in billions			March 31, 2026			December 31, 2025
Money market deposits			$	42.9		$	42.7
Demand deposits			61.7			61.3
Savings deposits			4.5			4.4
Time deposits			11.2			12.7
Noninterest bearing deposits			27.6			27.6
Total			$	147.8		$	148.7

Our highly diversified deposit base is our primary source of funding. At March 31, 2026, our deposits totaled $147.8 billion, a decrease of $898 million, compared to December 31, 2025.

Uninsured deposits totaled $66.5 billion and $66.2 billion at March 31, 2026 and December 31, 2025, respectively. Uninsured deposits are defined as the portion of deposit accounts in U.S. offices that exceed the FDIC insurance limit or similar state deposit insurance regimes and amounts in any other uninsured investment or deposit accounts that are classified as deposits and not subject to any federal or state deposit insurance regimes.

Figure 17 presents estimated uninsured deposits for the noted periods which reflect amounts disclosed in KeyBank’s Call Report adjusted for intercompany deposits, which are not customer facing and are eliminated in consolidation, and accrued interest.

Figure 17. Estimated Uninsured Deposits

Dollars in billions			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Uninsured deposits(a)			$	66.5		$	66.2		$	66.5		$	61.8		$	65.2
Total deposits			147.8			148.7			150.8			146.9			150.7
Uninsured % of Deposits			45		%	45		%	44		%	42		%	43		%
(a) Intercompany deposits and accrued interest excluded from uninsured deposits			$	12.9		$	12.8		$	13.2		$	12.5		$	12.4

As of March 31, 2026, approximately $12.3 billion of uninsured deposits were collateralized by government-backed securities compared to $12.0 billion as of December 31, 2025.

Wholesale funds, consisting of short-term borrowings and long-term debt, totaled $17.1 billion at March 31, 2026, compared to $11.0 billion at December 31, 2025. The change primarily reflects increases in bank notes and short-

term borrowings, as well as issuances of long-term debt during 2026. Wholesale funding supplements client deposit funding and may rise or fall with seasonal or other funding needs. For more information regarding our wholesale funds, see Part I, Item 2. Management’s Discussion & Analysis of Financial Condition & Results of Operations under the heading “Risk Management - Liquidity risk management” of this report.

Capital

Our capital management objective is to maintain capital levels consistent with our risk appetite and of a sufficient amount to operate and support our clients under a wide range of economic conditions. Our current capital levels position us well to execute against our capital priorities including supporting organic growth, investing in our business, and providing an attractive return to our investors through dividends and share repurchases.

The following sections discuss certain ways we have deployed our capital. For further information, see the Consolidated Statements of Changes in Equity and Note 16 (“Shareholders' Equity”).

(a) Excludes shares repurchased related to equity compensation programs

Dividends

Consistent with our capital plan, we paid a quarterly dividend of $.205 per Common Share for the first quarter of 2026. Further information regarding the capital planning process and CCAR is included under the heading “Capital planning, stress testing, and stress capital buffer” beginning on page 14 in the “Supervision and Regulation” section of our 2025 Form 10-K.

Common shares outstanding

Our Common Shares are traded on the NYSE under the symbol KEY with 25,409 holders of record at March 31, 2026. Our book value per Common Share was $16.13 based on 1.1 billion shares outstanding at March 31, 2026, compared to $16.27 per Common Share based on 1.1 billion shares outstanding at December 31, 2025. At March 31, 2026, our tangible book value per Common Share was $13.60, compared to $13.77 per Common Share at December 31, 2025.

Figure 18 shows activities that caused the change in outstanding Common Shares over the past five quarters.

Figure 18. Changes in Common Shares Outstanding

			2026						2025
In thousands			First						Fourth			Third			Second			First
Shares outstanding at beginning of period			1,102,401						1,112,952			1,112,453			1,111,986			1,106,786
Share repurchases			(17,969)						(11,109)			—			—			—
Shares issued under employee compensation plans (net of cancellations and returns)			2,861						558			499			467			5,200
Shares outstanding at end of period			1,087,293						1,102,401			1,112,952			1,112,453			1,111,986

In March 2025, the Board of Directors authorized a share repurchase program pursuant to which we may purchase up to $1.0 billion of Common Shares. Information on repurchases of Common Shares by KeyCorp is included in Part II, Item 2. “Unregistered Sales of Equity Securities and Use of Proceeds” of this report. During the fourth quarter of 2025, we began repurchasing shares under the share repurchase program authorized by the Board of Directors in March 2025.

As shown in Figure 18 above, Common Shares outstanding decreased by 15 million shares during the first quarter of 2026, primarily attributed to shares repurchased in the open market partially offset by shares issued under employee compensation plans. Open market share repurchases, inclusive of shares repurchased from Scotiabank, totaled approximately $389 million in the first quarter of 2026.

At March 31, 2026, we had 169.4 million treasury shares, compared to 154.3 million treasury shares at December 31, 2025. The increase in treasury shares was primarily attributable to open market share repurchases. Going forward, we expect to reissue treasury shares as needed in connection with stock-based compensation awards and for other corporate purposes.

Capital adequacy

Capital adequacy is an important indicator of financial stability and performance. All of our capital ratios remained in excess of regulatory requirements at March 31, 2026. Our capital and liquidity levels are intended to position us to weather an adverse operating environment while continuing to serve our clients’ needs, as well as to meet the Regulatory Capital Rules described in Item 1. Business of our 2025 Form 10-K under the heading “Supervision and Regulation.” Our shareholders’ equity to assets ratio was 10.6% and 11.1% at March 31, 2026, and December 31, 2025, respectively. Our tangible common equity to tangible assets ratio was 8.0% and 8.4% at March 31, 2026, and December 31, 2025, respectively. See the section entitled “GAAP to Non-GAAP Reconciliations,” which presents the computations of certain financial measures related to “tangible common equity.” The minimum capital and leverage ratios under the Regulatory Capital Rules together with the ratios of KeyCorp at March 31, 2026, are set forth in the “Supervision and regulation — Regulatory capital requirements” section in Part I, Item 2 of this report.

Figure 19 represents the details of our regulatory capital positions at March 31, 2026, and December 31, 2025, under the Regulatory Capital Rules. Information regarding the regulatory capital ratios of KeyCorp’s banking subsidiaries is presented annually, with the most recent information included in Note 21 (“Shareholders' Equity”) beginning on page 169 of our 2025 Form 10-K.

Figure 19. Capital Components and Risk-Weighted Assets

			Dollars in millions			March 31, 2026			December 31, 2025
COMMON EQUITY TIER 1
Key shareholders’ equity (GAAP)						$	19,987		$	20,381
Less:			Preferred Stock (a)			2,446			2,446
			Common Equity Tier 1 capital before adjustments and deductions			17,541			17,935
Less:			Goodwill, net of deferred taxes			2,552			2,556
			Intangible assets, net of deferred taxes			5			7
			Deferred tax assets			167			136
			Net unrealized gains (losses) on available-for-sale securities, net of deferred taxes			(1,915)			(1,789)
			Accumulated gains (losses) on cash flow hedges, net of deferred taxes			(69)			68
			Amounts in AOCI attributed to pension and postretirement benefit costs, net of deferred taxes			(237)			(238)
			Total Common Equity Tier 1 capital			$	17,038		$	17,195
TIER 1 CAPITAL
Common Equity Tier 1						$	17,038		$	17,195
Additional Tier 1 capital instruments and related surplus						2,446			2,446
Less:			Deductions			—			—
			Total Tier 1 capital			$	19,484		$	19,641
TIER 2 CAPITAL
Tier 2 capital instruments and related surplus						$	1,461		$	1,522
Allowance for losses on loans and liability for losses on lending-related commitments (b)						1,752			1,747
Less:			Deductions			—			—
			Total Tier 2 capital			3,213			3,269
			Total risk-based capital			$	22,697		$	22,910
RISK-WEIGHTED ASSETS (d)						$	149,484		$	145,933
AVERAGE QUARTERLY TOTAL ASSETS						$	186,031		$	187,035
CAPITAL RATIOS (d)
Tier 1 risk-based capital						13.03		%	13.46		%
Total risk-based capital						15.18		%	15.70		%
Leverage (c)						10.47		%	10.50		%
Common Equity Tier 1						11.40		%	11.78		%

(a)Net of capital surplus.

(b)The ALLL included in Tier 2 capital is limited by regulation to 1.25% of the institution’s standardized total risk-weighted assets (excluding its standardized market risk-weighted assets). The ALLL includes $11 million and $11 million of allowance classified as “discontinued assets” on the balance sheet at March 31, 2026, and December 31, 2025, respectively.

(c)This ratio is Tier 1 capital divided by average quarterly total assets as defined by the Federal Reserve less: (i) goodwill, (ii) the disallowed intangible and deferred tax assets, and (iii) other deductions from assets for leverage capital purposes.

(d)March 31, 2026 capital ratios and risk weighted assets are estimates.

Risk Management

Overview

Like all financial services companies, we engage in business activities that come with related risks. The most significant risks we face are credit, compliance, operational, liquidity, market, strategic, model, and technology risks. We manage such risks across the entire enterprise to maintain safety and soundness and maximize profitable growth. Certain of these risks are defined and discussed in greater detail in the remainder of this section. Our definition, philosophy, and approach to risk management have not materially changed from the discussion presented under the heading “Risk Management” beginning on page 74 of our 2025 Form 10-K.

Market risk management

Market risk is the risk that movements in market risk factors, including interest rates, foreign exchange rates, equity prices, commodity prices, credit spreads, and volatilities, will reduce Key’s income and the value of its portfolios. These factors influence prospective yields, values, or prices associated with the instrument. We are exposed to market risk both in our trading and nontrading activities, which include asset and liability management activities. Information regarding our fair value policies, procedures, and methodologies is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Fair Value Measurements” on page 111 of our 2025 Form 10-K and Note 5 (“Fair Value Measurements”) in this report.

Trading market risk

Key incurs market risk as a result of trading activities that are used in support of client facilitation and hedging activities, principally within our investment banking and capital markets businesses. Key has exposures to a wide range of risk factors including interest rates, equity prices, foreign exchange rates, credit spreads, and commodity prices, as well as the associated implied volatilities and spreads. Our primary market risk exposures are a result of trading and hedging activities in the derivative and fixed income markets, including securitization exposures. At March 31, 2026, we did not have any re-securitization positions. We maintain modest trading inventories to facilitate customer flow, make markets in securities, and hedge certain risks including but not limited to credit spread risk and interest rate risk. The risks associated with these activities are mitigated in accordance with the Market Risk policies. The majority of our positions are traded in active markets.

Market risk management is an integral part of Key’s risk culture. The Joint KeyCorp and KeyBank National Association Risk Committee (“Board Risk Committee”) provides oversight of trading market risks. The ALCO and the Market Risk Committee regularly review and discuss market risk exposures and results of monitoring activities. Market risk policies and procedures have been defined and take into account our tolerance for risk and consideration for the business environment. The Market Risk Committee approves market risk policies and recommends our significant market risk policy to the ALCO and the Board Risk Committee for approval. For more information regarding monitoring of trading positions and the activities related to Market Risk Rule compliance, see “Market Risk Management” beginning on page 77 of our 2025 Form 10-K.

VaR and stressed VaR. VaR is the estimate of the maximum amount of loss on an instrument or portfolio due to adverse market conditions during a given time interval within a stated confidence level. Stressed VaR is used to assess extreme conditions on market risk within our trading portfolios. MTRM calculates VaR and stressed VaR at various confidence levels daily, and the results are closely monitored. VaR and stressed VaR results are also provided to our regulators and utilized in regulatory capital calculations. For more information regarding our VaR model, its governance, and assumptions, see “Market Risk Management” on page 77 of our 2025 Form 10-K.

MTRM backtests the VaR model on a daily basis to evaluate its predictive power. The test compares VaR model results at the 99% confidence level to daily held profit and loss. Backtesting exceptions occur when daily held profit and loss exceeds VaR. There were two backtesting exceptions for KeyCorp during the past 250 trading days ended March 31, 2026, generally caused by large moves in rates. All KeyCorp backtesting exceptions are thoroughly reviewed in the context of VaR model use and performance.

The aggregate VaR at the 99% confidence level with a one day holding period for all covered positions was less than $1 million at March 31, 2026, and $1.5 million at March 31, 2025. Figure 20 summarizes our VaR at the 99% confidence level with a one day holding period for significant portfolios of covered positions for the three months ended March 31, 2026, and March 31, 2025.

Figure 20. VaR for Significant Portfolios of Covered Positions

			2026															2025
			Three months ended March 31,															Three months ended March 31,
Dollars in millions			High			Low			Mean			March 31,						High			Low			Mean			March 31,
Trading account assets:
Fixed income			$	1.3		$	0.3		$	.6		$	.3					$	1.6		$	0.5		$	1.2		$	1.3
Derivatives:
Interest rate			$	0.2		$	0.1		$	0.1		$	0.1					$	0.5		$	0.1		$	0.2		$	0.1

Stressed VaR is calculated by running the portfolios through a predetermined stress period which is approved by the Market Risk Committee and is calculated at the 99% confidence level using the same model and assumptions used for general VaR. The aggregate stressed VaR for all covered positions was $1.1 million at March 31, 2026, and $4.5 million at March 31, 2025. Figure 21 summarizes our stressed VaR at the 99% confidence level with a one day holding period for significant portfolios of covered positions for the three months ended March 31, 2026, and March 31, 2025. Changes in VaR are dependent on portfolio composition, inventory levels, and other market factors.

Figure 21. Stressed VaR for Significant Portfolios of Covered Positions

			2026															2025
			Three months ended March 31,															Three months ended March 31,
Dollars in millions			High			Low			Mean			March 31,						High			Low			Mean			March 31,
Trading account assets:
Fixed income			$	2.2		$	.6		$	1.6		$	.8					$	5.2		$	2.6		$	3.9		$	4.2
Derivatives:
Interest rate			$	0.2		$	0.1		$	0.2		$	0.2					$	0.3		$	0.1		$	0.1		$	0.1

Market risk is a component of our internal capital adequacy assessment. Our risk-weighted assets include a market risk-equivalent asset amount, which consists of a VaR component, stressed VaR component, a de minimis exposure amount, and a specific risk add-on including the securitization positions. The aggregate market value of the securitization positions as defined by the Market Risk Rule was $5 million at March 31, 2026, all of which were mortgage-backed security positions. Specific risk is the price risk of individual financial instruments, which is not accounted for by changes in broad market risk factors and is measured through a standardized approach. Market risk weighted assets, including the specific risk calculations, are run quarterly by MTRM in accordance with the Market Risk Rule, and approved by the Chief Market & Treasury Risk Officer.

Nontrading market risk

Most of our nontrading market risk is derived from interest rate fluctuations and its impacts on our traditional loan and deposit products, as well as investments, hedging relationships, long-term debt, and certain short-term borrowings. Interest rate risk, which is inherent in the banking industry, is measured by the potential for fluctuations in net interest income and the EVE. Such fluctuations may result from changes in interest rates and differences in the repricing and maturity characteristics of interest-earning assets and interest-bearing liabilities. We manage the exposure to changes in net interest income and the EVE in accordance with our risk appetite and in accordance with the Board-approved ERM policy.

Interest rate risk positions are influenced by a number of factors, including the balance sheet positioning that arises out of customer preferences for loan and deposit products, economic conditions, the competitive environment within our markets, changes in market interest rates that affect client activity, and our hedging, investing, funding, and capital positions. The primary components of interest rate risk exposure consist of reprice risk, basis risk, yield curve risk, and option risk.

• “Reprice risk”** is the exposure to changes in the level of interest rates and occurs when the volume of interest-bearing liabilities and the volume of interest-earning assets they fund (e.g., deposits used to fund loans) do not mature or reprice at the same time.

• “Yield curve risk” is the exposure to nonparallel changes in the slope of the yield curve (where the yield curve depicts the relationship between the yield on a particular type of security and its term to maturity) and occurs when interest-bearing liabilities and the interest-earning assets that they fund do not price or reprice to the same term point on the yield curve.

• “Option risk”** is the exposure to a customer or counterparty’s ability to take advantage of the interest rate environment and terminate or reprice one of our assets, liabilities, or off-balance sheet instruments prior to contractual maturity. Option risk occurs when exposures to customer and counterparty early withdrawals or prepayments are not mitigated with an offsetting position or appropriate compensation.

• “Basis risk”** is the exposure to asymmetrical changes in interest rate indexes and occurs when floating-rate assets and floating-rate liabilities reprice at the same time, but in response to different market factors or indexes.

The management of nontrading market risk is centralized within Corporate Treasury. The Risk Committee of our Board provides oversight of nontrading market risk. The ERM Committee, the ALCO, and the Treasury Risk Oversight Committee (“TROC”) review reports on the interest rate risk exposures described above. In addition, the ALCO and the TROC review reports on stress tests and sensitivity analyses related to interest rate risk. These committees have various responsibilities related to managing nontrading market risk, including recommending, approving, and monitoring strategies that maintain risk positions within approved tolerance ranges. The A/LM policy provides the framework for the oversight and management of interest rate risk and is administered by the ALCO. The MTRM, as the second line of defense, provides additional oversight.

Net interest income simulation analysis. The primary tool we use to measure our interest rate risk is simulation analysis. For purposes of this analysis, we estimate our net interest income based on the current and projected composition of our on- and off-balance sheet positions, accounting for recent and anticipated trends in customer activity. The analysis also incorporates assumptions for the current and projected interest rate environments and balance sheet growth projections based on a most likely macroeconomic outlook. The modeling incorporates investment portfolio and swap portfolio balances consistent with management's desired interest rate risk positioning. The simulation model estimates the amount of net interest income at risk by simulating the change in net interest income that would occur if rates were to gradually diverge from market expectations over the next 12 months (subject to a floor on market interest rates at zero).

Figure 22 presents the results of the simulation analysis at March 31, 2026, and March 31, 2025. At March 31, 2026, our simulated exposure to changes in interest rates remained relatively neutral. The exposure to declining rates has changed from (0.39)% as of March 31, 2025 to 0.12% as of March 31, 2026, while the exposure to rising rates has changed from 1.41% as of March 31, 2025 to 0.38% as of March 31, 2026.

We are actively managing the balance sheet to maintain desired IRR positioning in the current environment. Tolerance levels for risk management require the development of remediation plans to maintain residual risk within tolerance if simulation modeling demonstrates that a gradual, parallel 200 basis point Increase or 200 basis point decrease in interest rates over the next 12 months would reduce net interest income over the same period by more than 5.0%, revised mid-2025 from 5.5% to reflect tighter risk management. Current modeled exposure is within Board-approved tolerances.

Figure 22. Simulated Change in Net Interest Income

			March 31, 2026						March 31, 2025
Basis point change assumption			-200			+200			-200			+200
Tolerance level			(5.00)		%	(5.00)		%	(5.50)		%	(5.50)		%
Interest rate risk assessment			0.12		%	0.38		%	(0.39)		%	1.41		%

Simulation analyses produce an estimate of interest rate exposure based on assumption inputs within the model. Assumptions are tailored to the specific interest rate environment and validated on a regular basis. However, actual results may differ from those derived in simulation analyses due to unanticipated changes to the balance sheet composition, consumer behavior, product pricing, market interest rates, changes in management’s desired interest rate risk positioning, investment, funding and hedging activities, or repercussions from exogenous events.

Regular sensitivity analyses are performed on the model inputs that could materially change the resulting risk assessments. Assessments are performed using different yield curve shapes, including steepenings or flattenings of the curve, immediate changes in market interest rates, and changes in the relationship of money market interest rates. Assessments are also performed on changes to the following assumptions: loan and deposit balances, the pricing of deposits without contractual maturities, changes in lending spreads, prepayments on loans and securities, investment, funding and hedging activities, and liquidity and capital management strategies.

The results of additional assessments indicate that net interest income could increase or decrease from the base simulation results presented in Figure 22. Net interest income is highly dependent on the timing, magnitude, frequency, and path of interest rate changes and the associated assumptions for deposit repricing relationships, lending spreads, and the balance behavior of transaction accounts. If fixed-rate assets increase by $1 billion, or fixed-rate liabilities decrease by $1 billion, then the potential benefit to declining rates would increase by approximately 21 basis points. A five percentage point increase or decrease in the interest-bearing deposit beta assumption changes the current simulation results by approximately 98 basis points.

The current interest rate risk position could fluctuate to higher or lower levels of risk depending on the competitive environment and client behavior that may affect the actual volume, mix, maturity, and repricing characteristics of loan and deposit flows. Corporate Treasury’s discretionary activities related to funding, investing, and hedging may also change as a result of changes in customer business flows or changes in management’s desired interest rate risk positioning. As changes occur to both the configuration of the balance sheet and the outlook for the economy, management proactively evaluates hedging opportunities that may change the interest rate risk profile.

Simulations are also conducted that measure the effect of changes in market interest rates in the second and third years of a three-year horizon. These simulations are conducted in a similar manner to those based on a 12-month horizon. To capture longer-term exposures, changes in the EVE are calculated as discussed in the following section.

Economic value of equity modeling. EVE complements net interest income simulation analysis as it estimates risk exposure beyond 12-, 24-, and 36-month horizons. EVE modeling measures the extent to which the economic values of assets, liabilities, and off-balance sheet instruments may change in response to fluctuations in interest rates. EVE is calculated by subjecting the balance sheet to an immediate increase or decrease in interest rates, measuring the resulting change in the values of assets, liabilities, and off-balance sheet instruments, and comparing those amounts with the base case of the current interest rate environment. EVE policy limits are measured against a +/-200 basis point scenario subject to a floor on market interest rates at zero. This analysis is highly dependent upon assumptions applied to assets and liabilities with non-contractual maturities. Those assumptions are based on historical behaviors, as well as forward expectations. Remediation plans are similarly developed if the analysis indicates that the EVE will decrease by 15% or more in response to an instantaneous increase or decrease in interest rates. The position is within these guidelines as of March 31, 2026.

Management of interest rate exposure. The results of the various interest rate risk analyses are used to formulate A/LM strategies to achieve the desired risk profile while managing to objectives for capital adequacy and liquidity risk exposures. Specifically, risk positions are managed by purchasing or selling securities, issuing term debt with floating or fixed interest rates, and using derivatives. Interest rate swaps and options are predominantly used, which modify the interest rate characteristics of certain assets and liabilities.

Figure 23 shows all swap positions held for A/LM purposes. These positions are used to convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index. For example, fixed-rate debt is converted to a floating rate through a “receive fixed/pay variable” interest rate swap. The volume, maturity, and mix of portfolio swaps change frequently to reflect broader A/LM objectives and the balance sheet positions to be hedged. For more information about how interest rate swaps are used to manage the risk profile, see Note 7 (“Derivatives and Hedging Activities”).

Figure 23. Portfolio Swaps by Interest Rate Risk Management Strategy

			March 31, 2026
												Weighted-Average												December 31, 2025
Dollars in millions			Notional Amount			Fair Value						Maturity (Years)			Receive Rate			Pay Rate						Notional Amount			Fair Value
Receive fixed/pay variable — conventional loans			$	39,450		$	(78)					1.7			3.4		%	3.6		%				$	37,050		$	66
Receive fixed/pay variable — conventional debt			9,435			(227)						4.4			2.8			3.7						8,722			(198)
Receive fixed/pay variable — forward loans			—			—						—			—			—						2,200			40
Pay fixed/receive variable — conventional debt			50			—						2.3			3.9			3.6						50			—
Pay fixed/receive variable — securities			10,551			(39)						2.1			3.6			4.1						10,194			(100)
Total portfolio swaps			$	59,486		$	(344)		(a)			2.2			3.3		%	3.7		%				$	58,216		$	(192)		(a)
Floors — forward purchased			$	500		$	—					0.1			—		%	—		%				$	3,250		$	—
Floors — forward sold			500			—						0.1			—			—						3,250			—
Total floors			$	1,000		$	—					—			—		%	—		%				$	6,500		$	—

(a)Excludes accrued interest of $197 million at March 31, 2026, and accrued interest of $173 million at December 31, 2025.

Liquidity risk management

Liquidity risk, which is inherent in the banking industry, is measured by our ability to accommodate liability maturities and deposit withdrawals, meet contractual obligations, and fund new business opportunities at a reasonable cost, in a timely manner, and without adverse consequences. Liquidity management involves maintaining sufficient and diverse sources of funding to accommodate planned, as well as unanticipated, changes in cash flows of assets and liabilities under both normal and adverse conditions.

Governance structure

We manage liquidity for all of our affiliates on a consolidated basis. This approach considers the funding sources available to each entity, as well as each entity’s capacity to manage through adverse conditions.

The management of consolidated liquidity risk is centralized within Corporate Treasury. Oversight and governance is provided by the Board, the ALCO, the TROC, and the Chief Risk Officer. The Asset Liability Management Policy provides the framework for the oversight and management of liquidity risk and is administered by the ALCO. The Corporate Treasury Oversight group within the MTRM, as the second line of defense, provides additional oversight. Our current liquidity risk management practices are in compliance with the Federal Reserve Board’s Enhanced Prudential Standards.

These committees mentioned above regularly review liquidity and funding summaries, liquidity trends, peer comparisons, variance analyses, liquidity projections, internal liquidity stress tests, and goal tracking reports. The reviews generate a discussion of positions, trends, and directives on liquidity risk and shape a number of our decisions. When liquidity pressure is elevated, positions are monitored more closely and reporting is more frequent. To ensure that emerging issues are identified, we monitor an extensive set of systemic and idiosyncratic early warning indicators daily.

Factors affecting liquidity

Our liquidity could be adversely affected by both direct and indirect events. An example of a direct event would be a downgrade in our credit ratings by a rating agency. Examples of indirect events (events unrelated to us) that could impair our access to liquidity would be an act of terrorism or war, natural disasters, global pandemics, disruptive political events, or the default or bankruptcy of a major corporation, mutual fund, or hedge fund. Similarly, market speculation, or rumors about us or the banking industry in general, may adversely affect the cost and availability of normal funding sources. For a discussion of certain risks which may impact our liquidity, see Part I, Item 1A. "Risk Factors" on pages 25-43 of our 2025 Form 10-K. For more information on recent liquidity activity, see the header "Our liquidity position and recent activity" in this report below.

Our credit ratings and rating agency outlooks at March 31, 2026, are shown in Figure 24. While we believe these credit ratings, under normal conditions in the capital markets, will enable KeyCorp or KeyBank to issue fixed income securities to investors, downgrades in our credit ratings could increase our cost of funds, trigger additional collateral or funding requirements, and decrease the number of investors and counterparties willing to lend to us.

Figure 24. Credit Ratings

March 31, 2026			Outlook			Short-Term Borrowings			Long-Term Deposits (a)			Senior Long-Term Debt			Subordinated Long-Term Debt			Capital Securities			Preferred Stock
KEYCORP
Standard & Poor’s			Stable			A-2			N/A			BBB			BBB-			BB			BB
Moody’s			Positive			P-2			N/A			Baa2			Baa2			Baa3			Ba1
Fitch Ratings, Inc.			Stable			F1			N/A			A-			N/A			BB+			BB+
DBRS, Inc.			Stable			R-1 (low)			N/A			A (low)			BBB (high)			BBB (high)			BBB (low)
KEYBANK
Standard & Poor’s			Stable			A-2			N/A			BBB+			BBB			N/A			N/A
Moody’s			Positive			P-2			P-1/A2			Baa1			Baa2			N/A			N/A
Fitch Ratings, Inc.			Stable			F1			F1/A			A-			BBB+			N/A			N/A
DBRS, Inc.			Stable			R-1 (low)			A			A			A (low)			N/A			N/A

(a)P-1 rating assigned by Moody’s is specific to KeyBank’s short-term bank deposit ratings. F1 assigned by Fitch Ratings, Inc. is specific to KeyBank’s short-term deposit ratings.

Managing liquidity risk

Most of our liquidity risk is derived from our business model, which involves taking in deposits, many of which can be withdrawn at any time, and lending them out in the form of illiquid loan assets. The assessments of liquidity risk are measured under the assumption of normal operating conditions as well as under stressed environments. We manage these exposures in accordance with our risk appetite, and within Board-approved policy limits.

We regularly monitor our liquidity position and funding sources and measure our capacity to obtain funds in a variety of hypothetical scenarios in an effort to maintain an appropriate mix of available and affordable funding. In the normal course of business, we perform a monthly internal liquidity stress test at the consolidated KeyCorp level. From time to time, we may conduct internal liquidity stress tests more frequently, and use assumptions to reflect the changed market environment. Our testing incorporates estimates for loan and deposit lives based on our historical studies. Internal liquidity stress tests analyze potential liquidity scenarios under various funding constraints and time periods. Ultimately, they determine the periodic effects that major direct and indirect events would have on our access to funding markets and our ability to fund our normal operations. To compensate for the effect of these assumed liquidity pressures, we consider alternative sources of liquidity and maturities over different time periods to project how funding needs would be managed.

Our primary source of funding for KeyBank are customer deposits resulting in a consolidated loan-to-deposit ratio of 75% as of March 31, 2026. If the cash flows needed to support operating and investing activities are not satisfied by deposit balances, we rely on wholesale funding or on-balance sheet liquid reserves. Additionally, excess cash generated by operating, investing, and deposit-gathering activities may be used to repay outstanding debt or invest in liquid assets.

We maintain a Contingency Funding Plan that outlines the process for addressing a liquidity crisis. As part of the plan, we maintain on-balance sheet liquid reserves referred to as our liquid asset portfolio, which consists of high quality liquid assets. During a stress period, that reserve could be used as a source of funding to provide time to develop and execute a longer-term strategy. Figure 25 shows our available contingent liquidity at March 31, 2026, and December 31, 2025. As of March 31, 2026, our secured term borrowings were $6.1 billion, an increase compared to the fourth quarter of 2025 to fund seasonal deposit outflows and strong loan growth during the quarter.

Figure 25. Available Contingent Liquidity

Dollars in billions			March 31, 2026			December 31, 2025
Available contingent liquidity:
Unpledged securities			$	29.5		$	29.4
Net balances of federal funds sold and balances in our Federal Reserve account			11.6			9.3
Unused secured borrowing capacity at the Federal Reserve Bank of Cleveland			41.9			39.5
Unused secured borrowing capacity at the FHLB			13.1			18.9
Total			$	96.1		$	97.0

Liquidity programs

We have several liquidity programs, which are described in “Liquidity Risk Management” beginning on page 82 of our 2025 Form 10-K, that are designed to enable KeyCorp and KeyBank to raise funds in the public and private debt markets. The proceeds from most of these programs can be used for general corporate purposes, including acquisitions. These liquidity programs are reviewed from time to time by the Board and are renewed and replaced, as necessary. There are no restrictive financial covenants in any of these programs.

Liquidity for KeyCorp

The primary sources of liquidity for KeyCorp are dividends from KeyBank and the proceeds from the issuance of debt and capital securities. KeyCorp has sufficient liquidity when it can service its debt; support customary corporate operations and activities (including acquisitions); support occasional guarantees of subsidiaries’ obligations in transactions with third parties at a reasonable cost, in a timely manner, and without adverse consequences; and fund capital distributions in the form of dividends and share buybacks.

We use a parent cash coverage months metric as the primary measure to assess parent company liquidity. The parent cash coverage months metric measures the number of months into the future where projected obligations can be met with the current quantity of liquidity. We generally issue term debt to supplement dividends from

KeyBank to manage our liquidity position at or above our targeted levels. The parent company generally maintains cash and short-term investments in an amount sufficient to meet projected debt maturities and dividends for the next 24 months. At March 31, 2026, KeyCorp held $5.4 billion in cash and short-term investments, which we projected to be sufficient to meet our projected obligations, including the repayment of our maturing debt obligations for the periods prescribed by our risk tolerance.

Typically, KeyCorp meets its liquidity requirements through regular dividends from KeyBank, supplemented with the proceeds from term debt issuances. Federal banking law limits the amount of capital distributions that a bank can make to its holding company without prior regulatory approval. A national bank’s dividend-paying capacity is affected by several factors, including net profits (as defined by statute) for the two previous calendar years and for the current year, up to the date of dividend declaration. During the first quarter of 2026, KeyBank paid $570 million in cash dividends to KeyCorp. As of March 31, 2026, KeyBank had regulatory capacity to pay $795 million in dividends to KeyCorp without prior regulatory approval.

On January 28, 2026, KeyCorp issued notes under the MTN program. KeyCorp issued $750 million of 5.305% Fixed-to-Floating Rate Senior Notes due January 28, 2037. Accordingly, at March 31, 2026, there was $12.5 billion available for issuance under the Medium-Term Note Program.

There were no bank note issuances during the first quarter. At March 31, 2026, there is $20.0 billion available for issuance under the KeyBank Bank Note Program.

Our liquidity position and recent activity

Our liquid asset portfolio, which includes overnight and short-term investments, as well as unencumbered, high quality liquid securities held as protection against a range of potential liquidity stress scenarios, continues to exceed the amount that we estimate would be necessary to manage through an adverse liquidity event by providing sufficient time to develop and execute a longer-term solution.

From time to time, KeyCorp or KeyBank may seek to retire, repurchase, or exchange outstanding debt, capital securities, preferred shares, or common shares through cash purchase, privately negotiated transactions or other means. Additional information on repurchases of Common Shares by KeyCorp is included in Part II, Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities beginning on page 48 of our 2025 Form 10-K and Part II, Item 2 of this report. Such transactions depend on prevailing market conditions, our liquidity and capital requirements, contractual restrictions, regulatory requirements, and other factors. The amounts involved may be material, individually or collectively.

The Consolidated Statements of Cash Flows summarize our sources and uses of cash by type of activity for the three-month periods ended March 31, 2026, and March 31, 2025.

For more information regarding liquidity governance structure, management of liquidity risk at KeyBank and KeyCorp, long-term liquidity strategies, and other liquidity programs, see “Liquidity Risk Management” beginning on page 82 of our 2025 Form 10-K as well as the disclosure included in Part II, Item 1A. “Risk Factors” of this report.

Credit risk management

Credit risk is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Like other financial services institutions, we make loans, extend credit, distribute credit risk, purchase securities, provide financial and payments products, and enter into financial derivative contracts, all of which have related credit risk.

Credit policy, approval, and evaluation

We manage credit risk exposure through a multifaceted program. The Credit Risk Committee recommends Significant Level 1 credit policies to the Board Risk Committee for approval. These policies are communicated throughout the organization to foster a consistent approach to granting credit.

Our credit risk management team and certain individuals within our lines of business, to whom credit risk management has delegated limited credit authority, are responsible for credit approval. Individuals with assigned credit authority are authorized to grant exceptions to credit policies. It is not unusual to make exceptions to

established policies when mitigating circumstances dictate, however, a corporate level tolerance has been established to keep exceptions at an acceptable level based upon portfolio and economic considerations.

Our credit risk management team uses risk models to evaluate consumer loans. These models, known as scorecards, forecast the probability of serious delinquency and default for an applicant. The scorecards are embedded in the application processing system, which allows for real-time scoring and automated decisions for many of our products. We periodically validate the loan scoring processes.

We maintain an active concentration management program to mitigate concentration risk in our credit portfolios. For individual obligors, we employ a sliding scale of exposure, known as hold limits, which is dictated by the type of loan and strength of the borrower.

Allowance for loan and lease losses

We estimate the appropriate level of the ALLL on at least a quarterly basis. The methodology used is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 109 of our 2025 Form 10-K. Briefly, the ALLL estimate uses various models and estimation techniques based on our historical loss experience, current borrower characteristics, current economic conditions, reasonable and supportable forecasts, and other relevant factors. The ALLL at March 31, 2026, represents our best estimate of the lifetime expected credit losses inherent in the loan portfolio at that date.

As shown in Figure 26, our ALLL from continuing operations increased by $22 million, or 1.5%, from December 31, 2025. The increase in the ALLL from continuing operations primarily reflects the addition of qualitative reserves to account for elevated economic uncertainty driven by geopolitical tensions and potential downside risks from energy price volatility. These increases were partially offset by continued improvement in the commercial portfolio mix. The commercial ALLL increased by $19 million, or 1.8%, from December 31, 2025, through March 31, 2026. Our consumer ALLL increased $3 million, or 0.9%, from December 31, 2025, through March 31, 2026. Refer to Note 4 (“Asset Quality”) within this report for further discussion of changes in the ALLL.

Figure 26. Allocation of the Allowance for Loan and Lease Losses

			March 31, 2026												December 31, 2025
Dollars in millions			Amount			Percent of Allowance to Total Allowance			Percent of Loan Type to Total Loans						Amount			Percent of Allowance to Total Allowance			Percent of Loan Type to Total Loans
Commercial and industrial			$	767		52.9		%	55.5		%				$	745		50.6		%	54.1		%
Commercial real estate:
Commercial mortgage			253			17.5			12.9						252			19.2			12.9
Construction			51			3.5			2.6						55			3.5			2.7
Total commercial real estate loans			304			21.0			15.5						307			22.7			15.6
Commercial lease financing			26			1.8			2.0						26			1.7			2.1
Total commercial loans			1,097			75.7			73.0						1,078			75.0			71.8
Real estate — residential mortgage			69			4.8			16.9						66			4.7			17.6
Home equity loans			51			3.5			5.1						52			4.7			5.3
Other consumer loans			148			10.2			4.1						149			9.9			4.4
Credit cards			84			5.8			0.9						82			5.7			0.9
Total consumer loans			352			24.3			27.0						349			25.0			28.2
Total ALLL — continuing operations (a)			$	1,449		100.0		%	100.0		%				$	1,427		100.0		%	100.0		%

(a)Excludes allocations of the ALLL related to the discontinued operations of the education lending business in the amount of $11 million at March 31, 2026, and $11 million at December 31, 2025.

Net loan charge-offs

Figure 27 shows the trend in our net loan charge-offs by loan type, while the composition of loan charge-offs and recoveries by type of loan is presented in Figure 29. Figure 28 shows the ratios of net charge-offs by loan category as a percentage of the respective average loan balance.

Net loan charge-offs for the three months ended March 31, 2026, decreased $9 million compared to the year-ago quarter.

Figure 27. Net Loan Charge-offs (Recoveries) from Continuing Operations

			2026						2025
Dollars in millions			First						Fourth			Third			Second			First
Commercial and industrial			$	80					$	62		$	66		$	75		$	52
Commercial real estate:
Commercial mortgage			1						19			27			5			36
Construction			—						—			—			—			—
Total commercial real estate loans			1						19			27			5			36
Commercial lease financing			—						4			—			2			—
Total commercial loans			81						85			93			82			88
Real estate — residential mortgage			(1)						—			(1)			(1)			—
Home equity loans			—						—			—			(1)			—
Other consumer loans			13						12			13			11			12
Credit cards			8						7			9			11			10
Total consumer loans			20						19			21			20			22
Total net loan charge-offs			$	101					$	104		$	114		$	102		$	110

Figure 28. Net Loan Charge-offs (Recoveries) to Average Loans from Continuing Operations

			2026						2025
Dollars in millions			First						Fourth			Third			Second			First
Commercial and industrial			0.55		%				0.43		%	0.46		%	0.54		%	0.40		%
Commercial real estate:
Commercial mortgage			0.03						0.56			0.78			0.18			1.09
Construction			—						—			0.04			—			—
Total commercial real estate loans			0.02						0.46			0.66			0.15			0.89
Commercial lease financing			0.01						0.73			0.03			0.27			(0.01)
Total commercial loans			0.42						0.44			0.49			0.44			0.49
Real estate — residential mortgage			(0.02)						(0.01)			(0.01)			(0.02)			—
Home equity loans			—						0.05			(0.04)			(0.02)			(0.02)
Other consumer loans			1.16						0.96			0.98			0.92			0.98
Credit cards			3.77						3.44			4.00			4.24			4.69
Total consumer loans			0.28						0.26			0.26			0.25			0.29
Total net loan charge-offs to average loans			0.38		%				0.39		%	0.42		%	0.39		%	0.43		%

Figure 29. Summary of Loan and Lease Loss Experience from Continuing Operations

			Three months ended March 31,
Dollars in millions			2026			2025
Average loans outstanding			$	107,737		$	104,354
Allowance for loan and lease losses at beginning of period			$	1,427		$	1,409
Loans charged off:
Commercial and industrial			$	90		$	62
Commercial real estate:
Commercial mortgage			1			36
Construction			—			—
Total commercial real estate loans(a)			1			36
Commercial lease financing			—			—
Total commercial loans			91			98
Real estate — residential mortgage			—			1
Home equity loans			1			1
Other consumer loans			15			14
Credit cards			10			12
Total consumer loans			26			28
Total loans charged off			117			126
Recoveries:
Commercial and industrial			10			10
Commercial real estate:
Commercial mortgage			—			—
Construction			—			—
Total commercial real estate loans(a)			—			—
Commercial lease financing			—			—
Total commercial loans			10			10
Real estate — residential mortgage			1			1
Home equity loans			1			1
Other consumer loans			2			2
Credit cards			2			2
Total consumer loans			6			6
Total recoveries			16			16
Net loan charge-offs			(101)			(110)
Provision (credit) for loan and lease losses			123			130
Allowance for loan and lease losses at end of period			$	1,449		$	1,429
Liability for credit losses on lending-related commitments at beginning of period			$	313		$	290
Provision (credit) for losses on lending-related commitments			(17)			(12)
Other			—			—
Liability for credit losses on lending-related commitments at end of period(b)			$	296		$	278
Total allowance for credit losses at end of period			$	1,745		$	1,707
Net loan charge-offs to average total loans			0.38		%	0.43		%
Allowance for loan and lease losses to period-end loans			1.33			1.36
Allowance for credit losses to period-end loans			1.60			1.63
Allowance for loan and lease losses to nonperforming loans			212.5			208.3
Allowance for credit losses to nonperforming loans			255.9			248.8
Discontinued operations — education lending business:
Loans charged off			$	1		$	1
Recoveries			—			—
Net loan charge-offs			$	(1)		$	(1)

(a)See Figure 10 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial real estate loan portfolio.

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

Nonperforming assets

Figure 30 shows the composition of our nonperforming assets. As shown in Figure 30, nonperforming assets at March 31, 2026, increased $65 million from December 31, 2025. The increase was driven by two idiosyncratic exposures within the utilities and multifamily real estate sectors. Management does not view this activity as indicative of broader credit deterioration, and these exposures are actively managed and well reserved.

See Note 1 (“Summary of Significant Accounting Policies”) of our 2025 Form 10-K under the headings “Nonperforming Loans,” “Impaired Loans,” and “Allowance for Loan and Lease Losses” for a summary of our nonaccrual and charge-off policies.

Figure 30. Summary of Nonperforming Assets and Past Due Loans from Continuing Operations

Dollars in millions			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Commercial and industrial			$	284		$	256		$	253		$	280		$	288
Commercial real estate:
Commercial mortgage			190			157			214			226			206
Construction			—			—			—			—			—
Total commercial real estate loans(a)			190			157			214			226			206
Commercial lease financing			6			7			—			—			—
Total commercial loans(b)			480			420			467			506			494
Real estate — residential mortgage			115			104			98			95			94
Home equity loans			76			80			82			84			87
Other consumer loans			4			4			4			4			4
Credit cards			7			7			7			7			7
Total consumer loans			202			195			191			190			192
Total nonperforming loans			682			615			658			696			686
OREO			10			9			10			11			14
Nonperforming loans held for sale			—			3			—			—			—
Other nonperforming assets			—			—			—			—			—
Total nonperforming assets			$	692		$	627		$	668		$	707		$	700
Accruing loans past due 90 days or more			$	153		$	99		$	110		$	74		$	86
Accruing loans past due 30 through 89 days			137			220			254			266			281
Nonperforming assets from discontinued operations — education lending business			2			2			2			2			1
Nonperforming loans to period-end portfolio loans			0.62		%	0.58		%	0.62		%	0.65		%	0.65		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets			0.63			0.59			0.63			0.66			0.67

(a)See Figure 10 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial real estate loan portfolio.

(b)See Figure 9 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial loan portfolio.

Figure 31 shows the activity that caused the change in our nonperforming loan balance during each of the last five quarters.

Figure 31. Summary of Changes in Nonperforming Loans from Continuing Operations

			2026						2025
Dollars in millions			First						Fourth			Third			Second			First
Balance at beginning of period			$	615					$	658		$	696		$	686		$	758
Loans placed on nonaccrual status			253						248			210			233			170
Charge-offs			(117)						(124)			(140)			(127)			(126)
Loans sold			(2)						(7)			(13)			—			—
Payments			(37)						(124)			(68)			(74)			(57)
Transfers to OREO			(1)						(1)			(1)			(1)			(2)
Loans returned to accrual status			(29)						(35)			(26)			(21)			(57)
Balance at end of period			$	682					$	615		$	658		$	696		$	686

Operational and compliance risk management

Like all businesses, we are subject to operational risk, which is the risk of loss resulting from human error or malfeasance, inadequate or failed internal processes and systems, and external events. These events include, among other things, threats to our cybersecurity, as we are reliant upon information systems and the internet to conduct our business activities. Operational risk intersects with compliance risk, which is the risk of loss from violations of, or noncompliance with, laws, rules and regulations, prescribed practices, and ethical standards. Under the Dodd-Frank Act, large financial companies like Key are subject to heightened prudential standards and regulation. This heightened level of regulation has increased our operational risk. While operational and compliance risk are separate risk disciplines in KeyCorp’s ERM framework, losses and/or additional regulatory compliance costs

are included in operational loss reporting and could take the form of explicit charges, increased operational costs, or harm to our reputation.

We seek to mitigate operational risk through identification and measurement of risk, alignment of business strategies with risk appetite and tolerance, and a system of internal controls and reporting. We continuously strive to strengthen our system of internal controls to improve the oversight of our operational risk and to ensure compliance with laws, rules, and regulations. For example, an operational event database tracks the amounts and sources of operational risk and losses. This tracking mechanism helps to identify weaknesses and to highlight the need to take corrective action. We also rely upon software programs designed to assist in assessing operational risk and monitoring our control processes. This technology has enhanced the reporting of the effectiveness of our controls to senior management and the Board.

The Operational Risk Management Program provides the framework for the structure, governance, roles, and responsibilities, as well as the content, to manage operational risk for Key. The Compliance Risk Management Program serves the same function in managing compliance risk for Key. The Operational Risk Committee and the Compliance Risk Committee support the ERM Committee by identifying early warning events and trends, escalating emerging risks, and discussing forward-looking assessments. Both the Operational Risk Committee and the Compliance Risk Committee include attendees from each of the Three Lines of Defense. Primary responsibility for managing and monitoring internal control mechanisms lies with the managers of our various lines of business. The Operational Risk Committee and Compliance Risk Committee are senior management committees that oversee our level of operational and compliance risk and direct and support our operational and compliance infrastructure and related activities. These committees and the Operational Risk Management and Compliance Risk Management functions are an integral part of our ERM Program. Our Internal Audit function regularly assesses the overall effectiveness of our Operational Risk Management and Compliance Risk Management Programs and our system of internal controls. Internal Audit reports the results of reviews on internal controls and systems to senior management and the Audit Committee and updates the Risk Committee, as appropriate, on matters related to the oversight of these controls.

Cybersecurity

For information on our cybersecurity risk management and governance practices, please see Item 1C. Cybersecurity beginning on page 44 of our 2025 Form 10-K.

GAAP to Non-GAAP Reconciliations

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not

audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company,

they have limitations as analytical tools, and should not be considered in isolation, nor as a substitute for analyses

of results as reported under GAAP.

The tangible common equity ratio and the return on tangible common equity ratio have been a focus for some investors, and management believes that these ratios may assist investors in analyzing Key’s capital position without regard to the effects of intangible assets and preferred stock. Since analysts and banking regulators may assess our capital adequacy using tangible common equity, we believe it is useful to enable investors to assess our capital adequacy on these same bases.

						Three months ended
Dollars in millions						3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025
Net interest income (GAAP)						$	1,222		$	1,215		$	1,184		$	1,141		$	1,096
Add:			Taxable-equivalent adjustment			8			8			9			9			9
			Noninterest income (GAAP)			723			782			702			690			668
Less:			Noninterest expense (GAAP)			1,181			1,241			1,177			1,154			1,131
			Pre-provision net revenue from continuing operations (non-GAAP)			$	772		$	764		$	718		$	686		$	642
Net income (loss) attributable to Key common shareholders (GAAP)						$	486		$	475		$	453		$	389		$	369
Average Key shareholders’ equity (GAAP)						$	20,392		$	20,388		$	19,664		$	19,268		$	18,632
Less:			Intangible assets (average)			2,758			2,762			2,767			2,772			2,777
			Preferred stock (average)			2,500			2,500			2,500			2,500			2,500
			Average tangible common equity (non-GAAP) (A)			$	15,134		$	15,126		$	14,397		$	13,996		$	13,355
Key shareholders’ equity (GAAP)						$	19,987		$	20,381		$	20,102		$	19,484		$	19,003
Less:			Intangible assets			2,757			2,760			2,765			2,770			2,774
			Preferred stock (a)			2,446			2,446			2,446			2,446			2,446
			Tangible common equity (non-GAAP) (B)			$	14,784		$	15,175		$	14,891		$	14,268		$	13,783
Total assets (GAAP)						$	188,663		$	184,381		$	187,409		$	185,499		$	188,691
Less:			Intangible assets			2,757			2,760			2,765			2,770			2,774
			Tangible assets (non-GAAP) (C)			$	185,906		$	181,621		$	184,644		$	182,729		$	185,917
Tangible common equity to tangible assets ratio (non-GAAP) (B/C)						8.0		%	8.4		%	8.1		%	7.8		%	7.4		%
Income (loss) from continuing operations attributable to Key common shareholders (GAAP) (D)						$	486		$	474		$	454		$	387		$	370
Return on average tangible common equity from continuing operations (non-GAAP) (D/A)						13.0		%	12.4		%	12.5		%	11.1		%	11.2		%

(a)Net of capital surplus.

Adjusted noninterest expense and adjusted noninterest income are non-GAAP measures in that they are adjusted to exclude the impact of significant or unusual items. Management believes adjusting for significant or unusual items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to those selected items.

						Three months ended
Dollars in millions						3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025
Adjusted noninterest expense
Noninterest expense (GAAP)						$	1,181		$	1,241		$	1,177		$	1,154		$	1,131
Adjustments:
			FDIC special assessment (other expense)			—			21			5			—			—
Adjusted noninterest expense (non-GAAP)						$	1,181		$	1,262		$	1,182		$	1,154		$	1,131

Critical Accounting Policies and Estimates

Our business is dynamic and complex. Consequently, we must exercise judgment in choosing and applying accounting policies and methodologies. These choices are critical – not only are they necessary to comply with GAAP, they also reflect our view of the appropriate way to record and report our overall financial performance. All accounting policies are important, and all policies described in Note 1 (“Summary of Significant Accounting Policies”) beginning on page 91 of our 2025 Form 10-K should be reviewed for a greater understanding of how we record and report our financial performance. Note 1 (“Basis of Presentation and Accounting Policies”) of this report should also be reviewed for more information on accounting standards that have been adopted during the period.

In our opinion, some accounting policies are more likely than others to have a critical effect on our financial results and to expose those results to potentially greater volatility. These policies apply to areas of relatively greater business importance, or require us to exercise judgment and to make assumptions and estimates that affect amounts reported in the financial statements. Because these assumptions and estimates are based on current circumstances, they may prove to be inaccurate, or we may find it necessary to change them. We rely heavily on the use of judgment, assumptions, and estimates to make a number of core decisions, including accounting for the ALLL and assets and liabilities that involve valuation methodologies. In addition, we may employ outside valuation experts to assist us in determining fair values of certain assets and liabilities. A brief discussion of each of these areas appears on pages 91 through 95 of our 2025 Form 10-K. During the three months ended March 31, 2026, we did not significantly alter the manner in which we applied our critical accounting policies or developed related assumptions and estimates.

Accounting and Reporting Developments

Accounting Guidance Pending Adoption at March 31, 2026

Standard			Required Adoption			Description			Effect on Financial Statements or Other Significant Matters
ASU 2024-03 and ASU 2025-01 Income Statement— Reporting Comprehensive Income—Expense Disaggregation Disclosures (Topic 220-40)			January 1, 2027 Early adoption is permitted.			The guidance requires public companies disclose additional information about certain types of costs and expenses. The guidance could be applied on a prospective or retrospective basis.			The guidance is not expected to have a material impact on Key’s disclosures.
ASU 2025-08 Financial Instruments—Credit Losses (Topic 326): Purchased Loans			January 1, 2027 Early adoption is permitted.			This guidance expands the types of acquired financial assets that must use the gross‑up approach under ASC 326. Certain non‑PCD loans considered “seasoned” are now accounted for using the gross‑up approach at acquisition. All non‑PCD loans acquired in a business combination are considered “seasoned” and other acquired loans are considered “seasoned” if they were purchased at least 90 days after origination and the acquirer did not originate the loans. This guidance must be applied prospectively to loans that are acquired on or after the initial application date.			While we are currently evaluating the impact of this guidance on its financial condition and results of operations, we would also assess for early adoption upon any applicable future activity.
ASU 2025-09 Derivatives and Hedging (Topic 815) Hedge Accounting Improvements			January 1, 2027 Early adoption is permitted.			The accounting update expands cash flow hedge accounting by allowing the grouping of forecasted transactions with similar risk exposures. It introduces a model that allows entities to hedge forecasted interest payments on certain variable rate debt using simplified assumptions. The guidance also broadens hedge accounting for nonfinancial forecasted transactions, permitting eligible components of spot and forward purchases or sales to be designated as hedged risks. The amendments update hedge accounting for net written options to better reflect changes in interest rate markets proceeding the discontinuation of LIBOR. Further, this new guidance improves accounting for dual hedge strategies involving foreign currency debt by eliminating recognition mismatches and better reflecting the economics of combined interest rate and foreign exchange risk management. The guidance should be applied on a prospective basis.			We will early adopt this guidance within the first half of 2026 and do not expect it to have a material impact on our financial condition or results of operations.
ASU 2025-06 - Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40)			January 1, 2028 Early adoption permitted.			The guidance revises the accounting for internal-use software by replacing prescriptive development stage guidance with a principle-based capitalization threshold. Entities are required to begin capitalizing costs when management commits funding and it is probable the software will be completed and used as intended. This guidance may be applied on a prospective, retrospective or modified retrospective basis.			Key is currently evaluating the impact of this guidance on its financial condition and results of operations.