KEY filing — read by section

key-20260630 
 Table of contents 

 UNITED STATES 
 SECURITIES AND EXCHANGE COMMISSION 
 Washington D.C. 20549 
 
 FORM 10-Q 
 
 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
 For the quarterly period ended June 30, 2026 
 or 
 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
 For the transition period from to 
 
 Commission File Number 001-11302 
 
 KeyCorp 
 
 Exact name of registrant as specified in its charter: 
 
 Ohio 34-6542451 
 State or other jurisdiction of incorporation or organization: I.R.S. Employer Identification Number: 

 127 Public Square, Cleveland, Ohio 44114-1306 
 Address of principal executive offices: Zip Code: 

 ( 216 ) 689-3000 
 Registrant’s telephone number, including area code: 
 
 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: 
 
 Title of each class Trading Symbol(s) Name of each exchange on which registered 
 Common Shares, $1 par value 
 KEY 
 New York Stock Exchange 
 
 Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate 
 KEY PrI 
 New York Stock Exchange 
 
 Perpetual Non-Cumulative Preferred Stock, Series E) 
 
 Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non- 
 KEY PrJ 
 New York Stock Exchange 
 
 Cumulative Preferred Stock, Series F) 
 
 Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non- 
 KEY PrK 
 New York Stock Exchange 
 
 Cumulative Preferred Stock, Series G) 
 
 Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Reset Perpetual Non- KEY PrL New York Stock Exchange 
 
 Cumulative Preferred Stock, Series H) 

 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ 
 
 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ 
 
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
 
 Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ 
 Smaller reporting company ☐ Emerging growth company ☐ 

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 
 
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ 
 
 Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 
 
 Common Shares with a par value of $1 each 1,067,128,554 shares 
 
 Title of class Outstanding at July 31, 2026 

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 KEYCORP 
 TABLE OF CONTENTS 
 PART I. FINANCIAL INFORMATION 
 
 Page Number 
 Item 1. Financial Statements 
 44 
 
 Consolidated Balance Sheets 
 44 
 
 Consolidated Statements of Income 
 45 
 
 Consolidated Statements of Comprehensive Income 
 46 
 
 Consolidated Statements of Changes in Equity 
 47 
 
 Consolidated Statements of Cash Flows 
 48 
 
 Notes to Consolidated Financial Statements (Unaudited) 
 49 
 
 Note 1. Basis of Presentation and Accounting Policies 
 49 
 
 Note 2. Earnings Per Common Share 
 49 
 
 Note 3. Loan Portfolio 
 50 
 
 Note 4. Asset Quality 
 50 
 
 Note 5. Fair Value Measurements 
 63 
 
 Note 6. Securities 
 66 
 
 Note 7. Derivatives and Hedging Activities 
 68 
 
 Note 8. Mortgage Servicing Assets 
 73 
 
 Note 9. Leases 
 75 
 
 Note 10. Variable Interest Entities 
 75 
 
 Note 11. Income Taxes 
 77 
 
 Note 12. Acquisition s & Discontinued Operations 
 78 
 
 Note 13. Borrowings 
 78 
 
 Note 14. Contingent Liabilities and Guarantees 
 78 
 
 Note 15. Accumulated Other Comprehensive Income 
 80 
 
 Note 16. Shareholders’ Equity 
 81 
 
 Note 17. Business Segment Reporting 
 82 
 
 Note 18. Revenue from Contracts with Customers 
 84 
 
 Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 
 85 
 
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 Item 2. Management’s Discussion & Analysis of Financial Condition & Results of Operations 
 4 
 
 Introduction 
 4 
 
 Terminology 
 4 
 
 Forward-looking statements 
 5 
 
 Executive overview 
 7 
 
 Business outlook 
 7 
 
 Demographics 
 8 
 
 Supervision and regulation 
 8 
 
 Results of Operations 
 10 
 
 Earnings overview 
 10 
 
 Net interest income 
 10 
 
 Provision for credit losses 
 14 
 
 Noninterest income 
 14 
 
 Noninterest expense 
 16 
 
 Income taxes 
 16 
 
 Business Segment Results 
 18 
 
 Consumer Bank 
 18 
 
 Commercial Bank 
 19 
 
 Financial Condition 
 20 
 
 Loans and loans held for sale 
 20 
 
 Securities 
 24 
 
 Deposits and other sources of funds 
 26 
 
 Capital 
 27 
 
 Risk Management 
 30 
 
 Overview 
 30 
 
 Market risk management 
 30 
 
 Liquidity risk management 
 33 
 
 Credit risk management 
 36 
 
 Operational and compliance risk management 
 40 
 
 GAAP to Non-GAAP Reconciliations 
 41 
 
 Critical Accounting Policies and Estimates 
 42 
 
 Accounting and Reporting Developments 
 43 
 
 Item 3. Quantitative and Qualitative Disclosure about Market Risk 
 86 
 
 Item 4. Controls and Procedures 
 86 
 
 PART II. OTHER INFORMATION 
 Item 1. Legal Proceedings 
 86 
 
 Item 1A. Risk Factors 
 86 
 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 
 87 
 
 Item 5. Other Information 
 87 
 
 Item 6. Exhibits 
 88 
 
 Signature 
 89 
 
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 PART I. FINANCIAL INFORMATION 
 
 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 June 30, 2026, and June 30, 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 Common Equity Tier 1 capital , Tier 1 capital , and Tier 2 capital . These components of regulatory capital serve as bases for several measures of capital adequacy, which is an important indicator of financial stability and condition. 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. 
 
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 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 
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 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. 
 
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 Executive Overview 
 
 Key reported $472 million in net income from continuing operations attributable to Key common shareholders, or diluted earnings per share of $0.44, in the second quarter of 2026. 
 
 Our actions and results during the second 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. 
 
 • Relationship households increased approximately 3% year-over-year and commercial clients increased approximately 2% year-over-year, reflecting continued client acquisition and relationship deepening. 
 • Our priority fee-based businesses — investment banking, commercial payments, and wealth management – continued to contribute to revenue diversification, collectively growing 8% in the first half of 2026 compared with the prior-year period. 
 • We announced an agreement to acquire Clearwater U.K., which is expected to expand our middle-market mergers and acquisitions (“M&A”) advisory capabilities internationally and further support our priority fee-based business growth strategy. 
 • Our Assets Under Management were $74.2 billion for the second quarter of 2026, up 15.5% year-over-year, reflecting favorable market impacts as well as continued momentum in our wealth management business. 
 • Our continuous focus on maintaining our risk discipline has and should continue to position us to perform well through all business cycles. While nonperforming assets increased from idiosyncratic exposures, the broader portfolio performance remained within management’s expectations. Net charge-offs were 42 basis points in the second quarter and year-to-date charge-offs remained at the low end of the full-year outlook. 
 • We continued to deploy capital in a disciplined manner to support organic client growth, invest in the franchise, and return capital to shareholders. During the second quarter, we repurchased $341 million of common shares and remained on pace to complete at least $1.3 billion of share repurchases in 2026, while maintaining a strong capital position with a CET1 ratio of 11.2% (a) , which positions us to continue to support existing and prospective clients. 
 (a) June 30, 2026 capital ratios are estimates 
 
 Business outlook 
 
 We increased our full-year 2026 outlook for revenue, net interest income, average loans, and average commercial loans to reflect stronger-than-expected commercial loan growth through the first half of the year, continued client acquisition and relationship expansion, and healthy commercial loan pipelines. Our outlook also assumes a stable competitive deposit environment, continued benefit from fixed-rate asset repricing and swap maturities, and disciplined deposit and balance sheet management. Actual results may differ from this outlook due to changes in interest rates, deposit pricing, client activity, credit performance, capital markets activity, and broader macroeconomic conditions. Consistent with the forward guidance we provided on July 21, 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 - 8% (previously up ~7%) 
 
 Net interest income (TE) (b) 
 $4,671 Million up 9 - 11% (previously up 9 - 10%) 
 
 Net interest margin 4Q exit rate: 3.00 - 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 - 4% 
 Average loans $105.7 Billion up 4 - 5% (previously up 2 - 4%) 
 
 Average Commercial Loans $74.5 Billion up 8 - 10% (previously 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 growing $1Bn - $2Bn from 2Q26 (previously shown as 4Q exit rate: ~3.05% and 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. 
 
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 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 June 30, 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 
 June 30, 2026 (c) 
 
 Common Equity Tier 1 4.50 % 3.20 % 7.70 % 11.17 % 
 Tier 1 Capital 6.00 3.20 9.20 12.78 
 Total Capital 8.00 3.20 11.20 14.82 
 Leverage (a) 
 4.00 N/A 4.00 10.32 

 (a) As a Category IV 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 Category IV banking organization, KeyCorp is not subject to the countercyclical capital buffer of up to 2.5% imposed upon an advanced approaches banking organization or a Category III banking organization under the Regulatory Capital Rules. KeyCorp’s buffer is 3.20% as of October 1, 2025. 
 (c) June 30, 2026 capital ratios are estimates.
 
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 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 Category IV national bank, KeyBank is not subject to the 3% supplementary leverage ratio requirement. 
 
 As of June 30, 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. 
 
 CAMELS Rating System 
 
 On May 19, 2026, the Federal Financial Institutions Examination Council issued proposed revisions to the Uniform Financial Institutions Rating System, commonly known as CAMELS, that applies to certain financial institutions, including KeyBank. The proposal is intended to better focus ratings issued under CAMELS on factors that materially affect an institution’s financial condition and risk profile, and to improve transparency by more clearly articulating expectations for financial institutions. 
 
 FDIC Resolution Planning Requirements 
 
 On June 25, 2026, the FDIC proposed revisions to the resolution plan rules applicable to KeyBank and certain other insured depository institutions. Under the proposal, KeyBank would continue to file a full resolution plan with the FDIC every three years, but would no longer be required to file an interim supplement in years in which a full resolution plan is not required. The content requirements applicable to full resolution plan filings would also be modified and streamlined, to allow the FDIC to focus on information that most directly supports the FDIC’s ability to resolve an institution in a cost-effective manner. In connection with the proposal, the FDIC also approved an exemption from 2026 or 2027 FDIC resolution plan filing requirements for all insured depository institutions, including KeyBank. 
 
 FDIC Deposit Insurance Assessments 
 
 On June 25, 2026, the FDIC proposed revisions to its deposit insurance assessment regulations. The proposal would decrease KeyBank’s initial base assessment rate by one basis point, and would provide for a further decrease of up to an additional one basis point based on a “resolution readiness adjustment.” The resolution readiness adjustment would be voluntary and would have two components: (1) a virtual data room component that would test KeyBank’s ability to quickly populate a virtual data room with complete, timely and accurate information and (2) a data access component under which KeyBank would agree to provide the FDIC with access to KeyBank’s service providers and/or internal systems. For each component, compliance would result in a 0.5 basis point reduction in KeyBank’s initial base assessment rate. Because the two components would be considered separately, KeyBank could elect to voluntarily comply with one of them without being required to comply with the other. 
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 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 June 30, 2025, to the three months ended June 30, 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. 
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 Net interest income (TE) was $1.26 billion for the second quarter of 2026 and the net interest margin was 2.89%. Compared to the second quarter of 2025, net interest income (TE) increased $108 million and net interest margin increased by 23 basis points. These increases were driven by a reduction in deposit costs as a result of declining interest rates and proactive deposit beta management, the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher yielding investments, and a shift in the balance sheet composition to a more favorable mix of higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on repricing earning assets. 
 
 For the six months ended June 30, 2026, net interest income (TE) was $2.5 billion and the net interest margin was 2.88%. Compared to the same period in 2025, net interest income (TE) increased $233 million and net interest margin increased by 26 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, partially offset by the impact of lower interest rates on repricing earning assets. 
 
 Average loans were $110.1 billion for the second quarter of 2026, an increase of $4.4 billion compared to the second quarter of 2025. Average commercial loans increased by $6.7 billion, primarily due to an increase in commercial and industrial loans. Average consumer loans declined by $2.3 billion, reflective of the intentional run-off of low-yielding loans. 
 
 Average deposits totaled $147.6 billion for the second quarter of 2026, an increase of $131 million compared to the year-ago quarter, reflecting growth in demand deposits, partially offset by a decline in time deposits. 
 
 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. 
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 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 June 30, 2026 Three months ended June 30, 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) 
 $ 62,134 $ 896 5.78 % $ 55,604 $ 838 6.04 % $ 95 $ (37) $ 58 
 Real estate — commercial mortgage 13,911 197 5.68 13,311 200 6.02 9 (12) (3) 
 Real estate — construction 2,816 46 6.53 2,873 50 6.95 (1) (3) (4) 
 Commercial lease financing 2,117 20 3.77 2,524 22 3.59 (4) 2 (2) 
 Total commercial loans 80,978 1,159 5.73 74,312 1,110 5.99 99 (50) 49 
 Real estate — residential mortgage 18,305 153 3.35 19,446 162 3.34 (10) 1 (9) 
 Home equity loans 5,470 73 5.33 6,091 86 5.63 (8) (5) (13) 
 Other consumer loans 4,410 57 5.18 4,946 63 5.09 (7) 1 (6) 
 Credit cards 909 29 12.67 920 31 13.44 — (2) (2) 
 
 Total consumer loans 29,094 312 4.29 31,403 342 4.36 (25) (5) (30) 
 Total loans 110,072 1,471 5.35 105,715 1,452 5.51 74 (55) 19 
 Loans held for sale 1,085 15 5.68 770 11 5.72 4 — 4 
 Securities available for sale (b), (e) 
 38,518 367 3.58 40,714 411 3.76 (22) (22) (44) 
 Held-to-maturity securities (b) 
 9,425 95 4.05 7,038 61 3.46 23 11 34 
 Trading account assets 797 10 5.30 1,259 16 5.32 (6) — (6) 
 Short-term investments 10,705 101 3.79 13,489 157 4.67 (29) (27) (56) 
 Other investments 1,214 8 2.66 1,015 8 3.41 1 (1) — 
 Total earning assets 171,816 2,067 4.75 170,000 2,116 4.90 45 (94) (49) 
 Allowance for loan and lease losses (1,442) (1,424) 
 Accrued income and other assets 17,926 18,224 
 Discontinued assets 192 239 
 Total assets $ 188,492 $ 187,039 
 
 LIABILITIES 
 Money market deposits $ 42,843 $ 225 2.11 % $ 42,586 $ 276 2.60 % $ 2 $ (53) $ (51) 
 Demand deposits 61,013 280 1.84 57,155 309 2.17 20 (49) (29) 
 Savings deposits 4,406 1 0.04 4,631 1 0.06 — — — 
 
 Time deposits 11,749 94 3.21 15,601 144 3.70 (32) (18) (50) 
 Total interest-bearing deposits 120,011 600 2.01 119,973 730 2.44 (10) (120) (130) 
 Federal funds purchased and securities sold under repurchase agreements 
 2,002 19 3.71 415 4 4.28 15 — 15 
 Bank notes and other short-term borrowings 
 4,179 35 3.33 3,288 34 4.27 8 (7) 1 
 Long-term debt (f) 
 10,694 155 5.84 12,088 198 6.55 (22) (21) (43) 
 Total interest-bearing liabilities 136,886 809 2.37 135,764 966 2.86 (9) (148) (157) 
 Noninterest-bearing deposits 27,566 27,473 
 Accrued expense and other liabilities 3,901 4,295 
 Discontinued liabilities (f) 
 192 239 
 Total liabilities 168,545 167,771 
 EQUITY 
 Key shareholders’ equity 19,947 19,268 
 
 Total liabilities and equity $ 188,492 $ 187,039 
 
 Interest rate spread (TE) 2.38 % 2.04 % 
 Net interest income (TE) and net interest margin (TE) 
 $ 1,258 2.89 % $ 1,150 2.66 % $ 54 $ 54 108 
 TE adjustment (b) 
 8 9 
 Net interest income, GAAP basis $ 1,250 $ 1,141 
 
 (a) Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology. 
 (b) Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended June 30, 2026, and June 30, 2025. 
 (c) For purposes of these computations, nonaccrual loans are included in average loan balances. 
 (d) Commercial and industrial average balances include $209 million and $218 million of assets from commercial credit cards for the three months ended June 30, 2026, and June 30, 2025, respectively. 
 (e) Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.0 billion and $43.8 billion for the three months ended June 30, 2026 and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.81% and 4.03% for the three months ended June 30, 2026 and June 30, 2025, respectively. 
 (f) A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying our matched funds transfer pricing methodology to discontinued operations. 
 (g) Average balances presented are based on daily average balances over the respective stated period. 
 
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 Figure 3. Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates and Components of Net Interest Income Changes from Continuing Operations (g) 
 
 Six months ended June 30, 2026 Six months ended June 30, 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) 
 $ 60,650 $ 1,739 5.77 % $ 54,680 $ 1,638 6.04 % $ 173 $ (72) $ 101 
 Real estate — commercial mortgage 13,906 395 5.72 13,187 392 5.99 21 (18) 3 
 Real estate — construction 2,810 91 6.52 2,889 99 6.91 (3) (5) (8) 
 Commercial lease financing 2,165 41 3.79 2,588 46 3.55 (8) 3 (5) 
 Total commercial loans 79,531 2,266 5.73 73,344 2,175 5.98 183 (92) 91 
 Real estate — residential mortgage 18,448 308 3.35 19,591 327 3.34 (19) — (19) 
 Home equity loans 5,539 147 5.34 6,169 172 5.62 (17) (8) (25) 
 Other consumer loans 4,483 115 5.17 5,016 126 5.05 (14) 3 (11) 
 Credit cards 910 59 12.95 919 62 13.74 (1) (2) (3) 
 
 Total consumer loans 29,380 629 4.30 31,695 687 4.35 (51) (7) (58) 
 Total loans 108,911 2,895 5.34 105,039 2,862 5.49 132 (99) 33 
 Loans held for sale 1,088 29 5.33 792 25 6.23 8 (4) 4 
 Securities available for sale (b), (e) 
 38,958 737 3.58 40,021 803 3.73 (21) (45) (66) 
 Held-to-maturity securities (b) 
 9,112 181 3.98 7,156 124 3.46 37 20 57 
 Trading account assets 831 21 5.13 1,277 33 5.26 (11) (1) (12) 
 Short-term investments 10,918 204 3.77 14,345 331 4.65 (71) (56) (127) 
 Other investments 1,145 13 2.33 975 17 3.57 3 (7) (4) 
 Total earning assets 170,963 4,080 4.73 169,605 4,195 4.88 77 (192) (115) 
 Allowance for loan and lease losses (1,431) (1,413) 
 Accrued income and other assets 17,748 18,254 
 Discontinued assets 198 246 
 Total assets $ 187,478 $ 186,692 
 
 LIABILITIES 
 Money market deposits $ 42,788 $ 448 2.12 % $ 42,298 $ 551 2.63 % $ 6 $ (109) $ (103) 
 Demand deposits 61,244 559 1.84 57,307 619 2.18 41 (101) (60) 
 Savings deposits 4,392 2 .04 4,620 2 .06 — — — 
 
 Time deposits 11,763 189 3.23 16,110 311 3.90 (75) (47) (122) 
 Total interest-bearing deposits 120,187 1,198 2.01 120,335 1,483 2.49 (28) (257) (285) 
 Federal funds purchased and securities sold under repurchase agreements 1,772 33 3.70 258 5 4.22 28 — 28 
 Bank notes and other short-term borrowings 3,386 55 3.28 2,784 61 4.47 12 (18) (6) 
 Long-term debt (f) 
 10,442 306 5.90 11,934 391 6.58 (46) (39) (85) 
 Total interest-bearing liabilities 135,787 1,592 2.36 135,311 1,940 2.89 (34) (314) (348) 
 Noninterest-bearing deposits 27,251 27,655 
 Accrued expense and other liabilities 4,073 4,528 
 Discontinued liabilities (f) 
 198 246 
 Total liabilities 167,309 167,740 
 EQUITY 
 Key shareholders’ equity 20,169 18,952 
 
 Total liabilities and equity $ 187,478 $ 186,692 
 
 Interest rate spread (TE) 2.37 % 1.99 % 
 Net interest income (TE) and net interest margin (TE) $ 2,488 2.88 % $ 2,255 2.62 % $ 111 $ 122 $ 233 
 TE adjustment (b) 
 16 18 
 Net interest income, GAAP basis $ 2,472 $ 2,237 
 
 (a) Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology. 
 (b) Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the six months ended June 30, 2026, and June 30, 2025, respectively. 
 (c) For purposes of these computations, nonaccrual loans are included in average loan balances. 
 (d) Commercial and industrial average balances include $207 million and $216 million of assets from commercial credit cards for the six months ended June 30, 2026, and June 30, 2025, respectively. 
 (e) Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.3 billion and $43.2 billion for the six months ended June 30, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.78% and 4.01% for the six months ended June 30, 2026, and June 30, 2025, respectively. 
 (f) 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. 
 
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 Provision for credit losses 
 
 Key’s provision for credit losses was $92 million for the three months ended June 30, 2026, compared to $138 million for the three months ended June 30, 2025. The provision for credit losses was $198 million for the six months ended June 30, 2026, compared to $256 million for the six months ended June 30, 2025. The decrease compared to the prior year periods was primarily driven by reserve builds recorded in 2025 in response to more adverse and uncertain economic conditions, while the outlook in 2026 has been more resilient. The provision for credit losses in the second quarter of 2026 reflected net loan charge-offs of $115 million and a net reserve release of $23 million, as the favorable impact of an improved commercial portfolio mix more than offset the effects of loan growth, credit migration, and economic uncertainty. 
 
 Noninterest income 
 
 As shown in Figure 4, noninterest income was $706 million for the second quarter of 2026, compared to $690 million for the year-ago quarter. Noninterest income was $1.4 billion for the six months ended June 30, 2026, compared to $1.4 billion for the six months ended June 30, 2025. 
 
 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 June 30, Percent
Change Six Months Ended June 30, Percent
Change 
 Dollars in millions 2026 2025 2026 2025 
 Trust and investment services income $ 159 $ 146 8.9 % $ 316 $ 285 10.9 % 
 Investment banking and debt placement fees 169 178 (5.1) 366 353 3.8 
 Cards and payments income 94 85 10.6 180 167 7.8 
 Service charges on deposit accounts 77 73 5.5 154 142 8.5 
 Corporate services income 80 76 5.3 151 141 7.1 
 Commercial mortgage servicing fees 49 70 (30.0) 111 146 (24.0) 
 Corporate-owned life insurance income 33 32 3.1 67 65 3.1 
 Consumer mortgage income 17 15 13.3 30 28 7.1 
 Operating lease income and other leasing gains 10 14 (28.6) 18 23 (21.7) 
 Other income 15 1 N/M 33 8 N/M 
 Net securities gains (losses) 3 — N/M 3 — N/M 
 Total noninterest income $ 706 $ 690 2.3 % $ 1,429 $ 1,358 5.2 % 
 
 N/M = Not Meaningful 
 
 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 June 30, 2026, trust and investment services income was up $13 million, or 8.9%, compared to the same period one year ago. For the six months ended June 30, 2026, trust and investment services income was up $31 million, or 10.9%, compared to the same period one year ago. These increases were primarily attributable to higher investment management and trust income and brokerage income, reflecting higher assets under management and favorable market performance. 
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 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 June 30, 2026, our bank, trust, and registered investment advisory subsidiaries had assets under management of $74.2 billion, up 15.5% compared to June 30, 2025. The increase was driven by constructive market performance. 
 
 Figure 5. Assets Under Management or Administration 
 
 Dollars in millions June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 
 Discretionary assets under management by investment type: 
 Equity $ 40,763 $ 37,071 $ 37,433 $ 37,919 $ 35,987 
 
 Fixed income 16,514 16,100 15,500 15,183 14,591 
 Money market 6,099 7,180 8,144 6,595 6,420 
 Total discretionary assets under management 63,376 60,351 61,077 59,697 56,998 
 Non-discretionary assets under administration 10,828 9,405 8,887 8,158 7,246 
 Total $ 74,204 $ 69,756 $ 69,964 $ 67,855 $ 64,244 
 
 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 June 30, 2026, investment banking and debt placement fees were down $9 million, or 5.1%, compared to the same period a year ago due to lower merger and acquisition advisory fees, commercial mortgage gains on sale, and loan syndication fees, partially offset by higher debt and equity origination activity. The decline also reflected uneven middle-market transaction activity and delays in M&A closings. For the six months ended June 30, 2026, investment banking and debt placement fees increased $13 million, or 3.8%, driven by stronger first-quarter activity and year-to-date growth in investment banking pipelines, despite softer second-quarter M&A activity. 
 
 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 $9 million or 10.6% for the three months ended June 30, 2026, compared to the same period one year ago. For the six months ended June 30, 2026, cards and payments income increased $13 million, or 7.8%, from the same period a year ago. The increases were driven by higher commercial payments activity, including growth in merchant services, embedded banking, purchase card volume, and prepaid card-related fees, as well as higher consumer debit and credit card spend volumes. These increases were partially offset by lower interchange fees in certain consumer card categories and higher rewards costs. 
 
 Service charges on deposit accounts 
 
 Service charges on deposit accounts increased $4 million, or 5.5%, for the three months ended June 30, 2026, compared to the same period one year ago. For the six months ended June 30, 2026, service charges on deposit accounts increased by $12 million, or 8.5%, from the same period one year ago. The increases were primarily driven by higher account analysis fees, reflecting growth in fee-equivalent revenue, partially offset by higher deposit premiums and lower consumer overdraft-related 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 June 30, 2026, decreased $1 million, or .5%, from the year-ago quarter. This net change resulted from lower commercial mortgage servicing fees reflective of lower special servicing and other miscellaneous ancillary fees offset by higher corporate services income reflective of growth in loan commitment fees, and non-yield loan fees. For the six months ended June 30, 2026, other noninterest income increased $2 million, or 0.5%, from the same period a year ago, driven by 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 
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 and lower realized losses on non-customer derivatives activity. Partially 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 second quarter of 2026, compared to $1.2 billion for the second quarter of 2025. Noninterest expense was $2.4 billion for the six months ended June 30, 2026, compared to $2.3 billion for the six months ended June 30, 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 June 30, Percent
Change Six Months Ended June 30, Percent
Change 
 Dollars in millions 2026 2025 2026 2025 
 Personnel $ 786 $ 705 11.5 % $ 1,529 $ 1,385 10.4 % 
 Net occupancy 68 69 (1.4) 136 136 — 
 Computer processing 108 107 0.9 219 214 2.3 
 Business services and professional fees 46 48 (4.2) 82 88 (6.8) 
 Equipment 22 21 4.8 41 41 — 
 Operating lease expense 7 10 (30.0) 14 21 (33.3) 
 Marketing 22 24 (8.3) 40 45 (11.1) 
 
 Other expense 158 170 (7.1) 337 355 (5.1) 
 Total noninterest expense $ 1,217 $ 1,154 5.5 % $ 2,398 $ 2,285 4.9 % 
 
 Personnel 
 
 Personnel expense, the largest category of our noninterest expense, increased by $81 million, or 11.5%, for the three months ended June 30, 2026, compared to the same period one year ago. For the six months ended June 30, 2026, personnel expense was up $144 million, or 10.4%, compared to the same period one year ago. The increases were driven by higher salaries, incentive and stock-based compensation reflective of current year merit increases, higher headcount and growth in the fee businesses. 
 
 Figure 7. Personnel Expense 
 
 Dollars in millions 
 Three Months Ended June 30, Percent
Change Six Months Ended June 30, Percent
Change 
 2026 2025 2026 2025 
 Salaries and contract labor $ 448 $ 427 4.9 % $ 887 $ 832 6.6 % 
 Incentive and stock-based compensation (a) 
 194 168 15.5 366 326 12.3 
 Employee benefits 140 108 29.6 267 217 23.0 
 Severance 4 2 100.0 9 10 (10.0) 
 Total personnel expense $ 786 $ 705 11.5 % $ 1,529 $ 1,385 10.4 % 
 
 (a) Excludes directors’ stock-based compensation of $2 million and $2 million for the three months ended June 30, 2026, and June 30, 2025, respectively, and $3 million and $2 million for the six months ended June 30, 2026 and June 30, 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 June 30, 2026, decreased $18 million, or 4.0%, from the year-ago quarter. For the six months ended June 30, 2026, other nonpersonnel expense decreased $31 million, or 3.4%, from the six months ended June 30, 2025. The decreases were driven by lower business services and professional fees, operating lease expense, marketing expense, and other miscellaneous expense categories, partially offset by slight increases in computer processing and equipment. Lower professional fees reflected reduced consulting and legal services in several areas, while lower operating lease expense reflected continued runoff of the operating lease portfolio. 
 
 Income taxes 
 
 We recorded tax expense of $139 million for the second quarter of 2026 and tax expense of $116 million for the second quarter of 2025. We recorded tax expense of $275 million for the six months ended June 30, 2026, compared to $225 million for the six months ended June 30, 2025. 
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 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. 
 
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 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 June 30, Percent 
 Dollars in millions 2026 2025 Change 
 Summary of operations 
 Net interest income (TE) $ 757 $ 731 3.6 % 
 Noninterest income 253 235 7.7 
 Total revenue (TE) 1,010 966 4.6 
 Provision for credit losses 26 55 (52.7) 
 Noninterest expense 716 693 3.3 
 Income (loss) before income taxes (TE) 268 218 22.9 
 Allocated income taxes (benefit) and TE adjustments 65 53 22.6 
 Net income (loss) attributable to Key $ 203 $ 165 23.0 % 
 
 Average loans and leases 
 Real estate — residential mortgage $ 18,302 $ 19,440 (5.9) % 
 Home equity loans 5,424 6,057 (10.5) 
 Other consumer loans 4,423 4,938 (10.4) 
 Credit cards 909 920 (1.2) 
 Commercial loans 4,205 4,782 (12.1) 
 Total loans and leases $ 33,263 $ 36,138 (8.0) % 
 
 Average deposits 
 Money market deposits $ 36,116 $ 34,524 4.6 % 
 Demand deposits 22,861 22,784 .3 
 Savings deposits 4,238 4,406 (3.8) 
 Time deposits 10,102 11,907 (15.2) 
 Noninterest-bearing deposits 14,082 14,381 (2.1) 
 Total deposits $ 87,399 $ 88,002 (.7) % 
 
 Credit-related statistics 
 Nonperforming assets at period end $ 253 $ 269 
 Net loan charge-offs 45 40 
 Net loan charge-offs to average total loans 0.54 % 0.44 % 
 
 • Net income attributable to Key of $203 million for the second quarter of 2026, compared to $165 million for the year-ago quarter 
 • Taxable-equivalent net interest income attributable to the Consumer Bank increased $26 million, or 3.6%, compared to the second quarter of 2025 
 • Average loans and leases decreased $2.9 billion, or 8.0%, from the second quarter of 2025, reflective of the intentional run-off of low-yielding loans 
 • Average deposits decreased $603 million, or 0.7%, from the second quarter of 2025, driven by lower time deposits, partially offset by an increase in money market deposits 
 • Provision for credit losses decreased $29 million compared to the second quarter of 2025, primarily driven by favorable economic assumptions and portfolio credit trends 
 • Noninterest income increased $18 million, or 7.7%, from the second quarter of 2025, primarily driven by higher trust and investment services income 
 • Noninterest expense increased $23 million, or 3.3%, from the second quarter of 2025, primarily driven by higher personnel expense 
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 Commercial Bank 
 
 Summary of operations 
 
 Three Months Ended June 30, Percent 
 Dollars in millions 2026 2025 Change 
 Summary of operations 
 Net interest income (TE) $ 697 $ 649 7.4 % 
 Noninterest income 411 425 (3.3) 
 Total revenue (TE) 1,108 1,074 3.2 
 Provision for credit losses 67 84 (20.2) 
 Noninterest expense 503 451 11.5 
 Income (loss) before income taxes (TE) 538 539 (.2) 
 Allocated income taxes (benefit) and TE adjustments 115 116 (.9) 
 Net income (loss) attributable to Key $ 423 $ 423 — % 
 
 Average loans and leases 
 Commercial and industrial $ 58,676 $ 51,819 13.2 % 
 Real estate — commercial mortgage 12,729 11,986 6.2 
 Real estate — construction 2,719 2,769 (1.8) 
 Commercial lease financing 2,108 2,506 (15.9) 
 Other loans 6 9 (33.3) 
 Total loans and leases $ 76,238 $ 69,089 10.3 % 
 
 Average deposits 
 Money market deposits $ 6,726 $ 8,026 (16.2) % 
 Demand deposits 38,714 34,692 11.6 
 Other deposits 412 559 (26.3) 
 Noninterest-bearing deposits 13,043 12,649 3.1 
 Total deposits $ 58,895 $ 55,927 5.3 % 
 
 Credit-related statistics 
 Nonperforming assets at period end $ 565 $ 438 
 Net loan charge-offs 71 62 
 Net loan charge-offs to average total loans 0.37 % 0.36 % 
 
 • Net income attributable to Key of $423 million for the second quarter of 2026, compared to $423 million for the year-ago quarter 
 • Taxable-equivalent net interest income attributable to the Commercial Bank increased $48 million or 7.4%, compared to the second quarter of 2025 
 • Average loan and lease balances increased $7.1 billion, or 10.3%, compared to the second quarter of 2025, driven by an increase in commercial and industrial loans 
 • Average deposit balances increased $3.0 billion, or 5.3%, compared to the second quarter of 2025, driven by higher client deposits 
 • Provision for credit losses decreased $17 million compared to the second quarter of 2025, driven by the impact to reserves due to improved economic assumptions 
 • Noninterest income decreased $14 million, or 3.3%, from the second quarter of 2025, primarily driven by a decrease in commercial mortgage servicing fees 
 • Noninterest expense increased $52 million, or 11.5%, compared to the second quarter of 2025, driven by an increase in personnel expense and support and overhead expense 
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 Financial Condition 
 
 Loans and loans held for sale 
 
 Figure 8. Composition of Loans at June 30, 2026 
 
 June 30, 2026 December 31, 2025 
 Dollars in millions 
 Amount Percent 
of Total Amount Percent 
of Total 
 COMMERCIAL 
 Commercial and industrial (a) 
 $ 62,734 56.8 % $ 57,688 54.1 % 
 Commercial real estate: 
 Commercial mortgage 13,941 12.7 13,707 12.9 
 Construction 2,896 2.6 2,844 2.7 
 Total commercial real estate loans 16,837 15.3 16,551 15.6 
 Commercial lease financing 1,997 1.8 2,270 2.1 
 Total commercial loans 81,568 73.9 76,509 71.8 
 CONSUMER 
 Real estate — residential mortgage 18,178 16.5 18,732 17.6 
 Home equity loans 5,408 4.9 5,703 5.3 
 Other consumer loans 4,349 3.9 4,644 4.4 
 Credit cards 927 0.8 953 0.9 
 
 Total consumer loans 28,862 26.1 30,032 28.2 
 Total loans (b) 
 $ 110,430 100.0 % $ 106,541 100.0 % 
 
 (a) Loan balances include $208 million and $205 million of commercial credit card balances at June 30, 2026, and December 31, 2025, respectively. 
 (b) Total loans exclude loans of $182 million at June 30, 2026, and $205 million at December 31, 2025, related to the discontinued operations of the education lending business. 
 
 At June 30, 2026, total loans outstanding from continuing operations were $110.4 billion, compared to $106.5 billion at December 31, 2025. For more information on balance sheet ca rrying value, see Note 1 (“Summary of Significant Accounting Policies”) under the headings “Loans” and “Loans Held for Sale” on page 108 of our 2025 Form 10-K. 
 
 Commercial loan portfolio 
 
 Commercial loans outstanding were $81.6 billion at June 30, 2026, an increase of $5.1 billion, or 6.6%, compared to December 31, 2025, primarily driven by growth in the commercial and industrial loan portfolios. 
 
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 Figure 9 provides our commercial loan portfolios by industry classification at June 30, 2026, and December 31, 2025. 
 
 Figure 9. Commercial Loans by Industry 
 
 June 30, 2026 Commercial and industrial Commercial 
 real estate 
 Commercial 
 lease financing 
 Total commercial 
 loans 
 Percent of 
 total 
 
 Dollars in millions 
 Industry classification: 
 Agriculture $ 988 $ 106 $ 72 $ 1,166 1.4 % 
 Automotive 2,370 643 2 3,015 3.7 
 
 Business services 3,536 239 100 3,875 4.8 
 
 Commercial real estate 8,910 12,235 1 21,146 25.9 
 Construction materials and contractors 2,516 259 128 2,903 3.6 
 Consumer goods 3,803 587 153 4,543 5.6 
 Consumer services 4,383 739 246 5,368 6.6 
 Equipment 1,692 158 37 1,887 2.3 
 Finance 13,473 121 106 13,700 16.8 
 Healthcare 2,509 1,257 102 3,868 4.7 
 Materials and extraction 2,136 254 93 2,483 3.0 
 Oil and gas 2,048 55 11 2,114 2.6 
 Public exposure 1,717 3 265 1,985 2.4 
 Technology 1,454 16 62 1,532 1.9 
 Transportation 1,116 129 286 1,531 1.9 
 Utilities 9,767 — 333 10,100 12.4 
 Other 316 36 — 352 0.4 
 Total $ 62,734 $ 16,837 $ 1,997 $ 81,568 100.0 % 
 
 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, representin g 57% of our total loan portfolio at June 30, 2026, and 54% at December 31, 2025. This portfolio is approxim a tely 93% variable rate a nd consists of loans originated primarily to large corporate, middle market, and small business clients. 
 
 Commercial and industrial loans totaled $62.7 billion at June 30, 2026, an increase of $5.0 billion, or 8.7%, compared to December 31, 2025. The increase was broad-based across multiple industry categories. 
 
 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 71% 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 June 30, 2026, commercial real estate loans totaled $16.8 billion, which includes $13.9 billion of mortgage loans and $2.9 billion of construction loans. Compared to December 31, 2025, this portfolio increased $286 million, or 1.7%. Nonowner-occupied properties, generally properties for which at least 50% of the debt service is provided by 
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 rental income from nonaffiliated third parties, represented 80% of total commercial real estate loans outstanding at June 30, 2026. 
 
 Our overall construction loans constitute 17% of commercial real estate loans as of June 30, 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 June 30, 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 
 June 30, 2026 
 Nonowner-occupied: 
 Data Center $ — $ — $ 211 $ — $ 41 $ — $ 514 $ 766 4.5 % $ 385 $ 381 
 Diversified 1 — — 29 — 7 198 235 1.4 — 235 
 Industrial 38 1 89 160 264 174 269 995 5.9 62 933 
 Land & Residential 9 5 3 3 3 19 — 42 0.2 25 17 
 Lodging 1 — — 4 28 87 66 186 1.1 — 186 
 Medical Office 14 2 30 1 — 71 — 118 0.7 17 101 
 Multifamily 1,205 291 1,318 1,285 1,799 1,221 427 7,546 44.8 2,167 5,379 
 Office 71 — 79 57 84 195 113 599 3.6 — 599 
 Retail 95 40 131 210 101 179 249 1,005 6.0 25 980 
 Self Storage 27 13 — 32 16 104 192 1.1 3 189 
 Senior Housing 106 95 19 49 92 57 200 618 3.7 31 587 
 Skilled Nursing — — — 133 206 363 702 4.2 — 702 
 Student Housing 62 6 13 47 — — — 128 0.8 — 128 
 Other 1 9 111 39 53 27 133 373 2.2 1 372 
 Total nonowner-occupied 1,630 449 2,017 1,884 2,630 2,259 2,636 13,505 80.2 2,716 10,789 
 Owner-occupied 1,042 — 349 609 175 976 181 3,332 19.8 180 3,152 
 Total $ 2,672 $ 449 $ 2,366 $ 2,493 $ 2,805 $ 3,235 $ 2,817 $ 16,837 100.0 % $ 2,896 $ 13,941 
 
 Nonperforming loans $ 7 $ — $ 24 $ 99 $ 113 $ 13 $ — $ 256 N/M $ — $ 256 
 Accruing loans past due 90 days or more 
 2 — 1 1 — 5 — 9 N/M 1 8 
 Accruing loans past due 30 through 89 days 
 4 — 11 2 — 11 1 29 N/M — 29 

 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 

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 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 June 30, 2026, totaled $28.9 billion, a decrease of $1.2 billion, or 3.9%, 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 June 30, 2026, representing 63% of consumer loans outstanding. This is followed by our home equity portfolio representing 19% of consumer loans outstanding at June 30, 2026. 
 
 We held the first lien position for approxim ately 62% of the home equity portfolio at June 30, 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 
 June 30, 2026 
 Washington $ 3,852 $ 820 $ 191 $ 84 $ 4,947 
 Ohio 2,601 682 64 187 3,534 
 New York 579 1,520 680 318 3,097 
 Colorado 2,715 227 110 29 3,081 
 California 2,012 14 369 3 2,398 
 Oregon 1,116 466 81 40 1,703 
 Pennsylvania 358 372 278 61 1,069 
 Utah 748 202 50 17 1,017 
 Florida 650 35 316 12 1,013 
 Connecticut 596 189 97 28 910 
 Other 2,951 881 2,113 148 6,093 
 Total $ 18,178 $ 5,408 $ 4,349 $ 927 $ 28,862 
 
 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 
 
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 Figure 12 summarizes our loan sales for the six months ended June 30, 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 
 
 Second quarter $ 77 $ 1,342 $ 42 $ 333 $ 1,794 
 First quarter 36 1,667 122 411 2,236 
 Total $ 113 $ 3,009 $ 164 $ 744 $ 4,030 
 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 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 
 Commercial real estate loans $ 588,546 $ 580,860 $ 566,567 $ 569,430 $ 576,703 
 Residential mortgage 11,459 11,488 11,419 11,440 11,383 
 Education loans 136 143 152 161 170 
 Commercial lease financing 1,542 1,639 1,719 1,815 1,815 
 Commercial loans 570 572 576 585 589 
 Consumer direct 227 242 258 273 290 
 Consumer indirect 31 53 83 122 174 
 Total $ 602,511 $ 594,997 $ 580,774 $ 583,826 $ 591,124 
 
 In the event of default by a borrower, we are subject to recourse with respect to approx imately $8.2 billion of the $602.5 billion of loans administered or serviced at June 30, 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 June 30, 2026, compared to $48.2 billion at December 31, 2025. Available-for-sale securities were $38.5 billion at June 30, 2026, compared to $39.6 billion at December 31, 2025. Held-to-maturity securities were $9.5 billion at June 30, 2026, and $8.6 billion at December 31, 2025. 
 
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 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) 
 
 June 30, 2026 
 Remaining maturity: 
 One year or less $ 3,237 $ 4 $ 43 $ 67 $ 3,351 4.30 % 
 After one through five years 3,728 1,108 3,331 1,144 9,311 3.37 
 After five through ten years 41 6,470 11,971 2,188 20,670 3.65 
 After ten years 69 413 4,263 382 5,127 4.12 
 Fair value $ 7,075 $ 7,995 $ 19,608 $ 3,781 $ 38,459 
 Amortized cost (b) 
 $ 7,102 $ 9,726 $ 20,028 $ 4,148 $ 41,004 3.70 % 
 Weighted-average yield (c) 
 4.11 % 1.92 % 4.59 % 2.90 % 3.70 % — 
 Weighted-average maturity 1.3 years 7.7 years 10.3 years 6.6 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 $(26) million and $99 million as of June 30, 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. 
 
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 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) 
 
 June 30, 2026 
 Remaining maturity: 
 One year or less $ 19 $ — $ 245 $ 17 $ 9 $ 290 2.94 % 
 After one through five years 1,018 484 558 2 12 2,074 3.64 
 After five through ten years 2,667 3,389 191 — — 6,247 4.44 
 After ten years 50 62 792 — — 904 3.31 
 Amortized cost $ 3,754 $ 3,935 $ 1,786 $ 19 $ 21 $ 9,515 4.11 % 
 Fair value $ 3,548 $ 3,896 $ 1,642 $ 18 $ 20 $ 9,124 
 Weighted-average yield (b) 
 3.79 % 4.92 % 3.03 % 1.88 % 4.48 % 4.11 % — 
 Weighted-average maturity 6.3 years 6.2 years 9.3 years 0.9 years 1.2 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 June 30, 2026 
 
 The following table presents the breakdown of our deposits by product for the noted periods. 
 
 Dollars in billions June 30, 2026 December 31, 2025 
 Money market deposits $ 43.2 $ 42.7 
 Demand deposits 62.6 61.3 
 Savings deposits 4.4 4.4 
 Time deposits 12.0 12.7 
 Noninterest bearing deposits 30.9 27.6 
 Total $ 153.1 $ 148.7 
 
 Our highly diversified deposit base is our primary source of funding. At June 30, 2026, our deposits totaled $153.1 billion, an increase of $4.4 billion, compared to December 31, 2025. 
 
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 Uninsured deposits totaled $68.8 billion and $66.2 billion at June 30, 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 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 
 Uninsured deposits (a) 
 $ 68.8 $ 66.5 $ 66.2 $ 66.5 $ 61.8 
 Total deposits 153.1 147.8 148.7 150.8 146.9 
 Uninsured % of Deposits 45 % 45 % 45 % 44 % 42 % 
 (a) Intercompany deposits and accrued interest excluded from uninsured deposits 
 $ 13.3 $ 12.9 $ 12.8 $ 13.2 $ 12.5 

 As of June 30, 2026, approximately $13.0 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 $14.7 billion at June 30, 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 and share repurchase excise tax. 
 
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 Dividends 
 
 Consistent with our capital plan, we paid a quarterly dividend of $.205 per Common Share for the second 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 25,066 holders of record at June 30, 2026. Our book value per Common Share was $16.19 based on 1.1 billion shares outstanding at June 30, 2026, compared to $16.27 per Common Share based on 1.1 billion shares outstanding at December 31, 2025. At June 30, 2026, our tangible book value per Common Share was $13.62, 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 Second First Fourth Third Second 
 Shares outstanding at beginning of period 1,087,293 1,102,401 1,112,952 1,112,453 1,111,986 
 Share repurchases (15,531) (17,969) (11,109) — — 
 Shares issued under employee compensation plans (net of cancellations and returns) 273 2,861 558 499 467 
 
 Shares outstanding at end of period 1,072,035 1,087,293 1,102,401 1,112,952 1,112,453 
 
 In May, 2026, the Board of Directors authorized a new share repurchase program pursuant to which KeyCorp may purchase up to $3.0 billion of KeyCorp common shares. The new repurchase authorization replaces KeyCorp's existing $1.0 billion share repurchase authorization. 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. 
 
 As shown in Figure 18 above, Common Shares outstanding decreased by 15 million shares during the second 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 $341 million in the second quarter of 2026. 
 
 At June 30, 2026, we had 184.7 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. From time to time, we may reissue treasury shares in connection with stock-based compensation awards or 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 June 30, 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 10.3% and 11.1% at June 30, 2026, and December 31, 2025, respectively. Our tangible common equity to tangible assets ratio was 7.7% and 8.4% at June 30, 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 June 30, 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 June 30, 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. 
 
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 Figure 19. Capital Components and Risk-Weighted Assets 
 
 Dollars in millions June 30, 2026 December 31, 2025 
 COMMON EQUITY TIER 1 
 Key shareholders’ equity (GAAP) $ 19,798 $ 20,381 
 Less: Preferred Stock (a) 
 2,446 2,446 
 
 Common Equity Tier 1 capital before adjustments and deductions 17,352 17,935 
 Less: Goodwill, net of deferred taxes 2,548 2,556 
 Intangible assets, net of deferred taxes 3 7 
 Deferred tax assets 139 136 
 Net unrealized gains (losses) on available-for-sale securities, net of deferred taxes (1,919) (1,789) 
 Accumulated gains (losses) on cash flow hedges, net of deferred taxes (200) 68 
 Amounts in AOCI attributed to pension and postretirement benefit costs, net of deferred taxes (235) (238) 
 Total Common Equity Tier 1 capital $ 17,016 $ 17,195 
 TIER 1 CAPITAL 
 Common Equity Tier 1 $ 17,016 $ 17,195 
 Additional Tier 1 capital instruments and related surplus 2,446 2,446 
 
 Less: Deductions — — 
 Total Tier 1 capital $ 19,462 $ 19,641 
 TIER 2 CAPITAL 
 Tier 2 capital instruments and related surplus $ 1,390 $ 1,522 
 Allowance for losses on loans and liability for losses on lending-related commitments (b) 
 1,725 1,747 
 
 Less: Deductions — — 
 Total Tier 2 capital 3,115 3,269 
 Total risk-based capital $ 22,577 $ 22,910 
 
 RISK-WEIGHTED ASSETS (d) 
 $ 152,317 $ 145,933 
 
 AVERAGE QUARTERLY TOTAL ASSETS $ 188,501 $ 187,035 
 CAPITAL RATIOS (d) 
 
 Tier 1 risk-based capital 12.78 % 13.46 % 
 Total risk-based capital 14.82 % 15.70 % 
 Leverage (c) 
 10.32 % 10.50 % 
 Common Equity Tier 1 11.17 % 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 $9 million and $11 million of allowance classified as “discontinued assets” on the balance sheet at June 30, 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) June 30, 2026 capital ratios and risk weighted assets are estimates. 
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 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 June 30, 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” beginnin g 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 was one backtesting exception for KeyCorp during the past 250 trading days ended June 30, 2026, generally caused by interest rate volatility. 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 June 30, 2026, and $2.4 million at June 30, 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 June 30, 2026, and June 30, 2025. 
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 Figure 20. VaR for Significant Portfolios of Covered Positions 
 
 2026 2025 
 Three months ended June 30, Three months ended June 30, 
 Dollars in millions High Low Mean June 30, High Low Mean June 30, 
 Trading account assets: 
 Fixed income $ .6 $ 0.2 $ 0.3 $ 0.3 $ 2.3 $ 1.2 $ 1.7 $ 2.1 
 Derivatives: 
 Interest rate $ 0.2 $ 0.1 $ 0.2 $ 0.2 $ 0.2 $ 0.1 $ 0.1 $ 0.2 
 
 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 $1.2 million at June 30, 2026, and $4.4 million at June 30, 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 June 30, 2026, and June 30, 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 June 30, Three months ended June 30, 
 Dollars in millions High Low Mean June 30, High Low Mean June 30, 
 Trading account assets: 
 Fixed income $ 2.1 $ .6 $ 1.0 $ .8 $ 5.2 $ 2.9 $ 3.7 $ 4.0 
 Derivatives: 
 Interest rate $ 0.3 $ 0.1 $ 0.2 $ 0.2 $ 0.2 $ 0.1 $ 0.1 $ 0.2 
 
 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 zero at June 30, 2026. 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. 
 
 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 
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 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 review and monitor strategies to manage nontrading market risk and oversee compliance with established 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 June 30, 2026, and June 30, 2025. At June 30, 2026, our simulated exposure to changes in interest rates remained neutral. The exposure to declining rates has changed from (0.48)% as of June 30, 2025 to 0.15% as of June 30, 2026, while the exposure to rising rates has changed from 0.78% as of June 30, 2025 to 0.17% as of June 30, 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%. Current modeled exposure is within Board-approved tolerances. 
 
 Figure 22. Simulated Change in Net Interest Income 
 
 June 30, 2026 June 30, 2025 
 Basis point change assumption -200 +200 -200 +200 
 
 Tolerance level (5.00) % (5.00) % (5.00) % (5.00) % 
 Interest rate risk assessment 0.15 % 0.17 % (0.48) % 0.78 % 
 
 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 
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 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 99 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 June 30, 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 
 
 June 30, 2026 
 Weighted-Average December 31, 2025 
 Dollars in millions Notional
Amount Fair Value (a) 
 Maturity
(Years) Receive
Rate Pay
Rate Notional
Amount Fair Value (a) 
 
 Receive fixed/pay variable — conventional loans $ 40,250 $ (262) 1.6 3.4 % 3.6 % $ 37,050 $ 66 
 Receive fixed/pay variable — conventional debt 8,921 (292) 4.4 2.9 3.7 8,722 (198) 
 Receive fixed/pay variable — forward loans 3,250 9 4.2 4.0 3.6 2,200 40 
 
 Pay fixed/receive variable — conventional debt 50 1 2.0 3.9 3.6 50 — 
 
 Pay fixed/receive variable — securities 10,281 25 2.2 3.6 4.0 10,194 (100) 
 Total portfolio swaps $ 62,752 $ (519) 2.2 3.4 % 3.7 % $ 58,216 $ (192) 
 
 Floors — forward purchased $ — $ — — — % — % $ 3,250 $ — 
 Floors — forward sold — — — — — 3,250 — 
 Total floors $ — $ — — — % — % $ 6,500 $ — 
 
 (a) Excludes accrued interest of $271 million at June 30, 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 
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 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 June 30, 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 
 
 June 30, 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 Positive A-2 N/A BBB BBB- BB BB 
 Moody’s Stable 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 Positive A-2 N/A BBB+ BBB N/A N/A 
 Moody’s Stable 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. 
 
 On July 15, 2026, Moody’s upgraded all long-term ratings and assessments of KeyCorp (long-term issuer rating to “Baa1” from “Baa2”) and its subsidiaries. The upgrades also include KeyBank’s Baseline Credit Assessment (BCA) to “a3” from “baa1” and its long-term deposit rating to “A1” from “A2”. The outlook on Key’s long-term issuer and senior unsecured ratings was changed to “stable” from “ratings under review”. 
 
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 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. 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 73% as of June 30, 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 June 30, 2026, and December 31, 2025. As of June 30, 2026, our secured term borrowings were $4.3 billion, an increase compared to the fourth quarter 2025. The change reflected a shift in wholesale funding mix, while overall wholesale funding continued to supplement client deposit funding to support seasonal deposit activity and strong loan growth during the quarter. 
 
 Figure 25. Available Contingent Liquidity 
 
 Dollars in billions June 30, 2026 December 31, 2025 
 Available contingent liquidity: 
 Unpledged securities $ 29.9 $ 29.4 
 Net balances of federal funds sold and balances in our Federal Reserve account 11.7 9.3 
 Unused secured borrowing capacity at the Federal Reserve Bank of Cleveland 38.1 39.5 
 Unused secured borrowing capacity at the FHLB 14.4 18.9 
 Total $ 94.1 $ 97.0 
 
 Liquidity programs 
 
 We have several liquidity programs, which are described in “Liquidity Risk Management” beginni ng 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 
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 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 June 30, 2026, KeyCorp held $5.3 billion in cas h 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 declaratio n. During the second quarter of 2026, KeyBank paid $600 million in cash dividends to KeyCorp. As of June 30, 2026, KeyBank had regulatory capacity to pay $797 million in dividends to KeyCorp without prior regulatory approval. 
 
 During the second quarter, there were no notes issued under the Medium-Term Note (“MTN”) Program. Effective June 10, 2026, a new MTN Program was established, which has $15.0 billion available for issuance as of June 30, 2026. 
 
 There were no bank note issuances during the second quarter. At June 30, 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 six-month periods ended June 30, 2026, and June 30, 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” beginni ng 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 
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 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 June 30, 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 $18 million, or 1.3%, 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 $29 million, or 2.7%, from December 31, 2025, through June 30, 2026. Our consumer ALLL decreased $11 million, or 3.2%, from December 31, 2025, through June 30, 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 
 
 June 30, 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 $ 805 55.7 % 56.8 % $ 745 52.2 % 54.1 % 
 Commercial real estate: 
 Commercial mortgage 242 16.7 12.7 252 17.6 12.9 
 Construction 37 2.6 2.6 55 3.9 2.7 
 Total commercial real estate loans 279 19.3 15.3 307 21.5 15.6 
 Commercial lease financing 23 1.6 1.8 26 1.8 2.1 
 Total commercial loans 1,107 76.6 73.9 1,078 75.5 71.8 
 Real estate — residential mortgage 67 4.7 16.5 66 4.6 17.6 
 Home equity loans 48 3.3 4.9 52 3.7 5.3 
 Other consumer loans 142 9.8 3.9 149 10.5 4.4 
 Credit cards 81 5.6 0.8 82 5.7 0.9 
 
 Total consumer loans 338 23.4 26.1 349 24.5 28.2 
 Total ALLL — continuing operations (a) 
 $ 1,445 100.0 % 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 $9 million at June 30, 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 June 30, 2026, increased $13 million compared to the year-ago quarter. 
 
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 Figure 27. Net Loan Charge-offs (Recoveries) from Continuing Operations 
 
 2026 2025 
 Dollars in millions Second First Fourth Third Second 
 Commercial and industrial $ 75 $ 80 $ 62 $ 66 $ 75 
 Commercial real estate: 
 Commercial mortgage 19 1 19 27 5 
 Construction — — — — — 
 Total commercial real estate loans 19 1 19 27 5 
 Commercial lease financing 1 — 4 — 2 
 Total commercial loans 95 81 85 93 82 
 Real estate — residential mortgage — (1) — (1) (1) 
 Home equity loans — — — — (1) 
 Other consumer loans 11 13 12 13 11 
 Credit cards 9 8 7 9 11 
 
 Total consumer loans 20 20 19 21 20 
 Total net loan charge-offs $ 115 $ 101 $ 104 $ 114 $ 102 
 
 Figure 28. Net Loan Charge-offs (Recoveries) to Average Loans from Continuing Operations 
 
 2026 2025 
 Dollars in millions Second First Fourth Third Second 
 Commercial and industrial 0.48 % 0.55 % 0.43 % 0.46 % 0.54 % 
 Commercial real estate: 
 Commercial mortgage 0.55 0.03 0.56 0.78 0.18 
 Construction — — — 0.04 — 
 Total commercial real estate loans 0.46 0.02 0.46 0.66 0.15 
 Commercial lease financing 0.05 0.01 0.73 0.03 0.27 
 Total commercial loans 0.46 0.42 0.44 0.49 0.44 
 Real estate — residential mortgage (0.01) (0.02) (0.01) (0.01) (0.02) 
 Home equity loans 0.02 — 0.05 (0.04) (0.02) 
 Other consumer loans 1.02 1.16 0.96 0.98 0.92 
 Credit cards 3.98 3.77 3.44 4.00 4.24 
 
 Total consumer loans 0.27 0.28 0.26 0.26 0.25 
 Total net loan charge-offs to average loans 0.42 % 0.38 % 0.39 % 0.42 % 0.39 % 
 
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 Figure 29. Summary of Loan and Lease Loss Experience from Continuing Operations 
 
 Three months ended June 30, Six months ended June 30, 
 Dollars in millions 2026 2025 2026 2025 
 Average loans outstanding 
 $ 110,072 $ 105,715 $ 108,911 $ 105,039 
 
 Allowance for loan and lease losses at beginning of period 
 $ 1,449 $ 1,429 $ 1,427 $ 1,409 
 Loans charged off: 
 
 Commercial and industrial 
 $ 84 $ 94 $ 174 $ 156 
 Commercial real estate: 
 Commercial mortgage 20 6 21 42 
 Construction — — — — 
 Total commercial real estate loans (a) 
 20 6 
 Commercial lease financing 
 1 2 1 2 
 Total commercial loans 105 102 196 200 
 Real estate — residential mortgage 1 — 1 1 
 Home equity loans — — 1 1 
 Other consumer loans 14 13 29 27 
 Credit cards 11 12 21 24 
 
 Total consumer loans 26 25 52 53 
 Total loans charged off 131 127 248 253 
 Recoveries: 
 
 Commercial and industrial 
 9 19 19 29 
 Commercial real estate: 
 Commercial mortgage 1 1 1 1 
 Construction — — — — 
 Total commercial real estate loans (a) 
 1 1 1 1 
 Commercial lease financing 
 — — — — 
 Total commercial loans 10 20 20 30 
 Real estate — residential mortgage 1 1 2 2 
 Home equity loans — 1 1 2 
 Other consumer loans 3 2 5 4 
 Credit cards 2 1 4 3 
 
 Total consumer loans 6 5 12 11 
 Total recoveries 16 25 32 41 
 Net loan charge-offs 
 (115) (102) (216) (212) 
 Provision (credit) for loan and lease losses 
 111 119 234 249 
 
 Allowance for loan and lease losses at end of period $ 1,445 $ 1,446 $ 1,445 $ 1,446 
 
 Liability for credit losses on lending-related commitments at beginning of period $ 296 $ 278 $ 313 $ 290 
 Provision (credit) for losses on lending-related commitments (19) 19 (36) 7 
 Other — — — — 
 Liability for credit losses on lending-related commitments at end of period (b) 
 $ 277 $ 297 $ 277 $ 297 
 Total allowance for credit losses at end of period 
 $ 1,722 $ 1,743 $ 1,722 $ 1,743 
 Net loan charge-offs to average total loans 
 0.42 % 0.39 % 0.40 % 0.41 % 
 Allowance for loan and lease losses to period-end loans 
 1.31 1.36 1.31 1.36 
 Allowance for credit losses to period-end loans 
 1.56 1.64 1.56 1.64 
 Allowance for loan and lease losses to nonperforming loans 
 178.6 207.8 178.6 207.8 
 Allowance for credit losses to nonperforming loans 
 212.9 250.4 212.9 250.4 
 
 Discontinued operations — education lending business: 
 
 Loans charged off 
 $ — $ 1 $ 1 $ 1 
 Recoveries 
 — — — — 
 Net loan charge-offs 
 $ — $ (1) $ (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. 
 
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 Nonperforming assets 
 
 Figure 30 shows the composition of our nonperforming assets. As shown in Figure 30, nonperforming assets at June 30, 2026, increased $191 million from December 31, 2025. The increase was driven by idiosyncratic exposures within select commercial and industrial industries and multifamily real estate. Management does not view this activity as indicative of broader credit deterioration, and these exposures are actively managed and appropriately 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 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 
 Commercial and industrial $ 358 $ 284 $ 256 $ 253 $ 280 
 Commercial real estate: 
 Commercial mortgage 256 190 157 214 226 
 Construction — — — — — 
 Total commercial real estate loans (a) 
 256 190 157 214 226 
 Commercial lease financing 6 6 7 — — 
 Total commercial loans (b) 
 620 480 420 467 506 
 Real estate — residential mortgage 100 115 104 98 95 
 Home equity loans 79 76 80 82 84 
 Other consumer loans 4 4 4 4 4 
 Credit cards 6 7 7 7 7 
 
 Total consumer loans 189 202 195 191 190 
 Total nonperforming loans 809 682 615 658 696 
 OREO 9 10 9 10 11 
 Nonperforming loans held for sale — — 3 — — 
 Other nonperforming assets — — — — — 
 Total nonperforming assets $ 818 $ 692 $ 627 $ 668 $ 707 
 Accruing loans past due 90 days or more $ 85 $ 153 $ 99 $ 110 $ 74 
 Accruing loans past due 30 through 89 days 138 137 220 254 266 
 
 Nonperforming assets from discontinued operations — education lending business 1 2 2 2 2 
 Nonperforming loans to period-end portfolio loans 0.73 % 0.62 % 0.58 % 0.62 % 0.65 % 
 Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets 0.74 0.63 0.59 0.63 0.66 

 (a) 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 Second First Fourth Third Second 
 Balance at beginning of period $ 682 $ 615 $ 658 $ 696 $ 686 
 Loans placed on nonaccrual status 365 253 248 210 233 
 Charge-offs (131) (117) (124) (140) (127) 
 Loans sold (33) (2) (7) (13) — 
 Payments (38) (37) (124) (68) (74) 
 Transfers to OREO (1) (1) (1) (1) (1) 
 
 Loans returned to accrual status (35) (29) (35) (26) (21) 
 Balance at end of period $ 809 $ 682 $ 615 $ 658 $ 696 
 
 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 
 40 

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 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. 
 
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 Three months ended Six months ended 
 Dollars in millions 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 
 Net interest income (GAAP) $ 1,250 $ 1,222 $ 1,215 $ 1,184 $ 1,141 $ 2,472 $ 2,237 
 Add: Taxable-equivalent adjustment 8 8 8 9 9 16 18 
 Noninterest income (GAAP) 706 723 782 702 690 1,429 1,358 
 Less: Noninterest expense (GAAP) 1,217 1,181 1,241 1,177 1,154 2,398 2,285 
 Pre-provision net revenue from continuing operations (non-GAAP) $ 747 $ 772 $ 764 $ 718 $ 686 $ 1,519 $ 1,328 
 
 Net income (loss) attributable to Key common shareholders (GAAP) $ 473 $ 486 $ 475 $ 453 $ 389 $ 959 $ 758 
 
 Average Key shareholders’ equity (GAAP) $ 19,947 $ 20,392 $ 20,388 $ 19,664 $ 19,268 $ 20,169 $ 18,952 
 Less: Intangible assets (average) 2,756 2,758 2,762 2,767 2,772 2,757 2,774 
 Preferred stock (average) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 
 Average tangible common equity (non-GAAP) (A) $ 14,691 $ 15,134 $ 15,126 $ 14,397 $ 13,996 $ 14,912 $ 13,678 
 
 Key shareholders’ equity (GAAP) $ 19,798 $ 19,987 $ 20,381 $ 20,102 $ 19,484 
 Less: Intangible assets 2,755 2,757 2,760 2,765 2,770 
 Preferred stock (a) 
 2,446 2,446 2,446 2,446 2,446 
 Tangible common equity (non-GAAP) (B) $ 14,597 $ 14,784 $ 15,175 $ 14,891 $ 14,268 
 
 Total assets (GAAP) $ 191,317 $ 188,663 $ 184,381 $ 187,409 $ 185,499 
 Less: Intangible assets 2,755 2,757 2,760 2,765 2,770 
 Tangible assets (non-GAAP) (C) $ 188,562 $ 185,906 $ 181,621 $ 184,644 $ 182,729 
 
 Tangible common equity to tangible assets ratio (non-GAAP) (B/C) 7.7 % 8.0 % 8.4 % 8.1 % 7.8 % 
 
 Income (loss) from continuing operations attributable to Key common shareholders (GAAP) (D) $ 472 $ 486 $ 474 $ 454 $ 387 $ 958 $ 757 
 Return on average tangible common equity from continuing operations (non-GAAP) (D/A) 12.9 % 13.0 % 12.4 % 12.5 % 11.1 % 13.0 % 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 Six months ended 
 Dollars in millions 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 
 Adjusted noninterest expense 
 Noninterest expense (GAAP) $ 1,217 $ 1,181 $ 1,241 $ 1,177 $ 1,154 $ 2,398 $ 2,285 
 Adjustments: 
 
 FDIC special assessment (other expense) — — 21 5 — — — 
 Adjusted noninterest expense (non-GAAP) $ 1,217 $ 1,181 $ 1,262 $ 1,182 $ 1,154 $ 2,398 $ 2,285 
 
 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 appe ars on pages 91 through 95 of our 2025 Form 10-K. During the three and six months ended June 30, 2026, we did not significantly alter the manner in which we applied our critical accounting policies or developed related assumptions and estimates. 
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 Accounting and Reporting Developments 
 
 Accounting Guidance Pending Adoption at June 30, 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. Adoption of this ASU will impact our financial condition and results of operations on a prospective basis only when loans are acquired. 
 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 in 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. 
 
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 Item 1. Financial Statements 
 
 Consolidated Balance Sheets 
 
 Dollars in millions, except per share data June 30, 2026 December 31, 2025 
 (Unaudited) 
 ASSETS 
 Cash and due from banks $ 1,711 $ 1,287 
 Short-term investments 12,416 10,163 
 Trading account assets 936 1,061 
 Securities available for sale 38,459 39,596 
 Held-to-maturity securities (fair value: $ 9,124 and $ 8,313 ) 
 9,515 8,622 
 Other investments 1,230 949 
 Loans, net of unearned income of $ 269 and $ 303 
 110,430 106,541 
 Less: Allowance for loan and lease losses ( 1,445 ) ( 1,427 ) 
 Net loans 108,985 105,114 
 Loans held for sale (a) 
 1,198 1,077 
 Premises and equipment 620 628 
 Goodwill 2,752 2,752 
 Other intangible assets 3 8 
 Corporate-owned life insurance 4,456 4,432 
 Accrued income and other assets 8,848 8,481 
 Discontinued assets 188 211 
 Total assets $ 191,317 $ 184,381 
 LIABILITIES 
 Deposits in domestic offices: 
 
 Interest-bearing deposits $ 122,196 $ 121,100 
 Noninterest-bearing deposits 30,893 27,613 
 Total deposits 153,089 148,713 
 Federal funds purchased and securities sold under repurchase agreements 5 13 
 Bank notes and other short-term borrowings 3,680 1,071 
 Accrued expense and other liabilities 3,778 4,286 
 Long-term debt 10,967 9,917 
 Total liabilities 171,519 164,000 
 EQUITY 
 Preferred stock 2,500 2,500 
 Common Shares, $ 1 par value; authorized 2,100,000,000 shares; issued 1,256,702,081 shares 
 1,257 1,257 
 Capital surplus 6,014 6,035 
 Retained earnings 15,873 15,359 
 Treasury stock, at cost ( 184,667,530 and 154,301,387 shares) 
 ( 3,492 ) ( 2,810 ) 
 Accumulated other comprehensive income (loss) ( 2,354 ) ( 1,960 ) 
 
 Total equity 19,798 20,381 
 Total liabilities and equity $ 191,317 $ 184,381 
 
 (a) Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $ 204 million at June 30, 2026, and $ 149 million at December 31, 2025.
 
 See Notes to Consolidated Financial Statements (Unaudited). 
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 Consolidated Statements of Income 
 
 Dollars in millions, except per share amounts Three months ended June 30, Six months ended June 30, 
 (Unaudited) 2026 2025 2026 2025 
 INTEREST INCOME 
 Loans $ 1,463 $ 1,443 $ 2,879 $ 2,844 
 Loans held for sale 15 11 29 25 
 Securities available for sale 367 411 737 803 
 Held-to-maturity securities 95 61 181 124 
 Trading account assets 10 16 21 33 
 Short-term investments 101 157 204 331 
 Other investments 8 8 13 17 
 Total interest income 2,059 2,107 4,064 4,177 
 INTEREST EXPENSE 
 Deposits 600 730 1,198 1,483 
 Federal funds purchased and securities sold under repurchase agreements 19 4 33 5 
 Bank notes and other short-term borrowings 35 34 55 61 
 Long-term debt 155 198 306 391 
 Total interest expense 809 966 1,592 1,940 
 NET INTEREST INCOME 1,250 1,141 2,472 2,237 
 Provision for credit losses 92 138 198 256 
 Net interest income after provision for credit losses 1,158 1,003 2,274 1,981 
 NONINTEREST INCOME 
 Trust and investment services income 159 146 316 285 
 Investment banking and debt placement fees 169 178 366 353 
 Cards and payments income 94 85 180 167 
 Service charges on deposit accounts 77 73 154 142 
 Corporate services income 80 76 151 141 
 Commercial mortgage servicing fees 49 70 111 146 
 Corporate-owned life insurance income 33 32 67 65 
 Consumer mortgage income 17 15 30 28 
 Operating lease income and other leasing gains 10 14 18 23 
 Other income 15 1 33 8 
 Net securities gains (losses) 3 — 3 — 
 Total noninterest income 706 690 1,429 1,358 
 NONINTEREST EXPENSE 
 Personnel 786 705 1,529 1,385 
 Net occupancy 68 69 136 136 
 Computer processing 108 107 219 214 
 Business services and professional fees 46 48 82 88 
 Equipment 22 21 41 41 
 Operating lease expense 7 10 14 21 
 Marketing 22 24 40 45 
 
 Other expense 158 170 337 355 
 Total noninterest expense 1,217 1,154 2,398 2,285 
 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 647 539 1,305 1,054 
 Income taxes 139 116 275 225 
 INCOME (LOSS) FROM CONTINUING OPERATIONS 508 423 1,030 829 
 Income (loss) from discontinued operations 1 2 1 1 
 NET INCOME (LOSS) $ 509 $ 425 $ 1,031 $ 830 
 
 Income (loss) from continuing operations attributable to Key common shareholders $ 472 $ 387 $ 958 $ 757 
 Net income (loss) attributable to Key common shareholders 473 389 959 758 
 Per Common Share: 
 Income (loss) from continuing operations attributable to Key common shareholders $ .44 $ .35 $ .89 $ .69 
 Income (loss) from discontinued operations, net of taxes — — — — 
 Net income (loss) attributable to Key common shareholders (a) 
 .44 .35 .89 .69 
 Per Common Share — assuming dilution: 
 Income (loss) from continuing operations attributable to Key common shareholders $ .44 $ .35 $ .88 $ .69 
 Income (loss) from discontinued operations, net of taxes — — — — 
 Net income (loss) attributable to Key common shareholders (a) 
 .44 .35 .88 .69 
 
 Weighted-average Common Shares outstanding (000) 1,071,229 1,100,033 1,077,977 1,098,453 
 
 Effect of Common Share options and other stock awards 8,779 7,177 9,435 8,331 
 Weighted-average Common Shares and potential Common Shares outstanding (000) (b) 
 1,080,008 1,107,210 1,087,412 1,106,784 
 
 (a) EPS may not foot due to rounding . 
 (b) Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable.
 
 See Notes to Consolidated Financial Statements (Unaudited). 
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 Consolidated Statements of Comprehensive Income 
 
 Dollars in millions Three months ended June 30, Six months ended June 30, 
 (Unaudited) 2026 2025 2026 2025 
 Net income (loss) $ 509 $ 425 $ 1,031 $ 830 
 Other comprehensive income (loss), net of tax: 
 Net unrealized gains (losses) on securities available for sale, net of income taxes of $ 17 , $( 48 ), $ 72 , and $( 184 ) 
 ( 51 ) 152 ( 223 ) 576 
 Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $ 27 , $( 43 ), $ 56 , and $( 105 ) 
 ( 83 ) 133 ( 174 ) 326 
 
 Net pension and postretirement benefit costs, net of income taxes of $ 0 , $ 0 , $( 1 ), and $( 21 ) 
 1 1 3 67 
 Total other comprehensive income (loss), net of tax ( 133 ) 286 ( 394 ) 969 
 
 Comprehensive income (loss) attributable to Key $ 376 $ 711 $ 637 $ 1,799 
 
 See Notes to Consolidated Financial Statements (Unaudited). 
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 Consolidated Statements of Changes in Equity 
 
 Key Shareholders’ Equity 
 Dollars in millions, except per share amounts 
 (Unaudited) 
 Preferred 
 Shares 
 Outstanding 
 (000) 
 Common 
 Shares 
 Outstanding 
 (000) 
 Preferred 
 Stock 
 Common 
 Shares 
 Capital 
 Surplus 
 Retained 
 Earnings 
 Treasury 
 Stock, 
 at Cost 
 Accumulated 
 Other 
 Comprehensive 
 Income (Loss) 
 Total Shareholders’ Equity 
 BALANCE AT DECEMBER 31, 2025 1,996 1,102,401 $ 2,500 $ 1,257 $ 6,035 $ 15,359 $ ( 2,810 ) $ ( 1,960 ) $ 20,381 
 Net income (loss) 1,031 1,031 
 Other comprehensive income (loss) ( 394 ) ( 394 ) 
 Deferred compensation ( 1 ) ( 1 ) 
 Cash dividends declared 
 Common Shares ($ .410 per share) 
 ( 445 ) ( 445 ) 
 Series D Preferred Stock ($ 25.00 per depositary share) 
 ( 13 ) ( 13 ) 
 Series E Preferred Stock ($ .766 per depositary share) 
 ( 15 ) ( 15 ) 
 Series F Preferred Stock ($ .706 per depositary share) 
 ( 12 ) ( 12 ) 
 Series G Preferred Stock ($ .703 per depositary share) 
 ( 13 ) ( 13 ) 
 Series H Preferred Stock ($ .775 per depositary share) 
 ( 19 ) ( 19 ) 
 Common Share repurchases (a) 
 ( 33,500 ) — ( 727 ) ( 727 ) 
 Excise tax on share repurchases — — ( 6 ) ( 6 ) 
 Employee equity compensation program Common Share repurchases ( 2,170 ) — ( 47 ) ( 47 ) 
 Common Shares reissued (returned) for stock options and other employee benefit plans 5,304 ( 20 ) 98 78 
 
 BALANCE AT JUNE 30, 2026 1,996 1,072,035 $ 2,500 $ 1,257 $ 6,014 $ 15,873 $ ( 3,492 ) $ ( 2,354 ) $ 19,798 
 
 BALANCE AT MARCH 31, 2026 1,996 1,087,293 $ 2,500 $ 1,257 $ 5,981 $ 15,622 $ ( 3,152 ) $ ( 2,221 ) $ 19,987 
 
 Net income (loss) 509 509 
 Other comprehensive income (loss) ( 133 ) ( 133 ) 
 Deferred compensation 1 1 
 Cash dividends declared 
 Common Shares ($ .205 per share) 
 ( 222 ) ( 222 ) 
 Series D Preferred Stock ($ 12.50 per depositary share) 
 ( 7 ) ( 7 ) 
 Series E Preferred Stock ($ .382813 per depositary share) 
 ( 6 ) ( 6 ) 
 Series F Preferred Stock ($ .353125 per depositary share) 
 ( 6 ) ( 6 ) 
 Series G Preferred Stock ($ .351563 per depositary share) 
 ( 6 ) ( 6 ) 
 Series H Preferred Stock ($ .387500 per depositary share) 
 ( 11 ) ( 11 ) 
 
 Common Share repurchases (a) 
 ( 15,531 ) — ( 341 ) ( 341 ) 
 Excise tax on share repurchases — — ( 3 ) ( 3 ) 
 Employee equity compensation program Common Share repurchases ( 6 ) — ( 1 ) ( 1 ) 
 Common Shares reissued (returned) for stock options and other employee benefit plans 279 32 5 37 
 
 BALANCE AT JUNE 30, 2026 1,996 1,072,035 $ 2,500 $ 1,257 $ 6,014 $ 15,873 $ ( 3,492 ) $ ( 2,354 ) $ 19,798 
 
 (a) Includes open market repurchases and shares purchased pursuant to the share repurchase agreement with Scotiabank. 
 
 See Notes to Consolidated Financial Statements (Unaudited). 
 
 Key Shareholders’ Equity 
 Dollars in millions, except per share amounts 
 (Unaudited) 
 Preferred 
 Shares 
 Outstanding 
 (000) 
 Common 
 Shares 
 Outstanding 
 (000) 
 Preferred 
 Stock 
 Common 
 Shares 
 Capital 
 Surplus 
 Retained 
 Earnings 
 Treasury 
 Stock, 
 at Cost 
 Accumulated 
 Other 
 Comprehensive 
 Income (Loss) 
 Total Shareholders’ Equity 
 BALANCE AT DECEMBER 31, 2024 1,996 1,106,786 $ 2,500 $ 1,257 $ 6,038 $ 14,584 $ ( 2,733 ) $ ( 3,470 ) $ 18,176 
 
 Net income (loss) 830 830 
 Other comprehensive income (loss) 969 969 
 Deferred compensation ( 1 ) ( 1 ) 
 
 Common Shares ($ .410 per share) 
 ( 456 ) ( 456 ) 
 Series D Preferred Stock ($ 25.00 per depositary share) 
 ( 13 ) ( 13 ) 
 Series E Preferred Stock ($ .766 per depositary share) 
 ( 15 ) ( 15 ) 
 Series F Preferred Stock ($ .706 per depositary share) 
 ( 12 ) ( 12 ) 
 Series G Preferred Stock ($ .703 per depositary share) 
 ( 13 ) ( 13 ) 
 Series H Preferred Stock ($ .775 per depositary share) 
 ( 19 ) ( 19 ) 
 
 Employee equity compensation program Common Share repurchases ( 1,961 ) — ( 35 ) ( 35 ) 
 Common Shares reissued (returned) for stock options and other employee benefit plans 7,628 ( 66 ) 139 73 
 
 BALANCE AT JUNE 30, 2025 1,996 1,112,453 $ 2,500 $ 1,257 $ 5,971 $ 14,886 $ ( 2,629 ) $ ( 2,501 ) $ 19,484 
 
 BALANCE AT MARCH 31, 2025 1,996 1,111,986 $ 2,500 $ 1,257 $ 5,946 $ 14,724 $ ( 2,637 ) $ ( 2,787 ) $ 19,003 
 Net income (loss) 
 425 425 
 Other comprehensive income (loss) 286 286 
 
 Common Shares ($ .205 per share) 
 ( 227 ) ( 227 ) 
 Series D Preferred Stock ($ 12.50 per depositary share) 
 ( 6 ) ( 6 ) 
 Series E Preferred Stock ($ .382813 per depositary share) 
 ( 7 ) ( 7 ) 
 Series F Preferred Stock ($ .353125 per depositary share) 
 ( 6 ) ( 6 ) 
 Series G Preferred Stock ($ .351563 per depositary share) 
 ( 7 ) ( 7 ) 
 Series H Preferred Stock ($ .387500 per depositary share) 
 ( 10 ) ( 10 ) 
 
 Employee equity compensation program Common Share repurchases ( 3 ) — — — 
 Common Shares reissued (returned) for stock options and other employee benefit plans 470 25 8 33 
 
 BALANCE AT JUNE 30, 2025 1,996 1,112,453 $ 2,500 $ 1,257 $ 5,971 $ 14,886 $ ( 2,629 ) $ ( 2,501 ) $ 19,484 
 
 See Notes to Consolidated Financial Statements (Unaudited). 
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 Consolidated Statements of Cash Flows 
 
 Dollars in millions Six months ended June 30, 
 (Unaudited) 2026 2025 
 OPERATING ACTIVITIES 
 Net income (loss) $ 1,031 $ 830 
 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: 
 Provision for credit losses 198 256 
 Depreciation, amortization, and accretion, net ( 10 ) 11 
 Increase in cash surrender value of corporate-owned life insurance ( 60 ) ( 59 ) 
 Stock-based compensation expense 64 63 
 Deferred income taxes (benefit) 51 16 
 Proceeds from sales of loans held for sale 3,987 3,767 
 Originations of loans held for sale, net of repayments ( 4,020 ) ( 3,506 ) 
 Net losses (gains) on sales of loans held for sale ( 66 ) ( 60 ) 
 Net losses (gains) on leased equipment ( 1 ) — 
 Net securities and other investments losses (gains) ( 3 ) — 
 Net losses (gains) on sales of fixed assets 1 — 
 Net change in: 
 Trading account assets 125 ( 91 ) 
 Accrued income and other assets ( 417 ) 95 
 Accrued expense and other liabilities ( 529 ) ( 733 ) 
 Other operating activities, net ( 154 ) 505 
 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 197 1,094 
 INVESTING ACTIVITIES 
 
 Net decrease (increase) in short-term investments, excluding acquisitions ( 2,253 ) 5,940 
 Purchases of securities available for sale ( 2,956 ) ( 5,419 ) 
 Proceeds from sales of securities available for sale 650 — 
 Proceeds from prepayments and maturities of securities available for sale 3,200 3,256 
 Proceeds from prepayments and maturities of held-to-maturity securities 843 484 
 Purchases of held-to-maturity securities ( 1,732 ) — 
 Net decrease (increase) in other investments ( 281 ) ( 16 ) 
 Net decrease (increase) in loans, excluding acquisitions, sales and transfers ( 4,178 ) ( 2,294 ) 
 Proceeds from sales of portfolio loans 108 66 
 Proceeds from corporate-owned life insurance 36 30 
 Purchases of premises, equipment, and software ( 38 ) ( 33 ) 
 
 NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ( 6,601 ) 2,017 
 FINANCING ACTIVITIES 
 Net increase (decrease) in deposits 4,376 ( 2,855 ) 
 Net increase (decrease) in short-term borrowings 2,601 630 
 Net proceeds from issuance of long-term debt 2,119 1,411 
 Payments on long-term debt ( 984 ) ( 1,714 ) 
 
 Common Share repurchases (a) 
 ( 727 ) — 
 Employee equity compensation program Common Share repurchases ( 47 ) ( 35 ) 
 
 Net proceeds from reissuance of Common Shares 7 3 
 
 Cash dividends paid ( 517 ) ( 528 ) 
 NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 6,828 ( 3,088 ) 
 NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS 424 23 
 CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD 1,287 1,743 
 CASH AND DUE FROM BANKS AT END OF PERIOD $ 1,711 $ 1,766 
 Additional disclosures relative to cash flows: 
 Interest paid $ 1,533 $ 1,912 
 Income taxes paid (refunded) 101 4 
 Noncash items: 
 Reduction of secured borrowing and related collateral $ 1 $ 1 
 Loans transferred to portfolio from held for sale 13 71 
 Loans transferred to held for sale from portfolio 34 6 
 Loans transferred to OREO 2 2 
 
 (a) Includes open market repurchases and shares purchased pursuant to the share repurchase agreement with Scotiabank. 
 
 See Notes to Consolidated Financial Statements (Unaudited). 
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 Notes to Consolidated Financial Statements (Unaudited) 
 
 1. Basis of Presentation and Accounting Policies 
 
 The consolidated financial statements include the accounts of KeyCorp and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. 
 
 The consolidated financial statements include any voting rights entities in which we have a controlling financial interest. In accordance with the applicable accounting guidance for consolidations, we consolidate a VIE if we have: (i) a variable interest in the entity; (ii) the power to direct activities of the VIE that most significantly affect the entity’s economic performance; and (iii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE (i.e., we are considered to be the primary beneficiary). Variable interests can include equity interests, subordinated debt, derivative contracts, leases, service agreements, guarantees, standby letters of credit, loan commitments, and other contracts, agreements, and financial instruments. See Note 10 (“Variable Interest Entities”) for information on our involvement with VIEs. 
 
 We use the equity method to account for unconsolidated investments in voting rights entities or VIEs if we have significant influence over the entity’s operating and financing decisions (usually defined as a voting or economic interest of 20% to 50%, but not controlling). Unconsolidated investments in voting rights entities or VIEs in which we have a voting or economic interest of less than 20% or for which we do not have significant influence are carried at the cost measurement alternative or at fair value. Investments held by our registered broker-dealer and investment company subsidiaries (principal investing entities and Real Estate Capital line of business) are carried at fair value. 
 
 The unaudited consolidated interim financial statements reflect all adjustments of a normal recurring nature and disclosures that are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. The interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our 2025 Form 10-K. 
 
 In preparing these financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all shareholders and other financial statement users or filed with the SEC. 
 
 2. Earnings Per Common Share 
 
 Basic earnings per share is the amount of earnings (losses), adjusted for dividends declared on our preferred stock, available to each Common Share outstanding during the reporting periods. Diluted earnings per share is the amount of earnings (losses) available to each Common Share outstanding during the reporting periods adjusted to include the effects of potentially dilutive Common Shares. Potentially dilutive Common Shares include stock options and other stock-based awards. Potentially dilutive Common Shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. 
 
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 Our basic and diluted earnings per Common Share are calculated as follows: 
 
 Three months ended June 30, Six months ended June 30, 
 Dollars in millions, except per share amounts 2026 2025 2026 2025 
 EARNINGS 
 Income (loss) from continuing operations 
 $ 508 $ 423 $ 1,030 $ 829 
 
 Less: Dividends on Preferred Stock 36 36 72 72 
 Income (loss) from continuing operations attributable to Key common shareholders 472 387 958 757 
 Income (loss) from discontinued operations, net of taxes 1 2 1 1 
 Net income (loss) attributable to Key common shareholders $ 473 $ 389 $ 959 $ 758 
 WEIGHTED-AVERAGE COMMON SHARES 
 Weighted-average Common Shares outstanding (000) 1,071,229 1,100,033 1,077,977 1,098,453 
 Effect of Common Share options and other stock awards 8,779 7,177 9,435 8,331 
 Weighted-average Common Shares and potential Common Shares outstanding (000) (a) 
 1,080,008 1,107,210 1,087,412 1,106,784 
 EARNINGS PER COMMON SHARE 
 Income (loss) from continuing operations attributable to Key common shareholders $ .44 $ .35 $ .89 $ .69 
 Income (loss) from discontinued operations, net of taxes — — — — 
 Net income (loss) attributable to Key common shareholders (b) 
 .44 .35 .89 .69 
 
 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution $ .44 $ .35 $ .88 $ .69 
 Income (loss) from discontinued operations, net of taxes — assuming dilution — — — — 
 Net income (loss) attributable to Key common shareholders—assuming dilution (b) 
 .44 .35 .88 .69 

 (a) Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable. 
 (b) EPS may not foot due to rounding. 
 
 3. Loan Portfolio 
 
 Loan Portfolio by Portfolio Segment and Class of Financing Receivable (a) 
 
 Dollars in millions June 30, 2026 December 31, 2025 
 Commercial and industrial (b) 
 $ 62,734 $ 57,688 
 Commercial real estate: 
 Commercial mortgage 13,941 13,707 
 Construction 2,896 2,844 
 Total commercial real estate loans 16,837 16,551 
 Commercial lease financing 1,997 2,270 
 Total commercial loans 81,568 76,509 
 
 Real estate — residential mortgage 18,178 18,732 
 Home equity loans 5,408 5,703 
 Total residential loans 23,586 24,435 
 Other consumer loans 4,349 4,644 
 Credit cards 927 953 
 
 Total consumer loans 28,862 30,032 
 Total loans (c) 
 $ 110,430 $ 106,541 
 
 (a) Accrued interest of $ 453 million and $ 459 million at June 30, 2026, and December 31, 2025, respectively, presented in "Accrued income and other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. 
 (b) Loan balances include $ 208 million and $ 205 million of commercial credit card balances at June 30, 2026, and December 31, 2025, respectively. 
 (c) Total loans exclude loans of $ 182 million at June 30, 2026, and $ 205 million at December 31, 2025, related to the discontinued operations of the education lending business. These amounts are included within “Discontinued assets” on the Consolidated Balance Sheet. 
 
 We have access to secured borrowings from the Federal Reserve and advances from the FHLB. As of June 30, 2026 and December 31, 2025, loans and leases totaling $ 70.6 billion and $ 71.0 billion, respectively, were pledged to the FRB and FHLB for access to these contingent funding sources. 
 
 4. Asset Quality 
 
 ALLL 
 
 We estimate the appropriate level of the ALLL on at least a quarterly basis. The methodology is described in Note 1 ("Summary of Significant Accounting Policies") under the heading "Allowance for Loan and Lease Losses" beginning on page 109 of our 2025 Form 10-K. 
 
 The ALLL at June 30, 2026, represents our current estimate of lifetime credit losses inherent in the loan portfolio at that date. The changes in the ALLL by loan category for the periods indicated are as follows: 
 
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 Three months ended June 30, 2026: 
 
 Dollars in millions March 31, 2026 Provision Charge-offs Recoveries June 30, 2026 
 Commercial and Industrial $ 767 $ 113 $ ( 84 ) $ 9 $ 805 
 Commercial real estate: 
 Real estate — commercial mortgage 253 8 ( 20 ) 1 242 
 Real estate — construction 51 ( 14 ) — — 37 
 Total commercial real estate loans 304 ( 6 ) ( 20 ) 1 279 
 Commercial lease financing 26 ( 2 ) ( 1 ) — 23 
 Total commercial loans 1,097 105 ( 105 ) 10 1,107 
 Real estate — residential mortgage 69 ( 2 ) ( 1 ) 1 67 
 Home equity loans 51 ( 3 ) — — 48 
 Other consumer loans 148 5 ( 14 ) 3 142 
 Credit cards 84 6 ( 11 ) 2 81 
 
 Total consumer loans 352 6 ( 26 ) 6 338 
 Total ALLL — continuing operations 1,449 111 (a) 
 ( 131 ) 16 1,445 
 Discontinued operations 11 ( 2 ) — — 9 
 Total ALLL — including discontinued operations $ 1,460 $ 109 $ ( 131 ) $ 16 $ 1,454 
 
 (a) Excludes a credit related to reserves on lending-related commitments of $ 19 million. 
 
 Three months ended June 30, 2025: 
 
 Dollars in millions March 31, 2025 Provision Charge-offs Recoveries June 30, 2025 
 Commercial and Industrial $ 669 $ 84 $ ( 94 ) $ 19 $ 678 
 Commercial real estate: 
 Real estate — commercial mortgage 297 27 ( 6 ) 1 319 
 Real estate — construction 57 — — — 57 
 Total commercial real estate loans 354 27 ( 6 ) 1 376 
 Commercial lease financing 34 — ( 2 ) — 32 
 Total commercial loans 1,057 111 ( 102 ) 20 1,086 
 Real estate — residential mortgage 71 ( 4 ) — 1 68 
 Home equity loans 75 ( 7 ) — 1 69 
 Other consumer loans 143 9 ( 13 ) 2 141 
 Credit cards 83 10 ( 12 ) 1 82 
 
 Total consumer loans 372 8 ( 25 ) 5 360 
 Total ALLL — continuing operations 1,429 119 (a) 
 ( 127 ) 25 1,446 
 Discontinued operations 13 — ( 1 ) — 12 
 Total ALLL — including discontinued operations $ 1,442 $ 119 $ ( 128 ) $ 25 $ 1,458 
 
 (a) Excludes a provision related to reserves on lending-related commit ments of $ 19 million. 
 
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 Six months ended June 30, 2026: 
 
 Dollars in millions December 31, 2025 Provision Charge-offs Recoveries June 30, 2026 
 Commercial and Industrial $ 745 $ 215 $ ( 174 ) $ 19 $ 805 
 Commercial real estate: 
 Real estate — commercial mortgage 252 10 ( 21 ) 1 242 
 Real estate — construction 55 ( 18 ) — — 37 
 Total commercial real estate loans 307 ( 8 ) ( 21 ) 1 279 
 Commercial lease financing 26 ( 2 ) ( 1 ) — 23 
 Total commercial loans 1,078 205 ( 196 ) 20 1,107 
 Real estate — residential mortgage 66 — ( 1 ) 2 67 
 Home equity loans 52 ( 4 ) ( 1 ) 1 48 
 Other consumer loans 149 17 ( 29 ) 5 142 
 Credit cards 82 16 ( 21 ) 4 81 
 
 Total consumer loans 349 29 ( 52 ) 12 338 
 Total ALLL — continuing operations 1,427 234 (a) 
 ( 248 ) 32 1,445 
 Discontinued operations 11 ( 1 ) ( 1 ) — 9 
 Total ALLL — including discontinued operations $ 1,438 $ 233 $ ( 249 ) $ 32 $ 1,454 
 
 (a) Excludes a credit related to reserves on lending-related commitments of $ 36 million. 
 
 Six months ended June 30, 2025: 
 
 Dollars in millions December 31, 2024 Provision Charge-offs Recoveries June 30, 2025 
 Commercial and Industrial $ 639 $ 166 $ ( 156 ) $ 29 $ 678 
 Commercial real estate: 
 Real estate — commercial mortgage 320 40 ( 42 ) 1 319 
 Real estate — construction 51 6 — — 57 
 Total commercial real estate loans 371 46 ( 42 ) 1 376 
 Commercial lease financing 27 7 ( 2 ) — 32 
 Total commercial loans 1,037 219 ( 200 ) 30 1,086 
 Real estate — residential mortgage 90 ( 23 ) ( 1 ) 2 68 
 Home equity loans 70 ( 2 ) ( 1 ) 2 69 
 Other consumer loans 136 28 ( 27 ) 4 141 
 Credit cards 76 27 ( 24 ) 3 82 
 
 Total consumer loans 372 30 ( 53 ) 11 360 
 Total ALLL — continuing operations 1,409 249 (a) 
 ( 253 ) 41 1,446 
 Discontinued operations 13 — ( 1 ) — 12 
 Total ALLL — including discontinued operations $ 1,422 $ 249 $ ( 254 ) $ 41 $ 1,458 
 
 (a) Excludes a provision related to reserves on lending-related commitments of $ 7 million. 
 
 As 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, we estimate the ALLL using relevant available information, from internal and external sources, relating to past events, current economic and portfolio conditions, and reasonable and supportable forecasts. In our estimation of expected credit losses, we use a two-year reasonable and supportable period across all products. Following this two-year period in which supportable forecasts can be generated, for all modeled loan portfolios, we revert expected credit losses to a level that is consistent with our historical information by reverting the macroeconomic variables (model inputs) to their long run average. We revert to historical loss rates for less complex estimation methods for smaller portfolios. A 20-year fixed length look back period is used to calculate the long run average of the macroeconomic variables. A four-quarter reversion period is used where the macroeconomic variables linearly revert to their long run average following the two-year reasonable and supportable period. 
 
 We develop our reasonable and supportable forecasts using relevant data including, but not limited to, changes in economic output, unemployment rates, property values, and other factors associated with the credit losses on financial assets. Some macroeconomic variables apply to all portfolio segments, while others are more portfolio specific. The following table discloses key macroeconomic variables for each loan portfolio. 
 
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 Segment Portfolio Key Macroeconomic Variables (a) 
 
 Commercial Commercial and industrial BBB corporate bond rate (spread), fixed investment, business bankruptcies, GDP, industrial production, unemployment rate, and Producer Price Index 
 Commercial real estate Property & real estate price indices, unemployment rate, business bankruptcies, GDP, and SOFR 
 Commercial lease financing BBB corporate bond rate (spread), GDP, and unemployment rate 
 Consumer Real estate — residential mortgage GDP, home price index, unemployment rate, 30 year mortgage rate and U.S. household income 
 Home equity Home price index, unemployment rate, and 30 year mortgage rate 
 Other consumer Unemployment rate, prime rate and U.S. household income 
 
 Credit cards Unemployment rate and U.S. household income 
 Discontinued operations Unemployment rate 

 (a) Variables include all transformations and interactions with other risk drivers. Additionally, variables may have varying impacts at different points in the economic cycle. 
 
 In addition to macroeconomic drivers, portfolio attributes such as remaining term, outstanding balance, risk ratings, utilization, FICO, LTV, and delinquency also drive ALLL changes. Our ALLL models were designed to capture the correlation between economic and portfolio changes. As such, evaluating shifts in individual portfolio attributes and macroeconomic variables in isolation may not be indicative of past or future performance. 
 
 Economic Outlook 
 
 We utilized the Moody’s May 2026 Consensus forecast as the baseline forecast to estimate our expected credit losses as of June 30, 2026. This baseline scenario reflects slow growth over the next two years, but no recession. U.S. GDP is expected to grow at an annual rate of 2.0% for 2026 and 2.0% in 2027. The expected National Unemployment Rate is forecasted to remain close to 4.5% through 2026. The U.S. Consumer Price Index will remain close to 3%, while interest rates are expected to remain higher for longer, with the Federal Funds rate flat over the next year. 
 
 Evolving market conditions may not be fully captured in the baseline forecast as of quarter-end. The geopolitical environment remains uncertain, especially its impact on inflation and the path of rates, and poses potential downside-risks to the economic outlook over the next two years. These economic uncertainties continue to be addressed through qualitative reserve adjustments, which leverage downside economic assumptions. 
 
 As a result of the current economic uncertainty, our future loss estimates may vary considerably from our June 30, 2026 assumptions. 
 
 Commercial Loan Portfolio 
 
 The ALLL from continuing operations for the commercial segment increased $ 10 million, or 0.9 %, from March 31, 2026. The increasing reserve levels are reflective of loan growth and credit migration, particularly in the Commercial and Industrial portfolio segments. These reserve increases are partially offset by resilient economic forecasts and ongoing runoff in high-reserve segments of the portfolio. 
 
 Consumer Loan Portfolio 
 
 The ALLL from continuing operations for the consumer segment decreased by $ 14 million, or 4.0 %,from March 31, 2026. The decreasing reserve levels are reflective of loan runoff impacts, paired with a stable economic outlook and continued strong credit performance. 
 
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 Credit Risk Profile 
 
 The prevalent risk characteristic for both commercial and consumer loans is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Evaluation of this risk is stratified and monitored by the loan risk rating grades assigned for the commercial loan portfolios and the refreshed FICO score assigned for the consumer loan portfolios. The internal risk grades assigned to loans follow our definitions of Pass and Criticized, which are consistent with published definitions of regulatory risk classifications. Loans with a pass rating represent those loans not classified on our rating scale for credits, as minimal credit risk has been identified. Criticized loans are those loans that either have a potential weakness deserving management's close attention or have a well-defined weakness that may put full collection of contractual cash flows at risk. Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the tables below at the dates indicated. 
 
 Most extensions of credit are subject to loan grading or scoring. Loan grades are assigned at the time of origination, verified by credit risk management, and periodically re-evaluated thereafter. This risk rating methodology blends our judgment with quantitative modeling. Commercial loans generally are assigned two internal risk ratings. The first rating reflects the probability that the borrower will default on an obligation; the second rating reflects expected recovery rates on the credit facility. Default probability is determined based on, among other factors, the financial strength of the borrower, an assessment of the borrower’s management, the borrower’s competitive position within its industry sector, and our view of industry risk in the context of the general economic outlook. Types of exposure, transaction structure, and collateral, including credit risk mitigants, affect the expected recovery assessment. 
 
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 Commercial Credit Exposure 
 Credit Risk Profile by Creditworthiness Category and Vintage (a)(b) 
 
 As of June 30, 2026 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis 
 Amortized Cost Basis by Origination Year and Internal Risk Rating 
 Dollars in millions 2026 2025 2024 2023 2022 Prior Total 
 Commercial and Industrial 
 Risk Rating: 
 Pass $ 5,938 $ 9,900 $ 5,330 $ 1,971 $ 4,180 $ 5,473 $ 26,095 $ 262 $ 59,149 
 Criticized (Accruing) 17 244 178 206 427 728 1,414 13 3,227 
 Criticized (Nonaccruing) 4 3 8 18 50 62 213 — 358 
 Total commercial and industrial 5,959 10,147 5,516 2,195 4,657 6,263 27,722 275 62,734 
 Annual gross write-offs — 1 1 8 17 20 127 — 174 
 Real estate — commercial mortgage 
 Risk Rating: 
 Pass 1,232 3,028 781 474 1,527 3,890 1,649 69 12,650 
 Criticized (Accruing) 1 93 62 119 302 432 18 8 1,035 
 Criticized (Nonaccruing) — — 53 7 127 65 4 — 256 
 Total real estate — commercial mortgage 
 1,233 3,121 896 600 1,956 4,387 1,671 77 13,941 
 Annual gross write-offs — — 6 — 10 5 — — 21 
 Real estate — construction 
 Risk Rating: 
 Pass 35 786 712 482 241 62 345 — 2,663 
 Criticized (Accruing) — 14 2 35 — 179 — 3 233 
 Criticized (Nonaccruing) — — — — — — — — — 
 Total real estate — construction 35 800 714 517 241 241 345 3 2,896 
 Annual gross write-offs — — — — — — — — — 
 Commercial lease financing 
 Risk Rating: 
 Pass 145 246 207 255 366 713 — — 1,932 
 Criticized (Accruing) 1 4 2 18 17 17 — — 59 
 Criticized (Nonaccruing) — — — 4 1 1 — — 6 
 Total commercial lease financing 146 250 209 277 384 731 — 1,997 
 Annual gross write-offs — — — — — 1 — — 1 
 Total commercial loans $ 7,373 $ 14,318 $ 7,335 $ 3,589 $ 7,238 $ 11,622 $ 29,738 $ 355 $ 81,568 
 Total commercial loan annual gross write-offs $ — $ 1 $ 7 $ 8 $ 27 $ 26 $ 127 $ — $ 196 
 
 As of December 31, 2025 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis 
 Amortized Cost Basis by Origination Year and Internal Risk Rating 
 Dollars in millions 2025 2024 2023 2022 2021 Prior Total 
 Commercial and Industrial 
 Risk Rating: 
 Pass $ 9,473 $ 5,864 $ 2,263 $ 5,313 $ 2,648 $ 4,115 $ 24,267 $ 174 $ 54,117 
 Criticized (Accruing) 139 218 171 463 259 493 1,535 37 3,315 
 Criticized (Nonaccruing) 1 14 18 54 21 33 115 — 256 
 Total commercial and industrial 9,613 6,096 2,452 5,830 2,928 4,641 25,917 211 57,688 
 Annual gross write-offs 13 27 22 27 8 28 187 — 312 
 Real estate — commercial mortgage 
 Risk Rating: 
 Pass 3,246 826 651 1,911 1,519 2,997 1,366 29 12,545 
 Criticized (Accruing) 8 99 60 326 237 246 20 9 1,005 
 Criticized (Nonaccruing) — 16 3 95 31 9 3 — 157 
 Total real estate — commercial mortgage 
 3,254 941 714 2,332 1,787 3,252 1,389 38 13,707 
 Annual gross write-offs 19 14 1 18 29 10 3 — 94 
 Real estate — construction 
 Risk Rating: 
 Pass 468 565 771 262 130 72 296 2 2,566 
 Criticized (Accruing) — — 20 95 36 127 — — 278 
 Criticized (Nonaccruing) — — — — — — — — — 
 Total real estate — construction 468 565 791 357 166 199 296 2 2,844 
 Annual gross write-offs — — — — — — — — — 
 Commercial lease financing 
 Risk Rating: 
 Pass 322 228 293 433 249 609 — — 2,134 
 Criticized (Accruing) 5 4 26 55 18 21 — — 129 
 Criticized (Nonaccruing) — — 5 2 — — — — 7 
 Total commercial lease financing 327 232 324 490 267 630 — — 2,270 
 Annual gross write-offs — — 3 1 — 2 — — 6 
 Total commercial loans $ 13,662 $ 7,834 $ 4,281 $ 9,009 $ 5,148 $ 8,722 $ 27,602 $ 251 $ 76,509 
 Total commercial loan annual gross write-offs $ 32 $ 41 $ 26 $ 46 $ 37 $ 40 $ 190 $ — $ 412 
 
 (a) Accrued intere st of $ 338 million a nd $ 338 million as of June 30, 2026, and December 31, 2025, respectively, presented in “Accrued income and other assets” on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in these tables. 
 (b) Gross write-off information is presented on a year-to-date basis for the six months ended June 30, 2026 and the twelve months ended December 31, 2025. 
 
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 Consumer Credit Exposure 
 Credit Risk Profile by FICO Score and Vintage (a)(b) 
 
 As of June 30, 2026 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis 
 Amortized Cost Basis by Origination Year and FICO Score 
 Dollars in millions 2026 2025 2024 2023 2022 Prior Total 
 Real estate — residential mortgage 
 FICO Score: 
 750 and above $ 228 $ 315 $ 165 $ 539 $ 5,028 $ 9,506 $ — $ — $ 15,781 
 660 to 749 56 55 34 92 567 1,187 — — 1,991 
 Less than 660 2 6 13 26 104 240 — — 391 
 No Score — 2 2 1 1 7 2 — 15 
 Total real estate — residential mortgage 286 378 214 658 5,700 10,940 2 — 18,178 
 Annual gross write-offs — — — — — 1 — — 1 
 Home equity loans 
 FICO Score: 
 750 and above 16 40 22 19 108 1,714 1,736 153 3,808 
 660 to 749 5 16 12 11 36 375 664 49 1,168 
 Less than 660 — 2 3 5 15 140 241 19 425 
 No Score — 1 — — — 1 5 — 7 
 Total home equity loans 21 59 37 35 159 2,230 2,646 221 5,408 
 Annual gross write-offs — — — — — — 1 — 1 
 Other consumer loans 
 FICO Score: 
 750 and above 83 144 59 87 906 1,474 78 — 2,831 
 660 to 749 50 92 40 59 198 353 160 — 952 
 Less than 660 5 19 10 20 49 87 50 — 240 
 No Score 2 5 7 5 9 9 289 — 326 
 Total consumer direct loans 140 260 116 171 1,162 1,923 577 — 4,349 
 Annual gross write-offs — 3 2 3 5 10 6 — 29 
 Credit cards 
 FICO Score: 
 750 and above — — — — — — 471 — 471 
 660 to 749 — — — — — — 351 — 351 
 Less than 660 — — — — — — 104 — 104 
 No Score — — — — — — 1 — 1 
 Total credit cards — — — — — — 927 — 927 
 Annual gross write-offs — — — — — — 21 — 21 
 
 Total consumer loans $ 447 $ 697 $ 367 $ 864 $ 7,021 $ 15,093 $ 4,152 $ 221 $ 28,862 
 Total consumer loan annual gross write-offs $ — $ 3 $ 2 $ 3 $ 5 $ 11 $ 28 $ — $ 52 
 
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 As of December 31, 2025 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis 
 Amortized Cost Basis by Origination Year and FICO Score 
 Dollars in millions 2025 2024 2023 2022 2021 Prior Total 
 Real estate — residential mortgage 
 FICO Score: 
 750 and above $ 358 $ 224 $ 607 $ 5,342 $ 6,738 $ 3,403 $ — $ — $ 16,672 
 660 to 749 69 36 86 504 582 420 — — 1,697 
 Less than 660 2 11 23 87 73 149 — — 345 
 No Score 2 2 2 1 — 9 2 — 18 
 Total real estate — residential mortgage 431 273 718 5,934 7,393 3,981 2 — 18,732 
 Annual gross write-offs — — — — — 2 — — 2 
 Home equity loans 
 FICO Score: 
 750 and above 43 26 23 117 676 1,164 1,749 179 3,977 
 660 to 749 18 13 13 41 149 258 718 58 1,268 
 Less than 660 2 3 5 15 44 109 253 21 452 
 No Score — — — — — 1 5 — 6 
 Total home equity loans 63 42 41 173 869 1,532 2,725 258 5,703 
 Annual gross write-offs — — — — — — 2 — 2 
 Other consumer loans 
 FICO Score: 
 750 and above 175 73 104 986 1,032 595 81 — 3,046 
 660 to 749 112 48 74 220 218 179 172 — 1,023 
 Less than 660 17 12 21 54 52 46 54 — 256 
 No Score 12 8 5 10 13 6 265 — 319 
 Total consumer direct loans 316 141 204 1,270 1,315 826 572 — 4,644 
 Annual gross write-offs 4 5 7 9 9 7 15 — 56 
 Credit cards 
 FICO Score: 
 750 and above — — — — — — 479 — 479 
 660 to 749 — — — — — — 364 — 364 
 Less than 660 — — — — — — 108 — 108 
 No Score — — — — — — 2 — 2 
 Total credit cards — — — — — — 953 — 953 
 Annual gross write-offs — — — — — — 45 — 45 
 
 Total consumer loans $ 810 $ 456 $ 963 $ 7,377 $ 9,577 $ 6,339 $ 4,252 $ 258 $ 30,032 
 Total consumer annual gross write-offs $ 4 $ 5 $ 7 $ 9 $ 9 $ 9 $ 62 $ — $ 105 
 
 (a) Accrued intere st of $ 114 million and $ 121 million as of June 30, 2026, and December 31, 2025, respectively, presente d in “Accrued income and other assets” on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table. 
 (b) Gross write-off information is presented on a year-to-date basis for the six months ended June 30, 2026 and the twelve months ended December 31, 2025. 
 
 Nonperforming and Past Due Loans 
 
 Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest for our commercial and consumer loan portfolios are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 108 of our 2025 Form 10-K. 
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 Table of contents 

 The following aging analysis of past due and current loans as of June 30, 2026, and December 31, 2025, provides further information regarding Key’s credit exposure. 
 
 Aging Analysis of Loan Portfolio (a) 
 
 As of June 30, 2026 Current (b)(c) 
 30-59 
 Days Past 
 Due (b) 
 60-89 
 Days Past 
 Due (b) 
 90 and 
 Greater 
 Days Past 
 Due (b) 
 Non-performing
Loans Total Past 
 Due and 
 Non-performing 
 Loans (b) 
 Total 
 Loans (d) 
 
 Dollars in millions 
 LOAN TYPE 
 Commercial and industrial $ 62,303 $ 24 $ 13 $ 36 $ 358 $ 431 $ 62,734 
 Commercial real estate: 
 Commercial mortgage 13,648 7 22 8 256 293 13,941 
 Construction 2,895 — — 1 — 1 2,896 
 Total commercial real estate loans 16,543 7 22 9 256 294 16,837 
 Commercial lease financing 1,990 — — 1 6 7 1,997 
 Total commercial loans $ 80,836 $ 31 $ 35 $ 46 $ 620 $ 732 $ 81,568 
 Real estate — residential mortgage $ 18,052 $ 12 $ 5 $ 9 $ 100 $ 126 $ 18,178 
 Home equity loans 5,302 19 5 3 79 106 5,408 
 Other consumer loans 4,304 14 9 18 4 45 4,349 
 Credit cards 904 5 3 9 6 23 927 
 
 Total consumer loans $ 28,562 $ 50 $ 22 $ 39 $ 189 $ 300 $ 28,862 
 Total loans $ 109,398 $ 81 $ 57 $ 85 $ 809 $ 1,032 $ 110,430 
 
 (a) Amounts in table represent amortized cost and exclude loans held for sale. 
 (b) Accrued inter est of $ 453 million p resented in “Accrued income and other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. 
 (c) Includes balances of $ 54 million in Commercial mortgage and $ 5 million in Real estate - residential mortgage associated with loans sold to GNMA that are 90 days or more past due where Key has the right but not the obligation to repurchase and whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veteran Affairs. 
 (d) Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums. 
 
 As of December 31, 2025 Current (b)(c) 
 30-59 
 Days Past 
 Due (b) 
 60-89 
 Days Past 
 Due (b) 
 90 and 
 Greater 
 Days Past 
 Due (b) 
 Non-performing 
 Loans 
 Total Past 
 Due and 
 Non-performing 
 Loans (b) 
 Total 
 Loans (d) 
 
 Dollars in millions 
 LOAN TYPE 
 Commercial and industrial $ 57,336 $ 38 $ 17 $ 41 $ 256 $ 352 $ 57,688 
 Commercial real estate: 
 Commercial mortgage 13,450 47 20 33 157 257 13,707 
 Construction 2,843 — — 1 — 1 2,844 
 Total commercial real estate loans 16,293 47 20 34 157 258 16,551 
 Commercial lease financing 2,260 3 — — 7 10 2,270 
 Total commercial loans $ 75,889 $ 88 $ 37 $ 75 $ 420 $ 620 $ 76,509 
 Real estate — residential mortgage $ 18,593 $ 21 $ 14 $ — $ 104 $ 139 $ 18,732 
 Home equity loans 5,593 18 7 5 80 110 5,703 
 Other consumer loans 4,606 15 10 9 4 38 4,644 
 Credit cards 926 6 4 10 7 27 953 
 
 Total consumer loans $ 29,718 $ 60 $ 35 $ 24 $ 195 $ 314 $ 30,032 
 Total loans $ 105,607 $ 148 $ 72 $ 99 $ 615 $ 934 $ 106,541 
 
 (a) Amounts in table represent amortized cost and exclude loans held for sale. 
 (b) Accrued interest of $ 459 million presented in “Accrued income and other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. 
 (c) Includes balances of $ 66 million in Commercial mortgage and $ 6 million i n Real estate - residential mortgage associated with loans sold to GNMA that are 90 days or more past due where Key has the right but not the obligation to repurchase and whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veteran Affairs. 
 (d) Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums. 
 
 At June 30, 2026, the carrying amount of our commercial nonperforming loa ns outstanding represented 74 % of their original contractual amount owed, total nonperforming loans outstanding represented 78 % of their original contractual amount owed, and nonperforming assets in total were carried at 79 % of their original contractual amount owed. 
 
 Nonperforming loans reduced expected interest income by $ 13 million and $ 25 million for the three and six months ended June 30, 2026, respectively, and $ 13 million and $ 27 million for the three and six months ended June 30, 2025, respectively. 
 
 The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $ 357 million at June 30, 2026 and $ 386 million at December 31, 2025 . 
 
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 Collateral-dependent Financial Assets 
 
 We classify financial assets as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of the collateral. Our commercial loans have collateral that includes cash, accounts receivable, inventory, commercial machinery, commercial properties, commercial real estate construction projects, enterprise value, and stock or ownership interests in the borrowing entity. When appropriate we also consider the enterprise value of the borrower as a repayment source for collateral-dependent loans. Our consumer loans have collateral that includes residential real estate, automobiles, boats, and RVs. 
 
 At June 30, 2026 and June 30, 2025, the recorded investment of consumer residential mortgage and home equity loans in the process of foreclosure was $ 70 million and $ 65 million, respectively. 
 
 There were no significant changes in the extent to which collateral secures our collateral-dependent financial assets during the three and six months ended June 30, 2026. 
 
 Loan Modifications Made to Borrowers Experiencing Financial Difficulty 
 
 The ALLL for loans modified for borrowers experiencing financial difficulty is determined based on Key’s ALLL policy as described within Note 1 (“Summary of Significant Accounting Policies”) beginning on page 109 of our 2025 Form 10-K. 
 
 Modifications for Borrowers Experiencing Financial Difficulty 
 
 Our strategy in working with commercial borrowers is to allow them time to improve their financial position through loan modification. Commercial borrowers that are rated substandard or worse in accordance with the regulatory definition, or that cannot otherwise restructure at market terms and conditions, are considered to be experiencing financial difficulty. A modification of a loan is subject to the normal underwriting standards and processes for other similar credit extensions, both new and existing. The modified loan is evaluated to determine if it is a new loan or a continuation of the prior loan. 
 
 Consumer loans in which a borrower requires a modification as a result of negative changes to their financial condition or to avoid default, generally indicate the borrower is experiencing financial difficulty. The primary modifications made to consumer loans are amortization, maturity date and interest rate changes. Consumer borrowers identified as experiencing financial difficulty are generally unable to refinance their loans through our normal origination channel or through other independent sources. 
 
 The following tables show the amortized cost basis at the end of the noted reporting periods of the loans modified to borrowers experiencing financial difficulty within the past 12 months of the noted periods. The tables do not include those modifications that only resulted in an insignificant payment delay. The tables do not include consumer loans that are still within a trial modification period. Trial modifications may be done for consumer borrowers where a trial payment plan period is offered in advance of a permanent loan modification. As of June 30, 2026, there were 132 loans totaling $ 20 million in a trial modification period. As of June 30, 2025, there were 91 loans totaling $ 12 million in a trial modification period. 
 
 Commitments outstanding to lend additional funds to borrowers experiencing financial difficulty whose loans were modified were $ 75 million and $ 98 million at June 30, 2026 and June 30, 2025, respectively. 
 
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 As of June 30, 2026 Interest Rate Reduction Term Extension Other Combination (a) 
 Total 
 Dollars in millions Amortized Cost Basis Amortized Cost Basis Amortized Cost Basis Amortized Cost Basis Amortized Cost Basis % of Total Loan Type 
 LOAN TYPE 
 Commercial and Industrial $ 2 $ 294 $ 32 $ 60 $ 388 0.62 % 
 Commercial real estate: 
 Commercial mortgage — 99 19 2 120 0.86 
 
 Total commercial real estate loans — 99 19 2 120 0.71 
 
 Total commercial loans $ 2 $ 393 $ 51 $ 62 $ 508 0.62 % 
 
 Real estate — residential mortgage $ 3 $ 1 $ — $ 6 $ 10 0.06 % 
 Home equity loans 4 1 1 3 9 0.17 
 Other consumer loans — 1 — 2 3 0.07 
 Credit cards — — — 2 2 0.22 
 
 Total consumer loans $ 7 $ 3 $ 1 $ 13 $ 24 0.08 % 
 Total loans $ 9 $ 396 $ 52 $ 75 $ 532 0.48 % 
 
 As of June 30, 2025 Interest Rate Reduction Term Extension Other Combination (a) 
 Total 
 Dollars in millions Amortized Cost Basis Amortized Cost Basis Amortized Cost Basis Amortized Cost Basis Amortized Cost Basis % of Total Loan Type 
 LOAN TYPE 
 Commercial and Industrial $ — $ 109 $ 37 $ 19 $ 165 0.29 % 
 Commercial real estate: 
 Commercial mortgage — 212 17 52 281 2.03 
 Construction — 34 — — 34 1.20 
 Total commercial real estate loans — 246 17 52 315 1.89 
 
 Total commercial loans $ — $ 355 $ 54 $ 71 $ 480 0.64 % 
 
 Real estate — residential mortgage $ 2 $ — $ — $ 13 $ 15 0.08 % 
 Home equity loans 4 1 2 5 12 0.18 
 Other consumer loans — 3 — 2 5 0.10 
 Credit cards — — — 4 4 0.43 
 
 Total consumer loans $ 6 $ 4 $ 2 $ 24 $ 36 0.12 % 
 Total loans $ 6 $ 359 $ 56 $ 95 $ 516 0.49 % 
 
 (a) Combination modifications consist primarily of loans modified with both an interest rate reduction and a term extension. 
 
 Financial Effects of Modifications to Borrowers Experiencing Financial Difficulty 
 
 The following table summarizes the financial impacts of loan modifications made to specific loans for the noted periods. For the three and six months ended June 30, 2026 , the weighted-average interest rate change for commercial and industrial loans was comprised solely of modifications of commercial credit card balances. 
 
 Three months ended June 30, 2026 Weighted-average Interest Rate Change Weighted-average Term Extension (in years) 
 LOAN TYPE 
 Commercial and Industrial ( 25.53 ) % 1.08 
 Commercial mortgage — % 1.09 
 
 Real estate — residential mortgage ( 2.22 ) % 10.38 
 Home equity loans ( 1.55 ) % 3.29 
 Other consumer loans ( 2.36 ) % 0.61 
 Credit cards ( 20.07 ) % 0.25 
 
 Three months ended June 30, 2025 Weighted-average Interest Rate Change Weighted-average Term Extension (in years) 
 LOAN TYPE 
 Commercial and Industrial ( 30.00 ) % 0.65 
 Commercial mortgage — % 1.74 
 
 Real estate — residential mortgage ( 2.06 ) % 6.10 
 Home equity loans ( 2.06 ) % 5.96 
 Other consumer loans ( 3.25 ) % 0.80 
 Credit cards ( 2.08 ) % 0.25 
 
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 Six months ended June 30, 2026 Weighted-average Interest Rate Change Weighted-average Term Extension (in years) 
 LOAN TYPE 
 Commercial and Industrial ( 25.53 ) % 1.09 
 Commercial mortgage — % 0.83 
 
 Real estate — residential mortgage ( 2.33 ) % 9.03 
 Home equity loans ( 3.30 ) % 8.05 
 Other consumer loans ( 4.80 ) % 0.75 
 Credit cards ( 20.31 ) % 0.50 
 
 Six months ended June 30, 2025 Weighted-average Interest Rate Change Weighted-average Term Extension (in years) 
 LOAN TYPE 
 Commercial and Industrial ( 20.24 ) % 0.64 
 Commercial mortgage — % 1.44 
 Construction — % 0.50 
 
 Real estate — residential mortgage ( 1.69 ) % 5.59 
 Home equity loans ( 2.57 ) % 6.38 
 Other consumer loans ( 3.38 ) % 0.73 
 Credit cards ( 5.24 ) % 0.50 
 
 Amortized Cost Basis of Modified Loans That Subsequently Defaulted 
 
 Key considers modifications to borrowers experiencing financial difficulty that subsequently become 90 days or more past due under modified terms as subsequently defaulted. The following table presents the amortized cost of modified loans to borrowers experiencing financial difficulty that were within 12 months of their modification and subsequently defaulted within the noted periods. 
 
 Three months ended June 30, 2026 
 Dollars in millions Interest Rate Reduction Term Extension Other Combination Total 
 LOAN TYPE 
 Commercial and Industrial $ — $ 2 $ — $ — $ 2 
 
 Total commercial loans — 2 — — 2 
 
 Total loans $ — $ 2 $ — $ — $ 2 
 
 Three months ended June 30, 2025 
 Dollars in millions Interest Rate Reduction Term Extension Other Combination Total 
 LOAN TYPE 
 Commercial and Industrial $ — $ 1 $ 2 $ — $ 3 
 
 Total commercial loans — 1 2 — 3 
 
 Credit cards — — — 1 1 
 Total consumer loans $ — $ — $ — $ 1 $ 1 
 Total loans $ — $ 1 $ 2 $ 1 $ 4 
 
 Six months ended June 30, 2026 
 Dollars in millions Interest Rate Reduction Term Extension Other Combination Total 
 LOAN TYPE 
 Commercial and Industrial $ — $ 2 $ — $ — $ 2 
 Commercial real estate 
 Commercial mortgage — 39 2 — 41 
 
 Total commercial loans — 41 2 — 43 
 
 Home equity loans — — — 1 1 
 
 Total consumer loans $ — $ — $ — $ 1 $ 1 
 Total loans $ — $ 41 $ 2 $ 1 $ 44 
 
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 Six months ended June 30, 2025 
 Dollars in millions Interest Rate Reduction Term Extension Other Combination Total 
 LOAN TYPE 
 Commercial and Industrial $ — $ 1 $ 2 $ — $ 3 
 Commercial real estate 
 Commercial mortgage $ — $ 19 $ — $ — $ 19 
 
 Total commercial real estate loans — 19 — — 19 
 
 Total commercial loans — 20 2 — 22 
 
 Total loans $ — $ 20 $ 2 $ — $ 22 
 
 Key closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the amortized cost as of June 30, 2026, of loans modified during the 12 months then ended, by aging. 
 
 As of June 30, 2026 Current 30-89 Days 
Past Due 90 and Greater
Days Past Due Total 
 Dollars in millions 
 LOAN TYPE 
 Commercial and Industrial $ 365 $ 14 $ 9 $ 388 
 Commercial real estate 
 Commercial mortgage 76 — 44 120 
 
 Total commercial real estate loans 76 — 44 120 
 
 Total commercial loans $ 441 $ 14 $ 53 $ 508 
 
 Real estate — residential mortgage $ 9 $ 1 $ — $ 10 
 Home equity loans 8 1 — 9 
 Other consumer loans 3 — — 3 
 Credit cards 2 — — 2 
 
 Total consumer loans $ 22 $ 2 $ — $ 24 
 Total loans $ 463 $ 16 $ 53 $ 532 
 
 The following table presents the amortized cost as of June 30, 2025, of loans modified during the twelve months then ended, by aging. 
 
 As of June 30, 2025 Current 30-89 Days 
Past Due 90 and Greater
Days Past Due Total 
 Dollars in millions 
 LOAN TYPE 
 Commercial and Industrial $ 149 $ 13 $ 3 $ 165 
 Commercial real estate 
 Commercial mortgage 210 50 21 281 
 Construction 34 — — 34 
 Total commercial real estate loans 244 50 21 315 
 
 Total commercial loans $ 393 $ 63 $ 24 $ 480 
 
 Real estate — residential mortgage $ 14 $ 2 $ — $ 16 
 Home equity loans 10 — 1 11 
 Other consumer loans 5 — — 5 
 Credit cards 4 — — 4 
 
 Total consumer loans $ 33 $ 2 $ 1 $ 36 
 Total loans $ 426 $ 65 $ 25 $ 516 
 
 Liability for Credit Losses on Lending-related Commitments 
 
 The liability for credit losses on lending-related commitments is included in “accrued expense and other liabilities” on the balance sheet. This includes credit risk for recourse associated with loans sold under the Fannie Mae Delegated Underwriting and Servicing program and credit losses inherent in unfunded lending-related commitments, such as letters of credit and unfunded loan commitments, and certain financial guarantees. 
 
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 Changes in the liability for credit losses on lending-related commitments are summarized as follows: 
 
 Three months ended June 30, Six months ended June 30, 
 Dollars in millions 2026 2025 2026 2025 
 
 Balance at beginning of period $ 296 $ 278 $ 313 $ 290 
 Provision (credit) for losses on lending-related commitments ( 19 ) 19 ( 36 ) 7 
 
 Balance at end of period $ 277 $ 297 $ 277 $ 297 
 
 5. Fair Value Measurements 
 
 In accordance with GAAP, Key measures certain assets and liabilities at fair value. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants in the principal market of the asset or liability. Additional information regarding our accounting policies for determining fair value is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Fair Value Measurements” beginning on page 111 of our 2025 Form 10-K and Note 5 (“Fair Value Measurements”) beginning on page 131 of our 2025 Form 10-K. 
 
 Assets and Liabilities Measured at Fair Value on a Recurring Basis 
 
 Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. For more information on the valuation techniques used to measure classes of assets and liabilities reported at fair value on a recurring basis as well as the classification of each in the valuation hierarchy, refer to Note 5 (“Fair Value Measurements”) in our 2025 Form 10-K. The following tables present these assets and liabilities at June 30, 2026, and December 31, 2025. 
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 June 30, 2026 December 31, 2025 
 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 
 Dollars in millions 
 ASSETS MEASURED ON A RECURRING BASIS 
 
 Trading account assets: 
 U.S. Treasury, agencies and corporations $ — $ 434 $ — $ 434 $ — $ 674 $ — $ 674 
 States and political subdivisions — 20 — 20 — 60 — 60 
 
 Other mortgage-backed securities — 430 — 430 — 316 — 316 
 Other securities — 45 — 45 — 6 — 6 
 Total trading account securities — 929 — 929 — 1,056 — 1,056 
 Commercial loans — 7 — 7 — 5 — 5 
 Total trading account assets — 936 — 936 — 1,061 — 1,061 
 Securities available for sale: 
 U.S. Treasury, agencies and corporations — 7,075 — 7,075 — 7,886 — 7,886 
 
 Agency residential collateralized mortgage obligations — 7,995 — 7,995 — 8,565 — 8,565 
 Agency residential mortgage-backed securities — 19,608 — 19,608 — 19,195 — 19,195 
 Agency commercial mortgage-backed securities — 3,781 — 3,781 — 3,950 — 3,950 
 Other securities — — — — — — — — 
 Total securities available for sale — 38,459 — 38,459 — 39,596 — 39,596 
 Other investments: 
 Principal investments: 
 
 Indirect (measured at NAV) (a) 
 — — — 7 — — — 9 
 Total principal investments — — — 7 — — — 9 
 Equity investments: 
 Direct — 4 2 6 — — 3 3 
 Direct (measured at NAV) (a) 
 — — — 78 — — — 71 
 Indirect (measured at NAV) (a) 
 — — — 3 — — — 3 
 Total equity investments — 4 2 87 — — 3 77 
 Total other investments — 4 2 94 — — 3 86 
 Loans, net of unearned income (residential) — — 11 11 — — 11 11 
 Loans held for sale (residential) — 204 — 204 — 149 — 149 
 Derivative assets: 
 Interest rate — 105 ( 1 ) 104 — 135 ( 3 ) 132 
 Foreign exchange 66 33 — 99 39 44 — 83 
 Commodity — 284 — 284 — 249 — 249 
 
 Other — 54 2 56 — 7 1 8 
 Derivative assets 66 476 1 543 39 435 ( 2 ) 472 
 Netting adjustments (b) 
 — — — ( 347 ) — — — ( 297 ) 
 Total derivative assets 66 476 1 196 39 435 ( 2 ) 175 
 
 Total assets on a recurring basis at fair value $ 66 $ 40,079 $ 14 $ 39,900 $ 39 $ 41,241 $ 12 $ 41,078 
 LIABILITIES MEASURED ON A RECURRING BASIS 
 Bank notes and other short-term borrowings: 
 Short positions $ 668 $ 262 $ — $ 930 $ 412 $ 409 $ — $ 821 
 Derivative liabilities: 
 Interest rate — 635 — 635 — 577 — 577 
 Foreign exchange 61 34 — 95 36 44 — 80 
 Commodity — 273 — 273 — 237 — 237 
 Credit — 5 — 5 — 8 — 8 
 Other — 9 — 9 — 25 — 25 
 Derivative liabilities 61 956 — 1,017 36 891 — 927 
 Netting adjustments (b) 
 — — — ( 323 ) — — — ( 274 ) 
 Total derivative liabilities 61 956 — 694 36 891 — 653 
 
 Total liabilities on a recurring basis at fair value $ 729 $ 1,218 $ — $ 1,624 $ 448 $ 1,300 $ — $ 1,474 
 
 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. 
 (b) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments. 
 
 The fair value and related unfunded commitments of our indirect principal investments and direct equity investments measured at net asset value as a practical expedient at June 30, 2026, was $ 7 million and $ 50 million, respectively. 
 
 Changes in Level 3 Fair Value Measurements 
 
 The change in the fair values of our Level 3 financial instruments measured at fair value on a recurring basis for the three and six months ended June 30, 2026, and June 30, 2025 was not material. 
 
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 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis 
 
 Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance with GAAP. The adjustments to fair value generally result from the application of accounting guidance that requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. For more information on the valuation techniques used to measure classes of assets and liabilities measured at fair value on a nonrecurring basis, refer to Note 5 (“Fair Value Measurements”) in our 2025 Form 10-K. There were no liabilities measured at fair value on a nonrecurring basis at June 30, 2026, and December 31, 2025. 
 
 The following table presents our assets measured at fair value on a nonrecurring basis at June 30, 2026, and December 31, 2025: 
 
 June 30, 2026 December 31, 2025 
 Dollars in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total 
 ASSETS MEASURED ON A NONRECURRING BASIS 
 Collateral-dependent loans $ — $ — $ 186 $ 186 $ — $ — $ 56 $ 56 
 
 Accrued income and other assets — — 14 14 — — 32 32 
 Total assets on a nonrecurring basis at fair value $ — $ — $ 200 $ 200 $ — $ — $ 88 $ 88 
 
 We have other investments in equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share. We have elected to measure these securities at cost less impairment plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative. At June 30, 2026, and December 31, 2025, the carrying amount of equity investments under this method was $ 503 million and $ 467 million, respectively. We had no adjustments or impairments for the six months ended June 30, 2026. 
 
 Quantitative Information about Level 3 Fair Value Measurements 
 
 The range and weighted-average of the significant unobservable inputs used to measure the fair value of our material Level 3 recurring and nonrecurring assets at June 30, 2026, and December 31, 2025, along with the valuation techniques used, are shown in the following table: 
 
 Level 3 Asset (Liability) Valuation 
 Technique 
 Significant 
 Unobservable Input 
 Range (Weighted-Average) (a), (b) 
 
 Dollars in millions 
 June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 
 Recurring 
 
 Loans, net of unearned income (residential) $ 11 $ 11 Market comparable pricing Comparability factor 74.40 - 95.00 % ( 84.09 %) 
 74.30 - 99.00 % ( 84.99 %) 
 
 Derivative instruments: 
 Interest rate ( 1 ) ( 3 ) Discounted cash flows Probability of default .02 - 100 % ( 4.20 %) 
 .02 - 100 % ( 4.40 %) 
 
 Loss given default 0 - 1 ( .411 ) 
 0 - 1 ( .485 ) 
 
 Insignificant level 3 assets, net of liabilities (c) 
 4 4 
 Nonrecurring 
 Collateral-dependent loans 186 56 Fair value of collateral Credit and liquidity discount 0 - 72.00 % ( 22.00 %) 
 0 - 100.00 % ( 40.00 %) 
 
 Accrued income and other assets: (d) 
 
 OREO and other Level 3 assets 11 8 Appraised value Appraised value N/M N/M 
 
 (a) The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value. 
 (b) For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used. 
 (c) Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain equity investments and certain financial derivative assets and liabilities. 
 (d) Excludes $ 3 million pertaining to mortgage servicing assets measured on a nonrecurring basis as of June 30, 2026. Refer to Note 8 (“Mortgage Servicing Assets”) for significant unobservable inputs pertaining to these assets. 
 
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 Fair Value Disclosures of Financial Instruments 
 
 The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at June 30, 2026, and December 31, 2025, are shown in the following tables. Assets and liabilities are further arranged by measurement category. 
 
 June 30, 2026 
 Carrying
Amount Fair Value 
 Dollars in millions Level 1 Level 2 Level 3 Total 
 FINANCIAL ASSETS 
 Cash and short-term investments (a) 
 $ 14,127 $ 14,127 $ — $ — $ 14,127 
 
 Held-to-maturity securities (b) 
 9,515 — 9,124 — 9,124 
 
 Other investments (c) 
 1,139 — 4 1,135 1,139 
 
 Loans, net of unearned income (d) 
 108,974 — — 105,930 105,930 
 Loans held for sale (c) 
 994 — — 994 994 
 FINANCIAL LIABILITIES 
 
 Time deposits (e) 
 $ 12,014 $ — $ 12,063 $ — $ 12,063 
 Short-term borrowings (a) 
 2,755 — 2,755 — 2,755 
 Long-term debt (e) 
 10,967 10,025 1,711 — 11,736 
 Deposits with no stated maturity (a) 
 141,075 — 141,075 — 141,075 

 December 31, 2025 
 Carrying
Amount Fair Value 
 Dollars in millions Level 1 Level 2 Level 3 Total 
 FINANCIAL ASSETS 
 Cash and short-term investments (a) 
 $ 11,450 $ 11,450 $ — $ — $ 11,450 
 Held-to-maturity securities (b) 
 8,622 — 8,313 — 8,313 
 
 Other investments (c) 
 863 — — 863 863 
 
 Loans, net of unearned income (d) 
 105,103 — — 101,946 101,946 
 Loans held for sale (c) 
 928 — — 928 928 
 
 FINANCIAL LIABILITIES 
 
 Time deposits (e) 
 $ 12,680 $ — $ 12,731 $ — $ 12,731 
 Short-term borrowings (a) 
 263 — 263 — 263 
 Long-term debt (e) 
 9,917 9,318 $ 729 — 10,047 
 
 Deposits with no stated maturity (a) 
 136,033 — 136,033 — 136,033 

 Valuation Methods and Assumptions 
 (a) Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles. 
 (b) Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure that they are reasonable and consistent with the values placed on similar securities traded in the secondary markets. 
 (c) Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” within our 2025 Form 10-K Note 5 (“Fair Value Measurements”). 
 (d) The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value. 
 (e) Fair values of time deposits and long-term debt are based on discounted cash flows utilizing relevant market inputs. 
 
 Discontinued assets — education lending business . Our discontinued assets include government-guaranteed and private education loans originated through our education lending business that was discontinued in September 2009. This portfolio consists of loans recorded at carrying value with appropriate valuation reserves. All of these loans were excluded from the table above as follows: 
 
 • Loans at carrying value, net of allowance, of $ 182 million ($ 138 million at fair value) at June 30, 2026, and $ 205 million ($ 155 million at fair value) at December 31, 2025. 
 
 These assets are classified as Level 3 because we rely on unobservable inputs when determining fair value since observable market data is not available. 
 
 6. Securities 
 
 The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change. 
 
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 June 30, 2026 December 31, 2025 
 Dollars in millions Amortized 
 Cost (a)(b) 
 Gross Unrealized Gains Gross Unrealized Losses Fair 
 Value 
 Amortized 
 Cost (a)(b) 
 Gross Unrealized Gains Gross Unrealized Losses Fair 
 Value 
 
 SECURITIES AVAILABLE FOR SALE 
 U.S. Treasury, agencies, and corporations $ 7,102 $ 11 $ 38 $ 7,075 $ 7,842 $ 61 $ 17 $ 7,886 
 
 Agency residential collateralized mortgage obligations 
 9,726 9 1,740 7,995 10,269 4 1,708 8,565 
 Agency residential mortgage-backed securities 20,028 122 542 19,608 19,451 201 457 19,195 
 Agency commercial mortgage-backed securities 4,148 — 367 3,781 4,284 1 335 3,950 
 
 Total securities available for sale $ 41,004 $ 142 $ 2,687 $ 38,459 $ 41,846 $ 267 $ 2,517 $ 39,596 
 
 HELD-TO-MATURITY SECURITIES 
 
 Agency residential collateralized mortgage obligations 
 $ 3,754 $ 2 $ 208 $ 3,548 $ 4,026 $ 8 $ 176 $ 3,858 
 Agency residential mortgage-backed securities 3,935 5 44 3,896 2,374 12 13 2,373 
 Agency commercial mortgage-backed securities 1,786 — 144 1,642 2,121 1 139 1,983 
 Asset-backed securities (c) 
 19 — 1 18 77 — 2 75 
 Other securities 21 — 1 20 24 — — 24 
 Total held-to-maturity securities $ 9,515 $ 7 398 $ 9,124 $ 8,622 $ 21 $ 330 $ 8,313 
 
 (a) Amortized cost amounts exclude accrued interes t receivable which is recorded within “Accrued income and other assets” on the balance sheet. At June 30, 2026, accrued interest receivable on available for sale securities and held-to -maturity securities totaled $ 115 million and $ 32 million, respectively. At December 31, 2025, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $ 121 million and $ 26 million, respectively. 
 (b) Excluded from the amortized cost of securities available for sale are basis adjustments for securities designated in active fair value hedges. Basis adjustments totaled $( 26 ) million and $ 99 million as of June 30, 2026 and December 31, 2025, respectively. The securities being hedged are primarily U.S. Treasuries, Agency RMBS, and Agency CMBS. 
 (c) Amortized cost includes $ 16 million of securities as of June 30, 2026, and $ 74 million of securities as of December 31, 2025, related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans. 
 
 The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2026, and December 31, 2025. 
 
 Duration of Unrealized Loss Position 
 Less than 12 Months 12 Months or Longer Total 
 Dollars in millions Fair 
 Value 
 Gross 
 Unrealized 
 Losses 
 Fair 
 Value 
 Gross 
 Unrealized 
 Losses 
 Fair 
 Value 
 Gross 
 Unrealized 
 Losses 
 
 June 30, 2026 
 Securities available for sale: 
 
 U.S. Treasury, agencies, and corporations $ 2,082 $ 18 $ 522 $ 20 $ 2,604 $ 38 
 
 Agency residential collateralized mortgage obligations 
 — — 7,219 1,740 7,219 1,740 
 Agency residential mortgage-backed securities 
 7,268 85 3,793 457 11,061 542 
 Agency commercial mortgage-backed securities 
 250 3 3,531 364 3,781 367 
 
 Held-to-maturity securities: 
 
 Agency residential collateralized mortgage obligations 
 493 7 2,854 201 3,347 208 
 Agency residential mortgage-backed securities 
 3,056 33 118 11 3,174 44 
 Agency commercial mortgage-backed securities 
 — — 1,574 144 1,574 144 
 Asset-backed securities 
 — — 18 1 18 1 
 Other securities 
 12 — 3 1 15 1 
 Total securities in an unrealized loss position $ 13,161 $ 146 $ 19,632 $ 2,939 $ 32,793 $ 3,085 
 December 31, 2025 
 Securities available for sale: 
 
 U.S. Treasury, agencies, and corporations 
 $ — $ — $ 525 $ 17 $ 525 $ 17 
 
 Agency residential collateralized mortgage obligations — — 7,677 1,708 7,677 1,708 
 Agency residential mortgage-backed securities 
 1,226 7 
 
 5,583 450 6,809 457 
 Agency commercial mortgage-backed securities 7 — 3,777 335 3,784 335 
 
 Held-to-maturity securities: 
 
 Agency residential collateralized mortgage obligations 240 2 3,023 174 3,263 176 
 Agency residential mortgage-backed securities 
 526 2 125 11 651 13 
 Agency commercial mortgage-backed securities — — 1,914 139 1,914 139 
 Asset-backed securities 
 — — 75 2 75 2 
 Other securities 
 5 — 6 — 11 — 
 Total securities in an unrealized loss position $ 2,004 $ 11 $ 22,705 $ 2,836 $ 24,709 $ 2,847 
 
 Based on our evaluation at June 30, 2026, an allowance for credit losses has not been recorded nor have unrealized losses been recognized into income. The issuers of the securities are of high credit quality and have a history of no credit losses, management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The security issuers continue to make timely principal and interest payments. 
 
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 For the three months ended June 30, 2026, we recognized no gross realized gains or losses from the sale of securities available for sale. For the three months ended June 30, 2025, we recognized no gross realized gains or losses from the sale of securities available for sale. 
 
 For the six months ended June 30, 2026, we recognized no gross realized gains or losses from the sale of securities available for sale. For the six months ended June 30, 2025, we recognized no gross realized gains or losses from the sale of securities available for sale. 
 
 At June 30, 2026 and December 31, 2025, securities available for sale and held-to-maturity securities totaling $ 18.0 billion and $ 18.7 billion, respectively, were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law. 
 
 The following table shows our securities by remaining maturity at June 30, 2026. CMOs, other mortgage-backed securities, and asset-backed securities in the available for sale portfolio and held-to-maturity portfolio are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties. 
 
 June 30, 2026 Securities Available for Sale Held to Maturity Securities 
 Dollars in millions Amortized Cost Fair Value Amortized Cost Fair Value 
 Due in one year or less $ 3,347 $ 3,351 $ 290 $ 286 
 Due after one through five years 9,715 9,311 2,074 2,007 
 Due after five through ten years 22,458 20,670 6,247 6,048 
 Due after ten years 5,484 5,127 904 783 
 Total $ 41,004 $ 38,459 $ 9,515 $ 9,124 
 
 7. Derivatives and Hedging Activities 
 
 We are a party to various derivative instruments, mainly through our subsidiary, KeyBank. The primary derivatives that we use are interest rate swaps, caps, floors, forwards, and futures; foreign exchange contracts; commodity derivatives; and credit derivatives. Generally, these instruments help us manage exposure to interest rate risk, mitigate the credit risk inherent in our loan portfolio, hedge against changes in foreign currency exchange rates, and facilitate client financing and hedging needs. 
 
 Additional information regarding our accounting policies for derivatives is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 113 of our 2025 Form 10-K. Our derivative strategies and related risk management objectives are described in Note 7 (“Derivatives and Hedging Activities”) beginning on page 139 of our 2025 Form 10-K. 
 
 Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments 
 
 The following table summarizes the fair values of our derivative instruments on a gross and net basis as of June 30, 2026, and December 31, 2025. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “accrued income and other assets” or “accrued expenses and other liabilities” on the Consolidated Balance Sheets, as follows: 
 
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 June 30, 2026 December 31, 2025 
 Fair Value (a) 
 Fair Value (a) 
 
 Dollars in millions Notional
Amount Derivative 
 Assets 
 Derivative 
 Liabilities 
 Notional 
 Amount 
 Derivative 
 Assets 
 Derivative 
 Liabilities 
 
 Derivatives designated as hedging instruments: 
 Interest rate $ 62,787 $ ( 22 ) $ 10 $ 64,228 $ ( 13 ) $ 4 
 
 Derivatives not designated as hedging instruments: 
 Interest rate 74,644 126 625 74,994 145 573 
 Foreign exchange 6,437 99 95 5,767 83 80 
 Commodity 6,058 284 273 5,553 249 237 
 Credit 88 — 5 107 — 8 
 Other (b) 
 5,409 56 9 4,217 8 25 
 Total derivatives not designated as hedging instruments: 92,636 565 1,007 90,638 485 923 
 Total derivatives 155,423 543 1,017 154,866 472 927 
 Netting adjustments (c) 
 — ( 347 ) ( 323 ) — ( 297 ) ( 274 ) 
 Net derivatives in the balance sheet 155,423 196 694 154,866 175 653 
 Other collateral (d) 
 — — — — ( 22 ) ( 1 ) 
 Net derivative amounts $ 155,423 $ 196 $ 694 $ 154,866 $ 153 $ 652 
 
 (a) We take into account bilateral collateral and master netting agreements that allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related cash collateral when recognizing derivative assets and liabilities. As a result, we could have derivative contracts with negative fair values included in derivative assets and contracts with positive fair values included in derivative liabilities. 
 (b) Other derivatives include interest rate lock commitments related to our residential and commercial banking activities, forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts. 
 (c) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. As of June 30, 2026, excess collateral that has not been offset against net derivative instrument positions totaled $ 122 million of cash collateral and $ 225 million of securities collateral posted as well as $ 11 million of cash collateral held. As of December 31, 2025, excess collateral that has not been offset against net derivative instrument positions totaled $ 165 million of cash collateral and $ 218 million of securities collateral posted as well as $ 3 million of cash collateral and $ 78 million of securities collateral held. 
 (d) Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above. 
 
 Fair value hedges. During the six months ended June 30, 2026, we did not exclude any portion of fair value hedging instruments from the assessment of hedge effectiveness. 
 
 The following tables summarize the amounts that were recorded on the balance sheet as of June 30, 2026, and December 31, 2025, related to cumulative basis adjustments for fair value hedges. 
 
 June 30, 2026 
 Dollars in millions Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) 
 Hedge accounting basis adjustment - active hedges Hedge accounting basis adjustment - discontinued hedges 
 Interest rate contracts Long-term debt $ 8,609 $ ( 292 ) $ ( 3 ) 
 Interest rate contracts Securities Available for Sale (b) 
 12,830 25 14 
 
 December 31, 2025 
 Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) 
 Hedge accounting basis adjustment - active hedges Hedge accounting basis adjustment - discontinued hedges 
 Interest rate contracts Long-term debt $ 8,504 $ ( 199 ) $ ( 3 ) 
 Interest rate contracts Securities Available for Sale (b) 
 12,843 ( 100 ) 14 
 
 (a) The carrying amount represents the portion of the asset or liability designated as the hedged item. 
 (b) Certain amounts are designated as fair value hedges under the portfolio layer method. The carrying amount represents the amortized costs basis of the prepayable financial assets used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the relationship. At June 30, 2026, and December 31, 2025, the amortized costs of the closed portfolios in these hedging relationships was $ 8.1 billion and $ 6.7 billion, respectively, of which $ 5.8 billion and $ 4.9 billion, respectively, were designated in a portfolio layer hedging relationship. At June 30, 2026, the cumulative basis adjustments associated with these amounts totaled $ 46 million, which is comprised of $ 32 million in active hedging relationships and $ 14 million for discontinued hedging relationships. At December 31, 2025, the cumulative basis adjustments associated with these amounts totaled $( 35 ) million, which is comprised of $( 50 ) million in active hedging relationships and $ 14 million for discontinued hedging relationships. 
 
 Cash flow hedges. During the six-month period ended June 30, 2026, we did not exclude any portion of cash flow hedging instruments from the assessment of hedge effectiveness. 
 
 Considering the interest rates, yield curves, and notional amounts as of June 30, 2026, we expect to reclassify an estimated $ 136 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI to income during the next 12 months. In addition, we do not expect to reclassify any net gains related to terminated cash flow hedges from AOCI to income during the next 12 months. These reclassified amounts could differ from actual amounts recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to June 30, 2026. As of June 30, 2026, the maximum length of time over which we hedge forecasted transactions is 4.30 years. 
 
 The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- and six-month periods ended June 30, 2026, and June 30, 2025. 
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 Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships 
 Dollars in millions Interest expense – long-term debt Interest income – loans Interest Income - securities Investment banking and debt placement fees 
 Three months ended June 30, 2026 
 Total amounts presented in the consolidated statement of income $ ( 155 ) $ 1,463 $ 367 $ 169 
 
 Net gains (losses) on fair value hedging relationships 
 Interest rate contracts 
 Recognized on hedged items $ 64 $ — $ ( 64 ) $ — 
 Recognized on derivatives designated as hedging instruments ( 84 ) — 54 — 
 Net income (expense) recognized on fair value hedges $ ( 20 ) $ — $ ( 10 ) $ — 
 Net gain (loss) on cash flow hedging relationships 
 Interest rate contracts 
 Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ — $ ( 28 ) $ — $ 1 
 Net income (expense) recognized on cash flow hedges $ — $ ( 28 ) $ — $ 1 
 
 Three months ended June 30, 2025 
 Total amounts presented in the consolidated statement of income $ ( 198 ) $ 1,443 $ 411 $ 178 
 
 Net gains (losses) on fair value hedging relationships 
 Interest rate contracts 
 Recognized on hedged items $ ( 99 ) $ — $ 37 $ — 
 Recognized on derivatives designated as hedging instruments 51 — ( 31 ) — 
 Net income (expense) recognized on fair value hedges $ ( 48 ) $ — $ 6 $ — 
 Net gain (loss) on cash flow hedging relationships 
 Interest rate contracts 
 Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ ( 1 ) $ ( 90 ) $ — $ — 
 
 Net income (expense) recognized on cash flow hedges $ ( 1 ) $ ( 90 ) $ — $ — 
 
 Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships 
 
 Dollars in millions 
 Interest expense – long-term debt Interest income – loans Interest Income - securities Investment banking and debt placement fees 
 Six Months Ended June 30, 2026 
 Total amounts presented in the consolidated statement of income $ ( 306 ) $ 2,879 $ 737 $ 366 
 
 Net gains (losses) on fair value hedging relationships 
 Interest contracts 
 Recognized on hedged items $ 93 $ — $ ( 125 ) $ — 
 Recognized on derivatives designated as hedging instruments ( 135 ) — 105 — 
 Net income (expense) recognized on fair value hedges $ ( 42 ) $ — $ ( 20 ) $ — 
 Net gain (loss) on cash flow hedging relationships 
 Realized gains (losses) (pre-tax) reclassified from AOCI into net income 
 Interest contracts $ ( 1 ) $ ( 64 ) $ — $ 1 
 
 Net income (expense) recognized on cash flow hedges $ ( 1 ) $ ( 64 ) $ — $ 1 
 
 Six Months Ended June 30, 2025 
 Total amounts presented in the consolidated statement of income $ ( 391 ) $ 2,844 $ 803 $ 353 
 
 Net gains (losses) on fair value hedging relationships 
 Interest contracts 
 Recognized on hedged items $ ( 252 ) $ — $ 115 $ — 
 Recognized on derivatives designated as hedging instruments 159 — ( 102 ) — 
 Net income (expense) recognized on fair value hedges $ ( 93 ) $ — $ 13 $ — 
 Net gain (loss) on cash flow hedging relationships 
 Realized gains (losses) (pre-tax) reclassified from AOCI into net income 
 Interest contracts $ ( 2 ) $ ( 183 ) $ — $ — 
 
 Net income (expense) recognized on cash flow hedges $ ( 2 ) $ ( 183 ) $ — $ — 
 
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 The following table summarizes the pre-tax effect of our cash flow hedges for the three- and six-month periods ended June 30, 2026, and June 30, 2025. 
 
 Three months ended, 
 Dollars in millions 
 June 30, 2026 June 30, 2025 
 Net Gains (Losses) Recognized in OCI 
 Interest income — Loans $ ( 202 ) $ 122 
 
 Investment banking and debt placement fees 1 — 
 Total $ ( 201 ) $ 122 
 
 Net Gains (Losses) Reclassified From AOCI Into Income 
 Interest income — Loans $ ( 28 ) $ ( 90 ) 
 Interest expense — Long-term debt — ( 1 ) 
 Investment banking and debt placement fees 1 — 
 Total $ ( 27 ) $ ( 91 ) 
 
 Six months ended, 
 Dollars in millions 
 June 30, 2026 June 30, 2025 
 Net Gains (Losses) Recognized in OCI 
 Interest income — Loans $ 247 $ 363 
 Interest expense — Long-term debt 2 ( 1 ) 
 Investment banking and debt placement fees 1 — 
 Total $ 250 $ 362 
 
 Net Gains (Losses) Reclassified From AOCI Into Income 
 Interest income — Loans $ ( 64 ) $ ( 183 ) 
 Interest expense — Long-term debt ( 1 ) ( 2 ) 
 Investment banking and debt placement fees 1 — 
 Total $ ( 64 ) $ ( 185 ) 
 
 Nonhedging instruments. The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three- and six-month periods ended June 30, 2026, and June 30, 2025, and where they are recorded on the income statement. 
 
 Three months ended June 30, 2026 Three months ended June 30, 2025 
 Dollars in millions Corporate 
 services 
 income 
 Consumer mortgage income Other income Total Corporate services income Consumer mortgage income Other income Total 
 NET GAINS (LOSSES) 
 Interest rate $ 13 $ — $ — $ 13 $ 13 $ — $ — $ 13 
 Foreign exchange 12 — — 12 15 — — 15 
 Commodity 1 — — 1 2 — — 2 
 Credit — — ( 10 ) ( 10 ) — — ( 7 ) ( 7 ) 
 Other — ( 2 ) 17 15 — — ( 14 ) ( 14 ) 
 Total net gains (losses) $ 26 $ ( 2 ) $ 7 $ 31 $ 30 $ — $ ( 21 ) $ 9 
 
 Six months ended June 30, 2026 Six months ended June 30, 2025 
 Dollars in millions Corporate 
 services 
 income 
 Consumer mortgage income Other income Total Corporate services income Consumer mortgage income Other income Total 
 NET GAINS (LOSSES) 
 Interest rate $ 21 $ — $ — $ 21 $ 21 $ — $ 6 $ 27 
 Foreign exchange 25 — — 25 27 — — 27 
 Commodity 3 — — 3 4 — — 4 
 Credit — — ( 18 ) ( 18 ) — — ( 19 ) ( 19 ) 
 Other — — 67 67 — — ( 9 ) ( 9 ) 
 Total net gains (losses) $ 49 $ — $ 49 $ 98 $ 52 $ — $ ( 22 ) $ 30 
 
 Counterparty Credit Risk 
 
 We hold collateral in the form of cas h and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA . Cash collateral of $ 134 million was netted against derivative assets on the balance sheet at June 30, 2026, compared to $ 103 million of cash collateral netted against derivative assets at December 31, 2025. The cash collateral netted against derivative liabilities totaled $ 110 million at June 30, 2026, 
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 and $ 80 million at December 31, 2025. Our means of mitigating and managing exposure to credit risk on derivative contracts is described in Note 7 (“Derivatives and Hedging Activities”) beginning on page 139 of our 2025 Form 10-K under the heading “Counterparty Credit Risk.” 
 
 The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our net exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk. 
 
 Dollars in millions June 30, 2026 December 31, 2025 
 Interest rate $ 33 $ 82 
 Foreign exchange 62 39 
 Commodity 179 149 
 
 Other 56 8 
 Derivative assets before collateral 330 278 
 Plus(Less): Related collateral ( 134 ) ( 103 ) 
 Total derivative assets $ 196 $ 175 
 
 Credit Derivatives 
 
 We are a buyer and, under limited circumstances, may be a seller of credit protection through the credit derivative market. We purchase credit derivatives to manage the credit risk associated with specific commercial lending and swap obligations as well as exposures to debt securities. Our credit derivative portfolio was in a net liability position as of June 30, 2026 and December 31, 2025. Our credit derivative portfolio consists of traded credit default swap indices and risk participation agreements. Additional descriptions of our credit derivatives are provided in Note 7 (“Derivatives and Hedging Activities”) beginning on page 139 of our 2025 Form 10-K under the heading “Credit Derivatives.” 
 
 The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at June 30, 2026, and December 31, 2025. The notional amount represents the amount that the seller could 
 be required to pay. The payment/performance risk shown in the table represents a weighted average of the default 
 probabilities for all reference entities in the respective portfolios. These default probabilities are implied from observed credit indices in the credit default swap market, which are mapped to reference entities based on Key’s internal risk rating. 
 June 30, 2026 December 31, 2025 
 Dollars in millions Notional
Amount Average 
 Term 
 (Years) 
 Payment / 
 Performance 
 Risk 
 Notional 
 Amount 
 Average 
 Term 
 (Years) 
 Payment / 
 Performance 
 Risk 
 
 Other $ 3 5.51 3.73 % $ 9 3.62 1.76 % 
 Total credit derivatives sold $ 3 — — $ 9 — — 
 
 Credit Risk Contingent Features 
 
 We have entered into certain derivative contracts that require us to post collateral to the counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to our long-term senior unsecured credit ratings with Moody’s and S&P. Collateral requirements also are based on minimum transfer amounts, which are specific to each Credit Support Annex (a component of the ISDA Master Agreement) that we have signed with the counterparties. In a limited number of instances, counterparties have the right to terminate their ISDA Master Agreements with us if our ratings fall below a certain lev el, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At June 30, 2026, KeyBank’s rating was “Baa1” with Moody’s and “BBB+” with S&P, and KeyCorp’s rating was “Baa2” with Moody’s and “BBB” with S&P. Refer to the table below for the aggregate fair value of all derivative contracts with credit risk contingent features held by KeyBank that were in a net liability position. 
 
 Dollars in millions June 30, 2026 December 31, 2025 
 
 Net derivative liabilities with credit-risk contingent features
 
 $ ( 54 ) $ ( 49 ) 
 Collateral posted 43 49 

 As of June 30, 2026, and December 31, 2025, th e fair value of additional collateral that could be required to be posted as a result of the credit risk related contingent features being triggered was immaterial to Key’s consolidated 
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 financial statements. A t June 30, 2026, and December 31, 2025, only KeyBank held derivative contracts with credit risk contingent features. 
 
 8. Mortgage Servicing Assets 
 
 We originate and periodically sell commercial and residential mortgage loans but continue to service those loans for the buyers. We also may purchase the right to service commercial mortgage loans from other lenders. We record a servicing asset if we purchase or retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Additional information pertaining to the accounting for mortgage and other servicing assets is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Servicing Assets” beginning on page 114 of our 2025 Form 10-K. 
 
 Commercial 
 
 Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows: 
 
 Three months ended June 30, Six months ended June 30, 
 Dollars in millions 2026 2025 2026 2025 
 Balance at beginning of period $ 572 $ 597 $ 577 $ 609 
 Servicing retained from loan sales 12 17 34 32 
 Purchases — 4 4 8 
 Amortization ( 32 ) ( 31 ) ( 63 ) ( 62 ) 
 
 Balance at end of period $ 552 $ 587 $ 552 $ 587 
 Fair value at end of period $ 777 $ 787 $ 777 $ 787 
 
 The fair value of commercial mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The sensitivity, range, and weighted average of the significant unobservable inputs used to determine the fair value of our commercial mortgage servicing assets at June 30, 2026, and December 31, 2025, along with the valuation techniques, are shown in the following table: 
 
 June 30, 2026 December 31, 2025 
 Significant 
 Unobservable Input 
 Range 
 Weighted Average Range Weighted Average 
 
 Escrow earn rate 4.42 % 4.59 % 4.58 % 3.94 % 4.09 % 4.08 % 
 Effect on fair value from 10% adverse change $ ( 32 ) $ ( 29 ) 
 Effect on fair value from 20% adverse change ( 65 ) ( 57 ) 
 Residual cash flows discount rate 7.01 % 10.74 % 10.46 % 6.96 % 10.84 % 10.58 % 
 Effect on fair value from 10% adverse change $ ( 19 ) $ ( 19 ) 
 Effect on fair value from 20% adverse change ( 37 ) ( 36 ) 
 Expected defaults 1.00 % 1.50 % 1.04 % 1.00 % 2.00 % 1.01 % 
 Effect on fair value from 10% adverse change $ ( 2 ) $ ( 2 ) 
 Effect on fair value from 20% adverse change ( 4 ) ( 3 ) 
 Loan assumption rate 8.00 % 45.00 % 9.78 % 8.00 % 45.00 % 10.05 % 
 Effect on fair value from 10% adverse change $ ( 7 ) $ ( 6 ) 
 Effect on fair value from 20% adverse change ( 14 ) ( 13 ) 
 
 If these economic assumptions change or prove incorrect, the fair value of commercial mortgage servicing assets may also change. Expected credit losses, escrow earn rates, and discount rates are critical to the valuation of commercial mortgage servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates and reflect historical data associated with the commercial mortgage loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. A decrease in the value assigned to the escrow earn rates would cause a decrease in the fair value of our commercial mortgage servicing assets. An increase in the assumed default rates of commercial mortgage loans or an increase in the assigned discount rates would cause a decrease in the fair value of our commercial mortgage servicing assets. Prepayment activity on commercial serviced loans does not significantly impact the valuation of our commercial mortgage servicing assets. Unlike residential mortgages, commercial mortgages experience significantly lower prepayments due to certain contractual restrictions affecting the borrower’s ability to prepay the mortgage. 
 
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 The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the 
 effect of an adverse variation in a particular assumption on the fair value is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. 
 
 Assumptions and information for originated commercial mortgage servicing right additions for the six-month period ended June 30, 2026 are shown in the following table: 
 
 Dollars in millions 
 June 30, 2026 
 Unpaid principal balance of loans sold during the period $ 3,118 
 Pretax gains related to the sale of mortgage loans 53 
 Weighted average servicing fee rate 0.16 % 
 Weighted average assumptions: 
 Escrow earn rate assumption 4.28 % 
 Discount rate assumption 9.77 % 
 Default rate assumption 1.03 % 
 Prepayment rate assumption 11.94 % 
 
 The amortization of commercial servicing assets is determined in proportion to, and over the period of, the estimated net servicing income. The amortization of commercial servicing assets for each period, as shown in the table at the beginning of this note, is recorded as a reduction to contractual fee income. The contractual fee income from servicing commercial mortgage loans totaled $ 174 million for the six-month period ended June 30, 2026, and $ 209 million for the six-month period ended June 30, 2025. This fee income was offset by $ 63 million of amortization for the six-month period ended June 30, 2026, and $ 62 million for the six-month period ended June 30, 2025. Both the contractual fee income and the amortization are recorded, net, in “commercial mortgage servicing fees” on the income statement. 
 
 Residential 
 
 Changes in the carrying amount of residential mortgage servicing assets are summarized as follows: 
 
 Three months ended June 30, Six months ended June 30, 
 Dollars in millions 2026 2025 2026 2025 
 Balance at beginning of period $ 114 $ 111 $ 112 $ 111 
 Servicing retained from loan sales 4 4 9 7 
 
 Amortization ( 4 ) ( 3 ) ( 7 ) ( 6 ) 
 
 Balance at end of period $ 114 $ 112 $ 114 $ 112 
 Fair value at end of period $ 140 $ 136 $ 140 $ 136 
 
 The fair value of mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The sensitivity, range, and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at June 30, 2026, and December 31, 2025, along with the valuation techniques, are shown in the following table: 
 
 June 30, 2026 December 31, 2025 
 Significant 
 Unobservable Input 
 Range Weighted Average Range Weighted Average 
 
 Prepayment speed 5.57 % 32.55 % 8.06 % 6.01 % 33.07 % 8.33 % 
 Effect on Fair Value of a 10% adverse change $ ( 4 ) $ ( 4 ) 
 Effect on Fair Value of a 20% adverse change ( 8 ) ( 8 ) 
 Discount rate 6.50 % 8.75 % 6.62 % 6.50 % 8.75 % 6.62 % 
 Effect on Fair Value of a 10% adverse change $ ( 4 ) $ ( 4 ) 
 Effect on Fair Value of a 20% adverse change ( 7 ) ( 7 ) 
 Servicing cost $ 70.00 $ 4,332 $ 75.96 $ 70.00 $ 4,332 $ 76.47 
 
 If these economic assumptions change or prove incorrect, the fair value of residential mortgage servicing assets may also change. Prepayment speed, discount rates, and servicing cost are critical to the valuation of residential mortgage servicing assets. Estimates of these assumptions are based on how a market participant would view the 
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 respective rates and reflect historical data associated with the residential mortgage loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. An 
 increase in the prepayment speed would cause a decrease in the fair value of our residential mortgage servicing 
 assets. An increase in the assigned discount rates and servicing cost assumptions would cause a decrease in the 
 fair value of our residential mortgage servicing assets. 
 
 The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the 
 effect of an adverse variation in a particular assumption on the fair value is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. 
 
 The amortization of residential servicing assets for June 30, 2026, as shown in the table above, is recorded as a reduction to contractual fee income. The contractual fee income from servicing residential mortgage loans totaled $ 17 million for the six-month period ended June 30, 2026, and $ 20 million for the six-month period ended June 30, 2025. This fee income was offset by $ 7 million of amortization for the six-month period ended June 30, 2026, and $ 6 million for the six-month period ended June 30, 2025. Both the contractual fee income and the amortization are recorded, net, in “consumer mortgage income” on the income statement. 
 
 9. Leases 
 
 As a lessee, we enter into leases of land, buildings, and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. For more information on our leasing activity, see Note 9 (“Leases”) beginning on page 147 of our 2025 Form 10-K. 
 
 Lessor Equipment Leasing 
 
 Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. 
 
 Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the Consolidated Statements of Income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the Consolidated Statements of Income. The components of equipment leasing income are summarized in the table below: 
 
 Three months ended June 30, Six months ended June 30, 
 Dollars in millions 2026 2025 2026 2025 
 
 Sales-type and direct financing leases 
 Interest income on lease receivable $ 11 $ 14 $ 23 $ 29 
 Interest income related to accretion of unguaranteed residual asset 2 2 4 4 
 Interest income on deferred fees and costs 5 5 11 10 
 Total sales-type and direct financing lease income $ 18 $ 21 $ 38 $ 43 
 Operating leases 
 Operating lease income related to lease payments $ 8 $ 11 $ 17 $ 23 
 Other operating leasing gains (losses) 2 3 1 — 
 Total operating lease income and other leasing gains 10 14 18 23 
 Total lease income $ 28 $ 35 $ 56 $ 66 
 
 10. Variable Interest Entities 
 
 Our significant VIEs are summarized below. Additional information pertaining to the criteria used in determining if an entity is a VIE is included in Note 12 (“Variable Interest Entities”) beginning on page 151 of our 2025 Form 10-K. 
 
 LIHTC and NMTC investments. We had $ 2.3 billion and $ 2.4 billion of investments in LIHTC operating partnerships at June 30, 2026, and December 31, 2025, respectively. These investments are recorded in “accrued 
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 income and other assets” on our Consolidated Balance Sheets. We do not have any loss reserves recorded related to these investments because we believe the likelihood of any loss to be remote. For all legally binding, unfunded equity commitments, we increase our recognized investment and recognize a liability. As of June 30, 2026, and December 31, 2025, we had liabilities of $ 1.1 billion and $ 1.1 billion, respectively, related to investments in qualified affordable housing projects, which are recorded in “accrued expenses and other liabilities” on our Consolidated Balance Sheets. We continue to invest in these LIHTC operating partnerships. 
 
 The assets and liabilities presented in the table below convey the size of KCDC’s direct and indirect investments at June 30, 2026, and December 31, 2025. As these investments represent unconsolidated VIEs, the assets and liabilities of the investments themselves are not recorded on our Consolidated Balance Sheets. Additional information pertaining to our LIHTC investments is included in Note 12 (“Variable Interest Entities”) beginning on page 151 of our 2025 Form 10-K. 
 
 Unconsolidated VIEs 
 Dollars in millions Total 
 Assets 
 Total 
 Liabilities 
 Maximum 
 Exposure to Loss 
 
 June 30, 2026 
 LIHTC investments $ 9,634 $ 4,266 $ 2,863 
 December 31, 2025 
 LIHTC investments $ 11,212 $ 5,026 $ 2,913 

 We had $ 17 million and $ 18 million in NMTC investments at June 30, 2026 and December 31, 2025, respectively. These investments are recorded in “accrued income and other assets” on our Consolidated Balance Sheets . 
 
 We amortize our LIHTC and NMTC investments over the period that we expect to receive the tax benefits. During the six months ended June 30, 2026, we recognized $ 136 million of amortization, $ 134 million of tax credits and $ 33 million of other tax benefits associated with these investments within “income taxes” on our income statement. During the six months ended June 30, 2025, we recognized $ 134 million of amortization, $ 130 million of tax credits and $ 33 million of other tax benefits associated with these investments within “income taxes” on our income statement. 
 
 Principal investments. Our maximum exposure to loss associated with indirect principal investments consists of the investments’ fair value plus any unfunded equity commitments. The fair value of our indirect principal investments totaled $ 7 million and $ 9 million at June 30, 2026 and December 31, 2025, respectively. These investments are recorded in “other investments” on our Consolidated Balance Sheets. The table below reflects the size of the private equity funds in which we were invested as well as our maximum exposure to loss in connection with these investments at June 30, 2026, and December 31, 2025. 
 
 Unconsolidated VIEs 
 Dollars in millions Total 
 Assets 
 Total 
 Liabilities 
 Maximum 
 Exposure to Loss 
 
 June 30, 2026 
 Indirect investments $ 1,516 $ 1 $ 8 
 December 31, 2025 
 Indirect investments $ 1,858 $ 3 $ 10 

 Through our principal investing entities, we have formed and funded operating entities that provide management and other related services to our investment company funds, which directly invest in portfolio companies. These entities had no assets at June 30, 2026, and December 31, 2025, that can be used to settle the entities’ obligations. The entities had no liabilities at June 30, 2026, and December 31, 2025, and other equity investors have no recourse to our general credit. 
 
 Additional information on our indirect and direct principal investments is provided in Note 5 (“Fair Value Measurements”) beginning on page 131 and in Note 12 (“Variable Interest Entities”) beginning on page 151 of our 2025 Form 10-K. 
 
 Other unconsolidated VIEs. We are involved with other various entities in the normal course of business which we have determined to be VIEs. We have determined that we are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact their economic performance or hold a variable interest that could potentially be significant. The table below shows our assets and liabilities associated with these unconsolidated VIEs at June 30, 2026, and December 31, 2025. These assets are recorded in “accrued 
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 income and other assets,” “other investments,” “securities available for sale,” “held-to-maturity securities,” and “loans, net of unearned income” on our Consolidated Balance Sheets. Our maximum exposure to loss is equal to the value of the assets recorded. Of the total balance as of June 30, 2026, $ 16 million related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans. Additional information pertaining to our other unconsolidated VIEs is included in Note 12 (“Variable Interest Entities“) under the heading “Other unconsolidated VIEs” on page 152 of our 2025 Form 10-K. 
 
 Other unconsolidated VIEs 
 Dollars in millions Total Assets Total Liabilities 
 June 30, 2026 
 Other unconsolidated VIEs $ 452 $ — 
 December 31, 2025 
 Other unconsolidated VIEs $ 508 $ — 

 11. Income Taxes 
 
 Income Tax Provision 
 
 In accordance with the applicable accounting guidance, the principal method established for computing the provision for income taxes in interim periods requires us to make our best estimate of the effective tax rate expected to be applicable for the full year. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes. 
 
 The effective tax rate, which is the provision for income taxes as a percentage of income before income taxes, was 21.6 % for the second quarter of 2026 and 21.4 % for the second quarter of 2025. The effective tax rates were less than our combined federal and state statutory tax rate of 24.2 %, primarily due to income from investments in tax-advantaged assets such as corporate-owned life insurance, tax credits associated with low-income housing investments, and periodic adjustments to our tax reserves. 
 
 Deferred Taxes 
 
 We had a net deferred tax asset of $ 1.2 billion at both June 30, 2026 and December 31, 2025, which are included in “accrued income and other assets” on the balance sheet. The deferred tax asset is primarily related to market fluctuations in the investment security portfolio accounted for in other comprehensive income. 
 
 To determine the amount of deferred tax assets that are more likely than not to be realized, and therefore recorded, we conduct a quarterly assessment of all available evidence. This evidence includes, but is not limited to, taxable income in prior periods, projected future taxable income, and projected future reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo change. Based on these criteria, we had a valuation allowance of $ 5 million at June 30, 2026, and $ 5 million at December 31, 2025. The valuation allowance is associated with federal and state capital loss carryforwards, and state net operating loss carryforwards. 
 
 Unrecognized Tax Benefits 
 
 At June 30, 2026, Key’s unrecognized tax benefits were $ 3 million. As permitted under the applicable accounting guidance for income taxes, it is our policy to recognize interest and penalties related to unrecognized tax benefits in “income tax expense.” 
 
 Pre-1988 Bank Reserves Acquired in a Business Combination 
 
 Retained earnings of KeyBank included approximately $ 92 million of allocated bad debt deductions for which no income taxes have been recorded. Under current federal law, these reserves are subject to recapture into taxable income if KeyBank, or any successor, fails to maintain its bank status under the Internal Revenue Code or makes non-dividend distributions or distributions greater than its accumulated earnings and profits. No deferred tax liability has been established as these events are not expected to occur in the foreseeable future. 
 
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 12. Acquisitions & Discontinued Operations 
 
 Acquisitions 
 
 Clearwater Corporate Finance LLP. On April 22, 2026, KeyCorp announced a definitive agreement to acquire Clearwater Corporate Finance LLP (Clearwater UK), a leading UK-based middle market investment banking advisory firm. The acquisition closed on August 3, 2026. 
 
 Discontinued Operations 
 
 Discontinued operations primarily includes our government-guaranteed and private education lending business. At June 30, 2026, and December 31, 2025, approximately $ 182 million and $ 205 million, respectively, of education loans are included in discontinued assets on the Consolidated Balance Sheets. Net interest income after provision for credit losses for this business is not material and is included in income (loss) from discontinued operations, net of taxes on the Consolidated Statements of Income. 
 
 13. Borrowings 
 
 The following table presents a summary of our short-term borrowings: 
 
 Dollars in millions June 30, 2026 December 31, 2025 
 
 Securities sold under repurchase agreements $ 5 $ 13 
 
 Other short-term borrowings 3,680 1,071 
 
 Long-term borrowings 
 
 The following table presents the contractual rates and maturity dates of our long-term debt as of June 30, 2026 and the carrying values as of June 30, 2026 and December 31, 2025 . We use interest rate swaps and caps, which modify the repricing characteristics of certain long-term debt, to manage interest rate risk. For more information about such financial instruments, see Note 7 (“Derivatives and Hedging Activities”). 
 
 June 30, 2026 June 30, 2026 December 31, 2025 
 Dollars in millions Stated Rate Maturity Carrying Value 
 Parent Company 
 Senior notes 2.25 % - 6.40 % 
 2027 - 2037 
 $ 5,358 $ 4,659 
 Junior subordinated debentures 4.69 % - 7.75 % 
 2028 - 2037 
 445 447 
 
 Total parent company $ 5,803 $ 5,106 
 
 Subsidiaries 
 Senior notes 3.76 % - 5.85 % 
 2027 - 2039 
 $ 2,210 $ 2,229 
 Subordinated notes 3.90 % - 6.95 % 
 2028 - 2032 
 1,322 1,932 
 Federal Home Loan Bank advances 1.39 % - 7.36 % 
 2026 - 2042 
 1,556 560 
 Other long-term debt (a) 
 76 90 
 
 Total subsidiaries $ 5,164 $ 4,811 
 Total long-term debt $ 10,967 $ 9,917 
 
 (a) Includes debt associated with secured borrowings, investment fund financing, and capital lease obligations. 
 
 14. Contingent Liabilities and Guarantees 
 
 Legal Proceedings 
 
 Litigation. From time to time, in the ordinary course of business, we and our subsidiaries are subject to various litigation, investigations, and administrative proceedings. Private, civil litigation may range from individual actions involving a single plaintiff to putative or actual class action lawsuits with potentially thousands of class members, as well as arbitrations and mass arbitrations. Investigations may involve both formal and informal proceedings, by both government agencies and self-regulatory bodies. These matters may involve claims for substantial monetary or non-monetary relief. At times, these matters may present novel claims or legal theories. Due to the complex nature 
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 of these various other matters, it may be years before some matters are resolved. While it is impossible to ascertain the ultimate resolution or range of financial liability, based on information presently known to us, we do not believe there is any matter to which we are a party, or involving any of our properties, that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on our financial condition. We continually monitor and reassess the potential materiality of these litigation matters. We note, however, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution will not exceed established accruals. As a result, the outcome of a particular matter, or a combination of matters, may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period. 
 
 On at least a quarterly basis, we assess our liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that we will incur a loss and the amount of the loss can be reasonably estimated, we record a liability in our consolidated financial statements. These legal accruals may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, we have not accrued a liability for said loss, consistent with applicable accounting guidance. Based on information currently available to us and advice of counsel, we believe that our established accruals are adequate and the liabilities arising from the legal proceedings will not have a material adverse effect on our consolidated financial condition. 
 
 Guarantees 
 
 We are a guarantor in various agreements with third parties. The following table shows the types of guarantees that we had outstanding at June 30, 2026. Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Contingencies and Guarantees” beginning on page 115 of our 2025 Form 10-K. 
 
 June 30, 2026 Maximum Potential Undiscounted Future Payments Liability Recorded 
 Dollars in millions 
 Financial guarantees: 
 Standby letters of credit $ 6,934 $ 72 
 Recourse agreement with FNMA 8,200 62 
 Residential mortgage reserve 3,431 7 
 Written options (a) 
 4,000 35 
 Total $ 22,565 $ 176 
 
 (a) The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees. 
 
 We determine the payment/performance risk associated with each type of guarantee described below based on the probability that we could be required to make the maximum potential undiscounted future payments shown in the preceding table. We use a scale of low ( 0 % to 30 % probability of payment), moderate (greater than 30 % to 70 % probability of payment), or high (greater than 70 % probability of payment) to assess the payment/performance risk, and have determined that the payment/performance risk associated with each type of guarantee outstanding at June 30, 2026, is low. Information pertaining to the nature of each of the guarantees listed below is included in Note 19 (“Commitments, Contingent Liabilities, and Guarantees”) under the heading “Guarantees” beginning on page 166 of our 2025 Form 10-K. 
 
 Standby letters of credit. At June 30, 2026, our standby letters of credit had a remaining weighted-average life of 2.1 years, with remaining actual lives ranging from less than 1 year t o 10.0 years. 
 
 Recourse agreement with FNMA. At June 30, 2026, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 5.5 years, and the unpaid principal balance outstanding of loans sold by us as a participant was $ 25.1 billion. The maximum potential amount of undiscounted future payments that we could be required to make under this program, as shown in the preceding table, is equal to approximately 32.7 % of the principal balance of loans outstanding at June 30, 2026. FNMA delegates responsibility for originating, underwriting, and servicing mortgages, and we assume a limited portion of the risk of loss during the remaining term on each commercial mortgage loan that we sell to FNMA. We maintain a reserve for such potential losses of $ 62 million that we believe approximates the fair value of our liability for the guarantee as described in Note 4 (“Asset Quality”). 
 
 Residential Mortgage Banking. At June 30, 2026, the unpaid principal balance outstanding of loans sold by us in this program was $ 11.4 billion. The maximum potential amount of undiscounted future payments that we could be required to make under this program, as shown in the preceding table, is equal to approximately 30 % of the principal balance of loans outstanding at June 30, 2026. 
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 Our liability for estimated repurchase obligations on loans sold, which is included in “accrued expenses and other liabilities” on the Consolidated Balance Sheets, was $ 7 million at June 30, 2026. For more information on our residential mortgages, see Note 8 (“Mortgage Servicing Assets”). 
 
 Written options. In the ordinary course of business, we “write” put options for clients that wish to mitigate their exposure to changes in interest rates and commodity prices. At June 30, 2026, our written put options had an average life of 1.3 years. These written put options are accounted for as derivatives at fair value, as further discussed in Note 7 (“Derivatives and Hedging Activities”). 
 
 Written put options where the counterparty is a broker-dealer or bank are accounted for as derivatives at fair value but are not considered guarantees since these counterparties typically do not hold the underlying instruments. In addition, we are a purchaser and seller of credit derivatives, which are further discussed in Note 7 (“Derivatives and Hedging Activities”). 
 
 Other Off-Balance Sheet Risk 
 
 Other off-balance sheet risk stems from financial instruments that do not meet the definition of a guarantee as specified in the applicable accounting guidance, and from other relationships. Additional information pertaining to types of other off-balance sheet risk is included in Note 19 (“Commitments, Contingent Liabilities, and Guarantees”) under the heading “Other Off-Balance Sheet Risk” on page 167 of our 2025 Form 10-K. 
 
 15. Accumulated Other Comprehensive Income 
 
 Our changes in AOCI for the three and six months ended June 30, 2026, and June 30, 2025, are as follows: 
 Dollars in millions Unrealized gains (losses) on securities available for sale Unrealized gains (losses) on derivative financial instruments Net pension and postretirement benefit costs Total 
 Balance at March 31, 2026 $ ( 1,888 ) $ ( 98 ) $ ( 235 ) $ ( 2,221 ) 
 Other comprehensive income (loss) before reclassification, net of income taxes ( 51 ) ( 103 ) ( 1 ) ( 155 ) 
 Amounts reclassified from AOCI, net of income taxes (a) 
 — 20 2 22 
 
 Net current-period other comprehensive income (loss), net of income taxes ( 51 ) ( 83 ) 1 ( 133 ) 
 Balance at June 30, 2026 $ ( 1,939 ) $ ( 181 ) $ ( 234 ) $ ( 2,354 ) 
 
 Balance at March 31, 2025 $ ( 2,310 ) $ ( 241 ) $ ( 236 ) $ ( 2,787 ) 
 Other comprehensive income (loss) before reclassification, net of income taxes 152 64 ( 1 ) 215 
 Amounts reclassified from AOCI, net of income taxes (a) 
 — 69 2 71 
 
 Net current-period other comprehensive income (loss), net of income taxes 152 133 1 286 
 Balance at June 30, 2025 $ ( 2,158 ) $ ( 108 ) $ ( 235 ) $ ( 2,501 ) 
 
 Balance at December 31, 2025 $ ( 1,716 ) $ ( 7 ) $ ( 237 ) $ ( 1,960 ) 
 Other comprehensive income (loss) before reclassification, net of income taxes ( 223 ) ( 223 ) — ( 446 ) 
 Amounts reclassified from AOCI, net of income taxes (a) 
 — 49 3 52 
 
 Net current-period other comprehensive income (loss), net of income taxes ( 223 ) ( 174 ) 3 ( 394 ) 
 Balance at June 30, 2026 $ ( 1,939 ) $ ( 181 ) $ ( 234 ) $ ( 2,354 ) 
 
 Balance at December 31, 2024 $ ( 2,734 ) $ ( 434 ) $ ( 302 ) $ ( 3,470 ) 
 Other comprehensive income (loss) before reclassification, net of income taxes 576 186 66 828 
 Amounts reclassified from AOCI, net of income taxes (a) 
 — 140 1 141 
 
 Net current-period other comprehensive income (loss), net of income taxes 576 326 67 969 
 Balance at June 30, 2025 $ ( 2,158 ) $ ( 108 ) $ ( 235 ) $ ( 2,501 ) 
 
 (a) See table below for details about these reclassifications. 
 
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 Our reclassifications out of AOCI for the three and six months ended June 30, 2026, and June 30, 2025, are as follows: 
 
 Three months ended June 30, Affected Line Item in the Consolidated Statement of Income 
 Dollars in millions 2026 2025 
 
 Unrealized gains (losses) on derivative financial instruments 
 Interest rate $ ( 28 ) $ ( 90 ) Interest income — Loans 
 Interest rate — ( 1 ) Interest expense — Long-term debt 
 Interest rate 1 — Investment banking and debt placement fees 
 
 ( 27 ) ( 91 ) Income (loss) from continuing operations before income taxes 
 ( 7 ) ( 22 ) Income taxes 
 $ ( 20 ) $ ( 69 ) Income (loss) from continuing operations 
 Net pension and postretirement benefit costs 
 Amortization of losses $ ( 3 ) $ ( 2 ) Other expense 
 
 Amortization of unrecognized prior service credit 1 — Other expense 
 ( 2 ) ( 2 ) Income (loss) from continuing operations before income taxes 
 — — Income taxes 
 $ ( 2 ) $ ( 2 ) Income (loss) from continuing operations 
 
 Six months ended June 30, Affected Line Item in the Consolidated Statement of Income 
 Dollars in millions 2026 2025 
 
 Unrealized gains (losses) on derivative financial instruments 
 Interest rate $ ( 64 ) $ ( 183 ) Interest income — Loans 
 Interest rate ( 1 ) ( 2 ) Interest expense — Long-term debt 
 Interest rate 1 — Investment banking and debt placement fees 
 ( 64 ) ( 185 ) Income (loss) from continuing operations before income taxes 
 ( 15 ) ( 45 ) Income taxes 
 $ ( 49 ) $ ( 140 ) Income (loss) from continuing operations 
 Net pension and postretirement benefit costs 
 Amortization of losses $ ( 5 ) $ ( 3 ) Other expense 
 
 Amortization of unrecognized prior service credit 1 1 Other expense 
 ( 4 ) ( 2 ) Income (loss) from continuing operations before income taxes 
 ( 1 ) ( 1 ) Income taxes 
 $ ( 3 ) $ ( 1 ) Income (loss) from continuing operations 
 
 16. Shareholders' Equity 
 
 Comprehensive Capital Plan 
 
 On May 13, 2026, our Board of Directors authorized a new share repurchase program pursuant to which KeyCorp may purchase up to $ 3.0 billion of KeyCorp common shares, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 plans and other programs, at the discretion of management and on terms that management deems to be advisable. The new repurchase authorization replaced KeyCorp’s previous $ 1.0 billion share repurchase authorization. 
 
 As contemplated by the Investment Agreement, dated as of August 12, 2024, between KeyCorp and Scotiabank, in February 2025, we entered into an agreement with Scotiabank to permit Scotiabank to participate, through a periodic “true-up” right, in any repurchase by KeyCorp of its common stock on a pro rata basis. During the second quarter of 2026, Key completed $ 341 million, or approximately 16 million shares, in share repurchases including $ 49 million, or approximately 2 million shares, from Scotiabank pursuant to our repurchase agreement described above. We also repurchased $ 1 million of shares related to equity compensation programs in the second quarter of 2026. 
 
 Consistent with our capital plan, the Board declared a quarterly dividend of $ .205 per Common Share for the second quarter of 2026. 
 
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 Preferred Stock 
 
 The following table summarizes our preferred stock at June 30, 2026. 
 
 Preferred stock series Amount outstanding (in millions) Book value (net of capital surplus) Shares authorized and outstanding Par value Liquidation preference Ownership interest per depositary share Liquidation preference per depositary share Second quarter 2026 dividends paid per depositary share 
 5.000 % Fixed-to-Floating Rate Perpetual Noncumulative Series D 
 $ 525 $ 519 21,000 $ 1 $ 25,000 1/25th $ 1,000 $ 12.50 
 6.125 % Fixed-to-Floating Rate Perpetual Noncumulative Series E 
 500 490 500,000 1 1,000 1/40th 25 .382813 
 5.650 % Fixed Rate Perpetual Noncumulative Series F 
 425 412 425,000 1 1,000 1/40th 25 .353125 
 5.625 % Fixed Rate Perpetual Non-Cumulative Series G 
 450 435 450,000 1 1,000 1/40th 25 .351563 
 6.200 % Fixed Rate Reset Perpetual Non-Cumulative Series H 
 600 590 600,000 1 1,000 1/40th 25 .387500 

 17. Business Segment Reporting 
 
 The following is a description of the segments and their primary businesses at June 30, 2026. 
 
 Consumer Bank 
 
 The Consumer Bank serves individuals and small businesses throughout our 15 state branch footprint as well as healthcare professionals nationally through our digital channel by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, mortgage and home equity, student loan refinancing, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist institutional, non-profit, and high-net-worth clients with their banking, trust, portfolio management, charitable giving, and related needs. 
 
 Commercial Bank 
 
 The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate bank focused principally on serving the borrowing, cash management, and capital markets needs of middle market clients within Key’s 15 state branch footprint. The Institutional operating segment operates nationally, providing lending, equipment financing, and banking products and services to large corporate and institutional clients. The industry coverage and product teams have established expertise in the following sectors: Consumer, Energy, Healthcare, Industrial, Public Sector, Real Estate, and Technology. It is also a significant, national, commercial real estate lender and third-party master and special servicer of commercial mortgage loans. The operating segment also includes the KBCM platform which provides a broad suite of capital markets products and services including syndicated finance, debt and equity underwriting, fixed income and equity sales and trading, derivatives, foreign exchange, mergers & acquisition and other advisory, and public finance. 
 
 Other 
 
 Other includes various corporate treasury activities such as management of our investment securities portfolio, long-term debt, short-term liquidity and funding activities, and balance sheet risk management, our principal investing unit, and various exit portfolios as well as reconciling items, which primarily represent the unallocated portion of nonearning assets of corporate support functions. 
 
 We use an internal FTP framework to measure the performance of its operating segments. Under this framework, business segments receive funding credits for liabilities generated and incur funding charges for assets held, based on market‑based funding assumptions, in order to isolate business operating performance from interest rate risk. 
 
 Interest rate risk is managed centrally. Because differences exist in the timing and repricing characteristics of assets and liabilities across the balance sheet, a residual impact from centrally managed interest rate risk is not allocated to the operating segments and is reflected within the Other segment. 
 
 Effective January 1, 2026, we revised our segment reporting presentation to reflect this residual impact within the Other segment. Previously, these residual amounts were included in net interest income for the Consumer and 
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 Commercial Bank segments. This change aligns segment reporting with how management evaluates performance and manages interest rate risk on a centralized basis and affects only the presentation of segment results. Prior period segment results have been recast to reflect this change in segment reporting presentation. There was no impact on the Company’s consolidated financial statements for any period presented. 
 
 Developing and applying the methodologies that we use to allocate items among our lines of business is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocation drivers, changes in the risk profile of a particular business, or changes in our organizational structure. 
 
 The table below shows selected financial data for our business segments for the three- and six-month periods ended June 30, 2026, and June 30, 2025. Capital is assigned to each business segment based on a combination of regulatory and economic equity. 
 
 Three months ended June 30, Consumer Bank Commercial Bank Other Total Key 
 Dollars in millions 2026 2025 2026 2025 2026 2025 2026 2025 
 SUMMARY OF OPERATIONS 
 Net interest income (TE) $ 757 $ 731 $ 697 $ 649 $ ( 196 ) $ ( 230 ) $ 1,258 $ 1,150 
 Noninterest income 253 235 411 425 42 30 706 690 
 Total revenue (TE) (a) 
 1,010 966 1,108 1,074 ( 154 ) ( 200 ) 1,964 1,840 
 Provision for credit losses 26 55 67 84 ( 1 ) ( 1 ) 92 138 
 Personnel expense 239 222 203 179 344 304 786 705 
 Other direct noninterest expense 138 140 75 69 218 240 431 449 
 Support and overhead 339 331 225 203 ( 564 ) ( 534 ) — — 
 Income (loss) from continuing operations before income taxes (TE) 
 268 218 538 539 ( 151 ) ( 209 ) 655 548 
 Allocated income taxes and TE adjustments 
 65 53 115 116 ( 33 ) ( 44 ) 147 125 
 Income (loss) from continuing operations 203 165 423 423 ( 118 ) ( 165 ) 508 423 
 Income (loss) from discontinued operations, net of taxes 
 — — — — 1 2 1 2 
 Net income (loss) $ 203 $ 165 $ 423 $ 423 $ ( 117 ) $ ( 163 ) $ 509 $ 425 
 
 AVERAGE BALANCES (b) 
 
 Loans and leases $ 33,263 $ 36,138 $ 76,238 $ 69,089 $ 571 $ 488 $ 110,072 $ 105,715 
 Total assets (a) 
 36,630 39,156 85,793 78,624 65,877 69,019 188,300 186,800 
 Deposits 87,399 88,002 58,895 55,927 1,283 3,517 147,577 147,446 
 
 (a) Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States. 
 (b) From continuing operations. 
 
 Six months ended June 30, Consumer Bank Commercial Bank Other Total Key 
 Dollars in millions 2026 2025 2026 2025 2026 2025 2026 2025 
 SUMMARY OF OPERATIONS 
 Net interest income (TE) $ 1,495 $ 1,437 $ 1,371 $ 1,288 $ ( 378 ) $ ( 470 ) $ 2,488 $ 2,255 
 Noninterest income 492 460 856 835 81 63 1,429 1,358 
 Total revenue (TE) (a) 
 1,987 1,897 2,227 2,123 ( 297 ) ( 407 ) 3,917 3,613 
 Provision for credit losses 66 97 137 159 ( 5 ) — 198 256 
 Personnel expense 471 440 398 368 660 577 1,529 1,385 
 Other direct noninterest expense 271 283 141 146 457 471 869 900 
 Support and overhead 682 645 437 402 ( 1,119 ) ( 1,047 ) — — 
 Income (loss) from continuing operations before income taxes (TE) 
 497 432 1,114 1,048 ( 290 ) ( 408 ) 1,321 1,072 
 Allocated income taxes and TE adjustments 
 120 105 239 225 ( 68 ) ( 87 ) 291 243 
 Income (loss) from continuing operations 377 327 875 823 ( 222 ) ( 321 ) 1,030 829 
 Income (loss) from discontinued operations, net of taxes 
 — — — — 1 1 1 1 
 Net income (loss) 377 327 875 823 ( 221 ) ( 320 ) 1,031 830 
 
 AVERAGE BALANCES (b) 
 
 Loans and leases $ 33,630 $ 36,476 $ 74,692 $ 68,077 $ 589 $ 486 $ 108,911 $ 105,039 
 Total assets (a) 
 36,984 39,479 84,133 77,725 66,163 69,242 187,280 186,446 
 Deposits 87,598 88,153 58,912 56,657 929 3,180 147,438 147,990 
 
 (a) Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States. 
 (b) From continuing operations. 
 
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 18. Revenue from Contracts with Customers 
 
 The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three- and six-month periods ended June 30, 2026, and June 30, 2025. The development and application of the methodologies that we use to allocate items among our business segments is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocations drivers, changes in the risk profile of a particular business, or changes in our organizational structure. 
 
 Three months ended June 30, 2026 Three months ended June 30, 2025 
 Dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue 
 NONINTEREST INCOME 
 Trust and investment services income $ 135 $ 19 $ 154 $ 118 $ 18 $ 136 
 Investment banking and debt placement fees — 123 123 — 130 130 
 Service charges on deposit accounts 33 44 77 35 38 73 
 
 Cards and payments income 44 48 92 44 40 84 
 
 Other noninterest income 3 — 3 2 — 2 
 Total revenue from contracts with customers $ 215 $ 234 $ 449 $ 199 $ 226 $ 425 
 
 Other noninterest income (a) 
 $ 215 $ 235 
 Noninterest income from other segments (b) 
 42 30 
 
 Total noninterest income $ 706 $ 690 
 
 (a) Noninterest income considered earned outside the scope of contracts with customers. 
 (b) Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 17 (“Business Segment Reporting”) for more information. 
 
 Six months ended June 30, 2026 Six months ended June 30, 2025 
 Dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue 
 NONINTEREST INCOME 
 Trust and investment services income $ 264 $ 38 $ 302 $ 231 $ 37 $ 268 
 Investment banking and debt placement fees — 275 275 — 258 258 
 Service charges on deposit accounts 67 87 154 68 74 142 
 
 Cards and payments income 85 90 175 86 80 166 
 
 Other noninterest income 5 — 5 4 — 4 
 Total revenue from contracts with customers $ 421 $ 490 $ 911 $ 389 $ 449 $ 838 
 
 Other noninterest income (a) 
 $ 437 $ 457 
 Noninterest income from other segments (b) 
 81 63 
 Total noninterest income $ 1,429 $ 1,358 
 
 (a) Noninterest income considered earned outside the scope of contracts with customers. 
 (b) Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 17 (“Business Segment Reporting”) for more information. 
 
 We had no material contract assets or contract liabilities as of June 30, 2026 and June 30, 2025. 
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 Report of Independent Registered Public Accounting Firm 
 
 To the Shareholders and Board of Directors of KeyCorp 
 
 Results of Review of Interim Financial Statements 
 
 We have reviewed the accompanying consolidated balance sheet of KeyCorp as of June 30, 2026, the related consolidated statements of income, comprehensive income, changes in equity for the three- and six-month periods ended June 30, 2026 and 2025, the consolidated statements of cash flows for the six-month periods ended June 30, 2026 and 2025, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles. 
 
 We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of KeyCorp as of December 31, 2025, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated February 23, 2026, except for Note 23 and Note 25, as to which the date is June 3, 2026, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2025, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. 
 
 Basis for Review Results 
 
 These financial statements are the responsibility of KeyCorp's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to KeyCorp in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. 
 
 Cleveland, Ohio 
 August 4, 2026 

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 Item 3. Quantitative and Qualitative Disclosure about Market Risk 
 
 The information presented in the “Market risk management” section of the Management’s Discussion & Analysis of Financial Condition & Results of Operations is incorporated herein by reference. 
 
 Item 4. Controls and Procedures 
 
 As of the end of the period covered by this report, KeyCorp carried out an evaluation, under the supervision and with the participation of KeyCorp’s management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of KeyCorp’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)), to ensure that information required to be disclosed by KeyCorp in reports that it files or submits under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to KeyCorp’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. Based upon that evaluation, KeyCorp’s Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective, in all material respects, as of the end of the period covered by this report. No changes were made to KeyCorp’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the last quarter that materially affected, or are reasonably likely to materially affect, KeyCorp’s internal control over financial reporting. 
 
 PART II. OTHER INFORMATION 
 
 Item 1. Legal Proceedings 
 
 The information presented in the Legal Proceedings section of Note 14 (“Contingent Liabilities and Guarantees”) of the Notes to Consolidated Financial Statements (Unaudited) is incorporated herein by reference. 
 
 Item 1A. Risk Factors 
 
 For a discussion of certain risk factors affecting us, see the section titled “Supervision and Regulation” in Part I, Item 1. Business, on pages 11-24 of our 2025 Form 10-K; Part I, Item 1A. Risk Factors, on pages 25-43 of our 2025 Form 10-K; the section titled “Supervision and regulation” in this report; and our disclosure regarding forward-looking statements in this report. 
 
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 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 
 
 From time to time, KeyCorp or its principal subsidiary, KeyBank, may seek to retire, repurchase, or exchange outstanding debt of KeyCorp or KeyBank, and capital securities or preferred stock of KeyCorp, through cash purchase, privately negotiated transactions, or otherwise. Such transactions, if any, depend on prevailing market conditions, our liquidity and capital requirements, contractual restrictions, and other factors. The amounts involved may be material. 
 
 On May 13, 2026, our Board of Directors authorized a new share repurchase program pursuant to which KeyCorp may purchase up to $3.0 billion of KeyCorp common shares, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 plans and other programs, at the discretion of management and on terms that management deems to be advisable. The new repurchase authorization replaced KeyCorp’s previous $1.0 billion share repurchase authorization. The timing and price of repurchases as well as the actual number of shares repurchased under the new program will depend on a variety of factors, including general market conditions, the stock price, regulatory requirements and limitations, corporate liquidity requirements and priorities, and other factors. During the second quarter of 2026, Key adopted a Rule 10b5-1 trading arrangement to facilitate repurchases of its common stock under its share repurchase authorization. 
 
 As contemplated by the Investment Agreement, dated as of August 12, 2024, between KeyCorp and Scotiabank, in February 2025, we entered into an agreement with Scotiabank to permit Scotiabank to participate, through a periodic “true-up” right, in any repurchase by KeyCorp of its common stock on a pro rata basis. 
 
 During the second quarter of 2026, Key completed $341 million, or approximately 16 million shares, in share repurchases including $49 million, or approximately 2 million shares, from Scotiabank pursuant to our repurchase agreement described above. We also repurchased $1 million of shares related to equity compensation programs in the second quarter of 2026. 
 
 The following table summarizes our repurchases of our Common Shares for the three months ended June 30, 2026. Refer to Note 16 (“Shareholders' Equity”) for more information regarding share repurchases made during the three and six months ended June 30, 2026. 
 
 Calendar month Total number of shares
purchased (a) 
 Average price paid
per share Total number of shares purchased as part of publicly announced plans or programs Dollar value of shares that may yet be purchased as part of publicly
announced plans or programs 
 April 1 - 30 2,837,030 $ 21.99 2,833,620 $ 347,951,620 
 May 1 - 31 5,206,374 21.53 5,204,729 2,944,398,442 
 June 1 - 30 7,493,776 22.22 7,492,968 2,777,926,421 
 Total 15,537,180 $ 21.95 15,531,317 
 
 (a) Includes Common Shares deemed surrendered by employees in connection with our stock compensation and benefit plans to satisfy tax obligations. 
 
 Item 5. Other Information 
 
 No director or officer (as defined in Rule 16a-1(f) of the Exchange Act) of KeyCorp adopted , modified, 
 or terminated any Rule 10b5-1 trading arrangement or any non-Rule 10b5-1 trading arrangement (as such terms 
 are defined in Item 408 of Regulation S-K of the Exchange Act) during the quarter ended June 30, 2026, 
 except as may be noted below. We do not permit the use of Rule 10b5-1 trading arrangements by our directors or 
 executive officers. 
 
 Certain of our directors or officers have made elections to participate in, and are participating in, our KeyCorp 
 Second Amended and Restated Discounted Stock Purchase Plan, our Long-Term Incentive Deferral Plan, our 
 Directors’ Deferred Share Sub-Plan, and the Dividend Reinvestment Plan and dividend reinvestment features under 
 various compensation plans and arrangements, and previously made elections to participate in KeyCorp common 
 stock funds that are now frozen but were previously available as an investment option under our Deferred Savings 
 Plan and KeyCorp 401(k) plan. By participating in these plans or stock funds, the directors or officers have made, 
 and/or may from time to time make, elections involving transactions in KeyCorp Common Shares which may be 
 designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute 
 non-Rule 10b5-1 trading arrangements (as such term is defined in Item 408(c) of Regulation S-K of the Exchange 
 Act). 
 
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 Item 6. Exhibits 
 
 10.1 
 KeyCorp 2026 Equity Compensation Plan, filed as Exhibit 10.1 to Form 8-K on May 14, 2026. # &#x5E; 
 
 10.2 
 Form of Restricted Share Unit Award Agreement (New Hire/Retention) (2026 Equity Compensation Plan), filed as Exhibit 10.2 to Form 8-K on May 14, 2026. # &#x5E; 
 
 15 
 Acknowledgment of Independent Registered Public Accounting Firm. 
 
 22 
 Subsidiary Issuers of Guaranteed Securities, filed as Exhibit 22 to Form 10-K for the year ended December 31, 2025. &#x5E; 
 
 31.1 
 Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 
 
 31.2 
 Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 
 
 32.1 
 Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* 
 
 32.2 
 Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* 
 
 101 The following materials from KeyCorp’s Form 10-Q Report for the quarterly period ended June 30, 2026, formatted in inline XBRL: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income; (iii) the Consolidated Statements of Changes in Equity; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements. 
 104 The cover page from KeyCorp’s Form 10-Q for the quarterly period ended June 30, 2026, formatted in inline XBRL (contained in Exhibit 101). 

 * 
 Furnished herewith. 
 # Management contract or compensatory plan or arrangement. 
 &#x5E; Incorporated by reference. A copy of this Exhibit has been filed with the SEC. Exhibits that are not incorporated by reference are furnished or filed with this report. Shareholders may obtain a copy of any exhibit, upon payment of reproduction costs, by writing KeyCorp Investor Relations, 127 Public Square, Cleveland, OH 44114-1306. 

 Information Available on Website 
 
 KeyCorp makes available free of charge on its website, www.key.com , its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports as soon as reasonably practicable after KeyCorp electronically files such material with, or furnishes it to, the SEC. We also make available a summary of filings made with the SEC of statements of beneficial ownership of our equity securities filed by our directors and officers and persons who own 10% or more of a registered class of our equity securities under Section 16 of the Exchange Act. Information contained on or accessible through our website or any other website referenced in this report is not part of this report. 
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 SIGNATURE 
 
 Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the date indicated. 
 
 KEYCORP 
 (Registrant) 
 
 August 4, 2026 /s/ Stacy L. Gilbert 
 By: Stacy L. Gilbert 
 Chief Accounting Officer 
 (Principal Accounting Officer) 
 
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
KEYCORP /NEW/ 10-Q
