KEYCORP REPORTS THIRD QUARTER 2026 NET INCOME OF $537 MILLION, OR $0.51 PER DILUTED COMMON SHARE; DILUTED EPS INCREASED 24% YEAR-OVER-YEAR

KeyCorp (NYSE: KEY) announced third quarter of 2026 net income from continuing operations attributable to Key common shareholders of $537 million, or $0.51 per diluted common share. For the second quarter of 2026, net income from continuing operations attributable to Key common shareholders was $472 million, or $0.44 per diluted common share. For the third quarter of 2025, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $454 million, or $0.41 per diluted common share, or adjusted net income of $450 million, or $0.41 per diluted common share(b). The third quarter of 2025 included a $4 million after-tax benefit related to the updated FDIC special assessment(c).Comments from Chairman and CEO, Chris Gorman"Our third quarter results reflect the strength of Key's relationship-driven franchise, the disciplined execution of our strategy, and the momentum we are building across the business. We delivered record revenue and record pre-provision net revenue(b), while generating a return on tangible common equity exceeding 15%(b). These results reinforce our confidence in achieving and sustaining a return on tangible common equity of 15%+ by the end of 2027.Our performance this quarter demonstrates the power of our balanced business model. Average deposit balances increased $3.6 billion sequentially, supporting continued net interest margin expansion. Our capital markets team delivered strong results with investment banking and debt placement fees increasing 27% sequentially. Concurrently, we maintained our disciplined approach to risk management, evidenced by broad-based improvement in credit quality metrics, including lower net charge-offs and nonperforming assets.Client engagement remains strong, supported by a constructive economic environment and continued confidence among the businesses and communities we serve. We continue to see opportunities to deepen client relationships, capture additional share of wallet, and drive sustainable growth across the franchise. Key is well positioned to perform across a broad range of economic scenarios, supported by our solid capital levels, strong liquidity profile, and well-diversified business mix. The ongoing investments we have made in teammates and technology are translating into stronger performance today while concurrently positioning us for greater value in the future. Looking ahead, we remain focused on executing with discipline, capturing the significant organic growth opportunities across our franchise, and delivering significant value for all our stakeholders." (a) September 30, 2026 ratio is estimated. (b) The table entitled"GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. (c) See table on page 24 for more information on Selected Items Impact on Earnings. Selected Financial Highlights Dollars in millions, except per share data Change 3Q26 vs. 3Q26 2Q26 3Q25 2Q26 3Q25 Income (loss) from continuing operations attributable to Key common shareholders $ 537 $ 472 $ 454 13.8 % 18.3 % Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution 0.51 0.44 0.41 15.9 24.4 Book value at period end 15.01 16.19 15.86 (7.3) (5.4) Return on average tangible common equity from continuing operations (a) 15.11 % 12.89 % 12.51 % 222 bps 260 bps Return on average total assets from continuing operations 1.21 1.08 1.04 13 17 Common Equity Tier 1 ratio (b) 11.1 11.2 11.8 (10) (70) Net interest margin (TE) from continuing operations 2.95 2.89 2.75 6 20 (a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. (b) September 30, 2026 ratio is estimated. TE = Taxable-equivalent INCOME STATEMENT HIGHLIGHTS Revenue Dollars in millions Change 3Q26 vs. 3Q26 2Q26 3Q25 2Q26 3Q25 Net interest income $ 1,300 $ 1,250 $ 1,184 4.0 % 9.8 % Noninterest income 744 706 702 5.4 6.0 Total revenue 2,044 1,956 1,886 4.5 % 8.4 % Taxable-equivalent adjustment 8 8 9 0.0 % (11.1) % Total revenue (TE) (a) $ 2,052 $ 1,964 $ 1,895 4.5 % 8.3 % Net interest income (TE) (a) $ 1,308 $ 1,258 $ 1,193 4.0 % 9.6 % (a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. TE = Taxable-equivalent Taxable-equivalent net interest income was $1.31 billion for the third quarter of 2026 and the net interest margin was 2.95%. Compared to the third quarter of 2025, net interest income increased by $115 million, and the net interest margin increased by 20 basis points. These increases reflect 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, an expanding balance sheet, and a continued strategic shift towards higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on repricing earning assets.Compared to the second quarter of 2026, taxable-equivalent net interest income increased by $50 million, and the net interest margin increased by 6 basis points. These increases reflect growth in commercial and industrial loans and higher deposit balances, the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher-yielding investments, and the impact of higher interest rates on repricing earning assets. Additionally, net interest income benefited from one additional day in the third quarter of 2026 compared to the second quarter of 2026. Noninterest Income Dollars in millions Change 3Q26 vs. 3Q26 2Q26 3Q25 2Q26 3Q25 Investment banking and debt placement fees $ 214 $ 169 $ 184 26.6 % 16.3 % Trust and investment services income 165 159 150 3.8 10.0 Cards and payments income 93 94 86 (1.1) 8.1 Service charges on deposit accounts 79 77 75 2.6 5.3 Corporate services income 72 80 72 (10.0) — Commercial mortgage servicing fees 53 49 73 8.2 (27.4) Corporate-owned life insurance income 35 33 35 6.1 — Consumer mortgage income 14 17 14 (17.6) — Operating lease income and other leasing gains 9 10 11 (10.0) (18.2) Other income 9 15 8 (40.0) 12.5 Net securities gains (losses) 1 3 (6) (66.7) N/M Total noninterest income $ 744 $ 706 $ 702 5.4 % 6.0 % N/M = Not Meaningful Compared to the third quarter of 2025, noninterest income increased by $42 million. The increase was driven by a $30 million increase in investment banking and debt placement fees, a $15 million increase in trust and investment services income, and a $7 million increase in cards and payments income. These were partially offset by a $20 million decrease in commercial mortgage servicing fees.Compared to the second quarter of 2026, noninterest income increased by $38 million. The increase was driven by a $45 million increase in investment banking and debt placement fees, and a $6 million increase in trust and investment services income. These were partially offset by an $8 million decrease in corporate services income and a $6 million decrease in other income. Noninterest Expense Dollars in millions Change 3Q26 vs. 3Q26 2Q26 3Q25 2Q26 3Q25 Personnel expense $ 815 $ 786 $ 742 3.7 % 9.8 % Computer processing 116 108 105 7.4 10.5 Net occupancy 67 68 65 (1.5) 3.1 Business services and professional fees 46 46 44 — 4.5 Marketing 23 22 22 4.5 4.5 Equipment 21 22 20 (4.5) 5.0 Operating lease expense 6 7 9 (14.3) (33.3) Other expense 151 158 170 (4.4) (11.2) Total noninterest expense $ 1,245 $ 1,217 $ 1,177 2.3 % 5.8 % Compared to the third quarter of 2025, noninterest expense increased by $68 million. The increase was predominantly driven by a $73 million increase in personnel expense primarily related to continued investments in people, employee benefits, and incentive compensation associated with noninterest income growth. These were partially offset by a $19 million decrease in other expense, despite a $5 million benefit associated with the updated FDIC special assessment in the third quarter of 2025.Compared to the second quarter of 2026, noninterest expense increased by $28 million. The increase was predominantly driven by a $29 million increase in personnel expense, primarily related to incentive compensation and continued investments in people. These were partially offset by a $7 million decrease in other expense.Read More

KEYCORP REPORTS THIRD QUARTER 2026 NET INCOME OF $537 MILLION, OR $0.51 PER DILUTED COMMON SHARE; DILUTED EPS INCREASED 24% YEAR-OVER-YEAR

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