KeyCorp : Reports Fourth Quarter 2013 Net Income of $229 Million, or $.26 per Common Share and Full Year Net Income of $847 Million, or $.93 per Common Share

January 25, 2014 at 02:02 pm

MarketScreener.com By

CLEVELAND, Jan. 23, 2014 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced fourth quarter net income from continuing operations attributable to Key common shareholders of $229 million, or $.26 per common share, compared to $229 million, or $.25 per common share for the third quarter of 2013, and $190 million, or $.20 per common share for the fourth quarter of 2012. During the fourth quarter of 2013, Key incurred $24 million, or $.02 per common share of costs related to both its previously announced efficiency initiative and a pension settlement charge.

For the twelve months ended December 31, 2013, net income from continuing operations attributable to Key common shareholders was $847 million, or $.93 per common share, compared to $813 million, or $.86 per common share for the same period one year ago. During 2013, Key incurred $117 million, or $.08 per common share of costs related to both its efficiency initiative and pension settlement charge.

"2013 was a significant year for Key," said Chairman and Chief Executive Officer Beth Mooney. "We executed our strategy, acquired relationships, successfully invested in our businesses and returned peer-leading capital to shareholders."

"Reflecting the success of our distinctive business model, average loans were up 5% in 2013 compared to the prior year, driven by a 12% increase in commercial, financial and agricultural loans, and our credit quality improved to levels not seen since 2007," Mooney added. "Both commercial and consumer loans grew relative to the full year and fourth quarter of 2012. Fee income benefitted from the investments we have made in several of our businesses. Cards and payments income was up 20% from 2012, and mortgage servicing fees more than doubled. We also had a record year for investment banking and debt placement fees, with five consecutive years of growth. We achieved the goal we set in June 2012, by implementing annualized cost savings of $241 million. With increased cost discipline embedded in our culture, we are poised to drive further improvements in efficiency and productivity."

"We have also maintained our disciplined approach to capital management by investing in our businesses and returning 76% of our net income to our shareholders through dividends and common share repurchases in 2013. At year end our capital remained in the top tier of our peer group, positioning us well for the future," continued Mooney.

FOURTH QUARTER 2013 FINANCIAL RESULTS, from continuing operations

Compared with Fourth Quarter of 2012

Average loans up 3.4% (5% excluding impact of exit portfolios), driven by growth in commercial, financial and agricultural loans; period ending loans up 3.1%
Average deposits up 7.5% due to commercial mortgage servicing acquisition and growth in commercial and consumer deposits
Net interest income (taxable-equivalent) down $18 million, primarily due to yield pressure on new loans and reinvestment yields on securities
Noninterest income up $14 million, reflecting higher principal investing gains and benefits from investments in payments and commercial mortgage servicing
Noninterest expense down $22 million, reflecting successful execution of efficiency initiative
Asset quality improved, with net loan charge-offs to average loans declining from .44% to .27%
Disciplined capital management, with total shareholder payout of 76% of net income attributable to Key common shareholders in 2013, including the repurchase of $474 million of common shares for the year

Compared with Third Quarter of 2013

Average loans up .6%, driven by growth in commercial, financial and agricultural loans; period ending loans up 1.6%
Average deposits up 3.7% due to growth in commercial mortgage escrow deposits and continued client inflows
Net interest income (taxable-equivalent) up $5 million, with growth in average earning assets and lower net interest margin
Noninterest income down $6 million, including decline of $19 million in gains related to leveraged lease terminations
Noninterest expense down $4 million, which included higher efficiency-related charges, a lower pension settlement adjustment and higher expenses from incentives and business services and professional fees
Asset quality remains strong and stable with net loan charge-offs to average loans of .27%
Disciplined capital management, repurchasing $99 million of common shares during the fourth quarter of 2013 and maintaining top tier capital position with Tier 1 common equity of 11.23%

Selected Financial Highlights

dollars in millions, except per share data										Change 4Q13 vs.
		4Q13			3Q13			4Q12		3Q13		4Q12
Income (loss) from continuing operations attributable to Key common shareholders	$	229		$	229		$	190		-		20.5	%
Income (loss) from continuing operations attributable to Key common shareholders per common share - assuming dilution		.26			.25			.20		4.0	%	30.0
Return on average total assets from continuing operations		1.08	%		1.12	%		.96	%	N/A		N/A
Tier 1 common equity (a)		11.23			11.17			11.36		N/A		N/A
Book value at period end	$	11.25		$	11.05		$	10.78		1.8	%	4.4	%
Net interest margin (TE) from continuing operations		3.01	%		3.11	%		3.37	%	N/A		N/A


(a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "Tier 1 common equity." 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, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS

Revenue

dollars in millions								Change 4Q13 vs.
			4Q13		3Q13		4Q12	3Q13		4Q12
Net interest income (TE)		$	589	$	584	$	607	.9	%	(3.0)	%
Noninterest income			453		459		439	(1.3)		3.2
	Total revenue	$	1,042	$	1,043	$	1,046	(.1)	%	(.4)	%


TE = Taxable Equivalent

Taxable-equivalent net interest income was $589 million for the fourth quarter of 2013, and the net interest margin was 3.01%. These results compare to taxable-equivalent net interest income of $607 million and a net interest margin of 3.37% for the fourth quarter of 2012. The decrease in net interest income and net interest margin is attributable to the impact of lower interest rates on asset yields combined with a significant increase in liquidity levels resulting from strong deposit inflows. The decreases were partially offset by the maturity of higher-rate certificates of deposit and a more favorable mix of lower-cost deposits.

Compared to the third quarter of 2013, taxable-equivalent net interest income increased by $5 million, and the net interest margin declined by 10 basis points. The increase in net interest income was primarily due to $5 million less of amortized lease origination costs recognized in the fourth quarter of 2013 compared to the third quarter of 2013 in connection with the early termination of leveraged leases. The decrease in the net interest margin was largely attributable to higher levels of liquidity, which were deployed in lower-yielding short-term investments.

Noninterest Income

dollars in millions								Change 4Q13 vs.
			4Q13		3Q13		4Q12	3Q13		4Q12
Trust and investment services income		$	98	$	100	$	95	(2.0)	%	3.2	%
Investment banking and debt placement fees			84		86		110	(2.3)		(23.6)
Service charges on deposit accounts			68		73		75	(6.8)		(9.3)
Operating lease income and other leasing gains			23		43		19	(46.5)		21.1
Corporate services income			40		44		41	(9.1)		(2.4)
Cards and payments income			40		43		38	(7.0)		5.3
Corporate-owned life insurance income			33		26		36	26.9		(8.3)
Consumer mortgage income			3		3		11	-		(72.7)
Mortgage servicing fees			22		15		7	46.7		214.3
Net gains (losses) from principal investing			20		17		2	17.6		900.0
Other income			22		9		5	144.4		340.0
	Total noninterest income	$	453	$	459	$	439	(1.3)	%	3.2	%

Key's noninterest income was $453 million for the fourth quarter of 2013, compared to $439 million for the year-ago quarter. The fourth quarter reflects the benefits from Key's recent investments in payments and commercial mortgage servicing, with cards and payments income up $2 million and mortgage servicing fees up $15 million. In addition, net gains from principal investing increased $18 million. These increases were partially offset by decreases in investment banking and debt placement fees of $26 million and consumer mortgage income of $8 million.

Compared to the third quarter of 2013, noninterest income decreased by $6 million. Operating lease income and other leasing gains decreased $20 million primarily due to a $19 million decrease in gains on the early termination of leveraged leases. This decrease was partially offset by increases in other income of $13 million and mortgage servicing fees of $7 million primarily due to higher special servicing fees.

Noninterest Expense

dollars in millions								Change 4Q13 vs.
			4Q13		3Q13		4Q12	3Q13		4Q12
Personnel expense		$	398	$	414	$	422	(3.9)	%	(5.7)	%
Nonpersonnel expense			314		302		312	4.0		.6
	Total noninterest expense	$	712	$	716	$	734	(.6)	%	(3.0)	%

Key's noninterest expense was $712 million for the fourth quarter of 2013, compared to $734 million for the same period last year. Excluding the $22 million in expenses related to Key's efficiency initiative and the pension settlement charge of $2 million in the fourth quarter of 2013 and the $16 million in efficiency initiative expenses one year ago, noninterest expense was down $30 million from the prior year. Personnel expense decreased $24 million, due to the realization of expense efficiencies. Nonpersonnel expense increased $2 million. The provision (credit) for losses on lending-related commitments increased $11 million, offset by a $12 million decrease in business services and professional fees.

Compared to the third quarter of 2013, noninterest expense decreased by $4 million. The reduction in expenses reflected $17 million in lower expenses related to Key's efficiency initiative and pension settlement charges. This reduction was partially offset by increases in incentive compensation of $6 million and business services and professional fees of $5 million.

BALANCE SHEET HIGHLIGHTS

As of December 31, 2013, Key had total assets of $92.9 billion compared to $90.7 billion at September 30, 2013, and $89.2 billion at December 31, 2012.

Average Loans

dollars in millions								Change 12-31-13 vs.
		12-31-13		9-30-13		12-31-12		9-30-13			12-31-12
Commercial, financial and agricultural (a)		$	24,218	$	23,864	$	22,436		1.5	%		7.9	%
Other commercial loans			13,266		13,281		13,494		(.1)			(1.7)
Total home equity loans			10,653		10,611		10,218		.4			4.3
Other consumer loans			5,471		5,515		5,711		(.8)			(4.2)
	Total loans	$	53,608	$	53,271	$	51,859		.6	%		3.4	%

(a) Commercial, financial and agricultural average balance for the three months ended December 31, 2013, September 30, 2013, and December 31, 2012, includes $97 million, $96 million, and $90 million, respectively, of assets from commercial credit cards.

Average loans were $53.6 billion for the fourth quarter of 2013, an increase of $1.7 billion compared to the fourth quarter of 2012. Total commercial loans increased $1.6 billion, mostly due to commercial, financial and agricultural loan growth across Key's business lending segments, which was modestly offset by leveraged lease terminations occurring in 2013. Consumer loans grew modestly, as growth in Key's home equity portfolio was partially offset by exit portfolio run-off.

Compared to the third quarter of 2013, average loans increased by $337 million. The loan growth occurred primarily in commercial lending within our commercial, financial and agricultural and commercial mortgage portfolios. Much of the growth occurred toward the latter part of the fourth quarter, resulting in a larger increase in period end loans than average loans. Consumer loans remained relatively unchanged for the fourth quarter.

Average Deposits

dollars in millions												Change 12-31-13 vs.
		12-31-13			9-30-13			12-31-12			9-30-13			12-31-12
Non-time deposits (a)		$	61,394		$	58,620		$	55,355			4.7	%		10.9	%
Certificates of deposits ($100,000 or more)			2,649			2,785			2,992			(4.9)			(11.5)
Other time deposits			3,736			3,957			4,714			(5.6)			(20.7)
	Total deposits	$	67,779		$	65,362		$	63,061			3.7	%		7.5	%

Cost of total deposits (a)			.20	%		.22	%		.31	%		N/A			N/A


(a) Excludes deposits in foreign office.

N/A = Not Applicable

Average deposits, excluding deposits in foreign office, totaled $67.8 billion for the fourth quarter of 2013, an increase of $4.7 billion compared to the year-ago quarter. The growth was driven by corporate clients and the addition of escrow demand deposits from the commercial mortgage servicing acquisition completed earlier in 2013. Demand deposits were up $3.2 billion, and interest-bearing non-time deposits were up $2.9 billion. This deposit growth was partially offset by $1.3 billion of run-off of certificates of deposit and other time deposits.

Compared to the third quarter of 2013, average deposits, excluding deposits in foreign office, increased by $2.4 billion. Demand deposits increased by $1.7 billion mostly due to average escrow deposits and interest-bearing non-time deposits growth of $1.1 billion associated with deposits from business and public sector clients. This growth was partially offset by run-off in certificates of deposit.

ASSET QUALITY

dollars in millions										Change 4Q13 vs.
		4Q13			3Q13			4Q12		3Q13		4Q12
Net loan charge-offs	$	37		$	37		$	58		-		(36.2)	%
Net loan charge-offs to average total loans		.27	%		.28	%		.44	%	N/A		N/A
Nonperforming loans at period end (a)	$	508		$	541		$	674		(6.1)	%	(24.6)
Nonperforming assets at period end		531			579			735		(8.3)		(27.8)
Allowance for loan and lease losses		848			868			888		(2.3)		(4.5)
Allowance for loan and lease losses to nonperforming loans		166.9	%		160.4	%		131.8	%	N/A		N/A
Provision (credit) for loan and lease losses	$	19		$	28		$	57		(32.1)	%	(66.7)	%


(a) December 31, 2013, September 30, 2013, and December 31, 2012 amounts exclude $16 million, $18 million, and $23 million, respectively, of purchased credit impaired loans acquired in July 2012.

N/A = Not Applicable

Key's provision for loan and lease losses was $19 million for the fourth quarter of 2013, compared to $28 million for the third quarter of 2013 and $57 million for the year-ago quarter. Key's allowance for loan and lease losses was $848 million, or 1.56% of total period-end loans at December 31, 2013, compared to 1.62% at September 30, 2013, and 1.68% at December 31, 2012.

Net loan charge-offs for the fourth quarter of 2013 totaled $37 million, or .27% of average total loans. These results compare to $37 million, or .28% for the third quarter of 2013, and $58 million, or .44% for the same period last year.

At December 31, 2013, Key's nonperforming loans totaled $508 million and represented .93% of period-end portfolio loans, compared to 1.01% at September 30, 2013, and 1.28% at December 31, 2012. Nonperforming assets at December 31, 2013 totaled $531 million and represented .97% of period-end portfolio loans and OREO and other nonperforming assets, compared to 1.08% at September 30, 2013, and 1.39% at December 31, 2012.

CAPITAL

Key's estimated risk-based capital ratios included in the following table continued to exceed all "well-capitalized" regulatory benchmarks at December 31, 2013.

Capital Ratios

	12-31-13		9-30-13		12-31-12
Tier 1 common equity (a), (b)	11.23	%	11.17	%	11.36	%
Tier 1 risk-based capital (a)	11.97		11.92		12.15
Total risk based capital (a)	14.34		14.37		15.13
Tangible common equity to tangible assets (b)	9.80		9.93		10.15
Leverage (a)	11.09		11.33		11.41

(a) 12-31-13 ratio is estimated.

(b) 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" and "Tier 1 common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

As shown in the preceding table, at December 31, 2013, Key's estimated Tier 1 common equity and Tier 1 risk-based capital ratios stood at 11.23% and 11.97%, respectively. In addition, the tangible common equity ratio was 9.80% at December 31, 2013.

In July 2013, the Federal banking regulators approved the final Basel III capital framework for U.S. banking organizations (the "Regulatory Capital Rules"). While the Regulatory Capital Rules are effective January 1, 2014, the mandatory compliance date for Key as a "standardized approach" banking organization begins on January 1, 2015, and is subject to transitional provisions extending to January 1, 2019. Key's estimated Tier 1 common equity as calculated under the Regulatory Capital Rules was 10.63% at December 31, 2013. This exceeds the fully phased-in required minimum Tier 1 common equity (including capital conservation buffer) of 7.00%.

Summary of Changes in Common Shares Outstanding

in thousands					Change 4Q13 vs.
		4Q13	3Q13	4Q12	3Q13		4Q12
Shares outstanding at beginning of period		897,821	912,883	936,195	(1.6)	%	(4.1)	%
Common shares repurchased		(7,659)	(16,364)	(10,530)	(53.2)		(27.3)
Shares reissued (returned) under employee benefit plans		562	1,302	104	(56.8)		440.4
	Shares outstanding at end of period	890,724	897,821	925,769	(.8)	%	(3.8)	%

Key completed $474 million of common share repurchases during calendar year 2013, including $99 million of repurchases in the fourth quarter of 2013. Common share repurchases under Key's 2013 CCAR capital plan are expected to be executed through the first quarter of 2014.

LINE OF BUSINESS RESULTS

The following table shows the contribution made by each major business segment to Key's taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.

Major Business Segments

dollars in millions								Change 4Q13 vs.
			4Q13		3Q13		4Q12	3Q13		4Q12
Revenue from continuing operations (TE)
Key Community Bank		$	534	$	551	$	580	(3.1)	%	(7.9)	%
Key Corporate Bank			407		377		402	8.0		1.2
Other Segments			103		114		69	(9.6)		49.3
	Total segments		1,044		1,042		1,051	.2		(.7)
Reconciling Items			(2)		1		(5)	N/M		N/M
	Total	$	1,042	$	1,043	$	1,046	(.1)	%	(.4)	%

Income (loss) from continuing operations attributable to Key
Key Community Bank		$	28	$	54	$	33	(48.1)	%	(15.2)	%
Key Corporate Bank			127		96		115	32.3		10.4
Other Segments			84		92		53	(8.7)		58.5
	Total segments		239		242		201	(1.2)	%	18.9
Reconciling Items			(4)		(7)		(5)	N/M		N/M
	Total	$	235	$	235	$	196	-		19.9	%


TE = Taxable equivalent, N/M = Not Meaningful

Key Community Bank


dollars in millions								Change 4Q13 vs.
			4Q13		3Q13		4Q12	3Q13		4Q12
Summary of operations
Net interest income (TE)		$	350	$	357	$	383	(2.0)	%	(8.6)	%
Noninterest income			184		194		197	(5.2)		(6.6)
	Total revenue (TE)		534		551		580	(3.1)		(7.9)
Provision (credit) for loan and lease losses			33		24		26	37.5		26.9
Noninterest expense			456		441		502	3.4		(9.2)
	Income (loss) before income taxes (TE)		45		86		52	(47.7)		(13.5)
Allocated income taxes (benefit) and TE adjustments			17		32		19	(46.9)		(10.5)
	Net income (loss) attributable to Key	$	28	$	54	$	33	(48.1)	%	(15.2)	%

Average balances
Loans and leases		$	29,596	$	29,495	$	28,629	.3	%	3.4	%
Total assets			31,784		31,679		31,224	.3		1.8
Deposits			50,409		49,652		49,839	1.5		1.1

Assets under management at period end		$	26,664	$	25,574	$	23,638	4.3	%	12.8	%


TE = Taxable Equivalent

Additional Key Community Bank Data

dollars in millions											Change 4Q13 vs.
			4Q13			3Q13			4Q12		3Q13		4Q12
Noninterest income
Trust and investment services income		$	67		$	68		$	66		(1.5)	%	1.5	%
Service charges on deposit accounts			58			61			61		(4.9)		(4.9)
Cards and payments income			37			36			34		2.8		8.8
Other noninterest income			22			29			36		(24.1)		(38.9)
	Total noninterest income	$	184		$	194		$	197		(5.2)	%	(6.6)	%

Average deposit balances
NOW and money market deposit accounts		$	27,438		$	26,564		$	25,697		3.3	%	6.8	%
Savings deposits			2,472			2,510			2,399		(1.5)		3.0
Certificates of deposit ($100,000 or more)			2,124			2,264			2,619		(6.2)		(18.9)
Other time deposits			3,731			3,949			4,702		(5.5)		(20.7)
Deposits in foreign office			285			278			287		2.5		(.7)
Noninterest-bearing deposits			14,359			14,087			14,135		1.9		1.6
	Total deposits	$	50,409		$	49,652		$	49,839		1.5	%	1.1	%

Home equity loans
Average balance		$	10,310		$	10,247		$	9,807
Weighted-average loan-to-value ratio (at date of origination)			71	%		71	%		70	%
Percent first lien positions			58			58			55

Other data
Branches			1,028			1,044			1,088
Automated teller machines			1,335			1,350			1,611

Key Community Bank Summary of Operations

Successfully completed integrations of credit card and Western New York branches
Loan growth of $967 million, or 3.4% from prior year
Core deposits up $2.0 billion, or 4.8% from the prior year

Key Community Bank recorded net income attributable to Key of $28 million for the fourth quarter of 2013, compared to net income attributable to Key of $33 million for the year-ago quarter.

Taxable-equivalent net interest income decreased by $33 million, or 8.6% from the fourth quarter of 2012 due to declines in the deposit spread in the current period as a result of the continued low-rate environment. Average loans and leases grew 3.4% while average deposits increased 1.1% from one year ago.

Noninterest income declined by $13 million, or 6.6% from the year-ago quarter. Consumer mortgage income decreased $8 million, service charges on deposit accounts declined $3 million, and other income declined by $4 million. These decreases were partially offset by increases in cards and payments income of $3 million.

The provision for loan and lease losses increased by $7 million, or 26.9% from the fourth quarter of 2012. Net loan charge-offs increased $20 million from the same period one year ago.

Noninterest expense declined by $46 million, or 9.2 % from the year-ago quarter as a result of Key's efficiency initiative. Personnel expense decreased $15 million primarily due to declines in salaries and employee benefits. Nonpersonnel expense declined $31 million primarily due to declines in business services and professional fees, computer processing, and other support costs.

Key Corporate Bank


dollars in millions								Change 4Q13 vs.
			4Q13		3Q13		4Q12	3Q13		4Q12
Summary of operations
Net interest income (TE)		$	192	$	188	$	195	2.1	%	(1.5)	%
Noninterest income			215		189		207	13.8		3.9
	Total revenue (TE)		407		377		402	8.0		1.2
Provision (credit) for loan and lease losses			(13)		13		11	N/M		N/M
Noninterest expense			225		217		207	3.7		8.7
	Income (loss) before income taxes (TE)		195		147		184	32.7		6.0
Allocated income taxes and TE adjustments			68		51		69	33.3		(1.4)
	Net income (loss) attributable to Key	$	127	$	96	$	115	32.3	%	10.4	%

Average balances
Loans and leases		$	21,013	$	20,586	$	19,481	2.1	%	7.9	%
Loans held for sale			668		422		538	58.3		24.2
Total assets			25,114		24,487		23,450	2.6		7.1
Deposits			17,372		16,125		13,681	7.7		27.0

Assets under management at period end		$	10,241	$	10,536	$	11,106	(2.8)	%	(7.8)	%


TE = Taxable Equivalent, N/M = Not Meaningful

Additional Key Corporate Bank Data

Key Corporate Bank Summary of Operations

Average loan balances up 7.9% from the prior year
Average deposits up 27% from the prior year
Total revenue increased 1.2% from prior year
Investment banking and debt placement fees declined 22.9% from the prior year, but increased 3.1% for the full year

Key Corporate Bank recorded net income attributable to Key of $127 million for the fourth quarter of 2013, compared to $115 million for the same period one year ago.

Taxable-equivalent net interest income decreased by $3 million, or 1.5% compared to the fourth quarter of 2012. Average earning assets increased $1.9 billion, or 9% from the year-ago quarter, driving an $8 million increase in earning asset spread. Average deposit balances increased $3.7 billion, or 27% from the year-ago quarter, driven by the commercial mortgage servicing acquisition and increases in other business flows. However, these increases in balances were offset by declines in the deposit spread as a result of the continued low-rate environment.

Noninterest income increased by $8 million, or 3.9% from the fourth quarter of 2012. Mortgage servicing fees increased $14 million due to higher levels of core servicing fees, special servicing fees, and the impact of the previously announced acquisition of a commercial mortgage servicing portfolio. Other noninterest income increased $21 million mostly driven by gains related to the disposition of certain investments held by the Real Estate Capital line of business. Offsetting these increases was a $25 million decrease in investment banking and debt placement fees from the fourth quarter of 2012 as a result of a business mix shift in Key's real estate business.

The provision for loan and lease losses decreased $24 million compared to the fourth quarter of 2012 due to improved credit quality within the portfolio.

Noninterest expense increased by $18 million, or 8.7% from the fourth quarter of 2012, mostly due to an increase of $14 million in the provision (credit) for losses on lending-related commitments. There was a credit of $2 million in the provision (credit) for losses on lending-related commitments in the fourth quarter of 2013 compared to a credit of $16 million for the fourth quarter of 2012.

Other Segments

Other Segments consist of Corporate Treasury, Community Development, Key's Principal Investing unit, and various exit portfolios. Other Segments generated net income attributable to Key of $84 million for the fourth quarter of 2013, compared to net income attributable to Key of $53 million for the same period last year. These results were primarily attributable to an increase in net gains (losses) from principal investing of $18 million, and an increase in net interest income of $17 million.

KeyCorp was organized more than 160 years ago and is headquartered in Cleveland, Ohio. One of the nation's largest bank-based financial services companies, Key had assets of approximately$92.9 billion at December 31, 2013.

Key provides deposit, lending, cash management and investment services to individuals and small and mid-sized businesses in 12 states under the name KeyBank National Association. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

INVESTOR RELATIONS: www.key.com/ir

KEY MEDIA NEWSROOM: www.key.com/newsroom

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key's financial condition, results of operations, and profitability. Forward-looking statements can be identified by words such as "expect," "believe," and "anticipate," and other similar references to future periods. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Key's control. Key's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Key's actual results to differ materially from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2012, and its Quarterly Reports on Form 10-Q for the periods ended March 31, 2013, June 30, 2013, and September 30, 2013, each of which has been filed with the Securities and Exchange Commission and is available on Key's website (www.key.com/ir ) and on the Securities and Exchange Commission's website ( www.sec.gov). These factors may include, among others: economic, political or other shocks to financial markets in the United States and abroad; current reform initiatives in the U.S., including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended, subjecting us to a variety of new and more stringent legal and regulatory requirements and increased scrutiny from our regulators;adverse behaviors in securities, public debt, and capital markets, including changes in market liquidity and volatility; and our ability to timely and effectively implement our strategic initiatives. Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management's views as of any subsequent date. Key does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Notes to Editors:

A live Internet broadcast of KeyCorp's conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts' questions can be accessed through the Investor Relations section at https://www.key.com/irat 9:00 a.m. ET, on Thursday, January 23, 2014. An audio replay of the call will be available through January 30, 2014.

For up-to-date company information, media contacts, and facts and figures about Key's lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****

KeyCorp
Fourth Quarter 2013
Financial Supplement


Page
13	Financial Highlights
15	GAAP to Non-GAAP Reconciliation
18	Consolidated Balance Sheets
19	Consolidated Statements of Income
20	Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
22	Noninterest Expense
22	Personnel Expense
23	Loan Composition
23	Loans Held for Sale Composition
23	Summary of Changes in Loans Held for Sale
24	Exit Loan Portfolio From Continuing Operations
24	Asset Quality Statistics From Continuing Operations
25	Summary of Loan and Lease Loss Experience From Continuing Operations
26	Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
27	Summary of Changes in Nonperforming Loans From Continuing Operations
27	Summary of Changes in Nonperforming Loans Held for Sale From Continuing Operations
27	Summary of Changes in Other Real Estate Owned, Net of Allowance, From Continuing Operations
28	Line of Business Results

Financial Highlights
(dollars in millions, except per share amounts)

			Three months ended
			12-31-13		9-30-13		12-31-12
Summary of operations
	Net interest income (TE)		$	589	$	584	$	607
	Noninterest income			453		459		439
		Total revenue (TE)		1,042		1,043		1,046
	Provision (credit) for loan and lease losses			19		28		57
	Noninterest expense			712		716		734
	Income (loss) from continuing operations attributable to Key			235		235		196
	Income (loss) from discontinued operations, net of taxes (a)			(5)		37		7
	Net income (loss) attributable to Key			230		272		203

	Income (loss) from continuing operations attributable to Key common shareholders		$	229	$	229	$	190
	Income (loss) from discontinued operations, net of taxes (a)			(5)		37

Financial Highlights (continued)
(dollars in millions, except per share amounts)

			Twelve months ended
			12-31-13			12-31-12
Summary of operations
	Net interest income (TE)		$	2,348		$	2,288
	Noninterest income			1,766			1,856
		Total revenue (TE)		4,114			4,144
	Provision (credit) for loan and lease losses			130			229
	Noninterest expense			2,820			2,818
	Income (loss) from continuing operations attributable to Key			870			835
	Income (loss) from discontinued operations, net of taxes (a)			40			23
	Net income (loss) attributable to Key			910			858

	Income (loss) from continuing operations attributable to Key common shareholders		$	847		$	813
	Income (loss) from discontinued operations, net of taxes (a)			40			23
	Net income (loss) attributable to Key common shareholders			887			836

Per common share
	Income (loss) from continuing operations attributable to Key common shareholders		$	.93		$	.87
	Income (loss) from discontinued operations, net of taxes (a)			.04			.02
	Net income (loss) attributable to Key common shareholders (b)			.98			.89

	Income (loss) from continuing operations attributable to Key common shareholders - assuming dilution			.93			.86
	Income (loss) from discontinued operations, net of taxes - assuming dilution (a)			.04			.02
	Net income (loss) attributable to Key common shareholders - assuming dilution (b)			.97			.89

	Cash dividends paid			.215			.18

Performance ratios
	From continuing operations:
	Return on average total assets			1.03	%		1.03	%
	Return on average common equity			8.48			8.25
	Return on average tangible common equity (c)			9.45			9.16
	Net interest margin (TE)			3.12			3.21
	Cash efficiency ratio (c)			67.5			67.4

	From consolidated operations:
	Return on average total assets			1.02	%		.99	%
	Return on average common equity			8.88			8.48
	Return on average tangible common equity (c)			9.90			9.42
	Net interest margin (TE)			3.02			3.13

Asset quality - from continuing operations
	Net loan charge-offs		$	168		$	345
	Net loan charge-offs to average total loans			.32	%		.69	%

Other data
	Average full-time equivalent employees			14,783			15,589

Taxable-equivalent adjustment			$	23		$	24

(a) In April 2009, management decided to wind down the operations of Austin Capital Management, Ltd., a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, management decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank National Association. In February 2013, Key decided to sell its investment subsidiary, Victory Capital Management, and its broker-dealer affiliate, Victory Capital Advisors, to a private equity fund. As a result of these decisions, Key has accounted for these businesses as discontinued operations.

(b) Earnings per share may not foot due to rounding.

(c) The following table entitled "GAAP to Non-GAAP Reconciliations" presents the computations of certain financial measures related to "tangible common equity," "Tier 1 common equity," and "cash efficiency." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(d) Represents period-end consolidated total loans and loans held for sale (excluding education loans in the securitization trusts) divided by period-end consolidated total deposits (excluding deposits in foreign office).

(e) 12-31-13 ratio is estimated.

(f) December 31, 2013, September 30, 2013, and December 31, 2012 amounts exclude $16 million, $18 million, and $23 million, respectively, of purchased credit impaired loans acquired in July 2012.

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

GAAP to Non-GAAP Reconciliations
(dollars in millions)

The table below presents certain non-GAAP financial measures related to "tangible common equity," "return on tangible common equity," "Tier 1 common equity," "pre-provision net revenue," "cash efficiency ratio," and "adjusted cash efficiency ratio."

The tangible common equity ratio and the return on tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key's capital position without regard to the effects of intangible assets and preferred stock. Traditionally, the banking regulators have assessed bank and bank holding company capital adequacy based on both the amount and the composition of capital, the calculation of which is prescribed in federal banking regulations. Since the commencement of the Comprehensive Capital Analysis and Review process in early 2009, the Federal Reserve has focused its assessment of capital adequacy on a component of Tier 1 risk-based capital known as Tier 1 common equity, a non-GAAP financial measure. Because the Federal Reserve has long indicated that voting common shareholders' equity (essentially Tier 1 risk-based capital less preferred stock, qualifying capital securities and noncontrolling interests in subsidiaries) generally should be the dominant element in Tier 1 risk-based capital, this focus on Tier 1 common equity is consistent with existing capital adequacy categories.

Tier 1 common equity is neither formally defined by GAAP nor prescribed in amount by federal banking regulations; this measure is considered to be a non-GAAP financial measure. Since analysts and banking regulators may assess Key's capital adequacy using tangible common equity and Tier 1 common equity, management believes it is useful to enable investors to assess Key's capital adequacy on these same bases. The table also reconciles the GAAP performance measures to the corresponding non-GAAP measures.

The table also shows the computation for pre-provision net revenue, which is not formally defined by GAAP. Management believes that eliminating the effects of the provision for loan and lease losses makes it easier to analyze the results by presenting them on a more comparable basis.

The cash efficiency ratio and the adjusted cash efficiency ratio are ratios of two non-GAAP performance measures. As such, there are no directly comparable GAAP performance measures. The cash efficiency ratio performance measure removes the impact of Key's intangible asset amortization from the calculation. The adjusted cash efficiency ratio further removes the impact of the efficiency initiative charges. Management believes these ratios provide greater consistency and comparability between Key's results and those of its peer banks. Additionally, these ratios are used by analysts and investors as they develop earnings forecasts and peer bank analysis.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.

			Three months ended
			12-31-13			9-30-13			12-31-12
Tangible common equity to tangible assets at period end
	Key shareholders' equity (GAAP)		$	10,303		$	10,206		$	10,271
	Less:	Intangible assets (a)		1,014			1,017			1,027
		Preferred Stock, Series A (b)		282			282			291
		Tangible common equity (non-GAAP)	$	9,007		$	8,907		$	8,953

	Total assets (GAAP)		$	92,934		$	90,708		$	89,236
	Less:	Intangible assets (a)		1,014			1,017			1,027
		Tangible assets (non-GAAP)	$	91,920		$	89,691		$	88,209

	Tangible common equity to tangible assets ratio (non-GAAP)			9.80	%		9.93	%		10.15	%

Tier 1 common equity at period end
	Key shareholders' equity (GAAP)		$	10,303		$	10,206		$	10,271
	Qualifying capital securities			339			340			339
	Less:	Goodwill		979			979			979
		Accumulated other comprehensive income (loss) (c)		(394)			(409)			(172)
		Other assets (d)		91			96			114
		Total Tier 1 capital (regulatory)		9,966			9,880			9,689
	Less:	Qualifying capital securities		339			340			339
		Preferred Stock, Series A (b)		282			282			291
		Total Tier 1 common equity (non-GAAP)	$	9,345		$	9,258		$	9,059

	Net risk-weighted assets (regulatory) (d), (e)		$	83,251		$	82,913		$	79,734

	Tier 1 common equity ratio (non-GAAP) (e)			11.23	%		11.17	%		11.36	%

Pre-provision net revenue
	Net interest income (GAAP)		$	583		$	578		$	601
	Plus:	Taxable-equivalent adjustment		6			6			6
		Noninterest income (GAAP)		453			459			439
	Less:	Noninterest expense (GAAP)		712			716			734
	Pre-provision net revenue from continuing operations (non-GAAP)		$	330		$	327		$	312

GAAP to Non-GAAP Reconciliations (continued)
(dollars in millions)

			Three months ended
			12-31-13			9-30-13			12-31-12
Average tangible common equity
	Average Key shareholders' equity (GAAP)		$	10,272		$	10,237		$	10,261
	Less:	Intangible assets (average) (f)		1,016			1,019			1,030
		Preferred Stock, Series A (average)		291			291			291
		Average tangible common equity (non-GAAP)	$	8,965		$	8,927		$	8,940

Return on average tangible common equity from continuing operations
	Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)		$	229		$	229		$	190
	Average tangible common equity (non-GAAP)			8,965			8,927			8,940

	Return on average tangible common equity from continuing operations (non-GAAP)			10.13	%		10.18	%		8.45	%

Return on average tangible common equity consolidated
	Net income (loss) attributable to Key common shareholders (GAAP)		$	224		$	266		$	197
	Average tangible common equity (non-GAAP)			8,965			8,927			8,940

	Return on average tangible common equity consolidated (non-GAAP)			9.91	%		11.82	%		8.77	%

Cash efficiency ratio
	Noninterest expense (GAAP)		$	712		$	716		$	734
	Less:	Intangible asset amortization on credit cards (GAAP)		7			8			8
		Other intangible asset amortization (GAAP)		3			4			4
		Adjusted noninterest expense (non-GAAP)	$	702		$	704		$	722

	Net interest income (GAAP)		$	583		$	578		$	601
	Plus:	Taxable-equivalent adjustment		6			6			6
		Noninterest income (GAAP)		453			459			439
		Total taxable-equivalent revenue (non-GAAP)	$	1,042		$	1,043		$	1,046

	Cash efficiency ratio (non-GAAP)			67.4	%		67.5	%		69.0	%

Adjusted cash efficiency ratio net of efficiency initiative charges
	Adjusted noninterest expense (non-GAAP)		$	702		$	704		$	722
	Less:	Efficiency initiative and pension settlement charges (non-GAAP)		24			41			16
		Net adjusted noninterest expense (non-GAAP)	$	678		$	663		$	706

	Total taxable-equivalent revenue (non-GAAP)		$	1,042		$	1,043		$	1,046

	Adjusted cash efficiency ratio net of efficiency initiative charges (non-GAAP)			65.1	%		63.6	%		67.5	%

			Three months ended
			12-31-13			9-30-13
Tier 1 common equity under the Regulatory Capital Rules (estimates)
	Tier 1 common equity under current regulatory rules		$	9,345		$	9,258
	Adjustments from current regulatory rules to the Regulatory Capital Rules:
		Deferred tax assets and other (g)		(130)			(140)
		Tier 1 common equity anticipated under the Regulatory Capital Rules (h)	$	9,215		$	9,118

	Net risk-weighted assets under current regulatory rules		$	83,251		$	82,913
	Adjustments from current regulatory rules to the Regulatory Capital Rules:
		Loan commitments less than one year		891			496
		Past due loans		206			244
		Mortgage servicing assets (i)		576			576
		Deferred tax assets (i)		240			240
		Other		1,490			1,451
		Total risk-weighted assets anticipated under the Regulatory Capital Rules	$	86,654		$	85,920

	Tier 1 common equity ratio under the Regulatory Capital Rules (h)			10.63	%		10.61	%

GAAP to Non-GAAP Reconciliations (continued)
(dollars in millions)

			Twelve months ended
			12-31-13			12-31-12
Pre-provision net revenue
	Net interest income (GAAP)		$	2,325		$	2,264
	Plus:	Taxable-equivalent adjustment		23			24
		Noninterest income (GAAP)		1,766			1,856
	Less:	Noninterest expense (GAAP)		2,820			2,818
	Pre-provision net revenue from continuing operations (non-GAAP)		$	1,294		$	1,326

Average tangible common equity
	Average Key shareholders' equity (GAAP)		$	10,276		$	10,144
	Less:	Intangible assets (average) (j)		1,021			978
		Preferred Stock, Series A (average)		291			291
		Average tangible common equity (non-GAAP)	$	8,964		$	8,875

Return on average tangible common equity from continuing operations
	Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)		$	847		$	813
	Average tangible common equity (non-GAAP)			8,964			8,875

	Return on average tangible common equity from continuing operations (non-GAAP)			9.45	%		9.16	%

Return on average tangible common equity consolidated
	Net income (loss) attributable to Key common shareholders (GAAP)		$	887		$	836
	Average tangible common equity (non-GAAP)			8,964			8,875

	Return on average tangible common equity consolidated (non-GAAP)			9.90	%		9.42	%

Cash efficiency ratio
	Noninterest expense (GAAP)		$	2,820		$	2,818
	Less:	Intangible asset amortization on credit cards (GAAP)		30			14
		Other intangible asset amortization (GAAP)		14			9
		Adjusted noninterest expense (non-GAAP)	$	2,776		$	2,795

	Net interest income (GAAP)		$	2,325		$	2,264
	Plus:	Taxable-equivalent adjustment		23			24
		Noninterest income (GAAP)		1,766			1,856
		Total taxable-equivalent revenue (non-GAAP)	$	4,114		$	4,144

	Cash efficiency ratio (non-GAAP)			67.5	%		67.4	%

Adjusted cash efficiency ratio net of efficiency initiative charges
	Adjusted noninterest expense (non-GAAP)		$	2,776		$	2,795
	Less:	Efficiency initiative and pension settlement charges (non-GAAP)		117			25
		Net adjusted noninterest expense (non-GAAP)	$	2,659		$	2,770

	Total taxable-equivalent revenue (non-GAAP)		$	4,114		$	4,144

	Adjusted cash efficiency ratio net of efficiency initiative charges (non-GAAP)			64.6	%		66.8	%

(a) Three months ended December 31, 2013, September 30, 2013, and December 31, 2012 exclude $92 million, $99 million, and $123 million, respectively, of period end purchased credit card receivable intangible assets.

(b) Net of capital surplus for the three months ended December 31, 2013 and September 30, 2013.

(c) Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities), net gains or losses on cash flow hedges, and amounts resulting from the application of the applicable accounting guidance for defined benefit and other postretirement plans.

(d) Other assets deducted from Tier 1 capital and net risk-weighted assets consist of disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments. There were no disallowed deferred tax assets at December 31, 2013, September 30, 2013, and December 31, 2012.

(e) 12-31-13 amount is estimated.

(f) Three months ended December 31, 2013, September 30, 2013, and December 31, 2012 exclude $96 million, $103 million, and $126 million, respectively, of average ending purchased credit card receivable intangible assets.

(g) Includes the deferred tax asset subject to future taxable income for realization, primarily tax credit carryforwards, as well as the deductible potion of purchased credit card receivables.

(h) The anticipated amount of regulatory capital and risk-weighted assets is based upon the federal banking agencies' Regulatory Capital Rules (as fully phased-in on January 1, 2019); Key is subject to the Regulatory Capital Rules under the "standardized approach."

(i) Item is included in the 10%/15% exceptions bucket calculation and is risk-weighted at 250%.

(j) Twelve months ended December 31, 2013 and December 31, 2012 exclude $107 million and $55 million, respectively, of average ending purchased credit card receivable intangible assets.

GAAP = U.S. generally accepted accounting principles

Consolidated Balance Sheets
(dollars in millions)

			12-31-13		9-30-13		12-31-12
Assets
	Loans		$	54,457	$	53,597	$	52,822
	Loans held for sale			611		699		599
	Securities available for sale			12,346		12,606		12,094
	Held-to-maturity securities			4,756		4,835		3,931
	Trading account assets			738		806		605
	Short-term investments			5,590		3,535		3,940
	Other investments			969		1,007		1,064
		Total earning assets		79,467		77,085		75,055
	Allowance for loan and lease losses			(848)		(868)		(888)
	Cash and due from banks			617		748		584
	Premises and equipment			885		890		965
	Operating lease assets			305		293		288
	Goodwill			979		979		979
	Other intangible assets			127		137		171
	Corporate-owned life insurance			3,408		3,384		3,333
	Derivative assets			407		475		693
	Accrued income and other assets			3,015		2,747		2,774
	Discontinued assets			4,572		4,838		5,282
		Total assets	$	92,934	$	90,708	$	89,236

Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	33,952	$	33,132	$	32,380
		Savings deposits		2,472		2,489		2,433
		Certificates of deposit ($100,000 or more)		2,631		2,698		2,879
		Other time deposits		3,648		3,833		4,575
		Total interest-bearing deposits		42,703		42,152		42,267
		Noninterest-bearing deposits		26,001		25,778		23,319
	Deposits in foreign office - interest-bearing			558		605		407
		Total deposits		69,262		68,535		65,993
	Federal funds purchased and securities sold under repurchase agreements			1,534		1,455		1,609
	Bank notes and other short-term borrowings			343		466		287
	Derivative liabilities			414		450		584
	Accrued expense and other liabilities			1,557		1,375		1,387
	Long-term debt			7,650		6,154		6,847
	Discontinued liabilities			1,854		2,037		2,220
		Total liabilities		82,614		80,472		78,927

Equity
	Preferred stock, Series A			291		291		291
	Common shares			1,017		1,017		1,017
	Capital surplus			4,022		4,029		4,126
	Retained earnings			7,606		7,431		6,913
	Treasury stock, at cost			(2,281)		(2,193)		(1,952)
	Accumulated other comprehensive income (loss)			(352)		(369)		(124)
		Key shareholders' equity		10,303		10,206		10,271
	Noncontrolling interests			17		30		38
		Total equity		10,320		10,236		10,309
Total liabilities and equity			$	92,934	$	90,708	$	89,236

Common shares outstanding (000)				890,724		897,821		925,769

Consolidated Statements of Income
(dollars in millions, except per share amounts)

			Three months ended						Twelve months ended
			12-31-13		9-30-13		12-31-12		12-31-13		12-31-12
Interest income
	Loans		$	532	$	532	$	563	$	2,151	$	2,155
	Loans held for sale			6		5		5		20		20
	Securities available for sale			75		76		85		311		399
	Held-to-maturity securities			22		22		19		82		69
	Trading account assets			6		5		3		21		18
	Short-term investments			2		1		2		6		6
	Other investments			6		6		11		29		38
		Total interest income		649		647		688		2,620		2,705

Interest expense
	Deposits			34		37		49		158		257
	Federal funds purchased and securities sold under repurchase agreements			-		1		1		2		4
	Bank notes and other short-term borrowings			3		2		2		8		7
	Long-term debt			29		29		35		127		173
		Total interest expense		66		69		87		295		441

Net interest income				583		578		601		2,325		2,264
Provision (credit) for loan and lease losses				19		28		57		130		229
Net interest income (expense) after provision for loan and lease losses				564		550		544		2,195		2,035

Noninterest income
	Trust and investment services income			98		100		95		393		375
	Investment banking and debt placement fees			84		86		110		333		327
	Service charges on deposit accounts			68		73		75		281		287
	Operating lease income and other leasing gains			23		43		19		108		195
	Corporate services income			40		44		41		172		168
	Cards and payments income			40		43		38		162		135
	Corporate-owned life insurance income			33		26		36		120		122
	Consumer mortgage income			3		3		11		19		40
	Mortgage servicing fees			22		15		7		58		24
	Net gains (losses) from principal investing			20		17		2		52		72
	Other income (a)			22		9		5		68		111
		Total noninterest income		453		459		439		1,766		1,856

Noninterest expense
	Personnel			398		414		422		1,609		1,570
	Net occupancy			73		66		69		275		260
	Computer processing			40		38		38		156		164
	Business services and professional fees			42		37		54		151		190
	Equipment			26		25		27		104		107
	Operating lease expense			10		14		12		47		57
	Marketing			18		16		20		51		68
	FDIC assessment			7		7		8		30		31
	Intangible asset amortization on credit cards			7		8		8		30		14
	Other intangible asset amortization			3		4		4		14		9
	Provision (credit) for losses on lending-related commitments			(3)		3		(14)		8		(16)
	OREO expense, net			2		1		1		7		15
	Other expense			89		83		85		338		349
		Total noninterest expense		712		716		734		2,820		2,818
Income (loss) from continuing operations before income taxes				305		293		249		1,141		1,073
	Income taxes			70		59		53		271		231
Income (loss) from continuing operations				235		234		196		870		842
	Income (loss) from discontinued operations, net of taxes			(5)		37		7		40		23
Net income (loss)				230		271		203		910		865
	Less: Net income (loss) attributable to noncontrolling interests			-		(1)		-		-		7
Net income (loss) attributable to Key			$	230	$	272	$	203	$	910	$	858

Income (loss) from continuing operations attributable to Key common shareholders			$	229	$	229	$	190	$	847	$	813
Net income (loss) attributable to Key common shareholders				224		266		197		887		836

Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.26	$	.25	$	.21	$	.93	$	.87
Income (loss) from discontinued operations, net of taxes				(.01)		.04		.01		.04		.02
Net income (loss) attributable to Key common shareholders (b)				.25		.29		.21		.98		.89

Per common share - assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.26	$	.25	$	.20	$	.93	$	.86
Income (loss) from discontinued operations, net of taxes				(.01)		.04		.01		.04		.02
Net income (loss) attributable to Key common shareholders (b)				.25		.29		.21		.97		.89

Cash dividends declared per common share			$	.055	$	.055	$	.05	$	.215	$	.18

Weighted-average common shares outstanding (000)				890,516		901,904		925,725		906,524		938,941

Weighted-average common shares and potential common shares outstanding (000) (c)				897,712		928,854		930,382		912,571		943,259


(a) For the three months ended December 31, 2013, September 30, 2013, and December 31, 2012, Key did not have any impairment losses related to securities.

(b) Earnings per share may not foot due to rounding.

(c) Assumes conversion of stock options and/or Preferred Series A shares, as applicable.

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)

			Fourth Quarter 2013								Third Quarter 2013								Fourth Quarter 2012
			Average								Average								Average
			Balance		Interest		(a)	Yield/Rate		(a)	Balance		Interest		(a)	Yield/Rate		(a)	Balance		Interest		(a)	Yield/Rate		(a)
Assets
	Loans: (b), (c)
	Commercial, financial and agricultural (d)		$	24,218	$	212			3.47	%	$	23,864	$	213			3.54	%	$	22,436	$	213			3.77	%
	Real estate - commercial mortgage			7,678		78			4.01			7,575		77			4.06			7,555		82			4.35
	Real estate - construction			1,075		11			4.21			1,073		12			4.24			1,070		14			4.94
	Commercial lease financing			4,513		41			3.62			4,633		36			3.14			4,869		49			4.01
		Total commercial loans		37,484		342			3.62			37,145		338			3.61			35,930		358			3.96
	Real estate - residential mortgage			2,199		24			4.43			2,193		25			4.43			2,164		26			4.70
	Home equity:
		Key Community Bank		10,310		102			3.92			10,247		101			3.92			9,807		98			3.99
		Other		343		7			7.72			364		7			7.72			411		9			8.23
		Total home equity loans		10,653		109			4.04			10,611		108			4.05			10,218		107			4.16
	Consumer other - Key Community Bank			1,446		26			7.18			1,435		26			7.24			1,339		32			9.63
	Credit cards			701		20			11.17			700		21			11.77			714		23			13.15
	Consumer other:
		Marine		1,056		17			6.24			1,120		17			6.26			1,403		22			6.16
		Other		69		1			8.03			67		2			8.72			91		1			8.25
		Total consumer other		1,125		18			6.35			1,187		19			6.40			1,494		23			6.29
		Total consumer loans		16,124		197			4.88			16,126		199			4.93			15,929		211			5.30
		Total loans		53,608		539			3.98			53,271		537			4.00			51,859		569			4.37
	Loans held for sale			688		6			3.65			456		5			4.06			618		5			3.47
	Securities available for sale (b), (e)			12,464		74			2.40			12,926		77			2.37			11,980		84			2.95
	Held-to-maturity securities (b)			4,775		22			1.85			4,796		22			1.84			4,036		19			1.94
	Trading account assets			819		6			2.90			747		5			2.52			606		3			1.91
	Short-term investments			4,455		2			.18			1,615		1			.20			2,090		2			.27
	Other investments (e)			983		6			2.47			1,022		6			2.67			1,088		12			4.05
		Total earning assets		77,792		655			3.37			74,833		653			3.49			72,277		694			3.85
	Allowance for loan and lease losses			(859)								(873)								(898)
	Accrued income and other assets			9,467								9,549								9,878
	Discontinued assets			4,777								5,061								5,350
		Total assets	$	91,177							$	88,570							$	86,607

Liabilities
	NOW and money market deposit accounts		$	33,834		12			.15		$	32,736		13			.15		$	31,058		14			.18
	Savings deposits			2,483		-			.03			2,520		-			.04			2,408		-			.06
	Certificates of deposit ($100,000 or more) (f)			2,649		11			1.57			2,785		12			1.67			2,992		16			2.15
	Other time deposits			3,736		11			1.16			3,957		12			1.24			4,714		18			1.52
	Deposits in foreign office			615		-			.21			621		-			.20			874		1			.21
		Total interest-bearing deposits		43,317		34			.32			42,619		37			.35			42,046		49			.47
	Federal funds purchased and securities sold under repurchase agreements			1,618		-			.15			1,837		1			.08			1,702		1			.16
	Bank notes and other short-term borrowings			438		3			1.96			383		2			1.98			306		2			1.97
	Long-term debt (f), (g)			4,174		29			2.94			3,504		29			3.41			3,301		35			4.84
		Total interest-bearing liabilities		49,547		66			.53			48,343		69			.56			47,355		87			.73
	Noninterest-bearing deposits			25,077								23,364								21,889
	Accrued expense and other liabilities			1,548								1,626								1,747
	Discontinued liabilities (g)			4,717								4,968								5,321
		Total liabilities		80,889								78,301								76,312

Equity
	Key shareholders' equity			10,272								10,237								10,261
	Noncontrolling interests			16								32								34
		Total equity		10,288								10,269								10,295

		Total liabilities and equity	$	91,177							$	88,570							$	86,607

Interest rate spread (TE)									2.84	%							2.93	%							3.12	%

Net interest income (TE) and net interest margin (TE)						589			3.01	%				584			3.11	%				607			3.37	%
TE adjustment (b)						6								6								6
	Net interest income, GAAP basis				$	583							$	578							$	601

(a) Results are from continuing operations. Interest excludes the interest associated with the liabilities referred

to in (g) 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 35%.

(d) Commercial, financial and agricultural average balance for the three months ended December 31, 2013, September 30, 2013, and December 31, 2012 includes $97 million, $96 million, and $90 million, respectively, of assets from commercial credit cards.

(e) Yield is calculated on the basis of amortized cost.

(f) Rate calculation excludes basis adjustments related to fair value hedges.

(g) 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.

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

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)


			Twelve months ended December 31, 2013								Twelve months ended December 31, 2012
			Average								Average
			Balance		Interest		(a)	Yield/Rate		(a)	Balance		Interest		(a)	Yield/Rate		(a)
Assets
	Loans: (b), (c)
	Commercial, financial and agricultural (d)		$	23,723	$	855			3.60	%	$	21,141	$	810			3.83	%
	Real estate - commercial mortgage			7,591		312			4.11			7,656		339			4.43
	Real estate - construction			1,058		45			4.25			1,171		56			4.74
	Commercial lease financing			4,683		172			3.67			5,142		187			3.64
		Total commercial loans		37,055		1,384			3.73			35,110		1,392			3.96
	Real estate - residential mortgage			2,185		98			4.49			2,049		100			4.86
	Home equity:
		Key Community Bank		10,086		397			3.93			9,520		384			4.03
		Other		377		29			7.70			473		37			7.81
	Total home equity loans			10,463		426			4.07			9,993		421			4.21
	Consumer other - Key Community Bank			1,404		103			7.33			1,269		121			9.53
	Credit cards			701		83			11.86			288		40			13.99
	Consumer other:
		Marine		1,172		74			6.26			1,551		97			6.26
		Other		74		6			8.32			102		8			8.14
		Total consumer other		1,246		80			6.38			1,653		105			6.38
	Total consumer loans			15,999		790			4.94			15,252		787			5.16
	Total loans			53,054		2,174			4.10			50,362		2,179			4.33
	Loans held for sale			532		20			3.72			579		20			3.45
	Securities available for sale (b), (e)			12,689		311			2.49			13,422		399			3.08
	Held-to-maturity securities (b)			4,387		82			1.87			3,511		69			1.97
	Trading account assets			756		21			2.78			718		18			2.48
	Short-term investments			2,948		6			.20			2,116		6			.27
	Other investments (e)			1,028		29			2.84			1,141		38			3.27
	Total earning assets			75,394		2,643			3.51			71,849		2,729			3.82
	Allowance for loan and lease losses			(879)								(919)
	Accrued income and other assets			9,662								9,912
	Discontinued assets			5,036								5,573
	Total assets		$	89,213							$	86,415

Liabilities
	NOW and money market deposit accounts		$	32,846		53			.16		$	29,673		56			.19
	Savings deposits			2,505		1			.04			2,218		1			.05
	Certificates of deposit ($100,000 or more) (f)			2,829		50			1.76			3,574		94			2.64
	Other time deposits			4,084		53			1.30			5,386		104			1.92
	Deposits in foreign office			567		1			.23			767		2			.23
		Total interest-bearing deposits		42,831		158			.37			41,618		257			.62

	Federal funds purchased and securities sold under repurchase agreements			1,802		2			.13			1,814		4			.19
	Bank notes and other short-term borrowings			394		8			1.89			413		7			1.69
	Long-term debt (f), (g)			4,184		127			3.28			4,673		173			4.10
		Total interest-bearing liabilities		49,211		295			.60			48,518		441			.92
	Noninterest-bearing deposits			23,046								20,217
	Accrued expense and other liabilities			1,656								1,958
	Discontinued liabilities (g)			4,995								5,555
	Total liabilities			78,908								76,248

Equity
	Key shareholders' equity			10,276								10,144
	Noncontrolling interests			29								23
	Total equity			10,305								10,167

	Total liabilities and equity		$	89,213

(a) Results are from continuing operations. Interest excludes the interest associated with the liabilities referred

to in (g) 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 35%.

(d) Commercial, financial and agricultural average balance for the twelve months ended December 31, 2013 and December 31, 2012 includes $95 million and $36 million, respectively, of assets from commercial credit cards.

(e) Yield is calculated on the basis of amortized cost.

(f) Rate calculation excludes basis adjustments related to fair value hedges.

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

Noninterest Expense
(dollars in millions)

	Three months ended						Twelve months ended
	12-31-13		9-30-13		12-31-12		12-31-13		12-31-12
Personnel (a)	$	398	$	414	$	422	$	1,609	$	1,570
Net occupancy		73		66		69		275		260
Computer processing		40		38		38		156		164
Business services and professional fees		42		37		54		151		190
Equipment		26		25		27		104		107
Operating lease expense		10		14		12		47		57
Marketing		18		16		20		51		68
FDIC assessment		7		7		8		30		31
Intangible asset amortization on credit cards		7		8		8		30		14
Other intangible asset amortization		3		4		4		14		9
Provision (credit) for losses on lending-related commitments		(3)		3		(14)		8		(16)
OREO expense, net		2		1		1		7		15
Other expense		89		83		85		338		349
Total noninterest expense	$	712	$	716	$	734	$	2,820	$	2,818

Average full-time equivalent employees (b)		14,197		14,555		15,589		14,783		15,589

(a) Additional detail provided in table below.

(b) The number of average full-time equivalent employees has not been adjusted for discontinued operations.


Personnel Expense
(in millions)

	Three months ended						Twelve months ended
	12-31-13		9-30-13		12-31-12		12-31-13		12-31-12
Salaries	$	226	$	222	$	228	$	897	$	902
Technology contract labor, net		16		19		24		72		69
Incentive compensation		87		81		81		318		290
Employee benefits		56		78		65		249		237
Stock-based compensation		8		8		13		35		49
Severance		5		6		11		38		23
Total personnel expense	$	398	$	414	$	422	$	1,609	$	1,570

Loan Composition
(dollars in millions)

									Percent change 12-31-13 vs.
			12-31-13		9-30-13		12-31-12		9-30-13			12-31-12
Commercial, financial and agricultural (a)			$	24,963	$	24,317	$	23,242		2.7	%		7.4	%
Commercial real estate:
	Commercial mortgage			7,720		7,544		7,720		2.3			-
	Construction			1,093		1,058		1,003		3.3			9.0
	Total commercial real estate loans			8,813		8,602		8,723		2.5			1.0
Commercial lease financing				4,551		4,550		4,915		-			(7.4)
	Total commercial loans			38,327		37,469		36,880		2.3			3.9
Residential - prime loans:
	Real estate - residential mortgage			2,187		2,198		2,174		(.5)			.6
	Home equity:
		Key Community Bank		10,340		10,285		9,816		.5			5.3
		Other		334		353		423		(5.4)			(21.0)
	Total home equity loans			10,674		10,638		10,239		.3			4.2
Total residential - prime loans				12,861		12,836		12,413		.2			3.6
Consumer other - Key Community Bank				1,449		1,440		1,349		.6			7.4
Credit cards				722		698		729		3.4			(1.0)
Consumer other:
	Marine			1,028		1,083		1,358		(5.1)			(24.3)
	Other			70		71		93		(1.4)			(24.7)
	Total consumer other			1,098		1,154		1,451		(4.9)			(24.3)
	Total consumer loans			16,130		16,128		15,942		-			1.2
	Total loans (b), (c)		$	54,457	$	53,597	$	52,822		1.6	%		3.1	%



Loans Held for Sale Composition
(dollars in millions)

									Percent change 12-31-13 vs.
			12-31-13		9-30-13		12-31-12		9-30-13			12-31-12
Commercial, financial and agricultural			$	278	$	68	$	29		308.8	%		858.6	%
Real estate - commercial mortgage				307		608		477		(49.5)			(35.6)
Commercial lease financing				9		-		8		N/M			12.5
Real estate - residential mortgage				17		23		85		(26.1)			(80.0)
	Total loans held for sale		$	611	$	699	$	599		(12.6)	%		2.0	%



Summary of Changes in Loans Held for Sale
(dollars in millions)

			4Q13		3Q13		2Q13		1Q13			4Q12
Balance at beginning of period			$	699	$	402	$	434	$	599		$	628
	New originations			1,669		1,467		1,241		1,075			1,686
	Transfers from held to maturity, net			1		15		17		19			38
	Loan sales			(1,750)		(1,181)		(1,292)		(1,257)			(1,747)
	Loan draws (payments), net			(8)		(4)		-		-			(4)
	Transfers to OREO / valuation adjustments			-		-		2		(2)			(2)
Balance at end of period			$	611	$	699	$	402	$	434		$	599

(a) December 31, 2013, September 30, 2013, and December 31, 2012 loan balances include $94 million, $96 million, and $90 million, respectively, of commercial credit card balances.

(b) Excluded at December 31, 2013, September 30, 2013, and December 31, 2012 are loans in the amount of $4.5 billion, $4.7 billion, and $5.2 billion, respectively, related to the discontinued operations of the education lending business.

(c) December 31, 2013 loan balance includes purchased loans of $166 million of which $16 million were purchased credit impaired. September 30, 2013 loan balance includes purchased loans of $176 million of which $18 million were purchased credit impaired. December 31, 2012 loan balance includes purchased loans of $217 million of which $23 million were purchased credit impaired.

N/M = Not Meaningful

Exit Loan Portfolio From Continuing Operations
(dollars in millions)

	Balance				Change		Net Loan						Balance on
	Outstanding				12-31-13 vs.		Charge-offs						Nonperforming Status
	12-31-13		9-30-13		9-30-13		4Q13		(c)	3Q13		(c)	12-31-13		9-30-13
Residential properties - homebuilder	$	20	$	26	$	(6)		-			-		$	7	$	8
Marine and RV floor plan		24		25		(1)		-			-			6		6
Commercial lease financing (a)		782		796		(14)	$	(2)		$	(2)			-		1
Total commercial loans		826		847		(21)		(2)			(2)			13		15
Home equity - Other		334		353		(19)		3			2			16		14
Marine		1,028		1,083		(55)		5			1			26		25
RV and other consumer		70		71		(1)		1			-			1		2
Total consumer loans		1,432		1,507		(75)		9			3			43		41
Total exit loans in loan portfolio	$	2,258	$	2,354	$	(96)	$	7		$	1		$	56	$	56

Discontinued operations - education lending business (not included in exit loans above) (b)	$	4,497	$	4,738	$	(241)	$	9		$	9		$	25	$	23

(a) Includes (1) the business aviation, commercial vehicle, office products, construction and industrial leases; (2) Canadian lease financing portfolios; and (3) all remaining balances related to lease in, lease out; sale in, lease out; service contract leases; and qualified technological equipment leases.

(b) Includes loans in Key's consolidated education loan securitization trusts.

Asset Quality Statistics From Continuing Operations
(dollars in millions)

		4Q13			3Q13			2Q13			1Q13			4Q12
Net loan charge-offs	$	37		$	37		$	45		$	49		$	58
Net loan charge-offs to average total loans		.27	%		.28	%		.34	%		.38	%		.44	%
Allowance for loan and lease losses	$	848		$	868		$	876		$	893		$	888
Allowance for credit losses (a)		885			908			913			925			917
Allowance for loan and lease losses to period-end loans		1.56	%		1.62	%		1.65	%		1.70	%		1.68	%
Allowance for credit losses to period-end loans		1.63			1.69			1.72			1.76			1.74
Allowance for loan and lease losses to nonperforming loans		166.9			160.4			134.4			137.4			131.8
Allowance for credit losses to nonperforming loans		174.2			167.8			140.0			142.3			136.1
Nonperforming loans at period end (b)	$	508		$	541		$	652		$	650		$	674
Nonperforming assets at period end		531			579			693			705			735
Nonperforming loans to period-end portfolio loans		.93	%		1.01	%		1.23	%		1.24	%		1.28	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.97			1.08			1.30			1.34			1.39


(a) Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.

(b) December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, and December 31, 2012 amounts exclude $16 million, $18 million, $19 million, $22 million, and $23 million, respectively, of purchased credit impaired loans acquired in July 2012.

Summary of Loan and Lease Loss Experience From Continuing Operations
(dollars in millions)

	Three months ended									Twelve months ended
	12-31-13			9-30-13			12-31-12			12-31-13			12-31-12
Average loans outstanding	$	53,608		$	53,271		$	51,859		$	53,054		$	50,362

Allowance for loan and lease losses at beginning of period	$	868		$	876		$	888		$	888		$	1,004
Loans charged off:
Commercial, financial and agricultural		18			15			15			62			80

Real estate - commercial mortgage		2			2			33			20			102
Real estate - construction		1			-			5			3			24
Total commercial real estate loans		3			2			38			23			126
Commercial lease financing		2			17			7			27			27
Total commercial loans		23			34			60			112			233
Real estate - residential mortgage (a)		7			3			8			20			27
Home equity:
Key Community Bank (a)		12			14			(14)			62			99
Other (a)		4			4			12			20			35
Total home equity loans		16			18			(2)			82			134
Consumer other - Key Community Bank		7			8			9			31			38
Credit cards		5			9			9			30			11
Consumer other:
Marine (a)		7			5			18			29			59
Other (a)		1			1			2			4			6
Total consumer other		8			6			20			33			65
Total consumer loans		43			44			44			196			275
Total loans charged off		66			78			104			308			508
Recoveries:
Commercial, financial and agricultural		9			11			23			39			63

Real estate - commercial mortgage		7			10			5			27			23
Real estate - construction		-			6			2			14			5
Total commercial real estate loans		7			16			7			41			28
Commercial lease financing		5			2			4			15			22
Total commercial loans		21			29			34			95			113
Real estate - residential mortgage		1			1			1			2			3
Home equity:
Key Community Bank		2			2			4			10			11
Other		1			2			1			6			5
Total home equity loans		3			4			5			16			16
Consumer other - Key Community Bank		2			1			1			7			6
Credit cards		-			1			-			3			-
Consumer other:
Marine		2			4			4			15			22
Other		-			1			1			2			3
Total consumer other		2			5			5			17			25
Total consumer loans		8			12			12			45			50
Total recoveries		29			41			46			140			163
Net loan charge-offs		(37)			(37)			(58)			(168)			(345)
Provision (credit) for loan and lease losses		19			28			57			130			229
Foreign currency translation adjustment		(2)			1			1			(2)			-
Allowance for loan and lease losses at end of period	$	848		$	868		$	888		$	848		$	888

Liability for credit losses on lending-related commitments at beginning of period	$	40		$	37		$	43		$	29		$	45
Provision (credit) for losses on lending-related commitments		(3)			3			(14)			8			(16)
Liability for credit losses on lending-related commitments at end of period (b)	$	37		$	40		$	29		$	37		$	29

Total allowance for credit losses at end of period	$	885		$	908		$	917		$	885		$	917

Net loan charge-offs to average total loans		.27	%		.28	%		.44	%		.32	%		.69	%
Allowance for loan and lease losses to period-end loans		1.56			1.62			1.68			1.56			1.68
Allowance for credit losses to period-end loans		1.63			1.69			1.74			1.63			1.74
Allowance for loan and lease losses to nonperforming loans		166.9			160.4			131.8			166.9			131.8
Allowance for credit losses to nonperforming loans		174.2			167.8			136.1			174.2			136.1

Discontinued operations - education lending business:
Loans charged off	$	13		$	14		$	19		$	55		$	75
Recoveries		4			5			4			18			17
Net loan charge-offs	$	(9)		$	(9)		$	(15)		$	(37)		$	(58)

(a) Further review of the loans subject to updated regulatory guidance in the third quarter of 2012 was performing during the fourth quarter of 2012. This review resulted in a partial home equity loan charge-off reversal and reallocation of the updated charge-off amounts to other consumer loan portfolios. Home equity - Key Community Bank charge-offs were $18 million prior to adjustments made from this review. Prior to reallocation, Real estate - residential mortgage, Home equity - Other, Consumer other - Marine, and Consumer other - Other charge-offs were $3 million, $6 million, $11 million, and $1 million, respectively.




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

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(dollars in millions)

	12-31-13			9-30-13			6-30-13			3-31-13			12-31-12
Commercial, financial and agricultural	$	77		$	102		$	146		$	142		$	99

Real estate - commercial mortgage		37			58			106			114			120
Real estate - construction		14			17			26			27			56
Total commercial real estate loans		51			75			132			141			176
Commercial lease financing		19			22			14			12			16
Total commercial loans		147			199			292			295			291
Real estate - residential mortgage		107			98			94			96			103
Home equity:
Key Community Bank		205			198			205			199			210
Other		15			13			16			18			21
Total home equity loans		220			211			221			217			231
Consumer other - Key Community Bank		3			2			3			3			2
Credit cards		4			4			11			13			11
Consumer other:
Marine		26			25			30			25			34
Other		1			2			1			1			2
Total consumer other		27			27			31			26			36
Total consumer loans		361			342			360			355			383
Total nonperforming loans (a)		508			541			652			650			674
Nonperforming loans held for sale		1			13			14			23			25
OREO		15			15			18			21			22
Other nonperforming assets		7			10			9			11			14
Total nonperforming assets	$	531		$	579		$	693		$	705		$	735

Accruing loans past due 90 days or more	$	71		$	90		$	80		$	83		$	78
Accruing loans past due 30 through 89 days		318			288			251			368			424
Restructured loans - accruing and nonaccruing (b)		338			349			311			294			320
Restructured loans included in nonperforming loans (b)		214			228			195			178			249
Nonperforming assets from discontinued operations - education lending business		25			23			19			15			20
Nonperforming loans to period-end portfolio loans		.93	%		1.01	%		1.23	%		1.24	%		1.28	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.97			1.08			1.30			1.34			1.39

(a) December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, and December 31, 2012 amounts exclude $16 million, $18 million, $19 million, $22 million, and $23 million, respectively, of purchased credit impaired loans acquired in July 2012.

(b) Restructured loans (i.e., troubled debt restructurings) are those for which Key, for reasons related to a borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.

Summary of Changes in Nonperforming Loans From Continuing Operations
(in millions)

	4Q13		3Q13		2Q13		1Q13		4Q12
Balance at beginning of period	$	541	$	652	$	650	$	674	$	653
Loans placed on nonaccrual status		129		161		160		278		288
Charge-offs		(66)		(78)		(74)		(91)		(104)
Loans sold		(19)		(61)		(5)		(42)		(44)
Payments		(46)		(43)		(36)		(83)		(78)
Transfers to OREO		(5)		(2)		(7)		(7)		(7)
Transfers to nonperforming loans held for sale		-		-		-		-		(8)
Transfers to other nonperforming assets		-		-		-		-		(1)
Loans returned to accrual status		(26)		(88)		(36)		(79)		(25)
Balance at end of period (a)	$	508	$	541	$	652	$	650	$	674

(a) December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, and December 31, 2012 amounts exclude $16 million, $18 million, $19 million, $22 million, and $23 million, respectively, of purchased credit impaired loans acquired in July 2012.


Summary of Changes in Nonperforming Loans Held For Sale From Continuing Operations
(in millions)

	4Q13		3Q13		2Q13		1Q13		4Q12
Balance at beginning of period	$	13	$	14	$	23	$	25	$	19
Transfers in		-		-		-		-		8
Net advances / (payments)		(1)		(1)		(1)		-		(1)
Loans sold		(11)		-		(8)		-		(1)
Valuation adjustments		-		-		-		(2)		-
Balance at end of period	$	1	$	13	$	14	$	23	$	25




Summary of Changes in Other Real Estate Owned, Net of Allowance, From Continuing Operations
(in millions)

	4Q13		3Q13		2Q13		1Q13		4Q12
Balance at beginning of period	$	15	$	18	$	21	$	22	$	29
Properties acquired - nonperforming loans		5		2		7		7		7
Valuation adjustments		(1)		(1)		(2)		(3)		(2)
Properties sold		(5)		(4)		(8)		(5)		(12)
Balance at end of period	$	14	$	15	$	18	$	21	$	22

Line of Business Results

(dollars in millions)

SOURCE KeyCorp

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Wedbush Raises KeyCorp's Price Target to $15 From $14	06-24	MT
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Stephens Adjusts Price Target on KeyCorp to $16 From $17, Keeps Overweight Rating	06-20	MT
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Goldman Sachs Adjusts Price Target on KeyCorp to $17.50 From $18.50, Keeps Buy Rating	06-03	MT
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Declaration of Voting Results by KeyCorp	05-10	CI
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Transcript : KeyCorp - Shareholder/Analyst Call	05-09
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Wall St sees more pain ahead for US mid-sized lenders after Q1 profits decline	04-19	RE
Fifth Third Bancorp's quarterly profit falls on lower interest income	04-19	RE
Argus Raises KeyCorp Price Target to $16 from $15	04-19	MT
RBC Lifts Price Target on KeyCorp to $16 From $15, Cites 'Solid Quarter,' Keeps Outperform Rating	04-19	MT
Wedbush Trims KeyCorp's PT to $15 From $16 After Mixed Quarter, Keeps Neutral Rating	04-19	MT
Stephens Raises KeyCorp Price Target to $17 from $15.50	04-18	MT
RBC Capital Raises Price Target on KeyCorp to $16 from $15	04-18	MT
Sector Update: Financial Stocks Edge Higher Pre-Bell Thursday	04-18	MT
Transcript : KeyCorp, Q1 2024 Earnings Call, Apr 18, 2024	04-18
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Stock Futures Rise Pre-Bell as Traders Await More Earnings; Asia, Europe Up	04-18	MT
Earnings Flash (KEY) KEYCORP Posts Q1 Revenue $1.53B, vs. Street Est of $1.51B	04-18	MT
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	1st Jan change	Capi.
JPMORGAN CHASE & CO.	+16.44%	569B
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BANK OF CHINA LIMITED	+28.52%	172B
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ROYAL BANK OF CANADA	+8.39%	150B
COMMONWEALTH BANK OF AUSTRALIA	+13.51%	143B

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KeyCorp : Reports Fourth Quarter 2013 Net Income of $229 Million, or $.26 per Common Share and Full Year Net Income of $847 Million, or $.93 per Common Share

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