KeyCorp Reports Fourth Quarter 2012 Net Income of $193 Million, or $.21 per Common Share and Full Year Net Income of $827

 KeyCorp Reports Fourth Quarter 2012 Net Income of $193 Million, or $.21 per
  Common Share and Full Year Net Income of $827 Million, or $.88 per Common
                                    Share

PR Newswire

CLEVELAND, Jan. 24, 2013

Net interest income up 7.8% from fourth quarter of 2011 to $607 million

Net interest margin expands 24 basis points to 3.37% from fourth quarter of
2011

Average total loans up 6.6% from fourth quarter of 2011 led by 20.7%
commercial and industrial loan growth

Average total deposits up 7.3% from fourth quarter of 2011

Net loan charge-offs decline to 44 basis points of average total loans

Ongoing Fit for Growth efficiency initiative charges of $16 million, or $.01
per share incurred during the quarter

CLEVELAND, Jan. 24, 2013 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced
fourth quarter net income from continuing operations attributable to Key
common shareholders of $193 million, or $.21 per common share, compared to
$214 million, or $.23 per common share for the third quarter of 2012, and $201
million, or $.21 per common share for the fourth quarter of 2011. During the
fourth quarter Key incurred $16 million, or $.01 per common share of costs
associated with its previously announced Fit for Growth efficiency initiative.
For 2012, net income from continuing operations attributable to Key common
shareholders was $827 million, or $.88 per common share, compared to $857
million, or $.92 per common share for 2011. For 2012, Key incurred $25
million, or $.02 per common share of costs associated with its Fit for Growth
efficiency initiative.

"We had a good finish to 2012," said Chairman and Chief Executive Officer Beth
E. Mooney. "Our full-year results reflect success in executing on our
strategies to grow loans, add additional payment capabilities to our product
line in the form of credit cards and improved mobile banking, and moving
forward on our efficiency initiative."

Mooney added: "Our momentum continued in the most recent quarter. The net
interest margin was up 14 basis points versus the prior quarter driven by
ongoing liability repricing and growth in both commercial and consumer loan
balances. We also experienced significant revenue growth in our Corporate Bank
from both our investment banking and commercial mortgage businesses."

"Progress continues on our efficiency initiative," said Mooney. "We ended the
year with run rate savings of approximately $60 million annualized. We also
continued to invest in the future revenue growth of our company by continuing
to upgrade our technology to meet the needs of our clients. We remain
committed to deliver on our goal of achieving an efficiency ratio in the range
of 60% to 65%."

FOURTH QUARTER 2012 FINANCIAL RESULTS

  oNet interest income of $607 million, up $29 million from prior quarter
  oNet interest margin of 3.37%, up 14 basis points from prior quarter due to
    lower funding costs and increased loan fees
  oContinued loan growth driven by 6% quarterly increase in commercial,
    financial and agricultural loans
  oAverage deposits increased 2% from prior quarter
  oNoninterest expense increased $22 million from prior quarter, of which $10
    million was associated with Fit for Growth efficiency initiative
  oProvision for loan and lease losses decreased $52 million from the third
    quarter of 2012
  oNet loan charge-offs decreased $51 million from prior quarter to .44% of
    average loans, the lowest level since third quarter of 2007
  oMaintained solid balance sheet with Tier 1 common equity of 11.16%

Selected Financial Highlights
dollars in millions, except                                  Change 4Q12 vs.
per share data
                                4Q12      3Q12      4Q11     3Q12      4Q11
Income (loss) from continuing
operations attributable to    $ 193     $ 214     $ 201      (9.8)  %  (4.0) %
Key common shareholders
Income (loss) from continuing
operations attributable to
Key common shareholders per     .21       .23       .21      (8.7)     —

common share
Return on average total
assets from continuing          .97   %   1.08  %   1.01  %  N/A       N/A
operations
Tier 1 common equity            11.16     11.30     11.26    N/A       N/A
Book value at period end      $ 10.78   $ 10.64   $ 10.09    1.3    %  6.8   %
Net interest margin (TE) from   3.37  %   3.23  %   3.13  %  N/A       N/A
continuing operations
TE = Taxable Equivalent, N/A
= Not Applicable
INCOME STATEMENT HIGHLIGHTS
Revenue
dollars in millions                                          Change 4Q12 vs.
                                4Q12      3Q12      4Q11     3Q12      4Q11
Net interest income (TE)      $ 607     $ 578     $ 563      5.0    %  7.8   %
Noninterest income              466       544       414      (14.3)    12.6
Total revenue                 $ 1,073   $ 1,122   $ 977      (4.4)  %  9.8   %
TE = Taxable Equivalent

Taxable-equivalent net interest income was $607 million for the fourth quarter
of 2012, and the net interest margin was 3.37%. These results compare to
taxable-equivalent net interest income of $563 million and a net interest
margin of 3.13% for the fourth quarter of 2011. The increase in net interest
income and the net interest margin was primarily a result of a change in
funding mix from the redemption of certain trust preferred securities,
maturity of long-term debt, and maturity of higher-costing certificates of
deposit during the past year.

Compared to the third quarter of 2012, taxable-equivalent net interest income
increased by $29 million, and the net interest margin improved by 14 basis
points. The improvement was driven largely by lower funding costs, resulting
from an increase in demand and non-time interest-bearing deposits, and
maturity of higher rate certificates of deposit. In addition, Key experienced
an increase in loan-related fees compared to the third quarter when the
Company wrote-off capitalized loan origination costs of $13 million as a
result of the early termination of leveraged leases.

Noninterest Income
dollars in millions                                         Change 4Q12 vs.
                                     4Q12    3Q12    4Q11   3Q12      4Q11
Trust and investment services      $ 104   $ 106   $ 104    (1.9)  %  N/M
income
Service charges on deposit           75      74      70     1.4       7.1    %
accounts
Operating lease income               16      17      25     (5.9)     (36.0)
Letter of credit and loan fees       59      52      56     13.5      5.4
Corporate-owned life insurance       36      26      35     38.5      2.9
income
Electronic banking fees              18      18      18     N/M       N/M
Gains on leased equipment            2       46      9      (95.7)    (77.8)
Insurance income                     14      13      11     7.7       27.3
Net gains (losses) from loan         57      39      27     46.2      111.1
sales
Net gains (losses) from principal    2       11      (8)    (81.8)    N/M
investing
Investment banking and capital       47      38      24     23.7      95.8
markets income (loss)
Other income                         36      104     43     (65.4)    (16.3)
          Total noninterest        $ 466   $ 544   $ 414    (14.3) %  12.6   %
          income
N/M = Not Meaningful

Key's noninterest income was $466 million for the fourth quarter of 2012,
compared to $414 million for the year-ago quarter. Net gains (losses) from
loan sales increased $30 million from the year-ago quarter due to an increase
in volume in Key's commercial mortgage banking business. Investment banking
and capital markets income also increased $23 million from one year ago. The
fourth quarter of 2011 included a $24 million charge resulting from VISA's
announcement of a planned increase to its litigation escrow deposit.

Compared to the third quarter of 2012, noninterest income decreased by $78
million. Other income declined $68 million, primarily due to a $54 million
gain associated with the redemption of certain trust preferred securities in
the third quarter of 2012. Gains on leased equipment also decreased $44
million, primarily related to the early terminations of leveraged leases in
the third quarter of 2012. These decreases in noninterest income were
partially offset by increases in net gains (losses) from loan sales of $18
million, corporate-owned life insurance income of $10 million, investment
banking and capital markets income of $9 million, and letter of credit and
loan fees of $7 million.

Noninterest Expense
dollars in millions                                  Change 4Q12 vs.
                              4Q12    3Q12    4Q11   3Q12      4Q11
Personnel expense           $ 433   $ 411   $ 387    5.4   %   11.9  %
Nonpersonnel expense          323     323     330    N/M       (2.1)
 Total noninterest expense  $ 756   $ 734   $ 717    3.0   %   5.4   %
N/M = Not Meaningful

Key's noninterest expense was $756 million for the fourth quarter of 2012,
compared to $717 million for the same period last year. Personnel expense
increased $46 million due to several factors – an increase in contract labor
for technology investments attributable to the previously announced credit
card portfolio acquisitions and related implementation of new payment systems
and merchant services processing; higher employee benefits due to an increase
in medical claims expense and an adjustment to the annual retirement
contribution accrual; and severance expense associated with Key's Fit for
Growth efficiency initiative. Nonpersonnel expense decreased $7 million from
one year ago. Operating lease expense, other real estate owned (OREO) and
marketing expense decreased from the year ago quarter. These declines were
partially offset by an increase of $11 million related to the amortization of
the intangible assets associated with the third quarter 2012 acquisitions of
the previously announced credit card portfolio as well as the branches in
Western New York.

Compared to the third quarter of 2012, noninterest expense increased by $22
million due to increases in personnel expense. Salaries were up due to the
previously discussed technology investment spend along with an increase in
employee benefits due to higher medical claims expense and an adjustment to
the annual retirement contribution accrual. Severance expense also increased
as a result of Key's Fit for Growth efficiency initiative. Nonpersonnel
expense in total was unchanged from the third quarter of 2012.

BALANCE SHEET HIGHLIGHTS

As of December 31, 2012, Key had total assets of $89.2 billion compared to
$87.0 billion at September 30, 2012, and $88.8 billion at December 31, 2011.

Average Loans
dollars in                                               Change 12-31-12 vs.
millions
                   12-31-12     9-30-12      12-31-11    9-30-12    12-31-11
Commercial,
financial and      $  22,436    $  21,473    $  18,590      4.5   %   20.7   %
agricultural ^
(a)
Other commercial      13,494       13,605       15,185      (.8)      (11.1)
loans
Total home            10,218       10,202       9,833       .2        3.9
equity loans
Other consumer        5,711        5,415        5,056       5.5       13.0
loans
       Total       $  51,859    $  50,695    $  48,664      2.3   %   6.6    %
       loans
(a) Commercial, financial and agricultural average balance for the three
months ended December 31, 2012 and September 30, 2012 includes $90 million and
$54 million of assets from commercial credit cards, respectively.

Average loans were $51.9 billion for the fourth quarter of 2012, an increase
of $3.2 billion compared to the fourth quarter of 2011. Commercial, financial
and agricultural loans grew by $3.8 billion over the year-ago quarter, with
strong growth across Key's corporate and middle market segments. In addition,
the third quarter 2012 credit card portfolio and Western New York branch
acquisitions added $1 billion of mostly consumer loans. This growth was
partially offset by managed declines in the commercial real estate portfolio,
the equipment lease portfolio, which included the early termination of certain
leveraged leases in the exit portfolio, and run-off of consumer loans in the
designated exit portfolio.

Compared to the third quarter of 2012, average loans increased by $1.2
billion. Much of the growth in loans was attributable to a $759 million
increase in commercial and industrial lending within the commercial, financial
and agricultural loan category. In addition, the full fourth quarter impact of
the third quarter 2012 credit card portfolio acquisitions added $257 million
to average loans.

Key originated approximately $10.2 billion in new or renewed lending
commitments to consumers and businesses during the fourth quarter of 2012 and
$37.8 billion for 2012.

Average Deposits
dollars in millions                                      Change 12-31-12 vs.
                        12-31-12   9-30-12    12-31-11   9-30-12    12-31-11
Non-time deposits       $ 56,229   $ 54,098   $ 48,800     3.9    %   15.2   %
Certificates of
deposits ($100,000 or     2,992      3,420      4,275      (12.5)     (30.0)
more)
Other time deposits       4,714      5,158      6,505      (8.6)      (27.5)
     Total deposits     $ 63,935   $ 62,676   $ 59,580     2.0    %   7.3    %
Cost of
interest-bearing          .47    %   .57    %   .82    %   N/A        N/A
deposits
N/A = Not Applicable

Average deposits totaled $63.9 billion for the fourth quarter of 2012, an
increase of $4.4 billion compared to the year-ago quarter. The growth reflects
an increase in demand deposits of $3.4 billion and the impact of Key's third
quarter 2012 Western New York branch acquisition, which added $2 billion of
mostly interest-bearing non-time deposits.

Compared to the third quarter of 2012, average deposits increased by $1.3
billion. The growth was largely due to an increase of $1 billion in demand
deposits.

ASSET QUALITY
dollars in                                                Change 4Q12 vs.
millions
                      4Q12        3Q12        4Q11        3Q12        4Q11
Net loan           $  58       $  109      $  105         (46.8)  %   (44.8) %
charge-offs
Net loan
charge-offs to        .44   %     .86   %     .86    %    N/A         N/A
average loans
Nonperforming
loans at period    $  674      $  653      $  727         3.2         (7.3)
end ^ (a)
Nonperforming
assets at period      735         718         859         2.4         (14.4)
end
Allowance for
loan and lease        888         888         1,004       —           (11.6) %
losses
Allowance for
loan and lease
losses to             132   %     136   %     138    %    N/A         N/A
nonperforming
loans
Provision
(credit) for       $  57       $  109      $  (22)        (47.7)  %   N/M
loan and lease
losses
(a) December 31, 2012 and September 30, 2012 amounts exclude $23 million and
$25 million, respectively, of purchased credit impaired loans acquired in July
2012.
N/A = Not
Applicable, N/M
= Not Meaningful

Key's provision for loan and lease losses was $57 million for the fourth
quarter of 2012, compared to $109 million for the third quarter of 2012 and a
credit of $22 million for the year-ago quarter. Key's allowance for loan and
lease losses was $888 million, or 1.68% of total period-end loans at December
31, 2012, compared to 1.73% at September 30, 2012, and 2.03% at December 31,
2011.

Net loan charge-offs for the fourth quarter of 2012 totaled $58 million, or
.44% of average loans. These results compare to $109 million, or .86% for the
third quarter of 2012, and $105 million, or .86% for the same period last
year. The third quarter of 2012 included $45 million of incremental net loan
charge-offs reported in accordance with updated regulatory guidance. Further
review of the loans subject to this updated regulatory guidance was performed
during the fourth quarter of 2012 and resulted in a partial home equity loan
charge-off reversal and reallocation of the updated charge-off amounts to
other consumer loan portfolios.

At December 31, 2012, Key's nonperforming loans totaled $674 million and
represented 1.28% of period-end portfolio loans, compared to 1.27% at
September 30, 2012 and 1.47% at December 31, 2011. Nonperforming loans at
December 31, 2012 included $46 million of loans related to the regulatory
guidance issued in the second and third quarters of 2012. Nonperforming assets
at December 31, 2012, totaled $735 million and represented 1.39% of portfolio
loans and OREO and other nonperforming assets, compared to 1.39% at September
30, 2012, and 1.73% at December 31, 2011.

CAPITAL

Key's estimated risk-based capital ratios included in the following table
continued to exceed all "well-capitalized" regulatory benchmarks at December
31, 2012.

Capital Ratios
                          12-31-12             9-30-12          12-31-11
Tier 1 common equity      11.16       %        11.30     %      11.26      %
^ (a), (b)
Tier 1 risk-based         11.94                12.10            12.99
capital ^ (a)
Total risk based          14.86                15.17            16.51
capital ^ (a)
Tangible common
equity to tangible        10.15                10.39            9.88
assets ^ (b)
(a) 12-31-12 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, 2012, Key's estimated Tier 1
common equity and Tier 1 risk-based capital ratios stood at 11.16% and 11.94%,
respectively. In addition, the tangible common equity ratio was 10.15% at
December 31, 2012.

Summary of Changes in Common Shares Outstanding
in thousands                                                Change 4Q12 vs.
                             4Q12       3Q12      4Q11      3Q12      4Q11
Shares outstanding at        936,195    945,473   952,808   (1.0)  %  (1.7)  %
beginning of period
Common shares repurchased    (10,530)   (9,639)   —         N/M       N/M
Shares reissued (returned)
under employee benefit       104        361       200       (71.2)    (48.0)
plans
     Shares outstanding at   925,769    936,195   953,008   (1.1)  %  (2.9)  %
     end of period
N/M = Not Meaningful

As previously reported and as authorized by Key's Board of Directors and
pursuant to Key's 2012 capital plan submitted to the Federal Reserve and not
objected to by the Federal Reserve, Key had authority to repurchase up to $344
million of its Common Shares for general repurchase and repurchases in
connection with employee elections under its compensation and benefit
programs.

During the fourth quarter of 2012, Key completed $89 million of Common Share
repurchases. Following completion of these repurchases, Key has remaining
authority to repurchase up to $88 million of its Common Shares for general
repurchase and repurchases in connection with employee elections under its
compensation and benefit programs. Key's existing repurchase program does not
have an expiration date. Common Share repurchases under the current
authorization are expected to be executed through the first quarter of 2013.

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 4Q12 vs.
                                  4Q12     3Q12     4Q11    3Q12      4Q11
Revenue from continuing
operations (TE)
Key Community Bank              $ 567    $ 576    $ 546     (1.6)  %  3.8    %
Key Corporate Bank                424      392      412     8.2       2.9
Other segments                    86       160      43      (46.3)    100.0
Total segments                    1,077    1,128    1,001   (4.5)     7.6
Reconciling items                 (4)      (6)      (24)    N/M       N/M
Total                           $ 1,073  $ 1,122  $ 977     (4.4)  %  9.8    %
Income (loss) from continuing
operations attributable to Key
Key Community Bank              $ 31     $ (23)   $ 40      N/M       (22.5) %
Key Corporate Bank                130      118      156     10.2   %  (16.7)
Other segments                    43       102      23      (57.8)    87.0
Total segments                    204      197      219     3.6       (6.8)
Reconciling items                 (5)      22       (12)    N/M       N/M
Total                           $ 199    $ 219    $ 207     (9.1)  %  (3.9)  %
TE = Taxable equivalent, N/M =
Not Meaningful

Key Community Bank
dollars in millions                                         Change 4Q12 vs.
                               4Q12      3Q12      4Q11     3Q12      4Q11
Summary of operations
Net interest income (TE)     $ 370     $ 365     $ 365      1.4    %  1.4    %
Noninterest income             197       211       181      (6.6)     8.8
     Total revenue (TE)        567       576       546      (1.6)     3.8
Provision (credit) for loan    23        120       30       (80.8)    (23.3)
and lease losses
Noninterest expense            529       512       476      3.3    %  11.1
     Income (loss) before      15        (56)      40       N/M       (62.5)
     income taxes (TE)
Allocated income taxes
(benefit) and TE               (16)      (33)      —        N/M       N/M
adjustments
     Net income (loss)       $ 31      $ (23)    $ 40       N/M       (22.5) %
     attributable to Key
Average balances
Loans and leases             $ 29,252  $ 28,386  $ 26,406   3.1    %  10.8   %
Total assets                   33,086    32,136    29,867   3.0       10.8
Deposits                       50,123    49,537    48,076   1.2       4.3
Assets under management at   $ 22,334  $ 21,988  $ 17,938   1.6    %  24.5   %
period end
TE = Taxable Equivalent,
N/M = Not Meaningful

Additional Key Community
Bank Data
dollars in millions                                         Change 4Q12 vs.
                            4Q12       3Q12       4Q11      3Q12      4Q11
Noninterest income
Trust and investment      $ 50       $ 51       $ 45        (2.0)  %  11.1   %
services income
Service charges on          61         62         59        (1.6)     3.4
deposit accounts
Electronic banking fees     18         18         18        —         —
Other noninterest income    68         80         59        (15.0)    15.3
    Total noninterest     $ 197      $ 211      $ 181       (6.6)  %  8.8    %
    income
Average deposit balances
NOW and money market      $ 25,765   $ 25,072   $ 22,524    2.8    %  14.4   %
deposit accounts
Savings deposits            2,403      2,373      1,959     1.3       22.7
Certificates of deposit     2,623      2,941      3,639     (10.8)    (27.9)
($100,000 or more)
Other time deposits         4,703      5,137      6,491     (8.4)     (27.5)
Deposits in foreign         355        344        393       3.2       (9.7)
office
Noninterest-bearing         14,274     13,670     13,070    4.4       9.2
deposits
    Total deposits        $ 50,123   $ 49,537   $ 48,076    1.2    %  4.3    %
Home equity loans
Average balance           $ 9,807    $ 9,734    $ 9,280
Weighted-average
loan-to-value ratio (at     70     %   71     %   70     %
date of origination)
Percent first lien          55         54         53
positions
Other data
Branches                    1,088      1,087      1,058
Automated teller            1,611      1,620      1,579
machines

Key Community Bank Summary of Operations

  oSix consecutive quarters of average loan growth
  oCore deposits up $4.9 billion, or 12.8% from the prior year and $1.3
    billion, or 3.2% from the prior quarter

Key Community Bank recorded net income attributable to Key of $31 million for
the fourth quarter of 2012, compared to $40 million for the year-ago quarter.

Taxable-equivalent net interest income increased by $5 million, or 1.4% from
the fourth quarter of 2011. Average loans and leases grew 10.8% while average
deposits increased 4.3% from one year ago. The Western New York branch and
credit card portfolio acquisitions contributed $33 million to net interest
income, $1 billion to average loans and leases, and $2 billion to deposits.
The positive contribution to net interest income from the acquisitions was
partially offset by a lower earnings credit applied to deposits in the current
period compared to the same period one year ago.

Noninterest income increased by $16 million, or 8.8% from the year-ago
quarter. Credit card and merchant fees increased $9 million due to the
acquisition of the credit card portfolio in the third quarter of 2012. Trust
and investment services income increased $5 million, primarily due to an
increase in assets under management resulting from market appreciation and
increased production. Service charges on deposit accounts also increased $2
million.

The provision for loan and lease losses decreased by $7 million, or 23.3%
compared to the fourth quarter of 2011, primarily as a result of lower net
loan charge-offs from the same period one year ago. Net loan charge-offs were
$12 million for the fourth quarter of 2012, down $59 million from the same
period one year ago.

Noninterest expense increased by $53 million, or 11.1% from the year-ago
quarter. Key's third quarter 2012 Western New York branch and credit card
portfolio acquisitions contributed $30 million to the increase in noninterest
expense spread across several expense categories, including personnel, loan
servicing and intangible amortization expense, which increased $11 million.
Personnel expense, excluding the impact of acquisitions, was $8 million higher
than one year ago. Various other miscellaneous expenses also increased from
the same period one year ago.

Key Corporate Bank
dollars in millions                                          Change 4Q12 vs.
                                4Q12      3Q12      4Q11     3Q12     4Q11
Summary of operations
Net interest income (TE)      $ 188     $ 182     $ 177      3.3   %  6.2    %
Noninterest income              236       210       235      12.4     .4
      Total revenue (TE)        424       392       412      8.2      2.9
Provision (credit) for loan     11        (3)       (61)     N/M      N/M
and lease losses
Noninterest expense             206       209       228      (1.4)    (9.6)
      Income (loss) before      207       186       245      11.3     (15.5)
      income taxes (TE)
Allocated income taxes and      77        68        89       13.2     (13.5)
TE adjustments
      Net income (loss)       $ 130     $ 118     $ 156      10.2  %  (16.7) %
      attributable to Key
Average balances
Loans and leases              $ 19,477  $ 18,886  $ 17,784   3.1   %  9.5    %
Loans held for sale             538       441       356      22.0     51.1
Total assets                    23,461    22,914    21,811   2.4      7.6
Deposits                        13,672    12,873    11,162   6.2      22.5
Assets under management at    $ 28,340  $ 27,682  $ 33,794   2.4   %  (16.1) %
period end
TE = Taxable Equivalent, N/M
= Not Meaningful

Additional Key
Corporate Bank
Data
dollars in                                              Change 4Q12 vs.
millions
                        4Q12       3Q12       4Q11      3Q12         4Q11
Noninterest income
Trust and
investment           $  55      $  56      $  58        (1.8)   %    (5.2)   %
services income
Investment banking
and debt placement      109        82         62        32.9         75.8
fees ^ (a)
Operating lease
income and other        18         20         26        (10.0)       (30.8)
leasing gains ^
(b)
Corporate services      30         27         44        11.1         (31.8)
income ^ (c)
Other noninterest       24         25         45        (4.0)        (46.7)
income
     Total
     noninterest     $  236     $  210     $  235       12.4    %    .4      %
     income
     Included in "Investment banking and capital markets income (loss),"
(a)  "Net gains (losses) from loan sales," and "Letter of credit and loan
     fees" on the Consolidated Statements of Income.
(b)  Included in "Operating lease income" and "Gains on leased equipment" on
     the Consolidated Statements of Income.
     Included in "Service charges on deposit accounts," "Letter of credit
(c)  and loan fees," and "Investment banking and capital markets income
     (loss)" on the Consolidated Statements of Income.

Key Corporate Bank Summary of Operations

  oInvestment banking and debt placement fees were $109 million for the
    fourth quarter of 2012, up $47 million, or 75.8% from the prior year and
    up $27 million, or 32.9% from the prior quarter
  oAverage loan balances up 9.5% from the prior year and 3.1% from the prior
    quarter
  oAverage deposits up 22.5% from the prior year and 6.2% from the prior
    quarter

Key Corporate Bank recorded net income attributable to Key of $130 million for
the fourth quarter of 2012, compared to $156 million for the same period one
year ago.

Taxable-equivalent net interest income increased by $11 million, or 6.2%
compared to the fourth quarter of 2011. Average earning assets increased $1.7
billion, or 8.9% from the year-ago quarter, and average deposit balances
increased $2.5 billion, or 22.5% from the year-ago quarter, contributing to
the improvement in net interest income.

Noninterest income increased by $1 million, or .4% from the fourth quarter of
2011. Net gains (losses) from loan sales from commercial mortgage banking
activities in the Real Estate Capital line of business increased $30 million.
This increase was offset by a $23 million decline in other income due to gains
realized in the fourth quarter of 2011 related to the disposition of certain
investments held by the Real Estate Capital line of business and a $7 million
decrease in operating lease revenue compared to the year-ago quarter.

The provision for loan and lease losses in the fourth quarter of 2012 was a
charge of $11 million compared to a credit of $61 million for the same period
one year ago. Net loan charge-offs were $21 million for the fourth quarter of
2012, up $9 million from the same period one year ago.

Noninterest expense decreased by $22 million, or 9.6% from the fourth quarter
of 2011. Contributing to the decline in noninterest expense were decreases in
personnel expense of $7 million, operating lease expense of $4 million, and
other miscellaneous expenses of $8 million. In addition, the provision
(credit) for losses on lending-related commitments was a credit of $16 million
compared to a credit of $10 million one year ago.

Other Segments

Other Segments consist of Corporate Treasury, Key's Principal Investing unit,
and various exit portfolios. Other Segments generated net income attributable
to Key of $43 million for the fourth quarter of 2012, compared to net income
attributable to Key of $23 million for the same period last year. These
results were primarily attributable to increases in net interest income of $31
million and net gains (losses) from principal investing of $10 million,
partially offset by an increase in the loan and lease loss provision of $16
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  $89.2 billion at December 31,
2012.

Key provides deposit, lending, cash management and investment services to
individuals, small and mid-sized businesses in 14 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.

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, earnings outlook,
asset quality trends and profitability. 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 Annual
Report on Form 10-K for the year ended December 31, 2011, its Quarterly
Reports on Form 10-Q for the periods ended March 31, 2012, June 30, 2012, and
September 30, 2012, each of which have been filed with the Securities and
Exchange Commission and are available on Key's website (www.key.com/ir) and on
the Securities and Exchange Commission's website (www.sec.gov).
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/ir at 9:00 a.m. ET, on Thursday, January 24, 2013. An
audio replay of the call will be available through January 31, 2013.

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.

*****

Financial Highlights
(dollars in millions, except per share amounts)
                                            Three months ended
                                            12-31-12    9-30-12     12-31-11
Summary of operations
 Net interest income (TE)                   $ 607       $ 578       $ 563
 Noninterest income                           466         544         414
               Total revenue (TE)             1,073       1,122       977
 Provision (credit) for loan and lease        57          109         (22)
 losses
 Noninterest expense                          756         734         717
 Income (loss) from continuing operations     199         219         207
 attributable to Key
 Income (loss) from discontinued              4           —           (7)
 operations, net of taxes ^ (b)
 Net income (loss) attributable to Key        203         219         200
 Income (loss) from continuing operations   $ 193       $ 214       $ 201
 attributable to Key common shareholders
 Income (loss) from discontinued              4           —           (7)
 operations, net of taxes ^ (b)
 Net income (loss) attributable to Key        197         214         194
 common shareholders
Per common share
 Income (loss) from continuing operations   $ .21       $ .23       $ .21
 attributable to Key common shareholders
 Income (loss) from discontinued              —           —           (.01)
 operations, net of taxes ^ (b)
 Net income (loss) attributable to Key        .21         .23         .20
 common shareholders ^ (e)
 Income (loss) from continuing operations
 attributable to Key common shareholders —    .21         .23         .21
 assuming dilution
 Income (loss) from discontinued
 operations, net of taxes — assuming          —           —           (.01)
 dilution ^ (b)
 Net income (loss) attributable to Key
 common shareholders — assuming dilution      .21         .23         .20
 ^(e)
 Cash dividends paid                          .05         .05         .03
 Book value at period end                     10.78       10.64       10.09
 Tangible book value at period end            9.67        9.54        9.11
 Market price at period end                   8.42        8.74        7.69
Performance ratios
 From continuing operations:
 Return on average total assets               .97    %    1.08   %    1.01   %
 Return on average common equity              7.70        8.57        8.26
 Return on average tangible common equity ^   8.59        9.56        9.15
 (a)
 Net interest margin (TE)                     3.37        3.23        3.13
 Cash efficiency ratio ^ (a)                  69.34       64.62       73.29
 From consolidated operations:
 Return on average total assets               .93    %    1.01   %    .91    %
 Return on average common equity              7.86        8.57        7.97
 Return on average tangible common equity ^   8.77        9.56        8.83
 (a)
 Net interest margin (TE)                     3.29        3.14        3.04
 Loan to deposit ^ (d)                        85.77       86.24       87.00
Capital ratios at period end
 Key shareholders' equity to assets           11.51  %    11.79  %    11.16  %
 Tangible Key shareholders' equity to         10.48       10.73       10.21
 tangible assets
 Tangible common equity to tangible assets    10.15       10.39       9.88
 ^ (a)
 Tier 1 common equity ^ (a), (c)              11.16       11.30       11.26
 Tier 1 risk-based capital ^ (c)              11.94       12.10       12.99
 Total risk-based capital ^ (c)               14.86       15.17       16.51
 Leverage ^ (c)                               11.37       11.37       11.79
Asset quality — from continuing operations
 Net loan charge-offs                       $ 58        $ 109       $ 105
 Net loan charge-offs to average loans        .44    %    .86    %    .86    %
 Allowance for loan and lease losses to       384.85      204.78      241.01
 annualized net loan charge-offs
 Allowance for loan and lease losses        $ 888       $ 888       $ 1,004
 Allowance for credit losses                  917         931         1,049
 Allowance for loan and lease losses to       1.68   %    1.73   %    2.03   %
 period-end loans
 Allowance for credit losses to period-end    1.74        1.81        2.12
 loans
 Allowance for loan and lease losses to       131.75      135.99      138.10
 nonperforming loans
 Allowance for credit losses to               136.05      142.57      144.29
 nonperforming loans
 Nonperforming loans at period end ^ (f)    $ 674       $ 653       $ 727
 Nonperforming assets at period end           735         718         859
 Nonperforming loans to period-end            1.28   %    1.27   %    1.47   %
 portfolio loans
 Nonperforming assets to period-end
 portfolio loans plus OREO and other          1.39        1.39        1.73
 nonperforming assets
Trust and brokerage assets
 Assets under management                    $ 50,674    $ 49,670    $ 51,732
 Nonmanaged and brokerage assets              25,197      24,220      30,639
Other data
 Average full-time equivalent employees       15,589      15,833      15,381
 Branches                                     1,088       1,087       1,058
Taxable-equivalent adjustment               $ 6         $ 6         $ 6

Financial Highlights (continued)
(dollars in millions, except per share amounts)
                                          Twelve months ended
                                          12-31-12            12-31-11
Summary of operations
      Net interest income (TE)            $   2,288           $   2,292
      Noninterest income                      1,967               1,808
                   Total revenue (TE)         4,255               4,100
      Provision (credit) for loan and         229                 (60)
      lease losses
      Noninterest expense                     2,907               2,790
      Income (loss) from continuing           849                 964
      operations attributable to Key
      Income (loss) from discontinued         9                   (44)
      operations, net of taxes ^ (b)
      Net income (loss) attributable to       858                 920
      Key
      Income (loss) from continuing
      operations attributable to Key      $   827             $   857
      common shareholders
      Income (loss) from discontinued         9                   (44)
      operations, net of taxes ^ (b)
      Net income (loss) attributable to       836                 813
      Key common shareholders
Per common share
      Income (loss) from continuing
      operations attributable to Key      $   .88             $   .92
      common shareholders
      Income (loss) from discontinued         .01                 (.05)
      operations, net of taxes ^ (b)
      Net income (loss) attributable to       .89                 .87
      Key common shareholders ^ (e)
      Income (loss) from continuing
      operations attributable to Key          .88                 .92
      common shareholders — assuming
      dilution
      Income (loss) from discontinued
      operations, net of taxes — assuming     .01                 (.05)
      dilution ^ (b)
      Net income (loss) attributable to
      Key common shareholders — assuming      .89                 .87
      dilution ^(e)
      Cash dividends paid                     .18                 .10
Performance ratios
      From continuing operations:
      Return on average total assets          1.05     %          1.17     %
      Return on average common equity         8.39                9.26
      Net interest margin (TE)                3.21                3.16
      From consolidated operations:
      Return on average total assets          .99      %          1.04     %
      Return on average common equity         8.48                8.79
      Net interest margin (TE)                3.13                3.09
Asset quality — from continuing
operations
      Net loan charge-offs                $   345             $   541
      Net loan charge-offs to average         .69      %          1.11     %
      loans
Other data
      Average full-time equivalent            15,589              15,381
      employees
Taxable-equivalent adjustment             $   24              $   25
(a) 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.
(b) 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. As a result of these decisions, Key has accounted for these
businesses as discontinued operations.
(c) 12-31-12 ratio is estimated.
(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) Earnings per share may not foot due to rounding.
(f) December 31, 2012 and September 30, 2012 amounts exclude $23 million and
$25 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," and "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 performance measure removes the impact of Key's
intangible asset amortization from the calculation. Management believes this
ratio provides greater consistency and comparability between Key's results and
those of its peer banks. Additionally, this ratio is used by analysts and
investors to assist in the development of their 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
                                            12-31-12    9-30-12     12-31-11
Tangible common equity to tangible assets
at period end
 Key shareholders' equity (GAAP)            $ 10,271    $ 10,251    $ 9,905
 Less:   Intangible assets ^(a)               1,027       1,031       934
         Preferred Stock, Series A            291         291         291
         Tangible common equity (non-GAAP)  $ 8,953     $ 8,929     $ 8,680
 Total assets (GAAP)                        $ 89,236    $ 86,950    $ 88,785
 Less:   Intangible assets ^(a)               1,027       1,031       934
         Tangible assets (non-GAAP)         $ 88,209    $ 85,919    $ 87,851
 Tangible common equity to tangible assets    10.15  %    10.39  %    9.88   %
 ratio (non-GAAP)
Tier 1 common equity at period end
 Key shareholders' equity (GAAP)            $ 10,271    $ 10,251    $ 9,905
 Qualifying capital securities                339         339         1,046
 Less:   Goodwill                             979         979         917
         Accumulated other comprehensive      (172)       (109)       (72)
         income (loss) ^ (b)
         Other assets ^ (c)                   117         121         72
         Total Tier 1 capital (regulatory)    9,686       9,599       10,034
 Less:   Qualifying capital securities        339         339         1,046
         Preferred Stock, Series A            291         291         291
         Total Tier 1 common equity         $ 9,056     $ 8,969     $ 8,697
         (non-GAAP)
 Net risk-weighted assets (regulatory) ^    $ 81,150    $ 79,363    $ 77,214
 (c), (d)
 Tier 1 common equity ratio (non-GAAP) ^      11.16  %    11.30  %    11.26  %
 (d)
Pre-provision net revenue
 Net interest income (GAAP)                 $ 601       $ 572       $ 557
 Plus:   Taxable-equivalent adjustment        6           6           6
         Noninterest income                   466         544         414
 Less:   Noninterest expense                  756         734         717
 Pre-provision net revenue from continuing  $ 317       $ 388       $ 260
 operations (non-GAAP)

GAAP to Non-GAAP Reconciliations (continued)
(dollars in millions)
                                            Three months ended
                                            12-31-12    9-30-12     12-31-11
Average tangible common equity
 Average Key shareholders' equity (GAAP)    $ 10,261    $ 10,222    $  9,943
 Less:     Intangible assets (average) ^      1,030       1,026        934
           (a)
           Preferred Stock, Series A          291         291          291
           (average)
           Average tangible common equity   $ 8,940     $ 8,905     $  8,718
           (non-GAAP)
Return on average tangible common equity
from continuing operations
 Net income (loss) from continuing
 operations attributable to Key common      $ 193       $ 214       $  201
 shareholders (GAAP)
 Average tangible common equity (non-GAAP)    8,940       8,905        8,718
 Return on average tangible common equity     8.59   %    9.56   %     9.15  %
 from continuing operations (non-GAAP)
Return on average tangible common equity
consolidated
 Net income (loss) attributable to Key      $ 197       $ 214       $  194
 common shareholders (GAAP)
 Average tangible common equity (non-GAAP)    8,940       8,905        8,718
 Return on average tangible common equity     8.77   %    9.56   %     8.83  %
 consolidated (non-GAAP)
Cash efficiency ratio
 Noninterest expense (GAAP)                 $ 756       $ 734       $  717
 Less:     Intangible asset amortization on   8           6            —
           credit cards
           Other intangible asset             4           3            1
           amortization
           Adjusted noninterest expense     $ 744       $ 725       $  716
           (non-GAAP)
 Net interest income (GAAP)                 $ 601       $ 572       $  557
 Plus:     Taxable-equivalent adjustment      6           6            6
           Noninterest income                 466         544          414
           Total taxable-equivalent revenue $ 1,073     $ 1,122     $  977
           (non-GAAP)
 Cash efficiency ratio (non-GAAP)             69.34  %    64.62  %     73.29 %
                                            Three months ended
                                            12-31-12    9-30-12
Tier 1 common equity under Basel III
(estimates)
 Tier 1 common equity under Basel I         $ 9,056     $ 8,969
 Adjustments from Basel I to Basel III:
           Cumulative other comprehensive     (197)       (145)
           income ^ (e)
           Deferred tax assets ^ (f)          (80)        (72)
           Tier 1 common equity anticipated $ 8,779     $ 8,752
           under Basel III
 Total risk-weighted assets under Basel I   $ 81,150    $ 79,363
 Adjustments from Basel I to Basel III:
           Market risk impact                 1,225       579
           Loan commitments less than one     952         1,127
           year
           Residential mortgage and home      1,855       1,855
           equity loans
           Other                              1,173       1,119
           Total risk-weighted assets under $ 86,355    $ 84,043
           Basel III ^ (g)
 Tier 1 common equity ratio under Basel III   10.17  %    10.41  %

(a) Three months ended December 31, 2012 and September 30, 2012 exclude $123
million and $130 million, respectively, of period end purchased credit card
receivable intangible assets. Three months ended December 31, 2012 and
September 30, 2012 exclude $126 million and $86 million, respectively, of
average ending purchased credit card receivable intangible assets.
(b) 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.
(c) 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, 2012, September 30, 2012, and December 31, 2011.
(d) 12-31-12 amount is estimated.
(e) Includes AFS mark-to-market, cash flow hedges on items recognized at fair
value on the balance sheet, and defined benefit pension liability.
(f) Deferred tax asset subject to future taxable income for realization,
primarily tax credit carryforwards.
(g) The amount of regulatory capital and risk-weighted assets estimated under
Basel III (as fully phased-in on January 1, 2019) is based upon the federal
banking agencies' notice of proposed rulemaking, which implement Basel III and
the Standardized Approach.
GAAP = U.S. generally accepted accounting principles

Consolidated Balance Sheets
(dollars in millions)
                                             12-31-12    9-30-12     12-31-11
Assets
 Loans                                       $ 52,822    $ 51,419    $ 49,575
 Loans held for sale                           599         628         728
 Securities available for sale                 12,094      11,962      16,012
 Held-to-maturity securities                   3,931       4,153       2,109
 Trading account assets                        605         663         623
 Short-term investments                        3,940       2,208       3,519
 Other investments                             1,064       1,106       1,163
    Total earning assets                       75,055      72,139      73,729
 Allowance for loan and lease losses           (888)       (888)       (1,004)
 Cash and due from banks                       585         974         694
 Premises and equipment                        965         942         944
 Operating lease assets                        288         290         350
 Goodwill                                      979         979         917
 Other intangible assets                       171         182         17
 Corporate-owned life insurance                3,333       3,309       3,256
 Derivative assets                             693         771         945
 Accrued income and other assets               2,801       2,871       3,077
 Discontinued assets                           5,254       5,381       5,860
    Total assets                             $ 89,236    $ 86,950    $ 88,785
Liabilities
 Deposits in domestic offices:
    NOW and money market deposit accounts    $ 32,380    $ 30,573    $ 27,954
    Savings deposits                           2,433       2,393       1,962
    Certificates of deposit ($100,000 or       2,879       3,226       4,111
    more)
    Other time deposits                        4,575       4,941       6,243
    Total interest-bearing deposits            42,267      41,133      40,270
    Noninterest-bearing deposits               23,319      22,486      21,098
 Deposits in foreign office —                  407         569         588
 interest-bearing
    Total deposits                             65,993      64,188      61,956
 Federal funds purchased and securities
                                               1,609       1,746       1,711
 sold under repurchase agreements
 Bank notes and other short-term borrowings    287         388         337
 Derivative liabilities                        584         657         1,026
 Accrued expense and other liabilities         1,425       1,238       1,763
 Long-term debt                                6,847       6,119       9,520
 Discontinued liabilities                      2,182       2,335       2,550
    Total liabilities                          78,927      76,671      78,863
Equity
 Preferred stock, Series A                     291         291         291
 Common shares                                 1,017       1,017       1,017
 Capital surplus                               4,126       4,118       4,194
 Retained earnings                             6,913       6,762       6,246
 Treasury stock, at cost                       (1,952)     (1,868)     (1,815)
 Accumulated other comprehensive income        (124)       (69)        (28)
 (loss)
    Key shareholders' equity                   10,271      10,251      9,905
 Noncontrolling interests                      38          28          17
    Total equity                               10,309      10,279      9,922
Total liabilities and equity                 $ 89,236    $ 86,950    $ 88,785
Common shares outstanding (000)                925,769     936,195     953,008

Consolidated Statements of Income
(dollars in millions, except per share amounts)
                       Three months ended                Twelve months ended
                       12-31-12   9-30-12    12-31-11    12-31-12    12-31-11
Interest income
     Loans             $ 563      $ 538      $ 542       $ 2,155     $ 2,206
     Loans held for      5          5          4           20          14
     sale
     Securities
     available for       85         93         128         399         583
     sale
     Held-to-maturity    19         21         9           69          12
     securities
     Trading account     3          4          5           18          26
     assets
     Short-term          2          1          1           6           6
     investments
     Other investments   11         9          9           38          42
         Total
         interest        688        671        698         2,705       2,889
         income
Interest expense
     Deposits            49         60         85          257         390
     Federal funds
     purchased and
     securities sold     1          1          1           4           5
     under repurchase
     agreements
     Bank notes and
     other short-term    2          1          2           7           11
     borrowings
     Long-term debt      35         37         53          173         216
         Total
         interest        87         99         141         441         622
         expense
Net interest income      601        572        557         2,264       2,267
Provision (credit) for   57         109        (22)        229         (60)
loan and lease losses
Net interest income
(expense) after          544        463        579         2,035       2,327
provision for loan and
lease losses
Noninterest income
     Trust and
     investment          104        106        104         421         434
     services income
     Service charges
     on deposit          75         74         70          287         281
     accounts
     Operating lease     16         17         25          75          122
     income
     Letter of credit    59         52         56          221         213
     and loan fees
     Corporate-owned
     life insurance      36         26         35          122         121
     income
     Net securities
     gains (losses) ^    —          —          —           —           1
     (a)
     Electronic          18         18         18          72          114
     banking fees
     Gains on leased     2          46         9           111         25
     equipment
     Insurance income    14         13         11          50          53
     Net gains
     (losses) from       57         39         27          150         75
     loan sales
     Net gains
     (losses) from       2          11         (8)         72          78
     principal
     investing
     Investment
     banking and         47         38         24          165         134
     capital markets
     income (loss)
     Other income        36         104        43          221         157
         Total
         noninterest     466        544        414         1,967       1,808
         income
Noninterest expense
     Personnel           433        411        387         1,618       1,520
     Net occupancy       69         65         66          260         258
     Operating lease     12         13         18          57          94
     expense
     Computer            39         43         42          166         166
     processing
     Business services
     and professional    55         49         57          193         186
     fees
     FDIC assessment     8          7          7           31          52
     OREO expense, net   1          1          5           15          13
     Equipment           27         27         25          107         103
     Marketing           20         18         24          68          60
     Provision
     (credit) for
     losses on           (14)       (8)        (11)        (16)        (28)
     lending-related
     commitments
     Intangible asset
     amortization on     8          6          —           14          —
     credit cards
     Other intangible
     asset               4          3          1           9           4
     amortization
     Other expense       94         99         96          385         362
         Total
         noninterest     756        734        717         2,907       2,790
         expense
Income (loss) from
continuing operations    254        273        276         1,095       1,345
before income taxes
     Income taxes        55         52         69          239         369
Income (loss) from       199        221        207         856         976
continuing operations
     Income (loss)
     from discontinued   4          —          (7)         9           (44)
     operations, net
     of taxes
Net income (loss)        203        221        200         865         932
     Less: Net income
     (loss)
     attributable to     —          2          —           7           12
     noncontrolling
     interests
Net income (loss)      $ 203      $ 219      $ 200       $ 858       $ 920
attributable to Key
Income (loss) from
continuing operations  $ 193      $ 214      $ 201       $ 827       $ 857
attributable to Key
common shareholders
Net income (loss)
attributable to Key      197        214        194         836         813
common shareholders
Per common share
Income (loss) from
continuing operations  $ .21      $ .23      $ .21       $ .88       $ .92
attributable to Key
common shareholders
Income (loss) from
discontinued             —          —          (.01)       .01         (.05)
operations, net of
taxes
Net income (loss)
attributable to Key      .21        .23        .20         .89         .87
common shareholders ^
(b)
Per common share —
assuming dilution
Income (loss) from
continuing operations  $ .21      $ .23      $ .21       $ .88       $ .92
attributable to Key
common shareholders
Income (loss) from
discontinued             —          —          (.01)       .01         (.05)
operations, net of
taxes
Net income (loss)
attributable to Key      .21        .23        .20         .89         .87
common shareholders ^
(b)
Cash dividends
declared per common    $ .05      $ .05      $ .03       $ .18       $ .10
share
Weighted-average
common shares            925,725    936,223    948,658     938,941     931,934
outstanding (000)
Weighted-average
common shares and
potential common         930,382    940,764    951,684     943,259     935,801
shares outstanding
(000) ^ (c)
     For the three months ended December 31, 2012, September 30, 2012, and
(a)  December 31, 2011, 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 2012                          Third Quarter 2012                           Fourth Quarter 2011
                      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        $ 22,436 ^(h) $   213          3.77    %     $ 21,473 ^(h) $   203          3.76    %     $ 18,590   $   183           3.90   %
 agricultural
 Real estate —          7,555           82           4.35            7,463           83           4.40            8,090        92            4.48
 commercial mortgage
 Real estate —          1,070           14           4.94            1,116           12           4.55            1,380        16            4.68
 construction
 Commercial lease       4,869           49           4.01            5,026           39           3.13            5,715        65            4.58
 financing
   Total commercial     35,930          358          3.96            35,078          337          3.83            33,775       356           4.19
   loans
 Real estate —
 residential            2,164           26           4.70            2,092           25           4.80            1,918        24            5.15
 mortgage
 Home equity:
   Key Community        9,807           98           3.99            9,734           99           4.02            9,280        96            4.10
   Bank
   Other                411             9            8.23            468             9            7.73            553          11            7.68
   Total home equity    10,218          107          4.16            10,202          108          4.19            9,833        107           4.30
   loans
 Consumer other —       1,339           32           9.63            1,297           32           9.65            1,191        30            9.62
 Key Community Bank
 Credit cards           714             23           13.15           432             17           15.38           —            —             —
 Consumer other:
   Marine               1,403           22           6.16            1,493           22           6.28            1,820        29            6.35
   Other                91              1            8.25            101             3            8.02            127          2             7.87
   Total consumer       1,494           23           6.29            1,594           25           6.39            1,947        31            6.44
   other
   Total consumer       15,929          211          5.30            15,617          207          5.26            14,889       192           5.12
   loans
   Total loans          51,859          569          4.37            50,695          544          4.27            48,664       548           4.47
 Loans held for sale    618             5            3.47            532             5            3.28            440          4             3.36
 Securities
 available for sale     11,980          84           2.95            12,608          94           3.07            16,790       128           3.16
 ^ (b), (e)
 Held-to-maturity       4,036           19           1.94            4,251           21           1.94            1,648        9             2.12
 securities ^ (b)
 Trading account        606             3            1.91            693             4            2.10            736          5             2.72
 assets
 Short-term             2,090           2            .27             1,868           1            .24             2,929        1             .26
 investments
 Other investments ^    1,088           12           4.05            1,134           8            3.08            1,181        9             2.98
 (e)
   Total earning        72,277          694          3.85            71,781          677          3.78            72,388       704           3.90
   assets
 Allowance for loan     (898)                                        (883)                                        (1,057)
 and lease losses
 Accrued income and     9,941                                        9,957                                        9,942
 other assets
 Discontinued assets
 — education lending    5,287                                        5,421                                        5,912
 business
   Total assets       $ 86,607                                     $ 86,276                                     $ 87,185
Liabilities
 NOW and money
 market deposit       $ 31,058          14           .18           $ 30,176          14           .19           $ 27,722       15            .22
 accounts
 Savings deposits       2,408           —            .06             2,378           1            .06             1,964        —             .06
 Certificates of
 deposit ($100,000      2,992           16           2.15            3,420           22           2.53            4,275        32            2.97
 or more) ^ (f)
 Other time deposits    4,714           18           1.52            5,158           23           1.76            6,505        37            2.24
 Deposits in foreign    874             1            .21             666             —            .21             650          1             .25
 office
   Total
   interest-bearing     42,046          49           .47             41,798          60           .57             41,116       85            .82
   deposits
 Federal funds
 purchased and
 securities
                        1,702           1            .16             1,822           1            .17             1,747        1             .25
 sold under
 repurchase
 agreements
 Bank notes and
 other short-term       306             2            1.97            390             1            1.53            471          2             1.87
 borrowings
 Long-term debt ^       3,301           35           4.84            3,793           37           4.43            7,020        53            3.21
 (f), (g)
   Total
   interest-bearing     47,355          87           .73             47,803          99           .83             50,354       141           1.12
   liabilities
 Noninterest-bearing    21,889                                       20,878                                       18,464
 deposits
 Accrued expense and    1,781                                        1,928                                        2,496
 other liabilities
 Discontinued
 liabilities —          5,287                                        5,421                                        5,912
 education lending
 business ^ (d), (g)
   Total liabilities    76,312                                       76,030                                       77,226
Equity
 Key shareholders'      10,261                                       10,222                                       9,943
 equity
 Noncontrolling         34                                           24                                           16
 interests
   Total equity         10,295                                       10,246                                       9,959
   Total liabilities  $ 86,607                                     $ 86,276                                     $ 87,185
   and equity
Interest rate spread                                 3.12    %                                    2.95    %                                  2.78   %
(TE)
Net interest income
(TE) and net                            607          3.37    %                       578          3.23    %                    563           3.13   %
interest margin (TE)
TE adjustment ^ (b)                     6                                            6                                         6
 Net interest                       $   601                                      $   572                                   $   557
 income, GAAP basis

(a) Results are from continuing operations. Interest excludes the interest
associated with the liabilities referred to in (d) 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%.
(c) For purposes of these computations, nonaccrual loans are included in
average loan balances.
(d) Discontinued liabilities include the liabilities of the education lending
business and the dollar amount of any additional liabilities assumed necessary
to support the assets associated with this business.
(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.
(h) Commercial, financial and agricultural average balance for the three
months ended December 31, 2012, and September 30, 2012, includes $90 million
and 54 million, respectively, of assets from commercial credit cards.
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, 2012        Twelve months ended December
                                                                  31, 2011
                     Average                                      Average
                     Balance       Interest ^(a) Yield/Rate ^(a)  Balance    Interest ^(a) Yield/ ^(a)
                                                                                           Rate
Assets
 Loans: ^ (b), (c)
 Commercial,
 financial and       $ 21,141 ^(h) $  810           3.83    %     $ 17,507   $  705          4.03 %
 agricultural
 Real estate —         7,656          339           4.43            8,437       380          4.50
 commercial mortgage
 Real estate —         1,171          56            4.74            1,677       73           4.36
 construction
 Commercial lease      5,142          187           3.64            5,846       293          5.01
 financing
   Total commercial    35,110         1,392         3.96            33,467      1,451        4.34
   loans
 Real estate —
 residential           2,049          100           4.86            1,850       97           5.25
 mortgage
 Home equity:
   Key Community       9,520          384           4.03            9,390       387          4.12
   Bank
   Other               473            37            7.81            598         46           7.66
 Total home equity     9,993          421           4.21            9,988       433          4.34
 loans
 Consumer other —      1,269          121           9.53            1,167       113          9.62
 Key Community Bank
 Credit cards          288            40            13.99           —           —            —
 Consumer other:
   Marine              1,551          97            6.26            1,992       125          6.28
   Other               102            8             8.14            142         11           7.87
   Total consumer      1,653          105           6.38            2,134       136          6.38
   other
 Total consumer        15,252         787           5.16            15,139      779          5.14
 loans
 Total loans           50,362         2,179         4.33            48,606      2,230        4.59
 Loans held for sale   579            20            3.45            387         14           3.58
 Securities
 available for sale    13,422         399           3.08            18,766      584          3.20
 ^ (b), (e)
 Held-to-maturity      3,511          69            1.97            514         12           2.35
 securities ^ (b)
 Trading account       718            18            2.48            878         26           2.97
 assets
 Short-term            2,116          6             .27             2,543       6            .25
 investments
 Other investments ^   1,141          38            3.27            1,264       42           3.14
 (e)
 Total earning         71,849         2,729         3.82            72,958      2,914        4.02
 assets
 Allowance for loan    (919)                                        (1,250)
 and lease losses
 Accrued income and    9,961                                        10,385
 other assets
 Discontinued assets
 — education lending   5,524                                        6,203
 business
 Total assets        $ 86,415                                     $ 88,296
Liabilities
 NOW and money
 market deposit      $ 29,673         56            .19           $ 27,001      71           .26
 accounts
 Savings deposits      2,218          1             .05             1,958       1            .06
 Certificates of
 deposit ($100,000     3,574          94            2.64            4,931       149          3.02
 or more) ^ (f)
 Other time deposits   5,386          104           1.92            7,185       166          2.31
 Deposits in foreign   767            2             .23             807         3            .30
 office
   Total
   interest-bearing    41,618         257           .62             41,882      390          .93
   deposits
 Federal funds
 purchased and
 securities
                       1,814          4             .19             1,981       5            .27
 sold under
 repurchase
 agreements
 Bank notes and
 other short-term      413            7             1.69            619         11           1.84
 borrowings
 Long-term debt ^      4,673          173           4.10            7,293       216          3.18
 (f), (g)
   Total
   interest-bearing    48,518         441           .92             51,775      622          1.21
   liabilities
 Noninterest-bearing   20,217                                       17,381
 deposits
 Accrued expense and   1,989                                        2,687
 other liabilities
 Discontinued
 liabilities —         5,524                                        6,203
 education lending
 business ^ (d), (g)
 Total liabilities     76,248                                       78,046
Equity
 Key shareholders'     10,144                                       10,133
 equity
 Noncontrolling        23                                           117
 interests
 Total equity          10,167                                       10,250
 Total liabilities   $ 86,415                                     $ 88,296
 and equity
Interest rate spread                                2.90    %                                2.81 %
(TE)
Net interest income
(TE) and net                          2,288         3.21    %                   2,292        3.16 %
interest margin (TE)
TE adjustment ^ (b)                   24                                        25
 Net interest                      $  2,264                                  $  2,267
 income, GAAP basis

(a) Results are from continuing operations. Interest excludes the interest
associated with the liabilities referred to in (d) 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%.
(c) For purposes of these computations, nonaccrual loans are included in
average loan balances.
(d) Discontinued liabilities include the liabilities of the education lending
business and the dollar amount of any additional liabilities assumed necessary
to support the assets associated with this business.
(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.
(h) Commercial, financial and agricultural average balance includes $36
million of assets from commercial credit cards.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

Noninterest Income
(in millions)
                   Three months ended                    Twelve months ended
                   12-31-12     9-30-12     12-31-11     12-31-12     12-31-11
Trust and
investment         $    104     $   106     $   104      $    421     $  434
services income ^
(a)
Service charges on      75          74          70            287        281
deposit accounts
Operating lease         16          17          25            75         122
income
Letter of credit        59          52          56            221        213
and loan fees
Corporate-owned
life insurance          36          26          35            122        121
income
Net securities          —           —           —             —          1
gains (losses)
Electronic banking      18          18          18            72         114
fees
Gains on leased         2           46          9             111        25
equipment
Insurance income        14          13          11            50         53
Net gains (losses)      57          39          27            150        75
from loan sales
Net gains (losses)
from principal          2           11          (8)           72         78
investing
Investment banking
and capital             47          38          24            165        134
markets income
(loss) ^(a)
Other income            36          104         43            221        157
     Total
     noninterest   $    466     $   544     $   414      $    1,967   $  1,808
     income
     Additional
(a)  detail
     provided in
     tables below.
Trust and Investment Services Income
(in millions)
                   Three months ended                    Twelve months ended
                   12-31-12     9-30-12     12-31-11     12-31-12     12-31-11
Brokerage
commissions and    $    32      $   34      $   33       $    134     $  132
fee income
Personal asset
management and          42          41          38            161        153
custody fees
Institutional
asset management        30          31          33            126        149
and custody fees
     Total trust
     and
     investment    $    104     $   106     $   104      $    421     $  434
     services
     income
Investment Banking and Capital Markets Income (Loss)
(in millions)
                   Three months ended                    Twelve months ended
                   12-31-12     9-30-12     12-31-11     12-31-12     12-31-11
Investment banking $    34      $   32      $   25       $    111     $  92
income
Income (loss) from      2           2           3             13         21
other investments
Dealer trading and
derivatives income
(loss),                 (1)         4           (6)           (2)        (24)
proprietary ^ (a),
(b)
Dealer trading and
derivatives income
(loss),                 3           (9)         (9)           6          2
nonproprietary ^
(b)
     Total dealer
     trading and        2           (5)         (15)          4          (22)
     derivatives
     income (loss)
Foreign exchange        9           9           11            37         43
income
     Total
     investment
     banking and   $    47      $   38      $   24       $    165     $  134
     capital
     markets
     income (loss)
     For the quarter ended December 31, 2012, income related to foreign
     exchange derivatives trading and interest rate derivative trading was
     less than $1 million and was offset by losses from Key's credit portfolio
     management activities. For the quarters ended September 30, 2012, and
(a)  December 31, 2011, fixed income securities trading comprised the vast
     majority of this amount. In these quarters, income related to foreign
     exchange derivative trading and interest rate derivative trading was less
     than $1 million and was offset by losses from Key's credit portfolio
     management activities.
     The allocation between proprietary and nonproprietary is made based upon
     whether the trade is conducted for the benefit of Key or Key's clients
     rather than based upon the proposed rulemakings under the Volcker Rule.
(b)  The prohibitions and restrictions on proprietary trading activities
     contemplated by the Volcker Rule and the rules proposed thereunder are
     not yet final. Therefore, the ultimate impact of the rules proposed under
     the Volcker Rule is not yet known.

Noninterest Expense
(dollars in millions)
                      Three months ended                   Twelve months ended
                      12-31-12     9-30-12      12-31-11   12-31-12   12-31-11
Personnel ^ (a)       $  433       $  411       $  387     $  1,618   $ 1,520
Net occupancy            69           65           66         260       258
Operating lease          12           13           18         57        94
expense
Computer processing      39           43           42         166       166
Business services and    55           49           57         193       186
professional fees
FDIC assessment          8            7            7          31        52
OREO expense, net        1            1            5          15        13
Equipment                27           27           25         107       103
Marketing                20           18           24         68        60
Provision (credit)
for losses on            (14)         (8)          (11)       (16)      (28)
lending-related
commitments
Intangible asset
amortization on          8            6            —          14        —
credit cards
Other intangible         4            3            1          9         4
asset amortization
Other expense            94           99           96         385       362
Total noninterest     $  756       $  734       $  717     $  2,907   $ 2,790
expense
Average full-time
equivalent employees     15,589       15,833       15,381     15,589    15,381
^ (b)
(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
                      12-31-12     9-30-12      12-31-11   12-31-12   12-31-11
Salaries              $  257       $  251       $  234     $  989     $ 919
Incentive                87           89           82         313       306
compensation
Employee benefits        66           55           55         242       229
Stock-based              13           11           13         51        45
compensation
Severance                10           5            3          23        21
Total personnel       $  433       $  411       $  387     $  1,618   $ 1,520
expense

Loan Composition
(dollars in millions)
                                                        Percent change
                                                        12-31-12 vs.
                   12-31-12   9-30-12        12-31-11   9-30-12     12-31-11
Commercial,
financial and      $ 23,242   $ 21,979       $ 19,759     5.7     %   17.6   %
agricultural ^(a)
Commercial real
estate:
  Commercial         7,720      7,529          8,037      2.5         (3.9)
  mortgage
  Construction       1,003      1,067          1,312      (6.0)       (23.6)
  Total commercial
  real estate        8,723      8,596          9,349      1.5         (6.7)
  loans
Commercial lease     4,915      4,960          5,674      (.9)        (13.4)
financing
  Total commercial   36,880     35,535         34,782     3.8         6.0
  loans
Residential —
prime loans:
  Real estate —
  residential        2,174      2,138          1,946      1.7         11.7
  mortgage
  Home equity:
     Key Community   9,816      9,768          9,229      .5          6.4
     Bank
     Other           423        409     ^(d)   535        3.4         (20.9)
  Total home         10,239     10,177         9,764      .6          4.9
  equity loans
Total residential    12,413     12,315         11,710     .8          6.0
— prime loans
Consumer other —     1,349      1,313          1,192      2.7         13.2
Key Community Bank
Credit cards         729        710            —          2.7         N/M
Consumer other:
  Marine             1,358      1,448          1,766      (6.2)       (23.1)
  Other              93         98             125        (5.1)       (25.6)
  Total consumer —   1,451      1,546          1,891      (6.1)       (23.3)
  indirect loans
  Total consumer     15,942     15,884         14,793     .4          7.8
  loans
  Total loans ^    $ 52,822   $ 51,419       $ 49,575     2.7     %   6.5    %
  (b), (c)
Loans Held for Sale Composition
(dollars in millions)
                                                        Percent change
                                                        12-31-12 vs.
                   12-31-12   9-30-12        12-31-11   9-30-12     12-31-11
Commercial,
financial and      $ 29       $ 13           $ 19         123.1   %   52.6   %
agricultural
Real estate —
commercial           477        484            567        (1.4)       (15.9)
mortgage
Real estate —        —          10             35         N/M         N/M
construction
Commercial lease     8          4              12         100.0       (33.3)
financing
Real estate —
residential          85         117            95         (27.4)      (10.5)
mortgage
  Total loans held $ 599      $ 628          $ 728        (4.6)   %   (17.7) %
  for sale
Summary of Changes in Loans Held for Sale
(dollars in millions)
                   4Q12       3Q12           2Q12       1Q12        4Q11
Balance at
beginning of       $ 628      $ 656          $ 511      $ 728       $ 479
period
  New originations   1,686      1,280          1,308      935         1,235
  Transfers from
  held to            38         13             7          19          19
  maturity, net
  Loan sales         (1,747)    (1,311)        (1,165)    (1,168)     (932)
  Loan draws         (4)        (9)            (4)        (3)         (72)
  (payments), net
  Transfers to
  OREO / valuation   (2)        (1)            (1)        —           (1)
  adjustments
Balance at end of  $ 599      $ 628          $ 656      $ 511       $ 728
period

(a) December 31, 2012 and September 30, 2012 loan balances include $90 million
and $88 million of commercial credit card balances, respectively.
(b) Excluded at December 31, 2012, September 30, 2012, and December 31, 2011,
are loans in the amount of $5.2 billion, $5.3 billion, and $5.8 billion,
respectively, related to the discontinued operations of the education lending
business.
(c) December 31, 2012 includes purchased loans of $217 million of which $23
million were purchased credit impaired. September 30, 2012 includes purchased
loans of $231 million of which $25 million were purchased credit impaired.
(d) This loan category was impacted by the $45 million in net loan charge-offs
taken in the third quarter of 2012 related to the updated regulatory guidance.
During the fourth quarter of 2012, updated charge-off amounts were reallocated
to other loan categories. This amount would have been $454 million exclusive
of the above-referenced net loan charge-offs at September 30, 2012.
N/M = Not Meaningful

Exit Loan Portfolio From Continuing Operations
(dollars in millions)
             Balance                Change    Net Loan         Balance on
             Outstanding            12-31-12  Charge-offs      Nonperforming
                                    vs.                        Status
             12-31-12  9-30-12      9-30-12   4Q12  3Q12  ^(c) 12-31-12  9-30-12
Residential
properties — $  24     $ 31         $  (7)    $ 1     —        $   10    $   6
homebuilder
Marine and
RV floor        33       35            (2)      —   $ (1)          10        12
plan
Commercial
lease           997      1,035         (38)     —     (3)          6         8
financing ^
(a)
Total
commercial      1,054    1,101         (47)     1     (4)          26        26
loans
Home equity     423      409   ^(d)    14       11    5            21        18
— Other
Marine          1,358    1,448         (90)     14    6            34        31
RV and other    93       98            (5)      1     (1)          2         2
consumer
Total
consumer        1,874    1,955         (81)     26    10           57        51
loans
Total exit
loans in     $  2,928  $ 3,056      $  (128)  $ 27  $ 6        $   83    $   77
loan
portfolio
Discontinued
operations —
education

lending      $  5,201  $ 5,328      $  (127)  $ 15  $ 12       $   20    $   22
business
(not
included in
exit loans
above) ^ (b)

(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.
(c) Credit amounts indicate recoveries exceeded charge-offs.
(d) This loan category was impacted by the $45 million in net loan charge-offs
taken in the third quarter of 2012 related to the updated regulatory guidance.
During the fourth quarter of 2012, updated charge-off amounts were reallocated
to other loan categories. This amount would have been $454 million exclusive
of the above-referenced net loan charge-offs at September 30, 2012.

Asset Quality Statistics From Continuing Operations
(dollars in millions)
                      4Q12          3Q12        2Q12       1Q12       4Q11
Net loan           $  58         $  109       $ 77       $ 101      $ 105
charge-offs
Net loan
charge-offs to        .44     %     .86     %   .63    %   .82    %   .86    %
average loans
Allowance for loan
and lease losses      384.85        204.78      286.74     232.39     241.01
to annualized net
loan charge-offs
Allowance for loan $  888        $  888       $ 888      $ 944      $ 1,004
and lease losses
Allowance for
credit losses ^       917           931         939        989        1,049
(a)
Allowance for loan
and lease losses      1.68    %     1.73    %   1.79   %   1.92   %   2.03   %
to period-end
loans
Allowance for
credit losses to      1.74          1.81        1.89       2.01       2.12
period-end loans
Allowance for loan
and lease losses      131.75        135.99      135.16     141.74     138.10
to nonperforming
loans
Allowance for
credit losses to      136.05        142.57      142.92     148.50     144.29
nonperforming
loans
Nonperforming
loans at period    $  674        $  653       $ 657      $ 666      $ 727
end ^ (b)
Nonperforming
assets at period      735           718         751        767        859
end
Nonperforming
loans to              1.28    %     1.27    %   1.32   %   1.35   %   1.47   %
period-end
portfolio loans
Nonperforming
assets to
period-end
portfolio loans
plus                  1.39          1.39        1.51       1.55       1.73

OREO and other
nonperforming
assets
(a) Includes the allowance for loan and lease losses plus the liability for
credit losses on lending-related commitments.
(b) December 31, 2012 and September 30, 2012 amounts exclude $23 million and
$25 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
                  12-31-12      9-30-12      12-31-11   12-31-12   12-31-11
Average loans     $  51,859     $  50,695    $ 48,664   $ 50,362   $ 48,606
outstanding
Allowance for
loan and lease
losses at         $  888        $  888       $ 1,131    $ 1,004    $ 1,604
beginning of
period
Loans charged
off:
Commercial,
financial and        15            16          45         80         169
agricultural
Real estate —
commercial           33            23          24         102        113
mortgage
Real estate —        5             3           2          24         83
construction
Total commercial     38            26          26         126        196
real estate loans
Commercial lease     7             —           6          27         42
financing
Total commercial     60            42          77         233        407
loans
Real estate —
residential          8             6           7          27         29
mortgage ^(a)
Home equity:
Key Community        (14)          65          22         99         100
Bank ^ (a)
Other ^ (a)          12            6           10         35         45
Total home equity    (2)           71          32         134        145
loans
Consumer other —
Key Community        9             9           11         38         45
Bank
Credit cards         9             2           —          11         —
Consumer other:
Marine ^ (a)         18            11          20         59         80
Other ^ (a)          2             —           2          6          9
Total consumer       20            11          22         65         89
other
Total consumer       44            99          72         275        308
loans
Total loans          104           141         149        508        715
charged off
Recoveries:
Commercial,
financial and        23            9           17         63         50
agricultural
Real estate —
commercial           5             2           1          23         10
mortgage
Real estate —        2             1           8          5          27
construction
Total commercial     7             3           9          28         37
real estate loans
Commercial lease     4             8           6          22         25
financing
Total commercial     34            20          32         113        112
loans
Real estate —
residential          1             —           —          3          3
mortgage
Home equity:
Key Community        4             3           2          11         11
Bank
Other                1             1           1          5          4
Total home equity    5             4           3          16         15
loans
Consumer other —
Key Community        1             2           2          6          8
Bank
Consumer other:
Marine               4             5           6          22         32
Other                1             1           1          3          4
Total consumer       5             6           7          25         36
other
Total consumer       12            12          12         50         62
loans
Total recoveries     46            32          44         163        174
Net loan             (58)          (109)       (105)      (345)      (541)
charge-offs
Provision
(credit) for loan    57            109         (22)       229        (60)
and lease losses
Foreign currency
translation          1             —           —          —          1
adjustment
Allowance for
loan and lease    $  888        $  888       $ 1,004    $ 888      $ 1,004
losses at end of
period
Liability for
credit losses on
lending-related   $  43         $  51        $ 56       $ 45       $ 73
commitments at
beginning of
period
Provision
(credit) for
losses on            (14)          (8)         (11)       (16)       (28)
lending-related
commitments
Liability for
credit losses on
lending-related   $  29         $  43        $ 45       $ 29       $ 45
commitments at
end of period ^
(b)
Total allowance
for credit losses $  917        $  931       $ 1,049    $ 917      $ 1,049
at end of period
Net loan
charge-offs to       .44     %     .86     %   .86    %   .69    %   1.11   %
average loans
Allowance for
loan and lease
losses to            384.85        204.78      241.01     257.39     185.58
annualized net
loan charge-offs
Allowance for
loan and lease       1.68          1.73        2.03       1.68       2.03
losses to
period-end loans
Allowance for
credit losses to     1.74          1.81        2.12       1.74       2.12
period-end loans
Allowance for
loan and lease
losses to            131.75        135.99      138.10     131.75     138.10
nonperforming
loans
Allowance for
credit losses to     136.05        142.57      144.29     136.05     144.29
nonperforming
loans
Discontinued
operations —
education lending
business:
Loans charged off $  19         $  17        $ 31       $ 75       $ 138
Recoveries           4             5           6          17         15
Net loan          $  (15)       $  (12)      $ (25)     $ (58)     $ (123)
charge-offs
(a) Further review of the loans subject to updated regulatory guidance in the
third quarter of 2012 was performed 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)
                           12-31-12   9-30-12   6-30-12   3-31-12   12-31-11
Commercial, financial and  $  99      $  132    $  141    $  168    $  188
agricultural
Real estate — commercial      120        134       172       175       218
mortgage
Real estate — construction    56         53        68        66        54
Total commercial real         176        187       240       241       272
estate loans
Commercial lease financing    16         18        18        22        27
Total commercial loans        291        337       399       431       487
Real estate — residential     103        83        78        82        87
mortgage ^ (a)
Home equity:
Key Community Bank            210        171       141       109       108
Other                         21         18        17        12        12
Total home equity loans ^     231        189       158       121       120
(a)
Consumer other — Key          2          3         2         1         1
Community Bank
Credit cards                  11         8         —         —         —
Consumer other:
Marine                        34         31        19        30        31
Other                         2          2         1         1         1
Total consumer other          36         33        20        31        32
Total consumer loans          383        316       258       235       240
Total nonperforming loans     674        653       657       666       727
^ (b)
Nonperforming loans held      25         19        38        24        46
for sale
OREO                          22         29        28        61        65
Other nonperforming assets    14         17        28        16        21
Total nonperforming assets $  735     $  718    $  751    $  767    $  859
Accruing loans past due 90 $  78      $  89     $  131    $  169    $  164
days or more
Accruing loans past due 30    424        354       362       420       441
through 89 days
Restructured loans —
accruing and nonaccruing ^    320        323       274       293       276
(c)
Restructured loans
included in nonperforming     249        217       163       184       191
loans ^ (c)
Nonperforming assets from
discontinued operations —     20         22        18        19        23

education lending business
Nonperforming loans to        1.28  %    1.27 %    1.32 %    1.35 %    1.47  %
period-end portfolio loans
Nonperforming assets to
period-end portfolio loans
                              1.39       1.39      1.51      1.55      1.73
plus OREO and other
nonperforming assets

(a) All of the increase in Real estate — residential mortgage and $26 million
of the increase in Total home equity loans from September 30, 2012 to December
31, 2012 was related to regulatory guidance issued in the second and third
quarters of 2012.
(b) December 31, 2012 and September 30, 2012 amounts exclude $23 million and
$25 million, respectively, of purchased credit impaired loans acquired in July
2012.
(c) 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. The majority of the increase in
restructured loans included in nonperforming loans from September 30, 2012 to
December 31, 2012 was a result of updated regulatory guidance in the third
quarter of 2012.

Summary of Changes in Nonperforming Loans From Continuing Operations
(in millions)
                       4Q12           3Q12         2Q12       1Q12     4Q11
Balance at             $   653        $   657      $  666     $ 727    $ 788
beginning of period
Loans placed on            288            276         350       214      230
nonaccrual status
Charge-offs                (104)          (141)       (131)     (132)    (149)
Loans sold                 (44)           (43)        (49)      (27)     (28)
Payments                   (78)           (74)        (110)     (65)     (70)
Transfers to OREO          (7)            (10)        (6)       (15)     (12)
Transfers to
nonperforming loans        (8)            —           (16)      —        (19)
held for sale
Transfers to other
nonperforming              (1)            —           (14)      —        (4)
assets
Loans returned to          (25)           (12)        (33)      (36)     (9)
accrual status
Balance at end of      $   674        $   653      $  657     $ 666    $ 727
period ^ (a)
(a) December 31, 2012 and September 30, 2012 amounts exclude $23 million and
$25 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)
                       4Q12           3Q12         2Q12       1Q12     4Q11
Balance at             $   19         $   38       $  24      $ 46     $ 42
beginning of period
Transfers in               8              —           16        —        19
Net advances /             (1)            (1)         —         (1)      (3)
(payments)
Loans sold                 (1)            (17)        (1)       (1)      (11)
Transfers to OREO          —              (1)         —         —        (1)
Valuation                  —              —           (1)       (1)      —
adjustments
Loans returned to
accrual status /           —              —           —         (19)     —
other
Balance at end of      $   25         $   19       $  38      $ 24     $ 46
period
Summary of Changes in Other Real Estate Owned, Net of Allowance, From
Continuing Operations
(in millions)
                       4Q12           3Q12         2Q12       1Q12     4Q11
Balance at             $   29         $   28       $  61      $ 65     $ 63
beginning of period
Properties acquired
— nonperforming            7              11          6         15       13
loans
Valuation                  (2)            (2)         (7)       (7)      (4)
adjustments
Properties sold            (12)           (8)         (32)      (12)     (7)
Balance at end of      $   22         $   29       $  28      $ 61     $ 65
period

Line of Business Results
(dollars in millions)
                                                                      Percent change
                                                                      4Q12 vs.
               4Q12       3Q12       2Q12       1Q12       4Q11       3Q12      4Q11
Key Community
Bank
Summary of
operations
Total revenue  $ 567      $ 576      $ 537      $ 528      $ 546       (1.6)  %  3.8    %
(TE)
Provision
(credit) for     23         120        11         2          30        (80.8)    (23.3)
loan and
lease losses
Noninterest      529        512        476        457        476       3.3       11.1
expense
Net income
(loss)           31         (23)       41         57         40        N/M       (22.5)
attributable
to Key
Average loans    29,252     28,386     27,043     26,617     26,406    3.1       10.8
and leases
Average          50,123     49,537     48,253     47,768     48,076    1.2       4.3
deposits
Net loan         12         93         50         49         71        (87.1)    (83.1)
charge-offs
Net loan
charge-offs      .16    %   1.30   %   .74    %   .74    %   1.07   %  N/A       N/A
to average
loans
Nonperforming
assets at      $ 459      $ 422      $ 401      $ 402      $ 415       8.8       10.6
period end
Return on
average          4.13   %   (3.11) %   5.73   %   7.74   %   5.07   %  N/A       N/A
allocated
equity
Average
full-time        9,019      9,209      8,757      8,719      8,633     (2.1)     4.5
equivalent
employees
Key Corporate
Bank
Summary of
operations
Total revenue  $ 424      $ 392      $ 392      $ 401      $ 412       8.2    %  2.9    %
(TE)
Provision
(credit) for     11         (3)        4          13         (61)      N/M       N/M
loan and
lease losses
Noninterest      206        209        218        230        228       (1.4)     (9.6)
expense
Net income
(loss)           130        118        104        100        156       10.2      (16.7)
attributable
to Key
Average loans    19,477     18,886     18,532     18,584     17,784    3.1       9.5
and leases
Average loans    538        441        514        509        356       22.0      51.1
held for sale
Average          13,672     12,873     12,409     11,556     11,162    6.2       22.5
deposits
Net loan         21         8          9          25         12        162.5     75.0
charge-offs
Net loan
charge-offs      .43    %   .17    %   .20    %   .54    %   .27    %  N/A       N/A
to average
loans
Nonperforming
assets at      $ 175      $ 197      $ 248      $ 237      $ 294       (11.2)    (40.5)
period end
Return on
average          30.97  %   27.61  %   23.53  %   21.24  %   30.03  %  N/A       N/A
allocated
equity
Average
full-time        2,049      2,146      2,175      2,169      2,204     (4.5)     (7.0)
equivalent
employees
Key Corporate Bank supplementary
information (lines of business)
Real Estate
Capital and
Corporate
Banking
Services
Total revenue  $ 189      $ 166      $ 181      $ 165      $ 184       13.9   %  2.7    %
(TE)
Provision
(credit) for     14         (3)        5          —          (31)      N/M       N/M
loan and
lease losses
Noninterest      59         62         67         63         66        (4.8)     (10.6)
expense
Net income
(loss)           72         67         65         64         94        7.5       (23.4)
attributable
to Key
Average loans    7,625      7,342      7,344      7,700      7,446     3.9       2.4
and leases
Average loans    455        359        337        291        216       26.7      110.6
held for sale
Average          10,538     9,674      9,254      8,279      7,694     8.9       37.0
deposits
Net loan         26         9          7          16         10        188.9     160.0
charge-offs
Net loan
charge-offs      1.36   %   .49    %   .38    %   .84    %   .53    %  N/A       N/A
to average
loans
Nonperforming
assets at      $ 136      $ 142      $ 186      $ 173      $ 209       (4.2)     (34.9)
period end
Return on
average          38.86  %   34.44  %   31.27  %   27.92  %   36.35  %  N/A       N/A
allocated
equity
Average
full-time        907        929        983        982        983       (2.4)     (7.7)
equivalent
employees
Equipment
Finance
Total revenue  $ 53       $ 57       $ 57       $ 64       $ 62        (7.0)  %  (14.5) %
(TE)
Provision
(credit) for     (6)        —          6          (2)        (15)      N/M       N/M
loan and
lease losses
Noninterest      35         35         37         37         48        —         (27.1)
expense
Net income
(loss)           15         14         9          18         18        7.1       (16.7)
attributable
to Key
Average loans    5,099      5,159      4,887      4,780      4,681     (1.2)     8.9
and leases
Average loans    9          7          23         24         10        28.6      (10.0)
held for sale
Average          6          6          7          8          9         —         (33.3)
deposits
Net loan         4          (1)        4          5          (1)       N/M       N/M
charge-offs
Net loan
charge-offs      .31    %   (.08)  %   .33    %   .42    %   (.08)  %  N/A       N/A
to average
loans
Nonperforming
assets at      $ 26       $ 30       $ 33       $ 28       $ 41        (13.3)    (36.6)
period end
Return on
average          25.07  %   22.73  %   14.48  %   26.71  %   23.19  %  N/A       N/A
allocated
equity
Average
full-time        367        383        393        394        442       (4.2)     (17.0)
equivalent
employees
Institutional
and Capital
Markets
Total revenue  $ 182      $ 169      $ 154      $ 172      $ 166       7.7    %  9.6    %
(TE)
Provision
(credit) for     3          —          (7)        15         (15)      N/M       N/M
loan and
lease losses
Noninterest      112        112        114        130        114       —         (1.8)
expense
Net income
(loss)           43         37         30         18         44        16.2      (2.3)
attributable
to Key
Average loans    6,753      6,385      6,301      6,104      5,657     5.8       19.4
and leases
Average loans    74         75         154        194        130       (1.3)     (43.1)
held for sale
Average          3,128      3,193      3,148      3,269      3,459     (2.0)     (9.6)
deposits
Net loan         (9)        —          (2)        4          3         N/M       N/M
charge-offs
Net loan
charge-offs      (.53)  %   —          (.13)  %   .26    %   .21    %  N/A       N/A
to average
loans
Nonperforming
assets at      $ 13       $ 25       $ 29       $ 36       $ 44        (48.0)    (70.5)
period end
Return on
average          24.61  %   21.61  %   17.44  %   10.33  %   24.01  %  N/A       N/A
allocated
equity
Average
full-time        775        834        799        793        779       (7.1)     (.5)
equivalent
employees
TE = Taxable
Equivalent, N/A = Not
Applicable, N/M = Not
Meaningful





SOURCE KeyCorp

Website: http://www.key.com
Contact: ANALYSTS, Vernon L. Patterson, +1-216-689-0520,
Vernon_Patterson@KeyBank.com or Kelly L. Lammers, +1-216-689-3133,
Kelly_L_Lammers@KeyBank.com; MEDIA, Jack Sparks, +1-720-904-4554,
Jack_Sparks@KeyBank.com, Twitter: @keybank_news; INVESTOR RELATIONS:
www.key.com/ir, KEY MEDIA, NEWSROOM: www.key.com/newsroom
 
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