Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 21

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 21
---
 ended June 30, 2025, compared to the same period one year ago. For the six months ended June 30, 2025, service charges on deposit accounts increased by $13 million, or 10.1%, from the six months ended June 30, 2024. These increases were driven by higher account analysis fees.

Cards and payments income

Cards and payments income, which consists of debit card, prepaid card, consumer and commercial credit card, and merchant services income, was flat for the three months ended June 30, 2025, compared to the same period one year ago. For the six months ended June 30, 2025, cards and payment income increased $5 million, or 3.1%, from the same period a year ago. This increase was primarily a result of higher credit card spend volume slightly offset by higher credit card reward costs.

Other noninterest income

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

corporate-owned life insurance income, consumer mortgage income, commercial mortgage servicing fees, net securities gains/(losses), and other income. Other noninterest income for the three months ended June 30, 2025, decreased $3 million, or 1.4%, from the year-ago quarter, as a result of a decrease in other income and operating lease income, offset by increases in commercial mortgage servicing fees attributable to higher active special servicing balances, corporate services income and net securities gains/(losses). For the six months ended June 30, 2025, other noninterest income decreased $1 million, or 0.2%, from the same period a year ago, driven by a decrease in operating lease income and other leasing gains and other income, offset by increases in commercial mortgage servicing fees attributable to higher active special servicing balances and net securities gains/losses. 

Noninterest expense

As shown in Figure 6, noninterest expense was $1.2 billion for the second quarter of 2025, compared to $1.1 billion for the second quarter of 2024. Noninterest expense was $2.3 billion for the six months ended June 30, 2025, compared to $2.2 billion for the six months ended June 30, 2024.

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

17

Figure 6. Noninterest Expense 

(a)Other noninterest expense includes