Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 21

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 21
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 and payments income

Cards and payments income, which consists of debit card, prepaid card, consumer and commercial credit card, and merchant services income, increased $2 million or 2.4%  for the three months ended September 30, 2025, compared to the same period one year ago. For the nine months ended September 30, 2025, cards and payment income increased $7 million, or 2.8%, from the same period a year ago. These increases were primarily a result of higher merchant services income and 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 September 30, 2025, increased $938 million, or 128.3%, from the year-ago quarter. For the nine months ended September 30, 2025, other noninterest income increased $937 million, or 293.7%, from the same period a year ago. These increases were primarily due to the $918 million loss reflected in other income as a result of the securities repositioning activity undertaken in the third quarter of 2024, as well as increases in corporate services income, which were offset by decreases in operating lease income and other leasing gains. 

Noninterest expense

As shown in Figure 6, noninterest expense was $1.2 billion for the third quarter of 2025, compared to $1.1 billion for the third quarter of 2024. Noninterest expense was $3.5 billion for the nine months ended September 30, 2025, compared to $3.3 billion for the nine months ended September 30, 2024.

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

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Figure 6. Noninterest Expense

(a)Other noninterest expense includes equipment, operating lease expense, marketing, and other expense. See the "Consolidated Statements of Income" in Item 1. Financial Statements of this report.

Personnel

Personnel expense, the largest category of our noninterest expense, increased by $72 million, or 10.7%, for the three months ended September 30, 2025, compared to the same period one year