Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 23

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 23
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 generally not effective until 2026. Key is currently evaluating the impact of the new legislation, but does not expect any material change to our ongoing tax rate or any material impact on our results of operations.

Additional information pertaining to how our tax expense (benefit) and the resulting effective tax rates were derived is included in Note 14 (“Income Taxes”) beginning on page 158 of our 2024 Form 10-K.

Business Segment Results

This section summarizes the financial performance of our two major business segments (operating segments): Consumer Bank and Commercial Bank. Note 19 (“Business Segment Reporting”) describes the products and services offered by each of these business segments and provides more detailed financial information pertaining to the segments. For more information on the segment imperatives and market and business overview, see “Business Segment Results” beginning on page 60 of our 2024 Form 10-K. Dollars in the charts are presented in millions.

Consumer Bank

Summary of operations

•Net income attributable to Key of $122 million for the second quarter of 2025, compared to $59 million for the year-ago quarter

•Taxable-equivalent net interest income attributable to the Consumer Bank increased by $153 million, or 29.3%, compared to the second quarter of 2024

•Average loans and leases decreased $3.0 billion, or 7.8%, from the second quarter of 2024, driven by broad-based declines across all loan categories 

•Average deposits increased $2.6 billion, or 3.1%, from the second quarter of 2024, driven by growth in money market deposits and demand deposits

19

•Provision for credit losses increased $22 million compared to the second quarter of 2024, primarily driven by changes in reserve levels due to deterioration in the economic outlook

•Noninterest income increased $1 million, or 0.4%, from the second quarter of 2024, driven by an increase in trust and investment services income, partially offset by a decrease in consumer mortgage income 

•Noninterest expense increased $48 million, or 7.4%, from the second quarter of 2024, primarily driven by higher support and overhead expense

Commercial Bank

Summary of operations

•Net income attributable to Key of $349 million for the second quarter of 2025, compared to $206 million for the year-ago quarter

•Taxable-equivalent net interest income increased by $145 million, compared to the second quarter of 2024

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