Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 225

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 225
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 to discontinued operations.

(g)Average balances presented are based on daily average balances over the respective stated period.

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Figure 2 shows how the changes in yields or rates and average balances from the prior year affected net interest income. The section entitled “Financial Condition” contains additional discussion about changes in earning assets and funding sources.

Figure 2. Components of Net Interest Income Changes from Continuing Operations 

 2024 vs. 2023Dollars in millionsAverageVolumeYield/ RateNet Change(a)INTEREST INCOMELoans$(568)$390 $(178)Loans held for sale(2)1 (1)Securities available for sale(13)362 349 Held-to-maturity securities(36)8 (28)Trading account assets2 4 6 Short-term investments401 (23)378 Other investments(11)— (11)Total interest income (TE)(227)742 515 INTEREST EXPENSEMoney market deposits107 373 480 Demand deposits29 271 300 Savings deposits(1)5 4 Time deposits117 84 201 Total interest-bearing deposits252 733 985 Federal funds purchased and securities sold under repurchase agreements(62)(13)(75)Bank notes and other short-term borrowings(159)15 (144)Long-term debt(245)127 (118)Total interest expense(214)862 648 Net interest income (TE)$(13)$(120)$(133)

(a)The change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each.

Provision for credit losses

Our provision for credit losses was a net charge of $335 million for 2024, compared to $489 million for 2023. The  decrease in our provision for credit losses was driven by reserve releases, partly offset by higher net charge-offs. The net reserve release in 2024 was driven by changes in the economic outlook and planned balance sheet optimization efforts, which offset reserve increases attributable to asset quality migration. The higher net charge-offs were largely driven by the commercial and industrial portfolio.

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Noninterest income

Noninterest income for 2024 was $809 million, inclusive of the $1.8 billion loss from the investment portfolio repositioning, compared to $2.5 billion during 2023. Noninterest income represented 18% of total revenue for 2024 and 39