Company: KEY-PI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000091576-25-000058
Chunk: 19

Company: KEYCORP /NEW/
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 2
Chunk 19
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, 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 $6 million, or .9%, for the three months ended March 31, 2025, compared to the same period one year ago. The increase reflects higher general salary expense stemming from increased head count slightly offset by a decrease in deferred savings plan benefit costs. 

Nonpersonnel expense

Nonpersonnel expense includes net occupancy, computer processing, business services and professional fees, equipment, operating lease expense, marketing, and other miscellaneous expense categories. Nonpersonnel expense for the three months ended March 31, 2025, decreased $18 million, or 3.8%, from the year-ago quarter, driven by a decrease in other expense due to a FDIC special assessment charge in the first quarter of 2024, slightly offset by increases in technology-related investments. 

18

Income taxes

We recorded tax expense of $109 million for the first quarter of 2025 and $59 million for the first quarter of 2024.  

Our federal tax expense and effective tax rate differs from the amount that would be calculated using the federal statutory tax rate, primarily due to investments in tax-advantaged assets, such as corporate-owned life insurance, tax credits associated with low-income housing investments, and periodic adjustments to our tax reserves.

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 $118 million for the first quarter of 2025, compared to $41 million for the year-ago quarter

•Taxable-equivalent net interest income attributable to the Consumer Bank increased by $116 million, or 21.8%, compared to the