Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 19

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 19
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 value of securities available for sale was 4.02% and 2.85% for the nine months ended September 30, 2025, and September 30, 2024, respectively.

(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying our matched funds transfer pricing methodology to discontinued operations. 

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

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Provision for credit losses

Key’s provision for credit losses was $107 million for the three months ended September 30, 2025, compared to $95 million for the three months ended September 30, 2024. The provision for credit losses was $363 million for the nine months ended September 30, 2025, compared to $296 million for the nine months ended September 30, 2024.  The increase from the year-ago periods reflects a higher reserve provision due to uncertainty in the economic environment, partly offset by lower net-charge-offs.

Noninterest income

As shown in Figure 4, noninterest income was $702 million for the third quarter of 2025, compared to a net loss of $269 million for the year-ago quarter. Noninterest income was $2.1 billion for the nine months ended September 30, 2025, compared to $1.0 billion for the nine months ended September 30, 2024.

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

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Figure 4. Noninterest Income

Trust and investment services income 

Trust and investment services income consists of brokerage commissions, trust and asset management fees, and insurance income. The assets under management that primarily generate certain trust and asset management fees are shown in Figure 5. For the three months ended September 30, 2025, trust and investment services income was up $10 million, or 7.1%, compared to the same period one year ago. For the nine months ended September 30, 2025, trust and investment services income was up $20 million, or 4.8%, compared to the same period one year ago. Revenue growth for both comparison periods was primarily due to an increase in fees associated with higher assets under management balances.

A significant portion of our trust and investment services income depends on the value and mix of assets under management. As shown in Figure 5, at September