Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 22

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 22
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 ago. For the nine months ended September 30, 2025, personnel expense was up $147 million, or 7.4%, compared to the same period one year ago. The increases were driven by higher incentive compensation associated with noninterest income growth and continued investments in people.

Nonpersonnel expense

Other nonpersonnel expense includes net occupancy, computer processing, business services and professional fees, equipment, operating lease expense, marketing, and other miscellaneous expense categories. Other nonpersonnel expense for the three months ended September 30, 2025, increased $11 million, or 2.6%, from the year-ago quarter, primarily due to increases in business services and other expenses, partially offset by a decrease in operating lease expense. For the nine months ended September 30, 2025, other nonpersonnel expense remained relatively stable decreasing only $1 million, or 0.1%, from the nine months ended September 30, 2024.

18

Income taxes

We recorded tax expense of $112 million for the third quarter of 2025 and a tax benefit of $95 million for the third quarter of 2024. We recorded tax expense of $337 million for the nine months ended September 30, 2025, compared to $26 million for the nine months ended September 30, 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 $152 million for the third quarter of 2025, compared to $75 million for