Exhibit 99.1

News

		KeyCorp 127 Public Square Cleveland, OH 44114

CONTACTS: ANALYSTS		MEDIA
Vernon L. Patterson		William C. Murschel
216.689.0520		216.471.2885
Vernon_Patterson@KeyBank.com		William_C_Murschel@KeyBank.com
Christopher F. Sikora
216.689.3133
Chris_F_Sikora@KeyBank.com

INVESTOR		KEY MEDIA
RELATIONS: www.key.com/ir		NEWSROOM: www.key.com/newsroom

FOR IMMEDIATE RELEASE

KEYCORP REPORTS THIRD QUARTER 2010
AND YEAR-TO-DATE PROFIT

•		Net income from continuing operations of $163 million, or $.19 per common share, for the third quarter of 2010
•		Year-to-date net income from continuing operations of $121 million, or $.14 per common share
•		Net interest margin expanded 18 basis points from second quarter of 2010 to 3.35% for the third quarter of 2010
•		Pre-provision net revenue from continuing operations (net interest income plus taxable-equivalent adjustment and noninterest income less noninterest expense) increased $51 million from second quarter of 2010 to $397 million for the third quarter of 2010
•		Nonperforming loans decreased by $331 million from second quarter of 2010 to 2.67% of total period-end loans at September 30, 2010
•		Loan loss reserve at 3.81% of total period-end loans and represented 143% coverage of nonperforming loans at September 30, 2010
•		Net charge-offs declined to $357 million, or 2.69% of average loan balances, for the third quarter of 2010
•		Tier 1 common equity and Tier 1 risk-based capital ratios estimated at 8.59% and 14.26%, respectively

CLEVELAND, October 22, 2010 – KeyCorp (NYSE: KEY) today announced third quarter net income from continuing operations attributable to Key common shareholders of $163 million, or $.19 per common share. These results compare to a net loss from continuing operations attributable to Key common shareholders of $422 million, or $.50 per common share, for the third quarter of 2009. The third quarter 2009 results were negatively impacted by a $733 million loan loss provision. Third quarter 2010 net income attributable to Key common shareholders was $178 million compared to a net loss attributable to Key common shareholders of $438 million for the same quarter one year ago. Net income attributable to Key common

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 2

shareholders for the nine-month period ended September 30, 2010 was $111 million compared to a net loss attributable to Key common shareholders of $1.364 billion for the same period one year ago.

Key’s third quarter earnings improvement resulted from improved pre-provision net revenue and a lower provision for loan losses when compared to the second quarter of 2010. Credit quality continued to improve across the majority of the loan portfolios in both Community Banking and National Banking. Net charge-offs declined by $78 million, and nonperforming loans decreased by $331 million from June 30, 2010.

“With the third quarter’s results, Key has returned to profitability on a year-to-date basis,” said Chief Executive Officer Henry L. Meyer III. “We are pleased with our progress and recognize the important contributions of employees across Key who have remained focused on serving our clients through what has been the most challenging economic period in decades. Our third quarter results reflect a higher net interest margin, continued credit quality improvement, well-controlled expenses, and improvements in several fee-based businesses.”

Meyer continued: “Our work to lower our risk profile and proactively address credit issues is resulting in asset quality improvements across a majority of our loan portfolios and the fourth consecutive quarterly decline in nonperforming assets.”

“Key’s core financial measures – strong capital, enhanced liquidity, adequate loan loss reserves – along with our selective exits from riskier lending categories, together provide a firm foundation for growth as the economy strengthens,” added Meyer.

At September 30, 2010, Key’s estimated Tier 1 common equity ratio was 8.59% compared to 8.07% at June 30, 2010, and estimated Tier 1 risk-based capital ratio was 14.26% up from 13.62% one quarter ago.

Key’s strong capital and liquidity positions provide the Company with the ability to serve the borrowing needs of our clients when the economy expands. The Company originated approximately $8.1 billion in new or renewed lending commitments to consumers and businesses during the quarter and approximately $21 billion for the nine-month period ended September 30, 2010.

Meyer also noted that Key opened 34 new branches during the first nine months of 2010 and expects to open an additional five new branches during the fourth quarter of 2010, increasing its market presence in selected markets of its 14-state branch network. In addition, Key’s online account application features were ranked second among the 16 largest U.S. banks in Corporate Insight’s September 2010 edition of Bank Monitor, a leading rating service for the online space. Key had previously been recognized by Bank Monitor for its capabilities in the areas of online application, account information, and alerts. The investment in new and modernized branches, coupled with the enhancements to online banking, reflect Key’s relationship strategy and efforts to provide clients with a breadth of options that meet their specific banking needs. The Company is positioning its branch and online capabilities to enhance growth as the economy turns.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 3

The following table shows Key’s continuing and discontinued operating results for the comparative quarters and for the nine-month periods ended September 30, 2010 and 2009.

Results of Operations

			Three months ended												Nine months ended
in millions, except per share amounts			9-30-10			6-30-10				9-30-09					9-30-10				9-30-09
Summary of operations
Income (loss) from continuing operations attributable to Key		$	204			$	97			$	(381	)		$	244			$	(1,070	)
Income (loss) from discontinued operations, net of taxes (a)			15				(27	)			(16	)			(10	)			(41	)
Net income (loss) attributable to Key		$	219			$	70			$	(397	)		$	234			$	(1,111	)
Income (loss) from continuing operations attributable to Key		$	204			$	97			$	(381	)		$	244			$	(1,070	)
Less:    Dividends on Series A Preferred Stock			6				6				7				17				34
Noncash deemed dividend — common shares exchanged for Series A Preferred Stock			—				—				—				—				114
Cash dividends on Series B Preferred Stock			31				31				31				94				94
Amortization of discount on Series B Preferred Stock			4				4				3				12				11
Income (loss) from continuing operations attributable to Key common shareholders			163				56				(422	)			121				(1,323	)
Income (loss) from discontinued operations, net of taxes (a)			15				(27	)			(16	)			(10	)			(41	)
Net income (loss) attributable to Key common shareholders		$	178			$	29			$	(438	)		$	111			$	(1,364	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders		$	.19			$	.06			$	(.50	)		$	.14			$	(2.07	)
Income (loss) from discontinued operations, net of taxes (a)			.02				(.03	)			(.02	)			(.01	)			(.06	)
Net income (loss) attributable to Key common shareholders (b)		$	.20			$	.03			$	(.52	)		$	.13			$	(2.14	)

SUMMARY OF CONTINUING OPERATIONS

Taxable-equivalent net interest income was $647 million for the third quarter of 2010, and the net interest margin was 3.35%. These results compare to taxable-equivalent net interest income of $599 million and a net interest margin of 2.80% for the third quarter of 2009. The increase in the net interest margin is primarily attributable to lower funding costs. The Company continues to experience an improvement in the mix of deposits by reducing the level of higher costing certificates of deposit and increasing lower costing transaction accounts. Key expects this change in funding mix to continue although at a slower pace going forward. This reduced pace will result from a lower volume of higher costing maturing certificates of deposit. Additionally, Key experienced improved yields on loans due to lower levels of nonperforming loans.

Compared to the second quarter of 2010, taxable-equivalent net interest income increased by $24 million, and the net interest margin expanded by 18 basis points. Most of this improvement is attributable to the repricing of certificates of deposit and an overall improved mix of deposits. The Company’s third quarter net interest margin also benefitted from reducing amounts invested in overnight short-term investments and investing these funds in collateralized mortgage-backed securities with an average duration of 2.5-3.5 years issued by government-sponsored entities.

Key’s noninterest income was $486 million for the third quarter of 2010, compared to $382 million for the year-ago quarter. Fee-based income improved by $95 million from the third quarter of 2009, which included increases of $68 million in investment banking and

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 4

capital markets income and $15 million in letter of credit and loan fees. Also included in the third quarter of 2010 was a $12 million dividend from corporate-owned life insurance.

The major components of Key’s fee-based income for the past five quarters are shown in the following table.

Fee-based Income – Major Components

in millions		3Q10				2Q10				1Q10				4Q09				3Q09
Trust and investment services income		$	110			$	112			$	114			$	117			$	113
Service charges on deposit accounts			75				80				76				82				83
Operating lease income			41				43				47				52				55
Letter of credit and loan fees			61				42				40				52				46
Corporate-owned life insurance income			39				28				28				36				26
Electronic banking fees			30				29				27				27				27
Insurance income			15				19				18				16				18
Net gains (losses) from principal investing			18				17				37				80				(6)
Investment banking and capital markets income (loss)			42				31				9				(47)				(26)

Compared to the second quarter of 2010, noninterest income decreased by $6 million. This decrease in noninterest income resulted from declines in net gains from loan sales of $7 million, the anticipated decrease in service charges on deposit accounts of $5 million from the implementation of Regulation E, and various miscellaneous income components of $34 million. These decreases were partially offset by increases of $19 million in letter of credit and loan fees and $11 million in investment banking and capital market income. In addition, Key recognized a $12 million corporate-owned life insurance dividend in the third quarter of 2010.

Key’s noninterest expense was $736 million for the third quarter of 2010, compared to $901 million for the same period last year. Key recorded a credit of $10 million to the provision for losses on lending-related commitments during the third quarter of 2010, compared to a charge to the provision of $29 million in the year-ago quarter. Also contributing to the decrease was a decline in employee benefits expense of $31 million, which included a $12 million credit to pension expense. Additionally, in the third quarter of 2009, Key recognized a $45 million write-off of intangible assets and $51 million of other real estate owned (“OREO”) expense, compared to OREO expense of $4 million for the third quarter of 2010.

Compared to the second quarter of 2010, noninterest expense decreased by $33 million. This decline was primarily a result of a $26 million decrease in employee benefits expense, which included the pension expense item discussed above, and a decrease in OREO expense of $18 million. These declines were partially offset by increases in net occupancy costs of $6 million primarily related to reserves on vacant corporate facilities and operating lease expense of $5 million for impaired leases.

ASSET QUALITY

Key’s provision for loan losses was $94 million for the third quarter of 2010, compared to $733 million for the year-ago quarter and $228 million for the second quarter of 2010. Key’s allowance for loan losses was $2 billion, or 3.81% of total period-end loans, at September 30, 2010, compared to 4.16% at June 30, 2010, and 4.00% at September 30, 2009.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 5

          Selected asset quality statistics for Key for each of the past five quarters are presented in the following table.

Selected Asset Quality Statistics from Continuing Operations

dollars in millions		3Q10				2Q10				1Q10				4Q09				3Q09
Net loan charge-offs		$	357			$	435			$	522			$	708			$	587
Net loan charge-offs to average loans			2.69	%			3.18	%			3.67	%			4.64	%			3.59	%
Allowance for loan losses		$	1,957			$	2,219			$	2,425			$	2,534			$	2,485
Allowance for credit losses (a)			2,056				2,328				2,544				2,655				2,579
Allowance for loan losses to period-end loans			3.81	%			4.16	%			4.34	%			4.31	%			4.00	%
Allowance for credit losses to period-end loans			4.00				4.36				4.55				4.52				4.15
Allowance for loan losses to nonperforming loans			142.64				130.30				117.43				115.87				108.52
Allowance for credit losses to nonperforming loans			149.85				136.70				123.20				121.40				112.62
Nonperforming loans at period end		$	1,372			$	1,703			$	2,065			$	2,187			$	2,290
Nonperforming assets at period end			1,801				2,086				2,428				2,510				2,799
Nonperforming loans to period-end portfolio loans			2.67	%			3.19	%			3.69	%			3.72	%			3.68	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets			3.48				3.88				4.31				4.25				4.46

          Net loan charge-offs for the quarter totaled $357 million, or 2.69%, of average loans. These results compare to $587 million, or 3.59%, for the same period last year and $435 million, or 3.18%, for the previous quarter.

          Key’s net loan charge-offs by loan type for each of the past five quarters are shown in the following table.

Net Loan Charge-offs from Continuing Operations

dollars in millions		3Q10				2Q10				1Q10				4Q09				3Q09
Commercial, financial and agricultural		$	136			$	136			$	126			$	218			$	168
Real estate — commercial mortgage			46				126				106				165				81
Real estate — construction			76				75				157				181				216
Commercial lease financing			16				14				21				39				27
Total commercial loans			274				351				410				603				492
Home equity — Community Banking			35				25				30				27				25
Home equity — Other			13				16				17				19				20
Marine			12				19				38				33				25
Other			23				24				27				26				25
Total consumer loans			83				84				112				105				95
Total net loan charge-offs		$	357			$	435			$	522			$	708			$	587
Net loan charge-offs to average loans from continuing operations			2.69		%		3.18		%		3.67		%		4.64		%		3.59		%
Net loan charge-offs from discontinued operations — education lending business		$	22			$	31			$	36			$	36			$	38

          Compared to the second quarter of 2010, net loan charge-offs in the commercial loan portfolio decreased by $77 million. The decrease was attributable to a decline in the real estate commercial mortgage loan portfolio. As shown in the table on page 6, Key’s exit loan portfolio accounted for $105 million, or 29.41%, of Key’s total net loan charge-offs for the third quarter of 2010. Net charge-offs in the exit loan portfolio decreased by $9 million from the second quarter of 2010, primarily driven by an improvement in the marine portfolio.

          At September 30, 2010, Key’s nonperforming loans totaled $1.4 billion and represented 2.67% of period-end portfolio loans, compared to 3.19% at June 30, 2010, and 3.68% at September 30, 2009. Nonperforming assets at September 30, 2010 totaled $1.8 billion and represented 3.48% of portfolio loans, OREO and other nonperforming assets, compared to

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 6

3.88% at June 30, 2010, and 4.46% at September 30, 2009. The following table illustrates the trend in Key’s nonperforming assets by loan type over the past five quarters.

Nonperforming Assets from Continuing Operations

dollars in millions		3Q10				2Q10				1Q10				4Q09				3Q09
Commercial, financial and agricultural		$	335			$	489			$	558			$	586			$	679
Real estate — commercial mortgage			362				404				579				614				566
Real estate — construction			333				473				607				641				702
Commercial lease financing			84				83				99				113				131
Total consumer loans			258				254				222				233				212
Total nonperforming loans			1,372				1,703				2,065				2,187				2,290
Nonperforming loans held for sale			230				221				195				116				304
OREO and other nonperforming assets			199				162				168				207				205
Total nonperforming assets		$	1,801			$	2,086			$	2,428			$	2,510			$	2,799
Restructured loans included in nonperforming loans (a)		$	228			$	213			$	226			$	364			$	65
Nonperforming assets from discontinued operations — education lending business			38				40				43				14				12
Nonperforming loans to period-end portfolio loans			2.67		%		3.19		%		3.69		%		3.72		%		3.68		%
Nonperforming assets to period-end portfolio loans, plus OREO and other nonperforming assets			3.48				3.88				4.31				4.25				4.46

          Nonperforming assets continued to decrease during the third quarter of 2010, representing the fourth consecutive quarterly decline. Most of the reduction came from nonperforming loans in the commercial, financial and agricultural and the real estate – construction portfolios. As shown in the following table, Key’s exit loan portfolio accounted for $290 million, or 16.10%, of Key’s total nonperforming assets at September 30, 2010, compared to $385 million, or 18.46%, at June 30, 2010.

          Shown in the following table are the composition of Key’s exit loan portfolio at September 30, 2010, and June 30, 2010, the net charge-offs recorded on this portfolio for the second and third quarters of 2010, and the nonperforming status of these loans at September 30, 2010, and June 30, 2010.

Exit Loan Portfolio from Continuing Operations

		Balance								Change				Net Loan								Balance on
		Outstanding								9-30-10 vs.				Charge-offs								Nonperforming Status
in millions		9-30-10				6-30-10				6-30-10				3Q10				2Q10				9-30-10				6-30-10
Residential properties — homebuilder		$	148			$	195			$	(47	)		$	23			$	20			$	94			$	109
Residential properties — held for sale			8				25				(17	)			—				—				8				25
Total residential properties			156				220				(64	)			23				20				102				134
Marine and RV floor plan			225				268				(43	)			7				14				42				59
Commercial lease financing (a)			2,231				2,437				(206	)			47				44				88				133
Total commercial loans			2,612				2,925				(313	)			77				78				232				326
Home equity — Other			707				753				(46	)			13				16				16				17
Marine			2,355				2,491				(136	)			12				19				41				41
RV and other consumer			172				188				(16	)			3				1				1				1
Total consumer loans			3,234				3,432				(198	)			28				36				58				59
Total exit loans in loan portfolio		$	5,846			$	6,357			$	(511	)		$	105			$	114			$	290			$	385
Discontinued operations — education lending business (not included in exit loans above) (b)		$	6,651			$	6,686			$	(35	)		$	22			$	31			$	38			$	40

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 7

CAPITAL

          Key’s risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2010.

Capital Ratios

		9-30-10				6-30-10				3-31-10				12-31-09				9-30-09
Tier 1 common equity (a), (b)			8.59	%			8.07	%			7.51	%			7.50	%			7.64	%
Tier 1 risk-based capital (a)			14.26				13.62				12.92				12.75				12.61
Total risk-based capital (a)			18.18				17.80				17.07				16.95				16.65
Tangible common equity to tangible assets (b)			8.00				7.65				7.37				7.56				7.58

          As shown in the preceding table, at September 30, 2010, Key had an estimated Tier 1 common equity ratio of 8.59%, an estimated Tier 1 risk-based capital ratio of 14.26%, and a tangible common equity ratio of 8.00%.

          Transactions that caused the change in Key’s outstanding common shares over the past five quarters are summarized in the following table.

Summary of Changes in Common Shares Outstanding

in thousands		3Q10				2Q10				1Q10				4Q09				3Q09
Shares outstanding at beginning of period			880,515				879,052				878,535				878,559				797,246
Common shares exchanged for capital securities			—				—				—				—				81,278
Shares reissued (returned) under employee benefit plans			(187	)			1,463				517				(24	)			35
Shares outstanding at end of period			880,328				880,515				879,052				878,535				878,559

          During each of the first three quarters of 2010, Key made a $31 million cash dividend payment to the U.S. Treasury Department as a participant in the U.S. Treasury’s Capital Purchase Program. During 2009, Key made four quarterly dividend payments aggregating $125 million to the U.S. Treasury Department.

LINE OF BUSINESS RESULTS

          The following table shows the contribution made by each major business group to Key’s taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. The specific lines of business that comprise each of the major business groups are described under the heading “Line of Business Descriptions.” During the first quarter of 2010, Key realigned its reporting structure for its business groups. Prior to 2010, Consumer Finance consisted mainly of portfolios which were identified as exit or run-off portfolios and were included in Key’s National Banking segment. Effective for all periods presented, Key is reflecting the results of these exit portfolios in Other Segments. The automobile dealer floor plan business, previously included in Consumer Finance, has been realigned with the Commercial Banking line of business within the Community Banking segment. In addition, other previously identified exit portfolios included in the National Banking segment have been moved to Other Segments. For more detailed financial information pertaining to each business group and its respective lines of business, see the tables at the end of this release.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 8

Major Business Groups

														Percent change 3Q10 vs.
dollars in millions		3Q10				2Q10				3Q09				2Q10				3Q09
Revenue from continuing operations (TE)
Community Banking		$	601			$	608			$	630				(1.2	)	%		(4.6	)	%
National Banking (a)			430				409				381				5.1				12.9
Other Segments (b)			103				86				(23	)			19.8				N/M
Total Segments			1,134				1,103				988				2.8				14.8
Reconciling Items			(1	)			12				(7	)			N/M				85.7
Total		$	1,133			$	1,115			$	981				1.6		%		15.5		%
Income (loss) from continuing operations attributable to Key
Community Banking		$	57			$	35				—				62.9		%		N/M
National Banking (a)			130				34			$	(236	)			282.4				N/M
Other Segments (b)			19				28				(150	)			(32.1	)			N/M
Total Segments			206				97				(386	)			112.4				N/M
Reconciling Items			(2	)			—				5				N/M				N/M
Total		$	204			$	97			$	(381	)			110.3		%		N/M

TE = Taxable Equivalent, N/M = Not Meaningful

Community Banking

														Percent change 3Q10 vs.
dollars in millions		3Q10				2Q10				3Q09				2Q10				3Q09
Summary of operations
Net interest income (TE)		$	404			$	408			$	435				(1.0	)	%		(7.1	)	%
Noninterest income			197				200				195				(1.5	)			1.0
Total revenue (TE)			601				608				630				(1.2	)			(4.6	)
Provision for loan losses			75				121				160				(38.0	)			(53.1	)
Noninterest expense			458				451				488				1.6				(6.1	)	%
Income (loss) before income taxes (TE)			68				36				(18	)			88.9				N/M
Allocated income taxes and TE adjustments			11				1				(18	)			N/M				N/M
Net income (loss) attributable to Key		$	57			$	35			$	—				62.9		%		N/M
Average balances
Loans and leases		$	26,779			$	27,218			$	29,126				(1.6	)	%		(8.1	)	%
Total assets			30,004				30,292				31,956				(1.0	)			(6.1	)
Deposits			48,703				50,421				53,068				(3.4	)			(8.2	)
Assets under management at period end		$	17,816			$	16,980			$	17,090				4.9		%		4.2		%

TE = Taxable Equivalent, N/M = Not Meaningful

Additional Community Banking Data														Percent change 3Q10 vs.
dollars in millions		3Q10				2Q10				3Q09				2Q10				3Q09
Average deposits outstanding
NOW and money market deposit accounts		$	20,124			$	19,418			$	17,382				3.6		%		15.8		%
Savings deposits			1,872				1,870				1,776				.1				5.4
Certificates of deposit ($100,000 or more)			5,449				6,597				8,884				(17.4	)			(38.7	)
Other time deposits			9,596				11,248				14,705				(14.7	)			(34.7	)
Deposits in foreign office			368				421				478				(12.6	)			(23.0	)
Noninterest-bearing deposits			11,294				10,867				9,843				3.9				14.7
Total deposits		$	48,703			$	50,421			$	53,068				(3.4	)	%		(8.2	)	%
Home equity loans
Average balance		$	9,709			$	9,837			$	10,191
Weighted-average loan-to-value ratio (at date of origination)			70		%		70		%		70		%
Percent first lien positions			52				52				53
Other data
Branches			1,029				1,019				1,003
Automated teller machines			1,522				1,511				1,492

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 9

Community Banking Summary of Operations

          Community Banking recorded net income attributable to Key of $57 million for the third quarter of 2010, compared to net income attributable to Key of less than $1 million for the year-ago quarter. Decreases in the provision for loan losses and noninterest expense contributed to the improvement in the third quarter of 2010.

          Taxable-equivalent net interest income declined by $31 million, or 7%, from the third quarter of 2009, due to declines in average earning assets and average deposits. Average earning assets decreased $2 billion, or 8%, from the year-ago quarter, reflecting reductions in the commercial loan and home equity loan portfolios. Average deposits declined by $4 billion, or 8%. The mix of deposits continues to change from the year-ago quarter as higher-costing certificates of deposit originated in prior years mature, partially offset by growth in noninterest-bearing deposits and NOW accounts.

          Noninterest income increased by $2 million, or 1%, from the year-ago quarter, due to higher income from trust and investment services, electronic banking fees, and a reduction in the provision for credit losses from client derivatives. The increase in trust and investment services income reflects increased performance in the Key Private Bank, as well as growth in Key’s branch-based investment services. These factors were partially offset by the anticipated lower service charges on deposits from the implementation of Regulation E.

          The provision for loan losses declined by $85 million, or 53%, compared to the third quarter of 2009 due to improving economic conditions from one year ago.

          Noninterest expense declined by $30 million, or 6%, from the year-ago quarter. The decrease was driven by reductions in FDIC deposit insurance premiums of $9 million from the third quarter of 2009, a credit of $5 million recorded to the provision for losses on lending-related commitments compared to a charge of $7 million recorded in the third quarter of 2009, and a reduction in corporate allocated costs. These improvements were partially offset by increases in personnel expense and professional fees.

National Banking

		Percent change 3Q10 vs.
dollars in millions		3Q10				2Q10				3Q09				2Q10				3Q09
Summary of operations
Net interest income (TE)		$	201			$	199			$	217				1.0		%		(7.4	)	%
Noninterest income			229				210				164				9.0				39.6
Total revenue (TE)			430				409				381				5.1				12.9
Provision for loan losses			(25	)			99				439				N/M				N/M
Noninterest expense (a)			249				259				325				(3.9	)			(23.4	)
Income (loss) before income taxes (TE)			206				51				(383	)			303.9				N/M
Allocated income taxes and TE adjustments			76				17				(146	)			347.1				N/M
Net income (loss)			130				34				(237	)			282.4				N/M
Less: Net income (loss) attributable to noncontrolling interests			—				—				(1	)			—				100.0		%
Net income (loss) attributable to Key		$	130			$	34			$	(236	)			282.4		%		N/M
Average balances
Loans and leases		$	19,534			$	20,948			$	26,716				(6.8	)	%		(26.9	)	%
Loans held for sale			380				381				368				(.3	)			3.3
Total assets			23,765				24,781				31,856				(4.1	)			(25.4	)
Deposits			11,779				12,474				13,305				(5.6	)	%		(11.5	)
Assets under management at period end		$	41,902			$	41,882			$	49,055				—				(14.6	)	%

TE = Taxable Equivalent, N/M = Not Meaningful

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 10

National Banking Summary of Operations

          National Banking recorded net income attributable to Key of $130 million for the third quarter of 2010, compared to a net loss attributable to Key of $236 million for the same period one year ago. This improvement in the third quarter of 2010 was a result of a substantial decrease in the provision for loan losses.

          Taxable-equivalent net interest income decreased by $16 million, or 7%, compared to the third quarter of 2009, primarily due to lower earning assets, partially offset by improved earning asset yields. Average earning assets decreased by $7 billion, or 27%, from the year-ago quarter.

          Noninterest income increased $65 million from the third quarter of 2009. Investment banking and capital markets income increased $56 million, letter of credit and loan fees increased $18 million, and net gains from loan sales were $8 million, compared to net losses from loan sales of $9 million for the same period one year ago. These gains were offset by decreases in trust and investment services income of $8 million, operating lease revenue of $7 million, and various other miscellaneous income items from the third quarter of 2009.

          The provision for loan losses in the third quarter of 2010 was a $25 million credit compared to a $439 million charge for the same period one year ago. National Banking continued to experience improved asset quality for the fourth quarter in a row.

          Noninterest expense decreased by $76 million, or 23%, from the third quarter of 2009 as a result of a decrease in the write-off of intangible assets of $45 million and a credit of $4 million to the provision for losses on lending-related commitments compared to a charge of $20 million in the year-ago quarter. OREO expense, operating lease expense, and the provision for losses on LIHTC guaranteed funds also declined from the third quarter of 2009. These improvements were partially offset by an increase in personnel costs.

Other Segments

          Other Segments consist of Corporate Treasury, Key’s Principal Investing unit and various exit portfolios which were previously included within the National Banking segment. These exit portfolios were moved to Other Segments during the first quarter of 2010. Prior periods have been adjusted to conform with the current reporting of the financial information for each segment. Other Segments generated net income attributable to Key of $19 million for the third quarter of 2010, compared to a net loss attributable to Key of $150 million for the same period last year. These results reflect an increase in net interest income of $86 million from the third quarter of 2009 and a decrease in the provision for loan losses of $92 million.

Line of Business Descriptions

Community Banking

Regional Banking provides individuals with branch-based deposit and investment products, personal finance services and loans, including residential mortgages, home equity and various types of installment loans. This line of business also provides small businesses with deposit, investment and credit products, and business advisory services.

Regional Banking also offers financial, estate and retirement planning, and asset management services to assist high-net-worth clients with their banking, trust, portfolio management, insurance, charitable giving and related needs.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 11

Commercial Banking provides midsize businesses with products and services that include commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, derivatives and foreign exchange.

National Banking

Real Estate Capital and Corporate Banking Services consists of two business units, Real Estate Capital and Corporate Banking Services.

Real Estate Capital is a national business that provides construction and interim lending, permanent debt placements and servicing, equity and investment banking, and other commercial banking products and services to developers, brokers and owner-investors. This unit deals primarily with nonowner-occupied properties (i.e., generally properties in which at least 50% of the debt service is provided by rental income from nonaffiliated third parties). Real Estate Capital emphasizes providing clients with finance solutions through access to the capital markets.

Corporate Banking Services provides cash management, interest rate derivatives, and foreign exchange products and services to clients served by both the Community Banking and National Banking groups. Through its Public Sector and Financial Institutions businesses, Corporate Banking Services also provides a full array of commercial banking products and services to government and not-for-profit entities, and to community banks. A variety of cash management services are provided through the Global Treasury Management unit.

Equipment Finance meets the equipment leasing needs of companies worldwide and provides equipment manufacturers, distributors and resellers with financing options for their clients. Lease financing receivables and related revenues are assigned to other lines of business (primarily Institutional and Capital Markets and Commercial Banking) if those businesses are principally responsible for maintaining the relationship with the client.

Institutional and Capital Markets, through its KeyBanc Capital Markets unit, provides commercial lending, treasury management, investment banking, derivatives, foreign exchange, equity and debt underwriting and trading, and syndicated finance products and services to large corporations and middle-market companies.

Institutional and Capital Markets, through its Victory Capital Management unit, also manages or offers advice regarding investment portfolios for a national client base, including corporations, labor unions, not-for-profit organizations, governments and individuals. These portfolios may be managed in separate accounts, common funds or the Victory family of mutual funds.

          Cleveland-based KeyCorp (NYSE: KEY) is one of the nation’s largest bank-based financial services companies, with assets of approximately $94 billion at September 30, 2010. Key companies provide investment management, retail and commercial banking, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. In 2009, KeyBank was awarded its seventh consecutive “Outstanding” rating for economic development achievements under the Community Reinvestment Act, the only national bank among the 50 largest in the United States to achieve this distinction from the Office of the Comptroller of the Currency. Key has also been recognized for excellence in numerous areas of the multi-channel customer banking experience, including Corporate Insight’s 2009 and 2010 editions of Bank Monitor for online service. For more information about Key, visit https://www.key.com/.

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 12

Notes to Editors:

A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on Friday, October 22, 2010. An audio replay of the call will be available through October 29, 2010.

For up-to-date company information, media contacts and facts and figures about Key’s lines of business, visit our Media Newsroom at https://www.key.com/newsroom.

*****

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 13

Financial Highlights
(dollars in millions, except per share amounts)

		Three months ended
		9-30-10					6-30-10					9-30-09
Summary of operations
Net interest income (TE)		$	647				$	623				$	599
Noninterest income			486					492					382
Total revenue (TE)			1,133					1,115					981
Provision for loan losses			94					228					733
Noninterest expense			736					769					901
Income (loss) from continuing operations attributable to Key			204					97					(381	)
Income (loss) from discontinued operations, net of taxes (b)			15					(27	)				(16	)
Net income (loss) attributable to Key			219					70					(397	)
Income (loss) from continuing operations attributable to Key common shareholders		$	163				$	56				$	(422	)
Income (loss) from discontinued operations, net of taxes (b)			15					(27	)				(16	)
Net income (loss) attributable to Key common shareholders			178					29					(438	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders		$	.19				$	.06				$	(.50	)
Income (loss) from discontinued operations, net of taxes (b)			.02					(.03	)				(.02	)
Net income (loss) attributable to Key common shareholders			.20					.03					(.52	)
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution			.19					.06					(.50	)
Income (loss) from discontinued operations, net of taxes — assuming dilution (b)			.02					(.03	)				(.02	)
Net income (loss) attributable to Key common shareholders — assuming dilution			.20					.03					(.52	)
Cash dividends paid			.01					.01					.01
Book value at period end			9.54					9.19					9.39
Tangible book value at period end			8.46					8.10					8.29
Market price at period end			7.96					7.69					6.50
Performance ratios
From continuing operations:
Return on average total assets			.93		%			.44		%			(1.62	)	%
Return on average common equity			7.82					2.84					(20.30	)
Net interest margin (TE)			3.35					3.17					2.80
From consolidated operations:
Return on average total assets			.93		%			.30		%			(1.62	)	%
Return on average common equity			8.54					1.47					(21.07	)
Net interest margin (TE)			3.26					3.12					2.79
Loan to deposit			91.80					93.43					100.90
Capital ratios at period end
Key shareholders’ equity to assets			11.84		%			11.49		%			11.31		%
Tangible Key shareholders’ equity to tangible assets			10.93					10.58					10.41
Tangible common equity to tangible assets (a)			8.00					7.65					7.58
Tier 1 common equity (a), (c)			8.59					8.07					7.64
Tier 1 risk-based capital (c)			14.26					13.62					12.61
Total risk-based capital (c)			18.18					17.80					16.65
Leverage (c)			12.44					12.09					12.07
Asset quality — from continuing operations
Net loan charge-offs		$	357				$	435				$	587
Net loan charge-offs to average loans			2.69		%			3.18		%			3.59		%
Allowance for loan losses		$	1,957				$	2,219				$	2,485
Allowance for credit losses			2,056					2,328					2,579
Allowance for loan losses to period-end loans			3.81		%			4.16		%			4.00		%
Allowance for credit losses to period-end loans			4.00					4.36					4.15
Allowance for loan losses to nonperforming loans			142.64					130.30					108.52
Allowance for credit losses to nonperforming loans			149.85					136.70					112.62
Nonperforming loans at period end		$	1,372				$	1,703				$	2,290
Nonperforming assets at period end			1,801					2,086					2,799
Nonperforming loans to period-end portfolio loans			2.67		%			3.19		%			3.68		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets			3.48					3.88					4.46
Trust and brokerage assets
Assets under management		$	59,718				$	58,862				$	66,145
Nonmanaged and brokerage assets			26,913					27,189					25,883
Other data
Average full-time equivalent employees			15,584					15,665					16,436
Branches			1,029					1,019					1,003
Taxable-equivalent adjustment		$	7				$	6				$	7

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 14

Financial Highlights (continued)
(dollars in millions, except per share amounts)

		Nine months ended
		9-30-10					9-30-09
Summary of operations
Net interest income (TE)		$	1,902				$	1,769
Noninterest income			1,428					1,566
Total revenue (TE)			3,330					3,335
Provision for loan losses			735					2,403
Noninterest expense			2,290					2,683
Income (loss) from continuing operations attributable to Key			244					(1,070	)
Income (loss) from discontinued operations, net of taxes (b)			(10	)				(41	)
Net income (loss) attributable to Key			234					(1,111	)
Income (loss) from continuing operations attributable to Key common shareholders		$	121				$	(1,323	)
Income (loss) from discontinued operations, net of taxes (b)			(10	)				(41	)
Net income (loss) attributable to Key common shareholders			111					(1,364	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders		$	.14				$	(2.07	)
Income (loss) from discontinued operations, net of taxes (b)			(.01	)				(.06	)
Net income (loss) attributable to Key common shareholders			.13					(2.14	)
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution			.14					(2.07	)
Income (loss) from discontinued operations, net of taxes — assuming dilution (b)			(.01	)				(.06	)
Net income (loss) attributable to Key common shareholders — assuming dilution			.13					(2.14	)
Cash dividends paid			.03					.0825
Performance ratios
From continuing operations:
Return on average total assets			.37		%			(1.49	)	%
Return on average common equity			2.00					(21.31	)
Net interest margin (TE)			3.24					2.77
From consolidated operations:
Return on average total assets			.33		%			(1.48	)	%
Return on average common equity			1.84					(22.03	)
Net interest margin (TE)			3.15					2.74
Asset quality — from continuing operations
Net loan charge-offs		$	1,314				$	1,549
Net loan charge-offs to average loans			3.19		%			3.03		%
Other data
Average full-time equivalent employees			15,673					16,943
Taxable-equivalent adjustment		$	20				$	19

(a)		The following table entitled “GAAP to Non-GAAP Reconciliations” presents the computations of certain financial measures related to “tangible common equity” and “Tier 1 common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)		In September 2009, management made the decision to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank National Association. In April 2009, management made the decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of these decisions, Key has accounted for these businesses as discontinued operations.
(c)		9-30-10 ratio is estimated.

TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles

KeyCorp Reports Third Quarter 2010 and Year-To-Date Profit
October 22, 2010
Page 15

GAAP to Non-GAAP Reconciliations
(dollars in millions, except per share amounts)

The table below presents the computations of certain financial measures related to “tangible common equity” and “Tier 1 common equity.” The tangible common equity ratio has become a focus of some investors, and management believes that this ratio may assist investors in analyzing Key’s capital position absent the effects of intangible assets and preferred stock. Traditionally, the banking regulators have assessed bank and bank holding company capital adequacy based on both the amount and composition of capital, the calculation of which is prescribed in federal banking regulations. As a result of the Supervisory Capital Assessment Program, the Federal Reserve has focused its assessment of capital adequacy on a component of Tier 1 capital, known as Tier 1 common equity. Because the Federal Reserve has long indicated that voting common shareholders’ equity (essentially Tier 1 capital less preferred stock, qualifying capital securities and noncontrolling interests in subsidiaries) generally should be the dominant element in Tier 1 capital, such a focus is consistent with existing capital adequacy guidelines and does not imply a new or ongoing capital standard.

Because the Tier 1 common equity is neither formally defined by GAAP nor prescribed in amount by federal banking regulations, this measure is considered to be a non-GAAP financial measure. Since analysts and banking regulators may assess Key’s capital adequacy using tangible common equity and Tier 1 common equity, management believes it is useful to provide investors the ability to assess Key’s capital adequacy on these same bases. The table also reconciles the GAAP performance measures to the corresponding non-GAAP measures.

The table also shows the computation for pre-provision net revenue, which is not formally defined by GAAP. Management believes that eliminating the effects of provision for loan losses facilitates the analysis of results by presenting them on a more comparable basis.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components and to ensure that Key’s performance is properly reflected to facilitate period-to-period comparisons. Although these non-GAAP financial measures are frequently used by investors in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.

		Three months ended
		9-30-10					6-30-10					9-30-09
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP)		$	11,134				$	10,820				$	10,970
Less:     Intangible assets			956					959					971
Preferred Stock, Series B			2,442					2,438					2,426
Preferred Stock, Series A			291					291					291
Tangible common equity (non-GAAP)		$	7,445				$	7,132				$	7,282
Total assets (GAAP)		$	94,043				$	94,167				$	96,989
Less:     Intangible assets			956					959					971
Tangible assets (non-GAAP)		$	93,087				$	93,208				$	96,018
Tangible common equity to tangible assets ratio (non-GAAP)			8.00		%			7.65		%			7.58		%
Tier 1 common equity at period end
Key shareholders’ equity (GAAP)		$	11,134				$	10,820				$	10,970
Qualifying capital securities			1,791					1,791					1,790
Less:     Goodwill			917					917					917
Accumulated other comprehensive income (loss) (a)			247					126					11
Other assets (b)			382					469					406
Total Tier 1 capital (regulatory)			11,379					11,099					11,426
Less:     Qualifying capital securities			1,791					1,791					1,790
Preferred Stock, Series B			2,442					2,438					2,426
Preferred Stock, Series A			291					291					291
Total Tier 1 common equity (non-GAAP)		$	6,855				$	6,579				$	6,919
Net risk-weighted assets (regulatory) (b), (c)		$	79,797				$	81,498				$	90,587
Tier 1 common equity ratio (non-GAAP) (c)			8.59		%			8.07		%			7.64		%
Pre-provision net revenue
Net interest income (GAAP)		$	640				$	617				$	592
Plus:     Taxable-equivalent adjustment			7					6					7
Noninterest income			486					492					382
Less:     Noninterest expense			736					769					901
Pre-provision net revenue from continuing operations (non-GAAP)		$	397				$	346				$	80