KEYCORP /NEW/ - FORM 8-K - EX-99.1

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8-K - 8-K - KEYCORP /NEW/	d525464d8k.htm

EXHIBIT 99.1

Consolidated Statements of Income (Unaudited)

(dollars in millions, except per share amounts)


	Twelve months ended			Three months ended
	12-31-12			3-31-13		12-31-12			9-30-12			6-30-12		3-31-12
Interest income
Loans	$	2,155		$	548	$	563		$	538		$	518	$	536
Loans held for sale		20			4		5			5			5		5
Securities available for sale		399			80		85			93			105		116
Held-to-maturity securities		69			18		19			21			17		12
Trading account assets		18			6		3			4			5		6
Short-term investments		6			2		2			1			2		1
Other investments		38			9		11			9			10		8

Total interest income		2,705			667		688			671			662		684

Interest expense
Deposits		257			45		49			60			71		77
Federal funds purchased and securities sold under repurchase agreements		4			1		1			1			1		1
Bank notes and other short-term borrowings		7			1		2			1			2		2
Long-term debt		173			37		35			37			50		51

Total interest expense		441			84		87			99			124		131


Net interest income		2,264			583		601			572			538		553
Provision (credit) for loan and lease losses		229			55		57			109			21		42

Net interest income (expense) after provision for loan and lease losses		2,035			528		544			463			517		511

Noninterest income^(a)
Trust and investment services income		375			95		95			94			90		96
Investment banking and debt placement fees		327			79		110			83			73		61
Service charges on deposit accounts		287			69		75			74			70		68
Operating lease income and other leasing gains		195			23		19			66			58		52
Corporate services income		168			45		41			39			44		44
Cards and payments income		135			37		38			37			31		29
Corporate-owned life insurance income		122			30		36			26			30		30
Consumer mortgage income		40			7		11			11			9		9
Net gains (losses) from principal investing		72			8		2			11			24		35
Other income^(b)		135			32		12			77			28		18

Total noninterest income		1,856			425		439			518			457		442

Noninterest expense
Personnel		1,570			391		422			399			377		372
Net occupancy		260			64		69			65			62		64
Computer processing		164			39		38			42			43		41
Business services and professional fees		190			35		54			48			51		37
Equipment		107			26		27			27			27		26
Operating lease expense		57			12		12			13			15		17
Marketing		68			6		20			18			17		13
FDIC assessment		31			8		8			7			8		8
Intangible asset amortization on credit cards		14			8		8			6			—		—
Other intangible asset amortization		9			4		4			3			1		1
Provision (credit) for losses on lending-related commitments		(16	)		3		(14	)		(8	)		6		—
OREO expense, net		15			3		1			1			7		6
Other expense		349			82		85			91			79		94

Total noninterest expense		2,818			681		734			712			693		679

Income (loss) from continuing operations before income taxes		1,073			272		249			269			281		274
Income taxes		231			70		53			51			54		73

Income (loss) from continuing operations		842			202		196			218			227		201
Income (loss) from discontinued operations, net of taxes^(c)		23			3		7			3			14		(1	)

Net income (loss)		865			205		203			221			241		200
Less: Net income (loss) attributable to noncontrolling interests		7			1		—			2			5		—

Net income (loss) attributable to Key	$	858		$	204	$	203		$	219		$	236	$	200


Income (loss) from continuing operations attributable to Key common shareholders	$	813		$	196	$	190		$	211		$	217	$	195
Net income (loss) attributable to Key common shareholders		836			199		197			214			231		194

Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.87		$	.21	$	.21		$	.23		$	.23	$	.21
Income (loss) from discontinued operations, net of taxes^(c)		.02			—		.01			—			.01		—
Net income (loss) attributable to Key common shareholders^(d)		.89			.22		.21			.23			.24		.20

Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.86		$	.21	$	.20		$	.22		$	.23	$	.20
Income (loss) from discontinued operations, net of taxes^(c)		.02			—		.01			—			.01		—
Net income (loss) attributable to Key common shareholders^(d)		.89			.21		.21			.23			.24		.20

Cash dividends declared per common share	$	.18		$	.05	$	.05		$	.05		$	.05	$	.03

Weighted-average common shares outstanding (000)		938,941			920,316		925,725			936,223			944,648		949,342

Weighted-average common shares and potential common shares outstanding (000)^(e)		943,259			926,051		930,382			940,764			948,087		953,971

(a)	The noninterest income line items have been changed for all prior periods presented to reflect Key’s current business mix.

(b)	For the three months ended March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012, Key did not have any impairment losses related to securities.

(c)

In April 2009, management decided to wind down the operations of Austin Capital Management, Ltd., a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, management decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank National Association. In February 2013, Key announced that it has agreed to sell its investment subsidiary, Victory Capital Management, and its broker-dealer affiliate, Victory Capital Advisors, to a private equity fund. As a result of these decisions, Key has accounted for these business as discontinued operations.

(d)	Earnings per share may not foot due to rounding.

(e)	Assumes conversion of stock options and/or Preferred Series A shares, as applicable.

KEYCORP /NEW/ - FORM 8-K - EX-99.1 - April 18, 2013

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