KEYCORP /NEW/ - FORM 8-K - EX-99.2

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KeyCorp

Third Quarter 2011 Earnings Review

October 20, 2011

Beth E. Mooney

Chairman and

Chief Executive Officer

Jeffrey B. Weeden

Chief Financial Officer

Exhibit 99.2

PRIVATE SECURITIES LITIGATION REFORM ACT OF

1995 FORWARD-LOOKING STATEMENT DISCLOSURE

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of

1995, including statements about Key’s financial condition, results of operations, earnings outlook, asset quality trends and

profitability. Forward-looking statements are not historical facts but instead represent only management’s current

expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of

Key’s control. Key’s actual results and financial condition may differ, possibly materially, from the anticipated results and

financial condition indicated in these forward-looking statements. Factors that could cause Key’s actual results to differ

materially from those described in the forward-looking statements can be found in KeyCorp’s Annual Report on Form 10-K

for the year ended December 31, 2010, and its Quarterly Reports on Form 10-Q for the periods ended March 31, 2011 and

June 30, 2011, which have been filed with the Securities and Exchange Commission and are available on Key’s website

(www.key.com/ir) and on the Securities and Exchange Commission’s website (www.sec.gov). Forward-looking statements

are not guarantees of future performance and should not be relied upon as representing management’s views as of any

subsequent date. Key does not undertake any obligation to update the forward-looking statements to reflect the impact of

circumstances or events that may arise after the date of the forward-looking statements.

Positive momentum in financial results

Continued improvement in credit quality

Well

controlled

expenses

driving

create

positive

operating

leverage

Inflection point for loan portfolio

Momentum

the

business

–

new

client

acquisition

and

growth

Investing in the business

Growing the

Franchise

Maintained strong balance sheet and moderate risk profile

Disciplined approach to capital deployment to maximize shareholder value

Positioned to meet Basel III requirements

Execution of

Business Plan

Investor Highlights –

Third Quarter 2011

Strategic statement: Key grows by building enduring relationships

through client-focused solutions and extraordinary service

Disciplined

Capital

Management

(a)

Continuing operations, unless otherwise noted

(b)

Represents period-end consolidated total loans and loans held for sale (excluding education loans in the securitization trusts)

divided by period-end consolidated total deposits (excluding deposits in foreign office)

Executing Business Plan: Progress on Targets for Success

Improve funding mix

Focus on risk-adjusted returns

Grow client relationships

Leverage Key’s total client solutions and

cross-selling capabilities

>3.50%

3.09%

Net interest margin

Growing high

quality, diverse

revenue streams

>40%

47%

Noninterest income

to total revenue

Improve efficiency and effectiveness

Leverage technology

Change cost base to more variable from fixed

60-65%

67%

Efficiency ratio

Creating positive

operating

leverage

Execute our client insight-driven relationship

model

Lower credit costs

Improved funding mix with lower cost core

deposits

1.00-1.25%

1.14%

Return on average assets

Executing our

strategies

Focus on relationship clients

Exit noncore portfolios

Limit concentrations

Focus on risk-adjusted returns

40-50 bps

.90%

NCOs to average loans

Returning to a

moderate risk

profile

Improve risk profile of loan portfolio and grow

relationships

Improve deposit mix and grow deposit base

90-100%

86%

Loan to deposit ratio

(b)

Core funded

Action Plans

Targets

KEY

3Q11

KEY Metrics

(a)

KEY Business

Model

Financial Review

Financial Summary –

Third Quarter 2011

Capital

(b)

Asset Quality

(a)

Financial

Performance

(a)

Metrics

TE = Taxable equivalent, EOP = End of Period

(a) From continuing operations

(b) From consolidated operations

3Q11

2Q11

3Q10

Income from continuing operations attributable to Key

$.24

$.26

$.19

common shareholders

Net interest margin (TE)

3.09%

3.19%

3.35%

Return on average total assets

1.14

1.23

.93

Tier 1 common equity

(c)

11.34%

11.14%

8.61%

Tier 1 risk-based capital

(c)

13.55

13.93

14.30

Tangible common equity to tangible assets

9.82

9.67

8.00

Book value per common share

$10.09

$9.88

$9.54

Net loan charge-offs to average loans

.90%

1.11%

2.69%

NPLs to EOP portfolio loans

1.64

1.76

2.67

NPAs to EOP portfolio loans + OREO + Other NPAs

1.89

1.98

3.48

Allowance for loan losses to period-end loans

2.35

2.57

3.81

Allowance for loan losses to NPLs

143.53

146.08

142.64

Loan portfolio at inflection point as period-end

loans grew during the third quarter

Period-end Commercial, Financial and Agricultural

loans increased by 5.7% in 3Q11, while average

balances grew 2.7% from the prior quarter

Commercial Real Estate loans continued to

decline, but at a slower pace

Slower run-off in exit portfolio and focus on

targeted segments positions Key for future loan

growth

$10

$20

$30

$40

$50

$60

3Q10

4Q10

1Q11

2Q11

3Q11

Stabilizing Loan Portfolio

$ in billions

Highlights

Average Commercial, Financial & Agricultural Loans

CF&A loans

Utilization rate

Quarterly % Change in Average CF&A Loans

Average Loans

Exit Portfolios

Home Equity & Other

CF&A & Leasing

Commercial Real Estate

$ in billions

$52.6

$50.8

$49.3

$48.5

$17.4

$16.9

$16.3

$16.6

$16.9

44.4%

43.4%

43.2%

42.9%

42.7%

$10

$15

$20

3Q10

4Q10

1Q11

2Q11

3Q11

30%

40%

50%

60%

(9.7)%

(10.3)%

(5.2)%

(5.7)%

(4.4)%

(1.5)%

3.7%

2.7%

(2.3)%

(12.0)%

(8.0)%

(4.0)%

.0%

4.0%

8.0%

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

$48.0

$11.7

$12.4

$13.6

$15.0

$17.3

2.69%

2.66%

2.82%

2.60%

2.59%

$10

$15

$20

3Q10

4Q10

1Q11

2Q11

3Q11

.00%

1.00%

2.00%

3.00%

4.00%

5.00%

$43.6

$45.8

$45.4

$45.3

$46.5

.15%

.17%

.21%

.18%

$20

$30

$40

$50

3Q10

4Q10

1Q11

2Q11

3Q11

.00%

.10%

.20%

.30%

86%

85%

81%

80%

25%

50%

75%

100%

3Q10

4Q10

1Q11

2Q11

3Q11

Improving Deposit Mix

Highlights

Average Non-time Deposits

(a)

Higher cost CDs continue to decline, while lower

cost deposits have remained strong

Improved funding mix has reduced the cost of

deposits

Total CD maturities and average cost

–

2011: $2.5 billion at 1.23%

–

2012: $5.7 billion at 2.44%

–

2013 & beyond: $2.9 billion at 3.82%

Average

CD Balances

$ in billions

(a) Excludes time deposits and deposits in foreign office

(b) Represents period-end consolidated total loans and loans held for sale (excluding education loans in the securitization

trusts) divided by period-end consolidated total deposits (excluding deposits in foreign office)

Loan to Deposit Ratio

(b)

Continuing operations

Discontinued operations

90%

92%

91%

Cost of non-time deposits

Non-time deposits

Average rate on CDs

Total average CDs

86%

$914

$950

$1,089

1.64%

1.76%

1.82%

2.13%

2.67%

$500

$1,000

$1,500

$2,000

3Q10

4Q10

1Q11

2Q11

3Q11

0.00%

1.00%

2.00%

3.00%

4.00%

$1,801

$1,338

$1,131

$1,230

$1,372

$1,604

$1,957

3.20%

2.83%

3.81%

2.57%

2.35%

$500

$1,000

$1,500

$2,000

3Q10

4Q10

1Q11

2Q11

3Q11

0.0%

2.0%

4.0%

6.0%

143.5%

146.1%

155.0%

150.2%

142.6%

50%

100%

150%

200%

3Q10

4Q10

1Q11

2Q11

3Q11

$10

$357

$256

$193

$134

$109

$(8)

$(40)

$(97)

$94

2.69%

2.00%

1.11%

.90%

1.59%

-$100

$100

$200

$300

$400

3Q10

4Q10

1Q11

2Q11

3Q11

-1.0%

.0%

1.0%

2.0%

3.0%

4.0%

Nonperforming Assets

Net Charge-offs & Provision for Loan Losses

NPLs

NPLs to period-end loans

NCOs

Provision for loan losses

NCOs to average loans

Allowance for Loan Losses

Allowance to Nonperforming Loans

Allowance for loan losses

ALLL to period-end loans

$ in millions

NPLs held for sale,

OREO & other NPAs

Continued Improvement in Asset Quality

Total Revenue

TE = Taxable equivalent

$ in millions

Continuing Operations

Net interest margin

Net interest income

Highlights

Net Interest Margin (TE) Trend

Net interest income and NIM impacted by:

–

Low interest rate environment

–

Higher levels of short-term investments

–

Excess liquidity

New client acquisition and execution of

relationship-based model provide opportunities

to grow noninterest income

Noninterest Income and % of Total Revenue

Noninterest income

Noninterest income to

total revenue

$ in millions

$555

$570

$604

$635

$647

3.31%

3.25%

3.35%

3.19%

3.09%

$150

$300

$450

$600

$750

3Q10

4Q10

1Q11

2Q11

3Q11

0.00%

2.00%

4.00%

6.00%

$486

$526

$457

$454

$483

46.5%

44.3%

42.9%

43.1%

45.3%

$200

$400

$600

3Q10

4Q10

1Q11

2Q11

3Q11

30.0%

40.0%

50.0%

60.0%

$359

$365

$371

$380

$382

$377

$379

$330

$300

$310

$200

$400

$600

$800

3Q10

4Q10

1Q11

2Q11

3Q11

Focused Expense Management

Noninterest Expense

Personnel expense

$ in millions

Highlights

Noninterest expense increased by $12 million

compared to 2Q11

–

Decreased credit for losses on lending-

related commitments

–

Increased marketing expense

Continued focus on expense management

Average FTEs

Non-personnel expense

$680

$701

$744

$736

15,973

15,349

15,772

16,436

15,665

15,584

15,424

15,301

15,490

14,000

15,000

16,000

17,000

18,000

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

$692

$1,038

$692

$346

Total revenue

Noninterest

expense

PPNR

3Q11 Pre-Provision Net Revenue

Pre-Provision Net Revenue Trend

Pre-Provision

Net

Revenue

(a)

and

ROAA

(b)

(a) Net interest income plus taxable-equivalent adjustment and noninterest income less noninterest expense

(b) From continuing operations

Return on Average Assets

$ in millions

Noninterest

income

47%

Personnel

expense

55%

$397

$417

$360

$344

$346

$100

$200

$300

$400

$500

3Q10

4Q10

1Q11

2Q11

3Q11

1.14%

1.23%

1.32%

1.53%

.93%

.00%

.50%

1.00%

1.50%

2.00%

3Q10

4Q10

1Q11

2Q11

3Q11

Net interest

income

53%

Non-personnel

expense

45%

Peer leading capital position supports growth

Positioned for successful transition to Basel III

Continued capital generation through execution

of strategy

Disciplined approach to capital management

Tier 1 Common Equity

(a)

Tangible Common Equity to Tangible Assets

Strong Capital Ratios

Highlights

Book Value per Share

9.82%

9.67%

8.00%

8.19%

9.16%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

3Q10

4Q10

1Q11

2Q11

3Q11

$10.09

$9.88

$9.54

$9.52

$9.58

$8.00

$8.50

$9.00

$9.50

$10.00

$10.50

3Q10

4Q10

1Q11

2Q11

3Q11

11.34%

11.14%

8.61%

9.34%

10.74%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

3Q10

4Q10

1Q11

2Q11

3Q11

(a)

9-30-11 ratio is estimated.

Appendix

3.19%

3.22%

3.21%

3.33%

3.19%

$10

$15

$20

$25

3Q10

4Q10

1Q11

2Q11

3Q11

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

$20.3

$21.3

$21.2

$19.0

$18.5

Average Total Investment Securities

Highlights

Average AFS securities

$ in billions

High Quality Investment Portfolio

Portfolio composed of Agency or GSE backed:

GNMA, Fannie & Freddie

–

No private label MBS or financial paper

Average portfolio maturity at 9/30/11: 2.3 years

Unrealized net gain of $648 million on available-

for-sale securities portfolio at 9/30/11

Mortgage paydowns

in 3Q11 were $1.1 billion vs.

$942 million in 2Q11

3Q11 purchases classified as held-to-maturity

Securities to Total Assets

(a)

(a) Includes end of period held-to-maturity and available-for-sale securities

21.0%

21.1%

22.6%

23.9%

21.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

3Q10

4Q10

1Q11

2Q11

3Q11

Average yield

Average HTM securities

N/M = Not Meaningful

(a)

Net charge-off amounts are annualized in calculation. NCO ratios for discontinued operations and consolidated Key exclude education

loans in the securitization trusts since valued at fair-market value

(b)

9-30-11 allowance by portfolio is estimated. Allowance/period loans ratios for discontinued operations and consolidated Key exclude

education loans in the securitization trusts since valued at fair-market value

Credit Quality

Credit Quality by Portfolio

$ in millions

Period-end

loans

Average

loans

9/30/11

3Q11

2Q11

3Q11

2Q11

9/30/11

6/30/11

9/30/11

Commercial, financial and agricultural

$17,848

$17,381

$22

$36

.50

.85

$188

$213

$370

2.07

196.81

Commercial real estate:

Commercial mortgage

7,958

7,978

1.24

.57

237

230

305

3.83

128.69

Construction

1,456

1,545

2.05

5.47

131

5.98

93.55

Commercial lease financing

5,957

6,045

.13

.26

1.61

309.68

Real estate -

residential mortgage

1,875

1,853

1.07

1.32

1.81

38.64

Home equity:

Key Community Bank

9,347

9,388

.76

1.15

102

101

110

1.18

107.84

Other

565

582

5.45

6.56

6.19

291.67

Consumer other—

Key Community Bank

1,187

1,169

3.05

3.14

3.45

N/M

Consumer other:

Marine

1,871

1,928

2.26

.78

2.73

159.38

Other

131

139

2.85

5.49

1.53

200.00

Continuing total

$48,195

$48,008

$109

$134

.90

1.11

$788

$842

$1,131

2.35

143.53

Discontinued

operations

education

lending business

5,984

6,171

3.93

4.02

115

3.65

N/M

Consolidated total

$54,179

$140

$166

1.09

1.29

$810

$863

$1,246

2.43

153.83

Allowance /

period-end

loans

(b)

Allowance /

NPLs

Net loan

charge-offs

Net loan

charge-offs

(a)

average loans

Nonperforming

loans

Ending

allowance

(b)

Commercial Real Estate by Property Type and Geography

(a) Nonresidential land and development loans

N/M = Not Meaningful

Commercial Real Estate Loans –

9/30/11

$ in millions

Geographic Region

% of

Commercial

West

Southwest

Central

Midwest

Southeast

Northeast

Total

Total CRE

Mortgage

Construction

Nonowner-occupied :

Retail properties

$338

$138

$220

$233

$386

$200

$1,515

16.1

$1,246

$269

Multifamily properties

228

143

191

275

328

240

1,405

14.9

1,021

384

Health facilities

189

163

115

207

175

855

9.1

805

Office buildings

116

102

251

671

7.1

559

112

Warehouses

229

107

539

5.7

509

Residential properties

292

3.1

196

Hotels/motels

216

2.3

174

Land and development

(a)

173

1.9

160

Manufacturing facilities

Other

296

3.2

284

Total nonowner-occupied

1,293

386

798

956

1,358

1,220

6,011

63.9

4,756

1,255

Owner-occupied

1,375

312

772

129

779

3,403

36.1

3,202

201

Total

$2,668

$422

$1,110

$1,728

$1,487

$1,999

$9,414

100.0

$7,958

$1,456

Nonowner-occupied: September 30, 2011

Nonperforming loans

$50

$49

$39

$38

$50

$228

N/M

$141

$87

90+ days past due

N/M

30-89 days past due

105

N/M

Nonowner-occupied: June 30, 2011

Nonperforming loans

$53

$56

$50

$51

$54

$270

N/M

$149

$121

90+ days past due

N/M

30-89 days past due

N/M

(a) Nonresidential land and development loans

Commercial Real Estate

Commercial Real Estate Credit Quality

$ in millions

Period-end

loans

9-30-11

6-30-11

9-30-11

6-30-11

9-30-11

6-30-11

Retail properties

$1,515

$1,578

$63

$66

Multifamily properties

1,405

1,321

(1)

Health facilities

855

967

Office builldings

671

756

Warehouses

539

511

Residential properties

292

388

Hotels/motels

216

267

173

198

(8)

Other CRE

345

335

Total nonowner-occupied

6,011

6,321

228

270

Owner-occupied

3,403

3,379

102

Total

$9,414

$9,700

$330

$361

$33

$36

Nonperforming

loans

charge-offs

Net loan

Land and development

(a)

(a)

Average LTVs are at origination.

Community Bank –

Home Equity

Exit Portfolio –

Home Equity

$ in millions, except average loan size

(a)

Home Equity Loans –

9/30/11

Vintage (% of Loans)

Loan

Balances

Average Loan

Size ($)

Average

FICO

Average

LTV

% of Loans

LTV>90%

2010 and

2011

2009

2008

2007

2006 and

prior

Home equity loans and lines

First lien

23,215

747

Second lie

540

25,138

731

32.7

Total home equity loans and lines

565

25,047

731

31.2

Nonaccrual loans

First lien

19,951

714

Second lie

27,778

709

39.0

Total home equity nonaccrual loans

27,152

710

36.7

Exit Portfolio - Home Equity

Third quarter net charge-offs

Net loan charge-offs to average loans

5.45

Vintage (% of Loans)

Loan

Balances

Average Loan

Size ($)

Average

FICO

Average

LTV

% of Loans

LTV>90%

2010 and

2011

2009

2008

2007

2006 and

prior

Home equity loans and lines

First lien

4,927

58,180

751

Second lien

4,420

44,903

750

3.4

Total home equity loans and lines

9,347

51,043

751

1.9

Nonaccrual loans

First lien

70,886

714

Second lien

53,652

708

3.8

Total home equity nonaccrual loans

102

62,075

711

2.0

Community Bank - Home Equity

Third quarter net charge-offs

Net loan charge-offs to average loans

.76

$4,435

$4,736

$5,846

$5,388

$5,048

-$500

$1,000

$2,500

$4,000

$5,500

$7,000

3Q10

4Q10

1Q11

2Q11

3Q11

Exit Loan Portfolio Trend (Excluding Discontinued Operations)

Exit Loan Portfolio

$ in millions

Exit Loan Portfolio

Change

9-30-11 vs.

9-30-11

6-30-11

3Q11

2Q11

9-30-11

6-30-11

Residential

properties

–

homebuilder

$48

$62

$(14)

$28

$33

Marine and RV floor plan

122

(30)

Commercial lease financing

(a)

1,728

1,826

(98)

Total commercial loans

1,868

2,010

(142)

Home

equity

–

Other

565

595

(30)

Marine

1,871

1,989

(118)

RV and other consumer

131

142

(11)

Total consumer loans

2,567

2,726

(159)

Total exit loans in loan portfolio

$4,435

$4,736

$(301)

$27

$25

$119

$126

Discontinued

operations

education

lending business (not included in exit loans above)

(b)

$5,984

$6,261

$(277)

$31

$32

$22

$21

Balance on

Nonperforming

Status

Balance

Outstanding

Charge-offs

Net Loan

(a)

Includes the business aviation, commercial vehicle, office products, construction and industrial leases, and Canadian lease financing

portfolios; and all remaining balances related to lease in, lease out; sale in, sale out; service contract leases; and qualified technological

equipment leases

(b)

Includes loans in Key’s consolidated education loan securitization trusts

Credit Quality Trends

Quarterly Change in Criticized Outstandings

(a)

Delinquencies to Period-end Total Loans

(a)

Loan and lease outstandings

.99%

.97%

.98%

.95%

1.29%

1.14%

1.59%

1.72%

1.61%

1.87%

1.69%

1.17%

.24%

.25%

.32%

.48%

.30%

.45%

.78%

.56%

.60%

.82%

.62%

.57%

.42%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

30 –

89 days delinquent

90+ days delinquent

(10.2)%

(12.3)%

(11.2)%

(16.7)%

(14.3)%

(12.8)%

(1.0)%

(8.1)%

(2.0)%

2.8%

35.1%

41.5%

17.1%

-20%

-10%

10%

20%

30%

40%

50%

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

Attached files

KEYCORP /NEW/ Reports

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