KeyCorp Morgan Stanley U.S. Financials Conference June 11, 2025 Ken Gavrity Head of the Commercial Bank
Commercial Banking: Relevance to Total KeyCorp Middle Market Total Revenue 27 Markets ➔ Strong coverage across top Middle Market MSAs ~4.6K customers ➔ 98% of deposits attached to an operating account 94% have at least 1 non-lending product with Key National Footprint ➔ ~8.3K Commercial Clients 95% of deposits attached to an operating account ~1/3 of new Commercial clients are payments led w/ no credit extended(3) Commercial Payments 2024(1) ~$58Bn Commercial Deposits Commercial Bank Organization 2 Total Average Deposits 2024 Growth & Returns Significant source of primacy to the bank Product, Digital, Onboarding, and Servicing All together in one organization, built around the customer ~17-20% Avg ROE across our Middle Market business(2) ~10% Commercial Payments Revenue CAGR over last 5 years (1) Total Key revenue excludes 2024 securities repositioning loss of $1.8 billion; (2) FY2022 - FY2024; (3) FY2024 ~$2Bn Commercial Payments & Middle Market
A Purpose-Built Platform for Middle Market Clients 3 A multi-decade journey to create a platform tailored to the needs of Middle Market clients… …with significant opportunity given our <5% market penetration 1998 2014 2022 2023 Acquisition of McDonald Investments Build out of Middle Market Investment Banking practice Integrated Servicing Model To create teams focused on end-to-end client journeys Combined Middle Market and Payments businesses To create one team to serve the customers’ primary needs 2017 Elevation of Commercial Payments business Teams, platforms, industry focus, fintech strategy E xp e rtis e H o li s ti c C a p ab ili tie s Service 200K+ U.S. Middle Market Businesses
A Clear Value Proposition that Resonates Our targeted, full-service platform is delivered seamlessly through a unique relationship-based approach 4 Capabilities Scaled Holistic Platform (Commercial Payments, Capital Markets, and Wealth) Industry Expertise Integrated Delivery Model Regional Banks Trillionaire Banks Boutiques Middle Market Focus Client Impact (Average Tenure of ~15 years) Key’s Solutions Supply chain solutions manufacturer and distributor with 175+ locations in 10+ countries 60-Year Client Relationship Core Treasury | Lending | FX Merchant | Capital Markets Electric power systems solutions provider New Client Relationship Key’s Solutions Core Treasury | Lending | FX Merchant | Embedded Banking
Holistic Payments Platform with Growth Tailwinds 5 Deeply Embedded in the Fintech Ecosystem Full Suite of Commercial Payments Capabilities Delivering one of the broadest platforms of banking and software-based capabilities in the market 325% Growth in API Clients(1) 71% Growth in Embedded Banking Clients(1) ~15 Fintech Partnerships 7 VC Investments TRADITIONAL CAPABILITIES EMERGING CAPABILITIES Meaningful Growth Opportunities Core Treasury Liquidity Card & Merchant Foreign Exchange Embedded Banking Automation Virtual Ledgering Supported by Deep Industry Vertical Expertise Meaningful Growth Trends (1) Dec 2023 – Mar 2025; (2) Source: 2024 BCG Middle Market Benchmarking Report; (3) Source: Nilson 2024; Peer group is TFC, PNC, MTB, top quartile excludes USB; (4) Source: Nilson 2024; commercial card volume includes purchase card, fleet volume, and corporate card, top quartile excludes USB and ZION; (5) Source: The Ayden and BCG Embedded Finance Report Core Treasury TM Fees / Commercial Deposits (bps)(2) 60 71 Key Top Quartile Merchant Spend Volume / Total Deposits(3) 16% 21% Key Peer Top Quartile Card & Automation Volume / Commercial Deposits(4) 6% 10% Key Peer Top Quartile Embedded Banking Industry Growth(5) $32Bn $62Bn 2024 2030F
Commercial Banking: Then and Now ~$13 ~$18 2019 2024 81% ~89% 2019 2024 ~4.2 ~4.6 2019 2024 ~$800MM >$1.0Bn 2019 2024 Revenue(1) Deposits (Bn) % Operating Deposits Clients (Thousands) +24% +38% ~800bps +8% 6 (1) Excludes the allocated impact of securities portfolio and swaps; (2) “Add’tl Gross Fees” consists of Fee Equivalent Revenue (FER) generated through treasury management products and services compensated by deposits clients retain on balance sheet; (3) “Net Revenue” consists of Deposit Service Charges, Cards & Payments Revenue, and Corporate Services Revenue driven by Foreign Exchange and Trade Finance service products Middle Market Commercial Payments ~$36 ~$58 2019 2024 2019 2024 2019 2024 Fees (MM) Deposits (Bn) Merchant Fees Fee Equivalent Revenue +60% +85% +58% ~$290 ~$360 ~$60 ~$210 2019 2024 +61% Net Revenue(3) Add’tl Gross Fees(2)
Investing in Strategic Areas to Scale the Business Continuing to Build Our Brand of Expertise and Service 7 Progress: Recent expansion into Chicago and Southern California Progress: 77% of total Commercial deposits are operating deposits Progress: ~25% growth in business- focused risk team(1) • Attractive banker-friendly model • Market expansions bolstered by great talent and opportunity • Growing our own talent Growing Bankers • Persistent investment across our payments platforms • Leveraging more automation to drive efficiency • Scaling embedded banking • Deeper risk expertise in strategic focus areas • Increasing portfolio management efficiency and capacity capabilities • Elevated focus on portfolio optimization Continuing Our Primacy Focus Elevating Risk Management (1) Jan 2024 – Mar 2025
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