Third Quarter 2007 Review

October 16, 2007

Speakers: Henry Meyer

Jeff Weeden
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PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
FORWARD-LOOKING STATEMENT DISCLOSURE

This presentation contains forward-looking statements, including statements about our financial
condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-
looking statements express management's current expectations or forecasts of future events and,
by their nature, are subject to assumptions, risks and uncertainties. Although management
believes that the expectations and forecasts reflected in these forward-looking statements are
reasonable, actual results could differ materially due to a variety of factors including: (1) changes
in interest rates; (2) changes in trade, monetary or fiscal policy; (3) changes in general economic
conditions, or in the condition of the local economies or industries in which we have significant
operations or assets, which could, among other things, materially impact credit quality trends and
our ability to generate loans; (4) increased competitive pressure among financial services
companies; (5) the inability to successfully execute strategic initiatives designed to grow revenues
and/or manage expenses; (6) consummation of significant business combinations or divestitures;
(7) operational or risk management failures due to technological or other factors; (8) heightened
regulatory practices, requirements or expectations; (9) new legal obligations or liabilities or
unfavorable resolution of litigation; (10) adverse capital markets conditions; (11) continued
disruption in the fixed income markets; (12) disruption in the economy and general business
climate as a result of terrorist activities or military actions; and (13) changes in accounting or tax
practices or requirements. 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.
We do not assume any obligation to update these forward-looking statements. For further
information regarding KeyCorp, please read KeyCorp's reports that are filed with the Securities
and Exchange Commission and are available at www.sec.gov.
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Strategic Update

¾ Fixed income market volatility adversely

impacts results

¾ Continued focus on credit quality

¾ On track to complete UBH (Union State Bank)

acquisition

¾ Completed acquisition of Tuition Management

Systems
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Financial Summary—3Q07 vs. 3Q06

(1)
Results from Continuing Operations
EPS $0.57 vs. $0.74
ROE 11.50% vs. 15.52%
NIM 3.40% vs. 3.61%
Average Earning Assets up 4.4%
Asset Quality
– Net Charge-offs 0.35% vs. 0.26%
– NPLs 0.72% vs. 0.34%

(1)
Continuing Operations exclude the results of the Champion Mortgage finance business, which has been
accounted for as a discontinued operation.
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Net Interest Margin (TE)–Continuing Ops.

$ in millions

$800 4.25%
$744
$716 $722 $726 $726
$706 $712 4.00%
$692 $700
$700
3.75%

$600 3.72%
3.68% 3.68% 3.66%
3.63% 3.61% 3.50%
3.50%
3.46%
3.40%
$500 3.25%

3.09% 3.00%
3.06% 3.05%
$400
2.96%
2.85% 2.85% 2.75%

$300 2.70%
2.62% 2.50%
2.52%

$200 2.25%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Net Interest Income Net Interest Spread Net Interest Margin

TE = Taxable Equivalent
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Noninterest Income–Continuing Ops.

$ in millions

Change 3Q07 vs.

3Q07 2Q07 3Q06 2Q07 3Q06

Trust and investment services income $119 $115 $137 $4 $(18)

Service charges on deposit accounts 88 84 78 4 10
Investment banking and capital markets income 9 52 44 (43) (35)
Operating lease income 70 66 58 4 12
Letter of credit and loan fees 51 45 48 6 3
Corporate-owned life insurance income 27 32 23 (5) 4
Electronic banking fees 25 25 27 - (2)
Net gains (losses) from loan securitizations and sales (53) 33 14 (86) (67)
Net securities gains (losses) 4 2 (7) 2 11
Gains related to MasterCard Incorporated shares 27 40 - (13) 27
Net gains from principal investing 9 90 28 (81) (19)
Other income 62 65 93 (3) (31)
Total noninterest income $438 $649 $543 $(211) $(105)
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Noninterest Expense–Continuing Ops.

$ in millions

Change 3Q07 vs.

3Q07 2Q07 3Q06 2Q07 3Q06

Personnel $383 $411 $418 $(28) $(35)

Net occupancy 60 59 62 1 (2)
Computer processing 49 49 52 - (3)
Operating lease expense 58 55 48 3 10
Professional fees 27 26 28 1 (1)
Equipment 22 24 26 (2) (4)
Marketing 21 20 32 1 (11)
Litigation reserve - 42 - (42) -
Provision for losses on lending-related
commitments 5 6 - (1) 5
Other expense 128 123 124 5 4
Total noninterest expense $753 $815 $790 $(62) $(37)
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Average Loans–Continuing Ops.

$ in billions

$75 15%
65.6 65.7 66.3 67.7
63.4 64.2 64.9 65.2
62.0
$60 10%

$45 5%

$30 0%

$15 -5%

$0 -10%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Average Loan Growth from Prior Year

Commercial $44.3 $45.8 $46.7 $47.3 $47.6 $48.0 $48.3 $48.8 $49.7
Consumer 17.7 17.6 17.5 17.6 17.6 17.6 17.4 17.5 18.0
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Average Core Deposits–Continuing Ops.

$ in billions
$60 16%
$51.6 $51.7 $52.1 $50.6 $51.7
$49.4 $50.3 $50.3
$50 $47.9
12%

$40
8%
$30
4%
$20

0%
$10

$0 -4%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Average Core Deposit Growth from Prior Year
Average Core Deposit Growth Adjusted for McDonald Divestiture
DDA $12.2 $12.6 $12.7 $13.0 $13.1 $13.4 $13.2 $14.0 $14.4
NOW/MMDA 22.9 23.9 24.5 25.3 25.2 25.1 23.4 23.0 24.2
Savings 2.0 1.9 1.8 1.8 1.7 1.7 1.6 1.6 1.6
CD’s 10.8 11.0 11.3 11.5 11.7 11.9 12.1 12.0 11.5
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Asset Quality
$ in millions

Change 3Q07 vs.

3Q07 2Q07 3Q06 2Q07 3Q06

Net C/O $ 59 $ 53 $ 43 $ 6 $ 16
to Average Loans from
Continuing Operations 0.35 % 0.32 % 0.26 %

Nonperforming Loans $ 498 $ 276 $ 223 $ 222 $ 275

to EOP Loans 0.72 % 0.41 % 0.34 %

Nonperforming Assets $ 570 $ 378 $ 329 $ 192 $ 241

to EOP Loans + OREO 0.83 % 0.57 % 0.50 %

Allowance $ 955 $ 945 $ 944 $ 10 $ 11

to Total Loans 1.38 % 1.42 % 1.44 %
to Non performing Loans 192 % 342 % 423 %
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Capital Ratios
9.00%

8.24% 8.14%
8.15%
8.02% 7.92%
8.00% 7.90%
7.72% 7.64%
7.59%

7.01% 6.97% 6.89%

7.00% 6.81% 6.78%
6.68% 6.68% 6.71% 6.68%

6.00%

5.00%

4.00%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Tangible Equity to Tangible Assets Peer Median–Tangible Equity to Tangible Assets

Tier 1 Risk-based Capital Peer Median–Tier 1 Risk-based Capital
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Fourth Quarter 2007 Outlook

Net Interest Margin Low to mid 3.30% range

Loan Growth Commercial: Mid- to upper-single-digit range

Consumer: Low- to mid-single-digit range

Core Deposit Growth Low- to mid-single-digit range

Net Charge-Offs 35 – 45 basis point range

Effective Tax Rate Approximately 32%

4th Quarter Earnings Outlook $0.68 – $0.74 per share

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Appendix
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Community Banking
Northwest Rocky Mountains Great Lakes Northeast
Core Deposits: 24% Core Deposits: 9% Core Deposits: 36% Core Deposits: 31%
Comm’l Loans: 25% Comm’l Loans: 12% Comm’l Loans: 39% Comm’l Loans: 24%
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Average Loan Breakdown

Continuing Operations
$ in millions
Average Balance % Increase (Decrease) vs.
3Q07 2Q07 3Q06 2Q07 3Q06

Commercial, financial and agricultural $ 22,393 $ 21,856 $ 21,648 2.5 % 3.4 %

Real estate — commercial mortgage 8,855 8,565 8,106 3.4 9.2
Real estate — construction 8,285 8,243 7,965 .5 4.0
Commercial lease financing 10,172 10,096 9,850 .8 3.3
Total Commercial Loans 49,705 48,760 47,569 1.9 4.5

Real Estate — residential 1,586 1,472 1,415 7.7 12.1

Home equity 10,883 10,752 11,017 1.2 (1.2)
Consumer — direct 1,342 1,370 1,585 (2.0) (15.3)
Consumer — indirect 4,164 3,961 3,594 5.1 15.9
Total Consumer Loans 17,975 17,555 17,611 2.4 2.1
Total Loans $ 67,680 $ 66,315 $ 65,180 2.1 % 3.8 %
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Commercial Portfolio*—Credit Size

as of 9/30/07
($ in millions)
98.5%
100%

80%

60%
46.3%

40% 35.8%
27.4% 28.4%
23.2%
20% 15.3%
11.0% 12.6%

1.0% 0.3% 0.2%

0%
<$5 $5 to $15 $15 to $25 > $25
Outstanding Commitments # of Obligations
*
Excludes commercial lease financing balances
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Net Charge-Offs to Average Loans

Continuing Operations
1.20%

1.02%

0.90%

0.60%

0.33% 0.35%
0.32% 0.32%
0.30% 0.26% 0.27%
0.24% 0.22%

(1) (1)
0.26% 0.22%

0.00%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Peer Median S&P Regional & Diversified Bank Indices

(1) Excludes Passenger Airline Lease Portfolio
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Net Charge-Offs to Average Loans

by Loan Type

Commercial Consumer (1)

0.51% 0.46%
0.43% 0.45% 0.47%
0.41%
0.36%
0.28% 0.29% 0.30%
0.23% 0.20%
0.15% 0.12%

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

(1)
Excludes Champion Mortgage
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Nonperforming Assets
$ in millions

$600 $570 1.00%

0.83%
$500
0.80%
$393 $378
$400
$353
$329 0.62%
0.60% $307 $320 $308
$300 $273 0.54% 0.60%
0.50%
0.48%
0.46% 0.46% 0.57%
0.54%
$200 0.50% 0.49%
0.46% 0.40%
0.43% 0.44% 0.44% 0.41%
$100

$0 0.20%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
NPAs to Loans + OREO Peer Median S&P Regional & Diversified Bank Indices

Commercial $237 $142 $138 $144 $135 $118 $155 $181 $393
Consumer 123 135 157 135 88 97 99 95 105
OREO + Other 33 30 25 29 106 58 99 102 72
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Allowance to Period-End Loans

2.00%

1.67%

1.50% 1.45% 1.44% 1.42% 1.44% 1.43% 1.44% 1.42% 1.38%

1.00%

0.50%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Peer Median S&P Regional & Diversified Bank Indices

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Allowance to NPLs
500%
439%
423%

400% 372%
349%
343% 342%
327%
304%
300%

192%
200%

100%

0%
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Peer Median S&P Regional & Diversified Bank Indices

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Commercial Real Estate Loans

September 30, 2007
$ in millions
Geographic Region % of
West Southwest Central Midwest Southeast Northeast Total Total
Nonowner-occupied:
Residential properties $ 1,445 $ 309 $ 477 $ 185 $ 1,093 $ 234 $ 3,743 21.4 %
Multi-family properties 449 243 471 263 293 330 2,049 11.7
Retail properties 255 175 338 389 652 167 1,976 11.3
Land and development 202 207 227 113 247 60 1,056 6.1
Office buildings 309 91 138 194 244 165 1,141 6.5
Warehouses 176 12 80 81 161 79 589 3.4
Health facilities 123 14 56 125 146 142 606 3.5
Manufacturing facilities 18 22 — 23 57 4 124 .7
Hotels/Motels 52 — 50 15 39 1 157 .9
Other 199 2 92 211 22 179 705 4.0
3,228 1,075 1,929 1,599 2,954 1,361 12,146 69.5

Owner-occupied 1,494 109 483 2,006 204 1,044 5,340 30.5

Total $ 4,722 $ 1,184 $ 2,412 $ 3,605 $ 3,158 $ 2,405 $ 17,486 100.0 %

Nonowner-occupied:
Nonperforming loans $81 — $7 $25 $106 $9 $228 N/M
90+ days past due 32 — — 4 — — 36 N/M
30 — 89 days past due 33 $16 1 14 20 29 113 N/M

N/M = Not Meaningful

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Commercial Real Estate

Residential Properties: $3.7 Billion

$1.4 B
$0.2 B $0.2 B

$0.9 B $1.1 B
$0.3 B
$0.5 B

$0.7 B

Nonperforming & Past Due Loans

$ in millions West SW Central MW SE NE Total
Nonperforming loans $80 — — $18 $97 $4 $199
90+ days past due 32 — — — — — 32
30 — 89 days past due 3 $16 1 12 3 14 49
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Commercial Real Estate Servicing

Servicing Portfolio
$ in billions

$160.0 $5.0

$140.0 $4.5

Average Escrow Deposits

$4.0
$120.0
$3.5
$100.0 $3.0
$80.0 $2.5

$60.0 $2.0
$1.5
$40.0
$1.0
$20.0 $0.5
$0.0 $0.0
2000 2001 2002 2003 2004 2005 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Servicing Portfolio Average Escrow Deposits

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Home Equity Loans

$ in millions
% of
Loan Average Average Loans
Balances FICO LTV LTV>90%
Regional Banking
Home Equity Loans and Lines
First Lien $5,597 744 66 % 0.49 %
Second Lien 4,077 739 75 3.64
Total Home Equity Loans and Lines $9,674 742 70 1.84
Nonaccrual Loans
Total First Lien $ 28 689 76 % 0.54 %
Total Second Lien 24 684 80 7.13
Total Home Equity Nonaccrual loans $ 52 687 78 3.61

Key Home Equity Services - Home Imp Div (Secured)

Home Equity Loans and Lines
First Lien $ 43 749 26 % 0.55 %
Second Lien 1,187 729 80 32.28
Total Home Equity Loans and Lines $1,230 730 78 31.16
Nonaccrual Loans
Total First Lien – 704 28 % N/M
Total Second Lien $ 9 671 88 47.70 %
Total Home Equity Nonaccrual loans $ 9 672 86 46.33

Period End Balance—September 30, 2007

N/M = Not Meaningful