2004 Lehman Brothers Financial Services Conference

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2004 Lehman Brothers Financial Services Conference

• September 13, 2004
• KeyCorp

Henry L. Meyer III Chairman Chief Executive
Officer Jeffrey B. Weeden Senior Executive Vice
President Chief Financial Officer
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PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995 FORWARD-LOOKING STATEMENT DISCLOSURE
The presentation, including related questions and
answers, contain forward-looking statements about
issues like anticipated third quarter and
full-year 2004 earnings, anticipated level of net
loan charge-offs and nonperforming assets and
anticipated improvement in profitability and
competitiveness. Forward-looking statements by
their nature are subject to assumptions, risks
and uncertainties. Actual results could differ
materially from those contained in or implied by
such forward-looking statements for a variety of
factors including changes in interest rates
failure of the economy to continue to recover,
which could materially impact credit quality
trends and the ability to generate loans failure
of the capital markets to function consistent
with customary levels delay in or inability to
execute strategic initiatives designed to grow
revenues and/or manage expenses consummation of
significant business combinations or
divestitures new legal obligations or
restrictions or unfavorable resolution of
litigation further disruption in the economy or
the general business climate as a result of
terrorist activities or military actions and
changes in accounting, tax or regulatory
practices or requirements.
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Reshaping Key A Different Company
Focused on product Higher credit risk
tolerance Unfocused expense culture Inconsistent
financial measures
Focused on deepening relationships
Re-established conservative credit culture PEG
expense culture Economic Profit Added (EPA)
Integrated Investment Commercial Banking
Acquisitions Sterling Branches EverTrust
American Capital
Hired Tom Bunn Corporate Banking
Hired Jeff Weeden CFO
Exit Auto Lease Est. Runoff Portfolio
Conning Acquisition
2002
2004
2001
2003
Henry Meyer Elected Chairman
Completed PEG 250 mill. savings
Mgmt Additions Tim King Chuck Hyle Bob
Wagner Steve Yates
Union Bankshares Acquisition
T.D. Leasing Portfolio Acquisition
NewBridge Acquisition
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Strategic Priorities
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• Profitably grow revenue
• Improve credit quality
• Maintain expense discipline
• Improve shareholder returns

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Net Income by Line of Business
Net Income 2Q04

• Corporate Banking
• KeyBank Real Estate Capital
• Key Equipment Finance

Investment Management Services
Corporate Investment Bkg.46
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Consumer Banking43

• Retail Banking
• Small Business
• Consumer Finance

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Profitably Grow Revenue
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• Retail Banking
• Small Business
• Consumer Finance

• Consumer Banking
• Tim King appointed President of Retail Banking
• Acquired 22 branches in high-growth markets
• New checking accounts opened up 31
• Small Business deposit balances up 13
• Accounts per customer have increased to 3.22
• Licensed 260 RMs to sell investment products

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Profitably Grow Revenue
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• Corporate Banking
• KeyBank R/E Capital
• Key Equipment Finance

• Corporate and Investment Banking
• Aligned commercial and investment banking
• Focused on 8 industries Institutional Bank
• Successful Lead with Leasing campaign
• Commercial mortgage servicing portfolio
  increased
• to 28 billion

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Profitably Grow Revenue
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• Victory Capital Mgmt
• McDonald Financial
• Group

• Investment Management Services
• Increased AUM by 6.0 billion
• Bob Wagner appointed President of Victory
• Completed integration of Private Banking and
• Private Client Group 4.85 products per
  household
• Building brand awareness Affluent Consumer
• Confidence Index

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Financial Review
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Net Interest Income
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in millions
Investments Consumer Loans Commercial Loans
Net Interest Income (TE) Net Interest Margin (TE)
Average Earning Assets
Net Interest Income (TE)
73,934 73,623 73,113 73,381
73,874
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Average Loans
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in billions

37.1 36.5 36.4 36.5 36.5 36.4 36.1
36.3 37.3 24.0 24.6 24.3 24.7 25.2 25
.7 25.7 26.0 25.5 2.0 1.7 1.4
1.1 0.9 0.8 0.6 0.4 0.3
0.8 0.7 0.6 0.5 0.4 0.2 0.2 0.1
-
Commercial Consumer
Exit Portfolios
Auto Commercial
Annualized
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Asset Quality
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in millions
2Q03 3Q03 4Q03 1Q04 2Q04
Net C/O to Average Loans Nonperforming
Loans to EOP Loans Nonperforming Assets
to EOP Loans OREO Allowance to Total
Loans to Nonperforming Loans
141 .90 837 1.32 897
1.42 1,405 2.22 168
123 .77 795 1.27 862
1.37 1,405 2.24 177
123 .78 694 1.11 753
1.20 1,406 2.24 203
111 .71 587 .94 670
1.07 1,306 2.09 222
104 .67 454 . 71 540
.84 1,276 1.99 281
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Maintain Expense Discipline
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in millions
Noninterest Expense
Personnel Non-Personnel

• 345 334 335 363 361 358 354 363 371 380 379 373 3
  71
• 334 513 349 367 298 304 301 314 294 317 319 319 2
  86 308

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Capital
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2Q03 3Q03 4Q03 1Q04 2Q04 Tang. Equity/Tang.
Assets 6.90 6.94 6.94
6.98 6.64 Tier 1 Risk-Based Capital
7.94 8.23 8.35 8.10 7.93
Cash dividends paid .305 .305 .305 .31 .
31 (per share) Shares Repurchased 3.0 2.5 4.0 8
.0 6.0 (millions)
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2004 Outlook

• Stable net interest margin
• Modest loan/earning assets growth
• Improving climate for fee-based businesses
• Improving asset quality
• Continued cost discipline
• EPS Range 3Q04 0.57 to 0.61
• 2004 F.Y. 2.35 to 2.45

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Strong Dividend Record
Dividend increased 39 consecutive years

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Strategic Priorities
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• Profitably grow revenue
• Improve credit quality
• Maintain expense discipline
• Improve shareholder returns

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Question and Answer