Third Quarter 2007 Review

October 16, 2007
Speakers: Henry Meyer Jeff Weeden

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. Forwardlooking 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
Fixed income market volatility adversely impacts results Continued focus on credit quality On track to complete UBH (Union State Bank) acquisition Completed acquisition of Tuition Management Systems

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Financial Summary—3Q07 vs. 3Q06
Results from Continuing Operations
EPS ROE NIM Average Earning Assets Asset Quality – Net Charge-offs – NPLs 0.35% vs. 0.26% 0.72% vs. 0.34%
(1)

$0.57 vs. $0.74 11.50% vs. 15.52% 3.40% vs. 3.61% up 4.4%

(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
$716 $722 $726 $726 $744 $700 $706 $712 $692

4.25% 4.00% 3.75%

$700

$600

3.63%

3.68%

3.72%

3.68%

3.61%

3.66% 3.50% 3.46% 3.40%

3.50% 3.25% 3.00%

$500
3.09%

$400

3.06%

3.05% 2.96% 2.85% 2.85% 2.70% 2.62% 2.52%

2.75% 2.50% 2.25%

$300

$200 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

Net Interest Income
TE = Taxable Equivalent

Net Interest Spread

Net Interest Margin

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Noninterest Income–Continuing Ops.
$ in millions
3Q07 Trust and investment services income Service charges on deposit accounts Investment banking and capital markets income Operating lease income Letter of credit and loan fees Corporate-owned life insurance income Electronic banking fees Net gains (losses) from loan securitizations and sales Net securities gains (losses) Gains related to MasterCard Incorporated shares Net gains from principal investing Other income Total noninterest income $119 88 9 70 51 27 25 (53) 4 27 9 62 $438 2Q07 $115 84 52 66 45 32 25 33 2 40 90 65 $649 3Q06 $137 78 44 58 48 23 27 14 (7) 28 93 $543 Change 3Q07 vs. 2Q07 3Q06 $4 4 (43) 4 6 (5) (86) 2 (13) (81) (3) $(211) $(18) 10 (35) 12 3 4 (2) (67) 11 27 (19) (31) $(105)

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Noninterest Expense–Continuing Ops.
$ in millions
Change 3Q07 vs. 2Q07 3Q06 $(28) 1 3 1 (2) 1 (42) (1) 5 $(62) $(35) (2) (3) 10 (1) (4) (11) 5 4 $(37) 3Q07 Personnel Net occupancy Computer processing Operating lease expense Professional fees Equipment Marketing Litigation reserve Provision for losses on lending-related commitments Other expense Total noninterest expense $383 60 49 58 27 22 21 5 128 $753 2Q07 $411 59 49 55 26 24 20 42 6 123 $815 3Q06 $418 62 52 48 28 26 32 124 $790

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Average Loans–Continuing Ops.
$ in billions
$75 62.0 $60 $45 $30 $15 $0 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 63.4 64.2 64.9 65.2 65.6 15% 10% 5% 0% -5% -10% 65.7 66.3 67.7

Average Loan Growth from Prior Year
Commercial $44.3 Consumer 17.7 $45.8 17.6 $46.7 17.5 $47.3 17.6 $47.6 17.6 $48.0 17.6 $48.3 17.4 $48.8 17.5 $49.7 18.0

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Average Core Deposits–Continuing Ops.
$ in billions
$60 $50 $40 8% $30 4% $20 $10 $0 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Average Core Deposit Growth from Prior Year Average Core Deposit Growth Adjusted for McDonald Divestiture

16% $47.9 $49.4 $50.3 $51.6 $51.7 $52.1 $50.3 $50.6 $51.7 12%

0%

-4%

DDA $12.2 NOW/MMDA 22.9 2.0 Savings 10.8 CD’s

$12.6 23.9 1.9 11.0

$12.7 24.5 1.8 11.3

$13.0 25.3 1.8 11.5

$13.1 25.2 1.7 11.7

$13.4 25.1 1.7 11.9

$13.2 23.4 1.6 12.1

$14.0 23.0 1.6 12.0

$14.4 24.2 1.6 11.5

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Asset Quality
$ in millions
3Q07 Net C/O to Average Loans from Continuing Operations Nonperforming Loans to EOP Loans Nonperforming Assets to EOP Loans + OREO $ 59 0.35 % $ 498 0.72 % 570 0.83 % 955 1.38 % 192 % 2Q07 $ 53 0.32 % $ 276 0.41 % $ 378 0.57 % $ 945 1.42 % 342 % 3Q06 $ 43 0.26 % $ 223 0.34 % $ 329 0.50 % $ 944 1.44 % 423 % $ 222 $ 275 Change 3Q07 vs. 2Q07 3Q06 $ 6 $ 16

$

$

192

$

241

Allowance $ to Total Loans to Non performing Loans

$

10

$

11

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Capital Ratios
9.00%
8.24%

8.00%

7.72%

7.90% 7.59% 7.64%

8.02%

8.15%

8.14% 7.92%

7.00%

6.68%

6.68%

6.71%

6.68%

6.81%

7.01%

6.97%

6.89%

6.78%

6.00%

5.00%

4.00%

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Tangible Equity to Tangible Assets Tier 1 Risk-based Capital

Peer Median–Tangible Equity to Tangible Assets Peer Median–Tier 1 Risk-based Capital

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Fourth Quarter 2007 Outlook
Net Interest Margin Loan Growth
Low to mid 3.30% range Commercial: Mid- to upper-single-digit range Consumer: Low- to mid-single-digit range Low- to mid-single-digit range 35 – 45 basis point range Approximately 32%

Core Deposit Growth Net Charge-Offs Effective Tax Rate

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

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Appendix

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Community Banking
Northwest
Core Deposits: 24% Comm’l Loans: 25%

Rocky Mountains
Core Deposits: 9% Comm’l Loans: 12%

Great Lakes
Core Deposits: 36% Comm’l Loans: 39%

Northeast
Core Deposits: 31% Comm’l Loans: 24%

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Average Loan Breakdown
Continuing Operations
$ in millions
3Q07 Commercial, financial and agricultural Real estate — commercial mortgage Real estate — construction Commercial lease financing Total Commercial Loans Real Estate — residential Home equity Consumer — direct Consumer — indirect Total Consumer Loans Total Loans $ 22,393 8,855 8,285 10,172 49,705 1,586 10,883 1,342 4,164 17,975 $ 67,680 Average Balance 2Q07 $ 21,856 8,565 8,243 10,096 48,760 1,472 10,752 1,370 3,961 17,555 $ 66,315 3Q06 $ 21,648 8,106 7,965 9,850 47,569 1,415 11,017 1,585 3,594 17,611 $ 65,180 % Increase (Decrease) vs. 2Q07 3Q06 2.5 % 3.4 .5 .8 1.9 7.7 1.2 (2.0) 5.1 2.4 2.1 % 3.4 % 9.2 4.0 3.3 4.5 12.1 (1.2) (15.3) 15.9 2.1 3.8 %

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Commercial Portfolio*—Credit Size
as of 9/30/07 ($ in millions)
100%
98.5%

80%

60%
46.3%

40%

35.8% 27.4% 23.2% 28.4% 15.3%

20%
1.0%

11.0% 12.6% 0.3%

0% <$5
Outstanding
*

0.2%

$5 to $15
Commitments

$15 to $25

> $25

# 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%
0.35%

0.32%

0.33% 0.24% 0.22% 0.26% 0.27%

0.32%

0.30%
0.26%
(1)

0.22%

(1)

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% 0.23% 0.28% 0.20% 0.29% 0.30%

0.43%

0.36%

0.45% 0.47%

0.41%

0.46%

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 $500 $400 $300
0.46% 0.48% 0.46% 0.46% 0.50% 0.50% 0.49% 0.41% 0.54% 0.57%

$570
0.83%

1.00%

$393
0.60%

0.80%

$307

$320

$308

$329 $273

$353
0.54%

$378
0.62%

0.60%

$200
0.43% 0.44% 0.44%

0.40%

$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 Consumer 123 OREO + Other 33

$142 135 30

$138 157 25

$144 135 29

$135 88 106

$118 97 58

$155 99 99

$181 95 102

$393 105 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%
423% 439% 372% 327% 343% 342%

400%
304%

349%

300%

200%

192%

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
West Nonowner-occupied: Residential properties Multi-family properties Retail properties Land and development Office buildings Warehouses Health facilities Manufacturing facilities Hotels/Motels Other $ 1,445 449 255 202 309 176 123 18 52 199 3,228 1,494 $ 4,722 $ Southwest $ 309 243 175 207 91 12 14 22 — 2 1,075 109 1,184 $ Geographic Region Central Midwest $ 477 471 338 227 138 80 56 — 50 92 1,929 483 2,412 $ $ 185 263 389 113 194 81 125 23 15 211 1,599 2,006 3,605 $ Southeast $ 1,093 293 652 247 244 161 146 57 39 22 2,954 204 3,158 $ Northeast $ 234 330 167 60 165 79 142 4 1 179 1,361 1,044 2,405 $ Total 3,743 2,049 1,976 1,056 1,141 589 606 124 157 705 12,146 5,340 $ 17,486 % of Total 21.4 % 11.7 11.3 6.1 6.5 3.4 3.5 .7 .9 4.0 69.5 30.5 100.0 %

Owner-occupied Total

Nonowner-occupied: Nonperforming loans 90+ days past due 30 — 89 days past due

$81 32 33

— — $16

$7 — 1

$25 4 14

$106 — 20

$9 — 29

$228 36 113

N/M N/M 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

$0.3 B

$0.5 B

$1.1 B

$0.7 B
Nonperforming & Past Due Loans
$ in millions

Nonperforming loans 90+ days past due 30 — 89 days past due

West $80 32 3

SW — — $16

Central — — 1

MW $18 — 12

SE $97 — 3

NE $4 — 14

Total $199 32 49

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Commercial Real Estate Servicing
Servicing Portfolio
$ in billions
$160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0
2000 2001 2002 2003 2004 2005 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

$5.0 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0

Servicing Portfolio

Average Escrow Deposits

Average Escrow Deposits

$4.5

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Home Equity Loans
$ in millions
Loan Balances Regional Banking Home Equity Loans and Lines First Lien Second Lien Total Home Equity Loans and Lines Nonaccrual Loans Total First Lien Total Second Lien Total Home Equity Nonaccrual loans Key Home Equity Services - Home Imp Div (Secured) Home Equity Loans and Lines First Lien Second Lien Total Home Equity Loans and Lines Nonaccrual Loans Total First Lien Total Second Lien Total Home Equity Nonaccrual loans Average FICO Average LTV % of Loans LTV>90%

$5,597 4,077 $9,674 $ $ 28 24 52

744 739 742 689 684 687

66 % 75 70 76 % 80 78

0.49 % 3.64 1.84 0.54 % 7.13 3.61

43 1,187 $1,230 – $ $ 9 9

$

749 729 730 704 671 672

26 % 80 78 28 % 88 86

0.55 % 32.28 31.16 N/M 47.70 % 46.33

Period End Balance—September 30, 2007 N/M = Not Meaningful