Keycorp

Strong Q2 financial performance + momentum - EPS: $0.44, +26% YoY - Revenue: +7% YoY; pre-provision net revenue +9% - NIM: 2.89%, +2 bps sequentially (but discussed as not as strong as some expectations) - Shareholder returns: Repurchased >$340M in the quarter; pacing to ≥$1.3B full-year buyback target

Guidance raised / outlook improving (but depends on rate + deposit dynamics) - Revenue guidance (2026): raised to +7% to +8% (from ~7% previously) - Net interest income (2026): raised to +9% to +11% (from +9% to +10%) - Exit NIM (end of 2026): expected 3.00% to 3.05% - Loan growth (2026): average loans +4% to +5% (previously +2% to +4%); commercial loans +8% to +10% - Company expects operating leverage: revenues growing ~2x expenses in 2026

NIM “gap” drivers (good news on fundamentals, but a notable headwind this quarter) - Management attributed Q2 NIM to a mix of: - Stronger-than-expected loan growth but slightly tighter spreads (higher credit quality mix) - Overnight spread/sulfur down ~4 bps - Seasonal deposit trough (late May) creating temporary funding needs - Wholesale funding bridge instead of repricing deposits (to avoid harming deposit franchise; expecting deposits to grow in 2H) - What supports the path back to ~3%+: - ~$9B fixed-rate asset repricing in 2H with ~+1.25% benefit - Expect client deposit growth >2% in 2H (core operating deposits)