KEYCORP NEW

As shown in Figure 6, noninterest expense was $1.1 billion for the first quarter of 2024, compared to $1.2 billion for the first quarter of 2023.

The following discussion explains the composition of certain elements of our noninterest expense and the factors that caused those elements to change.

Figure 6. Noninterest Expense

(a)Other noninterest expense includes equipment, operating lease expense, marketing, and other expense. See the "Consolidated Statements of Income" in Item 1. Financial Statements of this report.

Personnel

Personnel expense, the largest category of our noninterest expense, decreased by $27 million, or 3.9%, for the three months ended March 31, 2024, compared to the same period one year ago. The decrease was driven by lower headcount from efficiency-related actions taken last year.

Nonpersonnel expense

Nonpersonnel expenses includes net occupancy, computer processing, business services and professional fees, equipment, operating lease expense, marketing, and other miscellaneous expense categories. Nonpersonnel expenses for the three months ended March 31, 2024 including the impact of the additional FDIC special assessment of $29 million, decreased $6 million, or 1.3%, from the year-ago quarter, primarily due to decreases across most other expense categories.