KEYCORP NEW

As shown in Figure 4, noninterest income was $647 million, and represented 42% of total revenue for the first quarter of 2024, compared to $608 million, representing 35% of total revenue, for the year-ago quarter.

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

Figure 4. Noninterest Income

(a)Other noninterest income includes operating lease income and other leasing gains, corporate services income, corporate-owned life insurance income, consumer mortgage income, commercial mortgage servicing fees, and other income. See the "Consolidated Statements of Income" in Item 1. Financial Statements of this report.

Trust and investment services income

Trust and investment services income consists of brokerage commissions, trust and asset management fees, and insurance income. The assets under management that primarily generate certain trust and asset management fees are shown in Figure 5. For the three months ended March 31, 2024, trust and investment services income was up $8 million, or 6.3%, compared to the same period one year ago. The increase was driven primarily by investment management fees associated with higher assets under management.

A significant portion of our trust and investment services income depends on the value and mix of assets under management. As shown in Figure 5, at March 31, 2024, our bank, trust, and registered investment advisory subsidiaries had assets under management of $57.3 billion, up 6.7% compared to March 31, 2023. The increase was driven by market impacts on portfolios.

Figure 5. Assets Under Administration

Investment banking and debt placement fees

Investment banking and debt placement fees consist of syndication fees, debt and equity securities underwriting fees, merger and acquisition and financial advisory fees, gains on sales of commercial mortgages, and agency origination fees. For the three months ended March 31, 2024, investment banking and debt placement fees were up $25 million, or 17.2%, compared to the same period a year ago. The increase was driven by strong commercial mortgage and debt capital markets activity.

Service charges on deposit accounts

Service charges on deposit accounts decreased $4 million, or 6.0%, for the three months ended March 31, 2024, compared to the same period one year ago. The decline was driven primarily by decreased maintenance fees.

Cards and payments income

Cards and payments income, which consists of debit card, prepaid card, consumer and commercial credit card, and merchant services income, decreased $4 million for the three months ended March 31, 2024, compared to the same period one year ago. The decrease was driven by lower fees merchant services and card fees, slightly offset by an increase in ATM fees.

Other noninterest income

Other noninterest income includes operating lease income and other leasing gains, corporate services income,

corporate-owned life insurance income, consumer mortgage income, commercial mortgage servicing fees, and other income. Other noninterest income for the three months ended March 31, 2024, increased $14 million, or 7.5%, from the year-ago quarter. The increase was primarily driven by increased commercial mortgage servicing fees as well as increased margins on mortgage sales, with a slight offset from decreased corporate services income stemming from reduced derivatives related activity.