KEYCORP /NEW/

As shown in Figure 4, noninterest income was a net income of $668 million for the first quarter of 2025, compared to net income of $647 million 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

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 or administration that primarily generate certain trust and asset management fees are shown in Figure 5. For the three months ended March 31, 2025, trust and investment services income was up $3 million, or 2.2%, compared to the same period one year ago. This 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, 2025, our bank, trust, and registered investment advisory subsidiaries had assets under management of $61.1 billion, up 6.5% compared to March 31, 2024. The increase was driven by net positive cash in-flows and market impacts on portfolios.

Figure 5. Assets Under Management or 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, 2025, investment banking and debt placement fees were up $5 million, or 2.9%, compared to the same period one year ago, driven by an increase in syndication fees offset by lower merger and acquisition and underwriting fees.

Service charges on deposit accounts

Service charges on deposit accounts increased $6 million, or 9.5%, for the three months ended March 31, 2025, compared to the same period one year ago. The increase was driven primarily by higher account analysis 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, increased $5 million, or 6.5% for the three months ended March 31, 2025, compared to the same period one year ago. This increase was primarily driven by an increase in merchant services income.

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, net securities gains (losses), and other income. Other noninterest income for the three months ended March 31, 2025, increased $2 million, or 1.0%, from the year-ago quarter. This change was driven by an increase in commercial mortgage servicing fees reflecting higher active special servicing balances and overall growth of the servicing portfolio. This was partially offset by a decrease in operating lease income and other leasing gains.