KEYCORP /NEW/

As shown in Figure 6, noninterest expense was $1.2 billion for the second quarter of 2025, compared to $1.1 billion for the second quarter of 2024. Noninterest expense was $2.3 billion for the six months ended June 30, 2025, compared to $2.2 billion for the six months ended June 30, 2024.

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, increased by $69 million, or 10.8%, for the three months ended June 30, 2025, compared to the same period one year ago. For the six months ended June 30, 2025, personnel expense was up $75 million, or 5.7%, compared to the same period one year ago. The increases were driven continued investments in people and higher incentive compensation.

Nonpersonnel expense

Other nonpersonnel expense includes net occupancy, computer processing, business services and professional fees, equipment, operating lease expense, marketing, and other miscellaneous expense categories. Other nonpersonnel expense for the three months ended June 30, 2025, increased $6 million, or 1.4%, from the year-ago quarter, primarily due to increases in business services and professional fees driven by increases in technology-related investments, offset by decreases in operating lease expense and other expense. For the six months ended June 30, 2025, other nonpersonnel expense decreased $12 million, or 1.3%, from the six months ended June 30, 2024, primarily due to decreases in operating lease expense and other expense.