KEYCORP /NEW/
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
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Noninterest expense
As shown in Figure 6, noninterest expense was $1.2 billion for the third quarter of 2026, compared to $1.2 billion for the third quarter of 2025. Noninterest expense was $3.6 billion for the nine months ended September 30, 2026, compared to $3.5 billion for the nine months ended September 30, 2025.
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
| Three Months Ended September 30, · PercentChange · Nine Months Ended September 30, · PercentChange | ||||||
|---|---|---|---|---|---|---|
| Dollars in millions · 2026 · 2025 · 2026 · 2025 | ||||||
| Personnel | $815 | $742 | 9.8% | $2,344 | $2,127 | 10.2% |
| Computer processing | 116 | 105 | 10.5 | 335 | 319 | 5.0 |
| Net occupancy | 67 | 65 | 3.1 | 203 | 201 | 1.0 |
| Business services and professional fees | 46 | 44 | 4.5 | 128 | 132 | (3.0) |
| Marketing | 23 | 22 | 4.5 | 63 | 67 | (6.0) |
| Equipment | 21 | 20 | 5.0 | 62 | 61 | 1.6 |
| Operating lease expense | 6 | 9 | (33.3) | 20 | 30 | (33.3) |
| Other expense | 151 | 170 | (11.2) | 488 | 525 | (7.0) |
| Total noninterest expense | $1,245 | $1,177 | 5.8% | $3,643 | $3,462 | 5.2% |
Personnel
Personnel expense, the largest category of our noninterest expense, increased by $73 million, or 9.8%, for the three months ended September 30, 2026, compared to the same period one year ago. For the nine months ended September 30, 2026, personnel expense was up $217 million, or 10.2%, compared to the same period one year ago. The increases were driven by higher salaries, incentive and stock-based compensation reflective of current year merit increases, higher headcount and growth in the fee businesses.
Figure 7. Personnel Expense
| Dollars in millions · Three Months Ended September 30, · PercentChange · Nine Months Ended September 30, · PercentChange | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · 2026 · 2025 | |||||||||
| Salaries and contract labor | $463 | $437 | 5.9% | $1,350 | $1,269 | 6.4% | |||
| Incentive and stock-based compensation (a) | 212 | 190 | 11.6 | 578 | 516 | 12.0 | |||
| Employee benefits | 137 | 112 | 22.3 | 404 | 329 | 22.8 | |||
| Severance | 3 | 3 | — | 12 | 13 | (7.7) | |||
| Total personnel expense | $815 | $742 | 9.8% | $2,344 | $2,127 | 10.2% | |||
(a)Excludes directors’ stock-based compensation of $1 million and $2 million for the three months ended September 30, 2026, and September 30, 2025, respectively, and $3 million and $2 million for the nine months ended September 30, 2026 and September 30, 2025, respectively, reported as “other expense” in Figure 6.
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 September 30, 2026, decreased $5 million, or 1.1%, from the year-ago quarter. For the nine months ended September 30, 2026, other nonpersonnel expense decreased $36 million, or 2.7%, from the nine months ended September 30, 2025. The decreases were driven by lower business services and professional fees, operating lease expense, marketing expense, and other miscellaneous expense categories, partially offset by increases in computer processing and equipment. Lower professional fees reflected reduced consulting and legal services in several areas, while lower operating lease expense reflected continued runoff of the operating lease portfolio.
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