KEYCORP NEW

As shown in Figure 6, noninterest expense was $1.1 billion for the second quarter of 2024, compared to $1.1 billion for the second quarter of 2023. Noninterest expense was $2.2 billion for the six months ended June 30, 2024, compared to $2.3 billion for the six months ended June 30, 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, increased by $14 million, or 2.3%, for the three months ended June 30, 2024, compared to the same period one year ago. The increase reflects the impact of a higher stock price on stock-based compensation compared to a year ago. For the six months ended June 30, 2024, personnel expense decreased by $13 million, or 1.0%, compared to the same period one year ago, driven primarily by a decrease in salaries expense from a reduction in head count from the prior period.

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 June 30, 2024, decreased $11 million, or 2.4%, from the year-ago quarter, primarily due to decreases across most other expense categories, offset slightly by increases in computer processing expenses. For the six months ended June 30, 2024, other nonpersonnel expense including the impact of the additional FDIC special assessment of $34 million, decreased $17 million, or 1.8%, from the six months ended June 30, 2023, primarily due to decreases across most other expense categories, offset slightly by increases in computer processing expenses.