KEYCORP NEW

As shown in Figure 4, noninterest income was $627 million, and represented 41% of total revenue for the second quarter of 2024, compared to $609 million, representing 38% 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 June 30, 2024, trust and investment services income was up $13 million, or 10.3%, compared to the same period one year ago. The increase was driven by an increase in both brokerage fee income and investment management fees associated with higher assets under management. For the six months ended June 30, 2024, trust and investment services income was up $21 million, or 8.3%, 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 June 30, 2024, our bank, trust, and registered investment advisory subsidiaries had assets under management of $57.6 billion, up 6.8% compared to June 30, 2023. The increase was driven by new business and market impacts on portfolios offset slightly by run-off.

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 June 30, 2024, investment banking and debt placement fees were up

$6 million, or 5.0%, compared to the same period a year ago. For the six months ended June 30, 2024, investment banking and debt placement fees increased $31 million, or 11.7%, compared to the same period a year ago. These increases were driven by debt capital markets underwriting and merger and acquisition activity and related fees, offset slightly by lower commercial mortgage fees.

Service charges on deposit accounts

Service charges on deposit accounts decreased $3 million, or 4.3%, for the three months ended June 30, 2024, compared to the same period one year ago. The decline was driven primarily by decreased maintenance and overdraft fees. For the six months ended June 30, 2024, service charges on deposit accounts decreased by $7 million, or 5.1%, from the six months ended June 30, 2023, driven by decreased maintenance and overdraft 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, was flat for the three months ended June 30, 2024, compared to the same period one year ago. For the six months ended June 30, 2024, cards and payment income decreased $4 million, or 2.4%, from the same period a year ago. This decrease was primarily a result of lower debit interchange fees slightly offset by increases in merchant service income and credit card fee 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, and other income. Other noninterest income for the three months ended June 30, 2024, increased $2 million, or 1.0%, from the year-ago quarter. For the six months ended June 30, 2024, other noninterest income increased $16 million, or 4.0%, from the same period a year ago. These increases were due to 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.