KEYCORP /NEW/

As shown in Figure 6, noninterest expense was $1.2 billion for the third quarter of 2025, compared to $1.1 billion for the third quarter of 2024. Noninterest expense was $3.5 billion for the nine months ended September 30, 2025, compared to $3.3 billion for the nine months ended September 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 $72 million, or 10.7%, for the three months ended September 30, 2025, compared to the same period one year ago. For the nine months ended September 30, 2025, personnel expense was up $147 million, or 7.4%, compared to the same period one year ago. The increases were driven by higher incentive compensation associated with noninterest income growth and continued investments in people.

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, 2025, increased $11 million, or 2.6%, from the year-ago quarter, primarily due to increases in business services and other expenses, partially offset by a decrease in operating lease expense. For the nine months ended September 30, 2025, other nonpersonnel expense remained relatively stable decreasing only $1 million, or 0.1%, from the nine months ended September 30, 2024.