KEYCORP /NEW/

As shown in Figure 4, noninterest income was $706 million for the second quarter of 2026, compared to $690 million for the year-ago quarter. Noninterest income was $1.4 billion for the six months ended June 30, 2026, compared to $1.4 billion for the six months ended June 30, 2025.

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

N/M = Not Meaningful

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 or administration that primarily generate certain trust and asset management fees are shown in Figure 5. For the three months ended June 30, 2026, trust and investment services income was up $13 million, or 8.9%, compared to the same period one year ago. For the six months ended June 30, 2026, trust and investment services income was up $31 million, or 10.9%, compared to the same period one year ago. These increases were primarily attributable to higher investment management and trust income and brokerage income, reflecting higher assets under management and favorable market performance.

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, 2026, our bank, trust, and registered investment advisory subsidiaries had assets under management of $74.2 billion, up 15.5% compared to June 30, 2025. The increase was driven by constructive market performance.

Figure 5. Assets Under Management or 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, 2026, investment banking and debt placement fees were down $9 million, or 5.1%, compared to the same period a year ago due to lower merger and acquisition advisory fees, commercial mortgage gains on sale, and loan syndication fees, partially offset by higher debt and equity origination activity. The decline also reflected uneven middle-market transaction activity and delays in M&A closings. For the six months ended June 30, 2026, investment banking and debt placement fees increased $13 million, or 3.8%, driven by stronger first-quarter activity and year-to-date growth in investment banking pipelines, despite softer second-quarter M&A activity.

Cards and payments income

Cards and payments income, which consists of debit card, prepaid card, consumer and commercial credit card, and merchant services income, increased $9 million or 10.6% for the three months ended June 30, 2026, compared to the same period one year ago. For the six months ended June 30, 2026, cards and payments income increased $13 million, or 7.8%, from the same period a year ago. The increases were driven by higher commercial payments activity, including growth in merchant services, embedded banking, purchase card volume, and prepaid card-related fees, as well as higher consumer debit and credit card spend volumes. These increases were partially offset by lower interchange fees in certain consumer card categories and higher rewards costs.

Service charges on deposit accounts

Service charges on deposit accounts increased $4 million, or 5.5%, for the three months ended June 30, 2026, compared to the same period one year ago. For the six months ended June 30, 2026, service charges on deposit accounts increased by $12 million, or 8.5%, from the same period one year ago. The increases were primarily driven by higher account analysis fees, reflecting growth in fee-equivalent revenue, partially offset by higher deposit premiums and lower consumer overdraft-related fees.

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, net securities gains (losses), and other income. Net other noninterest income for the three months ended June 30, 2026, decreased $1 million, or .5%, from the year-ago quarter. This net change resulted from lower commercial mortgage servicing fees reflective of lower special servicing and other miscellaneous ancillary fees offset by higher corporate services income reflective of growth in loan commitment fees, and non-yield loan fees. For the six months ended June 30, 2026, other noninterest income increased $2 million, or 0.5%, from the same period a year ago, driven by higher corporate services income reflective of growth in loan commitment fees, foreign exchange trading gains, and non-yield loan fees, coupled with higher other noninterest income from increases in deposit network fees and lower realized losses on non-customer derivatives activity. Partially offsetting this net increase were lower commercial mortgage servicing fees reflective of lower special servicing and other miscellaneous ancillary fees.