KeyBank 2014 Annual Report Download - page 67

of the Key Corporate Bank and the impact of the recently-acquired Pacific Crest Securities. In addition, there
were increases in various other expense categories.
In 2013, Key Corporate Bank’s net income attributable to Key increased $50 million from the prior year.
Taxable-equivalent net interest income increased $4 million in 2013 compared to 2012, as increases in earning
asset spread from higher earning asset balances offset a decrease in deposit spread from a decline in rates.
Noninterest income increased $33 million as increases in mortgage servicing fees, gains realized on the
disposition of certain investments held by the Real Estate Capital line of business, and investment banking and
debt placement fees more than offset decreases in operating lease income and other leasing gains. The provision
for loan and lease losses decreased $33 million due to improved credit quality with the portfolio. Noninterest
expense increased $6 million driven by higher provision (credit) for losses on lending-related commitments and
personnel expense. These expense increases were partially offset by decreases in operating lease expense and net
OREO expense.
Figure 14. Key Corporate Bank
Year ended December 31, Change 2014 vs. 2013
dollars in millions 2014 2013 2012 Amount Percent
SUMMARY OF OPERATIONS
Net interest income (TE) $ 830 $ 785 $ 781 $ 45 5.7 %
Noninterest income 800 751 718 49 6.5
Total revenue (TE) 1,630 1,536 1,499 94 6.1
Provision (credit) for loan and lease losses (2) (3) 30 1 N/M
Noninterest expense 848 799 793 49 6.1
Income (loss) before income taxes (TE) 784 740 676 44 5.9
Allocated income taxes and TE adjustments 285 265 248 20 7.5
Net income (loss) 499 475 428 24 5.1
Less: Net income (loss) attributable to noncontrolling interests 2— 3 2 N/M
Net income (loss) attributable to Key $ 497 $ 475 $ 425 $ 22 4.6 %
AVERAGE BALANCES
Loans and leases $ 22,452 $ 19,822 $ 18,328 $ 2,630 13.3 %
Loans held for sale 549 492 500 57 11.6
Total assets 26,312 23,628 22,252 2,684 11.4
Deposits 16,793 15,696 12,572 1,097 7.0 %
Assets under management at year end —$ 90 $ 207 $ (90) N/M
ADDITIONAL KEY CORPORATE BANK DATA
Year ended December 31, Change 2014 vs. 2013
dollars in millions 2014 2013 2012 Amount Percent
NONINTEREST INCOME
Trust and investment services income $ 112 $ 104 $ 99 $ 8 7.7 %
Investment banking and debt placement fees 392 329 320 63 19.1
Operating lease income and other leasing gains 63 62 74 1 1.6
Corporate services income 131 120 117 11 9.2
Service charges on deposit accounts 43 44 48 (1) (2.3)
Cards and payments income 14 18 20 (4) (22.2)
Payments and services income 188 182 185 6 3.3
Mortgage servicing fees 46 58 25 (12) (20.7)
Other noninterest income (1) 16 15 (17) N/M
Total noninterest income $ 800 $ 751 $ 718 $ 49 6.5 %
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