KeyBank 2015 Annual Report Download - page 63

Figure 7. Noninterest Income
Year ended December 31, Change 2015 vs. 2014
dollars in millions 2015 2014 2013 Amount Percent
Trust and investment services income $ 433 $ 403 $ 393 $ 30 7.4 %
Investment banking and debt placement fees 445 397 333 48 12.1
Service charges on deposit accounts 256 261 281 (5) (1.9)
Operating lease income and other leasing gains 73 96 117 (23) (24.0)
Corporate services income 198 178 172 20 11.2
Cards and payments income 183 166 162 17 10.2
Corporate-owned life insurance income 127 118 120 9 7.6
Consumer mortgage income 12 10 19 2 20.0
Mortgage servicing fees 48 46 58 2 4.3
Net gains (losses) from principal investing 51 78 52 (27) (34.6)
Other income (a) 54 44 59 10 22.7
Total noninterest income $ 1,880 $ 1,797 $1,766 $ 83 4.6 %
(a) Included in this line item is our “Dealer trading and derivatives income (loss).” Additional detail is provided in Figure 8.
Figure 8. Dealer Trading and Derivatives Income (Loss)
Year ended December 31, Change 2015 vs. 2014
dollars in millions 2015 2014 2013 Amount Percent
Dealer trading and derivatives income (loss), proprietary (a), (b) $(9)$ (18) $ (14) $ 9 N/M
Dealer trading and derivatives income (loss), nonproprietary (b) 20 7 27 13 185.7 %
Total dealer trading and derivatives income (loss) $11 $ (11) $ 13 $ 22 N/M
(a) For the year ended December 31, 2015, income of $5 million related to foreign exchange, interest rates, and commodity derivative
trading was offset by losses related to fixed income, equity securities trading, and credit portfolio management activities. For the year
ended December 31, 2014, income of $4 million related to foreign exchange, interest rate, and commodity derivative trading was offset
by losses related to equity securities trading, fixed income, and credit portfolio management activities. For the year ended December 31,
2013, income of $3 million related to foreign exchange and interest rate derivative trading was offset by losses related to fixed income,
equity securities trading, commodity derivative trading, and credit portfolio management activities.
(b) The allocation between proprietary and nonproprietary is made based upon whether the trade is conducted for the benefit of Key or
Key’s clients rather than based upon rulemaking under the Volcker Rule. Prohibitions and restrictions on proprietary trading activities
imposed by the Volcker Rule became effective April 1, 2014. For more information, see the discussion under the heading “Other
Regulatory Developments under the Dodd-Frank Act — ‘Volcker Rule’” in the section entitled “Supervision and Regulation” in Item 1
of this report.
The following discussion explains the composition of certain elements of our noninterest income and the factors
that caused those elements to change.
Trust and investment services income
Trust and investment services income is one of our largest sources of noninterest income and consists of
brokerage commissions, trust and asset management commissions, and insurance income. The assets under
management that primarily generate these revenues are shown in Figure 9. For 2015, trust and investment
services income increased $30 million, or 7.4%, from the prior year primarily due to the full year 2015 impact of
the September 2014 acquisition of Pacific Crest Securities. For 2014, trust and investment services income
increased $10 million, or 2.5%, from the prior year.
A significant portion of our trust and investment services income depends on the value and mix of assets under
management. At December 31, 2015, our bank, trust, and registered investment advisory subsidiaries had assets
under management of $34.0 billion, compared to $39.2 billion at December 31, 2014, and $36.9 billion at
December 31, 2013. As shown in Figure 9, the decrease from 2014 to 2015 was primarily attributable to client
attrition in the securities lending portfolio and market declines across all the portfolios. Increases from 2013 to
2014 across all the portfolios were attributable to market appreciation.
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