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Retail Banking at Key Financial Services Analysts Association Newport, Rhode Island June 18, 2003

Retail Banking at Key Financial Services Analysts Association Newport, Rhode Island June 18, 2003 Patrick J. Swanick, President, Retail Banking & Electronic Services. Retail Banking. Retail Banking Initiatives Revenue, Revenue, Revenue,. (Expense). Deposit growth

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Retail Banking at Key Financial Services Analysts Association Newport, Rhode Island June 18, 2003

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  1. Retail Banking at Key Financial Services Analysts Association Newport, Rhode Island June 18, 2003 Patrick J. Swanick, President, Retail Banking & Electronic Services

  2. Retail Banking Retail Banking InitiativesRevenue, Revenue, Revenue, (Expense) • Deposit growth • Rolled out Free Checking Nationwide • Offering competitive deposit rates • Introduced KeyMiles Continental Airlines Debit Card

  3. Retail Banking Free Checking, with KeyMiles Debit Card

  4. Retail Banking Debit Card Revenue Growth $ in millions 1996 1997 1998 1999 2000 2001 2002 2003 Forecast • #4 Small Business and #8 Consumer MasterCard Debit Issuer Nationwide • Percentage of Active Users and Transactions per Cardholder Exceed National Averages

  5. Retail Banking Retail Banking InitiativesRevenue, Revenue, Revenue, (Expense) • Deposit growth • Rolled out Free Checking Nationwide • Offering competitive deposit rates • Introduced KeyMiles Continental Airlines Debit Card • Increase cross-sell • Licensing RMs to sell investments • Certifying RMs to handle small business clients • New client acquisition • Added new RMs and BDOs • Adding new KeyCenters and ATMs • Identifying acquisition opportunities

  6. Retail Banking Total Revenue (TE) by Line of Business $ in millions 1Q02 1Q03 Investment Mgmt Services 18% Investment Mgmt Services 17% Corporate & Investment Banking 35% Corporate & Investment Banking 34% Consumer Banking 49% Consumer Banking 47% Change 1Q021Q03 $ % Retail Banking $ 311 $ 320 $ 9 +3% Small Business 90 94 4 4 Consumer Finance 150 150 - - Corporate Banking 249 234 (15) (6) Real Estate Capital 90 84 ( 6) (7) Equipment Finance 66 71 5 8 Investment Mgmt Services 213 192 ( 21) (10)

  7. Retail Banking Net Income by Line of Business $ in millions 1Q02 1Q03 Investment Mgmt Services 9% Investment Mgmt Services 11% Corporate & Investment Banking 48% Corporate & Investment Banking 52% Consumer Banking 43% Consumer Banking 37% Change 1Q021Q03 $ % Retail Banking $ 54 $ 62 $ 8 +15% Small Business 21 22 1 5 Consumer Finance 6 12 6 100 Corporate Banking 59 51 (8) (14) Real Estate Capital 36 30 (6) (17) Equipment Finance 19 25 6 32 Investment Mgmt Services 23 20 (3) (13)

  8. Retail Banking Average Core Deposit Growth $ in billions % Change 1Q03 vs. 1Q024Q021Q031Q024Q02* Noninterest Bearing $8.6 $9.9 $9.8 14% (6)% NOW & MMDA 13.4 15.2 16.8 25 43 Savings Deposits 1.9 2.0 2.0 5 13 CDs Under 100k 13.412.211.8 (12)(14) Total Core Deposits $37.3 $39.3 $40.4 +8% +12% *Annualized

  9. Retail Banking Average Loans $ in millions $63,488 $63,928 $63,486 $62,677 $62,845 % Change 1Q03 vs. 1Q02 Commercial $37,140 $37,088 $36,497 $36,367 $36,463 (1.8) % Consumer 22,908 23,967 24,591 24,308 24,683 7.7% Exit Portfolios Auto 2,499 2,041 1,705 1,371 1,135 (54.6) Commercial 941 832 693 631 564 (40.1)

  10. Retail Banking Overview 12 State Footprint 2.2 Million Clients 6,100+ Employees $1.3+ Billion Revenues 902 KeyCenters 2,179 ATMs 1-800-KEY-2-YOU Key.com

  11. Retail Banking Strategic Priorities for 2003 • RETENTION • Retain All Clients/Relationships • Keep All High Performing Employees • EXPANSION • Drive Deeper Cross-Selling • Foster 1Key Leadership • ACQUISITION • Attract New Relationship Clients & COIs • Actively Recruit New High Potential Employees

  12. * Deposit * KeyBank * KeyBank Market Deposits Deposit # of District Position (in billions) Market Share KeyCenters CLEVELAND OH 1 $16.2 36% 68 CENTRAL NEW YORK 1 $1.8 12% 59 MAINE 2 $1.9 13% 62 TOLEDO OH 2 $1.4 10% 38 WESTERN NEW YORK 3 $2.3 9% 42 SOUTH PUGET SOUND WA 3 $2.0 12% 62 ALBANY NY 3 $1.8 12% 46 HUDSON VALLEY NY 3 $1.6 7% 36 NORTHERN INDIANA 3 $0.9 12% 34 IDAHO 3 $0.6 7% 30 SEATTLE WA 4 $1.6 6% 41 DAYTON OH 4 $0.8 8% 24 VERMONT 4 $0.4 8% 12 TOTAL (KEY POSITION 1-4) $33.3 15% 554 % OF KEYBANK'S TOTAL 78% 61% OREGON 5 $2.0 7% 65 TRANS MOUNTAIN WA 5 $0.8 5% 32 ALASKA 5 $0.4 6% 17 AKRON/CANTON OH 6 $1.2 7% 38 CENTRAL INDIANA 6 $0.8 5% 32 COLUMBUS OH 6 $0.8 6% 25 CINCINNATI OH 6 $0.6 2% 23 ROCHESTER NY 8 $0.3 3% 14 COLORADO 9 $1.0 2% 44 MICHIGAN 9 $0.5 4% 21 UTAH 10 $0.6 1% 37 TOTAL (KEY POSITION 5-10) $9.3 3% 348 % OF KEYBANK'S TOTAL 22% 39% KEYBANK TOTALS $42.5 902 Retail Banking KeyCenter Network Summary

  13. Retail Banking New Customer Acquisition Projected Customer Growth with Acquisitions Projected Organic Customer Growth (Millions) • Selected Initiatives Supporting Acquisition: • Multiple new product introductions (Free Checking, Continental/Key Miles Debit Card, Relationship Mortgage, Home Loan First, Student Checking, etc.) • Increased marketing spend, with clear, forceful messages • More KeyCenters & ATMs; “Grand Re-Openings” of newer KeyCenters • Added sales capacity – More RMs, SSAs, BDOs, COIs & TeleSales staff • Additional strategic bank acquisitions (like UBT)

  14. Retail Banking Client Retention Annual Attrition Rate • Selected Initiatives Supporting Retention: • Enhanced client contact strategy through KeyCenter and Outbound TeleSales Staffs and Direct Mail • Harland Modeling – “Likely to Attrite” scores • Fee changes/modifications • Expanded KeyCenter hours

  15. Retail Banking Client Satisfaction Grows Historical Scale Current Scale 8.92 8.99 1Q 2003 Aggregate hospitality scores for Key’s branch network. The scale is 1-5: 1 = Strongly Disagree 5 = Strongly Agree The scale is 1-10: 1 = Very Dissatisfied 10 = Very Satisfied

  16. Retail Banking Relationship Building • Profit Contribution per Customer

  17. Retail Banking Focus on Cross-Sell Retail Services per Household 2.92 2.86 2.81 2.63 2.59

  18. Retail Banking Transaction Migration Continues 37% 31% Percentage of Transactions 21% 11%

  19. Retail Banking Revenue Generation Through TeleSales $ Booked (Millions)

  20. Retail Banking Growing Online Banking Penetration

  21. Ranking & Number of Evaluator Companies Rated Rating Category Date Speer & Associates #1/10 Transactional Capabilities Q1 ‘03 Gomez #1/15 Small Business Ease of Use Q3 '02 Speer & Associates #2/10 Business Development Q1 ‘03 Gomez #2/15 Small Business Overall Score Q3 '02 Speer & Associates #2/10 Small Business Internet Banking Q2 ‘03 Gomez #5/30 Consumer Overall Score Q2 '03 Gomez #4/30 Consumer Ease of Use Q2 '03 Gomez #6/30 Consumer Relationship Services Q2 '03 Retail Banking Key.com Reviews • Third parties continue to rate Key.com highly • Key was rated as one of the best bank websites that effectively communicates its commitment to diversity.(DiversityInc. Dec. 2002)

  22. Retail Banking Relationship Building Revenue per Sales FTE (Thousands)

  23. Retail Banking Summary • Key’s Retail Bank is positioned for growth… • Retention, expansion & acquisition initiatives are working. • Strategic acquisitions and DeNovo expansion will supplement organic growth. • Service quality and convenience, delivered by the best people, provide the foundation for our distinctiveness in the marketplace.

  24. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD-LOOKING STATEMENT DISCLOSURE The presentation and discussion, including related questions and answers, and presentation materials, contain forward-looking statements about issues like anticipated second quarter and full-year 2003 earnings, anticipated level of net loan charge-offs and nonperforming assets and anticipated improvement in profitability and competitiveness. Forward-looking statements by their nature are subject to assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such forward-looking statements for a variety of factors including: changes in interest rates; continued weakness in the economy, which could materially impact credit quality trends and the ability to generate loans; failure of the capital markets to function consistent with customary levels; delay in or inability to execute strategic initiatives designed to grow revenues and/or manage expenses; consummation of significant business combinations or divestitures; new legal obligations or restrictions or unfavorable resolution of litigation; further disruption in the economy or the general business climate as a result of terrorist activities or military actions; and changes in accounting, tax or regulatory practices or requirements.

  25. Retail Banking Question & Answer Session

  26. Retail Banking Patrick J. Swanick President, Retail Banking & Electronic Services KeyBank 127 Public Square Cleveland, Ohio 44114 USA Phone: (216) 689-1201 Fax: (216) 689-4095 eMail: patrick_swanick@keybank.com

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