## Contents 

## 2 LETTER TO SHAREHOLDERS 

Key Chairman and CEO Henry Meyer describes why the company is well positioned to deliver stronger results 

## 6 KEY IN PERSPECTIVE 

An easy-to-read guide that describes KeyGLYPH<213>s lines of business 

## 8 FINANCIAL REVIEW ManagementGLYPH<213>s Discussion & Analysis of Financial Condition & Results of Operations 

## 8 Introduction 

8 Terminology 

8 Description of business 

8 Long-term goals and related factors 

9 Corporate strategy 

9 Significant accounting policies and estimates 

11 Revenue recognition 

## 11 Highlights of Key’s 2003 Performance 

## 13 Line of Business Results 

14 Consumer Banking 

16 Corporate and Investment Banking 

16 Investment Management Services 

17 Other Segments 

## 17 Results of Operations 

17 Net interest income 

21 Noninterest income 

23 Noninterest expense 

24 Income taxes 

## 25 Financial Condition 

25 Loans 

28 Securities 

29 Deposits and other sources of funds 

30 Capital 

## 31 Off-Balance Sheet Arrangements and Aggregate Contractual Obligations 

31 Off-balance sheet arrangements 

32 Contractual obligations 

32 Guarantees 

## 33 Risk Management 

33 Overview 

33 Market risk management 

37 Credit risk management 

40 Liquidity risk management 

43 Operational risk management 

## 43 Fourth Quarter Results 

## 45 Report of Management 

## 45 Report of Independent Auditors 

## 46 Consolidated Balance Sheets 

## 47 Consolidated Statements of Income 

## 48 Consolidated Statements of Changes in ShareholdersGLYPH<213> Equity 

## 49 Consolidated Statements of Cash Flow 

## 50 Notes to Consolidated Financial Statements 

50 Summary of Significant Accounting Policies 

57 Earnings Per Common Share 

57 Acquisitions and Divestiture 

58 Line of Business Results 

61 Restrictions on Cash, Dividends and Lending Activities 

61 Securities 

63 Loans 

63 Loan Securitizations and Variable Interest Entities 

66 Impaired Loans and Other Nonperforming Assets 

66 Goodwill and Other Intangible Assets 

68 Short-Term Borrowings 

69 Long-Term Debt 

69 Capital Securities Issued By Unconsolidated Subsidiaries 

70 Shareholders’ Equity 

72 Stock Options 

73 Employee Benefits 

76 Income Taxes 

77 Commitments, Contingent Liabilities and Guarantees 

80 Derivatives and Hedging Activities 

82 Fair Value Disclosures of Financial Instruments 

83 Condensed Financial Information of the Parent Company 

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2003 KeyCorp Annual Report 

