NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES 4. LINE OF BUSINESS RESULTS CONSUMER BANKING CORPORATE AND INVESTMENT BANKING a Substantially all revenue generated by KeyGLYPH<213>s major business groups is derived from clients resident in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software and goodwill, held by KeyGLYPH<213>s major business groups are located in the United States.  b SigniGLYPH<222>cant items included under Reconciling Items for the year ended December 31, 2001, are as follows: ¥ Noninterest income includes a $40 million ($25 million after tax) charge taken to establish a reserve for losses incurred on the residual values of leased vehicles and a $15 million ($9 million after tax) increase in the reserve for customer derivative losses. 58 PREVIOUS PAGE SEARCH BACK TO CONTENTS NEXT PAGE Year ended December 31, Consumer Banking Corporate and Investment Banking Investment Management Services dollars in millions 2003 2002 2001 2003 2002 2001 2003 2002 2001 SUMMARY OF OPERATIONS Net interest income (TE) $1,856 $1,782 $1,827 $1,048 $1,070 $1,066 $250 $227 $224 Noninterest income 495 497 483 506 489 524 556 623 677 Total revenue (TE) a 2,351 2,279 2,310 1,554 1,559 1,590 806 850 901 Provision for loan losses 280 300 302 204 238 139 16 14 13 Depreciation and amortization expense 128 137 218 39 43 78 43 49 82 Other noninterest expense 1,263 1,205 1,167 680 644 637 592 609 641 Income (loss) before income taxes (TE) and  cumulative effect of accounting changes 680 637 623 631 634 736 155 178 165 Allocated income taxes and TE adjustments 255 238 248 237 238 284 58 67 67 Income (loss) before cumulative effect  of accounting changes 425 399 375 394 396 452 97 111 98 Cumulative effect of accounting changes GLYPH<209> GLYPH<209> (24) GLYPH<209> GLYPH<209> GLYPH<209> GLYPH<209> GLYPH<209> GLYPH<209> Net income (loss) $ 425 $ 399 $ 351 $ 394 $ 396 $ 452 $9 7 $111 $ 98 Percent of consolidated net income 47% 41% 266% 43% 41% 342% 11% 11% 74% Percent of total segments net income 46 42 39 43 42 51 11 12 11 AVERAGE BALANCES Loans $28,905 $27,882 $27,751 $27,871 $29,279 $31,109 $5,060 $4,827 $5,179 Total assets a 31,309 30,218 30,368 32,255 32,798 35,034 6,121 5,840 6,390 Deposits 34,773 33,940 35,210 4,414 3,395 3,116 6,084 3,920 3,675 OTHER FINANCIAL DATA Expenditures for additions to long-lived assets a $5 6 $7 4 $5 1 $1 1 $1 4 $1 9 $17 $11 $18 Net loan charge-offs 280 299 350 249 466 305 18 14 13 Return on average allocated equity 19.07% 19.08% 15.77% 11.77% 12.08% 14.31% 15.75% 18.56% 14.69% Average full-time equivalent employees 8,445 8,443 8,668 2,459 2,446 2,550 2,834 3,146 3,369 Retail Banking provides individuals with branch-based deposit and investment products, personal finance services and loans, including residential mortgages, home equity and various types of installment loans. Small Business provides businesses that have annual sales revenues of $10 million or less with deposit, investment and credit products, and business advisory services. Consumer Finance includes Indirect Lending and National Home Equity. Indirect Lending offers automobile and marine loans to consumers through dealers and finances inventory for automobile and marine dealers. This business unit also provides federal and private education loans to students and their parents and processes payments on loans from private schools to parents. National Home Equity provides both prime and nonprime mortgage and home equity loan products to individuals. These products originate outside of Key’s retail branch system. This business unit also works with mortgage brokers and home improvement contractors to provide home equity and home improvement solutions. Corporate Banking provides an array of products and services to large corporations, middle-market companies, financial institutions and government organizations. These products and services include financing, treasury management, investment banking, derivatives and foreign exchange, equity and debt trading, and syndicated finance.  KeyBank Real Estate Capital provides construction and interim lending, permanent debt placements and servicing, and equity and investment banking services to developers, brokers and owner-investors. This line of business deals exclusively with nonowner-occupied properties (i.e., generally properties for which the owner occupies less than 60% of the premises). Key Equipment Finance meets the equipment leasing needs of companies worldwide and provides equipment manufacturers, distributors and resellers with financing options for their clients. Lease financing receivables and related revenues are assigned to other lines of business (primarily Corporate Banking) if those businesses are principally responsible for maintaining the relationship with the client.