KEYCORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME 47 PREVIOUS PAGE SEARCH BACK TO CONTENTS NEXT PAGE See Notes to Consolidated Financial Statements. Year ended December 31, dollars in millions, except per share amounts 2003 2002 2001 INTEREST INCOME Loans $3,550 $3,913 $5,067 Investment securities 7 10 17 Securities available for sale 356 389 454 Short-term investments 30 30 65 Other investments 27 24 24 Total interest income 3,970 4,366 5,627 INTEREST EXPENSE Deposits 703 897 1,478 Federal funds purchased and securities sold under repurchase agreements 50 90 198 Bank notes and other short-term borrowings 60 79 302 Long-term debt, including capital securities 432 551 824 Total interest expense 1,245 1,617 2,802 NET INTEREST INCOME 2,725 2,749 2,825 Provision for loan losses 501 553 1,350 Net interest income after provision for loan losses 2,224 2,196 1,475 NONINTEREST INCOME Trust and investment services income 549 609 651 Service charges on deposit accounts 364 405 387 Investment banking and capital markets income 190 172 88 Letter of credit and loan fees 162 134 124 Corporate-owned life insurance income 114 108 114 Net gains from loan securitizations and sales 90 56 49 Electronic banking fees 80 79 74 Net securities gains 11 6 35 Other income 200 200 203 Total noninterest income 1,760 1,769 1,725 NONINTEREST EXPENSE Personnel 1,493 1,436 1,378 Net occupancy 228 226 232 Computer processing 178 192 252 Equipment 133 136 152 Marketing 120 122 112 Professional fees 119 92 88 Amortization of intangibles 13 11 245 Other expense 458 438 482 Total noninterest expense 2,742 2,653 2,941 INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT  OF ACCOUNTING CHANGES 1,242 1,312 259 Income taxes 339 336 102 INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES 903 976 157 Cumulative effect of accounting changes, net of tax (see Note 1) GLYPH<209> GLYPH<209> (25) NET INCOME $ 903 $ 976 $ 132 Per common share: Income before cumulative effect of accounting changes $2.13 $2.29 $.37 Net income 2.13 2.29 .31 Income before cumulative effect of accounting changes GLYPH<209>  assuming dilution 2.12 2.27 .37 Net income GLYPH<209> assuming dilution 2.12 2.27 .31 Weighted-average common shares outstanding (000) 422,776 425,451 424,275 Weighted-average common shares and potential common  shares outstanding (000) 426,157 430,703 429,573