MANAGEMENTGLYPH<213>S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS KEYCORP AND SUBSIDIARIES FIGURE 1. SELECTED FINANCIAL DATA Compound Annual Rate of Change dollars in millions, except per share amounts 2003 2002 2001 2000 1999 1998 (1998-2003) YEAR ENDED DECEMBER 31, Interest income $3,970 $4,366 $5,627 $6,277 $5,695 $5,525 (6.4)% Interest expense 1,245 1,617 2,802 3,547 2,908 2,841 (15.2) Net interest income 2,725 2,749 2,825 2,730 2,787 2,684 .3 Provision for loan losses 501 553 1,350 490 348 297 11.0 Noninterest income 1,760 1,769 1,725 2,194 2,315 1,600 1.9 Noninterest expense 2,742 2,653 2,941 2,917 3,070 2,508 1.8 Income before income taxes and cumulative  effect of accounting changes 1,242 1,312 259 1,517 1,684 1,479 (3.4) Income before cumulative effect  of accounting changes 903 976 157 1,002 1,107 996 (1.9) Net income 903 976 132 1,002 1,107 996 (1.9) PER COMMON SHARE Income before cumulative effect  of accounting changes $ 2.13 $ 2.29 $ .37 $ 2.32 $ 2.47 $ 2.25 (1.1)% Income before cumulative effect  of accounting changes GLYPH<209>  assuming dilution 2.12 2.27 .37 2.30 2.45 2.23 (1.0) Net income 2.13 2.29 .31 2.32 2.47 2.25 (1.1) Net income GLYPH<209> assuming dilution 2.12 2.27 .31 2.30 2.45 2.23 (1.0) Cash dividends paid 1.22 1.20 1.18 1.12 1.04 .94 5.4 Book value at year end 16.73 16.12 14.52 15.65 14.41 13.63 4.2 Market price at year end 29.32 25.14 24.34 28.00 22.13 32.00 (1.7) Dividend payout ratio 57.28% 52.40% 380.65% 48.28% 42.11% 41.78% 6.5 Weighted-average common shares (000) 422,776 425,451 424,275 432,617 448,168 441,895 (.9) Weighted-average common shares and  potential common shares (000) 426,157 430,703 429,573 435,573 452,363 447,437 (1.0) AT DECEMBER 31, Loans $62,711 $62,457 $63,309 $66,905 $64,222 $62,012 .2% Earning assets 73,143 73,635 71,672 77,316 73,733 70,240 .8 Total assets 84,487 85,202 80,938 87,270 83,395 80,020 1.1 Deposits 50,858 49,346 44,795 48,649 43,233 42,583 3.6 Long-term debt 15,294 15,605 14,554 14,161 15,881 12,967 3.4 ShareholdersGLYPH<213> equity 6,969 6,835 6,155 6,623 6,389 6,167 2.5 PERFORMANCE RATIOS Return on average total assets 1.07% 1.19% .16% 1.19% 1.37% 1.32% N/A Return on average equity 13.08 14.96 2.01 15.39 17.68 17.97 N/A Net interest margin (taxable equivalent) 3.80 3.97 3.81 3.69 3.93 4.08 N/A CAPITAL RATIOS AT DECEMBER 31, Equity to assets 8.25% 8.02% 7.60% 7.59% 7.66% 7.71% N/A Tangible equity to tangible assets 6.94 6.73 6.29 6.12 6.03 5.93 N/A Tier 1 risk-based capital 8.35 7.74 7.17 7.72 7.68 7.21 N/A Total risk-based capital 12.57 12.11 11.07 11.48 11.66 11.69 N/A Leverage 8.55 8.16 7.66 7.71 7.77 6.95 N/A OTHER DATA Average full-time equivalent employees 20,034 20,816 21,555 22,939 25,469 24,858 (4.2)% KeyCenters 906 910 911 922 936 968 (1.3) Key completed several acquisitions and divestitures during the six-year period shown in this table. One or more of these transactions may have had a signiGLYPH<222>cant effect on KeyGLYPH<213>s results, making it difGLYPH<222>cult to compare results from one year to the next. Note 3 (GLYPH<210>Acquisitions and DivestitureGLYPH<211>) on page 57 contains speciGLYPH<222>c information about the acquisitions and divestiture that Key completed  in the past three years to help you understand how those transactions may have impacted KeyGLYPH<213>s GLYPH<222>nancial condition and results of operations. N/A = Not Applicable 12 PREVIOUS PAGE SEARCH BACK TO CONTENTS NEXT PAGE