<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0508</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2025-12-02</periodOfReport>

    <issuer>
        <issuerCik>0000091576</issuerCik>
        <issuerName>KEYCORP /NEW/</issuerName>
        <issuerTradingSymbol>KEY</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000009631</rptOwnerCik>
            <rptOwnerName>BANK OF NOVA SCOTIA</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>40 TEMPERANCE STREET</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>TORONTO</rptOwnerCity>
            <rptOwnerState>A6</rptOwnerState>
            <rptOwnerZipCode>M5H 0B4</rptOwnerZipCode>
            <rptOwnerStateDescription>ONTARIO, CANADA</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>true</isDirector>
            <isTenPercentOwner>true</isTenPercentOwner>
        </reportingOwnerRelationship>
    </reportingOwner>

    <aff10b5One>false</aff10b5One>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Shares</value>
            </securityTitle>
            <transactionDate>
                <value>2025-12-02</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>57241</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>18.29</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>162294162</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Disposition pursuant to the Investment Agreement by and between the Reporting Person and the Issuer, dated August 12, 2024 (the &quot;Investment Agreement&quot;), and related arrangements between the Reporting Person and the Issuer, pursuant to which the Reporting Person participates (in certain circumstances, automatically), on a pro rata basis, in any repurchase by the Issuer of its common shares.</footnote>
        <footnote id="F2">Amount excludes certain common shares, par value $1.00 per share, of the Issuer held by the Reporting Person on a proprietary basis and in which the Reporting Person does not have a pecuniary interest (such common shares, &quot;Excluded Shares&quot;).  Excluded Shares were previously reported on, and this Form 4 is deemed to accordingly adjust, the Form 3 filed by the Reporting Person on January 6, 2025 (62,051 Excluded Shares) and the Form 4s filed by the Reporting Person on February 7, 2025 (50,000 Excluded Shares), November 20, 2025 (126,037 Excluded Shares) and November 26, 2025 (127,271 Excluded Shares).</footnote>
    </footnotes>

    <remarks>Solely for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, the Reporting Person may be deemed to be a director-by-deputization by virtue of the Reporting Person's contractual right to nominate directors to the board of directors of the Issuer pursuant to the Investment Agreement.</remarks>

    <ownerSignature>
        <signatureName>/s/ Raj Sachdeva, Vice President, Head of GBM&amp;T Compliance Canada</signatureName>
        <signatureDate>2025-12-04</signatureDate>
    </ownerSignature>
</ownershipDocument>
