Scotiabank Expects C$77 Million Contribution to Net Income From KeyCorp Stake in 2Q

By Adriano Marchese

Bank of Nova Scotia expects its investment in KeyCorp will contribute about 77 million Canadian dollars, the equivalent of US$56.2 million, to its net income in the fiscal second quarter.

The contribution doesn't include Scotiabank's associated funding costs and is reported on a one-month lag, the bank said Friday.

Adjusting for the amortization of acquired intangible assets of roughly C$8 million, the Canadian bank's adjusted net-income contribution from KeyCorp is forecast to be about C$85 million for the quarter.

Scotiabank, which is scheduled to release its second-quarter financial results on May 27, at the end of 2024 finalized a US$2.8 billion investment in KeyCorp in which it took an almost-15% stake in the U.S. regional lender as part of a move to expand its reach and gain exposure to retail banking in the country.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

04-17-26 0914ET