The Bank of Nova Scotia (BNS) Looking to Raise Keycorp Stake to 20%

The Bank of Nova Scotia (NYSE:BNS) is included among the 15 Large Cap Stocks with Highest Dividends.

The Bank of Nova Scotia (BNS) Looking to Raise Keycorp Stake to 20%

The Bank of Nova Scotia (NYSE:BNS) is one of Canada’s largest banks with a strong presence across the Americas. The company offers personal, business, and commercial banking, wealth management and private banking, corporate and investment banking, and capital market services.

A Bloomberg report on March 20 revealed that The Bank of Nova Scotia (NYSE:BNS) is looking to increase its stake in KeyCorp to as much as 19.99%, up from its prior permission for a 14.99% interest. The company intends to purchase additional voting shares of KeyCorp, and thereby also indirectly acquire voting shares of KeyBank National Association, KeyCorp’s bank unit. According to a KeyCorp spokesperson, the hiked stake does not indicate any changes in the nature of the relationship between the two banks.

The Bank of Nova Scotia (NYSE:BNS) acquired its initial 14.99% stake in KeyCorp for $2.8 billion in 2024, with the latter using these proceeds to bolster its balance sheet and thereby accelerating its 2025 net interest income growth.

The Bank of Nova Scotia (NYSE:BNS) reported a revenue of $7 billion for its Q1 2026, up 7.5% from the same period last year. The company attributed this growth primarily to the higher net interest income related to lower funding costs, in addition to the higher revenue from associated corporations, primarily related to the KeyCorp investment.

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