Mar. 20 at 6:37 PM
Bank of Nova Scotia plans to increase its stake in KeyCorp to 19.99% from 14.99%, according to a regulatory filing. The Canadian bank intends to acquire additional voting shares of the Cleveland-based lender, indirectly increasing its exposure to KeyBank National Association.
A KeyCorp spokesperson said the move does not signal any change in the relationship between the two banks. The development follows KeyCorp’s recent
$1 billion share buyback program, which will boost existing shareholders’ ownership.
Scotiabank first agreed to invest in KeyCorp in August 2024, completing the deal in December with a roughly
$2.8 billion investment for about a 14.9% common equity stake. At the time, U.S. regional banks were strengthening capital positions after unrealized losses tied to asset price mismatches that contributed to several bank failures in 2023.
$KEY