Why Is BNS Stock Falling Today?

• BNS seeks to indirectly acquire voting shares of the company’s bank unit, KeyBank National Association, the filing said.
• BNS and KeyCorp signed an agreement in 2024 under which BNS agreed to invest about $2.8 billion to acquire a 14.9% ownership stake in KeyCorp's common shares.
• KEY last week announced that its board has authorized a share repurchase program of up to $1.0 billion of KeyCorp common shares.

Bank of Nova Scotia (BNS) shares fell on Friday after the company said in a regulatory filing that it is looking to increase its stake in Cleveland-based KeyCorp (KEY) to as much as 19.99%.

Scotiabank plans to acquire additional voting shares of KeyCorp, and thereby indirectly acquire voting shares of the company’s bank unit, KeyBank National Association, the filing said.

“Approval of this application will not result in any changes to the existing agreement between Scotiabank and KeyCorp, and Key would not be subject to any additional regulation as a result of Scotiabank increasing its noncontrolling investment,” a Bloomberg report said, citing a company spokesperson.

BNS Already Owns 14.99% Of KEY

BNS and KeyCorp signed an agreement in 2024 under which BNS agreed to invest about $2.8 billion in the regional bank in exchange for ownership of 14.9% of its common shares.

BNS’s CEO Scott Thomson, on an earnings call last month, said the company doesn’t plan to spend money to increase its stake in KeyCorp.

Key’s Share Repurchase

KEY during its fourth quarter results said that it plans to repurchase at least $1.2 billion in shares during 2026. It repurchased $200 million of common shares during the quarter. 

In March last year KEY said it would purchase up to $1 billion of KeyCorp common shares. 

Retail Reaction

Retail sentiment around BNS and KEY shares trended in ‘bearish’ and ‘bullish’ territories, respectively.

Shares of BNS and KEY have fallen 8% and 7%, respectively, so far in 2026.

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