Scotiabank Expects C$74 Million Contribution to Net Income From KeyCorp Stake in 4Q

By Robb M. Stewart

Bank of Nova Scotia expects its investment in KeyCorp will contribute about 74 million Canadian dollars, the equivalent of $52.6 million, to net income in the fiscal fourth quarter.

The figure is net of Scotiabank's associated funding costs and is reported on a one-month lag. Adjusting for the amortization of acquired intangible assets of roughly C$8 million, the Canadian lender's adjusted net income contribution from KeyCorp is forecast at about C$82 million for the quarter.

Scotiabank, which is scheduled to release its fourth-quarter financial results Dec. 2, at the end of last year finalized a $2.8 billion investment in KeyCorp. That saw it grab an almost 15% stake in the U.S. regional lender as part of an effort to expand its reach and gain exposure to retail banking in the country.

Scotiabank recorded net income of C$2.53 billion in its fiscal third quarter, and total revenue of C$9.49 billion for three months to July 31.

Write to Robb M. Stewart at robb.stewart@wsj.com