Bank of Nova Scotia stock faces Q4 tax hit alongside KeyCorp gain

Published on 11/04/2026 at 13:06 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Bank of Nova Scotia stock faces offsetting fourth-quarter effects from KeyCorp and Chile. Scotiabank will report results on December 2, 2026.

Scotiabank prepares for fourth-quarter effects

KeyCorp is expected to contribute 96 million Canadian dollars to fourth-quarter net income, or 104 million Canadian dollars on an adjusted basis.
A one-time deferred-tax write-down linked to Chile's tax-rate reduction is expected to reduce reported and adjusted fourth-quarter earnings by 55 million Canadian dollars.
Scotiabank plans to release fourth-quarter results on December 2, 2026.

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Scotiabank expects its ownership interest in KeyCorp to add 96 million Canadian dollars to fourth-quarter net income, while a one-time tax adjustment in Chile is expected to reduce earnings by 55 million Canadian dollars. The bank disclosed the outlook on October 21 in a Scotiabank press release.

KeyCorp adds to quarterly income

The expected KeyCorp contribution represents Scotiabank's share of the U.S. lender's third-quarter 2026 net income. It includes acquisition-related and other accounting effects, deducts associated funding costs and is reported with a one-month lag.

After excluding approximately 8 million Canadian dollars of amortization for acquired intangible assets, Scotiabank expects the adjusted contribution to reach 104 million Canadian dollars. The adjusted presentation is a non-GAAP measure intended to remove specified items from revenue, expenses, taxes and non-controlling interests.

Chile tax change creates headwind

The Chilean government approved a four-percentage-point reduction in the corporate income-tax rate over the next three years, taking it to 23 percent. Scotiabank expects the resulting deferred-tax asset write-down to reduce both reported and adjusted fourth-quarter earnings for the bank and its International Banking segment by 55 million Canadian dollars.

The combination leaves investors with a mixed near-term earnings signal: KeyCorp should provide an additional contribution, while the Chile adjustment is a non-recurring drag. The effect does not by itself establish the direction of the next share-price move, but it gives investors an itemized framework for reading the fourth-quarter release.

Share price and next reporting date

Bank of Nova Scotia stock traded at 84.51 euros on Lang & Schwarz at 13:02 CET on Wednesday, November 4, 2026. The real-time quote of Bank of Nova Scotia stock is shown separately from the Canadian-dollar earnings figures.