Mr. Scott Thomson reports

SCOTIABANK COMPLETES ADDITIONAL INVESTMENT IN KEYCORP

Following regulatory approval from the board of governors of the Federal Reserve System, Bank of Nova Scotia has completed its acquisition of an additional approximately 10-per-cent pro forma ownership stake in KeyCorp through newly issued common shares at $17.17 (U.S.) per share, for a cash consideration of approximately $2-billion (U.S.).

Scotiabank announced on Aug. 12, 2024, that it had entered into an agreement to acquire an approximately 14.9-per-cent pro forma ownership stake in KeyCorp for total consideration of approximately $2.8-billion (U.S.). Scotiabank previously closed the initial investment of approximately 4.9 per cent on Aug. 30, 2024, and has now completed both stages of the investment.

"Our investment in KeyCorp represents a cost-effective, low-risk approach to deploying capital into the U.S. [United States] while boosting returns for our shareholders," said Scott Thomson, president and chief executive officer of Scotiabank. "We are pleased to have closed this transaction, which is consistent with our commitment to allocate capital from developing markets to developed markets in North America."

The impact to Common Equity Tier 1 ratio from both stages of the transaction is expected to be approximately minus-55 basis points. Scotiabank's approximately 14.9-per-cent ownership interest will be classified as an investment in associate for accounting purposes.

About Bank of Nova Scotia

Scotiabank's vision is to be its clients' most trusted financial partner and deliver sustainable, profitable growth. Guided by its purpose -- "for every future" -- the bank helps its clients, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. The bank has assets of approximately $1.4-trillion (as at Oct. 31, 2024).