The Chilean government recently finalized a reduction in its corporate income tax rate, which will drop to 23% over the next three years. This regulatory change mandates a deferred tax asset write-down for the bank, impacting both its overall and international segment results by roughly 39.1 million U.S. dollars.

Countering this pressure, Scotiabank anticipates a 96 million Canadian dollar income contribution from its 15% stake in KeyCorp for the three months ending in October. This figure marks an increase from the 82 million Canadian dollars recorded in the previous quarter. After accounting for the amortization of acquired intangible assets, the adjusted contribution from the U.S. regional lender is projected to reach 104 million Canadian dollars.

Scotiabank finalized its 2.8 billion U.S. dollar investment in KeyCorp late last year, a move that bolstered its international footprint. The bank’s previous fiscal third-quarter results showed strong momentum, with net income rising to 2.95 billion Canadian dollars compared to 2.53 billion a year earlier, bolstered by improved credit quality and margin expansion in its international banking division.