<div id="readability-page-1"><div><ul> <li>Earlier in December 2025, KeyCorp filed a prospectus to register 161,968,762 common shares issued to The Bank of Nova Scotia, signaling a meaningful change to its capital structure and potential dilution for existing investors.</li> <li>This move comes as CEO Chris Gorman rejects bank takeovers and traditional M&amp;A while an activist investor presses for a no-acquisitions stance and leadership change, highlighting tensions around how KeyCorp uses its balance sheet and growth options.</li> <li>We’ll now examine how registering a large new share block for Bank of Nova Scotia issuance could influence KeyCorp’s investment narrative and outlook.</li> </ul><p>We've found 10 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.</p><h2>KeyCorp Investment Narrative Recap</h2><p>To own KeyCorp today, you need to believe the bank can translate its recent earnings recovery and net interest income growth into sustainable profitability, while managing credit quality and capital demands. The registration of 161.9 million shares issued to Bank of Nova Scotia is a capital structure event that may increase dilution risk, but it does not, by itself, change the near term focus on earnings resilience and asset quality as the key catalyst and primary risk.</p> <p>The new share registration sits alongside a supportive backdrop of earnings momentum, with Q3 2025 net income of US$489 million and net interest income of US$1,184 million, up from a loss a year earlier. That improvement, paired with analysts’ generally favorable view on the stock, frames how investors may weigh potential dilution against the appeal of rising profits and firmer capital generation as the main drivers of sentiment.</p> <p>However, against this improving earnings picture, investors should be aware that rising nonperforming loans or weaker asset quality could still...</p> <p>Read the full narrative on KeyCorp (it's free!)</p><p>KeyCorp's narrative projects $7.7 billion revenue and $2.4 billion earnings by 2027. This requires 10.5% yearly revenue growth and a $1.7 billion earnings increase from $716.0 million today.</p><p>Uncover how KeyCorp's forecasts yield a $22.22 fair value, a 5% upside to its current price.</p><h2>Exploring Other Perspectives</h2><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2e505ec3-cecc-4aa6-9822-1007547eae02/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2e505ec3-cecc-4aa6-9822-1007547eae02/chart/quote-price"/><figcaption>KEY 1-Year Stock Price Chart</figcaption></figure> <p>Three members of the Simply Wall St Community currently value KeyCorp between US$22.22 and US$31.35 per share, highlighting a wide spread of expectations. You can set those views against the near term earnings catalyst and the possibility that higher capital requirements could restrict how much KeyCorp can return to shareholders or reinvest in growth, which may influence how you think about the bank’s performance over time.</p><p>Explore 3 other fair value estimates on KeyCorp - why the stock might be worth just $22.22!</p><h2>Build Your Own KeyCorp Narrative</h2><p>Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.</p><ul><li>A great starting point for your KeyCorp research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.</li><li>Our free KeyCorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KeyCorp's overall financial health at a glance.</li></ul><h2>Contemplating Other Strategies?</h2><p>These stocks are moving-our analysis flagged them today. Act fast before the price catches up:</p><ul><li>The best AI stocks today may lie beyond giants like Nvidia and Microsoft. 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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>KeyCorp has registered 161,968,762 common shares with The Bank of Nova Scotia, indicating a significant change in its capital structure and potential dilution for current investors. This move aligns with CEO Chris Gorman's strategy against bank takeovers and traditional M&A, amidst activist investor pressure. Despite potential dilution risks, KeyCorp's recent earnings recovery and net interest income growth remain focal points for investors. The bank's narrative projects $7.7 billion revenue and $2.4 billion earnings by 2027, requiring 10.5% annual revenue growth.</p>

Does KeyCorp’s Massive Share Registration With Scotiabank Reshape The Bull Case For KEY?