Scotiabank’s 1832 Asset Management subsidiary has dissolved its stake in Israeli arms manufacturer Elbit Systems, regulatory filings showed, after the Canadian bank faced sharp criticism for the investment.

Activists angered over Elbit’s role in supplying military equipment used by Israel during its war in Gaza had pressured the Scotiabank investment arm, which at one point was the biggest foreign investor in the weapons maker.

The investment arm no longer holds shares in Elbit, a change from its reported holding of about 165,000 shares in November, according to the filing with the US Securities and Exchange Commission on Friday.

The Canadian bank did not immediately respond to a request for comment on the stake sale, according to Reuters.

Scotiabank’s exposure to the weapons maker had triggered a number of protests at the bank’s branches, Reuters reported in 2023. It had also disrupted Canada’s prestigious Giller Prize Gala, a literary award that was sponsored by Scotiabank.

The contract between the Giller Prize and Scotiabank ended in February 2025.

The Israeli Defence Ministry said in January that it had signed a multi-year agreement for air munitions with Elbit worth $183 million.

Elbit reported sharply higher third-quarter profit in November, fueled by sales to Israel’s military during its war against Palestinian militant group Hamas in Gaza and by higher global defence spending.

US-listed shares of Elbit more than doubled last year.