#1Investor Presentation March 2020 Scotiabank®#2Caution Regarding Forward-Looking Statements From time to time, our public communications often include oral or written forward- looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2019 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "foresee," "forecast," "anticipate," "intend," "estimate," "plan," "goal," "project," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would" and "could." By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; changes to our credit ratings; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; disruptions in or attacks (including cyber-attacks) on the Bank's information technology, internet, network access, or other voice or data communications systems or services; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2019 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2019 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. 2#3TABLE OF CONTENTS Scotiabank Overview • • • • . • • Leading Bank in the Americas Economic Outlook in Core Markets Well-Diversified Business with Strong Returns Business Lines Why Invest in Scotiabank? Focused on Higher Return Markets • Increasing Banking Penetration • • • . • Repositioning is Substantially Complete Acquisition & Divestiture Activity Medium-Term Financial Objectives Q1 2020 Financial Performance Earnings and Dividend Growth Strong Capital Generation Technology Strategy Fintech Growth in Digital Banking • Environmental, Social & Governance (ESG) Business Line Overview: Canadian Banking Business Line Overview: International Banking Business Line Overview: Global Wealth Management Business Line Overview: Global Banking and Markets Risk Overview • Risk Snapshot 45678 9 10 11 12 13 14 15 16 17 18 19 20 21 23 31 42 46 50 • Risk Density • Historical PCL Ratios on Impaired Loans . Canadian Retail: Loans and Provisions . International Retail: Loans and Provisions Energy Exposure Treasury and Funding Funding Strategy • Wholesale Funding 51 52 53 54 55 56 57 58 59 60 61 Deposit Overview Wholesale Funding Utilization Liquidity Metrics Appendix 1: Core Markets: Economic Profiles Appendix 2: Canadian Housing Market Appendix 3: Additional Information Contact Information 62 63 69 78 80 3#4Scotiabank Overview · . • Leading bank in the Americas with competitive scale in high return markets Repositioning of business substantially complete Greater geographic focus, increased scale in core markets, and improved business mix Strong credit quality. Stable credit metrics. Positioned for higher capital ratios, ongoing buybacks, and sustainable long-term earnings growth 4#5Leading Bank in the Americas¹ Core markets: Canada, US, Mexico, Peru, Chile and Colombia 7th largest bank by assets¹ in the Americas Q1 Change Full-Service, Universal Bank Canada (AAA) #3 Bank Scotiabank2 Revenue 2020 Y/Y $7,989MM +5% Canada Net Income $2,344MM +2% Mexico Return on Equity 13.9% +20 bps Peru Chile Operating Leverage +1.3% n.a. United States Colombia Productivity Ratio 53.4% (70 bps) (AA+) Caribbean Top 15 FBO Uruguay Total Assets $1.2T +12% Colombia (BBB-) Ranking by Market Share³ Mexico (BBB+) #5 Bank #6 Bank USA Wholesale Operations Canada #3 USMCA USA Top 15 FBO UK Mexico #5 Singapore Australia Peru #3 PAC Ireland Hong Kong SAR Peru (BBB+) #3 Bank Chile Colombia #3 #6 China Brazil Chile (A+) South Korea Malaysia Earnings by Market2,4 Other- C&CA #3 Bank India Japan 7% 6% PAC 23% 55% Canada 9% 1 Ranking by asset as at February 24, 2020, Bloomberg; 2 Adjusted for acquisition and divestiture-related amounts, impact of additional pessimistic scenario in ACLs, Derivative Valuation Adjustment, and impairment charge on software asset; ³ Ranking based on market share in loans as of December 2019 for PACs (incl. M&A), as of October 2019 in Canada for publically traded banks; Adjusted net income attributable to equity holders of the Bank for the 3 months ended January 31, 2020 Americas (~95%) U.S.A 5#6Economic Outlook in Core Markets Real GDP Growth Forecast (2019-2021) Real GDP (Annual % Change) 2010-18 Country 2019f 2020f 2021f Average Canada 2.2 1.6 1.5 2.0 U.S. 2.3 2.3 1.7 1.8 Mexico 3.0 0.0 1.0 1.8 Peru 4.8 2.3 3.0 3.5 Chile 3.5 1.0 1.4 3.0 Colombia 3.8 3.2 3.6 3.6 Pacific Alliance Average 3.8 1.6 2.3 3.0 Source: Scotiabank Economics. Forecasts as of January 13, 2020 6#7Well-Diversified Business with Strong Returns Earnings by Business Line 1,2,3 Wealth Management 13% Global Wealth Management 13% Earnings by Market¹,2 Europe, Asia, Brazil, Australia Caribbean and Central America Colombia 1% C&CA* 6% Other 7% Wholesale Banking 20% Global Banking and Markets 20% Canadian Banking P&C Personal & Commercial Banking Q1 2020 40% EARNINGS MIX 67% $2.3B3 International Banking P&C 27% Adjusted Return on Equity 1,2 by Business Line Chile 5% Peru 9% Q1 2020 EARNINGS MIX $2.3B3 Mexico 8% U.S. 9% 21.9% 12.7% 13.7% 14.0% 13.9% Canada 55% Canadian Banking International Banking Global Wealth Management Global Banking and Markets All Bank 1Net income attributable to equity holdersor for the 3 months ended January 31, 2020; 2 Adjusted for acquisition and divestiture-related amounts, impact of additional pessimistic scenario in ACLs, Derivative Valuation Adjustment, and impairment charge on software asset; 3 Excluding Other segment 7#8Business Lines Activity Business Line Products Personal & Commercial Banking Canadian Banking ⚫ Mortgages Auto Loans Commercial Loans Personal Loans Credit Cards International Banking • Mortgages Auto Loans Commercial Loans • Personal Loans • Credit Cards Wealth Management Global Wealth Management • Asset Management Private Banking Private Investment Counsel • Brokerage Capital Markets Global Banking and Markets • Corporate Banking Advisory Equities Fixed Income Foreign Exchange • Commodities ⚫ Trust NIAEH¹ ($MM) $908 $615 $318 $451 % All-Bank¹ 40% 27% 13% 20% % Target 35-40% 25-30% ~15% 15-20% Productivity 45.4% 52.9% 62.4% 51.5% Ratio¹ ROE1 21.9% 12.7% 13.7% 14.0% Employees² 18,538 55,190 7,214 2,426 1 Adjusted figures for the 3 months ended January 31, 2020 2 As at January 31, 2020 8#9Why Invest in Scotiabank? , $ Leading bank in the Americas Six core markets: Canada, US, Mexico, Chile, Peru and Colombia • ~95% of earnings from the Americas • ~85% of earnings from six core markets Diversified exposure to high quality growth markets Unique Americas footprint provides diversified exposure to higher growth, high ROE banking markets • 225 million people in the Pacific Alliance countries comprise the 6th largest economy in the world Increasing scale and market share in core markets Improved earnings quality, lower risk profile • Competitive scale and increasing market share in core markets Competitive advantages in technology, risk management, and funding versus competitors Increased scale in Wealth Management and P&C businesses via M&A • ~80% of earnings from stable P&C banking and wealth businesses • Simplified footprint lowers operational risk and regulatory costs • Strong Canadian risk management culture with strong capabilities in AML and cybersecurity Strengthening competitive advantages in technology and talent High levels of technology investment supports digital banking strategy to increase digital sales and adoption Named "Bank of the Year" in Canada (2019) 9#10Focused on Higher Return Markets 25.0% Banking: Average ROE by Market (Latest Reporting Period) 20.0% 19.1% 15.3% 15.0% 12.1% 11.0% 10.0% 5.0% 0.0% Pacific Alliance Canada US St 78% of all-bank earnings Return on equity in latest reporting period for the leading bank by market share for loans in each country. Canada and US figures are average for five largest and 10 largest market share banks in each country, respectively Sources: Bloomberg LLP, Company Financial Reports. 6.7% Asia Europe 10 0#11Banking Penetration (%)¹ Increasing Banking Penetration 150 100 Growth Markets Brazil Chile Colombia C&CA 50 PAC Peru ⚫ Cambodia Mexico Czech Republic Mature Markets Canada U.K. Spain U.S. Bubble size represents nominal GDP Scotia P&C Markets Scotia Americas Wholesale Markets Other Markets $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 GDP per Capita (US$)² 1 Source: World Bank Open Data 2018. Banking Penetration is defined as account ownership at a financial institution or with a mobile-money-service provider (% of population ages 15+) 2 Source: World Bank Open Data 2018. GDP per capita is nominal gross domestic product divided by mid year population 11#12Repositioning is Substantially Complete P Simplifying the Bank Exited 22 non-core (higher risk, low growth) countries since 2014 Sold 10 non-core (non- customer facing, low return) businesses since 2014 ~95% of earnings generated from America's footprint Improving Earnings Quality ~85% of earnings from six core markets (Canada, the US and Pacific Alliance) • Targeting higher earnings contribution from stable P&C Banking and Wealth Management businesses • Targeting 70% from P&C Banking, 15% from Global Wealth Management, and 15% from Global Banking and Markets De-Risking the Bank • Improving credit quality metrics and generating higher mix of earnings from investment grade countries Exits from sub-investment grade, low growth jurisdictions Gross impaired loans ratio decreased from 110 bps in 2017 to 77 bps in 2020 12#13Acquisition & Divestiture Activity (2018-2020) Increasing Scale in Core P&C Markets and Wealth Management Citi Colombia Banco Dominicano del Progreso 6% 5% Cencosud Peru 2% BBVA Chile 39% ACQUISITIONS: $7.5B International P&C 52% Jarislowsky Fraser 13% Wealth Management 48% MD Financial 35% Caribbean (Leeward Islands) Pension & Benefits Administration 1% El Salvador 9% Puerto Rico & 10% DIVESTITURES: $5.8B Thanachart Bank Thailand 56% USVI 24% 13#14Medium-Term Financial Objectives Metrics All-Bank Objectives¹ Latest Performance (Q1/20)² EPS Growth 7%+ +5% ROE 14%+ 13.9% Operating Leverage Positive +1.3% Capital Strong Levels 11.4% 13-5 year targets from 2020 Investor Day 2 Adjusted for acquisition and divestiture-related amounts, impact of additional pessimistic scenario in ACLs, Derivative Valuation Adjustment, and impairment charge on software asset 14#15Q1 2020 Financial Performance Strong revenue growth and positive operating leverage $MM, except EPS Q1/20 Y/Y Q/Q Reported . Net Income $2,326 +4% +1% Pre-Tax, Pre Provision Profit $3,723 +8% +2% Diluted EPS $1.84 +8% +6% Revenue $8,141 +7% +2% Expenses $4,418 +6% +2% Productivity Ratio 54.3% (60 bps) +20 bps Core Banking Margin 2.45% PCL Ratio¹ 61 bps +14 bps +5bps +11 bps • PCL Ratio on Impaired Loans¹ 55 bps +8 bps +6 bps YEAR-OVER-YEAR HIGHLIGHTS Adjusted EPS growth up 5%² Adjusted Net Income up 2%2 ○ Excluding divestitures net income grew by 8%2 Pre-tax, pre-provision profit (PTPP) up 7%² Adjusted Revenue up 5%² Net interest income up 3% Non-interest income up 8%2 Adjusted Expense growth of 4%² Adjusted Operating leverage of +1.3%² Adjusted² Net Income $2,344 +2% (2%) Pre-Tax, Pre Provision Profit $3,724 +7% (1%) Diluted EPS $1.83 +5% +1% ADJUSTED NET INCOME³ BY BUSINESS SEGMENT ($MM) Revenue $7,989 +5% Expenses $4,265 +4% +2% +5% Y/Y Productivity Ratio 53.4% (70 bps) +70 bps PCL Ratio1 51 bps +4 bps +1 bp -17% Y/Y4 +35% +11% Y/Y Y/Y PCL Ratio on Impaired Loans¹ 53 bps +6 bps +4 bps 865 908 743 615 286 318 335 451 CB IB ■ Q1/19 GWM GBM ■ Q1/20 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Adjusted for acquisition and divestiture-related amounts, impact of additional pessimistic scenario in ACLS, Derivative Valuation Adjustment, and impairment charge on software asset 3 After non-controlling interest 4 Y/Y growth rate is on a constant dollars basis 15 15#16Earnings and Dividend Growth Strong track record of stable and predictable earnings and growing dividends Earnings per share (C$)1,2 $3.31 T +8% CAGR $7.14 Total shareholder return³ Scotiabank ■Big 5 Peers (ex. Scotiabank) 12.6% 11.6% 11.9% 11.1% 9.4% 8.2% $1.83 09 10 11 12 13 14 15 16 17 18 19 Q1 20 12 Dividend per share (C$) $1.96 7 +6% CAGR 5 Year 10 Year 20 Year $3.49 $0.90 09 10 11 12 13 14 15 16 17 18 19 Q1 20 1 Reflects adoption of IFRS in Fiscal 2011. 2 Excludes notable items for years prior to 2016. For 2016 onwards, results adjusted for acquisition and divestiture-related amounts, impact of additional pessimistic scenario in ACLS, Derivative Valuation Adjustment, and impairment charge on software asset. 3 As of January 31, 2020 16#17Strong Capital Generation Clear path to higher capital ratio CET1 Ratio 11.1% -18 bps +26 bps -19 bps -6 bps -6 bps +4 bps 11.4% +49 bps Q4/19 Reported Earnings Less Dividends RWA Growth (ex. FX) Share Buybacks (Net of Issuances) Pension Regulatory Changes Other (net) Non-core Divestitures Q1/20 Reported Internal Generation Strong Capital Levels 14.6% 2.1% 1.4% 14.7% 14.8% 14.2% 14.6% 2.2% 2.5% 2.0% 2.1% 1.4% 1.1% 1.1% 1.1% 11.1% 11.1% 11.2% 11.1% 11.4% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 CET1 Tier 1 Tier 2 17#18Technology Strategy Co $ Build a strong and scalable platform foundation . Cloud-first strategy for automation and speed Rebalance core technology spending towards modernization Maintain consistent investment in technology Technology Investment Growth Rate (YoY Change) 21% rate Moderating to 14% steady-state growth 12% 11% 9% 7% 2014 2015 2016 2017 2018 2019 • Technology Investment ~11% of revenue ($3.6B) Common systems • Software re-use, best practice-sharing • Consistent software design • Customer-focused micro-services Analytics on real-time data • Strong cyber-security foundation 18#19Fintech Partnerships QED INVESTORS Georgian Partners Scale UP VENTURES • • • V VIOLA VENTURES • TEAM8 Rethinking Cyber Focus Areas Proof of Concepts¹ Credit adjudication Accessibility Natural language processing Personal financial management Customer experience and self-service Machine-learning modelling Data collaboration Cybersecurity konfio Cerebri≥ Fable Tech Labs Eigen Technologies personetics® wysdom stratifyd™ HH callvu H₂O cinchy TEAM8 Rethinking Cyber 1 Selected proof of concepts with fintech partners 199 19#20Growth in Digital Banking Steady progress against 2018 Investor Day digital targets Digital Retail Sales¹ Digital Adoption² +19% 30 28 22 15 11 29 26 29 In-Branch Financial Transactions³ +15% -12% 41 26 39 23 33 20 16 14 2016 2017 2018 2019 Q1/20 2016 2017 2018 2019 Q1/20 2016 2017 2018 2019 Q1/20 Goal >50% Goal >70% Strong progress made across core markets • Adoption grew 8% since Q1/19 1 Canada: F2017 22%, F2018 26%, F2019 26% PACS: F2017 13%, F2018 19%, F2019 29% 2 Canada: F2017 36%, F2018 38%, F2019 42% PACS: F2017 20%, F2018 26%, F2019 35% 3 Canada: F2017 17%, F2018 15%, F2019 12% PACS: F2017 29%, F2018 24%, F2019 19% Goal <10% In-branch transactions fell 4% compared to Q1/19 20 20#21Environmental, Social & Governance (ESG) Scotiabank's Climate Commitments include: Mobilize $100 billion by 2025 to reduce the impacts of climate change. Memberships, Associations and Partnerships MEMBER OF Dow Jones Sustainability Indices In Collaboration with Robeco SAM SAM Sustainability Award Industry mover 2019 UN GLOBA COMPACT United Nations UN Global Compact WOMEN E TASK FORCE ON CLIMATE-RELATED FINANCIAL TCFDs DISCLOSURES SAM Sustainability Award Bronze Class 2019 2019 = Bloomberg Gender-Equality Index TOP 100 COMPANY 2018 Thomson Reuters Diversity & Inclusion Index REFINITIV TOP 100 COMPANY 2019 Diversity and Inclusion Index FINANCE UNEP INITIATIVE PRI Principles for Responsible investment CDP DRIVING SUSTAINABLE ECONOMIES SUSTAINABLE DEVELOPMENT GOALS EQUATOR PRINCIPLES CP LC CARBON PRICING LEADERSHIP COALITION 21 21#22Environmental, Social & Governance (ESG) Highlights from 2019 E Environmental TRUST S Social We are here for every future G Governance Committed to mobilize $100 billion by 2025 to reduce the impacts of climate change Issued USD$500 million Green Bond. Proceeds fund assets under the Scotiabank Green Bond Framework, including renewable energy, clean transportation and green buildings Achieved 17% greenhouse gas (GHG) reduction from a 2016 baseline, achieving our 10% target two years early; set new target of 25% by 2025 Internal price on carbon of $15/tonne invested in GHG reduction initiatives; increased to $30/tonne for 2020; to $60/tonne by 2022 Implemented a Climate Change Risk Assessment tool in corporate & commercial lending to assess clients' physical & transition climate risks . Nearly $100 million invested globally in communities where we operate as part of our global philanthropy program $3 billion in funding committed over the first three years of The Scotiabank Women Initiative™ to advance women-led businesses in Canada Signed the UN Women's Empowerment Principles and UN LGBTI Codes for Business Conduct $250 million committed over 10 years to help employees adapt to the digital economy Lead bank in Canada in the Finance Against Slavery and Trafficking initiative, the Financial Access Project, to open accounts for survivors of modern slavery Top 1% of global financial institutions for Corporate Governance in Dow Jones Sustainability Index 38% of our directors are female. We first established a Board diversity policy in 2013 Appointed third independent Chairman in 2019. Separate CEO and Chairman roles since 2004 Dedicated significant Board time to cybersecurity, anti-money laundering, conduct and culture issues, keeping the Bank safe 22 22#23Business Line Overview Canadian Banking 23 23#24Canadian Banking Top 3 bank in personal & commercial banking in Canada Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to Retail, Small Business, Commercial Banking customers. Canadian Banking also provides an alternative self- directed banking solution to over 2 million Tangerine Bank customers. Retail 76% REVENUE MIX1 $2.7B Commercial 24% Residential Mortgages 62% AVERAGE LOAN MIX1 $351B MEDIUM-TERM FINANCIAL OBJECTIVES Target² NIAT Growth³ 5%+ Productivity Ratio <44% Credit Cards 20% 16% Business and Government Loans Personal Loans Operating Leverage Positive STRATEGIC OUTLOOK Improve Sustained Business Performance: Invest to grow our higher ROE businesses, including Business Banking, to deliver consistent and stable long-term earnings growth ⚫ Instill a Winning team Culture: Engage employees through a RESULTS (Revenue, Earnings, Simplify, Urgency, Listen, Trust, Support) focused culture Superior Customer Experience: Develop deeper household relationships for our customers across Canada by providing differentiated focus and service to those who are most loyal and engaged Scale our unique partnerships and assets: Leverage our long-term partnerships and assets like MLSE, Scene and Wealth businesses to generate growth across our division For the three months ended January 31, 2020; 23-5 year target from 2020 Investor Day; 3 Adjusted Net income attributed to equity shareholders 24#25Canadian Banking Financial Performance $MM Q1/20 Y/Y Q/Q • Reported Net Income¹ $852 (1%) (5%) Pre-Tax, Pre Provision Profit $1,474 +6% +1% Revenue $2,707 +5% +1% • Expenses $1,233 +4% +1% PCLs $321 +39% +30% Productivity Ratio 45.6% (30 bps) +20 bps Net Interest Margin 2.36% (3 bps) (5 bps) . PCL Ratio² 0.36% +8 bps +8 bps PCL Ratio Impaired Loans² 0.30% +2 bps +1 bp Adjusted³ • Net Income¹ $908 +5% +1% Pre-Tax, Pre Provision Profit $1,479 +5% +1% YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 5%³ o Solid volume growth and higher fee income offsetting margin pressure o Stable PCL ratio Revenue up 5% o Net interest income up 4% o Non-interest income up 7% Loan growth of 6% o Residential mortgages up 5%; credit cards up 5% o Business loans up 12% Deposit growth of 5% o Personal up 5%; Non-Personal up 6% • NIM down 3 bps Expenses $1,228 +4% +1% • PCLS $250 +8% +1% • Productivity Ratio 45.4% (30 bps) +20 bps Positive operating leverage of +0.9%³ Improved productivity ratio PCL Ratio² 0.28% 1,3 ADJUSTED NET INCOME ¹³ ($MM) AND NIM (%) PCL Ratio Impaired Loans² 0.29% +1 bp 2.44% 2.39% 2.40% 2.41% 2.36% 865 823 914 902 908 1 Attributable to equity holders of the Bank 3 Adjusted for Acquisition-related costs and impact of additional pessimistic scenario 2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 25#26Canadian Banking: Financial Performance High quality retail loan portfolio: ~93% secured • High quality residential mortgage portfolio 80% Real Estate Secured Lending 。 37% insured; remaining 63% uninsured has a LTV of 54%¹ • Market leader in auto loans o $39.1 billion retail auto loan portfolio with 7 OEM relationships (3 exclusive) o Prime Auto and Leases (~91%) 。 Stable lending tenor with contractual terms for new originations averaging 78 months (6.5 years) with projected effective terms of 54 months (4.5 years) • Growth opportunity in credit cards o $7.7 billion credit card portfolio represents ~3% of domestic retail loan book and 1.2% of the Bank's total loan book o Organic growth strategy focused on payments and deepening customer relationships 。 Upside potential from existing customers: over 80% of growth is from existing customers (penetration rate mid-30s and trending up versus peers in the low- 40s) 。 Strong risk management culture with specialized credit card teams, customer analytics and collections focus 4% Unsecured DOMESTIC RETAIL LOAN BOOK² $302.6B 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 Spot Balance as of January 31, 2020 3% Credit Cards 13% Automotive 26#27Canadian Banking: Residential Mortgages High quality, diversified portfolio • Residential mortgage portfolio of $230 billion: 37% insured; LTV 54% on the uninsured book1 。 Mortgage business model is "originate to hold" o New originations² in Q1/20 had average LTV of 64.4% 。 Majority is freehold properties; condominiums represent approximately 13.9% of the portfolio ⚫ Three distinct distribution channels: all adjudicated under the same standards o 1. Broker (~61%); 2. Branch (~19%); and 3. Mobile Salesforce (~20%) 。 Our recently launched Scotiabank eHOME digital mortgage solution is emerging as our 4th distribution channel. Since the launch of eHOME, we have processed more than 2,800 mortgage applications. Most recently, we launched the ability for Canadians to get pre-approved online with a credit decision and a pre-approval letter in just minutes - another first for the industry. Over 1,200 preapproval applications have already been processed. We have also partnered with the Canadian Real Estate Association (CREA) to enable customers to search for a home directly within eHOME, making the entire home-buying journey digital 37% CANADIAN MORTGAGE PORTFOLIO: $230B (SPOT BALANCES AS AT Q1/20, $B) Insured Freehold $198B - Condos $32B - $119.4 $14.8 Total Portfolio: $230 billion $104.6 $43.0 $11.0 $30.7 $3.7 $32.0 $27.0 Ontario BC & Territories Alberta % of portfolio 51.9% $16.4 $14.5 Quebec $1.9 $11.1 $10.8 $9.4 $0.2 $0.7 $8.7 63% Atlantic Provinces Manitoba & Uninsured Saskatchewan 18.7% 13.4% 7.1% 4.8% 4.1% 1LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions 27 22#28Canadian Residential Mortgages - LTVs* Credit fundamentals remain strong NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION BC & Territories 64% GVA 63% Q1/19 Q4/19 Q1/20 Canada Total Originations ($B) 9.3 13.3 11.2 Uninsured LTV 64% 65% 64% GTA 63% GTA Total Originations ($B) Uninsured LTV 3.2 4.2 3.7 63% 64% 63% Atlantic Prairies 67% ON QC 64% 67% Provinces 66% GVA Total Originations ($B) Uninsured LTV 1.0 1.6 59% 64% 1.4 63% *Average LTV ratios for our uninsured residential mortgages originated during the quarter FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO² Average FICO® Score 59% Canada 790 GTA 792 GVA 796 15% 11% 11% 4% < 635 636-706 FICO is a registered trademark of Fair Isaac Corporation 707-747 2 FICO® distribution for Canadian uninsured portfolio based on score ranges at origination 3 Percentage is based on Total Mortgages *Above figures include Wealth Management 748-788 > 788 Only <0.69% of uninsured portfolio³ has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $144 billion as at Q1/2020 28#29Tangerine Canada's leading digital Bank Medium Term Objectives 15%+ Earnings CAGR 6%+ Deposits CAGR Recent Accolades No.1 Mid-Sized Bank A+® Award By Fundgrade 10%+ Assets CAGR No.1 Credit Card Ranked No. 1 in Client Satisfaction by J.D. Power for the 8th year in a row Awarded for performance of Balanced Income Portfolio in 2019 Ranked highest in Credit Card Satisfaction by J.D. Power Our Approach Client Experience Maintain industry-leading position in customer experience through best-in-class onboarding and innovation Product Innovation Broadening asset and payments portfolios to double earnings and meet evolving client needs Strategic Partnerships Leverage partnerships with Raptors, MLSE, and Cineplex to drive client growth and satisfaction 29 29#30Automotive Finance Canada's leader in automotive finance Provide personal and commercial dealer financing solutions, in partnership with seven leading global automotive manufacturers in Canada • Portfolio grew 5%1 year-over-year Personal up 6%, Commercial up 1% Commercial 13% Exclusive Relationships MAZDA VOLVO JAGUAR/LAND ROVER AVERAGE Near-Prime Retail ASSET MIX 8% $44.8B1 Semi-Exclusive Relationships* 79% 100% Secured HYUNDAI CHRYSLER GM TESLA Prime Retail * 1 to 2 other financial institutions comprise Semi-Exclusive relationships Market Share Prime Retail Market Share² 37% 63% Near-Prime Retail Market Share3 76% 24% Commercial Floorplan Market Share4 72% 28% For the three months ended January 31, 2020; 2 CBA data as of July 2019, includes RBC, CIBC, Canadian Western Bank, National Bank, TD, Scotiabank, Laurentian Bank; 3 DealerTrack Portal data, includes all Near-Prime Retail providers on Dealer Track Portal, data for January 2020 originations; 4 Includes BMO, CIBC, RBC, Scotiabank, TD, HSBC, Canadian Western Bank, Laurentian Bank, data as of June 2019 30#31Business Line Overview International Banking 31#32International Banking Leading P&C bank focused on high quality growth markets in Latin America and the Caribbean ⚫ International Banking operates primarily in Latin America and the Caribbean with a full range of personal and commercial financial services. Core markets are the Pacific Alliance countries of Mexico, Peru, Chile and Colombia Asia Business 52% Loans LOAN MIX1 Credit 7% $151B 24% REVENUE1 C&CA $3.0B 74% Cards Latin America 7% Other MEDIUM-TERM FINANCIAL OBJECTIVES Target² NIAT Growth³ 9%+ 15% Personal 26% 25% 28% Mexico Latin America Loans Peru Residential Mortgages Productivity Ratio <50% 15% Colombia 25% Chile 93% PAC Operating Leverage Positive STRATEGIC OUTLOOK Optimize Footprint: Continue executing with discipline announced acquisitions and divestitures to enhance the risk profile of our portfolio and improve quality of our earnings • Lead in Customer Experience and Digital: Continue accelerating our digital transformation to amplify business impact and continue deploying digital solutions to other channels to optimize our distribution model ⚫ Accelerate Growth Drivers: Leverage new strategic partnership to accelerate insurance growth, scale our Capital Markets business in the Pacific Alliance and build our Wealth business with focus in affluent customer segment 1 For the 3 months ended January 31, 2020; 23-5 year target from 2020 Investor Day; 3 Excluding divestitures impact 32#33International Banking Financial Performance $MM1 Q1/20 Y/Y Q/Q Reported Net Income² $518 (29%) (23%) Pre-Tax, Pre Provision Profit $1,321 (10%) (11%) • Revenue $2,985 (2%) (5%) Expenses $1,664 +6% PCLS $580 +30% Productivity Ratio 55.7% +360 bps +17% +270 bps • Net Interest Margin³ 4.51% (3 bps) • PCL Ratio4 1.57% +28 bps +22 bps PCL Ratio Impaired Loans4 1.45% +21 bps +18 bps Adjusted 5 Net Income² $615 (17%) (15%) YEAR-OVER-YEAR HIGHLIGHTS1 Adjusted Net Income ex. divestitures down 4%2,5 о Tax benefits in Mexico last year Revenues ex. divestitures up 4% Margin compression in Mexico and Chile Gain from foreclosed asset sale last year Strong loan growth - Pacific Alliance up 10% NIM down 3 bps³ Adjusted Expenses ex. divestitures up 5% Impact of acquisitions in Peru and Dominican Republic Adjusted Operating leverage of -0.8% ex. divestitures Net Income Ex Divested $560 (4%) (1%) Ops.2 Pre-Tax, Pre Provision Profit $1,404 (7%) (10%) ADJUSTED NET INCOME 2,5 ($MM) AND NIM³ (%) Expenses $1,581 +3% (1%) 4.54% 4.62% 4.51% 4.51% 4.51% PCLs $503 +12% +2% 743 723 762 725 615 Productivity Ratio 52.9% +200 bps +250 bps 159 141 156 154 55 PCL Ratio4 1.36% +7 bps +1 bp 584 567 621 571 560 PCL Ratio Impaired Loans4 1.37% +13 bps +10 bps Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 1 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 2 Attributable to equity holders of the Bank 3 Net Interest Margin is on a reported basis 4 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 5 Adjusted for Acquisition and Divestiture-related amounts and impact of additional pessimistic scenario Ex. Divested Ops Divested Ops 33#34The Bank of the Pacific Alliance (PAC) Only universal bank with full presence in all Pacific Alliance countries Well-established bank with 30+ years of experience in the region Competitive scale in each market 8 million 1 Retail and ~30,000 Corporate & Commercial customers >100 multi-national corporate customers within the Pacific Alliance 110 million customers in PAC including affiliates 34 =4#35PAC Fundamentals Driving Growth Strong Governance Democratic countries with open economies Independent central banks with inflation targets Free trade agreements and free-floating currencies • Business-friendly environments Sound Macro Environment • Diversified economies with strong GDP growth Resilience to economic and political cycles Investment Grade- rated Low Debt/GDP ratios with lower fiscal deficits compared to G7 • Increasing adoption of banking services Favourable Demographics • 225 million people with median age of 30 years Strong domestic consumption • Much lower banking penetration compared to Canada Among the fastest growing smartphone markets in the world • Considerable growth in middle class 35#36Resilience of the Pacific Alliance Average Annual +2.9% +3.0% +3.1% +2.7% GDP Growth +1.8% +2.3% +1.6% Notable Events H H (by country) Election Low Oil Prices Election & Odebrecht Election & Trade Dispute No events Social Unrest Approximate GDP -2.2%1 -2.6%² -1.5%3 -1.5%4 Impact on country -1.8%5 +13% CAGR International $2.8 $3.2 Banking Earnings (C$B) $1.7 $1.9 $2.1 $2.4 2014 2015 2016 2017 2018 2019F 2020F NOTE: Pacific Alliance GDP growth calculated based on mean average of the four PAC countries 12013 GDP growth rate vs. 2014-2017 average; 2 2014 vs. 2015-2017 average; 3 2016 vs. 2017; 4 2016 vs. 2017-2019 average; 5 Estimated impact in 2020F due to social unrest; Source: Past GDP data from IMF; forecast from Scotiabank Economics 36#37Scotiabank in Mexico Including all Business Segments Footprint Customers Employees Branches1 23.0% ~3.5 million ~12,900 ~592 Balance and Market Position Loan Market Average Average Loans Share4 Deposits 7.7% $33 $26 billion billion Market Position by Loans4 14.1% 13.2% 12.1% 7.7% 7.4% 4.6% 3.4% 2.0% citibanamex 8 banregio Financial Total NIAT2,5 ROE³ Performance Productivity³ BBVA B BANORTE $574 18.8% 54.1% million NIAT5 BBVA Banorte Santander Banamex Scotiabank HSBC Inbursa Bajio Regio Productivity Ratio Operating Leverage +20% CAGR 63.0 % 666 579 465 337 2016 All figures in CAD$ Constant currency 2017 2018 1 Includes bank and wealth branches; does not include 177 Credito Familiar branches 2 Adjusted; for the LTM ended January 31, 2020 not adjusted for currency 3 Adjusted; for the LTM ended January 31, 2020 4 Source: CNBV as of December 2019 5 After NCI on an adjusted basis 2019 58.6% 55.4% 55.0% 1.5% 7.5% 6.9% -0.9% 2016 2017 2018 2019 2016 2017 2018 2019 37 37#38Scotiabank in Peru Including all Business Segments Footprint Customers¹ Employees¹ Branches1 31.5% 4.0 million 12,000 314 Balance and Market Position Loan Market Share4 Average Average Loans Deposits 18.1% $22 $19 billion billion Market Position by Loans4 19.5% 18.1% 12.0% Financial Total NIAT 2,5 ROE3 Productivity³ BCP Performance BCP BBVA BBVA Scotia Interbank $795 24.5% 36.0% million NIAT5 Productivity Ratio Operating Leverage +12% CAGR 40.0% 810 7.9% 39.3% 688 604 572 6.8% 5.0% 37.5% 2016 2017 2018 2019 All figures in CAD$ Constant currency 1 Including subsidiaries 2 Adjusted; for the LTM ended January 31, 2020 not adjusted for currency 3 Adjusted; for the LTM ended January 31, 2020 4 Market share as of December 2019. Scotiabank includes SBP, CSF and Caja CAT 5 After NCI on an adjusted basis 35.2% 1.8% 2016 2017 2018 2019 2016 2017 2018 2019 38#39Scotiabank in Chile Including all Business Segments Market Position by Loans4 Footprint Customers¹ Employees Branches1 18.3 17.1 >3 million ~9,000 162 14.4 14.1 13.7 Balance and Market Position Loan Market Average Loans Average Share4 Deposits 14.4% $44 $23 billion billion 10 10 Financial Total NIAT 2,5 ROE 3 Productivity³ Performance TR & Itaú $507 8.6% 43.2% Santander Chile Scotiabank Estado BCI Itaú million NIAT5 Productivity Ratio Operating Leverage 381 339 +28% 53.6% CAGR 718 515 2016 All figures in CAD$ Constant currency 2017 2018 2019 1 Includes affiliates & consumer microfinance 2 Adjusted; for the LTM ended January 31, 2020 not adjusted for currency 3 Adjusted; for the LTM ended January 31, 2020 4 Market share as of December 2019. Local view, exclude offshore loans. Source: CMF 5 NIAT Before NCI 49.5% 44.7% 43.4% -2.3% 13.3% 8.5% 4.3% 2016 2017 2018 2019 2016 2017 2018 2019 39#40Scotiabank in Colombia Including all Business Segments Footprint Customers Employees Branches1 26.0% 3.1 million ~9,000 188 Balance and Market Position Loan Market Average Loans Average Share4 Deposits 5.9% $12 $10 billion billion Market Position by Loans4 16.0% 12.2% 10.4% 5.9% 5.9% 4.3% Financial Total NIAT 2,6 ROE 3 Performance Productivity³ > BBVA $121 Bancolombia Davivienda Bogotá 5 BBVA 8.1% 56.7% Occidente Scotiabank Corpbanca Colpatria million 73 38 2016 All figures in CAD$ Constant currency 1 As of November 2019 2017 NIAT6 Productivity Ratio +53% CAGR 54.5% 139 52.6% 53.4% 50.3% 85 2018 2019 2 Adjusted; for the LTM ended January 31, 2020 not adjusted for currency Operating Leverage 1.6% -1.8% -2.4% -6.4% 2016 2017 2018 2019 2016 2017 2018 2019 3 Adjusted; for the LTM ended January 31, 2020 4 Market share as of November 2019 5 Members of AVAL Group: Banco de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas. AVAL is 2nd in market share in terms of Loans (25%) and 1st in Deposits (27%) 6 After NCI on an adjusted basis 40 40#41Other Regions Leading Caribbean & Central American franchise Caribbean & Central America Asia . • Leading bank serving retail, commercial, and corporate customers Major markets include the Dominican Republic, Jamaica, Trinidad & Tobago, Costa Rica, Panama and The Bahamas Sharpened geographic footprint by exiting higher risk, low growth jurisdictions including Haiti, El Salvador, Puerto Rico, US Virgin Islands and 7 of the Leeward Islands Dominican Republic: #4 bank • Acquired Banco Dominicano del Progreso in 2019 Thailand: 6% interest in TMB Bank • Reduced investment in Thailand in Q1/20 resulting ~6% minority interest in TMB Bank China: ~18% interest in Bank of Xi'an • CAD $855MM carrying value as of January 31, 2020 CAD $496MM of net income for twelve months ended October 31, 2019 41#42Business Line Overview Global Wealth Management 42 42#43Global Wealth Management Profitable, High Growth, Strong Momentum • Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank's footprint Customers¹ 2.5 million Employees¹ 7,200 Countries¹ 14 MEDIUM-TERM FINANCIAL OBJECTIVES Target³ Assets Under Administration¹ $497 billion Assets Under Management¹ Earnings Growth 8%+ $298 billion Productivity Ratio <65% Return on Equity 1,2 Productivity Ratio 1,2 Operating Leverage 1,2 Operating Leverage Positive 13.7% 62.4% Positive Competitive Advantages Asset Management: Proprietary and 3rd Party Fund Distribution Advisory: Fully-integrated advice model, including Private Banking 1Figures as of January 31, 2020 or for the 3 months ended January 31, 2020 2Adjusted for Acquisition-related costs and impact of additional pessimistic scenario 33-5 year target from 2020 Investor Day 43#44Global Wealth Management Financial Performance $MM, except AUM/AUA Q1/20 Y/Y Q/Q Reported . Net Income¹ $306 +12% +2% . Pre-Tax, Pre Provision Profit $420 +12% +4% Revenue $1,157 +5% +1% Expenses $737 +2% (1%) PCLS $1 (50%) N/A Productivity Ratio 63.7% (210 bps) (110 bps) • Adjusted Expenses up 2%² AUM ($B) $298 +6% (1%) YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 11%² Revenue up 5% o Up 7% excluding impact of divestitures o Strong AUA/AUM growth o Solid brokerage revenue growth 。 Volume related expense growth AUA($B) $497 +7% Adjusted² Net Income¹ $318 +11% +1% Pre-Tax, Pre Provision Profit $435 +11% +3% Expenses $722 +2% PCLs N/A N/A Productivity Ratio 62.4% (180 bps) (70 bps) • Positive adjusted operating leverage of 3%² • Improved industry leading productivity ratio² Strong AUM growth of 6% and AUA growth of 7% 。 Market appreciation o Positive net sales in Mutual Funds ADJUSTED NET INCOME ¹² ($MM) AND ROE² (%) 12.3% 13.5% 13.5% 13.6% 13.7% 286 303 313 314 318 1 Attributable to equity holders of the Bank 2 Adjusted for Acquisition-related costs and impact of additional pessimistic scenario Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 44#45Global Wealth Management: Profitable, High Growth, Strong Momentum Canada Advisory International Asset Management Private Investment Counsel Private Banking Trust Full Service Brokerage Discount Brokerage Retail Mutual Funds Institutional Funds Mexico AUM Chile AUM Peru AUM Sources: IFIC, Strategic Insight Reports 1st 2nd 3rd 4th 5th 6th О BBVA 000 000О a ОС Blackrock 00 00 О B Actinver Banco de Chile Credifondo Continental Bci BancoEstado BANCO SECURITY Interfondos Fondos Sura 45#46Business Line Global Banking Overview and Markets 46#47Global Banking and Markets Second-largest Canadian wholesale banking and capital markets business Full-service wholesale bank the Americas, with operations in 21 countries, serving clients across Canada, the United States, Latin America, Europe and Asia-Pacific MEDIUM-TERM FINANCIAL OBJECTIVES Canada Asia 6% Global Equities Business Target² Banking 44% Europe 52% 10% 16% GEOGRAPHIC REVENUE1 REVENUE BY BUSINESS LINE1 NIAT Growth ~5% $1.3B $1.3B 40% US 32% FICC Productivity Ratio ~50% Operating Leverage Positive STRATEGIC OUTLOOK Client Focus: Increase our relevance to our corporate clients and drive alignment of resources with the most significant revenue opportunities, to capture more of the non-lending wallet Strengthen our capital markets offering: Enhance distribution and product capabilities and deepen institutional relationships Build on our presence in the Americas: Enhance our franchise in Canada, continue to pursue targeted, phased growth in the U.S., create a top-tier local and cross-border Pacific Alliance business, and leverage Europe and Asia for distribution of our Americas product in support of our corporate clients 1 For the 3 months ended January 31, 2020; 23-5 year target from 2020 Investor Day 47#48Global Banking and Markets Financial Performance $MM Q1/20 Y/Y Q/Q Reported Net Income¹ $372 +11% (8%) Pre-Tax, Pre Provision Profit $513 +19% (5%) Revenue $1,167 +9% Expenses $654 +1% +4% PCLS $24 N/A Productivity Ratio 56.0% (400 bps) PCL Ratio² 0.09% +16 bps +7 bps PCL Ratio Impaired Loans² 0.14% +15 bps +9 bps Adjusted³ Net Income¹ $451 +35% +11% Pre-Tax, Pre Provision Profit $615 +43% +14% +500% +200 bps YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 35% Y/Y³ 。 Strong growth in trading-related revenue Adjusted Revenue up 18%³ o Adjusted Non-interest income up 34%³ Loans grew 6% Deposits up a strong 21% Expenses up 1% O Higher performance-related compensation Improved adjusted productivity ratio by 850 bps³ Positive adjusted operating leverage of 17%³ Adjusted PCL ratio²,3 of 7 bps Revenue $1,269 +18% +8% PCLs $18 N/A Productivity Ratio 51.5% (850 bps) +350% (250 bps) 1,3 ADJUSTED NET INCOME ¹³ ($MM) AND ROE³ (%) PCL Ratio² 0.07% +14 bps +5 bps 15.2% 12.8% 13.8% 14.0% 11.5% 1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 3 Adjusting for the derivative valuation adjustment and impact of additional pessimistic scenario 451 420 335 374 405 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 48#49Scotiabank in the U.S. ⚫ Wholesale bank in the US: Corporate & Investment Banking, Capital Markets, Cash Management and Trade Finance • Top 15 foreign bank organization (FBO) in the US Clients¹ >4,000 Employees¹ ~700 Offices¹ 5 $1,896 million Revenue¹ Average Loans¹ Average Deposits¹ $43 billion $57 billion ROE1 18.7% Productivity1 46.2% Total NIAT¹ $777 million • Client focus is on S&P 500, investment grade corporates Current sectors of strength include: Power & Utilities and Energy. Focus areas for growth include Real ● Estate, Technology, and Healthcare 1 As presented in the 2020 Investor Day; figures for fiscal 2019 49#50Risk Overview 50 50#51Risk Snapshot RWA Breakdown¹ ■ Credit Risk Credit Exposure by Country 2,3 64% ■ Canada ■Chile ■ U.S. Credit Exposure by Sector 1,2 Real Estate and Construction 5.7% 2% Financial Services Wholesale and Retail 5.5% 4.4% C&CA 4% 11% $421B 87% ■Operational Risk $611B1 Other 3.0% 5% Other International 5% Energy 2.7% Mexico ■Market Risk 5% Technology and Media 2.5% 7% 8% Peru Automotive 2.2% Colombia Agriculture 2.2% Canadian Banking 1,2 Personal & Commercial Lending International Banking1,2 Utilities 2.1% Transportation 1.5% Food and Beverage 1.4% Mining 1.1% Health Care 1.0% 66% ■ Secured ■ Secured Sovereign 0.9% 7% $312B 93% ■ Unsecured 34% $70B Hospitality and Leisure 0.7% ■ Unsecured Forest Products 0.5% Metals 0.5% Chemicals 0.4% 1 As at January 31, 2020 2% of total loans and acceptances 3 As at October 31, 2019 51#52Risk Density 40% Risk density has declined over the past 5 years Major acquisitions have been successfully integrated with no adverse impact on risk density Credit RWA Density (Credit Risk-Weighted Assets/Credit Exposure at Default) 38% 35.56% 35.82% 36% 35.13% 34% 32% 30% 33.65% 34.78% 33.31% Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 52 62#530.00% 0.50% 2001 1.00% 2002 1.50% 0.00% 0.50% 2001 1.00% 1.50% 2.00% 2002: Included $454 million related to the Bank's exposure to Argentina Historical PCL Ratios on Impaired Loans Credit fundamentals remain strong; PCLs on impaired loans in line with long-term average ALL BANK: HISTORICAL PCL RATIO ON IMPAIRED LOANS¹ 2009: Higher PCLs driven. by economic conditions, event distributed across business lines. Higher general allowance and sectoral allowance (automotive related) 2.00% PCL Ratio on Impaired Loans Historical Average - PCL Ratio on Impaired Loans (45 bps) CANADIAN BANKING: HISTORICAL PCL RATIO ON IMPAIRED LOANS¹ PCL Ratio on Impaired Loans 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Historical Average - PCL Ratio on Impaired Loans (26 bps) 2015 2016 2017 2010 2018 2019 53 Q120 Average: 26 bps Q120 Average: 45 bps#54Canadian Retail: Loans and Provisions' PERSONAL LOANS² MORTGAGES 91 95 85 84 80 88 81 90 78 69 2 21 11 11 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 LINES OF CREDIT³ Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 CREDIT CARDS 86 96 458 402 81 80 381 385 72 349 415 75 70 73 70 73 379 377 339 241 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 PCL as a % of avg. net loans (bps) Loan Balances Q1/20 Mortgages Spot ($B) $230 % Secured 100% Includes Wealth Management. PCL excludes impact of additional pessimistic scenario 295% are automotive loans 3 Includes Home Equity Lines of Credit and Unsecured Lines of Credit 4 Includes Tangerine balances of $6 billion 5 80% secured by real estate; 13% secured by automotive Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 PCLs on Impaired Loans as a % of avg. net loans (bps) Personal Loans² Lines of Credit³ Credit Cards Total $41 $34 $8 $3124 99% 61% 3% 93%5 54#55International Retail: Loans and Provisions MEXICO PERU 246 251 517 545 233 231 208 473 471 402 163 228 218 491 470 199 203 424 364 372 Q1/19 Q2/19 Q3/19 Q4/19 Q1/202 CARIBBEAN & CENTRAL AMERICA CHILE Q1/19 Q2/19¹ Q3/19 Q4/19 Q1/20 COLOMBIA 191 554 549 531 170 187 178 160 471 439 155 159 155 157 141 156 165 170 175 485 148 150 154 455 420 406 138 138 120 377 Q1/19 Q2/19 Q3/19 Q4/19 Q1/202 Q1/19 Q2/19 Q3/19 Q4/19 Q1/202 PCL as a % of avg. net loans (bps) Q1/19 Q2/19 Q3/19 Q4/19 Q1/202 PCLs on Impaired Loans as a % of avg. net loans (bps) Loan Balances Q1/20 Spot ($B) Mexico $14 Peru Chile Colombia C&CA Total³ $10 $24 $7 $14 $70 1 Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans 2 PCL excludes impact of additional pessimistic scenario 3 Total includes other smaller portfolios 55#56Energy Exposure¹ High quality energy portfolio, reduced exposure to 2.7% of total loans from 3.6% in Q1/16 Total Exploration and Production Canadian E&P U.S. E&P Midstream Services Downstream Total Energy Exposure² Loans and Acceptances Outstanding ($B) % of Total % of Total Loans and % Investment Energy Exposure Acceptances Grade Outstanding 6.9 41% 1.1% 53% 3.4 20% 0.6% 74% 0.9 6% 0.2% 34%4 5.8 34% 0.9% 58% 1.5 9% 0.2% 17% 2.6 16% 0.4% 72% 16.8 100% 2.7% 54% Canada (57%) 6.9 C&CA (34%) Energy portfolio represents 2.7% of loans and acceptances outstanding, down from 3.6% in Q1 2016. Europe • 54% is rated Investment Grade (IG) Energy Exposure by Geography2 (44%) 0.7 Watchlist³ reduced to 3.9% of total Energy outstandings from a high of 13.6% as of Q4/16 $16.8B 1.0 3.3 Asia (95%) (%IG) Latin America (44%) 1 As of January 31, 2020 2 May not add due to rounding 3 Includes Impaired accounts 4 Reduction in IG from previous quarter a function of a material repayment on an IG account 3.2 1.3 U.S. (50%) Mexico (59%) 56#57Treasury and Funding 57 57#58Funding Strategy Flexible, well-balanced and diversified funding sources Funding Strategy Build customer deposits in all of our key markets • Continue to reduce wholesale funding (WSF) while focusing on TLAC eligible debt Achieve appropriate balance between efficiency and stability of funding including maintaining pricing relative to peers ⚫ Diversify funding by type, currency, program, tenor and markets Centralized funding strategy and associated risk management 1 In addition to the programs listed, there are also CD programs in the following currencies: Yankee/USD, EUR, GBP, AUD, HKD Funding Programs¹ US Debt & Equity Shelf (senior/subordinated debt, preferred and common shares) Limit USD 40 billion Global Registered Covered Bond Program (uninsured Canadian mortgages) Limit CAD 38 billion EMTN Shelf Limit USD 20 billion CAD Debt & Equity Shelf (senior/subordinated debt, preferred and common shares) Limit CAD 15 billion START ABS program (indirect auto loans) Limit CAD 15 billion Australian MTN program Limit AUD 8 billion Singapore MTN program Limit - USD 7.5 billion Halifax ABS shelf (unsecured lines of credit) Limit - CAD 7 billion Principal at Risk (PAR) Note shelf Limit CAD 6 billion Trillium ABS shelf (credit cards) Limit - CAD 5 billion USD Bank CP Program Limit USD 35 billion 58#59Wholesale Funding Wholesale funding diversity by instrument and maturity1,6,7 24% Senior Notes 7% Bail-inable Notes MATURITY TABLE (EX-SUB DEBT) (CANADIAN DOLLAR EQUIVALENT, $B) Asset-Backed Commercial Paper³ 2% 42% Bearer Deposit Notes, Commercial Paper & Short-Term Certificate of Deposits 2% $26 $25 Asset-Backed Securities 4 $4 10% $271B Covered Bonds 1% 9% Mortgage Securitization4 3% Subordinated Debt5 Deposits from Banks² $21 $4 $21 $3 $11 $3 $1 $14 $1 $6 $9 $18 $17 $1 $18 $13 13 $9 $8 < 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years > Senior Debt ABS Covered Bonds 1 Excludes repo transactions and bankers acceptances, which are disclosed in the contractual maturities table in the MD&A of the Interim Consolidated Financial Statements. Amounts are based on remaining term to maturity. 2 Only includes commercial bank deposits raised by Group Treasury. 3 Excludes asset-backed commercial paper (ABCP) issued by certain ABCP conduits that are not consolidated for financial reporting purposes. 4 Represents residential mortgages funded through Canadian Federal Government agency sponsored programs. Funding accessed through such programs does not impact the funding capacity of the Bank in its own name. 5 Although subordinated debentures are a component of regulatory capital, they are included in this table in accordance with EDTF recommended disclosures. 6 As per Wholesale Funding Sources Table in MD&A, as of Q1/20. 7 May not add to 100% due to rounding. 59 59#60Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Deposit Overview Stable trend in personal & business and government deposits PERSONAL DEPOSITS (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) $199 $201 $198 $202 $204 $200 $222 $223 $224 • $225 $225 $211 $215 3Y CAGR 4.0% • PERSONAL DEPOSITS Important for both relationship purposes and regulatory value Good momentum with 4.0% CAGR over the last 3 years BUSINESS & GOVERNMENT DEPOSITS1 (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 $227 $221 $197 $172 $179 $223 $170 $211 $156 $197 $169 $174 $168 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 1 Calculated as Bus& Gov't deposits less wholesale funding as per Wholesale Funding Sources table in the MD&A, adjusted for Sub Debt 3Y CAGR 13.3% • BUSINESS & GOVERNMENT Gaining share of deposits through leveraging of relationships 13.3% CAGR over the last 3 years Focusing on operational, regulatory friendly deposits 60 60#61Q1/17 Q2/17 Q3/17 Wholesale Funding Utilization Managing reliance on wholesale funding and growing deposits WHOLESALE FUNDING / TOTAL ASSETS 24.5% 24.6% 23.9% 23.5% • REDUCED RELIANCE ON WHOLESALE FUNDING Operating in line with peers o Reduced reliance on wholesale funding 。 Sustained focus on deposits as an alternate to wholesale funding Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 MONEY MARKET WHOLESALE FUNDING / TOTAL WHOLESALE FUNDING 39.9% 38.7% Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 38.4% Q4/19 Q1/20 Q1/20 44.7% FOCUS ON TERM FUNDING Prudently using money market funding to absorb short term funding requirements o Primarily driven by increases in certificate of deposits, commercial paper and bearer notes 61#62Liquidity Metrics Well funded Bank with strong liquidity • Liquidity Coverage Ratio (LCR) 。 Stable and sound management of liquidity 。 Net Stable Funding Ratio (NSFR) disclosure to commence Q1/20 128% 128% 127% 127% 125% 125% 125% 125% 124% 123% Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 • High Quality Liquid Assets (HQLA) 。 Efficiently managing LCR and optimizing HQLA $165 $168 $158 $158 $160 $144 $140 $138 $132 $127 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 62 62#63Appendix 1 Core Markets: Economic Profiles#64% OF GDP Canadian Economy Diverse sources of growth with a strong balance sheet 19.5% Finance, Insurance, & Real Estate 15.8% Other 4.5% Transportation & Warehousing 6.1% Professional, Scientific, & Technical Services 6.8% CANADIAN GDP BY INDUSTRY (Nov 2019) Public Administration 12.5% REAL GDP GROWTH Health & Education 7.2% 10.3% Wholesale & Retail Trade -10.0% Manufacturing 7.3% Mining and Oil & Gas Extraction Construction ANNUAL % CHANGE 3 N U.S. Canada 2010-2018 Eurozone 2019e-2021f U.K. Japan Sources: Scotiabank Economics, Haver Analytics, Statistics Canada. Forecasts as of January 13, 2020. GENERAL GOVERNMENT NET FINANCIAL LIABILITIES 122.5 125.7 88.0 78.2 80.9 66.6 29.0 22.8 % OF GDP GOVERNMENT FINANCIAL DEFICITS 2 1 1.0 0 1 2 3 456 (0.7) (1.6) (1.5) (2.2) (2.4) (2.5) -6 Canada Germany OECD France U.K. U.S. Italy Japan Sources: Scotiabank Economics, OECD (2020 estimates). As of February 2020. (5.5) Germany Canada OECD* UK Japan France Italy US * Arithmetic mean of all OECD financial deficits as a % of GDP. Sources: Scotiabank Economics, IMF (2020 estimates). As of February 2020. 64#65Mexican Economy Diverse economy with a strong balance sheet • The Mexican economy reflects a solid mix of commodities, goods production, and services Trade remains dominated by the U.S., but Mexico's diversification agenda is underpinned by 13 free-trade agreements with 47 countries that account for 40% of global GDP and include all G7 countries 15.8% Finance, Insurance, & Real Estate 16.4% Other 3.3% Natural Resources 6.6% Transportation & Warehousing 5.8% Health & Education MEXICAN GDP BY INDUSTRY (Q3 2019) 17.5% Wholesale & Retail Trade 16.1% Manufacturing 6.2% Mining and Oil & Gas Extraction 6.5% 5 y/y % change 4 3 2 -1 -2 -3 -4 10T2 3 4 5 -5 16 Contributions to Mexican GDP Growth 17 Net Exports Investment Consumption Other* Inventories Government Real GDP 18 19 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. 2.0% Professional, Scientific, & Technical Services 3.8% Public Administration Top 5 Trading Partners Others 20% Germany 3% Japan 3% United States Canada 4% 59% China 11% Construction 65 59#66Peruvian Economy Resilient economic fundamentals Peru's important resource sectors are increasingly balanced by stronger service-sector activity and solid economic fundamentals Peru has 16 free-trade agreements with 49 countries that account for 66% of global GDP Investment is making a consistently strong contribution to GDP, which should make solid growth rates more sustainable in the future 12.3% Manufacturing 10.2% Finance, Insurance, & Real Estate 31.9% PERUVIAN GDP BY INDUSTRY (Q2 2019) 20.8% Transportation, Information & Commerce 5.5% Construction 8 y/y % change 6 4 2 0 -2 -4 -6 16 Contributions to Peruvian GDP Growth 17 Net Exports Investment Consumption 18 Sources: Scotiabank Economics, Haver Analytics. Other 5.1% Natural Resources 14.1% Mining & Energy Top 5 Trading Partners Others 43% China 27% Inventories Government Real GDP 19 South Korea 4% Spain Brazil 4% 5% United States 18% 66 99#67Chilean Economy Advanced economy with wide-ranging trade links • Chile's mix of economic activities reflects its status as an advanced market economy Chile's diversified trading relationships are supported by 23 free-trade agreements with 60 countries that account for 73% of global GDP Investment has been a strong contributor to growth in Chile, which should underpin future productivity gains as the economy rebounds from recent social difficulties Contributions to Chilean GDP Growth 15.3% Finance, Insurance, & Real Estate 8.6% Other 2.0% Restaurants & Hotels 8.6% Transportation & Warehousing 3.4% Natural Resources CHILEAN GDP BY INDUSTRY (Sep 2019) 19.4% Housing & Personal Services 9.3% Wholesale & Retail Trade Top 5 Trading Partners 10.2% Manufacturing 12.4% Mining and Oil & Gas Extraction 6.3% Construction 4.5% Public Administration 8 y/y % change 6 4 2 0 -2 -4 -6 anilaílin Net Exports Inventories Government Others 38% China 29% Investment Consumption Real GDP South Korea United States 18 19 4% Japan Brazil 16% 17 16 Sources: Scotiabank Economics, Haver Analytics. 6% 7% 67 20#68Colombian Economy Gaining momentum Services account for a rising share of Colombian GDP compared with traditional strengths in extractive industries Colombia continues to build on its 11 free-trade agreements with 46 countries that account for 41% of global GDP Rising consumption, supported by public spending, reflects an expanding middle class as growth gains momentum and converges toward the economy's underlying potential 13.6% Finance, Insurance, & Real Estate 9.1% Other 6.2% Natural Resources 2.8% Information & Communication 2.4% Arts & Entertainment COLOMBIAN GDP BY INDUSTRY (Q3 2019) 6.9% Professional, Scientific, & Technical Services 17.6% Wholesale, Retail Trade, Accommodation & Food Services 14.8% 11.9% Manufacturing 8.1% Mining and Oil & Gas Extraction 6.6% Construction Public Administration Top 5 Trading Partners 8 y/y % change 6 4 2 0 -2 -4 -6 16 Contributions to Colombian GDP Growth Other* Investment Net Exports Government Consumption Real GDP 17 18 19 199 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. United States Others 42% 28% Ecuador 3% Brazil Mexico 5% 6% China 17% 68 80#69Appendix 2 Canadian Housing Market#70Canada: Stable Economic Fundamentals Low unemployment rate reflects solid growth in Canadian economy UNEMPLOYMENT RATE 14 120 80 6 № 6 + 20 Canada - official U.S. Canada comparable to U.S. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through January 2020. • Solid economic growth and a gradual rebound in non-energy exports ⚫Household spending remains buoyant, underpinned by relatively low and stable unemployment, as well as low borrowing costs Population and labour-force growth supported by increasing immigration Moderate inflation within Bank of Canada target band HEADLINE INFLATION LABOUR FORCE PARTICIPATION RATE 70 Bank of Canada Target Inflation Band سلام 64 62 60 222% 68 66 Canada Май M U.S. -2 00 02 04 06 08 10 12 14 16 18 20 20 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through Jan. 2020 (Canada and US). Canada U.S. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through January 2020. 70#71Population Growth: A Canadian Differentiator Sources: IMF, Scotiabank Economics G7 Population Growth 1.6 Canada 1.4 United Kingdom Japan United States Euro Area 1.2 1.0 0.8 0.6 0.4 0.2 0.0 -0.2 annual % change -0.4 08 09 10 11 12 13 14 15 16 17 18 71#72Housing Undersupplied, Prospects Solid Housing Supply Situation 240 completed & unabsorbed units per population aged 15 and over, index, 2010 = 100 200 160 120 60 80 40 Undersupplied Oversupplied 0 10 11 12 13 14 15 16 17 18 19 Vancouver Toronto Calgary Montreal Sources: Statistics Canada, Scotiabank Economics 72 22#73Canadian Housing Market Engineered moderation of price and volume Significant Moderation in Price Growth* 25 20 Aggregate Composite MLS Home Price Index Y/Y Percentage Change 15 10 50 -5 Volume of Home Sales Near 10-Year Average* 50 Units, 000s 45 Monthly home sales 40 35 30 25 -10 20 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Sources: Scotiabank Economics, CREA. *Actual - not seasonally adjusted Canada's Five Largest Metropolitan Areas* 11 MLS Home Price Index Benchmark Price Y/Y Percentage Change 9 9.78 7 8.72 5 Average 2.97 3 1 -1.20 -1 -3 GTA GVA 10-year monthly moving avg. 07 08 09 10 11 12 13 14 Sources: Scotiabank Economics, CREA. *Seasonally adjusted 15 16 17 18 19 20 Decline in Share of High-Risk Mortgages 25 20 15 10 5 -0.89 -1.54 0 Montreal Calgary Edmonton Sources: Scotiabank Economics, CREA. *Actual - not seasonally adjusted % Share of new mortgages with a loan-to-income ratio greater than 450% Mortgage insurance rules tightened B-20 guideline revised Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Low-ratio mortgages — Jun-18 Dec-18 Total mortgages High-ratio mortgages Sources: Scotiabank Economics, Bank of Canada Financial System Review 2019. 73#74Canadian Consumer Indebtedness Total household credit grew at 4.2% in annual nominal terms in January 2020 vs the 2008 peak of 12.2% annually • Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.) grew at 2.4% annually in Q4/19 vs > 5% in late 2017 Mortgage credit grew at 4.8% annually in Q4/19 vs 2008 peak of 13%. Lower five-year rates are driving a rebound in the pace of growth. HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 25 %, 3-month moving average 20 15 y/y % 10 5 0 change m/m% change, SA 25 %, 3-month moving average 20 20 25 %, 3-month moving average 20 y/y % 15 change 15 y/y% change 10 10 10 m/m% 5 change, SA 0 m/m% 5 change, SA 0 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. -5 -5 -5 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. 74#75Canadian Consumer Indebtedness Consumer balance sheets have improved faster than the growth rate in debt to disposable income Household Net Worth vs Debt Default Rates Remain Low 1.4 1000 % 1.3 900 % of 4Q-moving-sum disposable Income 1.2 800 0.5 % Percent of mortgage arrears, RHS 0.4 1.1 700 1.0 600 500 Household net worth as 0.9 0.3 % of disposable income 400 0.8 300 Household debt to disposable income 0.7 Credit card delinquency rate 0.2 200 0.6 (90+ days), LHS 100 0.5 0 0.4 90 90 94 98 02 22 06 10 14 18 04 14 0.1 06 08 10 12 14 16 18 Sources: Statistics Canada, CBA, Scotiabank Economics.. 15 75#76Housing Market Differences vs U.S. Canada's housing market features distinct practices and policies Regulation and Taxation Product Underwriting Canada Mortgage interest not tax deductible Full recourse against borrowers in most provinces Foreclosure on non-performing mortgages, no stay periods Insurance • Mandatory default insurance mortgages with LTV > 80% 。 CMHC backed by Government of Canada (AAA). Private insurers are 90% government backed ○ Insurance available for homes up to CAD 1 mn o Premium is payable upfront Covers full amount for life of mortgage Homebuyers must qualify for mortgage insurance at interest rate equal to greater of five-year average posted mortgage rate or actual mortgage rate plus 200bp Re-financing cap of 80% LTV on non-insured mortgages Amortization Maximum 25-year amortization on mortgages with LTV > 80% Maximum 30-year amortization on conventional mortgages Down payment of > 20% required for non-owner occupied properties Conservative product offerings, fixed or variable rate options Much less reliance upon securitization and wholesale funding Asset-backed securities not subjected to US-style off-balance sheet leverage via special purpose vehicles • Terms usually three or five years, renewable at maturity Extensive documentation and strong standards U.S. • Tax-deductible mortgage interest creates incentive to borrow and delay repayment Lenders have limited recourse in most states • 90-day to 1-year stay period to foreclose on non-performing mortgages • No regulatory LTV limit Private insurers are not government backed Can include exotic products (e.g. adjustable rate mortgages, interest only) 30-year term most common Wide range of documentation and underwriting requirements 76#77Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2016 2017 2018 2019 Canada: Qualifying stress rate for all new mortgage insurance must be the greater of the contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate • Low-ratio mortgage insurance eligibility requirements updated for lenders wishing to use portfolio insurance: • . • 。 Maximum amortization 25 years o CAD 1mn max. purchase price Minimum credit score of 600 o Owner-occupied property Elimination of primary residence tax exemption for foreign buyers Min. down payment on insured increased from 5% to 10% (for homes CAD 0.5-1.0 mn) British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced Ontario: 16 measures aimed to slow rate of house price appreciation Key aspects include: o 15% non-resident speculation tax o Expanded rent control to all private rental units in Ontario 。 Vacant home tax CAD 125 mn five-year program to encourage construction of new rental apartment buildings Canada: OSFI imposes more stringent stress tests for uninsured mortgages, including a minimum qualifying rate at the greater of the five-year fixed posted rate or the contractual rate plus 200 bps, effective January 1, 2018 • Ontario: Elimination of rent control on new rental units first occupied on or before November 1, 2018 . British Columbia: Extension of the Property Transfer Tax on non-resident buyers. Investment of more than CAD 1.6 bn through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years • British Columbia: Increase in speculation tax on foreign and domestic home owners who do not pay income tax in BC from 0.5% of a property's assessed value to 2%; additional school tax levied on portion of a property's value that exceeds CAD 3 mn Ontario: Measures to increase supply of available housing Key aspects include: Greater authority over land use planning decisions for the province's independent municipal dispute resolution body Reduced red tape on new residential developments Updated zoning regulations to facilitate building of affordable homes near transit 77#78Appendix 3 Additional Information#79Additional Information Scotiabank Listings: Toronto Stock Exchange (TSX: BNS) New York Stock Exchange (NYSE: BNS) Scotiabank Common Share Issue Information: • CUSIP: • ISIN: 064149107 CA0641491075 . FIGI: NAICS: BBGOOOBXSXH3 522110 Scotiabank Credit Ratings Moody's Investors Standard & Poor's Fitch Ratings Services Dominion Bond Rating Service Ltd. Legacy Senior Debt¹ Senior Debt² Subordinated Debt (NVCC) Short Term Deposits/Commercial Paper P-1 Covered Bond Program Aaa Not Rated AAA Outlook Stable Stable Aa2 A+ AA- AA A2 A- AA- AA (low) Baa1 BBB+ A (low) A-1 F1+ R-1 (high) AAA Stable Stable 1Includes: (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the bank recapitalization "bail-in" regime 2 Subject to conversion under the bank recapitalization "bail-in" regime 79#80Contact Information Investor Relations Philip Smith Senior Vice President 416-863-2866 [email protected] Lemar Persaud Director 416-866-6124 [email protected] Tiffany Sun Manager 416-866-2870 [email protected] Steven Hung Vice President 416-933-8774 [email protected] Judy Lai Director 416-775-0485 [email protected] Funding Christy Bunker SVP, CB Treasury, Term Funding and Capital management 416-933-7974 [email protected] Mark Michalski Director, Strategy & Market Development, Funding 416-866-6905 [email protected] 80 60