#1INVESTOR PRESENTATION FOURTH QUARTER 2018 November 27, 2018 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 2018 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 2018 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 2018 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. Scotiabank® | 2#3SCOTIABANK OVERVIEW Brian Porter President & Chief Executive Officer Scotiabank® 3#4FISCAL 2018 OVERVIEW Strong full-year results MEDIUM-TERM FINANCIAL OBJECTIVES Objectives 2018 Results 1 • · EPS Growth 7%+ 9% • ROE 14%+ 14.9% . HIGHLIGHTS Results ahead of medium-term objectives Strong performance across Personal & Commercial businesses Integration of recent acquisitions is proceeding well Solid progress on digital initiatives Exceeded cost control objectives; focused on productivity improvements Operating Leverage Positive 3.7% • Capital position remains strong • Capital Levels Strong Levels 11.1% Annual dividend increased a cumulative $0.06 or 8% during the year 1 Figures adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank® | 4#5INTEGRATION UPDATE Estimated accretion to diluted EPS remain unchanged ⚫ Closed acquisition of MD Financial. Completed merger of BBVA Chile. • BBVA integration proceeding well • Minimal customer attrition at MD Financial and Jarislowsky Fraser Remaining acquisition-related costs to be incurred in 2019 and 2020 Integration costs of $140-$190 million • Amortization of intangibles of $180-$200 million • Neutral impact to Adjusted EPS in fiscal 2019; ~$0.15 accretive in fiscal 2020 MD Canada Acquisition MD Financial Management Сма собран JARISLOWSKY FRASER GLOBAL INVESTMENT MANAGEMENT Impact Increased wealth management assets to $230B. Creates 3rd largest active asset manager in Canada. Closing/Expected Closing Closed ★ Chile BBVA Doubled market share to 14%. Creates 3rd largest private bank. Closed Peru banco cencosud Creates #2 bank in credit cards. Q1/19* Colombia Citibank Market leader in credit cards at 24% market share Closed Dominican Republic Doubles customer base. Creates 4th largest full-service PROGRESO Q1/19* bank. *Subject to regulatory approvals and closing conditions Scotiabank® | 5#6DIGITAL PROGRESS UPDATE Progressing well against 2018 Investor Day digital targets Digital Retail Sales +11% 15 11 Digital Adoption +7% 26 26 22 22 29 333 F2016 F2017 F2018 F2016 F2017 F2018 In-Branch Financial Transactions -6% 26 26 23 20 20 F2016 F2017 F2018 Goal >50% • Solid progress made in all five key markets across various product suites including deposits, personal loans, insurance, etc. Goal >70% Digitally-active users up over 30% in Mexico, Colombia and Peru. High single digit growth in Canada and Chile. Goal <10% Mobile transactions up over 30% in Canadian Banking, while in-branch transactions declined 6% Scotiabank® | 6#7FINANCIAL REVIEW Raj Viswanathan Chief Financial Officer Scotiabank® 7#82018 FISCAL 2018 FINANCIAL PERFORMANCE - FULL YEAR Strong adjusted earnings growth with positive operating leverage and productivity gains $MM, except EPS Reported Y/Y YEAR-OVER-YEAR HIGHLIGHTS Net Income $8,724 +6% . Diluted EPS $6.82 +5% Adjusted Net Income up 10%³ Revenue $28,775 +6% . Expenses $15,058 +3% Productivity Ratio 52.3% (160bps) Core Banking Margin 2.46% PCL Ratio 1,2 48bps +3bps • PCL Ratio on Impaired Loans 1, 2 Adjusted³ 43bps (2bps) • Net Income $9,144 +10% • Diluted EPS $7.11 +9% Expenses $14,871 Productivity Ratio 51.7% PCL Ratio 1, 2 41bps +2% (190bps) (4bps) Revenue up 6% 。 Net interest income up 8% 。 Non-interest income up 4% Expense growth of 2%3 Productivity ratio improved 190 bps³ Full year operating leverage of +3.7%³ • Improved PCL ratio on impaired loans 1,2 ADJUSTED NET INCOME³ BY BUSINESS SEGMENT ($MM) +8% Y/Y +16% Y/Y 4,090 4,416 2,424 2,819 Canadian Banking -3% Y/Y 1,818 1,758 International Banking Global Banking and Markets ■ 2017 ■ 2018 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 Scotiabank® | 8#9Q4 2018 FINANCIAL PERFORMANCE Strong revenue growth and higher NIM $MM, except EPS Q4/18 Y/Y Q/Q Reported Net Income $2,271 +10% +17% Diluted EPS $1.71 +4% +10% · Revenue $7,448 +9% +4% Expenses $4,064 +11% +8% Productivity Ratio 54.6% +80bps +210bps Core Banking Margin 2.47% +3bps +1bp PCL Ratio 1, 2 39bps (3bps) (30bps) · PCL Ratio on Impaired Loans 1, 2 42bps +1bp Adjusted³ • Net Income $2,345 +13% +4% Diluted EPS $1.77 +7% +1% Expenses $3,962 +9% +6% Productivity Ratio 53.2% (40bps) +140bps PCL Ratio 1,2 39bps (3bps) (1bp) DIVIDENDS PER COMMON SHARE 0.03 0.03 0.79 0.79 0.82 0.82 0.85 Q4/17 Q1/18 ■ Announced Dividend Increase Q2/18 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 Q3/18 Q4/18 YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 13%³ Revenue up 9% 。 Net interest income up 10% 。 Non-interest income up 8% 3 Expenses up 9%* Productivity ratio improved 40 bps³ Flat PCL ratio 1.2 on impaired loans 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 Scotiabank® | 9#10CAPITAL POSITION REMAINS STRONG Expect CET 1 ratio to remain above 11% in 2019 +14 bps +33 bps -65 bps 11.4% -10 bps +1 bp 11.1% +10 bps 11.2% Q3/18 Internal Capital RWA Impact Generation (ex. FX) Impact of Acquisitions Share issuance / (buybacks) (net) Other Including FX Q4/18 Impact of Announced Q4/18 Pro- Forma Dispositions . • • • Strong internal capital generation Reduction mainly due to completed acquisitions in Q4/18 Decline in market risk RWA and impact of FX Repurchased 5 million shares in Q4/18, 8.3 million shares in Fiscal 2018 Expect further 10 bps increase from announced dispositions Scotiabank® | 10#11CANADIAN BANKING Solid asset and deposit growth, margin expansion and positive operating leverage4 FINANCIAL PERFORMANCE AND METRICS ($MM)¹ Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS Q4/18 Reported • Revenue $3,443 +5% +2% Expenses $1,747 +7% +5% • PCLS $198 (9%) +9% Net Income $1,115 +4% (1%) Productivity Ratio 50.7% +80bps +150bps Net Interest Margin 2.45% +4bps (1bp) PCL Ratio², 3 0.23% (4bps) +2bps PCL Ratio on Impaired Loans2, 3 0.22% (5bps) +1bp Adjusted4 Expenses $1,705 +5% +4% Net Income $1,146 +7% Productivity Ratio 49.5% (20bps) +70bps · ADJUSTED NET INCOME 14 ($MM) AND NIM (%) 2.41% 2.41% 2.43% 2.46% 2.45% . • Adjusted Net Income up 7%4 。 Asset and deposit growth, margin expansion Revenue up 5% 。 Net interest income up 6% Loan growth of 5% o Business loans up 13% o Residential mortgages up 3%; credit cards up 7% Deposit growth of 6% 。 Personal up 5%; Non-Personal up 7% NIM up 4 bps 。 Rising rate environment and improved business mix Expenses up 5%4 Investments in technology and regulatory initiatives 。 Full-year productivity ratio improvement of 90bps4 Full-year operating leverage of +1.9%4 PCL ratio² 3 improved by 4 bps due to lower retail PCLs 1,073 1,107 1,022 1,141 1,146 Q4/17 Q1/18 1 Attributable to equity holders of the Bank Q2/18 Q3/18 Q4/18 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 4 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank® | 11#12INTERNATIONAL BANKING Strong performance in the Pacific Alliance supported by acquisitions FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2 Reported Q/Q YEAR-OVER-YEAR HIGHLIGHTS² ⚫ Adjusted Net Income up 22% 。 Strong asset and deposit growth in Pacific Alliance o Includes impact of acquisitions and alignment of reporting period Revenues up 22% o Pacific Alliance up 28% Q4/18 Y/Y Revenue $3,134 Expenses $1,721 PCLs $412 Net Income $712 +22% +11% +23% +15% +32% (45%) +18% +36% Productivity Ratio 54.9% +50bps +200bps Net Interest Margin 4.52% (15bps) (18bps) PCL Ratio 1.05% PCL Ratio on Impaired Loans³, 4 Adjusted6 1.20% +6bps (9bps) (153bps) (13bps) Expenses $1,661 +19% +14% • NIM down 15 bps PCLs $412 Net Income $746 Productivity Ratio 53.0% PCL Ratio 3, 4, 6 1.05% +32% +14% +22% +6% (100bps) +130bps (9bps) (18bps) ADJUSTED NET INCOME 16 ($MM) AND NIM5 (%) 4.67% 4.66% 4.74% 4.70% 4.52% 613 675 683 715 746 Loans up 29% o Pacific Alliance loans up 42% . • 。 Mainly driven by the business mix impact of acquisitions Expenses up 19% 6 o Business volume growth, inflation and higher technology costs 。 Full year productivity ratio improvement of 150bps6 Full-year positive operating leverage of 3.1% PCL ratio³, 4, 6 down 9 bps Q4/17 Q1/18 1 Attributable to equity holders of the Bank Q2/18 Q3/18 Q4/18 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 3 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 4 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 5 Net Interest Margin is on a reported basis 6 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 ⑤Scotiabank® | 12#13Q4/18 Y/Y Q/Q Revenue $1,073 (1%) Expenses $553 (3%) PCLs ($20) N/A Net Income $416 +6% GLOBAL BANKING AND MARKETS Solid loan growth, strong credit quality and lower productivity ratio FINANCIAL PERFORMANCE AND METRICS ($MM) YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income up 6% Loans up 7% o U.S. loans up 13% NIM down 16 bps · (3%) +2% N/A (6%) Productivity Ratio 51.5% Net Interest Margin PCL Ratio², 3 PCL Ratio on Impaired Loans², 3 1.72% (0.09%) (13bps) (0.07%) (11bps) (1bp) (80bps) +260bps (16bps) (10bps) (4bps) 。 Mainly driven by lower deposit and lending margins • Expenses down 3% Productivity ratio improved 80 bps PCL ratio², 3 improved by 13 bps o Impaired loan provision reversals in Europe NET INCOME AND ROE 14.9% 16.2% 16.9% 15.6% 15.3% 447 441 454 416 391 Q4/17 Q1/18 1 Attributable to equity holders of the Bank Q2/18 Q3/18 Q4/18 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures ⑤Scotiabank® | 13#14OTHER SEGMENT NET INCOME² ($MM) -48 56 1 -32 -64 -107 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 Represents smaller operating segments including Group Treasury and corporate adjustments 2 Attributable to equity holders of the Bank YEAR-OVER-YEAR HIGHLIGHTS • • Lower net gain on the sale of investment securities, lower net interest income from asset-liability management activities Partly offset by lower expenses Scotiabank® | 14#15RISK REVIEW Daniel Moore Chief Risk Officer Scotiabank® 15#16RISK REVIEW Credit fundamentals remain strong. Stable PCL ratio IAS 39 IFRS 9 PCLS ($MM) AND PCL RATIO ON IMPAIRED LOANS 46 bps 43 bps 42 bps 1, 2, 3 42 bps 41 bps 637 595 564 559 536 Q3/18 PCL ratio on impaired loans Q4/17 Q1/18 Q2/18 PCLs on impaired loans GILS 4,5,6 ($B) YEAR-OVER-YEAR HIGHLIGHTS . • PCLs1,2 on impaired loans of $637 million were up 14% Q/Q and 19% Y/Y o Higher retail provisions in International Banking were driven mainly by acquisitions PCL ratio1,2 on impaired loans was up 1 bp Q/Q and flat Y/Y The PCL ratio 1, 2 was 39 bps, down 1 bp Q/Q3 and down 3 bps Y/Y • Q4/18 5.3 5.0 5.1 5.1 4.9 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Excludes acquisition-related costs including Day 1 impact on acquired performing loans 4 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 5 As of Q1/18, R-G Premier is included in International Commercial and International Retail 6 Excludes impact of acquisitions in Q3/18 of $0.2B Scotiabank® | 16#17PCL RATIOS Stable all-bank PCL ratios on impaired loans IAS 39 ¦ IFRS 9 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 (As a % of PCLs on PCLs on PCLs on PCLs on Total PCLs on Total Total Total Average Net Loans & Acceptance) Impaired Impaired Loans Loans Impaired Impaired PCLs Impaired PCLS PCLs PCLS Loans Loans (adj) Loans Canadian Banking I Retail 0.30 0.29 0.28 0.28 0.28 0.25 0.24 0.25 0.25 Commercial 0.07 0.11 0.08 0.09 0.09 (0.04) 0.06 0.06 0.15 Total 0.27 0.27 0.25 0.25 0.25 0.21 0.21 0.22 0.23 Total Excluding Credit Mark 0.28 I N/A N/A N/A N/A N/A N/A N/A N/A Benefits I International Banking Retail 2.00 2.28 2.39 2.26 2.16 2.36 2.254 2.38 2.21 Commercial 0.32 0.28 0.201 0.55 0.341 0.38 0.311,4 0.07 (0.06) I Total 1.14 1.25² 1.261,2 1.382 1.221,2 1.33 1.234 1.20 1.05 Total - Excluding Credit Mark 1.34 I N/A N/A N/A N/A N/A N/A N/A N/A Benefits Global Banking and Markets 0.04 (0.01) (0.04) 0.02 (0.05) (0.06) (0.05) (0.07) (0.09) All Bank 0.42 0.43 0.42 0.46 0.42 0.41 0.40 0.42 0.39 1 Excludes provision for credit losses on debt securities and deposit with banks 2 Not comparable to prior periods, which were net of acquisition benefits 3 On an reported basis; includes impact of Day 1 PCLs from acquisitions 4 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions Scotiabank | 17#18NET WRITE-OFFS Stable net write-off ratio 1 Annualized (As a % of Average Net Loans & Acceptances) 1, 2 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Canadian Banking 0.29% 0.25% 0.26% 0.23% 0.23% International Banking 1.16% 1.38% 1.26% 1.14% 1.24% Global Banking and Markets 0.04% 0.05% 0.08% 2 Net write-offs are net of recoveries (0.03)% All Bank 0.44% 0.46% 0.45% 0.39% 0.45% Scotiabank® | 18#19ENERGY EXPOSURE Significantly de-risked energy related exposure Outstanding Loans and Acceptances % of Total Energy Exposure % of Total Loans and % Investment Grade Acceptances ($B) Outstanding 6.6 45% 1.1% 64% Total Exploration and Production 3.4 23% 0.6% 83% Canadian Exploration and Production 1.2 8% 0.2% 88% WCS Exposure 8.2 55% 1.5% N/A Total Other¹ Total Energy Exposure 14.8 100% 2.6% 64% Watch-list reduced to less than 1% of total exposures from 14% • RWA has decreased 37% since Q4/16 1 Other includes Midstream ($4.9 billion), Downstream ($1.9 billion) and Oil Field Services ($1.4 billion) Scotiabank® | 19#20APPENDIX Scotiabank® 20 20#21DILUTED EPS RECONCILIATION Q4/18 Diluted EPS Q3/18 Diluted EPS 2018 Diluted EPS ($ per share) ($ per share) ($ per share) Reported $1.71 $1.55 $6.82 Impact of Acquisition-related costs on diluted earnings per share¹ Adjusted $0.06 $0.21 $0.29 $1.77 $1.76 $7.11 1 Acquisition-related costs includes integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 Scotiabank® | 21#22SUMMARY OF ADJUSTING ITEMS1 Adjusting Items (Pre-Tax) ($MM) Acquisition-Related Costs Day 1 PCL on acquired performing financial instruments - International Banking Integration Costs Canadian Banking International Banking Amortization of Intangibles² Canadian Banking International Banking Total (Pre-Tax) Adjusting Items (After-Tax and NCI) ($MM) Acquisition-Related Costs Day 1 PCL on acquired performing financial instruments - International Banking Integration Costs Canadian Banking International Banking Amortization of Intangibles³ Canadian Banking International Banking Total (After-Tax and NCI) 1 May not add due to rounding 2 Excludes amortization of intangibles related to software (pre-tax) 3 Excludes amortization of intangibles related to software (after-tax) Q4/17 Q3/18 Q4/18 404 26 75 3 28 23 47 19 23 27 8 12 14 11 11 13 19 453 102 Q4/17 Q3/18 Q4/18 Tax NCI After-Tax and NCI 176 15 21 9 45 2 7 21 13 14 9 14 16 7 6 9 4 8 7 3 422222 20 10 10 14 207 28 9 65 ⑤Scotiabank® | 22#23STABLE CORE BANKING MARGIN 2.46% 2.47% 2.46% 2.47% 2.44% Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 YEAR-OVER-YEAR HIGHLIGHTS • Change in business mix from the impact of International Banking acquisitions and higher margins in Canadian Banking Lower margins in Global Banking and Markets and lower contribution from asset/liability management activities ⑤Scotiabank® | 23#24CANADIAN BANKING - REVENUE GROWTH AND NIM Good retail and commercial lending revenue growth REVENUE (TEB) ($MM) +5% Y/Y NIM (%) 2.41% 2.41% 2.43% 2.46% 2.45% 3,443 3,373 3,265 5% 854 821 815 Y/Y 1.66% 1.63% 1.64% 1.65% 1.64% 606 614 +6% 581 Y/Y +6% 1,869 1,946 1,975 Y/Y Q4/17 1.05% 1.08% 1.10% 1.07% 0.99% Q3/18 Q4/18 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Retail Commercial Wealth Total Canadian Banking Margin Total Earning Asset Margin Total Deposits Margin 6 Scotiabank® | 24#25CANADIAN BANKING - VOLUME GROWTH Strong business loan growth, and continue to grow retail deposits AVERAGE LOANS & ACCEPTANCES ($B)¹ +5% Y/Y AVERAGE DEPOSITS ($B)¹ +6% Y/Y 337 340 249 325 241 53 53 47 +13% Y/Y 235 7 7 79 +7% 75 73 Y/Y 73 71 74 +3% Y/Y +5% 199 205 206 +3% Y/Y 162 166 170 Y/Y Q4/17 Q3/18 Residential mortgages Personal loans 1 May not add due to rounding Credit cards Q4/18 Business Q4/17 Personal Q3/18 Q4/18 Non-personal ⑤Scotiabank® | 25#26INTERNATIONAL BANKING - REVENUE GROWTH Latin America, driven by the Pacific Alliance, continues to deliver strong revenue growth BY TYPE (TEB) ($MM)1 BY REGION (TEB) ($MM) +22% +22% Y/Y2,3 Y/Y2 3,134 3,134 +67% 183 2,853 Y/Y 2,853 134 2,565 2,565 +24% 740 +4% 1,104 104 Y/Y3 Y/Y 779 1,026 707 898 +26% +20% Y/Y3 2,211 Y/Y3 2,030 1,940 1,827 1,754 1,667 Q4/17 Net interest income Q4/18 Q3/18 Q4/18 Q4/17 Q3/18 Non-interest revenue Latin America Caribbean & Central America 1 Y/Y growth rates are on a constant dollar basis 2 Revenue growth of 22% Y/Y on a reported basis 3 Includes the impact of acquisitions Asia ⑤Scotiabank® | 26#27INTERNATIONAL BANKING - VOLUME GROWTH Solid loan and deposit growth AVERAGE LOANS & ACCEPTANCES ($B)¹ 1, 2 AVERAGE DEPOSITS ($B) 1.2 +29% Y/Y3,4 144 +34% +17% Y/Y4,5 9 Y/Y4 122 115 23 +27% 8 110 Y/Y4 102 7 96 19 41 18 +17% Y/Y4 39 +34% 36 36 Y/Y4 34 32 29 56 Q4/17 Business 63 Q3/18 13 73 +26% Y/Y4 Q4/18 Residential mortgages Personal loans Credit cards 1 Y/Y growth rates are on a constant dollar basis 2 Includes deposits from banks 3 Average loans & acceptances growth of 31% Y/Y on a reported basis 4 Includes the impact of acquisitions 5 Average deposits growth of 20% Y/Y on a reported basis 62 66 62 99 Q4/17 Q3/18 Non- Personal Personal 74 Q4/18 +18% Y/Y4 Scotiabank® | 27#28INTERNATIONAL BANKING - REGIONAL LOAN GROWTH Strong loan growth in Latin America, largely due to acquisitions AVERAGE LOANS & ACCEPTANCES ($B)¹ CONSTANT DOLLAR LOAN VOLUMES, Y/Y +29% Y/Y2,3 144 Retail Commercial4 Total 31 -2% 122 Latin America 47% 35% 41% Y/Y 110 31 C&CA 0% (4%) (2%) 30 Total 31% 26% 29% 80 Q4/17 Latin America 91 97 113 +41% Y/Y3 Retail Commercial4 Total ex-M&A ex-M&A ex-M&A Latin America 13% 15% 14% C&CA 0% (4%) (2%) Q4/18 Total 9% 10% 10% Caribbean & Central America Q3/18 1 Y/Y growth rates are on a constant dollar basis 2 Average loans & acceptances growth of 31% Y/Y on a reported basis 3 Includes the impact of acquisitions 4 Excludes bankers acceptances Scotiabank® | 28#29GLOBAL BANKING AND MARKETS - REVENUE AND VOLUME GROWTH REVENUE (TEB) ($MM) -1% Y/Y 1,110 1,089 1,073 446 462 450 664 627 623 Q4/17 Business banking Q3/18 AVERAGE BUSINESS AND GOVERNMENT LOANS & ACCEPTANCES ($B) +7% Y/Y 83 84 79 Q4/18 Q4/17 Q3/18 Q4/18 Capital markets Scotiabank® | 29#30ECONOMIC OUTLOOK IN KEY MARKETS Macro economic growth improving for Pacific Alliance countries • Improving economic growth outlook in 2019 for Canada and the majority of the Pacific Alliance countries Real GDP (Annual % Change) Country 2017 Canada 3.0 2018F 2019F 2.1 2.2 U.S. 2.2 2.9 2.4 Mexico 2.0 1.8 2.1 Peru 2.5 3.7 4.0 Chile 1.5 3.9 3.2 Colombia 1.8 2.5 3.5 Source: Scotia Economics, as of October 15, 2018 Scotiabank® | 30#31SCOTIABANK IN THE PACIFIC ALLIANCE COUNTRIES Well positioned to grow now and in the future Population 1,2 Government Presidential Elections Financial Stability Economy Key Highlights of Pacific Alliance countries (PACS) • 6x Canada's population; projected growth outpaces Canada, other EM³ and G7 countries; median age of 29 vs. 42 in Canada • No elections expected until 2021 All sovereign credit ratings in IG category with central banks targeting inflation since 1999 GDP1 Exports5 Trade Partners5 Business Environment HDI Score Rank6 Banking Penetration1 Foreign Direct Investment¹ • Ranks as 9th largest economy in the world Manufacturing is the largest source of exports for the PACS at 64% • US, China and Canada are the PACs' largest trading partners, representing 72% of exports ⚫ Ranks "High" or "Very High," comparable to Canada and the U.S. Under-banked with average banking penetration at 50% compared to over 90% in Canada and the U.S. ⚫ FDI averaging 3.2% of GDP compared to 1.7% in Canada and the U.S. Scotiabank Market Share? Market Share Ranking? Mexico 7.1% 6th Peru 18.2% 3rd Chile 13.8% 3rd Colombia 6.2% 5th PACS (Total13/Average) 11.3% 4th Strengths Mortgages and Auto Commercial, Personal and Credit cards Commercial, Credit cards and Mortgages Retail and Credit Cards Well positioned Average Total Loans³(C$B) $27.4 $20.0 $43.5 $12.4 $103.2 Revenue⁹(C$B) $2.2 $2.0 $1.7 $1.3 $7.2 Net Income after NCI 9,10 (C$B) $0.6 $0.7 $0.4 $0.1 $1.9 ROE 9,10 26% 24% 11% 6% 17% # of Employees 11,12 13,204 11,032 9,386 9,658 43,280 1 Source: World Bank 2017 2 Population growth: World Bank DataBank 2017-2022 3 EM countries include: Argentina, Brazil, China, Greece, India, Indonesia, Poland, South Africa, Turkey, and Russia 4 Source: The World Factbook, CIA 2017 5 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co- operation and Development (OECD) 2016 6 Human Development Index. Source: United Nations Development Programme (UNDP) 2017. For more information, please refer to: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf 7 Total loans market share as of September 2018 8 Average loan balances over Q4/18 9 For the fiscal year ended October 31, 2018 10 Earnings adjusted for acquisition-related costs including the Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 11Employees are reported on a full-time equivalent basis 12As of October 31, 2018 13May not add due to rounding Scotiabank | 31#32PROVISION FOR CREDIT LOSSES IAS 39 ! IFRS 9 (SMM) Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 PCLs on PCLs on PCLs on PCLs on Total PCLs on Total Total Total Impaired Impaired Impaired Impaired PCLs Impaired PCLs PCLS PCLS Loans Loans Loans Loans (adj.) Loans Canadian Banking Canadian Retail 210 206 200 193 193 179 174 181 179 Canadian Commercial 8 14 10 11 12 (5) 7 7 19 Total Canadian Banking 218 220 210 204 205 174 181 188 198 - Total Excluding Credit Mark Benefits 224 N/A N/A N/A N/A N/A N/A International Banking International Retail 265 306 320 308 294 337 3204 412 384 International Commercial 45 40 241 80 461 60 471,4 13 (12) Total 310 3462 3441,2 3882 3401,2 3972 3671,2,4 425 372 Total Excluding Credit Mark Benefits 365 N/A N/A N/A N/A N/A N/A N/A N/A Global Banking and Markets 8 (2) (9) 3 (11) (12) (10) (17) (21) Other - (1)1 - 11 411 411 All Bank 536 564 544 595 534 559 539 637 590 1 Includes provision for credit losses on debt securities and deposit with banks of $41 million (Q1/18: -$5 million, Q2/18: -$4 million, Q3/18: $Nil) in International Banking and $1 million (Q1/18: -$1 million, Q2/18: $Nil, Q3/18: $1 million) in Other 2 Not comparable to periods prior to Q1/18, which were net of acquisition benefits 3 Figures on an reported basis; includes impact of Day 1 PCLS from acquisitions 4 Figures on an adjusted basis; adjusted for Day 1 PCLs from acquisitions Scotiabank® | 32#33($MM) 900 800 700 600 500 400 300 200 100 0 IMPAIRED LOANS NET FORMATIONS OF IMPAIRED LOANS 1,2 IAS 39 I Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 IFRS 9 Q4/18 ($B) 0 1 2 GROSS IMPAIRED LOANS 1,2,3 LO 5 IAS 39 6 IFRS 9 1.15% 1.10% 1.05% 1.00% 3 0.95% 0.90% 0.85% Net formations Average 1 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 GILS (LHS) GILS as % of loans & BAS (RHS) 1 Prior to Q1/18, excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. Effective Q1/18, includes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Excludes impact of acquisitions in Q3/18 of $0.2B Scotiabank® | 33#34CANADIAN RETAIL: LOANS AND PROVISION (Spot Balances as at Q4/18, $B) $213.1 Total Portfolio: $293 billion1; 93% secured² $39.1 $33.8 $7.4 Mortgages Personal Loans4 Lines of Credit Credit Cards % secured PCL3 100% 99% 62% 3% Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 PCLs on Impaired Loans $ millions 6 3 71 64 % of avg. net loans (bps) 1 1 69 63 68 58 55 56 49 56 70 283 330 PCLS $ millions 0 1 73 0 70 560 67 55 66 68 88 65 60 51 46 46 75 292 269 % of avg. net loans (bps) 1 Includes Tangerine balances of $6 billion 2 81% secured by real estate; 12% secured by automotive 3 2018 amounts are based on IFRS 9 4 99% are automotive loans 6 Scotiabank® | 34#35CANADIAN RESIDENTIAL MORTGAGE PORTFOLIO 43% Insured $107.0 $12.2 $94.8 Total Portfolio: $213 billion $38.6 $9.2 $30.7 $3.6 (Spot Balances as at Q4/18, $B) $15.9 $29.4 $1.8 $27.1 $11.4 $0.2 $9.5 $0.7 $14.1 $11.2 $8.8 57% Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan Uninsured Freehold $185B Condos $28B Average LTV of uninsured mortgages is 54%¹ New originations² average LTV of 63% in Q4/18 ⑤Scotiabank® | 35 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions.#36Q4 2018 CANADIAN RESIDENTIAL MORTGAGES Credit fundamentals remain strong NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION Q4/17 Q3/18 Q4/18 Canada Total Originations ($B) 12.9 11.9 10.5 GVA 59% Uninsured LTV 64% 63% 63% GTA BC & Territories Total Originations ($B) Uninsured LTV 3.9 3.6 3.2 63% 62% 62% 61% GVA Prairies 67% ON QC Atlantic Provinces 63% 65% 69% Total Originations ($B) Uninsured LTV 1.8 1.4 1.1 61% 60% 59% *Average LTV ratios for our uninsured residential mortgages originated during the quarter FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO Average FICO® Score Canada 787 GTA 790 GVA 790 16% 11% 12% 4% < 635 636-706 57% 707-747 748-788 > 788 FICO is a registered trademark of Fair Isaac Corporation • <0.65% of uninsured portfolio has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $121 billion as at Q4/2018 Scotiabank® 36#37INTERNATIONAL RETAIL: LOANS AND PROVISION (Spot Balances as at Q4/18, $B¹) Total Portfolio1: $71 billion; 67% secured $23.9 $2.6 $18.4 $1.9 Mortgages ($40.0B) $4.6 $11.7 Personal loans ($20.9B) $0.7 $3.3 Credit cards ($9.1B) $11.9 $7.7 $6.0 $8.4 $7.6 $15.3 $1.6 $2.3 $3.9 $3.1 $2.9 $2.2 PCL2 C&CA Mexico Chile Peru Colombia Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 PCLs on Impaired Loans $ millions 65 68 % of avg. net loans (bps) 147 151 85 60 42 86 63 78 85 110 67 206 154 145 182 400 443 582 452 PCLS 63 63 46 126 216 169 16. 79 573 84 81 101 633 134 1653 432 421 532 4253 $ millions 45 % of avg. net loans (bps) 101 55 56 620 1 Total Portfolio includes other smaller portfolios 2 2018 amounts are based on IFRS 9 3 Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans Scotiabank® | 37#38RETAIL 90+ DAYS PAST DUE LOANS Favourable credit quality across all markets and products Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Mortgages 0.21% 0.20% 0.19% 0.20% 0.20% Personal Loans 0.60% 0.63% 0.57% 0.56% 0.56% Credit Cards 1.13% 1.18% 1.08% 0.89% 0.91% Secured and Unsecured Lines of Credit 0.28% 0.30% 0.30% 0.28% 0.29% CANADA 0.29% 0.29% 0.27% 0.27% 0.28% Q4/17 Q1/18 Q2/18 Q3/181 Q4/181 Mortgages 3.83% 3.82% 3.70% 3.28% 3.18% Personal Loans 3.52% 3.68% 3.64% 3.45% 3.56% Credit Cards 3.09% 3.02% 2.87% 3.03% 2.96% TOTAL INTERNATIONAL 3.62% 3.66% 3.56% 3.31% 3.25% 1 Includes acquisitions in Chile and Colombia. Excluding these acquisitions, Total International ratio would have been 3.72% in Q3/18 and 3.67% in Q4/18. Scotiabank® 38#39TRADING RESULTS 0 TRADING LOSS DAYS IN Q4/18 14 (# of days in quarter) 12 10 10 8 6 4 2 0 Q4/18 TRADING REVENUE AND ONE-DAY TOTAL VAR 25 20 20 Average 1-Day Total VaR Q4/18: $10.5 MM Q3/18: $13.2 MM Q4/17: $10.8 MM Millions 15 45 10 5 0 -5 -10 -15 T T T T T -20 5 1 3 4 Q4/18 Daily Trading Revenues ($MM) 6 7 8 9 10 15 20 25 1-day total VaR Actual Daily Revenue ⑤Scotiabank® | 39#40FX MOVEMENTS VERSUS CANADIAN DOLLAR Canadian (Appreciation) / Depreciation Currency Q4/18 Q3/18 Q4/17 Q/Q Y/Y SPOT U.S. Dollar 0.760 0.769 0.775 1.2% 2.0% Mexican Peso 15.43 14.33 14.86 (7.7%) (3.8%) Peruvian Sol 2.561 2.514 2.520 (1.9%) (1.6%) Colombian Peso 2446 2,222 2,358 (10.1%) (3.7%) Chilean Peso 528.7 490.0 493.3 (7.9%) (7.2%) AVERAGE U.S. Dollar 0.768 0.767 0.800 (0.1%) 4.1% Mexican Peso 14.59 15.04 14.52 3.0% (0.5%) Peruvian Sol 2.542 2.511 2.597 (1.2%) 2.1% Colombian Peso 2326 2,209 2,358 (5.3%) 1.4% Chilean Peso 516.1 489.6 506.7 (5.4%) (1.9%) Scotiabank® | 40#41INVESTOR RELATIONS CONTACT INFORMATION Philip Smith, Senior Vice President 416-863-2866 [email protected] Steven Hung, Vice President 416-933-8774 [email protected] Lemar Persaud, Director 416-866-6124 [email protected] Judy Lai, Director 416-775-0485 [email protected] Scotiabank® | 41