#1INVESTOR PRESENTATION FIRST QUARTER 2018 February 27, 2018 Scotiabank®#2CAUTION REGARDING FORWARD-LOOKING STATEMENTS 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. 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 2017 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 (including those in the area of risk management), 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," "anticipate," "intent," "estimate," "plan," "may increase," "may fluctuate," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would" and "could." By their very nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not prove to be accurate. Do not unduly rely on forward-looking statements, as a number of important factors, many of which are beyond the Bank's control and the effects of which can be difficult to predict, could cause actual results to differ materially from the estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: the economic and financial conditions in Canada and globally; fluctuations in interest rates and currency values; liquidity and funding; significant market volatility and interruptions; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary policy; legislative and regulatory developments in Canada and elsewhere, including changes to, and interpretations of tax laws and risk-based capital guidelines and reporting instructions and liquidity regulatory guidance; changes to the Bank's credit ratings; operational (including technology) and infrastructure risks; reputational risks; the risk that the Bank's risk management models may not take into account all relevant factors; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services; the Bank's ability to expand existing distribution channels and to develop and realize revenues from new distribution channels; the Bank's ability to complete and integrate acquisitions and its other growth strategies; critical accounting estimates and the effects of changes in accounting policies and methods used by the Bank as described in the Bank's annual financial statements (See "Controls and Accounting Policies - Critical accounting estimates" in the Bank's 2017 Annual Report) and updated by quarterly reports; global capital markets activity; the Bank's ability to attract and retain key executives; reliance on third parties to provide components of the Bank's business infrastructure; unexpected changes in consumer spending and saving habits; technological developments; fraud by internal or external parties, including the use of new technologies in unprecedented ways to defraud the Bank or its customers; increasing cyber security risks which may include theft of assets, unauthorized access to sensitive information or operational disruption; anti-money laundering; consolidation in the financial services sector in Canada and globally; competition, both from new entrants and established competitors; judicial and regulatory proceedings; natural disasters, including, but not limited to, earthquakes and hurricanes, and disruptions to public infrastructure, such as transportation, communication, power or water supply; the possible impact of international conflicts and other developments, including terrorist activities and war; the effects of disease or illness on local, national or international economies; 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. For more information, see the "Risk Management" section of the Bank's 2017 Annual Report. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2017 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. The preceding list of factors is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results. 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. The forward-looking statements contained in this document are presented for the purpose of assisting the holders of the Bank's securities and financial analysts in understanding the Bank's financial position and results of operations as at and for the periods ended on the dates presented, as well as the Bank's financial performance objectives, vision and strategic goals, 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 Q1 2018 OVERVIEW A strong start to the year MEDIUM TERM FINANCIAL OBJECTIVES Objectives Q1/18 Results • EPS Growth 7%+ 18% ROE 14%+ 16.2% . Operating Leverage Positive 8.4% • Capital Levels Strong Levels 11.2% • 1 Employee benefits re-measurement credit of $150 million after-tax ($203 million pre-tax) and $0.12 per share KEY HIGHLIGHTS Strong performance across core personal and commercial business lines Employee benefits re-measurement credit 1 contributed 700 bps to EPS growth and 550 bps to operating leverage Quarterly dividend increased 3 cents to $0.82 per share Structural cost initiatives progressing well ahead of plan and continuing to invest in the business Improved credit performance Scotiabank® 4#5Scotiabank to Acquire Jarislowsky, Fraser Limited Transaction creates the third-largest active asset manager in Canada • . • Approximately $40 billion in assets under management (AUM), primarily institutional and ultra high net worth clients (UHNW) Pro forma $166 billion in AUM related to asset management Approximately $950 million purchase price at closing, primarily by the issuance of Scotiabank common shares • Up to $56 million earn-out in additional Scotiabank common shares on achieving growth targets • Accretive to earnings in FY 2020 following share repurchase program over 12-18 months post close . Aligns with strategic commitment to diversify global wealth management business to institutional investors Retail2 89% $126 BN1 Scotiabank® Institutional 11% + $40 BN UHNW 23% O Institutional 77% JARISLOWSKY FRASER GLOBAL INVESTMENT MANAGEMENT 1 Excludes $29 billion of Scotia Wealth Management and Tangerine AUM as of Q4/17 2 Retail includes mutual funds and pools distributed through affiliated bank, brokerage and counsel channels, as well as wholesaled through third-party advisors Retail² 69% $166 BN Scotiabank®+ Institutional and UHNW 31% JARISLOWSKY FRASER GLOBAL INVESTMENT MANAGEMENT Scotiabank® 5#6Investor Day Summary A lot of heavy lifting completed and focused on key areas going forward HEAVY LIFTING FOCUS GOING FORWARD Alignment Leadership and culture Digital Cost transformation Balance sheet CUSTOMER DIGITAL STRENGTHEN THE CORE GROWTH LEVERS Scotiabank® 6#7FINANCIAL REVIEW Sean McGuckin Chief Financial Officer Scotiabank® 7#8Q1 2018 FINANCIAL PERFORMANCE Strong results with solid top line growth and continued improvement in efficiency $MM, except EPS Q1/18 Y/Y Q/Q Net Income $2,337 +16% +13% Diluted EPS $1.86 +18% +13% • Revenue $7,088 +3% +4% Expenses $3,498 (5%) (5%) Productivity Ratio 49.3% (440bps) (450bps) Core Banking Margin 2.46% +6bps +2bps . PCL Ratio 1,2 42bps (3bps) PCL Ratio on Impaired Loans 1,2 43bps (2bps) +1bp DIVIDENDS PER COMMON SHARE +0.02 +0.03 +0.03 • YEAR-OVER-YEAR HIGHLIGHTS Diluted EPS grew 18% or 11%³ Revenue growth up 3% 。 Net interest income up 8% from strong volume growth and margin expansion 。 Strong asset growth in Canadian Banking and International Banking Expenses down 5% o Employee benefits re-measurement credit 。 Cost reduction initiatives and HollisWealth sale impact 。 Strong positive operating leverage PCL ratio 1,2 on impaired loans improved by 2 bps to 43 bps 0.74 0.76 0.76 0.79 0.79 Q1/17 Q2/17 Q3/17 ■ Announced Dividend Increase 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 Q4/17 Q1/18 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Excludes an employee benefits re-measurement credit of $150 million after-tax ($203 million pre-tax) and $0.12 per share Scotiabank® 8#9STRONG CAPITAL POSITION CET1 ratio of 11.25% • 11.5% -24 bps +31 bps -14 bps -10 bps -10 bps 11.25% Q4/17 Internal Capital Generation Business Growth RWA (ex. FX) and IFRS 9 transition Basel | Floor Impact Other including Q1/18 FX before Basel I floor Strong CET1 ratio of 11.25% CET1 risk-weighted assets increased 2% or $6 billion • Basel 1 floor relief of 50 bps effective Q2/18 +50 bps " Impact of moving to Basel Il floor in Q2/18 11.75% Q1/18 Pro- Forma Scotiabank® 9#10IMPACT FROM ADOPTION OF IFRS 9 Adoption of IFRS 9 effective November 1, 2017 and no restatement of prior period results Current period January 31, 2018 results are based on IFRS 9, while prior periods are based on IAS 39 • Net reduction to Shareholder's Equity of $610 million and CET1 ratio impact of -14 basis points • Recognize provision for credit losses on performing loans (Stage 1 and Stage 2) each quarter 。 Q1/18: Net benefit of $20 million • Minimal change to gross impaired loans from Stage 3 definition of impaired loans • Certain allowances previously attributed to impaired loans now attributed to performing loans 。 Approximately $1 billion now attributed to performing loans 。 Results in higher net impaired loans from Stage 3 definition of impaired loans Scotiabank® 10#11CANADIAN BANKING Strong loan growth, margin expansion and positive operating leverage FINANCIAL PERFORMANCE AND METRICS ($MM)1 YEAR-OVER-YEAR HIGHLIGHTS Net income up 12% 。 Higher asset growth and margin expansion 。 Lower provision for credit losses and expenses Revenues up 4% Q1/18 Y/Y Q/Q · Revenue $3,303 +4% +1% Expenses $1,605 (2%) (1%) PCLS $210 (11%) (4%) . Net Income Productivity Ratio $1,102 +12% +3% 48.6% (250bps) (130bps) • Net Interest Margin 2.41% +2bps Loan growth of 7% PCL Ratio 2, 3 0.25% (5bps) (2bps) PCL Ratio 0.27% on Impaired Loans 2, 3 (3bps) 。 Net interest income up 7% NET INCOME¹ ($MM) AND NIM (%) 2.39% 2.38% 2.41% 2.41% 2.41% • o Residential mortgages up 6% o Business loans up 14% NIM up 2 bps 。 Rising rate environment and changes in business mix PCL ratio²,3 on impaired loans improved by 3 bps Expenses down 2% 。 Higher investments in technology, digital and regulatory initiatives offset by cost reduction initiatives and Hollis Wealth impact • 981 1,045 1,067 1,102 971 Q1/17 Q2/17 1 Attributable to equity holders of the Bank Q3/17 Q4/17 Q1/18 . Positive operating leverage Scotiabank® 11 2 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#12INTERNATIONAL BANKING Record quarter with strong volume growth and positive operating leverage FINANCIAL PERFORMANCE & METRICS ($MM) 1,2 Q1/18 Y/Y Q/Q • Revenue $2,704 +7% +5% Expenses $1,442 +3% +3% PCLs $344 +13% +10% Net Income $667 +18% +11% • Productivity Ratio 53.3% (200bps) (100bps) Net Interest Margin 4.66% (7bps) (1bp) . PCL Ratio 3,4 1.26% +5bps +12bps PCL Ratio . 1.25% on Impaired Loans 3, 4 +4bps +11bps NET INCOME 1,5 ($MM) AND NIM5 (%) 4.73% 5.00% 4.77% • 4.67% 4.66% · YEAR-OVER-YEAR HIGHLIGHTS2 Net Income up 18% 。 Strong asset and deposit growth o Positive operating leverage 。 Lower taxes Revenue up 7% 。 Net interest income up 8%, with Latin America up 12% Loans up 11% 。 Latin America strong loan growth up 16% PCL ratio³, 4 on impaired loans increased 4 bps o Excluding acquisition related benefits, underlying PCLs down Expenses up 3% Positive operating leverage 667 576 595 614 605 Q1/17 Q2/17 1 Attributable to equity holders of the Bank Q3/17 Q4/17 Q1/18 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 Income and Net Interest Margin is on a reported basis Scotiabank® 12#13GLOBAL BANKING AND MARKETS Higher contributions from equities and improved credit performance FINANCIAL PERFORMANCE AND METRICS¹ ($MM) Q1/18 Y/Y Q/Q • Revenue $1,190 (2%) +9% Expenses $572 +2% +1% PCLS ($9) N/A N/A Net Income $454 (3%) +16% Productivity Ratio 48.1% +200bps (420bps) • Net Interest Margin 2.03% +40bps +15bps PCL Ratio 2,3 (0.04%) (8bps) (8bps) PCL Ratio on Impaired Loans 2, 3 (0.01%) (5bps) (5bps) NET INCOME AND TRADING INCOME4 ($MM) 497 411 • • YEAR-OVER-YEAR HIGHLIGHTS Net Income down 3% 。 Negative impact of foreign currency translation o Higher income from corporate banking, global equities and investment banking, offset by lower fixed income Net Income up 16% quarter-over-quarter 。 Strong growth in global equities, foreign exchange and fixed income businesses o Lower provision for credit losses Higher corporate banking margins Improved PCL ratio², 3 on impaired loans Expenses up 2% o Higher regulatory costs and technology investments 455 372 216 469 517 441 391 Q1/17 Q2/17 Q3/17 454 Q4/17 Q1/18 1 Attributable to equity holders of the Bank 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 Trading income on an all-bank basis and TEB Scotiabank® 13#14OTHER SEGMENT1 Results reflect lower net gains and higher expenses NET INCOME² ($MM) -48 -55 -78 -86 56 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 1 Represents smaller operating segments including Group Treasury and corporate adjustments. 2 Attributable to equity holders of the Bank • • YEAR-OVER-YEAR HIGHLIGHTS Includes employee benefits re-measurement credit of $150 million after-tax Partly offset by lower gains on investment securities and higher expenses Scotiabank® 14#15RISK REVIEW Daniel Moore Chief Risk Officer 15 Scotiabank® 15#16RISK REVIEW Overall credit fundamentals are within expectations IAS 39 IFRS 9 PCLS ($MM) AND PCL RATIO ON IMPAIRED LOANS1, 2 45 bps 45 bps 49 bps 42 bps 43 bps 553 587 573 536 564 Q1/17 Q2/17 PCLs on impaired loans GILS³, 4 ($B) Q3/17 Q4/17 PCL ratio on impaired loans Q1/18 5.4 5.2 4.9 4.9 5.0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 . · YEAR-OVER-YEAR HIGHLIGHTS PCLs 1, 2 on impaired loans of $564 million were up 5% Q/Q and 2% Y/Y 。 PCLS related primarily to retail portfolios in International Banking, mainly in the Latin America region and Canadian Banking Commercial and Corporate impaired loans were $52 million, primarily in International Banking PCL ratio 1, 2 on impaired loans was up 1 bp Q/Q and down 2 bps Y/Y PCL ratio 1,2 was 42 bps 。 PCLs on performing (Stage 1 and 2) reflected a reversal of $20 million, mainly from improving credit quality on non-retail International Banking portfolios Gross impaired loans in Q1/18 reflects an IFRS 9 transitional adjustment of $205 million 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 loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 4 As of Q1/18, R-G Premier is included in International Commercial and International Retail Scotiabank® 16#17PCL RATIOS Stable all-bank PCL ratios on impaired loans IAS 39 IFRS 9 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/18 PCLs on (As a % of PCLs on Impaired Loans Impaired PCLS Average Net Loans & Acceptance) Loans Canadian Banking I Retail 0.32 0.34 0.31 0.30 0.29 0.28 Commercial 0.21 0.14 0.09 0.07 0.11 0.08 Total 0.30 0.31 0.28 0.27 0.27 0.25 Total Excluding Net Acquisition Benefit 0.31 0.32 0.29 0.28 I N/A N/A International Banking Retail 2.10 2.19 2.08 2.00 I 2.28 2.39 I Commercial 0.35 0.51 0.31 0.32 0.28 0.201 I I Total 1.21 1.33 1.16 1.14 1.25² 1.261,2 - Total Excluding Net Acquisition Benefit 1.32 1.45 1.27 1.34 N/A N/A Global Banking and Markets 0.04 0.01 0.11 0.04 (0.01) (0.04) All Bank 0.45 0.49 0.45 0.42 0.43 0.42 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 Scotiabank® 17#18NET WRITE-OFFS Stable net write-off ratio and economic performance Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 (As a % of Average Net Loans & Acceptance) Canadian Banking 0.32% 0.34% 0.32% 0.29% 0.25% International Banking 1.34% 1.33% 1.43% 1.16% 1.38% Global Banking and Markets 0.04% 0.19% 0.18% 0.04% 0.05% All Bank 0.49% 0.53% 0.54% 0.44% 0.46% Scotiabank® 18#19APPENDIX Scotiabank® 19#20DILUTED EPS RECONCILIATION $ Per Share Q1/18 Reported Diluted EPS $1.86 Add: Amortization of Acquisition and Intangibles $0.01 Adjusted Diluted EPS $1.871 1 Includes employee benefits re-measurement credit of $150 million after-tax ($203 million pre-tax) and $0.12 per share Scotiabank® 20 20#21CORE BANKING MARGIN 2.40% 2.54% 2.46% YEAR-OVER-YEAR HIGHLIGHTS ⚫ Higher margins in Global Banking and Markets and Canadian Banking Partly offset by lower margins in International Banking given asset mix • 2.46% 2.44% Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Scotiabank® 21#22CANADIAN BANKING - REVENUE GROWTH AND NIM Good retail and commercial revenue growth REVENUE (TEB) ($MM) +4% Y/Y NIM (%) 2.39% 2.38% 2.41% 2.41% 2.41% 3,265 3,303 3,186 815 804 846 1.64% 1.65% 1.68% 1.66% 1.63% 579 581 520 1,820 1,869 1,920 Q1/17 1.05% 0.97% 0.97% 0.96% 0.99% Q1/18 Total Deposits Margin Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Total Canadian Banking Margin Total Earning Asset Margin Q4/17 Retail Commercial Wealth Scotiabank® 22 22#23CANADIAN BANKING - VOLUME GROWTH Strong business and residential mortgage growth, and continue to grow retail deposits AVERAGE LOANS & ACCEPTANCES ($B) +7% Y/Y AVERAGE DEPOSITS ($B) +2% Y/Y 325 329 235 236 309 232 47 47 49 43 69 69 78 78 75 73 73 162 162 163 199 202 191 Q1/18 Q1/17 Q1/17 Q4/17 Residential mortgages Personal & credit cards Business Personal Q4/17 Q1/18 Non-personal Scotiabank® 23#24INTERNATIONAL BANKING - REVENUE GROWTH Latin America continues to deliver revenue growth BY TYPE (TEB) ($MM)1 +7% Y/Y2 BY REGION (TEB) ($MM)1 +7% Y/Y2 2,704 +14% 2,704 2,586 2,565 2,586 2,565 119 Y/Y 103 104 +4% 749 +1% 997 786 707 975 898 Y/Y Y/Y +8% Y/Y +9% 1,836 1,611 1,667 1,707 1,697 1,754 Y/Y Q1/17 Net interest income Q1/18 Q4/17 Q1/18 Q1/17 Q4/17 Non-interest revenue Latin America Caribbean & Central America 1 Y/Y growth rates are on a constant dollar basis 2 Revenue growth of 5% Y/Y on a reported basis Asia Scotiabank® 24#25INTERNATIONAL BANKING - VOLUME GROWTH Solid loan and deposits growth AVERAGE LOANS & ACCEPTANCES ($B)1 AVERAGE DEPOSITS ($B) 1,2 +11% Y/Y3 +8% Y/Y4 113 96 96 96 110 104 91 26 25 +11% Y/Y 5 34 24 35 34 29 9 28 52 52 Q1/17 Business 56 Q4/17 0 30 57 +9% Y/Y +12% Y/Y 57 57 Q1/18 Q1/17 Residential mortgages Personal & credit cards 1 Y/Y growth rates are on a constant dollar basis 2 Includes deposits from banks 3 Average loans & acceptances growth of 8% Y/Y on a reported basis 4 Average deposits growth of 6% Y/Y on a reported basis 62 62 Q4/17 Non- Personal Personal +5% Y/Y 199 61 +10% Y/Y Q1/18 Scotiabank® 25 25#26INTERNATIONAL BANKING - REGIONAL LOAN GROWTH Strong loan and deposit growth AVERAGE LOANS & ACCEPTANCES ($B) CONSTANT DOLLAR LOAN VOLUMES, Y/Y +11% Y/Y1 113 110 104 31 30 33 80 82 71 Q1/17 Latin America Q4/17 Q1/18 Caribbean & Central America 1 Average loans & acceptances Y/Y growth rate on a constant dollar basis - on a reported basis, growth rate of 8% 2 Excludes bankers acceptances Retail Commercial² Total Latin America 15% 17% 16% C&CA (2%) (1%) Total 10% 12% 11% Scotiabank® 26#27GLOBAL BANKING AND MARKETS - REVENUE AND VOLUME GROWTH REVENUE (TEB) ($MM) -2% Y/Y 1,215 1,190 1,089 604 533 462 AVERAGE BUSINESS AND GOVERNMENT LOANS & ACCEPTANCES ($B) -2% Y/Y 82 79 80 III Q1/18 Q1/17 Q4/17 Q1/18 657 611 627 Q1/17 Q4/17 Business banking Capital markets Scotiabank® 27#28ECONOMIC OUTLOOK IN KEY MARKETS Macro economic growth improving for Pacific Alliance countries Real GDP (Annual % Change) Country 2000-16 Avg. 2016A 2017E 2018F Mexico 2.2 2.9 2.1 2.4 Peru 5.1 3.9 2.5 3.7 Chile 4.1 1.6 1.6 3.1 Colombia 4.1 2.0 1.7 2.5 2000-16 Avg. 2016A 2017E 2018F Canada 2.1 1.4 2.9 2.3 U.S. 1.9 1.5 2.3 2.5 Source: Scotia Economics, as of February 6, 2018 Scotiabank® 28#29PROVISIONS FOR CREDIT LOSSES IAS 39 IFRS 9 ($MM) Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/18 PCLs on PCLs on Impaired Loans Impaired PCLs Loans Canadian Banking Canadian Retail 213 220 214 210 206 200 Canadian Commercial 22 16 10 8 14 10 Total Canadian Banking 235 236 224 218 220 210 Total Excluding net acquisition benefit 240 247 232 224 N/A N/A International Banking International Retail 265 280 280 265 306 320 International Commercial 45 69 45 45 40 241 Total 310 349 325 310 3462 3441,2 Total - Excluding net acquisition benefit 340 380 355 365 N/A N/A Global Banking and Markets 2 24 (2) (9) Other (1)1 All Bank 553 587 573 536 564 544 1 Includes provision for credit losses on debt securities and deposit with banks of ($5 million) in International Banking and ($1 million) in Other 2 Not comparable to prior periods, which were net of acquisition benefits Scotiabank® 29#30NET FORMATIONS OF IMPAIRED LOANS1,2 1200 1000 800 400 ($MM) 600 200 IAS 39 0 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 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 IFRS 9 Scotiabank® 30#31($B) 1 2 5 5 GROSS IMPAIRED LOANS1,2 IAS 39 ¦ IFRS 9 1.15% 1.10% 1.05% 1.00% 0.95% 0.90% 0 0.85% Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 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 Scotiabank® 31#32CANADIAN RESIDENTIAL MORTGAGE PORTFOLIO 48% Insured $103.3 $11.8 Total Portfolio: $208 billion $91.5 $36.9 $8.4 $31.0 $3.8 $15.9 $28.5 $1.8 $27.2 $11.6 $0.2 $9.4 $0.7 $14.1 $11.4 $8.7 52% Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan Uninsured Freehold $181B Condos $27B (Spot Balances as at Q1/18, $B) Average LTV of uninsured mortgages is 53%¹ | New originations² average LTV of 64% in Q1/18 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. Scotiabank® 32#33CANADIAN RETAIL: LOANS AND PROVISIONS (Spot Balances as at Q1/18, $B) $208.3 Total Portfolio: $285 billion1; 93% secured² $32.8 $37.3 $6.9 % secured PCL3 Mortgages 100% Lines of Credit Personal Loans Credit Cards 62% 99% 3% Q1/18 Q4/17 IFRS 9 IAS 39 Q1/18 Q4/17 IFRS 9 IAS 39 Q1/18 Q4/17 IFRS 9 IAS 39 Q1/18 Q4/17 IFRS 9 IAS 39 PCLs on Impaired Loans $ millions 0 5 55 % of avg. net loans (bps) 0 1 72 65 60 85 78 75 93 000 66 67 86 402 405 PCLs $ millions 2 5 LO % of avg. net loans (bps) 0 1 60 68 60 90 65 77 78 75 84 86 89% 53 67 326 405 1 Includes Tangerine balances of $7 billion 2 81% secured by real estate; 12% secured by automotive 3 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 Scotiabank® 33 33#34INTERNATIONAL RETAIL: LOANS AND PROVISIONS Total Portfolio1: $56 billion; 67% secured (Spot Balances as at Q1/18, $ B1) $17.4 $1.8 $13.3 $4.3 $2.0 $10.7 -$0.5 Mortgages ($31.0B) $3.6 $3.1 $7.6 Personal loans ($16.5B) $1.4 $5.9 Credit cards ($7.4B) $11.3 $1.7 $3.5 $7.7 $7.1 $2.0 $2.7 $2.2 PCL2 PCLs on Impaired Loans C&CA Mexico Chile Peru Colombia Q1/18 Q4/173 Q1/18 Q4/17 Q1/18 IFRS 9 IAS 39 IFRS 9 IAS 39 Q4/173 IFRS 9 IAS 39 Q1/18 Q4/17 Q1/18 Q4/17 IFRS 9 IAS 39 IFRS 9 IAS 39 $ millions 61 30 % of avg. net loans (bps) 140 280 44 43 50 70 171 168 160 29 29 67 74 72 76 96 374 405 533 571 PCLs $ millions 65 30 49 43 5.55 51 29 73 74 71 % of avg. net loans (bps) 150 70 191 168 162 96 405 405 527 167 76 571 1 Total Portfolio includes other smaller portfolios 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Includes the benefits from Cencosud and Citibank net acquisition benefits. Excluding the net acquisition benefits, C&CA's ratio would be 148 bps for Q4/17 and Chile's ratio would be 136 bps for Q4/17. Scotiabank® 34#35Q1 2018 TRADING RESULTS One trading loss day in Q1/18 (# of days in quarter) 18 16 14 12 10 8 00 6 4 2 h….... 0 -2 3 4 5 6 7 8 00 Daily Trading Revenues ($MM) 9 10 10 13 25 30 55 Scotiabank® 35#36Q1 2018 TRADING RESULTS AND ONE-DAY TOTAL VAR Millions 30 25 Average 1-Day Total VaR Q1/18: $13.2 MM Q4/17: $10.8 MM Q1/17: $12.0 MM 20 20 15 10 5 0 -5 -10 -15 -20 السلمية 1-day total VaR Actual Daily Revenue Scotiabank® 36#37FX MOVEMENTS VERSUS CANADIAN DOLLAR Canadian (Appreciation) / Depreciation Currency Q1/18 Q4/17 Q1/17 Q/Q Y/Y SPOT U.S. Dollar 0.813 0.775 0.769 (4.9%) (5.8%) Mexican Peso 15.13 14.86 16.03 (1.8%) 5.6% Peruvian Sol 2.615 2.520 2.514 (3.8%) (4.0%) Colombian Peso 2,301 2,358 2,248 2.4% (2.4%) Chilean Peso 490.1 493.3 498.4 0.7% 1.7% AVERAGE U.S. Dollar 0.791 0.800 0.750 1.2% (5.5%) Mexican Peso 15.04 14.52 15.50 (3.6%) 3.0% Peruvian Sol 2.558 2.597 2.533 1.5% (1.0%) Colombian Peso 2,336 2,358 2,265 1.0% (3.1%) Chilean Peso 495.0 506.7 498.2 2.5% 0.9% Scotiabank® 37#38INVESTOR RELATIONS CONTACT INFORMATION Adam Borgatti, Vice President 416-866-5042 [email protected] Lemar Persaud, Director 416-866-6124 [email protected] Scotiabank® 38