#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 2018 • Objectives Results¹ • 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 Acquisition Impact Closing/Expected Closing MD Canada JARISLOWSKY FRASER Increased wealth management assets to $230B. Creates 3rd largest active asset manager in Canada. 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 PROGRESO Doubles customer base. Creates 4th largest full-service bank. Q1/19* *Subject to regulatory approvals and closing conditions Scotiabank® 5#6DIGITAL PROGRESS UPDATE Progressing well against 2018 Investor Day digital targets Digital Retail Sales +11% Digital Adoption +7% 22 222 15 11 26 26 29 29 In-Branch Financial Transactions -6% 33 26 23 20 20 F2016 F2017 F2018 F2016 F2017 F2018 F2016 F2017 F2018 . Goal >50% Goal >70% Goal <10% Solid progress made in all five key markets across various product suites including deposits, personal loans, insurance, etc. Digitally-active users up over 30% in Mexico, Colombia and Peru. High single digit growth in Canada and Chile. • Mobile transactions up over 30% in Canadian Banking, while in-branch transactions declined 6% Scotiabank®#7FINANCIAL REVIEW Raj Viswanathan Chief Financial Officer Scotiabank® 7#8FISCAL 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 2018 Net Income $8,724 +6% Diluted EPS $6.82 +5% 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 $14,871 +2% • Productivity Ratio 51.7% (190bps) PCL Ratio 1, 2 41bps (4bps) Adjusted Net Income up 10%³ Revenue up 6% 。 Net interest income up 8% 。 Non-interest income up 4% Expense growth of 2%3 Productivity ratio improved 190 bps³ Full year operating leverage of +3.7%³ Improved PCL ratio on impaired loans 1, 2 ADJUSTED NET INCOME³ BY BUSINESS SEGMENT ($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 8 Scotiabank®#9Q4 2018 FINANCIAL PERFORMANCE Strong revenue growth and higher NIM $MM, except EPS Reported Q4/18 Y/Y Q/Q 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 $3,962 +9% +6% Productivity Ratio 53.2% (40bps) +140bps PCL Ratio 1, 2 39bps (3bps) (1bp) DIVIDENDS PER COMMON SHARE 0.03 0.03 0.79 0.79 0.82 0.82 0.85 Q4/17 Q1/18 ■ Announced Dividend Increase Q2/18 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 Q3/18 Q4/18 YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 13%³ Revenue up 9% 。 Net interest income up 10% 。 Non-interest income up 8% Expenses up 9%* 3 Productivity ratio improved 40 bps³ Flat PCL ratio 1, 2 on impaired loans 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 Scotiabank® 9#10CAPITAL POSITION REMAINS STRONG Expect CET 1 ratio to remain above 11% in 2019 +14 bps +33 bps -65 bps 11.4% -10 bps +1 bp 11.1% +10 bps 11.2% Q3/18 Internal Capital Generation RWA Impact (ex. FX) Impact of Acquisitions Share issuance / Other Q4/18 (buybacks) (net) Including FX Impact of Announced Q4/18 Pro- Forma Dispositions • Strong internal capital generation • Reduction mainly due to completed acquisitions in Q4/18 • Decline in market risk RWA and impact of FX • • Repurchased 5 million shares in Q4/18, 8.3 million shares in Fiscal 2018 Expect further 10 bps increase from announced dispositions Scotiabank® 10#11CANADIAN BANKING Solid asset and deposit growth, margin expansion and positive operating leverage4 FINANCIAL PERFORMANCE AND METRICS ($MM)¹ Y/Y YEAR-OVER-YEAR HIGHLIGHTS Q4/18 Q/Q 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 Ratio 2, 3 0.23% (4bps) +2bps PCL Ratio on Impaired Loans2, 3 0.22% (5bps) +1bp . Adjusted4 Expenses $1,705 +5% +4% Net Income $1,146 Productivity Ratio 49.5% (20bps) +7% +70bps ADJUSTED NET INCOME 14 ($MM) AND NIM (%) 2.41% 2.41% 2.43% 2.46% . 2.45% • • Adjusted Net Income up 7%4 o Asset and deposit growth, margin expansion Revenue up 5% 。 Net interest income up 6% Loan growth of 5% 。 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 YEAR-OVER-YEAR HIGHLIGHTS2 FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2 Q4/18 Y/Y Q/Q Reported Adjusted Net Income up 22% 6 Revenue $3,134 +22% Expenses $1,721 PCLS $412 +23% +32% (45%) +11% +15% Net Income $712 +18% +36% Productivity Ratio 54.9% +50bps +200bps Net Interest Margin 4.52% (15bps) (18bps) 。 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% PCL Ratio 1.05% (9bps) (153bps) • PCL Ratio on Impaired Loans³, 4 Adjusted 1.20% +6bps (13bps) Loans up 29% Expenses $1,661 +19% +14% PCLs Net Income Productivity Ratio PCL Ratio 3, 4, 6 $412 $746 53.0% 1.05% +32% +14% +22% +6% (100bps) +130bps (9bps) (18bps) ADJUSTED NET INCOME 16 ($MM) AND NIM³ (%) 4.67% 4.66% 4.74% 4.70% 4.52% · 613 675 683 715 746 o Pacific Alliance loans up 42% NIM down 15 bps 。 Mainly driven by the business mix impact of acquisitions Expenses up 19% 。 Business volume growth, inflation and higher technology costs 。 Full year productivity ratio improvement of 150bps6 Full-year positive operating leverage of 3.1% PCL ratio 3, 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 Scotiabank® 12#13Q4/18 Y/Y Q/Q Revenue $1,073 (1%) Expenses $553 (3%) PCLS ($20) N/A GLOBAL BANKING AND MARKETS Solid loan growth, strong credit quality and lower productivity ratio FINANCIAL PERFORMANCE AND METRICS¹ ($MM) YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income up 6% Loans up 7% o U.S. loans up 13% • (3%) +2% N/A . Net Income $416 +6% (6%) NIM down 16 bps Productivity Ratio 51.5% (80bps) +260bps Net Interest Margin 1.72% PCL Ratio 2, 3 PCL Ratio on Impaired Loans², 3 (16bps) (10bps) (0.09%) (13bps) (4bps) (0.07%) (11bps) (1bp) • 。 Mainly driven by lower deposit and lending margins Expenses down 3% Productivity ratio improved 80 bps PCL ratio² 3 improved by 13 bps o Impaired loan provision reversals in Europe NET INCOME AND ROE 14.9% 391 16.2% 16.9% 15.6% 15.3% 447 441 454 416 Q4/17 Q1/18 1 Attributable to equity holders of the Bank Q2/18 Q3/18 Q4/18 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures Scotiabank® 13#14OTHER SEGMENT NET INCOME² ($MM) -48 56 56 -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 15 Scotiabank® 15#16RISK REVIEW Credit fundamentals remain strong. Stable PCL ratio IAS 39 IFRS 9 PCLs ($MM) AND PCL RATIO ON IMPAIRED LOANS¹ 1, 2, 3 46 bps I 43 bps 42 bps 42 bps 41 bps 637 595 536 564 559 Q3/18 PCL ratio on impaired loans Q4/17 Q1/18 Q2/18 PCLs on impaired loans GILS4, 5, 6 ($B) Q4/18 5.3 5.1 5.1 4.9 5.0 Q4/17 Q1/18 Q2/18 1 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 Q3/18 Q4/18 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 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 ratio 1,2 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 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 $0.2B Scotiabank® 16 16#17PCL RATIOS Stable all-bank PCL ratios on impaired loans IAS 39 ¦ IFRS 9 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 (As a % of Average Net Loans & Acceptance) PCLs on PCLs on Impaired Impaired Loans Loans PCLs on PCLs on Total PCLs on Total PCLs Total Total Impaired Impaired PCLs Impaired PCLS PCLS Loans Loans (adj) Loans Canadian Banking Retail 0.30 0.29 0.28 0.28 0.28 0.25 0.24 0.25 0.25 Commercial 0.07 0.11 0.08 0.09 0.09 (0.04) 0.06 0.06 0.15 Total 0.27 0.27 0.25 0.25 0.25 0.21 0.21 0.22 0.23 Total - Excluding Credit Mark 0.28 N/A N/A N/A N/A N/A N/A N/A N/A Benefits International Banking Retail 2.00 2.28 2.39 2.26 2.16 2.36 2.254 2.38 2.21 Commercial 0.32 0.28 0.201 0.55 0.341 0.38 0.311,4 0.07 (0.06) Total 1.14 1.25² 1.261,2 1.382 1.221,2 1.33 1.234 1.20 1.05 Total - Excluding Credit Mark 1.34 N/A N/A N/A N/A N/A N/A N/A N/A Benefits Global Banking and Markets 0.04 (0.01) (0.04) 0.02 (0.05) (0.06) (0.05) (0.07) (0.09) All Bank 0.42 0.43 0.42 0.46 0.42 0.41 0.40 0.42 0.39 1 Excludes provision for credit losses on debt securities and deposit with banks 2 Not comparable to prior periods, which were net of acquisition benefits 3 On an reported basis; includes impact of Day 1 PCLs from acquisitions Scotiabank® 17 4 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions#18NET WRITE-OFFS Stable net write-off ratio 1 Annualized (As a % of Average Net Loans & Acceptances) 1, 2 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Canadian Banking 0.29% 0.25% 0.26% 0.23% 0.23% International Banking 1.16% 1.38% 1.26% 1.14% 1.24% Global Banking and Markets 0.04% 0.05% 0.08% 2 Net write-offs are net of recoveries (0.03)% All Bank 0.44% 0.46% 0.45% 0.39% 0.45% Scotiabank® 18#19ENERGY EXPOSURE Significantly de-risked energy related exposure Loans and Acceptances Outstanding Energy Exposure ($B) % of Total % of Total Loans and Acceptances Outstanding % Investment Grade 6.6 49% 1.1% 64% Total Exploration and Production 3.4 21% 0.6% 83% Canadian Exploration and Production 1.2 8% 0.2% 88% WCS Exposure 8.2 51% 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 ($1.4 billion) Scotiabank® 19#20APPENDIX Scotiabank® 20 20#21DILUTED EPS RECONCILIATION ($ per share) Q4/18 Diluted EPS Q3/18 Diluted EPS ($ per share) 2018 Diluted EPS ($ 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) ($MM) Acquisition-Related Costs Day 1 PCL on acquired performing financial instruments - International Banking Integration Costs Canadian Banking International Banking Amortization of Intangibles³ Canadian Banking International Banking Total (After-Tax and NCI) 1 May not add due to rounding 2 Excludes amortization of intangibles related to software (pre-tax) 3 Excludes amortization of intangibles related to software (after-tax) Q4/17 Q3/18 Q4/18 404 19 8 12 26 23222 75 28 47 27 14 11 11 13 19 453 102 Q4/17 Q3/18 Q4/18 Tax NCI After-Tax and NCI 176 15 24 21 45 2 7 21 13 14 14 16 7 20 6 9 4 8 7 3 422222 10 10 14 207 28 9 65 Scotiabank® 22#23STABLE CORE BANKING MARGIN 2.46% 2.47% 2.46% 2.47% 2.44% Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 YEAR-OVER-YEAR HIGHLIGHTS • • Change in business mix from the impact of International Banking acquisitions and higher margins in Canadian Banking Lower margins in Global Banking and Markets and lower contribution from asset/liability management activities Scotiabank® 23 23#24CANADIAN BANKING - REVENUE GROWTH AND NIM Good retail and commercial lending revenue growth REVENUE (TEB) ($MM) +5% Y/Y NIM (%) 3,443 2.46% 2.41% 2.41% 2.43% 2.45% 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 1,869 1,946 1,975 +6% Y/Y 1.05% 1.08% 1.10% 1.07% 0.99% Q4/17 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 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 72 73 73 74 +3% 71 Y/Y +7% Y/Y 199 205 206 +3% Y/Y 162 166 170 +5% 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 Scotiabank® 25 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) 1 +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 +20% Y/Y3 2,211 +26% 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 Scotiabank® 26#27INTERNATIONAL BANKING - VOLUME GROWTH Solid loan and deposit growth AVERAGE LOANS & ACCEPTANCES ($B)1 AVERAGE DEPOSITS ($B)¹ 1, 2 +29% Y/Y3,4 144 +34% +17% Y/Y4,5 9 Y/Y4 115 122 23 23 +27% 8 110 Y/Y4 102 7 96 19 41 +17% Y/Y4 18 39 +34% Y/Y4 36 34 32 32 - 9 29 73 +26% Y/Y4 63 56 Q4/17 Business Q3/18 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 62 99 66 Q4/17 Q3/18 Non- Personal Personal 74 +18% Y/Y4 Q4/18 Scotiabank® 27#28INTERNATIONAL BANKING REGIONAL LOAN GROWTH - Strong loan growth in Latin America, largely due to acquisitions AVERAGE LOANS & ACCEPTANCES ($B)1 CONSTANT DOLLAR LOAN VOLUMES, Y/Y +29% Y/Y2,3 144 Retail Commercial4 Total 31 -2% 122 Latin America 47% 35% 41% Y/Y 110 C&CA 0% 31 (4%) (2%) 30 Total 31% 26% 29% 113 +41% Y/Y3 91 80 Q4/17 Latin America Q3/18 Retail Commercial4 Total ex-M&A ex-M&A ex-M&A Latin America 13% 15% 14% C&CA 0% (4%) (2%) Q4/18 Total 9% 10% 10% Caribbean & Central America 1 Y/Y growth rates are on a constant dollar basis 2 Average loans & acceptances growth of 31% Y/Y on a reported basis 3 Includes the impact of acquisitions 4 Excludes bankers acceptances Scotiabank® 28#29GLOBAL BANKING AND MARKETS - REVENUE AND VOLUME GROWTH REVENUE (TEB) ($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 ($B) 19 79 +7% Y/Y 83 80 - 84 Q4/18 Q4/17 Q3/18 Q4/18 Capital markets Scotiabank® 29#30ECONOMIC OUTLOOK IN KEY MARKETS Macro economic growth improving for Pacific Alliance countries . Improving economic growth outlook in 2019 for Canada and the majority of the Pacific Alliance countries Real GDP (Annual % Change) Country 2017 2018F 2019F Canada 3.0 2.1 2.2 U.S. 2.2 2.9 2.4 Mexico 2.0 1.8 2.1 21 Peru 2.5 3.7 4.0 Chile 1.5 3.9 3.2 Colombia 1.8 2.5 3.5 Source: Scotia Economics, as of October 15, 2018 Scotiabank® 30#31SCOTIABANK IN THE PACIFIC ALLIANCE COUNTRIES Well positioned to grow now and in the future • Key Highlights of Pacific Alliance countries (PACS) 6x Canada's population; projected growth outpaces Canada, other EM³ and G7 countries; median age of 29 vs. 42 in Canada Population 1,2 Government Presidential Elections Financial Stability Economy GDP1 Exports5 Trade Partners5 Business Environment HDI Score Rank6 Banking Penetration¹ • No elections expected until 2021 • All sovereign credit ratings in IG category with central banks targeting inflation since 1999 • Ranks as 9th largest economy in the world • Foreign Direct Investment¹ • • Manufacturing is the largest source of exports for the PACS at 64% US, China and Canada are the PACs' largest trading partners, representing 72% of exports • Ranks "High" or "Very High," comparable to Canada and the U.S. Under-banked with average banking penetration at 50% compared to over 90% in Canada and the U.S. FDI averaging 3.2% of GDP compared to 1.7% in Canada and the U.S. Scotiabank Market Share7 Market Share Ranking? Mexico 7.1% 6th Peru 18.2% 3rd Chile 13.8% 3rd Colombia 6.2% 5th PACs (Total/Average) 11.3% 4th Strengths Mortgages and Auto Commercial, Personal and Credit cards Commercial, Credit cards and Mortgages Retail and Credit Cards Well positioned Average Assets³ (C$B) $32.3 $24.0 $32.9 $12.3 $101.5 Revenue³(C$B) $2.2 $2.0 $1.7 $1.3 $7.2 Net Income after NC18,9 (C$B) $0.6 $0.7 $0.4 $0.1 $1.9 ROE 8,9 # of Employees 8,10 26% 13,204 24% 11% 6% 17% 11,032 9,386 9,658 43,280 1 Source: World Bank 2017 2 Population growth: World Bank DataBank 2017-2022 4 Source: The World Factbook, CIA 2017 3 EM countries include: Argentina, Brazil, China, Greece, India, Indonesia, Poland, South Africa, Turkey, and Russia 5 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co-operation and Development (OECD) 2016 6 Source: United Nations Development Programme (UNDP) 2017. For more information, please refer to: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf 7 Total loans market share as of September 2018 8 As of October 31, 2018 or for the fiscal year 2018 9 Earnings adjusted for acquisition-related costs including the Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 10 Employees are reported on a full-time equivalent basis Scotiabank® 31#32PROVISION FOR CREDIT LOSSES IAS 39 ! IFRS 9 I ($MM) Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 PCLs on PCLs on Impaired Impaired Total PCLs on Impaired Total PCLs on Total PCLs on Total PCLS Impaired PCLs Impaired PCLS PCLs Loans Loans Loans Loans (adj.) Loans Canadian Banking I Canadian Retail 210 206 200 193 193 179 174 181 179 I 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 LOANS1,2 IAS 39 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 IFRS 9 ($B) 0 1 2 4 5 GROSS IMPAIRED LOANS1,2,3 6 IAS 39 IFRS 9 1.15% 1.10% 1.05% ༣ 3 1.00% Q4/16 Q1/17 Q2/17 Q3/17 Q417 Q1/18 Q2/18 Q3/18 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 Q418#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 100% 99% 62% 3% PCL3 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 PCLs on Impaired Loans $ millions 6 3 71 99 % of avg. net loans (bps) 1 1 69 69 61 64 55 56 49 56 63 68 70 283 330 PCLS $ millions 0 1 73 % of avg. net loans (bps) 0 0 70 999 67 55 66 68 61 60 51 46 75 292 269 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 Scotiabank® 34#35CANADIAN RESIDENTIAL MORTGAGE PORTFOLIO $107.0 43% Insured $12.2 (Spot Balances as at Q4/18, $B) ●...... Total Portfolio: $213 billion $94.8 $38.6 $9.2 $30.7 $3.6 $15.9 $29.4 $1.8 $11.4 $27.1 $0.2 $9.5 $0.7 $14.1 $11.2 $8.8 57% Ontario BC & Territories Alberta Quebec Atlantic Manitoba & Provinces Saskatchewan Uninsured Freehold $185B Condos $28B Average LTV of uninsured mortgages is 54%¹ | New originations² average LTV of 63% in Q4/18 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions. Scotiabank® 35#36Q4 2018 CANADIAN RESIDENTIAL MORTGAGES Credit fundamentals remain strong NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION GVA 59% Q4/17 Q3/18 Q4/18 Canada Total Originations ($B) 12.9 11.9 10.5 Uninsured LTV 64% 63% 63% GTA 62% GTA BC & Territories Total Originations ($B) Uninsured LTV 3.9 3.6 3.2 63% 62% 62% 61% GVA Atlantic Prairies 67% ON QC Provinces 63% 65% 69% Total Originations ($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 57% 16% 11% 12% 4% < 635 636-706 707-747 748-788 > 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 60 42 86 63 78 85 110 67 % of avg. net loans (bps) 147 151 206 154 145 182 400 443 582 452 PCLS $ millions 45 % of avg. net loans (bps) 101 155 56 56 63 46 46 79 573 84 81 101 633 126 216 169 134 1653 432 421 532 4253 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#39(# of days in quarter) TRADING RESULTS 0 TRADING LOSS DAYS IN Q4/18 Q4/18 TRADING REVENUE AND ONE-DAY TOTAL VAR 14 12 10 00 6 4 2 Millions 25 20 15 10 5 0 -5 -10 -15 Average 1-Day Total VaR Q4/18: $10.5 MM Q3/18: $13.2 MM Q4/17: $10.8 MM плу 0- T T -20 1 3 4 5 6 7 8 9 10 15 20 25 1-day total VaR Actual Daily Revenue Q4/18 Daily Trading Revenues ($MM) Scotiabank® 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