#1Investor Presentation tiabank nium Be FOURTH QUARTER 2015 December 1, 2015 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 Management's Discussion and Analysis in the Bank's 2015 Annual Report under the headings "Overview - Outlook," for Group Financial Performance "Outlook," for each business segment "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 in receptive markets; 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 (See "Controls and Accounting Policies - Critical accounting estimates" in the Bank's 2015 Annual Report, as 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; consolidation in the Canadian financial services sector; 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 starting on page 66 of the Bank's 2015 Annual Report. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2015 Annual Report under the heading "Overview - Outlook," as updated by quarterly reports; and for each business segment "Outlook". The "Outlook" sections in this document 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 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®#3Overview tiabank nium Be Brian Porter President & Chief Executive Officer Scotiabank®#4Fiscal 2015 Overview Good performance in 2015 . Net income of $7.2 billion • Diluted EPS of $5.67 ROE of 14.6% Revenue growth of 4% year-over-year Capital position remains strong at 10.3% Quarterly dividend raised twice in fiscal 2015, resulting in a 6% increase Scotiabank® 4#5tiabank nium Be Financial Review Sean McGuckin Chief Financial Officer Scotiabank#6Q4 2015 Financial Performance $ millions, except EPS Q4/15 Q/Q Y/Y1 Net Income $1,843 +8% • Diluted EPS $1.45 +10% Revenues² Expenses Productivity Ratio $6,198 $3,286 -1% +4% 53.0% -50bps -30bps -1% +5% Highlights Adjusted diluted EPS growth of 10% Y/Y1 Adjusted revenue growth of 5% Y/Y1 • Solid asset growth in Canadian Banking and International Banking • Core Banking Margin² 2.35% -5bps -4bps • Dividends Per Common Share +$0.02 +$0.02 $0.70 $0.68 $0.68 $0.66 $0.66 Q4/14 . Q1/15 Q2/15 Q3/15 Q4/15 • Announced dividend increase (1) Excludes notable items of $265 million after-tax in Q4/14 - (See Appendix - Notable Items) (2) Taxable equivalent basis 6 Positive impact of FX translation Higher banking fees and wealth management revenues, partly offset by lower contribution from investment banking, and reduced net gains on investment securities Adjusted expenses up 4% Y/Y1 Negative impact of FX translation Technology related expenditures and marketing costs Reorganization costs Partly offset by lower salaries and benefits Adjusted operating leverage of -0.7% in 20151 Scotiabank®#7Capital - Strong Position Basel III Common Equity Tier 1 (CET1) (%) · • 10.8 10.3 10.6 10.4 10.3 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 CET1 Risk-Weighted Assets ($B) . Highlights Internal capital generation of $3.6 billion in fiscal 2015 Repurchased 15.5 million shares in fiscal 2015 Annual dividend payment of $2.72, reflecting a dividend payout ratio of 48% on 2015 earnings CET1 Risk-weighted assets were up $10 billion Q/Q • Retail and business lending 358 348 • 335 Basel III Leverage ratio of 4.2% 329 312 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 7 Capital position remains strong Scotiabank®#8Canadian Banking Reported Net Income ($MM) Adjusted Net Income ($MM) 786 863 837 863 837 759 81 705 Q4/14 Q3/15 1,2 Q4/15 Q4/14 Q3/15 Q4/15 Net after-tax notable item in Q4/14 Average Assets ($B) 295 297 298 301 304 10 16 14 13 12 Reported Net Interest Margin (%) 2.26 2.25 2.26 2.15 2.16 279 283 285 289 294 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Tangerine run-off mortgage portfolio (1) Attributable to equity holders of the Bank • • · Highlights Adjusted net income up 10% Y/Y2 Loan growth of 3% Y/Y Ex. Tangerine run-off portfolio, up 5% Double digit growth in credit cards, auto lending and commercial banking Deposits up 5% Y/Y • • Retail chequing and savings deposit balances up 11% and 14% respectively Small business and commercial banking accounts up 7% NIM up 11 bps Y/Y . Higher spreads in personal lending Run-off of lower spread Tangerine mortgages AUM up 9% Y/Y and AUA up 5% Y/Y Adjusted PCLs were up 3% Y/Y2 Adjusted expenses up 6% Y/Y² Technology investment/project spending Volume and revenue driven growth Positive operating leverage of 2.8% in 20152 Strong volume growth and margin expansion (2) Adjusted for Q4/14 notable items - (See Appendix - Notable Items), along with the CI contribution in 2014 and change in effective tax rate 8 Scotiabank®#9International Banking 1,2 Net Income ($MM) 485 504 447 417 378 74 304 • • Highlights Adjusted Net Income up 33% Y/Y2 Strong asset, deposit and fee income. growth in Latin America • Lower PCLs, positive impact of FX translation and higher contribution from associated corporations Loans up 17% and deposits up 19% Y/Y • Ex. FX translation, total loans were up 10%, while Latin America was up 15% • Q2/15 Q3/15 Q4/15 NIM up 2 bps Y/Y • Q4/14 Q1/15 Net after-tax notable items in Q4/14 Average Assets ($B) 117 120 128 129 135 Lower PCLS Y/Y • Higher acquisition driven retail PCLS were offset by lower commercial PCLS Net Interest Margin (%). Adjusted expenses up 13% Y/Y2 4.77 4.68 4.71 4.67 4.70 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 (1) Attributable to equity holders of the Bank (2) Adjusted for notable items in Q4/14 - (See Appendix - Notable Items) 9 • . Half the increase was due to acquisitions and impact of foreign currency translation Balance due to higher technology investments, increased marketing and inflationary increases Operating leverage of -0.9% in 2015² Strong asset and deposit growth in the Latin America Scotiabank®#10Global Banking and Markets 1,2 Net Income ($MM) 427 48 449 404 375 325 379 • • Highlights Adjusted Net Income down 24% Y/Y2 • • Lower contributions from investment banking and equities Higher level of PCLS Adjusted revenue down 11% Y/Y2 Loan growth of 19% Y/Y NIM down 13 bps Y/Y Q2/15 Q3/15 Q4/15 Q4/14 Q1/15 Net after-tax notable items in Q4/14 • • Lower trade finance volumes in Asia • Margin compression in the U.S., Average Loans³ ($B) 71 70 75 Net Interest Margin (%) 63 65 1.73 1.72 1.64 1.62 1.60 • Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 (1) (2) (3) (4) Attributable to equity holders of the Bank Adjusted for notable items in Q4/14 - (See Appendix - Notable Items) Average Business & Government Loans & Acceptances Corporate Banking only 10 · Europe and Asia Expenses up 2% Y/Y2 • Higher salaries and benefits Technology expenses • Negative impact of FX translation Partly offset by lower performance based compensation Operating leverage of -4.6% in 20152 Soft results reflective of challenging market conditions Scotiabank#11(1) (2) (3) Other Segment¹ 2,3 Net Income ($MM) 117 72 47 43 32 62 (15) Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Net after-tax notable items in Q4/14 Highlights Year-over-year, net income was higher driven by lower expenses • Pension accrual reduction, partly offset by reorganization costs . Increase in collective allowance against performing loans . Higher investment gains and lower tax costs, partly offset by lower interest income and other revenues Includes Group Treasury, smaller operating segments, and other corporate items which are not allocated to a business line. The results primarily reflect the net impact of asset/liability management activities Attributable to equity holders of the Bank Adjusted for notable items in Q4/14 - (See Appendix - Notable Items) 11 Scotiabank®#12tiabank Risk Review Stephen Hart nium Be Chief Risk Officer Scotiabank#13Risk Review . . • ● . Underlying credit fundamentals remain solid PCL ratio - Excluding impact of collective allowance in Q4/15, PCL ratio unchanged at 42 basis points Q/Q Coverage ratio rose to 85% from 84% last quarter, due to increase in collective allowance against performing loans Gross impaired loans of $4.7 billion were unchanged Q/Q, but up 11% Y/Y, mostly due to FX translation GIL ratio down 3bps Q/Q Net formations of $572 million was down from $647 million in Q3/15 Market risk remains well-controlled Average 1-day all-bank VaR of $13.1MM, up from $10.5MM in . Q3/15 13 Scotiabank®#14PCL Ratios (Total PCL as a % of Average Net (1) (2) Loans & Acceptances) Q4/141 Q1/15 Q2/15 Q3/15 Q4/15 Canadian Banking Retail 0.35 0.24 0.25 0.26 0.26 Commercial 0.13 0.12 0.13 0.08 0.15 Total 0.33 0.23 0.24 0.23 0.24 International Banking Retail 2.20 2.41 2.31 2.41 2.21 Commercial 1.08 0.35 0.20 0.26 0.25 Total 1.62 1.33 1.19 1.27 1.17 Total - Excluding Colpatria credit mark 1.89 1.40 1.21 1.30 1.17 Global Banking and Markets 0.02 0.08 0.08 0.08 0.14 All Bank - Excluding Collective 0.532 0.42 0.41 0.42 0.42 All Bank - Including Collective 0.532 0.42 0.41 0.42 0.47 Excluding the impact for accelerated loan write-offs for bankrupt retail accounts of $62 million pre-tax (See Appendix - Notable Items), adjusted Q4/14 All Bank PCL ratio was 0.47 and Total Canadian Banking was 0.24 Excluding the impact of Colpatria credit mark, all-bank PCL ratio was 0.58. 14 Scotiabank®#15Oil and Gas Exposures1 . Drawn corporate Oil and Gas exposure (58% investment grade) is $16.5 billion or 3.5% of our total loan book Upstream • (1) $9.9B Midstream $2.6B Services (11%) Downstream Downstream $2.1B (13%) . Services $1.9B Midstream (16%) Upstream (60%) . Total $16.5B Undrawn commitments of $14.3 billion, of which roughly 75% is investment grade Exposures relate to loans and acceptances outstanding as of October 31, 2015 and to undrawn commitments attributed/related to those drawn loans and acceptances. Scotiabank® 15#162016 Outlook tiabank Brian Porter nium Be President & Chief Executive Officer Scotiabank®#172016 Business Line Outlook Expect continued solid loan growth in 2016 driven by retail mortgages, auto lending, commercial loans and credit cards Canadian Banking International Banking Wealth management is expected to see continued good growth rates in 2016 Higher PCL ratio, reflecting mix, but expect margin to grow faster than PCLs Expense management will continue to be an area of focus Key priorities include: Improve customer experience, enhance business mix, expand Tangerine, grow and diversify Wealth Management and reduce structural costs Momentum of asset growth from 2015 is expected to continue in 2016, with stable margin and credit quality Optimize structure to deliver a strong customer experience and positive operating leverage Focus on building relevance and presence in the Pacific Alliance through combination of organic growth, strategic alliances and partnerships and acquisitions Key priorities include: Improving our retail customer experience, invest in Mexico to drive growth, target higher profitability business across the Pacific Alliance countries and streamline our operational infrastructure Global Banking and Markets Expect improved performance in 2016 driven by a more balanced contribution across our diversified business platform Expect solid growth in corporate loans with stable loan spreads, strong credit quality and modest PCLs. Increased contribution from Latin America as we continue to capitalize on the Bank's strong regional presence. Repositioning Asia to help drive future growth Key priorities include: Enhancing customer focus, leveraging our global footprint, strengthening our data and analytics capabilities, focusing on strategic sectors and improving efficiency and effectiveness 17 Scotiabank®#182016 Outlook . Medium-term financial objectives remain, but ROE metric modified Metric EPS Growth ROE Operating Leverage Capital Medium-term Objectives 5-10% 14%+ Positive Maintain strong ratios 18 Scotiabank®#19tiabank nium Be Appendix Scotiabank#20Core Banking Margin (TEB)1 2.39% 2.41% 2.41% 2.40% 2.35% Quarter-over-quarter The decline in core banking margin was driven by lower asset/liability management activities and the impact of higher volumes of lower yielding deposits with financial institutions Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 (1) Represents net interest income (TEB) as a % of average earning assets excluding bankers acceptances and total average assets relating to the Global Capital Markets business within Global Banking & Markets 20 20 Scotiabank®#21Canadian Banking - Revenue & Volume Growth Adjusted Revenues¹ (TEB) ($ millions) Average Loans & Acceptances ($ billions) +3%2 Y/Y +7% Y/Y 35 39 39 65 68 70 -16 12 10 2,679 2,859 2,872 173 176 178 797 788 767 Q4/14 481 473 436 Business Q3/15 Q4/15 ■Personal & credit cards 1,476 1,581 1,611 Tangerine mortgage run-off Residential mortgages Average Deposits ($ billions) +5% Q4/14 Q3/15 Q4/15 Y/Y 59 60 62 ■Retail ■Commercial Wealth 145 150 154 €2 (1) Adjusted for Cl contribution (2) Excluding Tangerine run-off portfolio, loans & acceptances increased 6% year-over-year 21 Q4/14 Q3/15 Q4/15 Personal Non-personal Scotiabank®#22Canadian Banking - Net Interest Margin 2.26% 2.25% 2.26% 2.15% 2.16% 1.59% 1.59% 1.60% 1.50% 1.47% 0.90% 0.95% 0.92% 0.90% 0.89% Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Total Canadian Banking Margin -Total Earning Assets Margin Total Deposits Margin Year-over-Year Net Interest Margin was up 11bps, driven primarily from higher earning asset margin, partly offset by deposit margin compression. Scotiabank® 22 22#23International Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) Average Loans & Acceptances ($ billions) +17% Y/Y +12% 21 Y/Y 20 18 2,357 24 26 22 2,280 2,1061 44 49 52 847 813 804 Q4/14 Q3/15 Q4/15 Business ■Residential mortgages Personal & credit cards 1,467 1,510 1,302 Average Deposits² ($ billions) +19% Y/Y 30 31 27 Q4/14 Q3/15 Q4/15 39 39 Net interest income ■Non-interest revenue 46 47 Q4/14 ■Non-personal Q3/15 Q4/15 Personal (1) Excluding $47 million pre-tax write-down related to Venezuela in Q4/14 - (See Appendix - Notable items) 23 (2) Includes deposits from banks Scotiabank®#24International Banking - Regional Growth Revenues2 (TEB) ($ millions) +12% Y/Y Average Loans & Acceptances ($ billions) +17% Y/Y 2,357 2,280 90 27 30 31 2,1062 -124 -81 712 57 63 68 664 584 Q4/14 Q3/15 Q4/15 Latin America ■Caribbean & Central America 1,441 1,492 1,555 Constant FX Retail Commercial³ Total Loan Volumes Y/Y Latin America¹ 16% 14% 15% Q4/14 Q3/15 Asia ■Caribbean & Central America Latin America Q4/15 C&CA 2% -5% -1% Total 11% 9% 10% (1) Excluding impact of Cencosud acquisition and at constant FX, retail and total bank volumes were up 12% and 14% respectively (2) Excluding $47 million pre-tax write-down related to Venezuela in Q4/14 -(See Appendix - Notable Items) (3) Excludes bankers acceptances 24 Scotiabank®#25Global Banking and Markets - Revenue & Volume Growth Revenues (TEB) ($ millions) -8% Y/Y Average Loans & Acceptances ($ billions) 1,010 63 929 965 +19% Y/Y 70 75 70 430 444 404 Q4/14 Q3/15 Q4/15 All-Bank Trading Revenue (TEB, $ millions) 580 453 521 526 407 353 348 3071 30 Q4/14 Q3/15 Q4/15 277 ■Business Banking ■Capital Markets 25 45 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 (1) Adjusted for notable items Scotiabank® (See Appendix - Notable Items)#26Global Wealth Management Adjusted Net Income¹ ($ millions) +4% Y/Y Assets Under Management ($ billion) +9% Y/Y 165 183 179 212 195 188 Q4/14 Q3/15 Q4/15 (1) Adjusted for Cl contribution and notable items (See Appendix - Notable Items) 26 26 Q4/14 Q3/15 Q4/15 Assets Under Administration ($ billion) +6% Y/Y 368 396 391 Q4/14 Q3/15 Q4/15 Scotiabank®#27Economic Outlook in Key Markets Real GDP (Annual % Change) 2000-14 Country 2015F 2016F 2017F Avg. Mexico 2.3 2.5 2.8 3.5 Peru 5.4 2.9 3.5 4.4 Chile 4.3 2.1 2.0 3.0 Colombia 4.3 3.0 3.0 3.2 2000-14 2015F 2016F 2017F Avg. Canada 2.2 1.1 1.8 2.3 U.S. 1.9 2.4 2.5 2.7 Source: Scotia Economics, as of November 2, 2015 27 27 Scotiabank®#28Provisions for Credit Losses ($ millions) Q4/141 Q1/15 Q2/15 Q3/15 Q4/15 Canadian Retail 225 154 157 165 166 Canadian Commercial 11 11 12 8 14 Total 236 165 169 173 180 International Retail 218 246 242 262 252 International Commercial 118 39 24 31 32 Total 336 285 266 293 284 Total - Excluding Colpatria credit mark 392 301 270 299 284 Global Banking and Markets 2 13 13 14 27 All Bank 574 463 448 480 491 All Bank - Excluding Colpatria credit mark 630 479 452 486 491 Increase in Collective Allowance 0 0 0 0 60 All Bank 574 463 448 480 551 PCL ratio (bps) - Total PCLs as a % of Average Net Loans & Acceptances Excluding Collective Allowance 53 42 41 42 42 Including Collective Allowance 53 42 41 42 47 (1) Excluding the impact for accelerated loan write-offs for bankrupt retail accounts of $62 million pre-tax (See Appendix - Notable Items), adjusted Q4/14 All Bank PCLs is $512 million and Total Canadian Banking is $174 million. Adjusted All bank PCL ratio is 47bps in Q4/14 Scotiabank® 28#291 Net Formations of Impaired Loans ($ millions) 800 700 600 500 400 300 200 100 0 Scotiabank® Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 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. 29 29#301 Gross Impaired Loans" ($ billions) 4.8 4.5 4.2 3.9 3.6 3.3 3.0 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 GILS as % of Loans & Bas (RHS) GILS (LHS) (1) Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 30 30 1.05% 1.00% 0.95% 0.90% 0.85% 0.80% 0.75% Scotiabank®#31Canadian Banking Retail: Loans and Provisions (Spot Balances as at Q4/15, $ billions) $190.1 Total Portfolio = $258 billion¹; 93% secured² $31.2 $31.8 $5.1 Mortgages Lines of Credit Personal Loans Credit Cards % secured 100% 61% 99% 6% PCL Q4/15 Q3/15 Q4/15 Q3/15 Q4/15 Q3/15 Q4/15 Q3/15 $ millions 4 4 47 46 67 71 48 44 % of avg. net 1 1 60 58 86 96 376 358 loans (bps) (1) Total portfolio includes Tangerine balances of $14 billion and excludes other smaller balances (2) Of total exposure, 82% secured by real estate; 11% secured by automotive 31 Scotiabank®#32Canadian Residential Mortgage Portfolio (1) (2) €2 (Spot Balances as at Q4/15, $ billions) $93.0 $9.5 Total Portfolio: $190 billion Insured Uninsured Average LTV of uninsured 49% 51% mortgages is 53%¹ $83.5 $30.8 $5.8 $30.0 $3.5 $15.3 $1.6 $12.2 $25.0 $26.5 $0.2 $8.8 $0.6 $13.7 $12.0 Ontario B.C. & Territories Alberta Quebec Atlantic Provinces $8.2 Manitoba & Saskatchewan Freehold - $169B Condos - $21B LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. Some figures on bar chart may not add due to rounding 32#33International Retail Loans and Provisions (Spot Balances as at Q4/15, $ billions¹) (2) $17.6 $1.3 Total Portfolio₁ = $47 billion; 68% secured ■Credit Cards ($5.5B) $3.9 ■Personal Loans ($13.7B) ■Mortgages ($27.2B) $9.0 $8.8 $0.5 $1.0 $2.5 $6.7 $12.4 $2.7 $1.1 $4.3 $3.2 $1.6 $6.0 $5.1 $1.4 $2.4 $1.3 C&CA Mexico Chile Peru Colombia PCL2 Q4/15 Q3/15 Q4/15 Q3/15 Q4/15 Q3/15 Q4/15 Q3/15 Q4/15 Q3/15 $ millions 57 39 50 58 31 28 63 54 39 72 % of avg. net loans (bps) 132 97 226 273 145 140 391 366 395 686 (1) Total Portfolio includes other smaller portfolios Excludes Uruguay PCLs of approximately $12 million 33 Scotiabank®#34Q4 2015 Trading Results and One-Day Total VaR ($ millions) Q4 2015 Trading Results and One-Day Total VaR 30 Millions 1-Day Total VaR Actual P&L 25 20 15 10 5 0 -5 -10 -15 -20 ли Average 1-Day Total VaR Q4/15: $13.1 MM Q3/15: $10.5 MM Q4/14: $23.8MM 34 Scotiabank®#35Q4 2015 Trading Results and One-Day Total VaR (# days) 14 12 10 8 6 4 2 -6 · HI -5 -4 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 16 5 trading loss days in Q4/15 35 35 17 23 26 ($ millions) Scotiabank®#36Notable Items in Fiscal 2014 ($MM) Pre-tax After-tax EPS Impact Q4/14 Restructuring charges (148) (110) ($0.09) Provisions for credit losses Unsecured bankrupt retail accounts in Canada (62) (46) Valuation adjustments Funding valuation adjustment (30) (22) Revaluation of monetary assets in Venezuela (47) (47) Legal provisions (55) (40) Total - Q4/14 Notable items (342) (265) ($0.22) Q3/14 Notable gain on sale of investment $643 $555 $0.45 Total $301 $290 $0.23 Canadian Banking 453 International Banking (74) Global Banking & Markets (27) Other (62) 36 Scotiabank®#37FX Movements versus Canadian Dollar Canadian (Appreciation) / Depreciation Currency Q4/15 Q3/15 Q4/14 Q/Q Y/Y Spot U.S. Dollar 0.765 0.765 0.887 0.0% 13.8% Mexican Peso 12.63 12.32 11.95 -2.5% -5.7% Peruvian Sol 2.514 2.437 2.592 -3.2% 3.0% Colombian Peso 2,217 2,191 1,829 -1.2% -21.2% Chilean Peso 528.3 515.9 510.7 -2.4% -3.5% Average U.S. Dollar 0.760 0.803 0.905 5.3% 16.0% Mexican Peso 12.65 12.50 12.02 -1.3% -5.2% Peruvian Sol 2.456 2.539 2.589 3.3% 5.1% Colombian Peso 2,284 2,071 1,787 -10.3% -27.8% Chilean Peso 522.4 505.6 531.5 -3.3% 1.7% 37 Scotiabank®