#1Investor Presentation tiabank nium Be SECOND QUARTER 2016 May 31, 2016 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 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 this document); 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 this document; and for each business segment "Outlook". 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 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®#4Q2 2016 Overview ● Good Q2 results¹ . Net income of $1.9 billion • Diluted EPS of $1.46 per share ROE of 14.4% Revenue growth of 10% year-over-year Capital position remains strong at 10.1% Quarterly dividend unchanged at $0.72 per share (1) Excluding restructuring charge of $278 million after-tax ($378 million before-tax) Scotiabank® 4#5Delivering on our key strategic priorities Customer Experience Leadership Low Cost by Design Digital Transformation Business Mix LO 5 Scotiabank®#6tiabank nium Be Financial Review Sean McGuckin Chief Financial Officer Scotiabank#7Q2 2016 Financial Performance $ millions, except EPS Q2/162 Q/Q² Y/Y2 Net Income $1,862 +3% +4% • Diluted EPS $1.46 +2% +3% • Revenues1 $6,647 +2% +10% Expenses $3,439 -4% +7% Productivity Ratio 51.7% -310bps -160bps Core Banking Margin¹ 2.38% +0bps -3bps Dividends Per Common Share +$0.02 +$0.02 • $0.72 $0.70 $0.70 $0.68 $0.68 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Announced dividend increase • Year-over-Year Highlights Diluted EPS growth of 3%² Revenue growth of 10%¹ Solid asset growth across business segments Positive impact of acquisitions Higher banking revenues and net gains. on investment securities, as well as a gain on the sale of a non-core lease financing business Partly offset by lower wealth management, underwriting and advisory and trading revenues Expense growth up 7%² . Excluding the impact of acquisitions, expense growth was up 2% Higher technology and professional fees reflecting the continued investment in technology and efficiency initiatives Quarterly dividend of $0.72 per share (1) Taxable equivalent basis (2) Excluding restructuring charge of $278 million after-tax ($378 million before-tax) 7 Scotiabank®#8Capital - Strong Position Basel III Common Equity Tier 1 (CET1) (%) 10.6 10.4 10.3 10.1 10.1 IIII Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 CET1 Risk-Weighted Assets ($B) · • • Highlights Internal capital generation of $0.6 billion Quarterly dividend of $0.72 is 6% higher than the same quarter last year CET1 risk-weighted assets were down $17 billion Q/Q Impact of a stronger Canadian denominated risk weighted assets . dollar on foreign currency • Basel III Leverage ratio of 4.1% 374 348 358 357 329 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 8 Capital position remains strong Scotiabank®#9Restructuring Initiatives As part of management's strategic efforts to enhance the customer experience, drive a digital transformation and improve productivity, the Bank announced a Q2/16 restructuring charge These initiatives primarily relate to: • Optimizing the branch network in Canadian Banking • Simplifying and optimizing the Bank's organizational structure • Reducing costs to deliver our internal corporate services including technology services These strategic efforts will help the Bank sustain its strength in the marketplace, and better position for long term growth Summary Details Amount of restructuring $278 million after-tax ($378 million before-tax), or $0.23 per share Synergies / Timing Expect annual run-rate savings of -$350 million by 2017, growing to $550 million by 2018 and growing to over $750 million for 2019 • • Approximately 70% in Canadian Banking Net savings of ~5% against the Bank's current expense base Contribute ~200-250 basis points of improvement to the Bank's productivity ratio for 2019 9 Scotiabank®#10Canadian Banking Net Income ($MM) • 977 829 863 875 837 100 Q2/15 Q3/15 Q4/15 Q1/16 877 • Q2/16 Year-over-Year Highlights Net income up 18%, or 6% excluding the gain on sale Loan growth of 3% Ex. Tangerine run-off portfolio, up 5% Double digit growth in credit cards and auto lending Deposits up 7% • Retail chequing was up 9% and savings deposits were up 15% NIM up 12 bps • Higher margin personal lending and margin expansion in deposits • Impact of acquisition Net Interest Margin (%) • Run-off of low spread Tangerine mortgages 2.38 2.35 • PCL loss ratio up 4 bps Gain on sale of a non-core lease financing business Average Assets ($B) 298 301 304 307 307 13 12 10 9 8 285 289 294 298 299 2.26 2.25 2.26 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Tangerine run-off mortgage portfolio (1) Attributable to equity holders of the Bank Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 • Expenses up 4% or 2% excluding acquisition Higher technology and project spending, partially offset by benefits realized from previous cost reduction initiatives Strong volume growth and margin expansion 10 Scotiabank®#11International Banking 1 Net Income ($MM) 485 447 504 505 500 IIII • Year-over-Year Highlights Net Income up 12% • Strong loan, deposit and fee income growth in the Pacific Alliance Strong positive operating leverage • Partly offset by higher PCLS Loans up 13% and deposits up 19% Ex. FX translation, total loans were up 15% (Latin America was up 19%) and total deposits were up 20% NIM up 2 bps Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Average Assets ($B) Net Interest Margin (%) 143 145 135 128 129 4.77 4.67 4.70 4.69 4.57 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 (1) Attributable to equity holders of the Bank 11 PCL loss ratio up 31 bps Driven primarily by commercial provisions, including one account in Colombia Expenses up 11%, or up 6% excluding the impact of F/X translation and acquisitions Business volume and inflationary increases Operating leverage of +3.1% YTD Strong volume growth and positive operating leverage Scotiabank®#12Global Banking and Markets Net Income ($MM) • 449 • 375 366 323 325 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Average Loans² ($B) Net Interest Margin³ (%) 81 84 75 71 70 1.64 1.62 1.60 1.58 1.60 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 (1) (2) (3) Attributable to equity holders of the Bank Average Business & Government Loans & Acceptances Corporate Banking only 12 • • • Year-over-Year Highlights Net Income down 28% Higher PCLS Lower contributions from equities Revenue down 4% Loans up 18% PCLs up 49 bps, driven by a small number of loans in energy Expenses up 6% . Negative impact from FX translation . Higher salaries, technology and regulatory costs Higher PCLs and challenging market conditions Scotiabank®#13(1) (2) (3) Other Segment¹ 2,3 Net Income ($MM) 72 32 117 12 1 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Year-over-Year Highlights 3 Net income was lower because of lower contributions from asset/liability management activities and higher expenses. An increase in the collective allowance against performing loans, was offset by lower post- retirement benefit costs 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 Excluding restructuring charge of $278 million after-tax ($378 million before-tax) in Q2/16 13 Scotiabank®#14tiabank Risk Review Stephen Hart nium Be Chief Risk Officer Scotiabank#15Risk Review . ● . Overall credit fundamentals remain within expectations despite increased provisions on a small number of accounts PCL ratio - Q2/16 should reflect the peak loss rate for the year Excluding the impact of the collective allowance, PCL ratio increased 14 bps Q/Q and 18 bps Y/Y Gross impaired loans of $5.1 billion were relatively stable, up 1% Q/Q • GIL ratio up 3 bps Q/Q Net formations of $982 million was up from $806 million in Q1/16 Market risk remains well-controlled . Average 1-day all-bank VaR of $13.9 million, down from $15.2 million in Q1/16 15 Scotiabank®#16PCL Ratios (Total PCL as a % of Average Net Loans Q2/15 Q3/15 Q4/15 & Acceptances) Q1/16 Q2/16 Canadian Banking Retail 0.25 0.26 0.26 0.28 0.30 Commercial 0.13 0.08 0.15 0.14 0.14 Total 0.24 0.23 0.24 0.26 0.28 Total-Excluding net acquisition benefit 0.24 0.23 0.24 0.28 0.30 International Banking Retail (1) 2.28 2.37 2.18 2.09 2.09 Commercial (1) 0.19 0.26 0.26 0.28 0.97 Total 1.19 1.27 1.17 1.14 1.50 Total - Excluding net acquisition benefit 1.21 1.29 1.24 1.23 1.63 Global Banking and Markets 0.08 0.08 0.14 0.27 0.57 All Bank 0.41 0.42 0.42 (2) 0.45 0.59 (3) (1) (2) (3) Colombia small business portfolio reclassed to Retail from Commercial - prior periods have been restated Excludes collective allowance increase; including collective allowance increase, All Bank PCL ratio was 0.47 Excludes collective allowance increase; including collective allowance increase, All Bank PCL ratio was 0.64 Scotiabank® 16#17Energy Exposures1 Sector Amount (in $B) % PCLs (in $M) Cumulative Q1/15 - Q2/16 PCL ratio² Midstream $3.2 20% ($2) 0% Downstream $2.1 13% $2 0% E&P $9.2 56% $232 2.5% Services $1.8 11% $45 2.5% Total Drawn $16.3 100% $277 1.7% • • Drawn corporate energy exposure declined $1.6 Bn to $16.3 Bn • Approximately 50% investment grade Undrawn commitments of $11.4 Bn, down $2.7 Bn • Approximately 75% investment grade Focus on select non-investment grade E&P and Services accounts • Approximately two-thirds of focus accounts have issued debt ranking below the Bank's senior position Exposures relate to loans and acceptances outstanding as of April 30, 2016 and to undrawn commitments attributed/related to those (1) drawn loans and acceptances. (2) Cumulative PCL ratio calculated as total energy PCLs (Q1/15 - Q2/16) divided by the energy exposure amount in Q2/16. Scotiabank® 17#18tiabank nium Be Appendix Scotiabank#19Diluted EPS Reconciliation ● This quarter included a restructuring charge of $278 million after-tax, or $0.23 per share $ per share Q2/16 Reported Diluted EPS $1.23 Add: Amortization of Intangibles $0.02 Add: Restructuring Charges $0.23 Adjusted Diluted EPS excluding $1.48 Restructuring Charges Scotiabank® 19#20Core Banking Margin (TEB)1 2.41% 2.40% 2.35% 2.38% 2.38% Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 (1) Year-over-year The decline in core banking margin was driven by higher volumes of lower yielding investment securities and lower interest gap profits, partly offset by wider margins in Canadian Banking. Represents net interest income (TEB) as a % of average earning assets excluding bankers acceptances and total average assets relating to the Global Capital Markets business within Global Banking & Markets 20 20 Scotiabank®#21Canadian Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) +10% Average Loans & Acceptances ($ billions) +3%1 Y/Y 37 40 41 Y/Y 67 72 73 -13 9 8 2,977 3,056 2,784 174 179 179 803 788 797 Q2/15 489 503 455 -116 Business Q1/16 Q2/16 ■Personal & credit cards Tangerine mortgage run-off Residential mortgages Average Deposits ($ billions) 1,532 1,671 1,663 +7% Y/Y Q2/15 Q1/16 Q2/16 60 66 65 Wealth ■Commercial 149 155 158 ■Gain on sale of a non-core lease financing business ■Retail Q2/15 (1) Excluding Tangerine run-off portfolio, loans & acceptances increased 5% year-over-year Personal Non-personal Q1/16 Q2/16 Scotiabank® 21#22Canadian Banking - Net Interest Margin 2.35% 2.38% 2.26% 2.25% 2.26% Year-over-Year 1.59% 1.59% 1.60% 1.66% 1.66% 0.92% 0.90% 0.89% 0.92% 0.94% Net Interest Margin was up 12bps, driven primarily from higher earning asset and deposit margin. The positive impact from acquisitions was 6bps. Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Total Canadian Banking Margin -Total Earning Assets Margin Total Deposits Margin Scotiabank® 22 22#23International Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) Average Loans & Acceptances² ($ billions) +13% Y/Y +16% Y/Y 20 2,4501 2,469 25 225 23 27 27 2,131 48 55 55 892 879 751 1,558 1,590 1,380 Q2/15 Q1/16 Q2/16 Business ■Residential mortgages Personal & credit cards Average Deposits³ ($ billions) +19% Y/Y 33 34 29 Q2/15 Q1/16 Q2/16 53 44 53 Net interest income Non-interest revenue (1) Includes $30 million of negative goodwill related to the acquisition of Discount Bank in Uruguay which was entirely offset by integration charges Q2/15 (2) Colombia small business portfolio reclassed to Retail from Commercial commencing in Q1/16 - prior periods have been restated (3) Includes deposits from banks 23 23 Q1/16 Q2/16 Scotiabank® ■Non-personal ■ Personal#24International Banking - Regional Growth Revenues (TEB) ($ millions) +16% Y/Y Average Loans & Acceptances ($ billions) +13% Y/Y 33 33 30 2,4501 2,469 108 102 2,131 63 71 72 106 724 761 623 Q2/15 Q1/16 Latin America ■Caribbean & Central America Q2/16 Constant FX 1,618 1,606 Retail Commercial³ Total 1,402 Loan Volumes 2 Y/Y Latin America4 19% 19% 19% Q2/16 C&CA 8% 1% 5% Q2/15 Q1/16 Asia ■Caribbean & Central America ■Latin America Total 15% 14% 15% (1) Includes $30 million of negative goodwill related to the acquisition of Discount Bank in Uruguay which was entirely offset by integration charges (2) Colombia small business portfolio reclassed to Retail from Commercial commencing in Q1/16 - prior periods have been restated (3) Excludes bankers acceptances (4) Excluding impact of acquisitions - Discount (Uruguay), Cencosud (Chile), Peru Citi, Costa Rica and Panama - and at constant FX, retail volumes were up 13% in Latin America and 3% in C&CA 24 Scotiabank®#25Global Banking and Markets - Revenue & Volume Growth Revenues (TEB) ($ millions) Average Loans & Acceptances ($ billions) -4% Y/Y +18% Y/Y 1,098 1,048 1,058 84 81 71 570 464 512 Q2/15 Q1/16 Q2/16 All-Bank Trading Revenue (TEB, $ millions) 528 584 546 453 437 405 353 348 Q2/15 Q1/16 ■Business Banking Q2/16 ■Capital Markets 45 25 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 (1) 13% on a constant currency basis Scotiabank®#26Economic Outlook in Key Markets Real GDP (Annual % Change) 2000-14 Country 2015 2016F 2017F Avg. Mexico 2.3 2.5 2.4 3.1 Peru 5.4 3.2 3.8 3.6 Chile 4.3 2.1 1.7 2.3 Colombia 4.3 3.1 2.4 3.0 2000-14 2015 2016F 2017F Avg. Canada 2.2 1.2 1.6 2.0 U.S. 1.9 2.4 1.8 2.3 Source: Scotia Economics, as of May 11, 2016 26 26 Scotiabank®#27Provisions for Credit Losses ($ millions) Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Canadian Retail 157 165 166 181 190 Canadian Commercial 12 8 14 13 14 Total Canadian Banking 169 173 180 194 204 Total - Excluding net acquisition benefit 170 174 180 212 221 International Retail 242 262 252 252 250 International Commercial 24 31 32 39 130 Total International Banking 266 293 284 291 380 Total - Excluding net acquisition benefit 269 299 301 315 415 Global Banking and Markets 13 14 27 54 118 All Bank 448 480 491 539 702 All Bank - Excluding net acquisition benefit 452 487 508 581 754 Increase in Collective Allowance 0 0 60 0 50 All Bank 448 480 551 539 752 PCL ratio (bps) - Total PCLS as a % of Average Net Loans & Acceptances Excluding Collective Allowance 41 42 42 45 59 Including Collective Allowance 41 42 47 45 64 Scotiabank® 27 27#28Net Formations of Impaired Loans ($ millions) 1,200 1,000 1 السلام 0 Q2/14 Q3/14 800 600 400 200 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 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. 28 Scotiabank®#29Gross Impaired Loans" ($ billions) 1 5.4 5.1 4.8 4.5 4.2 3.9 3.6 3.3 3.0 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 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. 29 29 1.10% 1.05% 1.00% 0.95% 0.90% 0.85% 0.80% Scotiabank®#30Canadian Banking Retail: Loans and Provisions (Spot Balances as at Q2/16, $ billions) $189.2 Total Portfolio = $260 billion¹; 93% secured² $31.5 $32.6 $6.7 3 Mortgages Lines of Credit Personal Loans Credit Cards % secured 100% 61% 99% 4% PCL Q2/16 Q1/16 Q2/16 Q1/16 Q2/16 Q1/16 Q2/16 Q1/16 $ millions 3 3 48 45 84 79 55 54 % of avg. net loans (bps) 1 1 63 57 106 99 338 334 (1) Includes Tangerine balances of $12 billion (2) 81% secured by real estate; 12% secured by automotive (3) Includes JP Morgan Chase acquisition of $1.3 billion 30 30 Scotiabank®#31Canadian Residential Mortgage Portfolio (Spot Balances as at Q2/16, $ billions) $92.3 $9.6 Total Portfolio: $189 billion Average LTV Insured² Uninsured² of uninsured 62% 38% mortgages is 51%¹ $82.7 $30.9 $30.0 $3.5 $6.0 $15.2 $1.6 $11.9 $24.9 $26.5 $13.6 $11.7 $0.2 $8.8 $8.2 $0.6 Ontario B.C. & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan ■Condos - $21B €23 ■Freehold - $168B LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. In Q2/16, new portfolio insurance transactions converted $26.5 billion of uninsured to insured mortgages. Some figures on bar chart may not add due to rounding. 31#32International Retail Loans and Provisions (Spot Balances as at Q2/16, $ billions¹) $17.8 $1.7 Total Portfolio₁ = $49 billion; 67% secured ■Credit Cards ($5.8B) $4.1 ■Personal Loans ($14.8B) Mortgages ($27.2B) $9.4 $9.0 -$0.5 $1.1 $2.5 $6.7 $2.8 $12.0 $1.1 $4.9 $3.2 $1.4 $6.0 $5.5 $2.2 $2.4 $1.3 C&CA³ Mexico Chile 3 Peru 3 Colombia PCL2 Q2/16 Q1/16 Q2/16 Q1/16 Q2/16 Q1/16 Q2/16 Q1/16 Q2/16 Q1/16 $ millions 42 54 49 56 22 22 71 61 56 49 % of avg. net loans (bps) 95 121 221 242 96 97 440 364 476 432 (1) Total Portfolio includes other smaller portfolios (2) Excludes Uruguay PCLs of approximately $10 million (3) Includes the benefits from Cencosud and Citibank net acquisition benefits, excluding the net acquisition benefits, C&CA's ratio would be 133 bps for Q2/16 (Central America Citi acquisition in Q2/16), Chile's ratio would be 152 bps for Q2/16 and 187 bps for Q1/16 and Peru's ratio would be 457 bps for Q2/16 and 381 bps for Q1/16 Scotiabank® 32#33Q2 2016 Trading Results and One-Day Total VaR Millions 35 30 25 25 20 20 15 10 5 0 -5 Q2 2016 Trading Results and One-Day Total VaR Average 1-Day Total VaR Q2/16: $13.9 MM Q1/16: $15.2 MM Q2/15: $10.5 MM 33 Actual P&L Scotiabank®#349 Q2 2016 Trading Results and One-Day Total VaR (# days) 00 8 7 9 5 4 3 2 1 0 (3) (2) (1) 1 2 3 4 5 6 7 8 9 10 11 12 15 17 23 31 • Three trading loss days in Q2/16 ($ millions) Scotiabank® 34#35FX Movements versus Canadian Dollar Canadian (Appreciation) / Depreciation Currency Q2/16 Q1/16 Q2/15 Q/Q Y/Y Spot U.S. Dollar 0.797 0.713 0.829 -11.7% 3.8% Mexican Peso 13.71 12.94 12.72 -6.0% -7.8% Peruvian Sol 2.608 2.479 2.595 -5.2% -0.5% Colombian Peso 2,273 2,351 1,982 3.3% -14.7% Chilean Peso 526.2 509.0 507.2 -3.4% -3.8% Average U.S. Dollar 0.755 0.729 0.801 -3.5% 5.7% Mexican Peso 13.46 12.57 12.12 -7.1% -11.1% Peruvian Sol 2.565 2.466 2.479 -4.0% -3.5% Colombian Peso 2,376 2,317 2,003 -2.5% -18.6% Chilean Peso 515.2 517.5 497.5 0.4% -3.6% 35 35 Scotiabank®