#1INVESTOR PRESENTATION SECOND QUARTER 2018 May 29, 2018 Scotiabank®#2CAUTION REGARDING FORWARD-LOOKING STATEMENTS Our public communications often include oral or written 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#4Q2 2018 OVERVIEW • Solid operating performance in Q2 。 Net income of $2.2 billion 。 Diluted EPS of $1.70 per share o ROE of 14.9% 。 YTD operating leverage of 3.3%1 Strong performance across Personal & Commercial banking businesses Capital position remains strong 。 CET1 ratio of 12.0% 1 Excludes the employee benefits re-measurement credit of $150 million after-tax ($203 million pre-tax) and $0.12 per share reported in Q1/18 Scotiabank® | 4#5FINANCIAL REVIEW Sean McGuckin Chief Financial Officer Scotiabank® 5#6Q2 2018 FINANCIAL PERFORMANCE Strong results with solid top line growth and expense management $MM, except EPS Q2/18 Y/Y Q/Q Net Income $2,177 +6% (7%) • Diluted EPS $1.70 +5% (9%) • Revenue $7,058 +7% Expenses $3,726 +3% +7% Productivity Ratio 52.8% (190bps) +350bps Core Banking Margin 2.47% (7bps) +1bp PCL Ratio 1, 2 42bps (7bps) PCL Ratio on Impaired Loans 1, 2 46bps (3bps) +3bps • DIVIDENDS PER COMMON SHARE 0.03 0.03 . 0.76 0.76 0.79 0.79 0.82 Q2/17 Q3/17 ■Announced Dividend Increase Q4/17 Q1/18 Q2/18 • YEAR-OVER-YEAR HIGHLIGHTS Diluted EPS grew 5% Revenue up 7% 。 Net interest income up 6% from strong volume growth partially offset by lower margins 。 Non interest income up 9% due to higher equities trading and income from investments in associated corporations 。 Lower real estate gains offset by Alignment of reporting period³ Expenses up 3% o Higher salaries and employee related costs, continued investments in technology and marketing 。 Cost reduction initiatives and HollisWealth sale 。 Strong positive operating leverage PCL ratio 1,2 on impaired loans improved by 3 bps to 46 bps Effective tax rate increased to 22.2% from 13.9% o Higher amounts of tax-exempt dividends related to client driven equity trading activity last year Scotiabank® | 6 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Alignment of reporting period relates to the benefit of recognizing an additional month of income from the alignment of reporting periods of Chile and Canadian insurance business with the bank#7STRONG CAPITAL POSITION CET1 ratio of 12.0% 11.2% +50 bps +28 bps -9 bps +4 bps 12.0% Q1/18 Impact of Moving to Basel II Floor Internal Capital Generation RWA Growth (ex. FX) Other Including FX Q2/18 Strong CET1 ratio • Strong internal capital generation • Benefits from implementation of Basel II capital floor Scotiabank® | 7#8CANADIAN BANKING Strong loan growth, margin expansion and improved credit performance FINANCIAL PERFORMANCE AND METRICS ($MM)1 YEAR-OVER-YEAR HIGHLIGHTS Q2/18 Y/Y Q/Q Net income up 5% or 7%4 Revenue $3,231 +3% (2%) Expenses $1,641 +3% +2% PCLS $205 (13%) (2%) • Net Income $1,017 +5% (8%) Productivity Ratio 50.8% (10bps) +220bps Net Interest Margin 2.43% +5bps +2bps PCL Ratio2, 3 0.25% (6bps) PCL Ratio 0.25% on Impaired Loans², 3 (6bps) (2bps) • NET INCOME¹ ($MM) AND NIM (%) 2.41% 2.41% 2.43% 2.41% 2.38% 971 1,045 1,067 1,102 1,017 • 。 Asset growth and margin expansion o Lower provision for credit losses Revenue up 3% 。 Net interest income up 8% Loan growth of 7% ○ Residential mortgages up 6% Business loans up 14% NIM up 5 bps 。 Rising rate environment and business mix PCL ratio², 3 on impaired loans improved by 6 bps Expenses up 3% o Higher investments in technology, digital and regulatory initiatives Positive YTD operating leverage Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 • YTD productivity improvement of 130 bps 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 Lower real estate gains impacted earnings by 5%, which was partially offset by the 3% benefit of additional earnings from the Alignment of reporting period of Canadian Insurance with the bank Scotiabank® | 8#9INTERNATIONAL BANKING Strong quarter driven by continued earnings momentum in Pacific Alliance FINANCIAL PERFORMANCE & METRICS ($MM) 1,2 YEAR-OVER-YEAR HIGHLIGHTS2 Net Income up 15%6 。 Strong asset and deposit growth in Pacific Alliance o Increased contribution from affiliates 。 Lower tax rate Revenue up 7% Q2/18 Y/Y Q/Q Revenue $2,742 +7% (1%) Expenses $1,438 +5% (2%) PCLs $340 (4%) Net Income $675 +15% . Productivity Ratio 52.5% (80bps) (80bps) Net Interest Margin 4.74% (26bps) +8bps • Loans up 11% PCL Ratio³, 4 1.22% (11bps) (4bps) PCL Ratio • 1.38% on Impaired Loans³, 4 +5bps +13bps NET INCOME 1,5 ($MM) AND NIM5 (%) 5.00% 4.77% 4.67% • 4.66% 4.74% 667 675 • 595 614 605 • o Pacific Alliance up 11% o Pacific Alliance strong loan growth up 16% PCL ratio³, 4 on impaired loans up 5 bps 。 Mainly related to one previously impaired account impacted by the hurricane related events in Puerto Rico Expenses up 5% 。 Business volume growth, inflation and higher technology costs partly offset by cost-reduction initiatives Positive YTD operating leverage YTD productivity improvement of 140 bps Q2/17 Q3/17 1 Attributable to equity holders of the Bank Q4/17 Q1/18 Q2/18 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 6 The benefit from the Alignment of reporting period of Chile with the bank contributed 4% to the net income growth Scotiabank® | 9#10GLOBAL BANKING AND MARKETS Good net interest income growth and improvement in credit quality FINANCIAL PERFORMANCE AND METRICS¹ ($MM) Q2/18 Y/Y Q/Q Revenue $1,155 (4%) (3%) Expenses $565 +13% (1%) PCLS ($11) N/A N/A Net Income $447 (14%) (2%) Productivity Ratio 48.9% +720bps +80bps • Net Interest Margin 1.80% +5bps (23bps) PCL Ratio2, 3 (0.05%) (6bps) (1bp) • PCL Ratio 0.02% +1bp +3bps on Impaired Loans², 3 YEAR-OVER-YEAR HIGHLIGHTS Net Income down 14% 。 Lower income from global equities (higher client driven equity trading last year), lower fixed income and investment banking results and higher expenses o Higher foreign exchange and corporate banking results and lower PCLS PCL ratio², 3 improved by 6 bps o Improved credit quality Expenses up 13% 。 Higher regulatory costs and technology investments NET INCOME¹ AND TRADING INCOME4 ($MM) 455 411 382 517 441 Q2/17 Q3/17 372 454 216 447 391 Q4/17 Q1/18 Q2/18 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® | 10#11OTHER SEGMENT1 Results reflect positive impact of FX and lower expenses NET INCOME² ($MM) -48 -55 -86 56 -32 • YEAR-OVER-YEAR HIGHLIGHTS Positive impact of FX (including hedges) and lower expenses Partly offset by lower gains on investment securities Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 1 Represents smaller operating segments including Group Treasury and corporate adjustments 2 Attributable to equity holders of the Bank Scotiabank® | 11#12RISK REVIEW Daniel Moore Chief Risk Officer Scotiabank® 12#13RISK REVIEW Credit fundamentals remain strong IAS 39 IFRS 9 PCLs ($MM) AND PCL RATIO ON IMPAIRED LOANS1, 2 49 bps 45 bps I 43 bps 46 bps 42 bps 587 573 536 564 595 Q2/17 Q3/17 PCLs on impaired loans GILS³, 4 ($B) Q4/17 Q1/18 PCL ratio on impaired loans Q2/18 5.4 4.9 4.9 5.0 5.1 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 . • YEAR-OVER-YEAR HIGHLIGHTS PCLs1,2 on impaired loans of $595 million were up 5% Q/Q and 1% Y/Y 。 PCLs increased due to higher International commercial provisions, mainly related to one previously impaired account impacted by the hurricane related events in Puerto Rico o Lower provisions in Canadian retail PCL ratio1, 2 on impaired loans was up 3 bps Q/Q and down 3 bps Y/Y • PCL ratio 1, 2 was 42 bps, flat Q/Q 。 PCLs on performing loans were lower by $41 million versus last quarter as provisions previously recorded for performing loans related to hurricanes in the Caribbean were offset by the increase in impaired loan provisions as discussed above. 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 ⑤Scotiabank® | 13#14Q2 2018 CANADIAN RESIDENTIAL MORTGAGES Credit fundamentals remain strong FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO Average FICO® Score Canada 787 GTA 789 GVA 792 16% 11% 12% 4% 56% • <0.7% of uninsured portfolio has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $111.9 billion as at Q2/2018 < 635 636-706 707-747 748-788 > 788 TOTAL ORIGINATIONS Q2/18 Q1/18 Q2/17 Canada Originations ($B) 8.9 10.3 9.0 LTV 67% 67% 67% GTA Originations ($B) 2.8 3.4 2.9 LTV 64% 64% 63% GVA Originations ($B) 1.2 1.5 1.1 LTV 61% 62% 62% FICO is a registered trademark of Fair Isaac Corporation NEW ORIGINATIONS UNINSURED LTV DISTRIBUTION BC & Territories 61% GVA 59% GTA 62% Prairies 67% Atlantic Provinces ON QC 65% 69% 63% Scotiabank | 14#15PCL RATIOS Stable all-bank PCL ratios on impaired loans IAS 39 IFRS 9 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 PCLs on PCLs on (As a % of Total Total PCLs on Impaired Loans Impaired Impaired Average Net Loans & Acceptance) PCLs PCLs Loans Loans Canadian Banking Retail 0.34 0.31 0.30 0.29 0.28 0.28 0.28 Commercial 0.14 0.09 0.07 0.11 0.08 0.09 0.09 Total 0.31 0.28 0.27 0.27 0.25 0.25 0.25 Total Excluding Net Acquisition Benefit 0.32 0.29 0.28 N/A N/A N/A N/A International Banking Retail 2.19 2.08 2.00 2.28 2.39 2.26 2.16 Commercial 0.51 0.31 0.32 0.28 0.201 0.55 0.341 Total 1.33 1.16 1.14 1.25² 1.261,2 1.382 1.221,2 Total - Excluding Net Acquisition Benefit 1.45 1.27 1.34 N/A N/A N/A N/A Global Banking and Markets 0.01 0.11 0.04 (0.01) (0.04) 0.02 (0.05) All Bank 0.49 0.45 0.42 0.43 0.42 0.46 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 ⑤Scotiabank® | 15#16NET WRITE-OFFS Stable net write-off ratio and economic performance 1 Annualized Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 (As a % of Average Net Loans & Acceptance)1 Canadian Banking 0.34% 0.32% 0.29% 0.25% 0.26% International Banking 1.33% 1.43% 1.16% 1.38% 1.26% Global Banking and Markets 0.19% 0.18% 0.04% 0.05% 0.08% All Bank 0.53% 0.54% 0.44% 0.46% 0.45% Scotiabank® | 16#17APPENDIX Scotiabank® 17#18DILUTED EPS RECONCILIATION Q2/18 Reported Diluted EPS $1.70 Add: Amortization of Acquisition Related Intangible Assets, Excluding Software (after-tax) $0.01 Adjusted Diluted EPS $1.71 Scotiabank® | 18#19CORE BANKING MARGIN 2.54% 2.46% 2.46% 2.44% 2.47% YEAR-OVER-YEAR HIGHLIGHTS Lower margins in International Banking and higher volumes of low margin Treasury assets Partly offset by higher margins in Canadian Banking given impact of recent rate increases by the Bank of Canada Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Scotiabank® | 19#20CANADIAN BANKING - REVENUE GROWTH AND NIM Good retail and commercial lending revenue growth REVENUE (TEB) ($MM) +3% Y/Y NIM (%) 2.38% 2.41% 2.41% 2.41% 2.43% 3,303 3,231 3,134 804 766 835 1.65% 1.68% 1.66% 1.63% 1.64% 579 558 528 1,920 1,771 1,907 Q2/17 1.05% 1.08% 0.97% 0.96% 0.99% Q1/18 Q2/18 Q2/17 Q3/17 Q4/17 Q1/18 Retail Commercial Wealth Total Canadian Banking Margin Total Earning Asset Margin Q2/18 Total Deposits Margin Scotiabank® | 20#21CANADIAN BANKING - VOLUME GROWTH Strong business and residential mortgage growth, and continue to grow retail deposits AVERAGE LOANS & ACCEPTANCES ($B)1 AVERAGE DEPOSITS ($B)1 +7% Y/Y 329 333 312 44 68 88 +3% Y/Y 236 237 231 49 50 7 7 73 73 69 7 72 71 74 162 163 192 202 204 164 Q2/17 Q1/18 Residential mortgages Personal Loans Credit Cards 1 May not add due to rounding Q2/18 Business Q2/17 Personal Q1/18 Q2/18 Non-personal Scotiabank® | 21#22INTERNATIONAL BANKING - REVENUE GROWTH Strong revenue growth in Pacific Alliance BY TYPE (TEB) ($MM)1 BY REGION (TEB) ($MM)1 +7% Y/Y2 2,704 2,742 2,618 +7% Y/Y2 2,704 2,742 +21% 2,618 119 140 Y/Y 110 984 +10% 749 729 -1% 905 997 774 Y/Y Y/Y 1,713 1,707 1,758 +5% Y/Y +9% 1,836 1,873 1,734 Y/Y Q2/17 Net interest income Q2/18 Q1/18 Q2/18 Q2/17 Q1/18 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 ⑤Scotiabank® | 22#23INTERNATIONAL BANKING - VOLUME GROWTH Solid loan and deposits growth AVERAGE LOANS & ACCEPTANCES ($B)1 AVERAGE DEPOSITS ($B) 1, 2 +11% Y/Y3 +8% Y/Y4 119 +15% 101 113 8 96 Y/Y 90 96 109 7 7 19 +10% +6% 36 19 18 Y/Y 35 35 Y/Y 9 29 55 555 Q2/17 Business 31 30 0 44 57 Q1/18 +9% Y/Y 99 61 +12% Y/Y 61 61 Q2/18 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 9% Y/Y on a reported basis 4 Average deposits growth of 5% Y/Y on a reported basis Q2/17 Q1/18 Non- Personal Personal 65 55 Q2/18 +9% Y/Y ⑤Scotiabank® | 23#24INTERNATIONAL BANKING - REGIONAL LOAN GROWTH Strong loan growth in Latin America AVERAGE LOANS & ACCEPTANCES ($B)1 CONSTANT DOLLAR LOAN VOLUMES, Y/Y +11% Y/Y2 119 113 109 31 -1% Y/Y 31 32 32 77 Q2/17 Latin America Retail Commercial³ Total Latin America 14% 17% 16% C&CA 1% (3%) (1%) +16% Y/Y 62 88 Total 10% 12% 11% 82 Q1/18 Q2/18 Caribbean & Central America 1 Y/Y growth rates are on a constant dollar basis 2 Average loans & acceptances growth of 9% Y/Y on a reported basis 3 Excludes bankers acceptances 6 Scotiabank® | 24#25GLOBAL BANKING AND MARKETS - REVENUE AND VOLUME GROWTH REVENUE (TEB) ($MM) -4% Y/Y 1,203 1,190 1,155 533 612 542 657 591 613 Q2/17 Business banking Q1/18 AVERAGE BUSINESS AND GOVERNMENT LOANS & ACCEPTANCES ($B) Y/Y III 80 80 80 Q2/18 Q2/17 Q1/18 Capital markets Q2/18 ⑤Scotiabank® | 25#26ECONOMIC OUTLOOK IN KEY MARKETS Macro economic growth improving for Pacific Alliance countries Real GDP (Annual % Change) Country 2000-16 Avg. 2016 2017 2018F 2019F Mexico 2.2 2.9 2.0 2.3 2.8 Peru 5.1 3.9 2.5 3.3 3.7 Chile 4.0 1.2 1.5 3.6 3.9 Colombia 4.1 2.1 1.8 2.5 3.5 2000-16 Avg. 2016 2017 2018F 2019F Canada 2.1 1.4 3.0 2.2 2.1 U.S. 1.9 1.5 2.3 2.6 2.4 Source: Scotia Economics, as of May 3, 2018 ⑤Scotiabank® | 26#27PROVISION FOR CREDIT LOSSES | IAS 39 IFRS 9 ($MM) Q2/17 Q3/17 Q4/17 Q1/18 PCLs on Q1/18 Q2/18 Q2/18 PCLs on Total Total PCLs on Impaired Loans Impaired Loans Impaired PCLs PCLs Loans Canadian Banking Canadian Retail 220 214 210 206 200 193 193 Canadian Commercial 16 10 8 14 10 11 12 Total Canadian Banking 236 224 218 220 210 204 205 - Total Excluding net acquisition benefit 247 232 224 N/A N/A N/A N/A International Banking International Retail 280 280 265 306 320 308 294 International Commercial 69 45 45 40 241 80 461 Total 349 325 310 3462 3441,2 3882 3401,2 Total - Excluding net acquisition benefit 380 355 365 N/A N/A N/A N/A Global Banking and Markets 2 24 8 (2) (9) 3 (11) Other (1)1 All Bank 587 573 536 564 544 595 534 1 Includes provision for credit losses on debt securities and deposit with banks of -$4 million (Q1/18: -$5 million) in International Banking and $Nil (Q1/18: -$1 million) in Other 2 Not comparable to periods prior to Q1/18, which were net of acquisition benefits Scotiabank® | 27#28($MM) NET FORMATIONS OF IMPAIRED LOANS1, 2 1200 1000 800 600 400 200 IAS 39 IFRS 9 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 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 Scotiabank® | 28#29($B) 6 5 4 3 2 1 GROSS IMPAIRED LOANS1, 2 IAS 39 I IFRS 9 1.15% 1.10% 1.05% 1.00% 0.95% 0.90% 0.85% 0 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 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® | 29#30CANADIAN RETAIL: LOANS AND PROVISION (Spot Balances as at Q2/18, $B) $209.9 Total Portfolio: $288 billion1; 93% secured² $33.3 $37.5 $7.0 Mortgages Lines of Credit Personal Loans4 Credit Cards % secured PCL3 100% 62% 99% 3% Q2/18 Q1/18 Q2/18 Q1/18 Q2/18 Q1/18 Q2/18 Q1/18 PCLs on Impaired Loans $ millions 4 0 59 % of avg. net loans (bps) 1 0 78 28 89 55 39 62 85 68 66 72 64 93 431 402 PCLS $ millions 9 2 59 68 66 77 59 59 53 % of avg. net loans (bps) 2 0 77 90 69 84 370 326 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 4 99% are automotive loans ⑤Scotiabank® | 30#31INTERNATIONAL RETAIL: LOANS AND PROVISION Total Portfolio1: $59 billion; 67% secured (Spot Balances as at Q2/18, $B1) $18.1 $1.8 $14.1 $4.5 $2.1 $11.4 -$0.6 $3.8 Mortgages ($32.8B) $3.2 $8.1 Personal loans ($17.5B) $1.5 $6.4 Credit cards ($7.8B) $11.8 $1.8 $3.8 $8.2 $7.6 $2.2 $2.8 $2.4 PCL2 PCLs on Impaired Loans C&CA Mexico Chile Peru Colombia Q2/18 Q1/18 Q2/18 Q1/18 Q2/18 Q1/18 Q2/18 Q1/18 Q2/18 Q1/18 $ millions 43 61 50 44 48 50 84 ळ 67 70 72 % of avg. net loans (bps) 101 140 188 171 145 160 470 374 491 533 PCLS $ millions 27 65 % of avg. net loans (bps) 64 150 1555 49 49 49 57 40 51 82 88 73 68 71 184 191 170 162 462 405 478 527 1 Total Portfolio includes other smaller portfolios 2 2018 amounts are based on IFRS 9 Scotiabank | 31#32CANADIAN RESIDENTIAL MORTGAGE PORTFOLIO 47% Insured $104.4 $11.6 Total Portfolio: $210 billion $92.8 $37.6 $8.6 $30.9 $3.6 $15.9 $29.0 $1.7 $27.3 $11.6 $0.2 $9.5 $0.7 $14.2 $11.4 $8.8 53% Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan Uninsured Freehold $184B Condos $26B (Spot Balances as at Q2/18, $B) Average LTV of uninsured mortgages is 54%¹ New originations² average LTV of 63% in Q2/18 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions Scotiabank® | 32#33RETAIL 90+ DAYS PAST DUE LOANS Favourable credit quality across all markets and products Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Mortgages 0.23% 0.22% 0.21% 0.20% 0.19% Personal Loans 0.70% 0.61% 0.60% 0.63% 0.57% Credit Cards 1.30% 1.05% 1.13% 1.18% 1.08% Secured and Unsecured Lines of Credit 0.37% 0.30% 0.28% 0.30% 0.30% CANADA 0.33% 0.30% 0.29% 0.29% 0.27% Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Mortgages 3.78% 3.69% 3.83% 3.82% 3.70% Personal Loans 3.68% 3.65% 3.52% 3.68% 3.64% Credit Cards 3.05% 3.24% 3.09% 3.02% 2.87% TOTAL INTERNATIONAL 3.64% 3.61% 3.62% 3.66% 3.56% Scotiabank® 33 33#34Q2 2018 TRADING RESULTS Zero trading loss day(s) in Q2/18 14 12 10 (# of days in quarter) 6 4 2 ....... 0 1 3 4 5 9 7 Q2/18 Daily Trading Revenues ($MM) 9 10 13 15 20 30 ⑤Scotiabank® | 34#35Q2 2018 TRADING RESULTS AND ONE-DAY TOTAL VAR Millions 40 40 Average 1-Day Total VaR Q2/18: $14.7 MM Q1/18: $13.2 MM Q2/17: $11.1 MM 30 20 20 10 10 0 -10 -20 -30 л гил 1-day total VaR Actual Daily Revenue Scotiabank® 35#36FX MOVEMENTS VERSUS CANADIAN DOLLAR Canadian (Appreciation) / Depreciation Currency Q2/18 Q1/18 Q2/17 Q/Q Y/Y SPOT U.S. Dollar 0.779 0.813 0.733 4.2% (6.3%) Mexican Peso 14.56 15.13 13.79 3.8% (5.6%) Peruvian Sol 2.534 2.615 2.376 3.1% (6.6%) Colombian Peso 2,188 2,301 2,155 4.9% (1.5%) Chilean Peso 477.7 490.1 488.4 2.5% 2.2% AVERAGE U.S. Dollar 0.784 0.791 0.751 0.8% (4.4%) Mexican Peso 14.54 15.04 14.59 3.3% 0.3% Peruvian Sol 2.543 2.558 2.447 0.6% (3.9%) Colombian Peso 2,216 2,336 2,179 5.1% (1.7%) Chilean Peso 471.2 495.0 491.2 4.6% 4.1% Scotiabank® 36#37INVESTOR RELATIONS CONTACT INFORMATION Adam Borgatti, Vice President 416-866-5042 [email protected] Lemar Persaud, Director 416-866-6124 [email protected] Judy Lai, Director 416-775-0485 [email protected] Scotiabank® | 37 36