#1Investor Presentation First Quarter 2020 February 25, 2020 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 2019 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 2019 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 2019 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. 2#3Summary Brian Porter President & CEO Good start to the year Balanced performance across business lines Repositioning substantially complete; acquisitions are integrated Strong asset quality 3#4Q1/20 Overview Raj Viswanathan Group Head & CFO Strong performance against medium- term objectives: • ● • Adjusted EPS growth of 5% Strong ROE of 13.9% Positive operating leverage of 1.3% Strong capital ratios 4#5Q1 2020 Financial Performance Strong revenue growth and positive operating leverage $MM, except EPS Q1/20 Y/Y Q/Q Reported • Net Income $2,326 +4% +1% Pre-Tax, Pre Provision Profit $3,723 +8% +2% Diluted EPS $1.84 +8% +6% Revenue $8,141 +7% +2% Expenses $4,418 +6% +2% Productivity Ratio 54.3% (60 bps) +20 bps Core Banking Margin 2.45% PCL Ratio¹ 61 bps +14 bps +5bps +11 bps • PCL Ratio on Impaired Loans¹ 55 bps +8 bps +6 bps YEAR-OVER-YEAR HIGHLIGHTS Adjusted EPS growth up 5%² Adjusted Net Income up 2%2 ○ Excluding divestitures net income grew by 8%2 O Pre-tax, pre-provision profit (PTPP) up 7%² Adjusted Revenue up 5%² О Net interest income up 3% Non-interest income up 8%2 Adjusted Expense growth of 4%² Adjusted Operating leverage of +1.3%² Adjusted² Net Income $2,344 +2% (2%) Pre-Tax, Pre Provision Profit $3,724 +7% (1%) Diluted EPS $1.83 +5% +1% ADJUSTED NET INCOME³ BY BUSINESS SEGMENT ($MM) Revenue $7,989 +5% Expenses $4,265 +4% +2% +5% Y/Y -17% Y/Y4 Productivity Ratio 53.4% (70 bps) +70 bps +35% +11% PCL Ratio¹ 51 bps +4 bps +1 bp Y/Y Y/Y PCL Ratio on Impaired Loans¹ 53 bps +6 bps +4 bps 865 908 743 615 451 286 318 335 CB IB GWM GBM ■ Q1/19 ■ Q1/20 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Refer to Non-GAAP Measures on Slide 36 for adjusted results 3 After non-controlling interest 4Y/Y growth rate is on a constant dollars basis 5#6Strong Capital Position CET1 remains strong; CET1 ratio of 11.4% • · 11.1% +26 bps -19 bps -6 bps -6 bps -18 bps +4 bps +49 bps 11.4% Q4/19 Reported Earnings Less Dividends RWA Growth (ex. FX) Share Buybacks (Net of Issuances) Pension Regulatory Changes Other (net) Non-core Divestitures 1 Q1/20 Reported Internal capital generation Strong capital generation from earnings. Good organic RWA growth Repurchased 3.6 million common shares in Q1 2020 1 Includes the Bank's operations in Puerto Rico, US Virgin Islands, El Salvador, Colfondos, and Thanachart Bank 6#7Canadian Banking $MM Q1/20 Y/Y Q/Q • Reported Net Income¹ $852 (1%) (5%) Pre-Tax, Pre Provision Profit $1,474 +6% +1% Revenue $2,707 +5% +1% • Expenses $1,233 +4% +1% PCLs $321 +39% +30% Productivity Ratio 45.6% (30 bps) +20 bps Net Interest Margin 2.36% (3 bps) (5 bps) • PCL Ratio² 0.36% +8 bps +8 bps PCL Ratio Impaired Loans² 0.30% +2 bps +1 bp Adjusted³ . Net Income¹ $908 +5% +1% Pre-Tax, Pre Provision Profit $1,479 +5% +1% • Expenses $1,228 +4% +1% YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 5%³ o Solid volume growth and higher fee income offsetting margin pressure o Stable PCL ratio Revenue up 5% 。 Net interest income up 4% o Non-interest income up 7% Loan growth of 6% o Residential mortgages up 5%; credit cards up 5% o Business loans up 12% Deposit growth of 5% o Personal up 5%; Non-Personal up 6% NIM down 3 bps • PCLS $250 +8% +1% Positive operating leverage of +0.9%³ • Productivity Ratio 45.4% (30 bps) +20 bps PCL Ratio² 0.28% Improved productivity ratio 1,3 ADJUSTED NET INCOME ¹³ ($MM) AND NIM (%) PCL Ratio Impaired Loans² 0.29% +1 bp 2.44% 2.39% 2.40% 2.41% 2.36% 1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Refer to Non-GAAP Measures on Slide 36 for adjusted results 865 823 914 902 908 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 7#8International Banking $MM1 Q1/20 Y/Y Q/Q Reported Net Income² $518 (29%) (23%) Pre-Tax, Pre Provision Profit $1,321 (10%) (11%) • Revenue $2,985 (2%) (5%) Expenses $1,664 +6% PCLs $580 +30% Productivity Ratio 55.7% +360 bps +17% +270 bps • Net Interest Margin³ 4.51% (3 bps) • PCL Ratio4 1.57% +28 bps +22 bps PCL Ratio Impaired Loans4 1.45% +21 bps +18 bps Adjusted 5 Net Income² $615 (17%) (15%) YEAR-OVER-YEAR HIGHLIGHTS1 Adjusted Net Income ex. divestitures down 4%2,5 о Tax benefits in Mexico last year Revenues ex. divestitures up 4% Margin compression in Mexico and Chile Gain from foreclosed asset sale last year Strong loan growth - Pacific Alliance up 10% NIM down 3 bps³ Adjusted Expenses ex. divestitures up 5% Impact of acquisitions in Peru and Dominican Republic Adjusted Operating leverage of -0.8%5 ex. divestitures Net Income Ex Divested $560 (4%) (1%) Ops.2 Pre-Tax, Pre Provision Profit $1,404 (7%) (10%) ADJUSTED NET INCOME²,5 ($MM) AND NIM³ (%) Expenses $1,581 +3% (1%) 4.54% 4.62% 4.51% 4.51% 4.51% PCLS $503 +12% +2% 743 723 762 725 615 Productivity Ratio 52.9% +200 bps +250 bps 159 141 156 154 55 PCL Ratio4 1.36% +7 bps +1 bp 584 567 621 571 560 PCL Ratio Impaired Loans4 1.37% +13 bps +10 bps Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 1Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 2 Attributable to equity holders of the Bank 3 Net Interest Margin is on a reported basis 4 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 5 Refer to Non-GAAP Measures on Slide 36 for adjusted results Ex. Divested Ops Divested Ops 8#9Global Wealth Management YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 11%² Revenue up 5% o Up 7% excluding impact of divestitures o Strong AUA/AUM growth Solid brokerage revenue growth Adjusted Expenses up 2%² 。 Volume related expense growth $MM, except AUM/AUA Q1/20 Y/Y Q/Q Reported • Net Income¹ $306 +12% +2% • Pre-Tax, Pre Provision Profit $420 +12% +4% Revenue $1,157 +5% +1% Expenses $737 +2% (1%) PCLS $1 (50%) N/A Productivity Ratio 63.7% (210 bps) (110 bps) • AUM ($B) $298 +6% (1%) AUA($B) $497 +7% Adjusted² • Net Income¹ $318 +11% +1% Pre-Tax, Pre Provision Profit $435 +11% +3% Expenses $722 +2% PCLS N/A N/A Productivity Ratio 62.4% (180 bps) (70 bps) 12.3% • Positive adjusted operating leverage of 3%² Improved industry leading productivity ratio² Strong AUM growth of 6% and AUA growth of 7% 。 Market appreciation o Positive net sales in Mutual Funds ADJUSTED NET INCOME ¹² ($MM) AND ROE² (%) 13.5% 13.5% 13.6% 13.7% 286 303 313 314 318 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 1 Attributable to equity holders of the Bank 2 Refer to Non-GAAP Measures on Slide 36 for adjusted results 9#10Global Banking and Markets YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 35% Y/Y³ O Strong growth in trading-related revenue Adjusted Revenue up 18%3 o Adjusted Non-interest income up 34%3 Loans grew 6% Deposits up a strong 21% Expenses up 1% O Higher performance-related compensation • Improved adjusted productivity ratio by 850 bps³ Positive adjusted operating leverage of 17%³ Adjusted PCL ratio²,³ of 7 bps $MM Q1/20 Y/Y Q/Q Reported Net Income¹ $372 +11% (8%) Pre-Tax, Pre Provision Profit $513 +19% (5%) Revenue $1,167 +9% Expenses $654 +1% +4% PCLS $24 N/A +500% Productivity Ratio 56.0% (400 bps) +200 bps PCL Ratio² 0.09% +16 bps +7 bps PCL Ratio Impaired Loans² 0.14% +15 bps +9 bps Adjusted³ Net Income¹ $451 +35% +11% Pre-Tax, Pre Provision Profit $615 +43% +14% Revenue $1,269 +18% +8% PCLS $18 N/A +350% Productivity Ratio 51.5% (850 bps) (250 bps) PCL Ratio² 0.07% +14 bps +5 bps 11.5% 1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Refer to Non-GAAP Measures on Slide 36 for adjusted results ADJUSTED NET INCOME ¹³ ($MM) AND ROE³ (%) 15.2% 12.8% 13.8% 14.0% 451 420 335 374 405 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 10#11Other -54 ADJUSTED NET INCOME -121 1, 2, 3 ($MM) -33 -35 -48 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 1 Represents smaller operating segments including Group Treasury and corporate adjustments 2 Attributable to equity holders of the Bank 3 Refer to Non-GAAP Measures on Slide 36 for adjusted results YEAR-OVER-YEAR HIGHLIGHTS Higher contributions from asset/liability management activities QUARTER-OVER-QUARTER HIGHLIGHTS • Higher contributions from asset/liability management activities · • Partly offset by lower securities gains and higher non-interest expenses 11#12Risk Review Daniel Moore Group Head & CRO • Stable underlying credit quality ● Reduction in GILs driven by divestitures • Strong loan loss provision coverage 12 12#13PCLs by Business Line Stable PCL ratio TOTAL PCLs ($MM) 1, 2, 3 AND PCL RATIO² 47 bps 51 bps 50 bps 51 bps 48 bps 771 722 713 753 688 4 -18 3 247 250 253 231 241 470 477 476 502 503 -16 -6 -4 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 International Banking Canadian Banking Global Banking and Markets Other YEAR-OVER-YEAR HIGHLIGHTS Total PCL ratio² was 51 bps, up 1 bp Q/Q, and up 4 bps Y/Y Higher PCL rates impacted by organic growth and additional provisions in Global Banking and Markets PCL Ratio by Business Line (bps) Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Canadian Banking International Banking 284 314 284 28 282 1294 1312,4 1254 1354 1362,4 Global Wealth Management5 Global Banking and Markets All Bank -7 47 -2 512 -1 48 24 50 72 512 1Includes provision for credit losses on debt securities and deposit with banks of $nil million in Canadian Banking (Q1/19: $2 million, Q2/19: -$1 million, Q3/19: -$1 million), -$1 million in International Banking (Q1/19: $2 million, Q2/19: -$1 million, Q3/19: $1 million, Q4/19: -$3 million), $nil million in Global Banking and Markets (Q4/19: -$1 million) and $1 million in Other (Q1/19: -$1 million, Q2/19: $1 million, Q4/19: $1 million) 2 Refer to Non-GAAP Measures on Slide 36 for adjusted results 3 Other includes provisions for credit losses in Global Wealth Management of $nil million (Q1/19: $2 million, Q2/19: -$1 million, Q3/19: -$1 million) 4 Excludes provision for credit losses on debt securities and deposit with banks 5 PCL ratios are not material 13#14PCLs - Impaired and Performing PCLs ($MM) Q1/19 Q2/19 Q3/19 Q4/19 Q1/202 All Bank Impaired 679 700 776 744 802 Performing 91 221,2 (63)1 • 91 (31)1 Total 688 7222 713 753 771 Canadian Banking Impaired 229 233 257 255 258 Performing 21 201 (16)1 (8) (8) Total 2311 2531 2411 247 250 International Banking Impaired 451 472 522 477 508 Performing 191 51,2 (46)1 251 (5)1 Total 4701 4771,2 4761 5021 5031 Global Wealth Management Impaired (1) Performing 2 (1) - Total 2 (1) (1) Global Banking and Markets Impaired (1) (5) Performing (15) (1) 22 (2) 12 36 (2) (8)1 (18) Total (16) (6) (4) 41 18 Other (Performing) 11 (1)1 11 _1 . YEAR-OVER-YEAR HIGHLIGHTS Higher PCLs driven mainly by asset growth and PCL in Global Banking and Markets versus recoveries in prior year Total PCLs 1,2 of $771 million were up 12% Y/Y and up 2% Q/Q Impaired PCL of $802 million up 18% Y/Y reflecting higher impaired PCL in Canadian Banking, International Banking and Global Banking and Markets О Performing recovery of $31 million Movement of performing loan provisions to Stage 3 in GBM relating to certain specific accounts Improving retail credit quality in Canadian Banking and International Banking 1 Includes provision for credit losses on debt securities and deposit with banks of $nil million in Canadian Banking (Q1/19: $2 million, Q2/19: -$1 million, Q3/19: -$1 million), -$1 million in International Banking (Q1/19: $2 million, Q2/19: -$1 million, Q3/19: $1 million, Q4/19: -$3 million), $nil million in Global Banking and Markets (Q4/19: -$1 million) and $1 million in Other (Q1/19: -$1 million, Q2/19: $1 million, Q4/19: $1 million) 2 Refer to Non-GAAP Measures on Slide 36 for adjusted results 14#15GILs and GIL Formations by Business Line Improving GILs ratio trend 89 bps 90 bps GILs² ($MM) AND GILS RATIO1, 2 86 bps 5,287 5,364 5,229 84 bps 5,135 77 bps 326 -10 289 -10 202- -14 237-10 4,770 1,049 1,069 1,069 218 -27 1,087 1,106 3,902 3,996 3,944 3,801 3,419 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 YEAR-OVER-YEAR HIGHLIGHTS Lower GILs which declined 7% Q/Q and 10% Y/Y GILs ratio declined 7 bps Q/Q and 13 bps Y/Y primarily due to the impact of divestitures in International Banking Lower Net formations which declined 1% Q/Q and were up 3% Y/Y NET FORMATIONS² ($MM) AND NET FORMATIONS RATIO 1,2 16 bps 16 bps 16 bps 14 bps 14 bps 978 941 861 968 2 42 861 3 306 315 337 349 295 GILs Ratio (bps)1,2 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Canadian Banking 32 32 32 31 31 31 2 International 261 257 258 253 230 Banking Global Wealth Management 8 8 8 8 21 550 589 633 622 622 Global Banking 33 28 19 23 20 and Markets 20 Q1/19 --1 -22 -81 Q2/19 Q3/19 Q4/19 Q1/20 Canadian Banking Global Banking and Markets All Bank 00 90 89 86 84 77 International Banking Global Wealth Management 1 As a percentage of period end loans and acceptances 2 Prior to Q1/20, amounts for Global Wealth Management Retail were included in Canadian Banking Retail 15 15#16Net Write-Offs by Business Line NET WRITE-OFFS ($MM) 1,2 AND NET WRITE-OFFS RATIO1, 2, 3 50 bps 50 bps 50 bps 49 bps 745 749 54 bps 827 27 732 716 • 8 21 256 242 257 260 233 YEAR-OVER-YEAR HIGHLIGHTS Net write-offs were up 10% Q/Q and 13% Y/Y Higher write-offs in International Banking and Global Banking and Markets Modestly higher net write-off ratio • 544 490 462 484 481 Q1/19 Q2/19 Q3/19 Q4/19 Canadian Banking International Banking Global Wealth Management Q1/20 Global Banking and Markets Net Write-Off Ratio by Business Line (bps) 1,2,3 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Canadian Banking International Banking 29 29 30 30 29 135 127 127 128 147 Global Wealth Management Global Banking and Markets All Bank 50 50 50 9 1 3 11 50 49 54 49 1 Net write-offs are net of recoveries 2 Prior to Q1/20, amounts for Global Wealth Management Retail were included in Canadian Banking Retail 3 As a percentage of average net loans and acceptances 116 16#17Appendix 17#18NIAT Excluding Divestitures 2,291 -1652 YEAR-OVER-YEAR¹ All -Bank +7.6% Y/Y -562 2,344 2,126 QUARTER-OVER-QUARTER¹ All-Bank +2.0% Q/Q -1572 2,288 2,400 2,243 2,344 -562 2,288 Q1/19 Adj. NIAT Divestitures Related NIAT Q1/19 Adj. NIAT ex. Divestitures Q1/20 Adj. NIAT Divestitures Related NIAT Q1/20 Adj. NIAT ex. Divestitures Q4/19 Adj. NIAT Divestitures Related NIAT Q4/19 Adj. NIAT ex. Divestitures Q1/20 Adj. NIAT Divestitures Related NIAT Q1/20 Adj. NIAT ex. Divestitures 1 Refer to Non-GAAP Measures on Slide 36 for adjusted results 2 Includes divestiture related NIAT of $55 million in International Banking (Q4/19: $154 million, Q1/19: $159 million); $nil million in Global Wealth Management (Q4/19: $2 million, Q1/19: $4 million) and $1 million in non-controlling interest (Q4/19: $1 million, Q1/19: $2 million) 18#19Net Income and Adjusted Diluted EPS Net Income ($MM) and EPS ($ per share) Q1/19 Q4/19 Q1/20 1 Net Income attributable to common shareholders $2,107 $2,137 $2,262 Dilutive impact of share-based $41 $42 $27 payment options and others Net Income attributable to common $2,148 $2,179 $2,289 shareholders (diluted) Weighted average number of 1,226 1,218 1,214 common shares outstanding Dilutive impact of share-based payment options and others 1 29 42 33 (2) Weighted average number of diluted 1,255 1,260 1,247 common shares outstanding Reported Basic EPS $1.72 $1.76 $1.86 Dilutive impact of share-based (2) ($0.01) ($0.03) ($0.02) payment options and others Reported Diluted EPS $1.71 $1.73 $1.84 Impact of adjustments on diluted $0.04 $0.09 ($0.01) earnings per share¹ Adjusted Diluted EPS $1.75 $1.82 $1.83 1 Refer to Non-GAAP Measures on Slide 36 for adjusted results Quarterly diluted common shares outstanding may be impacted by dilutive effect of put options sold by the bank relating to minority interests the bank holds in the following legal entities: Colpatria BBVA Chile Canadian Tire Financial Services Impact on diluted EPS remains relatively stable 19#20Adjusting Items - Pre-Tax Adjusting Items (Pre-Tax) ($MM) Acquisition-Related Costs Integration Costs Canadian Banking International Banking Global Wealth Management Amortization of Intangibles" Canadian Banking International Banking Global Wealth Management Other Allowance for Credit Losses - Additional Scenario Canadian Banking International Banking Global Wealth Management Global Banking and Markets Derivative Valuation Adjustment Global Banking and Markets Other Impairment Charge on Software Asset Other Net Loss/(Gain) on Divestitures Other Total (Pre-Tax) 1 Excludes amortization of intangibles related to software (pre-tax) Q1/19 Q4/19 Q1/20 - 273532 24 69 30 28 2222632 31 79 76 10 15 13 10 10 - 1752522 155 71 77 1 6 116 102 14 44 44 1 (262) 1 (262) 61 108 156 20#21Adjusting Items - After-Tax and NCI Adjusting items decreased reported diluted EPS by $0.01 in Q1/20 Adjusting Items (After-Tax and NCI) ($MM) Acquisition-Related Costs Integration Costs Canadian Banking International Banking Global Wealth Management Amortization of Intangibles Canadian Banking International Banking Q1/20 Q1/19 Q4/19 Tax NCI 17 45 22 13 - 11 38 21 13 6 7 1 22 20 7 4 4 1 11 8 3 7 8 3 Global Wealth Management Other Allowance for Credit Losses - Additional Scenario Canadian Banking International Banking Global Wealth Management Global Banking and Markets Derivative Valuation Adjustment Global Banking and Markets Other Impairment Charge on Software Asset Other Net Loss/(Gain) on Divestitures Other Total (After-Tax and NCI) 1 Excludes amortization of intangibles related to software (after-tax) After-Tax and NCI 20 9 1342427 - 40 7 108 19 52 19 7 51 1 2 4 30 1 85 27 75 3 1 10 12 32 12 32 32 27 27 (316) 32 27 27 (316) 39 97 138 48 (30) 21 21#22Other Items Impacting Financial Results (Pre-Tax) ($MM) Canadian Banking Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q1/20 vs Q1/19 2019 2018 One month reporting lag elimination 34 Branch real estate gains 8 7 (8) 15 Interac gain Total 8 7 (8) 15 55 89 40 163 International Banking One month reporting lag elimination 58 51 Impact of closed divestitures 206 211 184 208 70 264 211 184 208 121 522 (7) 58 66 (136) 809 713 (143) 867 779 Total Global Wealth Management One month reporting lag elimination Impact of closed divestitures - 7 Total 7 220 133 5 5 10 910 963 (6) 35 55 35 55 Other Pension revaluation benefit gain Total 203 - 203 Total (Pre-Tax) 279 238 187 213 131 (148) 917 1,200 (After-Tax and NCI) ($MM)¹ Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q1/20 vs Q1/19 2019 2018 Canadian Banking One month reporting lag elimination 25 Branch real estate gains 6 6 (6) 12 73 Interac gain 35 Total 6 (6) 12 133 International Banking One month reporting lag elimination 41 37 (4) 41 48 Impact of closed divestitures 159 156 141 154 55 (104) 610 542 Total 200 156 141 154 92 (108) 651 590 Global Wealth Management One month reporting lag elimination Impact of closed divestitures 4 10 2 Total 4 10 1 2 60 616 Other Pension revaluation benefit gain Total - Total (After-Tax and NCI) Impact on diluted earnings per share 210 $0.17 172 $0.14 (4) 17 31 2 17 31 150 150 142 156 $0.11 $0.12 98 $0.08 (112) 680 904 ($0.09) $0.54 $0.74 1 Items on this page have not been formally adjusted for determining the bank's Adjusted Net Income and Adjusted Diluted EPS 2 Pension and related insurance business in the Dominican Republic, sale of seven non-core markets in the Caribbean, Thanachart Bank in Thailand, pension fund operations in Colombia, operations in Puerto Rico and the U.S. Virgin Islands, and insurance and banking operations in El Salvador 22#23Digital Progress Update Steady progress against 2018 Investor Day digital targets Digital Retail Sales¹ +19% Digital Adoption² +15% 30 28 22 15 11 2016 2017 2018 Goal >50% 29 26 29 In-Branch Financial Transactions³ -12% 41 26 39 23 33 20 16 14 2019 Q1/20 2016 2017 2018 2019 Q1/20 2016 2017 2018 2019 Q1/20 Goal >70% • Strong progress made across core markets • Adoption grew 8% since Q1/19 1 Canada: F2017 22%, F2018 26%, F2019 26% PACS: F2017 13%, F2018 19%, F2019 29% 2 Canada: F2017 36%, F2018 38%, F2019 42% PACS: F2017 20%, F2018 26%, F2019 35% 3 Canada: F2017 17%, F2018 15%, F2019 12% PACS: F2017 29%, F2018 24%, F2019 19% Goal <10% In-branch transactions fell 4% compared to Q1/19 23 23#24Revenue Growth: P&C Banking Well diversified revenue growth across all business lines Canadian Banking International Banking 1, 2 +5% (2%) Y/Y Y/Y³ 2,683 2,707 (56%) 2,584 3,137 3,186 Y/Y 145 187 2,985 +6% 68 635 646 610 Y/Y 801 783 699 (11%) Y/Y +4% Y/Y 1,974 2,048 2,061 +5% 2,194 2,215 2,219 Y/Y Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 Retail Commercial Latin America C&CA Asia Strong volume growth and higher non interest income offset by margin compression 1 May not add due to rounding 2 Y/Y growth rates are on a constant dollar basis Impacted by foreclosed asset sale last year and margin compression 3 Revenue growth of -5% Y/Y on a reported basis. International Banking constant currency revenue growth 4% excluding the impact of divestitures 24 4#25Revenue Growth: GWM and GBM Well diversified revenue growth across all business lines Global Wealth Management Global Banking and Markets 2,3 +5% Y/Y1 +18% Y/Y 1,269 1,149 1,157 1,098 1,170 188 178 -8% 1,075 193 Y/Y1 405 +57% 342 258 Y/Y +17% 204 174 197 Y/Y +8% 961 979 905 Y/Y +3% 643 631 660 Y/Y Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 Business banking Canada International Global Equities FICC Growth in Canada partially offset by divestitures in International Wealth Strong quarter for fixed income 1 Global Wealth Management revenue up 7% and International Wealth Management revenue up 1% excluding the impact of divestitures 2 GBM LatAm revenue contribution and assets are reported in International Banking's results 3 Adjusting for the derivative valuation adjustment and the additional forward-looking economic scenario 25#26Loan Growth by Business Line Strong volume growth across our key business lines Canadian Banking International Banking¹ Global Banking and Markets +6% +6% Y/Y² Y/Y +6% Y/Y 351 +12% 152 151 346 147 331 Y/Y 55 44 57 50 +5% +8% 8 8 Y/Y 77 78 Y/Y 74 71 71 69 +3% +11% Y/Y Y/Y 10 10 10 10 10 10 22 95 97 92 46 +5% 23 24 23 223 +5% 205 212 215 Y/Y Y/Y 40 41 40 +4% Y/Y Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 Residential mortgages Personal loans Credit cards Business Strong loan growth driven by contributions across business lines Good loan growth driven by Pacific Alliance up 10% Continued strong loan growth focused in North America 1 Y/Y growth rates are on a constant dollar basis 2 Average loans & acceptances growth of 2% Y/Y on a reported basis. International Banking constant currency loans up 9% excluding the impact of divestitures 26#27Deposit Growth by Business Line Strong focus on growing core deposits 236 Canadian Banking +5% Y/Y 248 248 80 79 19 74 International Banking1,2 Global Banking and Markets +2% Y/Y3 113 115 111 +2% +6% Y/Y Y/Y 73 75 72 162 168 169 +5% Y/Y Q1/19 Q4/19 Q1/20 Continued momentum driven by both Personal & Non-Personal deposits 40 40 40 40 Q1/19 Personal 39 +2% Y/Y 93 33 +21% Y/Y 113 109 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 Non-Personal Good growth in Pacific Alliance up 7% 1 Y/Y growth rates are on a constant dollar basis 2 Includes deposits from banks 3 Average deposits declined 2% Y/Y on a reported basis. International Banking constant currency deposits up 6% excluding divestitures Continued focus on deposit generation 27 27#28Global Wealth AUM/AUA Growth Driven by strong market performance and positive net sales Assets Under Management Assets Under Administration +6% Y/Y1 +7% Y/Y² 497 497 302 298 466 281 59 43 -25% 112 98 -8% 56 Y/Y1 107 Y/Y2 255 243 225 +13% Y/Y 385 399 359 +11% Y/Y Q1/19 Q4/19 Q1/20 Canada Q1/19 Q4/19 Q1/20 International Solid asset growth driven by market appreciation and positive net sales, partially offset by divestitures in International Wealth 1 Global Wealth Management AUM up 13% and International Wealth Management AUM up 11% excluding the impact of divestitures 2 Global Wealth Management AUA and International Wealth Management AUA up 11% excluding the impact of divestitures 28#29Canadian Retail: Loans and Provisions' MORTGAGES 2 21 11 11 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 LINES OF CREDIT³ PERSONAL LOANS² 95 91 80 85 84 88 78 81 90 69 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 CREDIT CARDS 86 96 458 402 81 80 381 385 72 349 415 75 70 73 70 73 379 339 377 241 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 PCL as a % of avg. net loans (bps) Loan Balances Q1/20 Spot ($B) % Secured Mortgages $230 100% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 PCLs on Impaired Loans as a % of avg. net loans (bps) Personal Loans² Lines of Credit³ Credit Cards Total $41 $34 $8 $3124 99% 61% 3% 93%5 1Includes Wealth Management. PCL excludes impact of additional pessimistic scenario 295% are automotive loans 3 Includes Home Equity Lines of Credit and Unsecured Lines of Credit 4 Includes Tangerine balances of $6 billion 5 80% secured by real estate; 13% secured by automotive 29 29#30International Retail: Loans and Provisions MEXICO PERU 233 231 246 251 517 545 208 473 471 402 163 228 218 491 470 199 203 424 364 372 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20² CARIBBEAN & CENTRAL AMERICA CHILE Q1/19 Q2/19 Q3/19 Q4/19 Q1/26 COLOMBIA 191 554 549 531 170 187 178 160 471 439 155 159 155 157 141 175 485 156 165 170 148 150 154 455 420 406 138 138 120 377 Q1/19 Q2/19 Q3/19 Q4/19 Q1/202 Q1/19 Q2/19 Q3/19 Q4/19 Q1/202 PCL as a % of avg. net loans (bps) Q1/19 Q2/19 Q3/19 Q4/19 Q1/202 PCLs on Impaired Loans as a % of avg. net loans (bps) Loan Balances Q1/20 Spot ($B) Mexico $14 Peru Chile Colombia C&CA Total³ $10 $24 $7 $14 $70 1 Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans 2 PCL excludes impact of additional pessimistic scenario 3 Total includes other smaller portfolios 30#31International Banking: Pacific Alliance Continue to deliver strong results across the Pacific Alliance FINANCIAL PERFORMANCE AND METRICS ($MM)¹ 1, 2, 3 Q1/20 Q4/19 Q1/19 Q/Q Y/Y Revenue ($MM) 2,069 2,030 2,061 3% 5% Expenses ($MM) 971 947 940 4% 8% PTPP ($MM) 1,097 1,084 1,121 3% 3% Net Income ($MM) 465 438 524 7% (9%) NIM 4.56% 4.63% 4.67% -7 bps -11 bps Productivity Ratio 46.9% 46.6% 45.6% +32 bps +133 bps 16% Colombia 27% Chile REVENUE $2.07B GEOGRAPHIC DISTRIBUTION4 4% 30% Colombia Mexico 25% 27% Chile Peru NET INCOME1,3 $465MM 10% 33% Colombia Mexico 37% 38% Chile Peru AVG EARNING ASSETS4 $130B 31% Mexico 22% Peru 1 Attributable to equity holders of the Bank 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 Refer to Non-GAAP Measures on Slide 36 for adjusted results 4 For the 3 months ended January 31, 2019 31#32GBM: Revenue and Average Assets 6% Asia GEOGRAPHIC REVENUE 1,2,3 10%/ Europe REVENUE (TEB) $1.3B 44% 7%- Canada Asia 40% US 16% Europe ASSETS BY GEOGRAPHY1,2 1 For the 3 months ended January 31, 2020 2 GBM LatAm revenue contribution and assets are not included above as they are reported in International Banking's results 3 Refer to Non-GAAP Measures on Slide 36 for adjusted results AVG ASSETS $411B 40% Canada 37% US 32 32#33Retail 90+ Days Past Due Loans Stable delinquencies across most markets and products Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 CANADA1 Mortgages 0.21% 0.21% 0.21% 0.20% 0.21% Personal Loans 0.58% 0.56% 0.54% 0.58% 0.63% Credit Cards 0.95% 0.92% 0.83% 0.98% 1.02% Secured and Unsecured Lines of Credit 0.30% 0.30% 0.26% 0.26% 0.25% Total 0.29% 0.28% 0.27% 0.28% 0.29% INTERNATIONAL Q1/192 Q2/192,3 Q3/192,3 Q4/192,3 Q1/202,3 Mortgages 3.24% 3.16% 3.23% 3.10% 2.65% Personal Loans 3.59% 3.52% 3.55% 3.59% 3.89% Credit Cards 3.01% 3.01% 3.19% 3.26% 3.26% TOTAL 3.30% 3.23% 3.31% 3.26% 3.22% 1 Includes Wealth Management 2 Includes acquisitions in Chile, Colombia 3 Includes acquisitions in Peru and Dominican Republic 33#34Economic Outlook in Core Markets Real GDP Growth Forecast (2019 – 2021) Real GDP (Annual % Change) 2010-18 Country 2019f 2020f 2021f Average Canada 2.2 1.6 1.5 2.0 U.S. 2.3 2.3 1.7 77 1.8 Mexico 3.0 0.0 1.0 1.8 Peru 4.8 2.3 3.0 3.5 Chile 3.5 1.0 10 1.4 3.0 Colombia 3.8 3.2 3.6 3.6 PAC Average 3.8 1.6 2.3 3.0 Source: Scotiabank Economics. Forecasts as of January 13, 2020 34 ==#35Scotiabank in the Pacific Alliance Well positioned in high quality, growth markets Pacific Alliance Trade Bloc Highlights ~225 million people, median age of 302 6th largest economy in the world1 Banking penetration ~50%1 . • Sovereign ratings all "Investment Grade"3 63% of exports related to manufacturing4 Largest trading partner is the United States4 Scotiabank Market Share5 Market Share Ranking5 Strengths Average Total Loans (C$B) Revenue (C$B) Net Income after NCI 7,8 (C$MM) ROE 6,8 # of Employees 9,10 Mexico 7.7% 5th Peru Chile Colombia 18.1% 3rd Auto and Mortgages P&C and Credit Cards 14.4% 3rd Credit Cards, Mortgages 5.9% 6th Credit Cards, Personal $32.5 $21.8 $44.2 $11.9 $2.3 $2.2 $2.3 $1.4 $508 $712 $497 $113 18.6% 23.0% 8.0% 5.9% 12,338 11,532 9,013 7,815 1 Source: World Bank, IMF 2 Source: The World Factbook, CIA 2018 3 Sovereign ratings from Moody's, S&P, and Fitch; Source: Bloomberg 6 For the three months ended January 31, 2020 7 For the trailing 12 months ended January 31, 2020, not adjusted for currency 8 Refer to Non-GAAP Measures on Slide 36 for adjusted results 4 Source: United Nation Conference on Trade and Development (UNCTAD) 2018; International Monetary 9 Employees are reported on a full-time equivalent basis Fund (IMF) 2018 5 Ranking based on publicly traded banks by total loans market share as of December, 2019, inc. M&A 10 As of January 31, 2020 35#36Non-GAAP Measures The Bank uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS), are not defined by GAAP and do not have standardized meanings that would ensure consistency and comparability among companies using these or similar measures. The Bank believes that certain non-GAAP measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-GAAP measures are used throughout this report and defined below. The following tables present reconciliations of GAAP Reported financial results to non-GAAP Adjusted financial results. The financial results have been adjusted for the following: 1) Acquisition and divestiture-related amounts - Acquisition and divestiture-related amounts are defined as: A) Acquisition-related costs 1. Integration costs - Includes costs that are incurred and relate to integrating the acquired operations and are recorded in the Global Wealth Management and International Banking operating segments. These costs will cease once integration is complete. The costs relate to the following acquisitions: Banco Cencosud, Peru (closed Q2, 2019) • Banco Dominicano del Progreso, Dominican Republic (closed Q2, 2019) ⚫MD Financial Management, Canada (closed Q4, 2018) . ⚫ Jarislowsky, Fraser Limited, Canada (closed Q3, 2018) ⚫ Citibank consumer and small and medium enterprise operations, Colombia (closed Q3, 2018) • BBVA, Chile (closed Q3, 2018) 2. Amortization of Acquisition-related intangible assets, excluding software. These costs relate to the six acquisitions above, as well as prior acquisitions and are recorded in the Canadian Banking, Global Wealth Management and International Banking operating segments. 3. Day 1 provision for credit losses on acquired performing financial instruments, as required by IFRS 9 and are recorded in the Canadian and International Banking operating segments. The standard does not differentiate between originated and purchased performing loans and as such, requires the same accounting treatment for both. These credit losses are considered Acquisition-related costs in periods where applicable. The costs for Q2, 2019 relate to Banco Cencosud, Peru and Banco Dominicano del Progreso, Dominican Republic. The costs for Q3, 2018 relate to BBVA, Chile and Citibank, Colombia. B) Net (gain)/loss on divestitures - The Bank announced a number of divestitures in 2019 in accordance with its strategy to reposition the Bank. The gain/loss on the divestitures is recorded in the Other segment, and relates to the following divestitures (refer to Note 21 of MD&A for further details): • Equity-accounted investment in Thanachart Bank, Thailand (closed Q1, 2020) ⚫ Colfondos AFP, Colombia (closed Q1, 2020) • Operations in Puerto Rico and USVI (closed Q1, 2020) • Insurance and banking operations in El Salvador (closed Q1, 2020) Banking operations in the Caribbean (closed Q4, 2019) 2) Allowance for credit losses (ACL) - Additional Scenario - The Bank modified its ACL measurement methodology in Q1, 2020 by adding an additional, more severe pessimistic scenario, consistent with developing practice among major international banks in applying IFRS 9, and the Bank's prudent approach to expected credit loss provisioning. The modification resulted in a pre-tax increase in provision for credit losses of $155 million, which was recorded in Canadian Banking, Global Wealth Management, International Banking and Global Banking and Markets operating segments. 3) Derivative Valuation Adjustment - The Bank enhanced its fair value methodology primarily relating to uncollateralized OTC derivatives which resulted in a pre-tax charge of approximately $116 million in Q1, 2020. This charge was recorded in the Global Banking and Markets and Other operating segments. 4) Impairment charge on software asset -The Bank recorded an impairment loss in the Other operating segment of $44 million pre-tax in Q1, 2020, related to one software asset. 36#37Investor 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] 37 37