#1Investor Presentation Fourth Quarter 2020 December 1, 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 2020 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; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the global economy, financial market conditions and the Bank's business, results of operations, financial condition and prospects; 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 2020 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 2020 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#3Resilient operations, earnings and capital Key Messages Strong asset quality Brian Porter President & CEO Effective customer support Strong expense discipline Digital acceleration 3#4• • . Leading Bank in the Americas Putting Customers First $120 billion of customer support during COVID-19 >90% of branch network open during COVID-19 #1 ranking for "Customer Satisfaction" for response to COVID-19-Bond Brand Loyalty #1 ranking in "Branch Satisfaction" and "Credit Card Satisfaction" - J.D. Power Recognized for "Outstanding Crisis Leadership" by The Banker magazine • • ☑Investing in our Business Added 350 professionals to Wealth Management mobile advice team to better serve clients Added 300 sales professionals to Canadian Banking in advisory, mortgage and commercial to increase customer service and cross-sell Enhanced electronic trading capabilities in Canada and the US Maintained high levels of technology investment to improve the customer experience, reduce risk and improve efficiency . . • . >>>>> Strategic Progress Closed four strategic divestitures totaling $6 billion as part of strategic re-positioning Further reduced country count to increase strategic focus in core markets in the Americas and lower operational risk Completed integration of BBVA Chile: "Chile's Best Bank" and "Best Latin American Bank Transformation" - Euromoney Magazine #1 ranking for Syndicated Loans in Latin America . Digital Acceleration Increased digital adoption by customers to 48% in 2020 Surpassed target for in-branch financial transactions of <10% #1 ranking for "Online Banking Satisfaction" - J.D. Power "Best Bank in North America for Innovation in Digital Banking" - The Banker First to market for enhanced e-Transfer for Business allowing real-time payments for business 4#5Fiscal 2020 Overview Raj Viswanathan Group Head & CFO 5#6Fiscal 2020 Financial Performance $MM, except EPS Reported 2020 Y/Y Net Income $6,853 (22%) Pre-Tax, Pre Provision Profit $14,480 +1% • Diluted EPS $5.30 (21%) Revenue $31,336 +1% Expenses $16,856 +1% Productivity Ratio 53.8% (10 bps) • Core Banking Margin 2.27% (17 bps) PCL Ratio¹ 98 bps +47 bps • PCL Ratio on Impaired Loans¹ 56 bps +7 bps Adjusted² Net Income $6,961 (26%) Pre-Tax, Pre Provision Profit $14,625 (1%) Diluted EPS $5.36 (25%) Revenue $31,139 Expenses $16,514 Productivity Ratio 53.0% PCL Ratio1 95 bps +1% +30 bps +46 bps • ADJUSTED NET INCOME² YEAR-OVER-YEAR ($MM) HIGHLIGHTS Adjusted EPS² down 25%, largely impacted by PCLs related to the COVID-19 pandemic Adjusted pre-tax, pre-provision profit² down 1%, or up 5% excluding impact of divestitures Adjusted revenue² was flat, or up 4% excluding impact of divestitures Core banking margin decreased 17 bps o Lower margins due to changes in business mix and the declining interest rate environment, as well as higher liquidity levels Adjusted expenses² increased 1%, or 3% excluding impact of divestitures Adjusted operating leverage² of negative 0.6%, or positive 1.0% excluding impact of divestitures ADJUSTED NET INCOME 2,3 BY BUSINESS SEGMENT ($MM) 143 -26% 9,409 -165 -60%4 -3,053 719 +33% -92 6,961 +7% 3,504 2,604 2,953 1,148 1,215 1,297 1,534 2,034 2019 NII Non interest income PCLS Non-interest expenses Taxes 2020 Canadian Banking 1 Includes provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures International Banking Global Wealth Management Global Banking and Markets 2 Refer to Non-GAAP Measures on slide 40 for adjusted results 3 Attributable to equity holders of the Bank 4Y/Y growth rate is on a constant dollars basis 2019 ■2020 6#7Q4 2020 Financial Performance $MM, except EPS Q4/20 Y/Y Q/Q Reported • Net Income $1,899 (18%) +46% • Pre-Tax, Pre Provision Profit $3,448 (6%) (7%) Diluted EPS $1.42 (18%) +37% Revenue $7,505 (6%) (3%) • Expenses $4,057 (6%) +1% Productivity Ratio 54.1% +210 bps Core Banking Margin 2.22% (18 bps) +12 bps PCL Ratio1 0.73% +23 bps (63 bps) PCL Ratio on Impaired Loans¹ 0.54% +5 bps (4 bps) Adjusted² Net Income $1,938 (19%) +48% Pre-Tax, Pre Provision Profit $3,502 (7%) (6%) Diluted EPS $1.45 (20%) +39% Revenue $7,505 (6%) (2%) Expenses $4,003 (5%) +1% • Productivity Ratio 53.3% +60 bps +190 bps ADJUSTED NET INCOME² YEAR-OVER-YEAR ($MM) • YEAR-OVER-YEAR HIGHLIGHTS Adjusted EPS² down 20%; up 39% Q/Q Adjusted pre-tax, pre-provision profit² down 7%, or down 1% excluding impact of divestitures Adjusted revenue² down 6%, or down 2% excluding impact of divestitures 。 Net interest income up 1%, excluding divestiture o Non-interest income down 5%, excluding divestitures Core banking margin down 18 bps; up 12 bps Q/Q o Lower margins due to changes in business mix and the declining interest rate environment, as well as higher liquidity levels o Core Banking Margin improved sequentially driven by lower levels of liquidity Adjusted expenses² down 5%, or down 3% excluding impact of divestitures ADJUSTED NET INCOME 2,3 BY BUSINESS SEGMENT ($MM) -78 -379 179 2,400 194 -13% -378 -60%4 1,938 +6% +14% 902 782 725 283 314 405 460 333 Q4/19 NII Non interest income PCLs Non-interest expenses Taxes Q4/20 Canadian Banking International Banking Global Wealth Management Global Banking and Markets 1 Includes provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Refer to Non-GAAP Measures on slide 40 for adjusted results ■Q4/19 Q4/20 3 Attributable to equity holders of the Bank 4Y/Y growth rate is on a constant dollars basis 7#8Strong Capital & Liquidity 11.8% -4 bps +3 bps +34 bps -1 bp +44 bps -28 bps 11.3% 1 Q3 2020 Reported Earnings Dividends RWA Impact (ex. FX) Foreign exchange ECL Transitional translation Other (net) Q4 2020 Capital Relief Reported Internal capital generation • Strong internal capital generation Lower risk weighted assets (RWA) - repayments in business banking and lower market risk RWA • LCR ratio of 138% 1 Attributable to equity holders of the Bank 8#9Canadian Banking $MM Q4/20 Y/Y Q/Q Reported Net Income¹ $778 (13%) +81% Pre-Tax, Pre Provision Profit $1,380 (6%) +4% Revenue $2,566 (4%) +3% Expenses $1,186 (3%) +1% PCLS $330 +34% (56%) Productivity Ratio 46.2% +80 bps (70 bps) Net Interest Margin 2.26% (15 bps) PCL Ratio² 0.37% +9 bps (48 bps) PCL Ratio Impaired Loans² 0.27% (2 bps) (9 bps) Adjusted³ Net Income¹ $782 (13%) +81% Pre-Tax, Pre Provision Profit $1,386 (6%) +4% • Expenses $1,180 (3%) Productivity Ratio 46.0% +80 bps +1% (70 bps) PCL Ratio² 0.37% +9 bps (48 bps) • • · YEAR-OVER-YEAR HIGHLIGHTS Adjusted net income 1,3 down 13%; up 81% Q/Q o PCLs up 34% driven by higher performing provisions, partly offset by lower impaired provisions • Solid volume growth and lower expenses, offset by lower net interest income and non-interest income Revenue down 4%; up 3% Q/Q 。 Net interest income down 4% due to lower margins 。 Non-interest income down 7% as a result of reduced economic activity and transaction volumes Adjusted expenses³ down 3%; FY20 adjusted operating leverage³ was negative 2.4% Loan growth of 4% o Residential mortgages up 6%; credit card loans down 16% o Business loans up 6% Deposit growth of 12% • NIM down 15 bps; flat Q/Q o Central Bank rate cuts and business mix changes ADJUSTED NET INCOME ¹³ ($MM) AND NIM (%) 1,3 2.41% 2.36% 2.33% 2.26% 2.26% 902 908 782 481 433 1 Attributable to equity holders of the Bank Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 9 2 Includes provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Refer to Non-GAAP Measures on slide 40 for adjusted results#10International Banking $MM Q4/20 Y/Y1 Q/Q¹ • Reported Net Income² $263 (60%) 1,130% Pre-Tax, Pre Provision Profit $1,124 (21%) (2%) Revenue $2,548 (15%) 2% Expenses $1,424 (10%) 5% PCLS $736 58% (41%) Productivity Ratio 55.9% 290 bps 180 bps Net Interest Margin 3.97% (54 bps) (2 bps) PCL Ratio³ 2.07% 72 bps (126 bps) PCL Ratio Impaired Loans³ 1.58% 31 bps 9 bps Adjusted 5 Net Income² $283 (60%) 497% Net Income - Ex Divested Ops.² $283 (48%) 503% Pre-Tax, Pre Provision Profit $1,151 (23%) (3%) Expenses $1,397 (7%) 6% Productivity Ratio 54.8% 440 bps 250 bps • YEAR-OVER-YEAR HIGHLIGHTS1 Adjusted net income 2,4 excluding impact of divestitures down 48%; up significantly Q/Q o PCLs up 62%, mainly from performing loan PCLS o Loan growth of 7% and deposit growth 7% FY20 pre-tax, pre-provision profit ex. divestitures down 4%; Pacific Alliance down 1% Revenues ex. divestitures down 6%; up 2% Q/Q o Margin compression and lower non-interest income o PAC revenues down 2%; up 3% Q/Q NIM down 54 bps; down modestly Q/Q o Mainly driven by business mix changes, impact of liquidity/government programs, and interest rate cuts Adjusted expenses4 ex. divestitures down 2%; adjusted FY20 operative leverage4 ex. divestitures of -1.4% o Benefiting from efficiency initiatives and realized synergies ADJUSTED NET INCOME 24 ($MM) AND NIM (%) 4.51% 4.51% 4.28% 3.99% 3.97% 725 615 158 59 283 567 556 197 53 197 1 283 52 1Y/Y and Q/Q growth rates (%) are on a constant dollar basis, while metrics and change in bps are on a reported basis Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 2 Attributable to equity holders of the Bank 3 Includes provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 4 Refer to Non-GAAP Measures on slide 40 for adjusted results Ex. Divested Ops Divested Ops 10#11Global Banking and Markets YEAR-OVER-YEAR HIGHLIGHTS $MM Q4/20 Y/Y Q/Q . Reported Net Income¹ $460 +14% (23%) Pre-Tax, Pre Provision Profit $627 +16% (32%) Revenue $1,210 +3% (22%) Expenses $583 (8%) (6%) PCLS $62 N/A (58%) Productivity Ratio 48.2% (580 bps) +810 bps PCL Ratio² 0.24% +22 bps (26 bps) PCL Ratio Impaired Loans² 0.13% +8 bps • Expenses down 8% 1 Attributable to equity holders of the Bank 2 Includes provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Refer to Non-GAAP Measures on slide 40 for adjusted results • Net income up 14% 。 Strong trading revenues Revenue up 3% o Net Interest income up 4% o Non-interest income up 3% Deposits up 37% and loans grew 3% Improved productivity ratio by 580 bps Positive FY20 operating leverage of 20%; adjusted operating leverage³ of 22% PCL ratio² of 24 bps ADJUSTED NET INCOME ¹³ ($MM) AND ROE³ (%) 13.8% 14.0% 15.4% 17.5% 14.6% 600 523 405 451 460 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 11#12Global Wealth Management $MM, except AUM/AUA Q4/20 Y/Y Q/Q . Reported Net Income¹ $323 +8% +1% Pre-Tax, Pre Provision Profit $439 +9% +1% • Revenue $1,165 +1% +3% Expenses $726 (2%) +4% PCLs $3 N/A N/A Productivity Ratio 62.3% (250bps) +60bps AUM ($B) $292 (3%) (1%) • AUA($B) $502 +1% • Adjusted² Net Income¹ $333 +6% . Pre-Tax, Pre Provision Profit $452 +7% +1% Expenses $713 (2%) +4% Productivity Ratio 61.1% (200bps) +80bps AUM AUA +1% -3% Y/Y4 Y/Y³ . YEAR-OVER-YEAR HIGHLIGHTS Adjusted net income² up 6% o Canadian Wealth Management earnings up 14% Y/Y Revenue up 4% excluding impact of divestitures o Strong Asset Management net sales o Solid volume growth within Private Banking o Higher brokerage fees from elevated iTRADE volumes Adjusted expenses² down 2% FY20 adjusted operating leverage² was positive 2.5%, excluding impact of divestitures Adjusted productivity ratio² improved 200 bps Excluding divestitures, AUM up 2% and AUA up 4% o Driven by strong net sales and market appreciation o Canadian Wealth Management AUM up 5% and AUA up 3% ADJUSTED NET INCOME¹² ($MM) AND ROE² (%) 497 503 502 302 14.3% 14.3% 293 292 112 108 107 59 37 38 -36% -5% 13.7% 13.8% 13.6% Y/Y³ Y/Y4 333 332 243 256 254 385 395 395 +5% +3% 314 318 314 2 Y/Y Y/Y 332 333 318 312 314 Q4/19 Q3/20 Q4/20 Canada Q4/19 ■International Q3/20 Q4/20 Q4/19 Q1/20 Q2/20 Q3/20 1 Attributable to equity holders of the Bank 2 Refer to Non-GAAP Measures on slide 40 for adjusted results 3 Excluding the impact of divestitures, Global Wealth Management AUM up 2% and International Wealth Management AUM down 13% 4 Excluding the impact of divestitures, Global Wealth Management AUA up 4% and International Wealth Management AUA up 10% ■Ex. Divested Ops Divested Ops Q4/20 12#13Other ADJUSTED NET INCOME -35 -48 -64 -166 1, 2, 3 ($MM) 8 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 • 1 Represents smaller operating segments including Group Treasury and corporate adjustments 2 Attributable to equity holders of the Bank 3 Refer to Non-GAAP Measures on slide 40 for adjusted results YEAR-OVER-YEAR HIGHLIGHTS Higher contributions from asset/liability management activities, partly offset by higher non-interest expenses QUARTER-OVER-QUARTER HIGHLIGHTS Higher contributions from asset/liability management activities, partly offset by lower investment gains 13#14Risk Review Daniel Moore Group Head & CRO 14#15Well Provisioned TOTAL ACLs ($MM) 7,820 7,403 -182 181 6,079 -74 1,776 1,957 +53% 5,145 5,095 -68 1,643 1,595 74 1,533 • 5,445 5,682 • 4,362 3,482 3,488 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Performing Loan ACLs Impaired Loan ACLS Other TOTAL PCLs ($MM)1,2,3 AND PCL RATIO² 119 bps 136 bps 2,181 1,846 149 -2 73 bps 50 bps 51 bps 2 155 752 1,131 670 3 753 771 4 -18 330 62 247 250 1,278 1,019 736 502 503 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 International Banking HIGHLIGHTS $7.8 billion in total ACLs, up $2.7 billion or 53% since Q1/20 Performing loan ACLs increased 63% since Q1/20, or $2.2 billion Total ACLS represents ~3 years worth of net write-off-coverage Estimated to cover 2021 pandemic-driven elevated write-offs · HIGHLIGHTS Total PCL ratio² of 73 bps increased 23 bps Y/Y; decreased 63 bps Q/Q The sequential improvement was driven by lower PCL on performing loans due to improving macroeconomic outlook and stabilizing credit quality Canadian Banking Global Banking and Markets Other³ 1 Includes provision for credit losses on debt securities and deposit with banks of $nil in Canadian Banking, -$1 million in International Banking (Q4/19: -$3 million, Q1/20: -$1 million, Q2/20: $1 million), -$1 million in Global Banking and Markets (Q4/19: -$1 million, Q3/20: $1 million), $nil in Global Wealth Management (Q3/20: -$1 million) and $2 million in Other (Q4/19: $1 million, Q1/20: $1 million, Q2/20: -$2 million) 2 Refer to Non-GAAP Measures on slide 40 for adjusted results 3 Other includes provisions for credit losses in Global Wealth Management of $3 million (Q2/20: $2 million, Q3/20: $1 million) 15 15#16PCLs - Impaired and Performing HIGHLIGHTS YEAR-OVER-YEAR Higher PCLs driven mainly by higher performing PCL. Total PCLs1 of $1,131 million were up 50% Y/Y, but down 48% Q/Q Performing PCLS of $296 million increased from $9 million last year, due primarily to the COVID-19 pandemic, the unfavorable macroeconomic outlook and estimated future impact of credit migration Impaired PCLs of $835 million increased 12% Y/Y, reflecting higher impaired PCL in International Banking and Global Banking and Markets PCLs ($MM) Q4/19 Q1/202 Q2/20 Q3/20 Q4/20 All-Bank Impaired 744 Performing 802 870 928 835 91 (31)1 9761 1,2531 2961 • Total 7531 7711 1,8461 2,1811 1,1311 Canadian Banking Impaired 255 258 313 317 238 Performing (8) (8) 357 435 92 Total 247 250 670 752 330 International Banking Impaired 477 508 531 573 561 Performing 251 (5)¹ 4881 705 1751 Total 5021 5031 1,0191 1,278 7361 Global Wealth Management Impaired Performing Total 1 1 1 11 2 2 11 3 QUARTER-OVER-QUARTER Global Banking and Markets • Performing PCLs down approximately $1 billion Impaired Performing 12 36 45 25 38 34 • Impaired PCLs declined driven by lower write-offs (8)1 (18) 130 1111 281 Total 41 18 155 1491 621 Other _1 _1 _1 _1 1 Includes provision for credit losses on debt securities and deposit with banks of $nil in Canadian Banking, -$1 million in International Banking (Q4/19: -$3 million, Q1/20: -$1 million, Q2/20: $1 million), -$1 million in Global Banking and Markets (Q4/19: -$1 million, Q3/20: $1 million), $nil in Global Wealth Management (Q3/20: -$1 million) and $2 million in Other (Q4/19: $1 million, Q1/20: $1 million, Q2/20: -$2 million) 2 Refer to Non-GAAP Measures on slide 40 for adjusted results 160 16#17International Retail: Loans and Provisions Markets with Greater MEXICO 1.8x 228 4011 550 591 CHILE Caribbean & CA 1.4x 1.7x 157 2161 2212,3 3671,3 Weighting to Secured 556 457 280 233 231 208 246 228 279 321 155 159 155 191 187 221 160 181 170 157 178 250 267 141 199 218 203 251 253 238 163 150 120 148 154 175 190 87 138 156 170 165 138 231 221 195 Q1 Q2 Q3 Q4 2019 Q11 Q2 Q3 Q4 2020 70 Q1 Q2 Q3 2019 Q4 Q11 Q2 Q3 Q4 Q1 Q22 Q3 Q4 2020 Q1 Q2 2019 Q3 2020 60 Q4 PERU COLOMBIA 2.4x 2.1x 4222 1,0021 435 9101 Markets with 1,552 Greater 1,322 Weighting to Unsecured 1,290 970 764 939 738 517 545 554 549 531 402 473 471 395 471 439 361 491 470 579 542 143 364 372 424 485 455 377 420 406 Q1 2019 Q2 Q3 Q4 Q11 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 Q11 Q2 Q3 Q4 2019 2020 PCL as a % of avg. net loans (bps) PCLs on Impaired Loans as a % of avg. net loans (bps) Loan Balances Q4/20 Mexico Peru Chile Colombia Caribbean & CA Total4 Secured ($B) $11 $3 $20 $2 $10 $46 Unsecured ($B) $2 $6 $5 $4 $3 $21 Spot Total ($B) $13 $9 $25 $6 $13 $67 1 PCL excludes impact of additional pessimistic scenario 2 Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans 3 Excludes impact of divested operations 4 Total includes other smaller portfolios 17#18Customer Assistance Programs (As of October 31, 2020) Retail Product Types¹ Canada Mortgages Number of customer accounts¹ Amount outstanding¹ % Current following Deferral Expiry 1,2 #('000s) % ($B) % Credit Cards Personal Loans³ Total/Average 6363 16 45.7% $4.26 87.1% 98.0% 8.6% $0.02 0.4% 85.3% 16 45.7% $0.61 12.5% 92.8% 35 100% $4.89 100.0% 97.2% Change from September 30, 2020 -$11.5 Change from July 31, 2020 -$36.6 International Mortgages 36 7.3% $3.70 61.6% 90.5% Credit Cards 299 61.4% $0.96 16.0% 81.6% Personal Loans³ 152 31.2% $1.34 22.4% 87.0% Total/Average 486 100.0% $6.00 100.0% 87.8% Change from September 30, 2020 -$2.5 Change from July 31, 2020 -$12.1 Canada International Total Commercial & Small Business ($B) 1 As at October 31st 2020 Deferral Balance ($B)5 Significant Decrease in Deferral Exposure Active Deferral Customers Active Total Exposures4 ($B) 74.3 69.6 -96% #('000s) 10.6 10.0 0.7 0.2 0.7 4.6 63.7 59.6 1.4 4.8 Q2/20 2 Canadian payments % includes accounts that have not yet completed first billing cycle since expiring 393% of active deferred Personal Loans in Canada are Auto Loans, 16% of active deferred Personal Loans in International are Auto Loans 4 Figures relate to active deferral exposures and exclude amounts related to covenant relief requests 5 Prior period amounts have been restated to conform to current period presentation 6 Of the $3.0 billion of deferral balance expected as at Q1/21, $1.1 billion relates to retail loans and $1.9 billion relates to commercial loans Q3/20 Retail 15.7 4.8 10.9 Q4/20 Commercial & Small Business 3.06 Q1/21E 18#19GILs and Net Write-Offs GILS¹ ($MM) AND GILS RATIO1, 2 84 bps 81 bps 81 bps 77 bps 78 bps 5,135 10 5,120 27 -237 1,087 4,770 1,106 31 -285 5,148 26 209 26 218 1,222 1,209 5,053 1,049 302 3,801 3,419 3,582 3,704 3,676 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 YEAR-OVER-YEAR HIGHLIGHTS GILS decreased 2% Q/Q and Y/Y. Lower new formations in retail due to deferrals have been offset by higher new formations in business banking GIL ratio was flat Q/Q, and down 3 bps Y/Y, primarily in International Banking NET WRITE-OFFS ($MM)², 3 AND NET WRITE-OFFS RATIO2, 3, 4 54 bps 49 bps 47 bps 47 bps 41 bps 827 749 27 732 750 1 8 13 33 632 256 26 260 265 266 227 • YEAR-OVER-YEAR HIGHLIGHTS Net write-offs³ decreased 16% Q/Q and Y/Y Higher write-offs in Global Banking and Markets were offset by lower write-offs in Canadian Banking and International Banking Net write-off ratio decreased 6 bps Q/Q and 8 bps Y/Y 544 481 454 450 379 Q4/19 International Banking Q1/20 Q2/20 Q3/20 Q4/20 Canadian Banking Global Banking and Markets 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 3 Net write-offs are net of recoveries 4 As a percentage of average net loans and acceptances 19#20Outlook Cautiously optimistic Brian Porter President & CEO Strong response to stimulus Continued earnings growth Strong capital ratios 20 20#21Appendix 21 24#22Economic Outlook in Core Markets Real GDP Growth Forecast (2019-2021) Real GDP (Annual % Change) Forecast 1,2 2010-19 Country 2020 2021 Average Q1 Q2 Q3E Q4F FY Q1F Q2F Q3F Q4F FY Canada 2.2 -0.9 -13.0 -4.7 -4.2 -5.7 -0.9 12.6 2.8 2.9 4.1 U.S. 2.3 0.3 -9.0 -3.5 -3.6 -3.9 -1.0 9.7 3.8 4.1 4.0 Mexico 2.7 -1.3 -18.7 -8.6 -7.1 -8.9 1.8 4.7 3.2 2.4 3.0 Peru 4.8 -3.5 -30.2 -6.7 -4.8 -11.5 -0.8 31.4 3.8 6.0 8.7 Chile 3.6 0.2 -14.1 -9.2 2.2 -5.2 1.2 14.9 7.6 -1.6 5.1 Colombia 3.8 1.4 -15.7 -9.3 -6.2 -7.5 -3.2 14.1 5.8 3.4 5.0 PAC Average 3.7 -0.8 -19.7 -8.5 -4.0 -8.3 -0.3 16.3 554 5.1 2.6 5.5 Source: Scotiabank Economics 1 Forecasts for Canada and U.S. as of the October 14, 2020 Scotiabank Global Forecast Tables 2 Forecasts for PAC countries as of the November 14, 2020 Latam Weekly publication 22 22#23Macroeconomic Scenarios Select Macroeconomic Variables that we used to estimate Expected Credit Losses Base Case Scenario Alternative Scenario - Alternative Scenario - Pessimistic Alternative Scenario - Pessimistic Front Loaded Next 12 months Canada Real GDP growth, Y/Y % change Unemployment rate, average % US Optimistic As at As at October 31, 2020 October 31, 2019 As at As at October 31, 2020 October 31, 2019 As at As at As at October 31, 2020 October 31, 2019 October 31, 2020 As at October 31, 2019 3.1 1.9 4.7 2.4 -2.0 1.3 -10.8 n/a 7.3 5.8 6.7 5.6 9.9 6.1 14.1 n/a Real GDP growth, Y/Y % change Unemployment rate, average % 2.5 1.8 3.6 2.3 -0.5 1.4 -7.4 6.3 3.9 6.1 3.7 8.1 4.0 10.5 Global WTI oil price, average USD/bbl Next 12 months 48 54 52 56 42 Quarterly breakdown of the projections for the above macroeconomic variables: n/a 금금 n/a 53 37 n/a Calendar Quarters Q4 2020 Q1 Q2 Q3 2021 2021 2021 Base Case Scenario Average October 31 2020 Calendar Quarters Q4 Q1 2019 2020 Q2 2020 Q3 2020 Average¹ October 31 2019 Canada Real GDP growth, Y/Y % change -3.9 -0.4 12.9 3.7 3.1 1.8 2.3 1.8 1.8 1.9 Unemployment rate, average % 8.1 7.1 6.9 6.9 7.3 5.8 5.9 5.9 5.9 5.8 US Real GDP growth, Y/Y % change Unemployment rate, average % -3.7 -1.1 9.9 4.8 2.5 2.1 1.7 1.5 7.7 6.6 5.8 5.4 6.3 3.9 3.9 4.0 245 1.3 1.8 4.0 3.9 Global WTI oil price, average USD/bbl 45 48 50 51 48 56 53 44 54 56 54 1 Average for October 31, 2019 computed over Q3/19 - Q2/20 Source: Scotiabank Economics, forecasts as of September 3, 2020 23 23#24COVID-19 Response in Core Markets Policy Action Canada United States Mexico Peru Chile Colombia Policy Rate Cuts 150 bps 150 bps 275 bps 200 bps 125 bps 250 bps (Since March 1, 2020) Fiscal & Financial Measures (% of GDP) Liquidity program 17.5% 13.5% 0.7% 20.0%¹ 17.5%¹ 2.8% Key Measures Wage and payroll support programs Payment deferral programs Small business and sectoral programs Loan guarantees Household income supplementary funds Retirement savings withdrawals Tax holidays Source: Scotiabank Economics. As at November 14, 2020 1 Includes pension withdrawals and deposit relief 24#25NIAT Excluding Divestitures 9,409 -6542 FY20-OVER-FY191 All-Bank -21% Y/Y 8,755 6,961 -602 6,901 FY19 Adj. NIAT Divestitures Related NIAT FY19 Adj. NIAT ex. Divestitures FY20 Adj. NIAT Divestitures Related NIAT FY20 Adj. NIAT ex. Divestitures 1 Refer to Non-GAAP Measures on slide 40 for adjusted results 2 Includes divestiture related NIAT of $60 million in FY20 for International Banking (FY19: $630 million); $nil in FY20 for Global Wealth Management (FY19: $17 million) and $nil of non-controlling interest for FY20 (FY19: $6 million) 25#26Net Income and Adjusted Diluted EPS Net Income ($MM) and EPS ($ per share) Q4/19 Q3/20 Q4/20 FY19 FY20 Net Income attributable to common $2,137 $1,332 $1,745 $8,208 $6,582 shareholders Dilutive impact of share-based payment options and others Quarterly diluted common shares outstanding may be impacted by dilutive effect of put options sold by the bank in the following legal entities: $42 ($43) $19 $142 $6 - Colpatria Net Income attributable to common shareholders (diluted) $2,179 $1,289 $1,764 $8,350 $6,588 - BBVA Chile Canadian Tire Financial Services Weighted average number of common 1,218 1,211 1,211 1,222 1,212 shares outstanding Dilutive impact of share-based 1 42 34 35 29 31 payment options and others Weighted average number of diluted 1,260 1,245 1,246 1,251 1,243 common shares outstanding Reported Basic EPS $1.76 $1.10 $1.44 $6.72 $5.43 Dilutive impact of share-based ($0.03) ($0.06) ($0.02) ($0.04) ($0.13) payment options and others Reported Diluted EPS $1.73 $1.04 $1.42 $6.68 $5.30 Impact of adjustments on diluted $0.09 - $0.03 $0.46 $0.06 earnings per share¹ Adjusted Diluted EPS $1.82 $1.04 $1.45 $7.14 $5.36 Refer to Non-GAAP Measures on Slide 40 for adjusted results 26#27Adjusting Items - Pre-Tax Adjusting Items (Pre-Tax) ($MM) Acquisition-Related Costs Q4/19 Q3/20 Q4/20 FY19 FY20 Day 1 PCL on acquired performing financial instruments 151 Integration Costs 79 40 Canadian Banking International Banking Global Wealth Management Amortization of Intangibles' 122639 34 10 28 12 9 642679 2262522 20 178 177 16 151 154 27 23 116 106 22 22 11 55 47 39 37 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 adjustments Global Banking and Markets Other 155 71 77 1 6 116 102 14 Net Loss/(Gain) on Divestitures 1 (44) 8 148 (298) Impairment charge of software assets 44 Total (Pre-Tax) 108 22 54 593 300 1 Excludes amortization of intangibles related to software (pre-tax) 27 22#28Adjusting Items - After-Tax and NCI Adjusting Items (After-Tax and NCI) ($MM) Acquisition-Related Costs Day 1 PCL on acquired performing financial instruments Integration Costs Canadian Banking International Banking Global Wealth Management 1 Amortization of Intangibles' Canadian Banking International Banking Global Wealth Management Other Allowance for Credit Losses - Additional Scenario Canadian Banking International Banking Global Wealth Management Global Banking and Markets Derivative valuation adjustments Global Banking and Markets Other Impairment charge of software assets Net Loss/(Gain) on Divestitures Total (After-Tax and NCI) 1 Excludes amortization of intangibles related to software (after-tax) Q4/20 After-Tax Q4/19 Q3/20 Tax NCI FY19 FY20 and NCI - 66 48248 % 45 24 38 19 7 20 18 8 232 225 486 5 15 147 4 7 19 2 3 2 223248 7 103 100 12 83 83 20 17 84 77 16 16 39 34 29 27 108 I I 2514522 85 75 10 32 (43) 50 5 308 (354) - 32 97 (1) 15 39 561 48 28#29Other Items Impacting Financial Results (Pre-Tax) ($MM)' Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q4/20 vs Q4/19 FY20 vs FY19 Canadian Banking Branch real estate gains Total 8 7 8 7 (15) (15) International Banking One month reporting lag elimination 58 51 (7) Impact of closed divestitures 210 217 190 213 74 1 (213) (755) Total 268 217 190 213 125 1 (213) (762) Global Wealth Management One month reporting lag elimination Impact of closed divestitures 2 7 Total 7 22 20 20 155 133 9 9 1 5. (34) 10 (5) (25) Other Metals business charges Total Total (Pre-Tax) 20 217 20 217 - 283 244 193 218 155 217 1 237 237 237 237 218 (565) (After-Tax and NCI) ($MM) Q4/20 vs FY20 vs Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q4/19 FY19 Canadian Banking Branch real estate gains Total 6 6 6 6 (12) (12) International Banking One month reporting lag elimination 41 37 (4) Impact of closed divestitures 163 162 147 158 59 1 (158) (570) Total 204 162 147 158 96 1 (158) (574) Global Wealth Management One month reporting lag elimination 6 6 Impact of closed divestitures 4 10 1 Total 10 1 22 (2) (17) 10 6 (2) (11) Other Metals business charges Total 20 Total (After-Tax and NCI) 214 178 148 160 Impact on diluted earnings per share $0.17 $0.14 $0.12 $0.13 $0.10 2222 212 232 212 232 122 212 1 (160) (365) $0.17 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, insurance and banking operations in El Salvador, and operations in British Virgin Islands 29 29#30Revenue Growth - Reported Canadian Banking1 -4% International Banking1,2,3 -15% Y/Y Y/Y 3,186 2,683 2,500 2,566 187 -2% 2,570 847 783 2,548 828 834 40 Y/Y 548 538 -81% 35 Y/Y -29% Y/Y 1,836 2,215 1,672 1,732 -6% 1,982 1,974 Y/Y -4% Y/Y Q4/19 Q3/20 Q4/20 Q4/19 Q3/20 Q4/20 Business Banking Latin America C&CA Asia Retail Banking Global Wealth Management Global Banking and Markets5 +1% +3% Y/Y4 Y/Y 1,545 +18% 1,149 1,135 1,165 -23% 188 143 145 1,170 1,210 Y/Y 654 Y/Y4 342 405 +1% 197 234 199 Y/Y 961 992 1,020 +6% Y/Y 631 657 606 -4% Y/Y Q4/19 Q3/20 Q4/20 Canada International Q4/19 Business Banking Q3/20 Q4/20 Global Equities FICC 1 May not add due to rounding 2 Y/Y growth rates are on a constant dollar basis 3 Excluding impact of divestitures and on a constant dollar basis, revenue growth in international banking was -6% Y/Y (Latin America -4%, C&CA -13%, Asia 9%) 4 Excluding impact of divestitures, Global Wealth Management revenue up 4% Y/Y and International Wealth Management revenue down 11% Y/Y 5 GBM LatAm revenue contribution and assets are reported in International Banking's results 30 90#31Deposit Growth by Business Line Canadian Banking1 248 +12% Y/Y 267 80 80 86 98 International Banking1,2,3 Global Banking and Markets³ 279 -2% Y/Y4 115 113 107 93 +16% Y/Y 75 77 +1% 71 Y/Y5 182 186 168 +11% Y/Y 40 40 -6% 36 36 Y/Y5 Q4/19 Q3/20 Q4/20 Q4/19 Q3/20 Q4/20 Personal Non-Personal 109 +37% Y/Y 148 149 Q4/19 Q3/20 Q4/20 Continued growth across both Personal & Non-Personal deposits 1 May not add due to rounding 2 Y/Y growth rates are on a constant dollar 3 Includes deposits from banks Deposits excluding impact of divested operations up 7% Y/Y, driven by Latin America 4 Average deposits declined 7% Y/Y on a reported basis. Excluding impact of divestitures and on a constant dollar basis, deposits grew 7% Y/Y 5 Excluding impact of divestitures and on a constant currency basis, non-personal deposits grew 5% Y/Y and personal deposits grew 10% Y/Y Continued focus on deposit generation, accelerated by customer liquidity requirements 31#32Sectors Most Impacted by COVID-19¹ Most Impacted Sectors as a % of Total Loans Trending Lower Canada Real Estate: Office and Retail C&CA $B %IG 4.70% 11% 4.10% Mexico 56% Office REIT $1.0 69% 4.00% 3% $8.6B Office Real Estate $3.3 48% 9% U.S. (1.4% of total loans) Retail REIT $1.3 97% Q2/20 Q3/20 Q4/20 7% Other Retail Real Estate $2.9 52% 1% 13% Europe Total² $8.5 58% Latin America Canada Other 25% Hospitality & Leisure 9% Total Loans $625.1B Energy E&P and Oilfield Services: 1.4% Real Estate Office = and Retail: 1.4% Transportation - Air 36% Travel: 0.5% U.S. Hospitality & Leisure: 0.8% $B %IG C&CA Hotels $4.0 24% $5.1B 17% (0.8% of total loans) Cruise Lines $0.3 0% 4% Latin America Gaming $0.8 1% 9% Total² $5.1 20% Mexico Transportation: Mexico Canada Latin America 12% 7% Air Travel 4% $B %IG C&CA 7% Total COVID-19 High Impact: 4.0% $3.0B Aircraft Finance $1.4 99% Other (0.5% of total loans) Airlines $0.3 4% 16% 54% Airports $1.3 75% Europe Total $3.0 81% 32 1 Sectors which have experienced the greatest disruption in normal business activities and impact to revenue due to the COVID-19 pandemic (including, but not limited to, government-mandated closures) relative to other sectors 2 May not add due to rounding#33Energy - E&P and OFS Exposure¹ Total Exploration & Production (E&P) Canadian E&P U.S. E&P Oilfield Services (OFS) Total E&P and Oilfield Services Exposure Loans and Acceptances Outstanding ($B) % of Total E&P and OFS % of Total Loans and Acceptances % Investment Grade Outstanding 7.2 85% 1.2% 52% 3.3 39% 0.5% 62% 0.9 10% 0.1% 14% 1.3 15% 0.2% 6% 8.5 100% 1.4% 45% Total Loans and Acceptances Outstanding reduced by $1.3B (13%) vs. Q3 · 45% is rated investment grade. 51% of Total Energy (including Midstream and Downstream) exposure is investment grade • • Outlook has improved due to the recent increase in oil prices Exploration & Production Canada (49%) 4.3 C&CA (0%) Majority of non-investment grade exposure is to secured reserve- based loans or sovereign owned/controlled entities 0.2 Europe E&P and OFS 0.4 (62%) Exposure by • Oilfield Services Geography · Majority of non-investment grade exposure is secured. Focused on companies with stronger liquidity and balance sheets $8.5B 0.6 • ACL coverage in E&P and OFS beyond Stage 3 Asia (94%) (%IG) 2.0 Latin America (40%) Maintained substantial Stage 1&2 ECL built in Q2 and Q3 through expert credit judgement 1.0 U.S. (12%) 1 As of October 31, 2020. Excludes Midstream and Downstream 33#341.75% 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.25% 0.00% 2007 2008 2009 0.44% 2010 0.00% 0.50% 0.40% 0.30% 0.19% 0.20% 0.10% 2007 2008 2009 0.90% 1.00% 0.75% 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures Average (2007-2020) 2011 2012 2013 2013 2010 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 0.12% 0.24% 2007 2011 2008 2012 2009 2013 2010 2011 211 0.59% Historical PCL Ratios on Impaired Loans 2012 2013 2013 CANADIAN BANKING¹ ALL BANK 1 0.56% 0.50% 0.47% 0.49% 0.45% 0.32% 0.40% 0.42% 0.43% 0.34% 0.36% 2014 2015 0.23% 0.37% 0.35% 0.28% 0.23% 0.18% 0.23% 0.23% 0.28% 0.29% 0.24% 0.29% 0.32% Avg: 27 bps INTERNATIONAL BANKING 2014 2015 1.27% 1.24% 1.26% 1.21% 0.86% 0.75% 2014 2015 2016 2017 2018 2019 1.49% 1.29% 1.30% H Avg: 100 bps 2020 34 2020 2018 2018 2019 2020 Avg: 41 bps#35Canadian Retail: Loans and Provisions' 1 1 MORTGAGES AUTO LOANS 216 224 85 96 4 4 2 2 1 84 94 99 105 106 81 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 LINES OF CREDIT² 164 169 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 CREDIT CARDS 1,002 896 72 80 381 385 79 400 70 73 87 74 65 59 379 377 445 401 312 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 PCL as a % of avg. net loans (bps) Loan Balances Q4/20 Spot ($B) % Secured Mortgages $245 100% 1 Includes Wealth Management. PCL excludes impact of additional pessimistic scenario 2 Includes Home Equity Lines of Credit and Unsecured Lines of Credit 3 Includes Tangerine balances of $6 billion and other smaller portfolios 4 82% secured by real estate; 12% secured by automotive Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 PCLs on Impaired Loans as a % of avg. net loans (bps) Auto Loans Lines of Credit² Credit Cards Total $39 100% $33 $6 $3253 64% 3% 94%4 35#36International Banking: Pacific Alliance 1, 2, 3 FINANCIAL PERFORMANCE AND METRICS ($MM) Q4/20 Q3/20 Q4/19 Q/Q Y/Y Revenue ($MM) 1,842 1,833 2,030 3% -2% Expenses ($MM) 883 846 947 7% 2% PTPP ($MM) 959 987 1,084 0% -5% Net Income ($MM) 216 63 438 291% -47% NIM 4.08% 4.04% 4.63% 4 bps -55 bps Productivity Ratio 48.0% 46.1% 46.6% 180 bps 130 bps 16% Colombia 27% Chile REVENUE 5 $1.84B GEOGRAPHIC DISTRIBUTION4 1% 30% Colombia Mexico 44% NET INCOME 1,3,5 $216MM 28% Chile Peru 1 Attributable to equity holders of the Bank 2 Y/Y and Q/Q growth rates (%) are on a constant dollar basis, while metrics and change in bps are on a reported basis 3 Refer to Non-GAAP Measures on slide 40 for adjusted results 4 For the 3 months ended October 31, 2020 5 May not add due to rounding 38% 10% Mexico Colombia 38% 17% Chile Peru AVG EARNING ASSETS4 $136B 30% Mexico 22% Peru 36#37(# of days in quarter) Trading Results ZERO TRADING LOSS DAYS (Q4/20) TRADING REVENUE & ONE-DAY TOTAL VAR (Q4/20) 25 20 20 15 10 5 1.I 40 30 20 10 им wh Average 1-Day Total VaR Q4/20: $ 16.7 MM Q3/20: $ 30.5 MM Q4/19: $13.6 MM 0 -10 -20 0 -30 T T T T T T 3456789 10 15 20 25 30 >30 Q4/20 Daily Trading Revenues ($MM) 1-day total VaR Actual Daily Revenue 37#38Digital Progress Surpassed medium-term goal of <10% In-Branch Financial Transactions at All-Bank level. Delivered >50% in Digital Sales in the Pacific Alliance region New Canadian mobile app with simplified layouts, improved discoverability, and enhanced analytics to drive user experience Improving Customer Pulse scores in our digital channels. Peru reached record levels in digital with 70%+ in October Launched new digital account opening solutions across all markets integrating Digital and Physical experiences, greatly reducing processing time The Banker INNOVATION IN DIGITAL BANKING AWARDS 2020 Winner North America σ #1 Ranked #1 in Customer Satisfaction with Online Banking by J.D. Power Digital Retail Sales¹ +2,500 bps 36 28 22 15 11 Digital Adoption² In-Branch Financial Transactions³ +2,200 bps -1,800 bps 48 26 23 39 20 33 29 16 26 8 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Goal >50% Goal >70% Goal <10% 1 Canada: F2017 22%, F2018 26%, F2019 26%, F2020 16% PACS: F2017 13%, F2018 19%, F2019 29%, F2020 51% 2 Canada: F2017 36%, F2018 38%, F2019 42%, F2020 50% PACS: F2017 20%, F2018 26%, F2019 35%, F2020 46% 3 Canada: F2017 17%, F2018 15%, F2019 12%, F2020 7% PACS: F2017 29%, F2018 24%, F2019 19%, F2020 9% 38#39Retail 90+ Days Past Due Loans CANADA1 Q4/19 Q1/20 Q2/202 Q3/20² Q4/202 Mortgages 0.20% 0.21% 0.21% 0.19% 0.15% Personal Loans 0.58% 0.63% 0.72% 0.63% 0.51% Credit Cards 0.98% 1.02% 1.12% 0.81% 0.70% Secured and Unsecured Lines of Credit 0.26% 0.25% 0.26% 0.23% 0.19% Total 0.28% 0.29% 0.30% 0.26% 0.21% INTERNATIONAL 1 Includes Wealth Management 2 Does not reflect impact of payment deferral programs Q4/19 Q1/20 Q2/202 Q3/202 Q4/202 Mortgages 3.10% 2.65% 3.05% 2.94% 2.70% Personal Loans 3.59% 3.89% 4.04% 4.02% 4.19% Credit Cards 3.26% 3.26% 3.35% 2.72% 2.61% TOTAL 3.26% 3.22% 3.36% 3.18% 3.05% 39#40Non-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) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP and do not have standardized meanings that would ensure consistency and comparability among companies using these 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 slide presentation presents reconciliations of GAAP Reported financial results to non-GAAP Adjusted financial results. The financial results have been adjusted for the following: Acquisition and divestiture-related amounts - Acquisition and divestiture-related amounts are defined as: 1) 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. 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. 3. 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. B) Net (gain)/loss on divestitures - The Bank announced a number of divestitures in accordance with its strategy to reposition the Bank. The net (gain)/loss on divestitures is recorded in the Other segment, and relates to the following divestitures (refer to Note 37 for further details): Operations in Antigua and Barbuda (announced Q4, 2020) • Operations in British Virgin Islands (closed Q3, 2020) • Operations in Belize (announced Q3, 2020) 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) • Insurance and pension operations in the Dominican Republic (closed Q2, 2019) 2) Valuation-related adjustments, recorded in Q1, 2020-pre-tax $315 million - The Bank modified its allowance for credit losses measurement methodology 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 an increase in provision for credit losses of $155 million which was recorded in Canadian Banking, International Banking, Global Wealth Management and Global Banking and Markets operating segments. The Bank enhanced its fair value methodology primarily relating to uncollateralized OTC derivatives which resulted in a pre-tax charge of $116 million. This charge was recorded in the Global Banking and Markets and Other operating segments. The Bank also recorded an impairment loss in the Other operating segment of $44 million pre-tax, related to one software asset. 40#41Investor Relations Contact Information Philip Smith, Senior Vice-President 416-863-2866 [email protected] Sophia Saeed, Vice-President 416-933-8869 [email protected] Rene Lo, Director 416-866-6124 [email protected] 41