#1Fixed Income Investor Presentation Fourth Quarter 2019 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#3TABLE OF CONTENTS Scotiabank Overview • • • • • • Leading Bank in the Americas Well-Diversified Business with Strong Returns Why Invest in Scotiabank? Well Positioned in Higher ROE Markets Economic Outlook in Core Markets Q4 2019 Financial Performance Fiscal 2019 Financial Performance Repositioning is Substantially Complete Acquisition & Divestiture Activity • Recent Acquisition Activity • . Earnings and Dividend Growth • Strong Capital Generation 4 • Growth in Digital Banking Environmental, Social & Governance (ESG) Business Line Overview: Canadian Banking Business Line Overview: International Banking Business Line Overview: Global Banking and Markets Risk Overview . • • . • Risk Snapshot Credit Performance by Business Lines Historical PCL Ratios on Impaired Loans Canadian Retail: Loans and Provisions International Retail: Loans and Provisions Energy Exposure Treasury and Funding Funding Strategy • Wholesale Funding • Deposit Overview • Wholesale Funding Utilization • Liquidity Metrics Appendix 1: Key Market Profiles Appendix 2: Canadian Housing Market Appendix 3: Bail-in and TLAC Appendix 4: Covered Bonds Appendix 5: Additional Information Contact Information 5 6 7 8 9 10 11 12 13 14 15 16 17 18 20 29 39 42 43 44 45 46 47 48 49 50 51 52 53 54 55 62 68 72 76 79 3#4• Stronger second half performance to finish 2019 with positive operating leverage Scotiabank Overview: 2019 Repositioning of business substantially complete Greater geographic focus, increased scale in core markets, and improved business mix · Strong credit quality. Stable credit metrics. Positioned for higher capital ratios, active buybacks, and sustainable long-term earnings growth 4#5Leading Bank in the Americas¹ Core markets: Canada, US, Mexico, Colombia, Peru and Chile 7th largest bank by assets¹ 9th largest bank by market capitalization¹ Canada (AAA) Full-Service, Universal Bank Scotiabank³ Revenue Change FY2019 FY19/FY18 $31.2B +8% Net Income $9.4B +3% #3 Bank Canada Mexico Return on Equity 13.9% -100 bps Peru Operating Leverage4 -0.6% n.a. United States Chile Colombia Productivity Ratio 52.7% +100 bps (AA+) Caribbean Top 15 FBO Total Assets $1.1T +9% Uruguay Colombia (BBB-) Mexico (BBB+) #6 Bank #6 Bank USA Peru (BBB+) #3 Bank 2018 Bank of the Year Latin America and the Caribbean by Latin Finance Chile (A+) #3 Bank Ranking by Market Share5 Wholesale Operations Canada #3 USMCA USA Top 15 Foreign Bank UK Mexico #6 Singapore Peru #3 Australia PAC Ireland Hong Kong SAR Chile Colombia #3 #6 China Brazil South Korea Malaysia Earnings by Market3,6 Other C&CA India Japan 8% 5% PAC 23% 1 Source: Bloomberg November 20, 2019; 2 By assets and market capitalization; 3 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs; 4 Exclude the pension revaluation benefit gain of $203MM pre-tax, $150MM after-tax in Q1/18; 5 Ranking based on market share in loans as of September 2019 for PACs (incl. M&A), as of July 2019 in Canada for publically traded banks; 6 Adjusted net income attributable to equity holders of the Bank for the twelve months ended October 31, 2019 Americas (~90%) 55% Canada 9% U.S.A 5#6Well-Diversified Business with Strong Returns Diversified by business and by market, providing stability and lowering risk Earnings by Business Line 1,2,3 Wealth Management 13% Global Wealth Management 13% Caribbean and Earnings by Market¹,2 Central America Colombia 2% C&CA Other 8% 5% Europe, Asia, Brazil, Australia Wholesale Banking 17% Global Banking & Markets 17% Canadian Banking FY 2019 P&C 38% EARNINGS MIX $9.2B3 International Banking P&C 32% Personal & Commercial Banking 70% Chile 6% Peru 9% FY 2019 EARNINGS MIX $9.2B3 Mexico 6% U.S. 9% Adjusted Return on Equity 12 by Division 19.0% 14.8% 13.3% 13.9% Canadian Banking International Banking Global Banking and Markets All Bank Canada 55% 1 Net income attributable to equity holdersor for the twelve months ended October 31, 2019; 2 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs; 3 Excluding Other segment 6#7Why Invest in Scotiabank? , $ Leading bank in the Americas • Strong foundation in Canada. Unique footprint in Americas provides diversification with growth. • Strong balance sheet, capital and liquidity ratios • Attractive return on equity and dividend growth Diversified exposure to high quality growth markets Leading Canadian bank. Top 15 foreign bank in U.S. Leading bank in the Pacific Alliance growth markets of Mexico, Peru, Chile and Colombia Increasing scale and market share in core markets Improved earnings quality, lower risk profile · Strengthening competitive advantages in technology and talent • Gaining scale and market share in six core markets of Canada, US, Mexico, Peru, Colombia and Chile Competitive advantages in technology, risk management, and funding versus local competitors Increasing scale in Wealth Management and P&C businesses > 80% of earnings from core P&C banking and wealth businesses; > 80% of earnings from 6 core markets Lowered operational risk with more focused footprint (announced or completed exit from 21 countries and 11 businesses since 2013) Strong Canadian risk management culture: strong capabilities in AML and cybersecurity High levels of technology investment supports digital banking strategy to increase digital sales and adoption Named to Top 25 "World's Best Workplaces" (2018) 7#8Well Positioned in Higher ROE Markets Banking ROE by Market¹ 25.0% 19.1% 20.0% 15.0% 10.0% 5.0% 0.0% 15.3% 12.1% 11.0% 6.7% Pacific Alliance Mexico Peru Colombia Chile Canada US Asia Europe Royal Bank TD Bank Scotiabank JP Morgan China Germany BofA Japan UK Citigroup South Korea France BMO CIBC India Spain Indonesia Malaysia Switzerland Italy Vietnam Netherlands Wells Fargo SunTrust US Bancorp BB&T PNC Financial Fifth Third M&T Philippines Hong Kong 1 Return on equity in latest reporting period for leading bank by market share in loans for each country. Canada and US figures are average for leading banks. Belgium Denmark 8#9Economic Outlook in Core Markets Growth in Pacific Alliance expected to be above that of Canada and the U.S. in 2020 2019-2020 REAL GDP GROWTH FORECAST (%) Real GDP (Annual % Change) 2000-18 Country 2019f 2020f average Mexico 2.2 0.0 1.0 Peru 4.9 2.3 3.0 Chile 3.9 1.0 1.4 Colombia 3.8 3.2 3.6 PAC Average 3.7 1.6 2.3 Canada 2.1 1.6 1.5 U.S. 2.1 2.3 1.6 Source: Scotiabank Economics. Forecasts as of January 6, 2020. 9#10Q4 2019 Financial Performance Strong revenue growth and positive operating leverage $MM, except EPS Q4/19 Y/Y Q/Q Reported YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 2%² ○ Other items reduced net income growth by 2%3 Pre-tax, pre-provision profit (PTPP) up 8%² Revenue up 7%² О Net interest income up 3% О Non-interest income up 12%2 • Net Income $2,308 +2% +16% Pre-Tax, Pre Provision Profit $3,657 +8% +6% Diluted EPS $1.73 +1% +15% . Revenue $7,968 +7% +4% Expenses $4,311 +6% +2% Productivity Ratio 54.1% (50 bps) (90 bps) • Operating leverage of +1.0%2 Core Banking Margin 2.40% (7 bps) (5 bps) . PCL Ratio¹ 50 bps +11 bps +2 bps PCL Ratio on Impaired 49 bps +7 bps (3 bps) Loans¹ Adjusted² Expense growth of 6%2 Higher PCL ratio on impaired loans 1. Y/Y increase driven by hurricane-related recoveries in Q4/18 ADJUSTED NET INCOME4, 5 BY BUSINESS SEGMENT ($MM) Net Income $2,400 +2% (2%) +1% Y/Y Pre-Tax, Pre Provision Profit $3,765 +8% (2%) +4% Y/Y4 Diluted EPS $1.82 +3% (3%) 1,146 1,160 Revenue $7,962 +7% 746 Expenses $4,197 +6% Productivity Ratio 52.7% (50 bps) +2% +100 bps -3% Y/Y 416 405 Canadian Banking International Banking Global Banking and Markets ■ Q4/18 ■ Q4/19 781 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Adjusted for Acquisition and divestiture-related amounts, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses on divestitures and related costs 3 See Slide 20 for Other Items Impacting Financial Results 4Y/Y growth rate is on a constant dollars basis 5 After non-controlling interest 10#11Fiscal 2019 Financial Performance Stronger second half performance to finish 2019 $MM, except EPS 2019 Y/Y Reported YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 3%² • ○ Other items reduced net income growth by 4%³ Pre-tax, pre-provision profit (PTPP) up 6%² Revenue up 8%2 О Net interest income up 6% Non-interest income up 11%² Net Income $8,798 +1% Pre-Tax, Pre Provision Profit $14,297 +4% Diluted EPS $6.68 (2%) • Revenue $31,034 +8% Expenses $16,737 +11% Productivity Ratio 53.9% +160 bps Core Banking Margin 2.44% (2 bps) . Operating leverage of -2.1%² or -0.6% 2, 4 PCL Ratio1 51 bps PCL Ratio on Impaired Loans¹ 49 bps +3 bps +6 bps • Higher PCL ratio on impaired loans¹ Adjusted² ADJUSTED NET INCOME², 5 BY BUSINESS SEGMENT ($MM) Expense growth of 10%², or 9% 2,4 excluding 2018 pension revaluation benefit gain Net Income $9,409 +3% Pre-Tax, Pre Provision Profit $14,739 +6% +2% Y/Y Diluted EPS $7.14 +13% Y/Y -13% Y/Y Revenue $31,161 +8% 4,416 4,485 Expenses $16,422 Productivity Ratio 52.7% PCL Ratio 1,2 49 bps +10% +100 bps +8 bps 2,819 3,188 1,758 1,534 Canadian Banking International Banking Global Banking and Markets ■ 2018 ■ 2019 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs 3 See Slide 20 for Other Items Impacting Financial Results 4 Excluding the pension revaluation benefit gain in 2018 of $203 million pre-tax 5 After non-controlling interest 11#12Repositioning is Substantially Complete P Simplified the Bank 20 non-core (higher risk, low growth) countries exited since 2014 10 non-core (non-customer facing, low return) businesses exited since 2014 >90% of earnings generated from America's footprint Improved Earnings Quality >80% of earnings from six core markets (Canada, the US and Pacific Alliance) • Targeting higher earnings contribution from stable P&C Banking and Wealth Management businesses • Targeting 65%-70% from P&C Banking, ~15% from Global Wealth Management De-Risking the Bank • Improving credit quality metrics and generating higher mix of earnings from investment grade countries Exits from sub-investment grade, low growth jurisdictions Gross impaired loans ratio decreased from 110 bps in 2017 to 78 bps (pro forma) in 2019 12#13Recent Acquisition Activity 2018-2019 Increasing Scale via Strategic Acquisitions Canada $3.5B MD MD Financial Management CMA Companies JARISLOWSKY FRASER GLOBAL INVESTMENT MANAGEMENT Adds wealth management assets of $96B. Adds 110,000 potential primary customers. Expands wealth management offering. Doubles market share. Chile $2.9B BBVA Creates 3rd largest bank. Further diversifies business. Peru $0.2B banco cencosud Creates 2nd largest bank in credit cards. Further diversifies business. Colombia $0.4B citibank Creates market leader in credit cards. Dominican 画 Republic $0.4B PROGRESO. Doubles customer base. Creates 4th largest bank. 13 33#14Acquisition & Divestiture Activity 2015-2019 2015 2016 0 Divestitures/Exits: $9B Acquisitions: $7.5B Egypt Cencosud (Chile) 00 Citibank (Peru) Turkey JPMorgan Chase Credit Card Portfolio M Haiti Vietnam UAE Citibank (Panama) Citibank (Costa Rica) Taiwan 2017 2018 MD Financial, Jarislowsky Fraser BBVA (Chile) Citibank (Colombia) France Hollis Wealth CrediScotia (Jamaica) Banco Progreso (Dominican Republic) 2019 Cencosud (Peru) 2020 *Announced and pending. Thailand* PR/USVI* Pension & Insurance (Dominican Republic) Insurance (Trinidad & Tobago) Pension (Colombia) El Salvador* 7 Leeward Islands British Virgin Islands* 14#15Earnings and Dividend Growth Strong track record of stable and predictable earnings and growing dividends Earnings per share (C$)1,2 $3.31 +8% CAGR $7.14 Total shareholder return³ Scotiabank Big 5 Peers (ex. Scotiabank) 11.9% 12.0% 11.9% 9.8% 8.8% 6.4% 09 10 11 12 13 14 15 16 17 18 19 5 Year 10 Year 20 Year Dividend per share (C$) $1.96 09 10 11 12 13 +6% CAGR 14 15 16 17 18 1 Reflects adoption of IFRS in Fiscal 2011. 2 Excludes notable items for years prior to 2016. For 2016 onwards, results adjusted for acquisition-related costs including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions and amortization of intangibles related to current and past acquisitions. 3 As of October 31, 2019 $3.49 19 15#16Strong Capital Generation Clear path to higher capital ratio CET1 Ratio 11.2% ~11.55% ~50 bps -4 bps 11.1% +25 bps -20 bps -8 bps -7 bps +3 bps Q3/19 Earnings Less Dividends RWA Impact (ex. FX) Share Buybacks (Net of Issuances) Foreign Exchange Translation Non-core Divestitures Other (net) Q4/19 Reported Impact of Announced Divestitures Q4/19 Pro-Forma Internal Generation Strong Capital Levels 14.3% 1.8% 1.4% 14.7% 14.6% 14.8% 14.2% 2.1% 2.2% 2.5% 2.0% 1.4% 1.4% 1.1% 1.1% 11.1% 11.1% 11.1% 11.2% 11.1% Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 CET1 Tier 1 Tier 2 16#17Growth in Digital Banking Steady progress against digital targets Digital Retail Sales¹ +1,700 bps Digital Adoption² +1,300 bps 15 11 22 22 In-Branch Financial Transactions³ -1,000 bps 28 39 26 33 23 29 20 26 16 F2016 F2017 F2018 F2019 F2016 F2017 F2018 F2019 F2016 F2017 F2018 F2019 Goal >50% Goal >70% Goal <10% • Sales grew 600 bps against Q4 of last year • Strong progress made across key markets; key highlight includes Colombia improving >1,000 bps against Q4 of last year In-branch transactions decreased the most in 3 years; 400 bps against Q4 of last year 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% 17#18Environmental, Social & Governance (ESG) Highlights from 2019 E Environmental TRUST S Social We are here for every future G Governance Announced our commitment to mobilize $100 billion by 2025 to reduce the impacts of climate change Issued inaugural USD 500 million Green Bond of which proceeds were used to fund assets under the Scotiabank Green Bond Framework. Includes the categories of renewable energy, clean transportation and green buildings Directed proceeds of internal fee on carbon into renewable energy & efficiency initiatives, and are on track to achieve a greenhouse gas reduction target of 10% by 2021 compared to 2016 Launched our new, more efficient workspace model at our head office in Toronto, Canada, which has to date reduced greenhouse gas emissions by 741 tonnes and is expected to reduce paper use by 86% • Invested nearly $100 million globally in communities where we operate as part of our global philanthropy program Committed $3 billion in funding over the first three years of The Scotiabank Women Initiative to advance women-led businesses in Canada Signed the UN Women's Empowerment Principles and UN LGBTI Codes for Business Conduct Continued to deliver on our commitment of $250 million over 10 years to help employees adapt to the digital economy Served as the lead bank in Canada in the Finance Against Slavery and Trafficking initiative, the Financial Access project, to open accounts for survivors of modern slavery • • For the second consecutive year, ranked by the Dow Jones Sustainability Index as among the top 1% of global financial institutions for Corporate Governance 38% of our directors are female. We first established a Board diversity policy in 2013 Appointed Mr. Aaron Regent as Chairman of the Board. Mr. Regent is Scotiabank's third independent Chairman, as we have separated the CEO and Chairman roles since 2004 Dedicated significant Board time to cybersecurity, anti-money laundering, conduct and culture issues, keeping the Bank safe#19Environmental, Social & Governance (ESG) Scotiabank Climate Commitment to mobilize $100 billion by 2025 to reduce the impacts of climate change. This is detailed in our External Position Statement. Memberships, Associations and Partnerships MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM SAM Sustainability Award Industry mover 2019 SAM Sustainability Award Bronze Class 2019 2019 = Bloomberg Gender Equality Index TOP 100 COMPANY 2018 Thomson Reuters Diversity & Inclusion Index REFINITIV TOP 100 COMPANY 2019 Diversity and Inclusion Index UN GLOBA COMPACT SUSTAINABLE DEVELOPMENT GOALS CARBON PRICING LEADERSHIP COALITION United Nations UNH Global Compact WOMEN E TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES FINANCE UNEP INITIATIVE PRI Principles for Responsible Investment #CDP DRIVING SUSTAINABLE ECONOMIES EQUATOR PRINCIPLES CP LC 199 19#20Business Line Overview Canadian Banking 20#21Canadian Banking Top 3 bank in personal & commercial banking, wealth and insurance in Canada Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to Retail, Small Business, Commercial Banking, and Wealth Management customers. Canadian Banking also provides an alternative self-directed banking solution to over 2 million Tangerine Bank customers. Retail 55% REVENUE MIX1 $3.6B Commercial 18% Residential Mortgages 60% MEDIUM-TERM FINANCIAL OBJECTIVES Target² 2019 3,4.5 AVERAGE LOAN MIX1 Net Income Growth6 7%+ +2% $358B Productivity Ratio <49% 49.4% 2% 27% Credit Cards CB ex Wealth 21% <45% 45.4% Wealth 17% Business and Government Loans Personal Loans Wealth <65% 61.6% STRATEGIC OUTLOOK Improve Sustained Business Performance: Invest to grow our higher ROE businesses, including Business Banking, to deliver consistent and stable long-term earnings growth ⚫ Instill a Winning team Culture: Engage employees through a RESULTS (Revenue, Earnings, Simplify, Urgency, Listen, Trust, Support) focused culture Superior Customer Experience: Develop deeper household relationships for our customers across Canada by providing differentiated focus and service to those who are most loyal and engaged Scale our unique partnerships and assets: Leverage our long-term partnerships and assets like MLSE, Scene and Wealth businesses to generate growth across our division For the three months ended October 31, 2019; 23-5 year target; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions; *Reflects adoption of new accounting standard, IFRS 15; 5 For the twelve months ended October 31, 2019; 5 Attributable to equity holders of the Bank 21#22Canadian Banking Margin expansion, strong deposit growth, positive operating leverage YEAR-OVER-YEAR HIGHLIGHTS $MM, except EPS Q4/19 Y/Y Q/Q Reported Net Income¹ $1,143 +3% (1%) Pre-Tax, Pre Provision Profit $1,787 +5% (1%) Revenue $3,566 +4% +1% Expenses $1,779 +2% +3% PCLS $247 +25% +3% • Productivity Ratio 49.9% (80 bps) Net Interest Margin 2.47% +2 bps +110 bps (2 bps) PCL Ratio² 0.27% +4 bps • PCL Ratio Impaired Loans² 0.28% +6 bps (1 bp) Adjusted³ Net Income¹ $1,160 +1% (1%) Pre-Tax, Pre Provision Profit $1,811 +4% (1%) • Expenses $1,755 +3% +3% Productivity Ratio 49.2% (30 bps) +90 bps • 1,3 ADJUSTED NET INCOME ¹³ ($MM) AND NIM (%) 2.45% 2.44% 2.46% 2.49% 2.47% 1,146 1,089 1,062 1,174 1,160 • Adjusted Net Income up 1%³ o Lower real estate gains reduced net income growth by 2% o Margin expansion. Higher PCLS o Wealth Management earnings up 15% Revenue up 4% o Net interest income up 5% o Excluding M&A and IFRS 15, revenue was up 3% Loan growth of 5% o Residential mortgages up 5%; credit cards up 6% o Business loans up 11% Deposit growth of 9% o Personal up 6%; Non-Personal up 16% NIM up 2 bps o Primarily driven by the impact of prior rate increases Expenses up 3%³ o Technology and regulatory initiatives o Excluding M&A and IFRS15, expenses were up 2% Quarterly operating leverage of +0.6%³ ; full-year operating leverage flat³ Q2/19 Q3/19 Q4/19 • PCL ratio² up 4 bps to 27 bps 2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Q4/18 Q1/19 1 Attributable to equity holders of the Bank 22 22#23Canadian Banking: Financial Performance High quality retail loan portfolio: ~92% secured • High quality residential mortgage portfolio 。 39% insured; remaining 61% uninsured has a LTV of 55%¹ • Market leader in auto loans o $38.6 billion auto loan portfolio with 7 OEM relationships (3 exclusive) o Prime Auto and Leases (~91%) 。 Stable lending tenor with contractual terms for new originations averaging 78 months (6.5 years) with projected effective terms of 54 months (4.5 years) • Growth opportunity in credit cards o $7.7 billion credit card portfolio represents ~3% of domestic retail loan book and 1.3% of the Bank's total loan book o Organic growth strategy focused on payments and deepening customer relationships o Upside potential from existing customers: over 80% of growth is from existing customers (penetration rate mid-30s and trending up versus peers in the low-40s) 。 Strong risk management culture with specialized credit card teams, customer analytics and collections focus 5% Unsecured 79% Real Estate Secured Lending DOMESTIC RETAIL LOAN BOOK² $300.8B 3% Credit Cards 13% Automotive 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 Spot Balance as of October 31, 2019 23 23#24Canadian Banking: Residential Mortgages High quality, diversified portfolio • Residential mortgage portfolio of $227 billion: 39% insured; LTV 55% on the uninsured book1 。 Mortgage business model is "originate to hold" o New originations² in fiscal year 2019 had average LTV of 64.5% 。 Majority is freehold properties; condominiums represent approximately 14.1% of the portfolio ⚫ Three distinct distribution channels: all adjudicated under the same standards o 1. Broker (~62%); 2. Branch (~18%); and 3. Mobile Salesforce (~20%) o Our recently launched Scotiabank eHOME digital mortgage solution is emerging as our 4th distribution channel. Most recently, we launched the ability for Canadians to get pre-approved online with a credit decision and a pre-approval letter in just minutes - another first for the industry. We have also partnered with the Canadian Real Estate Association (CREA) to enable customers to search for a home directly within eHOME, making the entire home-buying journey digital CANADIAN MORTGAGE PORTFOLIO: $227B (SPOT BALANCES AS AT Q4/19, $B) Freehold $195B - 39% Condos - $32B Insured $116.6 $14.2 $102.4 $42.2 $30.8 $10.7 $3.7 $16.4 - $1.9 $31.5 $27.1 $14.5 $11.1 $10.9 - $0.2 Ontario BC & Territories Alberta Quebec Atlantic Provinces $9.5 $8.8 Manitoba & - $0.7 % of Saskatchewan portfolio 51.5% 18.6% 13.6% 7..2% 4.9% 4.2% 1LTV 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 Total Portfolio: $227 billion 61% Uninsured 24#25Canadian Residential Mortgages: LTVs Credit fundamentals remain strong NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION GVA 64% Q4/18 Q3/19 Q4/19 Canada Total Originations ($B) 10.5 14.0 13.3 Uninsured LTV 63% 64% 65% GTA 64% GTA BC & Territories Total Originations ($B) Uninsured LTV 3.2 4.5 4.2 62% 63% 64% 65% GVA Atlantic Prairies 69% ON QC Provinces 65% 68% 67% Total Originations ($B) Uninsured LTV 1.1 1.6 1.6 59% 61% 64% *Average LTV ratios for our uninsured residential mortgages originated during the quarter FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO1 Average FICO® Score 58% Canada 788 GTA 790 GVA 794 4% 15% 11% 12% < 635 636-706 FICO is a registered trademark of Fair Isaac Corporation 707-747 1 FICO distribution for Canadian uninsured portfolio based on score ranges at origination 2 Percentage is based on Total Mortgages 748-788 > 788 • Only <0.77% of uninsured portfolio² has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $139 billion as at Q4/2019 25 25#26Canadian Housing Market Return to equilibrium Significant Moderation in Price Growth* Aggregate Composite MLS Home Price 25 Index Y/Y Percentage Change 20 50 45 15 10 15 0 -5 -10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Sources: Scotiabank Economics, CREA. *Actual - not seasonally adjusted Canada's Five Largest Metropolitan Areas* 10 MLS Home Price Index Benchmark 8 Price Y/Y Percentage Change 7.61 6 4 5.82 Average 2 0.46 0 -2 -4 2 468 -6 -8 GTA -6.44 Volume of Home Sales Near 10-Year Average* Units, 000s 40 40 35 30 25 Monthly home sales Av. 10-year monthly moving avg. 20 07 08 09 10 11 12 13 14 15 16 Sources: Scotiabank Economics, CREA. 17 18 19 *Seasonally adjusted Decline in Share of High-Risk Mortgages 25 20 15 -2.27 -2.44 10 GVA Montreal Calgary Sources: Scotiabank Economics, CREA. *Actual - not seasonally adjusted % Share of new mortgages with a loan-to-income ratio greater than 450% Mortgage insurance 5 rules tightened B-20 guideline revised 0 Edmonton Dec-14 Jun-15 Dec-15 Jun-16 -High-ratio mortgages Dec-16 Jun-17 Dec-17 Low-ratio mortgages Jun-18 Dec-18 Total mortgages Sources: Scotiabank Economics, Bank of Canada Financial System Review 2019. 26#27Automotive Finance Canada's leader in automotive finance • Provide personal and commercial dealer financing solutions, in partnership with seven leading global automotive manufacturers in Canada • Portfolio grew 4%1 year-over-year о Personal up 5%, Commercial down 4% Commercial 13% Near-Prime Retail AVERAGE ASSET MIX 8% $44.6B1 79% 100% Secured Market Share² Prime Retail Market Share³ 39% 61% Prime Retail Exclusive Relationships MAZDA VOLVO JAGUAR/LAND ROVER Semi-Exclusive Relationships* HYUNDAI CHRYSLER GM TESLA * 1 to 2 other financial institutions comprise Semi-Exclusive relationships Near-Prime Retail Market Share4 76% 24% Commercial Floorplan Market Share5 72% 28% 1 For the three months ended October 31, 2019; 2 Data as at June 2019; 3 CBA data, includes BMO, CIBC, HSBC, National Bank, RBC, Scotiabank, TD; DealerTrack Portal data, includes all Near-Prime Retail providers on Dealer Track Portal, data for October 19 originations; 5 Includes BMO, CIBC, RBC, Scotiabank, TD, HSBC, Canadian Western Bank, Laurentian Bank, data as of March 2019 27 22#28Tangerine | Canada's #1 Digital Bank Tangerine Forward Banking Leading Edge Brand Experience 2.3 million Clients No.1 NPS Industry Leading Client Experience 10 No.1 Mid-Sized Bank Ranked No. 1 Mid-Sized Bank in Client Satisfaction by J.D. Power No.1 Credit Card Ranked highest in Credit Card Satisfaction by J.D. Power STRATEGIC FOCUS: • • • . • Customer Experience Leadership Enhanced customer experience through digital moments Best in class onboarding and security Product Innovation Focused product innovation to enhance client offering Al-driven approach to help Canadians achieve their financial goals Strategic Partnerships Focused on driving national brand awareness and new client acquisition as the Official Bank of the Raptors Deepening client relationships through introducing SCENE Loyalty program to Tangerine customers Award Winning Approach No. 1 in Client Satisfaction: ranked highest among mid-sized banks for 8th year in a row by J.D. Power. Client Driven Innovation Incubator: Identify, explore, and pilot new technologies & solutions to meet evolving Client needs. Partnership Focus Power of Partnership: Strong partnerships with MLSE as the Official Bank of the Raptors, SCENE, Cineplex and Scotiabank. Speed & Agility Rapid Labs: Agile best practices enable quick & efficient new product & feature delivery. Modern Platform Onboarding in < 7 minutes: 96% digital onboarding; Scalable model, platforms and systems enabling constant innovation. 28#29Business Line Overview International Banking 29#30International Banking Leading P&C bank focused on high quality growth markets in Latin America and the Caribbean ⚫ International Banking operates primarily in Latin America and the Caribbean with a full range of personal and commercial financial services. Core markets are the Pacific Alliance countries of Mexico, Peru, Chile and Colombia Asia 6% Business 51% Loans 24% REVENUE1 $3.4B LOAN MIX1 70% Credit Cards 6% $153B C&CA Latin America 9% Other MEDIUM-TERM FINANCIAL OBJECTIVES Target² 2019 3,4,5 Net Income Growth6 9%+ +12% 16% Personal 27% 26% 25% Mexico Latin America Loans Peru Productivity Ratio <51% 50.5% Residential Mortgages 91% PAC Operating Leverage Positive +4.3% 17% Colombia 23% Chile STRATEGIC OUTLOOK Optimize Footprint: Continue executing with discipline announced acquisitions and divestitures to enhance the risk profile of our portfolio and improve quality of our earnings • Lead in Customer Experience and Digital: Continue accelerating our digital transformation to amplify business impact and continue deploying digital solutions to other channels to optimize our distribution model • Accelerate Growth Drivers: Leverage new strategic partnership to accelerate insurance growth, scale our Capital Markets business in the Pacific Alliance and build our Wealth business with focus in affluent customer segment 1 For the 3 months ended October 31, 2019; 23-5 year target; 3 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions; 4 Y/Y growth rates (%) are on a constant $ basis; 5 For the twelve months ended October 31, 2019; 6 Attributable to equity holders of the Bank 30#31The Bank of the Pacific Alliance (PAC) Only universal bank with full presence in all Pacific Alliance countries Well-established bank with 30+ years of experience in the region Competitive scale in each market 8 million 1 Retail and ~30,000 Corporate & Commercial customers >100 multi-national corporate customers within the Pacific Alliance Pacific Alliance contributes ~80% of IB's earnings 110 million customers in PAC including affiliates 31 ==#32PAC Fundamentals Driving Growth Strong Governance Democratic countries with open economies Independent central banks with inflation targets Free trade agreements and free-floating currencies ⚫ Business-friendly environments Sound Macro Environment • Diversified economies with strong GDP growth Resilience to economic and political cycles Investment Grade- rated Low Debt/GDP ratios with lower fiscal deficits compared to G7 • Increasing adoption of banking services Favourable Demographics • 225 million people with median age of 30 years Strong domestic consumption • Much lower banking penetration compared to Canada Among the fastest growing smartphone markets in the world • Considerable growth in middle class 32 32#33International Banking Positive operating leverage and strong balance sheet growth YEAR-OVER-YEAR HIGHLIGHTS1 $MM, except EPS1 Q4/19 Y/Y Q/Q Reported • Net Income² $733 +1% (6%) Pre-Tax, Pre Provision Profit $1,579 +12% (3%) Revenue $3,374 +10% 0% Expenses $1,795 +7% 3% PCLS $502 +27% +8% Productivity Ratio 53.2% (170 bps) +130 bps Net Interest Margin³ 4.43% (9 bps) (2 bps) PCL Ratio4 1.34% +29 bps +10 bps PCL Ratio Impaired Loans4 1.26% +6 bps (10 bps) • Adjusted5 Net Income² $781 +4% (4%) Pre-Tax, Pre Provision Profit $1,662 +14% (1%) Expenses $1,712 +6% +1% • PCLS $502 +27% +8% Productivity Ratio 50.7% (230 bps) +40 bps • ADJUSTED NET INCOME 2,5 ($MM) AND NIM³ (%) 4.52% 4.52% 4.58% 4.45% 4.43% 805 787 815 781 746 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 • Adjusted Net Income up 4% 2,5 and Adjusted PTPP up 14%5 on a constant currency basis o Alignment of reporting period and the impact of closed divestitures reduced net income growth by 5% 。 Strong growth across the Pacific Alliance, and strong positive operating leverage Lower tax benefits and last year's credit recoveries in Puerto Rico and Latin America Revenues up 10% O Good growth in Non interest income driven by higher investment gains and banking fees Loans up 8% O Pacific Alliance up 10% NIM down 9 bps o Primarily driven by margin compression in Mexico and Chile O NIM down 2 bps Q/Q Expenses up 6%5 O Business volume growth and technology costs 。 Productivity ratio improvement of 230 bps5 Quarterly operating leverage of +4.8%, full-year operating leverage +4.3%5 1 Y/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 . PCL ratio on impaired loans increased 6 bps 33 5 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions#34Scotiabank in Mexico Footprint Customers¹ Employees Branches1 Market Position by Loans4 22.8% ~2.6 million 12,995 562 Balance and Market Position Loan Market Average Average Loans Share Deposits 7.6% $31 $26 billion billion 13.7% 13.1% 12.5% 7.7% 7.6% 4.8% 3.4% 2.0% Financial Total NIAT² ROE3 Productivity2 Performance BBVA 8 banregio CANORTE $579 19.6% 55.4% BBVA Banorte Santander Citi HSBC Scotiabank Inbursa Bajio Regio million NIAT5 Productivity Ratio Operating Leverage +19% CAGR 63.0 % 666 579 465 337 2016 2017 2018 2019 All figures in CAD$ Constant currency 1 Excludes affiliates & consumer microfinance 2 WY 2019 3 WY 2019 including goodwill 4 Source: CNBV 5 After NCI on an adjusted basis 58.6% 55.4% 55.0% 1.5% 7.5% 6.9% -0.9% 2016 2017 2018 2019 2016 2017 2018 2019 34#35Scotiabank in Peru Footprint Customers¹ Employees Branches1 Market Position by Loans4 ~2.6 million 31.4% 12,016 210 Balance and Market Position Loan Market Share Average Average Loans Deposits 19.7% 17.9% 14.0% 17.9% $21 billion $20 billion Financial Total NIAT² ROE2,3 Productivity2 BCP BBVA Performance BCP BBVA $759 -110 25.6% 35.2% -133 Scotia +147 Interbank +92 million NIAT5 Productivity Ratio Operating Leverage +12% CAGR 40.0% 810 7.9% 39.3% 688 572 604 6.8% 5.0% 37.5% 2017 2018 2019 2016 All figures in CAD$ Constant currency 1 Excludes affiliates & consumer microfinance 2 WY 2019 3 WY 2019 including goodwill 4 Scotiabank includes SBP, CSF and Caja CAT 5 After NCI on an adjusted basis 1.8% 35.2% 2016 2017 2018 2019 2016 2017 2018 2019 35#36Scotiabank in Chile Footprint Market Position by Loans4 Customers¹ Employees Branches1 18.6 17.3 ~3.0 million 9,060 158 14.3 14.2 13.4 Balance and Market Position Loan Market Share Average Average Loans 10.1 Deposits 14.3% $47 $23 billion billion Financial Total NIAT² ROE2,3 Productivity2 Performance R Itaú $718 / $524 8.7% 43.4% Santander Chile Scotiabank Estado BCI Itaú (Pre-NCI/Post-NCI) million NIAT5 Productivity Ratio Operating Leverage 381 339 +28% 53.6% CAGR 718 515 2016 All figures in CAD$ Constant currency 2017 2018 2019 1 Includes affiliates & consumer microfinance 2 WY 2019 3 WY 2019 ROE including goodwill. ROE excluding goodwill was 13.4% 4 Local view. Source: CMF, Scotiabank 5 NIAT Before NCI 49.5% 44.7% 43.4% -2.3% 13.3% 8.5% 4.3% 2016 2017 2018 2019 2016 2017 2018 2019 36#37Scotiabank in Colombia Footprint Customers¹ Employees Branches1 26.0% ~2.3 million 9,218 215 Balance and Market Position Loan Market Share Average Average Loans Deposits 6.0% $12 $10 billion billion Market Position by Loans 15.9% 12.1% 10.2% 6.0% 6.0% 4.4% Financial Total NIAT² ROE3 Performance Productivity2 BBVA $256/$139 Bancolombia Davivienda Bogotá4 BBVA 8.4% 55% (Pre-NCI/Post-NCI) million NIAT5 73 38 2016 All figures in CAD$ Constant currency +53% CAGR Productivity Ratio Occidente 4 Scotiabank Corpbanca Colpatria Operating Leverage 54.5% 139 53.4% 52.6% 50.3% 85 1.6% 2017 2018 2019 1 Excludes affiliates & consumer microfinance -1.8% -2.4% -6.4% 2016 2017 2018 2019 2016 2017 2018 2019 Q3 YTD 2 WY 2019 3 WY 2019 including goodwill 4 Members of AVAL Group: Banco de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas. AVAL is 2nd in market share in terms of Loans (24.8%) and 1st in Deposits (26.5%) 5 After NCI on an adjusted basis 37#38Other Regions Leading Caribbean & Central American franchise Caribbean & Central America • • • Longstanding, diversified franchise serving retail, commercial, and corporate customers Major markets include the Dominican Republic, Jamaica, Trinidad & Tobago, Costa Rica, Panama and The Bahamas Sharpened geographic footprint by exiting higher risk, low growth jurisdictions including Haiti, El Salvador, Puerto Rico and 7 of the Leeward Islands Asia Dominican Republic: #4 bank • Acquired Banco Dominicano del Progreso in 2019 Thailand: 49% interest in Thanachart Bank • Announced definitive agreement to reduce investments in Thailand in Q3/19, resulting in Scotiabank owning approximately 6% of a merged bank (among ING Groep, TBank and TMB) China: 19.9% interest in Bank of Xi'an • CAD $815MM carrying value as of October 31, 2019 . CAD $496MM of net income for twelve months ended October 31, 2019 38#39Business Line Global Banking Overview & Markets 39#40Global Banking and Markets Second-largest Canadian wholesale banking and capital markets business ⚫ Full-service wholesale bank the Americas, with operations in 21 countries, serving clients across Canada, the United States, Latin America, Europe and Asia-Pacific Canada Asia 5% Europe 9% GEOGRAPHIC REVENUE1 • $1.2B 43% US 43% Global Equities 17% Business Banking Other 6% 54% Commod. 11% REVENUE BY BUSINESS LINE1 FICC $1.2B 29% Equities 36% TRADING RELATED REVENUE (TEB) 1,2 $523MM 12% Foreign Exchange 35% Interest Rate & Credit STRATEGIC OUTLOOK Client Focus: Increase our relevance to our corporate clients and drive alignment of resources with the most significant revenue opportunities, to capture more of the non-lending wallet Strengthen our capital markets offering: Enhance distribution and product capabilities and deepen institutional relationships Build on our presence in the Americas: Enhance our franchise in Canada, continue to pursue targeted, phased growth in the U.S., create a top-tier local and cross-border Pacific Alliance business, and leverage Europe and Asia for distribution of our Americas product in support of our corporate clients For the 3 months ended October 31, 2019; 2 All-Bank trading-related revenue 40 40#41Global Banking and Markets Strong loan and deposit growth. Capital markets strength in Fixed Income. $MM, except EPS Reported Q4/19 Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS • Net Income down 3% Y/Y Net Income¹ $405 (3%) +8% . Revenue up 9% Pre-Tax, Pre Provision Profit $539 +4% +10% Revenue $1,170 +9% +8% • Expenses $631 +14% +6% PCLS $4 N/A N/A Productivity Ratio 54.0% +250 bps (70 bps) • O Non-interest income up 13% Loans up 13% o Strong corporate loan growth across Canada and the U.S. Deposits up 23% Net Interest Margin 1.59% (13 bps) (2 bps) • Expenses up 14% PCL Ratio² 0.02% +11 bps +3 bps PCL Ratio Impaired Loans² 0.05% +12 bps +6 bps NET INCOME AND ROE 15.3% 15.2% 12.8% 13.8% 。 Expenses up 6% Q/Q Compliance and technology investment for regulatory requirements and higher performance and share based compensation PCL ratio² at 2 bps 416 11.5% 405 420 335 374 Q4/18 Q1/19 1 Attributable to equity holders of the Bank Q2/19 Q3/19 Q4/19 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 41#42Risk Overview 42 42#43Risk Snapshot RWA Breakdown Credit Exposure by Country1 Credit Exposure by Sector¹ ■ Canada Financial Services 5.6% ■Credit Risk 64% ■ Chile ■ U.S. Real Estate and Construction 5.3% 2% Wholesale and Retail 4.6% ■C&CA 4% 11% $421B 87% ■Operational Risk $611B1 Energy 2.7% 5% Other International Other 5% 2.6% ■Mexico ■Market Risk 5% Automotive 2.3% 7% 8% Peru Technology and Media 2.2% Colombia Agriculture 2.2% Utilities 1.8% Canadian Banking Loans² International Banking Loans² Transportation 1.6% Food and Beverage 1.4% Mining 1.1% 67% ■ Secured ■ Secured Health Care 1.0% 7% $310B² 93% ■ Unsecured 33% Sovereign 0.8% $74B2 Hospitality and Leisure 0.5% ■ Unsecured 1% of total loans and acceptances as at October 31, 2019 2 Retail loans as at October 31, 2019 Forest Products 0.7% Metals 0.5% Chemicals 0.4% 43 33#44Credit Performance by Business Lines Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 (As a % of Average Net Loans & PCLs on PCLs on PCLs on Total Total Total Impaired PCLs (adj.) Impaired Impaired PCLs on Impaired Total PCLS PCLs on Total Impaired PCLs PCLS PCLS Acceptances) Loans Loans Loans Loans (adj.) Loans Total Canadian Banking (%) 0.22 0.23 0.27 0.271 0.28 0.301 0.29 0.271 0.28 0.27 Total Canadian Banking ($MM) 188 198 229 233 233 252 256 240 255 247 Retail (%) 0.25 0.25 0.28 0.28 0.31 0.35 0.33 0.30 0.30 0.30 Retail ($MM) 181 179 201 202 220 245 242 218 226 227 Commercial (%) 0.06 0.15 0.21 0.231 0.09 0.061 0.10 0.161 0.20 0.14 Commercial ($MM) 7 19 28 31 13 7 14 22 29 20 Total International Banking (%) 1.20 1.051 1.23 1.281 1.29 1.301,2 1.36 1.241 1.26 1.341 Total International Banking ($MM) 4662 4122 451 470 472 4773 522 476 477 502 Retail (%) 2.38 2.21 2.33 2.36 2.36 2.352 2.48 2.28 2.34 2.44 Retail ($MM) 412 384 416 421 421 4193 462 425 429 448 Commercial (%) 0.071 (0.06)1 0.19 0.261 0.27 0.301,2 0.30 0.261 0.25 0.30 Commercial ($MM) 543 283 35 493 51 582,3 60 513 48 543 Global Banking and Markets (%) (0.07) (0.09)1 (0.01) (0.07) (0.02) (0.02) (0.01) (0.01) 0.05 0.02 Global Banking and Markets $MM) (17) (20)³ (1) (16) (5) (6) (2) (4) 12 43 Other ($MM) 1 (1) 1 _3 All Bank (%) All Bank ($MM) 0.42 637 0.391 590 0.47 679 0.471 0.49 0.511 0.52 0.481 0.49 0.501 688 700 722 776 713 744 753 1 Excludes provision for credit losses on debt securities and deposit with banks 2 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions 3 Includes provision for credit losses on debt securities and deposit with banks of $nil in Canadian Banking (Q1/19: $2 million, Q2/19: -$1 million, Q3/19: -$1 million), -$3 million in International Banking (Q4/18: $41 million (impaired) and $40 million (total), Q1/19: $2 million, Q2/19: -$1 million, Q3/19: $1 million), -$1 million in Global Banking and Markets (Q4/18: $1 million) and $1 million in Other (Q1/19: -$1 million, Q2/19: $1 million) 44#450.00% 2001 0.50% 2002 1.00% 2003 1.50% 2004 PCL Ratio on Impaired Loans 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2005 0.00% 0.50% 1.00% 2002: Included $454 2.00% million related to the 1.50% Bank's exposure to Argentina 2005 2006 2007 Historical PCL Ratios on Impaired Loans Credit fundamentals remain strong; PCLs on impaired loans in line with long-term average ALL BANK: HISTORICAL PCL RATIO ON IMPAIRED LOANS¹ 2008 2009 2009: Higher PCLs driven by economic conditions, event distributed across business lines. Higher general allowance and sectoral allowance (automotive related) 2.00% PCL Ratio on Impaired Loans Historical Average - PCL Ratio on Impaired Loans (44 bps) CANADIAN BANKING: HISTORICAL PCL RATIO ON IMPAIRED LOANS1 2006 2007 2008 2009 2010 2011 2012 2013 2014 Historical Average - PCL Ratio on Impaired Loans (26 bps) 2015 2016 2017 45 45 2010 2018 2019 Average: 26 bps 2019 Average: 44 bps#46Canadian Retail: Loans and Provisions TOTAL RETAIL MORTGAGES 12 21 1 1 1 1 35 33 30 28 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 25 31 30 30 28 25 LINES OF CREDIT² PERSONAL LOANS1 95 80 85 84 70 88 78 81 69 69 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 CREDIT CARDS 96 81 86 72 458 68 402 381 292 349 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 75 73 68 70 70 415 379 339 283 241 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 PCL as a % of avg. net loans (bps) PCLs on Impaired Loans as a % of avg. net loans (bps) Loan Balances Q4/19 Mortgages Personal Loans¹ Lines of Credit² Credit Cards Total Spot ($B) % Secured $227 $41 $34 $8 $3103 100% 99% 61% 3% 93%4 195% are automotive loans 2 Includes Home Equity Lines of Credit and Unsecured Lines of Credit 3 Includes Tangerine balances of $6 billion 480% secured by real estate; 13% secured by automotive 46#47International Retail: Loans and Provisions TOTAL RETAIL² MEXICO PERU 233 246 545 231 517 216 473 208 432 402 248 238 236 236 244 491 218 206 199 203 424 163 400 364 372 233 235 228 234 221 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q4/18 Q1/19 Q2/19' Q3/19 Q4/19 CARIBBEAN & CENTRAL AMERICA CHILE COLOMBIA 155 159 155 160 582 554 549 187 145 531 471 170 157 147 141 148 150 154 532 138 156 165 134 485 120 455 420 138 377 101 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 PCL as a % of avg. net loans (bps) Loan Balances Q4/19 Spot ($B) Mexico $13 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 PCLs on Impaired Loans as a % of avg. net loans (bps) Peru Chile Colombia C&CA Total² $10 $25 $7 $18 $74 1 Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans 2 Total includes other smaller portfolios 47#48Energy Exposure¹ High quality energy portfolio, reduced exposure to 2.7% of total loans from 3.1% in Q4/16 • Loans and Acceptances Outstanding ($B) % of Total % of Total Loans and % Investment Energy Exposure Acceptances Grade Outstanding 7.1 43% Total Exploration and Production 1.2% 62% 3.6 Canadian E&P 21% 0.6% 76% Western Canadian Select Exposure 1.3 8% 0.2% 93% 1.2 7% 0.2% 57% U.S. E&P 5.6 34% 0.9% 51% Midstream Services 1.6 9% 0.3% 21% 2.4 14% 0.4% 69% Downstream Total Energy Exposure² 16.6 100% 2.7% 56% Energy portfolio represents 2.7% of loans and acceptances outstanding, down from 3.1% in Q4/16 56% is rated Investment Grade (IG), up from 52% in Q4/16 Watchlist³ reduced to 4.0% of total Energy outstandings from 13.6% as of Q4/16 1 As of October 31, 2019 2 May not add due to rounding 3 Includes Impaired accounts 4 RWA based on All Facility Types Canada (60%) 6.7 C&CA (33%) 0.4 Europe Energy (43%) 0.7 Exposure by Geography2 1.0 $16.6B Latin 2.8 Asia (95%) (%IG) America (50%) 1.2 3.7 U.S. (44%) Mexico (60%) 48#49Treasury and Funding 49 49#50Funding Strategy Flexible, well-balanced and diversified funding sources Funding Strategy Build customer deposits in all of our key markets • Continue to reduce wholesale funding (WSF) while focusing on TLAC eligible debt Achieve appropriate balance between efficiency and stability of funding including maintaining pricing relative to peers Diversify funding by type, currency, program, tenor and markets Centralized funding strategy and associated risk management 1 In addition to the programs listed, there are also CD programs in the following currencies: Yankee/USD, EUR, GBP, AUD, HKD Funding Programs¹ US Debt & Equity Shelf (senior/subordinated debt, preferred and common shares) Limit USD 40 billion Global Registered Covered Bond Program (uninsured Canadian mortgages) Limit CAD 38 billion EMTN Shelf Limit USD 20 billion CAD Debt & Equity Shelf (senior/subordinated debt, preferred and common shares) Limit CAD 15 billion START ABS program (indirect auto loans) Limit CAD 15 billion Australian MTN program Limit AUD 8 billion Singapore MTN program Limit USD 7.5 billion Halifax ABS shelf (unsecured lines of credit) Limit - CAD 7 billion Principal at Risk (PAR) Note shelf Limit CAD 6 billion Trillium ABS shelf (credit cards) Limit - CAD 5 billion USD Bank CP Program Limit USD 35 billion 50 50#51Wholesale Funding Wholesale funding diversity by instrument and maturity 1,6,7 27% Senior Notes 4% Bail-inable Notes 3% MATURITY TABLE (EX-SUB DEBT) (CANADIAN DOLLAR EQUIVALENT, $B) $27 Asset-Backed Commercial Paper³ 2% 38% Bearer Deposit Notes, Commercial Paper & Short-Term Certificate of Deposits Asset-Backed Securities $22 $9 10% $4 $19 $17 Covered Bonds $2 $3 4 $4 $15 $2 $249B $5 -10% $9 Mortgage Securitization4 $16 $2 $15 $15 $15 $10 $7 2%- 4% Subordinated Debt5 Deposits from Banks² < 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years > Senior Debt ABS Covered Bonds 1 Excludes repo transactions and bankers acceptances, which are disclosed in the contractual maturities table in the MD&A of the Interim Consolidated Financial Statements. Amounts are based on remaining term to maturity. 2 Only includes commercial bank deposits raised by Group Treasury. 3 Excludes asset-backed commercial paper (ABCP) issued by certain ABCP conduits that are not consolidated for financial reporting purposes. 4 Represents residential mortgages funded through Canadian Federal Government agency sponsored programs. Funding accessed through such programs does not impact the funding capacity of the Bank in its own name. 5 Although subordinated debentures are a component of regulatory capital, they are included in this table in accordance with EDTF recommended disclosures. 6 As per Wholesale Funding Sources Table in MD&A, as of Q4/19. 7 May not add to 100% due to rounding. 51 555#52Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 BUSINESS & GOVERNMENT DEPOSITS1 (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) Q3/18 Deposit Overview Stable trend in personal & business and government deposits PERSONAL DEPOSITS (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) $225 $225 • $215 $222 $223 $202 $204 $199 $200 $211 $199 $198 $201 3Y CAGR 4.1% PERSONAL DEPOSITS Important for both relationship purposes and regulatory value Good momentum with 4.1% CAGR over the last 3 years $211 $197 $221 $169 $174 $168 $197 $155 $179 $172 $170 $156 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 Calculated as Bus& Gov't deposits less Wholesale Funding, adjusted for Sub Debt Q1/19 Q2/19 Q3/19 Q4/19 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 $223 3Y CAGR 12.8% • BUSINESS & GOVERNMENT Gaining share of deposits through leveraging of relationships 12.8% CAGR over the last 3 years ⚫ Focusing on operational, regulatory friendly deposits 52 62#53Q4/16 Q1/17 Q2/17 Q3/17 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 MONEY MARKET WHOLESALE FUNDING / TOTAL WHOLESALE FUNDING 37.7% 36.8% 36.0% Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q3/18 Wholesale Funding Utilization Managing reliance on wholesale funding and growing deposits WHOLESALE FUNDING / TOTAL ASSETS 25.2% 23.8% 23.4% 22.9% • REDUCED RELIANCE ON WHOLESALE FUNDING Operating in line with peers o Reduced reliance on wholesale funding 。 Sustained focus on deposits as an alternate to wholesale funding 42.2% Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 FOCUS ON TERM FUNDING Prudently using money market funding to absorb short term funding requirements 53#54Liquidity Metrics Well funded Bank with strong liquidity • Liquidity Coverage Ratio (LCR) 。 Stable and sound management of liquidity 。 Net Stable Funding Ratio (NSFR) disclosure to commence Q1/20 128% 128% 127% 125% 125% 125% 125% 125% 124% 123% Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 • High Quality Liquid Assets (HQLA) 。 Efficiently managing LCR and optimizing HQLA $165 $158 $158 $160 $140 $144 $138 $132 $128 $127 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 54#55Appendix 1 Key Market Profiles#56% OF GDP REAL GDP GROWTH Canadian Economy Diverse economy with a strong balance sheet 19.5% Finance, Insurance, & Real Estate 15.6% Other 4.5% Transportation & Warehousing 5.9%- Professional, Scientific, & Technical Services 6.7% CANADIAN GDP BY INDUSTRY (AUG 2019) Public Administration - 12.4% Health & Education 7.0% 10.4% Wholesale & Retail Trade -10.3% Manufacturing 7.6% Mining and Oil & Gas Extraction Construction ANNUAL % CHANGE GENERAL GOVERNMENT NET FINANCIAL LIABILITIES 122.0 126.1 78.5 80.1 84.5 66.1 31.7 22.9 Canada Germany OECD France U.K. U.S. Italy Japan Sources: Scotiabank Economics, OECD (2019 estimates). As of November 2019. 3 N U.S. Canada 2000-2018 Eurozone 2019f-2021f U.K. Japan Sources: Scotiabank Economics, Haver Analytics, Statistics Canada. Forecasts as of October 10, 2019. GOVERNMENT FINANCIAL DEFICITS % OF GDP 2 - -5 0 1 2 3 4 5 6 1.1 T (0.8) (0.7) (1.4) (2.0) (3.0) (3.3) (5.6) -6 Germany OECD* Canada U.K. Italy Japan France U.S. * Arithmetic mean of all OECD financial deficits as a % of GDP. Sources: Scotiabank Economics, IMF (2019 estimates). As of November 2019. 56#57Canada: Stable Economic Fundamentals Low unemployment rate reflects solid growth in Canadian economy UNEMPLOYMENT RATE 10 Canada - official № 6 14 12 220 80 6420 U.S. Canada comparable to U.S. 90 92 94 96 98 00 02 04 06 08 10 12 15 17 19 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through October 2019. Solid economic growth and a gradual rebound in non-energy exports ⚫Household spending remains buoyant, underpinned by relatively low and stable unemployment, as well as low borrowing • costs Population and labour-force growth supported by increasing immigration Moderate inflation within Bank of Canada target band HEADLINE INFLATION LABOUR FORCE PARTICIPATION RATE 70 Canada Bank of Canada Target Inflation Band 64 62 60 222% 68 66 U.S. -2 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through October 2019 (Canada) and October 2019 (US). Canada U.S. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through October 2019. 57 57#58Mexican Economy Diverse economy with a strong balance sheet • The Mexican economy reflects a solid mix of commodities, goods production, and services Trade remains dominated by the U.S., but Mexico's diversification agenda is underpinned by 13 free-trade agreements with 47 countries that account for 40% of global GDP 16.0% Finance, Insurance, & Real Estate 16.3% Other 3.2% Natural Resources 6.6% Transportation & Warehousing 5.8% Health & Education MEXICAN GDP BY INDUSTRY (Q2 2019) 17.7% Wholesale & Retail Trade 16.0% Manufacturing 6.0% Mining and Oil & Gas Extraction 6.7% Contributions to Mexican GDP Growth 5 y/y % change 4 3 27 1 -2 -3 -4 0 1 2 3 -1 1.9% Professional, Scientific, & Technical Services 3.8% Public Administration Top 5 Trading Partners Other* Net Exports Inventories Investment Germany 3% Japan 3% Canada 4% Government -5 Consumption Real GDP 16 17 18 19 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. Others 20% United States China 11% 59% Construction 58#59Peruvian Economy Resilient economic fundamentals • Peru's important resource sectors are increasingly balanced by stronger service-sector activity and solid economic fundamentals Peru has 16 free-trade agreements with 49 countries that account for 66% of global GDP Investment is making a consistently strong contribution to GDP, which should make solid growth rates more sustainable in the future 12.3% Manufacturing 10.2% Finance, Insurance, & Real Estate 31.9% PERUVIAN GDP BY INDUSTRY (Q2 2019) 20.8% Transportation, Information & Commerce 5.5% Construction Other 5.1% Natural Resources 14.1% Mining & Energy Contributions to Peruvian GDP Growth Top 5 Trading Partners 8 y/y % change 6 4 2 0 -2 -4 -6 Net Exports Inventories Investment Government Consumption Real GDP 16 60 17 18 19 Sources: Scotiabank Economics, Haver Analytics. Others 43% China 27% South Korea 4% Spain United States Brazil 4% 18% 5% 59#60Chilean Economy Advanced economy with wide-ranging trade links Chile's mix of economic activities reflects its status as an advanced market economy Chile's diversified trading relationships are supported by 23 free-trade agreements with 60 countries that account for 73% of global GDP Investment has been a strong contributor to growth in Chile over the past year, which should underpin future productivity gains 15.3% Finance, Insurance, & Real Estate 8.6% Other 2.0% Restaurants & Hotels 8.6% Transportation & Warehousing 3.4% Natural Resources CHILEAN GDP BY INDUSTRY (Sep 2019) 19.4% Housing & Personal Services 9.3% Wholesale & Retail Trade 10.2% Manufacturing 12.4% Mining and Oil & Gas Extraction 6.3% Construction 4.5% Public Administration Contributions to Chilean GDP Growth 8 y/y % change 6 4 2 0 -2 -4 -6 16 17 Sources: Scotiabank Economics, Haver Analytics. Net Exports Inventories Investment Government Consumption Real GDP 18 19 199 Top 5 Trading Partners Others 38% China 29% United South Korea 4% Japan Brazil States 16% 6% 7% 60#61Colombian Economy Gaining momentum Services account for a rising share of Colombian GDP compared with traditional strengths in extractive industries Colombia continues to build on its 11 free-trade agreements with 46 countries that account for 41% of global GDP Rising consumption, supported by public spending, reflects an expanding middle class as growth gains momentum and converges toward the economy's underlying potential 13.6% Finance, Insurance, & Real Estate 9.1% Other 6.2% Natural Resources 2.8% Information & Communication 2.4% Arts & Entertainment COLOMBIAN GDP BY INDUSTRY (Q3 2019) 6.9% Professional, Scientific, & Technical Services 17.6% Wholesale, Retail Trade, Accommodation & Food Services 14.8% 11.9% Manufacturing 8.1% Mining and Oil & Gas Extraction 6.6% Construction Public Administration Top 5 Trading Partners 8 y/y % change 6 Contributions to Colombian GDP Growth Other* Net Exports Investment Government Consumption Real GDP 4 2 0 -2 -4 -6 16 17 18 19 199 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. United States Others 42% 28% Ecuador 3% Brazil Mexico 5% 6% China 17% 61#62Appendix 2 Canadian Housing Market#63Housing Market Differences vs U.S. Canada's housing market features distinct practices and policies Regulation and Taxation Product Underwriting Canada Mortgage interest not tax deductible Full recourse against borrowers in most provinces Foreclosure on non-performing mortgages, no stay periods Insurance Mandatory default insurance mortgages with LTV > 80% 。 CMHC backed by Government of Canada (AAA). Private insurers are 90% government backed o Insurance available for homes up to CAD 1 mn o Premium is payable upfront 。 Covers full amount for life of mortgage Homebuyers must qualify for mortgage insurance at an interest rate that is the greater of their contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate Re-financing cap of 80% LTV on non-insured mortgages Amortization Maximum 25-year amortization on mortgages with LTV > 80% Maximum 30-year amortization on conventional mortgages Down payment of > 20% required for non-owner occupied properties Conservative product offerings, fixed or variable rate options Much less reliance upon securitization and wholesale funding Asset-backed securities not subjected to US-style off-balance sheet leverage via special purpose vehicles Terms usually three or five years, renewable at maturity Extensive documentation and strong standards U.S. • Tax-deductible mortgage interest creates incentive to borrow and delay repayment • Lenders have limited recourse in most states • 90-day to 1-year stay period to foreclose on non-performing mortgages • No regulatory LTV limit Private insurers are not government backed Can include exotic products (e.g. adjustable rate mortgages, interest only) 30-year term most common Wide range of documentation and underwriting requirements 63#64Canadian Housing Market From a "soft landing” to a “gentle rebound" Price Growth by Dwelling Type¹,3 • Canada: The effects of recent adjustments to federal and provincial policy measures that slowed the market look to be waning: 。 Prior to flat national-level sales in October 2019, home purchases had risen in seven consecutive months—the first time since 20091 。 Average sales prices and the composite MLS Home Price Index² are trending higher (top chart) Sales-to-new listings ratio reached to 63.7% in October 2019, a rate just shy of sellers' market territory Greater Toronto: Sales have increased in six of the past eight months, rising 23% over that period. The market is in broadly balanced territory, but this is the tightest it has been since early 2017 • Greater Vancouver: Sales have climbed six times in the last seven months, gained almost 80% since their trough in March 2019, and regained nearly half of the 66% drop from their February 2016 peak 20 15 10 5 -5 16 Single Family • Townhouse Apartment ⚫ Composite MLS Home Price Index, aggregate, y/y % change 17 18 19 Toronto & Vancouver Home Sales 1,3 140 home sales, 000s of units annualized, SA Greater Toronto Canada1, Sales (% change) Sept-19 Oct-19 Oct-19 120 m/m* m/m* y/y** 1.3 0.0 12.9 100 New listings (% change) -1.8 -1.8 -5.8 Average price (% change) 80 1.1 0.1 5.2 Sept-19 Oct-19 Sales-to-new listings ratio (level)* 62.6 63.7 Months inventory (level)* 4.5 4.4 *Seasonally adjusted **Not seasonally adjusted 60 Greater Vancouver 40 20 1 Sales and listings figures reported in seasonally-adjusted m/m terms, while MLS HPI growth rates reported as non-seasonally-adjusted y/y. 2 Measure of real estate price appreciation that removes distortions related to variations in the mix of sales across unit types. 0 3 Sources for charts and table: Scotiabank Economics, CREA. 10 11 11 12 12 Actual -10-year avg. 13 14 15 16 17 18 19 64#65Canadian Household Credit Public policy changes have moderated growth in household credit • Total household credit grew at 3.7% annually in nominal terms in Q3/19 vs 2008 peak of 12.2% annually • Consumer loans excluding mortgages (cards, HELOCS, unsecured lines, auto loans, etc.) grew at 3.1% annually in Q3/19 vs > 5% in late 2017 • Mortgage credit grew at 4.0% annually in Q3/19 vs 2008 peak of 13% 25 20 HOUSEHOLD CREDIT GROWTH %, 3-month moving average 15 15 y/y % change 10 5 m/m% change, SA 0 -5 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. CONSUMER LOAN GROWTH 25 25 %, 3-month moving average 20 RESIDENTIAL MORTGAGE GROWTH 25 %, 3-month moving average 20 y/y% 15 change 15 y/y% change 10 10 5 m/m% change, SA 0 m/m% 5 change, SA 0 -5 -5 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. 65#66Household Debt: Canada vs U.S. Canadian households' balance sheets compare favourably to U.S. • Canadian headline debt-to-income ratio is now ~ - -3% vs the U.S. peak in 2008 . o Calculated on the same terms, Canada's debt-to-income is currently 166% vs 132% in the U.S. Canadian debt-to-asset ratio remains below U.S. o U.S. households have incentive to pursue higher asset leverage in light of mortgage-interest deductibility • Ratio of total household debt-to-GDP remains lower in Canada than U.S. 。 Calculated on a comparable basis, the ratio of household credit market debt is 98.8% in Canada vs 101.0% in the U.S. Household Credit-Market Debt to Disposable Income Total Household Liabilities as % of Total Assets 30 180 household credit liabilities 174.0 as % of disposable income 170 160 150 140 130 120 110 100 ༅ ཎྜ ༔ ༔ ༔ ྋ ཀྵུ ༄ ༅ 8 165.8 25 25 20 131.5 ......Adjusted Canadian* Official Canadian Official U.S. 90 00 02 04 06 08 10 12 14 16 18 * Adjusted for U.S. concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. 15 household debt as % of assets U.S. Household Credit-Market Debt to GDP 130 % of GDP 120 110 U.S. with unincorporated Original Canada 103.6 100 business debt .....101.0 98.8 90 Canada* 17.9 80 73.9 Original U.S. Canada 70 17.0 60 50 10 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Federal Reserve Board, Statistics Canada. 00 02 04 06 08 10 12 14 16 18 * Adjusted for U.S. concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. 66 99#67Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2016 2017 2018 2019 Canada: Qualifying stress rate for all new mortgage insurance must be the greater of the contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate • Low-ratio mortgage insurance eligibility requirements updated for lenders wishing to use portfolio insurance: • • 。 Maximum amortization 25 years o CAD 1 mn max. purchase price o Minimum credit score of 600 o Owner-occupied property Elimination of primary residence tax exemption for foreign buyers Min. down payment on insured increased from 5% to 10% (for homes CAD 0.5-1.0 mn) . British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced Ontario: 16 measures aimed to slow rate of house price appreciation Key aspects include: O 15% non-resident speculation tax o Expanded rent control to all private rental units in Ontario 。 Vacant home tax CAD 125 mn five-year program to encourage construction of new rental apartment buildings Canada: OSFI imposes more stringent stress tests for uninsured mortgages, including a minimum qualifying rate at the greater of the five-year fixed posted rate or the contractual rate plus 200 bps, effective January 1, 2018 Ontario: Elimination of rent control on new rental units first occupied on or before November 1, 2018 British Columbia: Extension of the Property Transfer Tax on non-resident buyers. Investment of more than CAD 1.6 bn through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years British Columbia: Increase in speculation tax on foreign and domestic home owners who do not pay income tax in BC from 0.5% of a property's assessed value to 2%; additional school tax levied on portion of a property's value that exceeds CAD 3 mn Ontario: Measures to increase supply of available housing Key aspects include: Greater authority over land use planning decisions for the province's independent municipal dispute resolution body Reduced red tape on new residential developments Updated zoning regulations to facilitate building of affordable homes near transit 67#68Appendix 3 Bail-in and TLAC#69Canadian Bail-in Regulations: Key Features Best in class approach Post September 23, 2018, senior unsecured debt issued by Canadian DSIBS that is subject to bail-in is the only format of issuance available¹ and is a single class of debt2 that is not subordinated to another class of wholesale senior debt Canadian bank term senior unsecured debt is not structurally, statutorily or contractually subordinated to another class of senior liabilities and therefore is equal to deposits and other senior liabilities in liquidation In the remote probability of default, the no creditor worse off principle ensures that bailed-in senior creditors should not incur greater losses through resolution than liquidation. The CDIC compensation regime ensures holders receive the difference between liquidation and resolution value • Canada utilizes a statutory regime where, unlike the contractual regime of Canadian NVCC capital instruments, there is no set conversion multiplier and there is flexibility for a partial bail-in or no bail-in of senior debt even if NVCC instruments are converted Canadian bank resolution framework provides senior debt holders with protection in that the relative creditor hierarchy is maintained. Acceleration rights³ upon non-payment of principal or interest are allowed in Canada 1 Excludes structured notes as defined in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act 2 Ranks pari passu with other forms of senior debt, except as otherwise prescribed by law and subject to the exercise of bank resolution powers 3 Subject to 30 business day grace period and subject to bail-in conversion powers until repaid in full 69 69#70Canadian Bail-in Regulations: Jurisdictional Comparison Best in class approach Instrument type Opco senior Holdco senior Holdco senior¹ Holdco senior Opco non- preferred senior Ranking in Liquidation Pari passu with deposits and other senior liabilities Structural subordination² Structural subordination² Structural subordination² Contractual subordination² Deposits Other senior liabilities Senior debt subject Subordination schematic to bail-in Capital Deposits Opco senior/senior preferred / other senior liabilities Holdco senior / senior non-preferred Capital Depositor preference No Yes Yes Yes Yes Participation in equity post resolution Conversion to equity of the bank or an affiliate allows participation in the upside, if any³ N/a4 Uncertain given possibility of writedown Uncertain given possibility of writedown Uncertain given possibility of writedown Acceleration rights upon failure to pay principal and interest 1Applicable in practice for G-SIBS' issuance of non-capital bail-in debt Yes Yes Yes Yes No5 2 Approach applicable to G-SIBS in relevant jurisdictions. Additionally, Switzerland uses structural subordination, Germany uses statutory subordination, Spain uses contractual subordination 3 Assuming only bail-in is triggered. If other resolution powers are exercised, debt holders could be exposed to losses in a manner similar to a write-down of their claims 4 No bail-in power. In resolution, debtholders could potentially receive partial recoveries (analogous to a write-down) or have their claims satisfied through the issuance of new securities (analogous to a bail-in conversion) 5 The terms of senior non-preferred do not include acceleration rights upon failure to pay principal and interest; however, there is no statutory restriction in this regard. Once resolution proceedings are underway, holders may declare an event of default for failure to meet payment obligations 70 0#71Summary of Bail-in / TLAC Regime Best in class approach . • Scope Scope of bail-in instruments Liabilities excluded from bail-in TLAC compliance date TLAC requirement TLAC eligibility Grandfathering Sequencing and preconditions Form of bail-in DSIB disclosure requirements OSFI designated DSIBS Senior unsecured debt that is tradeable and transferable, original term >400 days, unsecured and issued, originated or renegotiated after September 23, 2018 Insured deposits, uninsured deposits, debt with original term < 400 days, ABS / covered bonds, structured notes², derivative liabilities, other liabilities November 1, 2021 23.5% minimum risk-based TLAC ratio (21.50% plus a 2.00% Domestic Stability Buffer) 6.75% minimum TLAC leverage ratio Regulatory capital + bail-in debt with remaining term to maturity > 1 year³ Yes - all senior instruments issued prior to September 23, 2018 1. Federal authorities bring bank into resolution 2. Full conversion of bank's NVCC instruments must occur prior to or concurrently with bail-in Equity conversion - Include disclosure related to the conversion power in any agreement governing an eligible liability as well as any accompanying offering document - Include a clause in the contractual provisions governing any eligible liability through which investors provide express submission to the Canadian bail-in regime Provide disclosure of TLAC ratios beginning Q1 2019 Bail-in is not the only path in Canada to resolve a failing bank. Canadian authorities retain full discretion to use other powers including "vesting order", "receivership order", "bridge bank resolution order", etc. Conversion into equity under the Canadian bail-in regime has the potential to result in realizable value, potentially in excess of principal amount 1Yankee CD's with original term > 400 days are in-scope of bail-in 2 As per definition of structured notes in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act 3 Provided such bail-in debt meets certain other requirements 71#72Appendix 4 Covered Bonds#73Global Registered Covered Bond Program Global Covered Bond Program: CAD$38 billion • Active in multiple currencies: USD, EUR, GBP, AUD and CHF ⚫ CAD$26 billion outstanding vs. $38 billion program size Extensive regulatory oversight and pool audit requirements • Mandatory property value indexation • Established high level of safeguards and disclosure requirements . Program carries the ECBC Covered Bond Label Issuer The Bank of Nova Scotia Guarantor Guarantee Status Program Size Ratings Cover Pool Asset Percentage Law Issuance Format Scotiabank Covered Bond Guarantor Limited Partnership Payments of interest and principal in respect of the covered bonds are irrevocably guaranteed by the Guarantor. The obligations under the Covered Bond Guarantee constitute direct obligations of the Issuer and are secured by the assets of the Guarantor, including the Portfolio. The covered bonds will constitute legal, valid and binding direct, unconditional, unsubordinated and unsecured obligations of the Bank and will rank pari passu with all deposit liabilities of the Bank without any preference among themselves and at least pari passu with all other unsubordinated and unsecured obligations of the Bank, present and future. CAD $38 billion Aaa / AAA / AAA (Moody's / Fitch / DBRS) First lien uninsured Canadian residential mortgage loans with LTV limit of 80% 94.8% (5.5% minimum overcollateralization) Ontario, Canada 144A/Reg S (UKLA Listed) 73 33#74Global Registered Covered Bond Program¹ Global Covered Bond Program: CAD$38 billion program size, $26 billion outstanding LOAN-TO-VALUE RATIOS² 41% 34% 19% CREDIT SCORES³ 64% 5% 1% 1% 11% 17% 0-20% 20-40% 40-60% 60-80% 80+% <599 600-650 651-700 701-750 751-800 800+ REMAINING TERM DISTRIBUTION (MONTHS) 13.7% 26.9% 28.5% 12.0% Alberta 0.2% Yukon 2.6% Saskatchewan 12.9% 1.1% 11.2% Quebec 6.9% PROVINCIAL DISTRIBUTION4 <12 12-23.99 24-35.99 36-41.99 42-47.99 48+ 0.3% P.E.I. 58.2% Ontario 1 As at October 31, 2019 2 Uses indexation methodology as outlined in Footnote 1 on page 3 of the Scotiabank Global Registered Covered Bond Monthly Investor Report 3 Excludes unavailable credit scores 4 May not add to 100% due to rounding 1.3% 19.3% British Columbia Manitoba 1.1% New Brunswick 1.6% Newfoundland 2.2% Nova Scotia 74#75Canadian Legislative Covered Bonds (CMHC Registered) • Canadian Registered Covered Bond Programs' Legal Framework (Canadian National Housing Act) Issuance Framework Eligible Assets Mortgage LTV Limits Basis for Valuation of Mortgage Collateral Substitute Assets • . Substitute Assets Limitation • Cash Restriction Coverage Test • Canadian Registered Covered Bond Programs Guide issued by Canada Mortgage and Housing Corporation (CMHC) Uninsured loans secured by residential property in Canada • LTV limit of 80% . Credit Enhancement • Issuers are required to index the value of the property underlying mortgage loans in the covered pool while performing various tests Securities issued by the Government of Canada Repos of Government of Canada securities having terms acceptable to CMHC 10% of the aggregate value of (a) the loans (b) any Substitute Assets and (c) all cash held by the Guarantor The cash assets of the Guarantor cannot exceed the Guarantor's payment obligations for the immediately succeeding six months Asset coverage Test Amortization Test Overcollateralization Reserve Fund Prematurity Liquidity Covered bond swap, forward starting Interest rate swap, forward starting Valuation calculation Swaps Market Risk Reporting • Mandatory property value indexation Covered Bond Supervisory Body • CMHC Requirement to Register Issuer and Program • Yes; prior to first issuance of the covered bond program Registry • Yes Monthly investor report with prescribed disclosure requirements set out by CMHC Disclosure Requirements • Investor reports must be posted on the program website • Required to meet applicable regulatory disclosure requirements 75 15#76Appendix 5 Additional Information#77Medium-Term Financial Objectives¹ METRICS ALL BANK EPS Growth OBJECTIVES 2019 RESULTS² (Change FY/FY) 7%+ ROE 14%+ +0.4% 13.9% Operating Leverage³ Positive (0.6%) Capital Strong Levels 11.1% (11.55% pro-forma) Dividend Payout Ratio 40%-50% 48.6% BUSINESS LINE CANADIAN BANKING Net Income Growth >7% +1.6% Productivity Ratio <49% 49.4% INTERNATIONAL BANKING Net Income Growth4 >9% Productivity Ratio <51% +12.0% 50.5% 13-5 year objectives; 2 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related cost; 3 Excludes the pension revaluation benefit gain of $203MM pre-tax, $150MM after-tax in Q1/18; 4 On a constant dollar basis 77#78Additional Information Scotiabank Listings: Toronto Stock Exchange (TSX: BNS) New York Stock Exchange (NYSE: BNS) Scotiabank Common Share Issue Information: 064149107 CA0641491075 • CUSIP: . ISIN: • FIGI: BBGOOOBXSXH3 . NAICS: 522110 Scotiabank Credit Ratings Moody's Investors Standard & Poor's Fitch Ratings Services Dominion Bond Rating Service Ltd. Aa2 A+ AA Legacy Senior Debt¹ AA- Senior Debt² A2 A- AA- AA (low) Subordinated Debt (NVCC) Baa1 BBB+ A (low) Short Term Deposits/Commercial Paper P-1 A-1 F1+ R-1 (high) Covered Bond Program Aaa Not Rated AAA AAA Outlook Stable Stable Stable Stable Includes: (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the bank recapitalization "bail-in" regime 2 Subject to conversion under the bank recapitalization "bail-in" regime 78#79Contact Information Investor Relations Philip Smith Senior Vice President 416-863-2866 [email protected] Lemar Persaud Director 416-866-6124 [email protected] Steven Hung Vice President 416-933-8774 [email protected] Judy Lai Director 416-775-0485 [email protected] Funding Tom McGuire Executive Vice President & Group Treasurer 416-860-1688 [email protected] Mark Michalski Director, Strategy & Market Development, Funding 416-866-6905 [email protected] Christy Bunker SVP, CB Treasury, Term Funding and Capital management 416-933-7974 [email protected] 79