#1Investor Presentation First Quarter 2019 Scotiabank®#2CAUTION REGARDING FORWARD-LOOKING STATEMENTS Our public communications often include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2018 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results (including those in the area of risk management), and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intent, "estimate," "plan," "may increase," "may fluctuate," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would" and "could." By their very nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not prove to be accurate. Do not unduly rely on forward-looking statements, as a number of important factors, many of which are beyond the Bank's control and the effects of which can be difficult to predict, could cause actual results to differ materially from the estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: the economic and financial conditions in Canada and globally; fluctuations in interest rates and currency values; liquidity and funding; significant market volatility and interruptions; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary policy; legislative and regulatory developments in Canada and elsewhere, including changes to, and interpretations of tax laws and risk-based capital guidelines and reporting instructions and liquidity regulatory guidance; changes to the Bank's credit ratings; operational (including technology) and infrastructure risks; reputational risks; the risk that the Bank's risk management models may not take into account all relevant factors; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services; the Bank's ability to expand existing distribution channels and to develop and realize revenues from new distribution channels; the Bank's ability to complete and integrate acquisitions and its other growth strategies; critical accounting estimates and the effects of changes in accounting policies and methods used by the Bank as described in the Bank's annual financial statements (See "Controls and Accounting Policies - Critical accounting estimates" in the Bank's 2018 Annual Report) and updated by quarterly reports; global capital markets activity; the Bank's ability to attract and retain key executives; reliance on third parties to provide components of the Bank's business infrastructure; unexpected changes in consumer spending and saving habits; technological developments; fraud by internal or external parties, including the use of new technologies in unprecedented ways to defraud the Bank or its customers; increasing cyber security risks which may include theft of assets, unauthorized access to sensitive information or operational disruption; anti-money laundering; consolidation in the financial services sector in Canada and globally; competition, both from new entrants and established competitors; judicial and regulatory proceedings; natural disasters, including, but not limited to, earthquakes and hurricanes, and disruptions to public infrastructure, such as transportation, communication, power or water supply; the possible impact of international conflicts and other developments, including terrorist activities and war; the effects of disease or illness on local, national or international economies; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. For more information, see the "Risk Management" section of the Bank's 2018 Annual Report. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2018 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. The preceding list of factors is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. The forward-looking statements contained in this document are presented for the purpose of assisting the holders of the Bank's securities and financial analysts in understanding the Bank's financial position and results of operations as at and for the periods ended on the dates presented, as well as the Bank's financial performance objectives, vision and strategic goals, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. Scotiabank®#3TABLE OF CONTENTS Scotiabank Overview • • • Canada's International Bank Well-Diversified and Profitable Business Medium-Term Financial Objectives • Why Invest in Scotiabank? • • Increasing Scale, Improving Focus Track Record of Earnings and Dividend Growth 45 7 8 10 • Strong Capital Generation and Position • Progress in Digital Banking • Corporate Social Responsibility Business Line and Financial Overview . Q1 2019 Financial Performance • Canadian Banking • International Banking • Global Banking and Markets • Credit Performance by Business Lines Treasury and Funding • Funding Strategy • Wholesale Funding Composition Deposit Overview • Wholesale Funding Utilization • Liquidity Metrics Appendix 1: Bail-in and TLAC Appendix 2: Canadian Housing Market Appendix 3: Key Market Profiles Appendix 4: Covered Bonds Appendix 5: Additional Information Contact Information 11 12 13 14 15 16 23 26 28 29 30 31 32 33 33334 34 35 42 50 62 66 68 Scotiabank®#4Scotiabank Overview Scotiabank®#5Canada's International Bank Top 10 Bank in the Americas 1,2 Americas 7th largest bank by assets¹ 10th largest bank by market capitalization¹ Full-Service Canada Mexico Peru • Chile Colombia Caribbean Uruguay Wholesale Operations USA UK Hong Kong Singapore Australia Ireland China • Brazil South Korea Malaysia India • Japan 2018 Bank of the Year Latin America and the Caribbean by Latin Finance Europe FY Change Scotiabank 3 Q1 2019 Y/Y Revenue $7.6B +7% Net Income 4 $2.3B +4% Return on Equity 13.7% (260bps) Operating Leverage4 (4.3%) n.a. Productivity Ratio 54.1% 220bps4 Total Assets $1.0T 12.0% Ranking by Market Share 5 Canada #3 Asia PAC USMCA U.S.A. Mexico Peru Chile Colombia Top 10 Foreign Bank #6 #4 #3 in PAC #3 #5 35 1 Source: Bloomberg 2/24/19; 2 By assets and market capitalization; 3 Figures adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions; 4 Exclude employee benefits re-measurement credit of $203MM pre-tax, $150MM after-tax in Q1/18; 5 Ranking based on market share in loans as of December 2018 for PACS, as of November 2018 in Canada for publically traded banks; 6 For the three months ended January 31, 2019; 7 Excluding Corporate adjustments LEADING BANK IN THE AMERICAS Earnings by Geography3.6.7 Other- C&CA 7% 9% PAC 26% 8% 50% Canada U.S.A Americas (>90%) Scotiabank® 15#6Well-Diversified and Profitable Business Diversified by business and by geography, creating stability and lowering risk. Earnings by Business 1,2,3 Earnings by Geography1,2,3 Canadian Banking Wealth 10% Global Banking and Canadian Banking Markets P&C 15% EARNINGS MIX 39% $2.2B International Banking 36% Adjusted Return on Equity¹ by Division Canadian Banking 49% Colombia 2% Other International C&CA 7% 9% Chile 6% EARNINGS MIX Peru 10% Mexico $2.2B 8% U.S. 8% 18.4% 14.9% 13.7% 11.5% Canadian Banking International Banking Global Banking and All Bank Markets Canada 50% 1 For the three months ended January 31, 2019; 2 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 3 Excluding Corporate adjustments GREATER SCALE, GREATER FOCUS 6 Scotiabank®#7Medium-Term Financial Objectives1 METRICS ALL BANK OBJECTIVES Q1/19 RESULTS 2 (Y/Y Change) EPS Growth³ 7%+ ROE 14% + 13.7% Operating Leverage³ Positive (4.3%) Capital Strong Levels 11.1% Dividend Payout Ratio 40%-50% 48.5% BUSINESS LINE CANADIAN BANKING Net Income Growth Productivity Ratio 7% + (2%) <49% 50.0% INTERNATIONAL BANKING Net Income Growth 4 Productivity Ratio 9% + <51% +18% 51.1% 13-5 year objectives. 2Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions; 3 Exclude employee benefits re-measurement credit of $203MM pre-tax, $150MM after-tax in Q1/18; 4 On a constant dollar basis Scotiabank® 7#8Why Invest in Scotiabank? ☑ Canada's international bank and a top 10 bank in the Americas Diversified exposure to high quality growth markets Increasing scale and market share in key markets Improving quality of earnings. while reducing risk profile • • Unique footprint that provides sustainable and growing earnings and dividends Strong balance sheet, capital and liquidity ratios • Attractive dividend yield and long-term shareholder returns • Leading bank in the Pacific Alliance growth markets of Mexico, Peru, Chile and Colombia - a region of 230 million people with an under-banked market and a median age of 29 Earnings momentum in personal & commercial, wealth, and wholesale businesses Gaining market share in key markets of Canada and the Pacific Alliance countries Top 3 bank in Canada, Chile and Peru Increasing scale in Wealth and Pacific Alliance with $7B of strategic acquisitions in 2018 Approximately 80% of earnings from core personal and commercial banking businesses • Exited over 20 non-core countries and businesses since 2014 • Strong Canadian risk management culture - building stronger capabilities for AML, cyber and reputational risk Enhancing competitive advantage in technology and talent Leading levels of technology investment supports digital banking strategy. Increasing digital sales adoption with clear targets Well positioned in the Pacific Alliance to leverage technology, risk management and funding versus local and global competitors • Named to Top 25 "World's Best Workplaces" (2018) 8 Scotiabank®#9Increasing Scale, Improving Focus¹ Gaining scale in key markets to drive earnings growth, improve earnings quality and reduce risk Gaining Market Share (Total Loans) Canada 2013 2018 0 2 4 6 8 10 12 14 16 18 20 Increasing Scale with Strategic Acquisitions (2017-2019) MD Canada Chile MD Financial Management JARISLOWSKY FRASER GLOBAL INVESTMENT MANAGEMENT BBVA Increases wealth management assets to $230B. Adds 110,000 potential primary customers. Doubles market share. Creates 3rd largest bank. Mexico Chile Peru Colombia Improving Earnings Quality $ Increased wealth AUM by 37% to $282B in 2018. Targeting earnings contribution to All-Bank earnings from 12% to 15% 15-year period 2013-2018 INCREASING SCALE, IMPROVING FOCUS Peru banco cencosud Colombia Citibank Dominican Republic Creates #2 bank in credit cards. Creates market leader in credit cards. Doubles customer base. Creates 4th largest bank. PROGRESO Reducing Risk Profile • 57 countries 2013 37 countries 2019 Between 2013 and 2019, exited 20 countries with either low returns, small scale or higher operational risk: Turkey Russia • Haiti ⚫ Egypt Taiwan UAE ⚫ plus 13 others • Exited 3 non-core businesses Reduced wholesale funding (% of assets) from 29.6% to 23.9% • Reduced asset exposure in Asia by 21% Scotiabank® 9#10Strong Track Record of Earnings and Dividend Growth Stable and predictable earnings with steady increases in dividends Earnings per share (C$) 1.2 Total shareholder return³ $3.05 +9% CAGR $7.11 III Scotiabank Big 5 peers (ex. Scotiabank) 16.7% 14.4% 11.8% 12.0% 11.1% 8.6% 08 09 10 11 12 13 14 15 16 17 18 5 Year 10 Years 20 Years Dividend per share (C$) $1.92 08 09 +6% CAGR $3.28 10 11 12 13 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 January 31, 2019 INCREASING SCALE, IMPROVING FOCUS 10 Scotiabank®#11Strong Capital Generation and Position Capital levels are well above minimum regulatory requirements. Expect CET1 >11%. CET1 Ratio 11.2% 11.1% 11.1% +28 bps -12 bps -9 bps -3 bps -4 bps +10 bps Q4/18 Internal Capital RWA Impact Generation Pensions (ex. FX) Share issuance / Including FX Other Q1/19 Net Impact of Q1/19 Pro- Announced Forma (buybacks) Acquisitions & (net) Divestitures Strong Capital Levels 14.6% 1.9% 1.5% 15.3% 14.5% 14.6% 14.3% 1.8% 1.7% 1.8% 2.1% 1.5% 1.4% 1.4% 1.4% 12.0% 11.2% 11.4% 11.1% 11.1% Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 CET1 Tier 1 Tier 2 Scotiabank® 11#12Progress in Digital Banking Progressing well against 2018 Investor Day digital targets Digital Retail Sales¹ +1400bps Digital Adoption2 +700bps In-Branch Financial Transactions³ -800bps 25 33 33 26 22 29 23 26 20 18 15 11 F2016 F2017 F2018 Q1/19 F2016 F2017 F2018 Q1/19 F2016 F2017 F2018 Q1/19 Goal >50% Goal >70% Goal <10% Strong progress made in all five key markets across various product suites including deposits, personal loans, insurance, etc. Adoption grew 400bps against Q1 of last year; stable compared to year end In-branch transactions continued to decline at a steady pace 1 Canada: F2017 22%, F2018 26%, Q1/19 28% 2 Canada: F2017 36%, F2018 38%, Q1/19 39% 3 Canada: F2017 17%, F2018 15%, Q1/19 13% PACS: F2017 13%, F2018 19%, Q1/19 24% PACS: F2017 20%, F2018 26%, Q1/19 27% PACS: F2017 29%, F2018 24%, Q1/19 22% Scotiabank® 12 12#13Pending#14Business Line and Financial Overview Scotiabank®#15Pending#16Canadian 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 Retail 56% REVENUE MIX1 $3.4B 18% Commercial Residential Mortgages 61% MEDIUM-TERM FINANCIAL OBJECTIVES Target² Q1/191,3,4 AVERAGE LOAN MIX 1 $342B Net Income Growth 5 7% + (2%) Productivity Ratio <49% 50.0% CB ex Wealth <45% 45.7% 26% Credit Cards 21% 16% Wealth <65% 63.4% Wealth Business and Government Loans Personal Loan New Primary Customers +1 MM +210,000 STRATEGIC OUTLOOK • Improved productivity towards our <49% productivity ratio target (<45% ex Wealth) by 2020 supported by higher revenue growth and mid-dingle digit expense growth. Integration of our recent acquisitions in Wealth: MD Financial Management ($49B AUM) and Jarislowsky Fraser ($40B AUM) Leverage data analytics for prudent growth in higher margin credit card and small business banking • Increase core deposits; increase primary customers towards our 1 million new primary customer goal 1 For the three months ended January 31, 2019; 2 3-5 year target; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18; 4 Reflects adoption of new accounting standard, IFRS 15; 5Attributable to equity holders of the Bank Scotiabank® 16#17Q1 2019 Canadian Banking Financial Performance Strong deposit growth and higher NIM FINANCIAL PERFORMANCE AND METRICS ($MM)¹ Q1/19 Y/Y Q/Q . Reported Revenue $3,415 +3% (1%) Expenses $1,730 +8% (1%) PCLs $233 +11% +18% Net Income $1,073 Productivity Ratio 50.6% (3%) +200bps (10bps) (4%) Net Interest Margin 2.44% +3bps (1bp) PCL Ratio² 0.27% +2bps +4bps PCL Ratio on Impaired Loans² Adjusted³ 0.27% +5bps Expenses $1,709 +7% Net Income $1,089 Productivity Ratio 50.0% (2%) +160bps (5%) +50bps ADJUSTED NET INCOME 13 ($MM) AND NIM (%) 2.41% 2.43% 2.46% 2.45% 2.44% 1,107 1,022 1,141 1,146 1,089 Q1/18 Q2/18 1 Attributable to equity holders of the Bank Q3/18 Q4/18 Q1/19 YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income down 2%3 o Lower real estate gains and prior year Interac gain reduced net income by 4% Higher PCLs related to one commercial account o Includes the impact of acquisitions ○ Asset and deposit growth, margin expansion Revenue up 3% o Includes impact of acquisitions ○ Net interest income up 5% • Loan growth of 4% o Business loans up 10% o Residential mortgages up 3%; credit cards up 7% Deposit growth of 9% o Personal up 7%; Non-Personal up 12% NIM up 3 bps o Primarily driven by the impact of prior rate increases Expenses up 7%³ o Includes impact of acquisitions ○ Investments in technology and regulatory initiatives PCL ratio2 up 2 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 Scotiabank® 17#18Canadian Banking: Retail Exposures High quality retail loan portfolio: ~93% secured • Residential mortgage portfolio is high quality ○ 42% insured, and the remaining 58% uninsured has a LTV of 55% 1 • Market leader in auto loans ○ $37 billion auto loan portfolio with 7 OEM relationships (3 exclusive) o Prime Auto and Leases (~91%) o Lending tenor has been relatively stable with contractual terms for new originations averaging 78 months with projected effective terms of 55 months • Growth opportunity in credit cards o $7.4 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 。 Upside potential from existing customers: ~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 DOMESTIC RETAIL LOAN BOOK $287.4B 3% Credit Cards 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. 79% Real Estate Secured Lending -13% Automotive Scotiabank® 18#19Canadian Banking: Residential Mortgages High quality, diversified portfolio • Residential mortgage portfolio of $216 billion: 42% insured; LTV 55% on the uninsured book¹ ○ Mortgage business model is "originate to hold" ○ New originations 2 had average LTV of 64% in Q1/19 ○ Majority is freehold properties; condominiums represent approximately 13% of the portfolio • Three distinct distribution channels: All adjudicated under the same standards o 1. Broker (~59%); 2. Branch (~20%); and 3. Mobile Salesforce (~21%) CANADIAN MORTGAGE PORTFOLIO: $216B (SPOT BALANCES AS AT Q1/19, $B) Freehold $188B Condos $28B $109.2 42% Insured $12.6 $96.6 $39.2 $9.5 $30.8 $3.6 $16.0 $29.8 $27.2 $1.8 $14.2 $11.3 $11.1 $9.5 $0.2 Ontario BC & Territories Alberta Quebec Atlantic Provinces % of 50.5% 18.1% 14.3% 7.4% 5.3% $8.8 - $0.7 Manitoba & Saskatchewan 4.4% portfolio 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: $216 billion 58% Uninsured Scotiabank® 19#20Canadian Banking: Residential Mortgages (continued) High quality portfolio, lower originations in Vancouver and Toronto NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION GVA 59% BC & Territories 61% GTA 63% Q1/18 Q4/18 Q1/19 Growth/Change Y/Y Canada Total Originations ($B) 10.3 Uninsured LTV 10.5 9.3 -10% 64% 63% 64% GTA Total Originations ($B) Uninsured LTV 3.4 3.2 3.2 -6% 63% 62% 63% Prairies 67% ON QC 64% 66% Atlantic Provinces 68% GVA Total Originations ($B) 1.5 Uninsured LTV 62% 1.1 59% 1 -33% 59% -3% *Average LTV ratios for our uninsured residential mortgages originated during the quarter FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO1 Average FICO Score Canada 787 GTA 789 GVA 791 16% 12% 12% 4% < 635 636-706 707-747 FICO is a registered trademark of Fair Isaac Corporation 1 FICO distribution for Canadian uninsured portfolio based on score ranges at origination 56% . 748-788 > 788 • <0.70% of uninsured portfolio has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $124 billion as at Q1/2019 Scotiabank® 20 20#21Automotive 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 5% 1 year-over-year Personal up 4%, Commercial up 8% Exclusive Relationships MAZDA VOLVO JAGUAR LANDROVER Commercial 13% AVERAGE ASSET MIX Near-Prime 8% Retail $42.4B1 79% 100% Secured Market Share² Prime Retail Market Share³ 39% 61% Prime Retail Semi-Exclusive Relationships* HYUNDAI CHRYSLER GM TESLA * 1 to 2 other financial institutions comprise Semi-Exclusive relationships Near-Prime Retail Market Share4 70% 30% Commercial Floorplan Market Share5 70% 5 30% 1 For the three months ended October 31, 2018; 2Data as at June 2018; 3 CBA data, includes BMO, CIBC, HSBC, National Bank, RBC, Scotiabank, TD; DealerTrack Portal data, includes all Near-Prime Retail providers on DealerTrack Portal; 5 Includes BMO, CIBC, RBC, Scotiabank, TD, HSBC, Canadian Western Bank, Laurentian Bank 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39; 7 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures Scotiabank® 21#22Pending#23International Banking Leading diversified personal and commercial franchise in high quality growth markets • International Banking operates primarily in Latin America, the Caribbean and Central America with a full range of personal and commercial financial services, as well as wealth products and solutions Asia 25% C&CA 4% REVENUE 1 $3.3B 7% Other Business 51% Loans MEDIUM-TERM FINANCIAL OBJECTIVES 71% Credit Cards 6% LOAN MIX1 $149B Latin America 24% Mexico Latin America 18% Colombia Target² Q1/193,4 Net Income Growth 5 9% + 18% 16% Personal 27% 25% Loans Peru Productivity Ratio <51% 51.1% Residential Mortgages Operating Leverage Positive +4.2% 26% Chile • • STRATEGIC OUTLOOK Integration of acquisitions in Chile and Colombia. Close announced acquisitions in Peru and Dominican Republic Closing of dispositions of non-core operations in smaller Caribbean markets, Dominican Republic and El Salvador Margins (NIM ~450 bps) and credit quality are expected to remain stable with the level in Q1/19 • Maintain positive operating leverage 1 For the 3 months ended January 31, 2019; 2 3-5 year target; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions; 4 Y/Y growth rates (%) are on a constant $ basis; "Attributable to equity holders of the Bank Scotiabank® 23#24Q1 2019 International Banking Financial Performance Strong performance across the Pacific Alliance FINANCIAL PERFORMANCE AND METRICS ($MM) 1 1, 2 Q1/19 Y/Y Q/Q Reported Revenue $3,331 +22% +6% Expenses $1,742 +20% +1% PCLS $470 +37% +14% Net Income $782 +16% +10% Productivity Ratio 52.3% (100bps) (260bps) Net Interest Margin 4.52% (14bps) PCL Ratio 3 PCL Ratio on Impaired Loans³ 1.28% +2bps +23bps 1.23% (2bps) +3bps Adjusted5 Expenses $1,702 Net Income $805 Productivity Ratio 51.1% +18% +18% +2% +8% (180bps) (190bps) ADJUSTED NET INCOME 1,5 ($MM) AND NIM 5 (%) 4.66% 4.74% 4.70% 4.52% YEAR-OVER-YEAR HIGHLIGHTS2 • • 4.52% • 805 683 715 746 675 Q1/18 Q2/18 1 Attributable to equity holders of the Bank Q3/18 Q4/18 Q1/19 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis • Adjusted Net Income up 18%5 o Includes impact from alignment of reporting period in Peru which contributed 6% Strong asset and deposit growth across the Pacific Alliance Revenues up 22% o Includes impact of acquisitions o Pacific Alliance up 31% includes impact of acquisitions Loans up 29% o Pacific Alliance up 44% includes impact of Chile and Colombia acquisitions NIM down 14 bps o Driven by the business mix impact of acquisitions (BBVA Chile) Expenses up 18%5 o Includes impact of acquisitions Business volume growth and inflation 。 Productivity ratio improvement of 180bps 5 Positive operating leverage of 4.2%5 • PCLS ratio reflects stable credit quality 3 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 4 Net Interest Margin is on a reported basis 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 Scotiabank® 24#25Scotiabank in the Pacific Alliance Countries Well positioned for long-term growth in large, growing market Population 1,2 Government Presidential Elections Financial Stability Economy GDP1 Exports5 Trade Partners 5 Business Environment HDI Score Rank6 Banking Penetration1 Foreign Direct Investment1 Key Highlights of Pacific Alliance countries (PACS) •230 million. 6.2x Canada's population. Projected growth outpaces Canada, other EM³ and G7 countries; median age 4 of 29 No elections scheduled until 2021 All sovereign credit ratings in IG category with central banks' policy targeting inflation since 1999 ⚫9th largest economy in the world 64% of exports related to manufacturing US, China and Canada are the PACs' largest trading partners, representing 72% of exports • Rank "High" or "Very High" (United Nations, 2017) Under-banked with average banking penetration at ~50% compared to over 90% in Canada and the U.S. FDI averaging 3.2% of GDP compared to 1.7% in Canada and the U.S. -- Mexico Scotiabank Market Share? Market Share Ranking? 7.1% 6th Peru 17.7% 3rd Chile 14.0% 3rd Strengths Auto and mortgages Commercial, personal and Mortgages Commercial, personal and Mortgages Colombia 6.2% 5th Credit Cards and PACS (Total/Average) 11.5% 4th Well positioned personal Average Total Loans ³ (C$B) $28.1 $20.5 $45.6 $12.2 $106.3 Revenue (C$B) $0.6 $0.6 $0.6 $0.4 $2.2 Net Income after NCI 9, 10 (C$MM) $182 $212 $135 $39 $567 ROE 9,10 25% 28% 9% 10% 16% # of Employees 11,12 13,214 11,080 9,257 9,689 43,240 1 Source: World Bank 2017 2 Population growth: World Bank Data Bank 2017-2022 3 EM countries include: Argentina, Brazil, China, Greece, India, Indonesia, Poland, South Africa, Turkey, and Russia 4 Source: The World Factbook, CIA 2017 5 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co- operation and Development (OECD) 2016 6 Human Development Index. Source: United Nations Development Programme (UNDP) 2017. For more information, please refer to: http://hdr.undp.org/sites/default/files/2018_human_development statistical_update.pdf 7 Ranking based on publicly traded banks by total loans market share as of December 2018 8 Average loan balances over Q1/19 9. For the quarter ended January 31, 2019 10 Earnings adjusted for acquisition-related costs including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 11 Employees are reported on a full-time equivalent basis 12 As of January 31, 2019 13 May not add due to rounding Scotiabank® 25#26Pending#27Pending#28Credit Performance by Business Lines Stable underlying credit Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 (As a % of PCLs on Total Average Net Loans & Impaired PCLs Acceptance) Loans PCLs on Impaired Loans Total PCLs PCLs on Total PCLs on Impaired PCLs Impaired Loans (adj) Loans PCLs on Total Total Impaired PCLs PCLS Loans Canadian Banking Retail 0.29 0.28 0.28 0.28 0.25 0.24 0.25 0.25 0.28 0.28 Commercial 0.11 0.08 0.09 0.09 (0.04) 0.06 0.06 0.15 0.21 0.23 Total 0.27 0.25 0.25 0.25 0.21 0.21 0.22 0.23 0.27 0.27 International Banking Retail 2.28 2.39 2.26 2.16 2.36 2.253 2.38 2.21 2.33 2.36 Commercial 0.28 0.201 0.55 0.341 0.38 0.311,3 0.07 (0.06) 0.19 0.26 Total 1.252 1.261.2 1.382 1.221.2 1.33 1.234 1.20 1.05 1.23 1.28 Global Banking and Markets (0.01) (0.04) 0.02 (0.05) (0.06) (0.05) (0.07) (0.09) (0.01) (0.07) All Bank 0.43 0.42 0.46 0.42 0.41 0.40 0.42 0.39 0.47 0.47 1 Excludes provision for credit losses on debt securities and deposit with banks 2 Not comparable to prior periods, which were net of acquisition benefits 3 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions Scotiabank® 28#29Treasury and Funding Scotiabank®#30Funding Strategy Flexible, well-balanced and diversified funding sources Funding Strategy Build customer deposits in all of our key markets Continue to manage wholesale funding (WSF) and focus on longer term funding ○ Endeavouring to fund asset growth through deposits • Achieve appropriate balance between cost and stability of funding 。 Maintain pricing relative to peers ⚫ Diversify funding by type, currency, program, tenor and markets • Pre-fund at least one quarter ahead, market permitting • Centralized funding strategy and associated risk management SHORT-TERM FUNDING o USD 25 billion Bank CP program О USD 3 billion Subsidiary CP program CD Programs (Yankee/USD, EUR, GBP, AUD, HKD) ⚫ TERM FUNDING & CAPITAL Canadian Dollar o CAD 36 billion global registered covered bond program (uninsured Canadian mortgages) o Canada Mortgage Bonds and Mortgage Back Securities o CAD 15 billion debt & equity shelf (senior/sub debt, prefs, common shares) o CAD 15 billion START ABS program (indirect auto loans) o CAD 7 billion Halifax ABS shelf (unsecured lines of credit) ○ CAD 6 billion Principal at Risk (PAR) Note shelf o CAD 5 billion Trillium ABS shelf (credit cards) Foreign Currency o USD 40 billion debt & equity shelf (senior/sub debt, prefs, common shares) o USD 20 billion EMTN shelf o AUD 8 billion Australian MTN program o USD 7.5 billion Singapore MTN program Scotiabank® 30#31Wholesale Funding Composition Wholesale funding diversity by instrument and maturity 1,6,7 34% Senior Notes 1% Bail-inable Notes Asset-Backed Commercial Paper³ 3% 34% Bearer Deposit Notes, Commercial Paper & Short-Term Certificate of Deposits MATURITY TABLE (EX-SUB DEBT) (CANADIAN DOLLAR EQUIVALENT, $B) 2% Asset-Backed Securities $26 $24 $23 $4 12% $4 $19 $3 $11 $17 $3 $2 Covered Bonds $247B $1 9% $11 $21 Mortgage Securitization4 4% $17 $6 $15 $15 $12 $5 1% 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 ED TF recommended disclosures. 6 As per Wholesale Funding Sources Table in MD&A, as of Q1/19. 7 May not add to 100% due to rounding. Scotiabank® 31#32Q1/16 Q2/16 Q3/16 Q4/16 Deposit Overview Stable trend in personal & business and government deposits PERSONAL DEPOSITS (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) $211 $215 $222 $199 $201 $195 $196 $198 $204 $199 $202 $200 $193 3Y CAGR - 4.4% PERSONAL DEPOSITS • Important for both relationship purposes and regulatory value • Good momentum with 4.4% CAGR over the last 3 years Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 BUSINESS & GOVERNMENT DEPOSITS 1 (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) Q2/18 Q3/18 Q4/18 Q1/19 $197 $179 $172 $170 $197 $156 $161 $156 $174 $169 $168 $155 $149 Q1/16 Q2/16 Q3/16 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 3Y CAGR - 8.2% Q1/19 · BUSINESS & GOVERNMENT Gaining share of deposits through leveraging of relationships • 8.2% CAGR over the last 3 years • Focusing on operational, regulatory friendly deposits Scotiabank® 32 32#33Q4/15 Q1/16 Q2/16 Wholesale Funding Utilization Managing reliance on wholesale funding and growing deposits WHOLESALE FUNDING / TOTAL ASSETS 27.7% 25.2% 23.8% 23.4% 23.9% 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 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 MONEY MARKET WHOLESALE FUNDING / TOTAL WHOLESALE FUNDING 39.9% 38.7% 38.3% 38.4% 37.5% 37.4% 36.8% 36.0% 35.6% FOCUS ON TERM FUNDING Reduced reliance on money market funding and termed out funding book 。 Q1/19 increase is temporary and expected to revert to previous levels Scotiabank® 33 33#34Liquidity Metrics Well funded Bank with strong liquidity Liquidity Coverage Ratio (LCR) 。 Stable and sound management of liquidity 。 Net Stable Funding Ratio (NSFR) implementation date is January 2020 132% 127% 128% 128% 127% 126% 125% 125% 125% 124% Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 • High Quality Liquid Assets (HQLA) 。 Efficiently managing LCR and optimizing HQLA $158 $144 $140 $138 $136 $132 $128 $127 $125 $123 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Scotiabank® 34#35Appendix 1: Bail-in and TLAC Scotiabank®#36Pending#37Overview of Canadian Bail-in Regulations. Scope of Bail-in Debt • Scope emphasizes operational feasibility, credibility and preserving access to liquidity in stress • What's in scope: o Issued, originated or renegotiated after September 23, 2018 o Long term (original term >400 days) o Tradeable and transferrable 。 Unsecured • What's not in scope: • Deposits. ○ Most structured notes o Secured liabilities o Covered bonds 。 Derivatives Bail-in Outcomes • Bank stays open and operating • DSIB is recapitalized with limited or no taxpayer support and able to re-access markets Recoveries are consistent with relative hierarchy of claims (shared losses) ○ Significant dilution of original common shareholders through conversion of NVCC and Bail-in debt o New common shares issued to NVCC and Bail-in debt holders according to their relative rankings ⚫. No creditor worse off • Legacy (non-NVCC) instruments are not in scope but would be subject to other resolution tools to ensure that senior bail- in debt holders are better off than holders of legacy capital instruments Scotiabank® 37#38Bail-in Process Resolution Bail-in Conversion Business as usual Good financial health Heightened risk Financial difficulties DSIB may implement recovery plan actions under OSFI oversight • CDIC may monitor and undertake necessary preparatory activities • DSIB may experience declining market confidence, credit rating downgrades and funding / capital raising challenges Point of non-viability • OSFI declares the DSIB non- viable • Minister of Finance has Federal Cabinet issue orders authorizing CDIC to assume temporary control or ownership of the DSIB and to execute a Bail-in conversion . • • Resolution weekend CDIC takes control / ownership of the DSIB OSFI triggers NVCC conversion Management and Board of DSIB replaced if necessary Stabilization / restructuring CDIC exits ⚫ 1-week to 1- year timeframe • Common shares resulting from NVCC and BID conversion are issued (voting rights suspended) Execution of restructuring plan Liquidity support if necessary • 1 to 5-year timeframe • Voting rights are resumed • "No creditor worse off" determination and payment of compensation Scotiabank® 38#39Overview of Canadian Bail-in Regulations Compensation Regime • No creditor worse off: Creditors and shareholders are compensated where they have been made worse off than they would have been in a liquidation • Persons who hold the following claims at the time of entry into resolution are entitled to compensation: o Shares of the institution ○ Subordinated debt vested in CDIC at the time of entry into resolution 。 NVCC subordinated debt subsequently converted into common shares pursuant to contractual terms Liabilities subsequently converted into common shares pursuant to Bail-in power ○ Any liability of the institution if the institution was wound-up at the end of the resolution process o Any liability of the institution that was assumed by a CDIC- owned work-out company or bridge bank which was subsequently liquidated or wound-up • Compensation = liquidation value - resolution value • Right to compensation is not transferrable Resolution Tools CDIC has a number of tools to assist or resolve a failing DSIB 1. Liquidation of the bank and reimbursement of insured deposits 2. Bank is placed under temporary CDIC control to complete its sale to a willing buyer (forced sale) via one of two approaches: All shares are transferred to CDIC and it becomes the sole shareholder to facilitate the sale; or CDIC is appointed receiver to sell all or some of the assets and liabilities to the buyer Under both approaches, critical banking operations are maintained 3. Bank is placed under temporary CDIC control and CDIC transfers certain functions to a bridge bank which is temporarily owned by CDIC о Meant to bridge the gap from when an institution fails and when a buyer or private-sector solution can be found Critical banking operations are maintained 4. Bail-in regime Scotiabank® 39#40TLAC Requirements and Eligibility Two concurrent minimum TLAC compliance requirements by Q1/22 21.5% minimum risk-based TLAC ratio & 6.75% minimum TLAC leverage ratio TLAC eligibility Tier 1 and 2 regulatory capital as per CAR guideline + Bail-in debt • Eligibility criteria for bail-in debt to qualify as TLAC Subject to permanent conversion into common shares in whole or in part pursuant to CDIC Act Directly issued by Canadian parent operating company Not secured or covered by a guarantee of the issuer or related party Perpetual or have remaining term >365 days No acceleration rights outside of bankruptcy, insolvency, wind-up, liquidation or failure to make principal or interest payments for 30 business days or more Callable without OSFI prior approval if, following the transaction, the minimum TLAC requirement is satisfied By Q1/22, Scotiabank will exceed the minimum TLAC requirement (plus Domestic Stability Buffer requirement) based on maintaining current capital levels and refinancing upcoming senior maturities Scotiabank® 40#41Overview of Canadian Bail-in Regulations NVCC vs. Bail-in • NVCC are regulatory capital instruments other than common shares that are converted to CET1 at non-viability Authorities would trigger NVCC only where there was a high level of confidence that the conversion plus additional measures would restore the viability of the bank • NVCC improves regulatory capital quality, not quantity o Conversion of NVCC increases CET1 but not total capital a gap that Bail-in addresses • NVCC is a prerequisite to Bail-in Enhanced Disclosures ⚫ Bail-in debt will be subject to robust disclosure requirements to promote transparency, legal certainty and market discipline • Contractual terms must include a clause whereby investors expressly submit to the Canadian Bail-in regime notwithstanding any foreign law to the contrary Disclosures regarding Bail-in power are required in offering documents ⚫ DSIBS are not permitted to advertise or otherwise promote Bail-in debt, including in its name, to a purchaser in Canada as a deposit • Failure to meet these requirements would not exempt an issuance from being eligible for Bail-in Scotiabank® 41#42Appendix 2: Canadian Housing Market Scotiabank®#43Canadian Household Credit Growth Moderating Public policy changes are moderating growth in household credit • Total household credit grew at 3.1% in nominal terms in 2018 vs 2008 peak of 12.4% y/y • Consumer loans excluding mortgages (i.e. cards, HELOCs, unsecured lines, auto loans, etc.) grew at 3.0% in 2018 vs > 5% in late-2017 Mortgage credit grew at 3.1% in 2018 vs 2008 peak of 13% HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 20 20 %, 3-month moving average %, 3-month moving average 18 15 y/y % change 16 14 y/y % change 12 10 8 20 %, 3-month moving average 18 16 y/y % 14 change m/m% 12 change, 10 SA 10 8 5 6 4 2 0 -5 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. m/m% change, SA 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. CO 6 4 2 0 m/m% change, SA 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. Scotiabank® 43#44Household Debt: Canada vs. U.S. Canadian households' balance sheets compare favourably to US Canadian debt-to-income ratio is now 2.2 percentage points below the U.S. peak in 2008 Over the last 8 years, increases in the Canadian debt-to-income ratio have slowed vs 2002-10 Calculated on the same terms, Canada's debt-to-income is currently 167% vs 134% in the U.S. Canadian debt-to-assets ratio remains below U.S. o U.S. households have incentive to pursue higher asset leverage in light of mortgage interest deductibility o Debt is a stock concept, to be financed over one's lifetime. Income is a flow concept measuring one single year's earnings. Debt should be compared to lifetime or permanent income, or assets • 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 98.6% in Canada vs 101.1% in the U.S. Household Credit Market Debt to Disposable Income Total Household Liabilities As % of Total Assets Household Credit Market Debt to GDP 200 household credit liabilities as % of disposable income 173.8 180 160 140 120 100 80 60 660 30 25 166.8 134.0 20 20 Adjusted Canadian* 15 Official Canadian Official US 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 * Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. household debt as % of assets 10 US 130 % of GDP 120 110 US with unincorporated business debt 100 Original Canada 102.9 101.1 98.6 90 Canada* 17.8 80 Canada 70 Original 74.9 US 16.8 60 50 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Federal Reserve Board, Statistics Canada. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 * Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. Scotiabank® 44#45Canadian Mortgage Market Less than half of households have a mortgage or a HELOC Mortgage holders 。 Less than 50% of Canadian households have exposure to a mortgage and/or a HELOC 。 Negligible number of negative equity mortgages in Canada 。 91% of all homeowners have equity ratios of 25% or higher. Significant price decreases required to reach a negative equity position High share of equity: average equity ratio is 74% (excluding HELOCs) 。 Approximately half of first-time home buyers in Canada are able to source their down payments from their personal savings • 2014-17 data show 79% of buyers from that period have 25% or more equity o Reflects speed of rising house prices, increased down payment requirements, and tightened mortgage rules 2014-17 data indicate only 42% of first-time home buyers had less than 20% down 45 40 40 More than 50% of Households Do Not Have a Mortgage or HELOC % of households, 2017 ■with HELOC 3.4 10.6 35 30 25 20 32.0 15 30.7 22.8 10 5 0 Owned dwelling w/ mortgage Owned dwelling w/o mortgage Rented Sources: Scotiabank Economics, Mortgage Professionals Canada. High Percentage of Equity (real estate equity as % of real estate assets) Efforts to cool the housing market are working, which implies moderating price appreciation 80 % Official (excludes HELOCS) 75 70 Cda estimate including HELOCS 65 60 US estimate with NFPs excluding HELOCS 55 50 45 Official FRB with NFPS 40 (includes HELOCs) 35 90 92 94 96 98 00 02 04 06 08 10 12 14 16 Sources: Scotiabank Economics, OSFI, FCAC, Statistics Canada, Federal Reserve Board. Scotiabank® 45#46NUMBER OF IMMIGRANTS TO CANADA, 000S RATIO Canadian Housing Fundamentals Remain Sound Solid indicators on several dimensions INTERNATIONAL IMMIGRATION TOTAL DEBT-SERVICE RATIO 290 240 190 2021 Target = 350K 140 90 95 00 05 10 15 Sources: Scotiabank Economics, Statistics Canada. RESIDENTIAL UNIT SALES TO NEW LISTINGS RATIO 1.0 0.8 0.6 0.4 0.2 0.0 WA Balanced Market Sellers' Market Am Buyers' Market 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, CREA MLS. Data through January 2019. % OF DISPOSABLE INCOME % OF MORTGAGES IN ARREARS 3 MONTHS OR MORE co 50 + ♡ 16 15 14 13 1990-2017 average 12 32 11 10 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada. Data through 2018Q3. RESIDENTIAL MORTGAGES ARREARS U.S. Canada 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, CBA, MBA. Data through 2018Q4 (US) and October 2018 (Canada). Scotiabank® 46#47Households Can Sustain Higher Rates Real interest rates are still negative and will turn only mildly positive in 2019 ⚫ Scotiabank Economics expects the Bank of Canada to raise its target overnight rate an additional 100 bps by Q1/2020 Average mortgage borrowers have only just begun renewing their loans at higher interest rates Further Rate Hikes Ahead from BoC & Fed 9 % 7 Fed Funds Target Rate (Upper Limit) 5 + 3 2 1 0 93 98 ВОС Little Change in 5-yr Mortgage Rates at Renewal 50 5-yr difference, basis points 0 -50 -100 forecast -150 Overnight Target Rate -200 -250 -300 03 08 13 18 Sources: Scotiabank Economics, Haver Analytics. 10 11 12 13 14 15 16 17 18 19 Sources: Scotiabank Economics, CMHC. Scotiabank® 47#48Housing 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 Scotiabank® 48#49Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2019 ⚫ 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. 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 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 • 2017 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 o Vacant home tax oCAD 125 mn five-year program to encourage construction of new rental apartment buildings • . 2016 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: O Maximum amortization 25 years o CAD 1 mn maximum purchase price ○ Minimum credit score of 600 。 Property must be owner occupied Elimination of primary residence tax exemption for foreign buyers • Minimum down payment on insured mortgages on homes valued CAD 0.5-1 mn increased from 5% to 10% British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced Scotiabank® 49#50Appendix 3: Key Market Profiles Scotiabank®#51Canadian Economy and Financial System Stable economy with sound financial system • . CANADIAN ECONOMY The 10th largest economy in the world, with an outward orientation Economy diversified, with particular strength in services, primary industries, manufacturing, construction, and utility sectors Proactive government and central bank that have begun unwinding exceptionally accommodative monetary policy Manageable government deficits and debt burdens Strong growth outlook, with firm commodity prices, resilient consumer activity, and solid U.S. demand for Canadian goods and services Only G7 country with free-trade agreements with all other G7 members under NAFTA / USMCA, CETA, and CPTPP. STRONG FINANCIAL SYSTEM Effective regulatory framework o Principles-based regime o Single regulator for major banks 。 Conservative capital requirements o Proactive policies and programs ⚫ Risk-management practices O Prudent lending standards 。 Few sub-prime mortgages o Relatively little securitization Primarily originate-to-hold model Canadian banks well-capitalized and profitable Scotiabank® 51#52% OF GDP Canadian Economy Diverse economy with a strong balance sheet 19.4%- Finance, Insurance, & Real Estate 15.4% Other 4.5% Transportation & Warehousing 5.8% Professional, Scientific, & Technical Services 6.6% CANADIAN GDP BY INDUSTRY (NOV 2018) Public Administration -12.5% Health & Education -10.4% Wholesale & Retail Trade -10.4% Manufacturing -7.7% Mining and Oil & Gas Extraction -7.2% Construction GENERAL GOVERNMENT NET FINANCIAL LIABILITIES ANNUAL % CHANGE REAL GDP GROWTH 2 3 U.S. 2000-2017 Canada Eurozone 2018e-2020f UK Japan Sources: Scotiabank Economics, Haver Analytics, Statistics Canada. Forecasts as of February 7, 2019. GOVERNMENT FINANCIAL DEFICITS 2 1.5 124.9 130.4 % OF GDP 0 = ≈ (0.7) (1.2) (1.7) (2.0) (2.6) 80.8 81.8 83.7 3 66.7 (3.7) -4 33.5 (4.7) 23.3 -5 Canada Germany OECD France U.S. UK Italy Japan Germany OECD* Canada Italy UK France Japan U.S. * Arithmetic mean of all OECD Financial Deficits as a % of GDP. Sources: Scotiabank Economics, OECD (2018 estimates). As of February 2019. Sources: Scotiabank Economics, IMF (2018 estimates). As of February 2019. Scotiabank® 52#53Stable Economic Fundamentals Low unemployment rate reflects solid growth in Canadian economy UNEMPLOYMENT RATE 14 12 10 8 6 4 2 0 Canada - official U.S. Canada comparable to 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 January 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 CO 6 A Canada Bank of Canada Target Inflation Band U.S. -2 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through December 2018 (Canada) and January 2019 (US). LABOUR FORCE PARTICIPATION RATE 70 68 Canada (%) 60 222 % 66 64 62 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 January 2019. Scotiabank® 53#54USMCA: Preserves Access to U.S. Market Scotiabank is committed to long-term growth across the Pacific Alliance Key Features of NAFTA 2.0 ○ Autos. Maintains integrated supply chains for vehicle and parts manufacturing across North America. Both Canada and Mexico would be shielded from any US move to impose so-called 'national security' Section 232 tariffs on automobiles. Mexico has negotiated an additional cushion to the transition to the new tighter auto rules of origin that maintains tariff- free access for 1.6mn vehicles a year under NAFTA's existing terms ○ Agriculture. Limited increases in bilateral access to specific commodity markets 。 Natural resources. Recent Mexican oil reforms institutionalized in the agreement, while US claims under NAFTA on a proportionate share of Canadian oil shipments is ended ○ Sunset clause. No automatic expiry. Agreement will be reviewed every six years with 10 ensuing annual reviews to address outstanding concerns 。 Dispute settlement. Existing state-state dispute-settlement mechanisms under NAFTA's chapters 19 and 20 preserved; investor protections under NAFTA's chapter 11 maintained between US and Mexico; bilateral Canada-Mexico issues covered by CPTPP. 。 IP. Extends patent and copyright protections in Canada and Mexico in line with previous understandings under draft TPP 。 Government procurement. No intensification of 'Buy American' rules 。 Visas. No change in NAFTA visa framework • Next steps 。 Signed in 2018 by all three countries. Side letters that shield Canada and Mexico from Sec. 232 auto tariffs are active o Ratification process in US could stretch into late-2019. Any demands for changes likely to be handled in side letters o In Mexico and Canada, the ratification process should be smoother, governments are supported by legislative majorities. Implications for the Pacific Alliance o Little impact expected on Peru, Chile, or Colombia o Canada and Mexico will continue to pursue their trade diversification agendas with the members of the Alliance. Article 32.10 should not impede negotiation of future trade agreements with so-called 'non-market economies' Scotiabank® 54 44#55Economic Outlook in Key Markets Growth expected to accelerate across the Pacific Alliance 2018 AND 2019 REAL GDP GROWTH FORECAST (%) Real GDP (Annual % Change) Country 2000-17 avg. 2018e 2019f 2020f Mexico 2.2 2.0 1.4 1.3 Peru 5.0 3.6 4.0 4.0 Chile 3.9 4.2 3.2 3.2 Colombia 3.9 2.6 3.4 3.8 PACS simple avg. 3.8 3.1 3.0 3.1 2000-17 avg. 2018e 2019f 2020f Canada 2.1 2.0 1.8 2.0 U.S. 2.0 2.9 2.4 1.7 Source: Scotiabank Economics. Forecasts as of February 7, 2019. Scotiabank® 55#56Focused on the Pacific Alliance Attractive growth opportunity for Scotiabank Pacific Alliance o Portfolio of high quality growth markets for Scotiabank О 230 million people with median age of 29 O Largest trading partner is the United States (64% of exports) О Largest sector is manufacturing (64% of exports) o Trade bloc with free trade agreements to liberalize commerce and improve integration • Supports trade flows with Asia in order to compete with Brazil and Argentina which participate in Mercosur 。 Accounts for 36% of Latin America's GDP, comparable to Brazil 。 Canada has bilateral free-trade agreements with all four Pacific Alliance countries and it has initiated an application for Associate Membership in the Alliance • Pacific Alliance is an Attractive Long-Term Opportunity o Region is the 6th largest goods exporter in the world o Trade bloc with governments supporting growth/significant infrastructure spending o Solid GDP growth rates relative to peers o Considerable room to increase banking penetration (avg. domestic credit around 2/3 of GDP) ○ Fast-growing middle-class with increasing financial demands o Favourable demographics for banking needs ○ Relatively stable legal, tax, and regulatory infrastructure in place o Central bankers have earned credibility and banking system is well-capitalized Scotiabank® 56#57Mexican 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 Despite NAFTA-related uncertainty, investment rebounded in 2018 and trade has returned to making a positive contribution to economy-wide growth 15.9% Finance, Insurance, & Real Estate 16.2% Other 3.1% Natural Resources 6.5% Transportation & Warehousing 5.8% Health & Education MEXICAN GDP BY INDUSTRY (Q3 2018) 1.9% Professional, 3.8% Scientific, & Technical Public Services Administration Top 5 Trading Partners 17.5% Wholesale & Retail Trade 15.9% Manufacturing 6.3% Mining and Oil & Gas Extraction 7.0% Construction Contributions to Mexican GDP Growth 5 y/y % change 4 3 2 1 0 -1 -2 Other Net Exports Inventories GFCF Government Consumption -3 16 Real GDP 17 18 Sources: Scotiabank Economics, Haver Analytics. Germany 3% Japan 3% Canada 4% China 10% Others 21% United States 59% Scotiabank® 57 52#58Chilean 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 21 free-trade agreements with 59 countries that account for 70% of global GDP Investment has been a strong contributor to growth in Chile over the past year, which should underpin future productivity gains 15.1% Finance, Insurance, & Real Estate 8.7% Other 1.9% Restaurants & Hotels 8.5% Transportation & Warehousing 3.4% Natural Resources CHILEAN GDP BY INDUSTRY (SEP 2018) 19.3% Housing & Personal Services 9.7% Wholesale & Retail Trade -10.2% Manufacturing -12.5% Mining and Oil & Gas Extraction 6.2% Construction 4.6% Public Administration 8 y/y % change 6 4 2 0 -2 -4 -6 Contributions to Chilean GDP Growth 17 16 Sources: Scotiabank Economics, Haver Analytics. Net Exports Inventories Investment Government Consumption Real GDP 18 Top 5 Trading Partners Others 40% China 27% South Korea 4% United States 16% Japan Brazil 6% 7% Scotiabank® 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 higher growth rates more sustainable in the future 12.7% Manufacturing 9.6% Finance, Insurance, & Real Estate 31.5% PERUVIAN GDP BY INDUSTRY (Q3 2018) 20.7% Transportation, Information & Commerce 5.8% Construction 8 y/y % change 6 4 2 0 -2 -4 -6 Contributions to Peruvian GDP Growth 17 16 Sources: Scotiabank Economics, Haver Analytics. Other 5.1% Natural Resources 14.6% Mining & Energy Top 5 Trading Partners China 26% Others 44% Net Exports Inventories GFCF Government United States Consumption Real GDP 18% 18 South Korea 3% Spain Brazil 4% 5% Scotiabank® 59#60Colombian 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 10 free-trade agreements with 42 countries that account for 38% 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 2018) 7.0% Professional, Scientific, & Technical Services 16.9% Wholesale, Retail Trade, Accommodation & Food Services 12.0% Manufacturing 8.2% Mining and Oil & Gas Extraction -14.9% 6.9% Construction Public Administration Contributions to Colombian GDP Growth 5 y/y % change 4 3 2 1 0 -1 -2 Other Net Exports GFCF Government Consumption -3 Real GDP 16 17 18 Sources: Scotiabank Economics, Haver Analytics. Top 5 Trading Partners United States Others 29% 44% China 14% Germany 3% Brazil Mexico 4% 6% Scotiabank® 60 60#61Pending#62Appendix 4: Covered Bonds Scotiabank®#63Pending#64Global Registered Covered Bond Program 1 CAD$36 billion global covered bond program LOAN-TO-VALUE RATIOS2 CREDIT SCORES 43% 34% 60% 18% 4% 5% 19% 1% 1% 2% 12% 0-20% 20-40% 40-60% 60-80% 80+% <599 600-650 651-700 701-750 751-800 800< REMAINING TERM DISTRIBUTION (MONTHS) 9.0% <12 11.8% 35.3% il. 23.1% Alberta 0.1% Yukon 2.5% Saskatchewan 7.2% 12.0% 9.9% 10.7% Quebec 12-23.99 24-35.99 36-41.99 42-47.99 48< 1 As at January 31, 2019 PROVINCIAL DISTRIBUTION 0.2% P.E.I. 53.7% 2 Uses indexation methodology as outlined in Footnote 1 of the Scotiabank Global Registered Covered Bond Monthly Investor Report Ontario 18.6% British Columbia 1.2% Manitoba 1.1% New Brunswick 1.5% Newfoundland 2.0% Nova Scotia Scotiabank® 64#65Canadian 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 • . Credit Enhancement • • 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% 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 Swaps . Interest rate swap, forward starting Valuation calculation Market Risk Reporting • Mandatory property value indexation • CMHC Covered Bond Supervisory Body Requirement to Register Issuer and Program Registry Disclosure Requirements • • Yes; prior to first issuance of the covered bond program Yes Monthly investor report with prescribed disclosure requirements set out by CMHC Investor reports must be posted on the program website Required to meet applicable regulatory disclosure requirements Scotiabank® 65#66Appendix 5: Additional Information Scotiabank®#67Additional Information Scotiabank Listings: Toronto Stock Exchange (TSX: BNS) New York Stock Exchange (NYSE: BNS) Scotiabank Credit Ratings Scotiabank Common Share Issue Information: CUSIP: 064149107 . ISIN: CA0641491075 FIGI: BBG000BXSXH3 NAICS: 522110 Moody's Investors Services Dominion Bond Standard & Fitch Ratings Poor's Rating Service Ltd. Aa2 A+ AA- AA Legacy Senior Debt¹ Senior Debt² Subordinated Debt (NVCC) Short Term Deposits/Commercial Paper P-1 Covered Bond Program Outlook Stable A2 A- AA- AA (low) Baa1 BBB+ A (low) A-1 F1+ R-1 (high) Aaa Not Rated AAA AAA Stable Stable Stable 1 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 Subject to conversion under the bank recapitalization "bail-in" regime For further information, please contact: www.scotiabank.com/investorrelations Scotiabank® 67#68Pending