#1apn WEREDET NOVEMBER 2018 Investor Presentation Vous Hes plus SERVICE COMPLET FOURTH QUARTER 2016 November 29, 2016 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 2016 Annual Report under the headings "Overview-Outlook," for Group Financial Performance "Outlook," for each business segment "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 in receptive markets; 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 2016 Annual Report) and updated by this document; 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 or other criminal behavior 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 including through internet and mobile banking; 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 Bank's 2016 Annual Report. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2016 Annual Report under the heading "Overview-Outlook," as updated by this document; and for each business segment "Outlook". 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 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®#3apn WEBUILT NOVEMBER 2016 Overview Houses plus SERVICE COMPLET Brian Porter President & Chief Executive Officer Scotiabank®#4Fiscal 2016 Overview • • • • Strong performance in 20161 • • • Net income of $7.6 billion Diluted EPS of $6.00 per share ROE of 14.3% Revenue growth of 10% year-over-year Positive operating leverage of 1.0%1 Capital position remains strong at 11.0% Quarterly dividend raised twice in fiscal 2016 (1) Adjusting for Q2/16 restructuring charge of $278 million after-tax ($378 million before-tax) 4 Scotiabank®#5apn NOVEMBER 2016 Vous tres plus SERVICE COMPLET 10 DAYS Financial Review Sean McGuckin Chief Financial Officer Scotiabank®#6Q4 2016 Financial Performance $ millions, except EPS Q4/16 Q/Q Y/Y Net Income $2,011 +3% +9% . Diluted EPS $1.57 +2% +8% . Revenues $6,751 +2% +10% Expenses $3,650 +4% +11% Productivity Ratio 54.1% +130bps +50bps Core Banking Margin 2.40% +2bps +5bps Dividends Per Common Share • +$0.02 +$0.02 $0.74 $0.72 $0.72 $0.70 $0.70 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Announced dividend increase · (1) Adjusting for Q2/16 restructuring charge of $278 million after-tax ($378 million before-tax) 6 Year-over-Year Highlights Diluted EPS growth of 8% Revenue growth of 10% • Asset growth across all business lines . • Higher banking fees, wealth management and trading revenues, underwriting and advisory fee and income from associated corporations Gains on sale of real estate were more than offset by lower net gains on investment securities Expense growth up 11% ⚫ Adjusting for the impact of acquisitions, foreign currency translation and Q4/15 net pension credit/reorganization cost, non-interest expenses were up 5% . Higher performance and stock based compensation and continued investments in the business, including technology, partly offset by savings from structural cost reductions Operating leverage of 1.0% in 2016 Scotiabank®#7Capital Strong Position - - Basel III Common Equity Tier 1 (CET1) (%) 11.0 10.3 10.1 10.1 10.5 IIII Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 CET1 Risk-Weighted Assets ($B) 1 Q1/16 Q2/16 Q3/16 Q4/16 358 Q4/15 374 364 357 358 • • • • Highlights Strong internal capital generation coupled with modest net RWA growth Other capital benefits (eg. pension and stock option exercises) Annual dividend payment of $2.88, up 6% Y/Y CET1 risk-weighted assets increased $6 billion Q/Q • Primarily driven by impact of a weaker Canadian dollar on foreign currency denominated risk weighted assets Higher credit risk and operational risk weighted assets offset by lower market risk Leverage ratio of 4.5% Capital position is strong 7 Scotiabank®#8Canadian Banking 1 Net Income ($MM) 977 930 954 875 837 100 Q4/15 Q1/16 877 Q2/16 Q3/16 Q4/16 Gain on sale of a non-core lease financing business • • Average Assets ($B) 304 307 307 310 313 10 9 8 Net Interest Margin (%) . 2.35 2.38 2.38 2.39 • 2.26 294 298 299 303 307 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Tangerine run-off mortgage portfolio (1) Attributable to equity holders of the Bank (2) Adjusting for the gain on sale of a non-core lease financing business 8 Year-over-Year Highlights Net income up 14% Loan growth of 3% Ex. Tangerine run-off portfolio, up 4% Double digit growth in credit cards Deposits up 6% • Retail savings deposits were up 11% and chequing was up 8% NIM up 13 bps Higher margin personal lending and margin expansion in deposits • Impact of acquisition • Run-off of low spread Tangerine mortgages PCL ratio up 4 bps Expenses up 4% or 2% excluding acquisition Higher spending on technology, projects and strategic investments, partially offset by benefits realized from cost reduction initiatives Operating leverage of +2.2% in 20162 Strong volume growth and margin expansion Scotiabank®#9International Banking Net Income ($MM) Year-over-Year Highlights Net Income up 9% 547 • 527 504 505 500 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Average Assets ($B) • • Strong loan, deposit and fee growth in Latin America Higher contribution from affiliates Good expense control Positive impact of acquisitions Partly offset by negative impact of foreign currency translation Loans up 5% and deposits up 14% Ex. Foreign currency translation, loans up 8% (LatAm up 9%) and deposits up 14% NIM up 7 bps, driven by widening margins in Latin America Net Interest Margin (%). PCL ratio improved by 2 bps 143 145 142 135 140 4.79 4.77 • 4.70 4.69 4.57 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 (1) Attributable to equity holders of the Bank 9 • Expenses up 3% • Acquisitions and inflationary increases Partly offset by the positive impact of foreign currency translation and benefits of expense management program Operating leverage of +2.9% in 2016 Strong volume growth and operating leverage Scotiabank®#10Global Banking and Markets Net Income ($MM) Year-over-Year Highlights Net Income up 42% 461 421 • 366 325 323 • • Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Average Loans² ($B) 3 Net Interest Margin (%) 84 81 1.78 81 81 1.72 75 1.60 1.58 1.60 • • Higher contributions from fixed income and corporate banking Positive impact of foreign currency translation Partly offset by higher PCLS Revenue up 27% and NIM up 18bps Loans up 8% PCL loss ratio up 5 bps, driven by provisions in Asia and the U.S. Expenses up 18% Higher performance-related and stock-based compensation, technology, compliance and regulatory costs Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 (2) (3) Attributable to equity holders of the Bank Average Business & Government Loans & Acceptances Corporate Banking only 10 Strong quarter, driven by higher client activity Scotiabank®#11(1) (2) (3) Other Segment' 117 2,3 Net Income ($MM) 19 12 1 Year-over-Year Highlights 3 Lower contributions from asset/liability management activities, higher expenses and higher taxes. Net gains on sale of real estate were more than offset by lower investment securities gains. (23) Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Includes Group Treasury, smaller operating segments, and other corporate items which are not allocated to a business line. The results primarily reflect the net impact of asset/liability management activities Attributable to equity holders of the Bank Excluding restructuring charge of $278 million after-tax ($378 million before-tax) in Q2/16 11 Scotiabank®#12NOVEMBER 201 Vous les plus r SERVICE COMPLET Risk Review Stephen Hart Chief Risk Officer Scotiabank®#13Risk Review • Overall credit fundamentals remain within expectations • • (1) Energy related PCLs have continued to decline Q/Q and are flat compared to the same quarter last year PCL ratio - Improved to 45 basis points, down from 47 basis points last quarter and prior year Gross impaired loans of $5.4 billion were up 1% Q/Q¹ ● • Net impaired loan ratio improved 2 bps Q/Q Net formations of $645 million was down from $788 million in Q3/16, driven by improvement in Global Banking and Markets Market risk remains well-controlled Average 1-day all-bank VaR of $10.4 million, down from $11.0 million in Q3/16 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 13 Scotiabank®#14PCL Ratios (Total PCL as a % of Average Net Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Loans & Acceptances) Canadian Banking Retail 0.26 0.28 0.30 0.30 0.31 Commercial 0.15 0.14 0.14 0.20 0.14 Total 0.24 0.26 0.28 0.29 0.28 Total - Excluding net acquisition benefit 0.24 0.28 0.30 0.31 0.29 International Banking Retail (1) 2.18 2.09 2.09 2.13 2.01 Commercial (1) 0.26 0.28 0.97 0.47 0.33 Total 1.17 1.14 1.50 1.26 1.15 Total - Excluding net acquisition benefit 1.24 1.23 1.63 1.39 1.32 Global Banking and Markets 0.14 0.27 0.57 0.19 0.19 All Bank 0.42 (2) 0.45 0.59 (3) 0.47 0.45 (2) (3 Colombia small business portfolio reclassed to Retail from Commercial - prior periods have been restated Excludes collective allowance increase; including collective allowance increase, All Bank PCL ratio was 0.47 Excludes collective allowance increase; including collective allowance increase, All Bank PCL ratio was 0.64 14 Scotiabank®#15WELT NOVEMBER 201 2017 Outlook Vous Hes plus PLET SERVICE COMPLET Brian Porter President & Chief Executive Officer Scotiabank®#162017 Outlook Medium-term financial objectives Metric Medium-term Objectives 20161 EPS Growth 5-10% 6% ROE 14%+ 14.3% Operating Leverage Positive +1.0% Maintain Capital 11.0% strong ratios (1) Adjusting for Q2/16 restructuring charge of $278 million after-tax ($378 million before-tax) 16 Scotiabank®#17NOVEMBER 201 Vous les plus SERVICE COMPLET Appendix Scotiabank®#18Diluted EPS Reconciliation $ per share Q4/16 Reported Diluted EPS $1.57 Add: Amortization of Intangibles $0.01 Adjusted Diluted EPS $1.58 18 Scotiabank®#19Core Banking Margin 2.38% 2.38% 2.38% 2.40% 2.35% Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Year-over-year Higher margins in Canadian Banking, Global Banking and Markets, and International Banking were more than offset by lower contributions from asset/liability management activities, including the impact of higher volumes of lower yielding investment securities Scotiabank® 19#20Canadian Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) +8% Average Loans & Acceptances ($ billions) +3%1 Y/Y 39 42 42 Y/Y 70 74 75 10 6 .7 3,043 3,112 2,872 178 180 183 808 813 788 Q4/15 Q3/16 Q4/16 504 521 473 Business ■Tangerine mortgage run-off ■ Personal & credit cards Residential mortgages Average Deposits ($ billions) 1,611 1,731 1,778 +6% Y/Y Q4/15 Q3/16 Q4/16 62 66 68 154 158 160 ■Retail ■Commercial Wealth Q3/16 Q4/16 ■Personal Non-personal Scotiabank® Q4/15 (1) Excluding Tangerine run-off portfolio, loans & acceptances increased 4% year over year 20#21Canadian Banking - Net Interest Margin 2.35% 2.38% 2.38% 2.39% 2.26% 1.60% 1.66% 1.66% 1.66% 1.67% 0.89% 0.92% 0.94% 0.96% 0.94% Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Total Canadian Banking Margin Total Earning Assets Margin -Total Deposits Margin Year-over-year Net Interest Margin was up 13 bps, driven primarily from higher earning assets and improved deposit margin. The positive impact from acquisitions was 5 bps. Scotiabank® 21#22International Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) Average Loans & Acceptances¹ ($ billions) +5% Y/Y +6% Y/Y 22 23 24 26 26 27 2,424 2,498 2,357 51 53 53 828 883 847 1,510 1,596 1,615 Q4/15 Q3/16 Q4/15 Q3/16 Business Q4/16 ■Residential mortgages Personal & credit cards Average Deposits² ($ billions) +14% Y/Y 33 34 31 Q4/16 ■Net interest income ■Non-interest revenue (1) Colombia small business portfolio reclassed to Retail from Commercial commencing in Q1/16 - prior periods have been restated (2) Includes deposits from banks 22 54 56 47 Q4/15 ■Non-personal ■ Personal Q3/16 Q4/16 Scotiabank®#23International Banking - Regional Growth Revenues (TEB) ($ millions) +6% Y/Y Average Loans & Acceptances ($ billions) +5% Y/Y 31 32 32 2,498 2,424 2,357 114 - 90 94 68 70 72 712 744 739 Q4/15 Q3/16 Q4/16 ■Latin America ■Caribbean & Central America Constant FX 1,555 1,586 1,645 Retail Commercial² Total Loan Volumes¹ Y/Y Latin America³ 13% 6% 9% Q4/15 Q3/16 Asia Q4/16 C&CA 7% 0% 4% ■Caribbean & Central America Latin America Total 11% 4% 8% (1) Colombia small business portfolio reclassed to Retail from Commercial commencing in Q1/16 - prior periods have been restated Excludes bankers acceptances (2) (3) Excluding impact of acquisitions - Discount (Uruguay), Citi Costa Rica and Panama - and at constant FX, retail and total International volumes were up 3% and 1% in C&CA Scotiabank® 23#24Global Banking and Markets - Revenue & Volume Growth Revenues (TEB) ($ millions) Average Loans & Acceptances ($ billions) +27% Y/Y +8%¹ Y/Y 1,151 1,175 81 929 75 81 539 561 409 Q4/15 Q3/16 Q4/16 All-Bank Trading Revenue (TEB) ($ millions) 612 614 520 437 348 Q4/15 Q3/16 ■Business Banking Q4/16 ■Capital Markets 24 Q4/15 Q1/16 428 423 404 Q2/16 Q3/16 Q4/16 Scotiabank® (1) 8.7% on a constant currency basis#25Economic Outlook in Key Markets Real GDP (Annual % Change) 2000-15 Country 2016F 2017F 2018F Avg. Mexico 2.4 2.1 2.2 2.2 Peru 5.3 3.8 4.0 4.2 Chile 4.3 1.7 2.0 2.5 Colombia 4.3 2.4 2.8 3.5 2000-15 2016F 2017F 2018F Avg. Canada 2.1 1.2 1.9 2.0 U.S. 1.9 1.5 2.1 2.4 Source: Scotia Economics, as of November 22, 2016 25 Scotiabank®#26Energy Exposures1 Sector Amount (in $B) % PCLs (in $M) Cumulative Q1/15 - Q4/16 PCL ratio² Midstream $4.2 27% ($2) 0% Downstream $2.2 14% $2 0.1% E&P $7.7 49% $268 2.9% Services $1.5 10% $70 3.7% Total Drawn $15.6 100% $338 2.1% • • . (1) (2) Drawn corporate energy exposure were $15.6 billion, down 3% Q/Q Approximately 52% investment grade Undrawn commitments of $11.1 billion, down $0.8 billion Q/Q • Approximately 68% investment grade Focus on select non-investment grade E&P and Services accounts Approximately two-thirds of focus accounts have issued debt ranking below the Bank's senior position Exposures relate to loans and acceptances outstanding as of October 31, 2016 and to undrawn commitments attributed/related to those drawn loans and acceptances. Cumulative PCL ratio by sector is calculated as total PCLs over the period Q1/15 - Q4/16 divided by the average quarterly exposure over the period Q1/15 - Q4/16. 26 Scotiabank®#27Provisions for Credit Losses ($ millions) Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Canadian Retail 166 181 190 196 203 Canadian Commercial 14 13 14 21 14 Total Canadian Banking 180 194 204 217 217 Total - Excluding net acquisition benefit 180 212 221 232 221 International Retail 252 252 250 254 251 International Commercial 32 39 130 62 43 Total International Banking 284 291 380 316 294 Total - Excluding net acquisition benefit 301 315 415 343 337 Global Banking and Markets 27 54 118 38 39 All Bank 491 539 702 571 550 All Bank - Excluding net acquisition benefit 508 581 754 613 597 Increase in Collective Allowance 60 0 50 0 0 All Bank 551 539 752 571 550 PCL ratio (bps) - Total PCLs as a % of Average Net Loans & Acceptances Excluding Collective Allowance 42 45 59 47 45 Including Collective Allowance 47 45 64 47 45 27 Scotiabank®#28Net Formations of Impaired Loans ($ millions) 1,200 1,000 800 600 400 200 1 0 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Net Formations Q3/16 Q4/16 -Average (1) Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 28 Scotiabank®#29Gross Impaired Loans ($ billions) 6.0 5.5 5.0 4.5 4.0 3.5 3.0 1.15% 1.10% 1.05% 1.00% 0.95% 0.90% 0.85% Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 GILS (LHS) GILS as % of Loans & Bas (RHS) Q1/15 Q4/14 Q1/15 (1) Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 29 Scotiabank®#30Canadian Retail: Loans and Provisions (Spot Balances as at Q4/16, $ billions) $193.3 Total Portfolio = $266 billion¹; 93% secured² $33.9 $32.0 $6.8 3 % secured Mortgages 100% Lines of Credit Personal Loans Credit Cards 61% 99% 4% PCL Q4/16 Q3/16 Q4/16 Q3/16 Q4/16 Q3/16 Q4/16 Q3/16 $ millions 3 3 56 56 79 78 65 59 % of avg. net loans (bps) 1 70 70 94 95 380 346 Includes Tangerine balances of $9 billion (2) 81% secured by real estate; 12% secured by automotive (3) Includes JP Morgan Chase acquisition of $1.1 billion 30 50 Scotiabank®#31Canadian Residential Mortgage Portfolio (Spot Balances as at Q4/16, $ billions) $94.1 $10.0 Total Portfolio: $193 billion 57% Insured Uninsured 43% of uninsured Average LTV mortgages is 50%¹ $84.1 $32.3 $6.5 $30.4 $3.7 $15.5 $1.7 $25.8 $26.7 $11.9 $0.2 $9.0 $0.6 $13.8 $11.7 $8.4 Ontario B.C. & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan ล ■Freehold - $170B ■Condos -$23B LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. Some figures on bar chart may not add due to rounding. 31#32International Retail: Loans and Provisions $19.0 (Spot Balances as at Q4/16, $ billions¹) $1.8 Total Portfolio₁ = $53 billion; 67% secured $4.5 ■Credit Cards ($6.3B) ■Personal Loans ($16.0B) ■Mortgages ($29.4B) $10.9 $1.3 $9.3 - $0.4 $2.6 $3.3 $7.2 $12.7 $1.2 $5.3 $3.4 $1.6 $6.3 $6.3 $2.2 $2.6 $1.5 C&CA³ 3 Mexico Chile 3 Peru 3 Colombia PCL² Q4/16 Q3/16 Q4/16 Q3/16 Q4/16 Q3/16 Q4/16 Q3/16 Q4/16 Q3/16 $ millions 34 52 41 42 25 24 78 72 59 54 % of avg. net loans (bps) 75 115 186 197 97 101 472 445 460 456 (1) Total Portfolio includes other smaller portfolios (2) Excludes Uruguay PCLs of approximately $14 million (3) Includes the benefits from Cencosud and Citibank net acquisition benefits. Excluding the net acquisition benefits, C&CA's ratio would be 120 bps for Q4/16 and 134 bps for Q3/16, Chile's ratio would be 144 bps for Q4/16 and 151 bps for Q3/16 and Peru's ratio would be 502 bps for Q4/16 and 487 bps for Q3/16 Scotiabank® 32#33Q4 2016 Trading Results and One-Day Total VaR Millions 30 25 25 20 20 15 10 100 5 Q4 2016 Trading Results and One-Day Total VaR Лими • 1-Day Total Var • Actual P&L 0 -5 -10 -15 Average 1-Day Total VaR Q4/16: $10.4 MM Q3/16: $11.0 MM Q4/15: $13.1 MM 33 Scotiabank®#34Q4 2016 Trading Results 14 12 10 8 6 4 2 0 2 3 4 5 6 7 _8 · No trading loss days in Q4/16 34 10 11 13 15 17 20 10 6 28 ($ millions) Scotiabank®#35FX Movements versus Canadian Dollar Canadian (Appreciation) / Depreciation Currency Q4/16 Q3/16 Q4/15 Q/Q Y/Y Spot U.S. Dollar 0.746 0.766 0.765 2.7% 2.5% Mexican Peso 14.09 14.36 12.63 1.9% -11.6% Peruvian Sol 2.508 2.568 2.514 2.3% 0.3% Colombian Peso 2,240 2,351 2,217 4.7% -1.1% Chilean Peso 487.0 501.7 528.3 2.9% 7.8% Average U.S. Dollar 0.762 0.772 0.760 1.2% -0.3% Mexican Peso 14.39 14.24 12.65 -1.1% -13.8% Peruvian Sol 2.565 2.559 2.456 -0.2% -4.4% Colombian Peso 2,239 2,298 2,284 2.6% 2.0% Chilean Peso 505.8 519.7 522.4 2.7% 3.2% 35 Scotiabank®