#1INVESTOR PRESENTATION THIRD QUARTER 2018 August 28, 2018 Scotiabank#2CAUTION REGARDING FORWARD-LOOKING STATEMENTS Our public communications often include oral or written 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 2017 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 2017 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 2017 Annual Report. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2017 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® | 2#3SCOTIABANK OVERVIEW Brian Porter President & Chief Executive Officer Scotiabank® | 3#4Q3 2018 OVERVIEW Strong operating performance in Q3 O Net income of $1.9 billion (adjusted net income of $2.3 billion) 。 Diluted EPS of $1.55 (adjusted diluted EPS of $1.76) 。 ROE of 13.1% (adjusted ROE of 14.5%) 。 YTD operating leverage of 4.5% (adjusted¹ YTD operating leverage of 4.7%) Strong performance across Personal & Commercial banking businesses Quarterly dividend increase of 3 cents to $0.85; up 8% Y/Y Capital position remains strong 。 CET1 ratio of 11.4% 1 Figures 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 Scotiabank® | 4#5ACQUISITIONS SUMMARY Outlook and timing of accretion to Diluted EPS remain unchanged • Roughly $7 billion in announced acquisitions that enhance presence and increase scale in key markets of Canada and the Pacific Alliance countries • Retail P&C and Wealth Management • Scotiabank will become the third-largest active asset manager with approximately $235 billion in AUM including Jarislowsky Fraser and MD Financial Estimated total integration costs of ~$200-$250 million (after-tax, NCI) in fiscal 2019 and 2020 for the acquisitions listed below • ~75% relates to International Banking • Neutral impact to Adjusted EPS in fiscal 2019; ~$0.15 accretive in fiscal 2020 BBVA Chile Acquisition Citibank's Consumer and Small Business operation in Colombia Jarislowsky Fraser Business Impact Doubles Scotia's presence and creates the 3rd largest private bank in Chile Closed/Expected Closing Q3/18 Establishes Scotia as the market leader in credit cards in Colombia Q3/18 Aligns with strategic commitment to diversify wealth management business (Institutional + UHNW) Q3/18 Banco Cencosud Peru Creates the second largest card issuer in Peru Q1/191 MD Financial Banco Dominicano del Progreso Creates the largest Private Investment Counsel business in Canada Q4/181 Establishes Scotia as the fourth largest full-service bank in the Dominican Republic Q1/191 Subject to regulatory approvals and closing conditions Scotiabank® 5#6FINANCIAL REVIEW Raj Viswanathan Acting Chief Financial Officer Scotiabank® | 6#7Q3 2018 FINANCIAL PERFORMANCE Strong adjusted results with strong operating leverage and productivity gains $MM, except EPS Reported Q3/18 Y/Y Q/Q Net Income $1,939 (8%) (11%) Diluted EPS $1.55 (7%) (9%) Revenue $7,181 +4% +2% • Expenses $3,770 +3% +1% Productivity Ratio 52.5% (80bps) (30bps) Core Banking Margin 2.46% PCL Ratio 1, 2 69bps +24bps (1bp) +27bps PCL Ratio on Impaired Loans 1, 2 41bps (4bps) (5bps) Adjusted³ • Net Income $2,259 +7% +3% Diluted EPS $1.76 +5% +3% Expenses $3,721 +2% Productivity Ratio 51.8% PCL Ratio 1, 2 40bps (120bps) (70bps) (5bps) (2bps) DIVIDENDS PER COMMON SHARE +0.03 +0.03 • +0.03 0.76 0.79 0.79 0.82 0.82 • YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income down 8%, or up 7%³ adjusted Revenue up 4% 。 Net interest income up 7% from strong volume growth in both Canadian and International Banking 。 Non interest income up 1% 。 Lower real estate, securities gains, and sale of Hollis Wealth Expenses up 2% 3 o Higher investments in technology, regulatory initiatives, impact of acquisitions and taxes 。 Partly offset by the sale of Hollis Wealth, lower share-based payment expenses, advertising and business development costs 。 YTD productivity ratio improved 240bps³ Positive YTD operating leverage of 4.7%³ Improved PCL ratio 1.2 on impaired loans Q3/17 Q4/17 ■ Announced Dividend Increase Q1/18 Q2/18 Q3/18 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank® | 7#8CAPITAL POSITION REMAINS STRONG +47 bps -108 bps +26 bps 12.0% -29 bps +3 bps 11.4% Q2/18 Net Issuance of Capital Impact of Acquisitions Internal Capital Generation RWA Growth (ex. FX) Other Including FX Q3/18 Strong CET 1 ratio of 11.4% Decline mainly from completed acquisitions during the quarter Partly offset by the issuance of capital supporting the MD Financial acquisition, net of share repurchases Scotiabank® | 8#9CANADIAN BANKING Strong loan growth, margin expansion, positive operating leverage and improved credit FINANCIAL PERFORMANCE AND METRICS ($MM)¹ Y/Y Q3/18 Q/Q Reported Revenue $3,373 +3% +4% Expenses $1,661 +2% +1% PCLS $181 (19%) (12%) Net Income $1,130 Productivity Ratio 49.2% +8% +11% (80bps) (160bps) · Net Interest Margin 2.46% +5bps +3bps PCL Ratio 2, 3 0.21% (7bps) (4bps) PCL Ratio on Impaired Loans², 3 0.21% (7bps) (4bps) Adjusted4 Expenses $1,646 Net Income Productivity Ratio $1,141 48.8% +1% +1% +9% +12% (100bps) (180bps) 1. ADJUSTED NET INCOME 14 ($MM) AND NIM (%) 2.41% 2.41% 2.41% 2.43% 2.46% • 1,050 1,072 1,107 1,022 1,141 • YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income up 8% or up 9%4 adjusted 。 Lower real estate gains impacted growth by 3% 。 Asset and deposit growth, margin expansion o Lower provision for credit losses Revenue up 3% 。 Net interest income up 8% 。 Lower real estate gains impacted growth by 2% Loan growth of 6% o Residential mortgages up 5%; credit cards up 6% o Business loans up 14% NIM up 5 bps 。 Rising rate environment and improved business mix Expenses up 1%4 。 Higher investments in technology and regulatory initiatives, Jarislowsky acquisition 。 YTD productivity ratio improved 120 bps4 Positive YTD operating leverage of 2.4%4 PCL ratio², 3 on impaired loans improved by 7 bps due to lower PCLs in retail Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 1 Attributable to equity holders of the Bank 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 4 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 9#10INTERNATIONAL BANKING Another record quarter driven by strong performance in the Pacific Alliance FINANCIAL PERFORMANCE AND METRICS ($MM)1,2 Reported Y/Y YEAR-OVER-YEAR HIGHLIGHTS² Reported Net Income down 16%, or up 15% adjusted 。 Strong asset and deposit growth in Pacific Alliance o Positive operating leverage and lower taxes Revenues up 9% o Pacific Alliance up 15% Q3/18 Q/Q • Revenue $2,853 +9% +4% Expenses $1,510 +7% +6% PCLS $771 +142% +128% Net Income $519 (16%) (24%) Productivity Ratio 52.9% (160bps) +40bps . Net Interest Margin 4.70% (7bps) (4bps) PCL Ratio 2.58% +142bps +136bps PCL Ratio on Impaired Loans³, 4 Adjusted6 1.33% +17bps (5bps) Expenses $1,476 +6% +4% • NIM down 7 bps PCLs $367 +15% +8% Net Income $715 +15% +3% Productivity Ratio 51.7% (240bps) (40bps) PCL Ratio³, 4 1.23% +7bps +1bp . Loans up 10% o Pacific Alliance loans up 14% ADJUSTED NET INCOME 16 ($MM) AND NIM5 (%) 4.77% 4.67% 4.66% 4.74% 4.70% 623 613 675 683 715 • Q3/17 Q4/17 1 Attributable to equity holders of the Bank Q1/18 Q2/18 • Q3/18 。 Business mix changes and lower loan rates in Colombia Expenses up 6% 6 。 Business volume growth, inflation and higher technology costs 。 YTD productivity ratio improved 170 bps 6 Positive YTD operating leverage of 3.4% PCL ratio 3, 4, 6 on impaired loans up 17 bps 。 Mainly impacted by credit mark benefits in the prior year 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 3 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 4 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 5 Net Interest Margin is on a reported basis 6 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 Scotiabank® 10#11GLOBAL BANKING AND MARKETS Good net interest income growth and improvement in credit quality FINANCIAL PERFORMANCE AND METRICS ($MM) Q3/18 Y/Y Q/Q • Revenue $1,110 (1%) (4%) Expenses $543 +2% (4%) PCLS ($10) N/A N/A Net Income $441 (1%) Productivity Ratio 48.9% +150bps . Net Interest Margin 1.82% PCL Ratio², 3 PCL Ratio on Impaired Loans 2, 3 (0.05%) (0.06%) (17bps) +6bps (16bps) +2bps (8bps) NET INCOME AND TRADING INCOME ($MM) 441 391 454 447 372 HH 216 411 382 441 331 . YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income in line with prior year o Higher NII, corporate banking and investment banking results and lower PCLS 。 Lower income from global equities and lower fixed income, as well as higher expenses Loans up 1% Expenses up 2% 。 Higher regulatory costs and technology investments 。 Productivity ratio was 48.9% compared to 47.4% last year PCL ratio², 3 improved by 16 bps o Reversal of provisions on impaired loans in the US o Higher provision on one account last year Q3/17 Q4/17 1 Attributable to equity holders of the Bank Q1/18 Q2/18 Q3/18 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 4 Trading income on an all-bank basis and TEB Scotiabank® | 11#12OTHER SEGMENT NET INCOME² ($MM) -55 -48 56 1 -32 -107 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 1 Represents smaller operating segments including Group Treasury and corporate adjustments 2 Attributable to equity holders of the Bank • . YEAR-OVER-YEAR HIGHLIGHTS Lower gains on sale of investment securities and asset-liability management activities Partly offset by lower non-interest expenses Scotiabank® | 12#13RISK REVIEW Daniel Moore Chief Risk Officer Scotiabank® | 13#14RISK REVIEW Credit fundamentals remain strong IAS 39 IFRS 9 PCLS ($MM) AND PCL RATIO ON IMPAIRED LOANS 1, 2, 3 45 bps 43 bps 42 bps 46 bps 41 bps 595 573 564 559 536 Q3/17 Q4/17 Q1/18 Q2/18 PCLs on impaired loans PCL ratio on impaired loans GILS4, 5, 6 ($B) Q3/18 YEAR-OVER-YEAR HIGHLIGHTS PCLs1,2 on impaired loans of $559 million were down 5% Q/Q and 4% Y/Y 。 Lower retail provisions in Canadian Banking o Recoveries in Global Banking and Markets 。 Partly offsetting were higher retail credit provisions in International Banking in line with volume growth PCL ratio 1,2 on impaired loans was down 5 bps Q/Q and down 4 bps Y/Y Excluding the Day 1 impact on acquired performing loans, the PCL ratio 1, 2 was 40 bps, down 2 bps Q/Q 5.3 5.1 5.0 4.9 4.9 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 1 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Excludes acquisition-related costs including Day 1 impact on acquired performing loans 4 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 5 As of Q1/18, R-G Premier is included in International Commercial and International Retail 6 Excludes impact of acquisitions in Q3/18; including acquisitions, GILs were $5.5B in Q3/18 Scotiabank® | 14#15Q3 2018 CANADIAN RESIDENTIAL MORTGAGES Credit fundamentals remain strong NEW ORIGINATIONS UNINSURED LTV DISTRIBUTION Q3/17 Q2/18 Q3/18 Canada Total Originations ($B) 15.3 8.9 11.9 GVA 60% Uninsured LTV 64% 63% 63% GTA 62% GTA BC & Territories Total Originations ($B) Uninsured LTV 4.9 2.8 3.6 62% 62% 62% 61% GVA Atlantic Prairies 68% ON QC Provinces 63% 65% 69% Total Originations ($B) Uninsured LTV 2.1 1.2 1.4 62% 59% 60% FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO Average FICO Score Canada 787 GTA 789 GVA 790 16% 12% 12% 4% 56% < 635 636 - 706 707-747 748-788 > 788 FICO is a registered trademark of Fair Isaac Corporation • <0.70% of uninsured portfolio has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $117 billion as at Q3/2018 Scotiabank® | 15#16PCL RATIOS Stable all-bank PCL ratios on impaired loans IAS 39 IFRS 9 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 (As a % of PCLs on PCLs on PCLs on Total Total Average Net Loans & Acceptance) PCLs on Impaired Loans Total Total Impaired Impaired Impaired PCLS PCLS PCLS PCLS Loans Loans Loans (rep) (adj) Canadian Banking Retail 0.31 0.30 0.29 0.28 0.28 0.28 0.25 0.24 0.24 Commercial 0.09 0.07 0.11 0.08 0.09 0.09 (0.04) 0.06 0.06 Total 0.28 0.27 0.27 0.25 0.25 0.25 0.21 0.21 0.21 Total - Excluding Credit Mark 0.29 0.28 N/A N/A N/A N/A N/A N/A N/A Benefits International Banking Retail 2.08 2.00 2.28 2.39 2.26 2.16 2.36 4.69 2.25 Commercial 0.31 0.32 0.28 0.201 0.55 0.341 0.38 0.66 0.311 Total 1.16 1.14 1.25² 1.261,2 1.382 1.221,2 1.33 2.583 1.234 Total Excluding Credit Mark 1.27 1.34 N/A N/A N/A N/A N/A N/A N/A Benefits Global Banking and Markets 0.11 0.04 (0.01) (0.04) 0.02 (0.05) (0.06) (0.05) (0.05) All Bank 0.45 0.42 0.43 0.42 0.46 0.42 0.41 0.69 0.40 1 Excludes provision for credit losses on debt securities and deposit with banks 2 Not comparable to prior periods, which were net of acquisition benefits 3 On an reported basis; includes impact of Day 1 PCLs from acquisitions 4 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions Scotiabank 16#17NET WRITE-OFFS Lower net write-off ratio from stable economic performance • Canadian Banking benefited from a net recovery . International Banking experienced lower retail write-offs 1 Annualized (As a % of Average Net Loans & Acceptances) 1, 2 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Canadian Banking 0.32% 0.29% 0.25% 0.26% 0.23% International Banking 1.43% 1.16% 1.38% 1.26% 1.14% Global Banking and Markets 0.18% 0.04% 0.05% 0.08% 2 Net write-offs are net of recoveries All Bank 0.54% 0.44% 0.46% 0.45% 0.39% Scotiabank® | 17#18APPENDIX Scotiabank® | 18#19DILUTED EPS RECONCILIATION Reported Impact of Acquisition-related costs on diluted earnings per share¹ Adjusted Q3/18 Diluted EPS ($ per share) $1.55 $0.21 $1.76 1 Acquisition-related costs includes the Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank® | 19#20SUMMARY OF ADJUSTING ITEMS1 Adjusting Items (Pre-Tax) ($MM) Acquisition-Related Costs Day 1 PCL on acquired performing financial instruments - International Banking Integration Costs Canadian Banking International Banking Amortization of Intangibles² Canadian Banking International Banking Total (Pre-Tax) Adjusting Items (After-Tax and NCI) ($MM) Acquisition-Related Costs Day 1 PCL on acquired performing financial instruments - International Banking Integration Costs Canadian Banking International Banking Amortization of Intangibles³ Canadian Banking International Banking Total (After-Tax and NCI) 1 May not add due to rounding 2 Excludes amortization of intangibles related to software (pre-tax) 3 Excludes amortization of intangibles related to software (after-tax) Q3/17 Q2/18 Q3/18 404 26 3 23 19 18 23 7 7 12 12 11 11 19 18 453 Q3/17 Q2/18 Q3/18 After-Tax and Tax NCI NCI 119 109 176 8 4 15 1 2 7 4 14 58 450 13 6 3 16 9 9 7 14 13 133 113 207 16 13 Scotiabank® | 20#21STABLE CORE BANKING MARGIN 2.46% 2.46% 2.47% 2.44% 2.46% Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 YEAR-OVER-YEAR HIGHLIGHTS Higher margins in Canadian Banking (impact of interest rate increases by the Bank of Canada), as well as in Global Banking and Markets Lower margins in International Banking and higher volumes of low margin Treasury assets Scotiabank® | 21#22CANADIAN BANKING - REVENUE GROWTH AND NIM Good retail and commercial lending revenue growth REVENUE (TEB) ($MM) +3% Y/Y NIM (%) 3,373 2.41% 2.41% 2.41% 2.43% 2.46% 3,266 3,231 -1% 821 831 766 Y/Y 1.68% 1.66% 1.63% 1.64% 1.65% 606 +11% 546 558 Y/Y +3% 1,889 1,907 1,946 Y/Y Q3/17 Q2/18 Retail Commercial Wealth 1.05% 1.08% 1.10% 0.96% 0.99% Q3/18 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Total Canadian Banking Margin Total Earning Asset Margin Total Deposits Margin Scotiabank® | 22#23CANADIAN BANKING - VOLUME GROWTH Strong business and residential mortgage growth, and continue to grow retail deposits AVERAGE LOANS & ACCEPTANCES ($B)1 AVERAGE DEPOSITS ($B)1 +6% Y/Y +3% Y/Y 333 337 241 318 53 50 46 +14% Y/Y 235 237 7 7 7 75 73 73 55 +3% 70 71 73 70 Y/Y +3% Y/Y +3% 204 205 195 +5% Y/Y Y/Y 162 164 166 Q3/17 Residential mortgages 1 May not add due to rounding Q2/18 Personal Loans Credit Cards Q3/18 Business Q3/17 Personal Q2/18 Q3/18 Non-personal Scotiabank® | 23#24INTERNATIONAL BANKING - REVENUE GROWTH Latin America, driven by the Pacific Alliance, continues to deliver strong revenue growth BY TYPE (TEB) ($MM) BY REGION (TEB) ($MM)1 +9% Y/Y2 2,853 2,742 2,645 +9% Y/Y2 2,853 2,742 2,645 134 +12% 140 Y/Y 115 779 1,026 729 984 +12% 766 910 +3% Y/Y Y/Y 1,735 1,758 1,827 +8% Y/Y 1,873 1,940 1,764 +12% Y/Y Q3/17 Net interest income Q2/18 Q3/18 Q3/17 Q2/18 Non-interest revenue Latin America Caribbean & Central America 1 Y/Y growth rates are on a constant dollar basis 2 Revenue growth of 8% Y/Y on a reported basis Q3/18 Asia Scotiabank® | 24#25INTERNATIONAL BANKING - VOLUME GROWTH Solid loan and deposits growth AVERAGE LOANS & ACCEPTANCES ($B)1 AVERAGE DEPOSITS ($B)1, 2 1,2 +10% Y/Y3 +7% Y/Y4 122 119 101 +17% 102 8 98 113 8 Y/Y 7 19 19 +9% 18 36 36 +4% Y/Y 36 Y/Y 32 30 31 +8% 30 Y/Y 61 63 58 33 Q3/17 Business Q2/18 Q3/18 +10% Y/Y Residential mortgages Personal loans Credit cards 1 Y/Y growth rates are on a constant dollar basis 2 Includes deposits from banks 3 Average loans & acceptances growth of 8% Y/Y on a reported basis 4 Average deposits growth of 4% Y/Y on a reported basis 62 62 65 65 66 Q3/17 Q2/18 Non- Personal Personal Q3/18 +8% Y/Y Scotiabank® | 25#26INTERNATIONAL BANKING - REGIONAL LOAN GROWTH Strong loan growth in Latin America AVERAGE LOANS & ACCEPTANCES ($B)¹ CONSTANT DOLLAR LOAN VOLUMES, Y/Y +10% Y/Y2 122 119 113 31 31 -2% Y/Y 32 Retail Commercial³ Total Latin America 14% 15% 15% C&CA 1% (6%) (2%) +15% 91 Y/Y 88 Total 9% 10% 10% 81 Q3/17 Latin America Q2/18 Q3/18 Caribbean & Central America 1 Y/Y growth rates are on a constant dollar basis 2 Average loans & acceptances growth of 8% Y/Y on a reported basis 3 Excludes bankers acceptances Scotiabank® | 26#27GLOBAL BANKING AND MARKETS - REVENUE AND VOLUME GROWTH REVENUE (TEB) ($MM) -1% Y/Y 1,155 1,117 1,110 542 446 526 664 591 613 Q3/17 Business banking Q2/18 AVERAGE BUSINESS AND GOVERNMENT LOANS & ACCEPTANCES ($B) +1% Y/Y 32 82 80 83 83 Q3/18 Q3/17 Q2/18 Q3/18 Capital markets Scotiabank® | 27#28ECONOMIC OUTLOOK IN KEY MARKETS Macro economic growth improving for Pacific Alliance countries • Stronger economic growth outlook in 2019 for the Pacific Alliance countries than U.S. and Canada Real GDP (Annual % Change) Country 2017 2018F 2019F Canada 3.0 2.2 2.0 U.S. 2.2 2.8 2.3 Mexico 2.0 2.1 2.5 Peru 2.5 3.5 4.0 Chile 1.5 3.7 3.9 Colombia 1.8 2.5 3.5 Source: Scotia Economics, as of August 2, 2018 Scotiabank® | 28#29PROVISION FOR CREDIT LOSSES IAS 39 IFRS 9 ($MM) Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 PCLs on PCLs on PCLs on Total Total PCLs on Impaired Loans Total Total Impaired ! Loans Impaired Impaired PCLS PCLS PCLs PCLS Loans Loans (rep.) (adj.) Canadian Banking Canadian Retail 214 210 206 200 193 193 179 174 174 Canadian Commercial 10 8 14 10 11 12 (5) 7 7 Total Canadian Banking 224 218 220 210 204 205 174 181 181 I - Total Excluding Credit Mark Benefits 232 224 N/A N/A N/A N/A N/A N/A N/A International Banking International Retail 280 265 306 320 308 294 337 669 320 International Commercial 45 45 40 241 80 461 60 1021 471 Total 325 310 I 3462 3441,2 3882 3401,2 3972 7711,2,3 3671,2,4 Total Excluding Credit Mark Benefits 355 365 N/A N/A N/A N/A N/A N/A N/A Global Banking and Markets 24 8 (2) (9) 3 (11) (12) (10) (10) Other (1)1 - - 11 11 All Bank 573 536 564 544 595 534 559 943 539 1 Includes provision for credit losses on debt securities and deposit with banks of $1 million (Q1/18: -$5 million, Q2/18: -$4 million) in International Banking and $Nil (Q1/18: -$1 million, Q2/18: $Nil)) in Other 2 Not comparable to periods prior to Q1/18, which were net of acquisition benefits 3 Figures on an reported basis; includes impact of Day 1 PCLS from acquisitions 4 Figures on an adjusted basis; adjusted for Day 1 PCLs from acquisitions Scotiabank® | 29#30NET FORMATIONS OF IMPAIRED LOANS 900 800 700 600 ($MM) 500 $40 400 300 200 100 IAS 39 I 1, 2 IFRS 9 0 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Net formations Average 1 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 Scotiabank® 30 50#31($B) 6 5 4 3 2 1 GROSS IMPAIRED LOANS IAS 39 1, 2 IFRS 9 1.15% 1.10% 1.05% 1.00% 0.95% 0.90% 0.85% 0 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 GILS (LHS) GILS as % of loans & BAS (RHS) 1 Prior to Q1/18, excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. Effective Q1/18, includes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 Scotiabank® | 31#32CANADIAN RETAIL: LOANS AND PROVISION (Spot Balances as at Q3/18, $B) $212.1 Total Portfolio: $291 billion1; 93% secured² $38.4 $33.6 $7.3 Mortgages Personal Loans4 Lines of Credit Credit Cards % secured PCL3 100% 99% 62% 3% Q3/18 Q2/18 Q3/18 Q2/18 Q3/18 Q2/18 Q3/18 Q2/18 PCLs on Impaired Loans $ millions 3 4 64 % of avg. net loans (bps) 1 1 63 201 62 64 799909 56 59 56 68 78 330 431 PCLS $ millions 1 9 2 560 67 66 66 69 665 60 75 པཉྩ 59 46 46 59 77 269 370 % of avg. net loans (bps) 1 Includes Tangerine balances of $7 billion 2 81% secured by real estate; 12% secured by automotive 3 2018 amounts are based on IFRS 9 4 99% are automotive loans Scotiabank 32#33INTERNATIONAL RETAIL: LOANS AND PROVISION (Spot Balances as at Q3/18, $B1) Total Portfolio1: $73 billion; 67% secured $24.5 $2.7 $18.3 $5.7 $1.8 Mortgages ($41.4B) $4.5 $12.1 $0.7 Personal loans ($20.8B) $3.4 $8.3 $8.2 Credit cards ($9.2B) $16.1 $1.6 $2.4 $12.0 $3.8 $3.4 $8.0 $2.9 $2.4 PCL2 PCLs on Impaired Loans C&CA Mexico Chile Peru Colombia Q3/18 Q2/18 Q3/18 Q2/18 Q3/18 Q2/18 Q3/18 Q2/18 Q3/18 Q2/18 $ millions 68 43 42 50 63 48 85 84 67 70 % of avg. net loans (bps) 151 101 154 188 182 145 443 470 452 491 PCLs $ millions % of avg. net loans (bps) 126 260 56 56 27 46 46 49 573 40 57 81 82 633 68 64 169 184 1653 170 421 462 4253 478 1 Total Portfolio includes other smaller portfolios 2 2018 amounts are based on IFRS 9 3 Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans Scotiabank® 33#34CANADIAN RESIDENTIAL MORTGAGE PORTFOLIO 45% Insured $106.0 $11.9 Total Portfolio: $212 billion $94.1 $38.3 $8.9 $30.9 $3.7 (Spot Balances as at Q3/18, $B) $15.9 $29.4 $1.7 $27.2 $11.5 $14.2 $11.3 $0.2 $9.5 $8.8 $0.7 55% Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan Uninsured Freehold $185B Condos $27B Average LTV of uninsured mortgages is 53%¹ New originations² average LTV of 63% in Q3/18 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions. Scotiabank 34#35RETAIL 90+ DAYS PAST DUE LOANS Favourable credit quality across all markets and products Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Mortgages 0.22% 0.21% 0.20% 0.19% 0.20% Personal Loans 0.61% 0.60% 0.63% 0.57% 0.56% Credit Cards 1.05% 1.13% 1.18% 1.08% 0.89% Secured and Unsecured Lines of Credit 0.30% 0.28% 0.30% 0.30% 0.28% CANADA 0.30% 0.29% 0.29% 0.27% 0.27% Q3/17 Q4/17 Q1/18 Q2/18 Q3/181 Mortgages 3.69% 3.83% 3.82% 3.70% 3.28% Personal Loans 3.65% 3.52% 3.68% 3.64% 3.45% Credit Cards 3.24% 3.09% 3.02% 2.87% 3.03% TOTAL INTERNATIONAL 3.61% 3.62% 3.66% 3.56% 3.31% 1 Includes acquisitions in Chile and Colombia. Excluding these acquisitions, Total International ratio would be 3.72%. Scotiabank® 35#36Q3 2018 TRADING RESULTS O trading loss day(s) in Q3/18 16 14 12 10 (# of days in quarter) 00 9 4 2 0 1 3 st 4 5 6 Q3/18 Daily Trading Revenues ($MM) 7 8 9 10 10 Scotiabank® 36#37Q3 2018 TRADING RESULTS AND ONE-DAY TOTAL VAR Millions 15 10 10 Q3 2018 Trading Results and One-Day Total VaR Average 1-Day Total VaR Q3/18: $13.2 MM 5 0 whats Q2/18: $14.7 MM Q3/17: $11.0 MM N -5 -10 -15 -20 1-day total VaR Actual Daily Revenue Scotiabank® 37#38FX MOVEMENTS VERSUS CANADIAN DOLLAR Canadian (Appreciation) / Depreciation Currency Q3/18 Q2/18 Q3/17 Q/Q Y/Y SPOT U.S. Dollar 0.769 0.779 0.802 1.3% 4.2% Mexican Peso 14.33 14.56 14.28 1.6% (0.3%) Peruvian Sol 2.514 2.534 2.599 0.8% 3.3% Colombian Peso 2,222 2,188 2,395 (1.6%) 7.2% Chilean Peso 490.0 477.7 521.1 (2.6%) 6.0% AVERAGE U.S. Dollar 0.767 0.784 0.758 2.2% (1.1%) Mexican Peso 15.04 14.54 13.83 (3.4%) (8.7%) Peruvian Sol 2.511 2.543 2.474 1.3% (1.5%) Colombian Peso 2,209 2,216 2,256 0.3% 2.1% Chilean Peso 489.6 471.2 504.1 (3.9%) 2.9% Scotiabank® 38#39INVESTOR RELATIONS CONTACT INFORMATION Philip Smith, Senior Vice President 416-863-2866 [email protected] Steven Hung, Vice President 416-933-8774 [email protected] Lemar Persaud, Director 416-866-6124 [email protected] Judy Lai, Director 416-775-0485 [email protected] Scotiabank® 39