#1Scotiabank First Quarter 2023 Earnings Release Scotiabank reports first quarter results All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended January 31, 2023 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted. Our complete First Quarter 2023 Report to Shareholders, including our unaudited interim financial statements for the period ended January 31, 2023, can also be found on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. Supplementary Financial Information is also available, together with the First Quarter 2023 Report to Shareholders on the Investor Relations page of www.scotiabank.com First Quarter 2023 Highlights on a Reported Basis (versus Q1, 2022) First Quarter 2023 Highlights on an Adjusted Basis (1) (versus Q1, 2022) • • Net income of $1,772 million, compared to $2,740 million Diluted earnings per share of $1.36, compared to $2.14 Return on equity (2) of 9.9%, compared to 15.8% • • Net income of $2,366 million, compared to $2,758 million Diluted earnings per share of $1.85, compared to $2.15 Return on equity of 13.4%, compared to 15.9% TORONTO, February 28, 2023 - Scotiabank reported first quarter net income of $1,772 million compared to $2,740 million in the same period last year. Diluted earnings per share (EPS) were $1.36, compared to $2.14 in the same period a year ago. Adjusted net income (1) for the first quarter was $2,366 million and EPS was $1.85, down from $2.15 last year. Adjusted return on equity was 13.4% compared to 15.9% a year ago. "I am honoured and privileged to have this opportunity to work with our 90,000 Scotiabankers across our footprint as we look to deliver for every future together for our customers, employees, shareholders and communities," said Scott Thomson, President and CEO of Scotiabank. "The Bank's performance in the first quarter of 2023 reflects both the merits of a diversified platform, and also the continued relative pressure on our profitability given our funding profile. As we look ahead, our efforts on culture, capital allocation discipline and operational excellence will drive a renewed strategic agenda focused on delivering value for our stakeholders." Canadian Banking delivered adjusted earnings (1) of $1,088 million this quarter benefitting from margin expansion, and strong asset and deposit growth, specifically in business lending and personal deposits. Results were negatively impacted by higher provision for credit losses and higher expenses. International Banking generated adjusted earnings (1) of $661 million, up 20% driven by higher net interest income as loans grew 19% and strong non-interest revenues. This combined with continued expense management and lower income taxes more than offset higher provision for credit losses. Global Wealth Management adjusted earnings (1) were $392 million, down 6%. Challenging market conditions drove declines in assets under management, impacting fee income, partly offset by strong growth in the advisory business. Operating leverage remained positive as prudent expense management offset the lower revenue trends. Global Banking and Markets delivered another strong quarter, with earnings of $519 million. Net interest income grew a strong 22% benefitting from a 33% growth in loans. Strong performance from the Capital Markets business was offset by lower advisory revenues. The Bank remained well capitalized with a Common Equity Tier 1 capital ratio (3) unchanged at 11.5%, despite the impact of the Canada Recovery Dividend. With a continued focus on prudent capital management the Bank's CET1 ratio is expected to continue to strengthen over the year. (1) Refer to Non-GAAP Measures section on page 6. (2) Refer to page 50 of the Management's Discussion & Analysis in the Bank's First Quarter 2023 Report to Shareholders, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto. (3) This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018). Scotiabank First Quarter Press Release 2023 1#2Financial Highlights Reported Results (Unaudited)($ millions) Net interest income Non-interest income For the three months ended January 31 October 31 January 31 2023 2022 2022 $ 4,569 $ 4,622 $ 4,344 3,411 3,004 3,705 Total revenue 7,980 7,626 8,049 Provision for credit losses 638 529 222 Non-interest expenses 4,464 4,529 4,223 Income tax expense 1,106 475 864 Net income tA $ 1,772 $ 2,093 $ 2,740 Net income attributable to non-controlling interests in subsidiaries 40 38 88 Net income attributable to equity holders of the Bank $ 1,732 $ 2,055 $ 2,652 Preferred shareholders and other equity instrument holders 101 106 44 Common shareholders Earnings per common share (in dollars) Basic Diluted $ 1,631 $ 1,949 $ 2,608 $ 1.37 $ 1.64 $ 2.15 $ 1.36 $ 1.63 $ 2.14 2 Scotiabank First Quarter Press Release 2023#3Business Segment Review Canadian Banking Q1 2023 vs Q1 2022 Net income attributable to equity holders was $1,087 million, compared to $1,201 million. Adjusted net income attributable to equity holders was $1,088 million, down $117 million or 10%. The decline was due primarily to higher provision for credit losses and non-interest expenses, partly offset by higher revenue. Q1 2023 vs Q4 2022 Net income attributable to equity holders declined $83 million or 7%. Adjusted net income attributable to equity holders declined $86 million or 7%. The decline was due primarily to higher provision for credit losses and non-interest expenses, partly offset by higher revenue. International Banking Q1 2023 vs Q1 2022 Net income attributable to equity holders was $654 million, an increase from $545 million. Adjusted net income attributable to equity holders was $661 million, an increase from $552 million. The increase was driven by higher net interest income and non-interest income and lower provision for income taxes, partly offset by higher non-interest expenses and provision for credit losses. Q1 2023 vs Q4 2022 Net income attributable to equity holders increased by $11 million or 2% from $643 million. Adjusted net income attributable to equity holders increased by $11 million or 2%, from $650 million. This increase was driven by higher non-interest income and net interest income, partly offset by higher non-interest expenses, provision for income taxes, and provision for credit losses. Financial Performance on a Constant Dollar Basis The discussion below on the results of operations is on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates, which is a non-GAAP financial measure (refer to Non-GAAP Measures on page 6). The Bank believes that constant dollar is useful for readers in assessing ongoing business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Q1 2023 vs Q1 2022 Net income attributable to equity holders was $654 million, an increase from $555 million. Adjusted net income attributable to equity holders was $661 million, an increase of $99 million or 18%. This increase was driven by higher net interest income and non-interest income, and lower provision for income taxes, partly offset by higher provision for credit losses and non-interest expenses. Q1 2023 vs Q4 2022 Net income attributable to equity holders decreased by $1 million to $654 million as higher non-interest income and net interest income were offset by higher provision for income taxes, non-interest expenses and provision for credit losses. Global Wealth Management Q1 2023 vs Q1 2022 Net income attributable to equity holders was $385 million, a decrease of $27 million or 7%, due primarily to lower fee income and the impact of elevated seasonal performance fees in the prior year, partly offset by higher net interest income and lower non-interest expenses. Q1 2023 vs Q4 2022 Net income attributable to equity holders increased $24 million or 6%. The increase was due primarily to higher fee revenue and net interest income, partly offset by volume-driven expense growth. Global Banking and Markets Q1 2023 vs Q1 2022 Net income attributable to equity holders was $519 million, a decrease of $42 million or 7%, due mainly to higher non-interest expenses and provision for credit losses, partly offset by higher net interest income, non-interest income, and the positive impact of foreign currency translation. Scotiabank First Quarter Press Release 2023 3#4Q1 2023 vs Q4 2022 Net income attributable to equity holders increased by $35 million or 7%. This was due to higher non-interest income, partly offset by higher non-interest expense, lower net interest income and higher provision for credit losses. Other Q1 2023 vs Q1 2022 Net income attributable to equity holders was a net loss of $913 million, which included $579 million of income tax expense related to the Canada Recovery Dividend. Adjusted net income attributable to equity holders was a net loss of $334 million compared to a net loss of $67 million in the prior year. The decrease of $267 million was due mainly to lower revenues of $663 million, partly offset by lower expenses and income taxes. Approximately three quarters of the lower revenue relates to treasury activities due mainly to higher term funding costs and lower income from hedges reflecting the Bank's interest rate position to benefit from declining rates, which were partly offset by higher income from liquid assets. Also contributing to the lower revenue was lower income from associated corporations, and lower investment gains. Q1 2023 vs Q4 2022 Net income attributable to equity holders decreased $310 million from the prior quarter. On an adjusted basis, net income attributable to equity holders decreased $234 million, due mainly to lower revenues of $417 million, partly offset by lower expenses and income taxes. Approximately half of the lower revenue relates to treasury activities due mainly to higher term funding costs, and lower income from hedges reflecting the Bank's interest rate position to benefit from declining rates, which were partly offset by higher income from liquid assets. Also contributing to the revenue decrease was lower investment gains, and lower income from associated corporations. Credit risk Provision for credit losses Q1 2023 vs Q1 2022 The provision for credit losses was $638 million, compared to $222 million, an increase of $416 million. The provision for credit losses ratio increased 20 basis points to 33 basis points. The provision for credit losses on performing loans was $76 million, compared to a net reversal of $183 million. The provision this period was driven by portfolio growth in International Banking and the less favorable macroeconomic forecast primarily related to corporate and commercial portfolios. Provision reversals last year were due mainly to favourable portfolio credit quality and macroeconomic outlook. The provision for credit losses on impaired loans was $562 million, compared to $405 million, an increase of $157 million or 39%, due primarily to higher retail provisions driven by higher formations in the International Banking and Canadian portfolios. The provision for credit losses ratio on impaired loans was 29 basis points, an increase of five basis points. Q1 2023 vs Q4 2022 The provision for credit losses was $638 million, compared to $529 million, an increase of $109 million or 21%. The provision for credit losses ratio increased five basis points to 33 basis points. The provision for credit losses on performing loans was $76 million, compared to $35 million last quarter, an increase of $41 million related primarily to portfolio growth in International Banking and higher corporate and commercial provisions due to the less favourable macroeconomic outlook. The provision for credit losses on impaired loans was $562 million, compared to $494 million, an increase of $68 million or 14% due primarily to higher retail provisions driven by higher formations in International Banking and Canadian portfolios. The provision for credit losses ratio on impaired loans was 29 basis points, an increase of three basis points. Allowance for credit losses The total allowance for credit losses as at January 31, 2023 was $5,668 million compared to $5,499 million last quarter. The allowance for credit losses ratio was 72 basis points, an increase of one basis point. The allowance for credit losses on loans was $5,513 million, up $165 million from the prior quarter. The increase was due primarily to the impact of foreign currency translation, as well as the impact of a less favourable macroeconomic outlook on the corporate and commercial portfolios, higher provisions in retail banking, mainly in Chile, and residential mortgage and auto loan portfolios in Canada. The allowance against performing loans was higher at $3,859 million compared to $3,713 million as at October 31, 2022. The allowance for performing loans ratio was 51 basis points, an increase of one basis point. The increase was due primarily to the impact of a less favourable macroeconomic outlook on the corporate and commercial portfolios and higher provisions in the residential mortgage and auto loan portfolios in Canada. 4 Scotiabank First Quarter Press Release 2023#5The allowance on impaired loans increased to $1,654 million from $1,635 million last quarter. The allowance for impaired loans ratio was 21 basis points, unchanged from the prior quarter. Impaired loans Gross impaired loans increased to $5,104 million as at January 31, 2023, from $4,786 million last quarter. The increase was due primarily to the impact of foreign currency translation and new formations in retail and Canadian commercial portfolios. The gross impaired loan ratio was 65 basis points as at January 31, 2023, an increase of three basis points from last quarter. Net impaired loans in Canadian Banking were $667 million as at January 31, 2023, an increase of $165 million from last quarter, due primarily to higher retail and commercial formations. International Banking's net impaired loans were $2,650 million as at January 31, 2023, an increase of $140 million from last quarter, due primarily to the impact of foreign currency translation and net formations in retail portfolio. In Global Banking and Markets, net impaired loans were $120 million as at January 31, 2023, a decrease of $8 million from last quarter, due primarily to lower formations. In Global Wealth Management, net impaired loans were $13 million as at January 31, 2023, an increase of $2 million from last quarter. Net impaired loans as a percentage of loans and acceptances were 0.44% as at January 31, 2023, an increase of three basis point from 0.41% last quarter. Capital Ratios The Bank's Common Equity Tier 1 (CET1) capital ratio (1) was 11.5% as at January 31, 2023, unchanged from the prior quarter, as internal capital generation and gains from the revaluation of FVOCI securities were offset by organic growth in risk-weighted assets across all business lines and the impact of the Canada Recovery Dividend (CRD). The Bank's Tier 1 capital ratio (1) was 13.2% as at January 31, 2023, approximately in line with the prior quarter, due primarily to the above noted impacts to the CET1 ratio. The Bank's Total capital ratio (1) was 15.2% as at January 31, 2023, a decrease of approximately 10 basis points from the prior quarter, mainly due to the above noted impacts to the Tier 1 capital ratio. The Leverage ratio (2) was 4.2% as at January 31, 2023 and also remained in line with the prior quarter, due primarily to higher Tier 1 capital offset by strong growth in the Bank's on and off-balance sheet assets. The TLAC ratio (3) was 27.9% as at January 31, 2023, an increase of approximately 50 basis points from the prior quarter, mainly from higher TLAC instruments partly offset by the above noted impacts to the Total capital ratio. The TLAC Leverage ratio (3) was 8.9%, an increase of approximately 10 basis points, due primarily to higher TLAC instruments partly offset by the growth in leverage exposures. As at January 31, 2023, the CET1, Tier 1, Total capital, Leverage, TLAC and TLAC Leverage ratios were well above OSFI's minimum capital ratios. (1) This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018). (2) This measure has been disclosed in this document in accordance with OSFI Guideline - Leverage Requirements (November 2018). (3) This measure has been disclosed in this document in accordance with OSFI Guideline - Total Loss Absorbing Capacity (September 2018). Scotiabank First Quarter Press Release 2023 5#6Non-GAAP Measures The Bank uses a number of financial measures to assess its performance, as well as the performance of its operating segments. Some of these financial measures are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP and do not have standardized meanings and therefore might not be comparable to similar financial measures disclosed by other issuers. The Bank believes that non-GAAP measures are useful as they provide readers with a better understanding of how management assesses performance. These non-GAAP measures are used throughout this press release and defined below. Adjusted results and diluted earnings per share The following tables present a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expenses, income taxes and non-controlling interest. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance. Net income and diluted earnings per share have been adjusted for the following: Adjustments impacting current and prior periods: Amortization of acquisition-related intangible assets: These costs relate to the amortization of intangibles recognized upon the acquisition of businesses, excluding software, and are recorded in the Canadian Banking, International Banking and Global Wealth Management operating segments. Canada Recovery Dividend: This quarter the Bank recognized an additional income tax expense of $579 million reflecting the present value of the amount payable for the Canada Recovery Dividend (CRD). The CRD is a Canadian federal tax measure which requires the Bank to pay a one-time tax of 15% on taxable income in excess of $1 billion, based on the average taxable income for the 2020 and 2021 taxation years. The CRD is payable in equal amounts over five years, however, the present value of these payments must be recognized as a liability in the current quarter. The charge was recorded in the Other operating segment. Adjustments impacting Q4, 2022 only: Restructuring provision: The Bank recorded a restructuring charge of $66 million ($85 million pre-tax) related to the realignment of the Global Banking and Markets businesses in Asia Pacific and reductions in technology employees, driven by ongoing technology modernization and digital transformation. This charge was recorded in the Other operating segment. Support costs for the Scene+ loyalty program: The Bank recorded costs of $98 million ($133 million pre-tax) to support the expansion of the Scene+ loyalty program to include Empire Company Limited as a partner. These committed costs relate to operational support, transition marketing and technology initiatives and were recognized as an expense in the Other operating segment. Net loss on divestitures and wind-down of operations: In Q4 2022, the Bank sold its investments in associates in Venezuela and Thailand. Additionally, the Bank wound down its operations in India and Malaysia in relation to its realignment of the business in the Asia Pacific region. Collectively, the sale and wind-down of these entities resulted in a net loss of $340 million ($361 million pre-tax), of which $294 million ($315 million pre-tax) related to the reclassification of cumulative foreign currency translation losses net of hedges, from accumulated other comprehensive income to non-interest income in the Consolidated Statement of Income. This net loss was recorded in the Other operating segment. For further details on these transactions, please refer to Note 36 of the consolidated financial statements, in the 2022 Annual Report to Shareholders. 6 Scotiabank First Quarter Press Release 2023#7Reconciliation of reported and adjusted results and diluted earnings per share For the three months ended January 31 October 31 January 31 ($ millions) Reported Results Net interest income Non-interest income Total Revenue Provision for credit losses Non-interest expenses Income before taxes 2023 2022 2022 $ 4,569 3,411 $ 4,622 $ 4,344 3,004 3,705 7,980 7,626 8,049 638 529 222 4,464 4,529 4,223 2,878 2,568 Income tax expense 1,106 475 Net income 1,772 +A $ 2,093 +A Net income attributable to non-controlling interests in subsidiaries (NCI) 40 38 3,604 864 2,740 88 Net income attributable to equity holders 1,732 2,055 2,652 Net income attributable to preferred shareholders and other equity instrument holders Net income attributable to common shareholders 101 106 44 $ 1,631 Diluted earnings per share (in dollars) Adjustments Adjusting items impacting non-interest income and total revenue (Pre-tax) Net loss on divestitures and wind-down of operations Adjusting items impacting non-interest expenses (Pre-tax) Amortization of acquisition-related intangible assets Restructuring provision $ 1.36 Weighted average number of diluted common shares outstanding (millions) 1,199 +A A A +A $ $ 1,949 $ 1.63 $ SALA $ 2,608 2.14 1,199 1,230 Support costs for the Scene+ loyalty program Total non-interest expense adjusting items (Pre-tax) Total impact of adjusting items on net income before taxes Impact of adjusting items on income tax expense Canada recovery dividend 579 21 24 85 133 21 242 25 21 603 25 361 $ 25 Net loss on divestitures and wind-down of operations Amortization of acquisition-related intangible assets Restructuring provision Support costs for the Scene+ loyalty program Total impact of adjusting items on income tax expense (6) 191 (21) (6) (19) (35) 573 (81) Total impact of adjusting items on net income $ 594 522 A Impact of adjusting items on NCI relating to restructuring and other provisions Total impact of adjusting items on net income attributable to equity holders and common shareholders (1) , ཆེསྱེ, ༔བྱེ། · (7) 594 $ 521 +A 18 Adjusted Results Net interest income $ 4,569 $ 4,622 +A $ 4,344 Non-interest income Total revenue Provision for credit losses Non-interest expenses Income before taxes Income tax expense Net income Net income attributable to NCI 3,411 3,365 3,705 7,980 7,987 8,049 638 529 222 4,443 4,287 4,198 2,899 3,171 3,629 533 556 871 $ 2,366 $ 2,615 $ 2,758 40 Net income attributable to equity holders 2,326 Net income attributable to preferred shareholders and other equity instrument holders Net income attributable to common shareholders 101 39 2,576 106 88 2,670 $ 2,225 $ Diluted earnings per share (in dollars) $ 1.85 Impact of adjustments on diluted earnings per share (in dollars) $ 0.49 AAA 2,470 $ 2.06 $ 0.43 SASA SA $ 44 2,626 $ 2.15 $ 0.01 Weighted average number of diluted common shares outstanding (millions) 1,210 1,199 1,230 Scotiabank First Quarter Press Release 2023 7#8Global Reconciliation of reported and adjusted results by business line For the three months ended January 31, 2023 (1) Canadian International Global Wealth Banking and ($ millions) Banking Banking Management Reported net income (loss) $ 1,087 $ Net income attributable to non-controlling interests in subsidiaries (NCI) Reported net income attributable to equity holders 692 $ 38 387 $ Markets 519 $ Other Total (913) $ 1,772 2 40 1,087 654 385 519 (913) 1,732 Reported net income attributable to preferred shareholders and other equity instrument holders 1 Reported net income attributable to common shareholders $ 1,086 $ 1 653 $ 385 $ 1 518 $ 98 (1,011) $ 101 1,631 Adjustments Adjusting items impacting non-interest expenses (Pre-tax) Amortization of acquisition-related intangible assets Total non-interest expenses adjustments (Pre-tax) Total impact of adjusting items on net income before taxes Impact of adjusting items on income tax expense Canada recovery dividend Impact of other adjusting items on income tax expense 222 10 10 10 666 21 21 21 Total impact of adjusting items on income tax expense Total impact of adjusting items on net income 1 E- (1) (1) 337 (3) (3) Total Impact of adjusting items on net income attributable to equity holders and common shareholders 1 7 Adjusted net income (loss) $ 1,088 $ 699 Adjusted net income attributable to equity holders $ Adjusted net income attributable to common shareholders $ 1,087 1,088 $ $ 661 $ 660 A A A $ 394 392 $ 392 'SS- ཙྪཥྞ⌘ 579 579 (2) (6) (2) 579 573 7 579 594 7 579 594 $$$ 519 $ (334) $ 2,366 519 $ (334) $ 2,326 518 $ (432) $ 2,225 (1) Refer to Business Segment Review section of the Bank's Q1, 2023 Quarterly Report to Shareholders. Reconciliation of reported and adjusted results by business line For the three months ended October 31, 2022(1) Global Canadian International ($ millions) Banking Reported net income (loss) $ 1,170 $ 679 $ Global Wealth Banking and Banking Management Markets 484 $ 363 $ Other (603) $ Total 2,093 Net income attributable to non-controlling interests in subsidiaries (NCI) Reported net income attributable to equity holders 36 2 38 1,170 643 361 484 (603) 2,055 Reported net income attributable to preferred shareholders and other equity instrument holders 1 1 Reported net income attributable to common shareholders $ 1,169 $ 642 $ 361 $ 484 $ 104 (707) $ 106 1,949 Adjustments Adjusting items impacting non-interest income and total revenue (Pre-tax) Net loss on divestitures and wind-down of operations $ $ $ Adjusting items impacting non-interest expenses (Pre-tax) Amortization of acquisition-related intangible assets 6 9 Restructuring provision Support costs for the Scene+ loyalty program Total non-interest expenses adjustments (Pre-tax) Total impact of adjusting items on net income before taxes Total impact of adjusting items on income tax expense (2) Total impact of adjusting items on net income 2227 6624 Impact of adjusting items on NCI related to restructuring and other provisions Total Impact of adjusting items on net income attributable to equity holders and common shareholders 4 7 Adjusted net income (loss) $ 1,174 $ 686 Adjusted net income attributable to equity holders $ 1,174 $ 650 पी पी b Adjusted net income attributable to common shareholders $ 1,173 $ 649 24 85 85 133 133 9 9 218 242 9 9 579 603 (2) (2) (75) (81) 7 504 522 (1) (1) 7 503 521 $ $ $ 370 $ 368 $ 368 $ 484 $ (99) $ 2,615 484 $ 484 $ (100) $ 2,576 (204) $ 2,470 $ $ 361 $ 361 9 (1) Refer to Business Segment Review section of the Bank's Q1, 2023 Quarterly Report to Shareholders. 8 Scotiabank First Quarter Press Release 2023#9Reconciliation of reported and adjusted results by business line For the three months ended January 31, 2022 (1) Canadian ($ millions) Banking Reported net income (loss) $ 1,201 $ Net income attributable to non-controlling interests in subsidiaries (NCI) Reported net income attributable to equity holders 1,201 Reported net income attributable to preferred shareholders and other equity instrument holders Reported net income attributable to common shareholders International Global Global Wealth Banking and Banking Management Markets Other Total 630 $ 415 $ 561 $ (67) $ 2,740 85 3 88 545 412 561 (67) 2,652 3 2 2 34 44 $ 1,198 $ 542 $ 410 $ 559 $ (101) $ 2,608 Amortization of acquisition-related intangible assets Adjustments Adjusting items impacting non-interest expenses (Pre-tax) Total non-interest expenses adjustments (Pre-tax) Total impact of adjusting items on net income before taxes Total impact of adjusting items on income tax expense Total impact of adjusting items on net income 66624 10 10 10 (2) (3) 7 22927 (2) 25 25 25 (7) 18 Total Impact of adjusting items on net income attributable to equity holders and common shareholders 4 7 7 18 Adjusted net income (loss) $ 1,205 $ 637 $ 422 $ 561 Adjusted net income attributable to equity holders $ 1,205 $ 552 $ Adjusted net income attributable to common shareholders $ 1,202 $ 549 $ 419 $ 417 $ $ 561 $ 559 $ (67) $ 2,758 (67) $ 2,670 (101) $ 2,626 (1) Refer to Business Segment Review section of the Bank's Q1, 2023 Quarterly Report to Shareholders. Scotiabank First Quarter Press Release 2023 9#10Reconciliation of International Banking's reported, adjusted and constant dollar results International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported, adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Reported Results ($ millions) (Taxable equivalent basis) Net interest income Non-interest income Total revenue Provision for credit losses Non-interest expenses Income before taxes Income tax expense Net income Net income attributable to non-controlling interest in subsidiaries Net income attributable to equity holders of the Bank Other measures Average assets ($ billions) Average liabilities ($ billions) For the three months ended Reported $ October 31, 2022 Foreign results exchange 1,806 $ (60) $ Constant Reported dollar January 31, 2022 Foreign results exchange Constant dollar 1,866 $ 1,648 $ (108) $ 1,756 698 2 696 749 14 735 2,504 (58) 2,562 2,397 (94) 2,491 355 (11) 366 274 (17) 291 1,364 (34) 1,398 1,285 (65) 1,350 785 (13) 798 838 (12) 850 106 106 208 208 SALASA $ 679 $ (13) $ 692 $ 630 $ (12) $ 642 $ 36 $ (1) $ 37 $ $ 643 $ (12) $ 655 LA LA 85 $ (2) $ 87 $ 545 $ (10) $ 555 $ LA LA 217 $ (8) $ 225 $ 196 $ (12) $ 208 $ 160 $ (6) $ 166 $ 144 $ (8) $ 152 Adjusted Results ($ millions) For the three months ended October 31, 2022 January 31, 2022 Adjusted (Taxable equivalent basis) results Foreign exchange Constant dollar Constant adjusted Net interest income $ 1,806 $ (60) $ 1,866 $ Adjusted results 1,648 $ Foreign exchange dollar adjusted (108) $ 1,756 Non-interest income Total revenue Provision for credit losses Non-interest expenses 698 2 696 749 14 735 2,504 (58) 2,562 2,397 (94) 2,491 355 (11) 366 274 (17) 291 1,355 (33) 1,388 1,275 (65) 1,340 Income before taxes 794 (14) 808 848 (12) 860 Income tax expense 108 (1) 109 211 1 210 Net income $ 686 $ (13) $ 699 $ 637 $ (13) $ 650 Net income attributable to non-controlling interest in subsidiaries $ Net income attributable to equity holders of the Bank 36 $ (1)$ 37 $ 650 $ (12) $ 662 LA LA $ 85 $ (3) $ 88 $ 552 $ (10) $ 562 Return on equity Return on equity is a profitability measure that presents the net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity. The Bank attributes capital to its business lines on a basis that approximates 10.5% of Basel III common equity capital requirements which includes credit, market and operational risks and leverage inherent within each business segment. Return on equity for the business segments is calculated as a ratio of net income attributable to common shareholders (annualized) of the business segment and the capital attributed. Adjusted return on equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity. 10 Scotiabank First Quarter Press Release 2023#11Forward-looking statements From time to time, our public communications 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 ("SEC"), or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2022 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "foresee," "forecast," "anticipate,” “intend," "estimate," "plan," "goal," "target," "project," "commit," "objective," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would," "might," " ," "can" and "could" and positive and negative variations thereof. By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; changes to our credit ratings; the possible effects on our business of war or terrorist actions and unforeseen consequences arising from such actions; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; disruptions in or attacks (including cyber-attacks) on the Bank's information technology, internet, network access, or other voice or data communications systems or services; increased competition in the geographic and business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; climate change and other environmental and social risks, including sustainability that may arise, including from the Bank's business activities; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; inflationary pressures; Canadian housing and household indebtedness; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the global economy, financial market conditions and the Bank's business, results of operations, financial condition and prospects; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2022 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2022 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" and "2023 Priorities" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf. Additional information relating to the Bank 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 First Quarter Press Release 2023 11#12Shareholders Information Dividend and Share Purchase Plan Scotiabank's dividend reinvestment and share purchase plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the transfer agent. Website For information relating to Scotiabank and its services, visit us at our website: www.scotiabank.com. Conference Call and Web Broadcast The quarterly results conference call will take place on February 28, 2023, at 8:15 am EST and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 416-641-6104 or toll-free, at 1-800-952-5114 using ID 7307684# (please call shortly before 8:15 am EST). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page of www.scotiabank.com. Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from February 28, 2023, to April 6, 2023, by calling 905-694-9451 or 1-800-408-3053 (North America toll-free) and entering the access code 1127377#. Additional Information Investors: Financial Analysts, Portfolio Managers and other Institutional Investors requiring financial information, please contact Investor Relations, Finance Department: Scotiabank 40 Temperance Street Toronto, Ontario, Canada M5H OB4 Telephone: (416) 775-0798 E-mail: [email protected] Global Communications: Scotiabank 40 Temperance Street, Toronto, Ontario Canada M5H OB4 E-mail: [email protected] Shareholders: For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank's transfer agent: Computershare Trust Company of Canada 100 University Avenue, 8th Floor Toronto, Ontario, Canada M5J 2Y1 Telephone: 1-877-982-8767 E-mail: [email protected] Co-Transfer Agent (U.S.A.) Computershare Trust Company, N.A. Overnight Mail Delivery: Computershare C/O: Shareholder Services 462 South 4th Street, Suite 1600 Louisville, KY 40202 First Class, Registered or Certified Mail Delivery: Computershare C/O: Shareholder Services 12 Scotiabank First Quarter Press Release 2023#13P.O. Box 505000 Louisville, KY 40233-5000 Tel: 1-800-962-4284 E-mail: [email protected] For other shareholder enquiries, please contact the Corporate Secretary's Department: Scotiabank 40 Temperance Street Toronto, Ontario, Canada M5H OB4 Telephone: (416) 866-3672 E-mail: [email protected] Rapport trimestriel disponible en français Le Rapport annuel et les états financiers de la Banque sont publiés en français et en anglais et distribués aux actionnaires dans la version de leur choix. Si vous préférez que la documentation vous concernant vous soit adressée en français, veuillez en informer Relations publiques, Affaires de la société et Affaires gouvernementales, La Banque de Nouvelle-Écosse, Scotia Plaza, 44, rue King Ouest, Toronto (Ontario), Canada M5H 1H1, en joignant, si possible, l'étiquette d'adresse, afin que nous puissions prendre note du changement. Contact Information John McCartney Scotiabank Investor Relations (416) 863-7579 Sophia Saeed Scotiabank Investor Relations (416) 933-8869 Scotiabank First Quarter Press Release 2023 13