#1Investor Presentation Second Quarter 2019 Scotiabank®#2CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, our public communications often include oral or written forward- looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2018 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "foresee," "forecast," "anticipate," "intend," "estimate," "plan," "goal," "project," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would" and "could." By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; changes to our credit ratings; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; disruptions in or attacks (including cyber- attacks) on the Bank's information technology, internet, network access, or other voice or data communications systems or services; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2018 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 2018 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. Scotiabank®#3TABLE OF CONTENTS Scotiabank Overview • • • • • Canada's International Bank Well-Diversified and Profitable Business Medium-Term Financial Objectives Why Invest in Scotiabank? Increasing Scale, Improving Focus Track Record of Earnings and Dividend Growth • Strong Capital Generation and Position • Progress in Digital Banking 4567 8 9 10 11 12 • Environmental, Social & Governance (ESG) Appendix 1: Business Line and Financial Overview • • • Financial Performance Canadian Banking International Banking Global Banking and Markets • Credit Performance by Business Lines • Historical PCL Ratios on Impaired Loans Wholesale Funding Appendix 2: Key Market Profiles Appendix 3: Canadian Housing Market Appendix 4: Additional Information Contact Information 13 15 16 17 24 27 29 30 31 32 39 46 48 Scotiabank®#4Scotiabank Overview Scotiabank®#5Canada's International Bank Top 10 Bank in the Americas 1,2 Americas 7th largest bank by assets¹ 10th largest bank by market capitalization¹ Full-Service Canada Mexico . Peru • Chile Colombia Caribbean Uruguay Wholesale Operations USA UK Hong Kong Singapore Australia Ireland China • Brazil South Korea Malaysia India • Japan 2018 Bank of the Year Latin America and the Caribbean by Latin Finance Europe FY 2019 Scotiabank³ YTD Change YTD/YTD Revenue $15.2B 8% Net Income $4.6B Return on Equity 13.7% -190bps Operating Leverage4 -1.9% Productivity Ratio4 53.2% +90bps Total Assets $1.1T +14.2% Ranking by Market Share5 USMCA Canada USA #3 Top 10 Foreign Bank Asia PAC Mexico Peru Chile Colombia 菇菇菇菇 #6 #3 #3 #5 1 Source: Bloomberg May 25, 2019; 2 By assets and market capitalization; 3 Figures adjusted for Acquisition and divestiture-related amounts, including Day 1 PCLs, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net gain on divestitures; 4 Exclude employee benefits re-measurement credit of $203MM pre-tax, $150MM after-tax in Q1/18; 5 Ranking based on market share in loans as of March 2019 for PACS, as of February 2019 in Canada for publically traded banks; 6 For the six months ended April 30, 2019 LEADING BANK IN THE AMERICAS Earnings by Geography3,6 Other- C&CA 9% 9% PAC 24% 9% 49% Canada U.S.A. Americas (>90%) Scotiabank® 5#6Well-Diversified and Profitable Business Diversified by business and by geography, creating stability and lowering risk Earnings by Business 1,2,3 Earnings by Geography1,2,3 * Caribbean and Central America Global Banking & Markets 17% Global Wealth Management 13% 2019 YTD EARNINGS MIX $4.5B International Banking P&C 33% C&CA* Other 9% Canadian Banking P&C Colombia 2% 9% 37% Chile 6% Peru 9% 2019 YTD EARNINGS MIX $4.5B Mexico 7% U.S. 9% Adjusted Return on Equity 1.2 by Division 18.5% 14.8% 13.3% 13.7% Canadian Banking International Banking Global Banking and Markets All Bank Canada 49% 1 For the six months ended April 30, 2019; 2 Figures adjusted for Acquisition and Divestiture-related amounts, including Day 1 PCLs, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net gain on divestitures; 3 Excluding Corporate adjustments GREATER SCALE, GREATER FOCUS Scotiabank® 60#7Medium-Term Financial Objectives¹ METRICS ALL BANK OBJECTIVES Q2/19 RESULTS² (YTD/YTD Change) EPS Growth 7%+ -3.9% ROE 14%+ 13.7% Operating Leverage³ Positive (1.9%) Capital Strong Levels 11.1% (11.3% pro-forma announced divestitures) Dividend Payout Ratio 40%-50% 49.7% BUSINESS LINE CANADIAN BANKING Net Income Growth Productivity Ratio 7%+ +1% <49% 50.0% INTERNATIONAL BANKING Net Income Growth4 9%+ Productivity Ratio <51% +16% 50.5% 13-5 year objectives. 2 Figures adjusted for Acquisition and divestiture-related amounts, including Day 1 PCLs, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net gain on divestitures; 3 Excludes employee benefits re-measurement credit of $203MM pre-tax, $150MM after-tax in Q1/18; 4On a constant dollar basis Scotiabank® 7#8Why Invest in Scotiabank? ☑ Canada's international bank and a top 10 bank in the Americas Diversified exposure to high quality growth markets Increasing scale and market share in key markets Improving quality of earnings while reducing risk profile . Unique footprint provides diversification with growth • Strong balance sheet, capital and liquidity ratios • Attractive dividend yield, return on equity and valuation • Leading Canadian banking franchise Leading bank in the Pacific Alliance growth markets of Mexico, Peru, Chile and Colombia Earnings growth in personal & commercial, wealth, and wholesale businesses Gaining market share in key markets of Canada, the U.S. and the Pacific Alliance countries Top 3 bank in Canada, Chile and Peru Increasing scale in Wealth Management and Pacific Alliance with $7B of strategic acquisitions in 2018 • ~80% of earnings from core personal and commercial banking businesses • Exited 20 non-core countries and businesses since 2014 • Strong Canadian risk management culture – building stronger capabilities for AML and cybersecurity Enhancing competitive advantage in technology and talent Leading levels of technology investment supports digital banking strategy. Increasing digital sales adoption with clear targets Well positioned in the Pacific Alliance to leverage technology, risk management and funding versus local and global competitors • Named to Top 25 "World's Best Workplaces" (2018) Scotiabank® 8#9Increasing Scale, Improving Focus1 Gaining scale in key markets to drive earnings growth, improve earnings quality and reduce risk Gaining Market Share (Total Loans) Q2/14 Q2/19 02 4 68 10 12 14 16 18 20% Canada Increasing Scale with Strategic Acquisitions (2017-2019) MD Canada Chile MD Financial Management JARISLOWSKY FRASER GLOBAL INVESTMENT MANAGEMENT BBVA Adds wealth management assets of $96B. Adds 110,000 potential primary customers. Doubles market share. Creates 3rd largest bank. = Mexico Chile Peru Colombia Improving Earnings Quality Increased Wealth Management assets under management by 43% to $297B Targeting Wealth Management earnings contribution to All- Bank earnings of 15% over medium-term Establishing Global Wealth Management as standalone division in Q1/20 15-year period 2014-2019; 1 Q4 2017 to Q2 2019 INCREASING SCALE, IMPROVING FOCUS Peru banco cencosud Colombia Citibank Dominican Republic Creates 2nd largest bank in credit cards. Creates market leader in credit cards. Doubles customer base. Creates 4th largest bank. PROGRESO... Reducing Risk Profile • 54 countries 36 countries 2013 2019 Between 2014 and 2019, exited 18 countries with either low returns, small scale or higher operational risk, including: • Turkey⚫ Russia • Haiti ⚫ Egypt Taiwan UAE ⚫ 12 others • Exited 6 non-core businesses Reduced wholesale funding (% of assets) from 29.6% to 22.9% Scotiabank® 9#10Strong Track Record of Earnings and Dividend Growth Stable and predictable earnings with steady increases in dividends Earnings per share (C$)1.2 Total shareholder return³ $3.05 +9% CAGR $7.11 ■Scotiabank ■Big 5 Peers (ex. Scotiabank) 14.80% 12.70% 11.60% 11.40% 10.80% 6.60% 08 09 10 11 12 13 14 15 16 17 18 5 Year 10 Year 20 Year Dividend per share (C$) $1.92 08 09 +6% CAGR $3.28 10 11 12 13 14 15 16 17 18 1 Reflects adoption of IFRS in Fiscal 2011 2 Excludes notable items for years prior to 2016. For 2016 onwards, results adjusted for acquisition-related costs including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions and amortization of intangibles related to current and past acquisitions. 3 As of April 30, 2019 INCREASING SCALE, IMPROVING FOCUS Scotiabank® 110#11Strong Capital Generation and Position Capital levels are well above minimum regulatory requirements. CET1 >11%. CET1 Ratio 11.1% 11.3% 11.1% +21 bps -5 bps -7 bps -9 bps +3 bps +20 bps Q1/19 Internal Capital RWA Impact Generation (ex. FX) Share Buybacks (net of issuances) Impact of Completed M&A Other Including FX Q2/19 Reported Impact of Announced Divestitures Q2/19 Pro-Forma Strong Capital Levels 15.3% 1.8% 1.5% 14.6% 14.7% 14.5% 14.3% 1.7% 1.8% 2.1% 2.2% 1.4% 1.4% 1.4% 1.4% 12.0% 11.4% 11.1% 11.1% 11.1% Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 CET1 Tier 1 Tier 2 Scotiabank® 11#12Progress in Digital Banking Progressing well against 2018 Investor Day digital targets Digital Retail Sales¹ +1,400 bps Digital Adoption2 +900 bps In-Branch Financial Transactions³ -900 bps 25 35 26 33 22 23 29 20 26 17 15 11 F2016 F2017 F2018 Q2/19 F2016 F2017 F2018 Q2/19 F2016 F2017 F2018 Q2/19 Goal >50% Goal >70% Strong progress made in across key markets, especially in Colombia and Chile Adoption grew 400 bps since Q2/18 1 Canada: F2017 22%, F2018 26%, Q2/19 25% PACS: F2017 13%, F2018 19%, Q2/19 25% 2 Canada: F2017 36%, F2018 38%, Q2/19 40% PACS: F2017 20%, F2018 26%, Q2/19 28% 3 Canada: F2017 17%, F2018 15%, Q2/19 13% PACS: F2017 29%, F2018 24%, Q2/19 21% Goal <10% • In-branch transactions continued to decline at a steady pace Scotiabank® 12 12#13Environmental, Social & Governance (ESG) Environmental ⚫ $8.5 billion in loans and credit facilities to the renewable energy sector in 2018 • Established internal price on carbon, and on-track to achieve greenhouse gas reduction target of 10% by 2021 Began integrating recommendations from the Task Force on Climate-related Financial Disclosures in 2018 and have reported to the CDP since 2004 New approach to working at our head office in Toronto, Canada has reduced square feet per employee by 40%, and expected to reduce paper use by 86% • • Social Launched the Scotiabank Women Initiative to advance women-led businesses through access to capital, education and mentorship ~35% of VP+ roles and Executive positions held by women $250 million committed over 10 years to help employees adapt to the digital economy Joint Lead Manager on $1 Billion World Bank Sustainable Development Bond to support women and youth 900,000+ Canadian students participated in "Talk With Our Kids About Money" day in 2018 Employees volunteered >370,000 hours in 2018 to local causes >$80 million donated to local communities in 2018 with 70% directed towards helping young people in the community бра Governance • First financial institution in Canada to establish a Corporate Governance Office (2014), with a direct reporting line to the Chair of the Board Updated our Human Rights Statement in 2019, signed by our President and CEO Established an independent Chair in 2004 Established term limits for directors in 2011 Established a Board diversity policy in 2013. 38% of directors are female Scotiabank® 13#14Environmental, Social & Governance (ESG) Member of the Dow Jones Sustainability North America Index Top 1% of global financial institutions for corporate governance (top 10% of banks overall) Top 100: 2019 Bloomberg Gender-Equality Index and Thomson Reuters Diversity & Inclusion Index One of the World's Best Workplaces in 2018 by Great Place to Work Scotia Global Asset Management is a signatory to the Principles for Responsible Investment MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM SAM Sustainability Award Industry mover 2019 THE GLOBAL COMPACT 2019 SAM Sustainability Award Bronze Class 2019 Bloomberg Gender-Equality Index United Nations Global Compact FINANCE UNEP INITIATIVE PRI TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES CDP DRIVING SUSTAINABLE ECONOMIES TOP 100 COMPANY 2018 Thomson Reuters Diversity & Inclusion Index Principles for Responsible Investment SUSTAINABLE DEVELOPMENT GOALS EQUATOR PRINCIPLES CP CARBON PRICING LC LEADERSHIP COALITION Scotiabank® 14 14#15Appendix 1: Business Line and Financial Overview Scotiabank®#16Financial Performance Strong revenue and balance sheet growth $MM, except EPS Q2/19 Y/Y Q/Q Reported Net Income $2,259 +4% +1% Diluted EPS $1.73 +2% +1% Revenue $7,803 +11% +3% Expenses $4,046 Productivity Ratio 51.8% +9% (3%) (100bps) (310bps) YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 3%² Revenue up 8%² 。 Mostly relating to acquisitions 。 Net interest income up 6% Core Banking Margin 2.45% (2bps) PCL Ratio¹ 61bps +19bps +14bps PCL Ratio on Impaired Loans¹ 49bps +3bps +2bps Adjusted² Net Income $2,263 +3% (1%) Diluted EPS $1.70 (1%) (3%) Revenue $7,630 +8% Expenses $3,993 +8% Productivity Ratio 52.3% (20bps) PCL Ratio1 51bps +9bps (3%) (180bps) +4bps . 。 Non-interest income up 11% Expenses up 8% 2 。 Mostly driven by acquisitions o Excluding acquisitions and the impact of IFRS15, expenses were up 1% Y/Y 。 Expenses were down 3% Q/Q PCL ratio on impaired loans¹ up 3 bps o In-line with 30-year historical average DIVIDENDS PER COMMON SHARE 0.03 0.02 0.87 0.85 0.85 0.82 0.82 Q2/18 Q3/18 ■ Announced Dividend Increase Q4/18 Q1/19 Q2/19 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCLs, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net gain on divestitures Scotiabank® 16#17Canadian Banking Top 3 bank in personal & commercial banking, wealth and insurance in Canada • Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to Retail, Small Business, Commercial Banking, and Wealth Management customers Retail 56% REVENUE MIX1 $3.4B 17% Commercial Residential Mortgages 61% MEDIUM-TERM FINANCIAL OBJECTIVES Target² 2019 YTD3,4.5 AVERAGE LOAN MIX1 $344B Net Income Growth6 7%+ +1% Productivity Ratio <49% 50.0% 27% Credit Cards CB ex Wealth 21% 16% Wealth Business and Government Loans Personal Loan Wealth <45% 45.9% <65% 62.7% STRATEGIC OUTLOOK • • Improve productivity towards our <49% productivity ratio target (<45% ex Wealth) by 2020 supported by positive operating leverage Integration of our recent acquisitions in Wealth: MD Financial Management ($49B AUM) and Jarislowsky Fraser ($40B AUM) • Leverage data analytics for prudent growth in higher margin credit card and small business banking • Increase core deposits; and primary customers 1 For the three months ended April 30, 2019; 2 3-5 year target; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions; 4 Reflects adoption of new accounting standard, IFRS 15; 5 For the six months ended April 30, 2019; 6 Attributable to equity holders of the Bank Scotiabank® 17#18Canadian Banking Financial Performance Strong deposit growth, higher NIM and good expense management FINANCIAL PERFORMANCE AND METRICS ($MM)¹ Y/Y YEAR-OVER-YEAR HIGHLIGHTS Q2/19 Q/Q Reported Revenue $3,380 +5% (1%) Expenses $1,711 +4% (1%) PCLS $252 +23% +8% Net Income $1,048 +3% (2%) Productivity Ratio 50.6% (20bps) Net Interest Margin 2.46% +3bps +2bps PCL Ratio² 0.30% +5bps +3bps PCL Ratio on Impaired Loans² 0.28% +3bps +1bp . Adjusted³ Expenses $1,691 +3% (1%) Net Income $1,062 +4% (2%) Productivity Ratio 50.0% (60bps) 1,3 2.45% ADJUSTED NET INCOME¹³ ($MM) AND NIM (%) 2.43% 2.46% 2.44% 2.46% 1,022 1,141 1,146 1,089 1,062 Q2/18 Q3/18 1 Attributable to equity holders of the Bank Q4/18 Q1/19 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures · . Q2/19 • Adjusted Net Income up 4%³ 。 Margin expansion 。 Lower real estate gains and last year's benefit from alignment of insurance reporting reduced net income growth by 4% 。 Higher PCLs primarily from unsecured lending and auto loans and impact of less favourable forward looking macro-economic inputs Revenue up 5% 。 Net interest income up 4% Loan growth of 3% o Residential mortgages up 2%; credit cards up 6% 。 Business loans up 9% Deposit growth of 11% o Personal up 8%; Non-Personal up 15% NIM up 3 bps o Primarily driven by deposit growth Expenses up 3%³ o Investments in technology and regulatory initiatives o Excluding M&A and IFRS15, expenses were flat Quarterly operating leverage of +1.1%³ PCL ratio² up 5 bps to 30 bps 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank® 18#19Canadian Banking: Retail Exposures High quality retail loan portfolio: ~92% secured • Residential mortgage portfolio is high quality 。 42% insured, and the remaining 58% uninsured has a LTV of 55%1 • Market leader in auto loans 。 $37 billion auto loan portfolio with 7 OEM relationships (3 exclusive) o Prime Auto and Leases (~91%) o Lending tenor has been relatively stable with contractual terms for new originations averaging 77 months (6.4 years) with projected effective terms of 53 months (4.4 years) • Growth opportunity in credit cards o $7.5 billion credit card portfolio represents ~3% of domestic retail loan book and 1.3% of the Bank's total loan book Organic growth strategy focused on payments and deepening customer relationships 。 Upside potential from existing customers: ~80% of growth is from existing customers (penetration rate mid-30s and trending up versus peers in the low-40s) 。 Strong risk management culture with specialized credit card teams, customer analytics and collections focus 5% Unsecured DOMESTIC RETAIL LOAN BOOK $289.2B 3% Credit Cards 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. 79% Real Estate Secured Lending -13% Automotive Scotiabank® 19#20Canadian Banking: Residential Mortgages High quality, diversified portfolio • Residential mortgage portfolio of $217 billion: 42% insured; LTV 55% on the uninsured book¹ 。 Mortgage business model is "originate to hold" 。 New originations² in Q2/19 had average LTV of 64.5% 。 Majority is freehold properties; condominiums represent approximately 13% of the portfolio • Three distinct distribution channels: All adjudicated under the same standards 。 1. Broker (~59%); 2. Branch (~18%); and 3. Mobile Salesforce (~23%) CANADIAN MORTGAGE PORTFOLIO: $217B (SPOT BALANCES AS AT Q2/19, $B) Freehold $188B Condos $29B $110.2 42% Insured $12.9 Total Portfolio: $217 billion $97.3 $39.6 $9.7 $30.6 $3.6 $16.0 $29.9 $27.0 $1.8 $14.2 $11.2 $11.0 $9.5 $0.2 $8.8 $0.7 58% Uninsured Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan % of 50.8% 18.2% 14.1% 7.4% 5.2% 4.3% portfolio 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions Scotiabank® 20 20#21Canadian Banking: Residential Mortgages (continued) High quality portfolio, lower originations in Vancouver and Toronto NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION Q2/18 Q1/19 Q2/19 Canada GVA 63% Total Originations ($B) Uninsured LTV 8.9 9.3 7.1 63% 64% 64% GTA 64% GTA BC & Territories Total Originations ($B) Uninsured LTV 2.8 3.2 2.3 62% 63% 64% 63% GVA Atlantic Prairies 67% ON QC Provinces 64% 64% 66% Total Originations ($B) Uninsured LTV 1.2 1.0 0.9 59% 59% 63% *Average LTV ratios for our uninsured residential mortgages originated during the quarter FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO1 Average FICO Score Canada 790 GTA 791 GVA 795 15% 11% 12% 4% < 635 636-706 707-747 FICO is a registered trademark of Fair Isaac Corporation 1 FICO® distribution for Canadian uninsured portfolio based on score ranges at origination 58% • 748-788 > 788 • Only <0.72% of uninsured portfolio has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $126 billion as at Q2/2019 Scotiabank® 21 21#22Automotive Finance Canada's leader in automotive finance • Provide personal and commercial dealer financing solutions, in partnership with seven leading global automotive manufacturers in Canada • Portfolio grew 2%¹ year-over-year Personal up 3%, Commercial down 4% Commercial 13% Exclusive Relationships MAZDA VOLVO JAGUAR/LAND ROVER AVERAGE Near-Prime Retail ASSET MIX 8% $42.3B1 Semi-Exclusive Relationships* 79% 100% Secured HYUNDAI CHRYSLER GM TESLA Prime Retail * 1 to 2 other financial institutions comprise Semi-Exclusive relationships Market Share² Prime Retail Market Share³ 65% 35% Near-Prime Retail Market Share4 69% 31% Commercial Floorplan Market Share5 72% 28% 1 For the three months ended April 30, 2019; 2 Data as at Dec 2018; 3 CBA data, includes BMO, CIBC, HSBC, National Bank, RBC, Scotiabank, TD; A Dealer Track Portal data, includes all Near-Prime Retail providers on DealerTrack Portal; 5 Includes BMO, CIBC, RBC, Scotiabank, TD, HSBC, Canadian Western Bank, Laurentian Bank Scotiabank® 22 22#23Tangerine Canada's #1 Digital Bank Tangerine Forward Banking Conscious Self-Directed Tech-Friendly • 2.3 million customers • Industry-leading customer service (NPS) • <7-minute account sign-up 97% digital transactions • 96% digital onboarding ⚫ 90% digital sales STRATEGIC FOCUS: • • • . Simplicity Simple, market-leading products that appeal to value- conscious and tech-savvy Canadians Seamless digital client experience Highly competitive rates, simple products Velocity Enhanced self-service options, adding speed & agility Nimble, modern platform supporting rapid development cycles Low cost, scalable business model Partnerships Accelerating momentum through the Toronto Raptors Deepening client relationships by introducing SCENE Loyalty Strong partnership with Scotiabank Modern Platform Speed & Agility Client-Driven Innovation Unique 'Orange' Culture Award Winning Approach 90 Scalable: Nimble, low cost systems provide a holistic client view. Rapid Deployments: Agile best practices enable quick & efficient new product & feature delivery. Incubator: Identify, explore, and pilot new technologies and solutions to meet evolving Client needs. > Team Tangerine: Our unique culture and lean team are an essential part of how we deliver. Third-Party Recognition: J.D. Power Customer Satisfaction seven years in a row, Finovate "Best in Class" for digital experiences. Scotiabank® 23#24International Banking Leading diversified personal and commercial franchise in high quality growth markets • International Banking operates primarily in Latin America, the Caribbean and Central America with a full range of personal and commercial financial services, as well as wealth products and solutions Asia 6% Business 51% Loans MEDIUM-TERM FINANCIAL OBJECTIVES REVENUE1 24% $3.4B 70% Credit Cards 6% LOAN MIX1 $154B C&CA Latin America 25% Mexico 7% Other Target² 2019 YTD3,4,5 Net Income Growth6 9%+ 16% 16% Personal 27% 24% Loans Peru Productivity Ratio <51% 50.5% Residential Mortgages Operating Leverage Positive +4.6% Latin America 27% Chile 17% Colombia • STRATEGIC OUTLOOK Integration of acquisitions in Chile, Colombia, Peru and Dominican Republic Closing of dispositions of non-core operations in smaller Caribbean markets, and El Salvador • Margins (NIM ~450 bps) and credit quality are expected to remain stable • Positive operating leverage for 18 consecutive quarters 1 For the 3 months ended April 30, 2019; 23-5 year target; 3 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangible related to current and past acquisitions; 4 Y/Y growth rates (%) are on a constant $ basis; 5 For the six months ended April 30, 2019; 6 Attributable to equity holders of the Bank Scotiabank® 24 24#25International Banking Financial Performance Strong performance across the Pacific Alliance FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2 Reported YEAR-OVER-YEAR HIGHLIGHTS² Q2/19 Y/Y Q/Q • Revenue $3,356 +22% (1%) Expenses $1,710 +19% (3%) PCLS $628 +87% 31% Net Income $700 +2% (13%) Productivity Ratio 51.0% (150bps) (130bps) Net Interest Margin 4.58% (16bps) +6bps PCL Ratio³ 1.71% +49bps +43bps PCL Ratio on Impaired Loans³ Adjusted5 1.29% (9bps) +6bps • Expenses $1,677 PCLS $477 Net Income $787 +18% (3%) +42% 0% +14% (5%) Productivity Ratio 50.0% (210bps) (110bps) PCL Ratio³ 1.30% 1,5 +8bps +2bps ADJUSTED NET INCOME 10 ($MM) AND NIM4 (%) • 4.74% 4.70% 4.52% 4.52% 4.58% 805 787 • 715 746 683 Q2/18 Q3/18 1 Attributable to equity holders of the Bank Q4/18 Q1/19 Q2/19 • • Adjusted Net Income up 14% 。 Strong loan growth across the Pacific Alliance Revenues up 22% o Pacific Alliance up 28%, includes impact of acquisitions Loans up 29% o Pacific Alliance up 42% includes impact of Chile, Colombia and Peru acquisitions NIM down 16 bps 。 Primarily driven by the business mix impact of acquisitions (BBVA Chile) ONIM up 6 bps Q/Q Expenses up 18% o Includes impact of acquisitions 。 Business volume growth and inflation 。 Productivity ratio improvement of 210 bps5 Quarterly operating leverage of +5.0%5 PCL ratio on impaired loans³ improved 9 bps Strong growth in digital sales 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 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 4 Net Interest Margin is on a reported basis 5 Adjusted for Acquisition-related costs, including 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 25 Scotiabank® 25#26Scotiabank in the Pacific Alliance Countries Well positioned in high quality, growth markets • PAC Highlights 230 million people¹, median age of 292 9th largest economy in the world1 Banking penetration <50%1 Sovereign ratings all "Investment Grade"3 64% of exports related to manufacturing4 Largest trading partner is the United States4 . • • Scotiabank in the PAC Only global bank present in all PAC countries Top 3 bank in Chile and Peru 28-year operating history (average) 2018 "Bank of the Year", Latin Finance Mexico Peru Chile Colombia Scotiabank Market Share5 Market Share Ranking Strengths 7.4% 6th 17.8% 3rd Auto and Mortgages P&C and Mortgages 14.1% 3rd Credit Cards, Mortgages 6.1% 5th Credit Cards, Personal Average Total Loans (C$B) $29.3 $21.0 $48.0 $12.6 Revenue (C$B) $2.3 $2.2 $2.2 $1.5 Net Income after NC17,8 (C$MM) $644 $750 $507 $122 ROE 6,8 20% 24% of Employees 9,10 13,024 11,471 9% 9,146 8% 8,884 1 Source: World Bank 2017 2 Source: The World Factbook, CIA 2017 3 Sovereign ratings from Moody's, S&P, and Fitch; Source: Bloomberg 4 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co- operation and Development (OECD) 2016 5 Ranking based on publicly traded banks by total loans market share as of March, 2019, inc. M&A 6 For the three months ended April 30, 2019 7 For the trailing 12 months ended April 30, 2019 not adjusted for currency 8 Earnings adjusted for acquisition-related costs including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 9 Employees are reported on a full-time equivalent basis 10As of April 30, 2019 Scotiabank® 26 26#27Global Banking and Markets Second-largest Canadian wholesale banking and capital markets business serving global clients ⚫ Full-service wholesale bank in Canada, the United States and Latin America. Offers a range of products and services in select markets in Europe, Asia and Australia. Asia 5% Europe 9% Canada GEOGRAPHIC REVENUE1 $1.2B US 43% 43% Global Equities 16% Business Banking REVENUE BY BUSINESS LINE1 24% FICC $1.2B 60% Other 15% Equities 31% TRADING RELATED REVENUE (TEB)1,2 $547MM 7% Commodities 11% 36% Foreign Exchange Interest Rate & Credit STRATEGIC OUTLOOK Up-tiering lending relationships, expanding our Investment Banking capabilities in key markets, increasing our investment in the Pacific Alliance to become a leader in local and cross-border banking and capital markets • Continued strong growth in deposits, improved corporate lending and investment banking results to absorb required regulatory and technology investments 1 For the 3 months ended April 30, 2019; 2 All-Bank trading-related revenue Scotiabank® 27 27#28Global Banking and Markets Financial Performance Recovery versus Q1 from higher revenue and better expense management FINANCIAL PERFORMANCE AND METRICS ($MM) YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income down 6% Y/Y, up 25% Q/Q Revenue flat 。 Net interest income down 3% due to lower deposit margins partly offset by higher loan volumes Q2/19 Y/Y Q/Q Revenue $1,151 +7% Expenses $594 +5% (8%) • PCLs ($6) N/A N/A Net Income Productivity Ratio $420 51.6% (6%) +25% +270bps (840bps) Net Interest Margin PCL Ratio² PCL Ratio on Impaired Loans² 1.70% (10bps) (10bps) (0.02%) +3bps +5bps (0.02%) (4bps) (1bp) • Loans up 16% 。 Non-Interest income up 1% from higher fixed income trading, underwriting and credit fees, partly offset by lower equity trading revenues NIM down 10 bps 。 Mainly driven by lower deposit margins NET INCOME AND ROE 16.9% 15.6% 15.3% 15.2% 11.5% 447 441 416 335 Q2/18 420 Q3/18 Q4/18 Q1/19 Q2/19 1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 。 Strong corporate growth across the U.S. and Canada Expenses up 5% o Higher regulatory and technology investments, partly offset by lower performance-related compensation PCL ratio² continues to be a recovery Scotiabank® 28#29Credit Performance by Business Lines Credit fundamentals remain strong Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 (As a % of Average Net Loans & PCLs on Total Impaired PCLs on Total PCLs on Impaired PCLs Impaired PCLs on PCLs on Total Total Total Total Impaired Impaired PCLS PCLS PCLS PCLS PCLS Acceptances) Loans Loans (adj.) Loans Loans Loans (adj.) Canadian Banking Retail 0.28 0.28 0.25 0.24 0.25 0.25 0.28 0.28 0.31 0.35 0.35 Commercial 0.09 0.09 (0.04) 0.06 0.06 0.15 0.21 0.231 0.09 0.061 0.061 Total 0.25 0.25 0.21 0.21 0.22 0.23 0.27 0.271 0.28 0.301 0.301 International Banking Retail 2.26 2.16 2.36 2.252 2.38 2.21 2.33 2.36 2.36 3.183 2.352 Commercial 0.55 0.341 0.38 0.312 0.07 (0.06)1 0.19 0.261 0.27 0.311, 3 0.301,2 Total 1.38 1.221 1.33 1.23² 1.20 1.051 1.23 1.281 1.29 1.711,3 1.301,2 Global Banking and Markets 0.02 (0.05) (0.06) All Bank 0.46 0.42 0.41 0.40 (0.05) (0.07) (0.09)1 (0.01) 0.42 (0.07) (0.02) (0.02) (0.02) 0.39 0.47 0.47 0.49 0.61 0.51 1 Excludes provision for credit losses on debt securities and deposit with banks 2 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions 3 On a reported basis; includes impact of Day 1 PCLs from acquisitions Scotiabank® 29 29#301.00% 0.50% 0.00% 2001 0.50% 0.00% Historical PCL Ratios on Impaired Loans Credit fundamentals remain strong; PCLS on impaired loans in line with long-term average 1.50% ALL BANK HISTORICAL PCL RATIO ON IMPAIRED LOANS¹ 1.00% 2002: Included $454 million related to the Bank's exposure to Argentina 2009: Higher PCLs driven by economic conditions, event distributed across business lines. Higher general allowance and sectoral allowance (automotive related) PCL Ratio on Impaired Loans 2007 1.50% CANADIAN BANKING HISTORICAL PCL RATIO ON IMPAIRED LOANS¹ 2002 2003 PCL Ratio on Impaired Loans 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2008 Historical Average - PCL Ratio on Impaired Loans (44 bps) ༔ ༔ ༔ ༔ ༔ 2014 I 2015 Historical Average - PCL Ratio on Impaired Loans (26 bps) 2016 Average: 44 bps I ☐ Scotiabank® Average: 26 bps 30 30#31Wholesale Funding Wholesale funding diversity by instrument and maturity 1,6,7 33% Senior Notes 2% Bail-inable Notes MATURITY TABLE (EX-SUB DEBT) (CANADIAN DOLLAR EQUIVALENT, $B) Asset-Backed Commercial Paper³ 3% 32% Bearer Deposit Notes, Commercial Paper & Short-Term Certificate of Deposits 3% $29 $26 Asset-Backed $5 Securities $4 $22 12% $4 $2 Covered Bonds $247B $8 $16 $17 $2 54 $4 9% $11 $20 $20 $5 Mortgage Securitization4 4% $14 $14 $11 $6 2% Subordinated Debt5 Deposits from Banks2 < 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years > Senior Debt ABS Covered Bonds 1 Excludes repo transactions and bankers acceptances, which are disclosed in the contractual maturities table in the MD&A of the Interim Consolidated Financial Statements. Amounts are based on remaining term to maturity. 2 Only includes commercial bank deposits raised by Group Treasury. 3 Excludes asset-backed commercial paper (ABCP) issued by certain ABCP conduits that are not consolidated for financial reporting purposes. 4 Represents residential mortgages funded through Canadian Federal Government agency sponsored programs. Funding accessed through such programs does not impact the funding capacity of the Bank in its own name. 5 Although subordinated debentures are a component of regulatory capital, they are included in this table in accordance with EDTF recommended disclosures. 6 As per Wholesale Funding Sources Table in MD&A, as of Q2/19. 7 May not add to 100% due to rounding. Scotiabank® 31#32Appendix 2: Key Market Profiles Scotiabank®#33Economic Outlook in Key Markets Growth in Pacific Alliance expected to remain above that of Canada and the U.S. 2019 AND 2020 REAL GDP GROWTH FORECAST (%) Real GDP (Annual % Change) Country 2000-17 avg. 2018 2019f 2020f Mexico 2.2 2.0 1.4 1.3 Peru 5.0 4.0 4.0 4.0 Chile 3.9 4.0 3.2 3.2 Colombia 3.9 2.6 3.4 3.8 PACS simple avg. 3.7 3.2 3.0 3.1 2000-17 avg. 2018 2019f 2020f Canada 2.1 1.8 1.5 2.0 U.S. 2.0 2.9 2.5 1.7 Source: Scotiabank Economics. Forecasts as of May 9, 2019. Scotiabank® 33 33#34Mexico Diverse economy with a strong balance sheet • The Mexican economy reflects a solid mix of commodities, goods production, and services. Trade remains dominated by the U.S., but Mexico's diversification agenda is underpinned by 13 free-trade agreements with 47 countries that account for 40% of global GDP Despite NAFTA-related concerns, investment rebounded in 2018, which points to the resilience of the economy to trade uncertainty 16.0% Finance, Insurance, & Real Estate 16.3% Other 3.2% Natural Resources 5.8% Health & Education MEXICAN GDP BY INDUSTRY (Q4 2018) 6.5% Transportation 1.9% & Warehousing Professional, 3.8% Scientific, & Technical Services Public Administration 17.7% Wholesale & Retail Trade 15.8% Manufacturing 6.1% Mining and Oil & Gas Extraction 6.8% Construction 5 y/y % change 4 -1 -2 -3 -4 3210 - ≈ 3 4 5 Contributions to Mexican GDP Growth Top 5 Trading Partners Other* Net Exports Inventories Investment Government Germany 3% Japan 3% Canada 4% Consumption -5 Real GDP 16 17 18 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. Others 20% United States 59% China 11% Scotiabank® 34 54#35Chile Advanced economy with wide-ranging trade links Chile's mix of economic activities reflects its status as an advanced market economy Chile's diversified trading relationships are supported by 22 free-trade agreements with 59 countries that account for 70% of global GDP Investment has been a strong contributor to growth in Chile over the past year, which should underpin future productivity gains. 15.2% Finance, Insurance, & Real Estate 8.7% Other 2.0% Restaurants & Hotels 8.5% Transportation & Warehousing 3.4% Natural Resources CHILEAN GDP BY INDUSTRY (Mar 2019) 19.1% Housing & Personal Services 9.3% Wholesale & Retail Trade 10.2% Manufacturing .12.7% Mining and Oil & Gas Extraction 6.3% Construction 4.6% Public Administration 8 y/y % change 6 4 2 0 Contributions to Chilean GDP Growth Top 5 Trading Partners Others 38% China 29% -2 Net Exports Inventories Investment United States -4 Government Consumption Real GDP -6 South Korea 4% 16% Japan Brazil 16 Sources: Scotiabank Economics, Haver Analytics. 17 18 19 6% 7% Scotiabank® 35 55#36Peru Resilient economic fundamentals • • Peru's important resource sectors are increasingly balanced by stronger service-sector activity and solid economic fundamentals Peru has 16 free-trade agreements with 49 countries that account for 66% of global GDP Investment is making a consistently strong contribution to GDP, which should make higher growth rates more sustainable in the future 13.7% Manufacturing 8.5% Finance, Insurance, & Real Estate 30.9% Other PERUVIAN GDP BY INDUSTRY (Q4 2018) 20.7% Transportation, Information & Commerce 6.8% Construction -14.2% 8 y/y % change 6 4 2 0 -2 Contributions to Peruvian GDP Growth -4 -6 16 Sources: Scotiabank Economics, Haver Analytics. 17 18 Net Exports Inventories Investment Government Consumption Real GDP 5.2% Mining & Energy Natural Resources Top 5 Trading Partners China 27% Others 43% United States 18% South Korea 4% Spain Brazil 4% 5% Scotiabank® 36 36#37Colombia Gaining momentum . Services account for a rising share of Colombian GDP compared with traditional strengths in extractive industries Colombia continues to build on its 10 free-trade agreements with 42 countries that account for 38% of global GDP Rising consumption, supported by public spending, reflects an expanding middle class as growth gains momentum and converges toward the economy's underlying potential 13.6% Finance, Insurance, & Real Estate 8.7% Other 6.2% Natural Resources 2.9% Information & Communication 2.4% Arts & Entertainment COLOMBIAN GDP BY INDUSTRY (Q1 2019) 7.2% Professional, Scientific, & Technical Services 17.4% Wholesale, Retail Trade, Accommodation & Food Services 11.9% Manufacturing 8.2% Mining and Oil & Gas Extraction -14.7% 6.7% Construction Public Administration 8 y/y % change 6 4 2 0 -2 Contributions to Colombian GDP Growth Other* Net Exports Investment Government Consumption Real GDP 16 17 18 19 199 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. Top 5 Trading Partners United States Others 28% 42% China 17% Germany Brazil Mexico 3% 5% 6% Scotiabank® 37 37#38Other Regions Strong contribution from leading Caribbean & Central American franchise. • Caribbean & Central America 。 16 countries contributing - CAD $700MM in earnings in 2018 。 Well-established, diversified franchise that serves retail, commercial and corporate customers • Actively managing footprint to ensure scale in larger growth markets and reduce risk profile: ○ Acquired Banco Dominicano del Progreso in Q2/19. Doubles customer base and creates 4th largest bank. ○ Announced sale of operations in 9 smaller countries in Caribbean in Q1/19 Completed sale of pension and insurance operations in the Dominican Republic in Q2/19 Announced sale of banking and insurance operations in El Salvador in Q2/19 o Recognized by Global Finance magazine as: Asia "Best Bank Award 2017" in the Bahamas, Barbados, Costa Rica, Turks & Caicos and U.S. Virgin Islands; "World's Best Consumer Digital Bank 2017" in 24 countries across Latin America and the Caribbean; and "Best in Mobile Banking" in the Caribbean region 。 Thailand: 49% interest in Thanachart Bank (2007) Announced non-binding MOU in Q2/19 to merge with Thai Military Bank and sell partial interest O CAD $3.0B carrying value as of October 31, 2018 CAD $590MM of net income for twelve months ended October 31, 2018 。 China: 19.9% interest in Bank of Xi'an (2009) ○ CAD $1.2B market value as of Q2/19 ○ CAD $772MM carrying value as of October 31, 2018 CAD $456MM of net income for twelve months ended October 31, 2018 38 Scotiabank® 38#39Appendix 3: Canadian Housing Market Scotiabank®#40Canadian Housing Market Engineered moderation of price and volume Significant Moderation in Price Growth* 25 20 15 250 Aggregate Composite MLS Home Price Index Y/Y Percentage Change 10 10 5 0 -5 -10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Sources: Scotiabank Economics, CREA. *Actual - not seasonally adjusted Canada's Five Largest Metropolitan Areas* 10 MLS Home Price Index Benchmark 8 Price Y/Y Percentage Change 6 6.37 4 3.18 2 0 -2 -4 Average -1.52 -6 -8.52 -8 -10 GTA GVA Volume of Home Sales Near 10-Year Average* 50 50 45 Units, 000s Monthly home sales 40 40 35 30 25 20 20 10-year monthly moving avg. 07 08 09 10 11 12 13 14 15 16 17 18 19 Sources: Scotiabank Economics, CREA. *Seasonally adjusted Decline in Share of High Risk Mortgages 25 % Share of new mortgages with a loan-to-income ratio greater than 450% 20 15 -4.01 10 -4.60 Montreal Calgary Edmonton Sources: Scotiabank Economics, CREA. *Actual - not seasonally adjusted 5 0 Mortgage insurance rules tightened Guideline B-20 revised Dec-14 Jun-15 Dec-15 Jun-16 High-ratio mortgages Source: Bank of Canada Jun-18 Dec-18 Total mortgages Dec-16 Jun-17 Low-ratio mortgages Dec-17 Scotiabank® 40 40 1 Sources for charts and table: Bank of Canada Financial System Review 2019 (Data as of December 31, 2018); CREA; MLS Home Price Index growth rates reported as non seasonally-adjusted y/y (Data as of April 2019)#4120 Price Growth by Dwelling Type Single Family ■Townhouse Apartment Canadian Housing Market Engineered soft landing, stability expected in 2019 National: Sales and prices have rebounded and market conditions are in equilibrium¹: Average sales prices have increased in two consecutive months. Composite MLS Home Price Index2 is stable (top right chart) 。 Sales-to-new listings ratio at 54.7% in April 2019, well within the 44-64% range consistent with balanced housing demand and supply Greater Toronto: Conditions are largely balanced, which indicate steady near-term price gains Greater Vancouver: Sales activity remains weak after new taxes came into effect on January 1, 2019 (bottom right chart). Expect a return to positive price and sales gains later this year supported by strong job creation and immigration 20 15 10 5 0 MLS Home Price Index, aggregate, -5 y/y % change 2017 140 Canada Mar-19 Apr-19 Apr-19 120 m/m* m/m* y/y** Sales (% change) 2.3 3.6 4.2 100 New listings (% change) 3.4 2.7 2.8 Average price (% change) 1.4 1.4 0.3 60 80 Mar-19 Apr-19 Sales-to-new listings ratio (level)* 60 54.3 54.8 Months inventory (level)* 5.5 5.3 *Seasonally adjusted **Not seasonally adjusted 2018 Composite 2019 Toronto & Vancouver Home Sales home sales, 000s of units annualized, SA Greater Toronto مین 60 Greater Vancouver 40 20 0 10 11 12 13 14 15 1 Sales and listings figures reported in seasonally-adjusted m/m terms, while MLS HPI growth rates reported as non-seasonally-adjusted y/y. Data as of April, 2019 2 Measure of real estate price appreciation that removes distortions related to variations in the mix of sales across unit types 3 Sources for charts and table: Scotiabank Economics, CREA. Actual 10-year avg. 16 17 18 19 Scotiabank® 41#42Canadian Household Credit Public policy changes are moderating growth in household credit Total household credit grew at 3.3% Y/Y in nominal terms in Q1 of 2019 vs 2008 peak of 12.4% Y/Y • Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.) grew at 3.4% Y/Y in Q1 of 2019 vs > 5% in late-2017 Mortgage credit grew at 3.2% Y/Y in Q1 of 2019 vs 2008 peak of 13% Household Credit Growth 25 25 %, 3-month moving average 20 20 15 15 y/y % change 10 5 m/m% change, SA 0 -5 25 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. Consumer Loan Growth 20 20 15 10 %, 3-month moving average Residential Mortgage Growth 25 %, 3-month moving average 20 y/y % change 15 y/y % change 10 5 m/m% change, SA 0 m/m% 5 change, SA 0 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. -5 -5 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. Scotiabank® 42 42#43Household Debt: Canada vs. U.S. Canadian households' balance sheets compare favourably to US • Canadian headline debt-to-income ratio is now 2% below the U.S. peak in 2008 Over the last 8 years, increases in the Canadian debt-to-income ratio have slowed vs 2002-10 。 Calculated on the same terms, Canada's debt-to-income is currently 167% vs 134% in the U.S. Canadian debt-to-assets ratio remains below U.S. o U.S. households have incentive to pursue higher asset leverage in light of mortgage-interest deductibility Debt is a stock concept, to be financed over one's lifetime. Income is a flow concept measuring one single year's earnings. Debt should be compared to lifetime or permanent income, or assets • Ratio of total household debt-to-GDP remains lower in Canada than U.S. 。 Calculated on a comparable basis, the ratio of household credit market debt is 100.4% in Canada vs 101.2% in the U.S. Household Credit-Market Debt to Disposable Income Total Household Liabilities As % of Total Assets Household Credit-Market Debt to GDP 180 30 household credit liabilities 174.0 as % of disposable income 170 160 150 140 130 120 110 100 ཎྜ ༆ ༔ ༈ ཤྩ བཿ ༅ ༄8 167.3 25 133.5 Adjusted Canadian* Official Canadian Official US 90 00 02 04 06 08 10 12 14 16 18 * Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. 20 20 15 household debt as % of assets 10 T T 130 % of GDP 120 Original US 110 100 US with unincorporated business debt Canada 103.3 101.2 100.4 90 18.7 Canada* 80 74.9 Canada 17.4 70 Original US 60 50 18 00 02 04 06 08 10 12 14 16 Sources: Scotiabank Economics, Federal Reserve Board, Statistics Canada. 00 02 04 06 08 10 12 14 16 18 * Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. Scotiabank® 43 43#44Housing Market Differences vs U.S. Canada's housing market features distinct practices and policies Regulation and Taxation Product Underwriting Canada Mortgage interest not tax deductible Full recourse against borrowers in most provinces Foreclosure on non-performing mortgages, no stay periods Insurance Mandatory default insurance mortgages with LTV > 80% CMHC backed by Government of Canada (AAA). Private insurers are 90% government-backed o Insurance available for homes up to CAD $1MM o Premium is payable upfront O Covers full amount for life of mortgage Homebuyers must qualify for mortgage insurance at an interest rate that is the greater of their contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate Re-financing cap of 80% LTV on non-insured mortgages Amortization Maximum 25-year amortization on mortgages with LTV > 80% Maximum 30-year amortization on conventional mortgages Down payment of > 20% required for non-owner occupied properties Conservative product offerings, fixed or variable rate options Much less reliance upon securitization and wholesale funding Asset-backed securities not subjected to US-style off-balance sheet leverage via special purpose vehicles • Terms usually three or five years, renewable at maturity Extensive documentation and strong standards U.S. • Tax-deductible mortgage interest creates incentive to borrow and delay repayment ⚫ Lenders have limited recourse in most states • 90-day to 1-year stay period to foreclose on non-performing mortgages • • No regulatory LTV limit Private insurers are not government backed Can include exotic products (e.g. adjustable rate mortgages, interest only) 30-year term most common Wide range of documentation and underwriting requirements Scotiabank® 44#45Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2016 2017 2018 2019 . . . • . Canada: Qualifying stress rate for all new mortgage insurance must be the greater of the contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate Low-ratio mortgage insurance eligibility requirements updated for lenders wishing to use portfolio insurance: o Maximum amortization 25 years 。 CAD $1MM max. purchase price o Minimum credit score of 600 。 Owner-occupied property Elimination of primary residence tax exemption for foreign buyers Min. down payment on insured increased from 5% to 10% (for homes CAD $0.5-$1.0MM) British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced Ontario: 16 measures aimed to slow rate of house price appreciation Key aspects include: ○ 15% non-resident speculation tax o Expanded rent control to all private rental units in Ontario 。 Vacant home tax CAD $125MM five-year program to encourage construction of new rental apartment buildings • Canada: OSFI imposes more stringent stress tests for uninsured mortgages, including a minimum qualifying rate at the greater of the five-year fixed posted rate or the contractual rate plus 200 bps, effective January 1, 2018 • Ontario: Elimination of rent . control on new rental units first occupied on or before November 1, 2018 British Columbia: Extension of the Property Transfer Tax on non-resident buyers. Investment of more than CAD $1.6B through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years • British Columbia: Increase in speculation tax on foreign and domestic home owners who do not pay income tax in BC from 0.5% of a property's assessed value to 2%; additional school tax levied on portion of a property's value that exceeds CAD $3MM Scotiabank® 45 45#46Appendix 4: Additional Information Scotiabank®#47Additional Information Scotiabank Listings: Toronto Stock Exchange (TSX: BNS) New York Stock Exchange (NYSE: BNS) Scotiabank Credit Ratings Scotiabank Common Share Issue Information: 064149107 CA0641491075 . CUSIP: ISIN: FIGI: BBG000BXSXH3 NAICS: 522110 Moody's Investors Services Standard & Fitch Ratings Poor's Dominion Bond Rating Service Ltd. Aa2 A+ AA AA- A2 A- AA- AA (low) Baa1 BBB+ A (low) A-1 F1+ R-1 (high) Legacy Senior Debt¹ Senior Debt² Subordinated Debt (NVCC) Short Term Deposits/Commercial Paper P-1 Covered Bond Program Outlook Stable Aaa Not Rated AAA Stable AAA Stable Stable 1 Includes: (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the bank recapitalization "bail-in" regime 2 Subject to conversion under the bank recapitalization "bail-in" regime For further information, please contact: www.scotiabank.com/investorrelations Scotiabank® 47#48Contact Information Investor Relations Philip Smith Senior Vice President 416-863-2866 [email protected] Michael Lomas Managing Director Treasury Sales and Market Development 416-866-5734 [email protected] Steven Hung Vice President 416-933-8774 [email protected] Director 416-775-0485 [email protected] Tiffany Sun Manager 416-866-2870 [email protected] Lemar Persaud Judy Lai Director 416-866-6124 [email protected] For further information, please contact: www.scotiabank.com/investorrelations Scotiabank® 48 480