2018 Financial Performance

2018 Y/Y 2018 Financial Performance Strong adjusted earnings growth with positive operating leverage and productivity gains. $MM, except EPS Reported YEAR-OVER-YEAR HIGHLIGHTS Net Income $8,724 +6% Diluted EPS $6.82 +5% . Adjusted Net Income up 10%³ Revenue $28,775 +6% • Expenses $15,058 +3% Productivity Ratio 52.3% (160bps) Core Banking Margin 2.46% PCL Ratio 1, 2 48bps +3bps PCL Ratio on Impaired Loans 1,2 Adjusted³ 43bps (2bps) · Net Income $9,144 +10% • Diluted EPS $7.11 +9% • Expenses $14,871 +2% Productivity Ratio 51.7% (190bps) • PCL Ratio 1, 2 41bps (4bps) Revenue up 6% ○ Net interest income up 8% ○ Non-interest income up 4% Expense growth of 2%3 Productivity ratio improved 190 bps³ Full year operating leverage of +3.7% 3 Improved PCL ratio on impaired loans 1,2 ADJUSTED NET INCOME 3 BY BUSINESS SEGMENT ($MM) +8% Y/Y 4,090 4,416 Canadian Banking +16% Y/Y -3% Y/Y 1,818 1,758 2,424 2,819 International Banking Global Banking and Markets ■ 2017 ■ 2018 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 Scotiabank® 15

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