International Banking and Canadian Economic Insights

International Banking Leading P&C banking operation in high quality growth markets in Latin America and the Caribbean • International Banking operates primarily in Latin America and the Caribbean with a full range of personal and commercial financial services. Its primary markets are the Pacific Alliance countries of Mexico, Peru, Chile and Colombia C&CA Asia 5% 50% Business Loans MEDIUM-TERM FINANCIAL OBJECTIVES REVENUE1 25% $3.4B 70% Credit Cards 7% LOAN MIX1 $155B Target² 2019 Q3 YTD 3,4,5 Latin America Net Income Growth6 9%+ 15% 16% 27% Personal 25% 25% Peru Loans Productivity Ratio <51% 50.5% Mexico 8% Other Latin America 92% PAC 16% Colombia 26% Chile Residential Mortgages Operating Leverage Positive +4.2% STRATEGIC OUTLOOK • Positive earnings impact from acquisitions in Chile, Colombia, Peru and Dominican Republic ⚫ Disposition of non-core operations in smaller Caribbean markets, Puerto Rico and El Salvador reduces operational risk Margins (NIM ~450 bps) and credit quality are expected to remain stable • • Positive operating leverage 1 For the 3 months ended July 31, 2019; 2 3-5 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 intangibles related to current and past acquisitions; 4 Y/Y growth rates (%) are on a constant $ basis; 5 For the nine months ended July 31, 2019; 6 Attributable to equity holders of the Bank Scotiabank. 26

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