Canadian Bail-in Regulations and Economic Fundamentals

Financial 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 +9% (3%) YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 3%² Revenue up 8%² ○ Mostly relating to acquisitions Productivity Ratio 51.8% (100bps) (310bps) 。 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% (3%) Productivity Ratio 52.3% PCL Ratio1 51bps (20bps) (180bps) +9bps +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 o 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 0.85 0.85 0.87 0.82 0.82 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 ■ Announced Dividend Increase 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

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