Financial Performance and Funding Strategy slide image

Financial Performance and Funding Strategy

Canadian 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
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