Scotiabank Investor Presentation

CA: Growth in Household Credit • Total household credit growth, in annual nominal terms, had slowed considerably since the 2007 peak of 13.4% y/y. Household credit growth has picked up rapidly throughout 2021 and into 2022, but is now showing early signs of peaking, with recent figures at 8.5% y/y for the rolling quarter ending Aug. 2022. Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.) grew by 5.0% y/y for the rolling quarter ending Aug. 2022. Consumer loan growth has trended downward since late-2000 highs of over 16.6% y/y and declined further during the pandemic on refinancing into secured credit, but recent quarters are still showing signs of strong consumer demand and spending strength. • Mortgage credit grew at 9.3% y/y in the rolling quarter ending Aug. 2022 vs the 2007 peak of 14.1% y/y. Signs of slowing mortgage growth are showing amidst higher rates. Household Credit Growth 20 %, 3-month moving average y/y % 15 change Consumer Loan Growth Residential Mortgage Growth %, 3-month moving average 20 25 %, 3-month moving average 20 y/y% change 15 y/y % change 15 10 5 10 10 0 -5 5 m/m% change, SA -10 m/m% change, SA 5 m/m% change, SA -15 0 -20 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. 71

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