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Investor Presentaiton

Canadian Economy and Financial System Stable economy with sound financial system • . CANADIAN ECONOMY The 10th largest economy in the world, with an outward orientation Economy diversified, with particular strength in services, primary industries, manufacturing, construction, and utility sectors Proactive government and central bank that have begun unwinding exceptionally accommodative monetary policy Manageable government deficits and debt burdens Strong growth outlook, with firm commodity prices, resilient consumer activity, and solid U.S. demand for Canadian goods and services Only G7 country with free-trade agreements with all other G7 members under NAFTA / USMCA, CETA, and CPTPP. STRONG FINANCIAL SYSTEM Effective regulatory framework o Principles-based regime o Single regulator for major banks 。 Conservative capital requirements o Proactive policies and programs ⚫ Risk-management practices O Prudent lending standards 。 Few sub-prime mortgages o Relatively little securitization Primarily originate-to-hold model Canadian banks well-capitalized and profitable Scotiabank® 51
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