Q4 2019 Financial Performance

Canadian Bail-in Regulations: Key Features Best in class approach Post September 23, 2018, senior unsecured debt issued by Canadian DSIBS that is subject to bail-in is the only format of issuance available¹ and is a single class of debt2 that is not subordinated to another class of wholesale senior debt Canadian bank term senior unsecured debt is not structurally, statutorily or contractually subordinated to another class of senior liabilities and therefore is equal to deposits and other senior liabilities in liquidation In the remote probability of default, the no creditor worse off principle ensures that bailed-in senior creditors should not incur greater losses through resolution than liquidation. The CDIC compensation regime ensures holders receive the difference between liquidation and resolution value • Canada utilizes a statutory regime where, unlike the contractual regime of Canadian NVCC capital instruments, there is no set conversion multiplier and there is flexibility for a partial bail-in or no bail-in of senior debt even if NVCC instruments are converted Canadian bank resolution framework provides senior debt holders with protection in that the relative creditor hierarchy is maintained. Acceleration rights³ upon non-payment of principal or interest are allowed in Canada 1 Excludes structured notes as defined in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act 2 Ranks pari passu with other forms of senior debt, except as otherwise prescribed by law and subject to the exercise of bank resolution powers 3 Subject to 30 business day grace period and subject to bail-in conversion powers until repaid in full 77

View entire presentation