Scotiabank Financial Review Q2 2019

GLOBAL BANKING AND MARKETS Recovery versus Q1 from higher revenue and better expense management FINANCIAL PERFORMANCE AND METRICS ($MM) Y/Y YEAR-OVER-YEAR HIGHLIGHTS Q2/19 Q/Q • Revenue $1,151 +7% Expenses $594 +5% (8%) PCLs ($6) Net Income $420 Productivity Ratio Net Interest Margin PCL Ratio² PCL Ratio on Impaired Loans² N/A +25% 51.6% +270bps (840bps) 1.70% (10bps) (10bps) (0.02%) +3bps +5bps (0.02%) (4bps) N/A (6%) (1bp) NET INCOME AND ROE 16.9% 15.6% 15.3% 15.2% 11.5% • • Reported Net Income down 6% Y/Y, up 25% Q/Q Revenue flat 。 Net interest income down 3% due to lower deposit margins partly offset by higher loan volumes 。 Non-Interest income up 1% from higher fixed income trading, underwriting and credit fees, partly offset by lower equity trading revenues NIM down 10 bps 。 Mainly driven by lower deposit margins Loans up 16% o Strong corporate growth across the U.S. and Canada Expenses up 5% o Higher regulatory and technology investments, partly offset by lower performance-related compensation PCL ratio² continues to be a recovery 447 441 416 335 Q2/18 420 Q3/18 Q4/18 Q1/19 Q2/19 1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures Scotiabank® 11

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