Scotiabank Investment Thesis

1.00% 0.50% 0.00% 2001 0.50% 0.00% Historical PCL Ratios on Impaired Loans Credit fundamentals remain strong; PCLS on impaired loans in line with long-term average 1.50% ALL BANK HISTORICAL PCL RATIO ON IMPAIRED LOANS¹ 1.00% 2002: Included $454 million related to the Bank's exposure to Argentina 2009: Higher PCLs driven by economic conditions, event distributed across business lines. Higher general allowance and sectoral allowance (automotive related) PCL Ratio on Impaired Loans 2007 1.50% CANADIAN BANKING HISTORICAL PCL RATIO ON IMPAIRED LOANS¹ 2002 2003 PCL Ratio on Impaired Loans 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2008 Historical Average - PCL Ratio on Impaired Loans (44 bps) ༔ ༔ ༔ ༔ ༔ 2014 I 2015 Historical Average - PCL Ratio on Impaired Loans (26 bps) 2016 Average: 44 bps I ☐ Scotiabank® Average: 26 bps 30 30

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