2018 Financial Performance

FINANCIAL PERFORMANCE AND METRICS ($MM) Q4/18 Y/Y Reported Revenue $3,134 +22% +11% Expenses $1,721 +23% +15% PCLs $412 +32% (45%) Net Income $712 +18% +36% Productivity Ratio 54.9% +50bps +200bps Net Interest Margin 4.52% (15bps) (18bps) PCL Ratio 1.05% (9bps) (153bps) Q4 2018 International Banking Financial Performance Strong performance in the Pacific Alliance supported by acquisitions 1,2 YEAR-OVER-YEAR HIGHLIGHTS2 Adjusted Net Income up 22% 6 ○ Strong asset and deposit growth in Pacific Alliance o Includes impact of acquisitions and alignment of reporting period Revenues up 22% o Pacific Alliance up 28% Q/Q • PCL Ratio on Impaired Loans 3,4 1.20% +6bps (13bps) • Loans up 29% Adjusted 6 Expenses $1,661 +19% +14% o Pacific Alliance loans up 42% PCLs $412 Net Income $746 +32% +22% +14% +6% • NIM down 15 bps Productivity Ratio 53.0% PCL Ratio 3, 4, 6 1.05% (100bps) +130bps (9bps) (18bps) • 1,6 ADJUSTED NET INCOME 4.67% 4.66% 4.74% ($MM) AND NIM 5 (%) 4.70% 4.52% 613 675 683 715 746 Q4/17 · Q1/18 Q2/18 Q3/18 Q4/18 • ○ Mainly driven by the business mix impact of acquisitions Expenses up 19% 6 o Business volume growth, inflation and higher technology costs 。 Full year productivity ratio improvement of 150bps 6 Full-year positive operating leverage of 3.1%6 PCL ratio 3, 4, 6 down 9 bps 1 Attributable to equity holders of the Bank 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 3 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 5 Net Interest Margin is on a reported basis 6 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 4 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures Scotiabank® 24

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