International Banking - Annual Overview

Q4 2017 FINANCIAL PERFORMANCE - QUARTERLY $MM, EXCEPT EPS Q4/17 Y/Y Q/Q Net Income $2,070 +3% -2% • Diluted EPS $1.64 +4% -1% • Revenue $6,812 +1% -1% Expenses $3,668 +1% Productivity Ratio 53.8% -30bps +50bps Core Banking Margin 2.44% +4bps -2bps PCL Ratio 42bps -3bps -3bps • DIVIDENDS PER COMMON SHARE +$0.02 +$0.03 • $0.74 $0.74 $0.76 $0.76 $0.79 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Announced dividend increase 1 Adjusting for restructuring charge of $278 million after-tax ($378 million before-tax) in Q2/16 YEAR-OVER-YEAR HIGHLIGHTS Diluted EPS grew 4% Revenue up 1% 。 Asset growth in retail and commercial lending o Higher core banking margin 。 Higher card revenues and net gains on investment securities 。 Partly offset by lower trading, lower fee and commission revenue from sale of HollisWealth and lower gains on sale of real estate Expense growth up 1% 。 Investments in technology, digital banking, and other initiatives 。 Higher employee-related costs o Partly offset by savings from structural cost transformation and impact from sale of HollisWealth PCL ratio improved 3 bps o Broad based improvement across all business lines ⑤Scotiabank® | 15

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