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Investor Presentaiton

Q4 2016 Financial Performance $ millions, except EPS Q4/16 Q/Q Y/Y Net Income $2,011 +3% +9% . Diluted EPS $1.57 +2% +8% . Revenues $6,751 +2% +10% Expenses $3,650 +4% +11% Productivity Ratio 54.1% +130bps +50bps Core Banking Margin 2.40% +2bps +5bps Dividends Per Common Share • +$0.02 +$0.02 $0.74 $0.72 $0.72 $0.70 $0.70 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Announced dividend increase · (1) Adjusting for Q2/16 restructuring charge of $278 million after-tax ($378 million before-tax) 6 Year-over-Year Highlights Diluted EPS growth of 8% Revenue growth of 10% • Asset growth across all business lines . • Higher banking fees, wealth management and trading revenues, underwriting and advisory fee and income from associated corporations Gains on sale of real estate were more than offset by lower net gains on investment securities Expense growth up 11% ⚫ Adjusting for the impact of acquisitions, foreign currency translation and Q4/15 net pension credit/reorganization cost, non-interest expenses were up 5% . Higher performance and stock based compensation and continued investments in the business, including technology, partly offset by savings from structural cost reductions Operating leverage of 1.0% in 2016 Scotiabank®
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