Scotiabank Mexico Business Overview

CA: Growth in Household Credit • Total household credit growth, in annual nominal terms, had slowed considerably since the 2007 peak of 13.4% y/y. But household credit growth has picked up rapidly throughout 2021 and into 2022, reaching 9.1% y/y for the rolling quarter ending May. 2022, the highest rate since mid-2010. • Consumer loans excluding mortgages (i.e., cards, HELOCS, unsecured lines, auto loans, etc.) grew by 4.0% y/y for the rolling quarter ending May. 2022. Consumer loan growth has trended downward since late-2000 highs of over 16.6% y/y and declined further during the pandemic on refinancing into secured credit, but the most recent few quarters reflect signs of strengthening consumer demand and spending. • Mortgage credit grew at 10.4% y/y in the rolling quarter ending May. 2022 vs the 2007 peak of 14.1% y/y. Underlying demand, pandemic-induced moves, and relatively low five-year rates have driven a rebound in the pace of growth. However, early signs of slowing mortgage growth are showing amidst higher rates. Household Credit Growth Consumer Loan Growth Residential Mortgage Growth 20 %, 3-month moving average y/y % 15 change 10 5 m/m% change, SA 0 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. %, 3-month moving average 25 20 y/y% change 15 10 5 о 20 %, 3-month moving average 15 y/y% change 10 5 m/m% change, SA -5 -10 m/m% change, SA -15 -20 0 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. 68

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