Scotiabank Financial Review Q2 2019

CANADIAN BANKING Strong deposit growth, higher NIM and good expense management FINANCIAL PERFORMANCE AND METRICS ($MM)1 Y/Y YEAR-OVER-YEAR HIGHLIGHTS Q2/19 Q/Q • Reported Revenue $3,380 +5% (1%) Expenses $1,711 +4% (1%) PCLs $252 +23% +8% Net Income $1,048 +3% (2%) Productivity Ratio 50.6% (20bps) Net Interest Margin 2.46% +3bps +2bps PCL Ratio² 0.30% +5bps +3bps PCL Ratio on Impaired Loans² 0.28% +3bps +1bp · Adjusted³ Expenses $1,691 +3% (1%) Net Income $1,062 +4% (2%) • Productivity Ratio 50.0% (60bps) ADJUSTED NET INCOME 13 ($MM) AND NIM (%) 2.43% 2.46% 2.45% 2.44% 2.46% 1,022 1,141 1,146 1,089 1,062 Q2/18 Q3/18 1 Attributable to equity holders of the Bank Q4/18 Q1/19 . Adjusted Net Income up 4%³ o Margin expansion 。 Lower real estate gains and last year's benefit from alignment of insurance reporting reduced net income growth by 4% o Higher PCLs primarily from unsecured lending and auto loans and impact of less favourable forward looking macro-economic inputs Revenue up 5% 。 Net interest income up 4% Loan growth of 3% o Residential mortgages up 2%; credit cards up 6% 。 Business loans up 9% Deposit growth of 11% 。 Personal up 8%; Non-Personal up 15% NIM up 3 bps 。 Primarily driven by deposit growth Expenses up 3%³ 。 Investments in technology and regulatory initiatives 。 Excluding M&A and IFRS15, expenses were flat • Quarterly operating leverage of +1.1%³ PCL ratio² up 5 bps to 30 bps . Q2/19 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank® 9

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