Investor Day Summary

CANADIAN ECONOMY AND FINANCIAL SYSTEM Stable economy with sound financial system . • • CANADIAN ECONOMY The 10th largest economy in the world, with a strong trade orientation Economy diversified, with particular strength in service, primary, manufacturing, construction, and utility sectors Proactive governments and central bank that has begun unwinding exceptionally accommodative monetary policy • Manageable government deficits and debt burdens • Strong growth outlook, with firm commodity prices, resilient consumer activity, and solid U.S. demand for Canadian goods and services STRONG FINANCIAL SYSTEM Effective regulatory framework ○ Principles-based regime Single regulator for major banks Conservative capital requirements o Proactive policies and programs Risk-management practices O Prudent lending standards o Few sub-prime mortgages Relatively little securitization Primarily originate-to-hold model Canadian banks well-capitalized and profitable Scotiabank® 49

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