Scotiabank Earnings Report Q1 2019

Canadian Housing Fundamentals Remain Sound Solid indicators on several dimensions INTERNATIONAL IMMIGRATION TOTAL DEBT-SERVICE RATIO NUMBER OF IMMIGRANTS TO CANADA, 000S RATIO 290 240 190 140 90 95 00 2021 Target = 350K 05 10 15 Sources: Scotiabank Economics, Statistics Canada. RESIDENTIAL UNIT SALES TO NEW LISTINGS RATIO 1.0 0.8 Sellers' Market 0.6 Balanced Market 0.4 Buyers' Market 0.2 0.0 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, CREA MLS. Data through January 2019. % OF MORTGAGES IN ARREARS % OF DISPOSABLE INCOME νε S MONTHS OR MORE 16 15 14 13 1990-2017 average 12 11 10 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada. Data through 2018Q3. RESIDENTIAL MORTGAGES ARREARS 0 CO 5 + 3 2 0 U.S. Canada 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, CBA, MBA. Data through 2018Q4 (US) and October 2018 (Canada). Scotiabank® 46

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