Fiscal 2018 Financial Performance

RISK REVIEW Credit fundamentals remain strong. Stable PCL ratio IAS 39 IFRS 9 PCLS ($MM) AND PCL RATIO ON IMPAIRED LOANS 46 bps 43 bps 42 bps 1, 2, 3 42 bps 41 bps 637 595 564 559 536 Q3/18 PCL ratio on impaired loans Q4/17 Q1/18 Q2/18 PCLs on impaired loans GILS 4,5,6 ($B) YEAR-OVER-YEAR HIGHLIGHTS . • PCLs1,2 on impaired loans of $637 million were up 14% Q/Q and 19% Y/Y o Higher retail provisions in International Banking were driven mainly by acquisitions PCL ratio1,2 on impaired loans was up 1 bp Q/Q and flat Y/Y The PCL ratio 1, 2 was 39 bps, down 1 bp Q/Q3 and down 3 bps Y/Y • Q4/18 5.3 5.0 5.1 5.1 4.9 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Excludes acquisition-related costs including Day 1 impact on acquired performing loans 4 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 5 As of Q1/18, R-G Premier is included in International Commercial and International Retail 6 Excludes impact of acquisitions in Q3/18 of $0.2B Scotiabank® | 16

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