Global Wealth Management and Banking Overview

Q4 2018 Global Banking and Markets Financial Performance Solid loan growth, strong credit quality and lower productivity ratio FINANCIAL PERFORMANCE AND METRICS ($MM) YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income up 6% Loans up 7% o U.S. loans up 13% NIM down 16 bps Q4/18 Y/Y Q/Q • Revenue $1,073 (1%) (3%) • Expenses $553 (3%) +2% PCLS ($20) N/A N/A Net Income $416 Productivity Ratio 51.5% Net Interest Margin PCL Ratio², 3 PCL Ratio on Impaired Loans², 3 (0.09%) (0.07%) +6% (6%) (80bps) +260bps 1.72% (16bps) (10bps) (13bps) (4bps) (11bps) (1bp) • • PCL ratio², 3 improved by 13 bps 。 Mainly driven by lower deposit and lending margins Expenses down 3% Productivity ratio improved 80 bps NET INCOME AND ROE 14.9% 16.2% 16.9% 15.6% 15.3% 447 441 454 416 391 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 Attributable to equity holders of the Bank 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures o Impaired loan provision reversals in Europe Scotiabank® 28

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