Well-Diversified and Profitable Business slide image

Well-Diversified and Profitable Business

Scotiabank in the Pacific Alliance Countries Well positioned for long-term growth in large, growing market Population 1,2 Government Presidential Elections Financial Stability Economy GDP1 Exports5 Trade Partners 5 Business Environment HDI Score Rank6 Banking Penetration1 Foreign Direct Investment1 Key Highlights of Pacific Alliance countries (PACS) •230 million. 6.2x Canada's population. Projected growth outpaces Canada, other EM³ and G7 countries; median age 4 of 29 No elections scheduled until 2021 All sovereign credit ratings in IG category with central banks' policy targeting inflation since 1999 ⚫9th largest economy in the world 64% of exports related to manufacturing US, China and Canada are the PACs' largest trading partners, representing 72% of exports • Rank "High" or "Very High" (United Nations, 2017) Under-banked with average banking penetration at ~50% compared to over 90% in Canada and the U.S. FDI averaging 3.2% of GDP compared to 1.7% in Canada and the U.S. -- Mexico Scotiabank Market Share? Market Share Ranking? 7.1% 6th Peru 17.7% 3rd Chile 14.0% 3rd Strengths Auto and mortgages Commercial, personal and Mortgages Commercial, personal and Mortgages Colombia 6.2% 5th Credit Cards and PACS (Total/Average) 11.5% 4th Well positioned personal Average Total Loans ³ (C$B) $28.1 $20.5 $45.6 $12.2 $106.3 Revenue (C$B) $0.6 $0.6 $0.6 $0.4 $2.2 Net Income after NCI 9, 10 (C$MM) $182 $212 $135 $39 $567 ROE 9,10 25% 28% 9% 10% 16% # of Employees 11,12 13,214 11,080 9,257 9,689 43,240 1 Source: World Bank 2017 2 Population growth: World Bank Data Bank 2017-2022 3 EM countries include: Argentina, Brazil, China, Greece, India, Indonesia, Poland, South Africa, Turkey, and Russia 4 Source: The World Factbook, CIA 2017 5 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co- operation and Development (OECD) 2016 6 Human Development Index. Source: United Nations Development Programme (UNDP) 2017. For more information, please refer to: http://hdr.undp.org/sites/default/files/2018_human_development statistical_update.pdf 7 Ranking based on publicly traded banks by total loans market share as of December 2018 8 Average loan balances over Q1/19 9. For the quarter ended January 31, 2019 10 Earnings adjusted for acquisition-related costs including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 11 Employees are reported on a full-time equivalent basis 12 As of January 31, 2019 13 May not add due to rounding Scotiabank® 25
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