International Retail Loans and Provisions

2016 Business Line Outlook Expect continued solid loan growth in 2016 driven by retail mortgages, auto lending, commercial loans and credit cards Canadian Banking International Banking Wealth management is expected to see continued good growth rates in 2016 Higher PCL ratio, reflecting mix, but expect margin to grow faster than PCLs Expense management will continue to be an area of focus Key priorities include: Improve customer experience, enhance business mix, expand Tangerine, grow and diversify Wealth Management and reduce structural costs Momentum of asset growth from 2015 is expected to continue in 2016, with stable margin and credit quality Optimize structure to deliver a strong customer experience and positive operating leverage Focus on building relevance and presence in the Pacific Alliance through combination of organic growth, strategic alliances and partnerships and acquisitions Key priorities include: Improving our retail customer experience, invest in Mexico to drive growth, target higher profitability business across the Pacific Alliance countries and streamline our operational infrastructure Global Banking and Markets Expect improved performance in 2016 driven by a more balanced contribution across our diversified business platform Expect solid growth in corporate loans with stable loan spreads, strong credit quality and modest PCLs. Increased contribution from Latin America as we continue to capitalize on the Bank's strong regional presence. Repositioning Asia to help drive future growth Key priorities include: Enhancing customer focus, leveraging our global footprint, strengthening our data and analytics capabilities, focusing on strategic sectors and improving efficiency and effectiveness 17 Scotiabank®

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