International Retail Loans and Provisions

Risk Review . . • ● . Underlying credit fundamentals remain solid PCL ratio - Excluding impact of collective allowance in Q4/15, PCL ratio unchanged at 42 basis points Q/Q Coverage ratio rose to 85% from 84% last quarter, due to increase in collective allowance against performing loans Gross impaired loans of $4.7 billion were unchanged Q/Q, but up 11% Y/Y, mostly due to FX translation GIL ratio down 3bps Q/Q Net formations of $572 million was down from $647 million in Q3/15 Market risk remains well-controlled Average 1-day all-bank VaR of $13.1MM, up from $10.5MM in . Q3/15 13 Scotiabank®

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