Fiscal 2018 Financial Performance

CANADIAN BANKING Solid asset and deposit growth, margin expansion and positive operating leverage4 FINANCIAL PERFORMANCE AND METRICS ($MM)¹ Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS Q4/18 Reported • Revenue $3,443 +5% +2% Expenses $1,747 +7% +5% • PCLS $198 (9%) +9% Net Income $1,115 +4% (1%) Productivity Ratio 50.7% +80bps +150bps Net Interest Margin 2.45% +4bps (1bp) PCL Ratio², 3 0.23% (4bps) +2bps PCL Ratio on Impaired Loans2, 3 0.22% (5bps) +1bp Adjusted4 Expenses $1,705 +5% +4% Net Income $1,146 +7% Productivity Ratio 49.5% (20bps) +70bps · ADJUSTED NET INCOME 14 ($MM) AND NIM (%) 2.41% 2.41% 2.43% 2.46% 2.45% . • Adjusted Net Income up 7%4 。 Asset and deposit growth, margin expansion Revenue up 5% 。 Net interest income up 6% Loan growth of 5% o Business loans up 13% o Residential mortgages up 3%; credit cards up 7% Deposit growth of 6% 。 Personal up 5%; Non-Personal up 7% NIM up 4 bps 。 Rising rate environment and improved business mix Expenses up 5%4 Investments in technology and regulatory initiatives 。 Full-year productivity ratio improvement of 90bps4 Full-year operating leverage of +1.9%4 PCL ratio² 3 improved by 4 bps due to lower retail PCLs 1,073 1,107 1,022 1,141 1,146 Q4/17 Q1/18 1 Attributable to equity holders of the Bank Q2/18 Q3/18 Q4/18 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 4 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank® | 11

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