Investor Presentaiton

RISK REVIEW Credit fundamentals remain strong IAS 39 IFRS 9 PCLS ($MM) AND PCL RATIO ON IMPAIRED LOANS 1, 2, 3 45 bps 43 bps 42 bps 46 bps 41 bps 595 573 564 559 536 Q3/17 Q4/17 Q1/18 Q2/18 PCLs on impaired loans PCL ratio on impaired loans GILS4, 5, 6 ($B) Q3/18 YEAR-OVER-YEAR HIGHLIGHTS PCLs1,2 on impaired loans of $559 million were down 5% Q/Q and 4% Y/Y 。 Lower retail provisions in Canadian Banking o Recoveries in Global Banking and Markets 。 Partly offsetting were higher retail credit provisions in International Banking in line with volume growth PCL ratio 1,2 on impaired loans was down 5 bps Q/Q and down 4 bps Y/Y Excluding the Day 1 impact on acquired performing loans, the PCL ratio 1, 2 was 40 bps, down 2 bps Q/Q 5.3 5.1 5.0 4.9 4.9 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 1 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Excludes acquisition-related costs including Day 1 impact on acquired performing loans 4 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 5 As of Q1/18, R-G Premier is included in International Commercial and International Retail 6 Excludes impact of acquisitions in Q3/18; including acquisitions, GILs were $5.5B in Q3/18 Scotiabank® | 14

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