Investor Presentaiton

PCL RATIOS Strong credit quality; PCLS on impaired loans reflect International Banking acquisitions TOTAL PCLS ($MM) AND PCL RATIO¹ 47 bps 40 bps 39 bps YEAR-OVER-YEAR HIGHLIGHTS 48 bps 51 bps • 722 713 688 590 539 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Total PCL ratio 2.00% Total PCLS ($MM) HISTORICAL PCL RATIO ON IMPAIRED LOANS1 Total PCL ratio1, 2 was 48 bps, down 3 bps Q/Q, but up 8 bps Y/Y 。 PCL on impaired loans¹ of $776 million up 11% Q/Q, and 39% Y/Y primarily due to volume growth and acquisitions in International Banking o PCL on performing loans 1,2 of -$63 million down $85 million Q/Q and down $43 million Y/Y due to more favourable macro-economic trends (FLI) in International Banking and improving credit quality PCL ratio on impaired loans¹ of 52 bps reflecting the impact of acquisitions in International Banking 1.50% 1.00% 0.50% 0.00% ttttt 1990 1991 1992 1993 1994 1995 1996 1997 1 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 2 Excludes acquisition-related costs including Day 1 impact on acquired performing loans PCL Ratio on Impaired Loans 2002: Included $454 million related to the Bank's exposure to Argentina 2009: Higher PCLs driven by economic conditions, event distributed across business lines. Higher general allowance and sectoral allowance (automotive related) 2003 2004 2005 2009 2010 2011 2012 2013 Historical Average - PCL Ratio on Impaired Loans Historical Average: 46 bps 2014 2015 2016 2017 2018 2019 YTD Scotiabank. | 13

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