Investor Presentaiton

RISK REVIEW Credit fundamentals remain strong IAS 39 IFRS 9 PCLs ($MM) AND PCL RATIO ON IMPAIRED LOANS1, 2 49 bps 45 bps I 43 bps 46 bps 42 bps 587 573 536 564 595 Q2/17 Q3/17 PCLs on impaired loans GILS³, 4 ($B) Q4/17 Q1/18 PCL ratio on impaired loans Q2/18 5.4 4.9 4.9 5.0 5.1 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 . • YEAR-OVER-YEAR HIGHLIGHTS PCLs1,2 on impaired loans of $595 million were up 5% Q/Q and 1% Y/Y 。 PCLs increased due to higher International commercial provisions, mainly related to one previously impaired account impacted by the hurricane related events in Puerto Rico o Lower provisions in Canadian retail PCL ratio1, 2 on impaired loans was up 3 bps Q/Q and down 3 bps Y/Y • PCL ratio 1, 2 was 42 bps, flat Q/Q 。 PCLs on performing loans were lower by $41 million versus last quarter as provisions previously recorded for performing loans related to hurricanes in the Caribbean were offset by the increase in impaired loan provisions as discussed above. 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 loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 4 As of Q1/18, R-G Premier is included in International Commercial and International Retail ⑤Scotiabank® | 13

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