Credit Performance Review

Q1 2019 Canadian Banking Financial Performance Strong deposit growth and higher NIM FINANCIAL PERFORMANCE AND METRICS ($MM)¹ Q1/19 Y/Y Q/Q . Reported Revenue $3,415 +3% (1%) Expenses $1,730 +8% (1%) PCLs $233 +11% +18% Net Income $1,073 Productivity Ratio 50.6% (3%) +200bps (10bps) (4%) Net Interest Margin 2.44% +3bps (1bp) PCL Ratio² 0.27% +2bps +4bps PCL Ratio on Impaired Loans² Adjusted³ 0.27% +5bps Expenses $1,709 +7% Net Income $1,089 Productivity Ratio 50.0% (2%) +160bps (5%) +50bps ADJUSTED NET INCOME 13 ($MM) AND NIM (%) 2.41% 2.43% 2.46% 2.45% 2.44% 1,107 1,022 1,141 1,146 1,089 Q1/18 Q2/18 1 Attributable to equity holders of the Bank Q3/18 Q4/18 Q1/19 YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income down 2%3 o Lower real estate gains and prior year Interac gain reduced net income by 4% Higher PCLs related to one commercial account o Includes the impact of acquisitions ○ Asset and deposit growth, margin expansion Revenue up 3% o Includes impact of acquisitions ○ Net interest income up 5% • Loan growth of 4% o Business loans up 10% o Residential mortgages up 3%; credit cards up 7% Deposit growth of 9% o Personal up 7%; Non-Personal up 12% NIM up 3 bps o Primarily driven by the impact of prior rate increases Expenses up 7%³ o Includes impact of acquisitions ○ Investments in technology and regulatory initiatives PCL ratio2 up 2 bps to 27 bps 2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 3 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® 17

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