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Investor Presentaiton

Global Banking and Markets Net Income ($MM) 517 469 461 441 421 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 · • • • Year-over-Year Highlights Net Income up 5% Driven mainly by higher contributions from equities and the Canadian, U.S, and European lending businesses Partly offset by lower results in fixed income, Asian lending and investment banking, as well as higher regulatory costs Revenue down 3% PCL ratio improved by 8 bps, driven by lower provisions in energy - PCL ratio increased 10 bps Q/Q, largely related to one account Expenses up 5% Higher expenses related to regulatory initiatives Positive YTD operating leverage of 3% Average Loans² ($B) Net Interest Margin³ (%) • 81 81 82 80 82 1.78 1.72 1.75 1.76 1.63 10 Higher contributions from equities and improved credit performance Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 (1) (2) (3) Attributable to equity holders of the Bank Average Business & Government Loans & Acceptances Corporate Banking only Scotiabank®
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