Why Invest in Scotiabank?

Growth in Household Credit • Total household credit, in annual nominal terms, has slowed considerably since the 2007 peak of 13.4% y/y. However, the Q4-2020 growth of 4.9% y/y surpassed the average of the previous four quarters • Consumer loans excluding mortgages (i.e., cards, HELOCS, unsecured lines, auto loans, etc.) fell by 1.1% y/y in Q4-2020. Consumer loan growth has trended downward since late-2000 highs of over 16% y/y, with recent months' negative growth induced by consumer spending pullbacks Mortgage credit grew at 7.1% y/y in Q4-2020 vs the 2007 peak of 13.7% y/y. Underlying demand. coupled with lower five-year rates drove a rebound in the pace of growth 20 20 Household Credit Growth [%, 3-month moving average 15 yly% change 10 10 m/m% 5 change, SA T 01 03 05 07 09 11 13 15 Sources: Scotiabank Economics, Statistics Canada. 15 10 2205 0 Consumer Loan Growth -5 -10 %, 3-month moving average y/y % change Residential Mortgage Growth 20 %, 3-month moving average 15 yly% change 10 m/m% change, SA 5 m/m% change, SA -15 0 17 19 21 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. 66 99

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