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Well-Diversified and Profitable Business

Canadian Household Credit Public policy changes are moderating growth in household credit Total household credit grew at 3.3% y/y in nominal terms in Q1 of 2019 vs 2008 peak of 12.4% y/y Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.) grew at 3.4% y/y in Q1 of 2019 vs > 5% in late-2017 • Mortgage credit grew at 3.2% y/y in Q1 of 2019 vs 2008 peak of 13% HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 25 %, 3-month moving average 25 25 %, 3-month moving average %, 3-month moving average 20 20 20 20 15 10 10 yly % change 5 m/m% change, SA 0 15 10 y/y % change 15 y/y % change 5 m/m % change, SA 0 10 m/m% 5 change, SA 0 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. -5 -5 -5 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. Scotiabank® 44
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