Q3 2014 Overview

Credit Quality Credit fundamentals remain strong - - Modest increase in PCL ratio - up 1 bps Q/Q to 37 bps Loss rate in Canadian Banking up slightly Q/Q International Banking loss rate was up Q/Q due to higher retail and commercial provisions in Latin America and the Caribbean and Central America GBM credit performance continues to be strong Decrease in net formations of impaired loans to $477 million - - Lower formations largely across all divisions Market risk remains well-controlled - Average 1-day all-bank VaR: $21.5MM vs. $18.1MM in Q2/14 One trading loss day in Q3/14 15 Scotiabank PCL Ratios (Total PCL as % of average loans & BAs) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Canadian Banking Retail 0.17 0.17 0.19 0.22 0.22 Commercial 0.06 0.13 0.20 0.16 0.18 Total 0.16 0.17 0.19 0.21 0.22 International Banking Retail 2.06 1.93 2.08 2.11 2.16 Commercial 0.11 0.25 0.20 0.21 0.23 Total 0.84 0.87 0.87 0.91 0.95 Global Wealth & Insurance 0.05 0.01 0.07 Global Banking & Markets Corporate Banking 0.12 (0.02) 0.03 0.05 0.01 All Bank 0.31 0.31 0.34 0.36 0.37 Note: International Banking's total includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the maturity of the acquired portfolio. See page 28 of the 2013 Annual Report. 16 Scotiabank 8

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