Investor Presentaiton

Back to Table of Contents AIRB Credit Losses Exposure Type Rate Q2 2023 Revised Basel III Actual Loss Expected Loss Rate Q1 2023 Basel III Q4 2022 Basel III Q3 2022 Basel III Actual Loss Rate Expected Loss Rate Actual Loss Rate Expected Loss Rate Actual Loss Rate Expected Loss Rate % % % % % % % % Non-Retail (1)(3) Corporate (4) Sovereign Bank (2)(3) Retail Real Estate Secured QRRE Other Retail 0.02 0.33 0.04 0.36 0.03 0.37 0.04 0.34 0.02 0.41 0.05 0.37 0.01 0.44 0.05 0.46 Q2 2022 Basel III Expected Loss Rate Actual Loss Rate % % 0.03 0.50 0.06 0.42 0.09 0.08 0.01 0.08 0.08 0.08 1.57 0.33 2.82 1.41 2.14 2.98 2.03 2.86 1.92 2.89 1.79 3.03 0.33 1.44 0.33 1.36 0.34 1.38 0.39 1.38 (1) Non-retail actual loss rates represent the credit losses net of recoveries for the current and prior three quarters divided by the 5-point average of outstanding loan balances for the same four-quarter period beginning 12 months ago. Expected loss rates represent the expected losses that were predicted at the beginning of the four-quarter period divided by outstanding loan balances at the beginning of the four-quarter period. (2) Retail actual loss rates represent write-offs net of recoveries for the current and prior three quarters divided by the 5-point average of outstanding loan balances for the same four-quarter period beginning 12 months ago. Expected loss rates represent the expected losses that were predicted at the beginning of the four-quarter period divided by outstanding loan balances at the beginning of the four-quarter period. (3) Expected losses are calculated using "through the business cycle" Basel risk parameters (PD, LGD, and EAD) on AIRB portfolio, which are estimated to include a long term time horizon. Actual losses are a "point in time" representation and reflect the current economic conditions. During an economic downturn PCL on impaired loans may exceed expected losses, and may fall below expected losses during times of economic growth. (4) Actual Loss Rate for Corporate class in Q3, 2022, represents high recoveries made during the quarter. Scotiabank Supplementary Regulatory Capital Disclosure Page 84 of 88

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