Fourth Quarter 2018 Investor Presentation

Q4 2018 Global Banking and Markets Financial Performance Solid loan growth, strong credit quality and lower productivity ratio FINANCIAL PERFORMANCE AND METRICS ($MM) YEAR-OVER-YEAR HIGHLIGHTS Q4/18 Y/Y Q/Q • Revenue $1,073 (1%) (3%) • Expenses $553 (3%) +2% PCLS ($20) N/A N/A Net Income Productivity Ratio $416 51.5% Net Interest Margin PCL Ratio², 3 (0.09%) +6% (6%) (80bps) +260bps 1.72% (16bps) (10bps) (13bps) (4bps) (1bp) • • PCL Ratio on Impaired Loans², 3 (0.07%) (11bps) 1 NET INCOME AND ROE Reported Net Income up 6% Loans up 7% o U.S. loans up 13% NIM down 16 bps 。 Mainly driven by lower deposit and lending margins Expenses down 3% Productivity ratio improved 80 bps PCL ratio², 3 improved by 13 bps o Impaired loan provision reversals in Europe 16.2% 14.9% 16.9% 15.6% 15.3% 447 441 454 416 391 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 Attributable to equity holders of the Bank 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures Scotiabank® 27 27

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