Investor Presentaiton

Risk Review . • . Overall credit fundamentals remain within expectations PCL ratio - Credit performance remains strong at 49 basis points, up 4 basis points Q/Q and down 15 basis points Y/Y Gross impaired loans of $5.4 billion up 3% Q/Q¹ • • Net impaired loan ratio was flat Q/Q at 0.49% Net formations of $807 million was up from $723 million in Q1/17, driven by International Commercial and Global Banking and Markets Market risk - Average 1-day all-bank VaR of $11.1 million, down from $12.0 million in Q1/17 No trading loss days in Q2/17 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G (1) Premier Bank of Puerto Rico. 13 Scotiabank®

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