2018 Financial Performance

Stable Economic Fundamentals Low unemployment rate reflects solid growth in Canadian economy UNEMPLOYMENT RATE 14 12 10 8 6 4 2 0 Canada - official US Canada comparable to US 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through October 2018. • . Strengthening economic growth and a gradual rebound in non-energy exports Household spending remains buoyant, underpinned by relatively low and stable. unemployment, as well as low borrowing costs Population and labour force growth supported by increasing immigration • Stable inflation within Bank of Canada target band HEADLINE INFLATION CO 6 A Canada Bank of Canada Target Inflation Band LABOUR FORCE PARTICIPATION RATE 70 68 Canada (%) 222 % 66 64 62 US -2 60 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through September (Canada) and October 2018 (US). US 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through October 2018. Scotiabank® 53

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