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Investor Presentaiton

International Banking 1 Net Income ($MM) 485 447 504 505 500 IIII • Year-over-Year Highlights Net Income up 12% • Strong loan, deposit and fee income growth in the Pacific Alliance Strong positive operating leverage • Partly offset by higher PCLS Loans up 13% and deposits up 19% Ex. FX translation, total loans were up 15% (Latin America was up 19%) and total deposits were up 20% NIM up 2 bps Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Average Assets ($B) Net Interest Margin (%) 143 145 135 128 129 4.77 4.67 4.70 4.69 4.57 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 (1) Attributable to equity holders of the Bank 11 PCL loss ratio up 31 bps Driven primarily by commercial provisions, including one account in Colombia Expenses up 11%, or up 6% excluding the impact of F/X translation and acquisitions Business volume and inflationary increases Operating leverage of +3.1% YTD Strong volume growth and positive operating leverage Scotiabank®
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