Scotiabank Investment Thesis

International Banking Financial Performance Strong performance across the Pacific Alliance FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2 Reported YEAR-OVER-YEAR HIGHLIGHTS² Q2/19 Y/Y Q/Q • Revenue $3,356 +22% (1%) Expenses $1,710 +19% (3%) PCLS $628 +87% 31% Net Income $700 +2% (13%) Productivity Ratio 51.0% (150bps) (130bps) Net Interest Margin 4.58% (16bps) +6bps PCL Ratio³ 1.71% +49bps +43bps PCL Ratio on Impaired Loans³ Adjusted5 1.29% (9bps) +6bps • Expenses $1,677 PCLS $477 Net Income $787 +18% (3%) +42% 0% +14% (5%) Productivity Ratio 50.0% (210bps) (110bps) PCL Ratio³ 1.30% 1,5 +8bps +2bps ADJUSTED NET INCOME 10 ($MM) AND NIM4 (%) • 4.74% 4.70% 4.52% 4.52% 4.58% 805 787 • 715 746 683 Q2/18 Q3/18 1 Attributable to equity holders of the Bank Q4/18 Q1/19 Q2/19 • • Adjusted Net Income up 14% 。 Strong loan growth across the Pacific Alliance Revenues up 22% o Pacific Alliance up 28%, includes impact of acquisitions Loans up 29% o Pacific Alliance up 42% includes impact of Chile, Colombia and Peru acquisitions NIM down 16 bps 。 Primarily driven by the business mix impact of acquisitions (BBVA Chile) ONIM up 6 bps Q/Q Expenses up 18% o Includes impact of acquisitions 。 Business volume growth and inflation 。 Productivity ratio improvement of 210 bps5 Quarterly operating leverage of +5.0%5 PCL ratio on impaired loans³ improved 9 bps Strong growth in digital sales 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 3 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 4 Net Interest Margin is on a reported basis 5 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 25 Scotiabank® 25

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