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Investor Presentaiton

Energy Exposures¹ . . • Committed to our guidance of a cumulative PCL ratio of less than 3%² since 2015 . • Cumulative PCL ratio of 2.1% as of Q2/172 Risk of loss has declined in this sector Drawn corporate energy exposure of $14.6 billion increased 0.5% Q/Q³ • Approximately 52% investment grade Undrawn commitments of $12.4 billion increased 12% Q/Q³ Approximately 68% investment grade • Focus on select non-investment grade E&P and Services accounts • Approximately two-thirds of focus accounts have issued debt ranking below the Bank's senior position (1) (2) (3) Exposures relate to loans and acceptances outstanding as of April 30, 2017 and to undrawn commitments attributed/related to those drawn loans and acceptances. Cumulative PCL ratio by sector is calculated as total PCLs over the period Q1/15 - Q2/17 divided by the average quarterly exposure over the period Q1/15 - Q2/17. Quarter-over-quarter impact is calculated on a constant currency basis. 25 Scotiabank®
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