International Banking - Annual Overview

CANADIAN BANKING – QUARTERLY - Strong loan growth, margin expansion and positive operating leverage FINANCIAL PERFORMANCE AND METRICS¹ ($MM) Q4/17 Y/Y Q/Q Revenue $3,265 +5% Expenses $1,629 +1% PCLS $218 -3% Net Income $1,067 +12% +2% Productivity Ratio 49.9% -190bps -10bps Net Interest Margin 2.41% +2bps PCL Ratio 0.27% -1bp -1bps . NET INCOME¹ ($MM) AND NIM (%) 2.39% 2.39% 2.38% 2.41% 2.41% • 1,045 1,067 • 954 981 971 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 1 Attributable to equity holders of the Bank 2 Adjusted for the Tangerine run-off mortgage portfolio · YEAR-OVER-YEAR HIGHLIGHTS Net income up 12% 。 +7% was attributed to the HollisWealth gain Strong asset and solid deposit growth Loan growth of 6%, or 7%, adjusting for the Tangerine run-off mortgage portfolio o Residential mortgages up 6%² o Business loans up 13% Deposits up 3% NIM up 2 bps Driven by rising rate environment and changes in business mix PCL ratio improved by 1 bp Expenses up 1% 。 Higher investments in digital and technology o Partially offset by savings realized from cost reduction initiatives and lower expenses from the sale of HollisWealth Operating leverage of +2.9% for the year Scotiabank 18

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