Scotiabank Investor Day Summary

DETAILS: CANADIAN LEGISLATIVE COVERED BONDS (CMHC REGISTERED) • Canadian Registered Covered Bond Programs' Legal Framework (Canadian National Housing Act) Issuance Framework Eligible Assets Mortgage LTV Limits • Canadian Registered Covered Bond Programs Guide issued by Canada Mortgage and Housing Corporation (CMHC) Uninsured loans secured by residential property in Canada LTV limit of 80% Starting in July 2014, issuers are required to index the value of the property underlying mortgage loans in the covered pool while performing various tests Securities issued by the Government of Canada • Basis for Valuation of Mortgage Collateral Substitute Assets • Repos of Government of Canada securities having terms acceptable to CMHC • Substitute Assets Limitation . Cash Restriction Coverage Test • . Credit Enhancement • • 10% of the aggregate value of (a) the loans (b) any Substitute Assets and (c) all cash held by the Guarantor The cash assets of the Guarantor cannot exceed the Guarantor's payment obligations for the immediately succeeding six months Asset coverage Test Amortization Test Overcollateralization Reserve Fund Prematurity Liquidity Covered bond swap, forward starting Swaps • Interest rate swap, forward starting Valuation calculation Market Risk Reporting • Mandatory property value indexation Covered Bond Supervisory Body Requirement to Register Issuer and Program • CMHC Yes; prior to first issuance of the covered bond program Registry Disclosure Requirements • Yes Monthly investor report with prescribed disclosure requirements set out by CMHC Investor reports must be posted on the program website Required to meet applicable disclosure requirements in Canada, the U.S. and UK Scotiabank 68

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