Credit Performance Review

Canadian Banking Top 3 bank in personal & commercial banking, wealth and insurance in Canada • Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to Retail, Small Business, Commercial Banking, and Wealth Management customers Retail 56% REVENUE MIX1 $3.4B 18% Commercial Residential Mortgages 61% MEDIUM-TERM FINANCIAL OBJECTIVES Target² Q1/191,3,4 AVERAGE LOAN MIX 1 $342B Net Income Growth 5 7% + (2%) Productivity Ratio <49% 50.0% CB ex Wealth <45% 45.7% 26% Credit Cards 21% 16% Wealth <65% 63.4% Wealth Business and Government Loans Personal Loan New Primary Customers +1 MM +210,000 STRATEGIC OUTLOOK • Improved productivity towards our <49% productivity ratio target (<45% ex Wealth) by 2020 supported by higher revenue growth and mid-dingle digit expense growth. Integration of our recent acquisitions in Wealth: MD Financial Management ($49B AUM) and Jarislowsky Fraser ($40B AUM) Leverage data analytics for prudent growth in higher margin credit card and small business banking • Increase core deposits; increase primary customers towards our 1 million new primary customer goal 1 For the three months ended January 31, 2019; 2 3-5 year target; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18; 4 Reflects adoption of new accounting standard, IFRS 15; 5Attributable to equity holders of the Bank Scotiabank® 16

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