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Investor Presentaiton

Q3 2017 Financial Performance $ millions, except EPS Net Income Diluted EPS Revenue Year-over-Year Highlights Net Income grew 7% Diluted EPS grew 8% Revenue up 4% Q3/17 Q/Q Y/Y $2,103 +2% +7% • $1.66 $6,894 +5% +2% +8% +4% Expenses $3,672 +2% +5% Productivity Ratio 53.3% -140bps +50bps Core Banking Margin 2.46% -8bps +8bps - PCL Ratio 45bps -4bps -2bps Dividends Per Common Share +$0.02 +$0.03 • +$0.02 . $0.76 $0.76 $0.74 $0.74 $0.72 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Announced dividend increase • Higher net interest income from asset growth in both Canadian and International Banking Growth in banking and wealth revenues and gains on sale of real estate Partly offset by lower net gains on investment securities, underwriting and advisory fees, and trading revenues Expense growth of 5% Investments in technology, digital banking, and other initiatives, higher employee-related costs and the impact of foreign exchange translation YTD operating leverage¹ of -0.5% or +0.6% on a TEB basis PCL ratio improved 2 bps - Higher retail provisions were mostly offset by lower non-retail provisions across all business lines ¹Adjusting for restructuring charge of $278 million after-tax ($378 million before-tax) in Q2/16 6 Scotiabank®
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