Investor Presentaiton

Global Banking and Markets Financial Performance Recovery versus Q1 from higher revenue and better expense management FINANCIAL PERFORMANCE AND METRICS ($MM) YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income down 6% Y/Y, up 25% Q/Q Revenue flat 。 Net interest income down 3% due to lower deposit margins partly offset by higher loan volumes Q2/19 Y/Y Q/Q Revenue $1,151 +7% Expenses $594 +5% (8%) • PCLs ($6) N/A N/A Net Income Productivity Ratio $420 51.6% (6%) +25% +270bps (840bps) Net Interest Margin PCL Ratio² 1.70% (10bps) (10bps) (0.02%) +3bps +5bps PCL Ratio on Impaired Loans² (0.02%) (4bps) (1bp) • Loans up 16% 。 Non-Interest income up 1% from higher fixed income trading, underwriting and credit fees, partly offset by lower equity trading revenues NIM down 10 bps 。 Mainly driven by lower deposit margins NET INCOME AND ROE 16.9% 15.6% 15.3% 15.2% 11.5% 447 441 416 335 Q2/18 420 Q3/18 Q4/18 Q1/19 Q2/19 1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 。 Strong corporate growth across the U.S. and Canada Expenses up 5% o Higher regulatory and technology investments, partly offset by lower performance-related compensation PCL ratio² continues to be a recovery Scotiabank® 28

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