Earnings and Dividend Growth Report

Canadian Consumer Indebtedness Total household credit grew at 3.1% in annual nominal terms in Q2/20 vs the 2008 peak of 12.2% annually • Consumer loans excluding mortgages (i.e., cards, HELOCS, unsecured lines, auto loans, etc.) fell by 3.0% annually in Q2/20 vs growth of >5% in late 2017 Mortgage credit grew at 5.6% annually in Q2/20 vs 2008 peak of 13%. Lower five-year rates are driving a rebound in the pace of growth, as is strength of underlying demand HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 25 [%, 3-month moving average 20 15 y/y % change 10 110 5 m/m% change, SA 0 -5 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. 22 25 %, 3-month moving average 25 %, 3-month moving average 20 15 20 y/y% change 10 15 y/y % change 5 m/m% change, SA 5 0 10 -5 -10 m/m% change, SA -15 -20 -25 -5 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. 76

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