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Investor Presentaiton

Canadian Economy and Financial System Canadian Economy The 15th largest economy in the world, with a large export orientation Economy is diversified, with a focus on services, manufacturing, primary and construction & utilities industries Manageable Canadian government deficits Proactive government and central bank Moderate growth forecast affected by slowdown in commodity sectors balanced by lower dollar stimulating exports in manufacturing and services sectors Strong Financial System Effective regulatory framework Principles based regime - - Single regulator for major banks Conservative capital requirements Proactive policies and programs Risk management practices - - - - Conservative lending standards Few sub-prime mortgages Relatively little securitization Primarily originate to hold model Canadian banks well capitalized and profitable Canadian Banking System ranked World's Soundest by World Economic Forum for 7th consecutive year Global Competitiveness Report (2014 - 2015) 10 Scotiabank®
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