Financial Performance and Funding Strategy

Canada Stable Economic Fundamentals - Low unemployment rate reflects solid growth in Canadian economy UNEMPLOYMENT RATE 14 12 10 6 4 2 0 Canada - official U.S. Canada comparable to U.S. 90 92 94 96 98 00 02 04 06 08 10 12 15 17 19 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through April 2019. • . Solid economic growth and a gradual rebound in non-energy exports Household spending remains buoyant, underpinned by relatively low and stable unemployment, as well as low borrowing costs Population and labour force growth supported by increasing immigration Moderate inflation within Bank of Canada target band HEADLINE INFLATION 6 Canada Bank of Canada Target Inflation Band м U.S. -2 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through March 2019 (Canada) and April 2019 (US). (%) LABOUR FORCE PARTICIPATION RATE 60 64 62 22 22% 70 68 66 Canada U.S. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through April 2019. Scotiabank® 40 40

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