#1Investor Presentation Third Quarter 2019 Scotiabank®#2CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, our public communications often include oral or written forward- looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2018 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "foresee," "forecast," "anticipate," "intend," "estimate," "plan," "goal," "project," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would" and "could." By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; changes to our credit ratings; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; disruptions in or attacks (including cyber- attacks) on the Bank's information technology, internet, network access, or other voice or data communications systems or services; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2018 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2018 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. Scotiabank®#3TABLE OF CONTENTS Scotiabank Overview . • • • • . Canada's International Bank Well-Diversified and Profitable Business Medium-Term Financial Objectives Why Invest in Scotiabank? Increasing Scale, Improving Focus, Lowering Risk Track Record of Earnings and Dividend Growth Strong Capital Generation • Strong Progress in Digital Banking Environmental, Social & Governance (ESG) Business Line and Financial Overview Financial Performance • Canadian Banking • International Banking Global Banking and Markets • Credit Performance by Business Lines • Historical PCL Ratios on Impaired Loans Canadian Retail: Loans and Provisions International Retail: Loans and Provisions Treasury and Funding . • Funding Strategy Wholesale Funding Composition . Deposit Overview • Wholesale Funding Utilization Liquidity Metrics Appendix 1: Key Market Profiles Appendix 2: Canadian Housing Market Appendix 3: Bail-in and TLAC Appendix 4: Covered Bonds Appendix 5: Additional Information Contact Information 456789 T 10 11 12 13 15 22 56 16 17 24 27 29 30 31 32 33 33333 34 35 36 37 38 39 49 56 60 64 66 Scotiabank®#4Scotiabank Overview Scotiabank#5Canada's International Bank Top 10 Bank in the Americas 1,2 Americas 7th largest bank by assets¹ 9th largest bank by market capitalization¹ Full-Service Canada Mexico Peru • Chile Colombia Caribbean Uruguay Wholesale Operations USA UK Hong Kong Singapore Australia Ireland China • Brazil South Korea Malaysia India • Japan 2018 Bank of the Year Latin America and the Caribbean by Latin Finance Europe FY 2019 Scotiabank³ Q3 YTD Change YTD/YTD Revenue $23.2B +9% Net Income $7.0B +3% Return on Equity 13.9% -130 bps Operating Leverage4 -1.2% n.a. Productivity Ratio 52.7% +160 bps Total Assets $1.1T +12.7% Ranking by Market Share 5 Canada #3 USMCA USA Top 10 Foreign Bank Asia Mexico #6 PAC Peru Chile #3 Colombia 36 ## #3 #6 1 Source: Bloomberg August 21, 2019; 2 By assets and market capitalization; 3 Figures adjusted for Acquisition and divestiture-related amounts, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net loss on divestitures and related costs; 4 Exclude employee benefits re-measurement credit of $203MM pre-tax, $150MM after-tax in Q1/18; 5 Ranking based on market share in loans as of June 2019 for PACs (incl. M&A), as of May 2019 in Canada for publically traded banks; 6 For the nine months ended July 31, 2019 LEADING BANK IN THE AMERICAS Earnings by Geography3.6 Other C&CA 8% 9% PAC 24% 9% 50% Canada U.S.A. Americas (~90%) Scotiabank. LO 5#6Well-Diversified and Profitable Business Diversified by business and by geography, providing stability and lowering risk. Earnings by Business 1,2,3 Earnings by Geography 1.2 * Caribbean and Central America Global Banking and Markets 17% Global Wealth Management 13% Canadian Colombia 2% Banking P&C 2019 YTD 38% EARNINGS MIX $6.9B3 International Banking P&C 32% C&CA* 9% Other 8% Chile 6% Peru 9% Mexico 2019 YTD EARNINGS MIX $6.9B3 7% U.S. 9% Adjusted Return on Equity 1.2 by Division 18.7% 13.9% 13.1% 13.9% Canadian Banking International Banking Global Banking and Markets All Bank Canada 50% 1 Net income attributable to equity holders or for the nine months ended July 31, 2019; 2 Figures adjusted for Acquisition and divestiture-related amounts, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net loss on divestitures and related costs; 3 Excluding Other segment GREATER SCALE, GREATER FOCUS Scotiabank. CO 6#7Medium-Term Financial Objectives1 METRICS ALL BANK EPS Growth OBJECTIVES Q3/19 RESULTS 2 (YTD/YTD Change) 7% + ROE 14% + Flat 13.9% Operating Leverage³ Positive (1.2%) Capital Strong Levels 11.2% (11.7% pro-forma announced divestitures) Dividend Payout Ratio 40%-50% 48.5% BUSINESS LINE CANADIAN BANKING Net Income Growth Productivity Ratio 7%+ +1.7% <49% 49.4% INTERNATIONAL BANKING Net Income Growth 4 Productivity Ratio 9% + <51% +15.0% 50.5% 13-5 year objectives. 2 Figures adjusted for Acquisition and divestiture-related amounts, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net loss on divestitures and related costs; 3 Excludes employee benefits re-measurement credit of $203MM pre-tax, $150MM after-tax in Q1/18; 4On a constant dollar basis Scotiabank® 7#8Why Invest in Scotiabank? ☑ Canada's international bank and a top 10 bank in the Americas Diversified exposure to high quality growth markets Increasing scale and market share in key markets Improving quality of earnings. while reducing risk profile Enhancing competitive advantage in technology and talent . • Unique footprint provides diversification with growth Strong balance sheet, capital and liquidity ratios • Attractive dividend yield, return on equity and valuation • • • Leading Canadian banking franchise Leading bank in the Pacific Alliance growth markets of Mexico, Peru, Chile and Colombia Earnings growth in personal & commercial, wealth, and wholesale businesses Gaining market share in key markets of Canada, the U.S. and the Pacific Alliance countries. Lowering operational risk with more focused footprint Top 3 bank in Canada, Chile and Peru Increasing scale in Wealth Management and Pacific Alliance with $7B of strategic acquisitions since 2018 > 80% of earnings from core personal and commercial banking businesses. >80% of earnings from 6 key markets • Exited 21 countries and 11 businesses since 2013 Strong Canadian risk management culture - building stronger capabilities for AML and cybersecurity Leading levels of technology investment supports digital banking strategy. Increasing digital sales and adoption with clear targets Well positioned in the Pacific Alliance to leverage technology, risk management, and funding versus local and global competitors • Named to Top 25 "World's Best Workplaces" (2018) Scotiabank. 8#9Increasing Scale, Improving Focus, Lowering Risk¹ Gaining scale in key markets to drive earnings growth, improve earnings quality and reduce risk Gaining Market Share (Total Loans) Canada Mexico Q3/14 Q3/19 0 2 4 6 8 10 12 14 16 18 20% Increasing Scale with Strategic Acquisitions (2017-2019) MD Canada Chile MD Financial Management JARISLOWSKY FRASER GLOBAL INVESTMENT MANAGEMENT BBVA Adds wealth management assets of $96B. Adds 110,000 potential primary customers. Doubles market share. Creates 3rd largest bank. Creates 2nd largest bank in credit cards. Chile Peru Colombia Improving Earnings Quality Increased Wealth Management assets under management by 44% to $297B Targeting Wealth Management earnings contribution to All- Bank earnings of 15% over the medium-term Establishing Global Wealth Management as a standalone reporting division in Q1/20 15-year period 2014-2019; 2 Q4 2017 to Q3 2019 INCREASING SCALE, IMPROVING FOCUS Peru banco cencosud Colombia Citibank Creates market leader in credit cards. Dominican Republic Doubles customer base. Creates 4th largest bank. PROGRESO... Reducing Risk Profile 54 countries 33 countries 2013 2019 Between 2013 and 2019, exited 21 countries with either low returns, small scale or higher operational risk, including: • Turkey Russia • Haiti ⚫ Egypt Taiwan UAE⚫ 15 others • Exited 11 non-core businesses Reduced wholesale funding (% of assets) from 29.6% in 2014 to 23.1% • Scotiabank® 6#10Strong Track Record of Earnings and Dividend Growth Stable and predictable earnings with steady increases in dividends Earnings per share (C$) 1.2 Total shareholder return³ $3.05 +9% CAGR $7.11 Scotiabank ■Big 5 Peers (ex. Scotiabank) 11.5% 12.0% 11.8% 8.4% 8.8% 3.4% 08 09 10 11 12 13 14 15 16 17 18 5 Year 10 Year 20 Year Dividend per share (C$) $1.96 09 +6% CAGR $3.49 10 11 12 13 14 15 16 17 18 19 1 Reflects adoption of IFRS in Fiscal 2011 2 Excludes notable items for years prior to 2016. For 2016 onwards, results adjusted for acquisition-related costs including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions and amortization of intangibles related to current and past acquisitions. 3 As of July 31, 2019 INCREASING SCALE, IMPROVING FOCUS Scotiabank® 10#11Strong Capital Generation Clear path to higher capital ratio CET1 Ratio ~50 bps 11.7% +3 bps 11.2% 11.1% +33 bps -17 bps -4 bps -9 bps -2 bps Q2/19 Earnings Less Dividends RWA Impact (ex. FX) Share Buybacks (Net of Issuances) Pension Re-Measurement Puerto Rico Q3 Impact Other Including FX Q3/19 Reported Impact of Announced Divestitures Q3/19 Pro-Forma Internal Generation Strong Capital Levels 14.5% 1.7% 1.4% 14.3% 14.6% 14.7% 14.8% 1.8% 2.1% 2.2% 2.5% 1.4% 1.4% 1.4% 1.1% 11.4% 11.1% 11.1% 11.1% 11.2% Q3/18 Q4/18 Q1/19 Q2/19 CET1 Tier 1 Tier 2 Q3/19 Scotiabank. 11#12Strong Progress in Digital Banking Progressing well against 2018 Investor Day digital targets • Digital Retail Sales1 +1,700 bps 15 11 22 28 F2016 F2017 F2018 Q3/19 Goal >50% Strong progress made across key markets; Key highlight: Chile surpassed the 50% mark in Q3/19 Digital Adoption² +1,100 bps In-Branch Financial Transactions³ -1,000 bps 37 26 33 23 29 20 26 16 F2016 F2017 F2018 Q3/19 F2016 F2017 F2018 Q3/19 • Goal >70% Adoption grew 600 bps against Q3 of last year 1 Canada: F2017 22%, F2018 26%, Q3/19 30% 2 Canada: F2017 36%, F2018 38%, Q3/19 42% 3 Canada: F2017 17%, F2018 15%, Q3/19 13% PACS: F2017 13%, F2018 19%, Q3/19 27% PACS: F2017 20%, F2018 26%, Q3/19 32% PACS: F2017 29%, F2018 24%, Q3/19 19% . Goal <10% In-branch transactions continued to decline at a steady pace Scotiabank. 12#13Environmental, Social & Governance (ESG) Environmental Issued inaugural USD 500 million 3.5- year Green Bond to support renewable energy, clean transportation and green buildings $8.5 billion in loans and credit facilities to the renewable energy sector in 2018 Established internal price on carbon, and on-track to achieve greenhouse gas reduction target of 10% by 2021 Began integrating recommendations from the Task Force on Climate- related Financial Disclosures in 2018 and have reported to the CDP since 2004 New approach to working at our head office in Toronto, Canada has reduced square feet per employee by 40%, and expected to reduce paper use by 86% . • • Social Launched the Scotiabank Women Initiative to advance women-led businesses through access to capital, education and mentorship ~35% of VP+ roles and Executive positions held by women $250 million committed over 10 years to help employees adapt to the digital economy Joint Lead Manager on $1 billion World Bank Sustainable Development Bond to support women and youth First Canadian bank to adopt both the UN Global LGBTI Standards for Business and the UN Women's Empowerment Principles Employees volunteered >370,000 hours in 2018 to local causes >$80 million donated to communities in 2018 with 70% directed towards helping young people in the community • Governance First financial institution in Canada to establish a Corporate Governance Office (2014), with a direct reporting line to the Chair of the Board Updated our Human Rights Statement in 2019, signed by our President and CEO Approved robust equity ownership requirements for directors in 2003. These have been reviewed annually and now include additional common share ownership obligations Established an independent Chair in 2004 Established term limits for directors in 2011 Established a Board diversity policy in 2013. 38% of directors are female Adopted strict policies on director interlocks and overboarding, which are reviewed annually Scotiabank® 13#14Environmental, Social & Governance (ESG) UN GLOBAL COMPACT Member of the Dow Jones Sustainability North America Index Top 1% of global financial institutions for corporate governance (top 10% of banks overall) Top 100: 2019 Bloomberg Gender-Equality Index and Thomson Reuters Diversity & Inclusion Index One of the World's Best Workplaces in 2018 by Great Place to Work Scotia Global Asset Management is a signatory to the Principles for Responsible Investment MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM < SAM Sustainability Award Industry mover 2019 United Nations UN Global Compact WOMEN E TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES 2019 SAM Sustainability Award Bronze Class 2019 Bloomberg Gender-Equality Index TOP 100 COMPANY 2018 Thomson Reuters Diversity & Inclusion Index Principles for Responsible SUSTAINABLE DEVELOPMENT GOALS FINANCE UNEP INITIATIVE PRI Investment CDP DRIVING SUSTAINABLE ECONOMIES EQUATOR PRINCIPLES CP CARBON PRICING LC LEADERSHIP COALITION Scotiabank® 14#15Appendix 1: Business Line and Financial Overview Scotiabank#16Financial Performance Strong revenue and balance sheet growth. $MM, except EPS Q3/19 Y/Y Q/Q Reported Net Income $1,984 +2% (12%) Diluted EPS $1.50 (3%) (13%) Revenue $7,659 +7% (2%) Expenses $4,209 +12% +4% Productivity Ratio 55.0% +250bps +320bps Core Banking Margin 2.45% (1bp) PCL Ratio 1 48bps (21bps) PCL Ratio on Impaired Loans 1 52bps +11bps (13bps) +3bps Adjusted² Net Income $2,455 +9% +8% Diluted EPS $1.88 +7% +11% Revenue $7,965 +11% +4% Expenses $4,122 Productivity Ratio PCL Ratio 1 51.7% 48bps +11% (10bps) (60bps) +8bps +3% (3bps) DIVIDENDS PER COMMON SHARE 0.03 0.02 0.03 0.85 0.85 0.87 0.87 0.82 Q3/18 Q4/18 ■ Announced Dividend Increase Q1/19 Q2/19 Q3/19 • YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 9% 2 Diluted EPS up 7%² Revenue up 11%2 ○ Excluding acquisitions and IFRS 15, revenue was up 5% ○ Net interest income up 7% ○ Non-interest income up 16% Expenses up 11% 2 ○ Mostly driven by acquisitions o Excluding acquisitions and the impact of IFRS15, expenses were up 4% Strong deposit growth of 10% Y/Y, asset growth of 13% Y/Y Total PCL ratio increased by 8 bps o Impaired PCL ratio was up 11 bps 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL impact on performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs Scotiabank. 16#17Canadian Banking Top 3 bank in personal & commercial banking, wealth and insurance in Canada • Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to Retail, Small Business, Commercial Banking, and Wealth Management customers Retail 55% REVENUE MIX1 $3.5B 18% Commercial Residential Mortgages 60% MEDIUM-TERM FINANCIAL OBJECTIVES Target² 2019 Q3 YTD 3,4.5 +2% <49% 49.4% <45% 45.4% <65% 61.6% AVERAGE LOAN MIX 1 $351B Net Income Growth 6 7%+ Productivity Ratio 2% 27% Credit Cards 21% CB ex Wealth 17% Wealth Business and Government Loans Personal Loans Wealth STRATEGIC OUTLOOK • Improve productivity towards our <49% productivity ratio target (<45% ex Wealth) by 2020 supported by positive operating leverage • Leverage data analytics for prudent growth in higher margin credit card and small business banking • Increase core deposits and primary customers 1 For the three months ended July 31, 2019; 2 3-5 year target; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions; 4 Reflects adoption of new accounting standard, IFRS 15; 5 For the nine months ended July 31, 2019; 6 Attributable to equity holders of the Bank Scotiabank® 17#18Canadian Banking Financial Performance Margin expansion, strong deposit growth, and expense management. Strong Wealth results. FINANCIAL PERFORMANCE AND METRICS ($MM) 1 Y/Y YEAR-OVER-YEAR HIGHLIGHTS Q/Q • Q3/19 Reported Net Income $1,160 +3% +11% Revenue $3,532 Expenses +5% +5% $1,723 +4% +1% PCLS $240 Productivity Ratio 48.8% Net Interest Margin 2.49% +33% (5%) (40bps) (180bps) +3bps +3bps PCL Ratio 2 0.27% +6bps (3bps) PCL Ratio on Impaired Loans² 0.29% +8bps +1bp Adjusted³ • Net Income $1,174 Expenses +3% +4% +11% +1% Productivity Ratio $1,705 48.3% (50bps) (170bps) ADJUSTED NET INCOME 13 ($MM) AND NIM (%) 2.46% 2.45% 2.44% 2.46% 2.49% 1,141 1,146 1,089 1,062 1,174 • • Adjusted Net Income up 3% 3 o Lower real estate gains reduced net income by 2% Margin expansion 。 Wealth Management results up 20% Revenue up 5% ○ Net interest income up 5% o Excluding M&A and IFRS 15, revenue was up 3% Loan growth of 4% o Residential mortgages up 3%; credit cards up 7% o Business loans up 10% Deposit growth of 10% o Personal up 7%; Non-Personal up 17% NIM up 3 bps o Primarily driven by the impact of prior rate increases Expenses up 4%³ ○ Investments in technology and regulatory initiatives o Excluding M&A and IFRS15, expenses were up 1% Quarterly operating leverage of +1.1% 3 PCL ratio² up 6 bps to 27 bps Q3/18 Q4/18 1 Attributable to equity holders of the Bank Q1/19 Q2/19 Q3/19 2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank. 18#19Canadian Banking: Retail Loan Portfolio High quality retail loan portfolio: ~92% secured . • High quality residential mortgage portfolio ○ 40% insured; remaining 60% uninsured has a LTV of 55% 1 • Market leader in auto loans $37.5 billion auto loan portfolio with 7 OEM relationships (3 exclusive) o Prime Auto and Leases (~91%) ○ Stable lending tenor with contractual terms for new originations averaging 77 months (6.4 years) with projected effective terms of 53 months (4.4 years) • Growth opportunity in credit cards o $7.7 billion credit card portfolio represents ~3% of domestic retail loan book and 1.3% of the Bank's total loan book o Organic growth strategy focused on payments and deepening customer relationships 。 Upside potential from existing customers: ~80% of growth is from existing customers (penetration rate mid-30s and trending up versus peers in the low-40s) Strong risk management culture with specialized credit card teams, customer analytics and collections focus 5% Unsecured DOMESTIC RETAIL LOAN BOOK² $295.3B 3% Credit Cards 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. 2 Spot Balance as of July 31, 2019 79% Real Estate Secured Lending -13% Automotive Scotiabank. 19#20Canadian Banking: Residential Mortgages High quality, diversified portfolio • Residential mortgage portfolio of $222 billion: 40% insured; LTV 55% on the uninsured book1 ○ Mortgage business model is "originate to hold" ○ New originations 2 in Q3/19 had average LTV of 64% ○ Majority is freehold properties; condominiums represent approximately 13.5% of the portfolio • Three distinct distribution channels: All adjudicated under the same standards o 1. Broker (~64%); 2. Branch (~17%); and 3. Mobile Salesforce (~19%) 。 eHOME: Since the launch of eHOME, we have had over 50,000 Canadians engage with the application to see how easy the digital mortgage experience can be. On average, customers are receiving a conditional approval is less than 24 hours (vs. multiple days in the traditional process) CANADIAN MORTGAGE PORTFOLIO: $222B (SPOT BALANCES AS AT Q3/19, $B) $113.7 $13.6 Freehold $192B Condos $30B 40% Insured Total Portfolio: $222 billion $100.1 $40.9 $10.2 $30.8 $3.7 $16.4 $30.7 $27.1 $1.9 $14.5 $11.1 $10.9 $9.5 $0.2 $8.8 $0.7 60% Uninsured Ontario BC & Territories Alberta % of portfolio 51.1% 18.3% 13.9% Quebec Atlantic Provinces Manitoba & Saskatchewan 7.4% 5.0% 4.3% 1LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions Scotiabank. 20#21Canadian Banking: Residential Mortgages (continued) High quality, diversified portfolio NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION Q3/18 Q2/19 Q3/19 Canada Total Originations ($B) 11.9 7.1 14.0 GVA 61% Uninsured LTV 63% 64% 64% GTA 63% GTA BC & Territories Total Originations ($B) Uninsured LTV 3.6 2.3 4.5 62% 64% 63% 63% GVA Atlantic Prairies 68% ON QC Provinces 64% 65% 67% Total Originations ($B) Uninsured LTV 1.4 60% 0.9 1.6 63% 61% *Average LTV ratios for our uninsured residential mortgages originated during the quarter FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO1 Average FICO Score Canada 789 GTA 791 GVA 795 15% 11% 12% 4% < 635 - 636 706 707-747 FICO is a registered trademark of Fair Isaac Corporation 1 FICO distribution for Canadian uninsured portfolio based on score ranges at origination 2 Percentage is based on Total Mortgages 58% . 748-788 > 788 . Only <0.70% of uninsured portfolio 2 has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $133 billion as at Q3/2019 Scotiabank. 21#22Automotive Finance Canada's leader in automotive finance • Provide personal and commercial dealer financing solutions, in partnership with seven leading global automotive manufacturers in Canada • Portfolio grew 3% 1 year-over-year Personal up 4%, Commercial down 2% Commercial 13% AVERAGE Near-Prime Retail ASSET MIX 8% $43.3B1 79% 100% Secured Prime Retail Market Share² Prime Retail Market Share³ 37% 63% Exclusive Relationships MAZDA VOLVO JAGUAR/LAND ROVER Semi-Exclusive Relationships* HYUNDAI CHRYSLER GM TESLA 1 to 2 other financial institutions comprise Semi-Exclusive relationships Near-Prime Retail Market Share4 76% 24% Commercial Floorplan Market Share5 72% 28% 1 For the three months ended July 31, 2019; 2 Data as at Feb 2019; 3 CBA data, includes BMO, CIBC, HSBC, National Bank, RBC, Scotiabank, TD; 4 DealerTrack Portal data, includes all Near-Prime Retail providers on DealerTrack Portal, data for July-19 originations; 5 Includes BMO, CIBC, RBC, Scotiabank, TD, HSBC, Canadian Western Bank, Laurentian Bank, data as of Dec-2018 Scotiabank® 22#23Tangerine Forward Banking Canada's #1 Digital Bank; The Official Bank of the Toronto Raptors Conscious Self-Directed STRATEGIC FOCUS: • Simplicity Simple, market-leading products that appeal to value- conscious, self-directed and digitally-savvy Canadians Tech-Friendly • 2.3 million customers . Industry-leading customer service <7-minute account sign-up ⚫ 97% digital transactions . 96% digital onboarding ⚫ 90% digital sales • • Seamless digital client experience Velocity Enhanced self-service options, adding speed & agility Nimble, modern platform supporting rapid development cycles Low-cost, scalable business model Partnerships . Accelerating momentum through the Toronto Raptors • • Deepening client relationships by introducing SCENE Loyalty Strong partnership with Scotiabank with minimal overlap Modern Platform Speed & Agility Client-Driven Innovation Unique 'Orange' Culture Award Winning Approach 90 Scalable: Nimble, low cost systems provide a holistic client view. Rapid Deployments: Agile best practices enable quick & efficient new product & feature delivery. Incubator: Identify, explore, and pilot new technologies and solutions to meet evolving Client needs. > Team Tangerine: Our unique culture and lean team are an essential part of how we deliver. Third-Party Recognition: Tangerine ranks highest in customer satisfaction among mid-sized banks for 8th year in a row by J.D. Power Scotiabank® 23#24International Banking Leading diversified personal and commercial franchise in high quality growth markets • International Banking operates primarily in Latin America and the Caribbean with a full range of personal and commercial financial services, as well as wealth products and solutions Asia 5% Business 50% Loans 25% REVENUE1 $3.4B 70% Credit Cards 7% LOAN MIX1 $155B C&CA 8% Other 25% Mexico 16% Colombia MEDIUM-TERM FINANCIAL OBJECTIVES Target² 2019 Q3 YTD 3,4,5 Latin America Net Income Growth 6 9% + 15% 16% 27% Personal 25% Peru Loans Productivity Ratio <51% 50.5% Residential Mortgages Latin America Operating Leverage Positive +4.2% 92% PAC 26% Chile STRATEGIC OUTLOOK • Positive earnings impact from acquisitions in Chile, Colombia, Peru and Dominican Republic • • Disposition of non-core operations in smaller Caribbean markets, Puerto Rico and El Salvador reduces operational risk Margins (NIM ~450 bps) and credit quality are expected to remain stable • Positive operating leverage 1 For the 3 months ended July 31, 2019; 23-5 year target; 3 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions; 4 Y/Y growth rates (%) are on a constant $ basis; 5 For the nine months ended July 31, 2019; 6 Attributable to equity holders of the Bank Scotiabank® 24#25International Banking Financial Performance Strong double-digit earnings growth FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2 YEAR-OVER-YEAR HIGHLIGHTS 2 Adjusted Net Income up 14% or 11% 5 on a constant currency basis Strong loan growth across the Pacific Alliance, positive impact of acquisitions, and higher non-interest income Revenues up 20% Q3/19 Y/Y Q/Q • Reported Net Income Revenue Expenses $781 $3,427 +20% $1,780 +19% +40% 13% 3% 6% PCLS $476 Productivity Ratio 51.9% (35%) (23%) (100bps) +90bps · Net Interest Margin 4.45% (25bps) (13bps) PCL Ratio³ 1.24% (134bps) (47bps) PCL Ratio on Impaired Loans³ Adjusted 5 1.36% +3bps +7bps Net Income Expenses $815 +11% +5% Productivity Ratio PCL Ratio³ $1,725 PCLs $476 50.3% 1.24% +18% +4% . NIM down 25 bps +33% +2% (140bps) +30bps +1bp (6bps) 1,5 ADJUSTED NET INCOME 10 ($MM) AND NIM 4 (%) 4.70% 4.52% 4.52% 4.58% 4.45% • 805 815 746 787 · 715 Q3/18 Q4/18 1 Attributable to equity holders of the Bank Q1/19 Q2/19 Q3/19 . o Pacific Alliance up 26% (including acquisitions) Loans up 28% o Pacific Alliance up 41% (including acquisitions) o Primarily driven by larger contribution from Chile and margin compression in Mexico Expenses up 18%5 o Includes impact of acquisitions 。 Business volume growth and inflation 。 Productivity ratio improvement of 140 bps 5 Quarterly operating leverage of +3.2%5 PCL ratio on impaired loans³ increased 3 bps 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 4 Net Interest Margin is on a reported basis 5 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank. 25#26Scotiabank in the Pacific Alliance Countries Well positioned in high quality, growth markets • • PAC Highlights 230 million people¹, median age of 302 9th largest economy in the world1 Banking penetration <50% 1 Sovereign ratings all "Investment Grade"3 63% of exports related to manufacturing4 Largest trading partner is the United States 4. • • • • Scotiabank in the PAC Only global bank present in all PAC countries Top 3 bank in Chile and Peru 28-year operating history (average) 2018 "Bank of the Year", Latin Finance Scotiabank Market Share 5 Market Share Ranking5 Strengths Average Total Loans (C$B) Revenue (C$B) Net Income after NC17,8 (C$MM) ROE 6,8 # of Employees 9,10 Mexico Peru Chile Colombia 7.4% 6th 18.3% 3rd 14.0% 3rd Auto and Mortgages P&C and Mortgages Credit Cards, Mortgages 6.0% 6th Credit Cards, Personal $31.3 $21.5 $47.2 $12.2 $2.3 $2.3 $2.4 $1.6 $611 $756 $539 $132 18% 24% 10% 9% 13,241 12,052 8,967 8,955 1 Source: World Bank 2017 2 Source: The World Factbook, CIA 2017 3 Sovereign ratings from Moody's, S&P, and Fitch; Source: Bloomberg 4 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co- operation and Development (OECD) 2016 5 Ranking based on publicly traded banks by total loans market share as of June, 2019, inc. M&A 6 For the three months ended July 31, 2019 7 For the trailing 12 months ended July 31, 2019 not adjusted for currency 8 Earnings adjusted for acquisition-related costs including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 9 Employees are reported on a full-time equivalent basis 10As of July 31, 2019 Scotiabank® 26#27Global Banking and Markets Second-largest Canadian wholesale banking and capital markets business ⚫ Full-service wholesale bank in Canada, the United States and Latin America. Offers a range of products and services in select markets in Europe, Asia and Australia. Asia Europe 8% 5% Canada GEOGRAPHIC REVENUE 1 $1.1B US 41% 45% Global Equities 17% Business Banking REVENUE BY BUSINESS LINE1 FICC 28% $1.1B Equities 32% Other 55% 20% TRADING RELATED REVENUE (TEB) 1,2 $549MM 27% 9% Commodities 12% Foreign Exchange Interest Rate & Credit STRATEGIC OUTLOOK Up-tiering lending relationships, expanding Investment Banking capabilities in key markets, and increasing investment in the Pacific Alliance to become a leader in local and cross-border banking and capital markets • Continued strong growth in deposits, improved corporate lending and investment banking results to absorb required regulatory and technology investments 1 For the 3 months ended July 31, 2019; 2 All-Bank trading-related revenue Scotiabank. 27#28Global Banking and Markets Financial Performance Volatile market conditions, margin compression. Strong loan growth. FINANCIAL PERFORMANCE AND METRICS ($MM) YEAR-OVER-YEAR HIGHLIGHTS Q3/19 Y/Y Q/Q . Net Income $374 (15%) (11%) Revenue $1,084 (2%) (6%) • Expenses $593 +9% PCLS ($4) N/A N/A Productivity Ratio Net Interest Margin PCL Ratio² 54.7% 1.61% +580bps +310bps (21bps) (9bps) (0.01%) +4bps +1bp • PCL Ratio on Impaired Loans² (0.01%) +5bps +1bp 1 NET INCOME AND ROE 15.6% 15.3% 15.2% 11.5% 12.8% • Net Income down 15% Y/Y and down 11% Q/Q Revenue down 2% 。 Net interest income down 8% o Non-interest income flat NIM down 21 bps o Lower deposit margins Loans up 12% ○ Strong corporate loan growth across Canada and the U.S. Expenses up 9% • Expenses flat Q/Q o Higher regulatory costs and unfavourable impact of foreign currency • PCL ratio 2 continues to be a recovery 441 416 420 374 335 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures Scotiabank. 28#29Credit Performance by Business Lines Credit fundamentals remain strong Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 (As a % of PCLs on Total PCLs on PCLs on Total Total Average Net Loans & Impaired PCLS Impaired Impaired PCLs PCLS Acceptances) Loans (adj.) Loans Loans PCLs on Total PCLs on Impaired PCLs Impaired Loans (adj.) Loans Total PCLS Canadian Banking Retail 0.25 0.24 0.25 0.25 0.28 0.28 0.31 0.35 0.33 0.30 Commercial (0.04) 0.06 0.06 0.15 0.21 0.231 0.09 0.061 0.10 0.161 Total 0.21 0.21 0.22 0.23 0.27 0.271 0.28 0.301 0.29 0.271 International Banking Retail 2.36 2.252 2.38 2.21 2.33 2.36 2.36 2.352 2.48 2.28 Commercial 0.38 0.312 0.07 (0.06)1 0.19 0.261 0.27 Total 1.33 1.232 1.20 1.051 1.23 1.281 0.301,2 0.30 1.29 1.301.2 1.36 0.261 1.241 Global Banking and Markets (0.06) (0.05) (0.07) All Bank 0.41 0.40 0.42 (0.09)1 0.39 (0.01) (0.07) 0.47 0.47 (0.02) 0.49 (0.02) (0.01) (0.01) 0.51 0.52 0.48 1 Excludes provision for credit losses on debt securities and deposit with banks 2 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions Scotiabank. 29#300.00% 2001 2002 0.50% 2003 2004 1.00% 2005 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures PCL Ratio on Impaired Loans 2006 2007 1.50% 2008 2009 2001 2002 2003 2004 2005 PCL Ratio on Impaired Loans 2006 2007 2.00% CANADIAN BANKING HISTORICAL PCL RATIO ON IMPAIRED LOANS 1 2010 2011 2012 2013 - Historical Average - PCL Ratio on Impaired Loans (26 bps) 2014 2015 2016 Scotiabank® 30 2017 2018 Historical PCL Ratios on Impaired Loans Credit fundamentals remain strong; PCLS on impaired loans in line with long-term average 2.00% 1.50% 1.00% 0.50% 0.00% ALL BANK HISTORICAL PCL RATIO ON IMPAIRED LOANS1 2002: Included $454 million related to the Bank's exposure to Argentina 2009: Higher PCLs driven by economic conditions, event distributed across business lines. Higher general allowance and sectoral allowance (automotive related) 2019 YTD 2008 2009 2010 2011 2012 2013 2014 - Historical Average - PCL Ratio on Impaired Loans (44 bps). Average: 26 bps 2015 2016 2017 2018 2019 YTD Average: 44 bps#31Canadian Retail: Loans and Provisions Credit fundamentals remain strong TOTAL RETAIL MORTGAGES 10 10 12 2 1 1 1 35 33 28 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 25 25 31 30 28 24 25 LINES OF CREDIT² PERSONAL LOANS1 95 85 80 70 66 88 78 69 69 63 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 CREDIT CARDS 96 458 86 81 349 75 68 330 402 292 415 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 75 70 68 70 73 339 269 283 241 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 PCL as a % of avg. net loans (bps) PCLs on Impaired Loans as a % of avg. net loans (bps) Loan Balances Q3/19 Mortgages Personal Loans1 Lines of Credit² Credit Cards Total Spot ($B) $222 $40 $34 $8 $3043 % Secured 100% 99% 62% 3% 93%4 1 96% are automotive loans 2 Includes Home Equity Lines of Credit and Unsecured Lines of Credit 3 Includes Tangerine balances of $6 billion 4 80% secured by real estate; 13% secured by automotive Scotiabank. 31#32International Retail: Loans and Provisions Credit fundamentals remain strong TOTAL RETAIL² MEXICO PERU 216 233 231 208 545 517 443 169 218 432 248 206 203 402 238 199 236 236 235 491 421 154 400 364 372 233 236 225 228 221 1 1 1 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 CARIBBEAN & CENTRAL AMERICA CHILE COLOMBIA 182 170 159 582 151 147 157 141 145 155 155 554 549 531 165 452 156 148 150 532 138 138 134 485 126 120 425 455 377 101 1 1 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 PCL as a % of avg. net loans (bps) Loan Balances Q3/19 Spot ($B) Mexico $13 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 PCLs on Impaired Loans as a % of avg. net loans (bps) Peru Chile Colombia C&CA Total $10 $26 $7 $19 $76 1Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans 2Total includes other smaller portfolios Scotiabank® 32#33Treasury and Funding Scotiabank Ⓡ#34Funding Strategy Flexible, well-balanced and diversified funding sources Funding Strategy • Build customer deposits in all of our key markets • Continue to reduce wholesale funding (WSF) while focusing on TLAC eligible debt ⚫ Achieve appropriate balance between efficiency and stability of funding including maintaining pricing relative to peers ⚫ Diversify funding by type, currency, program, tenor and markets • Centralized funding strategy and associated risk management SHORT-TERM FUNDING o USD 25 billion Bank CP program o CD Programs (Yankee/USD, EUR, GBP, AUD, HKD) ⚫ TERM FUNDING & CAPITAL Canadian Dollar o CAD 38 billion Global Registered Covered Bond Program (uninsured Canadian mortgages) o Canada Mortgage Bonds and Mortgage Backed Securities o CAD 15 billion debt & equity shelf (senior subordinated debt, preferred and common shares) o CAD 15 billion START ABS program (indirect auto loans) o CAD 7 billion Halifax ABS shelf (unsecured lines of credit) o CAD 6 billion Principal at Risk (PAR) Note shelf o CAD 5 billion Trillium ABS shelf (credit cards) Foreign Currency 。 USD 40 billion debt & equity shelf (senior subordinated debt, preferred and common shares) o USD 20 billion EMTN shelf o AUD 8 billion Australian MTN program o USD 7.5 billion Singapore MTN program Scotiabank. 34#35Wholesale Funding Wholesale funding diversity by instrument and maturity 1,6,7 30% Senior Notes 3% Bail-inable Notes MATURITY TABLE (EX-SUB DEBT) Asset-Backed Commercial Paper³ 2% $246B 35% Bearer Deposit Notes, Commercial Paper & Short-Term Certificate of Deposits 2% Deposits from Banks2 (CANADIAN DOLLAR EQUIVALENT, $B) 3% Asset-Backed Securities $25 $25 $3 $6 11% Covered Bonds T $4 $19 $1 $16 $16 $7 $2 $4 $12 -10% $1 $4 Mortgage Securitization4 $18 $18 $14 $11 $12 4% $8 Subordinated Debt5 < 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years > Senior Debt ABS Covered Bonds 1 Excludes repo transactions and bankers acceptances, which are disclosed in the contractual maturities table in the MD&A of the Interim Consolidated Financial Statements. Amounts are based on remaining term to maturity.. 2 Only includes commercial bank deposits raised by Group Treasury. 3 Excludes asset-backed commercial paper (ABCP) issued by certain ABCP conduits that are not consolidated for financial reporting purposes. 4 Represents residential mortgages funded through Canadian Federal Government agency sponsored programs. Funding accessed through such programs does not impact the funding capacity of the Bank in its own name. 5 Although subordinated debentures are a component of regulatory capital, they are included in this table in accordance with ED TF recommended disclosures. 6 As per Wholesale Funding Sources Table in MD&A, as of Q3/19. 7 May not add to 100% due to rounding.. Scotiabank. 35#36Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 BUSINESS & GOVERNMENT DEPOSITS 1 (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) Deposit Overview Stable trend in personal & business and government deposits PERSONAL DEPOSITS (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) $211 $215 $222 $223 $225 $199 $201 $196 $198 $204 $202 $199 $200 3Y CAGR 4.4% - PERSONAL DEPOSITS • Important for both relationship purposes and regulatory value • Good momentum with 4.4% CAGR over the last 3 years Q1/18 Q2/18 Q3/18 Q4/18 $197 $179 $211 $172 $170 $197 $161 $156 $169 $174 $168 $155 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 Calculated as Bus& Gov't deposits less Wholesale Funding, adjusted for Sub Debt 3Y CAGR 11.2% Q1/19 Q2/19 Q3/19 $221 Q1/19 Q2/19 Q3/19 · . • BUSINESS & GOVERNMENT Gaining share of deposits through leveraging of relationships 11.2% CAGR over the last 3 years Focusing on operational, regulatory friendly deposits Scotiabank. 36#37Q3/16 Q4/16 Q1/17 Wholesale Funding Utilization Managing reliance on wholesale funding and growing deposits WHOLESALE FUNDING / TOTAL ASSETS 25.9% 24.2% 23.7% 23.1% REDUCED RELIANCE ON WHOLESALE FUNDING Operating in line with peers o Reduced reliance on wholesale funding ○ Sustained focus on deposits as an alternate to wholesale funding MONEY MARKET WHOLESALE FUNDING / TOTAL WHOLESALE FUNDING 41.4% 37.4% Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 35.6% Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 39.7% FOCUS ON TERM FUNDING Prudently using money market funding to absorb short term funding requirements Scotiabank. 37#38Liquidity Metrics Well funded Bank with strong liquidity Liquidity Coverage Ratio (LCR) 。 Stable and sound management of liquidity 。 Net Stable Funding Ratio (NSFR) implementation date is January 2020 T 128% 126% 125% 125% 127% 125% 124% 128% 125% 123% Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 • High Quality Liquid Assets (HQLA) 。 Efficiently managing LCR and optimizing HQLA $158 $158 $160 $144 $140 $138 $132 $128 $127 $123 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Scotiabank® 38#39Appendix 1: Key Market Profiles Scotiabank.#40Canadian Economy and Financial System Stable economy with sound financial system • . CANADIAN ECONOMY The 10th largest economy in the world, with an outward orientation Economy diversified, with particular strength in services, primary industries, manufacturing, construction, and utility sectors Proactive government and central bank that have begun unwinding exceptionally accommodative monetary policy Manageable government deficits and debt burdens Strong growth outlook, with firm commodity prices, resilient consumer activity, and solid U.S. demand for Canadian goods and services Only G7 country with free-trade agreements with all other G7 members under NAFTA / USMCA, CETA, and CPTPP. STRONG FINANCIAL SYSTEM Effective regulatory framework o Principles-based regime o Single regulator for major banks 。 Conservative capital requirements o Proactive policies and programs ⚫ Risk-management practices O Prudent lending standards 。 Few sub-prime mortgages o Relatively little securitization Primarily originate-to-hold model Canadian banks well-capitalized and profitable Scotiabank. 40#41% OF GDP Canadian Economy Diverse economy with a strong balance sheet 19.4%- Finance, Insurance, & Real Estate 15.5% Other 4.6% Transportation & Warehousing 5.8% Professional, Scientific, & Technical Services 6.7% CANADIAN GDP BY INDUSTRY (MAY 2019) Public Administration -12.4% Health & Education -10.4% Wholesale & Retail Trade -10.5% Manufacturing -7.8% Mining and Oil & Gas Extraction -7.0% Construction GENERAL GOVERNMENT NET FINANCIAL LIABILITIES REAL GDP GROWTH ANNUAL % CHANGE 3 2 U.S. T Canada Eurozone 2018-2020f UK Japan 2000-2017 Sources: Scotiabank Economics, Haver Analytics, Statistics Canada. Forecasts as of July 12, 2019. GOVERNMENT FINANCIAL DEFICITS 2 120.3 124.7 % OF GDP 0 = ≈ 77.1 80.7 81.4 3 65.1 33.5 -4 23.0 1.1 (0.6) (0.6) (1.3) (2.7) (2.8) (3.3) (4.6) -5 Canada Germany OECD France UK U.S. Italy Japan Germany OECD* Canada UK Italy Japan France US Sources: Scotiabank Economics, OECD (2018 estimates). As of August 2019. * Arithmetic mean of all OECD Financial Deficits as a % of GDP. Sources: Scotiabank Economics, IMF (2019 estimates). As of August 2019. Scotiabank® 41#42Canada Stable Economic Fundamentals - Low unemployment rate reflects solid growth in Canadian economy UNEMPLOYMENT RATE 14 12 10 8 6 4 2 0 Canada - official U.S. Canada comparable to U.S. T 90 92 94 96 98 00 02 04 06 08 10 12 15 17 19 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through July 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 y/y % change HEADLINE INFLATION CO 6 Canada Bank of Canada Target Inflation Band M U.S. -2 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through June 2019 (Canada) and June 2019 (US). (%) LABOUR FORCE PARTICIPATION RATE 70 66 64 60 861 26 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 July 2019. Scotiabank® 42#43Economic Outlook in Key Markets Growth in Pacific Alliance expected to remain above that of Canada and the U.S. 2019 AND 2020 REAL GDP GROWTH FORECAST (%) Real GDP (Annual % Change) Country 2000-17 avg. 2018 2019f 2020f Mexico 2.2 2.0 0.9 1.1 Peru 5.0 3.9 3.1 3.7 Chile 3.9 4.0 3.2 3.2 Colombia 3.9 2.6 3.2 3.6 PACS simple avg. 3.7 3.1 2.6 2.9 2000-17 avg. 2018 2019f 2020f Canada 2.1 1.9 1.4 2.0 U.S. 2.0 2.9 2.5 1.6 Source: Scotiabank Economics. Forecasts as of July 12, 2019. Scotiabank. 43#44Mexico Diverse economy with a strong balance sheet • The Mexican economy reflects a solid mix of commodities, goods production, and services Trade remains dominated by the U.S., but Mexico's diversification agenda is underpinned by 13 free-trade agreements with 47 countries that account for 40% of global GDP 16.0% Finance, Insurance, & Real Estate 16.2% Other 3.2% Natural Resources 5.8% Health & Education MEXICAN GDP BY INDUSTRY (Q2 2019) 6.5% Transportation 2.0% & Warehousing Professional, Scientific, & Technical 3.8% Public Services Administration Top 5 Trading Partners 17.7% Wholesale & Retail Trade 15.9% Manufacturing 6.1% Mining and Oil & Gas Extraction 6.8% Construction Contributions to Mexican GDP Growth 5 y/y % change 4 3 2 1 0 -1 - 235 16 17 18 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. Other* Net Exports Inventories Investment Government Consumption Real GDP 19 Germany 3% Japan 3% Canada 4% China 11% Others 20% United States 59% Scotiabank. 44#45Chile Advanced economy with wide-ranging trade links Chile's mix of economic activities reflects its status as an advanced market economy Chile's diversified trading relationships are supported by 22 free-trade agreements with 59 countries that account for 70% of global GDP Investment has been a strong contributor to growth in Chile over the past year, which should underpin future productivity gains. 15.2% Finance, Insurance, & Real Estate 8.7% Other 2.0% Restaurants & Hotels 8.5% Transportation & Warehousing 3.4% Natural Resources CHILEAN GDP BY INDUSTRY (Mar 2019) 19.1% Housing & Personal Services 9.3% Wholesale & Retail Trade 10.2% Manufacturing .12.7% Mining and Oil & Gas Extraction 6.3% Construction 4.6% Public Administration 8 y/y % change 6 4 2 0 -2 Contributions to Chilean GDP Growth Net Exports Inventories Investment Top 5 Trading Partners Others 38% China 29% -4 Government Consumption Real GDP South Korea -6 16 Sources: Scotiabank Economics, Haver Analytics. 17 18 19 United States 4% Japan Brazil 16% 6% 7% Scotiabank. 45#46Peru Resilient economic fundamentals • Peru's important resource sectors are increasingly balanced by stronger service-sector activity and solid economic fundamentals Peru has 16 free-trade agreements with 49 countries that account for 66% of global GDP Investment is making a consistently strong contribution to GDP, which should make higher growth rates more sustainable in the future 12.4% Manufacturing 10.2% Finance, Insurance, & Real Estate 31.9% PERUVIAN GDP BY INDUSTRY (Q1 2019) 20.8% Transportation, Information & Commerce 5.5% Construction Contributions to Peruvian GDP Growth 8 y/y % change 6 4 2 0 -2 Net Exports Inventories Investment Other 5.1% Natural Resources 14.1% Mining & Energy Top 5 Trading Partners Others 34% China 31% -4 Government Consumption South Real GDP -6 Korea 5% 16 17 18 19 United Sources: Scotiabank Economics, Haver Analytics. Spain States Brazil 4% 20% 5% Scotiabank® 46#47Colombia Gaining momentum Services account for a rising share of Colombian GDP compared with traditional strengths in extractive industries Colombia continues to build on its 10 free-trade agreements with 42 countries that account for 38% of global GDP Rising consumption, supported by public spending, reflects an expanding middle class as growth gains momentum and converges toward the economy's underlying potential 13.6% Finance, Insurance, & Real Estate 8.7% Other 6.2% Natural Resources 2.9% Information & Communication 2.4% Arts & Entertainment COLOMBIAN GDP BY INDUSTRY (Q1 2019) 7.2% Professional, Scientific, & Technical Services 17.4% Wholesale, Retail Trade, Accommodation & Food Services 11.9% Manufacturing 8.2% Mining and Oil & Gas Extraction -14.7% 6.7% Construction Public Administration 8 y/y % change 6 4 2 0 -2 Contributions to Colombian GDP Growth Other* Net Exports Investment Government Consumption Real GDP -4 16 17 18 19 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. Top 5 Trading Partners United Others States 27% 35% Germany 3% Brazil 6% Mexico China 8% 21% Scotiabank® 47#48Other Regions Strong contribution from leading Caribbean & Central American franchise • Caribbean & Central America 。 16 countries contributing - CAD $700MM in earnings in 2018 。 Well-established, diversified franchise that serves retail, commercial and corporate customers ○ Actively managing footprint to ensure scale in larger growth markets and reduce risk profile: О Announced sale of operations in 9 smaller countries in Caribbean in Q1/19 Completed acquisition of Banco Dominicano del Progreso in Q2/19. Doubles customer base and creates 4th largest bank Completed sale of pension and insurance operations in the Dominican Republic in Q2/19 ○ Announced sale of banking and insurance operations in El Salvador in Q2/19 О Announced sale of Announces the sale of operations in Puerto Rico and the U.S. Virgin Islands in Q3/19 o Recognized by Global Finance magazine as: Asia "Best Bank Award 2017" in the Bahamas, Barbados, Costa Rica, Turks & Caicos and U.S. Virgin Islands; "World's Best Consumer Digital Bank 2017" in 24 countries across Latin America and the Caribbean; and "Best in Mobile Banking" in the Caribbean region 。 Thailand: 49% interest in Thanachart Bank ("TBank") (2007) О ○ Announced definitive agreement to reduce investments in Thailand in Q3/19, resulting in Scotiabank owning approximately 6% of a Merged Bank (among ING Groep, TBank and TMB) CAD $3.0B carrying value as of October 31, 2018 CAD $590MM of net income for twelve months ended October 31, 2018 。 China: 19.9% interest in Bank of Xi'an (2009) ○ CAD $1.2B market value as of Q2/19 CAD $772MM carrying value as of October 31, 2018 ○ CAD $456MM of net income for twelve months ended October 31, 2018 Scotiabank. 48#49Appendix 2: Canadian Housing Market Scotiabank#50Canadian Housing Market Engineered moderation of price and volume Significant Moderation in Price Growth* 25 Aggregate Composite MLS Home Price Index Y/Y Percentage Change Volume of Home Sales Near 10-Year Average* 50 Units, 000s 45 Monthly home sales 20 15 10 5 0 -5 -10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Sources: Scotiabank Economics, CREA. *Actual not seasonally adjusted Canada's Five Largest Metropolitan Areas* 10 MLS Home Price Index Benchmark Price Y/Y Percentage Change 5 4.43 0 -5 -10 Average -0.88 -9.41 -15 GTA GVA 7.29 Montreal Sources: Scotiabank Economics, CREA. *Actual - not seasonally adjusted 40 35 30 25 10-year monthly moving avg. 20 20 T T 07 08 09 10 11 12 13 14 15 16 17 18 19 Sources: Scotiabank Economics, CREA. *Seasonally adjusted Decline in Share of High Risk Mortgages 25 % Share of new mortgages with a loan-to-income ratio greater than 450% 20 15 -3.49 -3.21 10 Calgary Edmonton 5 0 Mortgage insurance rules tightened Guideline B-20 revised Dec-14 Jun-15 Dec-15 Jun-16 High-ratio mortgages Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Low-ratio mortgages Total mortgages Source: Bank of Canada Financial System Review 2019 1 Sources for charts and table: Bank of Canada Financial System Review 2019 (Data as of December 31, 2018); CREA; MLS Home Price Index growth rates reported as non seasonally-adjusted y/y (Data as of July 2019) Scotiabank® 50#51Price Growth by Dwelling Type Price Growth by Dwelling Type Canadian Housing Market Engineering a "soft landing" • Canada: Positive sales and price momentum returning after multiple years of policy-induced slowdown: In July 2019, national-level home sales rose a healthy +3.5% m/m the fifth consecutive monthly increase 20 15 。 Average sales prices and the composite MLS Home Price Index2 are trending higher (top chart) 10 Single Family -Townhouse - Apartment Composite MLS Home Price Index, aggregate, -5 y/y % change 16 17 。 Sales-to-new listings ratio climbed to 59.8% in July 2019. While still indicative of balanced supply-demand conditions, the ratio was at its highest point since January 2018 Greater Toronto: Recovery in sales volumes. Market is largely balanced Greater Vancouver: Recovery less established. Sales activity has risen by more than 20% in two of the past three months. Home purchases are trending moderately. higher in other Southern BC centers 0 18 19 Toronto & Vancouver Home Sales 140 home sales, 000s of units annualized, SA Greater Toronto 120 Canada Jun-19 Jul-19 Jul-19 m/m* m/m* y/y** 100 Sales (% change) 0.6 3.5 7.4 80 New listings (% change) 0.7 -0.4 -1.0 HD Average price (% change) 1.7 2.6 3.5 60 Jun-19 Jul-19 Greater Vancouver Sales-to-new listings ratio (level)* 57.6 59.9 40 Months inventory (level)* 5.0 4.7 20 *Seasonally adjusted **Not seasonally adjusted مصر 1 Sales and listings figures reported in seasonally-adjusted m/m terms, while MLS HPI growth rates reported as non-seasonally-adjusted y/y 2 Measure of real estate price appreciation that removes distortions related to variations in the mix of sales across unit types 3 Sources for charts and table: Scotiabank Economics, CREA. 0 10 11 12 13 14 Actual 10-year avg. 15 16 17 18 19 Scotiabank® 51#52Canadian Household Credit Public policy changes have moderated growth in household credit Total household credit grew at +3.5% annually in nominal terms in Q2/19 vs 2008 peak of +12.2% annually • Consumer loans excluding mortgages (cards, HELOCs, unsecured lines, auto loans, etc.) grew at +3.4% annually in Q2/19 vs > 5% in late 2017 ⚫ Mortgage credit grew at +3.5% annually in Q2/19 vs 2008 peak of 13% HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 25 %, 3-month moving average 20 15 yly % change 10 5 m/m % change, SA 0 25 %, 3-month moving average 20 20 15 10 25 %, 3-month moving average 20 20 y/y % change 15 y/y % change 10 5 m/m% change, SA 0 сл 5 0 m/m % change, SA 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. -5 -5 -5 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. Scotiabank. 52#53Household Debt: Canada vs. U.S. Canadian households' balance sheets compare favourably to US • Canadian headline debt-to-income ratio is now ~ -4% vs. the U.S. peak in 2008 。 Calculated on the same terms, Canada's debt-to-income is currently 165% vs 131% in the U.S. • Canadian debt-to-asset ratio remains below U.S. o U.S. households have incentive to pursue higher asset leverage in light of mortgage-interest deductibility • Ratio of total household debt-to-GDP remains lower in Canada than U.S. 。 Calculated on a comparable basis, the ratio of household credit market debt is 99.5% in Canada vs 100.8% in the U.S. Household Credit-Market Debt to Disposable Income Total Household Liabilities As % of Total Assets 180 30 household credit liabilities 173.0 as % of disposable income 170 160 165.4 25 150 140 130 120 110 ཧཿ ཤྲཱ ༞ ༄ ༅ 20 20 131.4 Adjusted Canadian* Official Canadian 15 100 Official US 90 T T 00 02 04 06 08 10 12 14 16 18 10 * Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. household debt as % of assets US Household Credit-Market Debt to GDP 130 % of GDP 120 Original 110 100 US with unincorporated business debt Canada 103.0 100.8 99.5 90 18.3 Canada* 80 74.0 Canada 70 Original US 17.0 60 50 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Federal Reserve Board, Statistics Canada. 00 02 04 06 08 10 12 14 16 18 * Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. Scotiabank. 53#54Housing Market Differences vs U.S. Canada's housing market features distinct practices and policies Regulation and Taxation Product Underwriting Canada Mortgage interest not tax deductible Full recourse against borrowers in most provinces Foreclosure on non-performing mortgages, no stay periods Insurance Mandatory default insurance mortgages with LTV > 80% 。 CMHC backed by Government of Canada (AAA). Private insurers are 90% government backed o Insurance available for homes up to CAD 1 mn o Premium is payable upfront Covers full amount for life of mortgage Homebuyers must qualify for mortgage insurance at an interest rate that is the greater of their contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate Re-financing cap of 80% LTV on non-insured mortgages Amortization Maximum 25-year amortization on mortgages with LTV > 80% Maximum 30-year amortization on conventional mortgages Down payment of > 20% required for non-owner occupied properties Conservative product offerings, fixed or variable rate options Much less reliance upon securitization and wholesale funding Asset-backed securities not subjected to US-style off-balance sheet leverage via special purpose vehicles • Terms usually three or five years, renewable at maturity •Extensive documentation and strong standards U.S. • Tax-deductible mortgage interest creates incentive to borrow and delay repayment • Lenders have limited recourse in most states . 90-day to 1-year stay period to foreclose on non-performing mortgages • No regulatory LTV limit Private insurers are not government backed Can include exotic products (e.g. adjustable rate mortgages, interest only) 30-year term most common • Wide range of documentation and underwriting requirements Scotiabank. 54#55Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2016 2017 2018 2019 • Canada: Qualifying stress rate for all new mortgage insurance must be the greater of the contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate . • • Low-ratio mortgage insurance eligibility requirements updated for lenders wishing to use portfolio insurance: o Maximum amortization 25 years o CAD 1 mn max. purchase price o Minimum credit score of 600 。 Owner-occupied property Elimination of primary residence tax exemption for foreign buyers Min. down payment on insured increased from 5% to 10% (for homes CAD 0.5-1.0 mn) British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced . Ontario: 16 measures aimed to slow rate of house price appreciation Key aspects include: o 15% non-resident speculation tax o Expanded rent control to all private rental units in Ontario 。 Vacant home tax CAD 125 mn five-year program to encourage construction of new rental apartment buildings • Canada: OSFI imposes more stringent stress tests for uninsured mortgages, including a minimum qualifying rate at the greater of the five-year fixed posted rate or the contractual rate plus 200 bps, effective January 1, 2018 Ontario: Elimination of rent control on new rental units first occupied on or before November 1, 2018 British Columbia: Extension of the Property Transfer Tax on non-resident buyers. Investment of more than CAD 1.6 bn through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years ⚫ British Columbia: Increase in speculation tax on foreign and domestic home owners who do not pay income tax in BC from 0.5% of a property's assessed value to 2%; additional school tax levied on portion of a property's value that exceeds CAD 3 mn. Ontario: Measures to increase supply of available housing Key aspects include: 。 Greater authority over land use planning decisions for the province's independent municipal dispute resolution body o Reduced red tape on new residential developments o Updated zoning regulations to facilitate building of affordable homes near transit Scotiabank. 55#56Appendix 3: Bail-in and TLAC Scotiabank Ⓡ#57Canadian Bail-in Regulations: Key Features Best in class approach • Post September 23, 2018, senior unsecured debt issued by Canadian DSIBS that is subject to bail-in is the only format of issuance available 1 and is a single class of debt2 that is not subordinated to another class of wholesale senior debt • Canadian bank term senior unsecured debt is not structurally, statutorily or contractually subordinated to another class of senior liabilities and therefore is equal to deposits and other senior liabilities in liquidation In the remote probability of default, the no creditor worse off principle ensures that bailed-in senior creditors should not incur greater losses through resolution than liquidation. The CDIC compensation regime ensures holders receive the difference between liquidation and resolution value Canada utilizes a statutory regime where, unlike the contractual regime of Canadian NVCC capital instruments, there is no set conversion multiplier and there is flexibility for a partial bail-in or no bail-in of senior debt even if NVCC instruments are converted Canadian bank resolution framework provides senior debt holders with protection in that the relative creditor hierarchy is maintained. Acceleration rights³ upon non-payment of principal or interest are allowed in Canada 1 Excludes structured notes as defined in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act 2 Ranks pari passu with other forms of senior debt, except as otherwise prescribed by law and subject to the exercise of bank resolution powers 3 Subject to 30 business day grace period and subject to bail-in conversion powers until repaid in full Scotiabank. 57#58Canadian Bail-in Regulations: Jurisdictional Comparison Best in class approach Instrument type Opco senior Holdco senior Holdco senior¹ Holdco senior Ranking in Liquidation Pari passu with deposits and other senior liabilities Structural subordination2 Structural subordination2 Structural subordination2 Senior Deposits Other senior liabilities debt subject to Subordination schematic bail-in Capital Deposits Opco non- preferred senior Contractual subordination² Opco senior / senior preferred / other senior liabilities Holdco senior / senior non-preferred Capital Depositor preference No Yes Yes Yes Yes Participation in equity post resolution Conversion to equity of the bank or an affiliate allows participation in the upside, if any³ N/a4 Uncertain given possibility of write down Uncertain given Uncertain given possibility of write down possibility of write down Acceleration rights upon failure to pay Yes Yes Yes Yes No 5 principal and interest 1 Applicable in practice for G-SIBS' issuance of non-capital bail-in debt 2 Approach applicable to G-SIBS in relevant jurisdictions. Additionally, Switzerland uses structural subordination, Germany uses statutory subordination, Spain uses contractual subordination 3 Assuming only bail-in is triggered. If other resolution powers are exercised, debt holders could be exposed to losses in a manner similar to a write-down of their claims 4 No bail-in power. In resolution, debtholders could potentially receive partial recoveries (analogous to a write-down) or have their claims satisfied through the issuance of new securities (analogous to a bail-in conversion) 5 The terms of senior non-preferred do not include acceleration rights upon failure to pay principal and interest; however, there is no statutory restriction in this regard. Once resolution proceedings are underway, holders may declare an event of default for failure to meet payment obligations Scotiabank. 58#59Summary of Bail-in / TLAC Regime Best in class approach Scope Scope of bail-in instruments Liabilities excluded from bail-in TLAC compliance date TLAC requirement TLAC eligibility Grandfathering Sequencing and preconditions Form of bail-in DSIB disclosure requirements OSFI designated DSIBS Senior unsecured debt that is tradeable and transferable, original term >400 days, unsecured and issued, originated or renegotiated after September 23, 2018 Insured deposits, uninsured deposits 1, debt with original term < 400 days, ABS / covered bonds, structured notes², derivative liabilities, other liabilities November 1, 2021 23.5% minimum risk-based TLAC ratio (21.50% plus a 2.00% Domestic Stability Buffer) 6.75% minimum TLAC leverage ratio Regulatory capital + bail-in debt with remaining term to maturity > 1 year³ Yes - all senior instruments issued prior to September 23, 2018 1. Federal authorities bring bank into resolution 2. Full conversion of bank's NVCC instruments must occur prior to or concurrently with bail-in Equity conversion - Include disclosure related to the conversion power in any agreement governing an eligible liability as well as any accompanying offering document - Include a clause in the contractual provisions governing any eligible liability through which investors provide express submission to the Canadian bail-in regime Provide disclosure of TLAC ratios beginning Q1 2019 Bail-in is not the only path in Canada to resolve a failing bank. Canadian authorities retain full discretion to use other powers including "vesting order", "receivership order”, “bridge bank resolution order" etc. • Conversion into equity under the Canadian bail-in regime has the potential to result in realizable value, potentially in excess of principal amount 1 Yankee CD's with original term > 400 days are in-scope of bail-in 2 As per definition of structured notes in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act. 3 Provided such bail-in debt meets certain other requirements Scotiabank. 59#60Appendix 4: Covered Bonds Scotiabank Ⓡ#61Global Registered Covered Bond Program Global Covered Bond Program: CAD$38 billion • Active in multiple currencies: USD, EUR, GBP, AUD and CHF ⚫ CAD$27 billion outstanding vs. $38 billion program size • Extensive regulatory oversight and pool audit requirements ⚫ Mandatory property value indexation • Established high level of safeguards and disclosure requirements Program carries the ECBC Covered Bond Label Issuer The Bank of Nova Scotia Guarantor Guarantee Status Program Size Ratings Cover Pool Asset Percentage Law Issuance Format Scotiabank Covered Bond Guarantor Limited Partnership Payments of interest and principal in respect of the covered bonds are irrevocably guaranteed by the Guarantor. The obligations under the Covered Bond Guarantee constitute direct obligations of the Issuer and are secured by the assets of the Guarantor, including the Portfolio. The covered bonds will constitute legal, valid and binding direct, unconditional, unsubordinated and unsecured obligations of the Bank and will rank pari passu with all deposit liabilities of the Bank without any preference among themselves and at least pari passu with all other unsubordinated and unsecured obligations of the Bank, present and future. CAD $38 billion Aaa/AAA/AAA (Moody's / Fitch / DBRS) First lien uninsured Canadian residential mortgage loans with LTV limit of 80% 94.8% (5.5% minimum overcollateralization) Ontario, Canada 144A/Reg S (UKLA Listed) Scotiabank® 61#62Global Registered Covered Bond Program 1 Global Covered Bond Program: CAD$38 billion program size, $27 billion outstanding LOAN-TO-VALUE RATIOS2 CREDIT SCORES 3 43% 32% 60% 19% 4% 6% 19% 2% 1% 2% 12% 0-20% 20-40% 40-60% 60-80% 80+% <599 600-650 651-700 701-750 751-800 800+ REMAINING TERM DISTRIBUTION (MONTHS) 34.6% 26.0% 13.7% 12.1% Alberta 0.1% Yukon 2.5% Saskatchewan 5.0% 10.0% 6.8% 8.9% Quebec <12 12-23.99 24-35.99 36-41.99 42-47.99 48+ 0.2% P.E.I. PROVINCIAL DISTRIBUTION 4 55.0% 19.1% British Columbia 1.2% Manitoba 1.0% New Brunswick 1.6% Newfoundland 2.0% Nova Scotia 1. As at July 31, 2019 2. Uses indexation methodology as outlined in Footnote 1 on page 3 of the Scotiabank Global Registered Covered Bond Monthly Investor Report 3. Excludes unavailable credit scores 4. May not add to 100% due to rounding Ontario Scotiabank. 62#63Canadian Legislative Covered Bonds (CMHC Registered) • Canadian Registered Covered Bond Programs' Legal Framework (Canadian National Housing Act) Issuance Framework Eligible Assets Mortgage LTV Limits Basis for Valuation of Mortgage Collateral Substitute Assets Substitute Assets Limitation Cash Restriction . • Coverage Test • . Credit Enhancement • • Canadian Registered Covered Bond Programs Guide issued by Canada Mortgage and Housing Corporation (CMHC) Uninsured loans secured by residential property in Canada LTV limit of 80% Issuers are required to index the value of the property underlying mortgage loans in the covered pool while performing various tests Securities issued by the Government of Canada Repos of Government of Canada securities having terms acceptable to CMHC 10% of the aggregate value of (a) the loans (b) any Substitute Assets and (c) all cash held by the Guarantor The cash assets of the Guarantor cannot exceed the Guarantor's payment obligations for the immediately succeeding six months Asset coverage Test Amortization Test Overcollateralization Reserve Fund Prematurity Liquidity Covered bond swap, forward starting Swaps . Interest rate swap, forward starting Valuation calculation Market Risk Reporting • Mandatory property value indexation • CMHC Covered Bond Supervisory Body Requirement to Register Issuer and Program Registry Disclosure Requirements • Yes; prior to first issuance of the covered bond program Yes • Monthly investor report with prescribed disclosure requirements set out by CMHC Investor reports must be posted on the program website Required to meet applicable regulatory disclosure requirements Scotiabank® 63#64Appendix 5: Additional Information Scotiabank#65Additional Information Scotiabank Listings: Toronto Stock Exchange (TSX: BNS) New York Stock Exchange (NYSE: BNS) Scotiabank Credit Ratings Scotiabank Common Share Issue Information: CUSIP: 064149107 . ISIN: CA0641491075 FIGI: BBG000BXSXH3 NAICS: 522110 Moody's Investors Services Dominion Bond Standard & Fitch Ratings Poor's Rating Service Ltd. Aa2 A+ AA- AA Legacy Senior Debt¹ Senior Debt² Subordinated Debt (NVCC) Short Term Deposits/Commercial Paper P-1 Covered Bond Program Outlook Stable A2 A- AA- AA (low) Baa1 BBB+ A (low) A-1 F1+ R-1 (high) Aaa Not Rated AAA AAA Stable Stable Stable 1 Includes: (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the bank recapitalization "bail-in" regime 2 Subject to conversion under the bank recapitalization "bail-in" regime For further information, please contact: www.scotiabank.com/investorrelations Scotiabank. 65#66Contact Information Investor Relations Philip Smith Senior Vice President 416-863-2866 [email protected] Steven Hung Vice President 416-933-8774 [email protected] Lemar Persaud Director 416-866-6124 [email protected] Judy Lai Director 416-775-0485 [email protected] Funding Tom McGuire Executive Vice President & Group Treasurer 416-860-1688 [email protected] Michael Lomas Managing Director, Treasury Sales and Market Development 416-866-5734 [email protected] Christy Bunker Managing Director, Term Funding and Capital Management 416-933-7974 [email protected] For further information, please contact: www.scotiabank.com/investorrelations Scotiabank. 66