#1INVESTOR PRESENTATION SECOND QUARTER 2019 May 28, 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® 2#3SCOTIABANK OVERVIEW Brian Porter President & Chief Executive Officer Scotiabank® 3#4Q2 2019 OVERVIEW • Solid operating performance o Net income of $2.3 billion (adjusted¹ net income of $2.3 billion) Diluted EPS of $1.73 (adjusted¹ diluted EPS of $1.70) 。 ROE of 13.8% (adjusted 1 ROE of 13.6%) 。 Strong asset and deposit growth across all business segments 。 Good expense management and productivity ratio improvement Strong performance in International Banking Capital position remains strong 。 CET1 ratio of 11.1% 。 Pro-forma increase of 20 bps from announced divestitures 1 Figures adjusted for Acquisition and divestiture-related amounts, including Day 1 PCLS, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net gain on divestitures Scotiabank® 4#5FINANCIAL REVIEW Raj Viswanathan Chief Financial Officer Scotiabank® 5#6INTEGRATION UPDATE - MATERIAL ACQUISITIONS On track to exceed -$0.15 adjusted diluted EPS accretion in 2020 • Customer retention rates continue to be very high and key integration metrics are strong • Realization of synergies are on track and as expected BBVA Chile • Increase in combined market share for loans year-over-year (~+20 bps) · Successfully migrated BBVA credit card portfolio in Q2/19 • Integration execution on track and expected to be completed by Q4/19 Wealth Management Acquisitions (MD Financial, JFL) • Positive AUM/AUA growth in Q2/19 and since acquisition • MD surpassed $50B in assets for the first time in its history • Customer retention rates are higher quarter-over-quarter and above pre-acquisition levels Acquisition-related synergies are on track Scotia Private Banking now co-located in all major MD offices Scotiabank®#7Q2 2019 FINANCIAL PERFORMANCE Strong revenue and balance sheet growth $MM, except EPS Reported Q2/19 Y/Y Q/Q Net Income $2,259 +4% +1% Diluted EPS $1.73 +2% +1% Revenue $7,803 +11% +3% Expenses $4,046 Productivity Ratio 51.8% Core Banking Margin 2.45% +9% (100bps) (310bps) (2bps) (3%) YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 3%² Revenue up 8%² 。 Mostly relating to acquisitions 。 Net interest income up 6% PCL Ratio1 61bps +19bps +14bps PCL Ratio on Impaired Loans¹ 49bps +3bps +2bps Adjusted² Net Income $2,263 +3% (1%) Diluted EPS $1.70 (1%) (3%) Revenue $7,630 +8% Expenses $3,993 +8% (3%) • Productivity Ratio 52.3% (20bps) (180bps) 。 Non-interest income up 11% Expenses up 8% 2 。 Mostly driven by acquisitions o Excluding acquisitions and the impact of IFRS15, expenses were up 1% Y/Y 。 Expenses were down 3% Q/Q PCL ratio on impaired loans¹ up 3 bps o In-line with 30-year historical average PCL Ratio1 51bps +9bps +4bps DIVIDENDS PER COMMON SHARE 0.03 0.02 0.85 0.85 0.87 0.82 0.82 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 ■ Announced Dividend Increase 1 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 2 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCLS, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net gain on divestitures Scotiabank® 7#8CAPITAL POSITION REMAINS STRONG Pro-forma capital ratio 11.3% 11.3% +20 bps +21 bps -5 bps -7 bps -9 bps +3 bps 11.1% 11.1% Q1/19 Internal Capital Generation RWA Impact Share Buybacks (ex. FX) (net of issuances) Impact of Completed M&A Including FX Other Q2/19 Reported Impact of Announced Divestitures • • Strong internal capital generation of 21 basis points Repurchased 4 million common shares in Q2/19, 7.25 million shares 2019 YTD 9 bps reduction from the impact from acquisitions and divestitures closed in Q2/19 20 bps increase pro-forma from announced divestitures Q2/19 pro-forma CET 1 ratio of 11.3% excludes additional 25 bps on potential reduced investment in Thanachart Bank Q2/19 Pro-Forma Scotiabank®#9CANADIAN BANKING Strong deposit growth, higher NIM and good expense management FINANCIAL PERFORMANCE AND METRICS ($MM)1 Y/Y YEAR-OVER-YEAR HIGHLIGHTS Q2/19 Q/Q • Reported Revenue $3,380 +5% (1%) Expenses $1,711 +4% (1%) PCLs $252 +23% +8% Net Income $1,048 +3% (2%) Productivity Ratio 50.6% (20bps) Net Interest Margin 2.46% +3bps +2bps PCL Ratio² 0.30% +5bps +3bps PCL Ratio on Impaired Loans² 0.28% +3bps +1bp · Adjusted³ Expenses $1,691 +3% (1%) Net Income $1,062 +4% (2%) • Productivity Ratio 50.0% (60bps) ADJUSTED NET INCOME 13 ($MM) AND NIM (%) 2.43% 2.46% 2.45% 2.44% 2.46% 1,022 1,141 1,146 1,089 1,062 Q2/18 Q3/18 1 Attributable to equity holders of the Bank Q4/18 Q1/19 . Adjusted Net Income up 4%³ o Margin expansion 。 Lower real estate gains and last year's benefit from alignment of insurance reporting reduced net income growth by 4% o Higher PCLs primarily from unsecured lending and auto loans and impact of less favourable forward looking macro-economic inputs Revenue up 5% 。 Net interest income up 4% Loan growth of 3% o Residential mortgages up 2%; credit cards up 6% 。 Business loans up 9% Deposit growth of 11% 。 Personal up 8%; Non-Personal up 15% NIM up 3 bps 。 Primarily driven by deposit growth Expenses up 3%³ 。 Investments in technology and regulatory initiatives 。 Excluding M&A and IFRS15, expenses were flat • Quarterly operating leverage of +1.1%³ PCL ratio² up 5 bps to 30 bps . Q2/19 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® 9#10INTERNATIONAL BANKING Strong performance across the Pacific Alliance FINANCIAL PERFORMANCE AND METRICS ($MM) 1 1, 2 Q2/19 Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS2 5 Reported • Adjusted Net Income up 14% Revenue Expenses PCLS Net Income $700 $3,356 +22% (1%) $1,710 +19% $628 +87% +2% (13%) (3%) · 31% Productivity Ratio 51.0% (150bps) (130bps) Net Interest Margin 4.58% (16bps) +6bps PCL Ratio³ 1.71% +49bps +43bps o Strong loan growth across the Pacific Alliance Revenues up 22% o Pacific Alliance up 28%, includes impact of acquisitions Loans up 29% o Pacific Alliance up 42% includes impact of Chile, Colombia and Peru acquisitions PCL Ratio on Impaired Loans³ Adjusted 5 1.29% (9bps) +6bps • NIM down 16 bps Expenses $1,677 PCLS $477 Net Income $787 Productivity Ratio PCL Ratio³ 50.0% 1.30% +18% (3%) +42% 0% +14% (5%) (210bps) (110bps) +8bps +2bps • ADJUSTED NET INCOME 1,5 ($MM) AND NIM4 (%) 4.74% 4.70% 4.52% 4.52% 4.58% • 805 787 715 746 683 • 。 Primarily driven by the business mix impact of acquisitions (BBVA Chile) 。 NIM up 6 bps Q/Q Expenses up 18%5 o Includes impact of acquisitions 。 Business volume growth and inflation 。 Productivity ratio improvement of 210 bps5 • Quarterly operating leverage of +5.0%5 PCL ratio on impaired loans³ improved 9 bps Strong growth in digital sales Q2/18 Q3/18 1 Attributable to equity holders of the Bank Q4/18 Q1/19 Q2/19 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 10 Scotiabank®#11GLOBAL BANKING AND MARKETS Recovery versus Q1 from higher revenue and better expense management FINANCIAL PERFORMANCE AND METRICS ($MM) Y/Y YEAR-OVER-YEAR HIGHLIGHTS Q2/19 Q/Q • Revenue $1,151 +7% Expenses $594 +5% (8%) PCLs ($6) Net Income $420 Productivity Ratio Net Interest Margin PCL Ratio² PCL Ratio on Impaired Loans² N/A +25% 51.6% +270bps (840bps) 1.70% (10bps) (10bps) (0.02%) +3bps +5bps (0.02%) (4bps) N/A (6%) (1bp) NET INCOME AND ROE 16.9% 15.6% 15.3% 15.2% 11.5% • • Reported Net Income down 6% Y/Y, up 25% Q/Q Revenue flat 。 Net interest income down 3% due to lower deposit margins partly offset by higher loan volumes 。 Non-Interest income up 1% from higher fixed income trading, underwriting and credit fees, partly offset by lower equity trading revenues NIM down 10 bps 。 Mainly driven by lower deposit margins Loans up 16% o Strong corporate growth across the U.S. and Canada Expenses up 5% o Higher regulatory and technology investments, partly offset by lower performance-related compensation PCL ratio² continues to be a recovery 447 441 416 335 Q2/18 420 Q3/18 Q4/18 Q1/19 Q2/19 1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures Scotiabank® 11#12OTHER SEGMENT 2, 3 ADJUSTED NET INCOME ($MM) -54 -64 -32 יידי -107 YEAR-OVER-YEAR HIGHLIGHTS • • Lower contributions from asset/liability management activities Negative carry of high quality liquid assets Partly offset by higher gains on investment securities, lower non-interest expenses and lower taxes • -121 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 1 Represents smaller operating segments including Group Treasury and corporate adjustments 2 Attributable to equity holders of the Bank 3 Adjusted for divestiture-related gain Scotiabank® 12#13RISK REVIEW Daniel Moore Chief Risk Officer Scotiabank® 13#14PCL RATIOS Credit fundamentals remain strong; PCLs on impaired loans in line with long-term average PCLs ($MM) AND PCL RATIO ON IMPAIRED LOANS¹ 46 bps 42 bps 41 bps YEAR-OVER-YEAR HIGHLIGHTS 49 bps • 47 bps 679 700 637 595 559 Q3/18 Q4/18 Q1/19 Q2/19 • Q2/18 PCLs on impaired loans PCL ratio on impaired loans HISTORICAL PCL RATIO ON IMPAIRED LOANS¹ PCL ratio 1,2 was 51 bps, up 4 bps Q/Q and up 9 bps Y/Y 。 PCL on impaired loans¹ of $700 million were up 3% Q/Q, and 18% Y/Y primarily due to volume growth and acquisitions in International Banking 。 PCL on performing loans 1, 2 of $22 million were up $13 million from last quarter and up $83 million Y/Y due to the release of hurricane-related provisions, unfavourable impact of macro economic inputs for Canada and Mexico PCL ratio on impaired loans¹ is in-line with historical average of 46 bps 2.00% 1.50% 1.00% 0.50% 0.00% 1990 1991 1992 1993 1994 1995 1996 1997 PCL Ratio on Impaired Loans 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Excludes acquisition-related costs including Day 1 impact on acquired performing loans 2002: Included $454 million related to the Bank's exposure to Argentina 2009: Higher PCLs driven by economic conditions, event distributed across business lines. Higher general allowance and sectoral allowance (automotive related) Historical Average: 46 bps 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Historical Average PCL Ratio on Impaired Loans 2018 2019 YTD Scotiabank® 14#15PCL RATIOS Credit fundamentals remain strong Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 (As a % of PCLs on PCLs on Total PCLs on PCLs on PCLs on Total Total Total Total Total Average Net Loans & Impaired Impaired PCLs Impaired Impaired Impaired PCLs PCLs PCLs PCLS PCLS Acceptances) Loans Loans (adj.) Loans Loans Loans (adj.) Canadian Banking Retail 0.28 0.28 0.25 0.24 0.25 0.25 0.28 0.28 0.31 0.35 0.35 Commercial 0.09 0.09 (0.04) 0.06 0.06 0.15 0.21 0.231 0.09 0.061 0.061 Total 0.25 0.25 0.21 0.21 0.22 0.23 0.27 0.271 0.28 0.301 0.301 International Banking Retail 2.26 2.16 2.36 2.252 2.38 2.21 2.33 2.36 2.36 3.183 2.352 Commercial 0.55 0.341 0.38 0.312 0.07 (0.06)1 0.19 0.261 0.27 0.311, 3 0.301,2 Total 1.38 1.221 1.33 1.232 1.20 1.051 1.23 1.281 1.29 1.711,3 1.301,2 Global Banking and Markets 0.02 (0.05) (0.06) All Bank 0.46 0.42 0.41 (0.05) 0.40 0.42 (0.07) (0.09)1 0.39 (0.01) 0.47 0.47 (0.07) (0.02) (0.02) (0.02) 0.49 0.61 0.51 1 Excludes provision for credit losses on debt securities and deposit with banks 2 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions 3 On a reported basis; includes impact of Day 1 PCLs from acquisitions Scotiabank® 15 15#16GILS & NET WRITE-OFF RATIOS Stable GILs and write-off ratios GILS ($B) and GIL RATIO ON IMPAIRED LOANS 1, 2 95 bps 95 bps 89 bps 90 bps 89 bps 5.3 5.3 5.4 5.1 5.1 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 GILs on impaired loans GILS ratio on impaired loans YEAR-OVER-YEAR HIGHLIGHTS • GILS1 were up 1% Q/Q and 4% Y/Y primarily due to acquisitions and underlying portfolio growth Net write-offs³ were down 2% Q/Q and up 23% Y/Y o Higher net write-offs in International Banking and Canadian Banking compared to last year NET WRITE-OFFS ($MM) AND NET WRITE-OFFS RATIO3, 4 50 bps 50 bps 45 bps 45 bps 39 bps 732 716 635 580 534 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Net write-offs ― Net write-offs ratio 1 Excludes impact of acquisitions in Q2/19 of $18 million (Q3/18: $233 million) 2 As a percentage of period end loans and acceptances 3 Net write-offs are net of recoveries 4 As a percentage of average loans and acceptances Scotiabank® 16 16#17APPENDIX Scotiabank® 17#18NET INCOME AND ADJUSTED DILUTED EPS RECONCILIATION Net Income ($MM) and EPS ($ per share) Net Income attributable to common shareholders Q2/18 Q1/19 Q2/19 $2,042 $2,107 $2,125 1 Dilutive impact of share-based $2 $41 $37 payment options and others Net Income attributable to common shareholders $2,044 $2,148 $2,162 • Weighted average number of common 1,198 1,226 1,224 shares outstanding Dilutive impact of share-based 1 5 29 28 payment options and others Weighted average number of diluted (2) 1,203 1,255 1,252 common shares outstanding Reported Basic EPS $1.70 $1.72 $1.74 Dilutive impact of share-based 2 ($0.01) ($0.01) payment options and others Reported Diluted EPS $1.70 $1.71 $1.73 Impact of Acquisition-related costs on $0.01 $0.04 ($0.03) diluted earnings per share1 Adjusted Diluted EPS $1.71 $1.75 $1.70 • Quarterly diluted common shares outstanding may be impacted by dilution on sold put options relating to the following legal entities: • Colpatria Colfondos BBVA Chile Canadian Tire Financial Services Impact on diluted EPS remains stable NCIB to repurchase up to 24 million common shares renewed effective June 4, 2019 1 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCLs, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and net gain on divestitures Scotiabank® 18#19SUMMARY OF ADJUSTING ITEMS Adjusting items reduced reported diluted EPS by $0.03 in Q2/19 Q2/18 Q1/19 Adjusting Items (Pre-Tax) ($MM) Q2/19 Acquisition-Related Costs Day 1 PCL on acquired performing financial instruments - International Banking Integration Costs - 31 151 25 Canadian Banking Canadian Banking ex. Wealth - International Banking 24 19 Amortization of Intangibles¹ 18 30 28 Canadian Banking 7 14 14 Canadian Banking ex. Wealth 5 International Banking 11 56 16 55600076 ± 14 Other Net Gain on Divestitures Total (Pre-Tax) Adjusting Items (After-Tax and NCI) ($MM) Acquisition-Related Costs Day 1 PCL on acquired performing financial instruments - International Banking Integration Costs Canadian Banking Canadian Banking ex. Wealth International Banking 2 Amortization of Intangibles² Canadian Banking Canadian Banking ex. Wealth International Banking Other Net Gain on Divestitures Total (After-Tax and NCI) (173) 18 61 31 Q2/18 Q1/19 Q2/19 Tax NCI After-Tax and NCI 44 41 66 17 3 15 14 72158424 11 7672242 12 3548 13 10 11 20 10 10 12242 (32) 1 (142) 13 39 27 45 (41) Scotiabank® 19 1 Excludes amortization of intangibles related to software (pre-tax) 2 Excludes amortization of intangibles related to software (after-tax)#20OTHER ITEMS IMPACTING FINANCIAL RESULTS1 Other items increased adjusted net income by $6 million in Q2/19 Real estate gains Total Interac gain International Banking (Pre-Tax) ($MM) Canadian Banking² 2 One month reporting lag elimination 34 21 24 23 40 - 61 58 Q1/18 Q2/18 Q3/18 Q4/18 Q2/19 vs YTD19 vs Q1/19 Q2/19 Q2/18 YTD18 21 21 18 (34) (34) (17) (30) - - (40) ཆ| 23 4 21 8 7 (51) (104) One month reporting lag elimination Total Other 386 380 30 30 58 58 (36) (36) 22 22 22 Total Canadian Banking² 2 Employee benefits re-measurement credit Total (Pre-Tax) (After-Tax and NCI) ($MM) One month reporting lag elimination Real estate gains Interac gain Total 203 203 (203) - - - - - (203) 264 94 23 51 66 7 (87) 285 Q2/19 vs YTD19 vs Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q2/18 YTD183 17 225 - (25) (25) 20 19 17 6 CO 6 (14) (25) 35 - - - (35) 52 45 19 17 6 6 (39) (85) International Banking One month reporting lag elimination Total 226 26 26 22 22 41 22 41 (26) 15 (26) 15 55 Other Employee benefits re-measurement credit Total 150 (150) 150 - - - - - - (150) Total (After-Tax and NCI) 202 Impact on diluted earnings per share $0.17 $0.00 ($0.06) ($0.18) 1 Items on this page have not been formally adjusted for determining the bank's Adjusted Net Income and Adjusted Diluted EPS 2 Effective Q1/19, the Bank adopted IFRS 15 which resulted in a re-classification prospectively (Q2/19 - $50 million; Q1/19 - $55 million) in Canadian Banking from Other Expenses to Card Revenues, 71 $0.06 19 $0.02 39 $0.03 47 $0.04 6 (65) (220) with no impact to Net Income 3 May not add due to rounding Scotiabank® 20#21STABLE CORE BANKING MARGIN Core Banking Margin (%) 2.47% 2.46% 2.47% 2.45% 2.45% Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 YEAR-OVER-YEAR HIGHLIGHTS • Change in business mix from the impact of International Banking acquisitions and higher margins in Canadian Banking More than offset by lower margins in Global Banking and Markets and lower contribution from asset/liability management activities Scotiabank® 21#22DIGITAL PROGRESS UPDATE Steady progress against 2018 Investor Day digital targets Digital Retail Sales¹ Digital Adoption² In-Branch Financial Transactions³ +1,400 bps +900 bps -900 bps 25 35 26 33 22 23 29 20 26 17 15 11 F2016 F2017 F2018 Q2/19 F2016 F2017 F2018 Q2/19 F2016 F2017 F2018 Q2/19 Goal >50% Goal >70% · Strong progress made in across key markets, especially in Colombia and Chile • Adoption grew 400bps against Q2 of last year 1 Canada: F2017 22%, F2018 26%, Q2/19 25% 2 Canada: F2017 36%, F2018 38%, Q2/19 40% 3 Canada: F2017 17%, F2018 15%, Q2/19 13% PACS: F2017 13%, F2018 19%, Q2/19 25% PACS: F2017 20%, F2018 26%, Q2/19 28% PACS: F2017 29%, F2018 24%, Q2/19 21% • Goal <10% In-branch transactions continued to decline at a steady pace Scotiabank® 22 22#23CANADIAN BANKING - REVENUES, NIM & PRODUCTIVITY Good commercial lending and wealth management revenue growth REVENUE (TEB) ($MM) +5% Y/Y NIM 2.46% 2.46% 2.45% 2.44% 2.43% 3,415 3,380 3,231 904 920 766 +20% Y/Y Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 +6% 558 610 589 Y/Y ADJUSTED PRODUCTIVITY RATIO -2% 1,907 1,901 1,871 Y/Y 50.6% 50.0% 50.0% 49.5% 48.8% Q2/18 Q1/19 Q2/19 Retail Commercial Wealth Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Scotiabank® 23#24CANADIAN BANKING - VOLUME GROWTH Strong business loan and retail deposit growth AVERAGE DEPOSITS ($B)¹ AVERAGE LOANS & ACCEPTANCES ($B)1 +3% Y/Y +11% Y/Y 262 257 342 344 333 53 55 51 +9% Y/Y 237 84 82 7 7 +15% 7 73 Y/Y 71 74 73 73 +3% Y/Y 204 208 208 +2% Y/Y 174 178 +8% Y/Y 164 Q2/18 Q1/19 Q2/19 Residential mortgages Personal loans Credit cards 1 May not add due to rounding Business Q2/18 Personal Q1/19 Q2/19 Non-personal Scotiabank® 24#25CANADIAN RETAIL: LOANS AND PROVISION (Spot Balances as at Q2/19, $B) % secured PCL PCLs on Impaired Loans $ millions % of avg. net loans (bps) PCLS $217.1 Total Portfolio: $298 billion1; 93% secured² $38.9 $34.0 $7.5 Mortgages 100% Personal Loans³ Lines of Credit Credit Cards 99% 62% 3% Q2/19 Q1/19 Q2/19 Q1/19 Q2/19 Q1/19 Q2/19 Q1/19 6 6 85 71 55 61 71 63 2 1 88 69 70 75 415 349 $ millions 12 94 82 % of avg. net loans (bps) 1 2 50 95 80 28 67 86 88 65 78 43 81 458 241 1 Includes Tangerine balances of $6 billion 2 80% secured by real estate; 13% secured by automotive 3 96% are automotive loans Scotiabank® 25 25#26CANADIAN RESIDENTIAL MORTGAGE PORTFOLIO $110.2 42% Insured $12.9 Total Portfolio: $217 billion (Spot Balances as at Q2/19, $B) $97.3 $39.6 $9.7 $30.6 - $3.6 $16.0 $29.9 $1.8 $11.2 $27.0 $14.2 $11.0 $0.2 $9.5 $8.8 $0.7 58% Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan Uninsured Freehold $188B Condos $29B Average LTV of uninsured mortgages is 55%¹ | New originations² average LTV of 64% in Q2/19 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions. Scotiabank® 26#27Q2 2019 CANADIAN RESIDENTIAL MORTGAGES Credit fundamentals remain strong NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION GVA 63% Q2/18 Q1/19 Q2/19 Canada Total Originations ($B) Uninsured LTV 8.9 9.3 7.1 63% 64% 64% GTA 64% GTA BC & Territories Total Originations ($B) Uninsured LTV 2.8 3.2 2.3 62% 63% 64% 63% GVA Atlantic Prairies 67% ON QC Provinces 64% 64% 66% Total Originations ($B) Uninsured LTV 1.2 1.0 0.9 59% 59% 63% *Average LTV ratios for our uninsured residential mortgages originated during the quarter FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO1 Average FICO Score Canada 790 GTA 791 GVA 795 58% 15% 11% 12% 4% < 635 636-706 707-747 748-788 > 788 FICO is a registered trademark of Fair Isaac Corporation 1 FICO® distribution for Canadian uninsured portfolio based on score ranges at origination Only <0.72% of uninsured portfolio has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $126 billion as at Q2/2019 Scotiabank® 27#28INTERNATIONAL BANKING – REVENUE GROWTH - Latin America, driven by the Pacific Alliance, continues to deliver strong revenue growth BY TYPE (TEB) ($MM)¹ BY REGION (TEB) ($MM) 1 +22% +22% Y/Y2,3 Y/Y2,3 3,331 3,356 +32% 3,331 3,356 Y/Y 144 191 +26% 2,742 Y/Y3 +6% 2,742 835 800 140 Y/Y 1,251 1,235 984 729 +20% Y/Y3 +28% Y/Y3 2,352 2,365 2,080 2,121 1,873 1,758 Q2/18 Net interest income Q2/19 Q1/19 Q2/19 Q2/18 Q1/19 Non-interest revenue Latin America Caribbean & Central America 1 Y/Y growth rates are on a constant dollar basis 2 Revenue growth of 22% Y/Y on a reported basis 3 Includes the impact of acquisitions Asia Scotiabank® 28#29INTERNATIONAL BANKING - VOLUME GROWTH Strong loan and deposit growth AVERAGE LOANS & ACCEPTANCES ($B)1 AVERAGE DEPOSITS ($B)¹ 1, 2 +29% Y/Y3,4 154 149 +33% +16% Y/Y4,5 117 118 10 10 Y/Y4 24 101 24 +25% Y/Y4 41 43 +16% Y/Y4 24 119 8 19 31 36 42 40 0 +34% Y/Y4 75 78 +27% Y/Y4 61 Q2/18 Q1/19 Business Q2/19 Residential mortgages Personal loans Credit cards 1 Y/Y growth rates are on a constant dollar basis 2 Includes deposits from banks 3 Average loans & acceptances growth of 30% Y/Y on a reported basis 4 Includes the impact of acquisitions 5 Average deposits growth of 17% Y/Y on a reported basis 76 75 65 559 +16% Y/Y4 Q2/18 Q1/19 Non- Personal Personal Q2/19 Scotiabank® 29#30INTERNATIONAL BANKING - REGIONAL LOAN GROWTH Strong loan growth in Latin America bolstered by acquisitions AVERAGE LOANS & ACCEPTANCES ($B)¹ CONSTANT DOLLAR LOAN VOLUMES, Y/Y +29% Y/Y2,3 Retail Commercial4 Total 154 149 +1% Latin America 45% 34% 39% 32 Y/Y 32 119 C&CA 1% 0% 1% 31 +39% 122 117 Y/Y3 88 Q2/18 Latin America Q1/19 Q2/19 Caribbean & Central America 1 Y/Y growth rates are on a constant dollar basis 2 Average loans & acceptances growth of 30% Y/Y on a reported basis 3 Includes the impact of acquisitions 4 Excludes bankers acceptances Total 31% 27% 29% Scotiabank® 30#31INTERNATIONAL BANKING - PACIFIC ALLIANCE Continue to deliver strong results across the Pacific Alliance countries 1, 2, 3 FINANCIAL PERFORMANCE AND METRICS ($MM) Q2/19 Q1/19 Q2/18 Q/Q Y/Y Revenue ($MM) 2,179 2,192 1,723 -3%5 +28% Expenses ($MM) 1,010 1,006 806 -2% +27% Net Income ($MM) 496 568 448 -15%5 +11% NIM 4.65% 4.61% 4.98% +4bps (33bps) Productivity Ratio 46.4% 45.9% 46.7% +46bps (37bps) 18% Colombia 29% Chile REVENUE $2.2B GEOGRAPHIC DISTRIBUTION4 7% 27% Colombia Mexico 26% 28% Chile Peru NET INCOME $496MM 11% 28% Colombia Mexico AVG EARNING ASSETS 28% Mexico $130B 37% 40% 21% Chile Peru Peru 1 Attributable to equity holders of the Bank 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 3 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 4 For the 3 months ended April 30, 2019 5 Excluding benefit of alignment of reporting period in Peru in Q1'19 Revenues flat Q/Q, and Net Income down (8%) Q/Q on a constant basis Scotiabank® 31#32. • • • • SCOTIABANK IN THE PACIFIC ALLIANCE COUNTRIES Well positioned in high quality, growth markets PAC Highlights 230 million people¹, median age of 292 9th largest economy in the world1 Banking penetration <50%1 Sovereign ratings all "Investment Grade"3 64% of exports related to manufacturing4 Largest trading partner is the United States4 . • Scotiabank in the PAC Only global bank present in all PAC countries Top 3 bank in Chile and Peru 28-year operating history (average) 2018 "Bank of the Year", Latin Finance Mexico Peru Chile Colombia Scotiabank Market Share5 Market Share Ranking5 Strengths 7.4% 6th 17.8% 3rd 14.1% 3rd Auto and Mortgages P&C and Mortgages Credit Cards, Mortgages 6.1% 5th Credit Cards, Personal Average Total Loans (C$B) $29.3 $21.0 $48.0 $12.6 Revenue (C$B) $2.3 $2.2 $2.2 $1.5 Net Income after NCI 7,8 (C$MM) $644 $750 $507 $122 ROE 6,8 20% 24% # of Employees 9,1 13,024 11,471 9% 9,146 8% 8,884 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 March, 2019, inc. M&A 6 For the three months ended April 30, 2019 7 For the trailing 12 months ended April 30, 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 April 30, 2019 Scotiabank® 32#33INTERNATIONAL RETAIL: LOANS AND PROVISION Total Portfolio1: $77 billion; 67% secured (Spot Balances as at Q2/19, $B¹) $19.1 $2.0 $4.9 Mortgages ($43.1B) $13.3 $0.8 Personal loans ($22.8B) $3.8 Credit cards ($10.1B) $12.2 $8.7 $26.4 $3.0 $6.3 $9.6 $17.1 $2.1 $7.6 $2.2 $4.7 $3.1 $2.8 $2.3 PCL C&CA Mexico Chile Peru Colombia Q2/19 Q1/19 Q2/19 Q1/19 Q2/19 Q1/19 Q2/19 Q1/19 Q2/19 Q1/19 PCLs on Impaired Loans $ millions 70 63 64 59 94 75 78 106 99 101 % of avg. net loans (bps) 156 138 218 199 148 120 372 517 549 554 PCLS $ millions 702 78 88 68 69 69 101 96 96 842 74 82 89 % of avg. net loans (bps) 1572 170 231 233 159 155 4022 364 455 485 1Total Portfolio includes other smaller portfolios 2Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans Scotiabank® 33#34GLOBAL BANKING AND MARKETS - REVENUE AND LOANS REVENUE (TEB) ($MM) 1 0% Y/Y 1,155 1,151 1,075 282 344 258 260 174 185 643 622 613 Q2/18 Business banking FICC AVERAGE BUSINESS AND GOVERNMENT LOANS & ACCEPTANCES ($B) 80 +16% Y/Y 92 92 93 Q2/19 Q2/18 Q1/19 Q2/19 Q1/19 Global Equities 1 International Banking revenue contribution and assets reported in International Banking's results Scotiabank® 34#35- GLOBAL BANKING AND MARKETS – REGIONAL REVENUE AND AVERAGE ASSETS 5% Asia GEOGRAPHIC REVENUE1,2 9% Europe REVENUE (TEB) $1.2B ASSETS BY GEOGRAPHY1,2 43% 7%- Canada Asia 43% US 15% Europe AVG ASSETS $361B 39% US 39% Canada 1 For the 3 months ended April 30, 2019 2 International Banking revenue contribution and assets reported in International Banking's results Scotiabank® 35#36(# of days in quarter) TRADING RESULTS 1 TRADING LOSS DAY IN Q2/19 Q2/19 TRADING REVENUE AND ONE-DAY TOTAL VAR 25 10 18 16 14 12 10 20 15 10 5 8 6 4 2 السا 0 -5 -10 -15 0 -20 -1 2 3 5 6 7 8 9 10 15 20 25 Q2/19 Daily Trading Revenues ($MM) Average 1-Day Total VaR Q2/19: $ 11.3 MM Q1/19: $12.6 MM Q2/18: $14.7 MM 1-day total VaR Actual Daily Revenue Scotiabank® 36#37ECONOMIC OUTLOOK IN KEY MARKETS Macro economic growth outlook remains positive for the Pacific Alliance countries Real GDP (Annual % Change) Country 2017 2018 2019F 2020F Canada 3.0 1.8 1.6 2.1 U.S. 2.2 2.9 2.4 1.9 Mexico 2.1 2.0 1.4 1.3 Peru 2.5 4.0 4.0 4.0 Chile 1.5 4.0 3.2 3.2 Colombia 1.8 2.6 3.4 3.8 Source: Scotia Economics, as of April 12, 2019 Scotiabank® 37#38PROVISION FOR CREDIT LOSSES ($MM) Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 PCLs on Impaired PCLs on Total PCLs on PCLs on PCLs on Total Total PCLS Total Total Total Impaired PCLs Impaired Impaired Impaired PCLS PCLs PCLS PCLs Loans Loans (adj.) Loans Loans Loans (adj.) Canadian Banking Canadian Retail 193 193 179 174 181 179 201 202 220 245 245 Canadian Commercial 11 12 (5) 7 7 19 28 311 13 71 71 Total Canadian Banking 204 205 174 181 188 198 229 233 233 2521 2521 International Banking International Retail 308 294 337 3203 412 384 416 421 421 568 4193 International Commercial 80 461 60 471,3 541 281 35 491 51 601 581,3 Total 3882 3401,2 3972 3671, 2, 3 4661,2 4121,2 451 470 472 6281 4771,3 Global Banking and Markets 3 (11) (12) (10) (17) (20)1 (1) (16) (5) (6) (6) Other - - - 11 - 11 - (1)1 (1)1 All Bank 595 534 559 539 637 590 679 688 700 873 722 1 Includes provision for credit losses on debt securities and deposit with banks of -$1 million in Canadian Banking (Q1/19: $2 million), -$1 million (Q2/18: -$4 million, Q3/18: $Nil, Q4/18: $41 million (impaired) and $40 million (total), Q1/19: $2 million) in International Banking, $nil in Global Banking and Markets (Q4/18: $1 million) and $1 million (Q2/18: $Nil, Q3/18: $1 Million, Q4/18: $1 million, Q1/19: -$1 million) in Other 2 Not comparable to periods prior to Q1/18, which were net of acquisition benefits 3 Figures on an adjusted basis; adjusted for Day 1 PCLs from acquisitions Scotiabank® 38#39($MM) 1000 900 800 700 600 500 400 300 200 100 0 IMPAIRED LOANS NET FORMATIONS OF IMPAIRED LOANS1,2 IAS 39 IFRS 9 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 ($B) 1 2 4 5 GROSS IMPAIRED LOANS 1,2,3 6 IAS 39 IFRS 9 1.15% 1.10% 1.05% 3 1.00% Q2/17 Q3/17 Q417 Q1/18 Net formations Average GILS (LHS) GILS as % of loans & BAS (RHS) 1 Prior to Q1/18, excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. Effective Q1/18, includes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico 2 2018 and later amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Excludes impact of acquisitions in Q2/19 of $18 million (Q3/18: $233 million) Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 0.95% 0.90% 0.85% Scotiabank® 39#40GILS & NET WRITE-OFF RATIOS Stable GILs and net write-off ratios Gross impaired loans Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 (As a % of Period End Loans & Acceptances)² Canadian Banking 0.30% 0.30% 0.29% 0.31% 0.31% International Banking 3.08% 3.10% 2.70% 2.58% 2.54% Net write-offs Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 (As a % of Average Net Loans & Acceptances) 1, 3 Canadian Banking 0.26% 0.23% 0.23% 0.28% 0.28% International Banking 1.26% 1.14% 1.24% 1.34% 1.26% Global Banking and Markets 0.49% 0.43% 0.30% 0.33% 0.28% Global Banking and Markets 0.08% (0.03)% 0.09% All Bank 0.95% 0.95% 0.89% 0.90% 0.89% 1 Annualized 2 Excludes impact of acquisitions in Q2/19 of $18 million (Q3/18: $233 million) 3 Net write-offs are net of recoveries All Bank 0.45% 0.39% 0.45% 0.50% 0.50% Scotiabank® 40#41RETAIL 90+ DAYS PAST DUE LOANS Favourable credit quality across all markets and products Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 CANADA Mortgages 0.19% 0.20% 0.20% 0.21% 0.21% Personal Loans 0.57% 0.56% 0.56% 0.58% 0.56% Credit Cards 1.08% 0.89% 0.91% 0.95% 0.92% Secured and Unsecured Lines of Credit 0.30% 0.28% 0.29% 0.30% 0.30% Total 0.27% 0.27% 0.28% 0.29% 0.28% INTERNATIONAL Q2/18 Q3/181 Q4/181 Q1/191 Q2/191,2 Mortgages 3.70% 3.28% 3.18% 3.24% 3.16% Personal Loans 3.64% 3.45% 3.56% 3.59% 3.52% Credit Cards 2.87% 3.03% 2.96% 3.01% 3.01% TOTAL 3.56% 3.31% 3.25% 3.30% 3.23% 1 Includes acquisitions in Chile, Colombia. 2 Includes acquisitions in Peru and Dominican Republic. Scotiabank® 41#42FX MOVEMENTS VERSUS CANADIAN DOLLAR Canadian (Appreciation) / Depreciation Currency Q2/19 Q1/19 Q2/18 Q/Q Y/Y SPOT U.S. Dollar 0.746 0.761 0.779 1.9% 4.2% Mexican Peso 14.15 14.56 14.56 2.8% 2.8% Peruvian Sol 2.469 2.547 2.534 3.0% 2.6% Colombian Peso 2,413 2,363 2,188 (2.1%) (10.3%) Chilean Peso 505.5 499.2 477.7 (1.3%) (5.8%) AVERAGE U.S. Dollar 0.751 0.751 0.784 0.0% 4.2% Mexican Peso 14.36 14.89 14.54 3.5% 1.2% Peruvian Sol 2.485 2.522 2.543 1.5% 2.3% Colombian Peso 2,354 2,396 2,216 1.7% (6.2%) Chilean Peso 499.1 509.8 471.2 2.1% (5.9%) Scotiabank® 42#43INVESTOR RELATIONS CONTACT INFORMATION 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] Scotiabank® 43 43