International Banking Volume Growth and Sector Highlights

IFRS 9 Underlying credit performance remains strong, but expect greater volatility from IFRS 9 TIMING DISCLOSURE • Prospective adoption effective November 1, 2017 ⚫ First set of interim financial statements under IFRS 9 for the three months ended January 31, 2018 (fiscal Q1/18) . Adjustment to opening balance sheet through retained earnings • No restatement of prior period comparative statements TRANSITION IMPACT • Reduction of total shareholders equity by approximately $600 million after-tax • A reduction of CET1 ratio of 15 bps, mainly from the transition adjustment's impact on shareholder's equity and deferred tax assets Scotiabank® | 9

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