2018 Financial Performance

Q4 2018 Global Banking and Markets Financial Performance Solid loan growth, strong credit quality and lower productivity ratio FINANCIAL PERFORMANCE AND METRICS ($MM) YEAR-OVER-YEAR HIGHLIGHTS Q4/18 Y/Y Q/Q . Revenue $1,073 (1%) (3%) . Expenses $553 (3%) +2% PCLs ($20) N/A N/A Net Income $416 +6% (6%) Productivity Ratio 51.5% (80bps) +260bps Net Interest Margin 1.72% (16bps) (10bps) PCL Ratio 2,3 PCL Ratio on Impaired Loans 2, 3 (0.09%) (13bps) (0.07%) (11bps) (1bp) (4bps) • Reported Net Income up 6% Loans up 7% o U.S. loans up 13% NIM down 16 bps ○ Mainly driven by lower deposit and lending margins Expenses down 3% Productivity ratio improved 80 bps ⚫ PCL ratio 2, 3 improved by 13 bps ○ Impaired loan provision reversals in Europe NET INCOME AND ROE 16.2% 14.9% 16.9% 15.6% 15.3% 447 454 441 416 391 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 Attributable to equity holders of the Bank 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures Scotiabank® 27

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