Credit Performance Review

Q1 2019 Financial Performance Strong revenue and balance sheet growth $MM, except EPS Reported Q1/19 Y/Y Q/Q Net Income $2,247 (4%) (1%) Diluted EPS $1.71 (8%) Revenue $7,604 +7% +2% Expenses $4,171 +19% +3% • Productivity Ratio 54.9% +550bps +30bps . YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income down 3%2 Excluding pension revaluation benefit, diluted EPS was in-line with last year Revenue up 7% ○ Mostly relating to acquisitions Core Banking Margin 2.45% (1bp) (2bps) PCL Ratio 1 47bps +5bps +8bps ○ Net interest income up 9% PCL Ratio on Impaired Loans 1 47bps +4bps +5bps Adjusted² · Net Income $2,291 (3%) (2%) Diluted EPS $1.75 (6%) (1%) Expenses $4,110 +18% +4% Productivity Ratio 54.1% +500bps +80bps DIVIDENDS PER COMMON SHARE +0.03 +0.02 +0.03 ○ Non-interest income up 6% Expenses up 18% 2 o Acquisitions and the prior year's benefits re- measurement contributed to approximately two- thirds of the expense growth o Remaining growth due to technology, regulatory initiatives, share-based payments, other business growth expenses • PCL ratio¹ on impaired loans up 4 bps 0.85 0.85 0.82 0.82 0.79 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 ■ Announced Dividend Increase 1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 2 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions Scotiabank® 15

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