2018 Financial Performance

Canadian Household Credit Growth Moderating Public policy changes are moderating growth in household credit • Total household credit growing 4.4% in nominal terms in 2018, vs 2008 peak of 12% y/y • Consumer loans excluding mortgages (cards, HELOCs, unsecured lines, auto loans, etc.) are growing 4.4% in 2018 vs >6% in late-2017 Mortgage credit growing 4.4% year-to-date vs 2008 peak of 13% HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 20 %, 3-month moving average 20 %, 3-month moving average 20 18 %, 3-month moving average 18 16 15 y/y % 14 yly % change 16 change m/m% 14 y/y % 12 change, SA 10 change 12 10 10 8 5 CO 6 4 му 8 CO + 2 0 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. m/m% change, SA 2 -5 0 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. m/m% change, SA 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. Scotiabank® 43

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