FIXED INCOME

PRESENTATION

First Quarter 2021

As of February 24, 2021

FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES

2

Caution Regarding Forward-Looking Statements

From time to time, the Bank makes written forward-looking statements such as those contained in this document, in other filings with Canadian securities regulators, and in other communications.

In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made in accordance with applicable

securities legislation in Canada and the United States. Forward-looking statements in this document may include, but are not limited to, statements with respect to the economy—particularly the

Canadian and U.S. economies—market changes, the Bank’s objectives, outlook and priorities for fiscal year 2021 and beyond, its strategies or future actions for achieving them, expectations for

the Bank’s financial condition, the regulatory environment in which it operates, the potential impacts of and the Bank’s response to the COVID-19 pandemic, and certain risks it faces. These

forward-looking statements are typically identified by future or conditional verbs or words such as “outlook”, “believe”, “foresee”, “forecast”, “anticipate”, “estimate”, “project”, “expect”, “intend”,

“plan”, and similar expressions of future or conditional verbs such as “will”, “may”, “should”, “could” or “would”. Such forward-looking statements are made for the purpose of assisting the holders of

the Bank’s securities in understanding the Bank’s financial position and results of operations as at and for the periods ended on the dates presented, as well as the Bank’s vision, strategic

objectives and its financial performance targets, and may not be appropriate for other purposes.

By their very nature, these forward-looking statements require assumptions to be made and involve inherent risks and uncertainties, both general and specific. Assumptions about the performance

of the Canadian and U.S. economies in 2021, including in the context of the COVID-19 pandemic, and how that will affect the Bank’s business are among the main factors considered in setting the

Bank’s strategic priorities and objectives, including provisions for credit losses. In determining its expectations for economic conditions, both broadly and in the financial services sector in particular,

the Bank primarily considers historical economic data provided by the governments of Canada, the United States and certain other countries in which the Bank conducts business, as well as their

agencies.

There is a strong possibility that the Bank’s express or implied predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that its assumptions may not be

confirmed and that its vision, strategic objectives and financial performance targets will not be achieved. The Bank recommends that readers not place undue reliance on forward-looking

statements, as a number of factors, many of which are beyond the Bank’s control, including the impacts of the COVID-19 pandemic, could cause actual results to differ significantly from the

expectations, estimates or intentions expressed in these forward-looking statements. These factors include credit risk, market risk, liquidity and funding risk, operational risk, regulatory compliance

risk, reputation risk, strategic risk and environmental and social risk, all of which are described in more detail in the Risk Management section beginning on page 68 of the Bank’s 2020 Annual

Report, and more specifically, general economic environment and financial market conditions in Canada, the United States and certain other countries in which the Bank conducts business;

regulatory changes affecting the Bank’s business; geopolitical and sociopolitical uncertainty; important changes in consumer behaviour; the housing and household indebtedness situation and real

estate market in Canada; changes in the Bank’s customers’ and counterparties’ performance and creditworthiness; changes in the accounting policies the Bank uses to report its financial condition,

including uncertainties associated with assumptions and critical accounting estimates; tax laws in the countries in which the Bank operates, primarily Canada and the United States; changes to

capital and liquidity guidelines and to the manner in which they are to be presented and interpreted; changes to the credit ratings assigned to the Bank; potential disruption to key suppliers of goods

and services to the Bank; potential disruptions to the Bank’s information technology systems, including evolving cyberattack risk as well as identity theft and theft of personal information; and

possible impacts of catastrophic events affecting local and global economies, including natural disasters and public health emergencies such as the COVID-19 pandemic. Statements about the

expected impacts of the COVID-19 pandemic on the Bank’s business, results of operations, reputation, financial position and liquidity, and on the global economy may be inaccurate and differ,

possibly materially, from what is currently expected as they depend on future developments that are highly uncertain and cannot be predicted. The foregoing list of risk factors is not exhaustive.

Additional information about these factors can be found in the COVID-19 Pandemic and Risk Management sections of the Bank’s 2020 Annual Report and in the Bank’s Report to Shareholders for

the First Quarter of 2021, especially in the COVID-19 Pandemic section. Investors and others who rely on the Bank’s forward-looking statements should carefully consider the above factors as well

as the uncertainties they represent and the risks they entail. 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 it or on its behalf.

Non-GAAP Financial Measures

The quantitative information in this document has been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board

(IASB), unless otherwise indicated, and should be read in conjunction with the Bank’s 2020 Annual Report and the Bank’s Report to Shareholders for the First Quarter of 2021.

The Bank uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with GAAP,

which are based on IFRS. Presenting non-GAAP financial measures helps readers to better understand how management analyzes results, shows the impacts of specified items on the results of

the reported periods, and allows readers to assess results without the specified items if they consider such items not to be reflective of the underlying performance of the Bank’s operations. The

Bank cautions readers that it uses non-GAAP financial measures that do not have standardized meanings under GAAP and therefore may not be comparable to similar measures used by other

financial institutions.

For additional information on non-GAAP financial measures, please refer to the Financial Reporting Method starting on page 6 of the Bank’s Report to Shareholders for the First Quarter of 2021

and on page 22 of the Bank’s 2020 Annual Report, which are available at nbc.ca/investorrelations.

Note: National Bank fiscal year ends October 31.

OVERVIEW

NATIONAL BANK

OF CANADA

Q1 2021 – STRONG START TO THE YEAR

4

Revenues(1)

$2,281 MM+13% YoY

PTPP(2)

$1,101 MM+18% YoY(3)

Total PCL

$81 MM-9% YoY

EPS

$2.15+26% YoY(3)

CET1

11.9%ROE(4)

21.2%

(1) Total revenues presented on a taxable equivalent basis (TEB). This is a non-GAAP measure. See slide 2.

(2) Pre-Tax Pre-Provision earnings (PTPP) is the difference between total revenues (TEB) and non-interest expenses. This is a non-GAAP measure. See slide 2.

(3) Excluding Specified Items in the Q1-20 comparable period, which are non-GAAP measures. See slides 2 and 40.

(4) Return on Equity (ROE) does not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by others. See slide 2.

▪ Strong business performance from all segments

- Revenues up 13% YoY(1)

- PTPP up 18% YoY(2)(3)

- EPS up 26% YoY(3)

- Operating leverage of 4.0%

▪ Prudently provisioned

- Total reserves: $1.35B (+76% YoY)

▪ Maintaining high capital levels while generating strong organic

growth

▪ Industry-leading ROE(3)

TOTAL BANK – Q1 21 RESULTS

5

Total Bank Summary Results – Q1 2021

($MM, TEB)▪ Revenues up 13% YoY and PTPP

up 18% YoY(1)(2)

- Robust operating leverage

▪ EPS of $2.15, up 26% YoY(1)

▪ Industry-leading ROE of 21.2%(3)%

(1) Excluding Specified Items in the Q1-20 and Q4-20 comparable periods, which are non-GAAP measures. See slides 2 & 40.

(2) Pre-Tax Pre-Provision earnings (PTPP) is the difference between total revenues (TEB) and non-interest expenses. This is a non-GAAP measure. See slide 2.

(3) Return on Equity (ROE) does not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by others. See slide 2.

Results Ex. Specified Items(1) Q1 21 Q4 20 Q1 20 QoQ YoY

Revenues 2,281 2,073 2,010 10% 13%

Non-Interest Expenses 1,180 1,140 1,078 4% 9%

Pre-Tax / Pre-Provisions 1,101 933 932 18% 18%

PCL 81 110 89 (26%) (9%)

Net Income 761 615 620 24% 23%

Diluted EPS $2.15 $1.69 $1.70 27% 26%

Efficiency Ratio  51.7% 55.0% 53.6% -330 bps -190 bps

Return on Equity 21.2% 17.1% 18.3%

Reported Results Q1 21 Q4 20 Q1 20 QoQ YoY

Revenues 2,281 2,049 2,010 11% 13%

Non-Interest Expenses 1,180 1,259 1,091 (6%) 8%

Pre-Tax / Pre-Provisions 1,101 790 919 39% 20%

PCL 81 110 89 (26%) (9%)

Net Income 761 492 610 55% 25%

Diluted EPS $2.15 $1.36 $1.67 58% 29%

Efficiency Ratio  51.7% 61.4% 54.3% -970 bps -260 bps

Return on Equity 21.2% 13.7% 18.0%

Key Metrics Q1 21 Q4 20 Q1 20 QoQ YoY

Avg Loans & BAs - Total 165,588 162,092 154,558 2% 7%

Avg Deposits - Total 227,641 217,953 198,974 4% 14%

CET1 Ratio 11.9% 11.8% 11.7%

Q1 2021 – SEGMENT HIGHLIGHTS

6

P&C Banking

Revenues: +3% YoY

PTPP(1): +3% YoY

▪ Strong growth on both sides of the balance sheet

▪ Strong housing market with mortgages up 8% YoY

▪ Continued support to our clients through uncertain times

Wealth Management

Revenues: +11% YoY

PTPP(1): +19% YoY

▪ Strong net sales, favorable markets and elevated transaction activity

▪ AUA up 7% YoY; AUM up 13% YoY

Financial Markets

Revenues(2): +26% YoY

PTPP(1): +35% YoY

▪ Strong performance across Financial Markets with Global Markets revenues up 23% YoY

and C&IB revenues up 31% YoY

▪ Franchise remains well positioned in current context

USSF&I

Revenues: +41% YoY

PTPP(1): +63% YoY

▪ ABA: Strong growth (net income up 39% YoY) and strong client acquisition

▪ Credigy: Strong quarter (net income up 84% YoY)

▪ International segment well positioned to deliver double-digit earnings growth in F2021

(1) Pre-Tax Pre-Provision earnings (PTPP) is the difference between total revenues (TEB) and non-interest expenses. This is a non-GAAP measure. See slide 2.

(2) Revenues presented on a taxable equivalent basis (TEB). This is a non-GAAP measure. See slide 2.

PERSONAL AND COMMERCIAL BANKING

P&C Summary Results – Q1 2021

($MM)

P&C Net Interest Margin(1)

7

▪ Revenues up 3% YoY:

- Continued momentum on both sides of the

balance sheet

- Partly offset by lower margin and lower client

activity in personal banking

▪ NIM relatively stable QoQ

2.21% 2.22%2.15% 2.19% 2.18%

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

Q1 21 Q4 20 Q1 20 QoQ YoY

Revenues 902 881 879 2% 3%

Personal 554 545 545 2% 2%

Commercial 348 336 334 4% 4%

Non-Interest Expenses 490 476 479 3% 2%

Pre-Tax / Pre-Provisions 412 405 400 2% 3%

PCL 56 67 70 (16%) (20%)

Net Income 262 249 242 5% 8%

Key Metrics Q1 21 Q4 20 Q1 20 QoQ YoY

Avg Loans & Bas 121,478 118,994 115,445 2% 5%

Personal 82,857 81,000 77,903 2% 6%

Commercial 38,621 37,994 37,542 2% 3%

Avg Deposits 74,229 72,208 64,388 3% 15%

Personal 36,102 35,441 31,939 2% 13%

Commercial 38,127 36,767 32,449 4% 17%

NIM (%) 2.18% 2.19% 2.21% (0.01%) (0.03%)

Efficiency Ratio (%) 54.3% 54.0% 54.5% +30 bps -20 bps

PCL Ratio 0.18% 0.22% 0.24% (0.04%) (0.06%)

(1) NIM is on Earning Assets.

WEALTH MANAGEMENT

8

Wealth Management Summary Results – Q1 2021

($MM)

Assets Under Management

($MM)

▪ Net income up 20% YoY on strong

revenue growth and solid operating

leverage of 5%

▪ Strong net sales, favorable markets

and elevated transaction activity

Q1 21 Q4 20 Q1 20 QoQ YoY

Revenues 519 467 466 11% 11%

Fee-Based 302 281 273 7% 11%

Transaction & Others 107 79 74 35% 45%

Net Interest Income 110 107 119 3% (8%)

Non-Interest Expenses 303 284 285 7% 6%

Pre-Tax / Pre-Provisions 216 183 181 18% 19%

PCL (2) 1 -

Net Income 160 134 133 19% 20%

Key Metrics Q1 21 Q4 20 Q1 20 QoQ YoY

Avg Loans & BAs 5.4 4.9 4.8 10% 13%

Avg Deposits 34.9 35.8 32.4 (3%) 8%

Asset Under Administration 559.2 509.1 520.8 10% 7%

Asset Under Management 97.1 87.6 86.0 11% 13%

Efficiency Ratio (%) 58.4% 60.8% 61.2% -240 bps -280 bps

($B)

47,238 46,224 47,565 48,140 53,429

38,776 36,324 39,177 39,445 43,628

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

Individual Mutual funds

82,548 86,014 86,742 97,057

87,585

Global Markets Revenues

($MM)

FINANCIAL MARKETS

Financial Markets Summary Results – Q1 2021

($MM, TEB)

9(1) Corporate Banking only.

Q1 21 Q4 20 Q1 20 QoQ YoY

Revenues 577 495 458 17% 26%

Global Markets 355 281 289 26% 23%

C&IB 222 214 169 4% 31%

Non-Interest Expenses 228 185 200 23% 14%

Pre-Tax / Pre-Provisions 349 310 258 13% 35%

PCL 9 27 9

Net Income 250 208 183 20% 37%

Other Metrics Q1 21 Q4 20 Q1 20 QoQ YoY

Avg Loans & BAs(1) 18,522 18,589 17,025 - 9%

Efficiency Ratio (%) 39.5% 37.4% 43.7% +210 bps -420 bps

▪ Strong performance across Financial

Markets with PTPP up 35% YoY

▪ Global Markets revenues up 23% YoY

- Strong performance in structured products and ETFs, in both fixed income and equity

- Solid performance in our fixed income franchise

▪ C&IB revenues up 31% YoY, driven by

underwriting and financing activity

174 227

157 148 201

85

105

126 114

116 30

64

1919

38

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21Equity Fixed income Commodity and Foreign exchange

396

289302

355

281

US SPECIALTY FINANCE & INTERNATIONAL

10

ABA Bank

▪ Continued momentum with net income up

39% YoY, loans up 36% and deposits up

41%

Credigy

▪ Strong revenue growth of 58% YoY

- Strong portfolio performance with assets up

13% YoY

- Gain on sale of solar loans portfolio of $26M

USSF&I

▪ Well positioned to deliver double-digit

earnings growth in F2021

USSF&I Summary Results – Q1 2021

($MM)

ABA Bank Summary Results Q1 21 Q4 20 Q1 20 QoQ YoY

Revenues 119 111 95 7% 25%

Non-Interest Expenses 44 41 41 7% 7%

Pre-Tax / Pre-Provisions 75 70 54 7% 39%

PCL 2 5 3

Net Income 57 51 41 12% 39%

Avg Loans & Receivables 4,713 4,395 3,467 7% 36%

Avg Deposits 6,175 5,791 4,373 7% 41%

Efficiency Ratio (%) 37.0% 36.9% 43.2% +10 bps -620 bps

ABA Bank - Branches 79 77 77 3% 3%

Credigy Summary Results Q1 21 Q4 20 Q1 20 QoQ YoY

Revenues 155 122 98 27% 58%

Non-Interest Expenses 39 38 36 3% 8%

Pre-Tax / Pre-Provisions 116 84 62 38% 87%

PCL 16 12 7

Net Income 79 57 43 39% 84%

Avg Assets 7,448 7,602 6,570 (2%) 13%

Efficiency Ratio (%) 25.2% 31.1% 36.7% -590 bps -1150 bps

USSF&I Summary Results Q1 21 Q4 20 Q1 20 QoQ YoY

Revenues 274 232 195 18% 41%

Non-Interest Expenses 83 80 78 4% 6%

Pre-Tax / Pre-Provisions 191 152 117 26% 63%

PCL 18 17 10

Net Income 136 106 85 28% 60%

11

PROVISIONS FOR CREDIT LOSSES

PCL Q1 2021

($MM)

PCL on Impaired Loans

▪ $75M (17bps) of impaired PCLs

reflecting cyclical low Retail

provisions and stable Non-Retail

provisions

PCL on Performing Loans

▪ $6M (2bps). Key drivers: forward

looking macroeconomics updates,

migration and portfolio growth

▪ Retail: -$6M, reflects continued

strong performance by RESL

▪ Non-retail: $8M, reflecting growth,

migration and scenarios updates

▪ USSF&I: $4M, reflects strong

portfolio growth at ABA

Total PCL

▪ $81M (19bps) reflecting continued

strong performance and portfolio mix

▪ We maintain our total PCL target

range of 25-35 bps for 2021

$81$113

$81 $90$75

$8

$365

$62 $20$6

$89

$504

$143$110

$81

0

100

200

300

400

500

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

Impaired & POCI

Performing

(1) Impaired PCL includes Purchased or Originated Credit Impaired (POCI) amounts.

($MM) Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

Personal 45 43 29 30 18

Commercial 9 43 20 38 39

Wealth Management - 1 1 2 -2

Financial Market 13 20 27 5 6

USSF&I(1) 14 6 4 15 14

PCL on impaired 81 113 81 90 75

PCL on performing 8 391 62 20 6

Total PCL ($MM) 89 504 143 110 81

Total PCL (bps) 23 128 35 27 19

PCL on impaired (bps)(1) 21 29 20 22 17

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

PRUDENT PROVISIONING IN UNCERTAIN ECONOMIC ENVIRONMENT

12Note: Performing ACL includes allowances on drawn ($846M), undrawn ($177M) and other assets ($28M).

Strong Performing ACL Coverage

Performing ACL / LTM PCL on Impaired Loans

Total ACL Consistent with Portfolio Positioning

Total ACL / Total Loans excl. FVTPL

Consistent Reserve Build

Total PCL – Net Charge-Off ($MM)

Total Allowances Cover 5.9x NCOs

Total ACL / LTM Net Charge-Off

Q1 21 Q4 20 Q1 20

Total Bank 3.0x 2.8x 1.8x

Total Bank x-USSF&I 2.9x 2.9x 2.2x

Q1 21 Q4 20 Q1 20

Total Bank 0.84% 0.85% 0.51%

Retail x-USSF&I 0.53% 0.56% 0.45%

Non-Retail x-USSF&I 1.38% 1.35% 0.60%

Q1 21 Q4 20 Q1 20

Total Bank 5.9x 5.4x 2.6x

Total Bank x-USSF&I 6.5x 6.1x 3.2x

YTD2021 F2020 F2019

Total Bank $26 $596 $48

Total Bank x-USSF&I $14 $559 $61

(1) Under IFRS 9, impaired loans are all loans classified in stage 3 of the expected credit loss model. Those loans do not take

into account purchased or originated credit-impaired loans.

(2) Formations include new accounts, disbursements, principal repayments, and exchange rate fluctuation; net of write-offs.

GROSS IMPAIRED LOANS AND FORMATIONS

13

▪ Gross impaired loans decreased to $757M

(45bps)

▪ Meaningful decline in net formations

- Decrease across all segments

- Lower gross formations in Personal Banking

combined with an increase of loans returning

to performing in mortgage portfolio

Gross Impaired Loans(1) (GIL)

($MM)

Net Formations(2) by Business Segment

($MM)

Q1 21 Q4 20 Q3 20 Q2 20 Q1 20

Personal (20) 35 56 53 48

Commercial 27 67 (15) 64 (21)

Financial Markets (4) (10) 5 37 30

Wealth Management (1) (4) 6 1 −

Credigy 6 13 11 16 17

ABA Bank (1) 2 6 6 4

Total GIL Net Formations 7 103 69 177 78

$39 $45 $50 $55 $52

$264 $273 $300 $295$242

$374$462 $444 $467

$463

$677

$780 $794 $817$757

43

48 49 4945

0

5

10

15

20

25

30

35

40

45

50

$ 0M

$ 100M

$ 200M

$ 300M

$ 400M

$ 500M

$ 600M

$ 700M

$ 800M

$ 900M

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

USSF&I Retail Non-Retail GIL ratio (bps)

11.78%11.90%

0.51%

0.09%

(0.07%)

(0.41%)

Q4 20 Net Income(Net of Div.)

ECLTransitionalAdd-Back

RWA(Ex. FX)

Other Q1 21

STRONG CAPITAL POSITION

(1) Transitional measure applicable to expected credit loss provisioning.

(2) Ratio takes into account the transitional relief measures granted by OSFI in the context of COVID-19 (11.7% excluding ECL transitional relief measures). For

additional details regarding relief measures introduced by the regulatory authorities, see pages 20-21 of the Bank’s 2020 Annual Report to Shareholders.

(1)

CET1 Ratio

14

$94 808

$97 183$2 115

$268

($8)

Q4 20 Credit Risk OperationalRisk

Market Risk Q1 21

Risk-Weighted Assets

($MM)

▪ Strong CET1 ratio of 11.9%(2)

▪ Strong net income growth

▪ RWA growth primarily driven by organic

loan growth

▪ Limited impact from rating migration

- 7 bps improvement in retail (mainly credit

score improvement)

- Offset by 6 bps negative migration from non-

retail portfolio (mainly O&G and COVID-

impacted industries)

STRONG CAPITAL AND LIQUIDITY POSITIONS

▪ Our capital levels remain strong

▪ Total capital ratio of 16%

▪ Strong liquidity coverage ratio of 161%

Capital and Capital Ratios

($MM)

15

▪ Our capital levels remain strong

▪ Total capital ratio of 16%

▪ Strong liquidity ratios

(1) Total Loss Absorbing Capacity (TLAC). OSFI is requiring D-SIBs to maintain a minimum risk-based TLAC ratio of 22.50% (including the domestic stability buffer) of

risk-weighted assets and a minimum TLAC leverage ratio of 6.75% by November 1, 2021.

Q1 21 Q4 20 Q3 20

Capital

CET1 $11,563 $11,167 $10,840

Tier 1 $14,512 $14,112 $13,290

Total $15,589 $15,167 $14,336

TLAC(1) $24,602 $22,511 $21,584

Capital ratios

CET1 11.9% 11.8% 11.4%

Tier 1 14.9% 14.9% 14.0%

Total 16.0% 16.0% 15.1%

Leverage 4.3% 4.4% 4.3%

TLAC(1) 25.3% 23.7% 22.8%

TLAC(1)

Leverage 7.4% 7.0% 7.0%

Liquidity Coverage Ratio 154% 161% 161%

Net Stable Funding Ratio 124%

LIQUIDITY AND FUNDING

The main objective of the funding strategy is to support the Bank's organic growth while also enabling it

to survive potentially severe and prolonged crises and to meet its regulatory obligations and financial

targets.

The funding framework consists of 3 pillars:

1. Pursue a diversified deposit strategy to fund core banking activities through stable deposits

coming from the networks of each of the Bank’s major business segments;

2. Maintain a sound liquidity risk management through centralized expertise and management of

liquidity metrics within predefined risk appetite;

3. Maintain active access to various markets to ensure diversification of institutional funding in

terms of source, geographic location, currency, instrument and maturity, whether secured or

unsecured.

The funding strategy is implemented in accordance with the overall objectives of strengthening the

Bank's franchise among market participants and consolidating its excellent reputation.

The deposit strategy remains a priority for the Bank, which continues to prefer deposits to institutional

funding.

FUNDING STRATEGY

17

$91

$95

$103

$109

$116

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

NBC BUSINESS & GOVERNMENT DEPOSITS ($BN)

1Y CAGR = 28%

DIVERSIFIED DEPOSIT STRATEGY

Pursue a diversified deposit strategy to fund core banking activities through stable deposits coming

from the networks of each of the Bank’s major business segments

▪ Resulting from the steady execution of the

Bank’s successful deposit strategy, Total

Deposits increased to $185B as of Q1 2021.

18

$152

$159

$169

$177

$185

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

NBC TOTAL DEPOSITS ($BN)

1Y CAGR = 21%$61

$64

$66

$67

$69

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

NBC PERSONAL DEPOSITS ($BN)

1Y CAGR = 12%

SOUND LIQUIDITY RISK MANAGEMENT

Regulatory Liquidity

▪ Ongoing well-positioned LCR

▪ For the first time, the Bank disclosed publicly its

NSFR: the NSFR stood at 124% at end of Q1 2021.

Liquidity Approach to Wholesale Funding

▪ High-quality liquidity portfolio more than offsets

reliance on Unsecured Wholesale Funding

▪ Continued disciplined approach to Unsecured

Wholesale Funding

Unsecured Wholesale Funding

vs. Unencumbered Liquid Assets

Maintain a sound liquidity risk management through centralized expertise and management of liquidity metrics within

predefined risk appetite, with 4 main principles: Efficient Risk & Reward Balance through a Risk Appetite Framework,

Decision-making processes based on clear and complete understanding of liquidity risk and liquidity risk contributors,

support to NBC’s credit ratings and liquidity position maintained above regulatory minimum requirements.

Liquidity Coverage Ratio

19

0%

20%

40%

60%

80%

100%

120%

140%

160%

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Q1 20 Q2 20 Q3 2020 Q4 2020 Q1 2021

NBC - Unsecured WF under 1Y NBC -Unsecured WF over 1yNBC - ULA Surplus

Additional information on the Bank’s liquidity position can be found in pp. 28-37 of the Q1 2021 Quarterly Report.

(C$ millionsTerm Funding

Maintain active access to various markets to ensure diversification of institutional funding in terms of

source, geographic location, currency, instrument and maturity, whether secured or unsecured.

MATURITY PROFILE

Term Funding

Note: The Term Funding Ladder includes all negotiable products with terms at issuance greater than or equal to 1 year, excluding Bank of Canada facilities usage. For details on the

Bank of Canada facilities, please refer to the 2020 Annual Report as well as to the Q1 2021 Quarterly Report. Excludes capital issuances.

Canada (selected issuances)

Currency Principal (in millions) Tenor Product Coupon Maturity

CAD 1,000 5Y Senior Unsecured (BID) 2.545% 24-Jul

CAD 750 6NC5 Senior Unsecured (BID) 1.573% 26-Aug

Foreign (selected issuances)

Currency Principal (in millions) Tenor Product Coupon Maturity

EUR 750 5Y Covered Bonds 0.375% 24-Jan

USD 1,000 3Y Senior Unsecured (BID) 2.100% 23-Feb

USD 500 3NC2 Senior Unsecured (BID) 0.900% 23-Aug

USD 750 4NC3 Sustainable Senior Unsecured (BID) 0.550% 24-Nov

20

DIVERSIFIED FUNDING PLATFORMS

Unsecured Wholesale Funding Platforms

▪ Benchmark C$ Senior Unsecured

▪ US$ Senior Unsecured MTN programs

(Structured Notes and Senior Bail-in)

▪ Euro MTN program (EMTN)

▪ US$ Commercial Paper programs and Yankee CDs

▪ C$ MTN shelf

Securitization and Covered Bond Programs

▪ Canadian Mortgage Bonds

▪ Canadian Credit Card Trust II

▪ Legislative Global Covered Bond Program

In addition to benchmark deals, we also have capacity to:

✓ act on Reverse enquiries

✓ execute Private Placements and Club Deals

✓ tailor Sustainability Bonds (ESG) and Structured Notes (incl. Formosa, Step-ups, Callables, CMS)

Maintain active access to various markets to ensure diversification of institutional funding in terms of

source, geographic location, currency, instrument and maturity, whether secured or unsecured

21

Starting Q1 2022, all Canadian D-SIBs will be required to maintain a TLAC risk-weighted ratio of at least 21.5%. In

addition, all D-SIBs will be expected to hold buffers above the minimum TLAC Ratio, including the Domestic Stability

Buffer (“DSB”, adjusted to 1.00% of total RWA on March 13, 2020, effective April 30, 2020). Inclusive of the DSB as

currently set, the D-SIBs’ supervisory target risk-based TLAC Ratio would stand at 22.5% when it goes into effect on

Nov. 1, 2021.

Starting Q1 2022, all D-SIBs will also be required to maintain a TLAC leverage ratio of at least 6.75%.

TLAC RATIOS

The Bank does not anticipate any challenges in fully meeting the minimum TLAC requirements by November 1, 2021.

▪ Q121 NBC TLAC RWA Ratio = 25.3%

▪ Q121 NBC TLAC Leverage Ratio = 7.4%

▪ NBC will comply with both TLAC

regulatory requirements by Q1 2022

22

Sustainability Bond

Framework

NBC completed various sustainability bond issuances, including the first international issuance of USD Sustainability Bonds by a

North American bank, as well as Sustainable Structured Bonds issued via tailored private placements:

NACN USD 750,000,000 3Y 2.15% Senior Notes Due October 2022

NACN EUR 40,000,000 12y CMS1010 Senior Notes Due February 2031

NACN EUR 50,000,000 15y CMS1010 Senior Notes Due April 2034

NACN EUR 40,000,000 15y Steepener Senior Notes Due May 2034

NACN USD 750,000,000 4NC3 0.550% Senior Notes Due November 2024

NBC SUSTAINABILITY BOND FRAMEWORK

Renewable Energy / Sustainable Buildings / Low-Carbon Transportation / Affordable Housing /

Access to Basic and Essential Services / Loans to Small and Medium-sized enterprises (SMEs)*

In line with the ICMA Green Bond Principles and Social Bond Principles, NBC’s Sustainability Bonds will be allocated to financing of

projects and organizations that credibly contribute to the environmental objectives or seek to achieve positive socioeconomic

outcomes for target populations. Therefore, these are likely to contribute to United Nations’ Sustainable Development Goals (listed

below), by having a focus on:

November 2020, NBC revised its Sustainability Bond Framework and obtained Second Party Opinion from VigeoEiris:

https://www.nbc.ca/content/dam/bnc/a-propos-de-nous/relations-investisseurs/fonds-propres-et-dette/2020/nbc-sustainability-bond-framework-2020.pdf

https://www.nbc.ca/content/dam/bnc/a-propos-de-nous/relations-investisseurs/fonds-propres-et-dette/2020/nbc-sustainability-bond-second-opinion-2020.pdf

February 2020, NBC published its Sustainability Bond Report and obtained Independent Opinion from VigeoEiris:

https://www.nbc.ca/content/dam/bnc/a-propos-de-nous/relations-investisseurs/fonds-propres-et-dette/2020/na-sustainability-bond-report-2019.pdf

https://www.nbc.ca/content/dam/bnc/a-propos-de-nous/relations-investisseurs/fonds-propres-et-dette/2020/na-vigeo-eiris-post-issuance-review-2020.pdf

24* The “Loans to Small and Medium-sized enterprises (SMEs)” category was added to the Bank’s Framework in 2020.

NBC SUSTAINABILITY BOND FRAMEWORK

For the purpose of issuing Sustainability Bonds, NBC has developed its framework, which addresses the four core

components of the ICMA Sustainability Bond Guidelines and its recommendations on the use of external reviews

and impact reporting:

1. Use of proceeds

2. Project selection and evaluation process

3. Management of proceeds

4. Reporting

As per the ICMA Sustainability Bond Guidelines: “Sustainability Bonds are bonds where the proceeds will be

exclusively applied to finance or re-finance a combination of both Green and Social Projects.

Sustainability Bonds are aligned with the four core components of both the GBP [Green Bond Principles or “GBP”] and

the SBP [Social Bond Principles or “SBP”] with the former being especially relevant to underlying Green Projects and the

latter to underlying Social Projects.

It is understood that certain Social Projects may also have environmental co-benefits, and that certain Green Projects

may have social co-benefits. The classification of a use of proceeds bond as a Green Bond, Social Bond, or

Sustainability Bond should be determined by the issuer based on its primary objectives for the underlying projects.”

https://www.icmagroup.org/green-social-and-sustainability-bonds/sustainability-bond-guidelines-sbg/

25

NBC SUSTAINABILITY BOND FRAMEWORK

Use of proceedsProject selection

and evaluation GovernanceSocial ReportingManagement of

proceeds

Eligible Categories Eligibility Criteria

1. Renewable Energy

Eligible types of renewable energy:

o Wind, Solar, Geothermal with direct emissions < 100gCO2/kWh, Tidal,

o Hydropower: small scale hydro (<25 MW), run of river plants and upgrade of existing hydro assets

Eligible activities:

• Generation, transmission and distribution of energy from renewable sources, including investments for acquisition, operation,

maintenance and improvements

• Manufacturing of components and technologies supporting or required for renewable energy projects

2. Sustainable

Buildings

• Construction, development, operation, acquisition and maintenance of buildings that either have recognized green/social third-party

certifications and/or a specific track record in reducing GHG emissions:

o Certified green buildings meeting recognized environmental standards such as LEED – gold, BREEAM – good/very good, HQE – very

good/excellent, CASBEE – A (very good)/S (excellent) or equivalent

o Buildings with the WELL certification that promote improving health and wellness, as long as they meet the LEED Silver environmental

certification or equivalent

o Buildings with GHG performance in the top 15% of their city based on third-party assessment

3. Low-Carbon

Transportation

• Manufacturing, construction, development, operation, acquisition and maintenance of vehicles, rolling stock and infrastructure for low-

carbon passenger, goods and freight transport:

o Electric, fuel cell-based or non-motorized vehicles or transportation systems

o Hybrid or alternative fuel vehicles or transportation systems not exceeding the appropriate global stock-wide average of emissions

targeted in the IEA Mobility Model’s 2 Degree Scenario (2DS)

4. Affordable Housing

• Projects aimed at developing and renovating the social housing that promote social requirements and contribute to access to low income

residents

• Through public programs, promote the creation of affordable community housing in Canada for low- or modest-income households and/or

for people with special housing needs, which increases access to safe, affordable and sustainable housing

5. Access to Basic

and Essential

Services

• Projects intended for general population that enhance access to essential services by enabling the provision of not-for-profit, free or

subsidized services, including:

o Health services, Day care services, Childcare centers, Community welfare, Education, Social Housing, Training centers, Rehabilitation

of parks and other public spaces

• These programs aim to provide access to basic and essential quality services to the entire population. Universality and accessibility are

pillars of our Canadian social system and fundamental in the preservation of life, health and social functioning of our communities

6. Loans to Small and

Medium-sized

enterprises (SMEs)*

• Small and medium-sized enterprises located in deprived economic zones, in Canada demonstrating weaknesses measurable by

economic indicators locally

• More specifically, support communities with an observable disadvantage in terms of employment, household income or with significant

government transfers

26* The “Loans to Small and Medium-sized enterprises (SMEs)” category was added to the Bank’s Framework in 2020.

NBC SUSTAINABILITY BOND FRAMEWORK

Use of proceedsProject selection

and evaluation GovernanceSocial ReportingManagement of

proceeds

Project Selection and Evaluation Process

✓ NBC’s business unit officers are responsible for

identifying and assessing potential eligible projects and

businesses

✓ Eligible projects / businesses selected by the business

lines are reviewed by ESG program officers

✓ The ESG program officers screen existing and future

projects and programs that align with NBC’s

sustainable development objectives

✓ NBC has established a Sustainability Bond

Committee responsible for the ultimate review and

selection of the loans and investments that will qualify

as Eligible Businesses and Projects, to which the net

proceeds of a Sustainability Bond issuance will be

allocated

Management of Proceeds

✓ NBC has established a Sustainability Bond Register, for

the purpose of recording the Eligible Businesses and Projects

and allocation of the proceeds from Sustainability Bonds to

Eligible Businesses and Projects

✓ The Sustainability Bond Register contains relevant

information to identify each Sustainability Bond and the

Eligible Businesses and Projects relating to it

✓ The proceeds of the Sustainability Bonds issued by NBC are

being deposited in the general funding accounts of NBC. An

amount equal to the proceeds are to be earmarked for

allocation in the Sustainability Bond Register in accordance

with its Sustainability Bond Framework

✓ A dedicated team maintains and updates the Sustainability

Bond Register

✓ It is NBC’s intention to maintain an aggregate amount of

assets relating to Eligible Businesses and Projects at least

equal to the aggregate proceeds of all NBC Sustainability

Bonds that are concurrently outstanding

✓ The Bank aims to fully allocate proceeds within a period of

18 months

27

NBC SUSTAINABILITY BOND FRAMEWORK

Use of proceeds Project selection

and evaluationGovernanceSocial Reporting

Management of

proceeds

NBC has published a Sustainability Bond report on its website:

✓ Within 1 year of the issuance of the Sustainability Bonds; and

✓ Will update its Sustainability Bond report annually, until complete allocation, and thereafter, as necessary in case

of new developments

The NBC Sustainability Bond Report will contain (at least) the following:

✓ Confirmation that the use of proceeds of the Sustainability Bond complies with the NBC Sustainability Bond

Framework

✓ The amount of proceeds allocated to each Eligible Category

✓ For each Eligible Category, one or more examples of Eligible Businesses and Projects financed, in whole or in

part, by the proceeds obtained from the Sustainability Bond, including their general details (brief description,

location, stage — construction or operation)

✓ The balance of unallocated proceeds

✓ Impact reporting items, as described in the potential indicators table detailed in the Framework

✓ NBC’s first Sustainability Bond Report was published in February 2020:

https://www.nbc.ca/content/dam/bnc/a-propos-de-nous/relations-investisseurs/fonds-propres-et-dette/2020/na-sustainability-bond-report-2019.pdf

28

NBC SUSTAINABILITY BOND FRAMEWORK

Framework Link: https://www.nbc.ca/content/dam/bnc/a-propos-de-nous/relations-investisseurs/fonds-propres-et-dette/2020/nbc-sustainability-bond-framework-2020.pdf

SPO Link: https://www.nbc.ca/content/dam/bnc/a-propos-de-nous/relations-investisseurs/fonds-propres-et-dette/2020/nbc-sustainability-bond-second-opinion-2020.pdf

On November 2020, Vigeo Eiris issued a Second Party Opinion on the Bank’s Framework (excerpts only):

29

APPENDIX

APPENDIX 1 │ TOTAL LOAN PORTFOLIO OVERVIEW

31

▪ Secured lending accounts for 94%

of Retail loans

▪ Indirect auto loans represent 1.7% of total

loans ($2.9B)

▪ Limited exposure to unsecured retail and

cards (4% of total loans)

▪ Non-Retail portfolio is well-diversified

across industries

(1) Includes indirect lending and other lending secured by assets other than real estate.

(2) Includes Mining, Utilities, Transportation, Professional Services, Construction, Communication, Government and Education & Health Care.

Loan Distribution by Borrower Category

($B)

As at

January 31, 2021 % of Total

Retail

Secured - Mortgage & HELOC 83.2 49%

Secured - Other (1) 8.8 5%

Unsecured 4.3 3%

Credit Cards 1.7 1%

Total Retail 98.0 58%

Non-Retail

Real Estate and Construction RE 15.0 9%

Agriculture 6.9 4%

Manufacturing 5.4 3%

Retail & Wholesale trade 5.2 3%

Other Services 5.1 3%

Oil & Gas and Pipeline 4.8 3%

Oil & Gas 2.3 1%

Pipeline & Other 2.5 2%

Finance and Insurance 4.7 3%

Other(2) 23.0 14%

Total Non-Retail 70.1 42%

Purchased or Originated Credit-Impaired 0.7 0.4%

Total Gross Loans and Acceptances 168.8 100%

APPENDIX 2 │ REGIONAL DISTRIBUTION OF CANADIAN LOANS

32

Within the Canadian loan portfolio:

▪ Limited exposure to unsecured consumer

loans (3.4%)

▪ Modest exposure to unsecured consumer

loans outside Quebec (0.8%)

▪ RESL exposure predominantly in Quebec

(1) Oil regions include Alberta, Saskatchewan and Newfoundland.

(2) Maritimes include New Brunswick, Nova Scotia and P.E.I.

(3) Includes Corporate, Other FM and Government portfolios.

Prudent Positioning

(As at January 31, 20201

Quebec Ontario

Oil

Regions(1)

BC/MB

and

Territories Total

Retail

Secured

Mortgage & HELOC27.8% 13.7% 4.8% 3.6% 1.1% 51.0%

Secured

Other2.8% 1.3% 0.5% 0.7% 0.3% 5.6%

Unsecured

and Credit Cards2.6% 0.4% 0.1% 0.1% 0.2% 3.4%

Total Retail 33.2% 15.4% 5.4% 4.4% 1.6% 60.0%

Non-Retail

Commercial 17.5% 4.2% 1.9% 1.5% 0.6% 25.7%

Corporate Banking

and Other(3) 4.4% 5.0% 3.3% 1.3% 0.3% 14.3%

Total Non-Retail 21.9% 9.2% 5.2% 2.8% 0.9% 40.0%

Total 55.1% 24.6% 10.6% 7.2% 2.5% 100.0%

Maritimes(2)

APPENDIX 3 │ RETAIL MORTGAGE AND HELOC PORTFOLIO

▪ Insured mortgages account for 37% of the

total RESL portfolio (71% in Alberta)

▪ Distribution across product and geography

remained stable

▪ Uninsured mortgages and HELOC in GTA and

GVA represent 10% and 2% of the total

portfolio and both segment have an average

LTV(1) of 51%

▪ Uninsured mortgages and HELOC for condos

represents 7.6% of the total portfolio and have

an average LTV(1) of 59%

Canadian Distribution by Province

(As at January 31, 2021)

Canadian Uninsured and HELOC Portfolio

Canadian Distribution by Mortgage Type

56% 51% 69% 51% 55%

Average LTV - Uninsured and HELOC(1)

HELOC Uninsured

Average LTV(1) 54% 57%

Average Credit Bureau Score 792 779

90+ Days Past Due (bps) 7 17

31%

35%71% 41% 61%

69%

65%

29%59% 39%

54%

27%

8%6% 5%

QC ON AB BC Other Provinces

Uninsured & HELOC

Insured

Insured

$29.0B / 37%

Uninsured

$24.6B / 32%

HELOC

$24.5B(2)

/ 31%

$78.0B

(1) LTV are based on authorized limit for HELOCs and outstanding amount for Uninsured Mortgages.

They are updated using Teranet-National Bank sub-indices by area and property type.

(2) Of which $15.7B are amortizing HELOC. 33

APPENDIX 4 │ COMMERCIAL REAL ESTATE PORTFOLIO

34

Total CRE Portfolio of $12.0B

▪ Corporate Banking accounts for 14% of

portfolio, primarily public REITs, well diversified

across sectors

▪ Commercial Banking accounts for 86% of

portfolio

Drill down on Commercial Banking CRE:

Residential (2.8% of total loans)

▪ 1/3 of portfolio is insured

▪ LTV on uninsured ~60%

▪ Accounted for majority of portfolio growth in

Q1/21; ~50% of growth QoQ is insured

Retail (1.2% of total loans)

▪ Share of portfolio reduced by 4% YoY to 19%

▪ Portfolio LTV ~58%

▪ ~50% of leases with essential services tenants

Office (0.8% of total loans)

▪ Share of portfolio reduced by 4% YoY to 14%

▪ Portfolio LTV ~62%

▪ Long term leases (over 6 years)

Total CRE Portfolio

$12.0B (7.1% of total loans)

Commercial Banking share

$10.3B (6.1% of total loans)

(As at January 31, 2021)

Geographic Distribution (Commercial Banking CRE)

Commercial Banking

86%

Corporate Banking

14%

67%

16%6% 6% 5%

QC ON BC Other Provinces AB

APPENDIX 5 │ LIMITED EXPOSURE TO COVID-19 MOST IMPACTED INDUSTRIES

▪ Limited exposure to COVID-19 most impacted industries (3.5% of total gross loans)

35

Gross Loans % of

($MM) Book

Non-Food / Non-Pharmacy Retailers

Essential Services Retailers $490 0.3% nMajority of exposure is secured / No loan still under moratorium

Other Retailers $530 0.3% nStable QoQ / Diversified customer base / Less than 25% in apparel

Car Dealerships $545 0.3% nStable QoQ / Typically secured by real estate / Strong recovery in car sales

Hospitality and Entertainment

Entertainment $485 0.3% nDecrease of 5% QoQ / 53% in professional sports teams which are 71% IG

Hotels $354 0.2% nRemained disciplined in sector / Secured portfolio with conservative LTV and branded assets

Restaurants $191 0.1% nDecrease of 6% QoQ / Maintained a low risk appetite for the sector throughout the years / 57% IG

Air Transportation and Aeronautics

Aviation $486 0.3% nDecrease of 8% QoQ

Aeronautics $24 0.0%

Auto and Auto Parts Manufacturing $164 0.1% nDecrease of 15% QoQ

Retail Real Estate nConstrained portfolio growth in recent years

Diversified REITs $642 0.4% nPrimarily IG REITs with good liquidity and continued access to capital markets

Commercial Retail $1,976 1.2% nMore than 90% with street access / about 50% of leases with essential services tenants

APPENDIX 6 │ OIL & GAS AND PIPELINES SECTOR

36

▪ O&G producers and services exposure

significantly reduced

- 42% reduction in outstanding loans: down

from $4B in Q1/15 to $2.3B in Q1/21 (vs

$2.5B in Q4/20)

- Reduction as a % of total loans: down from

3.7% in Q1/15 to 1.4% in Q1/21

- Canadian focused strategy, minimal direct

US exposure

▪ Overall O&G and Pipeline portfolio

refocused from mid-cap to large cap

- Producers share declined from 82% in

Q1/15 to 43% in Q1/21

- 50% of the portfolio is Investment Grade

(as of Q1/21)

▪ Very modest indirect exposure to

unsecured retail loans in the oil regions

(~0.1% of total loans)

O&G Producers and Services Exposure

Gross Loans in $MM and % of Total Loans

O&G and Pipeline sector

Total Gross Loans of $4.8B as at January 31, 2021

82%

43%

9%

41%

5%5%

4%11%

Q1 15 Q1 21

Producers Midstream Services Refinery & Integrated

IG: 29%

IG: 64%

IG: 7%

IG: 100%

$3,956

$2,304

Q1 15 Q1 21

3.7%

1.4%

APPENDIX 7 │ NBC CREDIT RATINGS

(1) Includes Senior Debt issued prior to Sept. 23, 2018 and Senior Debt issued on or after Sept. 23, 2018 which is excluded from the Bank Recapitalization (Bail-in) Regime.

(2) Subject to conversion under the Bank Recapitalization (Bail-in) Regime.

(3) Moody's terminology is Counterparty Risk Rating (CRR) while Fitch's terminology is Derivative Counterparty Rating (DCR).

* FTSE Russell (as of April 30, 2019)

** Bloomberg Index (as of April 30, 2019)

Credit Rating

Agency

Short-term

Long-Term Non

Bail-inable

Senior Debt(1)

Senior Debt(2) OutlookCovered

Bonds

Counterparty

risk(3)

S&P A-1 A BBB+ Stable ---- ----

Moody’s P-1 Aa3 A3 Stable Aaa Aa3

DBRS R-1 (mid) AA (low) A (high) Stable AAA ----

Fitch F1+ AA- A+ Stable AAA AA-

▪ Strong short-term ratings

▪ Solid Deposit / Non Bail-inable Senior Debt ratings

▪ “A” Long-Term Senior Bail-in Debt ratings, Indices composite A* and A-**

▪ All Outlooks at Stable

37

APPENDIX 8 │ LEGISLATIVE COVERED BOND PROGRAMME

Programme size ▪ CAD$ 20,000,000,000

Outstanding benchmark covered bonds ▪ €1B 1.5% 03/21; €1B 0.5% 01/22; £250M 3M£LIBOR+37 09/21;

€750M 0.0% 09/23; €750M 0.750% 03/25; €750M 0.250% 07/23;

€750M 0.375% 01/24 and USD1,000M 2.05% 06/22

Ratings ▪ Aaa / AAA / AAA by Moody’s, Fitch and DBRS

Asset percentage minimum and maximum ▪ 80-93%

Currency ▪ Any

Guarantor ▪ NBC Covered Bond (Legislative) Guarantor L.P.

Listing ▪ London, U.K.

Law ▪ Canadian Legislative Framework (National Housing Act)

LTV ▪ 80% Maximum

Collateral pool eligibility ▪ Canadian uninsured residential mortgage loans

Tenor ▪ Any Allowed

Coupon ▪ Fixed / Float

Bullet Type ▪ Soft Bullet

38

APPENDIX 9 │ OTHER

▪ Non-interest expenses up YoY:

- Technology investments

- Incremental expenses for health and safety measures in context of pandemic

- Variable compensation

Other Segment Summary Results – Q1 2021

($MM, TEB)

39(1) Excluding Specified Items in the Q1-20 and Q4-20 comparable periods, which are non-GAAP measures. See slides 2 and 40.

Results Ex. Specified Items(1) Q1 21 Q4 20 Q1 20

Revenues 9 (2) 12

Non-Interest Expenses 76 115 36

Pre-Tax / Pre-Provisions (67) (117) (24)

PCL - (2) -

Pre-Tax Income (67) (115) (24)

Net Income (47) (82) (23)

Reported Results Q1 21 Q4 20 Q1 20

Revenues 9 (26) 12

Non-Interest Expenses 76 234 49

Pre-Tax / Pre-Provisions (67) (260) (37)

PCL - (2) -

Pre-Tax Income (67) (258) (37)

Net Income (47) (205) (33)

40

($MM, except EPS)

APPENDIX 10 │ SPECIFIED ITEMS

(1) Excluding Specified Items are non-GAAP measures. See slide 2.

Total

Revenues

Non-

Interest

Expenses

Income

Before

Taxes

Net

Income

Non-

controlling

interest

EPSTotal

Revenues

Non-

Interest

Expenses

Income

Before

Taxes

Net

IncomeEPS

Results Excluding Specified Items(1) 2,024 1,140 774 615 12 1.69 $ 1,923 1,078 756 620 1.70 $

Charge related to Maple - 13 (13) (10) (0.03 $)

Impairment losses on premises and

equipment and on intangible assets- 71 (71) (52) - (0.15 $)

Severance pay - 48 (48) (35) - (0.10 $)

Foreign currency translation loss on

disposal of subsidiaries(24) - (24) (36) (10) (0.08 $)

Total impact (24) 119 (143) (123) (10) (0.33 $) - 13 (13) (10) (0.03 $)

Reported Results 2,000 1,259 631 492 2 1.36 $ 1,923 1,091 743 610 1.67 $

Q4 20 Q1 20

Environment, Social and

Governance (ESG)

Highlights

NBC ESG HIGHLIGHTS

Supporting sustainable development is an intrinsic part of our mission. Environmental, social and governance

considerations play a key role in our business and operational decisions. At National Bank, we want to have a positive

impact on people’s lives. The principles that our Board of Directors has approved demonstrate our commitment to

building a sustainable future while representing the best interests of stakeholders.

42

NBC ESG HIGHLIGHTS

Oversight

• Board-level: ESG responsibilities integrated in the mandates of the Audit Committee, Risk

Management Committee and Conduct Review and Corporate Governance Committee

• Executive-level: ESG committee responsible for corporate strategy regarding ESG matters includes

key functional representatives (Risk, Legal, Public Affairs, Compliance, etc.) and is chaired by CFO

Disclosure

• First Report on Environmental, Social, Governance Advances summarizing NBC’s achievements on

corporate social responsibility

• First SASB Report

• First Task Force on Climate-related Disclosures (TCFD) Report

• Annual report related to the CDP Climate Change questionnaire since 2008

Sustainable

Finance

• NBC established its Sustainability Bond Framework in 2018 and has since completed sustainability

bond issuances, including the first international issuance of USD Sustainability Bonds by a North

American bank, as well as Sustainable Structured Bonds issued via tailored private placements

• NBC is highly active in financing for SMEs, low-carbon-emission commercial clients

Partnerships

and Coalitions

43

NBC Environment Highlights

> Target set to reduce our own greenhouse gas (GHG) emissions by 25% by 2025 to contribute to the most ambitious objective

of the Paris Agreement (reference year 2019)

> Partnership with Équiterre to support the implementation of specific solutions to promote energy transition and the adoption of

daily eco-responsible choices

> National Bank Investments launched three sustainable exchange-traded funds (ETFs)

> Renewable energy loan portfolio growing faster than the non-renewable energy portfolio in support of energy transition

> Adapting certain retail credit offers for clients who shop sustainably

> Multi-award-winning energy efficiency program

> New head office designed to meet the highest sustainable construction standards and occupant health and well-being (LEED

v4 Gold certification)

> Assets under management governed by National Bank Investments’ OP4+ process: 96.5% (↑) of our fund managers meet the

UN Principles for Responsible Investment

Environment Social Governance

GHG Emission Disclosure (Scopes 1, 2 and 3)The Bank’s actions and use of advanced inventory procedures have helped

reduce carbon emissions despite the growth in its activities. GHG emissions by

the Bank during the 2019 fiscal year represent a 37% drop in overall GHG

emissions since 2015.

Financing ActivitiesAs at July 31, 2020, non-renewable energy accounted for only 4.8% of the

loan portfolio’s total exposure, compared to 7.1% as at January 31, 2014.

44Please also refer to our TCFD Report: https://www.nbc.ca/content/dam/bnc/a-propos-de-nous/responsabilite-sociale/pdf/2020%20TCFD%20Report.pdf

NBC Social Highlights

Supporting our clients and employees in times of uncertainty

> Temporary relief measures for our individual and business clients during the COVID-19 pandemic

> Measures implemented to protect the health of our employees

Promoting diversity and inclusion

> Participation in several initiatives to address systemic racism and support the Black community, including the

BlackNorth Initiative, the Black Entrepreneurship Loan Fund and the Being Black in Canada incubator program

> Signing of the UN Women’s Empowerment Principles

> Active support for women, cultural communities, the LGBTQ community and Indigenous communities

> Publication of a Human Rights Statement

Supporting the community

> More than $2.5 million given to the most vulnerable communities affected by the pandemic and mental health

organizations

> Millions of dollars given back to the community through donations, sponsorships and fundraising events

> Hundreds of organizations supported across the country

> Ongoing construction of new Montreal LEED V4 gold head office (targeted certification), with 95% of Canadian

suppliers to maximize local economic impact : $1.2 billion economic impact, 7,000 direct & indirect jobs created.

Stimulating economic development

> New call centre opened in Sherbrooke: 200 jobs created and economic spin-offs of at least $10 million per year in the

region

> National Bank SME Growth Fund created in equal partnership with the Quebec government to support economic

recovery and the digital transformation of SMEs

Environment Social Governance

45

NBC Governance Highlights

> Disclosure of an initial report on Environmental, Social and Governance Advances

> Mandates of the Conduct Review and Corporate Governance Committee, the Audit Committee and the Risk

Management Committee to include ESG-related responsibilities

> Succession planning for directors based on the Board’s diversity policy (gender, age, designated groups, sexual

orientation, ethno-cultural groups and geography)

Environment Social Governance

(Click on the images below to access entire reports)

46

Mission of organizations we support

United Nations Environment Programme – Finance Initiative (UNEP FI) is a partnership

between United Nations Environment and the global financial sector created in the wake of the 1992

Earth Summit with a mission to promote sustainable finance. More than 250 financial institutions,

including banks, insurers, and investors, work with UN Environment to understand today’s

environmental, social and governance challenges, why they matter to finance, and how to actively

participate in addressing them.

The Principles provide the banking industry with a single framework that embeds sustainability at

the strategic, portfolio and transactional levels and across all business areas. The Principles align

banks with society’s goals as expressed in the Sustainable Development Goals and the Paris

Climate Agreement.

The PRI will work to achieve this sustainable global financial system by encouraging adoption of the

Principles and collaboration on their implementation; by fostering good governance, integrity and

accountability; and by addressing obstacles to a sustainable financial system that lie within market

practices, structures and regulation.

The Sustainable Development Goals are the blueprint to achieve a better and more sustainable

future for all. They address the global challenges we face, including those related to poverty,

inequality, climate, environmental degradation, prosperity, and peace and justice. The Goals

interconnect and in order to leave no one behind, it is important that we achieve each Goal and

target by 2030.

United Nations High Commissioner for Human Rights (OHCHR) launched UN Free & Equal – an

unprecedented global UN public information campaign aimed at promoting equal rights and fair

treatment of lesbian, gay, bisexual and transgender (LGBT) people.

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Mission of organizations we support

Equiterre offers concrete solutions to accelerate the transition towards a society in which individuals,

organizations and governments make ecological choices that are both healthy and equitable.

Responsible investment (RI) refers to the incorporation of environmental, social and governance factors

(ESG) into the selection and management of investments.

Carbon Disclosure Project want to see a thriving economy that works for people and planet in the long

term. To do this we focus investors, companies and cities on taking urgent action to build a truly

sustainable economy by measuring and understanding their environmental impact. To achieve this,

CDP, formerly the Carbon Disclosure Project, runs the global disclosure system that enables

companies, cities, states and regions to measure and manage their environmental impacts.

The FSB Task Force on Climate-related Financial Disclosures (TCFD) will develop voluntary, consistent

climate-related financial risk disclosures for use by companies in providing information to investors,

lenders, insurers, and other stakeholders. The Task Force will consider the physical, liability and

transition risks associated with climate change and what constitutes effective financial disclosures

across industries. The work and recommendations of the Task Force will help companies understand

what financial markets want from disclosure in order to measure and respond to climate change risks,

and encourage firms to align their disclosures with investors’ needs

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QUESTIONS?

Mr. Jean Dagenais, Senior Vice-President, FinanceJean.Dagenais@nbc.ca

Mr. Jean-Sébastien Gagné, TreasurerJeanSebastien.Gagne@nbc.ca

Additional information can be found via these web links:

https://www.nbc.ca/investor-relations.html

https://www.nbc.ca/capital-debt-information.html

DISCLAIMER

This document has been prepared solely for informational purpose and is not an offer to sell or a solicitation of an offer to

buy any security of the Bank or to participate in any trading strategy. Any such offer, if and when made, will be made only

by the Bank in and on the basis of, an offering circular or a final prospectus and any pricing supplement, final terms or

prospectus supplement thereto (collectively the “Offering Documents”), containing final terms describing such security and

the offering, and distributed in accordance with applicable securities laws.

Any decision by a prospective investor to purchase the Bank’s securities must be based solely on information included in

the Offering Documents relating to such securities and on such investor’s own independent evaluation, review and

investigation of the Bank, the securities and the terms of the offering, including the merits and risks of an investment in

such securities.

The information herein may contain general, summary discussions of certain tax, regulatory, accounting and/or legal issues. Any such

discussion is necessarily generic and may not be applicable to, or complete for, any particular recipient’s specific facts and

circumstances. The Bank is not offering and does not purport to offer tax, regulatory, accounting or legal advice and this information

should not be relied upon as such. Prior to making an investment in the Bank’s securities, you should determine, in consultation with

your own legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and

accounting characteristics and consequences, of the investment.

No representation or warranty is given with respect to the accuracy or completeness of the information herein, or that any future offer

of securities, instruments or transactions will conform to the terms hereof. The Bank and its affiliates disclaim any and all liability

relating to this information. The information included in this document is current only as of its date and may have changed since such

date. Nothing in this document is, or may be relied upon as, a representation or promise by the Bank and its affiliates as to the past or

the future.

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