Investor Presentation - Scotiabank€¦ · Management” section of the Bank’s 2019 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying

Investor Presentation January 2020

2

Caution Regarding Forward-Looking Statements

From time to time, our public communications often include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management’s Discussion and Analysis in the Bank’s 2019 Annual Report under the headings “Outlook” and in other statements regarding the Bank’s objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank’s businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as “believe,” “expect,” “foresee,” “forecast,” “anticipate,” “intend,” “estimate,” “plan,” “goal,” “project,” and similar expressions of future or conditional verbs, such as “will,” “may,” “should,” “would” and “could.” By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; changes to our credit ratings; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of

changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank’s ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; disruptions in or attacks (including cyber-attacks) on the Bank's information technology, internet, network access, or other voice or data communications systems or services; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and the Bank’s anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank’s business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank’s financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank’s actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank’s results, for more information, please see the “Risk Management” section of the Bank’s 2019 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2019 Annual Report under the headings “Outlook”, as updated by quarterly reports. The “Outlook” sections are based on the Bank’s views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. 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 or on its behalf. Additional information relating to the Bank, including the Bank’s Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC’s website at www.sec.gov.

3

TABLE OF CONTENTS Scotiabank Overview 4

• Leading Bank in the Americas 5 • Economic Outlook in Core Markets 6 • Well-Diversified Business with Strong Returns 7 • Why Invest in Scotiabank? 8 • Banking ROE by Market 9 • Medium-Term Financial Objectives 10 • Q4 2019 Financial Performance 11 • Fiscal 2019 Financial Performance 12 • Repositioning is Substantially Complete 13 • Acquisition & Divestiture Activity 14 • Earnings and Dividend Growth 15 • Strong Capital Generation 16 • Growth in Digital Banking 17 • Environmental, Social & Governance (ESG) 18

Business Line Overview: Canadian Banking 20 Business Line Overview: International Banking 31 Business Line Overview: Global Banking and Markets 43 Business Line Overview: Global Wealth Management 47 Risk Overview 51

• Risk Snapshot 52 • Credit Performance by Business Lines 53 • Historical PCL Ratios on Impaired Loans 54 • Canadian Retail: Loans and Provisions 55 • International Retail: Loans and Provisions 56 • Energy Exposure 57

Treasury and Funding 58 • Funding Strategy 59 • Wholesale Funding 60 • Deposit Overview 61 • Wholesale Funding Utilization 62 • Liquidity Metrics 63

Appendix 1: Key Market Profiles 64 Appendix 2: Canadian Housing Market 73 Appendix 3: Bail-in and TLAC 76 Appendix 4: Covered Bonds 80 Appendix 5: Additional Information 84 Contact Information 87

4

Scotiabank Overview

• Leading bank in the Americas

• Greater geographic focus, increased scale in core markets, and improved business mix

• Positioned for higher capital ratios, active buybacks, and sustainable long-term earnings growth

• Repositioning of business substantially complete

• Strong credit quality. Stable credit metrics.

5

55%

9%

23%

5% 8%

Peru (BBB+)

#3 Bank

United States (AA+) Top 15 FBO

Canada (AAA) #3 Bank

Leading Bank in the Americas1 Core markets: Canada, US, Mexico, Colombia, Peru and Chile

Full-Service, Universal Bank Canada Mexico Peru Chile Colombia Caribbean Uruguay

Wholesale Operations USA UK Singapore Australia Ireland Hong Kong SAR China Brazil South Korea Malaysia India Japan

7th largest bank by assets1

2018 Bank of the Year Latin America and the

Caribbean by Latin Finance

1 Source: Bloomberg December 31, 2019; 2 By assets and market capitalization; 3 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs; 4 Exclude the pension revaluation benefit gain of $203MM pre-tax, $150MM after-tax in Q1/18; 5 Ranking based on market share in loans as of September 2019 for PACs (incl. M&A), as of July 2019 in Canada for publically traded banks; 6 Adjusted net income attributable to equity holders of the Bank for the twelve months ended October 31, 2019

Earnings by Market3,6

Scotiabank3 FY2019 Change

FY19/FY18

Revenue $31.2B +8% Net Income $9.4B +3% Return on Equity 13.9% -100 bps Operating Leverage4 -0.6% n.a. Productivity Ratio 52.7% +100 bps Total Assets $1.1T +9%

Ranking by Market Share5

Canada #3

USMCA USA Top 15 Foreign Bank

Mexico #6 Peru #3 Chile #3

Colombia #6

Canada

U.S.A

PAC

C&CA

PAC

Americas (~95%)

Other

Colombia (BBB-) #6 Bank

Chile (A+) #3 Bank

Mexico (BBB+)

#6 Bank

6

Economic Outlook in Core Markets Growth in Pacific Alliance > Canada and the U.S. in 2020/2021

2019 - 2021 Real GDP Growth Forecast (%)

Source: Scotiabank Economics. Forecasts as of January 13, 2020.

Real GDP (Annual % Change)

Country 2010–18 Average 2019f 2020f 2021f

Mexico 3.0 0.0 1.0 1.8

Peru 4.8 2.3 3.0 3.5

Chile 3.5 1.0 1.4 3.0

Colombia 3.8 3.2 3.6 3.6

PAC Average 3.8 1.6 2.3 3.0

Canada 2.2 1.6 1.5 2.0

U.S. 2.3 2.3 1.7 1.8

7

19.0% 14.8% 13.3% 13.6% 13.9%

CanadianBanking

InternationalBanking

Global Bankingand Markets

Global WealthManagement

All Bank

Well-Diversified Business with Strong Returns

Canadian Banking

P&C 38%

International Banking P&C

32%

Global Banking &

Markets 17%

Global Wealth

Management 13%

Earnings by Business Line1,2,3 Earnings by Market1,2

1 Net income attributable to equity holdersor for the twelve months ended October 31, 2019; 2 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs; 3 Excluding Other segment

Caribbean and Central America

FY 2019 EARNINGS MIX

$9.2B3

FY 2019 EARNINGS MIX

$9.2B3 Per

Personal & Commercial Banking

70%

Wholesale Banking

17%

Wealth Management

13%

Canada

55%

U.S.

9%

Mexico

6%

Peru 9%

Chile 6%

Colombia 2%

C&CA 5%

Other 8%

Europe, Asia, Brazil, Australia

8

Why Invest in Scotiabank?

Leading bank in the Americas

Diversified exposure to high quality growth markets

Increasing scale and market share in core markets

• Leading Canadian bank. Top 15 foreign bank in U.S. • Leading bank in the Pacific Alliance growth markets of Mexico, Peru,

Chile and Colombia

• Gaining scale and market share in six core markets of Canada, US, Mexico, Peru, Colombia and Chile

• Competitive advantages in technology, risk management, and funding versus local competitors

• Increasing scale in Wealth Management and P&C businesses

• Strong foundation in Canada. Unique footprint in Americas provides diversification with growth.

• Strong balance sheet, capital and liquidity ratios • Attractive return on equity and dividend growth

• > 80% of earnings from core P&C banking and wealth businesses; > 80% of earnings from 6 core markets

• Lowered operational risk with more focused footprint (announced or completed exit from 21 countries and 11 businesses since 2013)

• Strong Canadian risk management culture: strong capabilities in AML and cybersecurity

Improved earnings quality, lower risk profile

• High levels of technology investment supports digital banking strategy to increase digital sales and adoption

• Named to Top 25 ”World’s Best Workplaces” (2018)

Strengthening competitive advantages in technology and talent

9

Banking ROE by Market

Banking: Average ROE by Market (Latest Reporting Period)

Return on equity in latest reporting period for the leading bank by market share for loans in each country. Canada and US figures are average for five largest and 10 largest market share banks in each country, respectively

Sources: Bloomberg LLP, Company Financial Reports.

19.1%

Pacific Alliance

15.3%

Canada

12.1%

US

11.0%

Asia

6.7%

Europe

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

10

Medium-Term Financial Objectives

Metrics Objectives 3-Year Performance (2016-2019)

All-Bank

EPS Growth 7%+ +6%1

ROE 14%+ 14.5%2

Operating Leverage Positive Positive1, 3

Capital Strong Levels 11.55%4

1 Reflects 3-year CAGR 2 Reflects 3-year simple average 3 Excluding the pension revaluation benefit gain in 2018 of $203 million pre-tax 4 As of October 31, 2019 and pro-forma the announced divestitures

11

Q4 2019 Financial Performance Strong revenue growth and positive operating leverage

$MM, except EPS Q4/19 Y/Y Q/Q

Reported Net Income $2,308 +2% +16%

Pre-Tax, Pre Provision Profit $3,657 +8% +6%

Diluted EPS $1.73 +1% +15%

Revenue $7,968 +7% +4%

Expenses $4,311 +6% +2%

Productivity Ratio 54.1% (50 bps) (90 bps)

Core Banking Margin 2.40% (7 bps) (5 bps)

PCL Ratio1 50 bps +11 bps +2 bps

PCL Ratio on Impaired Loans1 49 bps +7 bps (3 bps)

Adjusted2

Net Income $2,400 +2% (2%)

Pre-Tax, Pre Provision Profit $3,765 +8% (2%)

Diluted EPS $1.82 +3% (3%)

Revenue $7,962 +7% -

Expenses $4,197 +6% +2%

Productivity Ratio 52.7% (50 bps) +100 bps

• Adjusted Net Income up 2%2

o Other items reduced net income growth by 2%3

o Pre-tax, pre-provision profit (PTPP) up 8%2

• Revenue up 7%2

o Net interest income up 3%

o Non-interest income up 12%2

• Expense growth of 6%2

• Operating leverage of +1.0%2

• Higher PCL ratio on impaired loans1. Y/Y increase driven by hurricane-related recoveries in Q4/18

YEAR-OVER-YEAR HIGHLIGHTS

ADJUSTED NET INCOME4, 5 BY BUSINESS SEGMENT ($MM)

1 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures 2 Adjusted for Acquisition and divestiture-related amounts, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses on divestitures and related costs 3 See Slide 20 for Other Items Impacting Financial Results

4 Y/Y growth rate is on a constant dollars basis 5 After non-controlling interest

1,146 746

416

1,160 781

405

Canadian Banking International Banking Global Banking andMarkets

Q4/18 Q4/19

+1% Y/Y +4% Y/Y4 -3% Y/Y

12

Fiscal 2019 Financial Performance Stronger second half performance to finish 2019

$MM, except EPS 2019 Y/Y

Reported Net Income $8,798 +1%

Pre-Tax, Pre Provision Profit $14,297 +4%

Diluted EPS $6.68 (2%)

Revenue $31,034 +8%

Expenses $16,737 +11%

Productivity Ratio 53.9% +160 bps

Core Banking Margin 2.44% (2 bps)

PCL Ratio1 51 bps +3 bps

PCL Ratio on Impaired Loans1 49 bps +6 bps

Adjusted2

Net Income $9,409 +3%

Pre-Tax, Pre Provision Profit $14,739 +6%

Diluted EPS $7.14 -

Revenue $31,161 +8%

Expenses $16,422 +10%

Productivity Ratio 52.7% +100 bps

PCL Ratio1, 2 49 bps +8 bps


o Other items reduced net income growth by 4%3

o Pre-tax, pre-provision profit (PTPP) up 6%2

• Revenue up 8%2

o Net interest income up 6%

o Non-interest income up 11%2

• Expense growth of 10%2, or 9%2, 4 excluding 2018 pension revaluation benefit gain

• Operating leverage of -2.1%2 or -0.6%2, 4

• Higher PCL ratio on impaired loans1


ADJUSTED NET INCOME2, 5 BY BUSINESS SEGMENT ($MM)

4,416 2,819 1,758

4,485 3,188

1,534

Canadian Banking International Banking Global Banking andMarkets

2018 2019

+2% Y/Y +13% Y/Y -13% Y/Y

1 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures 2 Adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs 3 See Slide 20 for Other Items Impacting Financial Results

4 Excluding the pension revaluation benefit gain in 2018 of $203 million pre-tax 5 After non-controlling interest

13

Repositioning is Substantially Complete

Simplified the Bank ● 20 non-core (higher risk,

low growth) countries exited since 2014

● 10 non-core (non-customer facing, low return) businesses exited since 2014

● >90% of earnings generated from America’s footprint

Improved Earnings Quality ● >80% of earnings from six

core markets (Canada, the US and Pacific Alliance)

● Targeting higher earnings contribution from stable P&C Banking and Wealth Management businesses

● Targeting 65%-70% from P&C Banking, ~15% from Global Wealth Management

De-Risking the Bank ● Improving credit quality

metrics and generating higher mix of earnings from investment grade countries

● Exits from sub-investment grade, low growth jurisdictions

● Gross impaired loans ratio decreased from 110 bps in 2017 to 78 bps (pro forma) in 2019

14

Acquisition & Divestiture Activity 2015-2019

Acquisitions: $7.5B Divestitures/Exits: $9B

2015

2016

2017

2018

2019

Cencosud (Chile)

Citibank (Peru)

Turkey

Egypt

UAE

Vietnam

Taiwan

Haiti JPMorgan Chase Credit Card Portfolio

Citibank (Panama)

Citibank (Costa Rica)

France

Hollis Wealth

MD Financial, Jarislowsky Fraser

BBVA (Chile)

Citibank (Colombia)

CrediScotia (Jamaica)

Banco Progreso (Dominican Republic)

Cencosud (Peru)

7 Leeward Islands

Thailand

PR/USVI

El Salvador*

Pension & Insurance (Dominican Republic)

Insurance*(Trinidad & Tobago)

Pension (Colombia)

* Announced and pending.

2020 British Virgin Islands*

15

$1.96

$3.49

09 10 11 12 13 14 15 16 17 18 19

1 Reflects adoption of IFRS in Fiscal 2011. 2 Excludes notable items for years prior to 2016. For 2016 onwards, results adjusted for acquisition-related costs including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions and amortization of intangibles related to current and past acquisitions. 3 As of October 31, 2019

Earnings per share (C$)1,2

$3.31

$7.14

09 10 11 12 13 14 15 16 17 18 19

Dividend per share (C$)

+8%

CAGR

+6%

CAGR

Total shareholder return3

6.4%

9.8% 12.0%

8.8%

11.9% 11.9%

5 Year 10 Year 20 Year

Scotiabank Big 5 Peers (ex. Scotiabank)

Earnings and Dividend Growth Strong track record of stable and predictable earnings and growing dividends

16

CET1 Ratio

Strong Capital Levels

11.1% 11.1% 11.1% 11.2% 11.1%

1.4% 1.4% 1.4% 1.1% 1.1% 1.8% 2.1% 2.2% 2.5% 2.0%

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

CET1 Tier 1 Tier 2

14.6% 14.7% 14.2% 14.3% 14.8%

Internal Generation

Strong Capital Generation Clear path to higher capital ratio

-4 bps +3 bps 11.2% +25 bps -20 bps -8 bps -7 bps 11.1%

~50 bps

Q3/19 EarningsLess Dividends

RWA Impact(ex. FX)

Share Buybacks(Net of Issuances)

ForeignExchange

Translation

Non-coreDivestitures

Other (net) Q4/19 Reported Impact ofAnnouncedDivestitures

Q4/19Pro-Forma

~11.55%

17

Growth in Digital Banking Steady progress against digital targets

1 Canada: F2017 22%, F2018 26%, F2019 26% PACs: F2017 13%, F2018 19%, F2019 29% 2 Canada: F2017 36%, F2018 38%, F2019 42% PACs: F2017 20%, F2018 26%, F2019 35% 3 Canada: F2017 17%, F2018 15%, F2019 12% PACs: F2017 29%, F2018 24%, F2019 19%

• Sales grew 600 bps against Q4 of last year

• Strong progress made across key markets; key highlight includes Colombia improving >1,000 bps against Q4 of last year

• In-branch transactions decreased the most in 3 years; 400 bps against Q4 of last year

Digital Retail Sales1 Digital Adoption2 In-Branch Financial Transactions3

Goal >50%

Goal >70%

Goal <10%

11 15

22

28

F2017 F2016 F2019 F2018

+1,700 bps

26 29

33 39

F2017 F2016 F2018 F2019

+1,300 bps 26

23 20

16

F2017 F2016 F2018 F2019

-1,000 bps

• Announced our commitment to mobilize $100 billion by 2025 to reduce the impacts of climate change

• Issued inaugural USD 500 million Green Bond of which proceeds were used to fund assets under the Scotiabank Green Bond Framework. Includes the categories of renewable energy, clean transportation and green buildings

• Directed proceeds of internal fee on carbon into renewable energy & efficiency initiatives, and are on track to achieve a greenhouse gas reduction target of 10% by 2021 compared to 2016

• Launched our new, more efficient workspace model at our head office in Toronto, Canada, which has to date reduced greenhouse gas emissions by 741 tonnes and is expected to reduce paper use by 86%

• Invested nearly $100 million globally in communities where we operate as part of our global philanthropy program

• Committed $3 billion in funding over the first three years of The Scotiabank Women Initiative to advance women-led businesses in Canada

• Signed the UN Women’s Empowerment Principles and UN LGBTI Codes for Business Conduct

• Continued to deliver on our commitment of $250 million over 10 years to help employees adapt to the digital economy

• Served as the lead bank in Canada in the Finance Against Slavery and Trafficking initiative, the Financial Access project, to open accounts for survivors of modern slavery

• For the second consecutive year, ranked by the Dow Jones Sustainability Index as among the top 1% of global financial institutions for Corporate Governance

• 38% of our directors are female. We first established a Board diversity policy in 2013

• Appointed Mr. Aaron Regent as Chairman of the Board. Mr. Regent is Scotiabank’s third independent Chairman, as we have separated the CEO and Chairman roles since 2004

• Dedicated significant Board time to cybersecurity, anti-money laundering, conduct and culture issues, keeping the Bank safe

Environmental, Social & Governance (ESG) Highlights from 2019

19

Environmental, Social & Governance (ESG)

Scotiabank Climate Commitment to mobilize

$100 billion by 2025 to reduce the impacts of climate change. This is detailed in our External Position Statement.

Memberships, Associations and Partnerships

20

Business Line Overview

Canadian Banking

21

Canadian Banking Top 3 bank in personal & commercial banking, wealth and insurance in Canada

55%

27%

18%

60%

21% 17%

2%

• Improve Sustained Business Performance: Invest to grow our higher ROE businesses, including Business Banking, to deliver consistent and stable long-term earnings growth

• Instill a Winning team Culture: Engage employees through a RESULTS (Revenue, Earnings, Simplify, Urgency, Listen, Trust, Support) focused culture

• Superior Customer Experience: Develop deeper household relationships for our customers across Canada by providing differentiated focus and service to those who are most loyal and engaged

• Scale our unique partnerships and assets: Leverage our long-term partnerships and assets like MLSE, Scene and Wealth businesses to generate growth across our division

• Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to Retail, Small Business, Commercial Banking, and Wealth Management customers. Canadian Banking also provides an alternative self-directed banking solution to over 2 million Tangerine Bank customers.

STRATEGIC OUTLOOK

REVENUE MIX1

Retail

Wealth Commercial

Personal Loans

Business and Government Loans

AVERAGE LOAN MIX1

$3.6B $358B

Residential Mortgages

1 For the three months ended October 31, 2019; 2 3-5 year target from 2020 Investor Day; 3 Adjusted Net income attributed to equity shareholders

Credit Cards

MEDIUM-TERM FINANCIAL OBJECTIVES

Target2

NIAT Growth3 5%+

Productivity Ratio <44%

Operating Leverage Positive

22

Canadian Banking Margin expansion, strong deposit growth, positive operating leverage

$MM, except EPS Q4/19 Y/Y Q/Q Reported

Net Income1 $1,143 +3% (1%) Pre-Tax, Pre Provision Profit $1,787 +5% (1%)

Revenue $3,566 +4% +1%

Expenses $1,779 +2% +3%

PCLs $247 +25% +3% Productivity Ratio 49.9% (80 bps) +110 bps

Net Interest Margin 2.47% +2 bps (2 bps) PCL Ratio2 0.27% +4 bps -

PCL Ratio Impaired Loans2 0.28% +6 bps (1 bp)

Adjusted3

Net Income1 $1,160 +1% (1%) Pre-Tax, Pre Provision Profit $1,811 +4% (1%)

Expenses $1,755 +3% +3% Productivity Ratio 49.2% (30 bps) +90 bps


1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions


o Lower real estate gains reduced net income growth by 2%

o Margin expansion. Higher PCLs o Wealth Management earnings up 15%

• Revenue up 4% o Net interest income up 5% o Excluding M&A and IFRS 15, revenue was up 3%

• Loan growth of 5% o Residential mortgages up 5%; credit cards up 6%

o Business loans up 11% • Deposit growth of 9%

o Personal up 6%; Non-Personal up 16%

• NIM up 2 bps o Primarily driven by the impact of prior rate

increases • Expenses up 3%3

o Technology and regulatory initiatives

o Excluding M&A and IFRS15, expenses were up 2% • Quarterly operating leverage of +0.6%3 ; full-year

operating leverage flat3

• PCL ratio2 up 4 bps to 27 bps

2.45% 2.44% 2.46% 2.49% 2.47%

ADJUSTED NET INCOME1,3 ($MM) AND NIM (%)

1,160 1,146 1,089 1,062 1,174

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

23

Canadian Banking: Financial Performance High quality retail loan portfolio: ~92% secured

1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 Spot Balance as of October 31, 2019

DOMESTIC RETAIL LOAN BOOK2

79%

3% Credit Cards

5% Unsecured

13% Automotive

Real Estate Secured Lending

$300.8B

• High quality residential mortgage portfolio o 39% insured; remaining 61% uninsured has a LTV of 55%1

• Market leader in auto loans o $38.6 billion auto loan portfolio with 7 OEM relationships (3 exclusive)

o Prime Auto and Leases (~91%)

o Stable lending tenor with contractual terms for new originations averaging 78 months (6.5 years) with projected effective terms of 54 months (4.5 years)

• Growth opportunity in credit cards o $7.7 billion credit card portfolio represents ~3% of domestic retail loan

book and 1.3% of the Bank’s total loan book

o Organic growth strategy focused on payments and deepening customer relationships

o Upside potential from existing customers: over 80% of growth is from existing customers (penetration rate mid-30s and trending up versus peers in the low-40s)

o Strong risk management culture with specialized credit card teams, customer analytics and collections focus

24

Canadian Banking: Residential Mortgages High quality, diversified portfolio

$102.4

$31.5 $27.1 $14.5 $10.9 $8.8

$14.2

$10.7 $3.7

Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba &Saskatchewan

1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data

2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions

CANADIAN MORTGAGE PORTFOLIO: $227B (SPOT BALANCES AS AT Q4/19, $B)

% of portfolio 51.5% 18.6% 13.6% 7..2% 4.9% 4.2%

$1.9 $0.2 $0.7

Freehold - $195B Condos - $32B $116.6

$42.2 $30.8

$16.4 $11.1 $9.5

39%

61% Uninsured

Total Portfolio:

$227 billion

Insured

• Residential mortgage portfolio of $227 billion: 39% insured; LTV 55% on the uninsured book1 o Mortgage business model is “originate to hold”

o New originations2 in fiscal year 2019 had average LTV of 64.5%

o Majority is freehold properties; condominiums represent approximately 14.1% of the portfolio

• Three distinct distribution channels: all adjudicated under the same standards o 1. Broker (~62%); 2. Branch (~18%); and 3. Mobile Salesforce (~20%)

o Our recently launched Scotiabank eHOME digital mortgage solution is emerging as our 4th distribution channel. Most recently, we launched the ability for Canadians to get pre-approved online with a credit decision and a pre-approval letter in just minutes – another first for the industry. We have also partnered with the Canadian Real Estate Association (CREA) to enable customers to search for a home directly within eHOME, making the entire home-buying journey digital

25

FICO is a registered trademark of Fair Isaac Corporation 1 FICO ® distribution for Canadian uninsured portfolio based on score ranges at origination 2 Percentage is based on Total Mortgages

Canadian Residential Mortgages: LTVs Credit fundamentals remain strong

4% 11% 12% 15%

58%

< 635 636 - 706 707 - 747 748 - 788 > 788

Q4/18 Q3/19 Q4/19

Canada

Total Originations ($B) 10.5 14.0 13.3

Uninsured LTV 63% 64% 65%

GTA Total Originations ($B) 3.2 4.5 4.2


GVA Total Originations ($B) 1.1 1.6 1.6


Average FICO® Score Canada 788

GTA 790 GVA 794

• Only <0.77% of uninsured portfolio2 has a FICO® score of <620 and an LTV >65%

• Canadian uninsured mortgage portfolio is $139 billion as at Q4/2019

FICO® DISTRIBUTION – CANADIAN UNINSURED PORTFOLIO1

GTA 64%

ON 65%

QC 68%

Prairies 69%

GVA 64%

BC &

Territories 65%

Atlantic Provinces

67%

NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION

*Average LTV ratios for our uninsured residential mortgages originated during the quarter

26

Canadian Housing Market Return to equilibrium

Volume of Home Sales Near 10-Year Average*

*Seasonally adjusted *Actual – not seasonally adjusted

Canada’s Five Largest Metropolitan Areas*

*Actual – not seasonally adjusted

Significant Moderation in Price Growth*

0

5

10

15

20

25

Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18High-ratio mortgages Low-ratio mortgages Total mortgages

Decline in Share of High-Risk Mortgages

% Share of new mortgages with a loan-to-income ratio greater than 450%

Sources: Scotiabank Economics, Bank of Canada Financial System Review 2019.

Mortgage insurance

rules tightened

B-20 guideline

revised

20

25

30

35

40

45

50

07 08 09 10 11 12 13 14 15 16 17 18 19Sources: Scotiabank Economics, CREA.

Units, 000s

10-year monthly moving avg.

Monthly home sales

-10

-5

0

5

10

15

20

25

06 07 08 09 10 11 12 13 14 15 16 17 18 19Sources: Scotiabank Economics, CREA.

Aggregate Composite MLS Home Price Index Y/Y Percentage Change

-8

-6

-4

-2

0

2

4

6

8

10

GTA GVA Montreal Calgary EdmontonSources: Scotiabank Economics, CREA.

MLS Home Price Index Benchmark Price Y/Y Percentage Change

5.82

-6.44

7.61

-2.27 -2.44

Average0.46

27

Canadian Consumer Indebtedness

-5

0

5

10

15

20

25

00 02 04 06 08 10 12 14 16 18

%, 3-month moving average

y/y % change

Sources: Scotiabank Economics, Bank of Canada.

m/m % change,

SA

-5

0

5

10

15

20

25

00 02 04 06 08 10 12 14 16 18


y/y % change


m/m % change,

SA

• Policy changes have moderated the growth in household credit

• Consumer loans excluding mortgages (i.e. credit cards, HELOCs, unsecured LOC, auto loans, etc.) grew at an 3.1% annual rate in Q3/19 vs > 5% in late 2017

• Mortgage credit grew at 4.0% annually in Q3/19 vs 2008 peak of 13%

Household Credit Growth Consumer Loan Growth Residential Mortgage Growth

-5

0

5

10

15

20

25

00 02 04 06 08 10 12 14 16 18


m/m % change, SA


y/y % change

28

Households are in Better Shape Than Reported

Sources: Statistics Canada, CBA, Scotiabank Economics

Household Net Worth vs Debt Default Rates Remain Low

0

100

200

300

400

500

600

700

800

900

1000

90 93 96 99 02 05 08 11 14 17

% of 4Q-moving-sum disposable Income

Household net worth as% of disposable income

Household debt todisposable income

0.1

0.2

0.3

0.4

0.5

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

04 06 08 10 12 14 16 18

%

Remain Low

%

Credit carddelinquency rate

(90+ days),LHS

Percent of mortgage arrears,

RHS

• Consumer balance sheets have improved faster than the growth rate in debt to disposable income

Canadian Consumer Indebtedness

29

Automotive Finance Canada’s leader in automotive finance

• Provide personal and commercial dealer financing solutions, in partnership with seven leading global automotive manufacturers in Canada

• Portfolio grew 4%1 year-over-year

o Personal up 5%, Commercial down 4%

1 For the three months ended October 31, 2019; 2 Data as at June 2019; 3 CBA data, includes BMO, CIBC, HSBC, National Bank, RBC, Scotiabank, TD; 4 DealerTrack Portal data, includes all Near-Prime Retail providers on DealerTrack Portal, data for October 19 originations; 5 Includes BMO, CIBC, RBC, Scotiabank, TD, HSBC, Canadian Western Bank, Laurentian Bank, data as of March 2019

39%

61%

Market Share2

24%

76%

28%

72%

Prime Retail Market Share3 Near-Prime Retail Market Share4 Commercial Floorplan Market Share5

Exclusive Relationships

Semi-Exclusive Relationships*

* 1 to 2 other financial institutions comprise Semi-Exclusive relationships

MAZDA VOLVO JAGUAR/LAND ROVER

HYUNDAI CHRYSLER TESLA GM 79%

8%

13%

AVERAGE ASSET MIX

$44.6B1

100% Secured

Commercial

Near-Prime Retail

Prime Retail

30

Award Winning

Approach No. 1 in Client Satisfaction:

ranked highest among mid-sized banks for 8th

year in a row by J.D. Power.

Speed & Agility

Rapid Labs: Agile best practices

enable quick & efficient new product & feature

delivery.

Client Driven Innovation

Incubator: Identify, explore, and pilot

new technologies & solutions to meet evolving

Client needs.

Modern Platform

Onboarding in < 7 minutes: 96% digital onboarding;

Scalable model, platforms and systems enabling constant innovation.

Partnership Focus

Power of Partnership: Strong partnerships with MLSE as the Official Bank

of the Raptors, SCENE, Cineplex and Scotiabank.

| Canada’s #1 Digital Bank

Leading Edge Brand Experience

STRATEGIC FOCUS:

• Enhanced customer experience through digital moments • Best in class onboarding and security

• Focused on driving national brand awareness and new client acquisition as the Official Bank of the Raptors

• Deepening client relationships through introducing SCENE Loyalty program to Tangerine customers

• Focused product innovation to enhance client offering

• AI-driven approach to help Canadians achieve their financial goals

Customer Experience Leadership

Product Innovation

Strategic Partnerships

2.3 million

Clients

No.1 NPS

Industry Leading Client Experience

No.1 Credit Card

Ranked highest in Credit Card Satisfaction by J.D. Power

No.1 Mid-Sized Bank

Ranked No. 1 Mid-Sized Bank in Client Satisfaction by J.D. Power

31


International Banking

32

International Banking Leading P&C bank focused on high quality growth markets in Latin America and the Caribbean

• International Banking operates primarily in Latin America and the Caribbean with a full range of personal and commercial financial services. Core markets are the Pacific Alliance countries of Mexico, Peru, Chile and Colombia

STRATEGIC OUTLOOK


70% 24%

6%

REVENUE1

$3.4B

Asia

C&CA Latin America

25% Mexico

26% Peru

23% Chile 17%

Colombia

9% Other Latin

America

51%

27%

16%

6% LOAN MIX1

$153B Credit Cards

Personal Loans

Residential Mortgages

Business Loans

• Optimize Footprint: Continue executing with discipline announced acquisitions and divestitures to enhance the risk profile of our portfolio and improve quality of our earnings

• Lead in Customer Experience and Digital: Continue accelerating our digital transformation to amplify business impact and continue deploying digital solutions to other channels to optimize our distribution model

• Accelerate Growth Drivers: Leverage new strategic partnership to accelerate insurance growth, scale our Capital Markets business in the Pacific Alliance and build our Wealth business with focus in affluent customer segment

1 For the 3 months ended October 31, 2019; 2 3-5 year target from 2020 Investor Day; 3 Excluding divestitures impact

91% PAC

Target2

NIAT Growth3 9%+



33

The Bank of the Pacific Alliance (PAC)

1 10 million customers in PAC including affiliates

Only universal bank with full presence in all Pacific Alliance countries

Well-established bank with 30+ years of experience in the region

8 million1 Retail and ~30,000 Corporate & Commercial customers >100 multi-national corporate customers within the Pacific Alliance

Pacific Alliance contributes ~80% of IB’s earnings

Competitive scale in each market

34

PAC Fundamentals Driving Growth

Strong Governance

Sound Macro Environment

Favourable Demographics

● Democratic countries with open economies

● Independent central banks with inflation targets

● Free trade agreements and free-floating currencies

● Business-friendly environments

● Diversified economies with strong GDP growth

● Resilience to economic and political cycles

● Investment Grade-rated

● Low Debt/GDP ratios with lower fiscal deficits compared to G7

● Increasing adoption of banking services

● 225 million people with median age of 30 years

● Strong domestic consumption

● Much lower banking penetration compared to Canada

● Among the fastest growing smartphone markets in the world

● Considerable growth in middle class

35

Resilience of the Pacific Alliance

+2.9% +3.0% +2.7% +3.1%

+2.3% +1.6%

2019F 2017 2014 2015 2016

+1.8%

2018 2020F

Social Unrest

Election & Trade Dispute

Notable Events (by country)

Average Annual GDP Growth

Election Low Oil Prices

Election & Odebrecht

International Banking Earnings

(C$B) $1.7 $1.9 $2.1 $2.4 $2.8 $3.2

No events

+13% CAGR

Approximate GDP Impact on country

-2.2%1 -1.5%4 -2.6%2 -1.5%3

NOTE: Pacific Alliance GDP growth calculated based on mean average of the four PAC countries 1 2013 GDP growth rate vs. 2014 – 2017 average; 2 2014 vs. 2015 – 2017 average; 3 2016 vs. 2017; 4 2016 vs. 2017 – 2019 average; 5 Estimated impact in 2020F due to social unrest; Source: Past GDP data from IMF; forecast from Scotiabank Economics

-1.8%5

36

Increasing Banking Penetration

Brazil Chile

Canada

MexicoPeru

Colombia

Spain

U.S.

U.K.

PAC4

Mature Markets

Bubble size represents nominal GDP

Growth Markets

Czech Republic

Cambodia

C&CA PAC

Scotia P&C Markets

Scotia Americas Wholesale Markets

Other Markets

1 Source: World Bank Open Data 2018. Banking Penetration is defined as account ownership at a financial institution or with a mobile-money-service provider (% of population ages 15+) 2 Source: World Bank Open Data 2018. GDP per capita is nominal gross domestic product divided by mid year population

$0 $10,000 $20,000 $70,000 $60,000 $50,000 $40,000 $30,000

GDP per Capita (US$)2

150

100

50

0

Bank

ing

Pene

trat

ion

(%)1

37

International Banking Positive operating leverage and strong balance sheet growth

$MM, except EPS1 Q4/19 Y/Y Q/Q Reported

Net Income2 $733 +1% (6%) Pre-Tax, Pre Provision Profit $1,579 +12% (3%)

Revenue $3,374 +10% 0% Expenses $1,795 +7% 3%

PCLs $502 +27% +8% Productivity Ratio 53.2% (170 bps) +130 bps

Net Interest Margin3 4.43% (9 bps) (2 bps) PCL Ratio4 1.34% +29 bps +10 bps

PCL Ratio Impaired Loans4 1.26% +6 bps (10 bps)

Adjusted5

Net Income2 $781 +4% (4%) Pre-Tax, Pre Provision Profit $1,662 +14% (1%)

Expenses $1,712 +6% +1% PCLs $502 +27% +8%


YEAR-OVER-YEAR HIGHLIGHTS1

• Adjusted Net Income up 4%2,5 and Adjusted PTPP

up 14%5 on a constant currency basis

o Alignment of reporting period and the impact of closed divestitures reduced net income growth by 5%

o Strong growth across the Pacific Alliance, and strong positive operating leverage

o Lower tax benefits and last year’s credit recoveries in Puerto Rico and Latin America

• Revenues up 10%

o Good growth in Non interest income driven by higher investment gains and banking fees

• Loans up 8% o Pacific Alliance up 10%

• NIM down 9 bps o Primarily driven by margin compression in

Mexico and Chile o NIM down 2 bps Q/Q

• Expenses up 6%5 o Business volume growth and technology costs o Productivity ratio improvement of 230 bps5

• Quarterly operating leverage of +4.8%5, full-year operating leverage +4.3%5

• PCL ratio on impaired loans4 increased 6 bps

4.52% 4.52% 4.58% 4.45% 4.43%

746 805 787 815 781

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

ADJUSTED NET INCOME2,5 ($MM) AND NIM3 (%)

1 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 2 Attributable to equity holders of the Bank 3 Net Interest Margin is on a reported basis 4 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures 5 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions

38

337 465

666 579

Scotiabank in Mexico

All figures in CAD$

Constant currency 1 Includes bank and wealth branches; does not include 177 Credito Familiar branches 2 Adjusted; WY 2019 3 WY 2019 including goodwill 4 Source: CNBV as of November 2019 5 After NCI on an adjusted basis

22.9%

13.7% 13.2% 12.2%

7.7% 7.5% 4.8%

3.4% 2.0%

BBVA Banorte Santander Citi HSBC Scotiabank Inbursa Bajio Regio

2016 2017 2018

NIAT5

+20% CAGR

Footprint

Balance and Market Position

Financial Performance

~3.5 million

Customers Employees

~12,000

Branches1

~592

Average Loans Loan Market Share4

Average Deposits

7.5% $30 billion

$25 billion

ROE2 Total NIAT2, 5 Productivity2

$579 million

19.6% 55.4%

Productivity Ratio

2017 2018 2016 2019

63.0%

58.6%

55.0% 55.4%

2019

Market Position by Loans4

Operating Leverage

2017 2018 2016 2019

1.5%

7.5% 6.9%

-0.9%

2019

39

572 604 688

810

Scotiabank in Peru

All figures in CAD$

Constant currency 1 Including subsidiaries 2 Adjusted, WY 2019 3 WY 2019 including goodwill 4 Market share as of October 2019. Scotiabank includes SBP, CSF and Caja CAT 5 After NCI on an adjusted basis


NIAT5

+12% CAGR

31.7%

19.4% 18.1% 11.9%

BCP BBVA Interbank +79 -138 -18 +118

Scotia

Footprint



4.0 million

Customers1 Employees1

12,000

Branches1

314


Average Deposits

18.1% $21 billion

$19 billion

ROE2, 3 Total NIAT2 Productivity2

$810 million

25.6% 35.2%

Productivity Ratio

2017 2018 2016 2019

40.0% 39.3%

37.5%

35.2%

Operating Leverage

7.9%

1.8%

5.0%

6.8%

2017 2018 2016 2019

2016 2017 2018 2019

3-Year Change (bps)

40

339 381 515 718

Scotiabank in Chile

All figures in CAD$

Constant currency 1 Includes affiliates & consumer microfinance 2 WY 2019 3 WY 2019 ROE including goodwill. Local GAAP ROE 13.5% 4 Market share as of November 2019. Local view, exclude offshore loans. Source: CMF 5 NIAT Before NCI

NIAT5

+28% CAGR

Footprint



>3 million

Customers1 Employees

~9,000

Branches1

162


Average Deposits

14.1% $47 billion

$24 billion


$718 / $524 (Pre-NCI / Post-NCI)

million

8.7% 43.4%

Productivity Ratio

53.6%

49.5%

44.7% 43.4%


18.4 16.8

14.1 13.8 13.7

9.9

Santander Chile Estado BCI Itaú Scotiabank

Operating Leverage

2017 2018 2016 2019 2017 2018 2016 2019

-2.3%

8.5%

13.3%

4.3%

2016 2017 2018 2019

41

38 73 85

139

Scotiabank in Colombia

All figures in CAD$

Constant currency 1 As of November 2019 2 Adjusted; WY 2019 3 WY 2019 including goodwill 4 Market share as of October 2019

5 Members of AVAL Group: Banco de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas. AVAL is 2nd in market share in terms of Loans (25%) and 1st in Deposits (27%) 6 After NCI on an adjusted basis

NIAT6

+53% CAGR

Footprint



Customers Employees

~9,000

Branches1

188


Average Deposits

6.0% $12 billion

$10 billion


$256 / $139 (Pre-NCI / Post-NCI)

million

9.0% 55%


3.1 million

26.0%

15.9% 12.1%

10.2% 6.0% 6.0%

4.4%

Bancolombia Scotiabank Colpatria

Davivienda Bogotá5 BBVA Occidente5 Corpbanca

Productivity Ratio

50.3% 52.6% 53.4%

54.5%

Operating Leverage

1.6%

-6.4%

-1.8% -2.4%

2017 2018 2016 2019 Q3 YTD

2017 2018 2016 2019

2016 2017 2018 2019

42

Other Regions Leading Caribbean & Central American franchise

Caribbean & Central America • Longstanding, diversified franchise serving retail, commercial, and corporate customers • Major markets include the Dominican Republic, Jamaica, Trinidad & Tobago, Costa Rica, Panama and The Bahamas • Sharpened geographic footprint by exiting higher risk, low growth jurisdictions including Haiti, El Salvador, Puerto Rico

and 7 of the Leeward Islands

Dominican Republic: #4 bank • Acquired Banco Dominicano del Progreso in 2019

Asia Thailand: 6% interest in TMB Bank

• Reduce investment in Thailand in Q1/20 resulting ~6% TMB Bank

China: 19.9% interest in Bank of Xi’an • CAD $815MM carrying value as of October 31, 2019 • CAD $496MM of net income for twelve months ended October 31, 2019

43


Global Banking & Markets

44

Global Banking and Markets Second-largest Canadian wholesale banking and capital markets business

43%

43%

9%

5%

GEOGRAPHIC REVENUE1

$1.2B

• Full-service wholesale bank the Americas, with operations in 21 countries, serving clients across Canada, the United States, Latin America, Europe and Asia-Pacific

STRATEGIC OUTLOOK

Europe

Canada

US

Asia

54%

29%

17% REVENUE BY BUSINESS LINE1

$1.2B

Business Banking

FICC

Global Equities

• Client Focus: Increase our relevance to our corporate clients and drive alignment of resources with the most significant revenue opportunities, to capture more of the non-lending wallet

• Strengthen our capital markets offering: Enhance distribution and product capabilities and deepen institutional relationships

• Build on our presence in the Americas: Enhance our franchise in Canada, continue to pursue targeted, phased growth in the U.S., create a top-tier local and cross-border Pacific Alliance business, and leverage Europe and Asia for distribution of our Americas product in support of our corporate clients

1 For the 3 months ended October 31, 2019; 2 3-5 year target from 2020 Investor Day


Target2

NIAT Growth ~5%

Productivity Ratio ~50%


45

Global Banking and Markets Strong loan and deposit growth. Capital markets strength in Fixed Income.


Reported Net Income1 $405 (3%) +8%

Pre-Tax, Pre Provision Profit $539 +4% +10%

Revenue $1,170 +9% +8%

Expenses $631 +14% +6%

PCLs $4 N/A N/A

Productivity Ratio 54.0% +250 bps (70 bps)

Net Interest Margin 1.59% (13 bps) (2 bps)

PCL Ratio2 0.02% +11 bps +3 bps

PCL Ratio Impaired Loans2 0.05% +12 bps +6 bps


1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures

• Net Income down 3% Y/Y

• Revenue up 9% o Non-interest income up 13%

• Loans up 13%

o Strong corporate loan growth across Canada and the U.S.

• Deposits up 23%

• Expenses up 14%

o Expenses up 6% Q/Q

o Compliance and technology investment for regulatory requirements and higher performance and share based compensation

• PCL ratio2 at 2 bps

416

335 420

374

405

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

NET INCOME1 AND ROE 15.3%

11.5% 15.2%

12.8% 13.8%

46

Scotiabank in the U.S.

• Client focus is S&P 500, investment grade corporates

• Current sectors of strength include Power & Utilities and Energy, and focus areas for growth include Real Estate, Technology, and Healthcare

• Wholesale presence in the US: corporate & investment banking, capital markets, cash management and trade finance

• Top 15 foreign bank (FBO) in the US

>4,000

Clients Employees

~700

Offices

5

Average Loans Revenue Average Deposits

$43 $57

ROE1 Total NIAT1 Productivity1

$777 18.7% 46.2%

$1,896 billion million billion

million

1 Fiscal 2019

47


Global Wealth Management

48

Global Wealth Management Profitable, High Growth, Strong Momentum

• Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank’s footprint

1 Net income attributable to equity holders 2Figures adjusted for Acquisition and divestiture-related amounts, including Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs 3Excluding Other segment 43-5 year target from 2020 Investor Day


Competitive Advantages

Asset Management: Proprietary and 3rd Party Fund Distribution Advisory: Fully-integrated advice model, including Private Banking

2.5 million

Customers Employees

8,000

Countries

14

Assets Under Management Assets Under Administration

$497 $302

Productivity Ratio NIAT1,2,3 % of All Bank Earnings Operating Leverage

13.2% 63.1% Positive

billion billion

Target4

Earnings Growth 8%+



49

286 286 303 313 314

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

Global Wealth Management Profitable, High Growth, Strong Momentum


Reported Net Income1 $299 +16% (1%)

Pre-Tax, Pre Provision Profit $405 +13% (3%)

Revenue $1,149 +9% +1%

Expenses $744 +8% +3%

PCLs - N/A N/A


Adjusted3

Net Income1 314 +10% -

Pre-Tax, Pre Provision Profit 424 +7% (1%)

Expenses 725 +11% +3%

Productivity Ratio 63.1% +90 bps +90 bps


1 Attributable to equity holders of the Bank 2 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions


o Reflects full quarter of MD Financial results in 2019 (closed October 3, 2018)

o Strong net sales and market appreciation

• Revenue up 9%

o Driven by full quarter impact of acquisitions, higher mutual fund revenues and higher net interest income

• Expenses up 11%3

o Driven by full quarter impact of acquisitions

• Strong AUM / AUA growth

o Strong net sales of Retail Mutual Funds

o Market appreciation

ADJUSTED NET INCOME1,3 ($MM)

50

Global Wealth Management: Profitable, High Growth, Strong Momentum

Adv

isor

y A

sset

Man

agem

ent

Can

ada

Inte

rnat

iona

l

Full Service Brokerage

Institutional Funds

Retail Mutual Funds

Private Banking

Private Investment Counsel

Discount Brokerage

Trust

Mexico AUM

Chile AUM

1st 2nd 3rd 4th 5th 6th

Blackrock

BANCO SECURITY

Peru AUM Credifondo Continental Interfondos Fondos Sura

Sources: IFIC, Strategic Insight Reports

51

Risk Overview

52

93%

7% Secured

Unsecured

64%

8% 7% 5%

5% 5% 4% 2%

Canada

Chile

U.S.

C&CA

Other International

Mexico

Peru

Colombia

0.4%

0.5%

0.5%

0.7%

0.8%

1.0%

1.1%

1.4%

1.6%

1.8%

2.2%

2.2%

2.3%

2.6%

2.7%

4.6%

5.3%

5.6%

Chemicals

Metals

Forest Products

Hospitality and Leisure

Sovereign

Health Care

Mining

Food and Beverage

Transportation

Utilities

Agriculture

Technology and Media

Automotive

Other

Energy

Wholesale and Retail

Real Estate and Construction

Financial Services

Risk Snapshot

1 % of total loans and acceptances as at October 31, 2019 2 Retail loans as at October 31, 2019

RWA Breakdown Credit Exposure by Country1 Credit Exposure by Sector1

Canadian Banking Loans2 International Banking Loans2

87% 11%

2% Credit Risk

Operational Risk

Market Risk

67%

33%

Secured

Unsecured

$421B $611B1

$310B2 $74B2

53

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 (As a % of

Average Net Loans & Acceptances)

PCLs on Impaired

Loans

Total PCLs (adj.)

PCLs on Impaired

Loans

Total PCLs

PCLs on Impaired

Loans

Total PCLs

PCLs on Impaired

Loans

Total PCLs (adj.)

PCLs on Impaired

Loans

Total PCLs

Total Canadian Banking (%) 0.22 0.23 0.27 0.271 0.28 0.301 0.29 0.271 0.28 0.27 Total Canadian Banking ($MM) 188 198 229 233 233 252 256 240 255 247

Retail (%) 0.25 0.25 0.28 0.28 0.31 0.35 0.33 0.30 0.30 0.30 Retail ($MM) 181 179 201 202 220 245 242 218 226 227

Commercial (%) 0.06 0.15 0.21 0.231 0.09 0.061 0.10 0.161 0.20 0.14 Commercial ($MM) 7 19 28 31 13 7 14 22 29 20

Total International Banking (%) 1.20 1.051 1.23 1.281 1.29 1.301, 2 1.36 1.241 1.26 1.341 Total International Banking ($MM) 4662 4122 451 470 472 4773 522 476 477 502

Retail (%) 2.38 2.21 2.33 2.36 2.36 2.352 2.48 2.28 2.34 2.44 Retail ($MM) 412 384 416 421 421 4193 462 425 429 448

Commercial (%) 0.071 (0.06)1 0.19 0.261 0.27 0.301, 2 0.30 0.261 0.25 0.30 Commercial ($MM) 543 283 35 493 51 582, 3 60 513 48 543

Global Banking and Markets (%) (0.07) (0.09)1 (0.01) (0.07) (0.02) (0.02) (0.01) (0.01) 0.05 0.02 Global Banking and Markets $MM) (17) (20)3 (1) (16) (5) (6) (2) (4) 12 43

Other ($MM) - - - 1 - (1) - 1 - -3

All Bank (%) 0.42 0.391 0.47 0.471 0.49 0.511 0.52 0.481 0.49 0.501

All Bank ($MM) 637 590 679 688 700 722 776 713 744 753 1 Excludes provision for credit losses on debt securities and deposit with banks 2 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions 3 Includes provision for credit losses on debt securities and deposit with banks of $nil in Canadian Banking (Q1/19: $2 million, Q2/19: -$1 million, Q3/19: -$1 million), -$3 million in International Banking (Q4/18: $41 million (impaired) and $40 million (total), Q1/19: $2 million, Q2/19: -$1 million, Q3/19: $1 million), -$1 million in Global Banking and Markets (Q4/18: $1 million) and $1 million in Other (Q1/19: -$1 million, Q2/19: $1 million)

Credit Performance by Business Lines

54

0.00%

0.50%

1.00%

1.50%

2.00%

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

PCL Ratio on Impaired Loans Historical Average - PCL Ratio on Impaired Loans (26 bps)

Historical PCL Ratios on Impaired Loans Credit fundamentals remain strong; PCLs on impaired loans in line with long-term average

1 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures

ALL BANK: HISTORICAL PCL RATIO ON IMPAIRED LOANS1

CANADIAN BANKING: HISTORICAL PCL RATIO ON IMPAIRED LOANS1

Average: 26 bps

0.00%

0.50%

1.00%

1.50%

2.00%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

PCL Ratio on Impaired Loans Historical Average - PCL Ratio on Impaired Loans (44 bps)

2009: Higher PCLs driven by economic conditions, event distributed across business lines. Higher general allowance and sectoral allowance (automotive related)

Average: 44 bps

2002: Included $454 million related to the Bank’s exposure to Argentina

55

Canadian Retail: Loans and Provisions

1 95% are automotive loans 2 Includes Home Equity Lines of Credit and Unsecured Lines of Credit 3 Includes Tangerine balances of $6 billion 4 80% secured by real estate; 13% secured by automotive

MORTGAGES PERSONAL LOANS1

LINES OF CREDIT2 CREDIT CARDS

1 1 2 1 1 0 2 1 1 1

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

69 69 88 78 81

70 80

95 85 84

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

68 75 70

96

72 68 81 86

73 70

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

283

349 415

402

379 292

241

458

339

381

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

PCL as a % of avg. net loans (bps) PCLs on Impaired Loans as a % of avg. net loans (bps)

TOTAL RETAIL

25 28

31

33

30 25

28 35

30

30

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

Loan Balances Q4/19 Mortgages Personal Loans1 Lines of Credit2 Credit Cards Total

Spot ($B) $227 $41 $34 $8 $3103

% Secured 100% 99% 61% 3% 93%4

56

International Retail: Loans and Provisions

1 Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans 2 Total includes other smaller portfolios

TOTAL RETAIL2 MEXICO

CHILE

PERU

206 199 218

208

163

216 233 231

203

246

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

Loan Balances Q4/19

Mexico Peru Chile Colombia C&CA Total2

Spot ($B) $13 $10 $25 $7 $18 $74

COLOMBIA

238

233

236 248

234 221

236

235 228

244

Q4/18 Q1/19 Q2/19 Q3/19 Q4/191

145

120 148 150 154

134

155 159 155 160

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

400

517

372

545 473

432

364

402 491

424

Q4/18 Q1/19 Q2/19 Q3/19 Q4/191

582 554 549 531 471

532 485 455

377 420

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

PCL as a % of avg. net loans (bps) PCLs on Impaired Loans as a % of avg. net loans (bps)

CARIBBEAN & CENTRAL AMERICA

147

138 156 138 165

101

170 157 141

187

Q4/18 Q1/19 Q2/19 Q3/19 Q4/191

57

1.0

6.7

0.4 0.7

2.8

1.2 3.7

Energy Exposure1 High quality energy portfolio, reduced exposure to 2.7% of total loans from 3.1% in Q4/16

• Energy portfolio represents 2.7% of loans and acceptances outstanding, down from 3.1% in Q4/16

• 56% is rated Investment Grade (IG), up from 52% in Q4/16

• Watchlist3 reduced to 4.0% of total Energy outstandings from 13.6% as of Q4/16

1 As of October 31, 2019

2 May not add due to rounding 3 Includes Impaired accounts

4 RWA based on All Facility Types

Energy Exposure by Geography2

$16.6B (%IG)

Mexico (60%)

Canada (60%)

Latin America

(50%)

U.S. (44%)

Asia (95%)

Europe (43%)

C&CA (33%)

Loans and

Acceptances Outstanding ($B)

% of Total

Energy Exposure

% of Total Loans and Acceptances Outstanding

% Investment Grade

Total Exploration and Production 7.1 43% 1.2% 62%

Canadian E&P 3.6 21% 0.6% 76%

Western Canadian Select Exposure 1.3 8% 0.2% 93%

U.S. E&P 1.2 7% 0.2% 57%

Midstream 5.6 34% 0.9% 51%

Services 1.6 9% 0.3% 21%

Downstream 2.4 14% 0.4% 69%

Total Energy Exposure2 16.6 100% 2.7% 56%

58

Treasury and Funding

59

1 In addition to the programs listed, there are also CD programs in the following currencies: Yankee/USD, EUR, GBP, AUD, HKD

Funding Strategy Flexible, well-balanced and diversified funding sources

• Build customer deposits in all of our key markets

• Continue to reduce wholesale funding (WSF) while focusing on TLAC eligible debt

• Achieve appropriate balance between efficiency and stability of funding including maintaining pricing relative to peers

• Diversify funding by type, currency, program, tenor and markets

• Centralized funding strategy and associated risk management

Funding Strategy Funding Programs1

US Debt & Equity Shelf (senior / subordinated debt, preferred and common shares) Limit – USD 40 billion

Global Registered Covered Bond Program (uninsured Canadian mortgages) Limit – CAD 38 billion

CAD Debt & Equity Shelf (senior / subordinated debt, preferred and common shares) Limit – CAD 15 billion

EMTN Shelf Limit – USD 20 billion

START ABS program (indirect auto loans) Limit – CAD 15 billion

Australian MTN program Limit – AUD 8 billion

Singapore MTN program Limit – USD 7.5 billion

Halifax ABS shelf (unsecured lines of credit) Limit – CAD 7 billion

Principal at Risk (PAR) Note shelf Limit – CAD 6 billion

Trillium ABS shelf (credit cards) Limit – CAD 5 billion

USD Bank CP Program Limit – USD 35 billion

60

Wholesale Funding Wholesale funding diversity by instrument and maturity1,6,7

$249B

1 Excludes repo transactions and bankers acceptances, which are disclosed in the contractual maturities table in the MD&A of the Interim Consolidated Financial Statements. Amounts are based on remaining term to maturity. 2 Only includes commercial bank deposits raised by Group Treasury. 3 Excludes asset-backed commercial paper (ABCP) issued by certain ABCP conduits that are not consolidated for financial reporting purposes. 4 Represents residential mortgages funded through Canadian Federal Government agency sponsored programs. Funding accessed through such programs does not impact the funding capacity of the Bank in its own name. 5 Although subordinated debentures are a component of regulatory capital, they are included in this table in accordance with EDTF recommended disclosures. 6 As per Wholesale Funding Sources Table in MD&A, as of Q4/19. 7 May not add to 100% due to rounding.

38%

10% Mortgage

Securitization4

Bearer Deposit Notes, Commercial Paper &

Short-Term Certificate of Deposits

2% Asset-Backed

Commercial Paper3

27% Senior Notes

10% Covered Bonds

4% Subordinated

Debt5

$16 $15 $15

$10 $7

$15

$2

$4 $9

$4

$5

$2

$2

< 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years >

MATURITY TABLE (EX-SUB DEBT)

(CANADIAN DOLLAR EQUIVALENT, $B)

Senior Debt ABS Covered Bonds

$22

$27

$19

$15

$9

$17 $3

4% Bail-inable Notes

3% Asset-Backed

Securities

2% Deposits from Banks2

61

$155

$156

$169

$172

$174

$170

$168 $179

$197

$197

$211 $221

$223

Q4/

16

Q1/

17

Q2/

17

Q3/

17

Q4/

17

Q1/

18

Q2/

18

Q3/

18

Q4/

18

Q1/

19

Q2/

19

Q3/

19

Q4/

19

Deposit Overview Stable trend in personal & business and government deposits

PERSONAL DEPOSITS (SPOT, CANADIAN DOLLAR EQUIVALENT, $B)

PERSONAL DEPOSITS

$199

$199

$202

$198

$200

$201

$204 $211

$215 $222

$225

$223

$225

Q4/

16

Q1/

17

Q2/

17

Q3/

17

Q4/

17

Q1/

18

Q2/

18

Q3/

18

Q4/

18

Q1/

19

Q2/

19

Q3/

19

Q4/

19

• Important for both relationship purposes and regulatory value

• Good momentum with 4.1% CAGR over the last 3 years

BUSINESS & GOVERNMENT DEPOSITS1

(SPOT, CANADIAN DOLLAR EQUIVALENT, $B)

1 Calculated as Bus& Gov’t deposits less Wholesale Funding, adjusted for Sub Debt

BUSINESS & GOVERNMENT • Gaining share of deposits through

leveraging of relationships

• 12.8% CAGR over the last 3 years

• Focusing on operational, regulatory friendly deposits

3Y CAGR – 4.1%

3Y CAGR – 12.8%

62

Wholesale Funding Utilization Managing reliance on wholesale funding and growing deposits

WHOLESALE FUNDING / TOTAL ASSETS REDUCED RELIANCE ON WHOLESALE FUNDING

• Operating in line with peers o Reduced reliance on wholesale funding o Sustained focus on deposits as an alternate to wholesale

funding

MONEY MARKET WHOLESALE FUNDING / TOTAL WHOLESALE FUNDING

FOCUS ON TERM FUNDING • Prudently using money market funding to

absorb short term funding requirements

37.7% 36.8% 36.0%

42.2%

Q4/

16

Q1/

17

Q2/

17

Q3/

17

Q4/

17

Q1/

18

Q2/

18

Q3/

18

Q4/

18

Q1/

19

Q2/

19

Q3/

19

Q4/

19

25.2%

23.8% 23.4% 22.9%

Q4/

16

Q1/

17

Q2/

17

Q3/

17

Q4/

17

Q1/

18

Q2/

18

Q3/

18

Q4/

18

Q1/

19

Q2/

19

Q3/

19

Q4/

19

63

Liquidity Metrics Well funded Bank with strong liquidity

• Liquidity Coverage Ratio (LCR) o Stable and sound management of liquidity o Net Stable Funding Ratio (NSFR) disclosure to commence Q1/20

125% 125%

128% 127%

125% 124%

128%

125% 123%

125%

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

• High Quality Liquid Assets (HQLA) o Efficiently managing LCR and optimizing HQLA

$128 $127 $132 $140 $138 $144

$158 $158 $160 $165

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

Key Market Profiles

Appendix 1

65

Canadian Economy Diverse economy with a strong balance sheet

0

1

2

3

U.S. Canada Eurozone U.K. Japan

1.1

(0.8) (0.7) (1.4)

(2.0) (3.0) (3.3)

(5.6) -6

-5

-4

-3

-2

-1

0

1

2

Germany OECD* Canada U.K. Italy Japan France U.S.

AN

NU

AL

% C

HA

NG

E %

OF

GD

P

22.9 31.7

66.1 78.5 80.1 84.5

122.0 126.1

Canada Germany OECD France U.K. U.S. Italy Japan

Sources: Scotiabank Economics, Haver Analytics, Statistics Canada. Forecasts as of October 10, 2019.

GENERAL GOVERNMENT NET FINANCIAL LIABILITIES

% O

F G

DP

REAL GDP GROWTH

2000–2018 2019f–2021f

GOVERNMENT FINANCIAL DEFICITS

CANADIAN GDP BY INDUSTRY

(AUG 2019) 4.5%

12.4% 19.5%

7.6%

7.0% 6.7%

5.9%

15.6% 10.4%

10.3%

Finance, Insurance, & Real Estate

Health & Education

Wholesale & Retail Trade

Manufacturing

Mining and Oil & Gas Extraction

Construction Public Administration

Professional, Scientific,

& Technical Services

Transportation & Warehousing

Other

* Arithmetic mean of all OECD financial deficits as a % of GDP. Sources: Scotiabank Economics, IMF (2019 estimates). As of November 2019.

Sources: Scotiabank Economics, OECD (2019 estimates). As of November 2019.

66

Canada: Stable Economic Fundamentals Low unemployment rate reflects solid growth in Canadian economy

60

62

64

66

68

70

90 92 94 96 98 00 02 04 06 08 10 12 14 16 18

UNEMPLOYMENT RATE • Solid economic growth and a gradual rebound in non-energy exports

• Household spending remains buoyant, underpinned by relatively low and stable unemployment, as well as low borrowing costs

• Population and labour-force growth supported by increasing immigration

• Moderate inflation within Bank of Canada target band

HEADLINE INFLATION

02468

101214

90 92 94 96 98 00 02 04 06 08 10 12 15 17 19

%

U.S.

Canada – official

Sources: Scotiabank Economics, Statistics Canada, BLS. Data through October 2019.

-2

0

2

4

6

00 02 04 06 08 10 12 14 16 18

Sources: Scotiabank Economics, Statistics Canada, BLS. Data through October 2019 (Canada) and October 2019 (US).

LABOUR FORCE PARTICIPATION RATE

Sources: Scotiabank Economics, Statistics Canada, BLS. Data through October 2019.

U.S.

Canada Bank of Canada Target Inflation Band

y/y

% c

hang

e

%

U.S.

Canada

Canada – comparable

to U.S.

67

Population Growth: A Canadian Differentiator

Population Growth: A Canadian Differentiator

Sources: IMF, Scotiabank Economics

G7 Population Growth

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

08 09 10 11 12 13 14 15 16 17 18

Canada JapanUnited Kingdom United StatesEuro Area

p

annual % change

68

Housing Undersupplied, Prospects are Solid

Housing Undersupplied, Prospects Solid

Sources: Statistics Canada, Scotiabank Economics

Housing Supply Situation

0

40

80

120

160

200

240

10 11 12 13 14 15 16 17 18 19

Vancouver Toronto Calgary Montreal

completed & unabsorbed units per population aged 15 and over, index, 2010 = 100

69

Mexican Economy Diverse economy with a strong balance sheet

Top 5 Trading Partners

MEXICAN GDP BY INDUSTRY

(Q2 2019)

6.6%

16.0%

6.0%

6.7% 3.8%

1.9%

16.3% 17.7%

16.0%


Health & Education

Wholesale & Retail Trade

Manufacturing


Construction

Public Administration




Other

3.2% Natural

Resources

• The Mexican economy reflects a solid mix of commodities, goods production, and services

• Trade remains dominated by the U.S., but Mexico’s diversification agenda is underpinned by 13 free-trade agreements with 47 countries that account for 40% of global GDP

United States

59%

Others 20%

Germany 3% Japan 3%

Canada 4%

China 11%

5.8%

-5

-4

-3

-2

-1

0

1

2

3

4

5

16 17 18 19

Other*Net ExportsInventoriesInvestmentGovernmentConsumptionReal GDP

Contributions to Mexican GDP Growthy/y % change

*Statistical discrepancy, subject to revision.Sources: Scotiabank Economics, Haver Analytics.

70

Peruvian Economy Resilient economic fundamentals

PERUVIAN GDP BY INDUSTRY

(Q2 2019)

10.2%

14.1% 31.9%

20.8%

5.5% Finance, Insurance,

& Real Estate

Transportation, Information &

Commerce

Construction

Mining & Energy Other

12.3% Manufacturing

5.1% Natural

Resources


United States

18%

Others 43%

Brazil 5%

Spain 4%

South Korea 4%

China 27%

• Peru’s important resource sectors are increasingly balanced by stronger service-sector activity and solid economic fundamentals

• Peru has 16 free-trade agreements with 49 countries that account for 66% of global GDP

• Investment is making a consistently strong contribution to GDP, which should make solid growth rates more sustainable in the future

-6

-4

-2

0

2

4

6

8

16 17 18 19

Net ExportsInventoriesInvestmentGovernmentConsumptionReal GDP

Contributions to Peruvian GDP Growthy/y % change

Sources: Scotiabank Economics, Haver Analytics.

71

Chilean Economy Advanced economy with wide-ranging trade links

CHILEAN GDP BY INDUSTRY (Sep 2019) 2.0%

9.3% 15.3%

6.3%

4.5% 19.4% 8.6%

8.6% 10.2%

12.4%

Finance, Insurance, & Real Estate Wholesale & Retail Trade

Manufacturing


Construction

Public Administration Housing & Personal

Services


Restaurants & Hotels

Other

3.4% Natural Resources


United States

16%

Others 38%

Brazil 7%

Japan 6%

South Korea 4%

China 29%

• Chile’s mix of economic activities reflects its status as an advanced market economy

• Chile’s diversified trading relationships are supported by 23 free-trade agreements with 60 countries that account for 73% of global GDP

• Investment has been a strong contributor to growth in Chile over the past year, which should underpin future productivity gains

-6

-4

-2

0

2

4

6

8

16 17 18 19

Net ExportsInventoriesInvestmentGovernmentConsumptionReal GDP

Contributions to Chilean GDP Growthy/y % change

Sources: Scotiabank Economics, Haver Analytics.

72

Colombian Economy Gaining momentum

COLOMBIAN GDP BY

INDUSTRY (Q3 2019)

6.2%

17.6% 13.6%

6.6%

14.8% 6.9%

2.8%

9.1% 11.9%

8.1%


Wholesale, Retail Trade, Accommodation & Food Services

Manufacturing

Construction


Public Administration



Information & Communication

Natural Resources

Other

2.4% Arts &

Entertainment


Ecuador 3%

United States

28% Others 42%

Brazil 5%

Mexico 6%

China 17%

• Services account for a rising share of Colombian GDP compared with traditional strengths in extractive industries

• Colombia continues to build on its 11 free-trade agreements with 46 countries that account for 41% of global GDP

• Rising consumption, supported by public spending, reflects an expanding middle class as growth gains momentum and converges toward the economy’s underlying potential

-6

-4

-2

0

2

4

6

8

16 17 18 19

Other*Net ExportsInvestmentGovernmentConsumptionReal GDP

Contributions to Colombian GDP Growth

y/y % change

*Statistical discrepancy, subject to revision.Sources: Scotiabank Economics, Haver Analytics.

Canadian Housing Market

Appendix 2

74

Housing Market Differences vs U.S. Canada’s housing market features distinct practices and policies

Canada U.S.

Regulation and Taxation

• Mortgage interest not tax deductible • Full recourse against borrowers in most provinces • Foreclosure on non-performing mortgages, no stay periods

Insurance

• Mandatory default insurance mortgages with LTV > 80% o CMHC backed by Government of Canada (AAA). Private insurers

are 90% government backed o Insurance available for homes up to CAD 1 mn o Premium is payable upfront o Covers full amount for life of mortgage

• Homebuyers must qualify for mortgage insurance at an interest rate that is the greater of their contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate

• Re-financing cap of 80% LTV on non-insured mortgages

Amortization

• Maximum 25-year amortization on mortgages with LTV > 80% • Maximum 30-year amortization on conventional mortgages • Down payment of > 20% required for non-owner

occupied properties

• Tax-deductible mortgage interest creates incentive to borrow and delay repayment

• Lenders have limited recourse in most states

• 90-day to 1-year stay period to foreclose on non-performing mortgages

• No regulatory LTV limit • Private insurers are not

government backed

Product

• Conservative product offerings, fixed or variable rate options • Much less reliance upon securitization and wholesale funding • Asset-backed securities not subjected to US-style off-balance sheet

leverage via special purpose vehicles

• Can include exotic products (e.g. adjustable rate mortgages, interest only)

Underwriting • Terms usually three or five years, renewable at maturity • Extensive documentation and strong standards

• 30-year term most common • Wide range of documentation

and underwriting requirements

75

Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market

2018

• Canada: OSFI imposes more stringent stress tests for uninsured mortgages, including a minimum qualifying rate at the greater of the five-year fixed posted rate or the contractual rate plus 200 bps, effective January 1, 2018

• Ontario: Elimination of rent control on new rental units first occupied on or before November 1, 2018

• British Columbia: Extension of the Property Transfer Tax on non-resident buyers. Investment of more than CAD 1.6 bn through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years

2017

• Ontario: 16 measures aimed to slow rate of house price appreciation

Key aspects include: o 15% non-resident

speculation tax o Expanded rent control to all

private rental units in Ontario

o Vacant home tax o CAD 125 mn five-year

program to encourage construction of new rental apartment buildings

2016

• Canada: Qualifying stress rate for all new mortgage insurance must be the greater of the contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate

• Low-ratio mortgage insurance eligibility requirements updated for lenders wishing to use portfolio insurance: o Maximum amortization 25

years o CAD 1 mn max. purchase

price o Minimum credit score of 600 o Owner-occupied property

• Elimination of primary residence tax exemption for foreign buyers

• Min. down payment on insured increased from 5% to 10% (for homes CAD 0.5‒1.0 mn)

• British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced

2019

• British Columbia: Increase in speculation tax on foreign and domestic home owners who do not pay income tax in BC from 0.5% of a property’s assessed value to 2%; additional school tax levied on portion of a property’s value that exceeds CAD 3 mn

• Ontario: Measures to increase supply of available housing

Key aspects include:

o Greater authority over land use planning decisions for the province’s independent municipal dispute resolution body

o Reduced red tape on new residential developments

o Updated zoning regulations to facilitate building of affordable homes near transit

Bail-in and TLAC

Appendix 3

77

Canadian Bail-in Regulations: Key Features Best in class approach

• Post September 23, 2018, senior unsecured debt issued by Canadian DSIBs that is subject to bail-in is the only format of issuance available1 and is a single class of debt2 that is not subordinated to another class of wholesale senior debt

• Canadian bank term senior unsecured debt is not structurally, statutorily or contractually subordinated to another class of senior liabilities and therefore is equal to deposits and other senior liabilities in liquidation

• In the remote probability of default, the no creditor worse off principle ensures that bailed-in senior creditors should not incur greater losses through resolution than liquidation. The CDIC compensation regime ensures holders receive the difference between liquidation and resolution value

• Canada utilizes a statutory regime where, unlike the contractual regime of Canadian NVCC capital

instruments, there is no set conversion multiplier and there is flexibility for a partial bail-in or no bail-in of senior debt even if NVCC instruments are converted

• Canadian bank resolution framework provides senior debt holders with protection in that the relative creditor hierarchy is maintained. Acceleration rights3 upon non-payment of principal or interest are allowed in Canada

1 Excludes structured notes as defined in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act 2 Ranks pari passu with other forms of senior debt, except as otherwise prescribed by law and subject to the exercise of bank resolution powers 3 Subject to 30 business day grace period and subject to bail-in conversion powers until repaid in full

78

Canadian Bail-in Regulations: Jurisdictional Comparison Best in class approach

1 Applicable in practice for G-SIBs’ issuance of non-capital bail-in debt 2 Approach applicable to G-SIBs in relevant jurisdictions. Additionally, Switzerland uses structural subordination, Germany uses statutory subordination, Spain uses contractual subordination 3 Assuming only bail-in is triggered. If other resolution powers are exercised, debt holders could be exposed to losses in a manner similar to a write-down of their claims 4 No bail-in power. In resolution, debtholders could potentially receive partial recoveries (analogous to a write-down) or have their claims satisfied through the issuance of new securities (analogous to a bail-in conversion) 5 The terms of senior non-preferred do not include acceleration rights upon failure to pay principal and interest; however, there is no statutory restriction in this regard. Once resolution proceedings are underway, holders may declare an event of default for failure to meet payment obligations

Instrument type Opco senior Holdco senior Holdco senior1 Holdco senior Opco non-preferred senior

Ranking in Liquidation Pari passu with deposits and other senior liabilities Structural subordination2

Structural subordination2

Structural subordination2

Contractual subordination2

Subordination schematic

Depositor preference No Yes Yes Yes Yes

Participation in equity post resolution

Conversion to equity of the bank or an affiliate allows participation in the upside, if any3 N/a4

Uncertain given possibility of writedown



Acceleration rights upon failure to pay principal and interest

Yes Yes Yes Yes No5

Capital

Deposits Other senior

liabilities

Senior debt

subject to

bail-in

Capital

Deposits

Opco senior / senior preferred / other senior liabilities

Holdco senior / senior non-preferred

79

Summary of Bail-in / TLAC Regime Best in class approach

1 Yankee CD’s with original term > 400 days are in-scope of bail-in 2 As per definition of structured notes in section 2(6) of the Bank Recapitalization (Bail-in) Conversion Regulations under the CDIC Act 3 Provided such bail-in debt meets certain other requirements

Scope OSFI designated DSIBs

Scope of bail-in instruments

Senior unsecured debt that is tradeable and transferable, original term >400 days, unsecured and issued, originated or renegotiated after September 23, 2018

Liabilities excluded from bail-in

Insured deposits, uninsured deposits1, debt with original term < 400 days, ABS / covered bonds, structured notes2, derivative liabilities, other liabilities

TLAC compliance date November 1, 2021

TLAC requirement 23.5% minimum risk-based TLAC ratio (21.50% plus a 2.00% Domestic Stability Buffer) 6.75% minimum TLAC leverage ratio

TLAC eligibility Regulatory capital + bail-in debt with remaining term to maturity > 1 year3

Grandfathering Yes – all senior instruments issued prior to September 23, 2018

Sequencing and preconditions

1. Federal authorities bring bank into resolution 2. Full conversion of bank’s NVCC instruments must occur prior to or concurrently with bail-in

Form of bail-in Equity conversion

DSIB disclosure requirements

- Include disclosure related to the conversion power in any agreement governing an eligible liability as well as any accompanying offering document - Include a clause in the contractual provisions governing any eligible liability through which investors provide express submission to the Canadian bail-in regime - Provide disclosure of TLAC ratios beginning Q1 2019

• Bail-in is not the only path in Canada to resolve a failing bank. Canadian authorities retain full discretion to use other powers including “vesting order”, “receivership order”, “bridge bank resolution order”, etc.

• Conversion into equity under the Canadian bail-in regime has the potential to result in realizable value, potentially in excess of principal amount

Covered Bonds

Appendix 4

81

Global Registered Covered Bond Program Global Covered Bond Program: CAD$38 billion

• Active in multiple currencies: USD, EUR, GBP, AUD and CHF • CAD$26 billion outstanding vs. $38 billion program size • Extensive regulatory oversight and pool audit requirements • Mandatory property value indexation • Established high level of safeguards and disclosure requirements • Program carries the ECBC Covered Bond Label

Issuer The Bank of Nova Scotia

Guarantor Scotiabank Covered Bond Guarantor Limited Partnership

Guarantee Payments of interest and principal in respect of the covered bonds are irrevocably guaranteed by the Guarantor. The obligations under the Covered Bond Guarantee constitute direct obligations of the Issuer and are secured by the assets of the Guarantor, including the Portfolio.

Status

The covered bonds will constitute legal, valid and binding direct, unconditional, unsubordinated and unsecured obligations of the Bank and will rank pari passu with all deposit liabilities of the Bank without any preference among themselves and at least pari passu with all other unsubordinated and unsecured obligations of the Bank, present and future.

Program Size CAD $38 billion

Ratings Aaa / AAA / AAA (Moody’s / Fitch / DBRS)

Cover Pool First lien uninsured Canadian residential mortgage loans with LTV limit of 80%

Asset Percentage 94.8% (5.5% minimum overcollateralization)

Law Ontario, Canada

Issuance Format 144A / Reg S (UKLA Listed)

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Global Registered Covered Bond Program1 Global Covered Bond Program: CAD$38 billion program size, $26 billion outstanding

13.7%

26.9% 28.5%

6.9% 12.9% 11.2%

<12 12-23.99 24-35.99 36-41.99 42-47.99 48+

4% 19%

41% 34%

2%

0-20% 20-40% 40-60% 60-80% 80+%

1 As at October 31, 2019 2 Uses indexation methodology as outlined in Footnote 1 on page 3 of the Scotiabank Global Registered Covered Bond Monthly Investor Report 3 Excludes unavailable credit scores 4 May not add to 100% due to rounding

LOAN-TO-VALUE RATIOS2 CREDIT SCORES3

1% 1% 5% 11% 17%

64%

<599 600-650 651-700 701-750 751-800 800+

REMAINING TERM DISTRIBUTION (MONTHS) PROVINCIAL DISTRIBUTION4

12.0%

Yukon

2.6%

1.1%

0.3% Ontario

British Columbia

Manitoba

New Brunswick

Newfoundland

Nova Scotia

Alberta

58.2% P.E.I.

Quebec

Saskatchewan

0.2%

19.3%

1.3% 1.1%

1.6%

2.2%

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Canadian Legislative Covered Bonds (CMHC Registered)

Issuance Framework • Canadian Registered Covered Bond Programs’ Legal Framework (Canadian National Housing Act) • Canadian Registered Covered Bond Programs Guide issued by Canada Mortgage and Housing

Corporation (CMHC) Eligible Assets • Uninsured loans secured by residential property in Canada

Mortgage LTV Limits • LTV limit of 80%

Basis for Valuation of Mortgage Collateral • Issuers are required to index the value of the property underlying mortgage loans in the covered pool while performing various tests

Substitute Assets • Securities issued by the Government of Canada • Repos of Government of Canada securities having terms acceptable to CMHC

Substitute Assets Limitation • 10% of the aggregate value of (a) the loans (b) any Substitute Assets and (c) all cash held by the Guarantor

Cash Restriction • The cash assets of the Guarantor cannot exceed the Guarantor’s payment obligations for the immediately succeeding six months

Coverage Test • Asset coverage Test • Amortization Test

Credit Enhancement • Overcollateralization • Reserve Fund • Prematurity Liquidity

Swaps • Covered bond swap, forward starting • Interest rate swap, forward starting

Market Risk Reporting • Valuation calculation • Mandatory property value indexation

Covered Bond Supervisory Body • CMHC

Requirement to Register Issuer and Program • Yes; prior to first issuance of the covered bond program

Registry • Yes

Disclosure Requirements • Monthly investor report with prescribed disclosure requirements set out by CMHC • Investor reports must be posted on the program website • Required to meet applicable regulatory disclosure requirements

Additional Information

Appendix 5

85

Canada $3.5B Adds wealth management assets of $96B. Adds 110,000 potential primary customers. Expands wealth management offering.

Chile $2.9B Doubles market share. Creates 3rd largest bank. Further diversifies business.

Peru $0.2B Creates 2nd largest bank in credit cards. Further diversifies business.

Colombia $0.4B Creates market leader in credit cards.

Dominican Republic $0.4B Doubles customer base.

Creates 4th largest bank.

Increasing Scale via Strategic Acquisitions

Recent Acquisition Activity 2018-2019

86

Additional Information

• Toronto Stock Exchange (TSX: BNS) • New York Stock Exchange (NYSE: BNS)

Moody's Investors Services Standard & Poor's Fitch Ratings

Dominion Bond Rating Service

Ltd.

Legacy Senior Debt1 Aa2 A+ AA- AA

Senior Debt2 A2 A- AA- AA (low)

Subordinated Debt (NVCC) Baa1 BBB+ - A (low)

Short Term Deposits/Commercial Paper P-1 A-1 F1+ R-1 (high)

Covered Bond Program Aaa Not Rated AAA AAA

Outlook Stable Stable Stable Stable

Scotiabank Credit Ratings

• CUSIP: 064149107 • ISIN: CA0641491075 • FIGI: BBG000BXSXH3 • NAICS: 522110

Scotiabank Listings: Scotiabank Common Share Issue Information:

1 Includes: (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the bank recapitalization "bail-in" regime 2 Subject to conversion under the bank recapitalization "bail-in" regime

87

Contact Information

Investor Relations

Philip Smith Senior Vice President 416-863-2866

[email protected]

Lemar Persaud Director 416-866-6124

[email protected]

Funding

Judy Lai Director 416-775-0485

[email protected]

Steven Hung Vice President 416-933-8774

[email protected]

Tiffany Sun Manager 416-866-2870

[email protected]

Tom McGuire Executive Vice President & Group Treasurer

416-860-1688

[email protected]

Mark Michalski Director, Strategy & Market Development, Funding

416-866-6905

[email protected]

Christy Bunker SVP, CB Treasury, Term Funding

and Capital management

416-933-7974

[email protected]

Documents

Investor Presentation - Scotiabank€¦ · Management” section of the Bank’s 2019 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying