Investor Presentation - Scotiabank

Investor Presentation Fourth Quarter 2018

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 2018 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 2018 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 2018 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.

TABLE OF CONTENTS

Scotiabank Overview 4

• Canada’s International Bank 5

• Well-Diversified and Profitable Business 6

• Medium-Term Financial Objectives 7

• Why Invest in Scotiabank? 8

• Increasing Scale, Improving Focus 9

• Track Record of Earnings and Dividend Growth 10

• Strong Capital Generation and Position 11

• Progress in Digital Banking 12

• Corporate Social Responsibility 13

Appendix 1: Business Line and Financial Overview 14

• 2018 Financial Performance 15

• Q4 2018 Financial Performance 16

• Canadian Banking 17

• International Banking 23

• Global Banking and Markets 26

• Credit Performance by Business Lines 28

• Wholesale Funding Composition 29

Appendix 2: Canadian Housing Market 30

Appendix 3: Key Market Profiles 36

Appendix 4: Energy Exposure 44

Additional Information 46

Contact Information 47

Scotiabank Overview

Canada’s International Bank Top 10 Bank in the Americas1,2

5 LEADING BANK IN THE AMERICAS

Full-Service

Canada • Mexico

Peru • Chile

Colombia • Caribbean

Uruguay

Wholesale Operations

USA • UK • Hong Kong

Singapore • Australia

Ireland • China • Brazil

South Korea • Malaysia

India • Japan

Earnings by Geography3,5,6

Scotiabank3 FY2018

Change

Y/Y

Revenue $28.8B +6%

Net Income $9.1B +10%

Return on Equity 14.9% +20bps

Operating Leverage 3.7% +390bps

Productivity Ratio 51.7% -190bps

Total Assets $998B +9%

Ranking by Market Share4

Canada 3

USMCA U.S.A. Top 10 Foreign Bank

Mexico 6

Peru 3 Chile 3

Colombia 5

Americas 7th largest bank by market capitalization1

8th largest bank by assets1

Europe

Asia

1 Source: Bloomberg 10/31/18; 2 By assets and market capitalization; 3 Figures 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; 4 Market share in loans as of September 2018 for PACs, as of July 2018 in Canada; 5 For the twelve months ended October 31, 2018; 6 Excluding Corporate adjustments

Canada

U.S.A

PAC

Other

Americas Other

PAC

Americas (90%)

55%

7%

21%

7% 10%

2018 Bank of the Year

Latin America and the

Caribbean by LatinFinance

Canada

55%

U.S.

7%

Mexico

7%

Peru

8%

Chile

5%

Colombia

1%

Other Americas

7%

Other International

10%

6

Well-Diversified and Profitable Business

GREATER SCALE, GREATER FOCUS

Earnings by Business1,2,3 Earnings by Country1,2,3

1 For the twelve months ended October 31, 2018; 2 Figures 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 Excluding Corporate adjustments

Diversified by business and by country, creating stability and lowering risk

Canadian

Banking

49%

EARNINGS MIX

$8.9B

23.0%

15.8% 16.0% 14.9%

Canadian Banking International Banking Global Banking andMarkets

All Bank

Canadian Banking

P&C

40%

International

Banking

31%

Global Banking and

Markets

20%

Canadian

Banking Wealth

9%

7

Medium-Term Financial Objectives1 2018 results met or exceeded medium-term objectives

METRICS OBJECTIVES FY2018 RESULTS2

(Y/Y Change)

ALL BANK

EPS Growth 7%+ +9%

ROE 14%+ 14.9%

Operating Leverage Positive 3.7%

Capital Strong Levels 11.1%

OTHER FINANCIAL OBJECTIVES

Dividend Payout Ratio 40%-50% 47.7%

CANADIAN BANKING

Net Income Growth 7%+ +8%

Productivity Ratio <49% (by 2020) 49.3%

INTERNATIONAL BANKING

Net Income Growth3 9%+ +16%

Productivity Ratio <51% (by 2020) 52.4%

13-5 year objectives. 2Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18; 3On a constant dollar basis

Why Invest in Scotiabank?

8

Canada’s international bank

and a top 10 bank in the

Americas

Diversified exposure to high

quality growth markets

Increasing scale and market

share in key markets

• Leading bank in the Pacific Alliance growth markets of Mexico, Peru, Chile and Colombia – a region of 230 million people with an under-banked market and a median age of 29

• Earnings momentum in personal & commercial, wealth, and wholesale businesses

• Gaining market share in key markets of Canada and the Pacific Alliance countries

• Top 3 bank in Canada, Chile and Peru

• Increasing scale in Wealth and Pacific Alliance with $7B of strategic acquisitions in 2018

• Unique footprint that provides sustainable and growing earnings and dividends

• Strong balance sheet, capital and liquidity ratios

• Attractive dividend yield and long-term shareholder returns

• Approximately 80% of earnings from core personal and commercial banking businesses

• Exited over 20 non-core countries and businesses since 2014

• Strong Canadian risk management culture – building stronger capabilities for AML, cyber and reputational risk

Improving quality of earnings

while reducing risk profile

• Leading levels of technology investment supports digital banking strategy. Increasing digital sales adoption with clear targets

• Well positioned in the Pacific Alliance to leverage technology, risk management and funding versus local and global competitors

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

Enhancing competitive

advantage in technology

and talent

Canada Increases wealth management assets to $230B.

Adds 110,000 potential primary customers.

Chile Doubles market share. Creates 3rd largest bank.

Peru Creates #2 bank in credit cards.

Colombia Creates market leader in credit cards.

Dominican

Republic Doubles customer base. Creates 4th largest bank.

9

Increasing Scale, Improving Focus1 Gaining scale in key markets to drive earnings growth, improve earnings quality and reduce risk

INCREASING SCALE, IMPROVING FOCUS

Gaining Market Share (Total Loans)

Reducing Risk Profile Improving Earnings Quality

Increasing Scale with Strategic Acquisitions (2017-2019)

Increased wealth AUM by

37% to $282B in 2018.

Targeting earnings

contribution to All-Bank

earnings from

12% to 15%

Reduced

contribution of

trading to All-Bank

revenue from

7.5% to 4.9%

• Reduced wholesale funding (% of assets) from 29.6% to 23.4 %

• Reduced asset exposure in Asia by 21%

Canada

Mexico

Chile

Peru

Colombia

2013 2018

57 countries 38

countries

Between 2013 and 2018, exited

19 countries with either low

returns, small scale or higher

operational risk:

Turkey • Russia • Haiti • Egypt

Taiwan • UAE • plus 13 others

Exited 3 non-core businesses

2013

2018

0 2 4 6 8 10 12 14 16 18 20

1 5-year period 2013-2018

6.6%

10.4% 11.8% 11.1%

13.2% 12.0%

5 Year 10 Years 20 Years

$1.92

$3.28

08 09 10 11 12 13 14 15 16 17 18

Strong Track Record of Earnings and Dividend Growth

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, 2018

Stable and predictable earnings with steady increases in dividends

10

Earnings per share (C$)1,2

$3.05

$7.11

08 09 10 11 12 13 14 15 16 17 18

Dividend per share (C$)

+9%

CAGR

+6%

CAGR

Total shareholder return3

Scotiabank Big 5 peers (ex. Scotiabank)

INCREASING SCALE, IMPROVING FOCUS

11

CET1 Ratio

Strong Capital Levels

11.5% 11.2% 12.0% 11.4% 11.1%

1.6% 1.5% 1.5%

1.4% 1.4%

1.8% 1.9% 1.8%

1.7% 1.8%

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

CET1 Tier 1 Tier 2

14.3% 14.9% 14.6% 15.3%

Strong Capital Generation and Position Capital levels are well above minimum regulatory requirements. Expect CET1 stay above 11%.

11.4% +33 bps +14 bps -65 bps -10 bps +1 bp

11.1% +10 bps

11.2%

Q3/18 Internal CapitalGeneration

RWA Impact(ex. FX)

Impact ofAcquisitions

Share issuance/ (buybacks)

(net)

OtherIncluding FX

Q4/18 Impact ofAnnouncedDispositions

Q4/18 Pro-Forma

14.5%

12

Progress in Digital Banking Progressing well against 2018 Investor Day digital targets

• Solid progress made in

all five key markets

across various product

suites including

deposits, personal

loans, insurance, etc.

• Digitally-active users

up over 30% in

Mexico, Colombia

and Peru. High single

digit growth in

Canada and Chile

• Mobile transactions

up over 30% in

Canadian Banking,

while in-branch

transactions

declined 6%

26 23

20

F2016 F2017 F2018

Digital Retail Sales Digital Adoption In-Branch Financial Transactions

Goal

>50%

11

15

22

F2016 F2017 F2018

26 29

33

F2016 F2017 F2018

Goal

>70%

+11% +7% -6%

Goal

<10%

13

Corporate Social Responsibility

MEMBERSHIPS &

ASSOCIATIONS

Business Line and

Financial Overview

Appendix 1:

15

2018 Financial Performance Strong adjusted earnings growth with positive operating leverage and productivity gains

YEAR-OVER-YEAR HIGHLIGHTS

• Adjusted Net Income up 10%3

• Revenue up 6%

o Net interest income up 8%

o Non-interest income up 4%

• Expense growth of 2%3

• Productivity ratio improved 190 bps3

• Full year operating leverage of +3.7%3

• Improved PCL ratio on impaired loans1, 2

1 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 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, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18

ADJUSTED NET INCOME3 BY BUSINESS SEGMENT ($MM)

4,090 2,424 1,818

4,416 2,819

1,758

Canadian Banking International Banking Global Banking andMarkets

2017 2018

+8% Y/Y +16%

Y/Y -3% Y/Y

$MM, except EPS 2018 Y/Y

Reported

Net Income $8,724 +6%

Diluted EPS $6.82 +5%

Revenue $28,775 +6%

Expenses $15,058 +3%

Productivity Ratio 52.3% (160bps)

Core Banking Margin 2.46% -

PCL Ratio1, 2 48bps +3bps

PCL Ratio on Impaired Loans1, 2 43bps (2bps)

Adjusted3

Net Income $9,144 +10%

Diluted EPS $7.11 +9%

Expenses $14,871 +2%

Productivity Ratio 51.7% (190bps)

PCL Ratio1, 2 41bps (4bps)

16

Q4 2018 Financial Performance Strong revenue growth and higher NIM

$MM, except EPS Q4/18 Y/Y Q/Q

Reported

Net Income $2,271 +10% +17%

Diluted EPS $1.71 +4% +10%

Revenue $7,448 +9% +4%

Expenses $4,064 +11% +8%

Productivity Ratio 54.6% +80bps +210bps

Core Banking Margin 2.47% +3bps +1bp

PCL Ratio1, 2 39bps (3bps) (30bps)

PCL Ratio on Impaired Loans1, 2 42bps - +1bp

Adjusted3

Net Income $2,345 +13% +4%

Diluted EPS $1.77 +7% +1%

Expenses $3,962 +9% +6%

Productivity Ratio 53.2% (40bps) +140bps

PCL Ratio1, 2 39bps (3bps) (1bp)



• Revenue up 9%


o Non-interest income up 8%

• Expenses up 9%3

• Productivity ratio improved 40 bps3

• Flat PCL ratio1, 2 on impaired loans

1 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 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, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18

DIVIDENDS PER COMMON SHARE

0.79 0.79 0.82 0.82 0.85

0.03 0.03

Q4/17 Q1/18 Q2/18 Q3/18 Q4/18Announced Dividend Increase

57%

25%

18%

60%

22%

16%

2%

• Improved productivity towards our 49% productivity ratio target (45% ex Wealth) by 2020 supported by higher revenue growth and mid-dingle digit expense growth.

• Integration of our recent acquisitions in Wealth: MD Financial Management ($49B AUM) and Jarislowsky Fraser ($40B AUM)

• Leverage data analytics for prudent growth in higher margin credit card and small business banking

• Increase core deposits; increase primary customers towards our 1 million new primary customer goal

• 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

17

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

STRATEGIC OUTLOOK

REVENUE MIX1

Retail

Wealth

Commercial

Personal

Loan Business and

Government Loans

AVERAGE LOAN MIX1

$3.4B $340B

Residential

Mortgages

1 For the three months ended October 31, 2018; 2 As at October 31, 2018; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related

to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18; 4 Attributable to equity holders of the Bank 5 3-5 year target.

Credit Cards

MEDIUM-TERM FINANCIAL OBJECTIVES

Target 2018 Actual2,3

Net Income Growth4 7%+ 8%

Productivity Ratio5 <49% 49.3%

CB ex Wealth <45% 46.0%

Wealth <65% 60.6%

New Primary Customers +1MM +160,000

18

Q4 2018 Canadian Banking Financial Performance Solid asset and deposit growth, margin expansion and positive operating leverage4

1,073 1,107 1,022 1,141 1,146

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

2.41% 2.41% 2.43% 2.46% 2.45%

ADJUSTED NET INCOME1,4 ($MM) AND NIM (%)


o Asset and deposit growth, margin expansion

• Revenue up 5%


• Loan growth of 5%

o Business loans up 13%

o Residential mortgages up 3%; credit cards up 7%

• Deposit growth of 6%

o Personal up 5%; Non-Personal up 7%

• NIM up 4 bps

o Rising rate environment and improved business mix

• Expenses up 5%4

o Investments in technology and regulatory initiatives

o Full-year productivity ratio improvement of 90bps4

• Full-year operating leverage of +1.9%4

• PCL ratio2, 3 improved by 4 bps due to lower

retail PCLs

FINANCIAL PERFORMANCE AND METRICS ($MM)1


1 Attributable to equity holders of the Bank 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures 4 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions

Q4/18 Y/Y Q/Q

Reported

Revenue $3,443 +5% +2%

Expenses $1,747 +7% +5%

PCLs $198 (9%) +9%

Net Income $1,115 +4% (1%)


Net Interest Margin 2.45% +4bps (1bp)

PCL Ratio2, 3 0.23% (4bps) +2bps

PCL Ratio on Impaired Loans2, 3 0.22% (5bps) +1bp

Adjusted4

Expenses $1,705 +5% +4%

Net Income $1,146 +7% -


19

Canadian Banking: Retail Exposures 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.

DOMESTIC RETAIL LOAN

BOOK

79%

3% Credit Cards

5% Unsecured

13% Automotive

Real Estate

Secured Lending

$286.2B

• Residential mortgage portfolio is high quality

o 43% insured, and the remaining 57% uninsured has a LTV of 54%1

• Market leader in auto loans

o $37 billion auto loan portfolio with 7 OEM relationships (3 exclusive)

o Prime Auto and Leases (~91%)

o Lending terms have been declining with contractual terms averaging 77 months with effective terms averaging 54 months

• Growth opportunity in credit cards

o $7.3 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: ~80% of growth is from existing customers (penetration rate mid-30s versus peers in the low-40s)

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

$94.8

$29.4 $27.1 $14.1 $11.2 $8.8

$12.2

$9.2 $3.6

Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba &Saskatchewan

20

Canadian Banking: Residential Mortgages High quality, diversified portfolio

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: $213B (SPOT BALANCES AS AT Q4/18, $B)

% of

portfolio 50% 18% 14% 8% 5% 5%

$1.8 $0.2

$0.7

Freehold - $185B Condos - $28B $107.0

$38.6 $30.7

$15.9 $11.4 $9.5

43%

57% Uninsured

Total

Portfolio:

$213 billion

Insured

o Residential mortgage portfolio of $213 billion: 43% insured; LTV 54% on the uninsured book1

• Mortgage business model is “originate to hold”

• New originations2 had average LTV of 63% in Q4/18

• Majority is freehold properties; condominiums represent approximately 13% of the portfolio

o Three distinct distribution channels: All adjudicated under the same standards

• 1. Broker (~55%); 2. Branch (~25%); and 3. Mobile Salesforce (~20%)

4% 11% 12%

16%

57%

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

21

Canadian Banking: Residential Mortgages (continued) High quality portfolio, lower originations in Vancouver and Toronto

FICO is a registered trademark of Fair Isaac Corporation

Q4/17 Q3/18 Q4/18 Growth/Change

Y/Y

Canada

Total Originations ($B) 12.9 11.9 10.5 -19%

Uninsured LTV 64% 63% 63% -1%

GTA Total Originations ($B) 3.9 3.6 3.2 -18%


GVA Total Originations ($B) 1.8 1.4 1.1 -39%


Average FICO® Score

Canada 787

GTA 790

GVA 790 • <0.65% of uninsured portfolio has a

FICO® score of <620 and an LTV >65%

• Canadian uninsured mortgage portfolio

is $121 billion as at Q4/2018

FICO® DISTRIBUTION – CANADIAN UNINSURED PORTFOLIO

GTA

62%

ON

63%

QC

65%

Prairies 67%

GVA

59%

BC &

Territories

61%

Atlantic

Provinces

69%

NEW ORIGINATIONS: UNINSURED LTV* DISTRIBUTION

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

22

Tangerine Canada’s #1 Digital Bank

• Simple, market-leading products that appeal to value-

conscious and tech-savvy Canadians

• Seamless digital client experience

• Highly competitive rates, simple products

• Velocity

• Enhanced self-service options, adding speed & agility

• Nimble, modern platform supporting rapid development cycles

• Low cost, scalable business model ~50% multiple-p roduct clients

Primary clients +23% Y/Y

50% New Clients via Referrals

STRATEGIC FOCUS:

Simplicity

Rapid Deployments:

Agile best practices enable

quick & efficient new product &

feature delivery.

Incubator:

Identify, explore, and pilot new

technologies and solutions to

meet evolving Client needs.

Scalable:

Nimble, low cost systems

provide a holistic client view.

Third-Party Recognition:

J.D. Power Customer Satisfaction

seven years in a row, Finovate “Best

in Class” for digital experiences.

Modern Platform Speed & Agility Client-Driven Innovation Unique ‘Orange’ Culture Award Winning Approach

Team Tangerine:

Our unique culture and

lean team are an essential

part of how we deliver.

Partnerships

• Accelerating momentum through the Toronto Raptors

• Deepening client relationships by introducing SCENE Loyalty

• Strong partnership with Scotiabank

• Industry-leading customer service (NPS)

• 97% digital transactions

• 96% digital on-boarding

• 91% digital sales

• International Banking operates primarily in Latin America, the Caribbean and Central America with a full range of personal and commercial financial services, as well as wealth products and solutions

23

International Banking Leading diversified personal and commercial franchise in high quality growth markets

STRATEGIC OUTLOOK

MEDIUM-TERM FINANCIAL OBJECTIVES

70% 24%

6%

REVENUE1

$3.1B

Asia

C&CA Latin

America

26% Mexico

23% Peru

26% Chile 18%

Colombia

5% Uruguay

2% Brazil Latin

America

51%

27%

16%

6% LOAN MIX1

$144B

Credit

Cards

Personal

Loans Residential

Mortgages

Business

Loans

• Integration of acquisitions in Chile and Colombia. Close announced acquisitions in Peru and Dominican Republic.

• Closing of dispositions of non-core operations in smaller Caribbean markets.

• Margins (NIM ~450 bps) and credit quality are expected to remain stable with the level in Q4/18.

• Maintain positive operating leverage

Target 2018 Actual2,3

Net Income Growth4 9%+ 16%

Productivity Ratio5 <51% 52.4%

Operating Leverage Positive +3.1%

1 For the 3 months ended October 31, 2018; 2 As at October 31, 2018; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and

the Day 1 PCL impact on acquired performing loans in Q3/18; 4 Attributable to equity holders of the Bank. 5 3-5 year target.

24

Q4 2018 International Banking Financial Performance Strong performance in the Pacific Alliance supported by acquisitions

4.67% 4.66% 4.74% 4.70% 4.52%

Q4/18 Y/Y Q/Q Reported

Revenue $3,134 +22% +11%

Expenses $1,721 +23% +15%

PCLs $412 +32% (45%)

Net Income $712 +18% +36%


Net Interest Margin 4.52% (15bps) (18bps)

PCL Ratio 1.05% (9bps) (153bps)

PCL Ratio on Impaired Loans3, 4 1.20% +6bps (13bps)

Adjusted6

Expenses $1,661 +19% +14%

PCLs $412 +32% +14%

Net Income $746 +22% +6%


PCL Ratio3, 4, 6 1.05% (9bps) (18bps)

613 675 683 715 746

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

YEAR-OVER-YEAR HIGHLIGHTS2


o Strong asset and deposit growth in Pacific Alliance

o Includes impact of acquisitions and alignment of

reporting period

• Revenues up 22%

o Pacific Alliance up 28%

• Loans up 29%

o Pacific Alliance loans up 42%

• NIM down 15 bps

o Mainly driven by the business mix impact of acquisitions

• Expenses up 19%6

o Business volume growth, inflation and higher technology

costs

o Full year productivity ratio improvement of 150bps6

• Full-year positive operating leverage of

3.1%6

• PCL ratio3, 4, 6 down 9 bps

1 Attributable to equity holders of the Bank 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 3 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 4 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures

ADJUSTED NET INCOME1,6

($MM) AND NIM5 (%)

FINANCIAL PERFORMANCE AND METRICS ($MM)1, 2

5 Net Interest Margin is on a reported basis 6 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18

Key Highlights of Pacific Alliance countries (PACs)

Population1,2 • 230 million. 6.2x Canada’s population. Projected growth outpaces Canada and G7 countries; median age4 of 29

Government

Presidential Elections • No elections scheduled until 2021

Financial Stability • All sovereign credit ratings in IG category with central banks’ policy targeting inflation since 1999

Economy

GDP1 • 9th largest economy in the world

Exports5 • 64% of exports related to manufacturing

Trade Partners5 • US, China and Canada are the PACs’ largest trading partners, representing 72% of exports

Business Environment

HDI Score Rank6 • Rank “High” or “Very High” (United Nations, 2017)

Banking Penetration1 • Under-banked with average banking penetration at ~50% compared to over 90% in Canada and the U.S.

Foreign Direct Investment1 • FDI averaging 3.2% of GDP compared to 1.7% in Canada and the U.S.

25

Scotiabank in the Pacific Alliance Countries Well positioned for long-term growth in large, growing market

Mexico Peru Chile Colombia

PACs

(Total11/Average)

Scotiabank Market Share7 7.1% 18.2% 13.8% 6.2% 11.3%

Market Share Ranking7 6th 3rd 3rd 5th 4th

Strengths Mortgages and Auto Commercial, Personal

and Credit cards

Commercial, Credit cards

and Mortgages Retail and Credit Cards Well positioned

Average Assets8(C$B) $32.3 $24.0 $32.9 $12.3 $101.5

Revenue8(C$B) $2.2 $2.0 $1.7 $1.3 $7.2

Net Income after NCI8,9(C$B) $0.6 $0.7 $0.4 $0.1 $1.9

ROE8,9 26% 24% 11% 6% 17%

# of Employees8,10 13,204 11,032 9,386 9,658 43,280

1 Source: World Bank 2017 2 Population growth: World Bank DataBank 2017-2022 3 EM countries include: Argentina, Brazil, China, Greece, India, Indonesia, Poland, South Africa, Turkey, and Russia 4 Source: The World Factbook, CIA 2017

5 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co-operation and Development (OECD) 2016 6 Human Development Index. Source: United Nations Development Programme (UNDP) 2017. For more information,

please refer to: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf

7 Total loans market share as of September 2018 8 As of October 31, 2018 or for the fiscal year 2018 9 Earnings adjusted for acquisition –related costs including the Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 10Employees are reported on a full-time equivalent basis 11May not add due to rounding

41%

30%

9%

5%

15%

REVENUE1,2

$1.3B

• Full-service wholesale bank in Canada, the United States and Latin America. Offers a range of products and services in select markets in Europe, Asia and Australia.

26

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

STRATEGIC OUTLOOK

Europe

Canada

US

Latin America

Asia

40%

30%

16%

7%

7%

AVG ASSETS1,2

$338B

Asia

Europe

US

Canada

Latin America

57%

21%

18%

4%

REVENUE1

$1.3B

Business Banking

FICC

Other

Global Equities

• Up-tiering lending relationships, expanding our Investment Banking capabilities in key markets, increasing our investment in the Pacific Alliance to become a leader in local and cross-border banking and capital markets

• Continued strong growth in deposits, improved corporate lending and investment banking results to absorb required regulatory and technology investments

1For the 3 months ended October 31, 2018; 2 Latin America revenue contribution and assets reported in International Banking’s results

27

Q4 2018 Global Banking and Markets Financial Performance Solid loan growth, strong credit quality and lower productivity ratio

391

454 447 441

416

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

FINANCIAL PERFORMANCE AND METRICS1 ($MM) YEAR-OVER-YEAR HIGHLIGHTS

• Reported Net Income up 6%

• Loans up 7%

o U.S. loans up 13%

• NIM down 16 bps

o Mainly driven by lower deposit and lending margins

• Expenses down 3%

• Productivity ratio improved 80 bps

• PCL ratio2, 3 improved by 13 bps

o Impaired loan provision reversals in Europe

1 Attributable to equity holders of the Bank 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures

NET INCOME1 AND ROE

Q4/18 Y/Y Q/Q

Revenue $1,073 (1%) (3%)

Expenses $553 (3%) +2%

PCLs ($20) N/A N/A

Net Income $416 +6% (6%)


Net Interest Margin 1.72% (16bps) (10bps)

PCL Ratio2, 3 (0.09%) (13bps) (4bps)

PCL Ratio on Impaired Loans2, 3 (0.07%) (11bps) (1bp)

14.9% 16.2%

16.9% 15.6% 15.3%

28

Credit Performance by Business Lines Stable all-bank PCL ratios on impaired loans

IFRS 9 IAS 39

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

(As a % of

Average Net Loans & Acceptances)

PCLs on

Impaired

Loans

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

Canadian Banking

Retail 0.30 0.29 0.28 0.28 0.28 0.25 0.24 0.25 0.25

Commercial 0.07 0.11 0.08 0.09 0.09 (0.04) 0.06 0.06 0.15

Total 0.27 0.27 0.25 0.25 0.25 0.21 0.21 0.22 0.23

Total – Excluding Credit Mark

Benefits 0.28 N/A N/A N/A N/A N/A N/A N/A N/A

International Banking

Retail 2.00 2.28 2.39 2.26 2.16 2.36 2.254 2.38 2.21

Commercial 0.32 0.28 0.201 0.55 0.341 0.38 0.311, 4 0.07 (0.06)

Total 1.14 1.252 1.261, 2 1.382 1.221, 2 1.33 1.234 1.20 1.05

Total – Excluding Credit Mark

Benefits 1.34 N/A N/A N/A N/A N/A N/A N/A N/A

Global Banking and Markets 0.04 (0.01) (0.04) 0.02 (0.05) (0.06) (0.05) (0.07) (0.09)

All Bank 0.42 0.43 0.42 0.46 0.42 0.41 0.40 0.42 0.39

1 Excludes provision for credit losses on debt securities and deposit with banks

2 Not comparable to prior periods, which were net of acquisition benefits

3 On an reported basis; includes impact of Day 1 PCLs from acquisitions

4 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions

29

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

$233B

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 Q4/18 7 May not add to 100% due to rounding

31%

10% Mortgage

Securitization4

Bearer Deposit Notes, Commercial Paper &

Short-Term Certificate of Deposits

3%

Asset-Backed Commercial Paper3

36% Senior Notes

13% Covered Bonds

3% Subordinated Debt5

$18

$15 $14 $15

$8

$14

$1

$1 $1

$6

$4 $8

$4

$5

$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

$25

$22

$24

$19

$13

$16 $3

0% Bail-inable Notes

2% Asset-Backed

Securities

2% Deposits from Banks2

Canadian Housing Market

Appendix 2:

31

Canadian Household Credit Growth Moderating Public policy changes are moderating growth in household credit

0

2

4

6

8

10

12

14

16

18

20

90 92 94 96 98 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

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


m/m % change, SA


y/y % change

0

2

4

6

8

10

12

14

16

18

20

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


y/y % change


m/m % change,

SA

• Total household credit growing 4.4% in nominal terms in 2018, vs 2008 peak of 12% y/y

• Consumer loans excluding mortgages (cards, HELOCs, unsecured lines, auto loans, etc.) are growing 4.4% in 2018 vs >6% in late-2017

• Mortgage credit growing 4.4% year-to-date vs 2008 peak of 13%

HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH

32

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 $1 million 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 (adjustable rate mortgages, interest only)

Underwriting • Terms usually 3 or 5 years, renewable at maturity • Extensive documentation and strong standards

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

and underwriting requirements

33

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

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 $1.6 billion through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years

• 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

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 $125 million 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 $1 million maximum purchase price

o Minimum credit score of 600

o Property must be owner occupied

• Elimination of primary residence tax exemption for foreign buyers

• Minimum down payment on insured mortgages on homes valued $0.5–$1 million increased from 5% to 10%

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

34

Household Debt: Canada vs. U.S. Canadian households’ balance sheets compare favourably to US

101.3

98.2

102.7

75.1

50

60

70

80

90

100

110

120

130

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

% of GDP

* Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada.

Canada*

US with unincorporatedbusiness debt

Original US

Original Canada

163.6

169.1

133.8

60

80

100

120

140

160

180

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

Adjusted Canadian*

Official Canadian

Official US

* Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada.

household credit liabilities as % of disposable income

16.7

18.0

10

15

20

25

30

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

US

Canada

household debt

as % of assets

Sources: Scotiabank Economics, Federal

Reserve Board, Statistics Canada.

• Canadian debt-to-income ratio is now 5.5% below the U.S. peak in 2008

o In the last 7 years, increases in Canadian debt-to-income ratio have slowed vs. 2002–10

o Calculated on the same terms, Canada’s debt-to-income is currently 164% vs. 134% in the U.S.

• Canadian debt-to-assets ratio remains below U.S.

o U.S. households have incentive to pursue higher asset leverage in light of mortgage interest deductibility

o Debt is a stock concept, to be financed over one’s lifetime. Income is a flow concept measuring one single year’s earnings. Debt should be compared to lifetime or permanent income, or assets

• Ratio of total household debt-to-GDP remains lower in Canada than U.S.

o Calculated on a comparable basis, the ratio of household credit market debt is 98.2% in Canada vs.101.3% in the U.S.

Household Credit Market Debt to Disposable Income

Total Household Liabilities As % of Total Assets

Household Credit Market Debt to GDP

35

Canadian Housing Fundamentals Remain Sound Solid indicators on several dimensions

INTERNATIONAL IMMIGRATION

RESIDENTIAL UNIT SALES TO NEW LISTINGS RATIO

140

190

240

290

90 95 00 05 10 15

NU

MB

ER

OF

IM

MIG

RA

NT

S

TO

CA

NA

DA

, 0

00

S

0.0

0.2

0.4

0.6

0.8

1.0

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

2018

Target = 310K

RA

TIO

Buyers’ Market

Balanced Market

Sources: Scotiabank Economics, Statistics Canada.

Sources: Scotiabank Economics, CREA MLS. Data through September 2018.

Sellers’ Market

TOTAL DEBT-SERVICE RATIO

RESIDENTIAL MORTGAGES ARREARS

% O

F D

ISP

OS

AB

LE

IN

CO

ME

%

OF

MO

RT

GA

GE

S I

N A

RR

EA

RS

3

MO

NT

HS

OR

MO

RE

10

11

12

13

14

15

16

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

1990–2017

average

Sources: Scotiabank Economics, Statistics Canada. Data through 2018Q2.

Sources: Scotiabank Economics, CBA, MBA. Data through 2018Q3 (US) and June 2018

(Canada).

0

1

2

3

4

5

6

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

U.S.

Canada

Key Market Profiles

Appendix 3:

37

Economic Outlook in Key Markets Growth expected to accelerate across the Pacific Alliance

2018 AND 2019 REAL GDP GROWTH FORECAST (%)

Source: Scotiabank Economics. Forecasts as of October 15, 2018.

Real GDP (Annual % Change)

Country 2000–17 Avg. 2018F 2019F 2020F

Mexico 2.2 1.8 2.1 2.4

Peru 5.0 3.7 4.0 4.1

Chile 3.9 3.9 3.2 3.2

Colombia 3.9 2.5 3.5 3.6

PACs Avg. 3.8 3.0 3.2 3.3

2000–17 Avg. 2018F 2019F 2020F

Canada 2.2 2.1 2.2 1.8

U.S. 2.0 2.9 2.4 1.7

38

Focused on the Pacific Alliance Attractive growth opportunity for Scotiabank

• Pacific Alliance

o Portfolio of high quality growth markets for Scotiabank

o 223 million people with median age of 29

o Largest trading partner is the United States (64% of exports)

o Largest sector is manufacturing (64% of exports)

o Trade bloc with free trade agreements to liberalize commerce and improve integration

o Supports trade flows with Asia in order to compete with Brazil and Argentina which participate in Mercosur

o Accounts for 36% of Latin America’s GDP, comparable to Brazil

o Canada has bilateral free-trade agreements with all four Pacific Alliance countries and it has initiated an application for Associate Membership in the Alliance

• Pacific Alliance is an Attractive Long-Term Opportunity

o Region is the 6th largest goods exporter in the world

o Trade bloc with governments supporting growth/significant infrastructure spending

o Solid GDP growth rates relative to peers

o Considerable room to increase banking penetration (avg. domestic credit/GDP of 66%)

o Fast-growing middle-class with increasing financial demands

o Favourable demographics for banking needs

o Relatively stable legal, tax, and regulatory infrastructure in place

o Central bankers have earned credibility and banking system is well-capitalized

39

Mexican Economy Diverse economy with a strong balance sheet

Top 5 Trading Partners

MEXICAN GDP BY INDUSTRY

(Q2 2018)

6.5%

5.8% 16.0%

6.3%

7.0% 3.9%

1.9%

16.0%

17.4%

15.9%

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

3.2% Natural

Resources

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

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

• Despite NAFTA-related uncertainty, investment has rebounded in 2018 and trade has returned to making a positive contribution to economy-wide growth

United

States

59%

Others

21% Germany 3%

Japan 3%

Canada

4%

China

10% -3

-2

-1

0

1

2

3

4

5

16 17 18

OtherNet ExportsInventoriesInvestmentGovernmentConsumptionReal GDP

Contributions to Mexican GDP Growth

y/y % change

Sources: Scotiabank Economics, Haver Analytics.

40

Chilean Economy Advanced economy with wide-ranging trade links

CHILEAN GDP BY INDUSTRY

(JUN 2018) 1.9%

9.6% 15.1%

6.2%

4.6% 19.1%

8.4%

8.9% 10.3%

12.4%


Wholesale & Retail Trade

Manufacturing

Mining and Oil &

Gas Extraction

Construction

Public Administration

Housing &

Personal Services

Transportation & Warehousing

Restaurants & Hotels

Other

3.5% Natural Resources


United

States

16%

Others

40%

Brazil

7% Japan

6%

South Korea

4%

China

27%

-6

-4

-2

0

2

4

6

8

16 17 18

Net ExportsInventoriesInvestmentGovernmentConsumptionReal GDP

Contributions to Chilean GDP Growth

y/y % change


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

• Chile’s diversified trading relationships are supported by 21 free-trade agreements with 59 countries that account for 70% of global GDP

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

41

Peruvian Economy Resilient economic fundamentals

PERUVIAN GDP BY

INDUSTRY (Q2 2018)

9.4%

14% 29.9%

19.7%

5.5%


Transportation, Information & Commerce

Construction

Mining & Energy Other

13.7% Manufacturing

7.7% Natural

Resources


United

States

18%

Others

44%

Brazil

5% Spain

4%

South Korea

3%

China

26%

-6

-4

-2

0

2

4

6

8

16 17 18

Net ExportsInventoriesInvestmentGovernmentConsumptionReal GDP

Contributions to Peruvian GDP Growth

y/y % change


• 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 growth, which should make the recent upturn in growth rates more sustainable

42

Colombian Economy Gaining momentum

COLOMBIAN GDP BY

INDUSTRY (Q2 2018)

6.5%

17.4% 14.1%

6.6%

15.2%

7.5% 2.9%

6.8% 12.2%

8.2%


Wholesale, Retail Trade, Accommodation & Food

Services

Manufacturing

Construction

Mining and Oil & Gas Extraction

Public Administration

Professional,

Scientific,

& Technical

Services

Information & Communication

Natural Resources

Other

2.6% Arts &

Entertainment


Germany

3%

United

States

29% Others

44%

Brazil

4%

Mexico

6%

China

14%

-3

-2

-1

0

1

2

3

4

5

16 17 18

OtherNet ExportsInvestmentGovernmentConsumptionReal GDP

Contributions to Colombian GDP Growth

y/y % change


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

• Colombia continues to build on its 10 free-trade agreements with 42 countries that account for 38% 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

43

Other Regions Strong contribution from leading C&CA franchise and portfolio investments in Asia

• Caribbean & Central America

o Operations in 16 countries contributing ~$0.7B in earnings in 2018

o Well-established, diversified franchise that serves retail, commercial and corporate customers

o Actively managing footprint to ensure scale in larger growth markets and reduce risk profile:

o Announced acquisition in Dominican Republic in August 2018 which doubles customer base and creates 4th largest bank.

o Announce sale of operations in 9 smaller countries in Caribbean in November 2018

o Recognized by Euromoney for the “Best Commercial Banking” capabilities in the Caribbean and Bahamas (2017)

o Recognized by Global Finance Magazine as:

o “Best Bank Award 2017” in the Bahamas, Barbados, Costa Rica, Turks & Caicos and U.S. Virgin Islands;

o “World’s Best Consumer Digital Bank 2017” in 24 countries across Latin America and the Caribbean; and

o “Best in Mobile Banking” in the Caribbean region

• Asia

o Strategic portfolio investments in Asia

o Thailand: 49% interest in Thanachart Bank (2007)

o $3.0 billion carrying value as of October 31, 2018

o $590 million of net income for twelve months ended October 31, 2018

o China: 19.9% interest in Bank of Xi’an (2009)

o $772 million carrying value as of October 31, 2018

o $456 million of net income for twelve months ended October 31, 2018

Energy Exposure

Appendix 4:

45

Energy Exposure1

High quality energy portfolio

• Energy portfolio represents 2.6% of loans outstanding

• 64% is rated Investment Grade (IG). 88% of WCS exposure is IG

• Watch-list reduced to less than 1% of total exposures from 14% since Q4/16

• RWA has decreased 37% since Q4/16

1 As of October 31, 2018 2 May not add due to rounding

1

6.2

0.2

1.1

3

0.7 2.5

Energy

Exposure by

Geography2

$14.8B (%IG)

Mexico (42%)

Canada (74%)

Latin

America

(48%) U.S. (33%)

Asia (93%)

Europe (67%)

C&CA

(30%)

Loans and

Acceptances

Outstanding ($B)

% of Total

Energy

Exposure

% of Total Loans

and Acceptances

Outstanding

% Investment

Grade

Total Exploration and Production 6.6 45% 1.1% 64%

Canadian Exploration and Production 3.4 23% 0.6% 83%

WCS Exposure 1.2 8% 0.2% 88%

Midstream 4.9 33% 0.9% 55%

Services 1.3 9% 0.2% 25%

Downstream 1.9 13% 0.3% 86%

Total Energy Exposure2 14.8 100% 2.6% 64%

46

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:

For further information, please contact: www.scotiabank.com/investorrelations

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

47

Contact Information

Investor Relations

Philip Smith

Senior Vice President 416-863-2866

[email protected]

Lemar Persaud

Director 416-866-6124

[email protected]

Michael Lomas

Managing Director

Treasury Sales and Market Development

416-866-5734

[email protected]

For further information, please contact: www.scotiabank.com/investorrelations

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]

Documents

Investor Presentation - Scotiabank