Investor PresentationDecember 2020
2
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 beincluded in other filings with Canadian securities regulators or the U.S. Securities andExchange Commission, or in other communications. In addition, representatives of theBank may include forward-looking statements orally to analysts, investors, the mediaand others. All such statements are made pursuant to the “safe harbor” provisions ofthe U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadiansecurities legislation. Forward-looking statements may include, but are not limited to,statements made in this document, the Management’s Discussion and Analysis in theBank’s 2020 Annual Report under the headings “Outlook” and in other statementsregarding the Bank’s objectives, strategies to achieve those objectives, the regulatoryenvironment in which the Bank operates, anticipated financial results, and the outlookfor the Bank’s businesses and for the Canadian, U.S. and global economies. Suchstatements are typically identified by words or phrases such as “believe,” “expect,”“foresee,” “forecast,” “anticipate,” “intend,” “estimate,” “plan,” “goal,” “project,” andsimilar 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 andare subject to inherent risks and uncertainties, which give rise to the possibility that ourpredictions, forecasts, projections, expectations or conclusions will not prove to beaccurate, that our assumptions may not be correct and that our financial performanceobjectives, vision and strategic goals will not be achieved.
We caution readers not to place undue reliance on these statements as a number ofrisk factors, many of which are beyond our control and effects of which can be difficultto 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 bymany factors, including but not limited to: general economic and market conditions inthe countries in which we operate; changes in currency and interest rates; increasedfunding costs and market volatility due to market illiquidity and competition forfunding; the failure of third parties to comply with their obligations to the Bank and itsaffiliates; changes in monetary, fiscal, or economic policy and tax legislation andinterpretation; changes in laws and regulations or in supervisory expectations orrequirements, 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 completenessof information the Bank receives on customers and counterparties; the timelydevelopment and introduction of new products and services; our ability to execute ourstrategic plans, including the successful completion of acquisitions and dispositions,including obtaining regulatory approvals; critical accounting estimates and the effect ofchanges 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 isexposed; disruptions in or attacks (including cyber-attacks) on the Bank's informationtechnology, internet, network access, or other voice or data communications systemsor services; increased competition in the geographic and in business areas in which weoperate, including through internet and mobile banking and non-traditionalcompetitors; exposure related to significant litigation and regulatory matters; theoccurrence of natural and unnatural catastrophic events and claims resulting from suchevents; the emergence of widespread health emergencies or pandemics, including themagnitude and duration of the COVID-19 pandemic and its impact on the globaleconomy, financial market conditions and the Bank’s business, results of operations,financial condition and prospects; and the Bank’s anticipation of and success inmanaging the risks implied by the foregoing. A substantial amount of the Bank’sbusiness involves making loans or otherwise committing resources to specificcompanies, industries or countries. Unforeseen events affecting such borrowers,industries or countries could have a material adverse effect on the Bank’s financialresults, businesses, financial condition or liquidity. These and other factors may causethe 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 allpossible risk factors and other factors could also adversely affect the Bank’s results, formore information, please see the “Risk Management” section of the Bank’s 2020 AnnualReport, as may be updated by quarterly reports.
Material economic assumptions underlying the forward-looking statements containedin this document are set out in the 2020 Annual Report under the headings “Outlook”,as updated by quarterly reports. The “Outlook” sections are based on the Bank’s viewsand the actual outcome is uncertain. Readers should consider the above-noted factorswhen reviewing these sections. When relying on forward-looking statements to makedecisions with respect to the Bank and its securities, investors and others shouldcarefully consider the preceding factors, other uncertainties and potential events.
Any forward-looking statements contained in this document represent the views ofmanagement only as of the date hereof and are presented for the purpose of assistingthe Bank's shareholders and analysts in understanding the Bank's financial position,objectives and priorities, and anticipated financial performance as at and for theperiods 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-lookingstatements, whether written or oral, that may be made from time to time by or on itsbehalf.
Additional information relating to the Bank, including the Bank’s Annual InformationForm, can be located on the SEDAR website at www.sedar.com and on the EDGARsection of the SEC’s website at www.sec.gov.
Caution Regarding Forward-Looking Statements
3
TABLE OF CONTENTSScotiabank Overview 4
Business Line Overview: Canadian Banking 21
Business Line Overview: International Banking 26
Business Line Overview: Global Wealth Management 34
Business Line Overview: Global Banking and Markets 37
Risk Overview 40
Treasury and Funding 48
Appendix 1: Core Markets: Economic Profiles 55
Appendix 2: Canadian Economic Fundamentals 63
Appendix 3: Additional Information 67
Contact Information 70
4
Leading Bank in the Americas
1 Core Markets rankings based on latest available market share data on loans for publicly traded banks as of November 30, 20202 Business Line rankings based on Total Net Income for publicly traded banks in Canada as of July 31, 2020
#3 in P&C Banking
#2 in Capital Markets
#3 in Wealth
#3 in Canada
#3 in Peru
#4 in Chile
#5 in Mexico
#6 in Colombia
Core Markets1 Business Lines2
5
64%11%
16%3% 6%
Leading Bank in the Americas1Core markets: Canada, US, Mexico, Peru, Chile and Colombia
Full-Service,Universal Bank
CanadaMexicoPeruChile Colombia CaribbeanUruguay
Wholesale Operations
USAUKSingaporeAustraliaIrelandHong Kong SARChina BrazilMalaysia IndiaJapan
7th largest bank by assets1 in the Americas
1 Ranking by asset as at November 27, 2020, Bloomberg; 2 Adjusted for acquisition and divestiture-related amounts, impact of additional pessimistic scenario in ACLs, Derivative Valuation Adjustment, and impairment charge on software asset. Operating Leverage excludes divested operations; 3 Ranking based on market share in loans as of September 2020 in Mexico, Peru and Chile, as of August 2020 in Colombia, as of July 2020 in Canada for publically traded banks; 4 Adjusted net income attributable to equity holders of the Bank for the 12 months ended October 31, 2020
Earnings by Market2,4
Scotiabank2 FY2020ChangeFY/FY
Revenue $31,139MM -Net Income $6,961MM (26%)Return on Equity 10.4% (350 bps)Operating Leverage +1.0% n.a.Productivity Ratio 53.0% +30 bpsTotal Assets $1.1T +5%CET1 Ratio 11.8% +70 bps
Ranking by Market Share3
Canada #3
USMCA USA Top 15 FBO
Mexico #5Peru #3Chile #4Colombia #6
Canada
U.S.A
PAC
C&CA
PAC
Other
6
Canadian Banking
P&C
37%
International Banking P&C
16%
Global Banking and
Markets
29%
Global
Wealth Management
18%
Canada64%
U.S.11%
Mexico5%
Peru6%
Chile5%
C&CA3%
Other6%
15.5%5.8%
14.0% 15.4%10.4%
21.6%
11.6%15.0% 14.9% 13.1%
CanadianBanking
InternationalBanking
Global WealthManagement
Global Bankingand Markets
All Bank
Well-Diversified Business with Strong Returns
Earnings by Business Line1,2 Earnings by Market1,2,4
1 Net income attributable to equity holders for the 12 months ended October 31, 2020; 2 Adjusted for acquisition and divestiture-related amounts, impact of additional pessimistic scenario in ACLs, Derivative Valuation Adjustment, and impairment charge on software asset; 3 Excludes Other segment; 4 Excludes Colombia (loss)
Caribbean and Central America
FY2020EARNINGS MIX
$7.1B3
FY2020EARNINGS MIX
$7.1B3Per
Personal & Commercial Banking
53%
WholesaleBanking
29%
WealthManagement
18%
Europe, Asia, Brazil, Australia
3-year average ROE
7
Personal & Commercial Banking
Business Lines
Business Line
Wealth Management Capital MarketsActivity
Global Wealth Management
Global Banking and Markets
Canadian Banking
International Banking
NIAEH1 ($MM)
% All-Bank1
ProductivityRatio1
ROE1
Products • Mortgages• Auto Loans• Commercial
Loans• Personal Loans• Credit Cards
• Mortgages• Auto Loans• Commercial
Loans• Personal Loans• Credit Cards
• Corporate Banking• Advisory• Equities• Fixed Income• Foreign Exchange• Commodities
• Asset Management• Private Banking• Private Investment
Counsel• Brokerage• Trust
Employees3
$2,604 $1,148 $1,297 $2,034
37% 16% 18% 29%
35-40% 25-30% ~15% 15-20%% Target
46.5% 53.1% 61.5% 45.1%
15.5% 5.8% 14.0% 15.4%
18,085 47,296 7,121 2,403
1 Adjusted figures for the 12 months ended October 31, 20202 Average balance for fiscal year 20203 As at October 31, 2020
Total Assets2 ($B) $358.8 $206.4 $26.0 $412.1
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
• Unique Americas footprint provides diversified exposure to higher growth, high ROE banking markets
• 229 million people in the Pacific Alliance countries comprise the 6th
largest economy in the world
• Competitive scale and increasing market share in core markets• Competitive advantages in technology, risk management, and funding
versus competitors• Increased scale in Wealth Management and P&C businesses via M&A
• Six core markets: Canada, US, Mexico, Chile, Peru and Colombia• ~90% of earnings from the Americas• Only universal bank with full presence in all Pacific Alliance countries
• Strong Canadian risk management culture with strong capabilities in AML and cybersecurity
• Focus on secured and investment-grade lending
• $7.8 billion in allowances as of Q4/20
Strong risk culture: solid credit quality, well provisioned
• Increased Digital Adoption to 48%• Surpassed target for In-Branch Financial Transactions of <10%
• Named “Best Bank in North America for Innovation in Digital Banking
• #1 ranking for “Online Banking Satisfaction” - J.D. Power
Acceleration in Digital Banking in 2020
9
12.4%11.2%
9.6%7.4%
2.2%
15.3%14.3%
10.0%11.0%
5.6%
0%
5%
10%
15%
20%
Focused on Higher Return Markets
More Attractive Banking ROEs in Canada and Latam(Latest Reporting Period)
Return on equity in latest reporting period as of November 30, 2020Canada and US figures are average for five largest and 10 largest market share banks in each country, respectively Sources: Bloomberg LLP, Company Financial Reports
Canada Latam USAsia Europe
>75% of All-Bank earnings
3-year average ROE
10
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&CAPAC
Scotia P&C Markets
Scotia Americas Wholesale Markets
Other Markets(Included for comparison purposes)
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
11
Real GDP (Annual % Change)
Country 2010–19Average
Forecast1, 2
2020 2021Q1 Q2 Q3E Q4F FY Q1F Q2F Q3F Q4F FY
Canada 2.2 -0.3 -12.5 -5.2 -4.9 -5.7 -2.4 11.5 3.7 4.1 4.2
U.S. 2.3 0.3 -9.0 -2.9 -2.7 -3.6 -1.2 10.1 3.9 3.9 4.2
Mexico 2.7 -1.3 -18.7 -8.6 -7.6 -9.1 -5.0 15.1 2.1 3.0 3.8
Peru 4.8 -3.5 -29.8 -9.4 -3.3 -11.5 -0.8 30.1 4.4 6.3 10.0
Chile 3.6 0.2 -14.5 -9.1 2.6 -5.2 1.5 15.3 7.5 -2.1 5.6
Colombia 3.8 1.4 -15.7 -9.3 -6.2 -7.5 -3.2 14.1 5.8 3.4 5.0
PAC Average 3.7 -0.5 -16.7 -7.4 -3.7 -7.1 -1.9 16.0 4.6 3.1 5.5
Economic Outlook in Core Markets
Real GDP Growth Forecast (2019–2021)
Source: Scotiabank Economics. 1 Forecasts for Canada and U.S. as of the December 4, 2020 Scotiabank Global Forecast Tables.2 Forecasts for PAC countries as of the November 28, 2020 Latam Weekly publication.
12
63.7 59.6
10.9
10.6 10.0
4.8
Q2/20 Q3/20 Q4/20 Q1/21ERetail Commercial & Small Business
Customer Assistance Programs(As of October 31, 2020)
Retail Product Types1Number of Amount
% Current following Deferral Expiry1,2customer accounts1 outstanding1
#(’000s) % ($B) %CanadaMortgages 16 45.7% $4.26 87.1% 98.0%Credit Cards 3 8.6% $0.02 0.4% 85.3%Personal Loans3 16 45.7% $0.61 12.5% 92.8%Total/Average 35 100% $4.89 100.0% 97.2%Change from September 30, 2020 -$11.5Change from July 31, 2020 -$36.6
InternationalMortgages 36 7.3% $3.70 61.6% 90.5%Credit Cards 299 61.4% $0.96 16.0% 81.6%Personal Loans3 152 31.2% $1.34 22.4% 87.0%Total/Average 486 100.0% $6.00 100.0% 87.8%Change from September 30, 2020 -$2.5Change from July 31, 2020 -$12.1
Deferral Balance ($B) 5
1 As at October 31st 20202 Canadian payments % includes accounts that have not yet completed first billing cycle since expiring3 93% of active deferred Personal Loans in Canada are Auto Loans, 16% of active deferred Personal Loans in International are Auto Loans4 Figures relate to active deferral exposures and exclude amounts related to covenant relief requests5 Prior period amounts have been restated to conform to current period presentation6 Of the $3.0 billion of deferral balance expected as at Q1/21, $1.1 billion relates to retail loans and $1.9 billion relates to commercial loans
Commercial & Small Business ($B)
Significant Decrease in Deferral ExposureActive
Deferral Customers
#(‘000s)
Active Total Exposures4
($B)
Canada 0.7 0.2International 0.7 4.6Total 1.4 4.8
74.3 69.6
15.73.06
-96%
13
3,504 2,9531,215 1,534
2,6041,148 1,297 2,034
Canadian Banking InternationalBanking
Global WealthManagement
Global Bankingand Markets
2019 2020
Fiscal 2020 Financial Performance $MM, except EPS 2020 Y/Y
ReportedNet Income $6,853 (22%)
Pre-Tax, Pre Provision Profit $14,480 +1%Diluted EPS $5.30 (21%)
Revenue $31,336 +1%Expenses $16,856 +1%
Productivity Ratio 53.8% (10 bps)Core Banking Margin 2.27% (17 bps)
PCL Ratio1 98 bps +47 bpsPCL Ratio on Impaired Loans1 56 bps +7 bps
Adjusted2
Net Income $6,961 (26%)Pre-Tax, Pre Provision Profit $14,625 (1%)
Diluted EPS $5.36 (25%)Revenue $31,139 -
Expenses $16,514 +1%Productivity Ratio 53.0% +30 bps
PCL Ratio1 95 bps +46 bps
• Adjusted EPS2 down 25%, largely impacted by PCLs related to the COVID-19 pandemic
• Adjusted pre-tax, pre-provision profit2 down 1%, or up 5% excluding impact of divestitures
• Adjusted revenue2 was flat, or up 4% excluding impact of divestitures
• Core banking margin decreased 17 bps
o Lower margins due to changes in business mix and the declining interest rate environment, as well as higher liquidity levels
• Adjusted expenses2 increased 1%, or 3% excluding impact of divestitures
• Adjusted operating leverage2 of negative 0.6% , or positive 1.0% excluding impact of divestitures
HIGHLIGHTS
ADJUSTED NET INCOME2,3 BY BUSINESS SEGMENT ($MM)
1 Includes provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures2 Refer to Non-GAAP Measures on slide 40 for adjusted results3 Attributable to equity holders of the Bank4 Y/Y growth rate is on a constant dollars basis
-26%-60%4
+33%+7%
-165 -3,053
-92
9,409
143
719
6,961
2019 NII Non interestincome
PCLs Non-interestexpenses
Taxes 2020
ADJUSTED NET INCOME2 YEAR-OVER-YEAR ($MM)
14
902 725314 405782
283 333 460
Canadian Banking InternationalBanking
Global WealthManagement
Global Bankingand Markets
Q4/19 Q4/20
Q4 2020 Financial Performance
$MM, except EPS Q4/20 Y/Y Q/QReported
Net Income $1,899 (18%) +46%Pre-Tax, Pre Provision Profit $3,448 (6%) (7%)
Diluted EPS $1.42 (18%) +37%Revenue $7,505 (6%) (3%)
Expenses $4,057 (6%) +1%Productivity Ratio 54.1% - +210 bps
Core Banking Margin 2.22% (18 bps) +12 bpsPCL Ratio1 0.73% +23 bps (63 bps)
PCL Ratio on Impaired Loans1 0.54% +5 bps (4 bps)Adjusted2
Net Income $1,938 (19%) +48%Pre-Tax, Pre Provision Profit $3,502 (7%) (6%)
Diluted EPS $1.45 (20%) +39%Revenue $7,505 (6%) (2%)
Expenses $4,003 (5%) +1%Productivity Ratio 53.3% +60 bps +190 bps
• Adjusted EPS2 down 20%; up 39% Q/Q
• Adjusted pre-tax, pre-provision profit2 down 7%, or down 1% excluding impact of divestitures
• Adjusted revenue2 down 6%, or down 2% excluding impact of divestitures
o Net interest income up 1%, excluding divestiture
o Non-interest income down 5%, excluding divestitures
• Core banking margin down 18 bps; up 12 bps Q/Q
o Lower margins due to changes in business mix and the declining interest rate environment, as well as higher liquidity levels
o Core Banking Margin improved sequentially driven by lower levels of liquidity
• Adjusted expenses2 down 5%, or down 3% excluding impact of divestitures
YEAR-OVER-YEAR HIGHLIGHTS
ADJUSTED NET INCOME2,3 BY BUSINESS SEGMENT ($MM)
1 Includes provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures2 Refer to Non-GAAP Measures on slide 40 for adjusted results3 Attributable to equity holders of the Bank4 Y/Y growth rate is on a constant dollars basis
-13%-60%4
+14%+6%
-78 -379
-378
2,400 194 179
1,938
Q4/19 NII Non interestincome
PCLs Non-interestexpenses
Taxes Q4/20
ADJUSTED NET INCOME2 YEAR-OVER-YEAR ($MM)
15
$1.96
$3.60
09 10 11 12 13 14 15 16 17 18 19 20
1 Reflects adoption of IFRS in Fiscal 2011. 2 Excludes notable items for years prior to 2016. For 2016 onwards, results adjusted for acquisition and divestiture-related amounts, impact of additional pessimistic scenario in ACLs, Derivative Valuation Adjustment, and impairment charge on software asset. 3 As of October 30, 2020.
Earnings per share (C$)1,2
$3.31
$7.14
$5.36
09 10 11 12 13 14 15 16 17 18 19 20
Dividend per share (C$)
+6%
CAGR
Total shareholder return3
2.7%
4.6%
9.0%
6.3%
8.4%9.3%
5 Year 10 Year 20 Year
Scotiabank Big 5 Peers (ex. Scotiabank)
Earnings and Dividend GrowthStrong track record of stable and predictable earnings and growing dividends
2009-2019 CAGR: +8.0%2010-2020 CAGR: +3.2%
16
+3 bps
11.3%
+44 bps -28 bps +34 bps 11.8%-1 bp-4 bps
Q3 2020Reported
Earnings Dividends RWA Impact(ex. FX)
Foreign exchangetranslation
ECL TransitionalCapital Relief
Other (net) Q4 2020Reported
CET1 Ratio
Strong Capital Levels
11.1% 11.4% 10.9% 11.3% 11.8%
1.1% 1.1% 1.0% 1.5% 1.5%2.0% 2.1% 2.1% 2.1% 2.2%
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
CET1 Tier 1 Tier 2
14.0% 14.9%14.2% 14.6% 15.5%
Strong Capital Position
1 Net Income Available to Equity Holders
(1)
Internal capital generation
17
Surpassed medium-term goal of <10% In-Branch Financial Transactions at All-Bank level. Delivered >50% in Digital Sales in the Pacific Alliance region
New Canadian mobile app with simplified layouts, improved discoverability, and enhanced analytics to drive user experience
Improving Customer Pulse scores in our digital channels. Peru reached record levels in digital with 70%+ in October
Launched new digital account opening solutions across all markets integrating Digital and Physical experiences, greatly reducing processing time
Tangerine, Canada’s leading digital bank, continues to see momentum as it evolves from being a Savings Bank to an Everyday Bank
Digital Banking Strength
Digital Retail Sales1 Digital Adoption2
Goal>50%
1115
2228
36
202020192016 2017 2018
+2,500 bps
26 2933
39
48
2016 2017 2018 20202019
+2,200 bps
Goal>70%
In-BranchFinancial Transactions3
2623
2016
8
2016 20182017 2019 2020
-1,800 bps
Goal<10%
1 Canada: F2017 22%, F2018 26%, F2019 26%, F2020 16% PACs: F2017 13%, F2018 19%, F2019 29%, F2020 51%2 Canada: F2017 36%, F2018 38%, F2019 42%, F2020 50% PACs: F2017 20%, F2018 26%, F2019 35%, F2020 46%3 Canada: F2017 17%, F2018 15%, F2019 12%, F2020 7% PACs: F2017 29%, F2018 24%, F2019 19%, F2020 9%
18
$1,200$2,430
$3,710
2010 2015 2020
Technology Strategy
● Build a strong and scalable platform foundation
● Rebalance core technology spending towards modernization
● Cloud-first strategy for automation and speed
● Common systems
● Software re-use, best practice-sharing
● Consistent software design
● Customer-focused micro-services
● Analytics on real-time data
● Strong cyber-security foundation
Investments in Technology
$● Maintain consistent
investment in technology
7.8%
10.1%11.9%
Tech expenseas % of revenue
Tech expense(in $millions)
19
Fintech
Partnerships Proof of Concepts1Focus Areas
• Credit adjudication
• Accessibility
• Natural language processing
• Personal financial management
• Customer experience and self-service
• Machine-learning modelling
• IT Modernization
• Fraud
• Anti-Money Laundering
1 Selected proof of concepts with fintech partners
20
• Over $28 billion mobilized to reduce the impacts of climate change out of $100 billion target by 20251
• Established a dedicated ESG Equity Research Team and launched a Sustainable Finance Group within Global Banking and Markets
• Published inaugural Green Bond Report outlining the impact and use of proceeds from Scotiabank’s US $500 million 3.5 year Green Bond issued in 2019
• Implemented a Climate Change Risk Rating tool for all business banking loans as a mandatory part of credit due diligence
• Established multi-year partnership with the Institute for Sustainable Finance at Queen’s University as part of Climate Change Centre of Excellence
• Invested almost $85 million in communities in which we operate, through donations, community sponsorships, employee volunteering, and other types of community investment
• Contributed over $16 million to support people and communities most at risk during the pandemic, including direct contributions for COVID-19 relief, as well as support of hospitals and healthcare professionals
• Advanced commitment to UN LGBTI Standards of Conduct for Business as a founding member of the Partnership for Global LGBTI Equality (PGLE)
• Opened our third Gord Downie & ChanieWenjack Fund (DWF) Legacy Space, demonstrating our commitment to promoting education and discussion around indigenous reconciliation
• Ranked in the top 1% of global financial institutions for Corporate Governance by the Dow Jones Sustainability Index
• Strengthened approach to responsible procurement and supplier diversity by joining Canadian Aboriginal and Minority Supplier Council
• 46% of Board Directors are women2. We first established a Board Diversity Policy in 2013
• In collaboration with Smith School of Business at Queen’s University, and the IEEE, Scotiabank launched the first Trusted Data & AI for Canadian Business certification in Canada, designed for employees to develop foundational knowledge of ethical principles in business decision making, AI applications and processes
Environment, Social & Governance (ESG)Highlights from 2020
Environment Social Governance
1 Since November 1, 2018; 2 As of October 31, 2020
21
Business Line Overview
Canadian Banking
22
Canadian BankingTop 3 bank in personal & commercial banking in Canada
1 For the three months ended October 31, 2020; 2 Reflects the adoption new leases accounting standards, IFRS16; 3 Adjusted Net income attributed to equity shareholders; 4 Net Interest Margin is on a reported basis; 5 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures; 6 3-5 year target from 2020 Investor Day
$MM FY/20 FY/FYReported
Net Income3 $2,536 (27%)Pre-Tax, Pre Provision Profit $5,488 (4%)
Revenue $10,299 (2%)Expenses $4,811 +1%
PCLs $2,073 +113%Productivity Ratio 46.7% +110 bps
Net Interest Margin4 2.30% (11 bps)PCL Ratio5 0.59% +30 bps
PCL Ratio Impaired Loans5 0.32% +3 bpsAdjusted3
Net Income3 $2,604 (26%)Pre-Tax, Pre Provision Profit $5,510 (4%)
Expenses $4,789 +1%PCLs $2,002 +106%
Productivity Ratio 46.5% +110 bps
902 908 481 433 782
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
Adjusted Net Income3 ($MM) and NIM4 (%)
Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 11 million Retail, Small Business and Commercial Banking customers. Through Tangerine, Canadian Banking also provides digital banking solutions to over 2 million customers.
67%
33%
63%
12%9%2%
14%
Revenue Mix1, 2
$2.6B
Average Loan Mix1
$360B
Business Banking
Retail
AutoBusiness and
Government Loans
Residential Mortgages
Credit Cards
Medium-Term Financial ObjectivesTarget6
NIAT Growth3 5%+
Productivity Ratio <44%
Operating Leverage Positive
Business Mix Financial Results
Other Personal Loans
2.41% 2.36% 2.33% 2.26% 2.26%
23
Canadian Banking: Loan PortfolioHigh quality retail loan portfolio: ~94% secured
1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data2 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 institutions3 Spot Balance as of October 31, 2020; Percentages may not add to 100% due to rounding.
DOMESTIC RETAIL LOAN BOOK3
82%
2%Credit Cards
4%Unsecured
12%Automotive
Real Estate Secured Lending
$325B
• High Quality Residential Mortgage Portfolioo 38% insured; remaining 62% uninsured has an LTV of 52%1
o Mortgage business model is “originate to hold”
o New originations2 in 2020 had average LTV of 64.6%
o Majority is freehold properties; condominiums represent approximately 15% of the portfolio
• Market Leader in Auto Loanso $39.1 billion retail auto loan portfolio with 8 OEM relationships (4 exclusive)
o Prime Auto and Leases (~92%)
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)
• Prudent Growth in Credit Cardso $6.4 billion credit card portfolio represents ~2% of domestic retail loan book
and ~1% of the Bank’s total loan book
o Organic growth strategy focused on payments and deepening relationships with existing customers
24
Canadian Banking: Residential MortgagesHigh quality, diversified portfolio; Credit fundamentals remain strong
1 FICO ® distribution for Canadian uninsured portfolio based on score ranges at origination. FICO is a registered trademark of Fair Isaac Corporation2 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data3 Includes Wealth Management
Q4/19 Q3/20 Q4/20
CanadaTotal Originations ($B) 13.3 13.0 16.6
Uninsured LTV 65% 64% 64%
Greater Toronto AreaTotal Originations ($B) 4.2 3.7 5.0
Uninsured LTV 64% 62% 63%
Greater Vancouver AreaTotal Originations ($B) 1.6 1.5 1.9
Uninsured LTV 64% 63% 63%
3%9% 10%
15%
63%
< 635 636 - 706 707 - 747 748 - 788 > 788
Average FICO® ScoreCanada 791
GTA 794GVA 792
FICO® Distribution – Canadian Uninsured Portfolio1, 2
$112.5
$34.6 $27.6 $14.8 $10.9 $9.1
$16.6
$12.2$3.8
$2.1 $0.2 $0.7
Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba &Saskatchewan
Canadian Mortgage Portfolio3: $245B (Spot balances as at Q4/20, $B)
% ofportfolio 52.7% 19.1% 12.8% 6.9% 4.5% 4.0%
Freehold - $209B Condos - $36B38%
62%Uninsured
Total Portfolio3:
$245 billion
Insured
$31.4$16.9 $11.1 $9.8
$46.8
$129.1(85%) (15%)
• Four Distinct Distribution Channels: All adjudicated under the same standards o 1. Broker (~58%); 2. Branch (~20%); 3. Mobile Salesforce (~21%) and 4. eHOME (~1%)
25
Automotive FinanceCanada’s leader in automotive finance
• Provide personal and commercial dealer financing solutions, in partnership with seven leading global automotive manufacturers in Canada
• Portfolio increased 1.9% year-over-year1
o Personal up 2.7%, Commercial down 3.7%
1 For the twelve months ended October 31, 2020; 2 CBA data as of July 2020, includes RBC, CIBC, Canadian Western Bank, National Bank, TD, Scotiabank, Laurentian Bank; 3 DealerTrack Portal data, includes all Near-Prime Retail providers on DealerTrack Portal, data for October 2020 originations; 4 Includes BMO, CIBC, RBC, Scotiabank, TD, HSBC, Canadian Western Bank, Laurentian Bank, data as of June 2020
36%
64%
Market Share
23%
77%
27%
73%
Prime Retail Market Share2 Near-Prime Retail Market Share3 Commercial Floorplan Market Share4
Exclusive Relationships
Semi-Exclusive Relationships*
* 1 to 2 other financial institutions comprise Semi-Exclusive relationships
MAZDA VOLVO POLESTAR JAGUAR/LAND ROVER
HYUNDAI CHRYSLER TESLAGM79%
7%
14%
AVERAGE ASSET MIX
$44.4B1
100% Secured
Commercial
Near-Prime Retail
Prime Retail
Asset Growth
$37.1B
$39.7B
$42.3B$43.5B $44.4B
2016 2017 2018 2019 2020
26
Business Line Overview
International Banking
27
78%
21%
1%Revenue
Mix1,
$2.5B
4.51% 4.51% 4.28% 3.99% 3.97%
567 556197
52238
158 59
1
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
725 615
197 23853
International Banking
$MM2 FY/20 FY/FYReported
Net Income3 $980 (64%)Pre-Tax, Pre Provision Profit $4,867 (17%)
Revenue $10,810 (10%)Expenses $5,943 (4%)
PCLs $3,613 87%Productivity Ratio 55.0% 310 bps
Net Interest Margin4 4.18% (36 bps)PCL Ratio5 2.45% 105 bps
PCL Ratio Impaired Loans5 1.49% 19 bpsAdjusted5
Net Income3 $1,148 (61%)Net Income – Ex Divested Ops.3 $1,088 (51%)
Pre-Tax, Pre Provision Profit $5,068 (16%)Expenses $5,742 (5%)
Productivity Ratio 53.1% 290 bps
Adjusted Net Income3,6 ($MM) and NIM4 (%)
Ex. Divested Ops Divested Ops
International Banking has a strong and diverse franchise with more than 10 million Retail, Corporate, and Commercial customers. International Banking continues to offer significant potential for the Bank, with a geographical footprint encompassing the Pacific Alliance countries of Mexico, Colombia, Peru and Chile as well as Central America and the Caribbean.
Business Mix
Asia
C&CA
Latin America
55%
25%14%
6% Loan Mix1
$146B
Credit Cards
Personal Loans
Residential Mortgages
Business Loans
1 For the 3 months ended October 31, 2020; 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 Attributable to equity holders of the Bank; 4 Net Interest Margin is on a reported basis; 5 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures; 6 Excluding divestiture impact; 7 3-5 year target from 2020 Investor Day
Medium-Term Financial Objectives
Financial Results
Target7
NIAT Growth6 9%+
Productivity Ratio <50%
Operating Leverage Positive
28
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 economieswith 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
● 229 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
29
7.5% 6.9%
-0.9%
1.9%
58.6%
55.0%55.4%
54.4%
Customers ~3.8MM
Employees ~10,700
Branches1 531
Average Loans $31B
Average Deposits $28B
Total NIAT2,5 $345MM
ROE3 10.2%
Productivity3 54.4%
23.2%
14.6% 13.4% 11.7%
7.7% 7.2%4.2% 3.5%
2.0%
BBVA Banorte Santander Banamex Scotiabank
Productivity Ratio
2018 20192017 2020
Market Position by Loans4
738924 978 1,087
Constant currencyAll figures in CAD$ including Wealth Management1 Includes bank and wealth branches; does not include 177 Credito Familiar branches2,3 WY’2020 Adjusted as Reported4 Source: CNBV as of September 20205 Adjusted after NCI
2017 2018 2019
PTPP
+14%CAGR
2020
Business Overview
60%
28%
6%5%2%
Loans$30.9B
Corporate/ Commercial
Scotiabank in Mexico
Operating Leverage
2018 20192017 2020
HSBC Inbursa Bajio Regio
Residential Mortg.
PersonalLoans
AutoCredit Cards
17%83%Secured Unsecured
RetailLoans
30
57%
12%
19%9%
0%2%
Loans$22.4B
1,157 1,2791,508 1,498
Constant currencyAll figures in CAD$ including Wealth Management1 Including subsidiaries2,3 WY’2020 Adjusted as Reported4 Market share as of September 2020. Scotiabank includes SBP, CSF and Caja CAT5 Adjusted after NCI
+9%CAGR
2017 2018 2019 2020
Scotiabank in Peru
Market Position by Loans4
33.1%
20.5%16.5%
12.3%
BCP BBVA InterbankScotia
Customers1 ~4.5MM
Employees1 ~11,100
Branches1 311
Average Loans $22B
Average Deposits $19B
Total NIAT2,5 $391MM
ROE3 11.4%
Productivity3 35.1%
1.8%
5.0%
6.8%
0.3%
39.3%
37.5%
35.2% 35.1%
Productivity Ratio
2018 20192017 2020
Operating Leverage
2018 20192017 2020
Business Overview
PTPP
Residential Mortg.
PersonalLoansOther
Corporate/ Commercial
AutoCredit Cards
64%36%Secured Unsecured
RetailLoans
31
535789
1,202 1,185
Constant currencyAll figures in CAD$ including Wealth Management1 Includes affiliates & consumer microfinance2,3 WY’2020 Adjusted as Reported4 Market share as of September 2020, Source: CMF5 Adjusted before NCI
+30%CAGR
Market Position by Loans4
18.6%16.7%
14.1% 14.0% 13.8%
9.7%
Santander Chile Estado BCI ItaúScotiabank
2017 2018 2019 2020
Scotiabank in Chile
Customers1 ~2.8MM
Employees ~8,000
Branches1 144
Average Loans $46B
Average Deposits $24B
Total NIAT2,5 $459MM
ROE3 6.1%
Productivity3 43.3%
8.5%
13.3%
4.3%
0.0%
49.5%
44.7%
43.4% 43.3%
Productivity Ratio
2018 20192017 2020
Operating Leverage
2018 20192017 2020
Business Overview
PTPP
47%
36%
12%5%
0%
Loans$45.9B
Corporate/ Commercial
Residential Mortg.
PersonalLoans
AutoCredit Cards
79% 21%Secured Unsecured
RetailLoans
32
460 519664
507
Constant currencyAll figures in CAD$ including Wealth Management1 As of October 20202,3 WY’2020 Adjusted as Reported4 Market share as of August 20205 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 Adjusted after NCI
+3%CAGR
Market Position by Loans4
25.9%
17.0%12.2%
10.3%6.3% 5.5%
4.3%
Bancolombia ScotiabankColpatria
Davivienda Bogotá5 BBVA Occidente5 Popular5
2017 2018 2019 2020
Scotiabank in Colombia
Customers1 ~2.8MM
Employees ~6,800
Branches1 152
Average Loans $11B
Average Deposits $10B
Total NIAT2,6 -$35MM
ROE3 -2.8%
Productivity3 59.8%
-6.4%
-1.8%-2.4%
-7.6%
52.6% 53.4%54.5%
59.8%
Productivity Ratio
2018 20192017 2020
Operating Leverage
2018 20192017 2020
Business Overview
PTPP
44%
18%
20%17%
1%
Loans$11.5B
Corporate/ Commercial
Residential Mortg.
PersonalLoans
Auto
Credit Cards
66%34%Secured Unsecured
RetailLoans
33
Thailand: 5% interest in TMB Bank
• Reduced investment in Thailand in Q1/20
China: ~18% interest in Bank of Xi’an
• CAD $926MM carrying value as of September 30, 2020
• CAD $511MM of net income for twelve months ended October 31, 2020
Other RegionsLeading Caribbean & Central American franchise
• Leading bank 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, US Virgin Islands, British Virgin Islands, Belize and 8 of the Leeward Islands
Dominican Republic: #4 bank
• Acquired Banco Dominicano del Progreso in 2019
AsiaCaribbean & Central America
34
Business Line Overview
Global Wealth Management
35
88%
12%
87%
13%
13.6% 13.7% 13.8% 14.3% 14.3%
Global Wealth Management
$MM, except AUM/AUA FY/20 FY/FY
Reported
Net Income3 $1,262 +7%
Pre-Tax, Pre Provision Profit $1,706 +7%
Revenue $4,584 +2%
Expenses $2,878 (1%)
PCLs $7 N/A
Productivity Ratio 62.8% (170bps)
Adjusted2
Net Income3 $1,297 +7%
Pre-Tax, Pre Provision Profit $1,766 +6%
Expenses $2,818 (1%)
Productivity Ratio 61.5% (160bps)
1 Figures as of October 31, 2020 or for the 3 months ended October 31, 2020; 2 Adjusted for Acquisition-related costs and impact of additional pessimistic scenario; 3 Attributable to equity holders of the Bank;
4 3-5 year target from 2020 Investor Day
312 318 314 332 3332 -314 318 314
332 333
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
Ex. Divested Ops Divested Ops
Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank’s footprint.
Medium-Term Financial Objectives
Business Overview1 Financial Results
Target4
Earnings Growth 8%+
Productivity Ratio <65%
Operating Leverage Positive
Adjusted Net income2,3 ($MM) and ROE2 (%)
$1.2BRevenue
79%
21%AUM AUA$292B $502B
International Canada
36
Award-Winning Investment Management
AUMInvestment Performance Highlights
76%
75%
of assets in the top two quartiles over five-year period –
of core funds in the top two quartiles over five-year period –
193292
2016 2020
+11%CAGR
AUA
404502
2016 2020
+6%CAGR
Award-Winning Advisory
• #2 in 2020 Best Online Brokers (MoneySense Magazine) • #2 bank-owned brokerage firm in the 2020 Investment
Executive Brokerage Report Card • Largest PIC business in Canada • #1 in Y/Y estate, trust and foundation revenue growth
(Investor Economics)• 2021 World’s Best Private Banks awards in Peru and
Bahamas (Global Finance)
• #2 in Retail Mutual Fund Net Sales• Won 20 Lipper Fund Awards – more than any other firm in
2020 (1832 Asset Management)• Named Fund Provider of the Year by Wealth Professional
(Dynamic Funds)• Top 3 Greenwich Leader in Canadian Institutional
Investment Management Service (Jarislowsky Fraser)• Straight A’s in the 2020 Principles for Responsible
Investment report (Jarislowsky Fraser)
Global Wealth ManagementStrong investment performance, increasing scale
37
Business Line Overview
Global Bankingand Markets
38
405 451 523600
460
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
13.8% 14.0% 15.4% 17.5% 14.6%
Global Banking and Markets
1 TEB Revenue for the 3 months ended October 31, 2020; 2 Attributable to equity holders of the Bank; 3 Adjusted for impact of additional pessimistic scenario; 4 Provision for credit losses on certain assets –loans, acceptances and off-balance sheet exposures; 53-5 year target from 2020 Investor Day
Adjusted Net Income2, 3 ($MM) and ROE3 (%)
53%
36%
6%5%
GeographicRevenue1
$1.2B
Europe
Canada
US
Asia
50%
34%
16%Revenue By
Business Line1
$1.2B
Business Banking
FICC
Global Equities
Business Overview
Global Banking and Markets (GBM) provides corporate clients with lending and transaction services, investment banking advice and access to capital markets. GBM is a full service wholesale bank in the Americas, with operations in 21 countries, serving clients across Canada, the United States, Latin America, Europe and Asia-Pacific.
Target5
NIAT Growth ~5%
Productivity Ratio ~50%
Operating Leverage Positive
Medium-Term Financial Objectives
Financial Results
$MM FY/20 FY/FYReported
Net Income2 $1,955 +27%Pre-Tax, Pre Provision Profit $2,909 +44%
Revenue $5,382 +20%Expenses $2,473 -
PCLs $390 N/AProductivity Ratio 45.9% (910 bps)
PCL Ratio4 0.35% +37 bpsPCL Ratio Impaired Loans4 0.12% +12 bps
Adjusted3
Net Income2 $2,034 +33%Pre-Tax, Pre Provision Profit $3,011 +49%
Revenue $5,484 +22%PCLs $384 N/A
Productivity Ratio 45.1% (990 bps)
39
GBM in US and Latam
US1 Latam1
$2,141 million Revenue $1,554 million
$47 billion Average Loans $47 billion
$77 billion Average Deposits $21 billion
$896 million Total NIAT $635 million
42.4% Productivity 30.2%
5 Offices 9
1 Figures for fiscal 2020
• Wholesale bank in the US: Corporate & Investment Banking, Capital Markets, Cash Management and Trade Finance
• Top 15 foreign bank organization (FBO) in the US
• Client list focused on S&P 500, investment grade corporates
• Current sectors of strength include: Power & Utilities and Energy. Focus areas for growth include Consumer /Industrial /Retail (CIR), Technology, and Healthcare
• Wholesale bank in Latam: Advisory, financing and risk management solutions, and access to capital markets
• Only full-service corporate/commercial bank with local presence in all Pacific Alliance countries
• Enhanced connectivity to rest of Americas, Europe and Asia
• Top tier lending relationships with local and multi-national corporate clients
• Focused on Pacific Alliance expansion and modernization of technology platforms
Delivering the full bank to meet our Americas clients’ needs
Acquisition of 746km transmission lines in Peru (Eteselva and
Etenorte) from
Sole Financial Advisor, Sole Arranger and Sole Bookrunner
US$158,500,000
US$575,000,000
4.375% Notes due 2031
COP 635,519,500,0008.375% Notes due 2027
Joint Bookrunner and Billing & Delivery Bank
US$1,380,000,0004.375% Senior Secured
Notes due 2030
Global Coordinator, Joint Bookrunner, Joint Arranger, and Administrative
Agent
US$105,000,000Term Loan Facility
US$50,000,000Liquidity Facility
has sold a precious metals stream on its Marmato Project to
US$110,000,000
Financial Advisor
40
Risk Overview
41
94%
6%Secured
Unsecured
66%
7%7%5%
5%4%4%2%
Canada
Chile
U.S.
Other International
Mexico
C&CA
Peru
Colombia
0.3%
0.4%
0.4%
0.8%
0.8%
1.0%
1.0%
1.4%
1.6%
2.0%
2.0%
2.3%
2.6%
2.7%
2.8%
4.2%
4.8%
6.0%
Chemicals
Metals
Forest Products
Hospitality and Leisure
Sovereign
Mining
Health Care
Food and Beverage
Transportation
Automotive
Utilities
Agriculture
Energy
Technology and Media
Other
Wholesale and Retail
Financial Services
Real Estate and Construction
Risk Snapshot
1 As at October 31, 20202 % of total loans and acceptances3 As at October 31, 2020
RWA Breakdown1 Credit Exposure by Country2,3 Credit Exposure by Sector1,2
Canadian Banking1,2 International Banking1,2
87%11%
2%Credit Risk
Operational Risk
Market Risk
69%
31%
Secured
Unsecured
$417B $611B1
$325B $67B
Personal & Commercial Lending
42
502 5031,019 1,278
736247 250
670752
3304 18
155149
62
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
2,181
771
1,8462
2
1,1313
7,820
3,482 3,488 4,3625,445 5,682
1,595 1,5331,643
1,776 1,957
6874
74
182 181
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
50 bps 51 bps
119 bps 136 bps
73 bps
TOTAL ACLs ($MM)
+53%
Performing Loan ACLs Impaired Loan ACLs
5,145 5,0956,079
7,403
1 Includes provision for credit losses on debt securities and deposit with banks of $nil in Canadian Banking, -$1 million in International Banking (Q4/19: -$3 million, Q1/20: -$1 million, Q2/20: $1 million), -$1 million in Global Banking and Markets (Q4/19: -$1 million, Q3/20: $1 million), $nil in Global Wealth Management (Q3/20: -$1 million) and $2 million in Other (Q4/19: $1 million, Q1/20: $1 million , Q2/20: -$2 million) 2 Refer to Non-GAAP Measures on slide 40 for adjusted results3 Other includes provisions for credit losses in Global Wealth Management of $3 million (Q3/19: -$1 million, Q1/20: $1 million , Q2/20: $2 million, Q3/20: $1 million)
TOTAL PCLs ($MM)1,2,3 AND PCL RATIO2
753
International Banking Canadian Banking Global Banking and Markets Other3
HIGHLIGHTS• $7.8 billion in total ACLs, up $2.7 billion or 53%
since Q1/20
• Performing loan ACLs increased 63% since Q1/20, or $2.2 billion
• Total ACLs represents ~3 years worth of net write-off-coverage
• Estimated to cover 2021 pandemic-driven elevated write-offs
HIGHLIGHTS• Total PCL ratio2 of 73 bps increased 23 bps Y/Y;
decreased 63 bps Q/Q
• The sequential improvement was driven by lower PCL on performing loans due to improving macroeconomic outlook and stabilizing credit quality
Well Provisioned
Other
43
ALL BANK1
CANADIAN BANKING1
INTERNATIONAL BANKING1
1 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures
Historical PCL Ratios on Impaired Loans
0.12%0.24%
0.59%
0.47%0.34% 0.36% 0.32% 0.40% 0.42%
0.50%0.45% 0.43%
0.49%0.56%
0.00%0.10%0.20%0.30%0.40%0.50%0.60%0.70%
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0.19%
0.23%
0.37% 0.35%0.28%
0.23%0.18%
0.23% 0.23%0.28% 0.29%
0.24%0.29% 0.32%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0.25%0.44%
0.90% 1.00%
0.75% 0.75%
0.86%
1.27% 1.24% 1.26% 1.21% 1.29% 1.30%1.49%
0.00%0.25%0.50%0.75%1.00%1.25%1.50%1.75%
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Average (2007-2020)
Avg:41 bps
Avg:27 bps
Avg:100 bps
44
84 94 99 105 81
85 96
216 224
106
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
Canadian Retail: Loans and Provisions1
1 Includes Wealth Management. PCL excludes impact of additional pessimistic scenario2 Includes Home Equity Lines of Credit and Unsecured Lines of Credit3 Includes Tangerine balances of $6 billion and other smaller portfolios4 82% secured by real estate; 12% secured by automotive
MORTGAGES AUTO LOANS
LINES OF CREDIT2 CREDIT CARDS
1 0 1 2 21 0 4 4
1Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
72 80
87 74 6570 73
164 169
79
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
379 377 445 401 312
381 385
896 1,002
400
Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
PCL as a % of avg. net loans (bps) PCLs on Impaired Loans as a % of avg. net loans (bps)
Loan Balances Q4/20 Mortgages Auto Loans Lines of Credit2 Credit Cards Total
Spot ($B) $245 $39 $33 $6 $3253
% Secured 100% 100% 64% 3% 94%4
45
554 549 531 471
406579 542 143485 455 377 420
439
939
1,552
738
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q41
199 218
208
163251 250 267
280233 231
203
246 228
550 591
253
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q41
COLOMBIA
120 148 150 154
191
190 238181155 159 155 160
175
279 321
87Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q41
138 156 138 165 170 231 221 195
170 157 141187 178
457556
221
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q41
MEXICO
517
372
545473 471 395 361
764
364
402491
424470
970
1,290
1,322
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q41
1 PCL excludes impact of additional pessimistic scenario2 Adjusted for acquisition-related costs, including Day 1 PCL impact on acquired performing loans3 Excludes impact of divested operations4 Total includes other smaller portfolios
CHILE
PERU
Loan Balances Q4/20 Mexico Peru Chile Colombia Caribbean & CA Total4
Secured ($B) $11 $3 $20 $2 $10 $46Unsecured ($B) $2 $6 $5 $4 $3 $21Spot Total ($B) $13 $9 $25 $6 $13 $67
PCL as a % of avg. net loans (bps) PCLs on Impaired Loans as a % of avg. net loans (bps)
Caribbean & CA
Markets with Greater Weighting to Unsecured
Markets with Greater Weighting to Secured
228 4011
1.8x157 2161
1.4x2212,3 3671,3
1.7x
4222 1,00212.4x
435 9101
2.1x
International Retail: Loans and Provisions
20192
2020
2
2019 2019
2019 2019
2020 2020
2020 2020
46
Sectors Most Impacted by COVID-191
Real Estate – Office and Retail: 1.4%
Total Loans
$625.1B
Most Impacted Sectors as a % of Total Loans Trending Lower
Hospitality & Leisure: 0.8%
Energy – E&P and Oilfield Services: 1.4%
Transportation – Air Travel: 0.5%
Total COVID-19 High Impact: 4.0%
Hospitality & Leisure
56%
13%1%
7%
9%
3%
11%
$8.6B
Real Estate: Office and Retail
Office REIT $1.0 69%
Office Real Estate $3.3 48%
Retail REIT $1.3 97%
Retail Real Estate $2.9 52%
Total2 $8.5 58%
25%
17%
4%
9%
36%
9%
$5.1B(0.8% of total
loans)
Hotels $4.0 24%
Cruise Lines $0.3 0%
Gaming $0.8 1%
Total2 $5.1 20%
(1.4% of total loans)
%IG
Other
U.S.Mexico
Latin America
C&CA
CanadaC&CA
Mexico
Latin America
U.S.
%IG$B
$B
1 Sectors which have experienced the greatest disruption in normal business activities and impact to revenue due to the COVID-19 pandemic (including, but not limited to, government-mandated closures) relative to other sectors2 May not add due to rounding
Transportation: Air Travel12%
54%16%
7%
4%7%
$3.0B(0.5% of total
loans)
Aircraft Finance $1.4 99%
Airlines $0.3 4%
Airports $1.3 75%
Total $3.0 81%
CanadaLatin
America
Mexico
C&CA
Other
Europe
%IG$B
Canada
Other
Europe
4.70%4.10%
4.00%
Q2/20 Q3/20 Q4/20
47
Energy - E&P and OFS Exposure1
1 As of October 31, 2020. Excludes Midstream and Downstream
Loans and Acceptances Outstanding ($B)
% of Total E&Pand OFS
% of Total Loans and Acceptances Outstanding
% Investment Grade
Total Exploration & Production (E&P) 7.2 85% 1.2% 52%Canadian E&P 3.3 39% 0.5% 62%U.S. E&P 0.9 10% 0.1% 14%
Oilfield Services (OFS) 1.3 15% 0.2% 6%
Total E&P and Oilfield Services Exposure 8.5 100% 1.4% 45%
• Total Loans and Acceptances Outstanding reduced by $1.3Bn (13%) vs. Q3
• 45% is rated investment grade. 51% of Total Energy (including Midstream and Downstream) exposure is investment grade.
• Outlook has improved due to the recent increase in oil prices.
• Exploration & Production
• Majority of non-investment grade exposure is to secured reserve-based loans or sovereign owned/controlled entities.
• Oilfield Services
• Majority of non-investment grade exposure is secured. Focused on companies with stronger liquidity and balance sheets.
• ACL coverage in E&P and OFS beyond Stage 3
• Maintained substantial Stage 1&2 ECL built in Q2 and Q3 through expert credit judgement.
0.6
4.3
0.2 0.4
2.0
1.0
E&P and OFS Exposure by Geography
$8.5B(%IG)
Canada (49%)
Latin America
(40%)
U.S.(12%)
Asia(94%)
Europe(62%)
C&CA(0%)
48
Treasury and Funding
49
COVID-19 ResponseMaintained elevated liquidity and access to funding markets
• Continued elevated levels of liquidity, well in excess of regulatory requirements o LCR of 138%, -3% Q/Q and +13% Y/Y
o Pacific Alliance countries ended Q4 with LCRs of 140-200%
o HQLA of $210B, -$18B Q/Q and +$45B Y/Y, is substantially comprised of Level 1 assets
• Reduction in wholesale funding to absorb excess system liquidityo Deposit growth moderated requirement for wholesale funding
o $21B of short term funding maturities allowed to roll off
• Funding metrics continue to benefit from reduced wholesale funding usageo WSF below $200B, down $21.6B Q/Q and $91B since March
o WSF/TA improved Q/Q from 18.9% to 17.6%
• Q4 term issuance activity augmented TLACo Issued $4.3B of term senior funding versus term maturities of $3.2B
o TLAC ratio at 23%, above minimum requirement of 22.5%
501 In addition to the programs listed, there are also CD programs in the following currencies: Yankee/USD, EUR, GBP, AUD, HKD
Funding StrategyDiversified funding sources
• Increase contribution from customer deposits
• Continue to reduce wholesale funding utilization while building TLAC
• Maintain balance between efficiency, stability of funding and pricing relative to peers
• Diversify funding by type, currency, program, tenor and source/market
• Utilize a centralized (head office managed) funding and associated risk management approach
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 100 billion
CAD Debt & Equity Shelf (senior / subordinated debt, preferred and common shares)Limit – CAD 15 billion
EMTN ShelfLimit – USD 20 billion
START ABS program (indirect auto loans)Limit – CAD 15 billion
Australian MTN programLimit – AUD 8 billion
Singapore MTN programLimit – USD 7.5 billion
Halifax ABS shelf (unsecured lines of credit)Limit – CAD 7 billion
Principal at Risk (PAR) Note shelfLimit – CAD 6 billion
Trillium ABS shelf (credit cards)Limit – CAD 5 billion
USD Bank CP ProgramLimit – USD 35 billion
51
2%Asset-Backed
Securities
Wholesale FundingWholesale funding diversity by instrument and maturity1,6,7
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 Q4/20.7 May not add to 100% due to rounding.
19%
14% Mortgage
Securitization4
Bearer Deposit Notes,Commercial Paper &
Short-Term Certificate of Deposits
2%Asset-Backed
Commercial Paper3
26%Senior Notes 15%
Covered Bonds
5%Subordinated
Debt5
1715
20
86
20
2
9
4
8
23
4
< 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years >
TERM FUNDING MATURITY TABLE(EXCLUDING SUB DEBT AND MORTGAGE SECURITIZATION)(CANADIAN DOLLAR EQUIVALENT, $B)
Senior Debt ABS Covered Bonds
$28
$20
$29
$10 $9
$24
16%Bail-inable Notes
1%Deposits from Banks2
$200B
52
$174
$170
$168
$179
$197
$197
$211
$221
$223
$227
$263
$270
$274
Q4/
17
Q1/
18
Q2/
18
Q3/
18
Q4/
18
Q1/
19
Q2/
19
Q3/
19
Q4/
19
Q1/
20
Q2/
20
Q3/
20
Q4/
20
Deposit OverviewStrong growth in personal & business and government deposits
PERSONAL DEPOSITS (SPOT, CANADIAN DOLLAR EQUIVALENT, $B)
PERSONAL DEPOSITS
$200
$201
$204
$211
$215
$222
$225
$223
$225
$224
$235
$244
$246
Q4/
17
Q1/
18
Q2/
18
Q3/
18
Q4/
18
Q1/
19
Q2/
19
Q3/
19
Q4/
19
Q1/
20
Q2/
20
Q3/
20
Q4/
20
• All Q/Q growth from Canada• Continued impact of system liquidity from
central banks and government relief programs
• Important for both relationship purposes and regulatory value
BUSINESS & GOVERNMENT DEPOSITS1
(SPOT, CANADIAN DOLLAR EQUIVALENT, $B)
1 Calculated as business & government deposits less wholesale funding as per Wholesale Funding Sources table in the MD&A, adjusted for Sub Debt
BUSINESS & GOVERNMENT• Continuing to leverage relationships to
grow deposits
• Focusing on operational, regulatory friendly deposits
3Y CAGR – 7.2%
3Y CAGR – 16.3%
53
Wholesale Funding UtilizationDeclining reliance on wholesale funding, particularly short-term
WHOLESALE FUNDING / TOTAL ASSETS CONTINUED REDUCTION IN WHOLESALE FUNDING
• Driven by central bank liquidity facilities, deposit growth and decline in asset growtho Ceased participation in central bank liquidity facilitieso Opportunistically took advantage of stable funding
markets
MONEY MARKET WHOLESALE FUNDING / TOTAL WHOLESALE FUNDING
CONTINUED ABSORBTION IN MONEY MARKET FUNDING
• Absorbing central bank liquidity by reducing short term funding balanceso Primarily driven by lower certificate of deposits
36.8% 36.0%
42.2%
21.8%
Q4/
17
Q1/
18
Q2/
18
Q3/
18
Q4/
18
Q1/
19
Q2/
19
Q3/
19
Q4/
19
Q1/
20
Q2/
20
Q3/
20
Q4/
20
23.8% 23.4% 22.9%
17.6%
Q4/
17
Q1/
18
Q2/
18
Q3/
18
Q4/
18
Q1/
19
Q2/
19
Q3/
19
Q4/
19
Q1/
20
Q2/
20
Q3/
20
Q4/
20
54
Liquidity MetricsWell funded Bank with very strong liquidity
• Liquidity Coverage Ratio (LCR)o Maintained elevated levels of liquidity, well in excess of regulatory requirementso Supported by central bank liquidity related to pandemic responseo LCR of 140-200% in Pacific Alliance countries
124% 128% 125% 123% 125% 127% 132%141% 138%
Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
• High Quality Liquid Assets (HQLA)o Substantially comprised of Level 1 assets
o Strong annual growth but moderated Q/Q: -$18B Q/Q(1) and +$45B Y/Y
$144 $158 $158 $160 $165 $168$188
$227$210
Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20
1 May not add due to rounding.
Core Markets:Economic Profiles
Appendix 1
56
COVID-19: Government Responses
Policy Action Canada United States
Mexico Peru Chile Colombia
Policy Rate Cuts(Since March 1, 2020)
150 bps 150 bps 275 bps 200 bps 125 bps 250 bps
Fiscal & Financial Measures
(% of GDP)
17.5% 13.5% 0.7% 20.0%1 17.5%1 2.8%
Key Measures
Liquidity program Wage and payroll support programs - -
Payment deferral programs
Small business and sectoral programs
Loan guarantees - - - Household income
supplementary funds
- - -
Retirement savings withdrawals - - - -
Tax holidays - - - Source: Scotiabank Economics. As of November 14, 2020.1 Includes pension withdrawals and deposit relief
57
Latam: Economic Activity UpdateObserving improvement in economic activity
-50
-40
-30
-20
-10
0
10
20
18 19 20
Chile Colombia Mexico Peru
Latam: Monthly Economic Activity Index Tracker
Sources: Scotiabank Economics, Haver Analytics.
y/y % change
58
Canadian EconomyDiverse sources of growth with a strong balance sheet
-1
0
1
2
3
U.S. Canada Eurozone U.K. Japan
(8.2)(10.8)
(13.0)(14.2) (14.4)
(18.7)(16.5)
(18.7)
-25
-20
-15
-10
-5
0
GE FR IT JN Adv. Econ.
CA* UK US
AN
NU
AL
% C
HA
NG
E
% OF GDP49.0 54.196.1 98.1 106.8 110.0
148.8177.1
Canada* Germany OECD U.K. U.S. France Italy Japan
Sources: Scotiabank Economics, Haver Analytics, Statistics Canada.Forecasts as of Oct 14, 2020.
General Government Net Debt in 2020
% O
F G
DP
Real GDP Growth
2010–2018 2019–2021f
Government Financial Deficits in 2020
CANADIAN GDP BY INDUSTRY
(Aug 2020)3.7%
12.4%20.9%
6.4%
7.5%7.1%
6.1%
15.1% 10.9%
10.0%
Finance, Insurance, & Real Estate
Health & Education
Wholesale & Retail Trade
Manufacturing
Mining and Oil & Gas Extraction
ConstructionPublic Administration
Professional, Scientific,
& Technical Services
Transportation & Warehousing
Other
* Canadian federal deficit reflects Scotiabank Economics’ forecast as of Oct. 14, 2020.Sources: Scotiabank Economics, IMF Fiscal Monitor (October 2020 estimates), CBO.
* Canadian government net debt obtained from Scotiabank Economics’ Federal Economic and Fiscal Snapshot (July 8, 2020).Sources: Scotiabank Economics, IMF Fiscal Monitor (October 2020).
GDP Forecast 2020: GDP Forecast 2021:-5.7% +4.1%
59
Mexican EconomyDiverse economy
Top 5 Trading Partners*
* Trade data updated as of Q2-2020
MEXICAN GDP BY INDUSTRY*
(Q2 2020)
4.9%
19.2%
7.1%
5.4%4.7%2.1%
15.7%16.1%
13.9%
Finance, Insurance, & Real Estate
Health & Education
Wholesale & Retail Trade
Manufacturing
Mining and Oil & Gas Extraction
ConstructionPublic
Administration
Professional, Scientific,
& Technical Services
Transportation & Warehousing
Other
3.9%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 and include all G7 countries
United States
55%
Others 23%
Germany 3%South Korea 3%
Canada 3%
China 13%
7.0%
* Q3-2020 real GDP growth -8.6% y/y. Industry GDP breakdown not yet available for Q3-2020.GDP Forecast 2020: GDP Forecast 2021:-9.1% +3.8%
-20-18-16-14-12-10
-8-6-4-20246
17 18 19 20
Other* Net Exports InventoriesInvestment Government ConsumptionReal GDP
Contributions to Mexican GDP Growthy/y % change
*Statistical discrepancy, subject to revision.Sources: Scotiabank Economics, Haver Analytics.
60
Peruvian EconomyResilient economic fundamentals
PERUVIAN GDP BY INDUSTRY
(Q3 2020)
11.4%
2.0%
49.7%
13.0%
6.0%Wholesale and
Retail Trade
Mining, Oil, & Gas
Construction
Electricity & Water
Other
12.3%Manufacturing
5.7%Natural
Resources
Top 5 Trading Partners*
United States 16%
Others47%
Japan 4%
Canada 4% South Korea
4%
China 25%
• 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
* Trade data updated as of Q2-2020
GDP Forecast 2020: GDP Forecast 2021:-11.5% +10.0%
-40
-35
-30
-25
-20
-15
-10
-5
0
5
10
17 18 19 20
Net Exports Inventories
Investment Government
Consumption Real GDP
Contributions to Peruvian GDP Growthy/y % change
Sources: Scotiabank Economics, Haver Analytics.
61
Chilean EconomyAdvanced economy with wide-ranging trade links
CHILEAN GDP BY
INDUSTRY (Q3 2020)1.2%
10.1%16.1%
5.0%
5.2%17.8%7.7%
8.5% 10.9%
14.0%
Finance, Insurance, & Real Estate Wholesale & Retail Trade
Manufacturing
Mining and Oil & Gas Extraction
Construction
Public AdministrationHousing & Personal
Services
Transportation & Warehousing
Restaurants & Hotels
Other
3.5%Natural Resources
Top 5 Trading Partners*
United States
15%
Others 36%
Brazil 5%
Japan 7%
South Korea 3%
China 34%
• 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, which should underpin future productivity gains as the economy rebounds from recent social difficulties
* Trade data updated as of Q2-2020
GDP Forecast 2020: GDP Forecast 2021:-5.2% +5.6%
-25
-20
-15
-10
-5
0
5
10
17 18 19 20
Net Exports Inventories
Investment Government
Consumption Real GDP
Contributions to Chilean GDP Growthy/y % change
Sources: Scotiabank Economics, Haver Analytics.
62
Colombian EconomyStrong underlying momentum
COLOMBIAN GDP BY
INDUSTRY(Q2 2020)
7.0%
15.2%15.3%
5.2%
16.4%7.2%
3.0%
9.0% 12.2%
7.6%
Finance, Insurance, & Real Estate
Wholesale, Retail Trade, Accommodation & Food Services
Manufacturing
Construction
Mining and Oil & Gas Extraction
Public Administration
Professional, Scientific,
& Technical Services
Information & Communication
Natural Resources
Other
1.9%Arts &
Entertainment
Top 5 Trading Partners*
Germany3%
United States
27%Others 42%
Brazil 5%
Mexico 5%
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
* Trade data updated as of Q2-2020
GDP Forecast 2020: GDP Forecast 2021:-7.5% +5.0%
-22
-17
-12
-7
-2
3
8
17 18 19 20
Other* Net Exports Investment
Government Consumption Real GDP
Contributions to Colombian GDP Growth
y/y % change
*Statistical discrepancy, subject to revision.Sources: Scotiabank Economics, Haver Analytics.
Canadian Economic Fundamentals
Appendix 2
64
Canada: Consumer and Business Observing signs of economic recovery
Business Confidence – CFIB Business Barometer
Canada Real Retail SalesCanada Auto Sales
Key Economic Indicators
25
30
35
40
45
50
55
60
65
70
75
11 12 13 14 15 16 17 18 19 20Sources: Scotiabank Economics, CFIB.
index, > 50 = stronger
Headline index
6-month moving average
3-month moving average
Avg. 2011–present
20
40
60
80
100
120
140
Feb Mar Apr May Jun Jul Aug Sep Oct
Auto Sales Housing Starts Employment
Mfg Shipments Retail Sales Manufacturing PMI
Exports
index, Feb 2020 levels = 100
Sources: Scotiabank Economics, Bloomberg.
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21
mn, saar units
Sources: Scotiabank Economics, DesRosiers Automotive Consultants Inc.
60
65
70
75
80
85
90
95
100
105
Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20
Sources: Scotiabank Economics, Statistics Canada.
Feb 2020=100
65
Canada: Housing Market StrengthStrong demand continues to confront insufficient supply
G7 Population Growth
Government Assistance Supporting HouseholdsListings Falling More Rapidly than Sales
0.0
0.5
1.0
1.5
2.0
2.5
20 21 22
%
Sources: Scotiabank Economics, Bank of Canada Financial System Review.
Arrears without existing household support measures
Arrears with existing support measures
% Hypothetical arrears rate on mortgages simulated by BoC for 19% fall in GDP in 2020
Housing Market is Historically Undersupplied
-0.4-0.20.00.20.40.60.81.01.21.41.61.8
08 09 10 11 12 13 14 15 16 17 18 19 20
Canada United StatesEuro Area United KingdomJapan ItalyFrance
Sources: Scotiabank Economics.
annual % change
0.30
0.40
0.50
0.60
0.70
0.80
0.90
84 87 90 93 96 99 02 05 08 11 14 17 20Sources: Scotiabank Economics, Statistics Canada.
1984–present avg.
Ratio of total home completions on 18-month rolling basis relative to population change
30
40
50
60
70
80
90
04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Sources: Scotiabank Economics, CREA.
Seller’s Market
Buyer's Market
sa sales-to-new-listing ratio, %
66
-5
0
5
10
15
20
00 02 04 06 08 10 12 14 16 18 20
%, 3-month moving average
y/y % change
Sources: Scotiabank Economics, Bank of Canada.
m/m % change,
SA
Growth in Household Credit
• Total household credit, in annual nominal terms, has slowed considerably since the 2008 peak of 12.2% annually. However, the Q3-2020 growth of 3.5% surpasses that of the last four quarters.
• Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.) fell by 2.2% annually in Q3-2020. Consumer loan growth has trended downward since mid-2000 highs of almost 15% annually, with recent months’ negative growth induced by consumer spending pullbacks.
• Mortgage credit grew at 5.4% annually in Q3-2020 vs the 2008 peak of 13%. Underlying demand coupled with lower five-year rates are driving a rebound in the pace of growth.
HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH
-20
-15
-10
-5
0
5
10
15
20
25
00 02 04 06 08 10 12 14 16 18 20
%, 3-month moving average
m/m % change, SA
Sources: Scotiabank Economics, Bank of Canada.
y/y % change
-5
0
5
10
15
20
00 02 04 06 08 10 12 14 16 18 20
%, 3-month moving average
y/y % change
Sources: Scotiabank Economics, Bank of Canada.
m/m % change,
SA
Additional Information
Appendix 3
68
Medium-Term Financial Objectives
1 3-5 year targets from 2020 Investor Day
All-BankObjectives1
EPS Growth 7%+
ROE 14%+
Operating Leverage Positive
Capital Strong Levels
69
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 Negative 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" regime2 Subject to conversion under the bank recapitalization "bail-in" regime
70
ContactInformation
Investor Relations
Philip SmithSenior Vice President416-863-2866
Funding
Sophia SaeedVice President416-933-8869
Rene LoDirector416-866-6124
Tom McGuire Executive Vice President & Group Treasurer
416-860-1688
Mark MichalskiDirector, Strategy & Market Development, Funding
416-866-6905
Christy Bunker SVP, CB & GWM Treasurer, Term Funding
and Capital management
416-933-7974
Tiffany SunSenior Manager416-866-2870