Bank Of Nova Scotia · TSX:BNS
Bank Of Nova Scotia — The Bank of Nova Scotia — Q2 2025 Earnings Presentation
112 slides from Bank Of Nova Scotia's earnings presentation, May 27, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements FORWARD LOOKING STATEMENTS - From time to time, our public communications include interpretations on these estimates; global capital markets activity; the Bank’s ability to attract, oral or written forward-looking statements. Statements of this type are i
Slide 3: Table of Contents
Table of Contents Scotiabank Overview 4 Business Line Overview: Canadian Banking 17 Business Line Overview: International Banking 25 Business Line Overview: Global Wealth Management 32 Business Line Overview: Global Banking and Markets 37 Risk Overview 41 Treasury and Funding 50 Appendix 1: Core Mar
Slide 4: About Scotiabank
About Scotiabank Q2/25 HIGHLIGHTS Q2/25 EARNINGS1 BY MARKET Q2/25 Q2/24 Other 2 2 22% Reported Adjusted Reported Adjusted English Net Income1 ($Bn) 2.0 2.0 2.1 2.1 48% Caribbean 11% $2Bn Canada Diluted EPS ($) 1.48 1.52 1.57 1.58 9% Mexico 10% Revenue ($Bn) 9.1 9.1 8.3 8.3 U.S.A 3 Return on Equity 1
Slide 5: Our Strategy
Our Strategy Be our clients’ most trusted financial partner to drive sustainable, profitable growth and maximize total shareholder return. Earn Make it easy Grow and scale Win as primary client to do in priority businesses one team relationships business with us OUR PURPOSE & VALUES M E D I U M - T
Slide 6: Global Must Win Medium-Term Priorities
Global Must Win Medium-Term Priorities Unlock Retail deposits, investments and client primacy Enhance payments and Heighten focus on cash management Mexico solutions Commercial Pursue thoughtful Expand Cloud productivity and capabilities efficiency initiatives 6
Slide 7: Well Diversified Business with Strong Returns
Well Diversified Business with Strong Returns E A R N I N G S B Y B U S I N E S S L I N E E X . O T H E R 1,2 FY2024 EARNINGS BY GEOGRAPHY1 Global Business Lines $9.3Bn Banking and Other -$1.5Bn Reported NIAEH $7.8Bn 82% of Earnings are in Markets 16% 49% North America Canadian Global FY2024 Banking
Slide 8: Business Lines (Q2/25 Results)
Business Lines (Q2/25 Results) BUSINESS CANADIAN INTERNATIONAL GLOBAL WEALTH GLOBAL BANKING LINE BANKING BANKING MANAGEMENT AND MARKETS Products • Mortgages • Mortgages • Asset Management • Corporate Lending • Auto Loans • Auto Loans • Private Banking • Advisory • Business Loans • Personal Loans • P
Slide 9: Business Line Snapshot
Business Line Snapshot CANADIAN BANKING($BN) INTERNATIONAL BANKING ($BN) Loans (avg) LDR1 120% LDR1 126% 8% 3-yr Deposit 7% 3-yr Deposit CAGR Change CAGR Change Deposits (avg) 100 bps (340 bps) (Q/Q) (Q/Q) 175 171 446 447 459 168 426 152 378 367 379 141 340 125 130 130 294 308 107 104 2021 2022 2023
Slide 10: Q2 2025 Financial Performance
Q2 2025 Financial Performance $MM, except EPS Q2/25 Y/Y Q/Q Y/Y HIGHLIGHTS Reported Net Income $2,032 (3%) 105% • Diluted EPS down 6%, adjusted1 down 4% Diluted EPS $1.48 (6%) 124% o Significantly higher performing PCLs Revenue $9,080 9% (3%) o PTPP1 up 9%; adjusted1 up 10% Expenses $5,110 8% (21%)
Slide 11: Strong Capital Position
Strong Capital Position Q/Q CHANGE IN CET1 RATIO (%)1 • The CET1 ratio increased by ~30 bps to 13.2% • Lower shortfall in provisions to expected losses from higher performing ACL • Net benefit from lower RWA was primarily from parameter updates 4 bps 3 bps 3 bps 13.2% 12.9% 12 bps 8 bps (2 bps) Q1 2
Slide 12: Strong Balance Sheet Metrics
Strong Balance Sheet Metrics $Bn (unless indicated otherwise) Q2/24 Q1/25 Q2/25 Y/Y Capital Metrics CET1 Ratio1 13.2% 12.9% 13.2% - 1 Tier 1 Capital Ratio 15.2% 15.1% 15.4% 20 bps 1 Total Capital Ratio 17.1% 16.8% 17.1% - TLAC Ratio2 28.9% 28.8% 30.3% 140 bps 3 Leverage Ratio 4.4% 4.4% 4.5% 10 bps 2
Slide 13: TLAC and TLAC Leverage Ratios
TLAC and TLAC Leverage Ratios TLAC RATIO1 30.3% 28.9% 28.8% 25.08% Other 11.8% 13.2% Other 12.0% TLAC4 10.0% TLAC4 1.9% 1.7% 1.7% T2 2.0% Tier 2 Additional Tier 1 2.0% 2.2% 2.2% AT1 0.08% 1.5% Countercyclical Buffer 3.5% Domestic Stability Buffer 1.0% D-SIB Buffer 2.5% Capital Conservation Buffer 13
Slide 14: Digital Progress
Digital Progress DIGITAL PROGRESS CANADIAN BANKING Canadian Banking D I G I T A L U N I T A C T I V E D I G I T A L D I G I T A L A C T I V E M O B I L E S A L E S ( % ) U S E R S ( M M ) A D O P T I O N ( % ) U S E R S ( M M ) • New automated digital savings tools launched within the Scotia Smart M
Slide 15: Sustainability Highlights
Sustainability Highlights INDEX ESG RATINGS ENVIRONMENT SOCIAL GOVERNANCE INCLUSION AND RANKINGS $350 Billion Economic Inclusion Sustainability Expertise Provide $350 billion7 in Promote economic Deliver on key initiatives Best-in-Class climate-related finance8 resilience through our such as the Ban
Slide 16: Sustainability Highlights
Sustainability Highlights ENVIRONMENT SOCIAL GOVERNANCE • Announced a call for 2025 Climate Action Research Fund • Scotiabank hosted a ScotiaRISE summit and made a $3 • Published the 2024 Climate Report and 2024 submissions. The fund grants approximately $1 million million community investment in At
Slide 17: Business Line Overview: Canadian Banking
Business Line Canadian Banking Overview 17
Slide 18: Canadian Banking
Canadian Banking Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 11 million customers. Retail, Small Business and Commercial Banking customers receive service through its network of 890 branches and 3,555 automa
Slide 19: Canadian Banking
Canadian Banking $MM Q2/25 Y/Y Q/Q BUSINESS MIX Q2/256 Reported Net Income1 613 (31%) (33%) Retail Revenue 3,235 2% (5%) 74% Mortgages Expenses 1,581 4% (2%) Revenue 62% Average Credit Cards Mix Loans Pre-Tax, Pre-Provision Profit2 1,654 (1%) (8%) 2% $3.2Bn $458.9Bn PCLs 805 88% 50% Personal Loans P
Slide 20: Business Banking
Business Banking AVERAGE NON-PERSONAL DEPOSITS ($BN) AVERAGE BUSINESS LOANS ($BN) 9% 3-yr CAGR 15% 3-yr CAGR 135 140 93 93 105 62 2021 2022 2023 2024 Q2/25 2021 2022 2023 2024 Q2/25 COMMERCIAL BANKING SMALL BUSINESS BANKING • Strategic focus on underpenetrated geographies (Quebec, Ontario, British •
Slide 21: Canadian Retail Loan Portfolio
Canadian Retail Loan Portfolio HIGH QUALITY RESIDENTIAL MORTGAGE PORTFOLIO R E T A I L L O A N B O O K 4,5 • 23% insured; remaining 77% uninsured has an LTV1 of 52% Spot Balance as of Q2/25 • Mortgage business model is “originate to hold” Real Estate Secured • New uninsured originations2 in Q2/25 ha
Slide 22: Canadian Residential Mortgages
Canadian Residential Mortgages Asset yields on variable rate mortgages reprice with each change to Scotiabank’s prime rate MORTGAGE PORTFOLIO1 in $Bn (Spot) 23% 33% in $Bn (Spot) Mortgage Portfolio Variable Mortgages Insured Variable Total Outstanding Balance $305 $100 Uninsured Outstanding Balance
Slide 23: Canadian Residential Mortgages
Canadian Residential Mortgages MORTGAGE PORTFOLIO1 in $Bn (Spot) Freehold Condos 83% ($253Bn) Freehold 169.9 25.6 61.8 Total 144.3 19.3 32.2 20.2 11.8 9.5 Portfolio1 42.5 3.9 3.1 0.3 0.7 28.3 $305Bn Ontario BC & Territories Alberta 17.1 Quebec 11.5 Atlantic 8.8 Manitoba & Provinces Saskatchewan 17%
Slide 24: Automotive Finance
Automotive Finance HIGHLIGHTS • Canada’s leader in retail automotive finance across the Canadian banks • Provides personal and commercial dealer financing solutions, in partnership with ten leading global automotive manufacturers in Canada • Average net loans and acceptances decreased 2% year-over-y
Slide 25: Business Line Overview: International Banking
Business Line International Banking Overview 25
Slide 26: International Banking
International Banking International Banking is a strong and diverse franchise serving over 12 million Retail, Corporate, and Commercial clients with a presence in 15+ countries, including Mexico, Chile, Peru, Colombia, Brazil, Uruguay, and various markets in the Caribbean and Central America. This u
Slide 27: International Banking
International Banking Constant dollar basis2 BUSINESS MIX AS AT Q2/25 $MM Q2/25 Y/Y Q/Q Y/Y Q/Q Reported Latin Business America Credit 50% Net Income1 676 6% 4% 5% 2% 78% Cards Revenue 2,959 0% (2%) 0% (4%) Revenue 5% Average Expenses 1,523 (2%) (2%) 0% (3%) Mix Loans Auto Pre-Tax, Pre-Provision Pro
Slide 28: International Retail & Commercial
International Retail & Commercial RETAIL BANKING COMMERCIAL BANKING • Retail banking serves the day-to-day banking needs of individual • Commercial banking provides financial solutions to a variety of and small business clients, providing personalized advice via institutions including cross border c
Slide 29: International Banking: Mexico and Chile
International Banking: Mexico and Chile1 MEXICO CHILE $MM , Reported Constant Dollar2 $MM , Reported Constant Dollar2 Q2/25 Y/Y Q/Q Y/Y Q/Q Q2/25 Y/Y Q/Q Y/Y Q/Q Revenue 760 (7%) 1% 4% 1% Revenue 651 10% 7% 4% 3% Expenses 401 (11%) 1% 0% 1% Expenses 286 7% 1% 2% (1%) Provision for credit losses 145
Slide 30: International Banking: Peru and Colombia
International Banking: Peru and Colombia1 PERU COLOMBIA $MM , Reported Constant Dollar2 $MM , Reported Constant Dollar2 Q2/25 Y/Y Q/Q Y/Y Q/Q Q2/25 Y/Y Q/Q Y/Y Q/Q Revenue 422 0% (16%) (6%) (17%) Revenue 285 (3%) 3% (1%) (1%) Expenses 194 0% (5%) (5%) (6%) Expenses 178 (11%) (4%) (9%) (8%) Provision
Slide 31: International Banking: Caribbean and Central America
International Banking: Caribbean and Central America1 CARIBBEAN CENTRAL AMERICA $MM , Reported Constant Dollar2 $MM , Reported Constant Dollar2 Q2/25 Y/Y Q/Q Y/Y Q/Q Q2/25 Y/Y Q/Q Y/Y Q/Q Revenue 543 6% (5%) 3% (4%) Revenue 106 7% (2%) 2% (2%) Expenses 280 9% (4%) 6% (4%) Expenses 76 (0%) (8%) (5%)
Slide 32: Business Line Overview: Global Wealth Management
Business Global Wealth Line Overview Management 32
Slide 33: Global Wealth Management
Global Wealth Management Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank’s footprint. Global Wealth Management serves over 2 million investment fund and advisory clients across 12 countries – administering over $700
Slide 34: Global Wealth Management
Global Wealth Management $MM Q2/25 Y/Y Q/Q REVENUE MIX AS AT Q2/25 Reported Net Income1 $399 17% (2%) Revenue $1,541 12% (2%) Expenses $997 10% (2%) 14% Pre-Tax, Pre-Provision Profit2 $544 17% (2%) PCLs $2 (71%) (56%) Revenue Productivity Ratio3 64.7% (140 bps) 0 bps $1.5Bn Spot AUM ($Bn)3 $380 9% (
Slide 35: Global Wealth Management
Global Wealth Management 3RD LARGEST WEALTH MANAGEMENT BUSINESS IN CANADA1 CANADA MEXICO CHILE COLOMBIA PERU C&CA ASSET MANAGEMENT WEALTH MANAGEMENT A broad range of actively managed investment A powerful advisory and distribution network solutions from our innovative platform across Canada and Lati
Slide 36: Market Leading Capabilities
Global Wealth Management MARKET LEADING CAPABILITIES AWARD-WINNING INVESTMENT MANAGEMENT TAILORED ADVICE & SOLUTIONS • Scotia Global Asset Management's investment teams were • Scotia Wealth Management was recognized with seven recognized with 24 awards at the annual FundGrade A+ Awards Euromoney Pri
Slide 37: Business Line Overview: Global Banking and Markets
Business Global Banking Line Overview and Markets 37
Slide 38: Global Banking and Markets
Global Banking and Markets 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, serving clients across Canada, the United States, Latin America
Slide 39: Global Banking and Markets
Global Banking and Markets $MM Q2/25 Y/Y Q/Q BUSINESS MIX AS AT Q2/256 Reported Net Income1 413 10% (20%) Revenue 1,458 18% (9%) Asia Global 2% Expenses 878 15% (1%) Europe Equities Canada 18% Pre-Tax, Pre-Provision Profit2 580 23% (17%) 7% 48% PCLs 40 100%+ 100%+ Revenue Revenue Productivity Ratio3
Slide 40: GBM in the US and International Banking
GBM in the US and International Banking DELIVERING THE FULL BANK TO MEET OUR AMERICAS CLIENTS’ NEEDS GBM INTERNATIONAL GBM US GBM International US Q2/25 BANKING Banking1 • Corporate & Investment Banking, • Advisory, Financing and Risk Capital Markets, Deposits, and Management Solutions, and access T
Slide 41: Risk Overview
Risk Overview 41
Slide 42: Risk Snapshot (Q2/25)
Risk Snapshot (Q2/25) BUSINESS AND GOVERNMENT RWA BREAKDOWN1 CREDIT EXPOSURE BY COUNTRY EXPOSURE BY SECTOR2 As at October 31, 2024 • Total loans $281Bn • As a percentage of total loans and acceptances: Canada U.S. Real estate and contractors 8.2% Credit Risk 3% 68% Chile Financial services 4.0% 85%
Slide 43: Allowance for Credit Losses
Allowance for Credit Losses TOTAL ACLS1 ($MM) AND ACL RATIO2 HIGHLIGHTS 91 bps 95 bps 88 bps 89 bps 88 bps • Total ACL ratio of 95 bps, up 4 bps Q/Q 7,080 7,276 6,768 6,860 6,736 o Performing allowances were $5.1 billion, up 2,201 $185 million Q/Q (+$269 million ex. F/X), 2,034 2,076 2,054 2,190 mai
Slide 44: Provision for Credit Losses
Provision for Credit Losses $MM Q/Q HIGHLIGHTS $MM Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 All-Bank Impaired 975 970 1,043 1,064 1,052 • Total PCL ratio of 75 bps, up 15 bp Q/Q: Performing 32 82 (13) 98 346 o Performing provisions (18 bps); continued Total 1,007 1,052 1,030 1,162 1,398 unfavourable macroecono
Slide 45: Gross Impaired Loans and Net Write-offs
Gross Impaired Loans and Net Write-offs GILS ($MM) AND GIL RATIO1 HIGHLIGHTS • GILs decreased Q/Q by $215 million due mainly to lower 83 bps 84 bps 88 bps 91 bps 90 bps formations across most portfolios, write-off of one account in GBM along with the impact of foreign currency translation 7,064 6,84
Slide 46: Canadian Retail: Loans and Provisions
Canadian Retail: Loans and Provisions 1 MORTGAGES AUTO LOANS 15 179 10 152 153 158 143 135 106 6 83 5 6 4 141 3 144 150 2 111 114 89 104 76 3 4 1 3 4 4 1 1 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 LINES OF CREDIT CREDIT CARDS 855 167 171 137 559
Slide 47: International Retail: Loans and Provisions
International Retail: Loans and Provisions CARIBBEAN AND MEXICO CHILE CENTRAL AMERICA 231 201 224 151 175 188 188 187 136 136 139 MARKETS 185 201 175 162 121 124 122 WITH 148 155 137 132 128 129 196 GREATER 168 182 174 166 146 160 WEIGHTING 154 168 148 105 101 114 117 118 128 128 94 124 107 109 83 T
Slide 48: Retail 90+ Days Past Due Loans
Retail 90+ Days Past Due Loans1 Canada Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Mortgages 0.14% 0.16% 0.20% 0.19% 0.20% 0.23% 0.24% 0.24% Personal Loans 0.63% 0.69% 0.55% 0.50% 0.50% 0.51% 0.57% 0.51% Credit Cards 0.61% 0.70% 0.79% 0.79% 0.74% 0.86% 1.10% 1.13% Secured and 0.22% 0.29% 0.33% 0
Slide 49: Commercial Real Estate
Commercial Real Estate Portfolio comprised of Commercial Real Estate, and Contractor loans which include Engineering & Project Management and Trade Contractors SPOT LOANS OUTSTANDING1 HIGHLIGHTS Q2/24 Q1/25 Q2/25 Total Portfolio: $62.3Bn • Portfolio represents 8.2% of the Bank’s total loans and Y/Y:
Slide 50: Treasury and Funding
Treasury and Funding 50
Slide 51: Highlights
Highlights STRONG LIQUIDITY, STABLE FUNDING • Strong liquidity well in excess of regulatory requirements o LCR1 of 131%, up 200 bps Y/Y and up 300 bps Q/Q o HQLA2 of $275.8Bn, down $1.6 Bn Y/Y and up $12.6 Bn Q/Q • Stability of funding reflected in NSFR3 of 120%, up 300 bps Y/Y and up 300 bps Q/Q •
Slide 52: Key Liquidity Metrics
Key Liquidity Metrics LIQUIDITY COVERAGE RATIO (LCR)1 HIGHLIGHTS 133% 136% • LCR is well in excess of 100% regulatory requirement 132% 129% 133% 131% 131% 131% 128% • Selected LCRs: Chile – 161%, Mexico – 146%, Peru – 152%, Colombia – 125% Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 HIGH Q
Slide 53: Strong Deposit Growth
Strong Deposit Growth AVERAGE DEPOSITS BY SEGMENT6 Q2/25 AVERAGE DEPOSIT MIX in $Bn CB IB GBM GWM Notice - Term - 2 3 Business Business 727 732 706 705 9% 18% 682 Demand-1 624 591 Personal 2% 367 362 381 379 340 308 294 Notice - Demand - $732Bn 2 Personal Business 1 125 130 135 127 130 20% 104 107 3
Slide 54: Funding Strategy
Funding Strategy DIVERSIFIED FUNDING SOURCES • Increase contribution from core customer deposits • Manage to prudent level of wholesale funding utilization and TLAC1 • Maintain balance between efficiency, stability of funding and pricing relative to peers • Diversify funding by type, currency, progr
Slide 55: Wholesale Funding
Wholesale Funding FUNDING PROGRAMS1 TERM FUNDING CONTRACTUAL MATURITIES2 Global Registered Covered Bond Program CDE ($Bn) 49 (uninsured Canadian mortgages) Limit – CAD 100 billion 43 7 2 37 4 US Debt & Equity Shelf 2 2 (senior / subordinated debt, preferred and common shares) 3 17 Limit – USD 50 bil
Slide 56: Wholesale Funding Utilization
Wholesale Funding Utilization WHOLESALE FUNDING / TOTAL ASSETS HIGHLIGHTS • Wholesale funding utilization continues to be well managed 22.8% 21.8% • Wholesale funding / total assets remains below pre- 21.2% pandemic levels 21.9% 22.7% 20.3% 21.6% 19.3% 19.4% 20.6% 19.9% 19.1% 19.1% Q4/22 Q4/23 Q4/24
Slide 57: Scotiabank Credit Ratings
Scotiabank Credit Ratings Fitch Ratings Moody’s Morningstar DBRS Standard & Poor's Legacy Senior Debt1 AA Aa2 AA A+ Senior Debt2 AA- A2 AA (low) A- Subordinated Debt (NVCC) A Baa1 (hyb) A (low) BBB+ Subordinated Additional Tier 1 Capital Notes BBB+ Baa3 (hyb) BBB (high) BBB- (NVCC) Limited Recourse
Slide 58: Appendix 1: Core Markets: Economic Profiles
Appendix 1 Core Markets: Economic Profiles
Slide 59: Economic Outlook in Core Markets
Economic Outlook in Core Markets REAL GDP (ANNUAL % CHANGE) Forecast1 2010-20 2025 2026 Country 2022 2023 2024 Average Full Full Q1E Q2F Q3F Q4F Q1F Q2F Q3F Q4F Year Year Canada 1.6 4.2 1.5 1.5 2.3 1.8 1.4 0.9 1.6 0.8 0.7 0.7 0.8 0.7 U.S. 2.0 2.5 2.9 2.8 2.1 1.2 0.6 0.0 0.9 0.3 0.3 0.5 1.1 0.6 Mexic
Slide 60: Economic Outlook and Election Calendar
Economic Outlook and Election Calendar MOST SOUTH AMERICAN ECONOMIES EXPECTING SLOW NEAR-TERM GROWTH1 125 Real GDP, index Q4-2019=100, 4-qtr. rolling sum 120 115 110 105 100 95 90 85 2020 2021 2022 2023 2024 2025 2026 Chile Colombia Mexico Peru ELECTIONS IN THE REGION 2025 2026 2027 Mid term Legisla
Slide 61: Interest Rate Sensitivity and Outlook
Interest Rate Sensitivity and Outlook NET INTEREST INCOME SENSITIVITY1 POLICY RATE CHANGE AND OUTLOOK POLICY RATE CHANGE AND OUTLOOK • Impact of an immediate and sustained 100 bps Policy Rate Change by BNS Fiscal Quarters (bps) Current Forecast Policy Rate3 parallel shift on net interest income (NII
Slide 62: Uncertainty Clouds The Path Ahead
Uncertainty Clouds The Path Ahead • Many major central banks are weighing risks to the outlook, as the introduction of steep and fluctuating tariffs by the United States, sometimes combined with retaliatory measures, give pause for thought on the appropriate path ahead. While continued policy rate-
Slide 63: Canadian Economy
Canadian Economy CANADIAN GDP BY INDUSTRY REAL GDP GROWTH1 GDP 2024: 1.5% GDP 2025F: 1.6% GDP 2026F: 0.7% 3.0 20.7% 13.7% Finance, Insurance, Health & Education & Real Estate ANNUAL % CHANGE 10.5% 2.0 14.7% Wholesale & Other 2.29T Retail Trade CAD2017, 1.0 4.4% SAAR 9.0% Transportation & Warehousing
Slide 64: Public Debt Ratios in G7 Markets
Public Debt Ratios in G7 Markets G7 GOVERNMENT GROSS DEBT1 300 % of GDP 250 200 150 100 50 0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Canada (AAA) France (AA-) Germany (AAA) Italy (BBB+) Japan (A+) UK (AA) U.S. (AA+) G7 GOVERNMENT NET DEBT1 200 % of GDP 150 100 5
Slide 65: Mexican Economy
Mexican Economy HIGHLIGHTS1 MEXICAN Q1/25 GDP BY INDUSTRY2 GDP 2024: 1.4% GDP 2025F: -0.5% GDP 2026F: 0.6% 13.6% 5.9% • Uncertainty amid the implementation of US tariffs, US migration policies, Health & Education Finance, Insurance, the designation of Mexican drug cartels as FTOs, as well as Mexico’
Slide 66: Peruvian Economy
Peruvian Economy HIGHLIGHTS1 PERUVIAN Q1/25 GDP BY INDUSTRY2 GDP 2024: 3.3% GDP 2025F: 3.3% GDP 2026F: 2.7% 11.8% 12.1% • GDP growth is entering 2025 in strength, with Q4-2024 growth Manufacturing Mining, Oil, & Gas hovering near 4.0%, which continued in Q1-2025. The labour market is outperforming e
Slide 67: Chilean Economy
Chilean Economy HIGHLIGHTS1 CHILEAN Q1/25 GDP BY INDUSTRY2 GDP 2024: 2.6 % GDP 2025F: 2.5% GDP 2026F: 2.5% 3.9% 14.1% Natural Resources 10.2% • Chile’s diversified trading relationships are supported by 90 free- Finance, Insurance, Wholesale & Retail Trade trade agreements that account for 88% of gl
Slide 68: Colombian Economy
Colombian Economy HIGHLIGHTS1 COLOMBIAN Q1/25 GDP BY INDUSTRY2 GDP 2024: 1.6% GDP 2025F: 2.6% GDP 2026F: 2.8% 14.0% 4.7% 17.4% Arts & • Economic activity performance has been heterogeneous, as the informal sector Finance, Insurance, Wholesale, Retail Trade, Entertainment Accommodation & Food Service
Slide 69: Appendix 2: Canadian Economic Fundamentals
Appendix 2 Canadian Economic Fundamentals
Slide 70: Canada: Consumer and Business Activity
Canada: Consumer and Business Activity UNCERTAINTY SLOWS GDP GROWTH BUSINESS CONFIDENCE MOMENTUM1 CFIB BUSINESS BAROMETER2 80 index, > 50 = stronger 70 6-month moving average 60 Avg. 2011-present 50 3-month moving average 40 30 Headline index 20 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 KEY ECONO
Slide 71: Canada: Demographics and Housing Market
Canada: Demographics and Housing Market LOWER IMMIGRATION TARGETS TO SLOW POPULATION GROWTH STRONGEST OF G71 POPULATION GROWTH 2 HOUSING SUPPLY STILL TIGHT IN SOME CANADIAN RESIDENTIAL HOUSING INVENTORY3 KEY MARKETS, EASING IN OTHERS.4 12 months of inventory, SA Vancouver 18 units per 10,000 pop., 1
Slide 72: Canada: Growth in Household Credit
Canada: Growth in Household Credit HIGHLIGHTS • Household credit growth increased to 4.4% y/y for the rolling quarter ending in February 2025, maintaining the steady rising trend in credit growth recorded throughout 2024. • Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, au
Slide 73: Canada: Housing Finances
Canada: Housing Finances HOUSING AFFORDABILITY1 5-YEAR MORTGAGE RATES RESETTING HIGHER2 HIGHER HOME EQUITY IN CANADA3 CANADIAN MORTGAGE DELINQUENCIES STABLE4 1. Sources: Scotiabank Economics, Bank of Canada, Statistics Canada, Haver Analytics 2. Sources: Scotiabank Economics, Bank of Canada, CMHC, T
Slide 74: Canada: Household Finances
Canada: Household Finances CANADIAN HOUSEHOLDS’ EXCESS SAVINGS HOUSEHOLD SAVINGS RATE1 RELATIVE TO PRE-PANDEMIC1 RATIO OF HOUSEHOLD ASSETS TO LIABILITIES2 HOUSEHOLD DEBT-SERVICE RATIOS1 1. Sources: Scotiabank Economics, Statistics Canada 2. Sources: Statistics Canada, Federal Reserve Board 74
Slide 75: Appendix 3: Bail-in, TLAC, NVCC and LRCN
Appendix 3 Bail-in, TLAC, NVCC and LRCN
Slide 76: Canadian Bail-in Regulations: Key Features
Canadian Bail-in Regulations: Key Features APPROACH • Post September 23, 2018, prescribed shares and liabilities, including senior unsecured debt with original term >400 days, issued by Canadian D-SIBs are subject to bail-in conversion. Canadian bank term senior unsecured debt1 is a single class of
Slide 77: Canadian Bail-in Regulations: Jurisdictional Comparison
Canadian Bail-in Regulations: Jurisdictional Comparison LIQUIDATION1 RESOLUTION OTHER JURISDICTIONS Opco non- Holdco Instrument type Opco senior Opco senior Holdco senior Holdco senior preferred senior2 senior Pari passu with deposits and other Structural Structural Structural Contractual Ranking St
Slide 78: Summary of Bail-in / TLAC Regime
Summary of Bail-in / TLAC Regime Scope OSFI designated DSIBs Scope of bail-in Senior unsecured debt that is tradeable and transferable, original term >400 days, unsecured and issued, instruments originated or amended after September 23, 2018 Liabilities excluded Insured deposits, uninsured deposits1
Slide 79: Non-Viability Contingent Capital
Non-Viability Contingent Capital (“NVCC”) APPROACH • In order to qualify for inclusion in regulatory capital, all non-common Tier 1 and tier 2 capital instruments must be capable of absorbing losses at the point-of-non-viability of a financial institution • NVCC provisions dictate that upon occurren
Slide 80: LRCN Overview
LRCN Overview BNS LIMITED RECOURSE CAPITAL NOTES (“LRCN”) STRUCTURAL OVERVIEW 1 1 The Bank of Nova Scotia (Issuer) Proceeds • LRCNs issued directly by The Bank of Nova Scotia (“BNS”, “Scotiabank” Investors or the “Bank”) • Ongoing coupon payments are paid by BNS and derived from the Bank’s internal
Slide 81: BNS AT1 Capital Instrument Features
BNS AT1 Capital Instrument Features LRCN AT1 Notes Issuing Entity: The Bank of Nova Scotia The Bank of Nova Scotia Note / Note / Format / Denomination: C$1,000 or US$1,000 Par1 C$1,000 or US$1,000 Par Capital Treatment: Additional Tier 1 Additional Tier 1 Junior Subordinated Indebtedness (Pari-passu
Slide 82: Appendix 4: Covered Bonds
Appendix 4 Covered Bonds
Slide 83: Global Registered Covered Bond Program
Global Registered Covered Bond Program HIGHLIGHTS • Able to issue across multiple currencies such as CAD, USD, EUR, GBP, AUD, CHF and NOK • CAD $49.6 billion outstanding1 vs. $100 billion program size2 • Extensive regulatory oversight and pool audit requirements • Mandatory property value indexation
Slide 84: Global Registered Covered Bond Program
Global Registered Covered Bond Program1 LOAN-TO-VALUE RATIOS2 CREDIT SCORES3 75% 38% 28% 24% 0% 1% 2% 14% 7% 6% 4% <599 600-650 651-700 701-750 751-800 800+ 0-20% 20-40% 40-60% 60-80% 80+% REMAINING TERM DISTRIBUTION (MONTHS) PROVINCIAL DISTRIBUTION Ontario 60.2% Other 4 43% 2.8% $80Bn Saskatchewan
Slide 85: Canadian Legislative Covered Bonds
Canadian Legislative Covered Bonds CMHC REGISTERED • Canadian Registered Covered Bond Programs’ Legal Framework (Canadian National Housing Act) Issuance Framework • Canadian Registered Covered Bond Programs Guide issued by Canada Mortgage and Housing Corporation (CMHC) Eligible Assets • Uninsured lo
Slide 86: Appendix 5: Non-GAAP Measures
Appendix 5 Non-GAAP Measures
Slide 87: Non-GAAP Measures
Non-GAAP Measures The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accoun
Slide 88: Non-GAAP Measures
Non-GAAP Measures NON-GAAP DEFINITIONS (CONT’D) Pages 99- Net interest margin is a non-GAAP ratio that is used to measure the return generated by the Bank’s core earning assets, net of the cost of funding. Net interest margin (NIM) 100, 103- Net interest margin is calculated as core net interest inc
Slide 89: Non-GAAP – Adjusted Results and Diluted EPS
Non-GAAP – Adjusted Results and Diluted EPS $MM (unless indicated otherwise) Q2/25 Q1/25 Q2/24 Reported Results Total revenue 9,080 9,372 8,347 Provision for credit losses 1,398 1,162 1,007 Non-interest expenses 5,110 6,491 4,711 Income tax expense 540 726 537 Net income 2,032 993 2,092 Net income a
Slide 90: Non-GAAP – Business Line Earnings
Non-GAAP – Business Line Earnings Three months ending April 30, 2025 Three months ending January 31, 2025 Global Global Global Global Canadian International Canadian International $MM (unless indicated otherwise) Wealth Banking and Other Total Wealth Banking and Other Total Banking Banking Banking B
Slide 91: Non-GAAP – Business Line Earnings
Non-GAAP – Business Line Earnings Three months ending April 30, 2024 Global Global Canadian International $MM (unless indicated otherwise) Wealth Banking and Other Total Banking Banking Management Markets Reported Results Total revenue 3,184 2,960 1,371 1,232 (400) 8,347 Provision for credit losses
Slide 92: Non-GAAP – Adjusted Results and Diluted EPS
Non-GAAP – Adjusted Results and Diluted EPS Footnotes 1. These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software. These costs are recorded in non- interest expenses - depreciation and amortization for the Canadian Banking, Interna
Slide 93: Non-GAAP – Other Segment Adjusted Earnings
Non-GAAP – Other Segment Adjusted Earnings $MM Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Reported NIAEH (182) (465) (619) (1,341) (125) Divestitures and wind-down of operations1 - 90 - 1,355 20 2 Amortization of acquisition-related intangible assets - - - - 9 Restructuring charge and severance provisions3 - - 3
Slide 94: Non-GAAP – Business Line Return on Equity
Non-GAAP – Business Line Return on Equity International Global Wealth Global Banking Total Reported $MM (unless otherwise stated) Canadian Banking Other Total Banking Management and Markets (Adjusted) For the three months ended April 30, 2025 Net income attributable to common shareholders 613 676 39
Slide 95: Non-GAAP Reconciliations – Return on Equity
Non-GAAP Reconciliations – Return on Equity $MM (unless indicated otherwise) $MM (unless indicated otherwise) F23 F24 Return on equity F23 F24 Reported Results Canadian Banking Net income attributable to common shareholders 3,677 3,776 Total revenue 32,214 33,670 Total average common equity 18,846 2
Slide 96: Non-GAAP – Return on Tangible Common Equity
Non-GAAP – Return on Tangible Common Equity For the three months ended ($ millions) Q2/25 Q1/25 Q2/24 Reported Average common equity – Reported1 74,625 74,077 70,277 Average goodwill1,2 (9,962) (9,539) (9,065) Average acquisition-related intangibles (net of deferred tax)1 (3,586) (3,597) (3,635) Ave
Slide 97: Non-GAAP – International Banking Constant Dollar Basis
Non-GAAP – International Banking Constant Dollar Basis Reported Results For the three months ended ($MM) January 31, 2025 April 30, 2024 Foreign Constant Foreign Constant (Taxable equivalent basis) Reported exchange dollar Reported exchange dollar Net interest income $ 2,169 $ (34) $ 2,203 $ 2,254 $
Slide 98: Non-GAAP – International Banking Constant Dollar Basis
Non-GAAP – International Banking Constant Dollar Basis Reported Results For the three months ended ($MM) October 31, 2024 July 31, 2024 Foreign Constant Foreign Constant (Taxable equivalent basis) Reported exchange dollar Reported exchange dollar Net interest income $ 2,147 $ (64)$ 2,211$ 2,226 $ 6$
Slide 99: Non-GAAP - Net Interest Margin and Risk Adjusted Margin
Non-GAAP - Net Interest Margin and Risk Adjusted Margin $MM (unless specified otherwise) All-Bank Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 1 Average total assets 1,411,181 1,422,740 1,418,795 1,460,615 1,468,310 Less: Non-earning assets 108,405 105,539 106,621 115,155 118,403 Average total earning assets1 1,30
Slide 100: Non-GAAP - Net Interest Margin and Risk Adjusted Margin
Non-GAAP - Net Interest Margin and Risk Adjusted Margin $MM (unless specified otherwise) International Banking Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Average total assets1 234,305 232,609 223,525 228,877 229,118 Less: Non-earning assets 16,554 15,326 14,973 14,883 13,917 Average total earning assets1 217,751
Slide 101: Non-GAAP – All Bank Loan to Deposit Ratio
Non-GAAP – All Bank Loan to Deposit Ratio $Bn (unless indicated otherwise) Q2/24 Q1/25 Q2/25 Avg Loans & Acceptances Loans 744 765 760 Acceptances 14 - - Total 757 766 760 Avg Deposits Deposits from customers 902 920 924 Deposits from banks 49 47 43 Total Deposits 951 967 968 Less: Group Treasury Wh
Slide 102: Non-GAAP - International Banking
Non-GAAP - International Banking $Bn Reported Basis Reported Basis (Constant FX) International Business Banking Loans Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Investment Grade 35 33 32 31 30 36 34 33 32 30 Non-Investment Grade 55 56 54 55 54 57 57 56 55 54 $Bn Reported Basis Const
Slide 103: Non-GAAP - Mexico
Non-GAAP - Mexico $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Q2/24 Q1/25 Q2/25 Q2/24 Q1/25 Q2/25 Revenue 816 751 760 729 756 760 Expenses 448 395 401 400 398 401 Provision for Credit Losses 81 128 145 72 129 145 NIAEH 207 162 155 185 164 155 $MM (unless otherwise sp
Slide 104: Non-GAAP - Chile
Non-GAAP - Chile $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Q2/24 Q1/25 Q2/25 Q2/24 Q1/25 Q2/25 Revenue 590 608 651 627 630 651 Expenses 266 281 286 280 289 286 Provision for Credit Losses 153 192 168 162 199 168 NIAEH 137 109 172 148 115 172 $MM (unless otherwise s
Slide 105: Non-GAAP - Peru
Non-GAAP - Peru $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Q2/24 Q1/25 Q2/25 Q2/24 Q1/25 Q2/25 Revenue 424 500 422 451 508 422 Expenses 194 204 194 205 207 194 Provision for Credit Losses 128 112 80 138 114 80 NIAEH 80 148 145 86 151 145 $MM (unless otherwise specif
Slide 106: Non-GAAP - Colombia
Non-GAAP - Colombia $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Q2/24 Q1/25 Q2/25 Q2/24 Q1/25 Q2/25 Revenue 295 278 285 288 288 285 Expenses 199 186 178 194 193 178 Provision for Credit Losses 153 107 94 150 112 94 NIAEH (26) (6) 5 (25) (6) 5 $MM (unless otherwise sp
Slide 107: Non-GAAP - Caribbean
Non-GAAP - Caribbean $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, pre-provision profit Q2/24 Q1/25 Q2/25 Q2/24 Q1/25 Q2/25 Revenue 511 569 543 529 567 543 Expenses 257 292 280 263 292 280 Provision for Credit Losses 28 34 31 28 34 31 NIAEH 158 149 144 167 147
Slide 108: Non-GAAP – Central America
Non-GAAP – Central America $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, pre-provision profit Q2/24 Q1/25 Q2/25 Q2/24 Q1/25 Q2/25 Revenue 99 108 106 104 108 106 Expenses 76 83 76 80 83 76 Provision for Credit Losses 6 14 15 7 14 15 NIAEH 11 9 10 12 9 10 $MM (u
Slide 109: Non-GAAP – International Banking Return on Tangible Common Equity
Non-GAAP – International Banking Return on Tangible Common Equity Average Tangible Common Equity Attributed Capital Total Central Goodwill & Total International $MM Mexico Peru Chile Colombia Caribbean Other International America Intangibles Banking Banking Q2/25 3,914 2,170 4,432 847 1,942 786 1,17
Slide 110: Appendix 6: Other Financial Measures
Appendix 6 Other Financial Measures
Slide 111: Glossary – Other Financial Measures
Glossary – Other Financial Measures The ratio of period end total allowance for credit losses (excluding debt securities and deposits with financial institutions) divided by gross Allowance for Credit Losses (ACL) Ratio loans and acceptances. Assets administered by the Bank which are beneficially ow
Slide 112: Contact Information
Investor Relations Meny Grauman Rebecca Hoang Contact Senior Vice President Vice President Information meny.grauman@scotiabank.com rebecca.hoang@scotiabank.com Funding Martin Weeks Darren Potter EVP and Group Treasurer Managing Director martin.weeks@scotiabank.com darren.potter@scotiabank.com 112
The Bank of Nova Scotia — Q2 2025 Earnings Presentation on 6ix