Exhibit 99.1

Fourth Quarter 2021 Earnings Release

Scotiabank reports fourth quarter and 2021 results

Scotiabank’s 2021 audited annual consolidated financial statements and accompanying Management’s Discussion & Analysis (MD&A) are available at www.scotiabank.com along with the supplementary financial information and regulatory capital disclosure reports, which includes fourth quarter financial information. All amounts are in Canadian dollars and are based on our audited annual consolidated financial statements and accompanying MD&A for the year ended October 31, 2021 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.

Additional information related to the Bank, including the Bank’s Annual Information Form, can be found on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC’s website at www.sec.gov.

Fiscal 2021 Highlights on a Reported Basis (versus Fiscal 2020)

• Net income of $9,955 million, compared to $6,853 million

• Earnings per share (diluted) of $7.70, compared to $5.30

• Return on equity⁽¹⁾ of 14.7%, compared to 10.4%

• Annual common dividend per share of $3.60

Fiscal 2021 Highlights on an Adjusted Basis⁽²⁾ (versus Fiscal 2020)

• Net income of $10,169 million, compared to $6,961 million

• Earnings per share (diluted) of $7.87, compared to $5.36

• Return on equity of 15.0%, compared to 10.4%

Fourth Quarter 2021 Highlights on a Reported Basis (versus Q4, 2020)

• Net income of $2,559 million, compared to $1,899 million

• Earnings per share (diluted) of $1.97, compared to $1.42

• Return on equity of 14.8%, compared to 11.0%

• Quarterly dividend increase of 10 cents per common share to $1.00

Fourth Quarter 2021 Highlights on an Adjusted Basis⁽²⁾ (versus Q4, 2020)

• Net income of $2,716 million, compared to $1,938 million

• Earnings per share (diluted) of $2.10, compared to $1.45

• Return on equity of 15.6%, compared to 11.3%

Fiscal 2021 Performance versus Medium-Term Objectives

The following table provides a summary of our 2021 performance against our medium-term financial performance objectives:

Medium-Term Objectives	Fiscal 2021 Results
	Reported	Adjusted(2)
Diluted earnings per share growth of 7%+	45.3%	46.8%
Return on equity of 14%+	14.7%	15.0%
Achieve positive operating leverage	Positive 1.1%	Positive 1.5%
Maintain strong capital ratios	CET1 capital ratio(3) of 12.3%	CET1 capital ratio(3) of 12.3%

TORONTO, November 30, 2021 – Scotiabank reported net income of $9,955 million for the fiscal year 2021, compared with net income of $6,853 million in 2020. Diluted earnings per share (EPS) were $7.70, compared to $5.30 in the previous year. Return on equity was

14.7%, compared to 10.4% in the previous year.

Adjusted net income(2) was $10,169 million, up from $6,961 million in the previous year, and EPS was $7.87 versus $5.36 in the previous year.

Reported net income for the fourth quarter ended October 31, 2021 was $2,559 million compared to $1,899 million in the same period last year. Diluted earnings per share were $1.97, compared to $1.42 in the same period a year ago.

Adjusted net income(2) for the fourth quarter ended October 31, 2021 was $2,716 million and EPS was $2.10, up from $1.45 last year. Adjusted return on equity was 15.6% compared to 11.3% a year ago.

“We ended the year with strong fourth quarter earnings and exceeded our medium-term financial targets in fiscal 2021. Our diversified business model demonstrated its resilience through the pandemic, and the Bank is well positioned to achieve its full earnings power in the upcoming year. I am extremely proud of how the Scotiabank team supported our clients, customers and communities as they

⁽¹⁾  Refer to page 141 of the Management’s Discussion & Analysis in the Bank’s 2021 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

⁽²⁾  Refer to Non-GAAP Measures section on page 3.

⁽³⁾  This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018).

Scotiabank Fourth Quarter Press Release 2021    1

continued to navigate through the challenges of the pandemic, while also continuing to stay focused on creating long-term sustainable value for our shareholders. As we close out 2021, it is clear that our sharpened footprint and our significant investments in our digital capabilities have positioned the Bank for a very bright future,” said Brian Porter, President and CEO of Scotiabank. The Bank was also recently recognized for outstanding leadership in the Global Finance 2021 Sustainable Finance Awards for its efforts to support clients with industry-leading advice and expertise to help achieve strong business growth that is environmentally and socially responsible.

Canadian Banking generated adjusted earnings of $4,171 million in 2021, an increase of 60% compared to the prior year. The increase was due primarily to lower provision for credit losses and higher revenues driven by non-interest income and strong loan growth. During the year, Scotiabank received the #1 ranking in the J.D. Power 2021 Canada Online Banking Satisfaction Study for the second year in a row.

Global Wealth Management reported adjusted earnings of $1,592 million in 2021, up 23% compared to the prior year. The higher earnings were driven by strong results across both Canadian Advisory and Asset Management businesses.

Global Banking and Markets delivered another strong year with earnings of $2,075 million. This performance was driven by solid performance across the business, prudent expense management and lower provision for credit losses.

International Banking earnings improved through 2021 generating adjusted earnings of $1,855 million, an increase of 62% compared to the prior year. This was driven by strong commercial and secured lending loan growth, prudent expense management supported by accelerated customer adoption of digital channels and lower provision for loan losses, driven by improved credit outlook.

With a Common Equity Tier 1 capital ratio of 12.3% the Bank remains well capitalized to support its strategic growth plans and return capital back to shareholders. This quarter we announced a 10 cent increase in the quarterly dividend to $1.00 per common share, 11% higher than a year ago.

“As we look forward to 2022, we expect to deliver strong growth across all our business lines, with optionality and multiple avenues to grow,” said Brian Porter, President and CEO, Scotiabank.

2    Scotiabank Fourth Quarter Press Release 2021

Non-GAAP Measures

The Bank uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Bank believes that non-GAAP measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-GAAP measures are used throughout this press release and defined below.

Adjusted results and diluted earnings per share

The following table presents a reconciliation of GAAP Reported financial results to Non-GAAP Adjusted financial results. The financial results have been adjusted for the following:

1. Adjustments impacting current and prior periods:

A. Amortization of Acquisition-related intangible assets:

These costs relate to the amortization of intangibles recognized upon the acquisition of businesses and are recorded in the Canadian Banking, International Banking and Global Wealth Management operating segments.

B. Restructuring and other provisions, recorded in Q4, 2021:

The Bank recorded a restructuring charge of $126 million pre-tax, substantially related to International Banking for the cost of reducing branches and full time employees, driven by the accelerated customer adoption of digital channels and process automation. These efficiencies are a result of the Bank’s commitment to simplify processes and optimize distribution channels to run businesses more effectively while meeting changing customer needs. This charge was recorded in the Other operating segment.

The Bank recorded settlement and litigation provisions in the amount of $62 million pre-tax in the Other operating segment in connection with the Bank’s former metals business.

2. Adjustments impacting prior periods only:

A. Acquisition and divestiture-related amounts, which are defined as follows:

i. Acquisition-related integration costs – Includes costs that were incurred and related to integrating previously acquired businessess. These costs were recorded in the Canadian Banking, International Banking and Global Wealth Management operating segments. The costs relate to the following acquisitions:

• Banco Cencosud, Peru (closed Q2, 2019)

• Banco Dominicano del Progreso, Dominican Republic (closed Q2, 2019)

• MD Financial Management, Canada (closed Q4, 2018)

• Jarislowsky, Fraser Limited, Canada (closed Q3, 2018)

• Citibank consumer and small and medium enterprise operations, Colombia (closed Q3, 2018)

• BBVA, Chile (closed Q3, 2018)

ii. Net (gain)/loss on divestitures – The Bank announced a number of divestitures in accordance with its strategy to reposition the Bank. The net (gain)/loss on divestitures is recorded in the Other operating segment (refer to Note 37 of the Bank’s 2021 Annual Report to Shareholders for further details):

• Operations in British Virgin Islands (closed Q3, 2020)

• Equity-accounted investment in Thanachart Bank, Thailand (closed Q1, 2020)

• Colfondos AFP, Colombia (closed Q1, 2020)

• Operations in Puerto Rico and USVI (closed Q1, 2020)

• Insurance and banking operations in El Salvador (closed Q1, 2020)

• Banking operations in the Caribbean: Anguilla, Dominica, Grenada, St. Kitts & Nevis, St. Lucia, St. Maarten, St. Vincent & the Grenadines (closed Q4, 2019)

• Insurance and pension operations in the Dominican Republic (closed Q2, 2019)

iii. Day 1 provision for credit losses on acquired performing financial instruments, as required by IFRS 9. The accounting standard does not differentiate between originated and purchased performing loans and as such, requires the same accounting treatment for both. These credit losses are considered Acquisition-related costs in periods where applicable and are recorded in the International Banking segment. The provision for 2019 relates to Banco Cencosud, Peru and Banco Dominicano del Progreso, Dominican Republic.

B. Valuation-related adjustments, recorded in Q1, 2020:

The Bank modified its allowance for credit losses measurement methodology by adding an additional, more severe pessimistic scenario, consistent with developing practice among major international banks in applying IFRS 9, and the Bank’s prudent approach to expected credit loss provisioning. The modification resulted in an increase in provision for credit losses of $155 million which was recorded in Canadian Banking, International Banking, Global Wealth Management and Global Banking and Markets operating segments. The Bank enhanced its fair value methodology primarily relating to uncollateralized OTC derivatives which resulted in a pre-tax charge of $116 million. This charge was recorded in the Global Banking and Markets and Other operating segments. The Bank also recorded an impairment loss in the Other operating segment of $44 million pre-tax, related to one software asset.

Scotiabank Fourth Quarter Press Release 2021    3

Reconciliation of reported and adjusted results and diluted earnings per share

	For the three months ended									For the year ended
($ millions)	October 31 2021			July 31 2021			October 31 2020			October 31 2021			October 31 2020
Reported Results
Net interest income	$	4,217		$	4,217		$	4,258		$	16,961		$	17,320
Non-interest income		3,470			3,540			3,247			14,291			14,016
Total Revenue		7,687			7,757			7,505			31,252			31,336
Provision for credit losses		168			380			1,131			1,808			6,084
Non-interest expenses		4,271			4,097			4,057			16,618			16,856
Income before taxes		3,248			3,280			2,317			12,826			8,396
Income tax expense		689			738			418			2,871			1,543
Net income	$	2,559		$	2,542		$	1,899		$	9,955		$	6,853
Net income attributable to non-controlling interests in subsidiaries (NCI)		70			81			72			331			75
Net income attributable to equity holders	$	2,489		$	2,461		$	1,827		$	9,624		$	6,778
Preferred shareholders and other equity instrument holders		78			35			82			233			196
Net income attributable to common shareholders	$	2,411		$	2,426		$	1,745		$	9,391		$	6,582
Diluted earnings per share (in dollars)	$	1.97		$	1.99		$	1.42		$	7.70		$	5.30
Adjustments
Amortization of Acquisition-related intangible assets, excluding software(1)	$	25		$	24		$	26		$	103		$	106
Restructuring and other provisions(1)		188			—			—			188			—
Acquisition-related integration costs(1)		—			—			20			—			177
Net (gain)/loss on divestitures(2)		—			—			8			—			(298	)
Allowance for credit losses - Additional scenario(3)		—			—			—			—			155
Derivatives valuation adjustment(4)		—			—			—			—			116
Impairment charge on software asset(1)		—			—			—			—			44
Adjustments (Pre-tax)		213			24			54			291			300
Income tax expense/(benefit)		(56	)		(6	)		(15	)		(77	)		(192	)
Adjustments (After tax)		157			18			39			214			108
Adjustment attributable to NCI		(10	)		—			—			(10	)		(60	)
Adjustments (After tax and NCI)	$	147		$	18		$	39		$	204		$	48
Adjusted Results
Net interest income	$	4,217		$	4,217		$	4,258		$	16,961		$	17,320
Non-interest income		3,470			3,540			3,247			14,291			13,819
Total revenue		7,687			7,757			7,505			31,252			31,139
Provision for credit losses		168			380			1,131			1,808			5,929
Non-interest expenses		4,058			4,073			4,003			16,327			16,514
Income before taxes		3,461			3,304			2,371			13,117			8,696
Income tax expense		745			744			433			2,948			1,735
Net income	$	2,716		$	2,560		$	1,938		$	10,169		$	6,961
Net income attributable to NCI		80			81			72			341			135
Net income attributable to equity holders	$	2,636		$	2,479		$	1,866		$	9,828		$	6,826
Preferred shareholders and other equity instrument holders		78			35			82			233			196
Net income attributable to common shareholders	$	2,558		$	2,444		$	1,784		$	9,595		$	6,630
Adjusted diluted earnings per share
Adjusted net income attributable to common shareholders		2,558			2,444			1,784			9,595			6,630
Dilutive impact of share-based payment options and others		7			9			21			48			38
Adjusted net income attributable to common shareholders (diluted)	$	2,565		$	2,453		$	1,805		$	9,643		$	6,668
Weighted average number of basic common shares outstanding (millions)		1,215			1,215			1,211			1,214			1,212
Dilutive impact of share-based payment options and others (millions)		9			8			35			11			31
Adjusted weighted average number of diluted common shares outstanding (millions)		1,224			1,223			1,246			1,225			1,243
Adjusted diluted earnings per share (in dollars)(5)	$	2.10		$	2.01		$	1.45		$	7.87		$	5.36
Impact of adjustments on diluted earnings per share (in dollars)	$	0.13		$	0.02		$	0.03		$	0.17		$	0.06

(1) Recorded in non-interest expenses.

(2) (Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.

(3) Recorded in provision for credit losses.

(4) Recorded in non-interest income.

(5) Earnings per share calculations are based on full dollar and share amounts.

4    Scotiabank Fourth Quarter Press Release 2021

Reconciliation of reported and adjusted results by business line

	For the three months ended October 31, 2021(1)
($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Reported Results
Net interest income	$	2,082		$	1,589		$	161		$	365		$	20		$	4,217
Non-interest income		749			728			1,186			812			(5	)		3,470
Total Revenue		2,831			2,317			1,347			1,177			15			7,687
Provision for credit losses		(96	)		314			1			(50	)		(1	)		168
Non-interest expenses		1,251			1,259			824			591			346			4,271
Income before taxes		1,676			744			522			636			(330	)		3,248
Income tax expense		438			137			135			134			(155	)		689
Net income	$	1,238		$	607		$	387		$	502		$	(175	)	$	2,559
Net income attributable to non-controlling interests in subsidiaries (NCI)		—			79			2			—			(11	)		70
Net income attributable to equity holders	$	1,238		$	528		$	385		$	502		$	(164	)	$	2,489
Adjustments
Amortization of Acquisition-related intangible assets, excluding software(2)	$	6		$	10		$	9		$	—		$	—		$	25
Restructuring and other provisions(2)		—			—			—			—			188			188
Adjustments (Pre-tax)		6			10			9			—			188			213
Income tax expense/(benefit)		(2	)		(3	)		(2	)		—			(49	)		(56	)
Adjustments (After tax)		4			7			7			—			139			157
Adjustment attributable to NCI		—			—			—			—			(10	)		(10	)
Adjustments (After tax and NCI)	$	4		$	7		$	7		$	—		$	129		$	147
Adjusted Results
Net interest income	$	2,082		$	1,589		$	161		$	365		$	20		$	4,217
Non-interest income		749			728			1,186			812			(5	)		3,470
Total revenue		2,831			2,317			1,347			1,177			15			7,687
Provision for credit losses		(96	)		314			1			(50	)		(1	)		168
Non-interest expenses		1,245			1,249			815			591			158			4,058
Income before taxes		1,682			754			531			636			(142	)		3,461
Income tax expense		440			140			137			134			(106	)		745
Net income	$	1,242		$	614		$	394		$	502		$	(36	)	$	2,716
Net income attributable to NCI		—			79			2			—			(1	)		80
Net income attributable to equity holders	$	1,242		$	535		$	392		$	502		$	(35	)	$	2,636

(1) Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

Scotiabank Fourth Quarter Press Release 2021    5

Reconciliation of reported and adjusted results by business line

				For the three months ended July 31, 2021(1)
($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Reported Results
Net interest income	$	2,030		$	1,586		$	160		$	363		$	78		$	4,217
Non-interest income		765			776			1,175			890			(66	)		3,540
Total Revenue		2,795			2,362			1,335			1,253			12			7,757
Provision for credit losses		69			339			(1	)		(27	)		—			380
Non-interest expenses		1,267			1,299			812			620			99			4,097
Income before taxes		1,459			724			524			660			(87	)		3,280
Income tax expense		380			160			132			147			(81	)		738
Net income	$	1,079		$	564		$	392		$	513		$	(6	)	$	2,542
Net income attributable to non-controlling interests in subsidiaries (NCI)		—			78			2			—			1			81
Net income attributable to equity holders	$	1,079		$	486		$	390		$	513		$	(7	)	$	2,461
Adjustments
Amortization of Acquisition-related intangible assets, excluding software(2)	$	5		$	11		$	8		$	—		$	—		$	24
Adjustments (Pre-tax)		5			11			8			—			—			24
Income tax expense/(benefit)		(1	)		(4	)		(1	)		—			—			(6	)
Adjustments (After tax)		4			7			7			—			—			18
Adjustment attributable to NCI		—			—			—			—			—			—
Adjustments (After tax and NCI)	$	4		$	7		$	7		$	—		$	—		$	18
Adjusted Results
Net interest income	$	2,030		$	1,586		$	160		$	363		$	78		$	4,217
Non-interest income		765			776			1,175			890			(66	)		3,540
Total revenue		2,795			2,362			1,335			1,253			12			7,757
Provision for credit losses		69			339			(1	)		(27	)		—			380
Non-interest expenses		1,262			1,288			804			620			99			4,073
Income before taxes		1,464			735			532			660			(87	)		3,304
Income tax expense		381			164			133			147			(81	)		744
Net income	$	1,083		$	571		$	399		$	513		$	(6	)	$	2,560
Net income attributable to NCI		—			78			2			—			1			81
Net income attributable to equity holders	$	1,083		$	493		$	397		$	513		$	(7	)	$	2,479

(1) Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

6    Scotiabank Fourth Quarter Press Release 2021

Reconciliation of reported and adjusted results by business line

				For the three months ended October 31, 2020(1)
($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets		Other			Total
Reported Results
Net interest income	$	1,954		$	1,785		$	144		$	350	$	25		$	4,258
Non-interest income		612			763			1,021			860		(9	)		3,247
Total Revenue		2,566			2,548			1,165			1,210		16			7,505
Provision for credit losses		330			736			3			62		—			1,131
Non-interest expenses		1,186			1,424			726			583		138			4,057
Income before taxes		1,050			388			436			565		(122	)		2,317
Income tax expense		272			55			111			105		(125	)		418
Net income	$	778		$	333		$	325		$	460	$	3		$	1,899
Net income attributable to non-controlling interests in subsidiaries (NCI)		—			70			2			—		—			72
Net income attributable to equity holders	$	778		$	263		$	323		$	460	$	3		$	1,827
Adjustments
Amortization of Acquisition-related intangible assets, excluding software(2)	$	6		$	11		$	9		$	—	$	—		$	26
Acquisition-related integration costs(2)		—			16			4			—		—			20
Net (gain)/loss on divestitures(3)		—			—			—			—		8			8
Adjustments (Pre-tax)		6			27			13			—		8			54
Income tax expense/(benefit)		(2	)		(7	)		(3	)		—		(3	)		(15	)
Adjustments (After tax)		4			20			10			—		5			39
Adjustment attributable to NCI		—			—			—			—		—			—
Adjustments (After tax and NCI)	$	4		$	20		$	10		$	—	$	5		$	39
Adjusted Results
Net interest income	$	1,954		$	1,785		$	144		$	350	$	25		$	4,258
Non-interest income		612			763			1,021			860		(9	)		3,247
Total revenue		2,566			2,548			1,165			1,210		16			7,505
Provision for credit losses		330			736			3			62		—			1,131
Non-interest expenses		1,180			1,397			713			583		130			4,003
Income before taxes		1,056			415			449			565		(114	)		2,371
Income tax expense		274			62			114			105		(122	)		433
Net income	$	782		$	353		$	335		$	460	$	8		$	1,938
Net income attributable to NCI		—			70			2			—		—			72
Net income attributable to equity holders	$	782		$	283		$	333		$	460	$	8		$	1,866

(1) Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

(3) (Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.

Scotiabank Fourth Quarter Press Release 2021    7

Reconciliation of reported and adjusted results by business line

				For the year ended October 31, 2021(1)
($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Reported Results
Net interest income	$	8,030		$	6,625		$	628		$	1,436		$	242		$	16,961
Non-interest income		2,868			2,993			4,752			3,587			91			14,291
Total Revenue		10,898			9,618			5,380			5,023			333			31,252
Provision for credit losses		333			1,574			2			(100	)		(1	)		1,808
Non-interest expenses		4,951			5,254			3,255			2,458			700			16,618
Income before taxes		5,614			2,790			2,123			2,665			(366	)		12,826
Income tax expense		1,459			635			549			590			(362	)		2,871
Net income	$	4,155		$	2,155		$	1,574		$	2,075		$	(4	)	$	9,955
Net income attributable to non-controlling interests in subsidiaries (NCI)		—			332			9			—			(10	)		331
Net income attributable to equity holders	$	4,155		$	1,823		$	1,565		$	2,075		$	6		$	9,624
Adjustments
Amortization of Acquisition-related intangible assets, excluding software(2)	$	22		$	45		$	36		$	—		$	—		$	103
Restructuring and other provisions(2)		—			—			—			—			188			188
Adjustments (Pre-tax)		22			45			36			—			188			291
Income tax expense/(benefit)		(6	)		(13	)		(9	)		—			(49	)		(77	)
Adjustments (After tax)		16			32			27			—			139			214
Adjustment attributable to NCI		—			—			—			—			(10	)		(10	)
Adjustments (After tax and NCI)	$	16		$	32		$	27		$	—		$	129		$	204
Adjusted Results
Net interest income	$	8,030		$	6,625		$	628		$	1,436		$	242		$	16,961
Non-interest income		2,868			2,993			4,752			3,587			91			14,291
Total revenue		10,898			9,618			5,380			5,023			333			31,252
Provision for credit losses		333			1,574			2			(100	)		(1	)		1,808
Non-interest expenses		4,929			5,209			3,219			2,458			512			16,327
Income before taxes		5,636			2,835			2,159			2,665			(178	)		13,117
Income tax expense		1,465			648			558			590			(313	)		2,948
Net income	$	4,171		$	2,187		$	1,601		$	2,075		$	135		$	10,169
Net income attributable to NCI		—			332			9			—			—			341
Net income attributable to equity holders	$	4,171		$	1,855		$	1,592		$	2,075		$	135		$	9,828

(1) Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

8    Scotiabank Fourth Quarter Press Release 2021

Reconciliation of reported and adjusted results by business line

				For the year ended October 31, 2020(1)
($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Reported Results
Net interest income	$	7,838		$	7,603		$	575		$	1,435		$	(131	)	$	17,320
Non-interest income		2,461			3,207			4,009			3,947			392			14,016
Total Revenue		10,299			10,810			4,584			5,382			261			31,336
Provision for credit losses		2,073			3,613			7			390			1			6,084
Non-interest expenses		4,811			5,943			2,878			2,473			751			16,856
Income before taxes		3,415			1,254			1,699			2,519			(491	)		8,396
Income tax expense		879			182			437			564			(519	)		1,543
Net income	$	2,536		$	1,072		$	1,262		$	1,955		$	28		$	6,853
Net income attributable to non-controlling interests in subsidiaries (NCI)		—			92			10			—			(27	)		75
Net income attributable to equity holders	$	2,536		$	980		$	1,252		$	1,955		$	55		$	6,778
Adjustments
Amortization of Acquisition-related intangible assets, excluding software(2)	$	22		$	47		$	37		$	—		$	—		$	106
Acquisition-related integration costs(2)		—			154			23			—			—			177
Net (gain)/loss on divestitures(3)		—			—			—			—			(298	)		(298	)
Allowance for credit losses—Additional scenario(4)		71			77			1			6			—			155
Derivatives valuation adjustment(5)		—			—			—			102			14			116
Impairment charge on software asset(2)		—			—			—			—			44			44
Adjustments (Pre-tax)		93			278			61			108			(240	)		300
Income tax expense/(benefit)		(25	)		(78	)		(16	)		(29	)		(44	)		(192	)
Adjustments (After tax)		68			200			45			79			(284	)		108
Adjustment attributable to NCI		—			(32	)		—			—			(28	)		(60	)
Adjustments (After tax and NCI)	$	68		$	168		$	45		$	79		$	(312	)	$	48
Adjusted Results
Net interest income	$	7,838		$	7,603		$	575		$	1,435		$	(131	)	$	17,320
Non-interest income		2,461			3,207			4,009			4,049			93			13,819
Total revenue		10,299			10,810			4,584			5,484			(38	)		31,139
Provision for credit losses		2,002			3,536			6			384			1			5,929
Non-interest expenses		4,789			5,742			2,818			2,473			692			16,514
Income before taxes		3,508			1,532			1,760			2,627			(731	)		8,696
Income tax expense		904			260			453			593			(475	)		1,735
Net income	$	2,604		$	1,272		$	1,307		$	2,034		$	(256	)	$	6,961
Net income attributable to NCI		—			124			10			—			1			135
Net income attributable to equity holders	$	2,604		$	1,148		$	1,297		$	2,034		$	(257	)	$	6,826

(1) Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

(3) (Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.

(4) Recorded in provision for credit losses.

(5) Recorded in non-interest income.

Scotiabank Fourth Quarter Press Release 2021    9

Reconciliation of International Banking’s reported and adjusted results and constant dollar results

International Banking business segment results are analyzed on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported and adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers in assessing ongoing business performance. The tables below are computed on a basis that is different than the table “Impact of foreign currency translation” on page 16.

					For the three months ended								For the year ended
($ millions)			July 31, 2021				October 31, 2020						October 31, 2020
(Taxable equivalent basis)	Reported		Foreign exchange		Constant dollar		Reported		Foreign exchange		Constant dollar		Reported		Foreign exchange		Constant dollar
Net interest income	$	1,586	$	11	$	1,575	$	1,785	$	117	$	1,668	$	7,603	$	543	$	7,060
Non-interest income		776		6		770		763		40		723		3,207		192		3,015
Total revenue		2,362		17		2,345		2,548		157		2,391		10,810		735		10,075
Provision for credit losses		339		4		335		736		62		674		3,613		244		3,369
Non-interest expenses		1,299		4		1,295		1,424		66		1,358		5,943		340		5,603
Income tax expense		160		1		159		55		4		51		182		23		159
Net income	$	564	$	8	$	556	$	333	$	25	$	308	$	1,072	$	128	$	944
Net income attributable to non-controlling interest in subsidiaries	$	78	$	2	$	76	$	70	$	6	$	64	$	92	$	5	$	87
Net income attributable to equity holders of the Bank	$	486	$	6	$	480	$	263	$	19	$	244	$	980	$	123	$	857
Other measures
Average assets ($ billions)	$	191	$	2	$	189	$	202	$	11	$	191	$	206	$	12	$	194
Average liabilities ($ billions)	$	146	$	1	$	145	$	153	$	8	$	145	$	155	$	8	$	147
					For the three months ended								For the year ended
($ millions)			July 31, 2021				October 31, 2020						October 31, 2020
(Taxable equivalent basis)	Adjusted		Foreign exchange		Constant dollar adjusted		Adjusted		Foreign exchange		Constant dollar adjusted		Adjusted		Foreign exchange		Constant dollar adjusted
Net interest income	$	1,586	$	11	$	1,575	$	1,785	$	117	$	1,668	$	7,603	$	543	$	7,060
Non-interest income		776		6		770		763		40		723		3,207		192		3,015
Total revenue		2,362		17		2,345		2,548		157		2,391		10,810		735		10,075
Provision for credit losses		339		4		335		736		62		674		3,536		239		3,297
Non-interest expenses		1,288		3		1,285		1,397		64		1,333		5,742		328		5,414
Income tax expense		164		3		161		62		5		57		260		29		231
Net income	$	571	$	7	$	564	$	353	$	26	$	327	$	1,272	$	139	$	1,133
Net income attributable to non-controlling interest in subsidiaries	$	78	$	2	$	76	$	70	$	6	$	64	$	124	$	7	$	117
Net income attributable to equity holders of the Bank	$	493	$	5	$	488	$	283	$	20	$	263	$	1,148	$	132	$	1,016

10    Scotiabank Fourth Quarter Press Release 2021

Earning assets

Earning assets are defined as income generating assets which include interest-bearing deposits with financial institutions, trading assets, investment securities, investment in associates, securities borrowed or purchased under resale agreements, loans net of allowances, and customers’ liability under acceptances.

Non-earning assets

Non-earning assets are defined as cash and non-interest bearing deposits with financial institutions, precious metals, derivative financial instruments, property and equipment, goodwill and other intangible assets, deferred tax assets and other assets.

Core earning assets

Core earning assets are defined as earning assets excluding investments in associates, customers’ liability under acceptances, and trading assets, securities borrowed or purchased under resale agreements and other assets related to capital markets businesses.

Core net interest income

Core net interest income is defined as net interest income earned from core earning assets.

Net Interest Margin

Net interest margin is calculated as core net interest income for the business line divided by average core earning assets.

Average earning assets, average total assets, average core earning assets and net interest margin by business line

For the three months ended October 31, 2021 ($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Deposits with financial institutions	$	160		$	14,895		$	691		$	198		$	60,691		$	76,635
Trading assets		—			5,981			12			136,525			2,183			144,701
Securities purchased under resale agreements and securities borrowed		—			2,342			—			119,297			1			121,640
Investment securities including investments in associates		1,136			15,816			292			5,806			57,825			80,875
Net loans and acceptances		392,745			137,622			19,042			110,179			(3,868	)		655,720
Total earning assets	$	394,041		$	176,656		$	20,037		$	372,005		$	116,832		$	1,079,571
Non-earning assets		4,100			15,563			10,440			36,522			26,511			93,136
Total assets	$	398,141		$	192,219		$	30,477		$	408,527		$	143,343		$	1,172,707
Total earning assets		394,041			176,656			20,037			372,005			116,832			1,079,571
Less:
Investments in associates		814			1,669			—			—			64			2,547
Trading assets		—			5,453			—			136,311			2,182			143,946
Securities purchased under resale agreements and securities borrowed		—			—			—			119,195			—			119,195
Customers’ liability under acceptances		17,966			60			4,551			10,660			(15,035	)		18,202
Other deductions		—			237			—			23,242			11,152			34,631
Core earning assets	$	375,261		$	169,237		$	15,486		$	82,597		$	118,469		$	761,050
Net interest margin
Net interest income		2,082			1,589			161			365			20			4,217
Less: Non-core net interest income		—			15			—			35			—			50
Core net interest income	$	2,082		$	1,574		$	161		$	330		$	20		$	4,167
Net interest margin		2.20	%		3.69	%		4.13	%		1.59	%		nm	(1)		2.17	%

(1) Not meaningful

Scotiabank Fourth Quarter Press Release 2021    11

Average earning assets, average total assets, average core earning assets and net interest margin by business line

For the three months ended July 31, 2021 ($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Deposits with financial institutions	$	140		$	15,897		$	699		$	392		$	56,088		$	73,216
Trading assets		—			6,495			17			134,922			1,789			143,223
Securities purchased under resale agreements and securities borrowed		—			3,422			—			117,347			10			120,779
Investment securities including investments in associates		1,098			16,511			298			5,828			62,107			85,842
Net loans and acceptances		378,590			134,232			17,999			106,710			(4,783	)		632,748
Total earning assets	$	379,828		$	176,557		$	19,013		$	365,199		$	115,211		$	1,055,808
Non-earning assets		4,090			14,141			10,466			35,718			27,874			92,289
Total assets	$	383,918		$	190,698		$	29,479		$	400,917		$	143,085		$	1,148,097
Total earning assets		379,828			176,557			19,013			365,199			115,211			1,055,808
Less:
Investments in associates		799			1,611			—			—			68			2,478
Trading assets		—			6,007			—			134,665			1,788			142,460
Securities purchased under resale agreements and securities borrowed		—			—			—			117,271			—			117,271
Customers’ liability under acceptances		17,394			46			4,329			10,248			(15,610	)		16,407
Other deductions		—			871			—			23,499			10,801			35,171
Core earning assets	$	361,635		$	168,022		$	14,684		$	79,516		$	118,164		$	742,021
Net interest margin
Net interest income		2,030			1,586			160			363			78			4,217
Less: Non-core net interest income		—			12			—			36			—			48
Core net interest income	$	2,030		$	1,574		$	160		$	327		$	78		$	4,169
Net interest margin		2.23	%		3.72	%		4.32	%		1.63	%		nm	(1)		2.23	%

(1) Not meaningful

For the three months ended October 31, 2020 ($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Deposits with financial institutions	$	140		$	18,547		$	920		$	1,552		$	40,933		$	62,092
Trading assets		—			5,393			10			112,183			2,315			119,901
Securities purchased under resale agreements and securities borrowed		—			3,134			—			117,897			—			121,031
Investment securities including investments in associates		1,013			16,419			262			6,300			94,132			118,126
Net loans and acceptances		357,450			141,610			14,965			108,929			(3,949	)		619,005
Total earning assets	$	358,603		$	185,103		$	16,157		$	346,861		$	133,431		$	1,040,155
Non-earning assets		4,157			16,911			10,563			41,646			26,717			99,994
Total assets	$	362,760		$	202,014		$	26,720		$	388,507		$	160,148		$	1,140,149
Total earning assets		358,603			185,103			16,157			346,861			133,431			1,040,155
Less:
Investments in associates		730			1,612			—			—			66			2,408
Trading assets		—			4,704			—			111,854			2,314			118,872
Securities purchased under resale agreements and securities borrowed		—			—			—			117,858			—			117,858
Customers’ liability under acceptances		14,330			45			3,158			10,464			(13,565	)		14,432
Other deductions		—			644			—			20,469			9,476			30,589
Core earning assets	$	343,543		$	178,098		$	12,999		$	86,216		$	135,140		$	755,996
Net interest margin
Net interest income		1,954			1,785			144			350			25			4,258
Less: Non-core net interest income		—			8			—			33			—			41
Core net interest income	$	1,954		$	1,777		$	144		$	317		$	25		$	4,217
Net interest margin		2.26	%		3.97	%		4.41	%		1.46	%		nm	(1)		2.22	%

(1) Not meaningful

12    Scotiabank Fourth Quarter Press Release 2021

Average earning assets, average total assets, average core earning assets and net interest margin by business line

For the year ended October 31, 2021 ($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Deposits with financial institutions	$	146		$	16,014		$	742		$	237		$	58,423		$	75,562
Trading assets		—			6,352			14			134,639			1,850			142,855
Securities purchased under resale agreements and securities borrowed		—			2,919			—			116,896			3			119,818
Investment securities including investments in associates		1,080			16,500			302			6,097			68,229			92,208
Net loans and acceptances		375,444			137,121			17,420			106,020			(4,143	)		631,862
Total earning assets	$	376,670		$	178,906		$	18,478		$	363,889		$	124,362		$	1,062,305
Non-earning assets		4,102			15,218			10,487			37,020			28,081			94,908
Total assets	$	380,772		$	194,124		$	28,965		$	400,909		$	152,443		$	1,157,213
Total earning assets		376,670			178,906			18,478			363,889			124,362			1,062,305
Less:
Investments in associates		783			1,646			—			—			62			2,491
Trading assets		—			5,812			—			134,372			1,849			142,033
Securities purchased under resale agreements and securities borrowed		—			—			—			116,829			—			116,829
Customers’ liability under acceptances		16,599			42			4,077			10,413			(14,679	)		16,452
Other deductions		—			642			—			21,681			10,484			32,807
Core earning assets	$	359,288		$	170,764		$	14,401		$	80,594		$	126,646		$	751,693
Net interest margin
Net interest income		8,030			6,625			628			1,436			242			16,961
Less: Non-core net interest income		—			50			—			138			2			190
Core net interest income	$	8,030		$	6,575		$	628		$	1,298		$	240		$	16,771
Net interest margin		2.23	%		3.85	%		4.36	%		1.61	%		nm	(1)		2.23	%

(1) Not meaningful

For the year ended October 31, 2020 ($ millions)	Canadian Banking			International Banking			Global Wealth Management			Global Banking and Markets			Other			Total
Deposits with financial institutions	$	153		$	17,790		$	1,009		$	956		$	46,056		$	65,964
Trading assets		—			4,852			17			119,637			3,614			128,120
Securities purchased under resale agreements and securities borrowed		—			2,412			—			125,741			136			128,289
Investment securities including investments in associates		976			15,573			300			5,730			82,504			105,083
Net loans and acceptances		353,540			147,681			14,109			114,265			(3,957	)		625,638
Total earning assets	$	354,669		$	188,308		$	15,435		$	366,329		$	128,353		$	1,053,094
Non-earning assets		4,101			18,074			10,601			45,796			28,918			107,490
Total assets	$	358,770		$	206,382		$	26,036		$	412,125		$	157,271		$	1,160,584
Total earning assets		354,669			188,308			15,435			366,329			128,353			1,053,094
Less:
Investments in associates		713			1,868			—			—			87			2,668
Trading assets		—			4,399			—			119,395			1,113			124,907
Securities purchased under resale agreements and securities borrowed		—			—			—			125,701			—			125,701
Customers’ liability under acceptances		13,584			42			2,748			10,669			(10,996	)		16,047
Other deductions		—			1,194			—			18,296			7,294			26,784
Core earning assets	$	340,372		$	180,805		$	12,687		$	92,268		$	130,855		$	756,987
Net interest margin
Net interest income		7,838			7,603			575			1,435			(131	)		17,320
Less: Non-core net interest income		—			39			—			78			5			122
Core net interest income	$	7,838		$	7,564		$	575		$	1,357		$	(136	)	$	17,198
Net interest margin		2.30	%		4.18	%		4.53	%		1.47	%		nm	(1)		2.27	%

(1) Not meaningful

Scotiabank Fourth Quarter Press Release 2021    13

Return on equity

Return on equity is a profitability measure that presents the net income attributable to common shareholders as a percentage of average common shareholders’ equity.

The Bank attributes capital to its business lines on a basis that approximates 10.5% of Basel III common equity capital requirements which includes credit, market and operational risks and leverage inherent within each business segment.

Return on equity for the business segments is calculated as a ratio of net income attributable to common shareholders of the business segment and the capital attributed.

Adjusted return on equity represents adjusted net income attributable to common shareholders as a percentage of adjusted average common shareholders’ equity.

Productivity ratio

Management uses the productivity ratio as a measure of the Bank’s efficiency. This ratio represents operating expenses as a percentage of total revenue. A lower ratio indicates improved productivity.

Adjusted productivity ratio represents adjusted operating expenses as a percentage of adjusted total revenue.

Operating leverage

This financial metric measures the rate of growth in total revenue less the rate of growth in operating expenses.

Adjusted operating leverage represents the rate of growth in adjusted total revenue less the rate of growth in adjusted operating expenses.

Provision for credit losses as a % of average net loans and acceptances

The ratio represents provision for credit losses (PCL) expressed as a % of average net loans and acceptances.

Adjusted provision for credit losses as a % of average net loans and acceptances represents adjusted PCL expressed as a % of average net loans and acceptances.

Effective tax rate

The effective tax rate is the overall tax rate paid by the Bank on its earned income. The effective tax rate is calculated by dividing the Bank’s income tax expenses by the income before taxes.

Adjusted effective tax rate is calculated by dividing adjusted income tax expenses by the adjusted income before taxes.

Taxable equivalent basis

The Bank analyzes its trading-related revenue on a taxable equivalent basis (TEB). This methodology grosses up tax-exempt income earned on certain securities reported in either net interest income or non-interest income to an equivalent before tax basis. Management believes that this basis for measurement provides a uniform comparability of net interest income and non-interest income arising from both taxable and non-taxable sources and facilitates a consistent basis of measurement. While other banks also use TEB, their methodology may not be comparable to the Bank’s methodology.

14    Scotiabank Fourth Quarter Press Release 2021

Financial Highlights

	As at and for the three months ended						As at and for the year ended
	October 31 2021		July 31 2021		October 31 2020		October 31 2021		October 31 2020
Operating results ($ millions)
Net interest income		4,217		4,217		4,258		16,961		17,320
Non-interest income		3,470		3,540		3,247		14,291		14,016
Total revenue		7,687		7,757		7,505		31,252		31,336
Provision for credit losses		168		380		1,131		1,808		6,084
Non-interest expenses		4,271		4,097		4,057		16,618		16,856
Income tax expense		689		738		418		2,871		1,543
Net income		2,559		2,542		1,899		9,955		6,853
Net income attributable to common shareholders of the Bank		2,411		2,426		1,745		9,391		6,582
Operating performance
Basic earnings per share ($)		1.98		2.00		1.44		7.74		5.43
Diluted earnings per share ($)		1.97		1.99		1.42		7.70		5.30
Return on equity (%)(1)		14.8		15.0		11.0		14.7		10.4
Productivity ratio (%)(1)		55.6		52.8		54.1		53.2		53.8
Operating leverage (%)(1)								1.1		0.3
Net interest margin (%)(2)		2.17		2.23		2.22		2.23		2.27
Financial position information ($ millions)
Cash and deposits with financial institutions		86,323		75,881		76,460
Trading assets		146,312		141,120		117,839
Loans		636,986		627,749		603,263
Total assets		1,184,844		1,163,429		1,136,466
Deposits		797,259		794,386		750,838
Common equity		64,750		64,720		62,819
Preferred shares and other equity instruments		6,052		5,299		5,308
Assets under administration(1)(3)		652,924		636,424		556,916
Assets under management(1)(3)		345,762		340,853		289,839
Capital and liquidity measures
Common Equity Tier 1 (CET1) capital ratio (%)(4)		12.3		12.2		11.8
Tier 1 capital ratio (%)(4)		13.9		13.7		13.3
Total capital ratio (%)(4)		15.9		15.7		15.5
Leverage ratio (%)(5)		4.8		4.8		4.7
Risk-weighted assets ($ millions)(4)		416,105		414,169		417,138
Liquidity coverage ratio (LCR) (%)(6)		124		123		138
Net stable funding ratio (NSFR) (%)(7)		110		112		n/a
Credit quality
Net impaired loans ($ millions)		2,801		2,976		3,096
Allowance for credit losses ($ millions)(8)		5,731		6,232		7,820
Gross impaired loans as a % of loans and acceptances(1)		0.67		0.73		0.81
Net impaired loans as a % of loans and acceptances(1)		0.42		0.46		0.50
Provision for credit losses as a % of average net loans and acceptances(1)(9)		0.10		0.24		0.73		0.29		0.98
Provision for credit losses on impaired loans as a % of average net loans and acceptances(1)(9)		0.31		0.53		0.54		0.53		0.56
Net write-offs as a % of average net loans and acceptances(1)		0.34		0.62		0.41		0.54		0.47
Adjusted results(2)
Adjusted net income ($ millions)		2,716		2,560		1,938		10,169		6,961
Adjusted diluted earnings per share ($)		2.10		2.01		1.45		7.87		5.36
Adjusted return on equity (%)		15.6		15.1		11.3		15.0		10.4
Adjusted productivity ratio (%)		52.8		52.5		53.3		52.2		53.0
Adjusted operating leverage (%)								1.5		(0.6	)
Adjusted provision for credit losses as a % of average net loans and acceptances(9)		0.10		0.24		0.73		0.29		0.95
Common share information
Closing share price ($) (TSX)		81.14		77.87		55.35
Shares outstanding (millions)
Average – Basic		1,215		1,215		1,211		1,214		1,212
Average – Diluted		1,224		1,223		1,246		1,225		1,243
End of period		1,215		1,215		1,211
Dividends paid per share ($)		0.90		0.90		0.90		3.60		3.60
Dividend yield (%)(1)		4.5		4.5		6.4		5.2		5.8
Market capitalization ($ millions) (TSX)		98,612		94,620		67,055
Book value per common share ($)(1)		53.28		53.26		51.85
Market value to book value multiple(1)		1.5		1.5		1.1
Price to earnings multiple (trailing 4 quarters)(1)		10.5		10.8		10.2
Other information
Employees (full-time equivalent)(10)		89,488		90,833		91,447
Branches and offices		2,518		2,555		2,618

(1) Refer to page 141 of the Management’s Discussion & Analysis in the Bank’s 2021 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

(2) Refer to page 3 for a discussion of Non-GAAP measures.

(3) Prior period amounts have been restated to appropriately reflect certain intercompany items.

(4) This measure has been disclosed in this document in accordance with OSFI Guideline—Capital Adequacy Requirements (November 2018).

(5) This measure has been disclosed in this document in accordance with OSFI Guideline—Leverage Requirements (November 2018).

(6) This measure has been disclosed in this document in accordance with OSFI Guideline – Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Coverage Ratio (April 2015).

(7) This measure has been disclosed in this document in accordance with OSFI Guideline—Net Stable Funding Ratio Disclosure Requirements (January 2021).

(8) Includes allowance for credit losses on all financial assets—loans, acceptances, off-balance sheet exposures, debt securities, and deposits with financial institutions.

(9) Includes provision for credit losses on certain financial assets—loans, acceptances, and off-balance sheet exposures.

(10) Prior year amounts have been restated to conform with current period presentation.

Scotiabank Fourth Quarter Press Release 2021    15

Impact of Foreign Currency Translation

	Average exchange rate						% Change
	October 31		July 31		October 31		October 31, 2021			October 31, 2021
For the three months ended	2021		2021		2020		vs. July 31, 2021			vs. October 31, 2020
U.S. Dollar/Canadian Dollar		0.796		0.814		0.756		(2.2	)%		5.2	%
Mexican Peso/Canadian Dollar		16.065		16.265		16.390		(1.2	)%		(2.0	)%
Peruvian Sol/Canadian Dollar		3.239		3.152		2.701		2.8	%		19.9	%
Colombian Peso/Canadian Dollar		3,043		3,050		2,866		(0.2	)%		6.2	%
Chilean Peso/Canadian Dollar		631.752		594.658		591.628		6.2	%		6.8	%

	Average exchange rate				% Change
	October 31		October 31		October 31, 2021
For the year ended	2021		2020		vs. October 31, 2020
U.S. Dollar/Canadian Dollar		0.795		0.744		6.9	%
Mexican Peso/Canadian Dollar		16.035		15.832		1.3	%
Peruvian Sol/Canadian Dollar		3.032		2.569		18.0	%
Colombian Peso/Canadian Dollar		2,929		2,722		7.6	%
Chilean Peso/Canadian Dollar		593.123		591.712		0.2	%

	For the three months ended						For the year ended
	October 31, 2021			October 31, 2021			October 31, 2021
Impact on net income(1) ($ millions except EPS)	vs. October 31, 2020			vs. July 31, 2021			vs. October 31, 2020
Net interest income	$	(110	)	$	(10	)	$	(512	)
Non-interest income(2)		(38	)		(9	)		(276	)
Non-interest expenses		93			—			408
Other items (net of tax)		33			6			203
Net income	$	(22	)	$	(13	)	$	(177	)
Earnings per share (diluted)	$	(0.02	)	$	(0.01	)	$	(0.14	)
Impact by business line ($ millions)
Canadian Banking	$	(1	)	$	—		$	(6	)
International Banking(2)		(36	)		(13	)		(130	)
Global Wealth Management		(2	)		—			(15	)
Global Banking and Markets		(14	)		5			(79	)
Other(2)		31			(5	)		53
Net Income	$	(22	)	$	(13	)	$	(177	)

(1) Includes impact of all currencies.

(2) Includes the impact of foreign currency hedges.

Impact of Divested Operations

	For the three months ended							For the year ended
	October 31			July 31		October 31		October 31		October 31
($ millions)	2021			2021		2020		2021		2020
Net interest income	$	1		$	4	$	11	$	23	$	123
Non-interest income		1			2		5		13		95
Total Revenue		2			6		16		36		218
Provision for credit losses		(1	)		2		1		9		27
Non-interest expenses		1			3		8		16		96
Income before taxes		2			1		7		11		95
Income tax expense		—			—		3		4		25
Net income	$	2		$	1	$	4	$	7	$	70
Net income attributable to non-controlling interests (NCI)		—			—		—		—		—
Net income attributable to equity holders—relating to divested operations	$	2		$	1	$	4	$	7	$	70

	For the three months ended						For the year ended
	October 31, 2021			October 31, 2021			October 31, 2021
Impact on net income ($ millions except EPS)	vs. July 31, 2021			vs. October 31, 2020			vs. October 31, 2020
Net interest income	$	(3	)	$	(10	)	$	(100	)
Non-interest income		(1	)		(4	)		(82	)
Total Revenue		(4	)		(14	)		(182	)
Provision for credit losses		(3	)		(2	)		(18	)
Non-interest expenses		(2	)		(7	)		(80	)
Income before taxes		1			(5	)		(84	)
Income tax expense		—			(3	)		(21	)
Net income	$	1		$	(2	)	$	(63	)
Net income attributable to equity holders	$	1		$	(2	)	$	(63	)
Earnings per share (diluted)	$	—		$	—		$	(0.05	)

16    Scotiabank Fourth Quarter Press Release 2021

Group Financial Performance

Net income

Q4 2021 vs Q4 2020

Net income was $2,559 million compared to $1,899 million. Adjusted net income was $2,716 million compared to $1,938 million, up 40%, due mainly to lower provision for credit losses as a result of a more favourable credit and macroeconomic outlook.

Q4 2021 vs Q3 2021

Net income was $2,559 million compared to $2,542 million. Adjusted net income was $2,716 million compared to $2,560 million, up 6%, due mainly to lower provision for credit losses, partially offset by lower revenues.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $7,687 million, an increase of $182 million or 2%, due mainly to higher non-interest income, partially offset by lower net interest income.

Q4 2021 vs Q3 2021

Revenues were $7,687 million, a decrease of $70 million or 1%, due mainly to lower non-interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $4,217 million, a decrease of $41 million or 1%. Strong mortgage and commercial loan growth was more than offset by the 3% negative impact of foreign currency translation, lower corporate and unsecured lending balances, and margin compression.

The net interest margin was down five basis points to 2.17%, driven primarily by lower margins in International and Canadian Banking related to changes in business mix and the impact of central bank rate cuts in 2020, partly offset by decreased levels of high quality, lower-margin liquid assets.

Q4 2021 vs Q3 2021

Net interest income was in line with the prior quarter. Loan growth across all business lines was offset by lower margins and the negative impact of foreign currency translation.

The net interest margin of 2.17% was down six basis points due primarily to a lower contribution from asset/liability management activities, as well as lower margins driven by changes in business mix.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $3,470 million, up $223 million or 7%. This was due mainly to higher banking and wealth management revenues, income from associated corporations, and higher investment gains. These were partly offset by lower fixed income trading revenues.

Q4 2021 vs Q3 2021

Non-interest income was down $70 million or 2%. This was due mainly to lower trading revenues and underwriting and advisory fees, which were partially offset by higher income from associated corporations, wealth management revenues, and insurance income.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was $168 million, compared to $1,131 million, a decrease of $963 million or 85%. The provision for credit losses ratio decreased 63 basis points to 10 basis points.

The provision for credit losses on performing loans was a net reversal of $343 million, a decrease of $639 million. Retail provisions decreased by $364 million, while commercial and corporate loan provisions decreased by $275 million across all business lines. These decreases were driven by the more favourable credit and macroeconomic outlook.

The provision for credit losses on impaired loans was $511 million, compared to $835 million, a decrease of $324 million or 39%, due primarily to lower retail provisions driven by lower credit migration across markets. Commercial and corporate loan provisions decreased $96 million across all business lines driven by lower formations. The provision for credit losses ratio on impaired loans was 31 basis points, a decrease of 23 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $168 million, compared to $380 million, a decrease of $212 million. The provision for credit losses ratio decreased 14 basis points to 10 basis points.

The provision for credit losses on performing loans was a net reversal of $343 million, compared to a net reversal of $461 million last quarter. Approximately $320 million of the provision reversals this quarter was due to reduction of allowances built in the prior year,

Scotiabank Fourth Quarter Press Release 2021    17

reflecting the improvement in credit quality and more favourable macroeconomic outlook. The remaining reversal of $23 million was due to credit migration, the majority of which was to impaired loans in the retail portfolio, mainly in International Banking.

The provision for credit losses on impaired loans was $511 million, compared to $841 million, a decrease of $330 million or 39%, due primarily to lower retail provisions, mainly in International Banking, driven by lower credit migration. The provision for credit losses ratio on impaired loans was 31 basis points, a decrease of 22 basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $4,271 million, up $214 million or 5% including $188 million related to restructuring and other provisions. Adjusted non-interest expenses of $4,058 million increased 1%. The increase was due to higher performance-based compensation, professional fees, advertising and technology-related costs to support business growth. Partly offsetting were the positive impact of foreign currency translation, lower personnel and premises costs.

The productivity ratio was 55.6% compared to 54.1%. On an adjusted basis, the productivity ratio was 52.8% compared to 53.3%.

Q4 2021 vs Q3 2021

Non-interest expenses were up $174 million or 4% including $188 million related to restructuring and other provisions. Adjusted non-interest expenses were in line with prior quarter. Lower performance-based compensation and other employee benefits expenses were offset by increases in advertising and business development, professional fees and share-based compensation expenses.

The productivity ratio was 55.6% compared to 52.8%. On an adjusted basis, the productivity ratio was 52.8% compared to 52.5%.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate was 21.2% compared to 18.0% in the same quarter last year. On an adjusted basis, the effective tax rate was 21.5% compared to 18.2% due primarily to changes in business and earnings mix across jurisdictions.

Q4 2021 vs Q3 2021

The effective tax rate was 21.2% compared to 22.5% in the previous quarter. On an adjusted basis, the effective tax rate was 21.5% compared to 22.5% in the previous quarter due primarily to changes in business and earnings mix across jurisdictions.

Capital Ratios

The Bank continues to maintain strong, high quality capital levels which position it well for future business growth and strategic initiatives. The CET1 ratio as at October 31, 2021 was 12.3%, an increase of approximately 50 basis points from the prior year due primarily to strong internal capital generation and the impact from the remeasurement of the employee pension and post-retirement obligations, partly offset by growth in risk-weighted assets, primarily retail mortgages, personal and business lending, a lower CET1 inclusion from declines in Stage 1 and Stage 2 expected credit losses (ECL), OSFI’s reversal of its temporary reduction in the SVaR multiplier, and the impact from foreign currency translation on capital requirements. At year end, the CET1 ratio included a benefit of six basis points (October 31, 2020 – 30 basis points) from OSFI transitional adjustment for the partial inclusion of increases in Stage 1 and Stage 2 expected credit losses (ECL) relative to their pre-crisis baseline levels as at January 31, 2020.

The Bank’s Tier 1 capital ratio was 13.9% as at October 31, 2021, an increase of approximately 60 basis points from the prior year, due primarily to the issuance of $1.25 billion and USD $600 million of Tier 1 qualifying Limited Recourse Capital Notes (LRCN), and the above noted impacts to the CET1 capital ratio, partly offset by the redemptions of $850 million of Basel III compliant NVCC preferred shares, a redemption of $409 million of non-qualifying preferred shares, and other regulatory adjustments.

The Total capital ratio was 15.9% as at October 31, 2021, an increase of approximately 40 basis points from 2020, due primarily to the above noted changes to the Tier 1 capital ratio, partly offset by the redemption of $750 million of subordinated debentures and other regulatory adjustments to Tier 2 capital.

The Leverage ratio was 4.8%, an increase of approximately 10 basis points in 2021 as higher Tier 1 capital was partly offset by growth in the Bank’s on and off-balance sheet assets.

The Bank’s capital ratios continue to be well in excess of OSFI’s minimum capital ratio requirements for 2021 of 10.5%, 12.0% and 14.0% for CET1, Tier 1 and Total Capital, respectively. The Bank was well above the OSFI minimum Leverage ratio as at October 31, 2021.

18    Scotiabank Fourth Quarter Press Release 2021

Business Segment Review

Canadian Banking

	For the three months ended									For the year ended
(Unaudited)($ millions) (Taxable equivalent basis)(1)	October 31 2021			July 31 2021			October 31 2020			October 31 2021			October 31 2020
Reported Results
Net interest income	$	2,082		$	2,030		$	1,954		$	8,030		$	7,838
Non-interest income(2)		749			765			612			2,868			2,461
Total revenue		2,831			2,795			2,566			10,898			10,299
Provision for credit losses		(96	)		69			330			333			2,073
Non-interest expenses		1,251			1,267			1,186			4,951			4,811
Income tax expense		438			380			272			1,459			879
Net income	$	1,238		$	1,079		$	778		$	4,155		$	2,536
Net income attributable to equity holders of the Bank	$	1,238		$	1,079		$	778		$	4,155		$	2,536
Other measures
Return on equity(3)		29.4	%		26.1	%		18.4	%		25.2	%		15.1	%
Average assets ($ billions)	$	398		$	384		$	363		$	381		$	359
Average liabilities ($ billions)	$	318		$	317		$	295		$	313		$	277

(1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Includes net income from investments in associated corporations for the three months ended October 31, 2021 - $18 (July 31, 2021 - $23; October 31, 2020 - $15) and for the year ended October 31, 2021 - $87 (October 31, 2020 - $56).

(3) Refer to Non-GAAP measures on page 3.

	For the three months ended							For the year ended
(Unaudited)($ millions) (Taxable equivalent basis)	October 31 2021			July 31 2021		October 31 2020		October 31 2021		October 31 2020
Adjusted Results(1)
Net interest income	$	2,082		$	2,030	$	1,954	$	8,030	$	7,838
Non-interest income		749			765		612		2,868		2,461
Total revenue		2,831			2,795		2,566		10,898		10,299
Provision for credit losses(2)		(96	)		69		330		333		2,002
Non-interest expenses(3)		1,245			1,262		1,180		4,929		4,789
Income tax expense		440			381		274		1,465		904
Net income	$	1,242		$	1,083	$	782	$	4,171	$	2,604

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for Allowance for credit losses – Additional scenario of $71 in the first quarter of 2020.

(3) Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2021 – $6 (July 31, 2021 – $5; October 31, 2020 – $6) and for the year ended October 31, 2021 – $22 (October 31, 2020 – $22).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $1,238 million, compared to $778 million. Adjusted net income attributable to equity holders was $1,242 million, an increase of $460 million or 59%. The increase was due primarily to lower provision for credit losses and higher revenues, partly offset by higher non-interest expenses.

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $159 million or 15%. The increase was due primarily to lower provision for credit losses, higher revenues, and lower non-interest expenses.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $2,831 million, up $265 million or 10%, due to higher non-interest income and net interest income.

Q4 2021 vs Q3 2021

Revenues increased $36 million or 1%, due primarily to higher net interest income partially offset by lower non-interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income of $2,082 million increased $128 million or 7%, due primarily to strong loan growth, partially offset by margin compression. The net interest margin declined six basis points to 2.20%, primarily driven by changes in business mix, mainly from higher residential mortgages and lower personal loans and credit cards.

Q4 2021 vs Q3 2021

Net interest income increased $52 million or 3%, driven by strong loan growth, partially offset by margin compression. The net interest margin declined three basis points to 2.20%, primarily driven by changes in business mix, with residential mortgage growth outpacing credit card and personal loan growth, and lower deposit growth.

Scotiabank Fourth Quarter Press Release 2021    19

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income of $749 million increased $137 million or 22%. The increase was due primarily to higher banking revenue and mutual fund distribution fees, and elevated private equity gains.

Q4 2021 vs Q3 2021

Non-interest income decreased $16 million or 2% due primarily to lower private equity gains and income from associated corporations, partially offset by higher banking revenue, insurance income, and mutual fund distribution fees.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was a net reversal of $96 million, compared to a provision of $330 million, a decrease of $426 million. The provision for credit losses ratio decreased 47 basis points to negative 10 basis points.

Provision for credit losses on performing loans was a net reversal of $195 million, a decrease of $287 million of which $148 million was related to retail, driven by the more favourable credit and macroeconomic outlook. Commercial provisions decreased $139 million due primarily to the more favourable macroeconomic outlook.

Provision for credit losses on impaired loans was $99 million, compared to $238 million, a decrease of $139 million due primarily to lower retail provisions driven by lower delinquencies. The provision for credit losses ratio on impaired loans was 10 basis points, a decrease of 17 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was a net reversal of $96 million, a decrease of $165 million. The provision for credit losses ratio decreased 17 basis points to negative 10 basis points.

Provision for credit losses on performing loans was a net reversal of $195 million, compared to a net reversal of $66 million, with a decrease of $86 million in retail provisions and $43 million in commercial provisions. The decrease was driven by the more favourable credit and macroeconomic outlook.

Provision for credit losses on impaired loans was $99 million compared to $135 million, a decrease of $36 million or 27% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans was 10 basis points, a decrease of four basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $1,251 million, up $65 million or 6%, due largely to higher technology and advertising and business development costs to support business growth.

Q4 2021 vs Q3 2021

Non-interest expenses were down $16 million or 1%, driven by lower personnel costs, partly offset by higher advertising and business development costs.

Provision for income taxes

The effective tax rate was 26.2% compared to 26.0% in the prior year and 26.0% in the prior quarter.

Average Assets

Q4 2021 vs Q4 2020

Average assets increased $35 billion or 10% to $398 billion. The growth included $30 billion or 13% in residential mortgages and $7 billion or 11% in business loans and acceptances, partially offset by a decline of $1 billion or 1% in personal loans.

Q4 2021 vs Q3 2021

Average assets increased $14 billion or 4%. The growth included $12 billion or 5% in residential mortgages and $1 billion or 2% in business loans and acceptances.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities increased $23 billion or 8% to $318 billion. The growth included $17 billion or 18% in non-personal deposits and $3 billion or 1% in personal deposits.

Q4 2021 vs Q3 2021

Average liabilities increased $1 billion to $318 billion. The growth of 2% in non-personal deposits was largely offset by a decline of 1% in personal deposits.

20    Scotiabank Fourth Quarter Press Release 2021

International Banking

	For the three months ended									For the year ended
(Unaudited)($ millions) (Taxable equivalent basis)(1)	October 31 2021			July 31 2021			October 31 2020			October 31 2021			October 31 2020
Reported Results
Net interest income	$	1,589		$	1,586		$	1,785		$	6,625		$	7,603
Non-interest income(2)(3)		728			776			763			2,993			3,207
Total revenue		2,317			2,362			2,548			9,618			10,810
Provision for credit losses		314			339			736			1,574			3,613
Non-interest expenses		1,259			1,299			1,424			5,254			5,943
Income tax expense		137			160			55			635			182
Net income	$	607		$	564		$	333		$	2,155		$	1,072
Net income attributable to non-controlling interests in subsidiaries		79			78			70			332			92
Net income attributable to equity holders of the Bank	$	528		$	486		$	263		$	1,823		$	980
Other measures
Return on equity(4)		12.0	%		11.1	%		5.6	%		10.4	%		5.0	%
Average assets ($ billions)	$	192		$	191		$	202		$	194		$	206
Average liabilities ($ billions)	$	146		$	146		$	153		$	149		$	155

(1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Includes net income from investments in associated corporations for the three months ended October 31, 2021 - $52 (July 31, 2021 - $52; October 31, 2020 - $38) and for the year ended October 31, 2021 - $206 (October 31, 2020 - $243).

(3) Includes one additional month of earnings relating to Mexico of $51 (after tax and NCI $37) in the first quarter of 2020. (4) Refer to Non-GAAP Measures on page 3.

	For the three months ended						For the year ended
(Unaudited)($ millions) (Taxable equivalent basis)	October 31 2021		July 31 2021		October 31 2020		October 31 2021		October 31 2020
Adjusted Results(1)
Net interest income	$	1,589	$	1,586	$	1,785	$	6,625	$	7,603
Non-interest income		728		776		763		2,993		3,207
Total revenue		2,317		2,362		2,548		9,618		10,810
Provision for credit losses(2)		314		339		736		1,574		3,536
Non-interest expenses(3)(4)		1,249		1,288		1,397		5,209		5,742
Income tax expense		140		164		62		648		260
Net income	$	614	$	571	$	353	$	2,187	$	1,272
Net income attributable to non-controlling interests in subsidiaries		79		78		70		332		124
Net income attributable to equity holders of the Bank	$	535	$	493	$	283	$	1,855	$	1,148

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for Allowance for credit losses - Additional scenario of $77 in the first quarter of 2020.

(3) Includes adjustment for Integration costs for the three months ended October 31, 2020 - $16 and for the year ended October 31, 2020 - $154.

(4) Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2021 – $10 (July 31, 2021 – $11; October 31, 2020 – $11) and for the year ended October 31, 2021 – $45 (October 31, 2020 – $47).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $528 million, compared to $263 million. Adjusted net income attributable to equity holders increased to $535 million from $283 million. This increase was driven by lower provision for credit losses and lower non-interest expenses, partially offset by lower revenues, higher income taxes, and the negative impact of foreign currency translation.

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $42 million or 9%. Adjusted net income attributable to equity holders increased by $42 million or 8%. This was due largely to lower non-interest expenses, provision for credit losses and income taxes, partially offset by lower revenues.

Scotiabank Fourth Quarter Press Release 2021    21

Financial Performance on a Constant Dollar Basis

The discussion below on the results of operations is on a constant dollar basis. Constant dollar basis excludes the impact of foreign currency translation, which is a non-GAAP financial measure (refer to Non-GAAP Measures on page 10). The Bank believes that reporting in constant dollar is useful for readers in assessing ongoing business performance. Ratios are on a reported basis.

Reported results on a constant dollar basis

	For the three months ended						For the year ended
(Unaudited)($ millions) (Taxable equivalent basis)	October 31 2021		July 31 2021		October 31 2020		October 31 2021		October 31 2020
Net interest income	$	1,589	$	1,575	$	1,668	$	6,625	$	7,060
Non-interest income		728		770		723		2,993		3,015
Total revenue		2,317		2,345		2,391		9,618		10,075
Provision for credit losses		314		335		674		1,574		3,369
Non-interest expenses		1,259		1,295		1,358		5,254		5,603
Income tax expense		137		159		51		635		159
Net income	$	607	$	556	$	308	$	2,155	$	944
Net income attributable to non-controlling interests in subsidiaries		79		76		64		332		87
Net income attributable to equity holders of the Bank	$	528	$	480	$	244	$	1,823	$	857

Adjusted results on a constant dollar basis

	For the three months ended						For the year ended
(Unaudited)($ millions) (Taxable equivalent basis)	October 31 2021		July 31 2021		October 31 2020		October 31 2021		October 31 2020
Net interest income	$	1,589	$	1,575	$	1,668	$	6,625	$	7,060
Non-interest income		728		770		723		2,993		3,015
Total revenue		2,317		2,345		2,391		9,618		10,075
Provision for credit losses		314		335		674		1,574		3,297
Non-interest expenses		1,249		1,285		1,333		5,209		5,414
Income tax expense		140		161		57		648		231
Net income	$	614	$	564	$	327	$	2,187	$	1,133
Net income attributable to non-controlling interests in subsidiaries		79		76		64		332		117
Net income attributable to equity holders of the Bank	$	535	$	488	$	263	$	1,855	$	1,016

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $528 million, compared to $244 million. Adjusted net income attributable to equity holders increased to $535 million from $263 million. This increase was driven by lower provision for credit losses and lower non-interest expenses, partially offset by lower revenues, and higher income taxes.

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $48 million or 10% from $480 million. Adjusted net income attributable to equity holders increased by $47 million or 10%, compared to $488 million last quarter. This was due largely to lower non-interest expenses, lower provision for credit losses and lower income taxes, partially offset by lower revenues.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $2,317 million, a decrease of $74 million or 3%, driven primarily by lower net interest income, partially offset by higher non-interest income.

Q4 2021 vs Q3 2021

Revenues decreased by $28 million, or 1%, driven primarily by lower non-interest income, partially offset by higher net interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $1,589 million, down 5%, driven by margin compression and lower personal loan and credit card balances, partially offset by growth in mortgages and commercial loans. Net interest margin declined by 28 basis points to 3.69% due primarily to changes in business mix from lower credit card balances.

Q4 2021 vs Q3 2021

Net interest income increased $14 million, up 1%, due primarily to an increase in commercial loans and residential mortgages. Net interest margin declined by three basis points to 3.69% due primarily to changes in business mix, mainly from a 2% decline in credit card balances and a 4% increase in commercial loans.

22    Scotiabank Fourth Quarter Press Release 2021

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $728 million, up 1%, due to higher banking fees and income from associated corporations, partially offset lower investment gains, and card fees.

Q4 2021 vs Q3 2021

Non-interest income decreased $42 million, or 5% due to lower investment gains, capital market revenues and insurance services income, partially offset by higher banking fees.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was $314 million, compared to $674 million, a decrease of $360 million or 53%. The provision for credit losses ratio decreased 116 basis points to 91 basis points.

Provision for credit losses on performing loans was a net reversal of $93 million, a decrease of $246 million of which $194 million related to retail portfolio mainly driven by credit migration and the more favourable macroeconomic outlook this quarter. The remaining decrease was driven by lower commercial provisions due to the more favourable macroeconomic outlook.

Provision for credit losses on impaired loans was $407 million compared to $521 million, a decrease of $114 million or 22% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans was 118 basis points, a decrease of 40 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $314 million, compared to $335 million, a decrease of $21 million or 6%. The provision for credit losses ratio decreased nine basis points to 91 basis points.

Provision for credit losses on performing loans was a net reversal of $93 million, compared to a net reversal of $361 million last quarter. The provision reversals were mainly in the retail portfolio driven by the more favourable macroeconomic outlook and credit migration this quarter.

Provision for credit losses on impaired loans was $407 million compared to $696 million, a decrease of 41% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans decreased 90 basis points to 118 basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $1,259 million compared to $1,358 million last year, down $99 million or 7%. On an adjusted basis, non-interest expenses were $1,249 million, down $84 million or 6%. The decrease was driven by lower salaries and employee benefits, technology costs, premises costs and professional fees.

Q4 2021 vs Q3 2021

Non-interest expenses were $1,259 million compared to $1,295 million. Adjusted non-interest expenses decreased $36 million or 3% from $1,285 million last quarter. The decrease was driven by lower salaries and employee benefits, technology costs, and premises costs, mainly in the Caribbean and Central America region.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate was 18.4%, compared to 14.2% last year. On an adjusted basis, the effective tax rate was 18.6%, compared to 15.0% last year, due primarily to higher provision for credit losses in entities that operate in higher tax rate jurisdictions recorded last year.

Q4 2021 vs Q3 2021

The effective tax rate was 18.4%, compared to 22.1% last quarter due primarily to higher inflationary adjustments in Mexico and Chile.

Average Assets

Q4 2021 vs Q4 2020

Average assets of $192 billion, increased $1 billion. Total loan growth of 2% was driven by a 3% increase in commercial loans and 8% increase in residential mortgages, partially offset by a 9% decrease in personal loans and credit card balances.

Q4 2021 vs Q3 2021

Average assets increased by 2%. Loans grew by 3% driven by a 4% increase in commercial loans and 3% increase in residential mortgages.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities of $146 billion were up 1%, while total deposits were flat.

Q4 2021 vs Q3 2021

Average liabilities increased by $842 million or 1%, while total deposits decreased 1% driven by a decline of non-personal deposits.

Scotiabank Fourth Quarter Press Release 2021    23

Global Wealth Management

	For the three months ended									For the year ended
(Unaudited)($ millions)	October 31			July 31			October 31			October 31			October 31
(Taxable equivalent basis)(1)	2021			2021			2020			2021			2020
Reported Results
Net interest income	$	161		$	160		$	144		$	628		$	575
Non-interest income		1,186			1,175			1,021			4,752			4,009
Total revenue		1,347			1,335			1,165			5,380			4,584
Provision for credit losses		1			(1	)		3			2			7
Non-interest expenses		824			812			726			3,255			2,878
Income tax expense		135			132			111			549			437
Net income	$	387		$	392		$	325		$	1,574		$	1,262
Net income attributable to non-controlling interests in subsidiaries		2			2			2			9			10
Net income attributable to equity holders of the Bank	$	385		$	390		$	323		$	1,565		$	1,252
Other measures
Return on equity(2)		16.3	%		16.5	%		13.9	%		16.7	%		13.5	%
Assets under administration ($ billions)(3)	$	597		$	582		$	500		$	597		$	500
Assets under management ($ billions)(3)	$	346		$	341		$	290		$	346		$	290

(1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Refer to Non-GAAP measures on page 3.

(3) Prior period amounts have been restated to appropriately reflect certain intercompany items.

	For the three months ended							For the year ended
(Unaudited)($ millions)	October 31		July 31			October 31		October 31		October 31
(Taxable equivalent basis)	2021		2021			2020		2021		2020
Adjusted Results(1)
Net interest income	$	161	$	160		$	144	$	628	$	575
Non-interest income		1,186		1,175			1,021		4,752		4,009
Total revenue		1,347		1,335			1,165		5,380		4,584
Provision for credit losses(2)		1		(1	)		3		2		6
Non-interest expenses(3)(4)		815		804			713		3,219		2,818
Income tax expense		137		133			114		558		453
Net income	$	394	$	399		$	335	$	1,601	$	1,307
Net income attributable to non-controlling interests in subsidiaries		2		2			2		9		10
Net income attributable to equity holders of the Bank	$	392	$	397		$	333	$	1,592	$	1,297

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for Allowance for credit losses – Additional scenario of $1 in the first quarter of 2020.

(3) Includes adjustment for Integration costs for the three months ended October 31, 2020 – $4 and for the year ended October 31, 2020 – $23.

(4) Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2021 – $9 (July 31, 2021 – $8; October 31, 2020 – $9) and for the year ended October 31, 2021 – $36 (October 31, 2020 – $37).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $385 million, an increase of $62 million or 20%. Adjusted net income attributable to equity holders increased to $392 million, up $59 million or 18%, due primarily to higher mutual fund fees and brokerage revenues, partially offset by higher volume-related expenses.

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased $5 million or 1%, due primarily to lower brokerage fees from reduced iTrade volumes, partially offset by higher mutual fund fees.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $1,347 million, up $182 million or 16% due primarily to higher fee income driven by growth in client assets from market appreciation and higher net sales, higher brokerage revenues, and higher net interest income from growth in Private Banking loans.

Q4 2021 vs Q3 2021

Revenues were up $12 million or 1% due primarily to higher fee income driven by growth in client assets from market appreciation and higher net sales.

Provision for credit losses

Q4 2021 vs Q4 2020

24    Scotiabank Fourth Quarter Press Release 2021

The provision for credit losses was $1 million, a decrease of $2 million from last year. The provision for credit losses ratio was two basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $1 million, an increase of $2 million. The provision for credit losses ratio was two basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses of $824 million were up $98 million or 13%, driven mainly by higher volume-related expenses, primarily performance-based compensation and distribution expenses, along with higher technology costs to support business growth initiatives.

Q4 2021 vs Q3 2021

Non-interest expenses were up $12 million or 1%, due largely to higher technology costs to support business growth initiatives.

Provision for income taxes

The effective tax rate was 25.9% compared to 25.6% in the prior year and 25.2% in the prior quarter.

Assets under management (AUM) and assets under administration (AUA)

Q4 2021 vs Q4 2020

Assets under management of $346 billion increased $56 billion or 19%, while assets under administration of $597 billion increased $97 billion or 19%, due primarily to higher net sales and market appreciation.

Q4 2021 vs Q3 2021

Assets under management increased $5 billion or 1%, and assets under administration increased $15 billion or 2%, due primarily to higher net sales and market appreciation.

Global Banking and Markets

	For the three months ended									For the year ended
(Unaudited)($ millions)	October 31			July 31			October 31			October 31			October 31
(Taxable equivalent basis)(1)	2021			2021			2020			2021			2020
Reported Results
Net interest income	$	365		$	363		$	350		$	1,436		$	1,435
Non-interest income		812			890			860			3,587			3,947
Total revenue		1,177			1,253			1,210			5,023			5,382
Provision for credit losses		(50	)		(27	)		62			(100	)		390
Non-interest expenses		591			620			583			2,458			2,473
Income tax expense		134			147			105			590			564
Net income	$	502		$	513		$	460		$	2,075		$	1,955
Net income attributable to equity holders of the Bank	$	502		$	513		$	460		$	2,075		$	1,955
Other measures
Return on equity(2)		15.5	%		16.1	%		14.6	%		16.5	%		14.8	%
Average assets ($ billions)	$	409		$	401		$	389		$	401		$	412
Average liabilities ($ billions)	$	382		$	373		$	387		$	385		$	379

(1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

(2) Refer to Non-GAAP measures on page 3.

	For the three months ended								For the year ended
(Unaudited)($ millions)	October 31			July 31			October 31		October 31			October 31
(Taxable equivalent basis)	2021			2021			2020		2021			2020
Adjusted Results(1)
Net interest income	$	365		$	363		$	350	$	1,436		$	1,435
Non-interest income(2)		812			890			860		3,587			4,049
Total revenue		1,177			1,253			1,210		5,023			5,484
Provision for credit losses(3)		(50	)		(27	)		62		(100	)		384
Non-interest expenses		591			620			583		2,458			2,473
Income tax expense		134			147			105		590			593
Net income	$	502		$	513		$	460	$	2,075		$	2,034

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for derivatives valuation of $102 in the first quarter of 2020.

(3) Includes adjustment for Allowance for credit losses—Additional scenario of $6 in the first quarter of 2020.

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $502 million, an increase of $42 million or 9%, due mainly to higher net interest income and lower provision for credit losses, partially offset by lower non-interest income, higher non-interest expenses, and the negative impact of foreign currency translation.

Scotiabank Fourth Quarter Press Release 2021    25

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased by $11 million or 2%, due mainly to lower non-interest income, partially offset by higher net interest income, lower provision for credit losses, lower non-interest expenses and the positive impact of foreign currency translation.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $1,177 million, a decrease of $33 million or 3% due primarily to lower trading-related revenues and the negative impact of foreign currency translation, partially offset by an increase in net interest income.

Q4 2021 vs Q3 2021

Revenues decreased by $76 million or 6% due mainly to lower non-interest income including lower trading-related revenue and underwriting and advisory fees, partially offset by higher net interest income and the positive impact of foreign currency translation.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $365 million, an increase of $15 million or 4%, due mainly to higher lending margins, partially offset by lower lending volumes and the unfavourable impact of foreign currency translation.

Q4 2021 vs Q3 2021

Net interest income increased by $2 million or 1%, due mainly to higher lending volumes.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $812 million, a decrease of $48 million or 6%, due mainly to lower fixed income trading-related revenues and the negative impact of foreign currency translation, partially offset by higher equities trading-related revenues and higher advisory fees.

Q4 2021 vs Q3 2021

Non-interest income decreased by $78 million or 9% due mainly to lower underwriting and advisory fees, and lower trading-related revenues primarily fixed income.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was a net reversal of $50 million, a decrease of $112 million. The provision for credit losses ratio was negative 18 basis points, a decrease of 42 basis points.

Provision for credit losses on performing loans was a net reversal of $52 million, a decrease of $80 million due primarily to an improving macroeconomic outlook.

Provision for credit losses on impaired loans was $2 million, a decrease of $32 million due primarily to lower provisions in the Energy portfolio. The provision for credit losses ratio on impaired loans was one basis point, a decrease of 12 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was a net reversal of $50 million, compared to a net reversal of $27 million last quarter, a decrease of $23 million. The provision for credit losses ratio was negative 18 basis points, a decrease of 7 basis points.

Provision for credit losses on performing loans was a net reversal of $52 million compared to a net reversal of $33 million last quarter. The provision reversals were driven primarily due to an improving macroeconomic outlook.

Provision for credit losses on impaired loans was $2 million compared to $6 million, a decrease of $4 million. The provision for credit losses ratio on impaired loans was one basis point, a decrease of two basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $591 million, up $8 million or 1%, due mainly to increases in technology costs to support business development, partially offset by lower personnel costs and impact of foreign currency translation.

Q4 2021 vs Q3 2021

Non-interest expenses decreased $29 million or 5% due mainly to lower personnel costs, partially offset by higher technology costs to support business development.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate for the quarter was 21.0% compared to 18.5% in the prior year. The changes were due mainly to the change in earnings mix across jurisdictions.

26    Scotiabank Fourth Quarter Press Release 2021

Q4 2021 vs Q3 2021

The effective tax rate for the quarter was 21.0% compared to 22.3% in the prior year. The changes were due mainly to the change in earnings mix across jurisdictions.

Average Assets

Q4 2021 vs Q4 2020

Average assets were $409 billion, an increase of $20 billion or 5%, due mainly to an increase in trading securities partially offset by lower loans and the negative impact of foreign currency translation.

Q4 2021 vs Q3 2021

Average assets increased $8 billion or 2%, due mainly to an increase in loans and securities purchased under resale agreements and positive impact of foreign currency translation.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities of $382 billion were lower by $5 billion or 1%, due mainly to lower securities sold under repurchase agreements, decreases in derivative-related liabilities and the negative impact of foreign currency translation, partially offset by growth in deposits.

Q4 2021 vs Q3 2021

Average liabilities increased $9 billion or 2%, due mainly to higher deposits, higher securities sold under repurchase agreements and the positive impact of foreign currency translation.

Scotiabank Fourth Quarter Press Release 2021    27

Other

	For the three months ended									For the year ended
(Unaudited)($ millions)	October 31			July 31			October 31			October 31			October 31
(Taxable equivalent basis)(1)	2021			2021			2020			2021			2020
Reported Results
Net interest income	$	20		$	78		$	25		$	242		$	(131	)
Non-interest income		(5	)		(66	)		(9	)		91			392
Total revenue		15			12			16			333			261
Provision for credit losses		(1	)		—			—			(1	)		1
Non-interest expenses		346			99			138			700			751
Income tax expense		(155	)		(81	)		(125	)		(362	)		(519	)
Net income (loss)	$	(175)		$	(6)		$	3		$	(4	)	$	28
Net income (loss) attributable to non-controlling interests in subsidiaries		(11	)		1			—			(10	)		(27	)
Net income (loss) attributable to equity holders of the Bank	$	(164)		$	(7)		$	3		$	6		$	55
Other measures
Average assets ($ billions)	$	144		$	143		$	159		$	152		$	158
Average liabilities ($ billions)	$	206		$	194		$	195		$	193		$	240

(1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank’s 2021 Annual Report to Shareholders.

	For the three months ended									For the year ended
(Unaudited)($ millions)	October 31			July 31			October 31			October 31			October 31
(Taxable equivalent basis)	2021			2021			2020			2021			2020
Adjusted Results(1)
Net interest income	$	20		$	78		$	25		$	242		$	(131	)
Non-interest income(2)(3)		(5	)		(66	)		(9	)		91			93
Total revenue		15			12			16			333			(38	)
Provision for credit losses		(1	)		—			—			(1	)		1
Non-interest expenses(3)(4)(5)		158			99			130			512			692
Income tax expense		(106	)		(81	)		(122	)		(313	)		(475	)
Net income (loss)	$	(36	)	$	(6)		$	8		$	135		$	(256	)
Net income (loss) attributable to non-controlling interests in subsidiaries		(1	)		1			—			—			1
Net income (loss) attributable to equity holders of the Bank	$	(35	)	$	(7)		$	8		$	135		$	(257	)

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for derivatives valuation of $14 in the first quarter of 2020.

(3) Includes adjustment for Net (gain)/loss on divestitures for the three months ended October 31, 2020—$8 and for the year ended October 31, 2020—$(298).

(4) Includes adjustment for software impairment charge of $44 in the first quarter of 2020.

(5) Includes adjustment for restructuring and other provisions of $188 in the fourth quarter of 2021.

The Other segment includes Group Treasury, smaller operating segments, Net gain/loss on divestitures and other corporate items which are not allocated to a business line.

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was a net loss of $164 million compared to a net income of $3 million in the prior year. The decrease of $167 million was due primarily to the impact of the restructuring and other provisions of $129 million this quarter. Adjusted net income attributable to equity holders was a loss of $35 million, down $43 million due to higher expenses and higher income taxes.

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased $157 million from the prior quarter, due mainly to the impact of the restructuring and other provisions this quarter. Adjusted net income decreased $28 million, due to higher expenses.

28    Scotiabank Fourth Quarter Press Release 2021

Consolidated Statement of Financial Position

	As at
	October 31			July 31			October 31
(Unaudited) ($ millions)	2021			2021			2020
Assets
Cash and deposits with financial institutions	$	86,323		$	75,881		$	76,460
Precious metals		755			759			1,181
Trading assets
Securities		137,148			133,575			108,331
Loans		8,113			6,793			8,352
Other		1,051			752			1,156
		146,312			141,120			117,839
Securities purchased under resale agreements and securities borrowed		127,739			129,013			119,747
Derivative financial instruments		42,302			41,904			45,065
Investment securities		75,199			81,734			111,389
Loans
Residential mortgages		319,678			310,370			284,684
Personal loans		91,540			91,544			93,758
Credit cards		12,450			12,194			14,797
Business and government		218,944			219,720			217,663
		642,612			633,828			610,902
Allowance for credit losses		5,626			6,079			7,639
		636,986			627,749			603,263
Other
Customers’ liability under acceptances, net of allowance		20,404			17,023			14,228
Property and equipment		5,621			5,538			5,897
Investments in associates		2,604			2,504			2,475
Goodwill and other intangible assets		16,604			16,703			17,015
Deferred tax assets		2,051			2,108			2,185
Other assets		21,944			21,393			19,722
		69,228			65,269			61,522
Total assets	$	1,184,844		$	1,163,429		$	1,136,466
Liabilities
Deposits
Personal	$	243,551		$	247,462		$	246,135
Business and government		511,348			503,314			464,619
Financial institutions		42,360			43,610			40,084
		797,259			794,386			750,838
Financial instruments designated at fair value through profit or loss		22,493			21,961			18,899
Other
Acceptances		20,441			17,085			14,305
Obligations related to securities sold short		40,954			43,276			31,902
Derivative financial instruments		42,203			38,894			42,247
Obligations related to securities sold under repurchase agreements and securities lent		123,469			112,516			137,763
Subordinated debentures		6,334			6,418			7,405
Other liabilities		58,799			56,732			62,604
		292,200			274,921			296,226
Total liabilities		1,111,952			1,091,268			1,065,963
Equity
Common equity
Common shares		18,507			18,493			18,239
Retained earnings		51,354			50,044			46,345
Accumulated other comprehensive income (loss)		(5,333	)		(3,986	)		(2,125	)
Other reserves		222			169			360
Total common equity		64,750			64,720			62,819
Preferred shares and other equity instruments		6,052			5,299			5,308
Total equity attributable to equity holders of the Bank		70,802			70,019			68,127
Non-controlling interests in subsidiaries		2,090			2,142			2,376
Total equity		72,892			72,161			70,503
Total liabilities and equity	$	1,184,844		$	1,163,429		$	1,136,466

Scotiabank Fourth Quarter Press Release 2021    29

Consolidated Statement of Income

	For the three months ended						For the year ended
(Unaudited) ($ millions)	October 31 2021		July 31 2021		October 31 2020		October 31 2021		October 31 2020
Revenue
Interest income(1)
Loans	$	5,751	$	5,648	$	6,104	$	23,159	$	26,977
Securities		343		354		458		1,467		2,035
Securities purchased under resale agreements and securities borrowed		45		49		51		178		286
Deposits with financial institutions		47		50		39		182		414
		6,186		6,101		6,652		24,986		29,712
Interest expense
Deposits		1,513		1,540		2,055		6,465		10,731
Subordinated debentures		46		43		50		180		240
Other		410		301		289		1,380		1,421
		1,969		1,884		2,394		8,025		12,392
Net interest income		4,217		4,217		4,258		16,961		17,320
Non-interest income
Card revenues		187		177		181		749		789
Banking services fees		414		400		376		1,598		1,540
Credit fees		368		382		345		1,485		1,348
Mutual funds		605		580		506		2,394		1,945
Brokerage fees		265		263		225		1,039		902
Investment management and trust		251		252		238		994		946
Underwriting and other advisory		144		198		152		724		690
Non-trading foreign exchange		179		194		169		787		708
Trading revenues		409		478		498		2,033		2,411
Net gain on sale of investment securities		83		80		182		419		607
Net income from investments in associated corporations		96		73		49		339		242
Insurance underwriting income, net of claims		102		83		120		398		497
Other fees and commissions		153		171		151		677		688
Other		214		209		55		655		703
		3,470		3,540		3,247		14,291		14,016
Total revenue		7,687		7,757		7,505		31,252		31,336
Provision for credit losses		168		380		1,131		1,808		6,084
		7,519		7,377		6,374		29,444		25,252
Non-interest expenses
Salaries and employee benefits		2,054		2,131		2,071		8,541		8,624
Premises and technology		598		597		607		2,351		2,408
Depreciation and amortization		383		373		407		1,511		1,546
Communications		93		86		93		369		418
Advertising and business development		126		93		96		404		445
Professional		242		211		184		789		753
Business and capital taxes		120		122		123		511		517
Other		655		484		476		2,142		2,145
		4,271		4,097		4,057		16,618		16,856
Income before taxes		3,248		3,280		2,317		12,826		8,396
Income tax expense		689		738		418		2,871		1,543
Net income	$	2,559	$	2,542	$	1,899	$	9,955	$	6,853
Net income attributable to non-controlling interests in subsidiaries		70		81		72		331		75
Net income attributable to equity holders of the Bank	$	2,489	$	2,461	$	1,827	$	9,624	$	6,778
Preferred shareholders and other equity instrument holders		78		35		82		233		196
Common shareholders	$	2,411	$	2,426	$	1,745	$	9,391	$	6,582
Earnings per common share (in dollars)
Basic	$	1.98	$	2.00	$	1.44	$	7.74	$	5.43
Diluted		1.97		1.99		1.42		7.70		5.30
Dividends paid per common share (in dollars)		0.90		0.90		0.90		3.60		3.60

(1) Includes interest income on financial assets measured at amortized cost and FVOCI, calculated using the effective interest method, of $6,080 for the three months ended October 31, 2021 (July 31, 2021—$5,989; October 31, 2020—$6,510) and for the year ended October 31, 2021—$24,547 (October 31, 2020—$29,173).

30    Scotiabank Fourth Quarter Press Release 2021

Consolidated Statement of Comprehensive Income

	For the three months ended									For the year ended
(Unaudited) ($ millions)	October 31 2021			July 31 2021			October 31 2020			October 31 2021			October 31 2020
Net income	$	2,559		$	2,542		$	1,899		$	9,955		$	6,853
Other comprehensive income (loss)
Items that will be reclassified subsequently to net income
Net change in unrealized foreign currency translation gains (losses):
Net unrealized foreign currency translation gains (losses)		(1,059	)		(94	)		(548	)		(4,515	)		(2,433	)
Net gains (losses) on hedges of net investments in foreign operations		232			(56	)		6			1,307			347
Income tax expense (benefit):
Net unrealized foreign currency translation gains (losses)		(9	)		2			16			(31	)		62
Net gains (losses) on hedges of net investments in foreign operations		61			(15	)		1			343			91
		(879	)		(137	)		(559	)		(3,520	)		(2,239	)
Net change in fair value due to change in debt instruments measured at fair value through other comprehensive income:
Net gains (losses) in fair value		(647	)		(18	)		(235	)		(1,341	)		1,495
Reclassification of net (gains) losses to net income		294			(128	)		139			522			(1,091	)
Income tax expense (benefit):
Net gains (losses) in fair value		(189	)		11			(59	)		(346	)		387
Reclassification of net (gains) losses to net income		75			(33	)		37			127			(276	)
		(239	)		(124	)		(74	)		(600	)		293
Net change in gains (losses) on derivative instruments designated as cash flow hedges:
Net gains (losses) on derivative instruments designated as cash flow hedges		(1,754	)		230			(661	)		(1,267	)		2,543
Reclassification of net (gains) losses to net income		830			72			385			176			(2,604	)
Income tax expense (benefit):
Net gains (losses) on derivative instruments designated as cash flow hedges		(518	)		(10	)		(181	)		(471	)		689
Reclassification of net (gains) losses to net income		272			81			106			186			(718	)
		(678	)		231			(201	)		(806	)		(32	)
Other comprehensive income (loss) from investments in associates		6			4			7			37			(2	)
Items that will not be reclassified subsequently to net income
Net change in remeasurement of employee benefit plan asset and liability:
Actuarial gains (losses) on employee benefit plans		398			(111	)		291			1,815			(620	)
Income tax expense (benefit)		106			(32	)		76			480			(155	)
		292			(79	)		215			1,335			(465	)
Net change in fair value due to change in equity instruments designated at fair value through other comprehensive income:
Net gains (losses) in fair value		96			84			(44	)		532			(122	)
Income tax expense (benefit)		25			17			(17	)		124			(37	)
		71			67			(27	)		408			(85	)
Net change in fair value due to change in own credit risk on financial liabilities designated under the fair value option:
Change in fair value due to change in own credit risk on financial liabilities designated under the fair value option		(24	)		72			(211	)		(270	)		(404	)
Income tax expense (benefit)		(7	)		19			(55	)		(71	)		(106	)
		(17	)		53			(156	)		(199	)		(298	)
Other comprehensive income (loss) from investments in associates		—			—			—			5			(8	)
Other comprehensive income (loss)		(1,444	)		15			(795	)		(3,340	)		(2,836	)
Comprehensive income (loss)	$	1,115		$	2,557		$	1,104		$	6,615		$	4,017
Comprehensive income (loss) attributable to non-controlling interests		(27	)		29			—			125			(93	)
Comprehensive income (loss) attributable to equity holders of the Bank	$	1,142		$	2,528		$	1,104		$	6,490		$	4,110
Preferred shareholders and other equity instrument holders		78			35			82			233			196
Common shareholders	$	1,064		$	2,493		$	1,022		$	6,257		$	3,914

Scotiabank Fourth Quarter Press Release 2021    31

Consolidated Statement of Changes in Equity

							Accumulated other comprehensive income (loss)
(unaudited) ($ millions)	Common shares			Retained earnings(1)			Foreign currency translation			Debt instruments FVOCI			Equity instruments FVOCI			Cash flow hedges			Other(2)			Other reserves			Total common equity			Preferred shares and other equity instruments			Total attributable to equity holders			Non- controlling interests in subsidiaries			Total
Balance as at October 31, 2020	$	18,239		$	46,345		$	(1,328	)	$	330		$	(163	)	$	639		$	(1,603	)	$	360		$	62,819		$	5,308		$	68,127		$	2,376		$	70,503
Net income		—			9,391			—			—			—			—			—			—			9,391			233			9,624			331			9,955
Other comprehensive income (loss)		—			—			(3,322	)		(600	)		460			(844	)		1,172			—			(3,134	)		—			(3,134	)		(206	)		(3,340	)
Total comprehensive income	$	—		$	9,391		$	(3,322	)	$	(600	)	$	460		$	(844	)	$	1,172		$	—		$	6,257		$	233		$	6,490		$	125		$	6,615
Shares/instruments issued		268			—			—			—			—			—			—			(25	)		243			2,003			2,246			—			2,246
Shares repurchased/redeemed		—			—			—			—			—			—			—			—			—			(1,259	)		(1,259	)		—			(1,259	)
Dividends and distributions paid to equity holders		—			(4,371	)		—			—			—			—			—			—			(4,371	)		(233	)		(4,604	)		(123	)		(4,727	)
Share-based payments(3)		—			—			—			—			—			—			—			7			7			—			7			—			7
Other		—			(11	)		(59	)		—			(6	)		(9	)		—			(120	)(4)		(205	)		—			(205	)		(288	)(4)		(493	)
Balance as at October 31, 2021	$	18,507		$	51,354		$	(4,709	)	$	(270	)	$	291		$	(214	)	$	(431	)	$	222		$	64,750		$	6,052		$	70,802		$	2,090		$	72,892
Balance as at October 31, 2019	$	18,264		$	44,439		$	800		$	37		$	(55	)	$	650		$	(862	)	$	365		$	63,638		$	3,884		$	67,522		$	2,670		$	70,192
Net income		—			6,582			—			—			—			—			—			—			6,582			196			6,778			75			6,853
Other comprehensive income (loss)		—			—			(2,128	)		293			(81	)		(11	)		(741	)		—			(2,668	)		—			(2,668	)		(168	)		(2,836	)
Total comprehensive income	$	—		$	6,582		$	(2,128	)	$	293		$	(81	)	$	(11	)	$	(741	)	$	—		$	3,914		$	196		$	4,110		$	(93	)	$	4,017
Shares/instruments issued		59			—			—			—			—			—			—			(9	)		50			1,689			1,739			—			1,739
Shares repurchased/redeemed		(84	)		(330	)		—			—			—			—			—			—			(414	)		(265	)		(679	)		—			(679	)
Dividends and distributions paid to equity holders		—			(4,363	)		—			—			—			—			—			—			(4,363	)		(196	)		(4,559	)		(148	)		(4,707	)
Share-based payments(3)		—			—			—			—			—			—			—			5			5			—			5			—			5
Other		—			17			—			—			(27	)		—			—			(1	)		(11	)		—			(11	)		(53	)(4)		(64	)
Balance as at October 31, 2020	$	18,239		$	46,345		$	(1,328	)	$	330		$	(163	)	$	639		$	(1,603	)	$	360		$	62,819		$	5,308		$	68,127		$	2,376		$	70,503
Balance as at October 31, 2018	$	18,234		$	41,414		$	1,441		$	(68	)	$	(126	)	$	(121	)	$	(134	)	$	404		$	61,044		$	4,184		$	65,228		$	2,452		$	67,680
Cumulative effect of adopting IFRS 15		—			(58	)		—			—			—			—			—			—			(58	)		—			(58	)		—			(58	)
Balance as at November 1, 2018		18,234			41,356			1,441			(68	)		(126	)		(121	)		(134	)		404			60,986			4,184			65,170			2,452			67,622
Net income		—			8,208			—			—			—			—			—			—			8,208			182			8,390			408			8,798
Other comprehensive income (loss)		—			—			(641	)		105			71			771			(728	)		—			(422	)		—			(422	)		(203	)		(625	)
Total comprehensive income	$	—		$	8,208		$	(641	)	$	105		$	71		$	771		$	(728	)	$	—		$	7,786		$	182		$	7,968		$	205		$	8,173
Shares issued		255			—			—			—			—			—			—			(37	)		218			—			218			—			218
Shares repurchased/redeemed		(225	)		(850	)		—			—			—			—			—			—			(1,075	)		(300	)		(1,375	)		—			(1,375	)
Dividends and distributions paid to equity holders		—			(4,260	)		—			—			—			—			—			—			(4,260	)		(182	)		(4,442	)		(150	)		(4,592	)
Share-based payments(3)		—			—			—			—			—			—			—			7			7			—			7			—			7
Other		—			(15	)		—			—			—			—			—			(9	)(4)		(24	)		—			(24	)		163	(4)		139
Balance as at October 31, 2019	$	18,264		$	44,439		$	800		$	37		$	(55	)	$	650		$	(862	)	$	365		$	63,638		$	3,884		$	67,522		$	2,670		$	70,192

(1) Includes undistributed retained earnings of $60 (2020—$64; 2019—$61) related to a foreign associated corporation, which is subject to local regulatory restriction.

(2) Includes Share from associates, Employee benefits and Own credit risk.

(3) Represents amounts on account of share-based payments (refer to Note 26).

(4) Includes changes to non-controlling interests arising from business combinations and related transactions.

32    Scotiabank Fourth Quarter Press Release 2021

Consolidated Statement of Cash Flows

(Unaudited) ($ millions)	For the three months ended						For the year ended
Sources (uses) of cash flows	October 31 2021			October 31 2020			October 31 2021			October 31 2020
Cash flows from operating activities
Net income	$	2,559		$	1,899		$	9,955		$	6,853
Adjustment for:
Net interest income		(4,217	)		(4,258	)		(16,961	)		(17,320	)
Depreciation and amortization		383			407			1,511			1,546
Provision for credit losses		168			1,131			1,808			6,084
Equity-settled share-based payment expense		1			—			7			5
Net gain on sale of investment securities		(83	)		(182	)		(419	)		(607	)
Net (gain)/loss on divestitures		(6	)		(1	)		9			(307	)
Net income from investments in associated corporations		(96	)		(49	)		(339	)		(242	)
Income tax expense		689			418			2,871			1,543
Changes in operating assets and liabilities:
Trading assets		(6,608	)		5,446			(33,995	)		9,945
Securities purchased under resale agreements and securities borrowed		(80	)		5,777			(14,202	)		12,781
Loans		(15,900	)		6,802			(55,748	)		(25,486	)
Deposits		10,470			(12,793	)		78,569			27,982
Obligations related to securities sold short		(2,016	)		(1,799	)		10,078			1,195
Obligations related to securities sold under repurchase agreements and securities lent		12,278			966			(7,709	)		11,722
Net derivative financial instruments		1,380			(2,580	)		2,123			(1,949	)
Other, net		3,093			3,465			(5,300	)		7,527
Dividends received		284			204			969			824
Interest received		6,128			7,031			25,425			29,572
Interest paid		(1,929	)		(2,406	)		(8,766	)		(13,042	)
Income tax paid		(501	)		(623	)		(2,693	)		(1,962	)
Net cash from/(used in) operating activities		5,997			8,855			(12,807	)		56,664
Cash flows from investing activities
Interest-bearing deposits with financial institutions		(10,223	)		(17,490	)		(15,006	)		(30,346	)
Purchase of investment securities		(21,269	)		(19,544	)		(72,259	)		(147,629	)
Proceeds from sale and maturity of investment securities		26,552			30,207			103,765			119,033
Acquisition/divestiture of subsidiaries, associated corporations or business units, net of cash acquired		(50	)		—			(717	)		3,938
Property and equipment, net of disposals		(191	)		(203	)		(462	)		(771	)
Other, net		(285	)		(212	)		(624	)		(684	)
Net cash from/(used in) investing activities		(5,466	)		(7,242	)		14,697			(56,459	)
Cash flows from financing activities
Redemption/repurchase of subordinated debentures		—			(3	)		(750	)		(9	)
Proceeds from preferred shares and other equity instruments issued		753			—			2,003			1,689
Redemption of preferred shares		—			—			(1,259	)		(265	)
Proceeds from common shares issued		14			3			268			59
Common shares purchased for cancellation		—			—			—			(414	)
Cash dividends and distributions paid		(1,173	)		(1,173	)		(4,604	)		(4,559	)
Distributions to non-controlling interests		(25	)		(7	)		(123	)		(148	)
Payment of lease liabilities		(102	)		(87	)		(344	)		(345	)
Other, net		1,238			(218	)		2,032			4,135
Net cash from/(used in) financing activities		705			(1,485	)		(2,777	)		143
Effect of exchange rate changes on cash and cash equivalents		(96	)		(96	)		(543	)		(129	)
Net change in cash and cash equivalents		1,140			32			(1,430	)		219
Cash and cash equivalents at beginning of period(1)		8,553			11,091			11,123			10,904
Cash and cash equivalents at end of period(1)	$	9,693		$	11,123		$	9,693		$	11,123

(1) Represents cash and non-interest bearing deposits with financial institutions (refer to Note 6 in the 2021 Annual Report to Shareholders).

Scotiabank Fourth Quarter Press Release 2021    33

Basis of preparation

These unaudited consolidated financial statements were prepared in accordance with IFRS as issued by International Accounting Standards Board (IASB) and accounting requirements of OSFI in accordance with Section 308 of the Bank Act, except for certain required disclosures. Therefore, these unaudited consolidated financial statements should be read in conjunction with the Bank’s audited consolidated financial statements for the year ended October 31, 2021 which will be available today at www.scotiabank.com.

Forward-looking statements

From time to time, our public communications often include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management’s Discussion and Analysis in the Bank’s 2021 Annual Report under the headings “Outlook” and in other statements regarding the Bank’s objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank’s businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as “believe,” “expect,” “foresee,” “forecast,” “anticipate,” “intend,” “estimate,” “plan,” “goal,” “project,” and similar expressions of future or conditional verbs, such as “will,” “may,” “should,” “would” and “could.”

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved.

We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; changes to our credit ratings; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank’s ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; disruptions in or attacks (including cyber-attacks) on the Bank’s information technology, internet, network access, or other voice or data communications systems or services; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; climate change and other environmental and social risks, including sustainability that may arise, including from the Bank’s business activities; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the global economy, financial market conditions and the Bank’s business, results of operations, financial condition and prospects; and the Bank’s anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank’s business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank’s financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank’s actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank’s results, for more information, please see the “Risk Management” section of the Bank’s 2021 Annual Report, as may be updated by quarterly reports.

Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2021 Annual Report under the headings “Outlook”, as updated by quarterly reports. The “Outlook” sections are based on the Bank’s views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events.

Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank’s shareholders and analysts in understanding the Bank’s financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf.

Additional information relating to the Bank, including the Bank’s Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC’s website at www.sec.gov.

November 30, 2021

34    Scotiabank Fourth Quarter Press Release 2021

Shareholders Information

Direct Deposit Service

Shareholders may have dividends deposited directly into accounts held at financial institutions which are members of the Canadian Payments Association. To arrange direct deposit service, please write to the transfer agent.

Dividend and Share Purchase Plan

Scotiabank’s dividend reinvestment and share purchase plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the transfer agent.

Dividend Dates for 2022

Record and payment dates for common and preferred shares, subject to approval by the Board of Directors.

Record Date	Payment Date
January 4, 2022	January 27, 2022
April 5, 2022	April 27, 2022
July 5, 2022	July 27, 2022
October 4, 2022	October 27, 2022

Annual Meeting Date for Fiscal 2021

Shareholders are invited to attend the 190th Annual Meeting of Holders of Common Shares, to be held on April 5, 2022, at Scotiabank Centre, Scotia Plaza, 40 King Street West, 2nd Floor, Toronto, Ontario beginning at 9:00 a.m. Eastern. The record date for determining shareholders entitled to receive notice of and to vote at the meeting will be the close of business on February 8, 2022. Please visit our website at https://www.scotiabank.com/annualmeeting for updates concerning the meeting.

Duplicated Communication

Some registered holders of The Bank of Nova Scotia shares might receive more than one copy of shareholder mailings, such as this Annual Report. Every effort is made to avoid duplication; however, if you are registered with different names and/or addresses, multiple mailings may result. If you receive, but do not require, more than one mailing for the same ownership, please contact the transfer agent to combine the accounts.

Annual Financial Statements

Shareholders may obtain a hard copy of Scotiabank’s 2021 audited annual consolidated financial statements and accompanying Management’s Discussion & Analysis on request and without charge by contacting the Investor Relations Department at (416) 775-0798 or investor.relations@scotiabank.com.

Website

For information relating to Scotiabank and its services, visit us at our website: www.scotiabank.com.

Conference Call and Web Broadcast

The quarterly results conference call will take place on Tuesday, November 30, 2021, at 8:00 a.m. EST and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 416-641-6104 or 1-800-952-5114 (North America toll-free) using access code 5425716# (please call shortly before 8:00 am EST). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page of www.scotiabank.com.

Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from Tuesday, November 30, 2021 to Thursday, January 6, 2022, by calling 905-694-9451 or 1-800-408-3053 (North America toll-free). The access code is 9929482#. The archived audio webcast will be available on the Bank’s website for three months.

Scotiabank Fourth Quarter Press Release 2021    35

Additional Information

Investors:

Financial Analysts, Portfolio Managers and other Institutional Investors requiring financial information, please contact Investor Relations, Finance Department:

Scotiabank

Scotia Plaza, 44 King Street West

Toronto, Ontario, Canada M5H 1H1

Telephone: (416) 775-0798

E-mail: investor.relations@scotiabank.com

Global Communications:

Scotiabank

44 King Street West, Toronto, Ontario

Canada M5H 1H1

E-mail: corporate.communications@scotiabank.com

Shareholders:

For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank’s transfer agent:

Computershare Trust Company of Canada

100 University Avenue, 8th Floor

Toronto, Ontario, Canada M5J 2Y1

Telephone: 1-877-982-8767

E-mail: service@computershare.com

Co-Transfer Agent (U.S.A.)

Computershare Trust Company, N.A.

WHEN SENDING OVERNIGHT:                

Computershare

C/O: Shareholder Services

462 South 4th Street, Suite 1600

Louisville, KY 40202

WHEN SENDING FIRST CLASS, REGISTERED, OR CERTIFIED MAIL:

Computershare

C/O: Shareholder Services

PO Box 505000

Louisville, KY 40233-5000

Tel: 1-800-962-4284

E-mail: service@computershare.com

For other shareholder enquiries, please contact the Corporate Secretary’s Department:

Scotiabank

Scotia Plaza, 44 King Street West

Toronto, Ontario, Canada M5H 1H1

Telephone: (416) 866-3672

E-mail: corporate.secretary@scotiabank.com

Rapport trimestriel disponible en français

Le Rapport annuel et les états financiers de la Banque sont publiés en français et en anglais et distribués aux actionnaires dans la version de leur choix. Si vous préférez que la documentation vous concernant vous soit adressée en français, veuillez en informer Relations publiques, Affaires de la société et Affaires gouvernementales, La Banque de Nouvelle-Écosse, Scotia Plaza, 44, rue King Ouest, Toronto (Ontario), Canada M5H 1H1, en joignant, si possible, l’étiquette d’adresse, afin que nous puissions prendre note du changement.

Contact Information

John McCartney

Scotiabank Investor Relations

(416) 863-7579

Sophia Saeed

Scotiabank Investor Relations

(416) 933-8869

36    Scotiabank Fourth Quarter Press Release 2021