# EDGAR Filing Document

**Accession Number:** 0000009631
**File Stem:** 0001193125-25-188101
**Filing Date:** 2025-8
**Character Count:** 503870
**Document Hash:** 03220aea93406f7233f9aff26850e78b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-188101.hdr.sgml**: 20250826

**ACCESSION NUMBER**: 0001193125-25-188101

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 114

**CONFORMED PERIOD OF REPORT**: 20250731

**FILED AS OF DATE**: 20250826

**DATE AS OF CHANGE**: 20250826

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BANK OF NOVA SCOTIA
- **CENTRAL INDEX KEY:** 0000009631
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 134941099
- **STATE OF INCORPORATION:** Z4
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 002-09048
- **FILM NUMBER:** 251252599

**BUSINESS ADDRESS:**
- **STREET 1:** 40 TEMPERANCE STREET
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5H 0B4
- **BUSINESS PHONE:** (416) 866-3672

**MAIL ADDRESS:**
- **STREET 1:** 40 TEMPERANCE STREET
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5H 0B4

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BANK OF NOVA SCOTIA /
- **DATE OF NAME CHANGE:** 19970702

?xml version='1.0' encoding='ASCII'? 6-K

#### **Table of Contents**

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, DC 20549

### Form 6-K

#### Report of Foreign Private Issuer

#### Pursuant to Rule 13a-16 or 15d-16 of

#### the Securities Exchange Act of 1934

#### For the month of: August, 2025

#### Commission File Number: 002-09048

## THE BANK OF NOVA SCOTIA

#### (Name of registrant)

#### 40 Temperance Street, Toronto, Ontario, M5H 0B4

#### (Tel.: (416) 866-3672)

#### (Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☐ Form 40-F ☒

This report on Form 6-K shall be deemed to be incorporated by reference in The Bank of Nova Scotia's registration statements on Form S-8 (File No. 333-199099) and Form F-3 (File No. 333-282565) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

------

#### **Table of Contents**

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  | THE BANK OF NOVA SCOTIA | THE BANK OF NOVA SCOTIA | THE BANK OF NOVA SCOTIA |
| Date: August 26, 2025 | By: | /s/ Gerhardt Samwell | /s/ Gerhardt Samwell |
|  |  | Name: | Gerhardt Samwell |
|  |  | Title: | Senior Vice-President and Chief Accountant |

---

------

#### **Table of Contents**
EXHIBIT INDEX

---

| | |
|:---|:---|
| Exhibit | Description of Exhibit |
| 99.1 | 2025 Third Quarter Report to Shareholders |
| 101 | Interactive Data File (formatted as Inline XBRL) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

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## Exhibit 99.1

?xml version='1.0' encoding='ASCII'? EX-99.1

![](g944686g01a01.jpg)

#### Exhibit 99.1

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> ![](g944686g01m02.jpg)<br>Live audio Web<br>broadcast of the<br>Bank's analysts'<br>conference call.<br>See page 95<br>for details. | &nbsp;&nbsp;&nbsp;&nbsp; <br>**Quarterly Report**<br>**to Shareholders**<br>Scotiabank reports third quarter results<br>TORONTO, August 26, 2025 – The Bank of Nova Scotia ("Scotiabank") (TSX: BNS; NYSE: BNS) reported third quarter net income of $2,527 million compared to $1,912 million in the same period last year. Diluted earnings per share (EPS) were $1.84, compared to $1.41 in the same period a year ago.<br>Adjusted net income<sup>(1)</sup> for the third quarter was $2,518 million and adjusted diluted EPS<sup>(1)</sup> was $1.88, up from $1.63 last year. Adjusted return on equity<sup>(1)</sup> was 12.4% compared to 11.3% a year ago.<br>"I want to thank all Scotiabankers for delivering a very strong quarter as we continue to execute on our strategy," said Scott Thomson, President and Chief Executive Officer of Scotiabank. "We reported improving revenue growth which helped drive another quarter of positive operating leverage and pushed our return on equity meaningfully higher compared to the prior year. We did this all while maintaining a strong balance sheet and buying back shares."<br>Canadian Banking delivered adjusted earnings<sup>(1)</sup> of $959 million, up 56% compared to the prior quarter and down 2% compared to the prior year. The continued focus on personal demand deposits contributed to quarter-over-quarter margin expansion.<br>International Banking generated adjusted earnings<sup>(1)</sup> of $716 million, up 7% year-over-year. Solid revenue generation and strong expense management resulted in another quarter of positive operating leverage reflecting the continued impact of productivity initiatives. Key measures of profitability also improved year-over-year.<br>Global Wealth Management adjusted earnings<sup>(1)</sup> were $427 million, up 13% year-over-year driven by strong revenue growth from higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. Additionally, assets under management<sup>(2)</sup> of $407 billion grew 12% year-over-year.<br>Global Banking and Markets reported earnings of $473 million, up 29% compared to the prior year. The results were supported by strong performance in our capital markets business as well as higher fee revenue.<br>The Bank reported a Common Equity Tier 1 (CET1) capital ratio<sup>(3)</sup> of 13.3%.<br><sup>(1)</sup> Refer to Non-GAAP Measures section starting on page 5.<br><sup>(2)</sup> Refer to Glossary on page 57 for the description of the measure.<br><sup>(3)</sup> The regulatory capital ratios are based on Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023).<br>![](g944686g01m03.jpg)<br>|

---

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#### **Table of Contents**
Enhanced Disclosure Task Force (EDTF) Recommendations

Below is the index of EDTF recommendations to facilitate easy reference in the Bank's public disclosure documents available on www.scotiabank.com/investorrelations.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Reference Table for EDTF | Reference Table for EDTF | Reference Table for EDTF | Reference Table for EDTF | Reference Table for EDTF | Reference Table for EDTF | Reference Table for EDTF |
|  |  |  | Q3 2025 | Q3 2025 | 2024 Annual Report | 2024 Annual Report |
| Type of risk | Number | Disclosure | Quarterly<br>Report | Supplementary<br>Regulatory Capital<br>Disclosures | MD&A | Financial<br>Statements |
| General | 1 | The index of risks to which the business is exposed. |  |  | 16 |  |
| General | 2 | The Bank's risk to terminology, measures and key parameters. |  |  | 75-78 |  |
| General | 3 | Top and emerging risks, and the changes during the reporting period. | 37-38 |  | 80-81, 85-91 |  |
| General | 4 | Discussion on the regulatory development and plans to meet new regulatory ratios. | 52-55 |  | 55-58, 100-103,<br>116 |  |
| Risk governance, risk management and business model | 5 | The Bank's Risk Governance structure. |  |  | 72-74 |  |
| Risk governance, risk management and business model | 6 | Description of risk culture and procedures applied to support the culture. |  |  | 75-78 |  |
| Risk governance, risk management and business model | 7 | Description of key risks from the Bank's business model. |  |  | 79 |  |
| Risk governance, risk management and business model | 8 | Stress testing use within the Bank's risk governance and capital management. |  |  | 75-76 |  |
| Capital Adequacy and risk-weighted assets | 9 | Pillar 1 capital requirements, and the impact for global systemically important banks. | 52-54 | 4-5 | 55-58 | 205 |
| Capital Adequacy and risk-weighted assets | 10 | a) Regulatory capital components. | 52-54, 82 | 21-23 | 59 |  |
| Capital Adequacy and risk-weighted assets |  | b) Reconciliation of the accounting balance sheet to the regulatory balance sheet. |  | 18-19 |  |  |
| Capital Adequacy and risk-weighted assets | 11 | Flow statement of the movements in regulatory capital since the previous reporting period, including changes in common equity tier 1, additional tier 1 and tier 2 capital. | 52-54 | 93 | 60-61 |  |
|  | 12 | Discussion of targeted level of capital, and the plans on how to establish this. |  |  | 55-58 |  |
|  | 13 | Analysis of risk-weighted assets by risk type, business, and market risk RWAs. |  | 6, 36-39, 43-60,<br>69-74, 78, 90, 96, 102 | 63-68, 79, 123 | 174 |
|  | 14 | Analysis of the capital requirements for each Basel asset class. |  | 16-17, 36-61,<br>67-74, 78, 83-86 | 63-68 | 174,<br>223-229 |
|  | 15 | Tabulate credit risk in the Banking Book. | 86-87 | 16-17, 36-6178, 83-86 | 63-68 | 224 |
|  | 16 | Flow statements reconciling the movements in risk-weighted assets for each risk-weighted asset type. |  | 62, 77, 95 | 63-68 |  |
|  | 17 | Discussion of Basel III Back-testing requirement including credit risk model performance and validation. |  | 100 | 64-66 |  |
| Liquidity Funding | 18 | Analysis of the Bank's liquid assets. | 44-47 |  | 98-103 |  |
| Liquidity Funding | 19 | Encumbered and unencumbered assets analyzed by balance sheet category. | 44-47 |  | 100 |  |
| Liquidity Funding | 20 | Consolidated total assets, liabilities and off-balance sheet commitments analyzed by remaining contractual maturity at the balance sheet date. | 51-52 |  | 104-106 |  |
| Liquidity Funding | 21 | Analysis of the Bank's sources of funding and a description of the Bank's funding strategy. | 49-50 |  | 103-104 |  |
| Market Risk | 22 | Linkage of market risk measures for trading and non-trading portfolios and the balance sheet. | 43 |  | 97 |  |
| Market Risk | 23 | Discussion of significant trading and non-trading market risk factors. | 87-88 |  | 92-98 | 228-229 |
| Market Risk | 24 | Discussion of changes in period on period VaR results as well as VaR assumptions, limitations, backtesting and validation. | 42, 88 |  | 92-98 | 228-229 |
| Market Risk | 25 | Other risk management techniques e.g. stress tests, tail risk and market liquidity horizon. |  |  | 92-98 | 228 |
| Credit Risk | 26 | Analysis of the aggregate credit risk exposures, including details of both personal and wholesale lending. |  | 6, 36-39, 43-60,<br>69-74 | 85-91, 118-123 | 184-185,<br>224-227 |
| Credit Risk | 27 | Discussion of the policies for identifying impaired loans, defining impairments and renegotiated loans, and explaining loan forbearance policies. |  |  |  | 154-156,<br>185 |
| Credit Risk | 28 | Reconciliations of the opening and closing balances of impaired loans and impairment allowances during the year. | 70 | 33-34 | 88, 118-121 | 185 |
| Credit Risk | 29 | Analysis of counterparty credit risk that arises from derivative transactions. | 54, 86-87 | 101 | 82-84 | 172-175 |
|  | 30 | Discussion of credit risk mitigation, including collateral held for all sources of credit risk. | 86-87 |  | 83-85, 89 |  |
| Other risks | 31 | Quantified measures of the management of operational risk. |  |  | 67, 107-108 |  |
|  | 32 | Discussion of publicly known risk items. | 54 |  | 71 |  |

---

2 Scotiabank Third Quarter Report 2025

------

MANAGEMENT'S DISCUSSION & ANALYSIS

MANAGEMENT'S DISCUSSION & ANALYSIS

The Management's Discussion and Analysis (MD&A) is provided to enable readers to assess the Bank's financial condition and results of operations as at and for the period ended July 31, 2025. The MD&A should be read in conjunction with the Bank's unaudited Condensed Interim Consolidated Financial Statements included in this Report to Shareholders, and the Bank's 2024 Annual Report. This MD&A is dated August 26, 2025.

Additional information relating to the Bank, including the Bank's 2024 Annual Report, is available on the Bank's website at www.scotiabank.com. As well, the Bank's 2024 Annual Report and Annual Information Form are available on SEDAR+ at www.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov.

Contents

---

| | |
|:---|:---|
|  | Management's Discussion and Analysis |
| 4.0 | [Financial Highlights](#tx944686_101) |
| 5.0 | [Non-GAAP Measures](#tx944686_102) |
| 16.0 | [Overview of Performance](#tx944686_103) |
| 18.0 | [Group Financial Performance](#tx944686_104) |
| 21.0 | [Business Segment Review](#tx944686_105) |

---

---

| | |
|:---|:---|
| 35.0 | [Geographic Highlights](#tx944686_106) |
| 36.0 | [Quarterly Financial Highlights](#tx944686_107) |
| 37.0 | [Financial Position](#tx944686_108) |
| 37.0 | [Risk Management](#tx944686_109) |
| 52.0 | [Capital Management](#tx944686_110) |
| 54.0 | [Financial Instruments](#tx944686_111) |
| 55.0 | [Off-Balance Sheet Arrangements](#tx944686_112) |

---

---

| | |
|:---|:---|
| 55.0 | [Regulatory Developments](#tx944686_113) |
| 55.0 | [Accounting Policies and Controls](#tx944686_114) |
| 56.0 | [Share Data](#tx944686_115) |
| 57.0 | [Glossary](#tx944686_116) |

---

Forward-looking Statements From time to time, our public communications 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 (SEC), 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 2024 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," "aim," "achieve," "foresee," "forecast," "anticipate," "intend," "estimate," "outlook," "seek," "schedule," "plan," "goal," "strive," "target," "project," "commit," "objective," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would," "might," "can" and "could" and positive and negative variations thereof.

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 and globally; 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, including relating to the care and control of information, and other risks arising from the Bank's use of third parties; 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; geopolitical risk (including the potential impact of new or elevated tariffs); changes to our credit ratings; the possible effects on our business and the global economy of war, conflicts or terrorist actions and unforeseen consequences arising from such actions; technological changes, including the use of data and artificial intelligence in our business, and technology resiliency; 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; anti-money laundering; disruptions or attacks (including cyberattacks) on the Bank's information technology, internet connectivity, network accessibility, or other voice or data communications systems or services, which may result in data breaches, unauthorized access to sensitive information, denial of service and potential incidents of identity theft; 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; environmental, social and governance risks, including climate change, our ability to implement various sustainability-related initiatives (both internally and with our clients and other stakeholders) under expected time frames, and our ability to scale our sustainable-finance products and services; the occurrence of natural and unnatural catastrophic events and claims resulting from such events, including disruptions to public infrastructure, such as transportation, communications, power or water supply; inflationary pressures; global supply-chain disruptions; Canadian housing and household indebtedness; the emergence or continuation of widespread health emergencies or pandemics, including their 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 2024 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 2024 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" and "2025 Priorities" 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.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov.

Scotiabank Third Quarter Report 2025 3

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MANAGEMENT'S DISCUSSION & ANALYSIS

Financial Highlights

T1 Financial highlights

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | As at and for the three months ended | As at and for the three months ended | As at and for the three months ended | As at and for the<br>nine months ended | As at and for the<br>nine months ended |
| (Unaudited) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| Operating results ($ millions) |  |  |  |  |  |
| Net interest income | 5493 | 5270 | 4862 | 15936 | 14329 |
| Non-interest income | 3993 | 3810 | 3502 | 12002 | 10815 |
| Total revenue | 9486 | 9080 | 8364 | &nbsp;&nbsp;&nbsp;&nbsp;27938 | &nbsp;&nbsp;&nbsp;&nbsp;25144 |
| Provision for credit losses | 1041 | 1398 | 1052 | 3601 | 3021 |
| Non-interest expenses | 5089 | 5110 | 4949 | 16690 | 14399 |
| Income tax expense | 829 | 540 | 451 | 2095 | 1521 |
| Net income | 2527 | 2032 | 1912 | 5552 | 6203 |
| Net income attributable to common shareholders | 2313 | 1841 | 1756 | 5179 | 5765 |
| **Operating performance** |  |  |  |  |  |
| Basic earnings per share ($) | 1.84 | 1.48 | 1.43 | 4.14 | 4.72 |
| Diluted earnings per share ($) | 1.84 | 1.48 | 1.41 | 4.02 | 4.66 |
| Return on equity (%)<sup>(1)</sup> | 12.2 | 10.1 | 9.8 | 9.3 | 10.9 |
| Return on tangible common equity (%)<sup>(2)</sup> | 15 | 12.5 | 11.9 | 11.4 | 13.4 |
| Productivity ratio (%)<sup>(1)</sup> | 53.7 | 56.3 | 59.2 | 59.7 | 57.3 |
| Net interest margin (%)<sup>(2)</sup> | 2.36 | 2.31 | 2.14 | 2.30 | 2.17 |
| Financial position information ($ millions)  |  |  |  |  |  |
| Cash and deposits with financial institutions | 69701 | 63577 | 58329 |  |  |
| Trading assets | 136485 | 128987 | 133999 |  |  |
| Loans | 761560 | 756372 | 759211 |  |  |
| Total assets | 1414686 | 1415465 | 1402366 |  |  |
| Deposits | 946842 | 945843 | 949201 |  |  |
| Common equity | 75258 | 74686 | 72725 |  |  |
| Preferred shares and other equity instruments | 8544 | 10232 | 8779 |  |  |
| Assets under administration<sup>(1)</sup> | 825070 | 779054 | 760975 |  |  |
| Assets under management<sup>(1)</sup> | 407017 | 379889 | 363933 |  |  |
| **Capital and liquidity measures** |  |  |  |  |  |
| Common Equity Tier 1 (CET1) capital ratio (%)<sup>(3)</sup> | 13.3 | 13.2 | 13.3 |  |  |
| Tier 1 capital ratio (%)<sup>(3)</sup> | 15.2 | 15.4 | 15.3 |  |  |
| Total capital ratio (%)<sup>(3)</sup> | 16.9 | 17.1 | 17.1 |  |  |
| Total loss absorbing capacity (TLAC) ratio (%)<sup>(4)</sup> | 29 | 30.3 | 29.1 |  |  |
| Leverage ratio (%)<sup>(5)</sup> | 4.5 | 4.5 | 4.5 |  |  |
| TLAC Leverage ratio (%)<sup>(4)</sup> | 8.6 | 8.9 | 8.5 |  |  |
| Risk-weighted assets ($ millions)<sup>(3)</sup> | 463484 | 458989 | 453658 |  |  |
| Liquidity coverage ratio (LCR) (%)<sup>(6)</sup> | 126 | 131 | 133 |  |  |
| Net stable funding ratio (NSFR) (%)<sup>(6)</sup> | 120 | 120 | 117 |  |  |
| **Credit quality** |  |  |  |  |  |
| Net impaired loans ($ millions) | 4656 | 4648 | 4449 |  |  |
| Allowance for credit losses ($ millions)<sup>(7)</sup> | 7386 | 7276 | 6860 |  |  |
| Gross impaired loans as a % of loans and acceptances<sup>(1)</sup> | 0.90 | 0.90 | 0.84 |  |  |
| Net impaired loans as a % of loans and acceptances<sup>(1)</sup> | 0.61 | 0.61 | 0.58 |  |  |
| Provision for credit losses as a % of average net loans and acceptances (annualized)<sup>(1)(8)</sup> | 0.55 | 0.75 | 0.55 | 0.63 | 0.53 |
| Provision for credit losses on impaired loans as a % of average net loans and acceptances (annualized)<sup>(1)(8)</sup> | 0.51 | 0.57 | 0.51 | 0.54 | 0.51 |
| Net write-offs as a % of average net loans and acceptances (annualized)<sup>(1)</sup> | 0.50 | 0.50 | 0.45 | 0.50 | 0.45 |
| **Adjusted results<sup>(2)</sup>** |  |  |  |  |  |
| Adjusted total revenue ($ millions) | 9494 | 9098 | 8507 | 27964 | 25287 |
| Adjusted non-interest expenses ($ millions) | 5095 | 5067 | 4763 | 15273 | 14177 |
| Adjusted net income ($ millions) | 2518 | 2072 | 2191 | 6952 | 6508 |
| Adjusted diluted earnings per share ($) | 1.88 | 1.52 | 1.63 | 5.16 | 4.90 |
| Adjusted return on equity (%) | 12.4 | 10.4 | 11.3 | 11.6 | 11.5 |
| Adjusted return on tangible common equity (%) | 15.1 | 12.7 | 13.7 | 14.1 | 14 |
| Adjusted productivity ratio (%) | 53.7 | 55.7 | 56 | 54.6 | 56.1 |
| **Common share information** |  |  |  |  |  |
| Closing share price ($)(TSX) | 77.09 | 68.98 | 64.47 |  |  |
| Shares outstanding (millions) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average – Basic | 1244 | 1246 | 1230 | 1245 | 1222 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average – Diluted | 1245 | 1246 | 1235 | 1250 | 1228 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period | 1242 | 1246 | 1237 |  |  |
| Dividends paid per share ($) | 1.10 | 1.06 | 1.06 | 3.22 | 3.18 |
| Dividend yield (%)<sup>(1)</sup> | 6 | 6.2 | 6.6 | 6 | 6.7 |
| Market capitalization ($ millions) (TSX) | 95781 | 85918 | 79771 |  |  |
| Book value per common share ($)<sup>(1)</sup> | 60.57 | 59.96 | 58.78 |  |  |
| Market value to book value multiple<sup>(1)</sup> | 1.3 | 1.2 | 1.1 |  |  |
| Price to earnings multiple (trailing 4 quarters)<sup>(1)</sup> | 14.4 | 13.9 | 11.3 |  |  |
| **Other information** |  |  |  |  |  |
| Employees (full-time equivalent) | 87317 | 86746 | 89239 |  |  |
| Branches and offices | 2135 | 2139 | 2279 |  |  |

---

(1) Refer to Glossary on page 57 for the description of the measure.

(2) Refer to Non-GAAP Measures section starting on page 5.

(3) The regulatory capital ratios are based on Basel III requirements as determined in accordance with the Office of the Superintendent of Financial Institutions (OSFI) Guideline – Capital Adequacy Requirements.

(4) This measure has been disclosed in this document in accordance with OSFI Guideline – Total Loss Absorbing Capacity.

(5) The leverage ratios are based on Basel III requirements as determined in accordance with OSFI Guideline – Leverage Requirements.

(6) The LCR and NSFR are calculated in accordance with OSFI Guideline – Liquidity Adequacy Requirements (LAR).

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

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

4 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Non-GAAP Measures

The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted 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 and therefore might not be comparable to similar financial measures and ratios disclosed by other issuers. The Bank believes that non-GAAP measures and ratios are useful as they provide readers with a better understanding of how management assesses performance. These non-GAAP measures and ratios are used throughout this report and defined below.

Adjusted results and diluted earnings per share

The following tables present a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expenses, income taxes and non-controlling interests. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance.

Scotiabank Third Quarter Report 2025 5

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MANAGEMENT'S DISCUSSION & ANALYSIS

T2 Reconciliation of reported and adjusted results

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| **Reported Results** |  |  |  |  |  |
| Net interest income | $5493 | $5270 | $4862 | $15936 | $14329 |
| Non-interest income | 3993 | 3810 | 3502 | 12002 | 10815 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 9486 | 9080 | 8364 | 27938 | 25144 |
| Provision for credit losses | 1041 | 1398 | 1052 | 3601 | 3021 |
| Non-interest expenses | 5089 | 5110 | 4949 | 16690 | 14399 |
| Income before taxes | 3356 | 2572 | 2363 | 7647 | 7724 |
| Income tax expense | 829 | 540 | 451 | 2095 | 1521 |
| **Net income** | $2527 | $2032 | $1912 | $5552 | $6203 |
| Net income attributable to non-controlling interests in subsidiaries (NCI) | 80 | 56 | 36 | (18) | 87 |
| Net income attributable to equity holders | 2447 | 1976 | 1876 | 5570 | 6116 |
| Net income attributable to preferred shareholders and other equity instrument holders | 134 | 135 | 120 | 391 | 351 |
| **Net income attributable to common shareholders** | $2313 | $1841 | $1756 | $5179 | $5765 |
| **Adjustments** |  |  |  |  |  |
| Adjusting items impacting non-interest income and total revenue (Pre-tax) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(a) Divestitures and wind-down of operations | $– | $9 | $143 | $9 | $143 |
| &nbsp;&nbsp;&nbsp;&nbsp;(b) Amortization of acquisition-related intangible assets | 8 | 9 |  | 17 |  |
| Total non-interest income and total revenue adjusting items (Pre-tax) | 8 | 18 | 143 | 26 | 143 |
| Adjusting items impacting non-interest expenses (Pre-tax) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(a) Divestitures and wind-down of operations | (23) | 26 | (7) | 1365 | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;(b) Amortization of acquisition-related intangible assets | 17 | 17 | 17 | 52 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;(c) Legal provision |  |  | 176 |  | 176 |
| Total non-interest expense adjusting items (Pre-tax) | (6) | 43 | 186 | 1417 | 222 |
| **Total impact of adjusting items on net income before taxes** | 2 | 61 | 329 | 1443 | 365 |
| Impact of adjusting items on income tax expense |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(a) Divestitures and wind-down of operations | (6) | (15) | (46) | (28) | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;(b) Amortization of acquisition-related intangible assets | (5) | (6) | (4) | (15) | (14) |
| **Total impact of adjusting items on income tax expense** | (11) | (21) | (50) | (43) | (60) |
| **Total impact of adjusting items on net income** | $(9) | $40 | $279 | $1400 | $305 |
| Impact of adjusting items on NCI | 37 | 16 | (2) | (138) | (2) |
| **Total impact of adjusting items on net income attributable to equity holders** | $28 | $56 | $277 | $1262 | $303 |
| **Adjusted Results** |  |  |  |  |  |
| Net interest income | $5493 | $5270 | $4862 | $15936 | $14329 |
| Non-interest income | 4001 | 3828 | 3645 | 12028 | 10958 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 9494 | 9098 | 8507 | 27964 | 25287 |
| Provision for credit losses | 1041 | 1398 | 1052 | 3601 | 3021 |
| Non-interest expenses | 5095 | 5067 | 4763 | 15273 | 14177 |
| Income before taxes | 3358 | 2633 | 2692 | 9090 | 8089 |
| Income tax expense | 840 | 561 | 501 | 2138 | 1581 |
| **Net income** | $2518 | $2072 | $2191 | $6952 | $6508 |
| Net income attributable to NCI | 43 | 40 | 38 | 120 | 89 |
| Net income attributable to equity holders | 2475 | 2032 | 2153 | 6832 | 6419 |
| Net income attributable to preferred shareholders and other equity instrument holders | 134 | 135 | 120 | 391 | 351 |
| **Net income attributable to common shareholders** | $2341 | $1897 | $2033 | $6441 | $6068 |

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6 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

The Bank's quarterly financial results were adjusted for the following items. These amounts were recorded in the Other operating segment, unless otherwise noted.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Divestitures and wind-down of operations

On January 6, 2025, the Bank entered into an agreement to sell its banking operations in Colombia, Costa Rica and Panama in exchange for an approximately 20% ownership stake in the newly combined entity of Davivienda. On that date, the Bank recognized an impairment loss of $1,362 million ($1,355 million after-tax) as the banking operations that are part of the transaction were classified as held-for-sale. Subsequently, in Q2 2025, the Bank recognized an additional impairment loss of $26 million ($8 million after-tax) and in Q3 2025 recognized a partial reversal of the impairment loss of $23 million ($29 million after-tax). These subsequent changes represent changes in the carrying value of the assets being sold, as well as changes in foreign currency. These amounts were recorded in non-interest expenses – other. For further details, please refer to Note 20 of the Condensed Interim Consolidated Financial Statements.

In Q2 2025, the Bank completed the sale of CrediScotia Financiera S.A. (CrediScotia), a wholly-owned consumer finance subsidiary in Peru, to Banco Santander S.A. (Espana). The Bank recognized an additional loss of $9 million in non-interest income – other upon closing. In Q3 2024, the Bank had recognized an impairment loss of $143 million in non-interest income – other and a recovery of expenses of $7 million in non-interest expenses – salaries and employee benefits (collectively $90 million after-tax), the majority of which related to goodwill. For further details, please refer to Note 20 of the Condensed Interim Consolidated Financial Statements.

In Q4 2023, the Bank sold its 20% equity interest in Canadian Tire's Financial Services business (CTFS) to Canadian Tire Corporation. The sale resulted in a net gain of $367 million ($319 million after-tax) and was recorded in non-interest income – other. For further details, please refer to Note 37 of the Consolidated Financial Statements in the 2024 Annual Report to Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Amortization of acquisition-related intangible assets

These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software. These costs are recorded in non-interest expenses – depreciation and amortization for the Canadian Banking, International Banking and Global Wealth Management operating segments, and non-interest income – net income from investments in associated corporations for the Other operating segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Legal provision

In Q3 2024, the Bank recognized a $176 million expense for legal actions in Peru relating to certain value-added tax assessed amounts and associated interest. The legal actions arose from certain client transactions that occurred prior to the Bank's acquisition of its Peruvian subsidiary. For further details, please refer to Note 24 of the Consolidated Financial Statements in the 2024 Annual Report to Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Restructuring charge and severance provisions

In Q4 2024, the Bank recorded severance provisions of $53 million ($38 million after-tax) related to the Bank's continued efforts to streamline its organizational structure and support execution of the Bank's strategy. In Q4 2023, the Bank recorded a restructuring charge and severance provisions of $354 million ($258 million after-tax) related to workforce reductions and changing business needs, as well as ongoing efforts to streamline operational processes and optimize distribution channels. For further details, please refer to Note 24 of the Consolidated Financial Statements in the 2024 Annual Report to Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Impairment of non-financial assets

In Q4 2024, the Bank recorded impairment charges of $343 million ($309 million after-tax) related to its investment in associate, Bank of Xi'an Co. Ltd. in China, driven primarily by the continued weakening of the economic outlook in China and whose market value has remained below the Bank's carrying value for a prolonged period (Q4 2023 – $185 million pre-tax and $159 million after-tax). In Q4 2024, the Bank recorded an impairment of software intangible assets of $97 million ($70 million after-tax). In Q4 2023, the Bank recorded an impairment of software and other intangible assets of $161 million ($114 million after-tax). For further details, please refer to Notes 18 and 19 of the Consolidated Financial Statements in the 2024 Annual Report to Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Consolidation of real estate and contract termination costs

In Q4 2023, the Bank recorded costs of $87 million ($63 million after-tax) related to the consolidation and exit of certain real estate premises, as well as service contract termination costs, as part of the Bank's optimization strategy.

In addition to the above, the following adjustment also impacted earnings per share calculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) Foreign currency loss on redemption of Subordinated Additional Tier 1 Capital Note

In Q3 2025, the Bank redeemed all outstanding U.S. $1,250 million 4.900% Fixed Rate Resetting Perpetual Subordinated Additional Tier 1 Capital Notes (AT1 Note). The redemption resulted in a foreign currency loss of $22 million, which was recognized in retained earnings. The loss was deducted from net income attributable to common shareholders for the purposes of calculating basic and diluted earnings per share (EPS). For the adjusted diluted EPS calculation, the loss was added back as an adjusting item (refer to Table T2A for reconciliation). For further details, please refer to Note 11 and Note 17 of the Condensed Interim Consolidated Financial Statements.

Scotiabank Third Quarter Report 2025 7

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MANAGEMENT'S DISCUSSION & ANALYSIS

T2A Reconciliation of reported and adjusted diluted earnings per common share

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| **Reported Results** |  |  |  |  |  |
| Net income attributable to common shareholders | $2313 | $1841 | $1756 | $5179 | $5765 |
| Foreign currency loss on redemption of Subordinated Additional Tier 1 Capital Notes | (22) |  |  | (22) |  |
| Net income attributable to common shareholders used to calculate basic earnings per common share | $2291 | $1841 | $1756 | $5157 | $5765 |
| Dilutive impact of share-based payment options and others |  |  | (15) | (136) | (46) |
| **Net income attributable to common shareholders (diluted)** | 2291 | 1841 | 1741 | 5021 | 5719 |
| Weighted average number of diluted common shares outstanding (millions) | 1245 | 1246 | 1235 | 1250 | 1228 |
| Diluted earnings per common share (in dollars) | 1.84 | 1.48 | 1.41 | 4.02 | 4.66 |
| **Adjusted Results** |  |  |  |  |  |
| Net income attributable to common shareholders used to calculate basic earnings per common share | $2291 | $1841 | $1756 | $5157 | $5765 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of adjusting items on net income attributable to common shareholders<sup>(1)</sup> | 28 | 56 | 277 | 1262 | 303 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency loss on redemption of Subordinated Additional Tier 1 Capital Notes | 22 |  |  | 22 |  |
| Adjusted net income attributable to common shareholders used to calculate adjusted basic earnings per common share | 2341 | 1897 | 2033 | 6441 | 6068 |
| Dilutive impact of share-based payment options and others | 8 | 1 | (16) | 3 | (46) |
| **Adjusted net income attributable to common shareholders (diluted)** | 2349 | 1898 | 2017 | 6444 | 6022 |
| Weighted average number of diluted common shares outstanding (millions) | 1249 | 1250 | 1235 | 1250 | 1228 |
| Adjusted diluted earnings per common share (in dollars) | 1.88 | 1.52 | 1.63 | 5.16 | 4.90 |
| Impact of adjustments on diluted earnings per share (in dollars) | $0.04 | $0.04 | $0.22 | $1.14 | $0.24 |

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(1) Refer to Table T2 for details of adjusting items.

T2B Reconciliation of reported and adjusted results by business line

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended July 31, 2025<sup>(1)</sup> | For the three months ended July 31, 2025<sup>(1)</sup> | For the three months ended July 31, 2025<sup>(1)</sup> | For the three months ended July 31, 2025<sup>(1)</sup> | For the three months ended July 31, 2025<sup>(1)</sup> | For the three months ended July 31, 2025<sup>(1)</sup> |
| ($ millions) | Canadian<br>Banking | International<br>Banking | Global<br>Wealth<br>Management | Global<br>Banking<br>and Markets | Other | Total |
| **Reported net income (loss)** | $958 | $711 | $420 | $473 | $(35) | $2527 |
| Net income attributable to non-controlling interests in subsidiaries (NCI) |  | 41 | 3 |  | 36 | 80 |
| **Reported net income attributable to equity holders** | 958 | 670 | 417 | 473 | (71) | 2447 |
| Reported net income attributable to preferred shareholders and other equity instrument holders |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;134 | 134 |
| **Reported net income attributable to common shareholders** | $958 | $670 | $417 | $473 | $(205) | $2313 |
| **Adjustments:** |  |  |  |  |  |  |
| Adjusting items impacting non-interest income and total revenue (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets |  |  |  |  | 8 | 8 |
| Adjusting items impacting non-interest expenses (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | (23) | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 1 | 7 | 9 |  |  | 17 |
| Total non-interest expenses adjustments (Pre-tax) | 1 | 7 | 9 |  | (23) | (6) |
| **Total impact of adjusting items on net income before taxes** | 1 | 7 | 9 |  | (15) | 2 |
| Total impact of adjusting items on income tax expense |  | (2) | (2) |  | (7) | (11) |
| **Total impact of adjusting items on net income** | 1 | 5 | 7 |  | (22) | (9) |
| Impact of adjusting items on NCI |  |  |  |  | 37 | 37 |
| **Total impact of adjusting items on net income attributable to equity holders** | 1 | 5 | 7 |  | 15 | 28 |
| **Adjusted net income (loss)** | $959 | $716 | $427 | $473 | $(57) | $2518 |
| **Adjusted net income attributable to equity holders** | $959 | $675 | $424 | $473 | $(56) | $2475 |
| **Adjusted net income attributable to common shareholders** | $959 | $675 | $424 | $473 | $(190) | $2341 |

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(1) Refer to Business Segment Review on page 21.

8 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended April 30, 2025<sup>(1)</sup> | For the three months ended April 30, 2025<sup>(1)</sup> | For the three months ended April 30, 2025<sup>(1)</sup> | For the three months ended April 30, 2025<sup>(1)</sup> | For the three months ended April 30, 2025<sup>(1)</sup> | For the three months ended April 30, 2025<sup>(1)</sup> |
| ($ millions) | Canadian<br>Banking | International<br>Banking | Global<br>Wealth<br>Management | Global<br>Banking<br>and Markets | Other | Total |
| **Reported net income (loss)** | $613 | $714 | $401 | $412 | $(108) | $2032 |
| Net income attributable to non-controlling interests in subsidiaries (NCI) |  | 38 | 2 | (1) | 17 | 56 |
| **Reported net income attributable to equity holders** | 613 | 676 | 399 | 413 | (125) | 1976 |
| Reported net income attributable to preferred shareholders and other equity instrument holders |  |  |  |  | 135 | 135 |
| **Reported net income attributable to common shareholders** | $613 | $676 | $399 | $413 | $(260) | $1841 |
| **Adjustments:** |  |  |  |  |  |  |
| Adjusting items impacting non-interest income and total revenue (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | 9 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets |  |  |  |  | 9 | 9 |
| Total non-interest income and total revenue adjustments (Pre-tax) |  |  |  |  | 18 | 18 |
| Adjusting items impacting non-interest expenses (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | 26 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 1 | 7 | 9 |  |  | 17 |
| Total non-interest expenses adjustments (Pre-tax) | 1 | 7 | 9 |  | 26 | 43 |
| **Total impact of adjusting items on net income before taxes** | 1 | 7 | 9 |  | 44 | 61 |
| Total impact of adjusting items on income tax expense | (1) | (2) | (3) |  | (15) | (21) |
| **Total impact of adjusting items on net income** |  | 5 | 6 |  | 29 | 40 |
| Impact of adjusting items on NCI |  |  |  |  | 16 | 16 |
| **Total impact of adjusting items on net income attributable to equity holders** |  | 5 | 6 |  | 45 | 56 |
| **Adjusted net income (loss)** | $613 | $719 | $407 | $412 | $(79) | $2072 |
| **Adjusted net income attributable to equity holders** | $613 | $681 | $405 | $413 | $(80) | $2032 |
| **Adjusted net income attributable to common shareholders** | $613 | $681 | $405 | $413 | $(215) | $1897 |

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(1) Refer to Business Segment Review on page 21.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> |
| ($ millions) | Canadian<br>Banking<sup>(2)</sup> | International<br>Banking<sup>(2)</sup> | Global<br>Wealth<br>Management<sup>(2)</sup> | Global<br>Banking<br>and Markets<sup>(2)</sup> | Other<sup>(2)</sup> | Total |
| **Reported net income (loss)** | $977 | $664 | $370 | $368 | $(467) | $1912 |
| Net income attributable to non-controlling interests in subsidiaries (NCI) |  | 35 | 3 |  | (2) | 36 |
| **Reported net income attributable to equity holders** | 977 | 629 | 367 | 368 | (465) | 1876 |
| Reported net income attributable to preferred shareholders and other<br> equity instrument holders |  |  |  |  | 120 | 120 |
| **Reported net income attributable to common shareholders** | $977 | $629 | $367 | $368 | $(585) | $1756 |
| **Adjustments:** |  |  |  |  |  |  |
| Adjusting items impacting non-interest income and total revenue (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | 143 | 143 |
| Adjusting items impacting non-interest expenses (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | (7) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 1 | 7 | 9 |  |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal provision |  |  |  |  | 176 | 176 |
| Total non-interest expenses adjustments (Pre-tax) | 1 | 7 | 9 |  | 169 | 186 |
| **Total impact of adjusting items on net income before taxes** | 1 | 7 | 9 |  | 312 | 329 |
| Impact of adjusting items on income tax expense |  | (2) | (2) |  | (46) | (50) |
| **Total impact of adjusting items on net income** | 1 | 5 | 7 |  | 266 | 279 |
| Impact of adjusting items on NCI |  |  |  |  | (2) | (2) |
| **Total impact of adjusting items on net income attributable to equity holders** | 1 | 5 | 7 |  | 264 | 277 |
| **Adjusted net income (loss)** | $978 | $669 | $377 | $368 | $(201) | $2191 |
| **Adjusted net income attributable to equity holders** | $978 | $634 | $374 | $368 | $(201) | $2153 |
| **Adjusted net income attributable to common shareholders** | $978 | $634 | $374 | $368 | $(321) | $2033 |

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(1) Refer to Business Segment Review on page 21.

(2) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

Scotiabank Third Quarter Report 2025 9

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MANAGEMENT'S DISCUSSION & ANALYSIS

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the nine months ended July 31, 2025<sup>(1)</sup> | For the nine months ended July 31, 2025<sup>(1)</sup> | For the nine months ended July 31, 2025<sup>(1)</sup> | For the nine months ended July 31, 2025<sup>(1)</sup> | For the nine months ended July 31, 2025<sup>(1)</sup> | For the nine months ended July 31, 2025<sup>(1)</sup> |
| ($ millions) | Canadian<br>Banking | International<br>Banking | Global<br>Wealth<br>Management | Global<br>Banking<br>and Markets | Other | Total |
| **Reported net income (loss)** | $2484 | $2111 | $1230 | $1402 | $(1675) | $5552 |
| Net income attributable to non-controlling interests in subsidiaries (NCI) |  | 114 | 7 | (1) | (138) | (18) |
| **Reported net income attributable to equity holders** | 2484 | 1997 | 1223 | 1403 | (1537) | 5570 |
| Reported net income attributable to preferred shareholders and other equity instrument holders |  |  |  |  | 391 | 391 |
| **Reported net income attributable to common shareholders** | $2484 | $1997 | $1223 | $1403 | $(1928) | $5179 |
| **Adjustments:** |  |  |  |  |  |  |
| Adjusting items impacting non-interest income and total revenue (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | 9 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets |  |  |  |  | 17 | 17 |
| Total non-interest income and total revenue adjustments (Pre-tax) |  |  |  |  | 26 | 26 |
| Adjusting items impacting non-interest expenses (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | 1365 | 1365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 3 | 22 | 27 |  |  | 52 |
| Total non-interest expenses adjustments (Pre-tax) | 3 | 22 | 27 |  | 1365 | 1417 |
| **Total impact of adjusting items on net income before taxes** | 3 | 22 | 27 |  | 1391 | 1443 |
| Impact of adjusting items on income tax expense | (1) | (6) | (7) |  | (29) | (43) |
| **Total impact of adjusting items on net income** | 2 | 16 | 20 |  | 1362 | 1400 |
| Impact of adjusting items on NCI |  |  |  |  | (138) | (138) |
| **Total impact of adjusting items on net income attributable to equity holders** | 2 | 16 | 20 |  | 1224 | 1262 |
| **Adjusted net income (loss)** | $2486 | $2127 | $1250 | $1402 | $(313) | $6952 |
| **Adjusted net income attributable to equity holders** | $2486 | $2013 | $1243 | $1403 | $(313) | $6832 |
| **Adjusted net income attributable to common shareholders** | $2486 | $2013 | $1243 | $1403 | $(704) | $6441 |

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(1) Refer to Business Segment Review on page 21.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> |
| ($ millions) | Canadian<br>Banking<sup>(2)</sup> | International<br>Banking<sup>(2)</sup> | Global<br>Wealth<br>Management<sup>(2)</sup> | Global<br>Banking<br>and Markets<sup>(2)</sup> | Other<sup>(2)</sup> | Total |
| **Reported net income (loss)** | $2843 | $2062 | $1046 | $1131 | $(879) | $6203 |
| Net income attributable to non-controlling interests in subsidiaries (NCI) |  | 81 | 8 |  | (2) | 87 |
| **Reported net income attributable to equity holders** | 2843 | 1981 | 1038 | 1131 | (877) | 6116 |
| Reported net income attributable to preferred shareholders and other equity instrument holders | 1 | 1 | 1 | 1 | 347 | 351 |
| **Reported net income attributable to common shareholders** | $2842 | $1980 | $1037 | $1130 | $(1224) | $5765 |
| **Adjustments:** |  |  |  |  |  |  |
| Adjusting items impacting non-interest income and total revenue (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | 143 | 143 |
| Adjusting items impacting non-interest expenses (Pre-tax) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations |  |  |  |  | (7) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 3 | 23 | 27 |  |  | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal provision |  |  |  |  | 176 | 176 |
| Total non-interest expenses adjustments (Pre-tax) | 3 | 23 | 27 |  | 169 | 222 |
| **Total impact of adjusting items on net income before taxes** | 3 | 23 | 27 |  | 312 | 365 |
| Impact of adjusting items on income tax expense | (1) | (6) | (7) |  | (46) | (60) |
| **Total impact of adjusting items on net income** | 2 | 17 | 20 |  | 266 | 305 |
| Impact of adjusting items on NCI |  |  |  |  | (2) | (2) |
| **Total impact of adjusting items on net income attributable to equity holders** | 2 | 17 | 20 |  | 264 | 303 |
| **Adjusted net income (loss)** | $2845 | $2079 | $1066 | $1131 | $(613) | $6508 |
| **Adjusted net income attributable to equity holders** | $2845 | $1998 | $1058 | $1131 | $(613) | $6419 |
| **Adjusted net income attributable to common shareholders** | $2844 | $1997 | $1057 | $1130 | $(960) | $6068 |

---

(1) Refer to Business Segment Review on page 21.

(2) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

10 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Constant Dollar

International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure. 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, adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. The tables below are computed on a basis that is different than the table "Impact of foreign currency translation" in Overview of Performance on page 17.

T3 Reconciliation of International Banking's reported and adjusted results and constant dollar results

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Reported Results | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended | For the nine months ended |
| ($ millions) | April 30, 2025 | April 30, 2025 | April 30, 2025 | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> |
| (Taxable equivalent basis) | Reported | Foreign<br>exchange | Constant<br>dollar | Reported | Foreign<br>exchange | Constant<br>dollar | Reported | Foreign<br>exchange | Constant<br>dollar |
| Net interest income | $2179 | $28 | $2151 | $2226 | $36 | $2190 | $6720 | $88 | $6632 |
| Non-interest income | 780 | 8 | 772 | 747 | 12 | 735 | 2287 | 39 | 2248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 2959 | 36 | 2923 | 2973 | 48 | 2925 | 9007 | 127 | 8880 |
| Provision for credit losses | 550 | 6 | 544 | 589 | 9 | 580 | 1729 | 18 | 1711 |
| Non-interest expenses | 1523 | 11 | 1512 | 1550 | 30 | 1520 | 4679 | 101 | 4578 |
| Income before taxes | 886 | 19 | 867 | 834 | 9 | 825 | 2599 | 8 | 2591 |
| Income tax expense | 172 | 3 | 169 | 170 | 2 | 168 | 537 | 4 | 533 |
| **Net income** | $714 | $16 | $698 | $664 | $7 | $657 | $2062 | $4 | $2058 |
| Net income attributable to non-controlling interests in subsidiaries (NCI) | $38 | $1 | $37 | $35 | $– | $35 | $81 | $(4) | $85 |
| Net income attributable to equity holders of the Bank | $676 | $15 | $661 | $629 | $7 | $622 | $1981 | $8 | $1973 |
| **Other measures** |  |  |  |  |  |  |  |  |  |
| Average assets ($ billions) | $229 | $3 | $226 | $233 | $4 | $229 | $234 | $3 | $231 |
| Average liabilities ($ billions) | $177 | $2 | $175 | $179 | $4 | $175 | $181 | $3 | $178 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Adjusted Results | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended | For the nine months ended |
| ($ millions) | April 30, 2025 | April 30, 2025 | April 30, 2025 | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> | July 31, 2024<sup>(1)</sup> |
| (Taxable equivalent basis) | Adjusted | Foreign<br>exchange | Constant<br>dollar<br>adjusted | Adjusted | Foreign<br>exchange | Constant<br>dollar<br>adjusted | Adjusted | Foreign<br>exchange | Constant<br>dollar<br>adjusted |
| Net interest income | $2179 | $28 | $2151 | $2226 | $36 | $2190 | $6720 | $88 | $6632 |
| Non-interest income | 780 | 8 | 772 | 747 | 12 | 735 | 2287 | 39 | 2248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 2959 | 36 | 2923 | 2973 | 48 | 2925 | 9007 | 127 | 8880 |
| Provision for credit losses | 550 | 6 | 544 | 589 | 9 | 580 | 1729 | 18 | 1711 |
| Non-interest expenses | 1516 | 11 | 1505 | 1543 | 31 | 1512 | 4656 | 102 | 4554 |
| Income before taxes | 893 | 19 | 874 | 841 | 8 | 833 | 2622 | 7 | 2615 |
| Income tax expense | 174 | 3 | 171 | 172 | 2 | 170 | 543 | 3 | 540 |
| **Net income** | $719 | $16 | $703 | $669 | $6 | $663 | $2079 | $4 | $2075 |
| Net income attributable to non-controlling interests in subsidiaries (NCI) | $38 | $1 | $37 | $35 | $– | $35 | $81 | $(4) | $85 |
| Net income attributable to equity holders of the Bank | $681 | $15 | $666 | $634 | $6 | $628 | $1998 | $8 | $1990 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

Earning and non-earning assets, core earning assets, core net interest income and net interest margin

Net interest margin

Net interest margin is a non-GAAP ratio that is used to measure the return generated by the Bank's core earning assets, net of the cost of funding.

Net interest margin is calculated as core net interest income divided by average core earning assets. Management uses net interest margin to measure profitability and how efficiently the Bank earns income from its core earning assets relative to the cost of funding those assets.

Scotiabank Third Quarter Report 2025 11

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MANAGEMENT'S DISCUSSION & ANALYSIS

Components of net interest margin are defined below:

Earning assets

Earning assets are defined as income generating assets which include deposits with financial institutions, trading assets, investment securities, investments in associates, securities borrowed or purchased under resale agreements, loans net of allowances, and customers' liability under acceptances. This is a non-GAAP measure.

Non-earning assets

Non-earning assets are defined as cash, precious metals, derivative financial instruments, property and equipment, goodwill and intangible assets, deferred tax assets and other assets. This is a non-GAAP measure.

Core earning assets

Core earning assets are defined as interest-bearing deposits with financial institutions, investment securities and loans, net of allowances. This is a non-GAAP measure. The Bank believes that this measure is useful for readers as it presents the main interest-generating assets and eliminates the impact of trading businesses.

Core net interest income

Core net interest income is defined as net interest income earned from core earning assets. This is a non-GAAP measure.

T4 Calculation of net interest margin

Consolidated Bank

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| **Average total assets – Reported<sup>(1)</sup>** | $1445858 | $1468310 | $1422740 | $1458099 | $1419395 |
| Less: Non-earning assets | 114263 | 118403 | 105539 | 115861 | 108556 |
| **Average total earning assets<sup>(1)</sup>** | $1331595 | $1349907 | $1317201 | $1342238 | $1310839 |
| Less: |  |  |  |  |  |
| Trading assets | 148567 | 150997 | 153248 | 152046 | 146680 |
| Securities purchased under resale agreements and securities borrowed | 200737 | 206266 | 189557 | 202604 | 192011 |
| Other deductions | 36154 | 35003 | 49172 | 34883 | 61383 |
| Average core earning assets<sup>(1)</sup> | $946137 | $957641 | $925224 | $952705 | $910765 |
| **Net interest income – Reported** | $5493 | $5270 | $4862 | $15936 | $14329 |
| Less: Non-core net interest income | (143) | (135) | (125) | (478) | (462) |
| **Core net interest income** | $5636 | $5405 | $4987 | $16414 | $14791 |
| **Net interest margin** | 2.36% | 2.31% | 2.14% | 2.30% | 2.17% |

---

(1) Average balances represent the average of daily balances for the period.

Canadian Banking

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Average total assets – Reported<sup>(2)</sup>** | $463108 | $461444 | $451194 | $461483 | $447006 |
| Less: Non-earning assets | 4681 | 4607 | 4313 | 4681 | 4272 |
| **Average total earning assets<sup>(2)</sup>** | $458427 | $456837 | $446881 | $456802 | $442734 |
| Less: |  |  |  |  |  |
| Other deductions | 181 | 179 | 13197 | 183 | 21481 |
| Average core earning assets<sup>(2)</sup> | $458246 | $456658 | $433684 | $456619 | $421253 |
| **Net interest income – Reported** | $2641 | $2524 | $2577 | $7812 | $7550 |
| Less: Non-core net interest income |  |  |  |  |  |
| **Core net interest income** | $2641 | $2524 | $2577 | $7812 | $7550 |
| **Net interest margin** | 2.29% | 2.27% | 2.36% | 2.29% | 2.39% |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Average balances represent the average of daily balances for the period.

12 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

International Banking

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Average total assets – Reported<sup>(2)</sup>** | $223347 | $229118 | $232609 | $227092 | $234120 |
| Less: Non-earning assets | 13442 | 13917 | 15326 | 14082 | 16277 |
| **Average total earning assets<sup>(2)</sup>** | $209905 | $215201 | $217283 | $213010 | $217843 |
| Less: |  |  |  |  |  |
| Trading assets | 6147 | 6438 | 6771 | 6330 | 6695 |
| Securities purchased under resale agreements and securities borrowed | 3699 | 4243 | 4442 | 4044 | 4061 |
| Other deductions | 7346 | 7413 | 6841 | 7120 | 6758 |
| Average core earning assets<sup>(2)</sup> | $192713 | $197107 | $199229 | $195516 | $200329 |
| **Net interest income – Reported** | $2245 | $2179 | $2226 | $6593 | $6720 |
| Less: Non-core net interest income | 38 | 17 | 19 | 43 | 113 |
| **Core net interest income** | $2207 | $2162 | $2207 | $6550 | $6607 |
| **Net interest margin** | 4.54% | 4.50% | 4.41% | 4.48% | 4.41% |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Average balances represent the average of daily balances for the period.

Return on equity

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

Adjusted return on equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity.

Attributed capital and operating segment return on equity

The amount of common equity allocated to each operating segment is referred to as attributed capital. The attribution of capital within each operating segment is intended to approximate a percentage of the Basel III common equity capital requirements based on credit, market and operational risks and leverage inherent within each operating segment. Attributed capital is a non-GAAP measure. The Bank attributes capital to its business lines to approximate 11.5% of the Basel III common equity capital requirements.

Return on equity for the operating segments is calculated as a ratio of net income attributable to common shareholders of the operating segment and the capital attributed. This is a non-GAAP measure. Management uses operating segment return on equity to evaluate the performance of its operating segments.

Adjusted return on equity for the operating segments is calculated as a ratio of adjusted net income attributable to common shareholders of the operating segment and the capital attributed. This is a non-GAAP measure.

T5 Return on equity by operating segment

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 |
| ($ millions) | Canadian<br>Banking | International<br>Banking | Global<br>Wealth<br>Management | Global<br>Banking<br>and Markets | Other |  | Total |
| **Reported** |  |  |  |  |  |  |  |
| Net income attributable to common shareholders | $958 | $670 | $417 | $473 | $(205) |)<sup>(1)</sup> | $2313 |
| Total average common equity<sup>(2)</sup> | 20624 | 17856 | 10552 | 14879 | 11061 |  | 74972 |
| Return on equity | 18.4% | 14.9% | 15.7% | 12.6% | nm | (3) | 12.2% |
| **Adjusted<sup>(4)</sup>** |  |  |  |  |  |  |  |
| Net income attributable to common shareholders | $959 | $675 | $424 | $473 | $(190) |)<sup>(1)</sup> | $2341 |
| Return on equity | 18.5% | 15.0% | 15.9% | 12.6% | nm | (3) | 12.4% |

---

(1) Includes dividends paid on preferred shares and other equity instruments of $134.

(2) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(3) Not meaningful.

(4) Refer to Table on page 6.

Scotiabank Third Quarter Report 2025 13

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MANAGEMENT'S DISCUSSION & ANALYSIS

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> |
| ($ millions) | Canadian<br>Banking | International<br>Banking | Global<br>Wealth<br>Management | Global<br>Banking and<br>Markets | Other |  | Total | Canadian<br>Banking | International<br>Banking | Global<br>Wealth<br>Management | Global<br>Banking and<br>Markets | Other |  | Total |
| **Reported** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income attributable to common shareholders | $613 | $676 | $399 | $413 | $(260) |)<sup>(2)</sup> | $1841 | $977 | $629 | $367 | $368 | $(585) |)<sup>(2)</sup> | $1756 |
| Total average common equity<sup>(3)</sup> | 20893 | 18087 | 10332 | 14970 | 10343 |  | 74625 | 20535 | 19077 | 10195 | 15389 | 6455 |  | 71651 |
| Return on equity | 12.0% | 15.3% | 15.8% | 11.3% | nm | (4) | 10.1% | 18.9% | 13.1% | 14.3% | 9.5% | nm | (4) | 9.8% |
| **Adjusted<sup>(5)</sup>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income attributable to common shareholders | $613 | $681 | $405 | $413 | $(215) |)<sup>(2)</sup> | $1897 | $978 | $634 | $374 | $368 | $(321) |)<sup>(2)</sup> | $2033 |
| Return on equity | 12.0% | 15.5% | 16.1% | 11.3% | nm | (4) | 10.4% | 19.0% | 13.2% | 14.6% | 9.5% | nm | (4) | 11.3% |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Includes dividends paid on preferred shares and other equity instruments of $135 for the three months ended April 30, 2025 and $120 for the three months ended July 31, 2024.

(3) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(4) Not meaningful.

(5) Refer to Table on page 6.

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> |
| ($ millions) | Canadian<br>Banking | International<br>Banking | Global<br>Wealth<br>Management | Global<br>Banking and<br>Markets | Other |  | Total | Canadian<br>Banking | International<br>Banking | Global<br>Wealth<br>Management | Global<br>Banking and<br>Markets | Other |  | Total |
| **Reported** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income attributable to common shareholders | $2484 | $1997 | $1223 | $1403 | $(1928) |)<sup>(2)</sup> | $5179 | $2842 | $1980 | $1037 | $1130 | $(1224) |)<sup>(2)</sup> | $5765 |
| Total average common equity<sup>(3)</sup> | 21053 | 18044 | 10356 | 15071 | 10000 |  | 74524 | 20351 | 19269 | 10203 | 15333 | 5356 |  | 70512 |
| Return on equity | 15.8% | 14.8% | 15.8% | 12.4% | nm | (4) | 9.3% | 18.7% | 13.7% | 13.6% | 9.8% | nm | (4) | 10.9% |
| **Adjusted<sup>(5)</sup>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income attributable to common shareholders | $2486 | $2013 | $1243 | $1403 | $(704) |)<sup>(2)</sup> | $6441 | $2844 | $1997 | $1057 | $1130 | $(960) |)<sup>(2)</sup> | $6068 |
| Return on equity | 15.8% | 14.9% | 16.1% | 12.4% | nm | (4) | 11.6% | 18.7% | 13.8% | 13.8% | 9.8% | nm | (4) | 11.5% |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Includes dividends paid on preferred shares and other equity instruments of $391 for the nine months ended July 31, 2025 and $347 for the nine months ended July 31, 2024.

(3) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(4) Not meaningful.

(5) Refer to Table on page 6.

Return on tangible common equity

Return on tangible common equity (ROTCE) is a profitability measure that is calculated by dividing the net income attributable to common shareholders (annualized), adjusted for the amortization of intangibles (excluding software), by average tangible common equity. Tangible common equity is defined as common shareholders' equity adjusted for goodwill and intangible assets (excluding software), net of deferred taxes. This is a non-GAAP ratio. Management uses ROTCE to assess the Bank's performance and ability to use its tangible common equity to generate returns.

Adjusted return on tangible common equity represents adjusted net income attributable to common shareholders as a percentage of average tangible common equity. This is a non-GAAP ratio.

14 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

T6 Return on tangible common equity

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| **Reported** |  |  |  |  |  |
| Average common equity – Reported<sup>(1)</sup> | $74972 | $74625 | $71651 | $74524 | $70512 |
| Average goodwill<sup>(1)(2)</sup> | (9827) | (9962) | (9052) | (9683) | (9080) |
| Average acquisition-related intangibles (net of deferred tax)<sup>(1)</sup> | (3571) | (3586) | (3622) | (3583) | (3637) |
| Average tangible common equity<sup>(1)</sup> | $61574 | $61077 | $58977 | $61258 | $57795 |
| Net income attributable to common shareholders – reported | $2313 | $1841 | $1756 | $5179 | $5765 |
| Amortization of acquisition-related intangible assets (after-tax)<sup>(3)</sup> | 20 | 20 | 13 | 54 | 39 |
| Net income attributable to common shareholders adjusted for amortization of acquisition-related intangible assets (after-tax) | $2333 | $1861 | $1769 | $5233 | $5804 |
| **Return on tangible common equity – reported** | 15.0% | 12.5% | 11.9% | 11.4% | 13.4% |
| **Adjusted** |  |  |  |  |  |
| Adjusted net income attributable to common shareholders<sup>(3)</sup> | $2341 | $1897 | $2033 | $6441 | $6068 |
| **Return on tangible common equity – adjusted** | 15.1% | 12.7% | 13.7% | 14.1% | 14.0% |

---

(1) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2) Includes imputed goodwill from investments in associates.

(3) Refer to Table on page 6.

Adjusted productivity ratio

Adjusted productivity ratio represents adjusted non-interest expenses as a percentage of adjusted total revenue. This is a non-GAAP ratio.

Management uses the productivity ratio as a measure of the Bank's efficiency. A lower ratio indicates improved productivity.

Adjusted operating leverage

This financial metric measures the rate of growth in adjusted total revenue less the rate of growth in adjusted non-interest expenses. This is a non-GAAP ratio.

Management uses operating leverage as a way to assess the degree to which the Bank can increase operating income by increasing revenue.

Trading-related revenue (Taxable equivalent basis)

Trading-related revenue consists of net interest income and non-interest income. Included are unrealized gains and losses on trading security positions held, realized gains and losses from the purchase and sale of securities, fees and commissions from trading securities borrowing and lending activities, and gains and losses on trading derivatives. Underwriting and other advisory fees, which are shown separately in the Consolidated Statement of Income, are excluded. Trading-related revenue includes certain net interest income and non-interest income items on a taxable equivalent basis (TEB). This methodology grosses up tax-exempt income earned on certain securities to an equivalent before tax basis. This is a non-GAAP measure.

Management believes that this basis for measurement of trading-related revenue 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.

Adjusted effective tax rate

The adjusted effective tax rate is calculated by dividing adjusted income tax expense by adjusted income before taxes. This is a non-GAAP ratio.

Scotiabank Third Quarter Report 2025 15

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MANAGEMENT'S DISCUSSION & ANALYSIS

Overview of Performance

Financial performance summary

The Bank's reported net income this quarter was $2,527 million compared to $1,912 million in the same period last year, an increase of 32%. The increase was driven primarily by higher revenues, partly offset by higher non-interest expenses and income taxes. Compared to last quarter, net income increased 24% from $2,032 million. The increase was driven primarily by higher revenues and lower provision for credit losses, partly offset by higher income taxes. Diluted earnings per share were $1.84 compared to $1.41 in the same period last year and $1.48 last quarter. Return on equity was 12.2% compared to 9.8% in the same period last year and 10.1% last quarter.

Adjusted net income was $2,518 million compared to $2,191 million last year, an increase of 15%. The increase was driven primarily by higher revenues, partly offset by higher non-interest expenses and income taxes. Compared to last quarter, adjusted net income increased 22% from $2,072 million. The increase was driven primarily by higher revenues and lower provision for credit losses, partly offset by higher income taxes.

Adjusted diluted earnings per share were $1.88 compared to $1.63, last year and $1.52 last quarter. Adjusted return on equity was 12.4% compared to 11.3% a year ago and 10.4% last quarter.

Refer to Non-GAAP Measures starting on page 5 for details of adjustments.

Economic summary and outlook

The global economic landscape remains challenged by developments in U.S. trade policy. While there is greater clarity about tariffs into the U.S. market given recent announcements, there remains much uncertainty about the impact of these changes on the United States and its trading partners. There are increasing signs that these policies are weighing more heavily on the U.S. than on many other countries, but the boost to growth coming from the U.S. fiscal package may limit the macroeconomic consequences of the tariffs on the U.S. and its trading partners.

It appears that the U.S. Federal Reserve will begin the process of lowering its policy rate in the coming months, though the inflationary consequences of the tariffs may limit its ability to aggressively cut the policy rate. Restrictive monetary policy and uncertainty surrounding the impact of tariffs are leading to modest growth this year before the economy benefits from some fiscal support next year. The economy is expected to grow by 1.5% in both 2025 and 2026, a marked slowdown from the 2.8% pace in 2024.

U.S. trade policy is also significantly impacting Canada. The direct impact of the tariffs on Canadian goods, the uncertainty caused by U.S. policies and the indirect impacts on Canada of a weaker U.S. economy are weighing on growth this year. While there are signs of impacts in some sectors, the economy has thus far proven to be more resilient to tariff-related impacts than feared. This is likely because a large majority of Canadian exports to the U.S. still enter the U.S. tariff free. We expect GDP growth of about 1.6% this year, followed by growth of 1.3% next year. We assess that there is some upside risk to the growth outlook next year if governments move decisively on their desire to transform the Canadian economy. Though growth is weak, we anticipate the Bank of Canada will keep interest rates on hold for the remainder of the year given the upswing in inflation that is currently under way.

Latin American economies are moving at different speeds, faced with divergent performances at home and varying degrees of exposure to international trade conflicts, while regional central banks have shifted to a more careful approach to policy. Mexico's economy, already facing weak domestic demand, has been further weighed by U.S. tariffs and softer growth stateside that leave it on track for a small contraction in 2025. The country's central bank has also used up most of its easing space, leaving it with little scope for additional policy support. Peru's economy continues to exceed expectations with strong growth and low inflation, with the country mostly benefitting from strong copper and gold prices boosting export revenues. Chile may also not face a significant direct impact from U.S. tariffs, but political uncertainty is growing leading up to the general election in late 2025.

16 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Impact of foreign currency translation

The table below reflects the estimated impact of foreign currency translation on key income statement items and is computed on a basis that is different than the "Constant dollar" table in Non-GAAP Measures on page 11.

T7 Impact of foreign currency translation

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Average exchange rate | Average exchange rate | Average exchange rate | % Change | % Change |
| For the three months ended | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31, 2025<br>vs. April 30, 2025 | July 31, 2025<br>vs. July 31, 2024 |
| U.S. dollar/Canadian dollar | 0.728 | 0.704 | 0.730 | 3.4% | (0.3)% |
| Mexican Peso/Canadian dollar | 13.862 | 14.240 | 12.915 | (2.7)% | 7.3% |
| Peruvian Sol/Canadian dollar | 2.624 | 2.594 | 2.745 | 1.2% | (4.4)% |
| Colombian Peso/Canadian dollar | 2997.961 | 2944.467 | 2910.022 | 1.8% | 3.0% |
| Chilean Peso/Canadian dollar | 687.720 | 669.254 | 676.938 | 2.8% | 1.6% |
|  |  |  | Average exchange rate | Average exchange rate | % Change |
| For the nine months ended |  |  | July 31<br>2025 | July 31<br>2024 | July 31, 2025<br>vs. July 31, 2024 |
| U.S. dollar/Canadian dollar |  |  | 0.712 | 0.736 | (3.3)% |
| Mexican Peso/Canadian dollar |  |  | 14.148 | 12.699 | 11.4% |
| Peruvian Sol/Canadian dollar |  |  | 2.620 | 2.760 | (5.1)% |
| Colombian Peso/Canadian dollar |  |  | 3004.717 | 2905.119 | 3.4% |
| Chilean Peso/Canadian dollar |  |  | 683.714 | 682.161 | 0.2% |
|  |  |  | For the three months ended | For the three months ended | For the<br>nine months ended |
| Impact on net income<sup>(1)</sup> ($ millions except EPS) |  |  | July 31, 2025<br>vs. July 31, 2024 | July 31, 2025<br>vs. April 30, 2025 | July 31, 2025<br>vs. July 31, 2024 |
| Net interest income |  |  | $(43) | $(32) | $(94) |
| Non-interest income<sup>(2)</sup> |  |  | (44) | (17) | (81) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue |  |  | (87) | (49) | (175) |
| Non-interest expenses |  |  | 25 | 26 | 35 |
| Other items (net of tax)<sup>(2)</sup> |  |  | 24 | 11 | 63 |
| Net income |  |  | $(38) | $(12) | $(77) |
| Earnings per share (diluted) |  |  | $(0.03) | $(0.01) | $(0.06) |
| Impact by business line ($ millions) |  |  |  |  |  |
| Canadian Banking<sup>(3)</sup> |  |  | $1 | $(1) | $3 |
| International Banking<sup>(2)(3)</sup> |  |  | (20) | (2) | (11) |
| Global Wealth Management<sup>(3)</sup> |  |  | (2) | (1) | (5) |
| Global Banking and Markets<sup>(3)</sup> |  |  | (2) | (10) | 22 |
| Other<sup>(2)(3)</sup> |  |  | (15) | 2 | (86) |
| Net income |  |  | $(38) | $(12) | $(77) |

---

(1) Includes the impact of all currencies.

(2) Includes the impact of foreign currency hedges.

(3) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

Scotiabank Third Quarter Report 2025 17

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MANAGEMENT'S DISCUSSION & ANALYSIS

Group Financial Performance

T8 Group Financial Performance

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| **Reported Results** |  |  |  |  |  |
| Net interest income | $5493 | $5270 | $4862 | $15936 | $14329 |
| Non-interest income | 3993 | 3810 | 3502 | 12002 | 10815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 9486 | 9080 | 8364 | 27938 | 25144 |
| Provision for credit losses | 1041 | 1398 | 1052 | 3601 | 3021 |
| Non-interest expenses | 5089 | 5110 | 4949 | 16690 | 14399 |
| Income before taxes | 3356 | 2572 | 2363 | 7647 | 7724 |
| Income tax expense | 829 | 540 | 451 | 2095 | 1521 |
| **Net income** | $2527 | $2032 | $1912 | $5552 | $6203 |
| Net income attributable to non-controlling interests in subsidiaries | $80 | $56 | $36 | $(18) | $87 |
| Net income attributable to equity holders of the Bank | $2447 | $1976 | $1876 | $5570 | $6116 |
| **Other financial data and measures** |  |  |  |  |  |
| Return on equity<sup>(1)</sup> | 12.2% | 10.1% | 9.8% | 9.3% | 10.9% |
| Net interest margin<sup>(2)</sup> | 2.36% | 2.31% | 2.14% | 2.30% | 2.17% |
| Effective tax rate<sup>(1)</sup> | 24.7% | 21.0% | 19.1% | 27.4% | 19.7% |
| Provision for credit losses – performing (Stage 1 and 2) | $66 | $346 | $82 | $510 | $134 |
| Provision for credit losses – impaired (Stage 3) | $975 | $1052 | $970 | $3091 | $2887 |
| Provision for credit losses as a percentage of average net loans and acceptances (annualized)<sup>(1)</sup> | 0.55% | 0.75% | 0.55% | 0.63% | 0.53% |
| Provision for credit losses on impaired loans as a percentage of average net loans and acceptances (annualized)<sup>(1)</sup> | 0.51% | 0.57% | 0.51% | 0.54% | 0.51% |
| Net write-offs as a percentage of average net loans and acceptances (annualized)<sup>(1)</sup> | 0.50% | 0.50% | 0.45% | 0.50% | 0.45% |

---

(1) Refer to Glossary on page 57 for the description of the measure.

(2) Refer to Non-GAAP Measures starting on page 5.

T8A Adjusted Group Financial Performance

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| **Adjusted Results<sup>(1)</sup>** |  |  |  |  |  |
| Net interest income | $5493 | $5270 | $4862 | $15936 | $14329 |
| Non-interest income | 4001 | 3828 | 3645 | 12028 | 10958 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 9494 | 9098 | 8507 | 27964 | 25287 |
| Provision for credit losses | 1041 | 1398 | 1052 | 3601 | 3021 |
| Non-interest expenses | 5095 | 5067 | 4763 | 15273 | 14177 |
| Income before taxes | 3358 | 2633 | 2692 | 9090 | 8089 |
| Income tax expense | 840 | 561 | 501 | 2138 | 1581 |
| **Net income** | $2518 | $2072 | $2191 | $6952 | $6508 |
| Net income attributable to non-controlling interests in subsidiaries | $43 | $40 | $38 | $120 | $89 |
| Net income attributable to equity holders of the Bank | $2475 | $2032 | $2153 | $6832 | $6419 |

---

(1) Refer to Non-GAAP Measures starting on page 5 for adjusted results.

Net income

Q3 2025 vs Q3 2024

Net income was $2,527 million compared to $1,912 million, an increase of 32%. Adjusted net income was $2,518 million compared to $2,191 million, an increase of 15%. The increase in net income was driven primarily by higher revenues, partly offset by higher non-interest expenses and income taxes.

Q3 2025 vs Q2 2025

Net income was $2,527 million compared to $2,032 million, an increase of 24%. Adjusted net income was $2,518 million compared to $2,072 million, an increase of 22%. The increase in net income was driven primarily by higher revenues and lower provision for credit losses, partly offset by higher income taxes.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Net income was $5,552 million compared to $6,203 million, a decrease of 10%. The decrease was driven primarily by higher non-interest expenses, which included the impairment loss of $1,334 million after-tax related to the announced sale of the banking operations in Colombia, Costa Rica and Panama. In addition, there were higher provision for credit losses and income taxes, partly offset by higher revenues.

18 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Adjusted net income was $6,952 million compared to $6,508 million, an increase of 7%. The increase was driven primarily by higher revenues, partly offset by higher non-interest expenses, provision for credit losses and income taxes.

Total revenue

Q3 2025 vs Q3 2024

Revenues were $9,486 million compared to $8,364 million, an increase of 13%. Adjusted revenues were $9,494 million compared to $8,507 million, an increase of 12%.

Net interest income was $5,493 million, an increase of $631 million or 13%, due primarily to a higher net interest margin and loan growth, inclusive of the conversion of bankers' acceptances to loans resulting from the cessation of CDOR in June 2024 ("BA conversion"), partly offset by the negative impact of foreign currency translation. The net interest margin was 2.36%, an increase of 22 basis points from significantly lower funding costs driven by central bank rate cuts in Canada, partly offset by lower deposit margins in Canadian Banking.

Non-interest income was $3,993 million, up $491 million or 14%. Adjusted non-interest income was $4,001 million, an increase of $356 million or 10%. The increase was due mainly to higher wealth management revenues, trading revenues, fee and commission revenues, lower unrealized losses on non-trading derivatives, and higher income from associated corporations primarily related to the KeyCorp investment. This was partly offset by lower banking revenues due to the BA conversion, as well as the negative impact of foreign currency translation.

Q3 2025 vs Q2 2025

Revenues were $9,486 million compared to $9,080 million, an increase of 4%. Adjusted revenues were $9,494 million compared to $9,098 million, an increase of 4%.

Net interest income increased $223 million or 4%, due primarily to the impact of three additional days in the quarter and higher net interest margin. This was partly offset by a decrease in earning assets and the negative impact of foreign currency translation. The net interest margin increased five basis points, driven mainly by lower funding costs, and higher business line margins.

Non-interest income increased $183 million or 5%. Adjusted non-interest income was up $173 million or 5% from higher banking fees, trading revenues and wealth management revenues. This was partly offset by higher unrealized losses on non-trading derivatives.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Revenues were $27,938 million compared to $25,144 million, an increase of 11%. Adjusted revenues were $27,964 million compared to $25,287 million, an increase of 11%.

Net interest income was $15,936 million, an increase of $1,607 million or 11%, due primarily to a higher net interest margin, and loan growth inclusive of the BA conversion, partly offset by the negative impact of foreign currency translation. The net interest margin was 2.30%, an increase of 13 basis points from significantly lower funding costs driven by central bank rate cuts in Canada. This was partly offset by lower deposit margins in Canadian Banking.

Non-interest income was $12,002 million, up $1,187 million or 11%. Adjusted non-interest income was $12,028 million, an increase of $1,070 million or 10% due primarily to higher wealth management revenues, fees and commissions, trading revenues, income from associated corporations primarily related to the KeyCorp investment, and underwriting and advisory fees, as well as lower unrealized losses on non-trading derivatives. These were partly offset by lower banking revenues due to the BA conversion, as well as the negative impact of foreign currency translation.

Provision for credit losses

Q3 2025 vs Q3 2024

The provision for credit losses was $1,041 million compared to $1,052 million, a decrease of $11 million. The provision for credit losses ratio remains unchanged at 55 basis points.

The provision for credit losses on performing loans was $66 million compared to $82 million. The provision this period was related to credit quality migration impacting the commercial portfolios and retail portfolio growth.

The provision for credit losses on impaired loans was $975 million compared to $970 million, an increase of $5 million. The provision for credit losses ratio on impaired loans was 51 basis points, unchanged from last year. The increase in provision this quarter was due primarily to higher formations in Canadian Banking portfolios, partly offset by the International retail portfolio.

Q3 2025 vs Q2 2025

The provision for credit losses was $1,041 million compared to $1,398 million, a decrease of $357 million. The provision for credit losses ratio decreased 20 basis points to 55 basis points.

Provision for credit losses on performing loans was $66 million compared to $346 million. The provision this period was related to credit quality migration impacting the commercial portfolios and retail portfolio growth. Prior quarter provisions were impacted by the significant deterioration in the macroeconomic outlook indicators, as well as the continued uncertainty related to U.S. tariffs, impacting the Canadian retail and commercial portfolios.

The provision for credit losses on impaired loans was $975 million compared to $1,052 million, a decrease of $77 million. The provision for credit losses ratio on impaired loans was 51 basis points, a decrease of six basis points. The decrease this quarter is due primarily to lower provisions in Canadian retail across products and in the corporate loan portfolio, partly offset by higher provisions in the commercial portfolios.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

The provision for credit losses was $3,601 million compared to $3,021 million. The provision for credit losses ratio increased by 10 basis points to 63 basis points.

Provision for credit losses on performing loans was $510 million compared to $134 million. The provision this year was due primarily to retail portfolio growth and the impact of a significant deterioration in the macroeconomic outlook. This also reflects the continued uncertainty related to U.S. tariffs, primarily impacting the Canadian retail and commercial portfolios.

The provision for credit losses on impaired loans was $3,091 million compared to $2,887 million, an increase of $204 million. The provision for credit losses ratio on impaired loans was 54 basis points, an increase of three basis points. The increase in provision this year was due primarily to higher formations in Canadian retail across most products, as well as in Canadian commercial.

Scotiabank Third Quarter Report 2025 19

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MANAGEMENT'S DISCUSSION & ANALYSIS

Non-interest expenses

Q3 2025 vs Q3 2024

Non-interest expenses were $5,089 million, up $140 million or 3%. Adjusted non-interest expenses were $5,095 million, up $332 million or 7%, driven by higher personnel costs, including performance-based compensation, as well as higher technology and business development costs to support strategic and regulatory initiatives. This was partly offset by the positive impact of foreign currency translation.

The productivity ratio was 53.7% compared to 59.2%. The adjusted productivity ratio was 53.7% compared to 56.0%.

Q3 2025 vs Q2 2025

Non-interest expenses were down $21 million, due mainly to the partial reversal of the impairment loss related to the announced sale of the banking operations in Colombia, Costa Rica and Panama. Adjusted non-interest expenses were up $28 million or 1%, driven by the impact of three more days in the quarter, higher personnel costs, including performance-based compensation, and higher business development costs. This was partly offset by lower professional fees, lower employee benefit expenses, and the positive impact of foreign currency translation.

The productivity ratio was 53.7% compared to 56.3%. The adjusted productivity ratio was 53.7% compared to 55.7%.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Non-interest expenses were $16,690 million, up $2,291 million or 16%, which includes the impairment loss of $1,365 million related to the announced sale of the banking operations in Colombia, Costa Rica and Panama. Adjusted non-interest expenses were $15,273 million, up $1,096 million or 8%, driven by higher technology and professional fees to support strategic and regulatory initiatives, and higher personnel costs, including performance and stock-based compensation. This was partly offset by lower depreciation and amortization, and the positive impact of foreign currency translation.

The productivity ratio was 59.7% compared to 57.3%. The adjusted productivity ratio was 54.6% compared to 56.1%. Operating leverage was negative 4.8% on a reported basis and positive 2.9% on an adjusted basis.

Taxes

Q3 2025 vs Q3 2024

The effective tax rate was 24.7% compared to 19.1% due primarily to lower income in lower tax jurisdictions, higher withholding taxes and the implementation of the Global Minimum Tax (GMT), partly offset by higher non-deductible expenses in the prior year. On an adjusted basis, the effective rate was 25.0% compared to 18.6% due primarily to lower income in lower tax jurisdictions, higher withholding taxes and the implementation of the GMT.

Q3 2025 vs Q2 2025

The effective tax rate was 24.7% compared to 21.0% due primarily to lower income in lower tax jurisdictions, higher withholding taxes and favourable adjustments related to prior periods recorded in the prior quarter.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

The effective tax rate was 27.4% compared to 19.7% due primarily to the impairment loss related to the announced sale of the banking operations in Colombia, Costa Rica and Panama, lower income in lower tax jurisdictions and the implementation of the GMT, partly offset by higher non-deductible expenses in the prior year. On an adjusted basis, the effective rate was 23.5% compared to 19.5% due primarily to lower income in lower tax jurisdictions and the implementation of the GMT.

20 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Business Segment Review

The Bank's businesses are grouped into four business lines: Canadian Banking, International Banking, Global Wealth Management and Global Banking and Markets. The Bank's other smaller operating segments and corporate adjustments are included in the Other segment.

Segment measurement methodologies

Taxable Equivalent Basis

The Bank analyzes revenue on a taxable equivalent basis (TEB) for business lines. 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. It also grosses up net income from associated corporations to normalize the effective tax rate in the business lines. Corresponding increases are made to the provision for income taxes; hence, there is no impact on the segment's net income. Management believes that this basis for measurement provides a uniform comparability of 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. The elimination of the TEB gross-up is recorded in the Other segment; hence, there is no impact on the consolidated results.

Constant Dollar Basis

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 thereby eliminating the impact of foreign currency translation. The Bank believes that reporting in constant dollar is useful for readers in assessing ongoing business performance.

Other segment

The Other segment includes Group Treasury, investments in certain associated corporations, and smaller operating segments and corporate items which are not allocated to a business line. Group Treasury is primarily responsible for balance sheet, liquidity and interest rate risk management, which includes the Bank's wholesale funding activities.

Funds transfer pricing

Funds transfer pricing (FTP) is the process by which the Bank prices intra-company borrowing or lending between the business segments and the Other segment. Through consideration of interest rate and liquidity risk characteristics of assets, liabilities and off-balance sheet exposures, this process aims to manage these risks through Group Treasury and enable risk-adjusted management reporting of business segment results. Periodically, the methodology and assumptions used in the FTP process are adjusted to reflect customer behaviours, market dynamics and other factors, which may impact the financial results of the business segments.

Changes in business line allocation methodology

Effective the first quarter of 2025, the Bank made voluntary changes to its allocation methodology impacting business segment presentation. The new methodology includes updates related to the Bank's FTP, head office expense allocations, and allocations between business segments. Prior period results and ratios for each segment have been revised to conform with the current period's methodology. Further details on the changes are as follows:

1. FTP methodology was updated, primarily related to the allocation of substantially all liquidity costs to the business lines from the Other segment, reflecting the Bank's strategic objective to maintain higher liquidity ratios.

2. Periodically, the Bank updates its allocation methodologies. This includes a comprehensive update to the allocation of head office expenses across countries within International Banking, updates to the allocation of clients and associated revenue, expenses, and balances between International Banking, Global Banking and Markets, and Global Wealth Management to align with the strategy, as well as updates to the allocation of head office expenses and income taxes from the Other segment to the business segments.

3. To be consistent with the reporting of Scotiabank's recent minority investment in KeyCorp, the Bank has also made changes to the reporting of certain minority investments in International Banking (Bank of Xi'an Co. Ltd.) and Global Wealth Management (Bank of Beijing Scotia Asset Management) which will now be reported in the Other segment.

Scotiabank Third Quarter Report 2025 21

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MANAGEMENT'S DISCUSSION & ANALYSIS

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Canadian Banking |  |  |  |  |  |
| T9 Canadian Banking financial performance |  |  |  |  |  |
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions) (Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Reported Results** |  |  |  |  |  |
| Net interest income | $2641 | $2524 | $2577 | $7812 | $7550 |
| Non-interest income<sup>(2)</sup> | 730 | 711 | 728 | 2206 | 2164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 3371 | 3235 | 3305 | 10018 | 9714 |
| Provision for credit losses | 456 | 805 | 435 | 1799 | 1241 |
| Non-interest expenses | 1596 | 1581 | 1528 | 4788 | 4547 |
| Income before taxes | 1319 | 849 | 1342 | 3431 | 3926 |
| Income tax expense | 361 | 236 | 365 | 947 | 1083 |
| **Net income** | $958 | $613 | $977 | $2484 | $2843 |
| Net income attributable to non-controlling interests in subsidiaries | $– | $– | $– | $– | $– |
| Net income attributable to equity holders of the Bank | $958 | $613 | $977 | $2484 | $2843 |
| **Other financial data and measures** |  |  |  |  |  |
| Return on equity<sup>(3)</sup> | 18.4% | 12.0% | 18.9% | 15.8% | 18.7% |
| Net interest margin<sup>(3)</sup> | 2.29% | 2.27% | 2.36% | 2.29% | 2.39% |
| Effective tax rate<sup>(4)</sup> | 27.3% | 27.8% | 27.1% | 27.6% | 27.6% |
| Provision for credit losses – performing (Stage 1 and 2) | $9 | $317 | $97 | $377 | $138 |
| Provision for credit losses – impaired (Stage 3) | $447 | $488 | $338 | $1422 | $1103 |
| Provision for credit losses as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 0.40% | 0.72% | 0.39% | 0.53% | 0.38% |
| Provision for credit losses on impaired loans as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 0.39% | 0.44% | 0.30% | 0.42% | 0.33% |
| Net write-offs as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 0.40% | 0.38% | 0.29% | 0.39% | 0.30% |
| Average assets ($ billions) | $463 | $461 | $451 | $461 | $447 |
| Average liabilities ($ billions) | $381 | $384 | $389 | $383 | $390 |

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(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Includes income (on a taxable equivalent basis) from associated corporations for the three months ended July 31, 2025 – $(2) (April 30, 2025 – $(2); July 31, 2024 – nil) and for the nine months ended July 31, 2025 – $20 (July 31, 2024 – $(7)).

(3) Refer to Non-GAAP Measures starting on page 5.

(4) Refer to Glossary on page 57 for the description of the measure.

T9A Adjusted Canadian Banking financial performance

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions) (Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Adjusted Results<sup>(2)</sup>** |  |  |  |  |  |
| Net interest income | $2641 | $2524 | $2577 | $7812 | $7550 |
| Non-interest income | 730 | 711 | 728 | 2206 | 2164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 3371 | 3235 | 3305 | 10018 | 9714 |
| Provision for credit losses | 456 | 805 | 435 | 1799 | 1241 |
| Non-interest expenses<sup>(3)</sup> | 1595 | 1580 | 1527 | 4785 | 4544 |
| Income before taxes | 1320 | 850 | 1343 | 3434 | 3929 |
| Income tax expense | 361 | 237 | 365 | 948 | 1084 |
| **Net income** | $959 | $613 | $978 | $2486 | $2845 |
| Net income attributable to non-controlling interests in subsidiaries | $– | $– | $– | $– | $– |
| Net income attributable to equity holders of the Bank | $959 | $613 | $978 | $2486 | $2845 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Refer to Non-GAAP Measures starting on page 5 for adjusted results.

(3) Includes adjustment for amortization of acquisition-related intangible assets, excluding software for the three months ended July 31, 2025 – $1 (April 30, 2025 – $1; July 31, 2024 – $1) and for the nine months ended July 31, 2025 – $3 (July 31, 2024 – $3).

Net income

Q3 2025 vs Q3 2024

Net income attributable to equity holders was $958 million compared to $977 million. Adjusted net income attributable to equity holders was $959 million, a decrease of $19 million or 2%. The decrease was due primarily to higher non-interest expenses and provision for credit losses, partly offset by higher revenues.

Q3 2025 vs Q2 2025

Net income attributable to equity holders increased $345 million or 56%. The increase was due primarily to lower provision for credit losses and higher revenues.

22 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Net income attributable to equity holders was $2,484 million compared to $2,843 million, a decrease of $359 million or 13%. Adjusted net income attributable to equity holders was $2,486 million, a decrease of $359 million or 13%. The decrease was due primarily to higher provision for credit losses and non-interest expenses, partly offset by higher revenues.

Average assets

Q3 2025 vs Q3 2024

Average assets increased $12 billion or 3% to $463 billion. The growth included $13 billion or 5% in residential mortgages, partly offset by a decline of $1 billion or 1% in personal loans.

Q3 2025 vs Q2 2025

Average assets increased $2 billion. The growth included $1 billion in residential mortgages and $1 billion in business loans.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Average assets increased $14 billion or 3% to $461 billion. The growth included $13 billion or 5% in residential mortgages and $1 billion or 1% in business loans.

Average liabilities

Q3 2025 vs Q3 2024

Average liabilities decreased $8 billion or 2% to $381 billion. The decrease was due primarily to a reduction of $13 billion in bankers' acceptances liabilities due to the BA conversion. Average deposits increased $6 billion or 2% driven by growth of $5 billion or 2% in personal deposits, primarily in chequing and savings products, and $1 billion or 1% in non-personal deposits, mainly in demand accounts.

Q3 2025 vs Q2 2025

Average liabilities decreased $3 billion or 1%, due primarily to a decline of $2 billion or 1% in non-personal deposits, and $1 billion in personal deposits, as the decline in term products was partly offset by solid growth in chequing and savings products.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Average liabilities decreased $7 billion or 2% to $383 billion. The decrease was due primarily to a reduction of $21 billion in bankers' acceptances liabilities due to the BA conversion. Average deposits increased $15 billion or 4% driven by growth of $8 billion or 6% in non-personal deposits, and $7 billion or 3% in personal deposits.

Total revenue

Q3 2025 vs Q3 2024

Revenues were $3,371 million, an increase of $66 million or 2%.

Net interest income of $2,641 million increased $64 million or 2% due primarily to asset and deposit growth, and the benefit of the BA conversion, partly offset by lower net interest margin. The net interest margin declined seven basis points to 2.29% due primarily to a decline in deposit margins reflecting the impact of Bank of Canada's rate cuts.

Non-interest income of $730 million increased $2 million due primarily to higher mutual fund distribution fees and insurance income, partly offset by elevated private equity gains in the prior year and lower banking fees, including the impact of the BA conversion.

Q3 2025 vs Q2 2025

Revenues increased $136 million or 4%.

Net interest income increased $117 million or 5% due primarily to three additional days in the quarter, and higher net interest margin. The net interest margin increased two basis points to 2.29% due to an increase in deposit margins from improving deposit mix.

Non-interest income increased $19 million or 3% due primarily to higher banking and mutual fund distribution fees, partly offset by lower insurance income.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Revenues were $10,018 million, an increase of $304 million or 3%.

Net interest income of $7,812 million increased $262 million or 3% due primarily to solid asset and deposit growth, and the benefit of the BA conversion, partly offset by lower net interest margin. The net interest margin declined 10 basis points to 2.29% due primarily to lower deposit margins reflecting the impact of Bank of Canada's rate cuts, partly offset by an increase in asset margins.

Non-interest income of $2,206 million increased $42 million or 2% due primarily to elevated private equity gains, higher mutual fund distribution fees and insurance income, partly offset by lower banking fees, including the impact of the BA conversion.

Scotiabank Third Quarter Report 2025 23

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MANAGEMENT'S DISCUSSION & ANALYSIS

Provision for credit losses

Q3 2025 vs Q3 2024

The provision for credit losses was $456 million, compared to $435 million, an increase of $21 million. The provision for credit losses ratio increased one basis point to 40 basis points.

The provision for credit losses on performing loans was $9 million compared to $97 million. The provision this period was driven by portfolio growth and the unfavorable macroeconomic outlook impacting the commercial portfolio. The higher provision in the prior period was driven by credit migration in the retail portfolio and the unfavourable macroeconomic outlook.

Provision for credit losses on impaired loans was $447 million compared to $338 million, an increase of $109 million. The provision for credit losses ratio on impaired loans was 39 basis points, an increase of nine basis points. The increase this period was due primarily to higher formations in commercial and retail, mainly in unsecured revolving products.

Q3 2025 vs Q2 2025

The provision for credit losses was $456 million, compared to $805 million, a decrease of $349 million. The provision for credit losses ratio decreased 32 basis points to 40 basis points.

The provision for credit losses on performing loans was $9 million compared to $317 million. Prior quarter provisions were impacted by the significant deterioration in the macroeconomic outlook, as well as the continued uncertainty related to U.S. tariffs impacting the retail and commercial portfolios.

Provision for credit losses on impaired loans was $447 million compared to $488 million, a decrease of $41 million. The provision for credit losses ratio on impaired loans was 39 basis points, a decrease of five basis points. The lower provision this quarter was due primarily to lower retail provisions mostly in personal loans, partly offset by an increase in the commercial portfolio.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

The provision for credit losses was $1,799 million, an increase of $558 million. The provision for credit losses ratio was 53 basis points, an increase of 15 basis points.

The provision for credit losses on performing loans was $377 million compared to $138 million, an increase of $239 million. The provision this year was due primarily to the impact of a significant deterioration in the macroeconomic outlook. This also reflected the continued uncertainty related to U.S. tariffs, impacting the Canadian retail and commercial portfolios.

Provision for credit losses on impaired loans was $1,422 million compared to $1,103 million, an increase of $319 million, due primarily to higher formations in retail across most products, and commercial portfolios. The provision for credit losses ratio on impaired loans was 42 basis points, an increase of nine basis points.

Non-interest expenses

Q3 2025 vs Q3 2024

Non-interest expenses were $1,596 million, an increase of $68 million or 4%, due primarily to higher technology costs related to new systems and infrastructure implemented, increased project spend supporting key strategic and regulatory initiatives, higher marketing costs, as well as general inflationary increases.

Q3 2025 vs Q2 2025

Non-interest expenses increased $15 million or 1%, due primarily to the impact of three more days in the quarter, partly offset by lower technology costs.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Non-interest expenses were $4,788 million, an increase of $241 million or 5%, due primarily to higher technology costs related to new systems and infrastructure implemented, increased project spend supporting key strategic and regulatory initiatives, as well as general inflationary increases.

Taxes

The effective tax rate was 27.3% compared to 27.1% in the prior year and 27.8% in the prior quarter. On a year-to-date basis, the effective tax rate was 27.6% in line with the prior year.

24 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| International Banking |  |  |  |  |  |
| T10 International Banking financial performance |  |  |  |  |  |
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions)<br>(Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Reported Results** |  |  |  |  |  |
| Net interest income | $2245 | $2179 | $2226 | $6593 | $6720 |
| Non-interest income<sup>(2)</sup> | 758 | 780 | 747 | 2399 | 2287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 3003 | 2959 | 2973 | 8992 | 9007 |
| Provision for credit losses | 562 | 550 | 589 | 1714 | 1729 |
| Non-interest expenses | 1511 | 1523 | 1550 | 4587 | 4679 |
| Income before taxes | 930 | 886 | 834 | 2691 | 2599 |
| Income tax expense | 219 | 172 | 170 | 580 | 537 |
| **Net income** | $711 | $714 | $664 | $2111 | $2062 |
| Net income attributable to non-controlling interests in subsidiaries | $41 | $38 | $35 | $114 | $81 |
| Net income attributable to equity holders of the Bank | $670 | $676 | $629 | $1997 | $1981 |
| **Other financial data and measures** |  |  |  |  |  |
| Return on equity<sup>(3)</sup> | 14.9% | 15.3% | 13.1% | 14.8% | 13.7% |
| Net interest margin<sup>(3)</sup> | 4.54% | 4.50% | 4.41% | 4.48% | 4.41% |
| Effective tax rate<sup>(4)</sup> | 23.6% | 19.4% | 20.4% | 21.6% | 20.7% |
| Provision for credit losses – performing (Stage 1 and 2) | $37 | $27 | $(28) | $91 | $(32) |
| Provision for credit losses – impaired (Stage 3) | $525 | $523 | $617 | $1623 | $1761 |
| Provision for credit losses as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 1.39% | 1.37% | 1.39% | 1.41% | 1.37% |
| Provision for credit losses on impaired loans as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 1.29% | 1.31% | 1.46% | 1.33% | 1.40% |
| Net write-offs as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 1.12% | 1.19% | 1.27% | 1.20% | 1.24% |
| Average assets ($ billions) | $223 | $229 | $233 | $227 | $234 |
| Average liabilities ($ billions) | $173 | $177 | $179 | $175 | $181 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Includes income (on a taxable equivalent basis) from associated corporations for the three months ended July 31, 2025 – $39 (April 30, 2025 – $38; July 31, 2024 – $36) and for the nine months ended July 31, 2025 – $112 (July 31, 2024 – $94). This income from associated corporations includes a tax normalization adjustment for the three months ended July 31, 2025 – $8 (April 30, 2025 – $9; July 31, 2024 – $8) and for the nine months ended July 31, 2025 – $25 (July 31, 2024 – $19).

(3) Refer to Non-GAAP Measures starting on page 5.

(4) Refer to Glossary on page 57 for the description of the measure.

T10A Adjusted International Banking financial performance

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions) (Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Adjusted Results<sup>(2)</sup>** |  |  |  |  |  |
| Net interest income | $2245 | $2179 | $2226 | $6593 | $6720 |
| Non-interest income | 758 | 780 | 747 | 2399 | 2287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 3003 | 2959 | 2973 | 8992 | 9007 |
| Provision for credit losses | 562 | 550 | 589 | 1714 | 1729 |
| Non-interest expenses<sup>(3)</sup> | 1504 | 1516 | 1543 | 4565 | 4656 |
| Income before taxes | 937 | 893 | 841 | 2713 | 2622 |
| Income tax expense | 221 | 174 | 172 | 586 | 543 |
| **Net income** | $716 | $719 | $669 | $2127 | $2079 |
| Net income attributable to non-controlling interests in subsidiaries | $41 | $38 | $35 | $114 | $81 |
| Net income attributable to equity holders of the Bank | $675 | $681 | $634 | $2013 | $1998 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Refer to Non-GAAP Measures starting on page 5 for adjusted results.

(3) Includes adjustment for amortization of acquisition-related intangible assets, excluding software for the three months ended July 31, 2025 – $7 (April 30, 2025 – $7; July 31, 2024 – $7) and for the nine months ended July 31, 2025 – $22 (July 31, 2024 – $23).

Net income

Q3 2025 vs Q3 2024

Net income attributable to equity holders was $670 million compared to $629 million, an increase of $41 million or 6%. Adjusted net income attributable to equity holders was $675 million, an increase of $41 million or 6%. The increase was driven by lower non-interest expenses and provision for credit losses and higher revenues. This was partly offset by higher income taxes and the negative impact of foreign currency translation.

Scotiabank Third Quarter Report 2025 25

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MANAGEMENT'S DISCUSSION & ANALYSIS

Q3 2025 vs Q2 2025

Net income attributable to equity holders was $670 million, a decrease of $6 million or 1%. Adjusted net income attributable to equity holders was $675 million, a decrease of $6 million or 1%. The decrease was driven by higher income taxes, lower non-interest income, the negative impact of foreign currency translation and higher provision for credit losses. This was partly offset by higher net interest income and lower non-interest expenses.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Net income attributable to equity holders was $1,997 million, an increase of $16 million or 1% from $1,981 million. Adjusted net income attributable to equity holders was $2,013 million, an increase of $15 million or 1%. The increase was driven by higher non-interest income, lower non-interest expenses and lower provision for credit losses. This was partly offset by lower net interest income, higher income taxes and the negative impact of foreign currency translation.

Financial Performance on a Constant Dollar Basis

The discussion below on the results of operations is on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates, which is a non-GAAP financial measure (refer to Non-GAAP Measures starting on page 5). The Bank believes that constant dollar is useful for readers in assessing ongoing business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Ratios are on a reported basis.

T11 International Banking financial performance on reported and constant dollar basis

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions)<br>(Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Constant dollars – Reported<sup>(2)</sup>** |  |  |  |  |  |
| Net interest income | $2245 | $2151 | $2190 | $6593 | $6632 |
| Non-interest income<sup>(3)</sup> | 758 | 772 | 735 | 2399 | 2248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 3003 | 2923 | 2925 | 8992 | 8880 |
| Provision for credit losses | 562 | 544 | 580 | 1714 | 1711 |
| Non-interest expenses | 1511 | 1512 | 1520 | 4587 | 4578 |
| Income before taxes | 930 | 867 | 825 | 2691 | 2591 |
| Income tax expense | 219 | 169 | 168 | 580 | 533 |
| **Net income** | $711 | $698 | $657 | $2111 | $2058 |
| Net income attributable to non-controlling interests in subsidiaries | $41 | $37 | $35 | $114 | $85 |
| Net income attributable to equity holders of the Bank | $670 | $661 | $622 | $1997 | $1973 |
| **Other financial data and measures** |  |  |  |  |  |
| Average assets ($ billions) | $223 | $226 | $229 | $227 | $231 |
| Average liabilities ($ billions) | $173 | $175 | $175 | $175 | $178 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Refer to Constant Dollar reconciliation on page 11.

(3) Includes income (on a taxable equivalent basis) from associated corporations for the three months ended July 31, 2025 – $39 (April 30, 2025 – $37; July 31, 2024 – $35) and for the nine months ended July 31, 2025 – $112 (July 31, 2024 – $95).

T11A International Banking financial performance on adjusted and constant dollar basis

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions)<br>(Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Constant dollars – Adjusted<sup>(2)</sup>** |  |  |  |  |  |
| Net interest income | $2245 | $2151 | $2190 | $6593 | $6632 |
| Non-interest income | 758 | 772 | 735 | 2399 | 2248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 3003 | 2923 | 2925 | 8992 | 8880 |
| Provision for credit losses | 562 | 544 | 580 | 1714 | 1711 |
| Non-interest expenses | 1504 | 1505 | 1512 | 4565 | 4554 |
| Income before taxes | 937 | 874 | 833 | 2713 | 2615 |
| Income tax expense | 221 | 171 | 170 | 586 | 540 |
| **Net income** | $716 | $703 | $663 | $2127 | $2075 |
| Net income attributable to non-controlling interests in subsidiaries | $41 | $37 | $35 | $114 | $85 |
| Net income attributable to equity holders of the Bank | $675 | $666 | $628 | $2013 | $1990 |
| **Other financial data and measures** |  |  |  |  |  |
| Average assets ($ billions) | $223 | $226 | $229 | $227 | $231 |
| Average liabilities ($ billions) | $173 | $175 | $175 | $175 | $178 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Refer to Constant Dollar reconciliation on page 11.

26 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Net income

Q3 2025 vs Q3 2024

Net income attributable to equity holders was $670 million, an increase of $48 million or 8%. Adjusted net income attributable to equity holders was $675 million, an increase of $47 million or 7%. The increase was driven by higher revenues and lower provision for credit losses and non-interest expenses. This was partly offset by higher income taxes.

Q3 2025 vs Q2 2025

Net income attributable to equity holders was $670 million and adjusted net income attributable to equity holders was $675 million, an increase of $9 million or 1%. The increase was driven by higher net interest income. This was partly offset by higher income taxes and provision for credit losses, as well as lower non-interest income.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Net income attributable to equity holders was $1,997 million, an increase of $24 million or 1% from $1,973 million. Adjusted net income attributable to equity holders was $2,013 million, an increase of $23 million or 1%. The increase was driven by higher non-interest income. This was partly offset by lower net-interest income, and higher non-interest expenses and income taxes.

Average assets

Q3 2025 vs Q3 2024

Average assets were $223 billion, a reduction of $6 billion or 2%. Total loans decreased $5 billion or 3%, primarily in Mexico and Brazil. The decrease was driven by an 8% reduction in business loans, partly offset by an increase of 3% in retail loans.

Q3 2025 vs Q2 2025

Average assets were $223 billion, a reduction of $3 billion or 1%. Investment securities declined by $1 billion or 4%. Total loans were in line with the prior quarter, as an increase in retail loans of 1% was offset by a reduction in business loans of 1%.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Average assets were $227 billion, a reduction of $4 billion or 2%. Total loans decreased by 3%, primarily in Brazil, Peru and Mexico. The decrease was driven by an 8% reduction in business loans, in line with the Bank's capital deployment strategy. This was partly offset by an increase of 3% in retail loans.

Average liabilities

Q3 2025 vs Q3 2024

Average liabilities were $173 billion, a reduction of $2 billion or 1%. Other liabilities declined by $3 billion. Total deposits were in line with the prior year.

Q3 2025 vs Q2 2025

Average liabilities were $173 billion a reduction of $2 billion or 1%. Other liabilities declined by $3 billion. Total deposits increased by 1% primarily in Colombia partly offset by Mexico. Non-personal deposits increased by 1%. Term deposits were in line with the prior quarter.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Average liabilities were $175 billion, a decrease of $3 billion or 2%. Other liabilities declined by $3 billion. Total deposits decreased by 1% primarily in Mexico and Brazil. Non-personal deposits decreased by 2% and personal deposits increased by 1%. Term deposits decreased by 5% and non-term deposits increased by 4%.

Total revenue

Q3 2025 vs Q3 2024

Revenues were $3,003 million compared to $2,925 million, an increase of $78 million or 3%.

Net interest income was $2,245 million, an increase of $55 million or 3%, driven by lower funding costs in Brazil and Mexico. Net interest margin increased by 13 basis points to 4.54%, driven mainly by lower funding costs due to declines in central bank rates.

Non-interest income was $758 million, an increase of $23 million or 3%, driven mainly by higher banking fees in Chile and Colombia, and investment gains in Peru.

Q3 2025 vs Q2 2025

Revenues were $3,003 million compared to $2,923 million, an increase of $80 million or 3%.

Net interest income was $2,245 million, an increase of $94 million or 4%, driven mainly by three more days in the quarter and lower funding costs. Net interest margin increased by four basis points to 4.54%, driven by lower funding costs, mainly in Brazil.

Non-interest income was $758 million, a decrease of $14 million or 2%, driven mainly by lower trading revenues in Brazil.

Scotiabank Third Quarter Report 2025 27

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MANAGEMENT'S DISCUSSION & ANALYSIS

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Revenues were $8,992 million compared to $8,880 million an increase of $112 million or 1%.

Net interest income decreased by $39 million or 1%. Net interest margin increased by seven basis points to 4.48%, driven by lower funding costs due to declines in central bank rates.

Non-interest income increased by $151 million or 7% due mainly to higher trading revenues in Chile and Mexico.

Provision for credit losses

Q3 2025 vs Q3 2024

The provision for credit losses was $562 million compared to $580 million, a decrease of $18 million. The provision for credit losses ratio was 139 basis points, unchanged from the prior period.

Provision for credit losses on performing loans was $37 million, compared to a net reversal of $28 million. The provision this period was driven by retail portfolio growth, primarily in Mexico and Colombia, as well as credit migration in the commercial portfolio. The prior period reversal was due mainly to retail credit migration to impaired, partly offset by higher commercial provisions.

Provision for credit losses on impaired loans was $525 million compared to $608 million, a decrease of $83 million, due primarily to lower retail formations mainly in Colombia and Peru, due in part to the CrediScotia divestiture. The provision for credit losses ratio on impaired loans was 129 basis points, a decrease of 17 basis points.

Q3 2025 vs Q2 2025

The provision for credit losses was $562 million compared to $544 million, an increase of $18 million. The provision for credit losses ratio was 139 basis points, an increase of two basis points.

Provision for credit losses on performing loans was $37 million compared to $26 million. The provision this period was driven by retail portfolio growth, primarily in Mexico and Colombia, along with credit migration in the commercial portfolio.

Provision for credit losses on impaired loans was $525 million compared to $518 million, an increase of $7 million driven by higher formations in the commercial portfolio. The provision for credit losses ratio on impaired loans decreased two basis points to 129 basis points.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

The provision for credit losses was $1,714 million compared to $1,711 million, an increase of $3 million. The provision for credit losses ratio was 141 basis points, an increase of four basis points.

Provision for credit losses on performing loans was $91 million compared to a net reversal of $31 million. The provision this period was driven by the continued unfavourable macroeconomic outlook along with credit migration in the commercial portfolio and retail portfolio growth. The prior period reversal was due mainly to retail credit migration to impaired, partly offset by higher commercial provisions.

Provision for credit losses on impaired loans was $1,623 million compared to $1,742 million, a decrease of $119 million. This was due primarily to a decrease in retail provisions driven by lower formations mainly in Colombia and Peru, due in part to the CrediScotia divestiture. The provision for credit losses ratio on impaired loans was 133 basis points, a decrease of seven basis points.

Non-interest expenses

Q3 2025 vs Q3 2024

Non-interest expenses were $1,511 million compared to $1,520 million, a decrease of $9 million or 1%. Adjusted non-interest expenses were $1,504 million, a decrease of $8 million. Lower depreciation and amortization were partly offset by higher salaries and employee benefits.

Q3 2025 vs Q2 2025

Non-interest expenses were $1,511 million and adjusted non-interest expenses were $1,504 million, both in line with prior quarter. Higher salaries and employee benefits were largely offset by lower communications expenses.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Non-interest expenses were $4,587 million compared to $4,578 million, an increase of $9 million. On an adjusted basis, non-interest expenses were $4,565 million, an increase of $11 million, driven mainly by higher technology costs and salaries and employee benefits. This was offset by lower depreciation and amortization, mainly in Colombia. The business continues to realize the benefits from its efficiency initiatives which have been instrumental in reducing expenses, despite an inflationary environment.

Taxes

Q3 2025 vs Q3 2024

The effective tax rate was 23.6% compared to 20.4%. On an adjusted basis, the effective tax rate was 23.6% compared to 20.5%. The increase was due primarily to the implementation of the GMT in the current year and a lower inflationary adjustment in Chile.

Q3 2025 vs Q2 2025

The effective tax rate was 23.6% compared to 19.4%. On an adjusted basis, the effective tax rate was 23.6% compared to 19.5%. The increase was due primarily to favorable adjustments in the prior quarter and change in the earnings mix across jurisdictions.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

The effective tax rate was 21.6% compared to 20.7%. On an adjusted basis, the effective tax rate was 21.6% compared to 20.7%. The increase was due primarily to the implementation of the GMT in the current year and change in the earnings mix across jurisdictions. This was partly offset by favorable adjustments related to prior periods.

28 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Global Wealth Management |  |  |  |  |  |
| T12 Global Wealth Management financial performance |  |  |  |  |  |
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions)<br>(Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Reported Results** |  |  |  |  |  |
| Net interest income | $266 | $246 | $206 | $744 | $579 |
| Non-interest income | 1338 | 1295 | 1222 | 3980 | 3544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1604 | 1541 | 1428 | 4724 | 4123 |
| Provision for credit losses | 4 | 2 | 10 | 10 | 22 |
| Non-interest expenses | 1030 | 997 | 926 | 3049 | 2706 |
| Income before taxes | 570 | 542 | 492 | 1665 | 1395 |
| Income tax expense | 150 | 141 | 122 | 435 | 349 |
| **Net income** | $420 | $401 | $370 | $1230 | $1046 |
| Net income attributable to non-controlling interests in subsidiaries | $3 | $2 | $3 | $7 | $8 |
| Net income attributable to equity holders of the Bank | $417 | $399 | $367 | $1223 | $1038 |
| **Other financial data and measures** |  |  |  |  |  |
| Return on equity<sup>(2)</sup> | 15.7% | 15.8% | 14.3% | 15.8% | 13.6% |
| Effective tax rate<sup>(3)</sup> | 26.4% | 26.0% | 24.8% | 26.1% | 25.0% |
| Assets under administration ($ billions)<sup>(3)</sup> | $754 | $710 | $694 | $754 | $694 |
| Assets under management ($ billions)<sup>(3)</sup> | $407 | $380 | $364 | $407 | $364 |
| Average assets ($ billions) | $39 | $38 | $36 | $38 | $35 |
| Average liabilities ($ billions) | $50 | $47 | $41 | $47 | $41 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Refer to Non-GAAP Measures starting on page 5.

(3) Refer to Glossary on page 57 for the description of the measure.

T12A Adjusted Global Wealth Management financial performance

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions)<br>(Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Adjusted Results<sup>(2)</sup>** |  |  |  |  |  |
| Net interest income | $266 | $246 | $206 | $744 | $579 |
| Non-interest income | 1338 | 1295 | 1222 | 3980 | 3544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1604 | 1541 | 1428 | 4724 | 4123 |
| Provision for credit losses | 4 | 2 | 10 | 10 | 22 |
| Non-interest expenses<sup>(3)</sup> | 1021 | 988 | 917 | 3022 | 2679 |
| Income before taxes | 579 | 551 | 501 | 1692 | 1422 |
| Income tax expense | 152 | 144 | 124 | 442 | 356 |
| **Net income** | $427 | $407 | $377 | $1250 | $1066 |
| Net income attributable to non-controlling interests in subsidiaries | $3 | $2 | $3 | $7 | $8 |
| Net income attributable to equity holders of the Bank | $424 | $405 | $374 | $1243 | $1058 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Refer to Non-GAAP Measures starting on page 5 for adjusted results.

(3) Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended July 31, 2025 – $9 (April 30, 2025 – $9; July 31, 2024 – $9) and for the nine months ended July 31, 2025 – $27 (July 31, 2024 – $27).

Net income

Q3 2025 vs Q3 2024

Net income attributable to equity holders was $417 million, an increase of $50 million or 14%. Adjusted net income attributable to equity holders was $424 million, up $50 million or 13%. The increase was due primarily to higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. This was partly offset by higher volume-related non-interest expenses.

Q3 2025 vs Q2 2025

Net income attributable to equity holders increased $18 million or 5%. Adjusted net income attributable to equity holders increased $19 million or 5%, due primarily to higher mutual fund fees and net interest income, partly offset by higher volume-related non-interest expenses.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Net income attributable to equity holders was $1,223 million, an increase of $185 million or 18%. Adjusted net income attributable to equity holders was $1,243 million, up $185 million or 18%. The increase was due primarily to higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. This was partly offset by higher volume-related non-interest expenses.

Scotiabank Third Quarter Report 2025 29

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MANAGEMENT'S DISCUSSION & ANALYSIS

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

Q3 2025 vs Q3 2024

Assets under management of $407 billion increased $43 billion or 12% driven primarily by market appreciation and higher net sales. Assets under administration of $754 billion increased $60 billion or 9% due primarily to market appreciation and higher net sales.

Q3 2025 vs Q2 2025

Assets under management increased $27 billion or 7% due primarily to market appreciation and higher net sales. Assets under administration increased $44 billion or 6% due primarily to market appreciation and higher net sales.

Total revenue

Q3 2025 vs Q3 2024

Revenues were $1,604 million, an increase of $176 million or 12%. The increase was due primarily to higher mutual fund fees, brokerage revenues, and investment management fees driven by growth in assets under management and assets under administration, as well as higher net interest income driven by loan and deposit growth, and improved margins.

Q3 2025 vs Q2 2025

Revenues increased by $63 million or 4%, due primarily to higher mutual fund fees driven by growth in assets under management, and higher net interest income, driven by loan and deposit growth.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Revenues were $4,724 million, an increase of $601 million or 15%. The increase was due primarily to higher mutual fund fees, brokerage revenues, and investment management fees driven by growth in assets under management and assets under administration, as well as higher net interest income driven by loan and deposit growth, and improved margins.

Provision for credit losses

Q3 2025 vs Q3 2024

The provision for credit losses was $4 million, a decrease of $6 million from the prior year. The provision for credit losses ratio was five basis points, a decrease of 11 basis points.

Q3 2025 vs Q2 2025

The provision for credit losses was $4 million, an increase of $2 million from the prior quarter. The provision for credit losses ratio was five basis points, an increase of two basis points.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

The provision for credit losses was $10 million, compared to $22 million. The provision for credit losses ratio was five basis points, a decrease of seven basis points.

Non-interest expenses

Q3 2025 vs Q3 2024

Non-interest expenses of $1,030 million increased by $104 million or 11%, due primarily to higher volume-related expenses, technology costs, and sales force expansion to support business growth.

Q3 2025 vs Q2 2025

Non-interest expenses increased by $33 million or 3%, due primarily to higher volume-related expenses, and three more days in the quarter.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Non-interest expenses increased by $343 million or 13%, due primarily to higher volume-related expenses, technology costs, and sales force expansion to support business growth.

Taxes

Q3 2025 vs Q3 2024

The effective tax rate was 26.4% compared to 24.8% due to the implementation of the GMT in certain jurisdictions.

Q3 2025 vs Q2 2025

The effective tax rate was 26.4% compared to 26.0%.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

The effective tax rate was 26.1% compared to 25.0% due to the implementation of the GMT in certain jurisdictions.

30 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Global Banking and Markets

T13 Global Banking and Markets financial performance

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions)<br>(Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Reported Results** |  |  |  |  |  |
| Net interest income<sup>(2)</sup> | $350 | $368 | $304 | $1037 | $822 |
| Non-interest income<sup>(2)</sup> | 1180 | 1090 | 960 | 3545 | 2967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1530 | 1458 | 1264 | 4582 | 3789 |
| Provision for credit losses | 19 | 40 | 18 | 77 | 28 |
| Non-interest expenses | 894 | 878 | 773 | 2663 | 2315 |
| Income before taxes | 617 | 540 | 473 | 1842 | 1446 |
| Income tax expense | 144 | 128 | 105 | 440 | 315 |
| **Net income** | $473 | $412 | $368 | $1402 | $1131 |
| Net income attributable to non-controlling interest in subsidiaries | $– | $(1) | $– | $(1) | $– |
| Net income attributable to equity holders of the Bank | $473 | $413 | $368 | $1403 | $1131 |
| **Other financial data and measures** |  |  |  |  |  |
| Return on equity<sup>(3)</sup> | 12.6% | 11.3% | 9.5% | 12.4% | 9.8% |
| Effective tax rate<sup>(4)</sup> | 23.4% | 23.6% | 22.3% | 23.9% | 21.8% |
| Provision for credit losses – performing (Stage 1 and 2) | $16 | $(1) | $15 | $33 | $29 |
| Provision for credit losses – impaired (Stage 3) | $3 | $41 | $3 | $44 | $(1) |
| Provision for credit losses as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 0.07% | 0.14% | 0.06% | 0.09% | 0.03% |
| Provision for credit losses on impaired loans as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 0.01% | 0.15% | 0.01% | 0.05% | –% |
| Net write-offs as a percentage of average net loans and acceptances (annualized)<sup>(4)</sup> | 0.09% | 0.13% | –% | 0.07% | (0.01)% |
| Average assets ($ billions) | $493 | $502 | $493 | $502 | $497 |
| Average liabilities ($ billions) | $513 | $516 | $476 | $513 | $474 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Includes the gross-up of tax-exempt income earned on certain securities reported in either net interest income or non-interest income for the three months ended July 31, 2025 – nil (April 30, 2025 – nil; July 31, 2024 – $5) and for the nine months ended July 31, 2025 – nil (July 31, 2024 – $50).

(3) Refer to Non-GAAP Measures starting on page 5.

(4) Refer to Glossary on page 57 for the description of the measure.

Net income

Q3 2025 vs Q3 2024

Net income attributable to equity holders was $473 million compared to $368 million, an increase of $105 million or 29%. The increase was driven primarily by higher net interest income and non-interest income, partly offset by higher non-interest expenses and higher income taxes.

Q3 2025 vs Q2 2025

Net income attributable to equity holders was $473 million compared to $413 million, an increase of $60 million or 15%. The increase was driven primarily by higher non-interest income and lower provision for credit losses, partly offset by lower net interest income, higher non-interest expenses and higher income taxes.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Net income attributable to equity holders was $1,403 million compared to $1,131 million, an increase of $272 million or 24%. The increase was driven primarily by higher net interest income and non-interest income, partly offset by higher non-interest expenses, provision for credit losses and income taxes.

Average assets

Q3 2025 vs Q3 2024

Average assets were $493 billion, in line with the prior year. Higher securities purchased under resale agreements and the impact of foreign currency translation were offset by lower loans and acceptances of $15 billion or 14%.

Q3 2025 vs Q2 2025

Average assets were $493 billion, a decrease of $9 billion or 2% due mainly to lower securities purchased under resale agreements, lower loans and acceptances of $3 billion or 3%, and the impact of foreign currency translation, partly offset by higher trading securities.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Average assets were $502 billion, an increase of $5 billion or 1% due mainly to higher securities purchased under resale agreements, higher trading securities and the impact of foreign currency translation, partly offset by lower loans and acceptances of $17 billion or 15%.

Scotiabank Third Quarter Report 2025 31

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MANAGEMENT'S DISCUSSION & ANALYSIS

Average liabilities

Q3 2025 vs Q3 2024

Average liabilities of $513 billion increased $37 billion or 8% due mainly to higher securities sold under repurchase agreements and the impact of foreign currency translation.

Q3 2025 vs Q2 2025

Average liabilities of $513 billion decreased $3 billion or 1% due mainly to lower deposit volumes of $7 billion or 4% and the impact of foreign currency translation, partly offset by higher securities sold under repurchase agreements.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Average liabilities of $513 billion increased $39 billion or 8% due mainly to higher securities sold under repurchase agreements, higher deposit volumes of $4 billion or 2% and the impact of foreign currency translation.

Total revenue

Q3 2025 vs Q3 2024

Revenues were $1,530 million, up $266 million or 21%.

Net interest income of $350 million increased by $46 million or 15%. This was due mainly to higher lending margins and lower trading-related funding costs.

Non-interest income of $1,180 million increased by $220 million or 23% due mainly to higher trading-related revenues from the fixed income and equities businesses as well as higher underwriting and advisory fees.

Q3 2025 vs Q2 2025

Revenues increased $72 million or 5%.

Net interest income of $350 million decreased by $18 million or 5%. This was due mainly to lower loan and deposit volumes, lower deposit margins, and the negative impact of foreign currency translation.

Non-interest income of $1,180 million increased by $90 million or 8% due mainly to higher fixed income trading-related revenues, partly offset by the negative impact of foreign currency translation.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Revenues were $4,582 million, up $793 million or 21%.

Net interest income of $1,037 million increased by $215 million or 26%. This was due mainly to higher lending margins, lower trading-related funding costs and the positive impact of foreign currency translation.

Non-interest income of $3,545 million increased by $578 million or 19% due mainly to higher trading-related revenues from equities, higher underwriting and advisory fees, and the positive impact of foreign currency translation.

Provision for credit losses

Q3 2025 vs Q3 2024

The provision for credit losses was $19 million compared to $18 million. The provision for credit losses ratio was seven basis points, an increase of one basis point.

Provision for credit losses on performing loans was $16 million, an increase of $1 million. The provision this period was related to credit quality migration.

Provision for credit losses on impaired loans was $3 million, unchanged from prior period. The provision for credit losses ratio on impaired loans was one basis point, unchanged from the prior year.

Q3 2025 vs Q2 2025

The provision for credit losses was $19 million compared to a provision of $40 million in the prior quarter. The provision for credit losses ratio was seven basis points, a decrease of seven basis points.

Provision for credit losses on performing loans was $16 million compared to a net reversal of $1 million. The provision this period was related to credit quality migration. The prior quarter reversal was driven by improved credit quality, partly offset by the unfavourable macroeconomic outlook.

Provision for credit losses on impaired loans was $3 million, compared to $41 million as the prior quarter provisions were related mostly to one account. The provision for credit losses ratio on impaired loans was one basis point, a decrease of 14 basis points.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

The provision for credit losses was $77 million, an increase of $49 million. The provision for credit losses ratio was nine basis points, an increase of six basis points.

Provision for credit losses on performing loans was $33 million, compared to a provision of $29 million. The provision this period was driven by credit quality migration and the continued unfavourable macroeconomic outlook.

Provision for credit losses on impaired loans was $44 million, compared to a net reversal of $1 million, and was related mostly to one account. The provision for credit losses ratio on impaired loans was five basis points, an increase of five basis points.

Non-interest expenses

Q3 2025 vs Q3 2024

Non-interest expenses were $894 million compared to $773 million, an increase of 16% due mainly to higher personnel costs, including performance-based compensation, higher technology costs to support business growth and the negative impact of foreign currency translation.

32 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Q3 2025 vs Q2 2025

Non-interest expenses were $894 million compared to $878 million, an increase of 2% due mainly to higher personnel costs, including performance-based compensation and higher technology costs to support business growth, partly offset by the positive impact of foreign currency translation.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Non-interest expenses of $2,663 million increased $348 million or 15%, due mainly to higher personnel costs, including performance-based compensation, higher technology costs to support business growth and the negative impact of foreign currency translation.

Taxes

The effective tax rate for the quarter was 23.4% compared to 22.3% in the prior year and 23.6% in the prior quarter, due mainly to the change in earnings mix across jurisdictions. On a year-to-date basis, the effective tax rate was 23.9% compared to 21.8%, due mainly to the change in earnings mix across jurisdictions.

Other<sup>(1)</sup>

T14 Other financial performance

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions)<br>(Taxable equivalent basis) | **July 31**<br>**2025** | April 30<br>2025 | July 31<br>2024<sup>(2)</sup> | **July 31**<br>**2025** | July 31<br>2024<sup>(2)</sup> |
| **Reported Results** |  |  |  |  |  |
| Net interest income<sup>(3)</sup> | $(9) | $(47) | $(451) | $(250) | $(1342) |
| Non-interest income<sup>(3)(4)(5)</sup> | (13) | (66) | (155) | (128) | (147) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | (22) | (113) | (606) | (378) | (1489) |
| Provision for credit losses |  | 1 |  | 1 | 1 |
| Non-interest expenses<sup>(5)</sup> | 58 | 131 | 172 | 1603 | 152 |
| Income before taxes | (80) | (245) | (778) | (1982) | (1642) |
| Income tax expense/(benefit)<sup>(3)</sup> | (45) | (137) | (311) | (307) | (763) |
| **Net income (loss)** | $(35) | $(108) | $(467) | $(1675) | $(879) |
| Net income (loss) attributable to non-controlling interests in subsidiaries | $36 | $17 | $(2) | $(138) | $(2) |
| Net income (loss) attributable to equity holders | $(71) | $(125) | $(465) | $(1537) | $(877) |
| **Other measures** |  |  |  |  |  |
| Average assets ($ billions) | $228 | $238 | $210 | $230 | $206 |
| Average liabilities ($ billions) | $243 | $258 | $256 | $255 | $253 |

---

(1) Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income, non-interest income and provision for income taxes and differences in the actual amount of costs incurred and charged to the operating segments.

(2) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(3) Includes the elimination of the gross-up of tax-exempt income earned on certain securities reported in net interest income, non-interest income and provision for income taxes for the three months ended July 31, 2025 – nil (April 30, 2025 – nil; July 31, 2024 – $6) and for the nine months ended July 31, 2025 – nil (July 31, 2024 – $53) to arrive at the amounts reported in the Consolidated Statement of Income.

(4) Includes income (on a taxable equivalent basis) from associated corporations for the three months ended July 31, 2025 – $120 (April 30, 2025 – $123; July 31, 2024 – $18) and for the nine months ended July 31, 2025 – $297 (July 31, 2024 – $70). Non-interest income and the provision for income taxes in each period include the elimination of the tax normalization adjustments related to the gross-up of income from associated companies in the business segments.

(5) Includes elimination of fees paid to Canadian Banking by Canadian Wealth Management for administrative support and other services provided by Canadian Banking to the Global Wealth Management businesses. These are reported as revenues in Canadian Banking and operating expenses in Global Wealth Management.

Scotiabank Third Quarter Report 2025 33

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MANAGEMENT'S DISCUSSION & ANALYSIS

T14A Adjusted Other financial performance

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions)<br>(Taxable equivalent basis) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024<sup>(1)</sup> | July 31<br>2025 | July 31<br>2024<sup>(1)</sup> |
| **Adjusted Results<sup>(2)</sup>** |  |  |  |  |  |
| Net interest income | $(9) | $(47) | $(451) | $(250) | $(1342) |
| Non-interest income<sup>(3)</sup> | (5) | (48) | (12) | (102) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | (14) | (95) | (463) | (352) | (1346) |
| Provision for credit losses |  | 1 |  | 1 | 1 |
| Non-interest expenses<sup>(4)</sup> | 81 | 105 | 3 | 238 | (17) |
| Income before taxes | (95) | (201) | (466) | (591) | (1330) |
| Income tax expense/(benefit) | (38) | (122) | (265) | (278) | (717) |
| **Net income (loss)** | $(57) | $(79) | $(201) | $(313) | $(613) |
| Net income (loss) attributable to non-controlling interests in subsidiaries | $(1) | $1 | $– | $– | $– |
| Net income (loss) attributable to equity holders | $(56) | $(80) | $(201) | $(313) | $(613) |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(2) Refer to Non-GAAP Measures starting on page 5 for adjusted results.

(3) Adjusted for amortization of intangibles for the three months ended July 31, 2025 – $8 (April 30, 2025 – $9; July 31, 2024 – nil) and for the nine months ended July 31, 2025 – $17 (July 31, 2024 – nil). Adjusted for the net (gain)/loss on divestitures and wind down of operations for the three months ended July 31, 2025 – nil (April 30, 2025 – $9; July 31, 2024 – $143) and for the nine months ended July 31, 2025 – $9 (July 31, 2024 – $143).

(4) Adjusted for net (gain)/loss on divestitures and wind down of operations for the three months ended July 31, 2025 – $(23) (April 30, 2025 – $26; July 31, 2024 – $(7)) and for the nine months ended July 31, 2025 – $1,365 (July 31, 2024 – $(7)). Adjusted for legal provision for the three and nine months ended July 31, 2024 – $176.

The Other segment includes Group Treasury, investments in certain associated corporations, and smaller operating segments and corporate items which are not allocated to a business line. Group Treasury is primarily responsible for Balance Sheet, Liquidity and Interest Rate Risk management, which includes the Bank's wholesale funding activities.

Net interest income, non-interest income, and the provision for income taxes in each period include the elimination of tax-exempt income gross-up. This amount is included in the operating segments, which are reported on a taxable equivalent basis.

Net income from associated corporations and the provision for income taxes in each period include the tax normalization adjustments related to the gross-up of income from associated companies. This adjustment normalizes the effective tax rate in the divisions to better present the contribution of the associated companies to the divisional results.

Q3 2025 vs Q3 2024

Net loss attributable to equity holders was $71 million compared to a net loss of $465 million in the prior year. The adjusted net loss attributable to equity holders was $56 million compared to an adjusted net loss of $201 million in the prior year. The lower loss was due to higher revenues, partly offset by higher expenses and a lower income tax benefit. The higher revenues were driven mainly by higher net interest income related to asset/liability management activities which benefitted from lower interest rates, and higher income from associated corporations related to the KeyCorp investment.

Q3 2025 vs Q2 2025

Net loss attributable to equity holders improved $54 million from the prior quarter. The adjusted net loss attributable to equity holders improved $24 million from the prior quarter. The lower loss was due to higher revenues and lower non-interest expenses, which was partly offset by a lower income tax benefit. The higher revenues were due primarily to higher net interest income from lower funding costs and higher investment gains.

Year-to-date Q3 2025 vs Year-to-date Q3 2024

Net loss attributable to equity holders was $1,537 million compared to $877 million last year. The current year includes a net loss of $1,196 million related to the announced sale of the banking operations in Colombia, Costa Rica and Panama. Adjusted net loss attributable to equity holders was $313 million compared to $613 million last year. The lower loss was due to higher revenues, which were partly offset by higher expenses and a lower income tax benefit. The higher revenues were due primarily to higher net interest income which benefitted from lower interest rates, and higher income from associated corporations related to the KeyCorp investment.

34 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Geographic Highlights

T15 Geographic highlights

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 |
| (Unaudited) ($ millions) | Canada | U.S. | Mexico | Peru | Chile | Colombia | Caribbean<br>and<br>Central<br>America | Other | Total |
| **Reported results** |  |  |  |  |  |  |  |  |  |
| Net interest income | $2851 | $277 | $612 | $307 | $488 | $185 | $483 | $290 | $5493 |
| Non-interest income | 2452 | 405 | 237 | 153 | 137 | 123 | 332 | 154 | 3993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 5303 | 682 | 849 | 460 | 625 | 308 | 815 | 444 | 9486 |
| Provision for credit losses | 467 | 18 | 139 | 84 | 179 | 86 | 53 | 15 | 1041 |
| Non-interest expenses | 2906 | 399 | 449 | 209 | 293 | 183 | 368 | 282 | 5089 |
| Income tax expense | 519 | 27 | 63 | 40 | 21 | 18 | 118 | 23 | 829 |
| Net income | $1411 | $238 | $198 | $127 | $132 | $21 | $276 | $124 | $2527 |
| Net income attributable to non-controlling interests in subsidiaries | 37 |  | 5 | 1 | (3) | 7 | 33 |  | 80 |
| Net income attributable to equity holders of the Bank | $1374 | $238 | $193 | $126 | $135 | $14 | $243 | $124 | $2447 |
| **Adjusted results<sup>(1)</sup>** |  |  |  |  |  |  |  |  |  |
| Adjustments | 15 | 7 |  |  | 5 |  |  | 1 | 28 |
| Adjusted net income attributable to equity holders of the Bank | $1389 | $245 | $193 | $126 | $140 | $14 | $243 | $125 | $2475 |
| Average Assets ($ billions) | $895 | $230 | $58 | $28 | $55 | $14 | $37 | $129 | $1446 |
| Average Liabilities ($ billions) | $880 | $184 | $54 | $21 | $49 | $14 | $35 | $123 | $1360 |

---

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| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended July 31, 2024<sup>(2)</sup> | For the three months ended July 31, 2024<sup>(2)</sup> | For the three months ended July 31, 2024<sup>(2)</sup> | For the three months ended July 31, 2024<sup>(2)</sup> | For the three months ended July 31, 2024<sup>(2)</sup> | For the three months ended July 31, 2024<sup>(2)</sup> | For the three months ended July 31, 2024<sup>(2)</sup> | For the three months ended July 31, 2024<sup>(2)</sup> | For the three months ended July 31, 2024<sup>(2)</sup> |
| (Unaudited) ($ millions) | Canada | U.S. | Mexico | Peru | Chile | Colombia | Caribbean<br>and<br>Central<br>America | Other | Total | Canada | U.S. | Mexico | Peru | Chile | Colombia | Caribbean<br>and<br>Central<br>America | Other | Total |
| **Reported results** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net interest income | $2847 | $122 | $592 | $332 | $515 | $174 | $466 | $222 | $5270 | $2314 | $196 | $603 | $364 | $487 | $174 | $469 | $255 | $4862 |
| Non-interest income | 2127 | 549 | 242 | 139 | 150 | 118 | 318 | 167 | 3810 | 2061 | 368 | 250 | 135 | 122 | 119 | 309 | 138 | 3502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 4974 | 671 | 834 | 471 | 665 | 292 | 784 | 389 | 9080 | 4375 | 564 | 853 | 499 | 609 | 293 | 778 | 393 | 8364 |
| Provision for credit losses | 813 | 33 | 145 | 81 | 168 | 94 | 46 | 18 | 1398 | 442 | 13 | 108 | 127 | 147 | 156 | 33 | 26 | 1052 |
| Non-interest expenses | 2908 | 409 | 446 | 215 | 295 | 185 | 374 | 278 | 5110 | 2822 | 324 | 472 | 217 | 288 | 198 | 364 | 264 | 4949 |
| Income tax expense | 288 | 25 | 62 | 10 | 25 | 8 | 107 | 15 | 540 | 201 | 38 | 59 | 40 | 26 | (20) | 85 | 22 | 451 |
| Net income | $965 | $204 | $181 | $165 | $177 | $5 | $257 | $78 | $2032 | $910 | $189 | $214 | $115 | $148 | $(41) | $296 | $81 | $1912 |
| Net income attributable to non-controlling interests in subsidiaries | 15 |  | 5 | 2 | 3 |  | 31 |  | 56 |  |  | 6 | 1 | 15 | (16) | 30 |  | 36 |
| Net income attributable to equity holders of the Bank | $950 | $204 | $176 | $163 | $174 | $5 | $226 | $78 | $1976 | $910 | $189 | $208 | $114 | $133 | $(25) | $266 | $81 | $1876 |
| **Adjusted results<sup>(1)</sup>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Adjustments | 41 | 9 |  |  | 5 |  |  | 1 | 56 | 273 |  |  |  | 4 |  |  |  | 277 |
| Adjusted net income (loss) attributable to equity holders of<br> the Bank | $991 | $213 | $176 | $163 | $179 | $5 | $226 | $79 | $2032 | $1183 | $189 | $208 | $114 | $137 | $(25) | $266 | $81 | $2153 |
| Average Assets ($ billions) | $899 | $241 | $59 | $29 | $57 | $14 | $38 | $131 | $1468 | $877 | $217 | $66 | $27 | $55 | $15 | $36 | $130 | $1423 |
| Average Liabilities ($ billions) | $889 | $187 | $54 | $22 | $52 | $14 | $35 | $129 | $1382 | $859 | $188 | $60 | $20 | $51 | $15 | $33 | $115 | $1341 |
|  | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2024<sup>(2)</sup> | For the nine months ended July 31, 2024<sup>(2)</sup> | For the nine months ended July 31, 2024<sup>(2)</sup> | For the nine months ended July 31, 2024<sup>(2)</sup> | For the nine months ended July 31, 2024<sup>(2)</sup> | For the nine months ended July 31, 2024<sup>(2)</sup> | For the nine months ended July 31, 2024<sup>(2)</sup> | For the nine months ended July 31, 2024<sup>(2)</sup> | For the nine months ended July 31, 2024<sup>(2)</sup> |
| (Unaudited) ($ millions) | Canada | U.S. | Mexico | Peru | Chile | Colombia | Caribbean<br>and<br>Central<br>America | Other | Total | Canada | U.S. | Mexico | Peru | Chile | Colombia | Caribbean<br>and<br>Central<br>America | Other | Total |
| **Reported results** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net interest income | $8419 | $552 | $1761 | $1014 | $1490 | $528 | $1438 | $734 | $15936 | $6699 | $517 | $1845 | $1054 | $1545 | $517 | $1374 | $778 | $14329 |
| Non-interest income | 6890 | 1592 | 748 | 464 | 420 | 355 | 980 | 553 | 12002 | 6380 | 1166 | 791 | 416 | 330 | 365 | 884 | 483 | 10815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 15309 | 2144 | 2509 | 1478 | 1910 | 883 | 2418 | 1287 | 27938 | 13079 | 1683 | 2636 | 1470 | 1875 | 882 | 2258 | 1261 | 25144 |
| Provision for credit losses | 1827 | 63 | 412 | 277 | 539 | 287 | 147 | 49 | 3601 | 1259 | 22 | 271 | 383 | 475 | 447 | 105 | 59 | 3021 |
| Non-interest expenses | 10093 | 1190 | 1337 | 652 | 879 | 559 | 1140 | 840 | 16690 | 8005 | 966 | 1444 | 639 | 861 | 604 | 1095 | 785 | 14399 |
| Income tax expense | 1199 | 133 | 193 | 91 | 66 | 22 | 338 | 53 | 2095 | 730 | 109 | 223 | 106 | 90 | (50) | 225 | 88 | 1521 |
| Net income | $2190 | $758 | $567 | $458 | $426 | $15 | $793 | $345 | $5552 | $3085 | $586 | $698 | $342 | $449 | $(119) | $833 | $329 | $6203 |
| Net income attributable to non-controlling interests in subsidiaries | (139) |  | 16 | 5 | 6 | 2 | 92 |  | (18) |  |  | 18 | 2 | 30 | (46) | 83 |  | 87 |
| Net income attributable to equity holders of the Bank | $2329 | $758 | $551 | $453 | $420 | $13 | $701 | $345 | $5570 | $3085 | $586 | $680 | $340 | $419 | $(73) | $750 | $329 | $6116 |
| **Adjusted results<sup>(1)</sup>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Adjustments | 1227 | 16 |  |  | 15 |  | 1 | 3 | 1262 | 285 |  |  | 1 | 14 |  | 2 | 1 | 303 |
| Adjusted net income (loss) attributable to equity holders of<br> the Bank | $3556 | $774 | $551 | $453 | $435 | $13 | $702 | $348 | $6832 | $3370 | $586 | $680 | $341 | $433 | $(73) | $752 | $330 | $6419 |
| Average Assets ($ billions) | $898 | $234 | $59 | $29 | $55 | $14 | $38 | $131 | $1458 | $869 | $219 | $65 | $27 | $57 | $15 | $35 | $132 | $1419 |
| Average Liabilities ($ billions) | $884 | $188 | $54 | $22 | $50 | $14 | $35 | $126 | $1373 | $848 | $190 | $61 | $20 | $53 | $14 | $32 | $121 | $1339 |

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(1) Refer to Non-GAAP Measures section starting on page 5.

(2) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 21 for further details.

(3) Includes the impairment loss related to the Bank's announced sale of the banking operations in Colombia, Costa Rica and Panama.

Scotiabank Third Quarter Report 2025 35

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MANAGEMENT'S DISCUSSION & ANALYSIS

Quarterly Financial Highlights

T16 Quarterly financial highlights

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended |
| (Unaudited) ($ millions) | July 31<br>2025 | April 30<br>2025 | January 31<br>2025 | October 31<br>2024 | July 31<br>2024 | April 30<br>2024 | January 31<br>2024 | October 31<br>2023 |
| **Reported results** |  |  |  |  |  |  |  |  |
| Net interest income | $5493 | $5270 | $5173 | $4923 | $4862 | $4694 | $4773 | $4666 |
| Non-interest income | 3993 | 3810 | 4199 | 3603 | 3502 | 3653 | 3660 | 3606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $9486 | $9080 | $9372 | $8526 | $8364 | $8347 | $8433 | $8272 |
| Provision for credit losses | 1041 | 1398 | 1162 | 1030 | 1052 | 1007 | 962 | 1256 |
| Non-interest expenses | 5089 | 5110 | 6491 | 5296 | 4949 | 4711 | 4739 | 5527 |
| Income tax expense | 829 | 540 | 726 | 511 | 451 | 537 | 533 | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $2527 | $2032 | $993 | $1689 | $1912 | $2092 | $2199 | $1354 |
| Basic earnings per share ($) | 1.84 | 1.48 | 0.82 | 1.23 | 1.43 | 1.59 | 1.70 | 1.01 |
| Diluted earnings per share ($) | 1.84 | 1.48 | 0.66 | 1.22 | 1.41 | 1.57 | 1.68 | 0.99 |
| Net interest margin (%)<sup>(1)</sup> | 2.36 | 2.31 | 2.23 | 2.15 | 2.14 | 2.17 | 2.19 | 2.15 |
| Effective tax rate (%)<sup>(2)</sup> | 24.7 | 21 | 42.2 | 23.2 | 19.1 | 20.4 | 19.5 | 9.1 |
| **Adjusted results<sup>(1)</sup>** |  |  |  |  |  |  |  |  |
| Adjusting items impacting non-interest income and total revenue (Pre-tax) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations | $– | $9 | $– | $– | $143 | $– | $– | $(367) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 8 | 9 |  |  |  |  |  |  |
| Total non-interest income and total revenue adjusting items (Pre-tax) | 8 | 18 |  |  | 143 |  |  | (367) |
| Adjusting items impacting non-interest expenses (Pre-tax) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Divestitures and wind-down of operations | (23) | 26 | 1362 |  | (7) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charge and severance provisions |  |  |  | 53 |  |  |  | 354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidation of real estate and contract termination costs |  |  |  |  |  |  |  | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of non-financial assets |  |  |  | 440 |  |  |  | 346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 17 | 17 | 18 | 19 | 17 | 18 | 18 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal provision |  |  |  |  | 176 |  |  |  |
| Total non-interest expenses adjusting items (Pre-tax) | (6) | 43 | 1380 | 512 | 186 | 18 | 18 | 806 |
| Total impact of adjusting items on net income before taxes | 2 | 61 | 1380 | 512 | 329 | 18 | 18 | 439 |
| Impact of adjusting items on income tax expense | (11) | (21) | (11) | (82) | (50) | (5) | (5) | (150) |
| Total impact of adjusting items on net income | (9) | 40 | 1369 | 430 | 279 | 13 | 13 | 289 |
| Adjusted net income | $2518 | $2072 | $2362 | $2119 | $2191 | $2105 | $2212 | $1643 |
| Adjusted diluted earnings per share ($) | 1.88 | 1.52 | 1.76 | 1.57 | 1.63 | 1.58 | 1.69 | 1.23 |

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(1) Refer to Non-GAAP Measures section starting on page 5.

(2) Refer to Glossary on page 57 for the description of the measure.

Trending analysis

Earnings over the period were driven by higher net interest income and generally higher non-interest income, partly offset by generally higher provision for credit losses and increased term funding costs. On an adjusted basis, earnings generally increased over the period.

Total revenue

Canadian Banking revenue has increased from continued volume growth, improved business mix, and growing client activity. International Banking net interest income is stable with improvements in lending mix and the positive impact from central bank rate decreases. Global Wealth Management fee-based revenues increased during the period and are impacted by market conditions. Global Banking and Markets revenues are affected by market conditions that impact client activity in the capital markets and business banking businesses. Revenues in the Other segment were impacted by higher term funding costs, and income from associated corporations.

Provision for credit losses

Provision for credit losses have generally trended upward during the period driven by higher impaired loan provisions due mainly to higher formations and retail credit migration. Provisions also generally increased during the period due to the uncertainty around the impact of higher interest rates, retail portfolio growth and continued unfavourable macroeconomic outlook.

36 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Non-interest expenses

Non-interest expenses for the period reflect the Bank's continued investment in personnel and technology to support strategy and business growth, as well as the impact of inflation. This was partly offset by expense management and efficiency initiatives. The impact of foreign currency translation also contributed to fluctuations over the period. Non-interest expenses for the period were impacted by adjusting items.

Provision for income taxes

The effective tax rate was 24.7% this quarter. The effective tax rate average was 22.4% over the period and was impacted by increased statutory tax rates, implementation of the GMT, divestitures, restructuring charge and net income earned in foreign jurisdictions, as well as the variability of tax-exempt dividend income and inflationary benefits.

Financial Position

T17 Condensed statement of financial position

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | As at | As at | | | |
| (Unaudited) ($ billions) | July 31<br>2025 | October 31<br>2024 | Change | Volume<br>Change | FX<br>Change |
| **Assets** |  |  |  |  |  |
| Cash, deposits with financial institutions and precious metals | $75.5 | $66.4 | 13.7% | 13.5% | 0.2% |
| Trading assets | 136.5 | 129.7 | 5.2 | 4.7 | 0.5 |
| Securities purchased under resale agreements and securities borrowed | 185.4 | 200.6 | (7.6) | (7.8) | 0.2 |
| Derivative financial instruments | 43.8 | 44.4 | (1.3) | (3.7) | 2.4 |
| Investment securities | 149.2 | 152.8 | (2.4) | (2.5) | 0.1 |
| Loans | 761.6 | 760.8 | 0.1 | (0.1) | 0.2 |
| Other | 62.7 | 57.3 | 9.6 | 9.4 | 0.2 |
| Total assets | $1414.7 | $1412.0 | 0.2% | (0.1)% | 0.3% |
| **Liabilities** |  |  |  |  |  |
| Deposits | $946.8 | $943.8 | 0.3% | –% | 0.3% |
| Derivative financial instruments | 52.9 | 51.3 | 3.2 | 4.3 | (1.1) |
| Obligations related to securities sold under repurchase agreements and securities lent | 182.2 | 190.5 | (4.3) | (4.6) | 0.3 |
| Other liabilities | 139.7 | 134.5 | 3.8 | 2.9 | 0.9 |
| Subordinated debentures | 7.6 | 7.8 | (2.9) | (2.7) | (0.2) |
| Total liabilities | $1329.2 | $1327.9 | 0.1% | (0.2)% | 0.3% |
| **Equity** |  |  |  |  |  |
| Common equity<sup>(1)</sup> | $75.3 | $73.6 | 2.3% | 2.5% | (0.2)% |
| Preferred shares and other equity instruments | 8.5 | 8.8 | (2.7) | (2.7) |  |
| Non-controlling interests in subsidiaries | 1.7 | 1.7 | (1.5) | (2.0) | 0.5 |
| Total equity | $85.5 | $84.1 | 1.7% | 1.8% | (0.1)% |
| Total liabilities and equity | $1414.7 | $1412.0 | 0.2% | (0.1)% | 0.3% |

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(1) Includes net impact of foreign currency translation, primarily change in spot rates on the translation of assets and liabilities from functional currency to Canadian dollar equivalent.

The Bank's total assets were $1,415 billion as at July 31, 2025, an increase of $3 billion from October 31, 2024. Cash, deposits with financial institutions and precious metals increased $9 billion due mainly to higher amounts at central banks and increases in the gold position and price. Trading assets increased $7 billion due mainly to higher trading securities. Securities purchased under resale agreements and securities borrowed decreased $15 billion due mainly to lower client activity. Investment securities decreased $4 billion due mainly to lower holdings of other foreign government debt and common equities. Loans increased $1 billion. Residential mortgages were up $10 billion due mainly to growth in Canada and personal loans increased $2 billion mainly in Latin America, which were partly offset by lower business and government loans, mainly in Canada and Asia. Other assets increased $5 billion due mainly to the Bank's investment in KeyCorp and higher collateral requirements.

Total liabilities were $1,329 billion as at July 31, 2025, an increase of $1 billion from October 31, 2024. Total deposits increased $3 billion. Personal deposits of $301 billion increased $3 billion mainly in Canada and business and government deposits were higher by $6 billion, mainly in Europe and Latin America, which were partly offset by lower deposits by financial institutions, mainly in Asia. Derivative instrument liabilities increased by $2 billion due to mainly to changes in equity derivatives. Obligations related to securities sold under repurchase agreements and securities lent decreased $8 billion due mainly to client activity. Other liabilities increased $5 billion due mainly to new issuances of financial instruments designated at fair value through profit or loss.

Total equity was $85 billion, an increase of $1 billion from October 31, 2024. Equity was higher due to current year earnings of $5,552 million and other comprehensive income of $841 million, due mainly to gains on derivative instruments designated as cash flow hedges, as well as the net change in fair value of debt securities measured through other comprehensive income. Partly offsetting these items were dividends paid of $4,399 million and the net redemption of shares and other equity instruments of $392 million.

Risk Management

The Bank's risk management policies and practices have not substantially changed from those outlined in the Bank's 2024 Annual Report. For a complete discussion of the risk management policies and practices and additional information on risk factors, refer to the "Risk Management" section in the 2024 Annual Report.

Top and emerging risks

The Bank is exposed to a variety of top and emerging risks as disclosed in the Bank's 2024 Annual Report on Page 80. These risks can potentially adversely affect the Bank's business strategies, financial performance, and reputation. As part of our risk management approach, we monitor our operating environment to identify, assess, review, and manage a broad range of top and emerging risks to undertake appropriate risk mitigation strategies. The impact of U.S. imposed tariffs and continued trade and government policy uncertainty is a key risk driver impacting our top and emerging risks.

Scotiabank Third Quarter Report 2025 37

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MANAGEMENT'S DISCUSSION & ANALYSIS

Impact of Tariffs

Heightened economic uncertainty driven by the impact of tariffs and changing government policy may be contributing to a slowdown in economic and trade activity. This is occurring in an already uncertain macroeconomic environment for the Bank's clients who may also be dealing with higher borrowing costs and could further dampen consumer demand and investor confidence. In addition, existing sectoral and non-CUSMA compliant goods tariffs on Mexico and Canada could impact key exports creating headwinds for the Bank in its priority markets. Proactive provisioning, stress testing, and regular monitoring of the environment will help bolster the Bank's preparedness for a significant downturn, while fostering a deeper understanding of how evolving conditions affect the Bank's risk profiles and business performance.

Credit risk

Allowance for credit losses

IFRS 9 Financial Instruments, requires the consideration of past events, current conditions and reasonable and supportable forward-looking information over the life of the exposure to measure expected credit losses. Furthermore, to assess significant increases in credit risk, IFRS 9 requires that entities assess changes in the risk of a default occurring over the expected life of a financial instrument when determining staging. Consistent with the requirements of IFRS 9, the Bank considers both quantitative and qualitative information in the assessment of a significant increase in credit risk.

The Bank's models are calibrated to consider past performance and macroeconomic forward-looking variables as inputs, as further described below. In the current year and prior year, the Bank enhanced certain of its IFRS 9 models, with the enhanced models exhibiting higher sensitivity to changes in the macroeconomic outlook. Expert credit judgement may be applied in circumstances where, in the Bank's view, the inputs, assumptions, and/or modelling techniques do not capture all relevant risk factors, including the emergence of economic or political events of the market up to the date of the financial statements. Expert credit judgement is also applied in the assessment of underlying credit deterioration and migration of balances to progressive stages.

The Bank has generated a forward-looking base case scenario and three alternate forward-looking scenarios (one optimistic and two pessimistic) as key inputs into the expected credit loss provisioning models. As required under IFRS 9, the allowance for credit losses at each reporting period must be based on inputs, assumptions and information available up to that date. Given the uncertainty surrounding U.S. trade policies and the direction of tariffs, the scenarios this quarter have varying assumptions of imposed tariffs. The base case scenario assumes tariffs announced and implemented, avoiding speculation on future announcements, including potential trade deals and tariff pauses. Differing assumptions are reflected in the alternate scenarios described below. As new information comes to light in future quarters, the scenarios and assumptions will be updated accordingly.

The current quarter's base case assumes lower trade tensions than in the prior quarter's base case. However, uncertainty originating from the U.S. is still impacting its domestic and the global economic outlook. We forecast U.S. economic growth to slow in 2025, and further in 2026, due to the rise in import tariffs, but to post stronger than previously expected growth over this period, thanks to an upward revision to its assumed performance for the first half of this year and lower trade tensions. Despite softer stagflation headwinds from reduced trade tensions, our assumption about inflationary pressures is unchanged based on survey information and inflation figures from consumer price reports. We expect the U.S. monetary policy rate to stay constant throughout fiscal 2025 and to start declining in Q1 2026, the same profile as in our previous base case, consistent with our unchanged view on inflation pressures.

Canada's economy is also expected to slow over the 2025-2026 period in line with softening U.S. economic growth, though to a lesser extent than previously projected, supported by the upward revision to U.S. growth. However, the gains in 2025 are overshadowed by a weaker than assumed performance in the first half of the year. Consequently, Canada's economy will expand at a modestly slower pace than previously expected in 2025, but by more in 2026 as the drag from the early 2025 headwinds fades. Stronger economic growth expected for the second half of 2025, as well as recent CPI reports showing core inflation indicators at or slightly above the upper bound of the Bank of Canada inflation control range, are signaling stronger than previously assumed inflation pressures in Canada. This contributes to raising the monetary policy rate profile by 25 basis points in the second half of 2026 compared to last quarter's base case.

The optimistic scenario features somewhat stronger economic activity relative to the base case. The pessimistic scenario features a negative demand-type shock with globally tighter financial conditions, weaker growth and inflation, and lower monetary policy rates than in the base case scenario. It also assumes a combination of U.S. imposed tariffs on world economies, including an effective tariff of 7.5% on imports from Canada and Mexico while facing no retaliation from these countries. The very pessimistic scenario features a strong stagflationary impulse that leads to a protracted period of financial market uncertainty. It also assumes U.S. imposed tariffs with a magnitude about three times that of the pessimistic scenario. Here, all countries retaliate. This results in higher inflation, requiring central banks to raise their policy rates to higher levels than in the base case in order to bring inflation under control, which is dampening economic activity.

The following section provides additional detail on certain key macroeconomic variables used to calculate the modelled estimate for the allowance for credit losses (see page 71 for all key variables). Further changes in these variables up to the date of the financial statements are incorporated through expert credit judgement.

● Gross Domestic Product (GDP): Economic growth is expected to slow down in Canada and the U.S. over 2025-2026 in the base case scenario. While trade tensions are assumed to be lower than in last quarter's base case, they continue to weigh on the outlook, particularly in the U.S. where rising import tariffs and volatile policy changes are expected to dampen growth, albeit to a lesser extent than previously forecast. Real GDP growth in U.S. is expected to decline from an observed 2.8% in 2024 to 1.5% in 2025, and further to 0.9% in 2026. In Canada, economic growth is expected to soften from 1.6% in 2024 to 1.4% in 2025, and to 1.1% in 2026.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; ![](g944686g45a01.jpg)<br>Sources: Scotiabank Economics, Statistics Canada. | &nbsp;&nbsp;&nbsp; ![](g944686g45a02.jpg)<br>Sources: Scotiabank Economics, BEA. |

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38 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

● Unemployment Rate: The base case scenario forecasts a rise in the unemployment rate in both Canada and U.S., but their expected peak levels are lower in this quarter's base case due to reduced trade frictions. In the U.S., the unemployment rate is expected to peak at 4.9% in early 2026, while in Canada, it is projected to peak at 7.3% in Q4 2025. Over the longer term, the unemployment rate is now expected to remain higher than previously forecast in both economies. This reflects weaker economic growth during that period, as there is less need for catch-up following stronger than expected growth earlier in the forecast horizon.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; ![](g944686g45a03.jpg)<br>Sources: Scotiabank Economics, Statistics Canada. | &nbsp;&nbsp;&nbsp; ![](g944686g45a04.jpg)<br>Sources: Scotiabank Economics, BLS. |

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The total allowance for credit losses as at July 31, 2025, was $7,386 million compared to $7,276 million in the prior quarter. The allowance for credit losses ratio was 96 basis points, an increase of one basis point. The allowance for credit losses on loans was $7,197 million, an increase of $113 million compared to last quarter. The increase was related to credit quality migration impacting the commercial portfolios and international retail portfolio growth. Allowances on impaired loans were higher due primarily to higher provisions in International Banking. The impact of foreign currency translation increased the allowance by $51 million.

The allowance for credit losses on performing loans was higher at $4,963 million compared to $4,883 million last quarter. The allowance for performing loans ratio was 67 basis points. The increase was related to credit quality migration impacting the commercial portfolios and International retail portfolio growth. The impact of foreign currency translation increased the allowance by $23 million.

The allowance on impaired loans increased by $33 million to $2,234 million from $2,201 million last quarter. The allowance for impaired loans ratio was 29 basis points, unchanged from prior quarter. The increase was due primarily to higher provisions in International Banking, and the impact of foreign currency translation of $28 million.

Impaired loans

Gross impaired loans increased to $6,890 million as at July 31, 2025, from $6,849 million last quarter. The increase was due primarily to International retail, mainly in Chile and Mexico, and higher formations in the Canadian and International commercial portfolios, as well as the impact of foreign currency translation. The gross impaired loan ratio was 90 basis points, unchanged from last quarter.

Net impaired loans in Canadian Banking were $1,486 million, a decrease of $12 million from last quarter, due primarily to higher repayments, partly offset by formations in the commercial portfolio. Net impaired loans in International Banking were $3,066 million, an increase of $60 million from last quarter, due to higher formations and the impact of foreign currency translation. Net impaired loans in Global Banking and Markets were $41 million, a decrease of $43 million from last quarter, due mainly to the write-off of one corporate account. Net impaired loans in Global Wealth Management were $63 million, an increase of $3 million from last quarter. Net impaired loans as a percentage of loans and acceptances were 0.61%, unchanged from last quarter.

Overview of loan portfolio

The Bank has a well-diversified portfolio by product, business, and geography. Details of certain portfolios of current focus are highlighted below.

Real estate secured lending

A large portion of the Bank's lending portfolio is comprised of residential mortgages and consumer loans, which are well diversified by borrower. As at July 31, 2025, these loans amounted to $486 billion or 63% of the Bank's total loans and acceptances outstanding (April 30, 2025 – $483 billion or 63%). Of these, $384 billion or 79% are real estate secured loans (April 30, 2025 – $383 billion or 79%). The tables below provide more details by portfolio.

Scotiabank Third Quarter Report 2025 39

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MANAGEMENT'S DISCUSSION & ANALYSIS

Insured and uninsured mortgages and home equity lines of credit<sup>(1)</sup>

The following table presents amounts of insured and uninsured residential mortgages and home equity lines of credit (HELOCs), by geographic areas.

T18 Insured and uninsured residential mortgages and HELOCs, by geographic areas

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
|  | Residential mortgages | Residential mortgages | Residential mortgages | Residential mortgages | Residential mortgages | Residential mortgages | Home equity lines of credit | Home equity lines of credit | Home equity lines of credit | Home equity lines of credit | Home equity lines of credit | Home equity lines of credit |
|  | Insured <sup>(2)</sup> | Insured <sup>(2)</sup> | Uninsured | Uninsured | Total | Total | Insured <sup>(2)</sup> | Insured <sup>(2)</sup> | Uninsured | Uninsured | Total | Total |
| ($ millions) | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % |
| Canada:<sup>(3)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |
| Atlantic provinces | $4487 | 1.5% | $7300 | 2.4% | $11787 | 3.9% | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– | –% | $1084 | 4.6% | $1084 | 4.6% |
| Quebec | 7162 | 2.4 | 13193 | 4.3 | 20355 | 6.7 |  |  | 1256 | 5.3 | 1256 | 5.3 |
| Ontario | 28757 | 9.5 | 141313 | 46.2 | 170070 | 55.7 |  |  | 13804 | 58.8 | 13804 | 58.8 |
| Manitoba & Saskatchewan | 4714 | 1.5 | 4634 | 1.5 | 9348 | 3.0 |  |  | 574 | 2.4 | 574 | 2.4 |
| Alberta | 14197 | 4.6 | 17794 | 5.9 | 31991 | 10.5 |  |  | 2268 | 9.7 | 2268 | 9.7 |
| British Columbia & Territories | 9921 | 3.2 | 52115 | 17.0 | 62036 | 20.2 |  |  | 4498 | 19.2 | 4498 | 19.2 |
| Canada<sup>(4)(5)</sup> | $69238 | 22.7% | $236349 | 77.3% | $305587 | 100% | $– | –% | $23484 | 100% | $23484 | 100% |
| International |  |  | 55350 | 100 | 55350 | 100 |  |  |  |  |  |  |
| Total | $69238 | 19.2% | $291699 | 80.8% | $360937 | 100% | $– | –% | $23484 | 100% | $23484 | 100% |
|  | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 |
| Canada<sup>(4)(5)</sup> | $69996 | 23.0% | $235392 | 77.0% | $305388 | 100% | $– | –% | $23301 | 100% | $23301 | 100% |
| International |  |  | 54404 | 100 | 54404 | 100 |  |  |  |  |  |  |
| Total | $69996 | 19.5% | $289796 | 80.5% | $359792 | 100% | $– | –% | $23301 | 100% | $23301 | 100% |
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Canada<sup>(4)(5)</sup> | $71696 | 24.1% | $225981 | 75.9% | $297677 | 100% | $– | –% | $23297 | 100% | $23297 | 100% |
| International |  |  | 53264 | 100 | 53264 | 100 |  |  |  |  |  |  |
| Total | $71696 | 20.4% | $279245 | 79.6% | $350941 | 100% | $– | –% | $23297 | 100% | $23297 | 100% |

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(1) The measures in this section have been disclosed in this document as required by OSFI Guideline – B20 – Residential Mortgage Underwriting Practices and Procedures (January 2018).

(2) Default insurance is contractual coverage for the life of eligible facilities whereby the Bank's exposure to real estate secured lending is protected against potential shortfalls caused by borrower default. This insurance is provided by either government-backed entities or private mortgage insurers.

(3) The province represents the location of the property in Canada.

(4) Includes multi-residential dwellings (4+ units) of $3,176 (April 30, 2025 - $3,228; October 31, 2024 – $3,796) of which $2,514 are insured (April 30, 2025 – $2,548; October 31, 2024 – $3,024).

(5) Variable rate mortgages account for 34% (April 30, 2025 – 33%; October 31, 2024 – 30%) of the Bank's total Canadian residential mortgage portfolio.

Amortization period ranges for residential mortgages<sup>(1)</sup>

The following table presents the distribution of residential mortgages by remaining amortization periods, and by geographic areas.

T19 Distribution of residential mortgages by amortization periods, and by geographic areas

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
|  | Residential mortgages by amortization period | Residential mortgages by amortization period | Residential mortgages by amortization period | Residential mortgages by amortization period | Residential mortgages by amortization period | Residential mortgages by amortization period |
|  | Less than<br>20 years | 20-24<br>years | 25-29<br>years | 30-34<br>years | 35 years<br>and<br>greater | Total<br>residential<br>mortgages |
| Canada | 34.2% | 34.0% | 30.4% | 0.8% | 0.6% | 100% |
| International | 65.3% | 18.1% | 15.3% | 1.3% | 0.0% | 100% |
|  | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 |
| Canada | 34.8% | 34.2% | 29.8% | 0.7% | 0.5% | 100% |
| International | 65.6% | 18.2% | 15.3% | 0.9% | 0.0% | 100% |
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Canada | 36.1% | 34.9% | 27.7% | 0.9% | 0.4% | 100% |
| International | 64.5% | 17.9% | 16.6% | 1.0% | 0.0% | 100% |

---

(1) The measures in this section have been disclosed in this document as required by OSFI Guideline – B20 – Residential Mortgage Underwriting Practices and Procedures (January 2018).

Loan to value ratios<sup>(1)</sup>

The Canadian residential mortgage portfolio is 77% uninsured (April 30, 2025 – 77%; October 31, 2024 – 76%). The average loan-to-value (LTV) ratio of the uninsured portfolio is 52% (April 30, 2025 – 52%; October 31, 2024 – 51%).

40 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

The following table presents the weighted average LTV ratio for total newly-originated uninsured residential mortgages and home equity lines of credit, which include mortgages for purchases, refinances with a request for additional funds and transfers from other financial institutions, by geographic areas in the current quarter.

T20 Loan to value ratios

---

| | | |
|:---|:---|:---|
|  | Uninsured LTV ratios | Uninsured LTV ratios |
|  | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 |
|  | Residential<br>mortgages | Home equity lines of<br>credit <sup>(2)</sup> |
|  | LTV% | LTV% |
| Canada:<sup>(3)</sup> |  |  |
| Atlantic provinces | 59.4% | 64.2% |
| Quebec | 61.3 | 66.0 |
| Ontario | 60.1 | 62.9 |
| Manitoba & Saskatchewan | 65.3 | 64.8 |
| Alberta | 63.6 | 66.7 |
| British Columbia & Territories | 60.6 | 61.7 |
| Canada | 60.8% | 63.3% |
| International | 71.1% | n/a |
|  | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 |
| Canada | 61.2% | 62.8% |
| International | 70.6% | n/a |
|  | For the three months ended October 31, 2024 | For the three months ended October 31, 2024 |
| Canada | 61.5% | 62.5% |
| International | 70.4% | n/a |

---

(1) The measures in this section have been disclosed in this document as required by OSFI Guideline – B20 – Residential Mortgage Underwriting Practices and Procedures (January 2018).

(2) Includes all home equity lines of credit (HELOC). For Scotia Total Equity Plan HELOCs, LTV is calculated based on the sum of residential mortgages and the authorized limit for related HELOCs, divided by the value of the related residential property, and presented on a weighted average basis for newly originated mortgages and HELOCs.

(3) The province represents the location of the property in Canada.

Potential impact on residential mortgages and real estate home equity lines of credit in the event of an economic downturn

As part of its stress testing program, the Bank analyzes the impact of various combinations of home price declines and unemployment increases on the Bank's residential mortgage portfolios. Those results continue to show that credit losses and impacts on capital ratios are within a level the Bank considers manageable. In addition, the Bank has undertaken extensive enterprise-wide scenario analyses to assess the impact to the enterprise under different scenarios and is confident that it has the financial resources to withstand even a very negative outlook.

Commercial real estate exposures

The Bank's commercial real estate portfolio was $62.6 billion (April 30, 2025 – $62.3 billion; October 31, 2024 – $66.0 billion), or 8.1% (April 30, 2025 – 8.2%; October 31, 2024 –8.6%) of the Bank's total loans outstanding as at July 31, 2025. This portfolio is comprised of 73% of loans to the residential and industrial sector (April 30, 2025 – 72%; October 31, 2024 –73%). Headwinds faced by the industry continue, however show signs of modest stabilization. Total exposure to the Office subsector (entities engaged in the construction, development, or ownership of office properties as a business) represents approximately 8% (April 30, 2025 – 9%; October 31, 2024 – 9%) of the commercial real estate portfolio, of which approximately 57% (April 30, 2025 – 57%; October 31, 2024 – 60%) are investment grade facilities. U.S. office exposure represents approximately 0.4% (April 30, 2025 – 0.4%; October 31, 2024 – 0.4%) of the portfolio.

Loans to Canadian condominium developers

The Bank had loans outstanding to Canadian condominium developers of $3,545 million as at July 31, 2025 (April 30, 2025 – $3,518 million; October 31, 2024 – $3,238 million). This represents approximately 6% of the commercial real estate portfolio (April 30, 2025 – 6%; October 31, 2024 – 5%), of which approximately 76% are investment grade facilities (April 30, 2025 – 78%; October 31, 2024 – 72%). Downside risk is partially mitigated by primary focus on well capitalized and experienced developers who have long-term relationships with the Bank.

Regional non-retail exposures

The Bank's exposures outside Canada and the U.S. are diversified by region and product and are sized appropriately relative to the creditworthiness of the counterparties (58% of the exposures are to investment grade counterparties based on a combination of internal and external ratings). The Bank's exposures are carried at amortized cost or fair value using observable inputs, with negligible amounts valued using models with unobservable inputs (Level 3). There were no significant events during the quarter that materially impacted the Bank's exposures.

The Bank's exposure to sovereigns was $55.3 billion as at July 31, 2025 (April 30, 2025 – $55.9 billion; October 31, 2024 – $58.9 billion), $13 billion to banks (April 30, 2025 – $14.8 billion; October 31, 2024 – $15.5 billion), and $102.4 billion to corporates (April 30, 2025 – $103.0 billion; October 31, 2024 – $111.0 billion).

In addition to the exposures detailed in the table below, the Bank had indirect exposures consisting of securities exposures to non-European entities whose parent company is domiciled in Europe of $0.01 billion as at July 31, 2025 (April 30, 2025 – $0.06 billion; October 31, 2024 – $0.09 billion).

Scotiabank Third Quarter Report 2025 41

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MANAGEMENT'S DISCUSSION & ANALYSIS

The Bank's regional credit exposures are distributed as follows:

T21 Bank's regional credit exposures distribution

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at | As at | As at | As at | As at | As at | As at | | |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | April 30<br>2025 | October 31<br>2024 |
| ($ millions) | Loans and<br>loan<br>equivalents<sup>(1)</sup> | Deposits<br>with<br>financial<br>institutions | Securities<sup>(2)</sup> | SFT and<br>derivatives<sup>(3)</sup> | Funded<br>total | Undrawn<br>commitments<sup>(4)</sup> | Total | Total | Total |
| Latin America<sup>(5)</sup> | $76065 | $11990 | $17988 | $1426 | $107469 | $10398 | $117867 | $118812 | $125228 |
| Caribbean and Central America | 12497 | 4001 | 4723 | 60 | 21281 | 3244 | 24525 | 25437 | 24521 |
| Europe, excluding U.K. | 7198 | 4012 | 4501 | 2325 | 18036 | 10519 | 28555 | 26648 | 25083 |
| U.K. | 6501 | 1296 | 722 | 1153 | 9672 | 5921 | 15593 | 17126 | 18192 |
| Asia | 6897 | 736 | 5935 | 274 | 13842 | 7693 | 21535 | 24005 | 29458 |
| Other<sup>(6)</sup> | 360 | 3 | 42 | 1 | 406 | 308 | 714 | 687 | 778 |
| Total | $109518 | $22038 | $33911 | $5239 | $170706 | $38083 | $208789 | $212715 | $223260 |

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(1) Allowances for credit losses are $602. Letters of credit and guarantees are included as funded exposure as they have been issued. Included in loans and loans equivalent are letters of credit and guarantees which total $14,394 as at July 31, 2025 (April 30, 2025 – $14,272; October 31, 2024 – $14,446).

(2) Exposures for securities are calculated taking into account derivative positions where the security is the underlying reference asset and short trading positions, with net short positions in brackets.

(3) SFT comprise of securities purchased under resale agreements, obligations related to securities sold under repurchase agreements and securities lending and borrowing transactions. Gross and net funded exposures represent all net positive positions after taking into account collateral. Collateral held against derivatives was $9,003 and collateral held against SFT was $128,275.

(4) Undrawn commitments represent an estimate of the contractual amount that may be drawn upon by the obligor and include commitments to issue letters of credit on behalf of other banks in a syndicated bank lending arrangement.

(5) Includes Mexico, Chile, Peru, Colombia, Brazil, Uruguay, Venezuela, Ecuador and Argentina.

(6) Includes Middle East and Africa.

Market risk

Value at Risk (VaR) is a key measure of market risk in the Bank's trading activities. The table below shows the Bank's VaR by risk factor:

T22 Market Risk Measures

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 |  | April 30, 2025 | April 30, 2025 | July 31, 2024 | July 31, 2024 |
| Risk factor ($ millions) | As at | Average | High |  | Low |  | As at | Average | As at | Average |
| Credit spread plus interest rate | $13.5 | $14.3 | $17.5 |  | $12.2 |  | $14.3 | $14.2 | $9.8 | $12.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit spread<sup>(1)</sup> | 9.0 | 11.1 | 14.0 |  | 8.2 |  | 12.0 | 12.4 | 6.1 | 7.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 10.2 | 11.2 | 15.6 |  | 8.5 |  | 8.6 | 12.8 | 7.3 | 13.7 |
| Equities | 4.6 | 4.1 | 8.4 |  | 2.5 |  | 8.2 | 6.1 | 5.1 | 4.6 |
| Foreign exchange | 2.8 | 2.8 | 5.7 |  | 1.1 |  | 1.4 | 2.0 | 2.4 | 2.1 |
| Commodities | 4.1 | 3.4 | 4.9 |  | 2.3 |  | 2.5 | 2.8 | 3.8 | 2.1 |
| Debt specific<sup>(1)</sup> | n/a | n/a | n/a |  | n/a |  | n/a | n/a | 3.1 | 3.0 |
| Diversification effect | (12.9) | (11.5) | nm | (2) | nm | (2) | (14.3) | (11.0) | (15.1) | (10.6) |
| Total VaR | $12.1 | $13.1 | $18.3 |  | $9.7 |  | $12.1 | $14.1 | $9.1 | $13.9 |

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(1) Effective November 1, 2024, credit spread VaR also captures issuer-specific credit spread volatility which was previously included in debt specific VaR.

(2) Not meaningful.

In the third quarter of 2025, the average one-day Total VaR decreased primarily due to lower interest rate risk and equity risk.

There were no trading loss days this quarter. The quality and accuracy of the VaR models is validated by back-testing, which compares daily actual and theoretical profit and loss with the daily output of the VaR model.

Interest rate risk

Interest rate risk is the risk of loss due to the following: changes in the level, slope and curvature of the yield curve; the volatility of interest rates and changes in customer preferences (e.g. mortgage prepayment rates).

Non-trading interest rate sensitivity

The following table shows the pro-forma pre-tax impact on the Bank's net interest income over the next twelve months and economic value of equity of an immediate and sustained 100 basis points increase and decrease in interest rate across major currencies as defined by the Bank. These calculations are based on models that consider a number of inputs, are on a constant balance sheet and make no assumptions for management actions to mitigate the risk.

42 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

T23 Structural interest sensitivity

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | April 30, 2025 | April 30, 2025 | July 31, 2024 | July 31, 2024 |
|  | Net interest income | Net interest income | Net interest income | Economic value of equity | Economic value of equity | Economic value of equity | | | | |
| ($ millions) | Canadian<br>dollar | Other<br>currencies | Total | Canadian<br>dollar | Other<br>currencies | Total | Net<br>interest<br>income | Economic<br>value of<br>equity | Net<br>interest<br>income | Economic<br>value of<br>equity |
| **+100 bps** | $207 | $(70) | $137 | $(603) | $(956) | $(1559) | $174 | $(1299) | $(54) | $(1427) |
| **-100 bps** | (192) | 45 | (147) | 489 | 705 | 1194 | (225) | 820 |  | 910 |

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During the third quarter of 2025, both interest rate sensitivities remained within the Bank's approved consolidated limits.

The Board approves the risk appetite for structural interest rate risk, and the Asset Liability Committee (ALCO) and Global Risk Management (GRM) provide ongoing governance through structural interest rate risk policies, limits and operating frameworks. Structural interest rate risk reports are reviewed regularly by GRM, ALCO, and the Board.

The Bank supplements the immediate rate change impact analysis described above with more sophisticated analyses and tools for actual risk management purposes.

Market risk linkage to Consolidated Statement of Financial Position

Trading assets and liabilities are marked to market daily and included in trading risk measures such as VaR. Derivatives captured under trading risk measures are related to the activities of Global Banking and Markets, while derivatives captured under non-trading risk measures comprise those used in asset/liability management and designated in a hedge relationship. A comparison of Consolidated Statement of Financial Position items which are covered under the trading and non-trading risk measures is provided in the table below.

T24 Market risk linkage to Consolidated Statement of Financial Position of the Bank

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at July 31, 2025 | Market risk measure | Market risk measure | Market risk measure | Market risk measure | Market risk measure |
| ($ millions) | Consolidated<br>Statement of<br>Financial Position | Trading<br>risk | Non-trading<br>risk | Not subject to<br>market risk | Primary risk sensitivity of<br>non-trading risk |
| Precious metals | $5832 | $5832 | $– | $– | n/a |
| Trading assets | 136485 | 135553 | 932 |  | Interest rate, FX |
| Derivative financial instruments | 43801 | 39986 | 3815 |  | Interest rate, FX, equity |
| Investment securities | 149151 |  | 149151 |  | Interest rate, FX, equity |
| Loans | 761560 |  | 761560 |  | Interest rate, FX |
| Assets – other<sup>(1)</sup> | 317857 | 428 |  | 317429 | n/a |
| Total assets | $1414686 | $181799 | $915458 | $317429 |  |
| Deposits | $946842 | $– | $901902 | $44940 | Interest rate, FX, equity |
| Financial instruments designated at fair value through profit or loss | 43536 | 43536 |  |  | Interest rate, equity |
| Obligations related to securities sold short | 34675 | 34675 |  |  | n/a |
| Derivative financial instruments | 52916 | 48355 | 4561 |  | Interest rate, FX, equity |
| Trading liabilities<sup>(2)</sup> | 614 | 614 |  |  | n/a |
| Pension and other benefit liabilities | 1552 |  | 1552 |  | Interest rate, credit spread, equity |
| Liabilities – other<sup>(3)</sup> | 249068 | 272 |  | 248796 | n/a |
| Total liabilities | $1329203 | $127452 | $908015 | $293736 |  |

---

(1) Includes goodwill, intangibles, other assets and securities purchased under resale agreements and securities borrowed.

(2) Gold and silver certificates and bullion included in other liabilities.

(3) Includes obligations related to securities sold under repurchase agreements and securities lent and other liabilities.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at October 31, 2024 | Market risk measure | Market risk measure | Market risk measure | Market risk measure | Market risk measure |
| ($ millions) | Consolidated<br>Statement of<br>Financial Position | Trading<br>risk | Non-trading<br>risk | Not subject to<br>market risk | Primary risk sensitivity of<br>non-trading risk |
| Precious metals | $2540 | $2540 | $– | $– | n/a |
| Trading assets | 129727 | 129032 | 695 |  | Interest rate, FX |
| Derivative financial instruments | 44379 | 39736 | 4643 |  | Interest rate, FX, equity |
| Investment securities | 152832 |  | 152832 |  | Interest rate, FX, equity |
| Loans | 760829 |  | 760829 |  | Interest rate, FX |
| Assets – other<sup>(1)</sup> | 321720 | 448 |  | 321272 | n/a |
| Total assets | $1412027 | $171756 | $918999 | $321272 |  |
| Deposits | $943849 | $– | $901328 | $42521 | Interest rate, FX, equity |
| Financial instruments designated at fair value through profit or loss | 36341 | 36341 |  |  | Interest rate, equity |
| Obligations related to securities sold short | 35042 | 35042 |  |  | n/a |
| Derivative financial instruments | 51260 | 45652 | 5608 |  | Interest rate, FX, equity |
| Trading liabilities<sup>(2)</sup> | 578 | 578 |  |  | n/a |
| Pension and other benefit liabilities | 1587 |  | 1587 |  | Interest rate, credit spread, equity |
| Liabilities – other<sup>(3)</sup> | 259294 | 275 |  | 259019 | n/a |
| Total liabilities | $1327951 | $117888 | $908523 | $301540 |  |

---

(1) Includes goodwill, intangibles, other assets and securities purchased under resale agreements and securities borrowed.

(2) Gold and silver certificates and bullion included in other liabilities.

(3) Includes obligations related to securities sold under repurchase agreements and securities lent and other liabilities.

Scotiabank Third Quarter Report 2025 43

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MANAGEMENT'S DISCUSSION & ANALYSIS

Liquidity risk

Effective liquidity risk management is essential to maintain the confidence of depositors and counterparties, manage the Bank's cost of funds and to support core business activities, even under adverse circumstances.

Liquidity risk is managed within a framework of policies and limits that are approved by the Board of Directors, as outlined in Note 19 to the Condensed Interim Consolidated Financial Statements and in Note 36 to the Consolidated Financial Statements in the Bank's 2024 Annual Report.

Liquid assets are a key component of this framework. The determination of the appropriate levels for liquid asset portfolios is based on the amount of liquidity the Bank might need to fund expected cash flows in the normal course of business, as well as what might be required in periods of stress to meet cash outflows. Stress events include periods when there are disruptions in the capital markets or events which may impair the Bank's access to funding markets or liquidity. The Bank uses stress testing to assess the impact of stress events and to assess the amount of liquid assets that would be required in various stress scenarios.

Liquid assets

Liquid assets are a key component of liquidity management and the Bank holds these types of assets in sufficient quantity to meet potential needs.

Liquid assets can be used to generate cash either through sale, repurchase transactions or other transactions where these assets can be used as collateral to generate cash, or by allowing the asset to mature. Liquid assets include unrestricted deposits with central banks, deposits with financial institutions, marketable securities, precious metals and securities received as collateral from securities financing and derivative transactions.

Marketable securities are securities traded in active markets, which can be converted to cash within a timeframe that is in accordance with the Bank's liquidity management framework. Assets are assessed considering a number of factors, including the expected time it would take to convert them to cash.

Marketable securities included in liquid assets are comprised of securities specifically held as a liquidity buffer or for asset/liability management purposes, trading securities primarily held by Global Banking and Markets, and collateral received from securities financing and derivative transactions.

The Bank maintains large holdings of unencumbered liquid assets to support its operations. These assets generally can be sold or pledged to meet the Bank's obligations. As at July 31, 2025 unencumbered liquid assets were $321 billion (October 31, 2024 – $310 billion). Securities, including National Housing Act (NHA) mortgage-backed securities, comprised 79% of liquid assets (October 31, 2024 – 81%). Other unencumbered liquid assets, comprising cash and deposits with central banks, deposits with financial institutions and precious metals, were 21% (October 31, 2024 – 19%). The increase in total unencumbered liquid assets was attributable to an increase in cash and deposits with central banks, other liquid securities, precious metals, NHA mortgage backed securities and foreign government obligations, partly offset by a decrease in Canada government obligations and deposits with financial institutions.

The carrying values outlined in the liquid asset table are consistent with the carrying values in the Bank's Consolidated Statement of Financial Position as at July 31, 2025. The liquidity value of the portfolio will vary under different stress events as different assumptions are used for the stress scenarios.

The Bank's liquid asset pool is summarized in the following table:

T25 Liquid asset pool

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
|  | Bank-owned<br>liquid assets | **Securities received as<br>collateral from**<br>**securities financing<br>and derivative<br>transactions** | Total liquid<br>assets | Encumbered<br>liquid assets | Encumbered<br>liquid assets | Unencumbered<br>liquid assets | Unencumbered<br>liquid assets |
| ($ millions) | Bank-owned<br>liquid assets | **Securities received as<br>collateral from**<br>**securities financing<br>and derivative<br>transactions** | Total liquid<br>assets | Pledged as<br>collateral | Other<sup>(1)</sup> | Available as<br>collateral | Other |
| Cash and deposits with central banks | $62943 | $– | $62943 | $– | $6886 | $56057 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– |
| Deposits with financial institutions | 6758 |  | 6758 |  | 56 | 6702 |  |
| Precious metals | 5832 |  | 5832 |  |  | 5832 |  |
| Securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canadian government obligations | 78040 | 21761 | 99801 | 42371 |  | 57430 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 118090 | 110702 | 228792 | 103783 |  | 125009 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities | 73687 | 127054 | 200741 | 161577 |  | 39164 |  |
| NHA mortgage-backed securities | 37874 |  | 37874 | 6908 |  | 30966 |  |
| Total | $383224 | $259517 | $642741 | $314639 | $6942 | $321160 | $– |
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
|  | Bank-owned<br>liquid assets | Securities received as<br>collateral from<br>securities financing<br>and derivative<br>transactions | Total liquid<br>assets | Encumbered<br>liquid assets | Encumbered<br>liquid assets | Unencumbered<br>liquid assets | Unencumbered<br>liquid assets |
| ($ millions) | Bank-owned<br>liquid assets | Securities received as<br>collateral from<br>securities financing<br>and derivative<br>transactions | Total liquid<br>assets | Pledged as<br>collateral | Other<sup>(1)</sup> | Available as<br>collateral | Other |
| Cash and deposits with central banks | $55976 | $– | $55976 | $– | $5991 | $49985 | $– |
| Deposits with financial institutions | 7884 |  | 7884 |  | 82 | 7802 |  |
| Precious metals | 2540 |  | 2540 |  |  | 2540 |  |
| Securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canadian government obligations | 71915 | 26062 | 97977 | 34572 |  | 63405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 121072 | 129991 | 251063 | 126371 |  | 124692 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities | 75223 | 101262 | 176485 | 143862 |  | 32623 |  |
| NHA mortgage-backed securities | 35546 |  | 35546 | 6584 |  | 28962 |  |
| Total | $370156 | $257315 | $627471 | $311389 | $6073 | $310009 | $– |

---

(1) Assets which are restricted from being used to secure funding for legal or other reasons.

44 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

A summary of total unencumbered liquid assets held by the parent bank and its branches, and domestic and foreign subsidiaries, is presented below:

T26 Total unencumbered liquid assets held by the parent bank and its branches, and domestic and foreign subsidiaries

---

| | | |
|:---|:---|:---|
|  | As at | As at |
| ($ millions) | July 31<br>2025 | October 31<br>2024 |
| The Bank of Nova Scotia (Parent) | $248557 | $235378 |
| Bank domestic subsidiaries | 23524 | 32769 |
| Bank foreign subsidiaries | 49079 | 41862 |
| Total | $321160 | $310009 |

---

The Bank's liquidity pool is held across major currencies, mostly comprised of Canadian and U.S. dollar holdings. As shown above, the vast majority (85%) of liquid assets are held by the Bank's corporate office, branches of the Bank, and Canadian subsidiaries of the Bank. The Bank monitors and ensures compliance in relation to minimum levels of liquidity required and assets held within each entity, and/or jurisdiction. Potential regulatory restrictions on the transferability of liquid assets held in Bank foreign subsidiaries are taken into consideration in the Bank's liquidity management framework.

Encumbered assets

In the course of the Bank's day-to-day activities, securities and other assets are pledged to secure an obligation, participate in clearing or settlement systems, or operate in a foreign jurisdiction. Securities are also pledged under repurchase agreements. A summary of encumbered and unencumbered assets is presented below:

T27 Asset encumbrance

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
|  | Bank-owned<br>assets | Securities received as<br>collateral from<br>securities financing and<br>derivative transactions | Total assets | Encumbered assets | Encumbered assets | Unencumbered assets | Unencumbered assets |
| ($ millions) | Bank-owned<br>assets | Securities received as<br>collateral from<br>securities financing and<br>derivative transactions | Total assets | **Pledged as**<br>**collateral** | Other<sup>(1)</sup> | Available as<br>collateral<sup>(2)</sup> | Other<sup>(3)</sup> |
| Cash and deposits with central banks | $62943 | $– | $62943 | $– | $6886 | $56057 | $– |
| Deposits with financial institutions | 6758 |  | 6758 |  | 56 | 6702 |  |
| Precious metals | 5832 |  | 5832 |  |  | 5832 |  |
| Liquid securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canadian government obligations | 78040 | 21761 | 99801 | 42371 |  | 57430 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 118090 | 110702 | 228792 | 103783 |  | 125009 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liquid securities | 73687 | 127054 | 200741 | 161577 |  | 39164 |  |
| Other securities | 4776 | 18431 | 23207 | 13209 |  |  | 9998 |
| Loans classified as liquid assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NHA mortgage-backed securities | 37874 |  | 37874 | 6908 |  | 30966 |  |
| Other loans | 731782 |  | 731782 | 10705 | 75277 | 20872 | 624928 |
| Other financial assets<sup>(4)</sup> | 238269 | (165604) | 72665 | 15356 |  |  | 57309 |
| Non-financial assets | 56635 |  | 56635 |  |  |  | 56635 |
| Total | $1414686 | $112344 | $1527030 | $353909 | $82219 | $342032 | $748870 |
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
|  | Bank-owned<br>assets | Securities received as<br>collateral from<br>securities financing and<br>derivative transactions | Total assets | Encumbered assets | Encumbered assets | Unencumbered assets | Unencumbered assets |
| ($ millions) | Bank-owned<br>assets | Securities received as<br>collateral from<br>securities financing and<br>derivative transactions | Total assets | Pledged as<br>collateral | Other<sup>(1)</sup> | Available as<br>collateral<sup>(2)</sup> | Other<sup>(3)</sup> |
| Cash and deposits with central banks | $55976 | $– | $55976 | $– | $5991 | $49985 | $– |
| Deposits with financial institutions | 7884 |  | 7884 |  | 82 | 7802 |  |
| Precious metals | 2540 |  | 2540 |  |  | 2540 |  |
| Liquid securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canadian government obligations | 71915 | 26062 | 97977 | 34572 |  | 63405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 121072 | 129991 | 251063 | 126371 |  | 124692 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liquid securities | 75223 | 101262 | 176485 | 143862 |  | 32623 |  |
| Other securities | 4534 | 10677 | 15211 | 4415 |  |  | 10796 |
| Loans classified as liquid assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NHA mortgage-backed securities | 35546 |  | 35546 | 6584 |  | 28962 |  |
| Other loans | 732932 |  | 732932 | 6642 | 79812 | 17173 | 629305 |
| Other financial assets<sup>(4)</sup> | 249058 | (193018) | 56040 | 13148 |  |  | 42892 |
| Non-financial assets | 55347 |  | 55347 |  |  |  | 55347 |
| Total | $1412027 | $74974 | $1487001 | $335594 | $85885 | $327182 | $738340 |

---

(1) Assets which are restricted from being used to secure funding for legal or other reasons.

(2) Assets that are readily available in the normal course of business to secure funding or meet collateral needs including central bank borrowing immediately available.

(3) Other unencumbered assets are not subject to any restrictions on their use to secure funding or as collateral but the Bank would not consider them to be readily available. These include loans, a portion of which may be used to access central bank facilities outside of the normal course or to raise secured funding through the Bank's secured funding programs.

(4) Securities received as collateral against other financial assets are included within liquid securities and other securities.

Scotiabank Third Quarter Report 2025 45

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MANAGEMENT'S DISCUSSION & ANALYSIS

As at July 31, 2025 total encumbered assets of the Bank were $436 billion (October 31, 2024 – $421 billion). Of the remaining $1,091 billion (October 31, 2024 – $1,066 billion) of unencumbered assets, $342 billion (October 31, 2024 – $327 billion) are considered readily available in the normal course of business to secure funding or meet collateral needs as detailed above.

In some over-the-counter derivative contracts, the Bank would be required to post additional collateral or receive less collateral in the event its credit rating was downgraded. The Bank maintains access to sufficient collateral to meet these obligations in the event of a downgrade of its ratings by one or more of the rating agencies. As at July 31, 2025 the potential adverse impact on derivatives collateral that would result from a one, two or three-notch downgrade of the Bank's rating below its lowest current rating was $37 million, $1,071 million or $1,912 million, respectively.

Encumbered liquid assets are not considered to be available for liquidity management purposes. Liquid assets which are used to hedge derivative positions in trading books or for hedging purposes are considered to be available for liquidity management provided they meet the criteria discussed in liquid assets above.

Credit ratings

Credit ratings are one of the factors that impact the Bank's access to capital markets and the terms on which it can conduct derivatives, hedging transactions and borrow funds. The credit ratings and outlook that the rating agencies assign to the Bank are based on their own views and methodologies.

The Bank continues to have strong credit ratings and its deposits and legacy senior debt are rated AA by Fitch, Aa2 by Moody's, AA by Morningstar DBRS and A+ by Standard and Poor's (S&P). The Bank's bail-inable senior debt is rated AA- by Fitch, A2 by Moody's, AA (low) by Morningstar DBRS, and A- by S&P. As of July 31, 2025, all rating agencies have a Stable outlook on the Bank. There were no changes made to the Bank's credit ratings or outlooks during the quarter.

Liquidity coverage ratio

The Liquidity Coverage Ratio (LCR) measure is based on a 30-day liquidity stress scenario, with assumptions defined in the Liquidity Adequacy Requirements (LAR) Guideline issued by the Office of the Superintendent of Financial Institutions (OSFI). The LCR is calculated as the ratio of high quality liquid assets (HQLA) to net cash outflows. The Bank is subject to a regulatory minimum LCR of 100%.

HQLA are defined in the LAR Guideline and are grouped into three main categories with varying haircuts applied to arrive at the amount included in the total weighted value in the table that follows.

The total weighted values for net cash outflows for the next 30 days are derived by applying the assumptions specified in the LAR Guideline to specific items, including loans, deposits, maturing debt, derivative transactions and commitments to extend credit.

46 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

The following table presents the Bank's LCR for the quarter ended July 31, 2025, based on the average daily positions in the quarter:

T28 Bank's average LCR<sup>(1)</sup>

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| | | |
|:---|:---|:---|
| For the quarter ended July 31, 2025 ($ millions)<sup>(2)</sup> | Total<br>unweighted<br>Value<br>(Average)<sup>(3)</sup> | Total<br>weighted<br>Value<br>(Average)<sup>(4)</sup> |
| **High-quality liquid assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total high-quality liquid assets (HQLA) | \* | $262449 |
| **Cash outflows** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail deposits and deposits from small business customers, of which: | $262653 | $27952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stable deposits | 106518 | 3446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less stable deposits | 156135 | 24506 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unsecured wholesale funding, of which: | 283574 | 118964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operational deposits (all counterparties) and deposits in networks of cooperative banks | 110141 | 26523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-operational deposits (all counterparties) | 162721 | 81729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured debt | 10712 | 10712 |
| &nbsp;&nbsp;&nbsp;&nbsp;Secured wholesale funding | \* | 85795 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional requirements, of which: | 259423 | 57901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outflows related to derivative exposures and other collateral requirements | 45108 | 24040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outflows related to loss of funding on debt products | 5076 | 5076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit and liquidity facilities | 209239 | 28785 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other contractual funding obligations | 2111 | 2047 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other contingent funding obligations<sup>(5)</sup> | 614697 | 8730 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash outflows | \* | $301389 |
| **Cash inflows** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Secured lending (e.g. reverse repos) | $325676 | $45271 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows from fully performing exposures | 37865 | 22287 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other cash inflows | 25161 | 25161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash inflows | $388702 | $92719 |
|  |  | Total<br>adjusted<br>value <sup>(6)</sup> |
| **Total HQLA** | \* | $262449 |
| **Total net cash outflows** | \* | $208670 |
| **Liquidity coverage ratio (%)** | \* | 126% |
| For the quarter ended April 30, 2025 ($ millions) |  | Total<br>adjusted<br>value<sup>(6)</sup> |
| Total HQLA | \* | $275824 |
| Total net cash outflows | \* | $209768 |
| Liquidity coverage ratio (%) | \* | 131% |

---

\* Disclosure is not required under regulatory guideline.

(1) The LCR is calculated in accordance with OSFI's LAR Guideline (April 2025).

(2) Based on the average of daily positions of the 64 business days in the quarter.

(3) Unweighted values represent outstanding balances maturing or callable within the next 30 days.

(4) Weighted values represent balances calculated after the application of HQLA haircuts or inflow and outflow rates, as prescribed by the OSFI LAR Guideline.

(5) Total unweighted value includes uncommitted credit and liquidity facilities, guarantees and letters of credit, outstanding debt securities with remaining maturity greater than 30 days, and other contractual cash outflows.

(6) Total adjusted value represents balances calculated after the application of both haircuts and inflow and outflow rates and any applicable caps.

HQLA is substantially comprised of Level 1 assets (as defined in the LAR Guideline), such as cash, deposits with central banks available to the Bank in times of stress, and highly rated securities issued or guaranteed by governments, central banks and supranational entities.

The decrease in the Bank's average LCR for the quarter ended July 31, 2025 versus the average of the previous quarter was mainly attributable to lower HQLA held during the quarter, mainly attributable to lower deposits with central banks. Net cash outflows were minimally changed as higher secured funding outflows were largely offset by higher secured lending inflows and inflows from fully performing exposures. The Bank monitors its significant currency exposures, Canadian and U.S. dollars, in accordance with its liquidity risk management framework and risk appetite.

Net stable funding ratio

The Net Stable Funding Ratio (NSFR) requires institutions to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet exposures. It is calculated as the ratio of available stable funding (ASF) to required stable funding (RSF), with assumptions defined in the OSFI LAR Guideline. The Bank is subject to a regulatory minimum NSFR of 100%.

ASF is defined as the portion of capital and liabilities expected to be reliable over the time horizons considered by the NSFR. RSF is a function of the liquidity characteristics and residual maturities of the various assets held by the Bank as well as those of its off-balance sheet exposures.

The total weighted values for ASF and RSF included in the table that follows are derived by applying the assumptions specified in the LAR Guideline to balance sheet items, including capital instruments, wholesale funding, deposits, loans and mortgages, securities, derivatives and commitments to extend credit.

Scotiabank Third Quarter Report 2025 47

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MANAGEMENT'S DISCUSSION & ANALYSIS

The following table presents the Bank's NSFR as at July 31, 2025:

T29 Bank's NSFR<sup>(1)</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Unweighted Value by Residual Maturity | Unweighted Value by Residual Maturity | Unweighted Value by Residual Maturity | Unweighted Value by Residual Maturity | Weighted<br>Value<sup>(3)</sup> |
| As at July 31, 2025 ($ millions) | No maturity<sup>(2)</sup> | < 6 months | 6-12 months | ≥<br> 1 year | Weighted<br>Value<sup>(3)</sup> |
| **Available Stable Funding (ASF) Item** | **Available Stable Funding (ASF) Item** | **Available Stable Funding (ASF) Item** | **Available Stable Funding (ASF) Item** | **Available Stable Funding (ASF) Item** | **Available Stable Funding (ASF) Item** |
| Capital: | $92135 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– | $92135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory capital | 92135 |  |  |  | 92135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other capital instruments |  |  |  |  |  |
| Retail deposits and deposits from small business customers: | 231504 | 79349 | 35937 | 52469 | 362509 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stable deposits | 94904 | 32320 | 13438 | 15496 | 149125 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less stable deposits | 136600 | 47029 | 22499 | 36973 | 213384 |
| Wholesale funding: | 208174 | 340966 | 58599 | 127699 | 318417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operational deposits | 108670 |  |  |  | 54335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other wholesale funding | 99504 | 340966 | 58599 | 127699 | 264082 |
| Liabilities with matching interdependent assets<sup>(4)</sup> |  | 1703 | 814 | 13038 |  |
| Other liabilities: | 28568 | 125207 | 125207 | 125207 | 22443 |
| &nbsp;&nbsp;&nbsp;&nbsp;NSFR derivative liabilities |  | 10861 | 10861 | 10861 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;All other liabilities and equity not included in the above categories | 28568 | 90216 | 3374 | 20756 | 22443 |
| Total ASF |  |  |  |  | $795504 |
| **Required Stable Funding (RSF) Item** | **Required Stable Funding (RSF) Item** | **Required Stable Funding (RSF) Item** | **Required Stable Funding (RSF) Item** | **Required Stable Funding (RSF) Item** | **Required Stable Funding (RSF) Item** |
| Total NSFR high-quality liquid assets (HQLA) |  |  |  |  | $19102 |
| Deposits held at other financial institutions for operational purposes | $2078 | $– | $– | $– | $1039 |
| Performing loans and securities: | 117186 | 285617 | 103836 | 422034 | 554601 |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing loans to financial institutions secured by Level 1 HQLA | 56 | 61102 | 1773 | 693 | 4866 |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing loans to financial institutions secured by non-Level 1 HQLA and unsecured performing loans to financial institutions | 1882 | 95546 | 11753 | 17738 | 36096 |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which: | 66744 | 92766 | 49104 | 167026 | 269006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk |  | 614 | 499 | 6517 | 4793 |
| &nbsp;&nbsp;&nbsp;&nbsp;Performing residential mortgages, of which: | 22443 | 34917 | 41051 | 232157 | 218003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a risk weight of less than or equal to 35% under the Basel II standardised approach for credit risk | 22443 | 34657 | 40738 | 220421 | 207741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities that are not in default and do not qualify as HQLA, including exchange-traded equities | 26061 | 1286 | 155 | 4420 | 26630 |
| Assets with matching interdependent liabilities<sup>(4)</sup> |  | 1703 | 814 | 13038 |  |
| Other assets: | 8778 | 157088 | 157088 | 157088 | 70061 |
| &nbsp;&nbsp;&nbsp;&nbsp;Physical traded commodities, including gold | 8778 |  |  |  | 7462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs |  | 15622 | 15622 | 15622 | 13279 |
| &nbsp;&nbsp;&nbsp;&nbsp;NSFR derivative assets |  | 6105 | 6105 | 6105 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NSFR derivative liabilities before deduction of variation margin posted |  | 27437 | 27437 | 27437 | 1372 |
| &nbsp;&nbsp;&nbsp;&nbsp;All other assets not included in the above categories |  | 59976 |  | 47948 | 47948 |
| Off-balance sheet items |  | 523248 | 523248 | 523248 | 19691 |
| Total RSF |  |  |  |  | $664494 |
| Net Stable Funding Ratio (%) |  |  |  |  | 120% |

---

---

| | |
|:---|:---|
| As at April 30, 2025 ($ millions) | Weighted<br>Value<sup>(3)</sup> |
| Total ASF | $788238 |
| Total RSF | 658499 |
| Net stable funding ratio (%) | 120% |

---

(1) The NSFR is calculated in accordance with OSFI's LAR guideline (April 2025).

(2) Items in the "no maturity" time bucket do not have a stated maturity. These may include, but are not limited to, items such as capital with perpetual maturity, non-maturity deposits, short positions, open maturity positions, non-HQLA equities, and physical traded commodities.

(3) Weighted values represent balances calculated after the application of ASF and RSF rates, as prescribed by the OSFI LAR Guideline.

(4) Interdependent assets and liabilities are primarily comprised of transactions related to the Canada Mortgage Bond program.

Available stable funding is primarily provided by the Bank's large pool of retail, small business and corporate customer deposits; secured and unsecured wholesale funding and capital. Required stable funding primarily originates from the Bank's loan and mortgage portfolio, securities holdings, off-balance sheet items and other assets.

The Bank's NSFR as at July 31, 2025 remained unchanged versus the previous quarter as higher ASF from retail deposits and deposits from small business customers were offset by an increase in RSF for performing securities, loans and residential mortgages.

48 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Funding

The Bank ensures that its funding sources are well diversified. Funding concentrations are regularly monitored and analyzed by type. The sources of funding are capital, deposits from retail and commercial clients sourced through the Canadian and international branch network, deposits from financial institutions as well as wholesale debt issuances.

Capital and personal deposits are key components of the Bank's core funding and these amounted to $401 billion as at July 31, 2025 (October 31, 2024 – $398 billion). The increase since October 31, 2024 is due primarily to growth in personal deposits. A portion of commercial deposits, particularly those of an operating or relationship nature, are also considered part of the Bank's core funding. Furthermore, core funding is augmented by longer-term wholesale debt issuances (original maturity of 1 year or more) of $193 billion (October 31, 2024 – $206 billion). Longer-term wholesale debt issuances include senior notes, mortgage securitizations, asset-backed securities and covered bonds.

The Bank operates in many different currencies and countries. From a funding perspective, the most significant currencies are Canadian and U.S. dollars. With respect to the Bank's operations outside Canada, there are different funding strategies depending on the nature of the activities in each country. For those countries where the Bank operates a branch banking subsidiary, the strategy is for the subsidiary to be substantially self-funding in its local market. For other subsidiaries or branches outside Canada where local deposit gathering capability is not sufficient, funding is provided through the wholesale funding activities of the Bank.

From an overall funding perspective, the Bank's objective is to achieve an appropriate balance between the cost and the stability of funding. Diversification of funding sources is a key element of the funding strategy.

The Bank's wholesale debt diversification strategy is primarily executed via the Bank's main wholesale funding centres, located in Toronto, New York, London and Singapore. The majority of these funds are sourced in Canadian and U.S. dollars. Where required, these funds are swapped to fund assets in different currencies. The funding strategy deployed by wholesale funding centres and the management of associated risks, such as geographic and currency risk, are managed centrally within the framework of policies and limits that are approved by the Board of Directors.

In the normal course, the Bank uses a mix of unsecured and secured wholesale funding instruments across a variety of markets. The choice of instruments and markets is based on a number of factors, including relative cost, market capacity and diversification of funding. Market conditions can change over time, impacting cost and capacity in particular markets or instruments. Changing market conditions can include periods of stress where the availability of funding in particular markets or instruments is constrained. In these circumstances, the Bank would increase its focus on sources of funding in functioning markets and secured funding instruments. Should a period of extreme stress exist such that all wholesale funding sources are constrained, the Bank maintains a pool of liquid assets to mitigate its liquidity risk. This pool includes cash, deposits with central banks and securities.

In Canada, the Bank raises short and longer-term wholesale debt through the issuance of senior unsecured notes. Additional longer-term wholesale debt may be generated through the Bank's Canadian Debt and Equity Shelf, the securitization of Canadian insured residential mortgages through Canada Mortgage and Housing Corporation (CMHC) programs (such as Canada Mortgage Bonds), uninsured residential mortgages through the Bank's Covered Bond Program, retail credit card receivables through the Trillium Credit Card Trust II program and retail indirect auto loan receivables through the Securitized Term Auto Receivables Trust program. CMHC securitization programs, while included in the Bank's view of wholesale debt issuance, do not historically entail the run-off risk that can be experienced in funding raised from capital markets.

Outside of Canada, short-term wholesale debt may be raised through the issuance of negotiable certificates of deposit in the United States, Hong Kong, the United Kingdom and Australia and the issuance of commercial paper in the United States. The Bank operates longer-term wholesale debt issuance registered programs in the United States, such as its SEC Registered Debt and Equity Shelf, and non-registered programs, such as the securitization of retail indirect auto loan receivables through the Securitized Term Auto Receivables Trust program and retail credit card receivables through the Trillium Credit Card Trust II program. The Bank may issue offerings via its Covered Bond Program (listed with the U.K. Listing Authority and the Swiss Stock Exchange), in Europe, the United Kingdom, the United States, Australia, Switzerland, Canada and Norway. The Bank also issues longer-term notes across a variety of currencies through its Australian Medium Term Note Programme, European Medium Term Note Programme (listed with the U.K. Listing Authority and the Swiss Stock Exchange) and Singapore Medium Term Note Programme (listed with the Singapore Exchange and the Taiwan Exchange).

The Department of Finance's bail-in regulations under the Canada Deposit Insurance Corporation (CDIC) Act and the Bank Act, became effective September 23, 2018. Senior unsecured debt issued by the Bank on or after September 23, 2018, that has an original term greater than 400 days and is marketable, subject to certain exceptions, is subject to the Canadian Bank Recapitalization (Bail-in) regime. Under the Bail-in regime, in circumstances when the Superintendent of Financial Institutions has determined that a bank may no longer be viable, the Governor in Council may, upon a recommendation of the Minister of Finance that they are of the opinion that it is in the public interest to do so, grant an order directing the CDIC to convert all or a portion of certain shares and liabilities of that bank into common shares.

Scotiabank Third Quarter Report 2025 49

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MANAGEMENT'S DISCUSSION & ANALYSIS

The table below provides the remaining contractual maturities of funding raised through wholesale funding sources. In the Consolidated Statement of Financial Position, these liabilities are primarily included in Business and Government Deposits.

Wholesale funding sources

T30 Wholesale funding<sup>(1)</sup>

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
| ($ millions) | Less than<br>1 month | 1-3<br>months | 3-6<br>months | 6-9<br>months | 9-12<br>months | Sub-total<br>≤<br> 1 year | 1-2<br>years | 2-5<br>years | **>5**<br>**years** | Total |
| Deposit by banks<sup>(2)</sup> | $2109 | $2118 | $91 | $142 | $216 | $4676 | $– | $277 | $– | $4953 |
| Bearer deposit notes, commercial paper and certificate of deposits | 5851 | 15304 | 21005 | 16666 | 9309 | 68135 | 1338 | 343 | 180 | 69996 |
| Asset-backed commercial paper<sup>(3)</sup> | 2654 | 5710 | 4193 |  |  | 12557 |  |  |  | 12557 |
| Senior notes <sup>(4)(5)</sup> | 84 | 717 | 211 | 2750 | 2236 | 5998 | 3711 | 6363 | 12946 | 29018 |
| Bail-inable notes<sup>(5)</sup> |  | 1755 | 3987 | 4394 | 3684 | 13820 | 18654 | 20809 | 23055 | 76338 |
| Asset-backed securities | 922 | 35 | 655 | 47 | 44 | 1703 | 746 | 1657 | 76 | 4182 |
| Covered bonds |  | 890 | 4141 | 3479 | 2993 | 11503 | 13952 | 16353 | 2289 | 44097 |
| Mortgage securitization<sup>(6)</sup> |  | 232 | 1344 | 360 | 432 | 2368 | 2369 | 7160 | 2600 | 14497 |
| Subordinated debentures<sup>(7)</sup> |  |  | 1732 |  | 50 | 1782 |  | 162 | 7955 | 9899 |
| Total wholesale funding sources | $11620 | $26761 | $37359 | $27838 | $18964 | $122542 | $40770 | $53124 | $49101 | $265537 |
| Of Which: |  |  |  |  |  |  |  |  |  |  |
| Unsecured funding | $8044 | $19893 | $27025 | $23953 | $15495 | $94410 | $23704 | $27954 | $44135 | $190203 |
| Secured funding | 3576 | 6868 | 10334 | 3885 | 3469 | 28132 | 17066 | 25170 | 4966 | 75334 |
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| ($ millions) | Less than<br>1 month | 1-3<br>months | 3-6<br>months | 6-9<br>months | 9-12<br>months | Sub-total<br>≤<br> 1 year | 1-2<br>years | 2-5<br>years | >5<br>years | Total |
| Deposit by banks<sup>(2)</sup> | $3858 | $1455 | $455 | $318 | $158 | $6244 | $– | $– | $– | $6244 |
| Bearer deposit notes, commercial paper and certificate of deposits | 6612 | 12754 | 17407 | 12087 | 8307 | 57167 | 1251 | 269 | 182 | 58869 |
| Asset-backed commercial paper<sup>(3)</sup> | 2248 | 5831 | 2435 | 139 |  | 10653 |  |  |  | 10653 |
| Senior notes <sup>(4)(5)</sup> | 2073 | 88 | 2200 | 2613 | 794 | 7768 | 2949 | 7934 | 12337 | 30988 |
| Bail-inable notes <sup>(5)</sup> | 243 | 5699 | 6429 | 6613 | 1682 | 20666 | 16714 | 29520 | 17945 | 84845 |
| Asset-backed securities |  | 1 |  |  | 908 | 909 | 1218 | 770 | 844 | 3741 |
| Covered bonds |  | 1515 | 4983 | 2088 | 916 | 9502 | 16039 | 17251 | 4143 | 46935 |
| Mortgage securitization<sup>(6)</sup> |  | 650 | 1710 | 887 | 235 | 3482 | 3061 | 7099 | 3844 | 17486 |
| Subordinated debentures<sup>(7)</sup> |  | 47 |  | 280 |  | 327 | 1788 | 201 | 7430 | 9746 |
| Total wholesale funding sources | $15034 | $28040 | $35619 | $25025 | $13000 | $116718 | $43020 | $63044 | $46725 | $269507 |
| Of Which: |  |  |  |  |  |  |  |  |  |  |
| Unsecured funding | $12786 | $20042 | $26492 | $21911 | $10941 | $92172 | $22702 | $37924 | $37894 | $190692 |
| Secured funding | 2248 | 7998 | 9127 | 3114 | 2059 | 24546 | 20318 | 25120 | 8831 | 78815 |

---

(1) Wholesale funding sources exclude obligations related to securities sold under repurchase agreements and bankers' acceptances, which are disclosed in the contractual maturities table below. Amounts are principal at maturity based on remaining term.

(2) Only includes commercial bank deposits.

(3) Wholesale funding sources also exclude asset-backed commercial paper (ABCP) issued by certain ABCP conduits that are not consolidated for financial reporting purposes.

(4) Not subject to bail-in.

(5) Includes structured notes issued to institutional investors.

(6) Represents residential mortgages funded through Canadian Federal Government agency sponsored programs. Funding accessed through such programs does not impact the funding capacity of the Bank in its own name.

(7) Although subordinated debentures are a component of regulatory capital, they are included in this table in accordance with EDTF recommended disclosures.

Wholesale funding generally bears a higher risk of run-off in a stressed environment than other sources of funding. The Bank mitigates this risk through funding diversification, ongoing engagement with investors and by maintaining a large holding of unencumbered liquid assets. Unencumbered liquid assets of $321 billion as at July 31, 2025 (October 31, 2024 – $310 billion) were well in excess of wholesale funding sources which mature in the next twelve months.

50 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Contractual maturities

The table below provides the maturity of assets and liabilities as well as the off-balance sheet commitments as at July 31, 2025, based on the contractual maturity date. From a liquidity risk perspective the Bank considers factors other than contractual maturity in the assessment of liquid assets or in determining expected future cash flows. In particular, for securities with a fixed maturity date, the ability and time horizon to raise cash from these securities is more relevant to liquidity management than contractual maturity. For other assets and deposits the Bank uses assumptions about rollover rates to assess liquidity risk for normal course and stress scenarios. Similarly, the Bank uses assumptions to assess the potential drawdown of credit commitments in various scenarios.

T31 Contractual maturities

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
| ($ millions) | Less<br>than one<br>month | One to<br>three<br>months | Three<br>to six<br>months | Six to<br>nine<br>months | Nine to<br>twelve<br>months | One to<br>two<br>years | Two<br>to five<br>years | Over<br>five<br>years | No<br>specific<br>maturity | Total |
| **Assets** |  |  |  |  |  |  |  |  |  |  |
| Cash and deposits with financial institutions and precious metals | $66075 | $847 | $311 | $42 | $33 | $105 | $302 | $296 | $7522 | $75533 |
| Trading assets | 1722 | 4168 | 5158 | 3283 | 2313 | 8873 | 20324 | 24971 | 65673 | 136485 |
| Securities purchased under resale agreements and securities borrowed | 145300 | 25257 | 9632 | 3466 | 1012 |  | 693 |  |  | 185360 |
| Derivative financial instruments | 3625 | 3344 | 5226 | 2784 | 2054 | 5633 | 9997 | 11138 |  | 43801 |
| Investment securities – FVOCI | 2422 | 5507 | 3877 | 4653 | 7317 | 17869 | 45023 | 35091 | 352 | 122111 |
| Investment securities – amortized cost | 57 | 994 | 420 | 876 | 938 | 1540 | 3577 | 16521 |  | 24923 |
| Investment securities – FVTPL |  |  |  |  |  |  |  |  | 2117 | 2117 |
| Loans | 42240 | 42422 | 57346 | 50956 | 60582 | 166520 | 218310 | 57031 | 66153 | 761560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgages | 5431 | 13418 | 20342 | 22350 | 29170 | 100025 | 123836 | 42060 | 4305 | 360937 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal loans | 3976 | 2603 | 4586 | 4440 | 4158 | 12688 | 24473 | 6440 | 44526 | 107890 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit cards |  |  |  |  |  |  |  |  | 17472 | 17472 |
| &nbsp;&nbsp;&nbsp;&nbsp;Business and government | 32833 | 26401 | 32418 | 24166 | 27254 | 53807 | 70001 | 8531 | 7047 | 282458 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses |  |  |  |  |  |  |  |  | (7197) | (7197) |
| Customers' liabilities under acceptances | 21 | 36 | 58 | 11 | 7 |  |  |  |  | 133 |
| Other assets |  |  |  |  |  |  |  |  | 62663 | 62663 |
| Total assets | $261462 | $82575 | $82028 | $66071 | $74256 | $200540 | $298226 | $145048 | $204480 | $1414686 |
| **Liabilities and equity** |  |  |  |  |  |  |  |  |  |  |
| Deposits | $76407 | $70426 | $75518 | $50606 | $44721 | $66871 | $71785 | $21995 | $468513 | $946842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal | 16782 | 21238 | 25376 | 17430 | 17539 | 20340 | 12377 | 208 | 170174 | 301464 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-personal | 59625 | 49188 | 50142 | 33176 | 27182 | 46531 | 59408 | 21787 | 298339 | 645378 |
| Financial instruments designated at fair value through profit or loss | 837 | 921 | 1811 | 2738 | 2617 | 5574 | 10849 | 18189 |  | 43536 |
| Acceptances | 22 | 36 | 58 | 11 | 7 |  |  |  |  | 134 |
| Obligations related to securities sold short | 148 | 2526 | 2079 | 765 | 985 | 2271 | 6879 | 11394 | 7628 | 34675 |
| Derivative financial instruments | 3070 | 3389 | 5581 | 2734 | 2593 | 6945 | 10912 | 17692 |  | 52916 |
| Obligations related to securities sold under repurchase agreements and securities lent | 174530 | 6886 | 172 | 417 |  | 218 |  |  |  | 182223 |
| Subordinated debentures |  |  | 1732 |  |  |  |  | 5872 |  | 7604 |
| Other liabilities | 226 | 850 | 774 | 2021 | 887 | 2343 | 6471 | 9342 | 38359 | 61273 |
| Total equity |  |  |  |  |  |  |  |  | 85483 | 85483 |
| Total liabilities and equity | $255240 | $85034 | $87725 | $59292 | $51810 | $84222 | $106896 | $84484 | $599983 | $1414686 |
| **Off-balance sheet commitments** |  |  |  |  |  |  |  |  |  |  |
| Credit commitments<sup>(3)</sup> | $1575 | $8426 | $15874 | $14762 | $16742 | $53870 | $137266 | $28727 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– | $277242 |
| Guarantees and letters of credit<sup>(4)</sup> |  |  |  |  |  |  |  |  | 74876 | 74876 |
| Outsourcing obligations<sup>(5)</sup> | 2 | 4 | 6 | 6 | 6 | 24 | 42 | 5 |  | 95 |

---

(1) Includes impaired mortgages.

(2) Includes overdrafts and impaired loans.

(3) Includes the undrawn component of committed credit and liquidity facilities.

(4) Includes outstanding balances of guarantees, standby letters of credit and commercial letters of credit which may expire undrawn.

(5) The Bank relies on outsourcing arrangements for certain support and/or business functions, including, but not limited to, computer operations and cheque and bill payment processing.

Scotiabank Third Quarter Report 2025 51

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MANAGEMENT'S DISCUSSION & ANALYSIS

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| ($ millions) | Less<br>than one<br>month | One to<br>three<br>months | Three<br>to six<br>months | Six to<br>nine<br>months | Nine to<br>twelve<br>months | One to<br>two<br>years | Two<br>to five<br>years | Over<br>five<br>years | No<br>specific<br>maturity | Total |
| **Assets** |  |  |  |  |  |  |  |  |  |  |
| Cash and deposits with financial institutions and precious metals | $59871 | $600 | $100 | $45 | $53 | $152 | $272 | $221 | $5086 | $66400 |
| Trading assets | 2183 | 3233 | 3782 | 3925 | 3620 | 8484 | 21126 | 22003 | 61371 | 129727 |
| Securities purchased under resale agreements and securities borrowed | 165155 | 19828 | 10573 | 1722 | 2569 |  | 696 |  |  | 200543 |
| Derivative financial instruments | 3545 | 5929 | 3118 | 2584 | 1844 | 6774 | 9718 | 10867 |  | 44379 |
| Investment securities – FVOCI | 3404 | 7194 | 6525 | 4316 | 3825 | 19546 | 46178 | 27238 | 3162 | 121388 |
| Investment securities – amortized cost | 16 | 919 | 706 | 1136 | 994 | 1860 | 4935 | 18846 |  | 29412 |
| Investment securities – FVTPL | 2 |  |  |  |  |  | 26 |  | 2004 | 2032 |
| Loans | 40996 | 43071 | 49443 | 52476 | 48186 | 163815 | 242835 | 55047 | 64960 | 760829 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgages | 5215 | 9719 | 17163 | 19002 | 21784 | 97508 | 135961 | 40720 | 3869<sup>(1)</sup> | 350941 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal loans | 3499 | 3470 | 3379 | 4807 | 3598 | 12012 | 25695 | 6582 | 43337 | 106379 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit cards |  |  |  |  |  |  |  |  | 17374 | 17374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Business and government | 32282 | 29882 | 28901 | 28667 | 22804 | 54295 | 81179 | 7745 | 6916<sup>(2)</sup> | 292671 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses |  |  |  |  |  |  |  |  | (6536) | (6536) |
| Customers' liabilities under acceptances | 39 | 57 | 36 | 10 | 6 |  |  |  |  | 148 |
| Other assets |  |  |  |  |  |  |  |  | 57169 | 57169 |
| Total assets | $275211 | $80831 | $74283 | $66214 | $61097 | $200631 | $325786 | $134222 | $193752 | $1412027 |
| **Liabilities and equity** |  |  |  |  |  |  |  |  |  |  |
| Deposits | $88575 | $77322 | $68891 | $57925 | $43415 | $64530 | $76309 | $24977 | $441905 | $943849 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal | 16273 | 23956 | 24000 | 22746 | 19827 | 19423 | 12430 | 138 | 160028 | 298821 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-personal | 72302 | 53366 | 44891 | 35179 | 23588 | 45107 | 63879 | 24839 | 281877 | 645028 |
| Financial instruments designated at fair value through profit or loss | 510 | 1045 | 2132 | 1609 | 1833 | 5330 | 8887 | 14995 |  | 36341 |
| Acceptances | 40 | 57 | 36 | 10 | 6 |  |  |  |  | 149 |
| Obligations related to securities sold short | 272 | 1988 | 1120 | 1803 | 816 | 3638 | 7114 | 9413 | 8878 | 35042 |
| Derivative financial instruments | 2754 | 4595 | 2429 | 2301 | 1857 | 7647 | 11705 | 17972 |  | 51260 |
| Obligations related to securities sold under repurchase agreements and securities lent | 186240 | 3427 | 93 | 437 | 44 | 208 |  |  |  | 190449 |
| Subordinated debentures |  |  |  | 251 |  | 1740 |  | 5842 |  | 7833 |
| Other liabilities<sup>(3)</sup> | 533 | 759 | 1285 | 1267 | 979 | 3142 | 6860 | 8954 | 39249 | 63028 |
| Total equity |  |  |  |  |  |  |  |  | 84076 | 84076 |
| Total liabilities and equity | $278924 | $89193 | $75986 | $65603 | $48950 | $86235 | $110875 | $82153 | $574108 | $1412027 |
| **Off-balance sheet commitments** |  |  |  |  |  |  |  |  |  |  |
| Credit commitments<sup>(3)</sup> | $1538 | $9568 | $15403 | $18291 | $12075 | $58806 | $144972 | $8818 | $– | $269471 |
| Guarantees and letters of credit<sup>(4)</sup> |  |  |  |  |  |  |  |  | 64016 | 64016 |
| Outsourcing obligations<sup>(5)</sup> | 12 | 23 | 7 | 7 | 7 | 29 | 56 | 13 |  | 154 |

---

(1) Includes impaired mortgages.

(2) Includes overdrafts and impaired loans.

(3) Includes the undrawn component of committed credit and liquidity facilities.

(4) Includes outstanding balances of guarantees, standby letters of credit and commercial letters of credit which may expire undrawn.

(5) The Bank relies on outsourcing arrangements for certain support and/or business functions, including, but not limited to, computer operations and cheque and bill payment processing.

Capital Management

The Bank continues to manage its capital in accordance with the capital management framework and OSFI's regulatory capital requirements as described on pages 55 to 68 of the Bank's 2024 Annual Report.

Effective November 1, 2023 the Domestic Stability Buffer (DSB) was increased to 3.5% of total risk-weighted assets. This DSB requirement of 3.5% was maintained by OSFI in their June 2025 announcement. OSFI's minimum regulatory capital ratio requirements, including the D-SIB 1.0% surcharge and its DSB, are: 11.5%, 13.0% and 15.0% for Common Equity Tier 1 (CET1), Tier 1 and Total capital ratios, respectively. In addition, the Bank is presently subject to a Basel Committee on Banking Supervision (BCBS) countercyclical buffer requirement of approximately seven basis points.

52 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

OSFI defers further increases to the Basel III standardized capital output floor

In February 2025, OSFI announced its deferral of increases to the Basel III standardized capital output floor until further notice. OSFI has noted that there remains uncertainty about when other jurisdictions will fully implement Basel III and it will not extend its implementation lead.

Canada concluded its implementation of the revised Basel III 2017 reforms in early 2024 and established an accelerated phase-in of the Basel III standardized capital output floor, calibrated at 65% in 2023, increasing in the first quarter by 2.5% per year through to 72.5% in 2026. OSFI's announcement of a deferral maintains the capital floor calibration at the 2024 level of 67.5% indefinitely, delaying further increases to 70% and 72.5%, until further notice. Moreover, OSFI has committed to notifying affected banks at least two years prior to resuming an increase to the Basel III standardized capital output floor.

OSFI guideline for the capital and liquidity treatment of crypto-asset exposures

In February 2025, OSFI published its guideline for the capital and liquidity treatment of crypto-asset exposures, effective for the Bank in the first quarter of 2026. The guideline incorporates the BCBS standards for cypto-asset exposures, as updated in November 2024, and it replaces OSFI's interim advisory on the regulatory treatment of cypto-asset exposures. In addition, OSFI published final amendments to its Pillar 3 Disclosure Guidelines, incorporating new crypto-asset disclosure requirements also effective the first quarter of fiscal 2026.

Within the guideline, crypto-asset exposures are defined and categorized by type. Regulatory capital treatments for their credit risk, counterparty credit risk and market risk are prescribed. Overall, the regulatory capital impacts from the new crypto-asset exposure requirements are not considered material to the Bank.

Regulatory capital and total loss absorbing capacity ratios

The Bank's various regulatory capital and total loss absorbing capacity measures consist of the following:

T32 Regulatory capital and total loss absorbing capacity ratios

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| | | | |
|:---|:---|:---|:---|
|  | As at | As at | As at |
| ($ millions) | **July 31**<br>**2025** | April 30<br>2025 | October 31<br>2024 |
| Common Equity Tier 1 capital<sup>(1)</sup> | $61591 | $60425 | $60631 |
| Tier 1 capital<sup>(1)</sup> | 70225 | 70740 | 69499 |
| Total regulatory capital<sup>(1)</sup> | 78208 | 78682 | 77708 |
| Total loss absorbing capacity (TLAC)<sup>(2)</sup> | 134627 | 139119 | 137752 |
| Risk-weighted assets<sup>(1)(3)</sup> | $463484 | $458989 | $463992 |
| Capital ratios (%)<sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Equity Tier 1 capital ratio | 13.3 | 13.2 | 13.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital ratio | 15.2 | 15.4 | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total capital ratio | 16.9 | 17.1 | 16.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loss absorbing capacity ratio<sup>(2)</sup> | 29.0 | 30.3 | 29.7 |
| Leverage<sup>(4)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Leverage exposures | $1573879 | $1568491 | $1563140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leverage ratio (%) | 4.5 | 4.5 | 4.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loss absorbing capacity leverage ratio (%)<sup>(2)</sup> | 8.6 | 8.9 | 8.8 |

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(1) The regulatory capital ratios are based on Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023).

(2) This measure has been disclosed in this document in accordance with OSFI Guideline – Total Loss Absorbing Capacity (September 2018).

(3) As at July 31, 2025, April 30, 2025 and October 31, 2024, the Bank did not have a regulatory capital floor add-on to risk-weighted assets (RWA) for CET1, Tier 1, Total Capital and TLAC RWA.

(4) The leverage ratios are based on Basel III requirements as determined in accordance with OSFI Guideline – Leverage Requirements (February 2023).

The Bank's CET1 capital ratio was 13.3% as at July 31, 2025, an increase of approximately 10 basis points from the prior quarter, due primarily to strong internal capital generation and higher unrealized gains for FVOCI securities, partly offset by growth in risk-weighted assets and share repurchases under the Bank's Normal Course Issuer Bid.

The Bank's Tier 1 capital and Total capital ratios were 15.2% and 16.9%, respectively, as at July 31, 2025, representing decreases of approximately 20 basis points from the prior quarter, due primarily to the redemption of U.S. $1.25 billion of Subordinated Additional Tier 1 Capital Notes, partly offset by the above noted impacts to the CET1 ratio.

The Leverage ratio was 4.5% as at July 31, 2025, in line with the prior quarter.

As at July 31, 2025, the CET1, Tier 1, Total capital, and Leverage ratios were well above OSFI's minimum ratios. The TLAC and TLAC Leverage ratios were 29.0% and 8.6%, respectively, as at July 31, 2025, also well above OSFI's minimum requirements.

Scotiabank Third Quarter Report 2025 53

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MANAGEMENT'S DISCUSSION & ANALYSIS

Continuity of Common Equity Tier 1 ratio

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Changes in regulatory capital

The Bank's Common Equity Tier 1 capital as at July 31, 2025 was $61.6 billion, representing an increase of approximately $1.2 billion from the prior quarter. Capital increases were primarily from quarterly earnings less dividends of $0.9 billion and higher net accumulated other comprehensive income included for regulatory capital of $0.6 billion, comprised of gains from FVOCI securities, foreign currency translation and employee pensions. The increases were partly offset by the Bank's share repurchases under its Normal Course Issuer Bid program of $0.2 billion and higher regulatory capital deductions of $0.1 billion.

Risk-weighted assets

CET1 risk-weighted assets (RWA) increased during the quarter by $4.5 billion (or 1.0%) to $463.5 billion. The increase in RWA during the quarter was primarily from business line growth and the impacts from foreign currency translation.

Normal Course Issuer Bid

On May 28, 2025, the Bank announced that OSFI and the Toronto Stock Exchange approved a normal course issuer bid (the "2025 NCIB") pursuant to which it may repurchase for cancellation up to 20 million of the Bank's common shares. Purchases under the 2025 NCIB commenced on May 30, 2025, and will terminate upon the earlier of: (i) the Bank purchasing the maximum number of common shares under the 2025 NCIB, (ii) the Bank providing a notice of termination, or (iii) May 29, 2026.

From the commencement of the 2025 NCIB until July 31, 2025, the Bank repurchased and cancelled approximately 3.2 million common shares at an average price of $74.52 per share for a total amount of $245 million, including tax.

Common dividend

The Board of Directors, at its meeting on August 25, 2025, approved a dividend of $1.10 per share. This quarterly dividend is payable to shareholders of record as of October 7, 2025, on October 29, 2025.

Financial Instruments

Given the nature of the Bank's main business activities, financial instruments make up a substantial portion of the balance sheet and are integral to the Bank's business. There are various measures that reflect the level of risk associated with the Bank's portfolio of financial instruments. Further discussion of some of these risk measures is included in the Risk Management section. The methods of determining the fair value of financial instruments are detailed on page 164 of the Bank's 2024 Annual Report.

Management's judgement on valuation inputs is necessary when observable market data is not available, and in the selection of appropriate valuation models. Uncertainty in these estimates and judgements can affect fair value and financial results recorded. During the quarter, changes in the fair value of financial instruments reflect the current economic environment, industry and market conditions.

Many financial instruments are traded products such as derivatives, and are generally transacted under industry standard International Swaps and Derivatives Association (ISDA) master netting agreements with counterparties, which allow for a single net settlement of all transactions covered by that agreement in the event of a default or early termination of the transactions. ISDA agreements are frequently accompanied by an ISDA Credit Support Annex (CSA), the terms of which may vary according to each party's view of the other party's creditworthiness. CSAs can require one party to post initial margin at the onset of each transaction. CSAs also allow for variation margin to be called if total uncollateralized mark-to-market exposure exceeds an agreed upon threshold. Such variation margin provisions can be one-way (only one party will ever post collateral) or bi-lateral (either party may post depending upon which party is in-the-money). The CSA will also detail the types of collateral that are acceptable to each party, and the haircuts that will be applied against each collateral type. The terms of the ISDA master netting agreements and CSAs are taken into consideration in the calculation of counterparty credit risk exposure (see also page 84 of the Bank's 2024 Annual Report).

Total derivative notional amounts were $10,871 billion as at July 31, 2025, compared to $9,942 billion as at April 30, 2025 (October 31, 2024 – $9,058 billion). The quarterly increase was due to higher volume of interest rate contracts and the impact of foreign currency translation, partly offset by lower volume of foreign exchange contracts. The total notional amount of over-the-counter derivatives was $10,016 billion compared to $9,170 billion as at April 30, 2025 (October 31, 2024 – $8,313 billion), of which $7,614 billion was settled through central counterparties as at July 31, 2025 (April 30, 2025 – $6,712 billion; October 31, 2024 – $6,094 billion). The credit equivalent amount, which takes into account offsetting liabilities and collateral from master netting arrangements, was $33.1 billion, compared to $33.6 billion at April 30, 2025. The decrease was primarily due to a lower fair value and, as a result, corresponding lower exposure for foreign exchange and interest rate contracts, offset by an increase in fair value for equity contracts.

Selected credit instruments

A complete discussion of selected credit instruments which markets regarded as higher risk during the financial crisis was provided on page 71 of the Bank's 2024 Annual Report. The Bank's net exposures have remained substantially unchanged from year end.

54 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Off-Balance Sheet Arrangements

In the normal course of business, the Bank enters into contractual arrangements that are either consolidated or not required to be consolidated in its financial statements, but could have a current or future impact on the Bank's financial performance or financial condition. These arrangements can be classified into the following categories: structured entities, securitizations and guarantees and other commitments.

No material contractual obligations were entered into this quarter by the Bank with the structured entities that are not in the ordinary course of business. Processes for review and approval of these contractual arrangements are unchanged from last year. For a complete discussion of these types of arrangements, please refer to pages 68 to 70 of the Bank's 2024 Annual Report.

Structured entities

The Bank sponsors a total of three Canadian multi-seller conduits that are not consolidated. These multi-seller conduits purchase high-quality financial assets and finance these assets through the issuance of highly rated commercial paper. Although the Bank has power over the relevant activities of the conduits, it has limited exposure to variability in returns, which results in the Bank not consolidating the three Canadian conduits.

A significant portion of the conduits' assets have been structured to receive credit enhancements from the sellers, including overcollateralization protection and cash reserve accounts. Each asset purchased by the conduits is supported by a backstop liquidity facility provided by the Bank in the form of a liquidity asset purchase agreement (LAPA) or a liquidity agreement (LA). The primary purpose of the backstop liquidity facility is to provide an alternative source of financing in the event the conduits are unable to access the commercial paper market. Under the terms of the LAPA or LA, in most cases, the Bank is not obliged to purchase defaulted assets.

The Bank's primary exposure to the Canadian-based conduits is the liquidity support provided, with total liquidity facilities of $8.6 billion as at July 31, 2025 (October 31, 2024 – $7.7 billion). As at July 31, 2025, total commercial paper outstanding for these conduits was $7.2 billion (October 31, 2024 – $6.4 billion). Funded assets purchased and held by these conduits as at July 31, 2025, as reflected at amortized cost, were $7.1 billion (October 31, 2024 – $6.3 billion). Other than the changes noted above, there has been no significant change in the composition or risk profile of these conduits since October 31, 2024.

Securitization

The Bank securitizes a portion of its Canadian auto loans through its Securitized Term Auto Receivables Trust Program. During the quarter, $2,937 million of its Canadian auto loan receivables were securitized through Securitized Term Auto Receivables Trust (SSTRT) a Bank-sponsored consolidated structured entity. The SSTRT entity issues offered notes to third-party investors and retained notes to the Bank. Recourse of the noteholders is limited to the receivables and a cash reserve account. The sale of such receivables does not qualify for derecognition, and the receivables continue to be recognized on the Bank's Consolidated Statement of Financial Position. As of July 31, 2025, U.S. $186 million (CAD $258 million) offered notes issued to third party investors through SSTRT were outstanding and included in deposits – business and government on the Consolidated Statement of Financial Position.

Regulatory Developments

The Bank continues to monitor global regulatory developments relating to a broad spectrum of topics, in order to ensure that control functions and business lines are responsive on a timely basis and business impacts, if any, are minimized. A high-level summary of some of the key regulatory developments that have the potential of impacting the Bank's operations is included in the Regulatory Developments section in the Bank's 2024 Annual Report. Updates during the quarter are as follows:

Global Minimum Tax

The Organisation for Economic Co-operation and Development (OECD) published Pillar Two model rules in December 2021 as part of its efforts toward international tax reform. The rules aim to have large multinational enterprises, with consolidated revenues in excess of

€750 million, pay a minimum effective tax of 15%. These rules apply to the Bank effective November 1, 2024, and have been enacted or substantively enacted in certain jurisdictions in which the Bank operates, including Canada, whose Global Minimum Tax (GMT) Act was enacted in June 2024.

The IASB previously issued amendments to IAS 12 Income Taxes for a temporary mandatory exception from the recognition and disclosure of deferred taxes related to the implementation of Pillar Two GMT rules, which the Bank has applied.

For the nine months ended July 31, 2025, the impact of the GMT on the Bank's effective tax rate was approximately 1%, and was primarily related to its operations in certain Caribbean jurisdictions and Ireland.

U.S. Tax Legislation

On July 4, 2025, the One Big Beautiful Bill Act (OBBB) was enacted into U.S. law, which codifies certain of the 2017 Tax Cuts and Jobs Act (TCJA) provisions, making them permanent. The Bank has evaluated the impact of this new legislation and does not expect any significant impact on the consolidated effective tax rate.

Accounting Policies and Controls

Accounting policies and estimates

These condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting, using the same accounting policies as described in Note 3 of the Bank's audited consolidated financial statements for the year ended October 31, 2024.

The preparation of financial statements requires management to make estimates, apply judgements and make assumptions that affect the reported amount of assets and liabilities at the date of the condensed interim consolidated financial statements, and income and expenses during the reporting period. For more information on the Bank's significant accounting estimates, judgements and assumptions, refer to Note 2 of the condensed interim consolidated financial statements and Note 3 of the audited consolidated financial statements in the 2024 Annual Report.

Future accounting developments

There are no significant updates to the future accounting developments disclosed in Note 6 of the Bank's audited consolidated financial statements in the 2024 Annual Report.

Scotiabank Third Quarter Report 2025 55

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MANAGEMENT'S DISCUSSION & ANALYSIS

Changes in internal control over financial reporting

There have been no changes in the Bank's internal control over financial reporting during the three months ended July 31, 2025, that have materially affected, or are reasonably likely to materially affect, the Bank's internal control over financial reporting.

Related party transactions

There were no changes to the Bank's procedures and policies for related party transactions from those outlined in the Bank's 2024 Annual Report. All transactions with related parties continued to be at market terms and conditions.

Share Data

T33 Shares and other instruments

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| | | | | |
|:---|:---|:---|:---|:---|
| July 31, 2025 | Amount<br>($ millions) | Dividends<br>declared per<br>share <sup>(1)</sup> | Number<br>outstanding<br>(000s) | Conversion<br>feature |
| **Common Shares <sup>(2)</sup>** | $22089 | $1.10 | 1242460 | n/a |
| NVCC Additional Tier 1 Securities<sup>(3)(5)</sup> | Amount<br>($ millions) | Distribution<sup>(4)</sup> | Yield (%) | Number<br>outstanding<br>(000s) |
| Subordinated Additional Tier 1 Capital Notes | 1250 | 18.4764 | 7.230 | 1250 |
| Subordinated Additional Tier 1 Capital Notes<sup>(6)</sup> | 1250 |  |  |  |
| Limited Recourse Capital Notes Series 1 | $1250 | $9.2500 | 3.700 | 1250 |
| Limited Recourse Capital Notes Series 2 | 600 | 9.0625 | 3.625 | 600 |
| Limited Recourse Capital Notes Series 3 | $1500 | $17.5575 | 7.023 | 1500 |
| Limited Recourse Capital Notes Series 4 | 750 | 21.5625 | 8.625 | 750 |
| Limited Recourse Capital Notes Series 5 | 750 | 20.0000 | 8.000 | 750 |
| Limited Recourse Capital Notes Series 6 | 1000 | 18.3750 | 7.350 | 1000 |
| NVCC Subordinated Debentures<sup>(3)</sup> |  |  | Amount<br>($ millions) | Interest rate<br>(%) |
| Subordinated debentures due December 2025 |  |  | 1250 | 4.500 |
| Subordinated debentures due May 2032 |  |  | $1750 | 3.934 |
| Subordinated debentures due December 2032 |  |  | 33000 | 1.800 |
| Subordinated debentures due August 2033 |  |  | $1000 | 5.679 |
| Subordinated debentures due December 2033 |  |  | 12000 | 1.830 |
| Subordinated debentures due August 2034 |  |  | $1000 | 4.950 |
| Subordinated debentures due May 2037 |  |  | 1250 | 4.588 |
| Other | Amount<br>($ millions) | Distribution<sup>(4)</sup> | Yield (%) | Number<br>outstanding<br>(000s) |
| Scotiabank Trust Securities – Series 2006-1 issued by Scotiabank Capital Trust<sup>(7)</sup> | $750 | $28.25 | 5.650 | 750 |
| Options |  |  |  | Number<br>outstanding<br>(000s) |
| Outstanding options granted under the Stock Option Plans to purchase common shares<sup>(2)</sup> |  |  |  | 11706 |

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(1) Dividends are paid quarterly, if and when declared. Represents dividends announced on August 26, 2025. The Board of Directors, at its meeting on August 25, 2025, approved a dividend payable on October 29, 2025 to shareholders of record as of October 7, 2025.

(2) As at August 15, 2025, the number of outstanding common shares and options were 1,241,580 thousand and 11,622 thousand, respectively.

(3) These securities contain Non-Viability Contingent Capital (NVCC) provisions necessary to qualify as regulatory capital under Basel III. Refer to Notes 22 and 25 of the Consolidated Financial Statements in the Bank's 2024 Annual Report for further details. The maximum number of common shares issuable on conversion of NVCC subordinated debentures, NVCC Subordinated Additional Tier 1 Capital Notes, including those issued to Scotiabank LRCN Trust as recourse assets in respect of NVCC Limited Recourse Capital Notes as at July 31, 2025 would be 4,483 million common shares based on the floor price and excluding the impact of any accrued and unpaid interest and any declared but unpaid dividends.

(4) Distributions per face amount of $1,000 or U.S. $1,000 semi-annually or quarterly, as applicable.

(5) Quarterly distributions are recorded in each fiscal quarter, if and when paid.

(6) On June 4, 2025, the Bank redeemed these notes at 100% of their principal amount plus accrued and unpaid interest. The redemption of these AT1 Notes resulted in a foreign currency loss of $22 recorded in Retained Earnings.

(7) These securities have exchange features. Refer to Table 32 in the Bank's 2024 Annual Report for further details.

For further details on outstanding securities of the Bank, including convertibility features, refer to Notes 22, 25 and 27 of the Bank's Consolidated Financial Statements in the 2024 Annual Report.

56 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Glossary

Allowance for Credit Losses: An allowance set aside which, in management's opinion, is adequate to absorb credit-related losses on all financial assets and off-balance sheet exposures subject to impairment assessment. It includes allowances for performing financial assets and impaired financial assets.

Allowance for Credit Losses Ratio: The ratio of period end total allowance for credit losses (excluding debt securities and deposits with financial institutions) divided by gross loans and acceptances.

Allowance for Impaired Loans Ratio: The ratio of period end impaired allowance for credit losses (excluding debt securities and deposits with financial institutions) divided by gross loans and acceptances.

Allowance for Performing Loans Ratio: The ratio of period end performing allowance for credit losses (excluding debt securities and deposits with financial institutions) divided by gross loans and acceptances.

Allowance against Impaired Loans as a % of Gross Impaired Loans: The ratio of allowance against impaired loans to gross impaired loans.

Assets Under Administration (AUA): Assets administered by the Bank which are beneficially owned by clients and therefore not reported on the Bank's Consolidated Statement of Financial Position. Services provided for AUA are of an administrative nature, such as trusteeship, custodial, safekeeping, income collection and distribution, securities trade settlements, customer reporting, and other similar services.

Assets Under Management (AUM): Assets managed by the Bank on a discretionary basis and in respect of which the Bank earns investment management fees. AUM are beneficially owned by clients and are therefore not reported on the Bank's Consolidated Statement of Financial Position. Some AUM are also administered assets and are therefore included in assets under administration.

Bankers' Acceptances (BAs): Negotiable, short-term debt securities, guaranteed for a fee by the issuer's bank.

Basis Point: A unit of measure defined as one-hundredth of one percent.

Book Value per Common Share: Common shareholders' equity divided by the number of outstanding common shares at the end of the period.

Canadian Overnight Repo Rate Average (CORRA): CORRA measures the cost of overnight general collateral funding in Canadian dollars using Government of Canada treasury bills and bonds as collateral for repurchase transactions.

Common Equity Tier 1 (CET1), Tier 1 and Total Capital Ratios: Under Basel III, there are three primary regulatory capital ratios used to assess capital adequacy, CET1, Tier 1 and Total capital ratios, which are determined by dividing those capital components by their respective risk-weighted assets.

CET1 consists primarily of common shareholders' equity net of regulatory adjustments. These regulatory adjustments include goodwill, intangible assets net of deferred tax liabilities, deferred tax assets that rely on future profitability, defined-benefit pension fund net assets, shortfall of credit provision to expected losses and significant investments in common equity of other financial institutions.

Tier 1 includes CET1 and additional Tier 1 capital which consists primarily of qualifying non-cumulative preferred shares, non-cumulative subordinated additional Tier 1 capital notes and limited recourse capital notes. Tier 2 capital consists mainly of qualifying subordinated debentures and the eligible allowances for credit losses.

Total capital is comprised of CET1 capital, Tier 1 capital and Tier 2 capital.

Covered Bonds: Debt obligations of the Bank for which the payment of all amounts of interest and principal are unconditionally and irrevocably guaranteed by a limited partnership and secured by a pledge of the covered bond portfolio. The assets in the covered bond portfolio held by the limited partnership consist of first lien Canadian uninsured residential mortgages or first lien Canadian residential mortgages insured under CMHC Mortgage Insurance, respectively, and their related security interest.

Derivative Products: Financial contracts whose value is derived from an underlying price, interest rate, exchange rate or price index. Forwards, options and swaps are all derivative instruments.

Dividend Yield: Dividends per common share divided by the average of the high and low share price in the relevant period.

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.

Fair Value: The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal, or in its absence, the most advantageous market to which the Bank has access at the measurement date.

Foreign Exchange Contracts: Commitments to buy or sell a specified amount of foreign currency on a set date and at a predetermined rate of exchange.

Forward Rate Agreement (FRA): A contract between two parties, whereby a designated interest rate, applied to a notional principal amount, is locked in for a specified period of time. The difference between the contracted rate and prevailing market rate is paid in cash on the settlement date. These agreements are used to protect against, or take advantage of, future interest rate movements.

Futures: Commitments to buy or sell designated amounts of commodities, securities or currencies on a specified date at a predetermined price. Futures are traded on recognized exchanges. Gains and losses on these contracts are settled daily, based on closing market prices.

Gross Impaired Loans as a % of Loans and Acceptances: The ratio of gross impaired loans, debt investments and off-balance sheet exposures expressed as a percentage of loans and acceptances.

Hedging: Protecting against price, interest rate or foreign exchange exposures by taking positions that are expected to react to market conditions in an offsetting manner.

Impaired Loans: Loans on which the Bank no longer has reasonable assurance as to the timely collection of interest and principal, or where a contractual payment is past due for a prescribed period or the customer is declared to be bankrupt.

Leverage Ratio: The ratio of Basel III Tier 1 capital to a leverage exposure measure which includes on-balance sheet assets and off-balance sheet commitments, derivatives and securities financing transactions, as defined within the OSFI Leverage Requirements Guideline.

Scotiabank Third Quarter Report 2025 57

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MANAGEMENT'S DISCUSSION & ANALYSIS

Liquidity Coverage Ratio (LCR): The ratio of high quality liquid assets to stressed net cash outflows over a 30 calendar day time horizon, as defined within the OSFI Liquidity Adequacy Requirements Guideline.

Marked-To-Market: The valuation of certain financial instruments at fair value as of the Consolidated Statement of Financial Position date.

Market Value to Book Value Multiple: This financial valuation metric is calculated by dividing the current closing share price of the period by the book value per common share.

Net Impaired Loans as a % of Loans and Acceptances: The ratio of net impaired loans, debt investments and off-balance sheet exposures expressed as a percentage of loans and acceptances.

Net Interest Margin: Net interest margin is used to measure the return generated by the Bank's core earning assets, net of the cost of funding. Net interest margin is calculated as core net interest income divided by average core earning assets.

Net Stable Funding Ratio (NSFR): The ratio of available stable funding to required stable funding, as defined within the OSFI Liquidity Adequacy Requirements Guideline.

Net Write-offs as a % of Average Net Loans and Acceptances: The ratio of net write-offs expressed as a percentage of average net loans and acceptances.

Non-Viability Contingent Capital (NVCC): In order to qualify for inclusion in regulatory capital, all non-common Tier 1 and Tier 2 capital instruments must be capable of absorbing losses at the point of non-viability of a financial institution. This will ensure that investors in such instruments bear losses before taxpayers where the government determines that it is in the public interest to rescue a non-viable bank.

Notional Principal Amounts: The contract or principal amounts used to determine payments for certain off-balance sheet instruments and derivatives, such as FRAs, interest rate swaps and cross-currency swaps. The amounts are termed "notional" because they are not usually exchanged themselves, serving only as the basis for calculating amounts that do change hands.

Off-Balance Sheet Instruments: These are indirect credit commitments, including undrawn commitments to extend credit and derivative instruments, which are not recorded on the Bank's balance sheet under IFRS.

Operating Leverage: This financial metric measures the rate of growth in total revenue less the rate of growth in non-interest expenses.

Options: Contracts between buyer and seller giving the buyer of the option the right, but not the obligation, to buy (call) or sell (put) a specified commodity, financial instrument or currency at a set price or rate on or before a specified future date.

OSFI: The Office of the Superintendent of Financial Institutions Canada, the regulator of Canadian banks.

Price to Earnings Multiple (Trailing 4 Quarters): Closing share price at period end divided by cumulative basic earnings per common share (EPS) of the past 4 quarters.

Productivity Ratio: This ratio represents non-interest expenses as a percentage of total revenue. Management uses the productivity ratio as a measure of the Bank's efficiency.

Provision for Credit Losses (PCL) as a % of Average Net Loans and Acceptances: The ratio of PCL on loans, acceptances and off-balance sheet exposures expressed as a percentage of average net loans and acceptances.

Provision for Credit Losses (PCL) on Impaired Loans as a % of Average Net Loans and Acceptances: PCL on impaired loans ratio under IFRS 9 is calculated using PCL on impaired loans, acceptances and off-balance sheet exposures as a percentage of average net loans and acceptances.

Repos: Repos is short for "obligations related to securities sold under repurchase agreements" – a short-term transaction where the Bank sells assets, normally government bonds, to a client and simultaneously agrees to repurchase them on a specified date and at a specified price. It is a form of short-term funding.

Return on Assets (ROA): Net income expressed as a percentage of total average assets.

Return on Equity (ROE): Net income attributable to common shareholders, expressed as a percentage of average common shareholders' equity. The Bank attributes capital to its business lines on a basis that approximates 11.5% of Basel III common equity capital requirements which includes credit, market and operational risks and leverage inherent in each operating segment. Return on equity for the operating segments is calculated as a ratio of net income attributable to common shareholders of the operating segment and the capital attributed.

Return on Tangible Common Equity (ROTCE): Return on Tangible Common Equity is calculated by dividing the net income attributable to common shareholders, adjusted for the amortization of intangibles (excluding software), by average tangible common equity. Tangible common equity is defined as common shareholders' equity adjusted for goodwill and acquisition-related intangible assets (excluding software), net of deferred taxes.

Reverse Repos: Reverse repos is short for "securities purchased under resale agreements" – a short-term transaction where the Bank purchases assets, normally government bonds, from a client and simultaneously agrees to resell them on a specified date and at a specified price. It is a form of short-term collateralized lending.

Risk-Weighted Assets: Comprised of three broad categories including credit risk, market risk and operational risk, which are computed under the Basel III Framework in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023). Risk-weighted assets for credit risk are calculated using modelled parameters, formulas and risk-weight requirements as specified by the Basel III Framework. In addition, the Bank uses both internal models and standardized approaches to calculate market risk capital and standardized approaches for operational risk capital which are converted to risk-weighted assets.

Securitization: The process by which financial assets (typically loans) are transferred to a trust, which normally issues a series of different classes of asset-backed securities to investors to fund the purchase of loans.

Structured Entities: A structured entity is defined as an entity created to accomplish a narrow and well-defined objective. A structured entity may take the form of a corporation, trust, partnership or unincorporated entity. Structured entities are often created with legal arrangements that impose strict and sometimes permanent limits on the decision-making powers of their governing board, trustee or management over the operations of the entity.

Standby Letters of Credit and Letters of Guarantee: Written undertakings by the Bank, at the request of the customer, to provide assurance of payment to a third-party regarding the customer's obligations and liabilities to that third-party.

58 Scotiabank Third Quarter Report 2025

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MANAGEMENT'S DISCUSSION & ANALYSIS

Structured Credit Instruments: A wide range of financial products which includes Collateralized Debt Obligations, Collateralized Loan Obligations, Structured Investment Vehicles, and Asset-Backed Securities. These instruments represent investments in pools of credit-related assets, whose values are primarily dependent on the performance of the underlying pools.

Swaps: Interest rate swaps are agreements to exchange streams of interest payments, typically one at a floating rate, the other at a fixed rate, over a specified period of time, based on notional principal amounts. Cross-currency swaps are agreements to exchange payments in different currencies over predetermined periods of time.

Taxable Equivalent Basis (TEB): The Bank analyzes net interest income, non-interest income, and total 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. A corresponding increase is made to the provision for income taxes; hence, there is no impact on net income. 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. For purposes of segmented reporting, a segment's revenue and provision for income taxes are grossed up by the taxable equivalent amount. The elimination of the TEB gross-up is recorded in the Other segment.

Total Annual Shareholder Return (TSR): Total annual shareholder return is calculated as the overall change in share price, plus any dividends paid during the year; this sum is then divided by the share price at the beginning of the year to arrive at the TSR. Total annual shareholder return assumes reinvestment of quarterly dividends.

Total Loss Absorbing Capacity (TLAC): The aggregate of NVCC Tier 1 capital, NVCC Tier 2 capital, and other TLAC instruments that are subject to conversion in whole or in part into common shares under the CDIC Act and meet all of the eligibility criteria under the OSFI guideline – Total Loss Absorbing Capacity (September 2018).

Other TLAC Instruments include prescribed shares and liabilities that are subject to conversion into common shares pursuant to the CDIC Act and which meet all of the eligibility criteria set out in the Total Loss Absorbing Capacity (TLAC) Guidelines.

Value At Risk (VaR): An estimate of the potential loss that might result from holding a position for a specified period of time, with a given level of statistical confidence.

Yield Curve: A graph showing the term structure of interest rates, plotting the yields of similar quality bonds by term to maturity.

Scotiabank Third Quarter Report 2025 59

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MANAGEMENT'S DISCUSSION & ANALYSIS

Basel III Glossary

Credit Risk Parameters

Exposure at Default (EAD): Generally represents the expected gross exposure – outstanding amount for on-balance sheet exposure and loan equivalent amount for off-balance sheet exposure at default.

Probability of Default (PD): Measures the likelihood that a borrower will default within a one-year time horizon, expressed as a percentage.

Loss Given Default (LGD): Measures the severity of loss on a facility in the event of a borrower's default, expressed as a percentage of exposure at default.

Exposure Types

Non-retail

Corporate: Defined as a debt obligation of a corporation, partnership, or proprietorship.

Bank: Defined as a debt obligation of a bank or bank equivalent.

Sovereign: Defined as a debt obligation of a sovereign, central bank, multi development banks and public sector entities (PSEs) as defined in the OSFI Guideline – Capital Adequacy Requirements (November 2023).

Securitization: On-balance sheet investments in asset-backed securities, mortgage-backed securities, collateralized loan obligations and collateralized debt obligations, off-balance sheet liquidity lines to the Bank's own sponsored and third-party conduits and credit enhancements.

Retail

Residential Mortgage: Loans to individuals against residential property (four units or less).

Secured Lines of Credit: Revolving personal lines of credit secured by residential real estate.

Qualifying Revolving Retail Exposures: Credit cards and unsecured lines of credit for individuals.

Other Retail: All other personal loans.

Exposure Sub-types

Drawn: Outstanding amounts for loans, leases, acceptances, deposits with banks and FVOCI debt securities.

Undrawn: Unutilized portion of authorized committed credit lines.

Other Exposures

Repo-Style Transactions: Reverse repurchase agreements (reverse repos) and repurchase agreements (repos), securities lending and borrowing.

OTC Derivatives: Over-the-counter derivatives contracts refers to financial instruments which are traded through a dealer network rather than through an exchange.

Other Off-balance Sheet: Direct credit substitutes, such as standby letters of credit and guarantees, trade letters of credit, and performance letters of credit and guarantees.

Exchange-Traded Derivative Contracts: Exchange-traded derivative contracts are derivative contracts (e.g., futures contracts and options) that are transacted on an organized futures exchange. These include futures contracts (both long and short positions), purchased options and written options.

Qualifying Central Counterparty (QCCP): A licensed central counterparty is considered "qualifying" when it is compliant with the International Organization of Securities Commissions (IOSCO) standards and is able to assist clearing member banks in properly capitalizing for CCP exposures.

Asset Value Correlation Multiplier (AVC): Basel III has higher risk-weights on exposures to certain Financial Institutions (FIs) relative to the non-financial corporate sector by introducing an AVC. The correlation factor in the risk-weight formula is multiplied by this AVC factor of 1.25 for all exposures to regulated FIs whose total assets are greater than or equal to U.S. $150 billion and all exposures to unregulated FIs.

Specific Wrong-Way Risk (WWR): Specific Wrong-Way Risk arises when the exposure to a particular counterparty is positively correlated with the probability of default of the counterparty due to the nature of the transactions with the counterparty.

Basel III Regulatory Capital Floor: Since the introduction of Basel II in 2008, OSFI has prescribed a minimum regulatory capital floor for institutions that use the advanced internal ratings-based approach for credit risk. Effective Q2 2023, the capital floor add-on is determined under the Basel III Framework by comparing RWA generated for internally modelled and standardized portfolios to RWA calculated under a full standardized approach at the required capital floor calibration. A shortfall to the capital floor RWA requirement is added to the Bank's RWA.

60 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Condensed Interim Consolidated Financial Statements (unaudited)**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **62** | **[Condensed Interim Consolidated Financial Statements](#tx944686_1)** | **[Condensed Interim Consolidated Financial Statements](#tx944686_1)** |
| **67** | **[Notes to the Condensed Interim Consolidated Financial Statements](#tx944686_2)** | **[Notes to the Condensed Interim Consolidated Financial Statements](#tx944686_2)** |
|  | **67** | [**Note 1 -** Reporting entity](#tx944686_3) |
|  | **67** | [**Note 2 -** Basis of preparation](#tx944686_4) |
|  | **67** | [**Note 3 -** Material accounting policies](#tx944686_5) |
|  | **67** | [**Note 4 -** Future accounting developments](#tx944686_6) |
|  | **67** | [**Note 5 -** Cash and deposits with financial institutions](#tx944686_7) |
|  | **68** | [**Note 6 -** Investment securities](#tx944686_8) |
|  | **69** | [**Note 7 -** Loans, impaired loans and allowance for credit losses](#tx944686_9) |
|  | **79** | [**Note 8 -** Derecognition of financial assets](#tx944686_10) |

---

---

| | |
|:---|:---|
| **80** | [**Note 9 -** Investments in associates](#tx944686_11) |
| **81** | [**Note 10 -** Deposits](#tx944686_12) |
| **81** | [**Note 11 -** Capital and financing transactions](#tx944686_13) |
| **82** | [**Note 12 -** Capital management](#tx944686_14) |
| **82** | [**Note 13 -** Share-based payments](#tx944686_15) |
| **83** | [**Note 14 -** Employee benefits](#tx944686_16) |
| **83** | [**Note 15 -** Operating segments](#tx944686_17) |
| **85** | [**Note 16 -** Interest income and expense](#tx944686_18) |
| **86** | [**Note 17 -** Earnings per share](#tx944686_19) |
| **86** | [**Note 18 -** Financial instruments](#tx944686_20) |
| **93** | [**Note 19 -** Corporate income taxes](#tx944686_21) |
| **94** | [**Note 20 -** Acquisitions and divestitures](#tx944686_22) |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Scotiabank Third Quarter Report 2025 | **61** |

---

------

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Financial Position

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | As at | As at | As at |
| (Unaudited) ($ millions) | Note | July 31<br>2025 | April 30<br>2025 | October 31<br>2024 |
| Assets |  |  |  |  |
| Cash and deposits with financial institutions | 5 | $69701 | $63577 | $63860 |
| Precious metals |  | 5832 | 5971 | 2540 |
| Trading assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities |  | 125442 | 118302 | 119912 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans |  | 8097 | 7841 | 7649 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 2946 | 2844 | 2166 |
|  |  | 136485 | 128987 | 129727 |
| Securities purchased under resale agreements and securities borrowed |  | 185360 | 192632 | 200543 |
| Derivative financial instruments |  | 43801 | 47937 | 44379 |
| Investment securities | 6 | 149151 | 154291 | 152832 |
| Loans |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgages | 7 | 360937 | 359792 | 350941 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal loans | 7 | 107890 | 105953 | 106379 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit cards | 7 | 17472 | 17224 | 17374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Business and government | 7 | 282458 | 280487 | 292671 |
|  |  | 768757 | 763456 | 767365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | 7(c) | 7197 | 7084 | 6536 |
|  |  | 761560 | 756372 | 760829 |
| Other |  |  |  |  |
| Customers' liability under acceptances, net of allowance |  | 133 | 189 | 148 |
| Property and equipment |  | 4793 | 4809 | 5252 |
| Investments in associates | 9 | 6029 | 5868 | 1821 |
| Goodwill and other intangible assets |  | 16067 | 16089 | 16853 |
| Deferred tax assets |  | 3045 | 2950 | 2942 |
| Other assets |  | 32729 | 35793 | 30301 |
|  |  | 62796 | 65698 | 57317 |
| Total assets |  | $1414686 | $1415465 | $1412027 |
| Liabilities |  |  |  |  |
| Deposits |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal | 10 | $301464 | $301069 | $298821 |
| &nbsp;&nbsp;&nbsp;&nbsp;Business and government | 10 | 605934 | 604307 | 600114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial institutions | 10 | 39444 | 40467 | 44914 |
|  |  | 946842 | 945843 | 943849 |
| Financial instruments designated at fair value through profit or loss | 18(b) | 43536 | 39127 | 36341 |
| Other |  |  |  |  |
| Acceptances |  | 134 | 190 | 149 |
| Obligations related to securities sold short |  | 34675 | 36543 | 35042 |
| Derivative financial instruments |  | 52916 | 61933 | 51260 |
| Obligations related to securities sold under repurchase agreements and securities lent |  | 182223 | 177987 | 190449 |
| Subordinated debentures |  | 7604 | 7891 | 7833 |
| Other liabilities |  | 61273 | 59445 | 63028 |
|  |  | 338825 | 343989 | 347761 |
| Total liabilities |  | 1329203 | 1328959 | 1327951 |
| Equity |  |  |  |  |
| Common equity |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares | 11 | 22089 | 22138 | 22054 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings |  | 58703 | 57965 | 57751 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) |  | (5310) | (5191) | (6147) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other reserves |  | (224) | (226) | (68) |
| Total common equity |  | 75258 | 74686 | 73590 |
| Preferred shares and other equity instruments | 11 | 8544 | 10232 | 8779 |
| Total equity attributable to equity holders of the Bank |  | 83802 | 84918 | 82369 |
| Non-controlling interests in subsidiaries |  | 1681 | 1588 | 1707 |
| Total equity |  | 85483 | 86506 | 84076 |
| Total liabilities and equity |  | $1414686 | $1415465 | $1412027 |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

62 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Income

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions) | Note | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| Revenue |  |  |  |  |  |  |
| Interest income<sup>(1)</sup> |  |  |  |  |  |  |
| Loans |  | $10859 | $10922 | $12137 | $33318 | $35841 |
| Securities |  | 1921 | 1993 | 2367 | 6078 | 6947 |
| Securities purchased under resale agreements and securities borrowed |  | 717 | 661 | 413 | 1994 | 1131 |
| Deposits with financial institutions |  | 623 | 711 | 766 | 1997 | 2415 |
|  | 16 | 14120 | 14287 | 15683 | 43387 | 46334 |
| Interest expense |  |  |  |  |  |  |
| Deposits |  | 8075 | 8267 | 10106 | 25430 | 29780 |
| Subordinated debentures |  | 93 | 103 | 122 | 295 | 378 |
| Other |  | 459 | 647 | 593 | 1726 | 1847 |
|  | 16 | 8627 | 9017 | 10821 | 27451 | 32005 |
| Net interest income |  | 5493 | 5270 | 4862 | 15936 | 14329 |
| Non-interest income |  |  |  |  |  |  |
| Card revenues |  | 228 | 223 | 220 | 669 | 643 |
| Banking services fees |  | 500 | 496 | 494 | 1498 | 1471 |
| Credit fees |  | 314 | 291 | 370 | 931 | 1303 |
| Mutual funds |  | 641 | 607 | 570 | 1883 | 1659 |
| Brokerage fees |  | 353 | 349 | 333 | 1055 | 941 |
| Investment management and trust |  | 292 | 288 | 278 | 866 | 817 |
| Underwriting and advisory fees |  | 234 | 246 | 202 | 703 | 534 |
| Non-trading foreign exchange |  | 228 | 216 | 236 | 708 | 709 |
| Trading revenues |  | 463 | 405 | 370 | 1523 | 1226 |
| Net gain on sale of investment securities |  | 22 | 7 | 2 | 60 | 24 |
| Net income from investments in associated corporations |  | 157 | 159 | 54 | 429 | 157 |
| Insurance service results |  | 119 | 121 | 115 | 365 | 337 |
| Other fees and commissions |  | 388 | 391 | 308 | 1201 | 885 |
| Other |  | 54 | 11 | (50) | 111 | 109 |
|  |  | 3993 | 3810 | 3502 | 12002 | 10815 |
| Total revenue |  | 9486 | 9080 | 8364 | 27938 | 25144 |
| Provision for credit losses |  | 1041 | 1398 | 1052 | 3601 | 3021 |
|  |  | 8445 | 7682 | 7312 | 24337 | 22123 |
| Non-interest expenses |  |  |  |  |  |  |
| Salaries and employee benefits |  | 2662 | 2641 | 2455 | 8012 | 7356 |
| Premises and technology |  | 807 | 814 | 737 | 2421 | 2144 |
| Depreciation and amortization |  | 405 | 393 | 428 | 1201 | 1259 |
| Communications |  | 89 | 103 | 89 | 289 | 294 |
| Advertising and business development |  | 169 | 159 | 146 | 484 | 446 |
| Professional |  | 212 | 229 | 215 | 646 | 568 |
| Business and capital taxes |  | 177 | 171 | 167 | 532 | 521 |
| Other |  | 568 | 600 | 712 | 3105 | 1811 |
|  |  | 5089 | 5110 | 4949 | 16690 | 14399 |
| Income before taxes |  | 3356 | 2572 | 2363 | 7647 | 7724 |
| Income tax expense | 19 | 829 | 540 | 451 | 2095 | 1521 |
| Net income |  | $2527 | $2032 | $1912 | $5552 | $6203 |
| Net income attributable to non-controlling interests in subsidiaries |  | 80 | 56 | 36 | (18) | 87 |
| Net income attributable to equity holders of the Bank |  | $2447 | $1976 | $1876 | $5570 | $6116 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred shareholders and other equity instrument holders |  | 134 | 135 | 120 | 391 | 351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shareholders |  | $2313 | $1841 | $1756 | $5179 | $5765 |
| Earnings per common share (in dollars) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 17 | $1.84 | $1.48 | $1.43 | $4.14 | $4.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 17 | 1.84 | 1.48 | 1.41 | 4.02 | 4.66 |
| Dividends paid per common share (in dollars) |  | 1.10 | 1.06 | 1.06 | 3.22 | 3.18 |

---

(1) Includes interest income on financial assets measured at amortized cost and FVOCI, calculated using the effective interest method, of $13,883 for the three months ended July 31, 2025 (April 30, 2025 – $13,943; July 31, 2024 – $15,230) and for the nine months ended July 31, 2025 – $42,403 (July 31, 2024 – $44,904).

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

Scotiabank Third Quarter Report 2025 63

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Comprehensive Income

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| (Unaudited) ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| Net income | $2527 | $2032 | $1912 | $5552 | $6203 |
| Other comprehensive income (loss) |  |  |  |  |  |
| Items that will be reclassified subsequently to net income |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized foreign currency translation gains (losses): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized foreign currency translation gains (losses) | 479 | (1847) | (814) | 277 | (1813) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on hedges of net investments in foreign operations | (410) | 539 | 377 | (554) | 618 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized foreign currency translation gains (losses) | 15 | (21) | (3) | (2) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on hedges of net investments in foreign operations | (114) | 149 | 103 | (155) | 165 |
|  | 168 | (1436) | (537) | (120) | (1356) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value due to change in debt instruments measured at fair value through other comprehensive income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) in fair value | (692) | 1164 | 2151 | 612 | 2817 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net (gains) losses to net income | 935 | (1056) | (1811) | (228) | (1914) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) in fair value | (191) | 311 | 582 | 152 | 763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net (gains) losses to net income | 246 | (286) | (494) | (64) | (511) |
|  | 188 | 83 | 252 | 296 | 651 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in gains (losses) on derivative instruments designated as cash flow hedges: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on derivative instruments designated as cash flow hedges | 96 | 2522 | 2777 | 2414 | 3701 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net (gains) losses to net income | (572) | (1759) | (1114) | (1668) | (1348) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on derivative instruments designated as cash flow hedges | 2 | 758 | 773 | 728 | 1035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net (gains) losses to net income | (117) | (561) | (309) | (523) | (368) |
|  | (361) | 566 | 1199 | 541 | 1686 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net changes in finance income/(expense) from insurance contracts: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income/(expense) from insurance contracts |  | (2) | (2) | 3 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) |  | (1) |  |  | 1 |
|  |  | (1) | (2) | 3 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) from investments in associates | 43 | 110 | 1 | 91 | (2) |
| Items that will not be reclassified subsequently to net income |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in remeasurement of employee benefit plan asset and liability: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gains (losses) on employee benefit plans | 270 | (255) | 120 | 275 | (121) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 65 | (69) | 33 | 74 | (39) |
|  | 205 | (186) | 87 | 201 | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value due to change in equity instruments designated at fair value through other comprehensive income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) in fair value | 20 | 49 | 125 | 73 | 306 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | (2) | 34 | 35 | 24 | 59 |
|  | 22 | 15 | 90 | 49 | 247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value due to change in own credit risk on financial liabilities designated under the fair value option: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value due to change in own credit risk on financial liabilities designated under the fair value option | (562) | 512 | 127 | (314) | (758) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | (156) | 142 | 36 | (87) | (210) |
|  | (406) | 370 | 91 | (227) | (548) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) from investments in associates |  | 14 |  | 7 | 1 |
| Other comprehensive income (loss) | (141) | (465) | 1181 | 841 | 601 |
| Comprehensive income (loss) | $2386 | $1567 | $3093 | $6393 | $6804 |
| Comprehensive income (loss) attributable to non-controlling interests | 58 | (7) | 13 | (14) | 55 |
| Comprehensive income (loss) attributable to equity holders of the Bank | 2328 | 1574 | 3080 | 6407 | 6749 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred shareholders and other equity instrument holders | 134 | 135 | 120 | 391 | 351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shareholders | $2194 | $1439 | $2960 | $6016 | $6398 |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

64 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Changes in Equity

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 |
|  | | | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | | | | | | |
| (Unaudited) ($ millions) | Common<br>shares | Retained<br>earnings<sup>(1)</sup> | Foreign<br>currency<br>translation | Debt<br>instruments<br>FVOCI | Equity<br>instruments<br>FVOCI | Cash<br>flow<br>hedges | Other<sup>(2)</sup> | Other<br>reserves | Total<br>common<br>equity | Preferred<br>shares and<br>other<br>equity<br>instruments | Total<br>attributable<br>to equity<br>holders | Non-<br>controlling<br>interests in<br>subsidiaries | Total |
| **Balance as at October 31, 2024** | $22054 | $57751 | $(3559) | $(491) | $339 | $(2197) | $(239) | $(68) | $73590 | $8779 | $82369 | $1707 | $84076 |
| Net income |  | 5179 |  |  |  |  |  |  | 5179 | 391 | 5570 | (18) | 5552 |
| Other comprehensive income (loss) |  |  | (133) | 295 | 50 | 544 | 81 |  | 837 |  | 837 | 4 | 841 |
| **Total comprehensive income** | $– | $5179 | $(133) | $295 | $50 | $544 | $81 | $– | $6016 | $391 | $6407 | $(14) | $6393 |
| Shares/instruments issued | 94 |  |  |  |  |  |  | (6) | 88 | 1453 | 1541 |  | 1541 |
| Shares repurchased/redeemed | (59) | (186) |  |  |  |  |  |  | (245) | (1688) | (1933) |  | (1933) |
| Dividends and distributions paid to equity holders |  | (4008) |  |  |  |  |  |  | (4008) | (391) | (4399) | (63) | (4462) |
| Share-based payments<sup>(3)</sup> |  |  |  |  |  |  |  | 13 | 13 |  | 13 |  | 13 |
| Foreign currency loss on redemption of Subordinated Additional Tier 1 Capital Notes<sup>(4)</sup> |  | (22) |  |  |  |  |  |  | (22) |  | (22) |  | (22) |
| Other |  | (11) |  |  |  |  |  | (163) | (174) |  | (174) | 51 | (123) |
| **Balance as at July 31, 2025** | $22089 | $58703 | $(3692) | $(196) | $389 | $(1653) | $(158) | $(224) | $75258 | $8544 | $83802 | $1681 | $85483 |
|  | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 | For the nine months ended July 31, 2024 |
|  |  |  | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) |  |  |  |  |  |  |
| (Unaudited) ($ millions) | Common<br> shares | Retained<br> earnings<sup>(1)</sup> | Foreign<br> currency<br> translation | Debt<br> instruments<br> FVOCI | Equity<br> instruments<br> FVOCI | Cash<br> flow<br> hedges | Other<sup>(2)</sup> | Other<br> reserves | Total<br> common<br> equity | Preferred<br> shares and<br> other<br> equity<br> instruments | Total<br> attributable<br> to equity<br> holders | Non-<br> controlling<br> interests in<br> subsidiaries | Total |
| **Balance as at October 31, 2023** | $20109 | $55673 | $(1755) | $(1104) | $14 | $(4545) | $459 | $(84) | $68767 | $8075 | $76842 | $1729 | $78571 |
| Net income |  | 5765 |  |  |  |  |  |  | 5765 | 351 | 6116 | 87 | 6203 |
| Other comprehensive income (loss) |  |  | (1341) | 652 | 239 | 1692 | (609) |  | 633 |  | 633 | (32) | 601 |
| **Total comprehensive income** | $– | $5765 | $(1341) | $652 | $239 | $1692 | $(609) | $– | $6398 | $351 | $6749 | $55 | $6804 |
| Shares/instruments issued | 1440 |  |  |  |  |  |  | (1) | 1439 | 1004 | 2443 |  | 2443 |
| Shares repurchased/redeemed |  |  |  |  |  |  |  |  |  | (300) | (300) |  | (300) |
| Dividends and distributions paid to equity holders |  | (3886) |  |  |  |  |  |  | (3886) | (351) | (4237) | (73) | (4310) |
| Share-based payments<sup>(3)</sup> |  |  |  |  |  |  |  | 11 | 11 |  | 11 |  | 11 |
| Other |  | (11) |  |  |  |  |  | 7 | (4) |  | (4) | 4 |  |
| **Balance as at July 31, 2024** | $21549 | $57541 | $(3096) | $(452) | $253 | $(2853) | $(150) | $(67) | $72725 | $8779 | $81504 | $1715 | $83219 |

---

(1) Includes undistributed retained earnings of $75 (July 31, 2024 – $73) related to a foreign associated corporation, which is subject to local regulatory restriction.

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

(3) Represents amounts on account of share-based payments (refer to Note 13).

(4) Refer to Note 11 for further details on the redemption of the equity instrument.

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

Scotiabank Third Quarter Report 2025 65

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Cash Flows

---

| | | | | |
|:---|:---|:---|:---|:---|
| (Unaudited) ($ millions) | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| Sources (uses) of cash flows | July 31<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| **Cash flows from operating activities** |  |  |  |  |
| Net income | $2527 | $1912 | $5552 | $6203 |
| Adjustment for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | (5493) | (4862) | (15936) | (14329) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 405 | 428 | 1201 | 1259 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 1041 | 1052 | 3601 | 3021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-settled share-based payment expense | 2 | 1 | 13 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain on sale of investment securities | (22) | (2) | (60) | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (gain)/loss on divestitures | (23) | 136 | 1374 | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income from investments in associated corporations | (157) | (54) | (429) | (157) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 829 | 451 | 2095 | 1521 |
| Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trading assets | (7000) | (1593) | (6066) | (15818) |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under resale agreements and securities borrowed | 7982 | (206) | 15586 | 5567 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | (4615) | (7550) | (2982) | (13551) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 1418 | 11038 | 6605 | 6754 |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations related to securities sold short | (1921) | (5227) | (501) | (3890) |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations related to securities sold under repurchase agreements and securities lent | 3382 | 4387 | (8826) | 18035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net derivative financial instruments | (4925) | 2149 | 4604 | 3251 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 6565 | 637 | (6948) | (2812) |
| Interest and dividends received | 14103 | 15914 | 43932 | 46006 |
| Interest paid | (8855) | (10966) | (28440) | (31338) |
| Income tax paid | (860) | (532) | (2779) | (1385) |
| Net cash from/(used in) operating activities | 4383 | 7113 | 11596 | 8460 |
| Cash flows from investing activities |  |  |  |  |
| Interest-bearing deposits with financial institutions | (4826) | (384) | (3343) | 30818 |
| Purchase of investment securities | (14403) | (23166) | (57082) | (88194) |
| Proceeds from sale and maturity of investment securities | 19575 | 18470 | 60475 | 57231 |
| Acquisition/divestiture of subsidiaries, associated corporations or business units, net of cash acquired |  |  | (2637) |  |
| Property and equipment, net of disposals | (69) | (134) | (197) | (368) |
| Other, net | (109) | (242) | (308) | (719) |
| Net cash from/(used in) investing activities | 168 | (5456) | (3092) | (1232) |
| Cash flows from financing activities |  |  |  |  |
| Proceeds from issue of subordinated debentures |  | 1000 |  | 1000 |
| Redemption of subordinated debentures | (250) | (1500) | (250) | (3250) |
| Proceeds from preferred shares and other equity instruments issued |  |  | 1453 | 1004 |
| Redemption of preferred shares and other equity instruments | (1688) |  | (1688) | (300) |
| Proceeds from common shares issued | 10 | 483 | 94 | 1440 |
| Common shares purchased for cancellation | (240) |  | (240) |  |
| Cash dividends and distributions paid | (1501) | (1424) | (4399) | (4237) |
| Distributions to non-controlling interests | (16) | (17) | (63) | (73) |
| Payment of lease liabilities | (76) | (74) | (225) | (232) |
| Other, net | 84 | (630) | (873) | (3406) |
| Net cash from/(used in) financing activities | (3677) | (2162) | (6191) | (8054) |
| Effect of exchange rate changes on cash and cash equivalents | 38 | (11) | 1 | (94) |
| Net change in cash and cash equivalents | 912 | (516) | 2314 | (920) |
| Cash and cash equivalents at beginning of period<sup>(1)</sup> | 10808 | 9769 | 9406 | 10173 |
| Cash and cash equivalents at end of period<sup>(1)</sup> | $11720 | $9253 | $11720 | $9253 |

---

(1) Represents cash and non-interest-bearing deposits with financial institutions (refer to Note 5).

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

66 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

1. Reporting entity

The Bank of Nova Scotia (the Bank) is a chartered bank under the Bank Act (Canada) (the Bank Act). The Bank is a Schedule I bank under the Bank Act and is regulated by the Office of the Superintendent of Financial Institutions (OSFI). The Bank is a global financial services provider offering a diverse range of products and services, including personal, commercial, corporate and investment banking. The head office of the Bank is located at 1709 Hollis Street, Halifax, Nova Scotia, Canada and its executive offices are at 40 Temperance Street, Toronto, Canada. The common shares of the Bank are listed on the Toronto Stock Exchange and the New York Stock Exchange.

2. Basis of preparation

Statement of compliance

These condensed interim consolidated financial statements were prepared in accordance with IAS 34, Interim Financial Reporting, using the same accounting policies as described in Note 3 of the Bank's audited consolidated financial statements for the year ended October 31, 2024.

These condensed interim consolidated financial statements do not include all of the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These condensed interim consolidated financial statements should be read in conjunction with the Bank's audited consolidated financial statements for the year ended October 31, 2024.

The condensed interim consolidated financial statements for the quarter ended July 31, 2025 have been approved by the Board of Directors for issue on August 26, 2025.

Functional and presentation currency

These condensed interim consolidated financial statements are presented in Canadian dollars, which is the Bank's functional currency. All financial information presented in Canadian dollars has been rounded to the nearest million unless otherwise stated.

Use of estimates and judgements

The preparation of financial statements requires management to make estimates, apply judgements and make assumptions that affect the reported amount of assets and liabilities at the date of the condensed interim consolidated financial statements, and income and expenses during the reporting period. Estimates made by management are based on historical experience and other assumptions that are believed to be reasonable. Key areas where management has made difficult, complex or subjective judgements, often as a result of matters that are inherently uncertain, include those relating to the allowance for credit losses, the fair value of financial instruments (including derivatives), corporate income taxes, employee benefits, the fair value of all identifiable assets and liabilities as a result of business combinations, impairment of non-financial assets and derecognition of financial assets and liabilities. While management makes its best estimates and assumptions, actual results could differ from these estimates and assumptions.

Currently, there continues to be uncertainty surrounding U.S. trade policies and the impact of tariffs. This results in increased measurement uncertainty for estimates used in financial reporting. In particular, the allowance for credit losses, using an expected credit loss approach as required under IFRS 9, is estimated using complex models and incorporates inputs, assumptions, and techniques that require a high degree of judgement and is heavily dependent on the forecast of macroeconomic variables. Due to the ongoing uncertainty surrounding U.S. trade policy and tariffs, estimates and valuation models applied based on conditions and information existing as at July 31, 2025 may be significantly different from the actual outcome.

3. Material accounting policies

These condensed interim consolidated financial statements should be read in conjunction with the Bank's audited consolidated financial statements for the year ended October 31, 2024 included in the 2024 Annual Report.

The material accounting policies used in the preparation of the condensed interim consolidated financial statements are consistent with those as described in Note 3 of the Bank's audited consolidated financial statements for the year ended October 31, 2024.

4. Future accounting developments

There are no significant updates to the future accounting developments disclosed in Note 6 of the Bank's audited consolidated financial statements in the 2024 Annual Report.

5. Cash and deposits with financial institutions

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at |
| ($ millions) | July 31<br>2025 |  | April 30<br>2025 | October 31<br>2024 |
|  Cash and non-interest-bearing deposits with financial institutions | $11720 |  | $10808 | $9406 |
|  Interest-bearing deposits with financial institutions | 57981 |  | 52769 | 54454 |
|  Total | $69701 | (1) | $63577<sup>(1)</sup> | $63860<sup>(1)</sup> |

---

(1) Net of allowances of $3 (April 30, 2025 – $3; October 31, 2024 – $3).

The Bank is required to maintain balances with central banks, other regulatory authorities and certain counterparties. These amounted to $7,454 million (April 30, 2025 – $6,464 million; October 31, 2024 – $5,322 million) and are included above.

Scotiabank Third Quarter Report 2025 67

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

6. Investment securities

The following table presents the carrying amounts of the Bank's investment securities per measurement category.

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | October 31<br>2024 |
|  Debt investment securities measured at FVOCI | $121735 | $125483 | $118226 |
|  Debt investment securities measured at amortized cost | 24923 | 26454 | 29412 |
|  Equity investment securities designated at FVOCI | 376 | 371 | 3162 |
|  Equity investment securities measured at FVTPL | 2092 | 1954 | 2004 |
|  Debt investment securities measured at FVTPL | 25 | 29 | 28 |
|  Total investment securities | $149151 | $154291 | $152832 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Debt investment securities measured at fair value through other comprehensive income (FVOCI)

---

| | | | | |
|:---|:---|:---|:---|:---|
| As at July 31, 2025 ($ millions) | Cost | Gross<br> unrealized<br> gains | Gross<br> unrealized<br> losses | Fair value |
|  Canadian federal government issued or guaranteed debt | $22681 | $203 | $164 | $22720 |
|  Canadian provincial and municipal debt | 20311 | 222 | 158 | 20375 |
|  U.S. treasury and other U.S. agency debt | 49940 | 297 | 762 | 49475 |
|  Other foreign government debt | 25715 | 262 | 236 | 25741 |
|  Other debt | 3423 | 27 | 26 | 3424 |
|  Total | $122070 | $1011 | $1346 | $121735 |
| As at April 30, 2025 ($ millions) | Cost | Gross<br> unrealized<br> gains | Gross<br> unrealized<br> losses | Fair value |
|  Canadian federal government issued or guaranteed debt | $21899 | $349 | $98 | $22150 |
|  Canadian provincial and municipal debt | 21742 | 387 | 115 | 22014 |
|  U.S. treasury and other U.S. agency debt | 49757 | 487 | 723 | 49521 |
|  Other foreign government debt | 28300 | 314 | 259 | 28355 |
|  Other debt | 3433 | 35 | 25 | 3443 |
|  Total | $125131 | $1572 | $1220 | $125483 |
| As at October 31, 2024 ($ millions) | Cost | Gross<br> unrealized<br> gains | Gross<br> unrealized<br> losses | Fair value |
|  Canadian federal government issued or guaranteed debt | $21473 | $219 | $152 | $21540 |
|  Canadian provincial and municipal debt | 17500 | 234 | 209 | 17525 |
|  U.S. treasury and other U.S. agency debt | 47156 | 214 | 994 | 46376 |
|  Other foreign government debt | 29505 | 181 | 400 | 29286 |
|  Other debt | 3514 | 22 | 37 | 3499 |
|  Total | $119148 | $870 | $1792 | $118226 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt investment securities measured at amortized cost

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As at | As at | As at | As at | As at | As at |
|  | July 31, 2025 | July 31, 2025 | April 30, 2025 | April 30, 2025 | October 31, 2024 | October 31, 2024 |
| ($ millions) | Fair value | Carrying<br>value<sup>(1)</sup> | Fair value | Carrying<br>value<sup>(1)</sup> | Fair value | Carrying<br>value<sup>(1)</sup> |
| Canadian federal and provincial government issued or guaranteed debt | $6166 | $6110 | $7097 | $7007 | $8722 | $8721 |
| U.S. treasury and other U.S. agency debt | 15291 | 16178 | 16019 | 16828 | 17440 | 18440 |
| Other foreign government debt | 2430 | 2427 | 2421 | 2418 | 2044 | 2041 |
| Corporate debt | 213 | 208 | 207 | 201 | 216 | 210 |
| Total | $24100 | $24923 | $25744 | $26454 | $28422 | $29412 |

---

(1) Balances are net of allowances of $1 (April 30, 2025 – $1; October 31, 2024 – $1).

68 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Equity investment securities designated at fair value through other comprehensive income (FVOCI)

---

| | | | | |
|:---|:---|:---|:---|:---|
| As at July 31, 2025 ($ millions) | Cost | Gross<br> unrealized<br> gains | Gross<br> unrealized<br> losses | Fair value |
| Common shares | $172 | $205 | $1 | $376 |
| Total | $172 | $205 | $1 | $376 |
| As at April 30, 2025 ($ millions) | Cost | Gross<br> unrealized<br> gains | Gross<br> unrealized<br> losses | Fair value |
| Common shares | $216 | $186 | $31 | $371 |
| Total | $216 | $186 | $31 | $371 |
| As at October 31, 2024 ($ millions) | Cost | Gross<br> unrealized<br> gains | Gross<br> unrealized<br> losses | Fair value |
| Common shares | $2522 | $713 | $73 | $3162 |
| Total | $2522 | $713 | $73 | $3162 |

---

Dividend income earned on equity securities designated at FVOCI of $1 million for the three months ended July 31, 2025 (April 30, 2025 – $9 million; July 31, 2024 – $21 million) and for the nine months ended July 31, 2025 – $46 million (July 31, 2024 – $101 million) has been recognized in interest income.

During the three months ended July 31, 2025, the Bank has disposed of certain equity securities designated at FVOCI with a fair value of $25 million (April 30, 2025 – $2 million; July 31, 2024 – $0.2 million) and for the nine months ended July 31, 2025 – $1,839 million (July 31, 2024 – $938 million) for economic reasons and according to its investment strategy. This has resulted in a realized loss of $27 million in the three months ended July 31, 2025 (April 30, 2025 – realized gain of $0.02 million; July 31, 2024 – realized gain of $0.2 million) and for the nine months ended July 31, 2025 – realized gain of $512 million (July 31, 2024 – realized gain of $21 million).

7. Loans, impaired loans and allowance for credit losses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Loans at amortized cost

---

| | | | |
|:---|:---|:---|:---|
|  | As at | As at | As at |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 |
| ($ millions) | Gross<br>carrying<br>amount | Allowance<br>for credit<br>losses | Net<br>carrying<br>amount |
| Residential mortgages | $360937 | $1430 | $359507 |
| Personal loans | 107890 | 2387 | 105503 |
| Credit cards | 17472 | 1250 | 16222 |
| Business and government | 282458 | 2130 | 280328 |
| Total | $768757 | $7197 | $761560 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As at | As at | As at | As at | As at | As at |
|  | April 30, 2025 | April 30, 2025 | April 30, 2025 | October 31, 2024 | October 31, 2024 | October 31, 2024 |
| ($ millions) | Gross<br> carrying<br> amount | Allowance<br> for credit<br> losses | Net<br> carrying<br> amount | Gross<br> carrying<br> amount | Allowance<br> for credit<br> losses | Net<br> carrying<br> amount |
| Residential mortgages | $359792 | $1378 | $358414 | $350941 | $1208 | $349733 |
| Personal loans | 105953 | 2379 | 103574 | 106379 | 2319 | 104060 |
| Credit cards | 17224 | 1235 | 15989 | 17374 | 1160 | 16214 |
| Business and government | 280487 | 2092 | 278395 | 292671 | 1849 | 290822 |
| Total | $763456 | $7084 | $756372 | $767365 | $6536 | $760829 |

---

Scotiabank Third Quarter Report 2025 69

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Impaired loans<sup>(1)</sup>

---

| | | | |
|:---|:---|:---|:---|
|  | As at | As at | As at |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 |
| ($ millions) | Gross<br>impaired<br>loans | Allowance<br>for credit<br>losses | Net<br>carrying<br>amount |
| Residential mortgages | $2659 | $798 | $1861 |
| Personal loans | 1048 | 600 | 448 |
| Credit cards |  |  |  |
| Business and government | 3183 | 836 | 2347 |
| Total | $6890 | $2234 | $4656 |
| By geography: |  |  |  |
| Canada | $2244 | $662 | $1582 |
| United States |  |  |  |
| Mexico | 1446 | 511 | 935 |
| Peru | 771 | 369 | 402 |
| Chile | 1353 | 321 | 1032 |
| Colombia | 332 | 117 | 215 |
| Other international | 744 | 254 | 490 |
| Total | $6890 | $2234 | $4656 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As at | As at | As at | As at | As at | As at |
|  | April 30, 2025 | April 30, 2025 | April 30, 2025 | October 31, 2024 | October 31, 2024 | October 31, 2024 |
| ($ millions) | Gross<br> impaired<br> loans | Allowance<br> for credit<br> losses | Net<br> carrying<br> amount | Gross<br> impaired<br> loans | Allowance<br> for credit<br> losses | Net<br> carrying<br> amount |
| Residential mortgages | $2579 | $748 | $1831 | $2372 | $645 | $1727 |
| Personal loans | 1060 | 617 | 443 | 1117 | 621 | 496 |
| Credit cards |  |  |  |  |  |  |
| Business and government | 3210 | 836 | 2374 | 3250 | 788 | 2462 |
| Total | $6849 | $2201 | $4648 | $6739 | $2054 | $4685 |
| By geography: |  |  |  |  |  |  |
| Canada | $2273 | $682 | $1591 | $2158 | $569 | $1589 |
| United States | 64 | 23 | 41 | 109 | 22 | 87 |
| Mexico | 1386 | 460 | 926 | 1343 | 424 | 919 |
| Peru | 716 | 361 | 355 | 715 | 385 | 330 |
| Chile | 1333 | 307 | 1026 | 1249 | 281 | 968 |
| Colombia | 336 | 116 | 220 | 322 | 109 | 213 |
| Other international | 741 | 252 | 489 | 843 | 264 | 579 |
| Total | $6849 | $2201 | $4648 | $6739 | $2054 | $4685 |

---

(1) Interest income recognized on impaired loans during the three months ended July 31, 2025 was $22 (April 30, 2025 – $24 ; October 31, 2024 – $22).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Allowance for credit losses

(i) Key inputs and assumptions

The Bank's allowance for credit losses is measured using a three-stage approach based on the extent of credit deterioration since origination. The calculation of the Bank's allowance for credit losses is an output of a set of complex models with a number of underlying assumptions regarding the choice of variable inputs and their interdependencies. Some of the key drivers include the following:

• Changes in risk ratings of the borrower or instrument reflecting changes in their credit quality;

• Changes in the volumes of transactions;

• Changes in the forward-looking macroeconomic environment reflected in the variables used in the models such as GDP growth, unemployment rates, commodity prices, interest rates, and house price indices, which are closely related with credit losses in the relevant portfolio;

• Changes in macroeconomic scenarios and the probability weights assigned to each scenario; and

• Borrower migration between the three stages.

The Bank determines its allowance for credit losses using four probability-weighted forward-looking scenarios (base case, optimistic, pessimistic and very pessimistic).

The Bank considers both internal and external sources of information and data to achieve unbiased projections and forecasts in determining the allowance for credit losses. The Bank prepares the scenarios using forecasts generated by Scotiabank Economics (SE). The forecasts are generated using models whose outputs are modified by SE as necessary to formulate a 'base case' view of the most probable future direction of economic developments. The development of the base case and alternative scenarios is overseen by a governance committee that consists of internal stakeholders from across the Bank. The final base case and alternative scenarios reflect significant review and oversight, and incorporate judgement both in the determination of the scenarios' forecasts and the probability weights that are assigned to them.

70 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(ii) Key macroeconomic variables

The inputs and models used for calculating expected credit losses may not always capture all characteristics of the market at the date of the financial statements. Qualitative adjustments or overlays may be made for certain portfolios or geographies as temporary adjustments in circumstances where, in the Bank's view, the inputs, assumptions, and/or modelling techniques do not capture all relevant risk factors, including the emergence of economic or geopolitical events, up to the date of the financial statements. As required under IFRS 9, the allowance for credit losses at each reporting period must be based on inputs, assumptions and information available up to that date.

The Bank has generated a forward-looking base case scenario and three alternate forward-looking scenarios (one optimistic and two pessimistic) as key inputs into the expected credit loss provisioning models. Given the uncertainty surrounding U.S. trade policies and the direction of tariffs, the scenarios this quarter have varying assumptions of imposed tariffs. The base case scenario assumes tariffs announced and implemented, avoiding speculation on future announcements, including potential trade deals and tariff pauses. Differing assumptions are reflected in the alternate scenarios described below. As new information comes to light in future quarters, the scenarios and assumptions will be updated accordingly.

The current quarter's base case assumes lower trade tensions than in the prior quarter's base case. However, uncertainty originating from the U.S. is still impacting its domestic and the global economic outlook. We forecast U.S. economic growth to slow in 2025, and further in 2026, due to the rise in import tariffs, but to post stronger than previously expected growth over this period, thanks to an upward revision to its assumed performance for the first half of this year and lower trade tensions. Despite softer stagflation headwinds from reduced trade tensions, our assumption about inflationary pressures is unchanged based on survey information and inflation figures from consumer price reports. We expect the U.S. monetary policy rate to stay constant throughout fiscal 2025 and to start declining in Q1 2026, the same profile as in our previous base case, consistent with our unchanged view on inflation pressures. Canada's economy is also expected to slow over the 2025-2026 period in line with softening U.S. economic growth, though to a lesser extent than previously projected, supported by the upward revision to U.S. growth.

However, the gains in 2025 are overshadowed by a weaker than assumed performance in the first half of the year. Consequently, Canada's economy will expand at a modestly slower pace than previously expected in 2025, but by more in 2026 as the drag from the early 2025 headwinds fades. Stronger economic growth expected for the second half of 2025, as well as recent CPI reports showing core inflation indicators at or slightly above the upper bound of the Bank of Canada inflation control range, are signaling stronger than previously assumed inflation pressures in Canada. This contributes to raising the monetary policy rate profile by 25 basis points in the second half of 2026 compared to last quarter's base case.

The optimistic scenario features somewhat stronger economic activity relative to the base case. The pessimistic scenario features a negative demand type shock with globally tighter financial conditions, weaker growth and inflation, and lower monetary policy rates than in the base case scenario. It also assumes a combination of U.S. imposed tariffs on world economies, including an effective tariff of 7.5% on imports from Canada and Mexico while facing no retaliation from these countries. The very pessimistic scenario features a strong stagflationary impulse that leads to a protracted period of financial market uncertainty. It also assumes U.S. imposed tariffs with a magnitude about three times that of the pessimistic scenario. Here, all countries retaliate. This results in higher inflation, requiring central banks to raise their policy rates to higher levels than in the base case in order to bring inflation under control, which is dampening economic activity.

Scotiabank Third Quarter Report 2025 71

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following tables show certain key macroeconomic variables used to calculate the modelled estimate for the allowance for credit losses. Further changes in these variables up to the date of the financial statements are incorporated through expert credit judgement. For the base case, optimistic and pessimistic scenarios, the projections are provided for the next 12 months and for the remaining forecast period, which represents a medium-term view.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Base Case Scenario | Base Case Scenario | Alternative Scenario<br>Optimistic | Alternative Scenario<br>Optimistic | Alternative Scenario<br>Pessimistic | Alternative Scenario<br>Pessimistic | Alternative Scenario<br>Very Pessimistic | Alternative Scenario<br>Very Pessimistic |
| As at July 31, 2025 | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period |
|  Canada |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 1 | 2.1 | 1.8 | 3 | -0.9 | 2.5 | -4.3 | 3.2 |
|  Consumer price index, y/y % | 2 | 2.1 | 2.1 | 2.6 | 1.6 | 1.9 | 5 | 2.3 |
|  Unemployment rate, average % | 7.2 | 6.1 | 7 | 5 | 8.2 | 6.5 | 11.3 | 7.2 |
|  Bank of Canada overnight rate target, average % | 2.6 | 2.5 | 2.9 | 3.4 | 2.4 | 2.3 | 3.2 | 2.9 |
|  HPI - Housing Price Index, y/y % change | -2.4 | 6.7 | -2 | 8.1 | -5.2 | 7.1 | -8.8 | 6.7 |
|  USD/CAD exchange rate, average | 1.34 | 1.30 | 1.33 | 1.28 | 1.38 | 1.29 | 1.47 | 1.30 |
|  U.S. |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 0.9 | 2.3 | 1.4 | 3.3 | -1 | 2.8 | -3.8 | 3.4 |
|  Consumer price index, y/y % | 2.3 | 2.4 | 2.4 | 2.7 | 2.4 | 2.3 | 5.5 | 2.6 |
|  Target federal funds rate, upper limit, average % | 4.3 | 2.9 | 4.5 | 3.4 | 4.3 | 2.7 | 5.1 | 3.4 |
|  Unemployment rate, average % | 4.7 | 4.6 | 4.6 | 4.3 | 5.9 | 5 | 8.4 | 5.5 |
|  Mexico |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | -1.1 | 2.3 | -0.2 | 3.2 | -2.8 | 2.7 | -6 | 3.4 |
|  Unemployment rate, average % | 3.6 | 3.9 | 3.4 | 3.3 | 4 | 4 | 6.3 | 4.9 |
|  Chile |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 2.5 | 2.1 | 3.9 | 3.1 | 0.9 | 2.6 | -3.2 | 3.5 |
|  Unemployment rate, average % | 8 | 6.9 | 7.7 | 6.3 | 8.9 | 7 | 11.1 | 7.4 |
|  Peru |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 2.7 | 3.1 | 3.6 | 4.3 | 0.9 | 3.5 | -0.9 | 4.1 |
|  Unemployment rate, average % | 5.8 | 6.1 | 5.5 | 5.2 | 6.6 | 6.4 | 10.4 | 7.6 |
|  Colombia |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 2.7 | 2.7 | 3.7 | 3.7 | 0.9 | 3 | -1 | 3.6 |
|  Unemployment rate, average % | 10.1 | 9.9 | 9.7 | 9 | 11.4 | 10.4 | 17.9 | 12.4 |
|  Caribbean |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 3.6 | 3.9 | 4.3 | 4.8 | 2.3 | 4.3 | 0.5 | 4.7 |
|  Global |  |  |  |  |  |  |  |  |
|  WTI oil price, average USD/bbl | 60 | 65 | 63 | 77 | 54 | 61 | 46 | 56 |
|  Copper price, average USD/lb | 4.22 | 4.76 | 4.30 | 5.13 | 4.00 | 4.69 | 3.67 | 4.55 |
|  Global GDP, y/y % change | 2.3 | 2.7 | 2.9 | 3.6 | 0.7 | 3 | -1.9 | 3.6 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Base Case Scenario | Base Case Scenario | Alternative Scenario<br>Optimistic | Alternative Scenario<br>Optimistic | Alternative Scenario<br>Pessimistic | Alternative Scenario<br>Pessimistic | Alternative Scenario<br>Very Pessimistic | Alternative Scenario<br>Very Pessimistic |
| As at April 30, 2025 | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period |
|  Canada |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 1.2 | 2.0 | 2.0 | 2.7 | -1.6 | 2.5 | -4.4 | 3.0 |
|  Consumer price index, y/y % | 2.1 | 2.2 | 2.1 | 2.5 | 1.3 | 1.8 | 5.3 | 2.3 |
|  Unemployment rate, average % | 7.4 | 6.2 | 6.7 | 5.3 | 8.4 | 6.9 | 11.1 | 7.4 |
|  Bank of Canada overnight rate target, average % | 2.7 | 2.4 | 2.8 | 3.3 | 2.4 | 2.1 | 3.5 | 3.2 |
|  HPI - Housing Price Index, y/y % change | 2.0 | 4.3 | 3.3 | 5.7 | -2.0 | 5.2 | -4.5 | 4.6 |
|  USD/CAD exchange rate, average | 1.39 | 1.32 | 1.44 | 1.34 | 1.54 | 1.33 | 1.60 | 1.35 |
|  U.S. |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 0.6 | 2.1 | 1.8 | 2.8 | -1.9 | 2.9 | -4.0 | 3.2 |
|  Consumer price index, y/y % | 2.9 | 2.4 | 2.8 | 2.8 | 2.8 | 2.4 | 6.2 | 2.7 |
|  Target federal funds rate, upper limit, average % | 4.4 | 3.3 | 4.1 | 3.8 | 4.0 | 2.8 | 4.9 | 39 |
|  Unemployment rate, average % | 5.1 | 4.7 | 4.2 | 3.9 | 6.0 | 4.8 | 7.9 | 5.1 |
|  Mexico |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | -1.0 | 2.1 | 1.1 | 2.6 | -2.4 | 2.5 | -5.0 | 3.0 |
|  Unemployment rate, average % | 3.4 | 3.9 | 3.3 | 3.4 | 4.3 | 4.1 | 6.4 | 4.9 |
|  Chile |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 2.8 | 2.2 | 4.3 | 3.2 | 0.2 | 2.9 | -3.4 | 3.6 |
|  Unemployment rate, average % | 8.0 | 7.0 | 7.7 | 6.4 | 9.4 | 7.2 | 11.4 | 7.6 |
|  Peru |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 2.8 | 3.0 | 4.0 | 4.1 | -0.2 | 3.7 | -1.1 | 4.1 |
|  Unemployment rate, average % | 6.0 | 6.1 | 5.7 | 5.2 | 7.4 | 6.6 | 11.2 | 7.7 |
|  Colombia |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 2.7 | 2.7 | 3.5 | 3.7 | -0.3 | 3.4 | -1.3 | 3.8 |
|  Unemployment rate, average % | 10.6 | 9.9 | 10.3 | 9.1 | 12.9 | 10.8 | 19.6 | 12.6 |
|  Caribbean |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 3.8 | 3.9 | 4.3 | 4.7 | 1.5 | 4.5 | -0.4 | 4.9 |
|  Global |  |  |  |  |  |  |  |  |
|  WTI oil price, average USD/bbl | 60 | 67 | 67 | 79 | 53 | 59 | 47 | 56 |
|  Copper price, average USD/lb | 4.03 | 4.99 | 4.40 | 5.40 | 3.90 | 4.87 | 3.68 | 4.76 |
|  Global GDP, y/y % change | 2.3 | 2.7 | 3.6 | 3.4 | 0.3 | 3.2 | -1.8 | 3.6 |

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72 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Base Case Scenario | Base Case Scenario | Alternative Scenario<br> Optimistic | Alternative Scenario<br> Optimistic | Alternative Scenario<br> Pessimistic | Alternative Scenario<br> Pessimistic | Alternative Scenario<br> Very Pessimistic | Alternative Scenario<br> Very Pessimistic |
| As at October 31, 2024 | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period | Next 12<br> Months | Remaining<br> Forecast<br> Period |
|  Canada |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 1.8 | 2.2 | 2.8 | 3.1 | -1.6 | 2.9 | -4.4 | 3.4 |
|  Consumer price index, y/y % | 2.2 | 2.0 | 2.4 | 2.5 | 1.6 | 1.7 | 5.8 | 2.2 |
|  Unemployment rate, average % | 6.7 | 6.0 | 6.3 | 5.0 | 8.4 | 6.9 | 11.1 | 7.3 |
|  Bank of Canada overnight rate target, average % | 3.3 | 2.6 | 3.5 | 3.6 | 2.9 | 2.0 | 4.0 | 3.2 |
|  HPI - Housing Price Index, y/y % change | 1.6 | 4.2 | 2.4 | 5.5 | -3.7 | 4.8 | -5.8 | 4.1 |
|  USD/CAD exchange rate, average | 1.34 | 1.30 | 1.33 | 1.28 | 1.43 | 1.28 | 1.49 | 1.30 |
|  U.S. |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 1.6 | 2.2 | 2.3 | 3.1 | -1.6 | 3.0 | -4.0 | 3.4 |
|  Consumer price index, y/y % | 2.4 | 2.3 | 2.6 | 2.7 | 1.3 | 2.0 | 6.2 | 2.5 |
|  Target federal funds rate, upper limit, average % | 4.1 | 2.9 | 4.1 | 3.4 | 3.6 | 1.8 | 4.8 | 3.4 |
|  Unemployment rate, average % | 4.3 | 4.3 | 4.2 | 3.9 | 6.0 | 4.9 | 8.1 | 5.2 |
|  Mexico |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 1.3 | 2.1 | 2.6 | 2.9 | -0.8 | 2.6 | -2.9 | 3.2 |
|  Unemployment rate, average % | 3.3 | 3.9 | 3.0 | 3.1 | 4.1 | 4.0 | 6.3 | 4.9 |
|  Chile |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 3.0 | 2.2 | 4.6 | 3.2 | 0.1 | 3.0 | -3.6 | 3.8 |
|  Unemployment rate, average % | 7.9 | 6.7 | 7.6 | 6.0 | 9.5 | 7.0 | 11.5 | 7.4 |
|  Peru |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 2.6 | 3.4 | 3.6 | 4.5 | 1.5 | 3.7 | -0.5 | 4.3 |
|  Unemployment rate, average % | 6.7 | 6.2 | 6.2 | 5.2 | 8.1 | 6.5 | 11.8 | 8.0 |
|  Colombia |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 2.6 | 2.7 | 3.7 | 3.8 | 1.4 | 3.1 | -0.5 | 3.6 |
|  Unemployment rate, average % | 11.1 | 10.1 | 10.7 | 9.1 | 13.5 | 10.6 | 19.8 | 13.0 |
|  Caribbean |  |  |  |  |  |  |  |  |
|  Real GDP growth, y/y % change | 3.6 | 3.8 | 4.2 | 4.5 | 2.5 | 4.2 | 0.6 | 4.7 |
|  Global |  |  |  |  |  |  |  |  |
|  WTI oil price, average USD/bbl | 73 | 69 | 78 | 83 | 60 | 60 | 53 | 58 |
|  Copper price, average USD/lb | 4.99 | 5.29 | 5.16 | 5.86 | 4.50 | 5.13 | 4.32 | 5.02 |
|  Global GDP, y/y % change | 3.4 | 2.4 | 4.3 | 3.3 | 0.6 | 3.1 | -1.5 | 3.5 |

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(iii) Sensitivity

Relative to the base case scenario, the weighting of these multiple scenarios increased the reported allowance for credit losses for financial assets in Stage 1 and Stage 2 to $5,152 million (April 30, 2025 – $5,075 million; October 31, 2024 – $4,682 million) from $4,878 million (April 30, 2025 – $4,774 million; October 31, 2024 – $4,316 million).

The Bank enhanced certain of its IFRS 9 models in the current year and prior year, with the enhanced models exhibiting higher sensitivity to changes in the macroeconomic outlook. If the Bank was to apply a probability-weighted average of its two pessimistic scenarios for the measurement of allowance for credit losses for such assets, the allowance for credit losses on performing financial instruments would be $721 million higher than the reported allowance for credit losses as at July 31, 2025 (April 30, 2025 – $1,081 million; October 31, 2024 – $942 million), excluding the consideration of changes in qualitative overlays or expert credit judgement. Actual results will differ as this does not consider the migration of exposures or incorporate changes that would occur in the portfolio due to risk mitigation actions and other factors.

Under the Bank's current probability-weighted scenarios, if all performing financial assets were in Stage 1, reflecting a 12 month expected loss period, the allowance for credit losses would be $891 million (April 30, 2025 – $822 million; October 31, 2024 – $693 million) lower than the reported allowance for credit losses on performing financial assets.

(iv) Allowance for credit losses

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  Allowance for credit losses | Allowance for credit losses | Allowance for credit losses | Allowance for credit losses | Allowance for credit losses | Allowance for credit losses |
| ($ millions) | Balance as at<br> November 1,<br> 2024 | Provision<br>for<br> credit losses<sup>(1)</sup> | Net write-<br>offs | Other, including<br> foreign currency<br> adjustment | **Balance as at**<br> **July 31,**<br> **2025** |
|  Residential mortgages | $1208 | $270 | $(72) | $24 | $1430 |
|  Personal loans | 2319 | 1499 | (1353) | (78) | 2387 |
|  Credit cards | 1160 | 1029 | (942) | 3 | 1250 |
|  Business and government | 2036 | 817 | (466) | (83) | 2304 |
|  | $6723 | $3615 | $(2833) | $(134) | $7371 |
|  Presented as: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses on loans | $6536 |  |  |  | $7197 |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses on acceptances<sup>(2)</sup> | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses on off-balance sheet exposures<sup>(3)</sup> | 186 |  |  |  | 173 |

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(1) Excludes amounts associated with other assets of $(14) . The provision for credit losses, net of these amounts, is $3,601.

(2) Allowance for credit losses on acceptances is recorded against the financial asset in the Consolidated Statement of Financial Position.

(3) Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position.

Scotiabank Third Quarter Report 2025 73

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ($ millions) | Balance as at<br> November 1,<br> 2023 | Provision<br>for<br> credit losses<sup>(1)</sup> | Net write-offs | Other, including<br> foreign currency<br> adjustment | Balance as at<br> July 31,<br> 2024 |
|  Residential mortgages | $1084 | $214 | $(61) | $(27) | $1210 |
|  Personal loans | 2414 | 1427 | (1375) | (94) | 2372 |
|  Credit cards | 1237 | 822 | (857) | (12) | 1190 |
|  Business and government | 1876 | 568 | (265) | (106) | 2073 |
|  | $6611 | $3031 | $(2558) | $(239) | $6845 |
|  Presented as: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses on loans | $6372 |  |  |  | $6582 |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses on acceptances<sup>(2)</sup> | 90 |  |  |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses on off-balance sheet<br> exposures<sup>(3)</sup> | 149 |  |  |  | 215 |

---

(1) Excludes amounts associated with other assets and reversal of impairment losses of $(10) . The provision for credit losses, net of these amounts, is $3,021.

(2) Allowance for credit losses on acceptances is recorded against the financial asset in the Consolidated Statement of Financial Position.

(3) Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position.

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| | | | | |
|:---|:---|:---|:---|:---|
| Allowance for credit losses on loans | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
| ($ millions) | Stage 1 | Stage 2 | Stage 3 | Total |
|  Residential mortgages | $185 | $447 | $798 | $1430 |
|  Personal loans | 564 | 1223 | 600 | 2387 |
|  Credit cards | 309 | 941 |  | 1250 |
|  Business and government | 699 | 595 | 836 | 2130 |
|  Total<sup>(1)</sup> | $1757 | $3206 | $2234 | $7197 |

---

(1) Excludes allowance for credit losses of $189 for other financial assets including acceptances, investment securities, deposits with banks, off-balance sheet credit risks and reverse repos.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| ($ millions) | Stage 1 | Stage 2 | Stage 3 | Total |
|  Residential mortgages | $165 | $398 | $645 | $1208 |
|  Personal loans | 544 | 1154 | 621 | 2319 |
|  Credit cards | 288 | 872 |  | 1160 |
|  Business and government | 586 | 475 | 788 | 1849 |
|  Total<sup>(1)</sup> | $1583 | $2899 | $2054 | $6536 |

---

(1) Excludes allowance for credit losses of $200 for other financial assets including acceptances, investment securities, deposits with banks, off-balance sheet credit risks and reverse repos.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | As at July 31, 2024 | As at July 31, 2024 | As at July 31, 2024 | As at July 31, 2024 |
| ($ millions) | Stage 1 | Stage 2 | Stage 3 | Total |
|  Residential mortgages | $201 | $416 | $593 | $1210 |
|  Personal loans | 553 | 1160 | 659 | 2372 |
|  Credit cards | 303 | 887 |  | 1190 |
|  Business and government | 589 | 433 | 788 | 1810 |
|  Total<sup>(1)</sup> | $1646 | $2896 | $2040 | $6582 |

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(1) Excludes allowance for credit losses of $278 for other financial assets including acceptances, investment securities, deposits with banks, off-balance sheet credit risks and reverse repos.

74 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the changes to the allowance for credit losses on loans.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at and for the three months ended | As at and for the three months ended | As at and for the three months ended | As at and for the three months ended | As at and for the three months ended | As at and for the three months ended | As at and for the three months ended | As at and for the three months ended |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2024 | July 31, 2024 | July 31, 2024 | July 31, 2024 |
| ($ millions) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| **Retail loans:** |  |  |  |  |  |  |  |  |
| **Residential mortgages** |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $178 | $452 | $748 | $1378 | $259 | $349 | $580 | $1188 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (73) | 21 | 118 | 66 | (86) | 89 | 83 | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 11 |  |  | 11 | 12 |  |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (2) | (10) |  | (12) | (3) | (6) |  | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies |  |  |  |  | (22) | 3 |  | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 80 | (64) | (16) |  | 59 | (44) | (15) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (10) | 69 | (59) |  | (9) | 51 | (42) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 |  | (26) | 26 |  |  | (20) | 20 |  |
| Gross write-offs |  |  | (39) | (39) |  |  | (23) | (23) |
| Recoveries |  |  | 7 | 7 |  |  | 6 | 6 |
| Foreign exchange and other movements | 1 | 5 | 13 | 19 | (9) | (6) | (16) | (31) |
| Balance at end of period | $185 | $447 | $798 | $1430 | $201 | $416 | $593 | $1210 |
| Personal loans |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $534 | $1228 | $617 | $2379 | $626 | $1058 | $656 | $2340 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (136) | 201 | 318 | 383 | (182) | 284 | 378 | 480 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 94 |  |  | 94 | 89 |  |  | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (23) | (34) |  | (57) | (26) | (54) |  | (80) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies | 3 | (4) |  | (1) | (68) | 96 |  | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 146 | (142) | (4) |  | 183 | (178) | (5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (54) | 87 | (33) |  | (57) | 90 | (33) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 | (2) | (115) | 117 |  | (4) | (128) | 132 |  |
| Gross write-offs |  |  | (508) | (508) |  |  | (551) | (551) |
| Recoveries |  |  | 85 | 85 |  |  | 88 | 88 |
| Foreign exchange and other movements | 2 | 2 | 8 | 12 | (8) | (8) | (6) | (22) |
| Balance at end of period | $564 | $1223 | $600 | $2387 | $553 | $1160 | $659 | $2372 |
| Credit cards |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $292 | $943 | $– | $1235 | $357 | $882 | $– | $1239 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (67) | 168 | 188 | 289 | (101) | 161 | 214 | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 41 |  |  | 41 | 31 |  |  | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (10) | (12) |  | (22) | (13) | (15) |  | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies | 2 | (3) |  | (1) | (38) | 21 |  | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 86 | (86) |  |  | 99 | (99) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (39) | 39 |  |  | (30) | 30 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 |  | (102) | 102 |  |  | (95) | 95 |  |
| Gross write-offs |  |  | (368) | (368) |  |  | (359) | (359) |
| Recoveries |  |  | 73 | 73 |  |  | 55 | 55 |
| Foreign exchange and other movements | 4 | (6) | 5 | 3 | (2) | 2 | (5) | (5) |
| Balance at end of period | $309 | $941 | $– | $1250 | $303 | $887 | $– | $1190 |
| Total retail loans |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $1004 | $2623 | $1365 | $4992 | $1242 | $2289 | $1236 | $4767 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (276) | 390 | 624 | 738 | (369) | 534 | 675 | 840 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 146 |  |  | 146 | 132 |  |  | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (35) | (56) |  | (91) | (42) | (75) |  | (117) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies | 5 | (7) |  | (2) | (128) | 120 |  | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 312 | (292) | (20) |  | 341 | (321) | (20) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (103) | 195 | (92) |  | (96) | 171 | (75) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 | (2) | (243) | 245 |  | (4) | (243) | 247 |  |
| Gross write-offs |  |  | (915) | (915) |  |  | (933) | (933) |
| Recoveries |  |  | 165 | 165 |  |  | 149 | 149 |
| Foreign exchange and other movements | 7 | 1 | 26 | 34 | (19) | (12) | (27) | (58) |
| Balance at end of period | $1058 | $2611 | $1398 | $5067 | $1057 | $2463 | $1252 | $4772 |
| Non-retail loans: |  |  |  |  |  |  |  |  |
| Business and government |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $820 | $611 | $836 | $2267 | $653 | $447 | $798 | $1898 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (50) | 69 | 213 | 232 | (146) | 13 | 144 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 308 |  |  | 308 | 204 |  |  | 204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (245) | (40) | (9) | (294) | (187) | (12) | (4) | (203) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies |  |  |  |  | 200 | 37 |  | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 29 | (29) |  |  | 37 | (37) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (21) | 21 |  |  | (21) | 22 | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 | (1) | (13) | 14 |  |  | (4) | 4 |  |
| Gross write-offs |  |  | (210) | (210) |  |  | (93) | (93) |
| Recoveries |  |  | 12 | 12 |  |  | 12 | 12 |
| Foreign exchange and other movements | 5 | 3 | (20) | (12) | (2) | (3) | (36) | (41) |
| Balance at end of period including off-balance sheet exposures | $845 | $622 | $836 | $2303 | $738 | $463 | $824 | $2025 |
| Less: Allowance for credit losses on off-balance sheet exposures<sup>(2)</sup> | (146) | (27) |  | (173) | (149) | (30) | (36) | (215) |
| Balance at end of period<sup>(2)</sup> | $699 | $595 | $836 | $2130 | $589 | $433 | $788 | $1810 |

---

Scotiabank Third Quarter Report 2025 75

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at and for the nine months ended | As at and for the nine months ended | As at and for the nine months ended | As at and for the nine months ended | As at and for the nine months ended | As at and for the nine months ended | As at and for the nine months ended | As at and for the nine months ended |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2024 | July 31, 2024 | July 31, 2024 | July 31, 2024 |
| ($ millions) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| **Retail loans:** |  |  |  |  |  |  |  |  |
| **Residential mortgages** |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $165 | $398 | $645 | $1208 | $265 | $321 | $498 | $1084 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (172) | 123 | 319 | 270 | (194) | 155 | 263 | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 36 |  |  | 36 | 32 |  |  | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (6) | (23) |  | (29) | (7) | (16) |  | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies | (2) | (14) | 9 | (7) | (22) | 3 |  | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 196 | (156) | (40) |  | 164 | (124) | (40) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (33) | 189 | (156) |  | (30) | 148 | (118) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 |  | (75) | 75 |  |  | (62) | 62 |  |
| Gross write-offs |  |  | (91) | (91) |  |  | (77) | (77) |
| Recoveries |  |  | 19 | 19 |  |  | 16 | 16 |
| Foreign exchange and other movements | 1 | 5 | 18 | 24 | (7) | (9) | (11) | (27) |
| Balance at end of period | $185 | $447 | $798 | $1430 | $201 | $416 | $593 | $1210 |
| Personal loans |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $544 | $1154 | $621 | $2319 | $647 | $1103 | $664 | $2414 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (464) | 797 | 1079 | 1412 | (553) | 759 | 1134 | 1340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 288 |  |  | 288 | 279 |  |  | 279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (66) | (110) |  | (176) | (73) | (147) |  | (220) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies | 3 | (33) | 5 | (25) | (68) | 96 |  | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 457 | (445) | (12) |  | 523 | (512) | (11) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (160) | 249 | (89) |  | (175) | 259 | (84) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 | (6) | (361) | 367 |  | (11) | (381) | 392 |  |
| Gross write-offs |  |  | (1583) | (1583) |  |  | (1591) | (1591) |
| Recoveries |  |  | 230 | 230 |  |  | 216 | 216 |
| Foreign exchange and other movements | (32) | (28) | (18) | (78) | (16) | (17) | (61) | (94) |
| Balance at end of period | $564 | $1223 | $600 | $2387 | $553 | $1160 | $659 | $2372 |
| Credit cards |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $288 | $872 | $– | $1160 | $414 | $823 | $– | $1237 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (218) | 571 | 652 | 1005 | (299) | 503 | 610 | 814 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 99 |  |  | 99 | 111 |  |  | 111 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (33) | (32) |  | (65) | (39) | (47) |  | (86) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies |  | (10) |  | (10) | (38) | 21 |  | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 269 | (269) |  |  | 262 | (262) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (96) | 96 |  |  | (104) | 104 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 |  | (284) | 284 |  |  | (244) | 244 |  |
| Gross write-offs |  |  | (1106) | (1106) |  |  | (1002) | (1002) |
| Recoveries |  |  | 164 | 164 |  |  | 145 | 145 |
| Foreign exchange and other movements |  | (3) | 6 | 3 | (4) | (11) | 3 | (12) |
| Balance at end of period | $309 | $941 | $– | $1250 | $303 | $887 | $– | $1190 |
| Total retail loans |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $997 | $2424 | $1266 | $4687 | $1326 | $2247 | $1162 | $4735 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (854) | 1491 | 2050 | 2687 | (1046) | 1417 | 2007 | 2378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 423 |  |  | 423 | 422 |  |  | 422 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (105) | (165) |  | (270) | (119) | (210) |  | (329) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies | 1 | (57) | 14 | (42) | (128) | 120 |  | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 922 | (870) | (52) |  | 949 | (898) | (51) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (289) | 534 | (245) |  | (309) | 511 | (202) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 | (6) | (720) | 726 |  | (11) | (687) | 698 |  |
| Gross write-offs |  |  | (2780) | (2780) |  |  | (2670) | (2670) |
| Recoveries |  |  | 413 | 413 |  |  | 377 | 377 |
| Foreign exchange and other movements | (31) | (26) | 6 | (51) | (27) | (37) | (69) | (133) |
| Balance at end of period | $1058 | $2611 | $1398 | $5067 | $1057 | $2463 | $1252 | $4772 |
| Non-retail loans: |  |  |  |  |  |  |  |  |
| Business and government |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $739 | $508 | $788 | $2035 | $635 | $403 | $748 | $1786 |
| Provision for credit losses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement<sup>(1)</sup> | (52) | 259 | 603 | 810 | (195) | 155 | 434 | 394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newly originated or purchased financial assets | 983 |  |  | 983 | 630 |  |  | 630 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derecognition of financial assets and maturities | (856) | (93) | (28) | (977) | (569) | (74) | (8) | (651) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in models and methodologies |  |  |  |  | 200 | 37 |  | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer to (from): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 1 | 92 | (92) |  |  | 114 | (114) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 2 | (59) | 62 | (3) |  | (73) | 76 | (3) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stage 3 | (3) | (23) | 26 |  |  | (12) | 12 |  |
| Gross write-offs |  |  | (513) | (513) |  |  | (313) | (313) |
| Recoveries |  |  | 47 | 47 |  |  | 48 | 48 |
| Foreign exchange and other movements | 1 | 1 | (84) | (82) | (4) | (8) | (94) | (106) |
| Balance at end of period including off-balance sheet exposures | $845 | $622 | $836 | $2303 | $738 | $463 | $824 | $2025 |
| Less: Allowance for credit losses on off-balance sheet exposures<sup>(2)</sup> | (146) | (27) |  | (173) | (149) | (30) | (36) | (215) |
| Balance at end of period<sup>(2)</sup> | $699 | $595 | $836 | $2130 | $589 | $433 | $788 | $1810 |

---

(1) Includes credit risk changes as a result of significant increases in credit risk, changes in credit risk that did not result in a transfer between stages, changes in model inputs and assumptions and changes due to drawdowns of undrawn commitments.

(2) Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position.

76 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(d) Carrying value of exposures by risk rating

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Residential<br>mortgages | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Category of PD grades<br>($ millions) | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total |
| Very low | $207050 | $5849 | $– | $212899 | $211165 | $3262 | $– | $214427 |
| Low | 83929 | 6650 |  | 90579 | 78344 | 3625 |  | 81969 |
| Medium | 20742 | 7351 |  | 28093 | 19205 | 2072 |  | 21277 |
| High | 2841 | 5573 |  | 8414 | 2561 | 5280 |  | 7841 |
| Very high | 44 | 2881 |  | 2925 | 13 | 2814 |  | 2827 |
| Loans not graded<sup>(2)</sup> | 14212 | 1156 |  | 15368 | 18614 | 1614 |  | 20228 |
| Default |  |  | 2659 | 2659 |  |  | 2372 | 2372 |
| Total | $328818 | $29460 | $2659 | $360937 | $329902 | $18667 | $2372 | $350941 |
| Allowance for credit losses | 185 | 447 | 798 | 1430 | 165 | 398 | 645 | 1208 |
| Carrying value | $328633 | $29013 | $1861 | $359507 | $329737 | $18269 | $1727 | $349733 |

---

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level 'Probability of Default' has not been determined have been included in the 'Loans not graded' category.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Personal loans | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Category of PD grades<br>($ millions) | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total |
| Very low | $31114 | $266 | $– | $31380 | $30865 | $– | $– | $30865 |
| Low | 21051 | 840 |  | 21891 | 20686 | 12 |  | 20698 |
| Medium | 12527 | 106 |  | 12633 | 13053 | 38 |  | 13091 |
| High | 9081 | 5934 |  | 15015 | 10535 | 4843 |  | 15378 |
| Very high | 27 | 2450 |  | 2477 | 76 | 2743 |  | 2819 |
| Loans not graded<sup>(2)</sup> | 21146 | 2300 |  | 23446 | 20482 | 1929 |  | 22411 |
| Default |  |  | 1048 | 1048 |  |  | 1117 | 1117 |
| Total | $94946 | $11896 | $1048 | $107890 | $&nbsp;&nbsp;&nbsp;&nbsp;95697 | $&nbsp;&nbsp;&nbsp;&nbsp;9565 | $1117 | $106379 |
| Allowance for credit losses | 564 | 1223 | 600 | 2387 | 544 | 1154 | 621 | 2319 |
| Carrying value | $94382 | $10673 | $448 | $105503 | $95153 | $8411 | $496 | $104060 |

---

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level 'Probability of Default' has not been determined have been included in the 'Loans not graded' category.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Credit cards | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Category of PD grades<br>($ millions) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Very low | $2541 | $2 | $– | $2543 | $2382 | $3 | $– | $2385 |
| Low | 3033 | 12 |  | 3045 | 2872 | 25 |  | 2897 |
| Medium | 4659 | 30 |  | 4689 | 4631 | 55 |  | 4686 |
| High | 2742 | 2185 |  | 4927 | 3069 | 1880 |  | 4949 |
| Very high | 19 | 1119 |  | 1138 | 16 | 1028 |  | 1044 |
| Loans not graded<sup>(1)</sup> | 654 | 476 |  | 1130 | 895 | 518 |  | 1413 |
| Default |  |  |  |  |  |  |  |  |
| Total | $13648 | $3824 | $– | $17472 | $&nbsp;&nbsp;&nbsp;&nbsp;13865 | $&nbsp;&nbsp;&nbsp;&nbsp;3509 | $– | $&nbsp;&nbsp;&nbsp;&nbsp;17374 |
| Allowance for credit losses | 309 | 941 |  | 1250 | 288 | 872 |  | 1160 |
| Carrying value | $13339 | $2883 | $– | $16222 | $13577 | $2637 | $– | $16214 |

---

(1) Portfolios where the customer account level 'Probability of Default' has not been determined have been included in the 'Loans not graded' category.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Undrawn loan<br>commitments –<br>Retail | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Category of PD grades<br>($ millions) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
| Very low | $123848 | $326 | $– | $124174 | $115396 | $2 | $– | $115398 |
| Low | 19166 | 81 |  | 19247 | 17947 | 26 |  | 17973 |
| Medium | 8350 | 12 |  | 8362 | 8128 | 22 |  | 8150 |
| High | 3645 | 582 |  | 4227 | 3490 | 505 |  | 3995 |
| Very high | 13 | 309 |  | 322 | 10 | 305 |  | 315 |
| Loans not graded<sup>(1)</sup> | 11144 | 2871 |  | 14015 | 12634 | 2749 |  | 15383 |
| Default |  |  |  |  |  |  |  |  |
| Carrying value | $166166 | $4181 | $– | $170347 | $157605 | $&nbsp;&nbsp;&nbsp;&nbsp;3609 | $– | $161214 |

---

(1) Portfolios where the customer account level 'Probability of Default' has not been determined have been included in the 'Loans not graded' category.

Scotiabank Third Quarter Report 2025 77

------

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Total retail loans | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Category of PD grades<br>($ millions) | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total |
| Very low | $364553 | $6443 | $– | $370996 | $359808 | $3267 | $– | $363075 |
| Low | 127179 | 7583 |  | 134762 | 119849 | 3688 |  | 123537 |
| Medium | 46278 | 7499 |  | 53777 | 45017 | 2187 |  | 47204 |
| High | 18309 | 14274 |  | 32583 | 19655 | 12508 |  | 32163 |
| Very high | 103 | 6759 |  | 6862 | 115 | 6890 |  | 7005 |
| Loans not graded<sup>(2)</sup> | 47156 | 6803 |  | 53959 | 52625 | 6810 |  | 59435 |
| Default |  |  | 3707 | 3707 |  |  | 3489 | 3489 |
| Total | $603578 | $49361 | $3707 | $656646 | $597069 | $35350 | $3489 | $635908 |
| Allowance for credit losses | 1058 | 2611 | 1398 | 5067 | 997 | 2424 | 1266 | 4687 |
| Carrying value | $602520 | $46750 | $2309 | $651579 | $596072 | $32926 | $2223 | $631221 |

---

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level 'Probability of Default' has not been determined have been included in the 'Loans not graded' category.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Business and<br>government loans | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Grade ($ millions) | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total |
| Investment grade | $138872 | $1378 | $– | $140250 | $146999 | $1829 | $– | $148828 |
| Non-investment grade | 125455 | 6577 |  | 132032 | 124749 | 8800 |  | 133549 |
| Watch list | 9 | 4575 |  | 4584 | 10 | 4819 |  | 4829 |
| Loans not graded<sup>(2)</sup> | 2382 | 27 |  | 2409 | 2190 | 25 |  | 2215 |
| Default |  |  | 3183 | 3183 |  |  | 3250 | 3250 |
| Total | $266718 | $12557 | $3183 | $282458 | $273948 | $15473 | $3250 | $292671 |
| Allowance for credit losses | 699 | 595 | 836 | 2130 | 586 | 475 | 788 | 1849 |
| Carrying value | $266019 | $11962 | $2347 | $280328 | $273362 | $14998 | $2462 | $290822 |

---

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level 'Probability of Default' has not been determined have been included in the 'Loans not graded' category.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Undrawn loan<br>commitments –<br>Business and<br>government | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Grade ($ millions) | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total |
| Investment grade | $241496 | $1217 | $– | $242713 | $243635 | $1124 | $– | $244759 |
| Non-investment grade | 57503 | 2113 |  | 59616 | 59572 | 2894 |  | 62466 |
| Watch list |  | 916 |  | 916 |  | 1142 |  | 1142 |
| Loans not graded<sup>(2)</sup> | 4009 | 1 |  | 4010 | 3921 |  |  | 3921 |
| Default |  |  | 36 | 36 |  |  | 32 | 32 |
| Total | $303008 | $4247 | $36 | $307291 | $307128 | $5160 | $32 | $312320 |
| Allowance for credit losses | 146 | 27 |  | 173 | 153 | 33 |  | 186 |
| Carrying value | $302862 | $4220 | $36 | $307118 | $306975 | $&nbsp;&nbsp;&nbsp;&nbsp;5127 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32 | $312134 |

---

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level 'Probability of Default' has not been determined have been included in the 'Loans not graded' category.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Total non-retail<br>loans | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| Grade ($ millions) | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total | Stage 1 | Stage 2 | Stage 3<sup>(1)</sup> | Total |
| Investment grade | $380368 | $2595 | $– | $382963 | $390634 | $2953 | $– | $393587 |
| Non-investment grade | 182958 | 8690 |  | 191648 | 184321 | 11694 |  | 196015 |
| Watch list | 9 | 5491 |  | 5500 | 10 | 5961 |  | 5971 |
| Loans not graded<sup>(2)</sup> | 6391 | 28 |  | 6419 | 6111 | 25 |  | 6136 |
| Default |  |  | 3219 | 3219 |  |  | 3282 | 3282 |
| Total | $569726 | $16804 | $3219 | $589749 | $581076 | $20633 | $3282 | $604991 |
| Allowance for credit losses | 845 | 622 | 836 | 2303 | 739 | 508 | 788 | 2035 |
| Carrying value | $568881 | $16182 | $2383 | $587446 | $580337 | $20125 | $&nbsp;&nbsp;&nbsp;&nbsp;2494 | $602956 |

---

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level 'Probability of Default' has not been determined have been included in the 'Loans not graded' category.

78 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(e) Loans past due but not impaired <sup>(1)</sup>

A loan is considered past due when a counterparty has not made a payment by the contractual due date. The following table presents the carrying value of loans that are contractually past due but not classified as impaired. In cases where borrowers have opted to participate in payment deferral programs, deferral of payments is not considered past due and such loans are not aged further during the deferral period.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
| ($ millions) | 31-60<br>days | 61-90<br>days | 91 days<br>and greater<sup>(2)</sup> | Total |
|  Residential mortgages | $1520 | $732 | $– | $2252 |
|  Personal loans | 616 | 338 |  | 954 |
|  Credit cards | 240 | 191 | 386 | 817 |
|  Business and government | 271 | 76 |  | 347 |
|  Total | $2647 | $1337 | $386 | $4370 |
|  | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 |
| ($ millions) | 31-60<br> days | 61-90<br> days | 91 days<br> and greater<sup>(2)</sup> | Total |
|  Residential mortgages | $1506 | $720 | $– | $2226 |
|  Personal loans | 635 | 346 |  | 981 |
|  Credit cards | 245 | 184 | 395 | 824 |
|  Business and government | 316 | 121 |  | 437 |
|  Total | $2702 | $1371 | $395 | $4468 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| ($ millions) | 31-60<br> days | 61-90<br> days | 91 days<br> and greater<sup>(2)</sup> | Total |
|  Residential mortgages | $1418 | $718 | $– | $2136 |
|  Personal loans | 647 | 343 |  | 990 |
|  Credit cards | 242 | 172 | 398 | 812 |
|  Business and government | 192 | 48 |  | 240 |
|  Total | $2499 | $1281 | $398 | $4178 |

---

(1) Loans past due 30 days or less are not presented in this analysis as they are not administratively considered past due.

(2) All loans that are over 90 days past due are considered impaired with the exception of credit card receivables which are considered impaired when 180 days past due.

(f) Purchased credit-impaired loans

Certain financial assets including loans are credit-impaired on initial recognition. The following table provides details of such assets:

---

| | | | |
|:---|:---|:---|:---|
|  | As at | As at | As at |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | October 31<br>2024 |
|  Unpaid principal balance<sup>(1)</sup> | $227 | $231 | $243 |
|  Credit related fair value adjustments | (25) | (26) | (29) |
|  Carrying value | 202 | 205 | 214 |
|  Stage 3 allowance | (1) |  | (1) |
|  Carrying value net of related allowance | $201 | $205 | $213 |

---

(1) Represents principal amount owed net of write-offs.

8. Derecognition of financial assets

Securitization of residential mortgage loans

The Bank securitizes fully insured residential mortgage loans, Bank originated and others, through the creation of mortgage-backed securities (MBS) under the National Housing Act (NHA) MBS program, sponsored by Canada Mortgage and Housing Corporation (CMHC). MBS created under the program are sold to either Canada Housing Trust (the Trust), a government sponsored entity under the Canada Mortgage Bond (CMB) program, or to third-party investors.

The underlying mortgages sold in the above programs do not meet the derecognition requirements when the Bank retains the pre-payment and interest rate risks associated with the mortgages, which represent substantially all the risks and rewards associated with the transferred assets.

These mortgages continue to be recognized on the Consolidated Statement of Financial Position as residential mortgage loans. Cash proceeds from the transfer are treated as secured borrowings and included in Deposits – Business and government on the Consolidated Statement of Financial Position.

Scotiabank Third Quarter Report 2025 79

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following table provides the carrying amount of the transferred assets that do not qualify for derecognition and the associated liabilities:

---

| | | | |
|:---|:---|:---|:---|
|  | As at | As at | As at |
| ($ millions) | July 31<br>2025<sup>(1)</sup> | April 30<br>2025<sup>(1)</sup> | October 31<br>2024<sup>(1)</sup> |
|  **Assets** |  |  |  |
|  Carrying value of residential mortgage loans | $8854 | $9377 | $11190 |
|  Other related assets<sup>(2)</sup> | 6248 | 6265 | 7202 |
|  Liabilities |  |  |  |
|  Carrying value of associated liabilities | $15061 | $&nbsp;&nbsp;&nbsp;&nbsp;15479 | $&nbsp;&nbsp;&nbsp;&nbsp;17923 |

---

(1) The fair value of the transferred assets is $14,815 (April 30, 2025 – $15,524 and October 31, 2024 – $18,092) and the fair value of the associated liabilities is $14,966 (April 30, 2025 – $15,481 and October 31, 2024 – $17,692) for a net position of $(151) (April 30, 2025 – $43 and October 31, 2024 – $400).

(2) These include cash held in trust and trust-permitted investment assets, including repurchase-type transactions of mortgage-backed securities, included in the principal reinvestment account that the Bank is required to maintain in order to participate in the programs.

Securitization of credit card and auto loans

The Bank securitizes a portion of its unsecured credit card and auto loan receivables through consolidated structured entities. These receivables continue to be recognized on the Consolidated Statement of Financial Position as personal loans and credit card loans.

During the quarter, $2,937 million (April 30, 2025 – nil) of the Bank's Canadian auto loan receivables were securitized through Securitized Term Auto Receivables Trust (SSTRT), a Bank-sponsored consolidated structured entity. As of July 31, 2025,

U.S. $186 million (CAD $258 million) (April 30, 2025 – nil) offered notes issued to third party investors through SSTRT were outstanding and included in deposits – business and government on the Consolidated Statement of Financial Position.

Securities sold under repurchase agreements and securities lent

The Bank enters into transactions, such as repurchase agreements and securities lending agreements, where the Bank transfers assets under agreements to repurchase them on a future date and retains all the substantial risks and rewards associated with the assets. The transferred securities remain on the Consolidated Statement of Financial Position.

The following table provides the carrying amount of the transferred assets and the associated liabilities:

---

| | | | |
|:---|:---|:---|:---|
|  | As at | As at | As at |
| ($ millions) | July 31<br>2025<sup>(1)</sup> | April 30<br>2025<sup>(1)</sup> | October 31<br>2024<sup>(1)</sup> |
|  Carrying value of securities associated with: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase agreements<sup>(2)</sup> | $169302 | $161938 | $174334 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending agreements | 66927 | 63492 | 58477 |
|  Total | 236229 | 225430 | 232811 |
|  Carrying value of associated liabilities<sup>(3)</sup> | $182223 | $177987 | $190449 |

---

(1) The fair value of transferred assets is $236,229 (April 30, 2025 – $225,430 and October 31, 2024 – $232,811) and the fair value of the associated liabilities is $182,223 (April 30, 2025 – $177,987 and October 31, 2024 – $190,449) for a net position of $54,006 (April 30, 2025 – $47,443 and October 31, 2024 – $42,362).

(2) Does not include over-collateralization of assets pledged.

(3) Liabilities for securities lending arrangements only include amounts related to cash collateral received. In most cases, securities are received as collateral.

Other off-balance sheet arrangements

The Bank uses a capital vehicle to transfer credit exposure to security holders of the vehicle. While credit exposures are transferred, the related assets are not derecognized from the balance sheet. During the quarter, no new guarantee-linked notes were issued from this vehicle.

9. Investments in associates

The Bank had significant investments in the following associates:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | As at | As at | As at |
|  | | | | | July 31<br>2025 | April 30<br>2025 | October 31<br>2024 |
| ($ millions) | Country of<br>incorporation | Nature of<br>business | Ownership<br>percentage | Date of financial<br>statements<sup>(1)</sup> | Carrying<br>value | Carrying<br>value | Carrying<br>value |
|  KeyCorp<sup>(2)</sup> | United States | Banking | 14.9% | June 30, 2025 | $4184 | $4048 | $– |
|  Bank of Xi'an Co. Ltd.<sup>(3)</sup> | China | Banking | 18.1% | March 31, 2025 | 679 | 674 | 658 |
|  Maduro & Curiel's Bank N.V.<sup>(4)</sup> | Curacao | Banking | 48.1% | June 30, 2025 | 552 | 539 | 527 |

---

(1) Represents the date of the most recent financial statements.

(2) On December 27, 2024, the Bank completed the acquisition of an additional 10% ownership interest, bringing the total ownership interest in KeyCorp to 14.9% (refer to Note 20 for further details). The Bank has significant influence over KeyCorp through a combination of its ownership interest and board representation. Based on the quoted price on the New York Stock Exchange, the market value of the Bank's investment in KeyCorp was $4,044 as at July 31, 2025 (April 30, 2025 – $3,332).

(3) Based on the quoted price on the Shanghai Stock Exchange, the market value of the Bank's Investment in Bank of Xi'an Co. Ltd. was $595 (April 30, 2025 – $528; October 31, 2024 – $570) , which has remained below the carrying amount. The Bank performed an impairment test as at July 31, 2025 using a value in use (VIU) discounted cash flow model. The Bank concluded that there is no impairment for the period ended July 31, 2025 (April 30, 2025 – nil; October 31, 2024 – $343). The Bank has significant influence over the Bank of Xi'an Co. Ltd. through a combination of its ownership interest and board representation.

(4) The local regulator requires financial institutions to set aside reserves for general banking risks. These reserves are not required under IFRS, and represent undistributed retained earnings related to a foreign associated corporation, which are subject to local regulatory restrictions. As of July 31, 2025, these reserves amounted to $75 (April 30, 2025 – $74; October 31, 2024 – $74).

80 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

10. Deposits

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at | As at | As at | As at | As at | As at | As at | |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | April 30<br>2025 | October 31<br>2024 |
|  | Payable on demand<sup>(1)</sup> | Payable on demand<sup>(1)</sup> | **Payable**<br>**after<br>notice<sup>(2)</sup>** | | | | | |
| ($ millions) | Interest-<br>bearing | Non-interest-<br>bearing | **Payable**<br>**after<br>notice<sup>(2)</sup>** |  | Payable on a<br>fixed date<sup>(3)</sup> | Total | Total | Total |
| Personal | $5862 | $10616 | $153696 |  | $131290 | $301464 | $301069 | $298821 |
| Business and government | 182026 | 33018 | 69439 |  | 321451 | 605934 | 604307 | 600114 |
| Financial institutions | 10408 | 1171 | 2277 |  | 25588 | 39444 | 40467 | 44914 |
|  | $198296 | $44805 | $225412 | (4) | $478329 | $946842 | $945843 | $943849 |
| Recorded in: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | $147533 | $23949 | $183943 |  | $326237 | $681662 | $685799 | $686817 |
| &nbsp;&nbsp;&nbsp;&nbsp;United States | 39707 | 138 | 3932 |  | 47908 | 91685 | 88831 | 90442 |
| &nbsp;&nbsp;&nbsp;&nbsp;United Kingdom |  |  | 307 |  | 35512 | 35819 | 32120 | 27091 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 149 | 7322 | 13725 |  | 17385 | 38581 | 37022 | 36751 |
| &nbsp;&nbsp;&nbsp;&nbsp;Peru | 5793 | 41 | 5892 |  | 7004 | 18730 | 19133 | 17710 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chile | 1545 | 4951 | 136 |  | 15936 | 22568 | 24113 | 23232 |
| &nbsp;&nbsp;&nbsp;&nbsp;Colombia | 24 | 500 | 3444 |  | 5478 | 9446 | 8898 | 8102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other International | 3545 | 7904 | 14033 |  | 22869 | 48351 | 49927 | 53704 |
| Total<sup>(5)</sup> | $198296 | $44805 | $225412 |  | $478329 | $946842 | $945843 | $943849 |

---

(1) Deposits payable on demand include all deposits for which the Bank does not have the right to notice of withdrawal, generally chequing accounts.

(2) Deposits payable after notice include all deposits for which the Bank requires notice of withdrawal, generally savings accounts.

(3) All deposits that mature on a specified date, generally term deposits, guaranteed investments certificates and similar instruments.

(4) Includes $135 (April 30, 2025 – $123; October 31, 2024 – $124) of non-interest-bearing deposits.

(5) Deposits denominated in U.S. dollars amount to $284,432 (April 30, 2025 – $293,366 ; October 31, 2024 – $295,316), deposits denominated in Chilean pesos amount to $19,406 (April 30, 2025 – $20,184; October 31, 2024 – $19,271), deposits denominated in Mexican pesos amount to $35,379 (April 30, 2025 – $33,975; October 31, 2024 – $34,416) and deposits denominated in other foreign currencies amount to $116,535 (April 30, 2025 – $114,253; October 31, 2024 – $109,683).

The following table presents the maturity schedule for term deposits in Canada greater than $100,000<sup>(1)</sup>.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ($ millions) | Within<br> three months | Three to<br> six months | Six to<br> twelve months | One to five<br> years | Over<br> five years | Total |
| As at July 31, 2025 | $49249 | $36829 | $58671 | $111629 | $15175 | $271553 |
| As at April 30, 2025 | $59432 | $29100 | $63418 | $113023 | $17570 | $282543 |
| As at October 31, 2024 | $64521 | $37062 | $59273 | $115757 | $18820 | $295433 |

---

(1) The majority of foreign term deposits are in excess of $100,000.

11. Capital and financing transactions

Common shares

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the three months ended |
|  | July 31, 2025 | July 31, 2025 | July 31, 2024 | July 31, 2024 |
| ($ millions) | Number of shares | Amount | Number of shares | Amount |
| Outstanding at beginning of period | 1245549363 | $22138 | 1229569597 | $21066 |
| Issued in relation to share-based payments, net | 138392 | 10 | 18688 | 2 |
| Issued in relation to the Shareholder Dividend and Share Purchase Plan<sup>(1)</sup> |  |  | 7750463 | 481 |
| Repurchased for cancellation under the Normal Course Issuer Bid | (3227456) | (59) |  |  |
| Outstanding at end of period | 1242460299 | $22089 | 1237338748 | $21549 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the nine months ended | For the nine months ended | For the nine months ended | For the nine months ended |
|  | July 31, 2025 | July 31, 2025 | July 31, 2024 | July 31, 2024 |
| ($ millions) | Number of shares | Amount | Number of shares | Amount |
| Outstanding at beginning of period | 1244435686 | $22054 | 1214044420 | $20109 |
| Issued in relation to share-based payments, net | 1252069 | 94 | 133766 | 9 |
| Issued in relation to the Shareholder Dividend and Share Purchase Plan<sup>(1)</sup> |  |  | 23160562 | 1431 |
| Repurchased for cancellation under the Normal Course Issuer Bid | (3227456) | (59) |  |  |
| Outstanding at end of period | 1242460299 | $22089 | 1237338748 | $21549 |

---

(1) Effective November 1, 2024, and until such time as the Bank elects otherwise, the Bank has suspended the discount to the Average Market Price (as defined in the Plan) for dividend reinvestments and stock dividends under the Plan and has discontinued issuances of common shares from treasury under the Plan. Additionally, effective November 1, 2024, and until such time as the Bank elects otherwise, purchases of common shares under the Plan will be made in the secondary market in accordance with the provisions of the Plan.

Scotiabank Third Quarter Report 2025 81

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Normal Course Issuer Bid

On May 28, 2025, the Bank announced that OSFI and the Toronto Stock Exchange approved a normal course issuer bid (the "2025 NCIB") pursuant to which it may repurchase for cancellation up to 20 million of the Bank's common shares. Purchases under the 2025 NCIB commenced on May 30, 2025, and will terminate upon the earlier of: (i) the Bank purchasing the maximum number of common shares under the 2025 NCIB, (ii) the Bank providing a notice of termination, or (iii) May 29, 2026.

From the commencement of the 2025 NCIB until July 31, 2025, the Bank repurchased and cancelled approximately 3.2 million common shares at an average price of $74.52 per share for a total amount of $245 million, including tax.

Preferred shares and other equity instruments

Redemption

On June 4, 2025, the Bank redeemed all outstanding US $1,250 million 4.900% Fixed Rate Resetting Perpetual Subordinated Additional Tier 1 Capital Notes (Non-Viability Contingent Capital (NVCC)) at 100% of their principal amount plus accrued and unpaid interest. The redemption of these notes resulted in a foreign currency loss of $22 million, which was recorded in Retained Earnings.

12. Capital management

The Bank's regulatory capital, total loss absorbing capacity and leverage measures were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | As at | As at | As at |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | October 31<br>2024 |
| **Capital<sup>(1)</sup>** |  |  |  |
| Common Equity Tier 1 capital | $61591 | $60425 | $60631 |
| Net Tier 1 capital | 70225 | 70740 | 69499 |
| Total regulatory capital | 78208 | 78682 | 77708 |
| Total loss absorbing capacity (TLAC)<sup>(2)</sup> | 134627 | 139119 | 137752 |
| Risk-weighted assets/exposures used in calculation of capital ratios |  |  |  |
| Risk-weighted assets<sup>(1)(3)</sup> | $463484 | $458989 | $463992 |
| Leverage exposures<sup>(4)</sup> | 1573879 | 1568491 | 1563140 |
| Regulatory ratios<sup>(1)</sup> |  |  |  |
| Common Equity Tier 1 capital ratio | 13.3% | 13.2% | 13.1% |
| Tier 1 capital ratio | 15.2% | 15.4% | 15.0% |
| Total capital ratio | 16.9% | 17.1% | 16.7% |
| Total loss absorbing capacity ratio<sup>(2)</sup> | 29.0% | 30.3% | 29.7% |
| Leverage ratio<sup>(4)</sup> | 4.5% | 4.5% | 4.4% |
| Total loss absorbing capacity leverage ratio<sup>(2)</sup> | 8.6% | 8.9% | 8.8% |

---

(1) The regulatory capital ratios are based on Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023).

(2) This measure has been disclosed in this document in accordance with OSFI Guideline – Total Loss Absorbing Capacity (September 2018).

(3) As at July 31, 2025, April 30, 2025 and October 31, 2024, the Bank did not have a regulatory capital floor add-on to risk-weighted assets (RWA) for CET1, Tier 1, Total Capital and TLAC RWA.

(4) The leverage ratios are based on Basel III requirements as determined in accordance with OSFI Guideline – Leverage Requirements (February 2023).

The Bank substantially exceeded the OSFI minimum regulatory capital and TLAC ratios as at July 31, 2025, including the Domestic Stability Buffer requirement. In addition, the Bank substantially exceeded OSFI minimum leverage and TLAC leverage ratios as at July 31, 2025.

13. Share-based payments

In Q1 2025, the Bank granted 1,586,630 options with an exercise price of $79.13 per option and a weighted average fair value of $8.26 to select employees, under the terms of the Employee Stock Option Plan. These stock options vest 50% at the end of the third year and 50% at the end of the fourth year.

The Bank recorded an increase to equity – other reserves of $2 million for the three months ended July 31, 2025 and $13 million for the nine months ended July 31, 2025 (July 31, 2024 – $1 million and $11 million), as a result of equity-classified share-based payment expense.

<br> 82 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

14. Employee benefits

Employee benefits include pensions, other post-retirement benefits, and post-employment benefits. The following table summarizes the expenses for the Bank's principal plans<sup>(1)</sup>.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended |
|  | Pension plans | Pension plans | Pension plans | Other benefit plans | Other benefit plans | Other benefit plans |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 |
|  Defined benefit service cost | $70 | $61 | $51 | $(57)<sup>(2)</sup> | $6 | $5 |
|  Interest on net defined benefit (asset) liability | (2) | (3) | (8) | 16 | 16 | 16 |
|  Other | 3 | 3 | 3 | 1 | (1) | 2 |
|  Defined benefit expense | $71 | $61 | $46 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21 | $23 |
|  Defined contribution expense | $52 | $53 | $46 | $– | $– | $– |
|  Actuarial gains (losses) on employee benefit plans in other comprehensive income<sup>(3)</sup> | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;267 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(246) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;138 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | For the nine months ended | For the nine months ended | For the nine months ended | For the nine months ended |
|  | Pension plans | Pension plans | Other benefit plans | Other benefit plans |
| ($ millions) | July 31<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
|  Defined benefit service cost | $214 | $154 | $(45)<sup>(2)</sup> | $14 |
|  Interest on net defined benefit (asset) liability | (9) | (23) | 46 | 51 |
|  Other | 9 | 9 | 1 | 4 |
|  Defined benefit expense | $214 | $140 | $2 | $69 |
|  Defined contribution expense | $154 | $137 | $1 | $– |
|  Actuarial gains (losses) on employee benefit plans in other comprehensive income<sup>(3)</sup> | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;294 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(70) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51) |

---

(1) Other plans operated by certain subsidiaries of the Bank are not considered material and are not included in this note.

(2) Includes benefit related to certain post-retirement plan amendments.

(3) Changes in discount rates and return on plan assets are reviewed and updated on a quarterly basis. In the absence of legislated changes, all other assumptions are updated annually.

15. Operating segments

The Bank's businesses are grouped into four business lines: Canadian Banking, International Banking, Global Wealth Management and Global Banking and Markets. The Bank's other smaller business segments and corporate adjustments are included in the Other segment. The accounting policies used in these segments are generally consistent with those followed in the preparation of the consolidated financial statements as disclosed in Note 3 of the Bank's audited consolidated financial statements in the 2024 Annual Report.

The Bank analyzes revenue on a taxable equivalent basis (TEB) for business lines. 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. It also grosses up net income from associated corporations to normalize the effective tax rate in the business lines. Corresponding increases are made to the income tax expense; hence, there is no impact on the segment's net income. The elimination of the TEB gross-up is recorded in the Other segment; hence, there is no impact on the consolidated results.

Changes in business line allocation methodology

Effective the first quarter of 2025, the Bank made voluntary changes to its allocation methodology impacting business segment presentation. The new methodology includes updates related to the Bank's funds transfer pricing, head office expense allocations, and allocations between business segments. Prior period results for each segment have been revised to conform with the current period's methodology. Further details on the changes are as follows:

1. Funds transfer pricing methodology was updated, primarily related to the allocation of substantially all liquidity costs to the business lines, reflecting the Bank's strategic objective to maintain higher liquidity ratios.

2. Periodically, the Bank updates its allocation methodologies. This includes a comprehensive update to the allocation of head office expenses across countries within International Banking, updates to the allocation of clients and associated revenue, expenses, and balances between International Banking, Global Banking and Markets, and Global Wealth Management to align with the strategy, as well as updates to the allocation of head office expenses and income taxes from the Other segment to the business segments.

3. To be consistent with the reporting of Scotiabank's recent minority investment in KeyCorp, the Bank has also made changes to the reporting of certain minority investments in International Banking (Bank of Xi'an) and Global Wealth Management (Bank of Beijing Scotia Asset Management) which will now be reported in the Other segment.

<br> Scotiabank Third Quarter Report 2025 83

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 | For the three months ended July 31, 2025 |
| ($ millions) | Canadian<br> Banking<sup>(1)</sup> | International<br> Banking<sup>(1)</sup> | Global<br> Wealth<br> Management<sup>(1)</sup> | Global<br> Banking and<br> Markets<sup>(1)</sup> | Other | Total |
|  Net interest income<sup>(2)</sup> | $2641 | $2245 | $&nbsp;&nbsp;&nbsp;&nbsp;266 | $&nbsp;&nbsp;&nbsp;&nbsp;350 | $(9) | $5493 |
|  Non-interest income<sup>(3)(4)</sup> | 730 | 758 | 1338 | 1180 | (13) | 3993 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 3371 | 3003 | 1604 | 1530 | (22) | 9486 |
|  Provision for credit losses | 456 | 562 | 4 | 19 |  | 1041 |
|  Depreciation and amortization | 137 | 119 | 48 | 65 | 36 | 405 |
|  Other non-interest expenses | 1459 | 1392 | 982 | 829 | 22 | 4684 |
|  Provision for income taxes | 361 | 219 | 150 | 144 | (45) | 829 |
|  Net income | $958 | $711 | $420 | $473 | $(35) | $2527 |
|  Net income attributable to non-controlling interests in subsidiaries | $– | $41 | $3 | $– | $36 | $80 |
|  Net income attributable to equity holders of the Bank | $958 | $670 | $417 | $473 | $(71) | $2447 |
|  Average assets ($ billions)  | $463 | $223 | $39 | $493 | $228 | $1446 |
|  Average liabilities ($ billions)  | $381 | $173 | $50 | $513 | $243 | $1360 |

---

(1) Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment.

(2) Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(3) Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets.

(4) Includes income (on a taxable equivalent basis) from associated corporations for Canadian Banking – $(2), International Banking – $39, and Other – $120.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 | For the three months ended April 30, 2025 |
| ($ millions) | Canadian<br> Banking<sup>(1)</sup> | International<br> Banking<sup>(1)</sup> | Global<br> Wealth<br> Management<sup>(1)</sup> | Global<br> Banking and<br> Markets<sup>(1)</sup> | Other | Total |
|  Net interest income<sup>(2)</sup> | $2524 | $2179 | $246 | $368 | $(47) | $5270 |
|  Non-interest income<sup>(3)(4)</sup> | 711 | 780 | 1295 | 1090 | (66) | 3810 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 3235 | 2959 | 1541 | 1458 | (113) | 9080 |
|  Provision for credit losses | 805 | 550 | 2 | 40 | 1 | 1398 |
|  Depreciation and amortization | 139 | 115 | 48 | 65 | 26 | 393 |
|  Other non-interest expenses | 1442 | 1408 | 949 | 813 | 105 | 4717 |
|  Provision for income taxes | 236 | 172 | 141 | 128 | (137) | 540 |
|  Net income | $613 | $714 | $401 | $412 | $(108) | $2032 |
|  Net income attributable to non-controlling interests in subsidiaries | $– | $38 | $2 | $(1) | $17 | $56 |
|  Net income attributable to equity holders of the Bank | $613 | $676 | $399 | $413 | $(125) | $1976 |
|  Average assets ($ billions)  | $461 | $229 | $38 | $502 | $238 | $1468 |
|  Average liabilities ($ billions) | $384 | $177 | $47 | $516 | $258 | $1382 |

---

(1) Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment.

(2) Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(3) Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets.

(4) Includes income (on a taxable equivalent basis) from associated corporations for Canadian Banking – $(2), International Banking – $38, and Other – $123.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> | For the three months ended July 31, 2024<sup>(1)</sup> |
| ($ millions) | Canadian<br> Banking<sup>(2)</sup> | International<br> Banking<sup>(2)</sup> | Global<br> Wealth<br> Management<sup>(2)</sup> | Global<br> Banking and<br> Markets<sup>(2)</sup> | Other | Total |
|  Net interest income<sup>(3)</sup> | $2577 | $2226 | $206 | $304 | $(451) | $4862 |
|  Non-interest income<sup>(4)(5)</sup> | 728 | 747 | 1222 | 960 | (155) | 3502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 3305 | 2973 | 1428 | 1264 | (606) | 8364 |
|  Provision for credit losses | 435 | 589 | 10 | 18 |  | 1052 |
|  Depreciation and amortization | 145 | 142 | 48 | 68 | 25 | 428 |
|  Other non-interest expenses | 1383 | 1408 | 878 | 705 | 147 | 4521 |
|  Provision for income taxes | 365 | 170 | 122 | 105 | (311) | 451 |
|  Net income | $977 | $664 | $370 | $368 | $(467) | $1912 |
|  Net income attributable to non-controlling interests <br> in subsidiaries | $– | $35 | $3 | $– | $(2) | $36 |
|  Net income attributable to equity holders of the Bank | $977 | $629 | $367 | $368 | $(465) | $1876 |
|  Average assets ($ billions)  | $451 | $233 | $36 | $493 | $210 | $1423 |
|  Average liabilities ($ billions) | $389 | $179 | $41 | $476 | $256 | $1341 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology.

(2) Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment.

(3) Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(4) Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets.

(5) Includes income (on a taxable equivalent basis) from associated corporations for International Banking – $36 and Other – $18.

<br> 84 Scotiabank Third Quarter Report 2025

------

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 | For the nine months ended July 31, 2025 |
| ($ millions) | Canadian<br>Banking<sup>(1)</sup> | International<br>Banking<sup>(1)</sup> | Global<br>Wealth<br>Management<sup>(1)</sup> | Global<br>Banking and<br>Markets<sup>(1)</sup> | Other | Total |
| Net interest income<sup>(2)</sup> | $7812 | $6593 | $744 | $1037 | $(250) | $15936 |
| Non-interest income<sup>(3)(4)</sup> | 2206 | 2399 | 3980 | 3545 | (128) | 12002 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 10018 | 8992 | 4724 | 4582 | (378) | 27938 |
| Provision for credit losses | 1799 | 1714 | 10 | 77 | 1 | 3601 |
| Depreciation and amortization | 412 | 364 | 143 | 194 | 88 | 1201 |
| Other non-interest expenses | 4376 | 4223 | 2906 | 2469 | 1515 | 15489 |
| Provision for income taxes | 947 | 580 | 435 | 440 | (307) | 2095 |
| Net income | $2484 | $2111 | $1230 | $1402 | $(1675) | $5552 |
| Net income attributable to non-controlling interests in subsidiaries | $– | $114 | $7 | $(1) | $(138) | $(18) |
| Net income attributable to equity holders of the Bank | $2484 | $1997 | $1223 | $1403 | $(1537) | $5570 |
| Average assets ($ billions)  | $461 | $227 | $38 | $502 | $230 | $1458 |
| Average liabilities ($ billions)  | $383 | $175 | $47 | $513 | $255 | $1373 |

---

(1) Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment.

(2) Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(3) Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets.

(4) Includes income (on a taxable equivalent basis) from associated corporations for Canadian Banking – $20, International Banking – $112, and Other – $297.

(5) Includes the impairment loss related to the announced sale of the banking operations in Colombia, Costa Rica and Panama. Refer to Note 20 for further details.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> | For the nine months ended July 31, 2024<sup>(1)</sup> |
| ($ millions) | Canadian<br> Banking<sup>(2)</sup> | International<br> Banking<sup>(2)</sup> | Global<br>Wealth<br> Management<sup>(2)</sup> | Global<br> Banking and<br> Markets<sup>(2)</sup> | Other | Total |
| Net interest income<sup>(3)</sup> | $7550 | $6720 | $579 | $822 | $(1342) | $14329 |
| Non-interest income<sup>(4)(5)</sup> | 2164 | 2287 | 3544 | 2967 | (147) | 10815 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 9714 | 9007 | 4123 | 3789 | (1489) | 25144 |
| Provision for credit losses | 1241 | 1729 | 22 | 28 | 1 | 3021 |
| Depreciation and amortization | 435 | 427 | 142 | 192 | 63 | 1259 |
| Other non-interest expenses | 4112 | 4252 | 2564 | 2123 | 89 | 13140 |
| Provision for income taxes | 1083 | 537 | 349 | 315 | (763) | 1521 |
| Net income | $2843 | $2062 | $1046 | $1131 | $(879) | $6203 |
| Net income attributable to non-controlling interests in subsidiaries | $– | $81 | $8 | $– | $(2) | $87 |
| Net income attributable to equity holders of the Bank | $2843 | $1981 | $1038 | $1131 | $(877) | $6116 |
| Average assets ($ billions)  | $447 | $234 | $35 | $497 | $206 | $1419 |
| Average liabilities ($ billions) | $390 | $181 | $41 | $474 | $253 | $1339 |

---

(1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology.

(2) Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment.

(3) Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(4) Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets.

(5) Includes income (on a taxable equivalent basis) from associated corporations for Canadian Banking – $(7), International Banking – $94, and Other – $70.

16. Interest income and expense

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended | For the nine months ended | For the nine months ended | For the nine months ended | For the nine months ended |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 |  | April 30, 2025 | April 30, 2025 | July 31, 2024 | July 31, 2024 | July 31, 2025 | July 31, 2025 | July 31, 2025 |  | July 31, 2024 | July 31, 2024 |
| ($ millions) | Interest<br> income |  | Interest<br> expense |  | Interest<br> income | Interest<br> expense | Interest<br> income | Interest<br> expense | Interest<br> income |  | Interest<br> expense |  | Interest<br> income | Interest<br> expense |
| Measured at amortized cost<sup>(1)</sup> | $12468 |  | $8570 |  | $12588 | $8955 | $13657 | $10763 | $38191 |  | $27271 |  | $40517 | $31829 |
| Measured at<br> FVOCI<sup>(1)</sup> | 1415 |  |  |  | 1355 |  | 1573 |  | 4212 |  |  |  | 4387 |  |
|  | 13883 |  | 8570 |  | 13943 | 8955 | 15230 | 10763 | 42403 |  | 27271 |  | 44904 | 31829 |
| Other | 237 | (2) | 57 | (3) | 344<sup>(2)</sup> | 62<sup>(3)</sup> | 453<sup>(2)</sup> | 58<sup>(3)</sup> | 984 | (2) | 180 | (3) | 1430<sup>(2)</sup> | 176<sup>(3)</sup> |
| Total | $14120 |  | $8627 |  | $14287 | $9017 | $15683 | $10821 | $43387 |  | $27451 |  | $46334 | $32005 |

---

(1) The interest income/expense on financial assets/liabilities are calculated using the effective interest method.

(2) Includes dividend income on equity securities.

(3) Includes interest on lease liabilities for the three months ended July 31, 2025 – $30 (April 30, 2025 – $31; July 31, 2024 – $29) and for the nine months ended July 31, 2025 – $93 (July 31, 2024 – $89) and insurance finance expense for the three months ended July 31, 2025 – $8 (April 30, 2025 – $9; July 31, 2024 – $7) and for the nine months ended July 31, 2025 – $25 (July 31, 2024 – $22).

Scotiabank Third Quarter Report 2025 85

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

17. Earnings per share

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | July 31<br>2024 |
| Basic earnings per common share |  |  |  |  |  |
| Net income attributable to common shareholders | $2313 | $1841 | $1756 | $5179 | $5765 |
| Foreign currency loss on redemption of Subordinated Additional Tier 1 Capital Notes<sup>(1)</sup> | (22) |  |  | (22) |  |
| Net income attributable to common shareholders used to calculate basic earnings per common share | 2291 | 1841 | 1756 | 5157 | 5765 |
| Weighted average number of common shares outstanding (millions) | 1244 | 1246 | 1230 | 1245 | 1222 |
| Basic earnings per common share<sup>(2)</sup> (in dollars) | $1.84 | $1.48 | $1.43 | $4.14 | $4.72 |
| Diluted earnings per common share |  |  |  |  |  |
| Net income attributable to common shareholders used to calculate basic earnings per common share | $2291 | $1841 | $1756 | $5157 | $5765 |
| Dilutive impact of share-based payment options and others<sup>(3)</sup> |  |  | (15) | (136) | (46) |
| Net income attributable to common shareholders (diluted) | $2291 | $1841 | $1741 | $5021 | $5719 |
| Weighted average number of common shares outstanding (millions) | 1244 | 1246 | 1230 | 1245 | 1222 |
| Dilutive impact of share-based payment options and others<sup>(3)</sup> (millions) | 1 |  | 5 | 5 | 6 |
| Weighted average number of diluted common shares outstanding (millions) | 1245 | 1246 | 1235 | 1250 | 1228 |
| Diluted earnings per common share<sup>(2)</sup> (in dollars) | $1.84 | $1.48 | $1.41 | $4.02 | $4.66 |

---

(1) Refer to Note 11 for further details on the redemption of the equity instrument.

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

(3) Certain options were not included in the calculation of diluted earnings per share as they were anti-dilutive.

18. Financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Risk management

The Bank's principal business activities result in a balance sheet that consists primarily of financial instruments. In addition, the Bank uses derivative financial instruments for both trading and hedging purposes. The principal financial risks that arise from transacting financial instruments include credit risk, liquidity risk and market risk. The Bank's framework to monitor, evaluate and manage these risks is consistent with that in place as at October 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Credit risk

Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to honour its financial or contractual obligations to the Bank.

Credit risk exposures disclosed below are presented based on the Basel framework utilized by the Bank. The Bank uses the Internal Ratings-Based approach (IRB) for all material Canadian, U.S. and European portfolios, and for a significant portion of the international corporate and commercial portfolios. The remaining portfolios, including other international portfolios, are treated under the standardized approach. Under the IRB approach, the Bank uses internal risk parameter estimates, based on historical experience.

Under the standardized approach, credit risk is estimated using the risk weights as prescribed by the Basel framework, either based on credit assessments by external rating agencies and/or based on the counterparty type for non-retail exposures and product type for retail exposures.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Exposure at default<sup>(1)</sup> | As at | As at | As at | As at | As at |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | April 30<br> 2025 | October 31<br> 2024 |
| ($ millions) | IRB | Standardized | Total | Total | Total |
| By exposure sub-type |  |  |  |  |  |
| Non-retail |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Drawn<sup>(2)(3)</sup> | $448236 | $68656 | $516892 | $514085 | $535326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Undrawn commitments | 86620 | 4763 | 91383 | 92503 | 99011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other exposures<sup>(4)</sup> | 141016 | 21712 | 162728 | 157911 | 131677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-retail | $675872 | $95131 | $771003 | $764499 | $766014 |
| Retail<sup>(5)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Drawn | $308781 | $120887 | $429668 | $428128 | $417760 |
| &nbsp;&nbsp;&nbsp;&nbsp;Undrawn commitments | 115642 | 10037 | 125679 | 124032 | 121609 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other exposures |  | 69 | 69 | 66 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | $424423 | $130993 | $555416 | $552226 | $539431 |
| Total | $1100295 | $226124 | $1326419 | $1316725 | $1305445 |

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(1) After credit risk mitigation and excludes equity securities, centralized counterparties and other assets.

(2) Non-retail drawn exposures include government guaranteed and privately insured mortgages and retail loans.

(3) Non-retail drawn includes loans, bankers' acceptances, deposits with financial institutions and FVOCI debt securities.

(4) Includes off-balance sheet lending instruments such as letters of credit, letters of guarantee, securitizations, over-the-counter derivatives and repo-style transactions net of related collateral.

(5) Retail includes residential mortgages, credit cards, lines of credit, other personal loans and small business treated as other regulatory retail.

86 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Credit quality of non-retail exposures

The Bank's non-retail portfolio is well diversified by industry. A significant portion of the authorized corporate and commercial lending portfolio was internally assessed at a grade that would generally equate to an investment grade rating by external rating agencies. There has not been a significant change in concentrations of credit risk since October 31, 2024.

Credit quality of retail exposures

The Bank's retail portfolios consist of a number of relatively small loans to a large number of borrowers. The portfolios are distributed across Canada and a wide range of countries. As such, the portfolios inherently have a high degree of diversification. In addition, as of July 31, 2025, 23% (April 30, 2025 – 23%; October 31, 2024 – 24%) of the Canadian residential mortgage portfolio is insured. The average loan-to-value ratio of the uninsured portion of the Canadian residential mortgage portfolio is 52% (April 30, 2025 – 52%; October 31, 2024 – 51%).

Retail standardized portfolio

The retail standardized portfolio of $131 billion as at July 31, 2025 (April 30, 2025 – $129 billion; October 31, 2024 – $127 billion) was comprised of residential mortgages, personal loans, credit cards and lines of credit to individuals, mainly in Latin America and the Caribbean. Of the total retail standardized exposures, $65 billion (April 30, 2025 – $65 billion; October 31, 2024 – $64 billion) was represented by mortgages and loans secured by residential real estate, mostly with a loan-to-value ratio of below 80%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Liquidity risk

Liquidity risk is the risk that the Bank is unable to meet its financial obligations in a timely manner at reasonable prices. The Bank's liquidity risk is subject to extensive risk management controls and is managed within the framework of policies and limits approved by the Board. The Board receives reports on risk exposures and performance against approved limits. The Asset/Liability Committee (ALCO) provides senior management oversight of liquidity risk.

The key elements of the Bank's liquidity risk management framework include:

• liquidity risk measurement and management limits, including limits on maximum net cash outflow by currency over specified short-term horizons;

• prudent diversification of its wholesale funding activities by using a number of different funding programs to access the global financial markets and manage its maturity profile, as appropriate;

• large holdings of liquid assets to support its operations, which can generally be sold or pledged to meet the Bank's obligations;

• liquidity stress testing, including Bank-specific, global-systemic, and combination systemic/specific scenarios; and

• liquidity contingency planning.

The Bank's foreign operations have liquidity management frameworks that are similar to the Bank's framework. Local deposits are managed from a liquidity risk perspective based on the local management frameworks and regulatory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Market risk

Market risk arises from changes in market prices and rates (including interest rates, credit spreads, equity prices, foreign exchange rates and commodity prices), the correlations among them, and their levels of volatility.

Interest rate risk

Interest rate risk is the risk of loss due to the following: changes in the level, slope and curvature of the yield curve; the volatility of interest rates and changes in customers' preferences (e.g. mortgage prepayment rates).

Non-trading foreign currency risk

Foreign currency risk is the risk of loss due to changes in spot and forward rates.

As at July 31, 2025, a one per cent increase (decrease) in the Canadian dollar against all currencies in which the Bank operates decreases (increases) the Bank's before-tax annual earnings by approximately $44 million (April 30, 2025 – $40 million; July 31, 2024 – $48 million) in the absence of hedging activity, due primarily from exposure to U.S. dollars from the Bank's operations in the U.S. and activities conducted internationally in this currency and from exposures to Latin American currencies.

A similar change in the Canadian dollar as at July 31, 2025, would increase (decrease) the unrealized foreign currency translation losses in the accumulated other comprehensive income section of shareholders' equity by approximately $368 million (April 30, 2025 – $357 million; July 31, 2024 – $339 million), net of hedging.

Non-trading equity risk

Equity risk is the risk of loss due to adverse movements in equity prices. The Bank is exposed to equity risk through its investment equity portfolios. The fair value of investment equity securities is shown in Note 6.

Scotiabank Third Quarter Report 2025 87

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Trading portfolio risk management

Value at Risk (VaR) is a key measure of market risk in the Bank's trading activities. The table below shows the Bank's VaR by risk factor:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended | As at or for the three months ended |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 |  | April 30, 2025 | April 30, 2025 | July 31, 2024 | July 31, 2024 |
| ($millions) | As at | Average | High |  | Low |  | As at | Average | As at | Average |
|  Credit spread plus interest rate | $13.5 | $14.3 | $17.5 |  | $12.2 |  | $14.3 | $14.2 | $9.8 | $12.7 |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit spread<sup>(1)</sup> | 9.0 | 11.1 | 14.0 |  | 8.2 |  | 12.0 | 12.4 | &nbsp;&nbsp;&nbsp;&nbsp;6.1 | &nbsp;&nbsp;&nbsp;&nbsp;7.7 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate | 10.2 | 11.2 | 15.6 |  | 8.5 |  | 8.6 | 12.8 | 7.3 | 13.7 |
|  Equities | 4.6 | 4.1 | 8.4 |  | 2.5 |  | 8.2 | 6.1 | 5.1 | 4.6 |
|  Foreign exchange | 2.8 | 2.8 | 5.7 |  | 1.1 |  | 1.4 | 2.0 | 2.4 | 2.1 |
|  Commodities | 4.1 | 3.4 | 4.9 |  | 2.3 |  | 2.5 | 2.8 | 3.8 | 2.1 |
|  Debt specific<sup>(1)</sup> | n/a | n/a | n/a |  | n/a |  | n/a | n/a | 3.1 | 3.0 |
|  Diversification effect | (12.9) | (11.5) | nm | (2) | nm | (2) | (14.3) | (11.0) | (15.1) | (10.6) |
|  Total VaR | $12.1 | $13.1 | $18.3 |  | $9.7 |  | $12.1 | $14.1 | $9.1 | $13.9 |

---

(1) Effective November 1, 2024, credit spread VaR also captures issuer-specific credit spread volatility which was previously included in debt specific VaR.

(2) Not meaningful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial instruments designated at fair value through profit or loss

In accordance with its risk management strategy, the Bank has elected to designate certain senior note liabilities at fair value through profit or loss to reduce an accounting mismatch between fair value changes in these instruments and fair value changes in related derivatives, and where a hybrid financial liability contains one or more embedded derivatives that are not closely related to the host contract. Changes in fair value of financial liabilities arising from the Bank's own credit risk are recognized in other comprehensive income, without subsequent reclassification to net income.

The cumulative fair value adjustment due to own credit risk is determined at a point in time by comparing the present value of expected future cash flows over the term of these liabilities discounted at the Bank's effective funding rate, and the present value of expected future cash flows discounted at a benchmark rate.

The following table presents the fair value of liabilities designated at fair value through profit or loss and their changes in fair value.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Fair value | Fair value | Fair value | Change in fair value<sup>(1)</sup><br>Gains/(Losses) | Change in fair value<sup>(1)</sup><br>Gains/(Losses) | Change in fair value<sup>(1)</sup><br>Gains/(Losses) | Cumulative change in fair value<sup>(2)</sup><br>Gains/(Losses) | Cumulative change in fair value<sup>(2)</sup><br>Gains/(Losses) | Cumulative change in fair value<sup>(2)</sup><br>Gains/(Losses) |
|  | As at | As at | As at | For the three months ended | For the three months ended | For the three months ended | As at | As at | As at |
| ($ millions) | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 | July 31<br>2025 | April 30<br>2025 | July 31<br>2024 |
|  **Liabilities** |  |  |  |  |  |  |  |  |  |
|  Senior note liabilities<sup>(3)</sup> | $43536 | $39127 | $37754 | $(1633) | $1611 | $(1478) | $4604 | $6237 | $3981 |

---

(1) Change in the difference between the contractual maturity amount and the carrying value.

(2) The cumulative change in fair value is measured from the instrument's date of initial recognition.

(3) Changes in fair value attributable to changes in the Bank's own credit risk are recorded in other comprehensive income. Other changes in fair value are recorded in non-interest income – trading revenues. The offsetting fair value changes from associated derivatives is also recorded in non-interest income – trading revenues.

The following table presents the changes in fair value attributable to changes in the Bank's own credit risk for financial liabilities designated at fair value through profit or loss as well as their contractual maturity and carrying amounts.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Senior note liabilities | Senior note liabilities | Senior note liabilities | Senior note liabilities | Senior note liabilities |
|  ($ millions) | Contractual<br>maturity<br>amount | Carrying value | Difference<br>between<br>contractual<br>maturity<br>amount and<br>carrying<br>value | Changes in fair value<br>for the three<br>months period<br>attributable to<br>changes in own<br>credit risk<br>recorded in other<br>comprehensive<br>income<br>Gains/(Losses) | Cumulative changes<br>in fair value<br>attributable to<br>changes in own<br>credit risk<sup>(1)</sup><br>Gains/(Losses) |
|  As at July 31, 2025 | $48140 | $43536 | $4604 | $(562) | $(1227) |
|  As at April 30, 2025 | $45364 | $39127 | $6237 | $512 | $(665) |
|  As at July 31, 2024 | $41735 | $37754 | $3981 | $127 | $(867) |

---

(1) The cumulative change in fair value is measured from the instruments' date of initial recognition.

88 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Financial instruments – fair value

Fair value of financial instruments

The calculation of fair value is based on market conditions at a specific point in time and therefore may not be reflective of future fair values. The Bank has controls and processes in place to ensure that the valuation of financial instruments is appropriately determined.

Refer to Note 8 of the Bank's audited consolidated financial statements in the 2024 Annual Report for the valuation techniques used to fair value its significant financial assets and liabilities.

The following table sets out the fair values of financial instruments of the Bank and excludes non-financial assets, such as property and equipment, investments in associates, precious metals, goodwill and other intangible assets.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As at | As at | As at | As at | As at | As at |
|  | July 31, 2025 | July 31, 2025 | April 30, 2025 | April 30, 2025 | October 31, 2024 | October 31, 2024 |
| ($ millions) | **Total fair**<br>**value** | **Total**<br>**carrying**<br>**value** | Total fair<br>value | Total<br>carrying<br>value | Total fair<br>value | Total<br>carrying<br>value |
| **Assets:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and deposits with financial institutions | $69701 | $69701 | $63577 | $63577 | $63860 | $63860 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trading assets | 136485 | 136485 | 128987 | 128987 | 129727 | 129727 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under resale agreements and securities borrowed | 185360 | 185360 | 192632 | 192632 | 200543 | 200543 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | 43801 | 43801 | 47937 | 47937 | 44379 | 44379 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities – FVOCI and FVTPL | 124228 | 124228 | 127837 | 127837 | 123420 | 123420 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities – amortized cost | 24100 | 24923 | 25744 | 26454 | 28422 | 29412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 760294 | 761560 | 753808 | 756372 | 757825 | 760829 |
| &nbsp;&nbsp;&nbsp;&nbsp;Customers' liability under acceptances | 133 | 133 | 189 | 189 | 148 | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 25164 | 25164 | 28441 | 28441 | 22467 | 22467 |
| Liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 945377 | 946842 | 945024 | 945843 | 941290 | 943849 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial instruments designated at fair value through profit or loss | 43536 | 43536 | 39127 | 39127 | 36341 | 36341 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acceptances | 134 | 134 | 190 | 190 | 149 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations related to securities sold short | 34675 | 34675 | 36543 | 36543 | 35042 | 35042 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | 52916 | 52916 | 61933 | 61933 | 51260 | 51260 |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations related to securities sold under repurchase agreements and securities lent | 182223 | 182223 | 177987 | 177987 | 190449 | 190449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debentures | 7683 | 7604 | 7832 | 7891 | 7814 | 7833 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | 51924 | 52075 | 49414 | 49560 | 53342 | 53387 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Fair value hierarchy

The best evidence of fair value for a financial instrument is the quoted price in an active market. Unadjusted quoted market prices for identical instruments represent a Level 1 valuation. Where possible, valuations are based on quoted prices or observable inputs obtained from active markets.

Quoted prices are not always available for over-the-counter transactions, as well as transactions in inactive or illiquid markets. In these instances, internal models that maximize the use of observable inputs are used to estimate fair value. The chosen valuation technique incorporates all the factors that market participants would take into account in pricing a transaction. When all significant inputs to models are observable, the valuation is classified as Level 2. Financial instruments traded in a less active market are valued using indicative market prices or other valuation techniques. Fair value estimates do not consider forced or liquidation sales.

Where financial instruments trade in inactive markets, illiquid markets or when using models where observable parameters do not exist, greater management judgement is required for valuation purposes. Valuations that require the significant use of unobservable inputs are classified as Level 3.

Scotiabank Third Quarter Report 2025 89

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following table outlines the fair value hierarchy and instruments carried at fair value on a recurring basis.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at | As at | As at | As at | As at | As at | As at | As at |
|  | July 31, 2025 | July 31, 2025 | July 31, 2025 | July 31, 2025 | April 30, 2025 | April 30, 2025 | April 30, 2025 | April 30, 2025 |
| ($ millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
| **Instruments carried at fair value on a recurring basis:** |  |  |  |  |  |  |  |  |
| **Assets:** |  |  |  |  |  |  |  |  |
| Precious metals<sup>(1)</sup> | $– | $5832 | $– | $5832 | $– | $5971 | $– | $5971 |
| Trading assets |  |  |  |  |  |  |  |  |
| Loans |  | 7918 | 179 | 8097 |  | 7840 | 1 | 7841 |
| Canadian federal government and government guaranteed debt | 15742 | 2963 |  | 18705 | 13415 | 2518 |  | 15933 |
| Canadian provincial and municipal debt | 7835 | 3005 |  | 10840 | 7416 | 2889 |  | 10305 |
| U.S. treasury and other U.S. agencies' debt | 12156 |  |  | 12156 | 9155 |  |  | 9155 |
| Other foreign governments' debt | 916 | 10402 |  | 11318 | 1436 | 9842 |  | 11278 |
| Corporate and other debt | 2720 | 6969 |  | 9689 | 3156 | 7387 |  | 10543 |
| Equity securities | 62105 | 624 | 5 | 62734 | 60775 | 305 | 8 | 61088 |
| Other |  | 2946 |  | 2946 |  | 2844 |  | 2844 |
|  | $101474 | $34827 | $184 | $136485 | $95353 | $33625 | $9 | $128987 |
| Investment securities<sup>(2)</sup> |  |  |  |  |  |  |  |  |
| Canadian federal government and government guaranteed debt | $14691 | $8029 | $– | $22720 | $14649 | $7501 | $– | $22150 |
| Canadian provincial and municipal debt | 15421 | 4954 |  | 20375 | 15736 | 6278 |  | 22014 |
| U.S. treasury and other U.S. agencies' debt | 42584 | 6891 |  | 49475 | 42374 | 7147 |  | 49521 |
| Other foreign governments' debt | 2997 | 22744 |  | 25741 | 3861 | 24494 |  | 28355 |
| Corporate and other debt | 135 | 3282 | 32 | 3449 | 194 | 3243 | 35 | 3472 |
| Equity securities | 100 | 323 | 2045 | 2468 | 95 | 277 | 1953 | 2325 |
|  | $75928 | $46223 | $2077 | $124228 | $76909 | $48940 | $1988 | $127837 |
| Derivative financial instruments |  |  |  |  |  |  |  |  |
| Interest rate contracts | $– | $9779 | $2 | $9781 | $– | $10988 | $2 | $10990 |
| Foreign exchange and gold contracts |  | 25443 |  | 25443 |  | 29169 | 1 | 29170 |
| Equity contracts | 636 | 5037 | 33 | 5706 | 232 | 4102 | 45 | 4379 |
| Credit contracts |  | 233 | 1 | 234 |  | 357 | 1 | 358 |
| Commodity contracts |  | 2624 | 13 | 2637 |  | 3033 | 7 | 3040 |
|  | $636 | $43116 | $49 | $43801 | $232 | $47649 | $56 | $47937 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Deposits<sup>(3)</sup> | $– | $272 | $– | $272 | $– | $191 | $– | $191 |
| Financial liabilities designated at fair value through profit or loss |  | 43536 |  | 43536 |  | 39127 |  | 39127 |
| Obligations related to securities sold short | 29778 | 4897 |  | 34675 | 30477 | 6066 |  | 36543 |
| Derivative financial instruments |  |  |  |  |  |  |  |  |
| Interest rate contracts |  | 17645 | 2 | 17647 |  | 17861 | 13 | 17874 |
| Foreign exchange and gold contracts |  | 24288 |  | 24288 |  | 32294 |  | 32294 |
| Equity contracts | 732 | 7547 | 38 | 8317 | 506 | 7378 | 38 | 7922 |
| Credit contracts |  | 25 | 1 | 26 |  | 22 |  | 22 |
| Commodity contracts |  | 2628 | 10 | 2638 |  | 3808 | 13 | 3821 |
|  | $732 | $52133 | $51 | $52916 | $506 | $61363 | $64 | $61933 |

---

(1) The fair value of precious metals is determined based on quoted market prices and forward spot prices, where applicable, less the cost to sell.

(2) Excludes debt investment securities measured at amortized cost of $24,923 (April 30, 2025 – $26,454).

(3) These amounts represent embedded derivatives bifurcated from structured note liabilities measured at amortized cost.

90 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| ($ millions) | Level 1 | Level 2 | Level 3 | Total |
|  Instruments carried at fair value on a recurring basis: |  |  |  |  |
|  Assets: |  |  |  |  |
|  Precious metals<sup>(1)</sup> | $– | $2540 | $– | $2540 |
|  Trading assets |  |  |  |  |
|  Loans |  | 7649 |  | 7649 |
|  Canadian federal government and government guaranteed debt | 11229 | 3742 |  | 14971 |
|  Canadian provincial and municipal debt | 6228 | 2185 |  | 8413 |
|  U.S. treasury and other U.S. agencies' debt | 15050 |  |  | 15050 |
|  Other foreign governments' debt | 422 | 9932 |  | 10354 |
|  Corporate and other debt | 4940 | 6990 | 4 | 11934 |
|  Equity securities | 59081 | 88 | 21 | 59190 |
|  Other |  | 2166 |  | 2166 |
|  | $96950 | $32752 | $25 | $129727 |
|  Investment securities<sup>(2)</sup> |  |  |  |  |
|  Canadian federal government and government guaranteed debt | $12739 | $8801 | $– | $21540 |
|  Canadian provincial and municipal debt | 12823 | 4702 |  | 17525 |
|  U.S. treasury and other U.S. agencies' debt | 39999 | 6377 |  | 46376 |
|  Other foreign governments' debt | 3940 | 25346 |  | 29286 |
|  Corporate and other debt | 133 | 3359 | 35 | 3527 |
|  Equity securities | 2983 | 317 | 1866 | 5166 |
|  | $72617 | $48902 | $1901 | $123420 |
|  Derivative financial instruments |  |  |  |  |
|  Interest rate contracts | $– | $11584 | $– | $11584 |
|  Foreign exchange and gold contracts |  | 26004 |  | 26004 |
|  Equity contracts | 150 | 4313 | 44 | 4507 |
|  Credit contracts |  | 180 | 2 | 182 |
|  Commodity contracts |  | 2095 | 7 | 2102 |
|  | $150 | $44176 | $53 | $44379 |
|  Liabilities: |  |  |  |  |
|  Deposits<sup>(3)</sup> | $– | $193 | $– | $193 |
|  Financial liabilities designated at fair value through profit or loss |  | 36341 |  | 36341 |
|  Obligations related to securities sold short | 30721 | 4319 | 2 | 35042 |
|  Derivative financial instruments |  |  |  |  |
|  Interest rate contracts |  | 17895 | 13 | 17908 |
|  Foreign exchange and gold contracts |  | 25900 |  | 25900 |
|  Equity contracts | 139 | 4687 | 19 | 4845 |
|  Credit contracts |  | 46 | 1 | 47 |
|  Commodity contracts |  | 2550 | 10 | 2560 |
|  | $139 | $51078 | $43 | $51260 |

---

(1) The fair value of precious metals is determined based on quoted market prices and forward spot prices, where applicable, less the cost to sell.

(2) Excludes debt investment securities measured at amortized cost of $29,412.

(3) These amounts represent embedded derivatives bifurcated from structured note liabilities measured at amortized cost.

Level 3 instrument fair value changes

Financial instruments categorized as Level 3 as at July 31, 2025, in the fair value hierarchy comprised of loans, corporate bonds, equity securities and derivatives.

<br> Scotiabank Third Quarter Report 2025 91

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the changes in Level 3 instruments carried at fair value for the three months ended July 31, 2025.

All positive balances represent assets and negative balances represent liabilities. Consequently, positive amounts indicate purchases of assets or settlements of liabilities and negative amounts indicate sales of assets or issuances of liabilities.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 | As at July 31, 2025 |
| ($ millions) | Fair value,<br> beginning of<br> the quarter | Gains/<br> (losses)<br> recorded<br> in income<sup>(1)</sup> | Gains/<br> (losses)<br> recorded<br> in OCI | Purchases/<br> Issuances | Sales/<br> Settlements | Transfers<br> into/out<br> of Level 3 | Fair value,<br> end of the<br> quarter | Changes in<br> unrealized<br> gains/(losses)<br> recorded in<br> income for<br> instruments<br> still held<sup>(2)</sup> |
|  **Trading assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans | $1 | $– | $– | $– | $– | $178 | $179 | $– |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 8 |  |  | 2 | (3) | (2) | 5 |  |
|  | 9 |  |  | 2 | (3) | 176 | 184 |  |
|  Investment securities |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate and other debt | 35 | (4) | (1) |  |  | 2 | 32 | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 1953 | 47 | 4 | 49 | (18) | 10 | 2045 | 43 |
|  | 1988 | 43 | 3 | 49 | (18) | 12 | 2077 | 39 |
|  Derivative financial instruments – <br>assets |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 2 |  |  | 2 | (2) |  | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange and gold contracts | 1 |  |  |  |  | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 45 | (7) |  | 1 |  | (6) | 33 | (7)<sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 1 |  |  |  |  |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 7 | 6 |  |  |  |  | 13 | 6 |
|  Derivative financial instruments –<br> liabilities |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | (13) |  |  | (1) | 14 | (2) | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | (38) | (5) |  | (7) |  | 12 | (38) | (5)<sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit contracts |  |  |  | (1) |  |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | (13) | 3 |  |  |  |  | (10) | 3 |
|  | (8) | (3) |  | (6) | 12 | 3 | (2) | (3) |
|  Total | $1989 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;191 | $2259 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36 |

---

(1) Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2.

(2) These amounts represent the gains and losses from fair value changes of Level 3 instruments still held at the end of the period that are recorded in the Consolidated Statement of Income.

(3) Certain unrealized gains and losses on derivative assets and liabilities are largely offset by mark-to-market changes on other instruments included in trading revenues in the Consolidated Statement of Income, since these instruments act as an economic hedge to certain derivative assets and liabilities.

The following tables summarize the changes in Level 3 instruments carried at fair value for the three months ended April 30, 2025 and October 31, 2024.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 | As at April 30, 2025 |
| ($ millions) | Fair value,<br> beginning<br> of the<br> quarter | Gains/<br> (losses)<br> recorded<br> in income<sup>(1)</sup> | Gains/<br> (losses)<br> recorded<br> in OCI | Purchases/<br> Issuances | Sales/<br> Settlements | Transfers<br> into/<br> out of<br> Level 3 | Fair value,<br> end of the<br> quarter |
|  Trading assets | $10 | $– | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– | $3 | $(2) | $(2) | $9 |
|  Investment securities | 2012 | &nbsp;&nbsp;&nbsp;&nbsp;13 | 54 | &nbsp;&nbsp;&nbsp;&nbsp;29 | (111) | &nbsp;&nbsp;&nbsp;&nbsp;(9) | 1988 |
|  Derivative financial instruments | 20 | (15) |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 | (21) | (8) |

---

(1) Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 | As at October 31, 2024 |
| ($ millions) | Fair value,<br> beginning<br> of the<br> quarter | Gains/<br> (losses)<br> recorded<br> in income<sup>(1)</sup> | Gains/<br> (losses)<br> recorded<br> in OCI | Purchases/<br> Issuances | Sales/<br> Settlements | Transfers<br> into/<br> out of<br> Level 3 | Fair value,<br> end of the<br> quarter |
|  Trading assets | $48 | $– | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– | $3 | $(6) | $(20) | $25 |
|  Investment securities | 1822 | 13 | 1 | &nbsp;&nbsp;&nbsp;&nbsp;72 | (40) | 33 | 1901 |
|  Derivative financial instruments | 35 | 1 |  | (2) | (8) | &nbsp;&nbsp;&nbsp;&nbsp;(16) | 10 |
|  Obligations related to securities sold short |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;– | (2) | (2) |

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(1) Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2.

<br> 92 Scotiabank Third Quarter Report 2025

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Significant transfers

Significant transfers can occur between the fair value hierarchy levels when additional or new information regarding valuation inputs and their refinement and observability become available. The Bank recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

The following significant transfers made between Level 1 and 2, were based on whether the fair value was determined using quoted market prices from an active market.

During the three months ended July 31, 2025:

• Trading assets of $868 million, investment securities of $1,077 million and obligations related to securities sold short of $517 million were transferred out of Level 2 into Level 1.

• Trading assets of $1,004 million, investment securities of $2,047 million and obligations related to securities sold short of $466 million were transferred out of Level 1 into Level 2.

During the three months ended April 30, 2025:

• Trading assets of $2,003 million, investment securities of $6,624 million and obligations related to securities sold short of $1,038 million were transferred out of Level 2 into Level 1.

• Trading assets of $913 million, investment securities of $463 million and obligations related to securities sold short of $832 million were transferred out of Level 1 into Level 2.

During the three months ended October 31, 2024:

• Trading assets of $1,873 million, investment securities of $4,558 million and obligations related to securities sold short of $447 million were transferred out of Level 2 into Level 1.

• Trading assets of $1,503 million, investment securities of $3,135 million and obligations related to securities sold short of $296 million were transferred out of Level 1 into Level 2.

During the three months ended July 31, 2025, trading loans of $178 million were transferred out of Level 2 into Level 3. Transfers were a result of the change in the observability of the price used for valuing the loans.

There were no significant transfers into and out of Level 3 during the three months ended April 30, 2025 and October 31, 2024.

Level 3 sensitivity

The Bank applies judgement in determining unobservable inputs used to calculate the fair value of Level 3 instruments.

Refer to Note 8 of the Bank's audited consolidated financial statements for the year ended October 31, 2024 for a description of the significant unobservable inputs for Level 3 instruments and the potential effect that a change in each unobservable input may have on the fair value measurement. There have been no significant changes to the Level 3 sensitivities during the quarter.

19. Corporate income taxes

Tax assessments

The Bank received reassessments totaling $1,808 million (April 30, 2025 – $1,634 million) of tax and interest as a result of the Canada Revenue Agency (CRA) denying the tax deductibility of certain Canadian dividends received during the 2011-2020 taxation years. The dividends subject to these reassessments are similar to those prospectively addressed by tax rules introduced in 2015 and 2018. The Bank has filed Notices of Appeal with the Tax Court of Canada against the federal reassessment in respect of its 2011 and 2012 taxation years. In addition, a subsidiary of the Bank received reassessments on the same matter in respect of its 2018-2020 taxation years totaling $4 million of tax and interest.

A subsidiary of the Bank received withholding tax assessments from the CRA in respect of certain of its securities lending transactions for its 2014-2019 taxation years totaling $637 million (April 30, 2025 – $637 million) of tax, penalties and interest. The subsidiary has filed a Notice of Appeal with the Tax Court of Canada against the federal assessment in respect of its 2014-2019 taxation years.

In respect of both matters, the Bank is confident that its tax filing position was appropriate and in accordance with the relevant provisions of the Income Tax Act (Canada) and intends to vigorously defend its position.

Global Minimum Tax

The Organisation for Economic Co-operation and Development (OECD) published Pillar Two model rules in December 2021 as part of its efforts toward international tax reform. The rules aim to have large multinational enterprises, with consolidated revenues in excess of

€750 million, pay a minimum effective tax of 15%. These rules apply to the Bank effective November 1, 2024, and have been enacted or substantively enacted in certain jurisdictions in which the Bank operates, including Canada, whose Global Minimum Tax (GMT) Act was enacted in June 2024.

The IASB previously issued amendments to IAS 12 Income Taxes for a temporary mandatory exception from the recognition and disclosure of deferred taxes related to the implementation of Pillar Two GMT rules, which the Bank has applied.

For the nine months ended July 31, 2025, the impact of the GMT on the Bank's effective tax rate was approximately 1%, and was primarily related to its operations in certain Caribbean jurisdictions and Ireland.

<br> Scotiabank Third Quarter Report 2025 93

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

20. Acquisitions and divestitures

Acquisitions

Acquisition completed impacting the current year

KeyCorp

On December 27, 2024, the Bank completed its acquisition of an approximate ownership interest of 14.9% or 163 million shares in KeyCorp. The acquisition was completed in two stages – an initial investment of 4.9% (Initial Investment) on August 30, 2024, and an additional investment of approximately 10% (Additional Investment) on December 27, 2024. The acquisition was completed through all-cash purchases of newly issued voting common shares, at a fixed price of U.S.$17.17 per share, resulting in total cash consideration paid of approximately U.S.$2.8 billion. Following completion of the Additional Investment, the Bank designated two individuals to serve on KeyCorp's Board of Directors.

Effective December 27, 2024, the combined 14.9% investment was accounted for as an investment in associate as the Bank has significant influence over KeyCorp as defined under IFRS, given its board representation and ownership interest. The Initial Investment of 4.9% previously accounted for at fair value through other comprehensive income was derecognized and included in the cost base of the investment in associate in Q1 2025. The difference between the fixed transaction price and the quoted share price of KeyCorp on the date of Additional Investment (U.S.$17.20) was recognized as a gain in non-interest income – other in Q1 2025, with a corresponding increase in the carrying value of the investment in associate. The carrying amount of the investment in associate upon closing was U.S.$2.8 billion ($4.1 billion), and represents the Bank's share of KeyCorp's net assets, adjusted for goodwill and other intangibles. The total impact to the Bank's common equity Tier 1 (CET1) ratio from the transaction was a decrease of approximately 49 basis points.

For the three and nine months ended July 31, 2025, $103 million ($97 million after-tax) and $245 million ($227 million after-tax), respectively, was recorded in net income from investments in associated corporations, representing the Bank's share of KeyCorp's financial results reported on a one-month lag. Changes during the one-month lag period are monitored and adjusted if results are materially impacted.

Divestitures

Divestitures announced that are expected to close in a future period

Sale of banking operations in Colombia, Costa Rica and Panama

On January 6, 2025, the Bank entered into an agreement with Davivienda to sell Scotiabank's banking operations in Colombia, Costa Rica and Panama in exchange for an approximately 20% ownership stake in the newly combined entity of Davivienda. The Bank's ownership will consist of 14.99% voting common shares and the remainder in non-voting preferred shares. At the closing date, the Bank will have the right to designate individuals to serve on the Board of Directors of Davivienda's combined operations commensurate with its ownership stake. This investment will be accounted for as an investment in associate, as the Bank will have significant influence.

The transaction is expected to be completed in approximately 12 months from the signing date, subject to regulatory approvals in all jurisdictions and customary closing conditions.

On the date of the agreement, the Bank's operations that are part of this transaction were classified as held for sale in accordance with IFRS 5 and an impairment loss of $1,362 million ($1,355 million after-tax) was recorded in non-interest expenses – other within the Other operating segment, representing the write-down of goodwill ($589 million), intangibles ($151 million), property and equipment ($290 million) and the remaining in other assets. The impact to the Bank's CET1 capital ratio was a decrease of approximately 12 basis points in Q1 2025.

At each future reporting period, any changes in the carrying value of the net assets being sold and the fair value of the shares to be received, will be recognized in profit and loss. These changes resulted in a partial reversal of

the impairment loss of $29 million after-tax in Q3 2025 (Q2 2025 – impairment loss of $8 million after-tax). As at July 31, 2025, the held-for-sale operations included total assets of $23 billion and total liabilities of $21 billion, consisting primarily of loans and deposits, and the net cumulative foreign currency translation losses were $194 million. Upon closing, these assets and liabilities will be derecognized and the net cumulative foreign currency translation reserve at the closing date related to these operations will be recorded in the consolidated statement of income.

Divestiture closed during the year

CrediScotia Financiera

On February 28, 2025, the Bank completed the sale of CrediScotia Financiera S.A. (CrediScotia), a wholly-owned consumer finance subsidiary in Peru, to Banco Santander S.A. (Espana), upon receiving regulatory approvals and satisfying closing conditions.

Upon closing, assets and liabilities of $985 million and $726 million, respectively, in relation to this business were derecognized. A total loss of $102 million after-tax has been recognized and recorded in the Other segment for this transaction, of which $12 million after-tax was recorded in Q2 2025 and $90 million was recorded in Q3 2024. The amount was recognized in non-interest income – other.

The closing of the transaction increased the Bank's CET1 ratio by approximately three basis points.

94 Scotiabank Third Quarter Report 2025

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SHAREHOLDER 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 Shareholder Dividend 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.

Normal Course Issuer Bid

A copy of the Notice of Intention to commence the Normal Course Issuer Bid is available without charge by contacting the Investor Relations Department at (416) 775-0798 or investor.relations@scotiabank.com.

Dividend Dates for 2025

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

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| Record Date | Payment Date |
| January 7, 2025 | January 29, 2025 |
| April 1, 2025 | April 28, 2025 |
| July 2, 2025 | July 29, 2025 |
| October 7, 2025 | October 29, 2025 |

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Annual Meeting

The Annual Meeting for fiscal year 2025 is scheduled for April 14, 2026.

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 August 26, 2025, at 8:15 am ET and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 416-340-2217, or toll-free at 1-800-806-5484 using ID 3178065# (please call shortly before 8:15 am ET). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page at www.scotiabank.com/investorrelations.

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 August 26, 2025, to September 26, 2025, by calling 905-694-9451 or 1-800-408-3053 (North America toll-free) and entering the access code 6220080#.

Contact Information

Investors:

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

Scotiabank

40 Temperance Street, Toronto, Ontario

Canada M5H 0B4

Telephone: (416) 775-0798

E-mail: investor.relations@scotiabank.com

Global Communications:

Scotiabank

40 Temperance Street, Toronto, Ontario

Canada M5H 0B4

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 Investor Services Inc.

320 Bay Street, 14th Floor

Toronto, Ontario, Canada M5H 4A6

Telephone: 1-877-982-8767

E-mail: service@computershare.com

Scotiabank Third Quarter Report 2025 95

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SHAREHOLDER INFORMATION

Co-Transfer Agent (USA)

Computershare Trust Company, N.A.

Telephone: 1-781-575-2000

E-mail: service@computershare.com

Street Courier/Address:

C/O: Shareholder Services

150 Royall Street

Canton, MA, USA 02021

Mailing Address:

PO Box 43078, Providence, RI, USA 02940-3078

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

Scotiabank

40 Temperance Street

Toronto, Ontario, Canada M5H 0B4

Telephone: (416) 866-3672

E-mail: corporate.secretary@scotiabank.com

Rapport trimestriel disponible en français

Le rapport trimestriel 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 avec les investisseurs, La Banque de Nouvelle-Écosse, 40, rue Temperance, Toronto (Ontario), Canada M5H 0B4, en joignant, si possible, l'étiquette d'adresse, afin que nous puissions prendre note du changement.

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| ![](g944686g64m01.jpg) | ![](g944686g85f95.jpg)<br>The Bank of Nova Scotia is a chartered bank under the Bank Act<br> (Canada) and is a public company incorporated in Canada. |

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